Great Artwork in Miami Condo Buildings
June 26, 2008 by Lucas Lechuga
The one above is my favorite. It looks so much better in person though. This piece can be found at 900 Biscayne Bay on the 15th floor between the club room and spa. The building is full of art and the developer has chosen the pieces from local art galleries. I've visited 900 Biscayne Bay over the previous 5 days in a row showing units to various clients. The more I visit this building the more I LOVE it. Of all the new condo buildings completed within the past 2 years, this is hands down the BEST. The quality of the building and units is impeccable. The views are fabulous as well. When I show clients units in various buildings, I usually leave 900 Biscayne Bay last on the agenda. It's on a completely different level.
I found the piece above to be quite interesting as well. It can be found on the rooftop lounge room at 500 Brickell. The building has lots of artwork throughout the common areas. You'll definitely find more artwork at 500 Brickell than other Related Group condo developments in Miami. I wonder if Icon Brickell will have as much eye candy when it is completed.
I heard that there's going to be an art show at Quantum on the Bay next week. I saw various art pieces throughout the lobby on Monday or Tuesday that I found appealing. Does anyone know the date and time that this art exhibit will occur?
Another very interesting piece of art work worth mentioning would be the snippets of the Painted Berlin Wall replicated in glass (or framed in glass?) in the Lobby of the 1800 Club.
Lucas, the artwork looks great, the green parks look real green but could we please stick to the main topic. Where are the best deals, which buildings are suffering the most pain. Which are buildings worth buying into and which buildings are probably best to avoid. Save the fluff for the lovely models at the sales office in the building.
Lucas, keep doing what you’re doing. The references to the parks and the art, etc etc, are so informative to your followers outside of the market. If doc T wants additional building info, let him sign a buyer contract with you.
Why is there a flurry of news today (Not withstanding the stock market tanking by 358 points) that we might have reached the bottom in housing in May? (CNN, NY Times, Yahoo News etc.).
May or may not apply to Miami, Phoenix and Vegas immediately but looks like the slide has stopped or significantly slowed down. Probably the great flat line has started which might last a few years, not as much as Japan in the 90’s but a shorter one. A line that neither dips nor rises.
I am of the opinion that the flat line will be short lived for two reasons.
1. Population is exploding. By 2050 UN predicts there will be 9 billion souls in the world and almost all of them will be living in the cities. Only the very very rich and the very fortunate will be living on the waterfront or in water view properties. If you think the income inequalities you now see are unacceptable, wait until you see the haves and have nots in the near future. People will be building on top of graveyards in the future. Land would be extremely scarce.
2. Every commodity that goes into making housing will cost the Earth. When petrol hits $200/barrel next year (Goldman Sachs prediction, not mine), how can a luxury condo be given away at $150/sf?
You mean to say, one sf of Miami downtown property cannot even buy a barrel of crude (which by the way will produce no more than a few gallons of gas)? That is F*ing ridiculous. So if you can dig up a 1000 barrels of crude from your back yard in Texas, you can buy a 1300 SF 2/2 Miami property according to a few Nostradamuses here. That is one load of bull I will never believe. I would have considered $150/sf a possibility If commodity prices such as food, oil, steel, cement are not exploding like they are and inflation is under tight leash. But none of those things are happening – and no chance of them happening either. A billion Chinese, A billion Indians and a half a Billion Russians, Brazilians and Mexicans etc are beginning to live like Americans. Commodities will be sold in Ounces very soon, not in tons and barrels.
In a very short and few years, it might cost one billion dollars to build a 900 Biscayne instead of 100-200 million it took to build it in 04 to 07.
Credit crunch or not, liquidity or not, I just do not see how these condos can be given away for a song. I am sure something will happen here that will surprise all of us.
I will close with a stunning prediction in NY Times article; How can anyone predict a bottom until you are 6 months down the road and you see it in the rearview mirror and realized that it just passed you. It is just like predicting the top which many could not until it is too late for them.
Retirees buying up real estate? Maybe…
http://www.nytimes.com/2008/06/27/greathomesanddestinations/27retiree.html?_r=1&8dpc&oref=slogin
AJ – No disrespect, but every one of your arguments (and so many more) have been used by discredited reatlors and investors. Real estate never goes down, right?
But ah, you must be an owner. So I understand. Gotta tell you though, citing worldwide population statistics and the price of crude oil doesn’t convince me.
Lucas, like Bill said, keep doing exactly what you’re doing. If people want to know where the deals are, they can hit up your (very) helpful listing on the right side of the page, or hire you. Geez, you provide a free public service and people still complain.
DOES ANYONE HAVE PICS OF 1800 FROM WHAT I SEE ON SOME WEBPAGES IT LOOKS REALLY NICE. WITH GOOD ARTWORK THERE. MAYBE WORTH A LOOK ON THIS THREAD TOPIC.
AJ,
It’s called inflation and unfortunately that may be how we dig ourselves out from all the debt.
When the average unit is going for $1500 per square foot, the fees will be $10,000 per month.
My building’s fees are going up 10% this summer, with no foreclosures or capital improvement projects in sight.
Hi JR56.
Here are the pics I took of the 1800, my 2/2 and also the views from my unit. You can click on the slide show option on top left to see the largest size pics. You can reduce the default display time setting also (currently set at 4 seconds):
http://picasaweb.google.com/biscaynebay/1800MoonriseOverTheAtlantic
Beautiful pics, AJ. What floor are these from?
Thank you for sharing.
Hi Bill, These views are in the 30’s. But from 25th floor to 42nd floor (the highest), there is not much of a difference in the view. You will just see a bit more ocean as you go up higher.
More Troops,
I understand what you and some others are saying. But there is a paradox here. I will get to it in a minute. First let me clarify; Yes the realtors used the population explosion theory and so many other things to scare up the people in the 04, 05. They told them, if you do not get in the bus right now, you never will.
There is a difference in what I am saying. I am predicting a flat line for a while. A period of uncertainity during which neither there is a rise or a fall. An uneasy sense of equilibrium has been achieved.
Let us examine the arguments of both bulls and bears of housing:
Bears:
1. Excess inventory
2. Weak economy
3. Tight lending standards
4. liquidity or credit crunch
Bulls:
1. Population Explosion. The most rapid increase of population at any time in our history.
2. The economy cannot be in recession for ever. Infact most recessions are only a fraction of the time of expansions.
3. Lending will come back to market and the credit squeeze will soon be over.
4. Inflation will also make real assets such as commodities and housing very valuable.
5. No more waterfront land left to be developed in Miami Beach and in Miami proper, only a handful of parcels are left such as Villa Magna, Paramount Park etc. Waterfront land will become extremely scarce and very very pricey.
6. Finally the most important and compelling argument; If it cost ‘x’ amount of dollars to contract to build Marina Blue or 900 Biscayne or a Q or 18 in 2003 and 2004 prices, It will cost double at this very minute to build those again. And in 5 years from now, those costs may quadruple.
Believe it or not, as per NY Times article, Burj Dubai is selling its residences at $3500/sf. Yeah, it is not a typo. And people are lapping it up (I know it is stupid, I close my nose when I utter the words ‘Dubai’ with contempt and derision, but looks like there is a market for $3500/sf condos there). In that sense, the current prices in Miami seem like a bargain and also portend a trend to the future.
I am of the view that at this present time, the Bears and Bulls have achieved an equilibrium and it will last for a while. When one set of arguments outweighs the others, their point of view takes over.
I would like to say that the flat line will tip sooner or later in favor of the bulls arguments only because, the bears arguments, however valid, are all temporary phenomenon, ready to change soon.
The bulls arguments are very substantive and quantified. You can not argue about that except about the timing and when it is going to happen.
That is why no one can predict how long this equilibrium will last. But one thing is for sure, it will definitely tilt towards the later.
The pictures of 1800 are nice but I am left wondering: are you an extreme minimalist decorator or is that you do not live there full time? I like everything about 1800 except the pass through kitchen. They should have just made it an island.
On your bull v bear comments: Frankly life is short and if owning a waterfront condo is your dream and you will not mortgage your soul to own it then buy and don’t look back.
If you are stretching to buy now because someone tells you it will be out of your range in the future (or worth alot more) then grow some balls and do what you know is right for your financial situation. If you really want an investment that always appreciates buy a Monet.
As to your Bull #6- if there are no more waterfront property left to build on then it doesn’t matter what it will cost to build in the future because there is no land to build on.
On another note, I think your comments are a great addition to the blog. I do not agree with you often but you make the blog more interesting to read.
Comment 13 are directed to AJ. Sorry for the omission:-)
doc t, lucas can write about what he wants, it’s his blog for God’s sake.
I want to know where the hell the developers bought these nice paintings. Especially that last one, i love it. Lucas, you say that they were all local artists. I cant tell you the number of galleries and shows I’ve gone to and have not found anything half decent. I guess I’m looking in the wrong places, can someone please direct me?
Beautiful updates, truly awesome! It’s not just about the facts and figures of where to buy, it’s about the neighborhoods they’re in the, the parks, schools, museums, etc. Great job Lucas! 🙂
I like what I heard Barbara Corcoran say on the Today show- You can’t sharpshoot a bad market. It’s bad now, if you want to buy, buy.
And yes, you can’t predict when a recession has flatlined, etc, so just buy with the intent to hold on to it for a long time.
I also heard, and I don’t remember where, that when we do recover, it will be a “V” and appreciate rapidly again..I’m sure everybody is sick of hearing my “urban planning” hubbaloo, but in that aspect, I think it will be somewhat true.
But hey, I always feel like the naive, optimistic viewpoint in this blog anyway…
You can’t predict the bottom!
Prices will increase from now on!
These price declines are irrational!
Construction costs!!!!
Pour me another drink. This is tiresome.
aj
well said i agree with your last comment. cost of construction is #1 in the rise of housing prices again. even building a nice highrise in a non waterfront parcel will still need to be priced above $280 a sq ft, or it will not get built.
1. Population Explosion. The most rapid increase of population at any time in our history.
People are actually net leaving Florida and that trend will likely worsen as the job market declines. State, County & Civic financial troubles will lead to more population/employment contraction.
2. The economy cannot be in recession for ever. Infact most recessions are only a fraction of the time of expansions.
5-7 Year bubble leads to 10-12 year depression like environment in housing. Way early to even attempt to call a bottom.
3. Lending will come back to market and the credit squeeze will soon be over.
Lending will NEVER come back the way it was the last several years (Pay Option, Alt A, Piggy Back, Sub P, Neg Am, Etc) all of those products led to unsustainable high prices that must correct to historical trend lines.
4. Inflation will also make real assets such as commodities and housing very valuable.
Possible with dollar crash/panic…..wages would have to rise which is not happening now.
5. No more waterfront land left to be developed in Miami Beach and in Miami proper, only a handful of parcels are left such as Villa Magna, Paramount Park etc. Waterfront land will become extremely scarce and very very pricey.
Can’t be priced higher than people can afford to pay and a 20-30% downpayment will be needed.
6. Finally the most important and compelling argument; If it cost ‘x’ amount of dollars to contract to build Marina Blue or 900 Biscayne or a Q or 18 in 2003 and 2004 prices, It will cost double at this very minute to build those again. And in 5 years from now, those costs may quadruple.
Raw land values are declining which makes such projects millions of dollars CHEAPER to build.
Labor has no pricing power and materials may decline in price as well.
everyone here has valid points about their views whether bullish or bearish. there is one and only way things will stabilize. the access to credit in the country across the board is GONE. until it thaws (and there are signs of thawing…some of the 330 bil stuck in auction rate securities, for example, is being refinanced and redeemed back to holders, etc)…things will not liquify…and it won’t liquify like it was from 2000-05. so that’s over. prices won’t go up for 5-10 yrs…there’s just too much inventory still to come online.
having said that, based on what your goals of owning are, then the next 6-18 months will probably show some decent deals IF you want to just buy a place and keep it…not if you’re looking to buy and sell.
i bought a car 2 wks ago…got a small loan for part of it until i pay it off next month when some $ frees up. i got the loan no problem. next day i got a call and was told that the lender (JPM) had to be swapped on the same rates (to Bnk of Amer) because JPM was ‘acting up’. my credit score is 805. until this kind of nonsense starts to clear up and they start to lend again to people who are not risky…then forget real estate as an investment. if you’re fortunate to buy w/lots down..and to keep for at least 10 years…then you have NO business buying squat!
don’t think AJ understands economics.
Typical of south floriduh!
better suited as tantra guest, i presume.
Hi Storm,
Yes, I am a minimalist but not an extreme minimalist. The pics are taken just after putting the tiles and painting the house. I agree with you about the island kitchen though. It is a very simple conversion process. I will do it in a couple of years. Thanks.
Swiss Luxury,
Yes, everyone has a point of view and we can argue ad nauseum. I still do not claim that the bear or bull arguments have an edge over each other. I said that the bear variables are very fluid and diminishing with time and eventually dissipate. The bull variables are here to stay. No one can predict the time it takes for one variable to outweigh the other, which will have a million forces at play and influence. Every argument will get thrown out of the windo if there is a massive terrorist attack in the country or if the US-Israel attacks Iran and so forth. We are mere mortals. So what we can do is just an educated guess. I was merely quoting a few stories that March to April, the housing has witnessed a 0.3% rise. An inconsequential rise but a rise nevertheless. Some economists are saying that May might have seen the bottom. I also do not agree with la la’s “V” recovery. I believe that for a while there will be a flat line, at least in terms of Miami props.
I have always felt that late ’03 and beginning ’04 prices of Miami RE is reasonable. The gains from summer 04 to summer 06 are are bullshit gains on the paper driven by speculators and the prices will eventually settle back down to the winter 03 levels. Now that we are actually seeing those numbers getting close by, I am confident that many of these economists might be right about the bottom approaching or already approached.
REDC is auctioning various Brickell condos and others of interest. I got a chance to see some and here are my observations:
Vue, 1250 S. Miami Ave – 3 units were available, this place has uninviting enterances, hallways are dark, and not particularly clean, A/C was only working on some floors. units are very basic; on the positive side, it is close to the brickell nightlife, pool area seems Ok, gym overlooking pool is ok.
Jade, 1331 Brickell Bay dr., unit 502 – impressive enterance, lobby; semi-private elevator takes you to this designer ready 2/2; large balcony of street view, and a separate smaller balcony with a bayview. Realtor said this unit previously sold for $1.5M which is outragious for what you get in this 1460 sf unit. He admitted this place is notorious for mortgage fraud. With- reserve bidding starts at $289k.
Mark, 1155 Brickell Bay – I was unfamiliar with this waterfront bldg. I like the elevated enterance and waterfront location, but lots of view will be lost once Magna lot is developed. Unit was outdated with low popcorn ceinging and a lot of 80s syle white cabinets. Wrap around balcony was nice, but all the railing’s chipping paint may indicate poor bldg maintenance.
Uptown Lofts, 2275 N. Biscayne, #502 – high unfinished ceilings give that industrial look, but didn’t particularly look good. $387 maint in this 775 sf unit. Lobby/common areas are small but tidy, but pool is too small and only 4 ft deep; bidding starts at $69k.
Mirador, 1000 West Ave, #202, lots of action around this place, nice lobby, and large pool area with great bayviews with downtown in the distance. Lots of eye candy. Unit had nice marble floors installed, but this 2 bdrm is otherwise a dump, peeling paint, terrible closed in kitchen area, and view of roof area. Close to traffic, loud with old window that wont keep out noise or heat, but may work on rain. Previously valued price of $475K is a joke. Lunch at Oliver’s across the street was not bad.
Has anyone previously attended these REDC auctions?
perez said: “Mirador, 1000 West Ave, #202, lots of action around this place, nice lobby, and large pool area with great bayviews with downtown in the distance. Lots of eye candy. ”
1. The “eye candy” are mostly all renters.
2. Be careful. I have heard the City of Miami Beach isn’t “done” with them. (For that reason, AVOID South Bay Club at all costs!)
Un-Related,
See my post under 500 Brickell. I would appreciate if you can contact me. Thanks.
Sam,
I will e-mail you Sunday
I am not a big fan of the REDC auctions most of the REO’s that go there have been sitting on the market with no bids and the fact that they have a reserve and charge you a premium if you do win I just think I would rather just get a regular Bank Owned Listing. Now if they make the starting bid a bit higher and don’t place a reserve then I would definitely buy in auction. As of now I wont go through the trouble of getting a cashiers check, inspecting and doing all the due diligence so some Loss Mitigator in Milwauke with no idea of the market in Miami can set a high reserve
Hi AJ! Appreciate your point of view and passion for Miami….We owned a 3 Bedroom unit at JADE and loved living there…..Originally bought in 2003 at 1.1…then of course had to put big $$$ building the unit out…..thought we would stay for a very long time but as a businessman felt the Miami real estate market was getting way out of hand….put the unit up for sale in mid 2005 and got VERY lucky and sold it for around 2 million! The unit went into foreclosure about 3 months ago and just sold a week ago for $950K. Someone, or some bank had the privelage of losing about $500K per year by owning this unit…..$950 goes back to 1998-99 prices…..now multiply this experience by tens of thousands of units and all of the new inventory coming online and it makes it hard to think 2003-2004 pricing is a realistic bottom…….If you were a lender how much would you now lend on this or comparable units?
At the end of the day I would like to buy another luxury condo on the top of one of the new buildings, but not sure if any purchase would be safe until 2010-11…..Also the city needs to get the infrastructure started: Museum Park, Baseball Stadium, etc……sure it will go over budget, sure there is corruption, but first class cities have these things and they don’t waste 10-20 years getting them done……If the Braman’s of the world stall this stuff long enough we can always move ourselves and our businesses out of Miami…….Good luck to all!!
Anyone else annoyed with the short sale listed prices. The listed price is totally meaningless unless the bank agrees after looking at offer for 3 weeks–its like the car dealers you have to read the small print.
Another end of the world prediction just like so many other here. LOL. If you love Astro-Physics, you will love this piece. Spiderman kind of stuff.
Hi Swiss,
Congratulations on your good fortune of getting out of Jade with your shirt on your back and a little bit more.
Having said that,
1. Jade is a wrong example, what with such severe mortgage fraud etc. in that building.
2. Yes foreclosures are selling at a rate much lower than the 2003-2004 base figure I expect the prices to settle down. So how is it a big news?
When I expected prices to stabilize at 03-04 levels, it is accross the board, not just isolated foreclosures. If the prices in the United States accross the board crash to 98-99 levels, we all might as well start applying for visas and cleaning jobs in the houses of the Chinese, the Indians and the Russians. It would be nothing short of cataclysmic and it would never happen. Have faith in this great country.
There is a reason why, this foreclosure mess might not become as worse as initially thought.
1. The banks have indiscriminately foreclosed and repo’ed the houses in the first year of this mess and realized their folly big time. They are stuck with homes they cannot sell or do not want.
2. The banks are very seriously working with anyone desirous of keeping their homes by rewriting the loan terms, refinancing their own loans to fixed interest, giving more time etc. which are unheard of actions by any bank ever before. The banks have realized that there is a good chance, they can recoup their principal and may be some interest by working with the home owner than repoing the place and having to do a fire sale for half price.
3. The congressional plan that passed with $300 billion to stave off some of the foreclosures will have an effect, however small that effect may be.
4. The last Larry King show on this foreclosure mess had one interesting aspect discussed. Having a foreclosure on ones record is no more a stigma like it used to be. They are actually getting back in to the market for a home again but this time it is for a more realistic home that they can afford. For eg. those who lost a McMansion are looking for and buying a midlevel home and those who lost the midlevel homes are looking for a starter home.
That is what it should always have been in the first place. Buy only what you can afford but the gluttons and the greedy that we Americans are, who listens?
Just like the high gas prices are finally shaking up the lazy fat asses of this country to change their living habits, this foreclosure mess is also godsent to teach the similar people to live within their means. When this whole thing gets sorted out and dust settles, we will come out strong and more responsible humans (I hope) but it will not lead to such doomsday scenarios of our property prices turning to dust.
Swiss, Can you elaborate on how the Bramans are stalling a project and what project are you talking about?
SwissLuxury the Last Comparable 3 bedroom at Jade was $880K, what 3 bedroom at Jade are you refering to that sold for$ 950k?
SwissLuxury also what was at the time the real market for 3 bedrooms at jade, where the people that were looking to pay 2Million real buyers that were buying the places for themselves or where they asking you to sell it to them for a higher price and asking for seller contributions in the contract? where they and/or assigned contract offers? I have seen so many double closings on the property records at Jade I am assuming the offers were placed as an and or assigned buyer. If the market was really $2 Million for 3 bedrooms at Jade then the prices are already down 60%
Plaza on Brickell is doing great! some building in miami are just doing well.
i have a friend living at plaza and he told me people from all over the world bouth a second home and it is very easy to rent it out
Hi AJ, 3 Bedrooms at JADE were all asking 1.750 to 2.1 mil in late 2005 and there wasn’t a single foreclosure in the building…..Currently the listings are from 1.045 to 1.625 & most are around 1.3….but they are not selling so we should see lower prices if/when these units sell……We wanted to take a look at the old unit but it says “pending” sale as of 6/23 and was listed at 950K……If we go back to 1998-99 prices it might not be the end of the world as it makes downtown Miami more afforable for regular folks and true end users. The real problem that congress and the powers that be can’t solve (without much lower prices) is to get back to normal lending procedures. Many of the lending companies are already BK or virtually BK (Countrywide, Wamu, BKUNA & Wachovia are all under severe stress) and the ones left standing are blacklisting FL condos. After moving out of JADE we rented at One Miami and our landlord tried to sell our 2 Bedroom at $500, then $475, then $450, then $395…..no takers and now you can easily buy one at $300K. I think $200K will be the true bottom for those units and that is an amazing hit if you bought in the $400’s.
Aj,
I googled Braman and this is what I found. I hope this helps answering your question..
You can smell another leg down coming centered around the high end of the economy, particularly in South FL. The Non-Bears were still floating the idea that the high end was immune up to 6 months ago, but now you see evidence everywhere that the yacht market is in trouble – probably the best indicator of true wealth in South FL ( it’s common for people with $1million homes to get rejected on a $300K yacht loan, the financing requirements are infinitely more stringent, and thus the wealth is a lot more real in Yachting than in RE.)-.
http://www.sun-sentinel.com/business/sfl-flznewriverbox0628sbjun28,0,3799184.story
Housing starts, housing sales etc. are all very lagging indicators. To get a better idea of the future, you need to look at metrics that aren’t on the normal radar.
What I find interesting is the yacht market is crashing and so is the Ferrari F430 spyder market. If you believe a “wealthy” person will first sell/delay buying his Ferrari and neglect/sell their yacht before selling their home, then you can smell the next move.
That will be the day when you can walk into a Ferrari Dealer and purchase a 430 or a 599 at sticker and none of this waiting list nonsense and 50K over sticker asking prices for used 430Spiders.
On boat terms if you go on Boattraderonline.com and search for boat listings more and more listings are Bank Repos and the listing broker is National Liquidators I have even seen MarineMax Listings that when I called to go see the boat I was told it is no longer available because it was repossed. It is starting to feel like the MLX where I see more and more Bank Owned Properties every day and when a property is in the market as a short sale it is no longer available because the sale date already occured and it went to foreclosure. If I was a yacht broker I would want to get Banks as clients so I can get all the Repo listings I wonder if when they liquidate a repossed Yacht the Bank still pays 10% commision to the Broker, anyone in the industry know more about this or care to share their knowledge of repossed boats?
What was the MLS price of Jade unit #502 being auctioned? Bidding starts at $289. They’ll be lucky if they get up to half of the last sales price of $1.5M.
Alejandro, you mentioned REO might be the way to go. Are you seeing any attractive Jade REO?
That unit for auction at Jade is horrible. The view sucks and most of it will prob be obstructed in the future once they figure out what to do with the Villa Mana parcel. The unit is retarted….it’s decorator ready!!! Why did it take the bank so long to foreclose on a unit… no one has ever lived there. Wasn’t Jade completed years ago!!
also with a Maintence fee of $1100 – $1200 a month I don’t see that unit sellin no more than $350 – $375 if it’s lucky. Frankly at $300k it’ still not worth it. Nothing special with an overkill on mainence fees and a semi view.
Only thing you’re paying for here is location and a nice overall buildin but your gonna get killed on maintence.
Barbara Corcoran is a blow hard and makes the best KOOL AID..
Perez This is the Way I see Jade Prices Going (all variying by floor height, finishes, flooring,etc)
1 bedrooms $190-230K
2bedroom 1500SqFt $400-450K
2/3 Direct Ocean 1730 $550-625k
2/2.5 Direct Ocean 1878SqFt $575-650K
3/3 2130 SqFt $720-820K
4/4 3415 SqFt $1.3-1.6M
Or an overall 60-75% drop in price in Jade from where they were selling at the top.
Please Note that the 4/4’s are rare in Brickell so there is a higher demand for those as 4 bedroom apartments are rare in Brickell and this is the closest thing to a higher end 4 bedroom at the Santa Maria. I also think the Jade is going to be the one of the first buildings in Miami to bottom out as almost 50% of the building has gone into Foreclosure and it is heavily blacklisted so all the trades we have been seeing have been cash deals. WHen you take out all the liquidity of a building which is what blacklisting a building does and you have 1/2 of the building go into foreclosure you end up with a glut of units in that building all in the market competing against each other which is exactly what we are seeing in Jade right now. And all these REO’s are competing against each other in Jade and they are all having high carrying costs and adding on to their books. Banks don’t rent out and wether the storm they have a loss mitigation department that “mitigates” losses. In my opinion if banks started financing all their own REO’s (which would make sense because they are selling usully for half of what the Lender originally aproved the loan for in 2005) to qualified buyers with 20% down payments and full doc loans then they would actually start mitigating losses, probably sell their Bank owned inventory for a higher price and actually have decent collateral because they are giving loans on properties that are already discounted 50% and then on top of that they have a 20% down payment
I found an interesting thread on a blog about Miami that is not real estate realted…but the topic is on real estate. Here is a link:
http://www.city-data.com/forum/miami/362046-empty.html
Once again, the view is primarily a city view from a large balcony, which is nice, and it doesn’t look like Villa M. is going to be built anytime soon, so water view from other balcony will be good for years to come.
In addition to the high maintenance, the taxes were $20,569 last year; it’s tax assessed at $928K. Zillow still has this unit estimated at $1,145,000; it looks like previous list price was $654,900, even though last unreliable sale last year was for $1.5M. What a joke, a million less in one year! I wonder if the bank is still using their loan appraiser.
This auction is with reserve so bank will probably reject highest bid, and hold onto unit. These banks need to face reality, cut their losses, and auction these mistakes absolutely without reserve.
Thanks DLJ.
Yeah and to add to that I don’t think the Miami Dade Tax assesment is looking forward to asessing these lower cause they lose more revenue. This is another thing that needs oversight is to make sure the assessments are right and not bumped up cause the county nows they are gonna take a huge hit on revenues if properly assesed.
Either way that unit @ Jade is doomed along with others.
Also ALejandro i think your outlook on prices there is still a bit off. I think we’ll see 2/2 @ Jade in the low to mid 3’s.
Look at Vue and 1200 Club tanking into the low 100’s. Granted not even close to quality as Jade but If you can buy a 2/2 at Vue for $130 – $150 then Jade would be worth no more than double cause it’s better.
Where do people see AXIS heading. i think @ 300K + is too high. I think it will hit in the 200’s for 2/2 and the 1 bd below $200k.
axis and infinity are going to be very interesting projects. they were both rebel projects in that they’re west of the main drag i.e., brickell avenue.
axis looks nice. still overpriced when you consider that the vue gives you more bang for the buck.