50 Palazzo Condos Sold at Auction on Panama City Beach

by August 2, 2008 • 24 comments

That’s right, you read correctly. 50 condos sold at the Palazzo Auction held on Panama City Beach totaling over $17 million in sold real estate. “The numbers were a little low, but we sold a ton and I feel confident that we did better now than we could of, say, six months from now”, said Developer Ron Durham.

What started out as a cloudy, looks like its gonna’ rain, day turned into a beautiful, not too hot with gorgeous deep blue skies, day. In attendance were over 250 people with 126 registered bidders from 14 states and Canada. Required at registration was a check for $15,000 per one-bedroom condo, $25,000 per two-bedroom condo, and $35,000 per three bedroom condo.

One of the buyersThe crowd was slow to start moving with only a small handful of bidders picking up the first couple of condos, but as the auctioneers began dictating the price by what the last highest bidder was, the feeding frenzy began. Upon determining the interior 1,475 sf 3 bedroom condos would sell for no more than $295,000, they starting selling them to anyone that would take one. After the 10% buyer premium, that is $220/sf – not too shabby.

With whistles blowing and auction assistants screaming in frustration, they fought for particular units they were wanting for their buyers, Imagine a school of great white sharks fighting over 10 tons of whale carcass.

“Tell him to stop, cut it off!”, Durham said, “we’ve got to see where we are, we can always come back, we just need to see where we are.” Ten minutes later, they resumed selling at fixed prices – $295,000 for interior 3 bedroom condos, $270,000 for 2 bedroom condos, and $220,000 for 1 bedroom condos.

Nancy Bender was overjoyed in her purchase. Upon winning her condo, she excitedly screamed and waved her hands in the air. “I’ve got friends and family that think my big house on the beach is an inn – I’m moving out and moving into my new condo so I can have guests when I choose, not when they choose.”

The least expensive exterior 3 bedroom 3 bath condo sold for $425,000. With 1,874 square feet, that comes to $227 a square foot before the buyer’s premium fee and $249 a square foot after the fee. The least expensive 3 bedroom interior condo sold for $295,000.

The least expensive 2 bedroom condo sold for $270,000. At 1,345 square feet, that is $200 a square foot before the premium fee and $221 a square foot after the fee.

The least expensive 1 bedroom condo sold for $220,000, at 1,026 sf, that is $214 a square foot before the premium and $236 per square foot after the premium.

Upon asking what his motivation was for buying today, one buyer said, “It was merely a mathematical equation, what were they originally sold for, what are they worth today, and what can I actually buy one for, I got a reasonable deal. This is an excellent long term buy.”

All in all, I’d say the auction was actually a great success. I’d say $220 to $245 a square foot is a great deal for a developer and a buyer to meet at. I actually find this very encouraging for this area.

High resolution pictures available upon request, email jason at pcbdaily.com.

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