If two sales, reported in the Miami Herald today, are any indication of what the future holds for Deutsche Bank in the tumbling condo market here in South Florida: It ain’t good! These two recent sales of Deutsche Bank properties in the City of Aventura showed massive losses.In Turnberry on the Green, on the tony private golf courses that anchors the city, Deutsche Bank National 2006-2 sold a 2/2 with 1,245 square feet for $231,000 ($185 a square foot). In 2006 this 5th floor property sold for $510,000 ($409 a square foot). The building is relatively new, showing a built year of 2002.
The second property, again in Aventura, is in a popular established building, built in 1975. The condo has unobstructed views of two golf courses. This 12th floor 2/2 condo, with 1,157 square feet, sold for $135,000 (about $117 a square
foot). Deutsche Bank National 2006-Sd3 took the hit. In 2006 this same condo went for $310,000 (about $268 a square foot). This aerial photo was taken during a multi-million dollar renovation of the golf course which is now completed.What will these loser deals do to the building’s other properties? Factoring in these bargain sales as comps, property appraisals will dip the value on the entire building. I think some who bought at the height of the market with low or no down payments will just walk away leaving the lender hanging and their neighbors scrambling as sale prices plunge even further.
Frankly, these two were not the kind of buildings in which I expected to see foreclosures. They are both sedate buildings, populated with a good share of seniors and, thus, not good candidates for speculation by yuppies/generation X.
2 comments:
Not surprising. I have been searching like mad over the past month and 3/4 of the properties I see are foreclosures. Many of the houses I've seen are selling for around 200k and sold for around 400k 2-3 years ago.
This does seem to be a bad sign for recovery. when all the foresclosures get dumped, the market will tank like a lead baloon.
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