New York-based real estate auctioneer Sheldon Good & Co. and Banco Popular de Puerto Rico announced Wednesday an upcoming joint auction of 101 luxury residences and villas located in five developments throughout the island.
The properties have likely been sitting vacant for some time, as hundreds of homes of all price points located throughout the island have not been sold as a result of the the economic downturn that began affecting Puerto Rico five years ago.
The high-end real estate market has been among the hardest-hit by the recession, real estate and banking executives have confirmed.
A total of five separate auctions will take place — one for each complex — on May 21-22, at the San Juan Marriott Resort & Stellaris Casino. This is the first auction of its kind to be held on the island, as it is not a foreclosure, company officials said.
The upscale residences in Villas de Caguas Real in Caguas, Villas de Campomar in Cabo Rojo, Grand Bay Beach in Río Grande, Náutica del Mar in Cabo Rojo, and Haudimar in Isabela will be auctioned off during the two-day period.
Suitable for first time homebuyers, second-home buyers and investors, the properties originally priced from $275,000 to $511,000 will be sold at a suggested opening bid of as low as $80,000. Twenty-five of the 101 residences and villas available will be sold “absolute,” regardless of price, the auctioneers said.
The timing of the auction could bode well for would-be home buyers who could jump on last-minute benefits from the government’s housing incentives program that offers, among other perks, exemptions on mortgage origination and closing costs, property taxes and capital gains taxes when sold.
Last week, Housing Financing Authority Executive Director George Joyner urged consumers looking to buy a property to shoot for a mid-May deadline to buy a home to take advantage of the incentives that expire June 30.
“The developers of these spectacular properties have chosen to use the auction process, to either kick off their sales program or to close out the last remaining units, and at the same time qualified buyers can take advantage of special 100 percent financing from Popular Mortgage,” said John Cuticelli, CEO of Sheldon Good & Co.
“Our unique buyer’s choice method of bidding allows buyers the opportunity to pick the residence of their choice at a price the buyer wants to pay. Developers will benefit by selling a large quantity of residences in a single weekend. It’s a win-win situation for everyone involved,” added Cuticelli.
Grand Bay Beach in Río Grande.
As part of the auction process, the buyer will have the right to choose the residence they want during the first round of bidding, said Javier Uribe, managing director of Sheldon Good & Co.’s San Juan office.
“Never before has a single auction brought together developments of this caliber, located in every desirable area of the Island, and offered them in one exciting buying event. In the case of Villas de Campomar, the 22 units being offered are the remaining residences to be sold by the developer, which speaks to the quality of these properties and the successful sales they have already experienced,” Uribe said.
Starting April 16, interested buyers can view the available residences during pre-auction open houses to be held Saturdays and Sundays from 11 a.m. to 3 p.m. at each of the properties. Additional open houses will take place at each of the properties on April 19-21, from 11 a.m. to 3 p.m.
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Business reporter with 25 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other areas of the economy.