Late last year I stumbled upon an ad in a local paper where a notary public was publicly auctioning off 17 units at Jardines del Mar. Public auction means that a creditor – f.e. bank, tax office – has exercised its right for public auction because the debtor has failed – multiple – payments. Creditors refuse negotiate for refinancing.
It’s not common to have this many units going into public auction simultaneously. Obviously, time has run out for the developer and couldn’t sell the units in time to pay off its debts. As a consequence the units were sold below market prices. I think it would have been a great option for an investor to acquire all, to later sell them at market prices.
A softening market was most certainly the cause of the auction. It certainly is a shame that the smaller – perhaps weaker and more creative – developers get into trouble. As sales are slowly going to pick up after years of poor performance, I can tell you that there are still many developers lining up for a piece of land in Aruba’s prime area. As for Jardines del Mar, the public auction is not supposed to affect current owners. The project still has viability because its location near Eagle Beach and scale (only 34 units total).
Small changes are necessary, however. I have toured the premises and it certainly is beautiful, especially the inside of the condo and overall finish and detail is top notch. To make it alive they need to redo the outside, it has no curb appeal whatsoever. Invest a little in bit in marketing as well. It doesn’t have to be expensive, use Facebook for example. Jump start website townhouse.com, that couldn’t hurt either.