Due to bankruptcy, 124 unsold residential units and three unsold commercial units of the Artecity project will be auctioned off to gain ultimate ownership.
The auction will take place June 29th but will not include 35 residential units currently under contract to individual buyers.
At stake at the auction are 43 units with more 45,000 square feet in the Artecity North Tower; 38 units with more than 45,000 square feet in the Artecity South Tower; 18 units with nearly 12,000 square feet in the Artecity Governor condo-conversion; 15 units with nearly 16,000 square feet in the Artecity Park Villas; and 10 units with more than nearly 8,000 square feet in the Artecity Plaza Building, according to court records.
Two commercial condos in the Governor Building and one commercial condo in the Plaza Building will also be included in this auction.
Peter Zalewski, a principal with the Bal Harbour, Florida based real estate consultancy Condo Vultures LLC, says Artecity ownership has many advantages.
“At the right price, Artecity has the potential to turn into a memorable venture for the ultimate owner of the 127 units being auctioned,” Zalewski said. “Besides efficient floor plans, Artecity enjoys a location that is within Miami Beach’s cultural district and walking distance of the sand, the Lincoln Road pedestrian mall, and some of South Beach’s most popular destinations.”
Buyers need to beware of the stalking horse bidder designated by the U.S. Bankruptcy Court. According to court records, Corus Construction centures LLC, the secured lender, has been granted the right to make an opening credit bid of $50 million and may credit bid up to $51 million plus any outstanding indebtedness incurred leading up to the auction.
Bidding for the Artecity units is scheduled to occur at the U.S. Bankruptcy Court Southern District of Florida courthouse on Flagler Street.
Bulk buyers were required to submit a refundable $1 million earnest money deposit to prove they can complete the transaction and will be notified by 5 p.m. on June 27th if eligible to participate.
According to Condo Vultures, the Artecity project is one of four complexes attempting to sell more than 800 condo units created during the real estate boom, but still remain unsold.