Miami Condo News & Rumors

March 25, 2008

I’ve heard, saw and ascertained much on the street within the past couple of weeks regarding the Miami condo market but haven’t had the time to write an in-depth post about each item. I figured that something short and sweet is better than nothing at all. So here it is:

• As many of you have already heard, a construction crane fell this afternoon at around 1:45pm at Paramount Bay. 2 people were reported dead and 5 reported injured. My warmest regards goes out to all with family or friends involved in the accident. The crane fell through the roof of the home that belonged to Mary in the 1998 film Something About Mary. Though many of you have called and emailed, no, Mary was not harmed during the accident.
• This one goes into the “rumor” category. I’ve heard that BAP Development is on the brink of bankruptcy. BAP Development is the developer behind Onyx on the Bay. Closings for condos at Onyx on the Bay began on July 31, 2007. My February condo closing rate post revealed that Onyx on the Bay was able to close only 45.38 percent of its units at the time. Another rumor that I’ve heard, but haven’t been able to confirm, is that Continental, the property management company, walked out on Onyx on the Bay because the developer was unable to pay them any longer. Anyone hear anything regarding this?
• Another rumor here. A loyal reader revealed to me today, via email, that he heard today that Boca Developers “went belly up” . Boca Developers is the development company behind Peninsula I, Peninsula II and Biscayne Landing. He also stated that he was able to confirm that Boca Developers “cut loose” their sales staff for Peninsula II and Biscayne Landing. Has anyone else out there caught wind of this?
• Closings have begun at Continuum North Tower in South Beach. I’ll get my chance to tour the newest addition to South of Fifth this Thursday morning with some out-of-state clients. I will try to share what I see that day with readers of this blog at a later date.
• There’s going to be some great additions to Midtown Miami. This one I heard from a Midtown representative last week. The two parcels of land between the Midtown shops and the two condo buildings just east of it, Midtown 2 and 4, will be transformed into a very nice park within the next 3 months. However, there are plans for an IMAX Theater to go into the northern parcel of land within the next 2-3 years. Additionally, Midblock will house a Sushi Samba and Segafredo’s relatively soon. I was pretty pessimistic about Midtown about six months ago but I think this is going to be the place to be for 20-somethings in about 3 years. It may very well become what it was promised to be: a city within a city.
• Someone recently left a comment saying that, after 3 appraisals, they were unable to have their condo at 1060 Brickell appraise for the amount on their purchase contract. Any other contract holders at 1060 Brickell having this problem?
• Asking prices of condos in the “mortgage fraud” buildings in Brickell have come down BIG since November 2007. The last time I did a Brickell Condo Index was November 2007. Last Tuesday, I pulled some new data. I haven’t had the time to reveal a full-blown monthly Brickell Condo Index, but I will reveal what the asking prices for the following buildings with prevalent mortgage fraud have fallen since November 2007:
  • The Club at Brickell Bay – The average asking price per square foot has fallen 22.86% since November 2007.
  • Vue at Brickell – Average asking price per square foot has fallen 19.60% since November 2007.
  • Jade at Brickell Bay – The average asking price per square foot has fallen 16.24% since November 2007.

Those are some large reductions in asking prices since November 2007. Only time will tell how much further the “fallen angels” will fall.