Sale of the Week: what the $6.2-million sale of this Mississauga mansion tells us about real estate auctions

Sale of the Week: what the $6.2-million sale of this Mississauga mansion tells us about real estate auctions



Address: 2290 Saxony Court
Neighbourhood: Mississauga
Agent: Sam Allan McDadi, Sam McDadi Real Estate Inc., Brokerage in association with Ritchies Auctioneers

The Property: A four-storey mansion offering 18,000 square feet of white-oak floors under 23-foot ceilings. Its 1,600-square-foot master suite has a room-sized walk-in closet and an enormous en suite washroom. The independent nanny’s quarters on the fourth floor are larger than most Toronto condos, and they’re accessible by elevator. The residence is situated on a half-acre lot among several multi-million-dollar homes, and is a short drive away from the University of Toronto’s Mississauga campus.

The History:  The Cerny Residence—a landmark turn-of-the-century Georgian revival home that once sat here—was extensively damaged by fire in 2006. Michael Cerny of Ambassador Fine Custom Homes bought the property, then built the existing mansion for about $7 million (the white exterior limestone alone cost $1 million). Attempts to sell the new home at an MLS listed price of $11,000,000 failed over the next three years, prompting yesterday’s auction, at which it was expected to go for half that.

The Fate: As per Ritchies’s confidentiality guidelines, the buyer of the home remains anonymous. Unless the new owner plans to make this mansion a long-term abode, he or she may end up stuck in the same selling trap as the builder. These audacious digs far surpass the price the Mississauga market is typically willing to pay. In the near future, a 24,000-square-foot mansion planned for a nearby lot will provide some context—and some lively competition.

The Sale: Ritchies started the bidding at $5.5 million yesterday, hoping to close at around $6 million—a price cut worth the international publicity. The auction exceeded expectations by closing at $6.2 million after five bids, but it still failed to recoup the mansion’s construction costs. This sale suggests that no-reserve auctions are best left to folks who are willing to take a major financial hit in order to unload a luckless property. A minimum price may decrease the seller’s risk, but it may also result in no sale at all, as in the case of this unit in the troubled Trump Tower. The most expensive Mississauga residence sold in 2012 went for $7.5 million. It was located on tony Doulton Drive, a mere half-dozen mega mansions away.

By the Numbers:
• $6,200,000
• $4,000,000 of house contents were also auctioned
• $25,000 deposit required on auction day for successful bidder
• 18,000 square feet
• 90 days maximum closing date
• 23-foot coffered ceilings
• 15 minutes of bidding
• 10 per cent deposit required within 5 business days of the auction
• 9 bathrooms
• 7 bedrooms
• 4 storeys
• 3 years unsold on MLS
• 1 Photoshopping controversy