So much for Miami's first $100 million sale.
The South Beach mansion, once owned by Italian fashion designer Gianni Versace, was sold for $41.5 million to the mortgage holder, VM South Beach, by Fisher Auction.
The price marks a sharp fall for a house that got widespread media attention and listed last year for $125 million.
Although the listing price was later reduced to $75 million, many expected the house, called Casa Casuarina, to become the most expensive ever sold in Miami, far exceeding the record of $47 million.
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When the 19,000-square-foot estate on Ocean Drive was home to Versace, he entertained Madonna, Princess Diana and others at the house. He was shot and killed on the front steps in 1997.
The property has a mosaic-tiled pool lined in 24-karat gold, an elaborate courtyard, 10 bedrooms and 11 baths. It was marketed by the "Jills"—the Miami real-estate duo of Jill Eber and Jill Hertzberg—and was featured on NBC's "Today" and other shows.
The current owner, telecom entrepreneur Peter Loftin, bought the property in 2000 for $19 million. He placed it in Chapter 11 bankruptcy this year after a financial dispute with VM South Beach. VM's principals include the Nakash and Gindi families, both of New York.