No sale at $3.8M: Jimmy Jam's former home headed to auction

JIM BUCHTA | Updated 1/14/2014

The 22,598 square-foot house will be sold at auction on February 6, and is expected to be a deal, but can you afford the $95,000 annual taxes?

The house that's unofficially known as the "Jimmy Jam house" is headed to the auction block. The 22,000-plus square-foot house on Hardscrabble Circle went into foreclosure (Jam was NOT the previous owner) and has been on the market for four months. Listing agent, Scott Stabeck of the Stabeck Group at Lakes Sotheby's Realty in Wayzata, said that although the one-of-a-kind house (some say it would sell faster if on a California cul-de-sac during the early 1990s) has been a hot ticket for house shoppers - there were nearly 40 showings and two serious, but unsuccessful offers during those four months - JP Morgan/Chase has now decided it's time to get rid of it, and quickly.

"People are intrigued by the house, and it will obviously be a deal," said Stabeck. "The land is worth $3 million alone, so it will basically be a free house."

The bank has hired Hudson & Marshall, a Dallas-based auction company, to work with Stabeck to host an on-site auction on Thursday, February 6. Bret Richards, sale manager for Hudson & Marshall (here's a link to the auction flyer), said that there is a reserve amount, but that's not public.

"The goal is not to give the property away, but to sell it at a fair price," said Richards.

What's fair will be determined by the bank that owns the house, and prospective buyers will have to arrive with a $2,500 cashier's check just to bid. The house will be sold as-is and there will be no financing contingencies allowed. The house is now listed at $3.8 million, but most recently sold for $7 million in June 2007. Its estimated market value is $6.4 million and annual property taxes alone are $95,000.

So here's a little more about the house: It is on 3.5 acres with 300 feet of Lake Minnetonka shoreline and has a 12-car garage, seven bedrooms and a sprawling home theater. The auction will be Thursday, February 6 at noon at the house. But there will be two open houses on February 1 and 2 from 1 to 3 p.m.