Key Largo, FL
SOLD - $9,000,000+
THE CHALLENGE
The developer of Mariner’s Club Key Largo, a premier mid-size oceanfront community and resort in Key Largo, FL, had experienced a tremendous slowdown in real estate sales. The community, consisting of approximately 110 units of luxury townhomes and oceanfront villa condominiums, had a remaining inventory of 14 units and outstanding debt owed to the bank. The goal of the developer was to sell the remaining units in the community to allow for them to turn over the association to the homeowners, cover their debt obligations to their lender, and move onto other, more profitable ventures, all while further shielding themselves from continuing market decline. The on-site sales manager of the community had experienced difficulty in getting buyers to purchase in a time where there had been no recent comparable sales and it was suspected that there would be a growing number of foreclosures. Rather than continuing the same failed tactics to try and produce sales, they turned to Grand Estates Auction Company® to provide a solution for their needs.
THE SOLUTION
Grand Estates Auction Company® evaluated the development to determine how best to attract end-user buyer interest to maximize the market value of the properties to best achieve both the developer’s and the bank’s needs. An international marketing plan was created and implemented with the purpose of attracting buyers from across the world by utilizing the auction process. The Grand Estates auction would be an application of expertise, creating urgency amongst contemplative buyers, and motivate them to act for this time sensitive sale. Grand Estates’ proposal included methodology on how to prevent buyers from withholding bids as a means of expecting to secure later property offerings at lower prices. This methodology is essential to protecting the developer’s return and the market value of the units. We knew attracting extensive interest for the auction and property would create competition amongst the buyers, renew confidence in market demand, and result in profitable returns for both the developer and lender.
THE RESULT
Throughout the promotional campaign interest for the properties continued to grow. The properties that GEA represents are ultra-luxurious, and the Mariner’s Club Key Largo is a renowned Keys resort destination. Grand Estates Auction Company®, in a 30 day period, received over 500 inquiries due to the extensive marketing, advertising, public relations and sales efforts. Additionally, 35 Property Purchase Packages™ were sold, our on-site sales staff previewed the development to over 200 groups of people during the 4 day preview period, and registered over 50 bidders for the auction. Buyers’ demand exceeded the initial offering of 7 units being auctioned and resulted in a total of 10 units being sold along with 6 boat slips totaling over $9,000,000 in sales in a single afternoon. The developer, as a result of GEA’s efforts, was able to sell a greater than expected number of units and cover their note in full to the bank. Lastly, the influx of new comparative sales energized activity and stabilized the community, which allowed for other lenders to re-evaluate current loan obligations for other owners that resulted in reduced foreclosures.
The developer of Mariner’s Club Key Largo, a premier mid-size oceanfront community and resort in Key Largo, FL, had experienced a tremendous slowdown in real estate sales. The community, consisting of approximately 110 units of luxury townhomes and oceanfront villa condominiums, had a remaining inventory of 14 units and outstanding debt owed to the bank. The goal of the developer was to sell the remaining units in the community to allow for them to turn over the association to the homeowners, cover their debt obligations to their lender, and move onto other, more profitable ventures, all while further shielding themselves from continuing market decline. The on-site sales manager of the community had experienced difficulty in getting buyers to purchase in a time where there had been no recent comparable sales and it was suspected that there would be a growing number of foreclosures. Rather than continuing the same failed tactics to try and produce sales, they turned to Grand Estates Auction Company® to provide a solution for their needs.
THE SOLUTION
Grand Estates Auction Company® evaluated the development to determine how best to attract end-user buyer interest to maximize the market value of the properties to best achieve both the developer’s and the bank’s needs. An international marketing plan was created and implemented with the purpose of attracting buyers from across the world by utilizing the auction process. The Grand Estates auction would be an application of expertise, creating urgency amongst contemplative buyers, and motivate them to act for this time sensitive sale. Grand Estates’ proposal included methodology on how to prevent buyers from withholding bids as a means of expecting to secure later property offerings at lower prices. This methodology is essential to protecting the developer’s return and the market value of the units. We knew attracting extensive interest for the auction and property would create competition amongst the buyers, renew confidence in market demand, and result in profitable returns for both the developer and lender.
THE RESULT
Throughout the promotional campaign interest for the properties continued to grow. The properties that GEA represents are ultra-luxurious, and the Mariner’s Club Key Largo is a renowned Keys resort destination. Grand Estates Auction Company®, in a 30 day period, received over 500 inquiries due to the extensive marketing, advertising, public relations and sales efforts. Additionally, 35 Property Purchase Packages™ were sold, our on-site sales staff previewed the development to over 200 groups of people during the 4 day preview period, and registered over 50 bidders for the auction. Buyers’ demand exceeded the initial offering of 7 units being auctioned and resulted in a total of 10 units being sold along with 6 boat slips totaling over $9,000,000 in sales in a single afternoon. The developer, as a result of GEA’s efforts, was able to sell a greater than expected number of units and cover their note in full to the bank. Lastly, the influx of new comparative sales energized activity and stabilized the community, which allowed for other lenders to re-evaluate current loan obligations for other owners that resulted in reduced foreclosures.
