Versace Mansion Sold for $41.5 Million

---

Despite glittery aspirations, the Versace mansion failed to set a record as Miami's most expensive home. 

Known as Casa Casuarina, the property once owned by Gianni Versace was sold to VM South Beach, the property's mortgage holder, for $41.5 million during an auction today at the famous South Beach home.

Back in 2012, the mansion went on the market priced at $125 million, raising eyebrows among property experts. In May the price was cut to $75 million. 

The current record for a home sold in Miami is $47 million, according to media reports. 

Fisher Auction Co. handled the sale, which garnered widespread media attention and speculation. 

Other bidders this morning included Donald Trump, represented by his son Eric Trump at this morning's bidding. Mr. Trump met the court auction requirements of a $3 million deposit and proof of financial liquidity of at least $40 million to bid for the 10-bed, 11-bath Mediterranean-style mansion. 

"I'll be bidding the minimum number and we'll see what happens," Mr. Trump told The Miami Herald before the auction.

The 19,000-square-foot estate once owned by features a mosaic-tiled, 24-karat gold-lined pool, ornate sculptures, arched doorways, and a marble toilet with gold seat. It was marketed by celebrity property specialists Jill Eber and Jill Hertzberg. 

The property has endured a roller coaster of events, including owner Peter Loftin filing for bankruptcy protection. Mr. Loftin long battled a foreclosure action by VM South Beach, which is owned by the Nakash family, the founders of Jordache jeans. Mr. Loftin purchased the property in 2000 for $19 million. 

Some property experts attribute the sales price to the mansion's less than favorable characteristics, which include being in the middle of the tourist-heavy Ocean Drive.  

"It's really not practical as a single family residence," Jorge Uribe, senior vice president of One Sotheby's International in Miami, told CNBC. "I don't know any clients who would want to live there even as a second or third house."

Even as a business, the property has setbacks. The property's 10 rooms could make it hard to justify the price tag if it's turned into a hotel.  

"The real value would be if you could tear it down and build a tower," Mr. Uribe said. "But I don't think that would be allowed under preservation."

Mr. Versace was gunned down in front of the mansion in 1997.

Video: Gianni Versace mansion