Miami Real Estate Review – Episode 14
July 30, 2010 by Lucas Lechuga
- Trump Towers 3 condos in Sunny Isles Beach are now available for sale
- 1800 Club announces a developer blow-out sale of their last 30 remaining condos
- Media towers passes final vote
- The developer of Artecity, a South Beach condo development, filed for Chapter 11 bankruptcy protection
POOR AJ….WONDER WHAT HE WOULD SAY ABOUT THE BLOW OUT SALE ON THE 1800 CLUB.
Seems like quite a few “blow-out sales” going on lately. Kind of strange, given the allegedly “booming” market.
Regarding the complex Starwood/Corus/Paramount situation, Starwood might be getting 0% loans, but apparently they also paid 20% higher than the next bidder.
Cutting thru the marketing hype, the situation may be analagous to this:
A bank owns a property appraised at 1 million
(1) Investor A offers 800K cash
(2) Investor B offers 1 mill financed at 7%
(3) Investor C offers 1.2 mill financed at 0%.
(3) may be analagous to Starwood’s situation. The move may turn out to be right or wrong. You still have to make loan payments on what may be an inflated value, even though the interest payments are 0%.
The below quote is from the May NYT article about this situation
“But Linus Wilson, a finance professor at the University of Louisiana, Lafayette, who has studied the F.D.I.C.’s real estate sales, says he thinks the price Mr. Sternlicht paid for Corus will hobble his returns. Mr. Wilson points out that 59 percent of the loans on Corus’s books were no longer performing before the bank failed in September, meaning that they were generating virtually no income. Corus described another $558 million in the portfolio as “problem loans” that were near default.
Mr. Wilson argues that if Mr. Sternlicht doesn’t sell condos right away, he may have trouble making his first loan payment of $150 million that comes due in October 2011. “It is far from guaranteed that he and his investors will make money on this transaction,” Mr. Wilson says.”
Alleged Mortgage Fraud up 4% in 2009 with LA, Miami in Top Spots
http://www.housingwire.com/2010/07/30/alleged-mortgage-fraud-up-4-in-2009-with-la-miami-in-top-spots
This is amazing, one week you hear good market news.Next week it’s doom and gloom again.What is it???? Does anyone remember that pest ACE that used to write in here all the time? I can’t even remember what he predicted what Miami Condos would price out @ Sq. Ft.Anyone remember? Thank you Bill
Trump Tower III will have a terrible view IF the Solis or something similar to the Solis design gets built….the Solis is supposed to be THE tallest building in Sunny Isles Beach and is going straight up right on the property line on the water side…..like having a huge billboard blocking your view. So, the south view will really really suck IF the Solis or similar gets built. Just thought you’d wanna know…….. I have been following this stuff pretty closely.
Glad to see that TTIII is FINALLY gonna have some living things inside it!
blow out sales are what will ultimately fixed the market by lowering inventory. that’s what Miami needs
Response to JL…the correct spelling of the word you were attempting to use is analogous. Please double-check your “word of the day” calendar before trying to use it in a sentence to sound intelligent.