Ten Aragon - 2 Bed/2 Bath Foreclosure - $403,900

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A 2 bedroom/2 bath bank-owned unit with southern exposure on the 14th floor of Ten Aragon is listed for sale at $481,900 ($408.73/SF). The MLS property history shows that it was originally listed at $496,000 on January 3, 2008, reduced to $488,900 23 days later on January 25, 2008 and reduced again to its current list price on February 22, 2008. It has been on the market for 71 days.

Update: The unit was reduced, yet again, earlier this afternoon (3/14/08) to $460,900.

Update #2: The unit was reduced earlier this afternoon (4/5/08) to $403,900.

The MLS listing states that the unit is sold with 2 parking spaces (most 2-bedroom units in Ten Aragon include just one parking space). It also reflects that the monthly condo association dues for the unit are $479.00.

At $0.41/SF, I can assure you that that figure is off the mark. I did not verify with the listing agent, but I expect the association dues to be closer to the $0.60/SF range in this building (about $700/month for this unit).

The original owner purchased the unit for $490,500 from the developer in August 2005 and sold it a little over a year later in September 2006 for $550,000 to the individual who was foreclosed on.

I showed the unit earlier in the week and found it in the following condition:

No counter tops or kitchen cabinet door handles. It looks like the previous owner got caught in the “in-between” stage of remodeling.

This unit features one (1) full balcony and two (2) Juliet balconies with operational sliding glass doors in the living area that allow for plentiful natural light and a circulation of fresh air.

The unit’s location on the south side of the building offers a view of Central Business District (CBD) streets and hints at partial bay views from afar (although I would never market the unit as having a “bay view”).

According to the property manager on site, the building will undergo common area renovations in the very near future. The tile in the elevator lobby of each floor, carpets in the hallways, and trims/baseboards will be replaced. A one-time special assessment will fund the renovations. All elevator lobbies will look like this:

Building amenities include a swimming pool, spa, fitness center, resident lounge, business center, 24 hr concierge and on-site property manager.

Overall, I am a pretty big fan of Ten Aragon. It’s location fronting Miracle Mile and Aragon Avenue in Coral Gables is unrivaled in my opinion. I also think that Dorsky Hodgson & Partners did a magnificent job with the architecture of the mixed-use building and Charles Allem created a great environment with the design of the interior common areas.

However, I am also of the opinion that a lot of the original unit owners and those who purchased resales in the building overpaid for their units. Ten Aragon was originally a luxury rental community that practically never operated as such. It was converted to condominium in 2005 during the peak of the condo boom. As a result, a vast majority of the units were sold and turned over with sub par interior finishes - white mica kitchen and bath cabinets, white appliances, standard white carpet and plain white bath tile.

The addition of 167 residential units at 55 Merrick right next door will bring additional competition to the area. It will be interesting to see how prices are affected in 2008 and 2009.

Tax records and MLS data show that the last unit to sell in Ten Aragon sold on July 11, 2007. There are currently 35 units (19% of the building) listed for sale on the MLS. Twenty (20) listings have expired since the last unit sold. One (1) unit’s status was just changed to pending sale (under contract) last night.

I’m gonna go out on a limb here and say that this foreclosure unit will eventually sell for less than the original median sales price for all 2/2 units on the south side of the building ($374/SF). As a matter of fact, I’m willing to bet a lunch at Houston’s that the unit will not sell for more than $365/SF.

Any takers?