Versace Mansion Sells at Auction for $41.5 Million

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Versace's home

When the Versace mansion first hit the market, it was priced at $125 million. Two price cuts and a few months later, the home was listed at $75 million. When the property headed to bankruptcy auction, the stalking horse bid started at $25 million.

The final sale price? $41.5 million.

VM South Beach LLC, a group jointly held by those who control Jordache Enterprises and a group of hotels, was the winning bidder, according to the Miami Herald.

VM South Beach has long held an interest in the property. The group acquired the mortgage from the original lender back in December 2011. Owner Peter Loftin declared the home’s corporate owner, Casa Casuarina LLC, in Chapter 11 bankruptcy, an attempt to hold off VM South Beach’s efforts to take control of the home’s sale. According to the South Florida Business Journal, the mortgage was listed at $30 million in bankruptcy filings.

With a famous pedigree and over-the-top furnishings, the Versace mansion auction was anticipated to be the “auction of the century,” said Lamar Fisher, president and CEO of Fisher Auction Company. Interested parties were rumored to include David Beckham, Donald Trump and even rapper Drake.

The Beckhams and Drake didn’t show up at the auction, but the Trumps did. Donald Trump’s son, Eric Trump, missed the winning bid by just half a million. Should VM South Beach’s deal fall through, the mansion will go to the Trumps.

Loftin, a telecom entrepreneur, bought the home in 2000 for $19 million and until May 2013 leased it to Miami restaurateur Barton Weiss, who used it as a 10-room boutique hotel.

Built in 1930, the house measures 23,462 square feet with 10 bedrooms and 11 bathrooms, many of which have views of the Atlantic from the home’s perch on Ocean Drive.

The home’s namesake, fashion designer Gianni Versace, purchased the property in 1992 and spent millions renovating the home, adding another wing and over-the-top upgrades such as the 24-karat gold-lined pool, hand-painted walls and ceiling frescoes. Versace was shot to death on the front steps of the house in 1997.

VM South Beach currently owns several hotels in the area, including the Victor Hotel next door to the Versace mansion. The company plans to operate the mansion as boutique hotel in conjunction with the Victor.

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Erika Riggsa real estate writer for Zillow Blog, covers celebrity real estate, unusual properties and home design trends. Read more of her work here

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