Palazzo Auction Is A Success
Developer Ron Durham held his absolute auction of 28 units at Palazzo Condominium. Hundreds turned out for the first absolute auction of a gulf front condominium in Panama City Beach. Palazzo is known for its great interior finishing, spacious floor plans and oversized balconies. The end units well thought out floor plans make great use of a view that seems to go on for ever.
It started out looking like a repeat of the Marina Landing Auction. They started bidding on 3 bedroom end units. The first one finally sold at 475k after what seemed like hours because the auctioneer didn't seem to want to end at 475k. The second 3 bedroom sold at 425k. At that point we heard a familiar phrase from the last auction. "The next one is the last 3 bedroom we are going to auction". This is what we all heard at Marina Landing before announcing they would auction 2 more units and end the auction. So, the third and final 3 bedroom brought 475k. Then we heard something we had not heard before. The auctioneer asked if anyone else would like to buy a 3 bedroom end unit at 475k. He found one person who took the offer.
With that they moved on to the 3 bedroom interior units. They auctioned off 3 with bids of 325k, 325k, and 295k before ending the 3 bedroom interior units. Once again people were asked if anyone would like to buy any more of the 3 bedroom interior units at 295k. The bidders were quiet for a moment looking at each other when suddenly bidding paddles started finding there way into the air in a frenzy. Auction assistants started blowing whistles and screaming in frustration to get there bidder the next condo. Three sold in less than a minute, whistles and bidding paddles were everywhere. Durham ran to the stage and announced
"cut it off, we got to see where we are at". When they started up again they took bids on the 2 bedrooms. The 2 bedroom auctioned off at 270k when they announced the same thing. Once again units started selling one after another. A single one bedroom was auctioned at 220k when they announced they would sell one more at 225. At that point the auction was ended, but an announcement was made that all floor plans were being offered at the last biding price.
I am not sure who has the final count, but the auction boards showed:
3 Bedroom End Units
- 6 sold just before the auction
- 3 sold at auction
- 3 were purchased at the last auction price
- Pricing during the auction was 425k to 475k, with pre-auction sales above 500k
3 Bedroom Interior Units
- 3 sold at auction
- 14 were purchased at the last auction price
- 2 that sold before the auction
- Pricing was 295k to 325k
- 2 sold at auction
- 11 were purchased at the last auction price
- Pricing was 270k
- 1 sold at auction at 220k
- 1 other unit sold at 225k
Please keep in mind that a 10% commission was added to everyone's purchase price. So, if you bought a:
- 3 Bedroom End Unit for 425k, you paid $467,500 which is $252 a square foot
- 3 Bedroom Interior for 295k, you paid $324, 500 which is $220 a square foot
- 2 Bedroom with bunk for 270k, you paid $297,000 which is $220 a square foot
- 1 Bedroom with bunk for 220k, you paid $242,000 which is $235 a square foot
The final results won't be known for another 45 days. There is usually some fall out of condominium buyers during the condominium documentation review period. Having said that, we could see several more contracts written if the developer chooses to continue offering some of these prices in the coming week.
Many of us were surprised at the prices the developer chose to sell at. Some of us were given guidance as to pricing expectations that were substantially higher than the prices offered. Offers on units were also declined prior to the auction that slightly exceeded the prices units actually sold for. Regardless, this is the first time a developer has sold condominiums in Panama City Beach at prices this low. No matter how you cut it, the auction was an overwhelming success. In a market where June only produced fifty-nine condominium sales in the entire Panama City Beach area, Palazzo sold forty-six in a matter of hours.
Please keep in mind that I am getting my sales numbers from the auction sales boards after the auction. These numbers will change as some bidders cancel and others write contracts.