Brickell & Brickell Key Closed Condo Sales – November 2009
December 5, 2009 by Lucas Lechuga
Brickell Closed Condo Sales - November 2009 - There were 30 closed condo sales in Brickell last month. The average sales price of these condos was $243 per square foot. I was surprised to see that a one bedroom condo at Skyline on Brickell sold for $334 per square foot.
Brickell Key Closed Condo Sales - November 2009 - 10 condos in Brickell Key closed last month. These sold at an average sales price per square foot of $258. Here I was shocked to see that someone would be willing to pay $294 per square foot for a unit at Isola, especially one with carpeting.
Something different was in the air from the moment Art Basel kicked off with a party on the whimsical deck of the Mondrian Hotel, the sun setting in shades of red over a sparkling Miami skyline that boasts more slick (if empty) towers than ever.
“Miami is so incredibly beautiful this year. You should be here to see this,” a German collector in a de rigueur skinny gray suit and chunky black glasses gushed to his wife over his cellphone.
The overseas Art Basel crowd used to spit out terms like “superficial” and “immature” when they landed in Miami. But much has changed since the contemporary art fair, the largest and most prestigious in the world, put down stakes here in 2002.
Certainly Miami has. The recession may have spared very few corners of South Florida, but everywhere crowds gathered this past past week, from South Beach to downtown Miami to Midtown, the city shimmered with fresh architecture, new galleries and eateries and high-end stores like the just-opened Christian Louboutin boutique in the Design District.
But no structure was more of a revelation than the de la Cruz Collection Contemporary Art Space, a sophisticated three-story museum for Carlos and Rosa de la Cruz’s world-class art, which opened in the Design District this week.
“[Developer] Tony Goldman says that you have to complete a smile in a city,” said Miami architect Chad Oppenheim, who opened his Sunset Island home midweek to host an Art Asia VIP party. “Miami has just completed a bunch of projects. We’re filling in the gaps.”
Guys,
Miami looks great. As a visitor for a few months a year to enjoy the nightlife and beach, where is good to live. South Beach, Brickell, aventura fort laurderdale, the keys….
I see you can have a huge house in fort laurdale or the keys for the price of a 3 bed condo in brickell and they says its 20 minutes to south beach and safer.
be interested to hear your thoughts.
AJ, thank you for your post. It was very interesting for me to read. Can’t wait to visit Miami again. Most probably in February since I am busy in NY and then going to Belgium.
Also wanted to ask your opinion about Wind by Neo on Miami River. There is developer’s sale going on. Prices are decent. Please let me know.
Latest news about the battle for the royal palms
BY DIANA MOSKOVITZ
[email protected]
The battle for the royal palms of Biscayne Boulevard has returned.
Concerned that a state transportation project would wipe out almost 100 of the palms, a group was on the boulevard Saturday holding signs and handing out fliers — recycled, of course.
“Miami is so young. We have so little history,” said protester Sean-Paul Melito. “We need to preserve what we have.”
Melito came across a 1926 article in which the city of Miami dedicated the boulevard as a memorial to all U.S. war veterans. That, he said, includes the 324 royal palms that lined it.
“The state has a memorial,” protester Elvis Cruz said, “and forgot about it.”
During one stretch of the boulevard project a few years back, dozens of royal palms were lost. They were replaced with oaks, which provide more shade and don’t pose the threat of giant palm fronds falling.
In the coming months, the Florida Department of Transportation will work on a section of the boulevard between Northeast 15th Street to about Northeast 35th Terrace. According to a city of Miami report, about 230 royal palms would remain.
A transportation department spokesperson with knowledge of the project could not be reached Saturday.
Miami City Commissioner Marc Sarnoff’s district includes the affected area.
Sarnoff said he supports saving every royal palm possible. But he also worries that making changes now to the project, after it has been set in motion, could cost the city money.
Miami can’t afford to do that, he said.
“I support the royal palms,” Sarnoff said, also noting, “We just don’t have the money to change course.”
The royal palm supporters are going before the City Commission Thursday to voice their support for a proposal to declare the boulevard a scenic transportation corridor.
That title, they hope, will save their beloved trees, which they say contribute to making the boulevard special.
“The very thing that makes it important is those palms,” Cruz said. “If it becomes a hodgepodge planting of palms mixed with oak, it loses its identity.”
Lara, Have fun in Antwerpen.
Re: Wind, Personally I wouldn’t go anywhere near the Miami River buildings of wind, mynt and ivy. I do not like the nabe bordered by a cacophonic I95, Metro Rail Thunder, an electric substation and the river traffic. The area is also not top shelf or even mid shelf, just a bottom rack stuff. No matter what the asking price is, I would not be interested. But if you are buying a flat for sub 100K to rent it out, maybe it’s a different matter. But the question is – do you really want to be a slum lord?
What happened with the Infinity deal you were talking about? I like that building though.
Visionary, Thanks for the article.
From the looks of it, one by one, all the buildings are getting lapped up quietly. In fact no one seems to be advertising these deals and still they are being gobbled up by the public in a very nonchalant fashion just with a word of mouth info.
At this rate, all mid/low tier buildings will be sold out soon for $200 or sub $200/sf, leaving just Epic, Icon, Marquis and the Paramount. I expect them to sell to the slightly well off crowd for $350+/sf range.
I don’t know where to place Everglades in this equation. $200 is low for that building and $350+ may be too high.
I am more and more convinced that all developer units will get sold out even sooner than 2012 (further revised from 2013) as I previously said. By winter 2011 or even earlier there will be no developer units left, only the so called shadow inventory which by the way is over hyped by some and in any case, when it does hit the market, it wont be cheap. The reason why it is shadow in the first place is because the individual investor has the holding capacity and is waiting to get his price while either renting out or using the flat for self in the interim.
And the $200/sf mid/low end buildings and the $350-$400 for the ultra luxury water front buildings that the developers may now be offering will be a distant foggy dream by the winter of 2011.
Someone (Lucas?) said Paramount will start closings in December. Any more info on that?
Lucas also mentioned that the developer is pricing the units aggressively but did not elaborate further. I am very interested to know how aggressive is the pricing for Paramount is going to be. $350/sf for that building is seriously aggressive IMO. Need some confirmation from any Realtor who has some inside info.
Lucas thanks for updating the CONDO DEALS page. Wow – Fisher Island for $350. per sq foot. Sounds like a deal for Joe.
Kramer, looks like you want to banish Joe to that recluse Island prison!
AJ — Come on, “lapped up quietly”?
There are EIGHT THOUSAND units available in Miami right now. EIGHT THOUSAND.
That’s roughly the equivalent of 30 buildings with 300 empty/unsold units per building.
Please, please, please stop these nonsensical predictions of price appreciation in Miami by 2011. It’s inane and borderline dishonest. (I say “borderline” dishonest because it seems like you actually believe these statements.)
AJ,
Thank you for your answers to my post. In Belgium I am planing to be not only to Anwerpen but also in Brussels, Burge and probably Ghent. In re to Infinity one unit that I first targeted was not a real unit for sale. the other one I am still thinking about. You see it is hard for me to decide because I do not have a chance to fly to Miami right now. I rely on your opinion but it is still difficult for me to buy this unit blindly. I have to see it and get a feeling of the area and the building itself.
AJ
I mean cmon $350. on Fisher Island? weren’t they going for over $1000 on average?
Kramer — I might be wrong, but I believe Fisher Island was over $1,500 at one point.
Please, please, please stop these nonsensical predictions of price appreciation in Miami by 2011. It’s inane and borderline dishonest. (I say “borderline” dishonest because it seems like you actually believe these statements.) – Joe
This is the same Joe who a few months ago posed a question which cannot even be properly categorized under the most delusional statement ever. In response to some of the basement boys clamoring about the $125/sf, Joe asked when is the Continuum going to be available for $175/sf (gasp!). And no, he was not kidding. He was dead serious. The building that sits on the most exalted piece of land in all of Florida if not America and selling for between $1200 to $1700/sf, Joe wants to buy for $175/sf!! Need I say more?
Lara, Have fun in Belgique!
In Brickell, I only like a couple of buildings. Plaza and Infinity. Plaza is sold out. Infinity has some deals. The building is nice with a roof top pool deck ( sadly a rarity in Miami). It is located right next to the free metro mover and the Metro rail stations (by 2012 you can take a train from Infinity Metrorail station to the Miami International Airport in one leg). It is also a block and a half from Mary Brickell Village. Even though it is an inland building, if you are on a higher floor, you can have some water views too. I will give a thumbs up to Infinity. When you get a chance to go to Miami, take a trip to check out that building.
AJ — Please post a link to where I stated “seriously” that Continuum would be available for $175 per sq. foot. I can recall debating the price floor for SoFi, but I can’t recall saying anything about Continuum being headed to a $175/sq. foot price bottom.
Furthermore, your statement that Continuum is “selling for between $1,200 and $1,700/sf” is pure nonsense. Units might be listed for those prices, but they’re not SELLING for those prices. In 2009, exactly 22 units have sold in that building, with only 9 of those sales coming in the last six (6) months. Only three of the sales were for more than $1,000/sf, with the other 19 sales in the $550/sf to $900/sf range.
Currently, between units for sale, units for rent, and shadow inventory, something like 80 Continuum North condos are available. If that’s your idea of a booming market, you’re delusional.
AJ — I just did a quick search with Google and I couldn’t find any comment of mine that remotely claimed what you said above. This was my comment on May 21, 2009, at 9:58 p.m.:
“joebob — You’re projecting around a $300/s.f. bottom for Continuum North? There haven’t been many sales in that building this year, but the ones that have closed have averaged around $1,100/s.f. based on the data I’ve seen. As over-saturated as the Miami condo market is, a further 75% decline in SoBe prices seems extremely pessimistic. (I am, however, curious what others here say about it.)”
——
So right there, I was refuting a $300/sf bottom. What say you, AJ? Were you mistaken above, or just flat-out lying?
To read for all SB lovers !
http://travel.nytimes.com/2009/12/06/travel/06hours.html?hpw
Lara
You mentioned going to Burge. Do You mean Brugge ?
Lara,
When You are in Belgium, You have to try the chocolate !
It is, besides the Swiss one, the best chocolate of the world.
Visionary, you are absolutly right I meant Brugge. And Yes, I’ll try chocolate and beer and I am planning to see paintings of Bragel and Boskh and the house where Rubens was born. I am also planning to do some skating if canals are going to be frozen. It is a crazy dream of mine.
Lucas,
What’s going on with the sales statistics for individual buildings?
I just checked the county records for my building, the Lexi, and see there have been 5 new deeds recorded in the last few months, which don’t show up on your site. I found these by searching under “Lexi Dev Co” as the party name, so I’m sure if there have been any resales in addition to those I mentioned. Thanks.
Foreclosures still up, no end in sight
http://www.businessinsider.com/south-florida-foreclosures-up-15-in-november-2009-12
Lucas, those pdf files don’t show on my safari browser (?)
Guys,
I’m a potential buyer and I can’t find a website that automatically gives me the yield on a condo purchased for subsequent rental. Don’t get lost in the details. Initially, it should assume the going 30 yr rate and 20% down. It should have a ranking of the best opportunities similar to the “Condo Deals” we all check out. Subsequently, it should allow us to play w/t variables (down pmt, p& i, taxes, condo fees).
Not rocket science. Is there a website out there w/this basic level of functionality??
Lucas…any upgrades to your website under consideration???
AJGS — I’m not even aware of a site that has accurate HOA fee info. for Miami condos, let alone all of the functionality you described/requested.
Joe is 100% correct. I thought of creating something like that AJGS but there’s too much inaccurate information out there. Realtors will oftentimes enter $0 for the HOA fees or something that’s incorrect because they’re too lazy to call the association. There’s also no way of calculating an exact figure for taxes.
Joe/Lucas,
Follow up question. I just refuse to believe that waiting for an opportunity to be listed on the MLS is the best buying stategy. Thus, what is your advice on the best way to buy a condo from a distressed seller prior to it getting listed on the MLS. Lucas, do you provide this service??
AJGS — Why are you assuming that a distressed sale is a good opportunity from an investment/rental standpoint? Do you have any idea how many condos are still available in Miami? (Answer: Something like 8,000 to 10,000 units.) Do you have any idea how many rental units are upside down from a revenue standpoint? (Answer: A lot.)
I’m not trying to give you a hard time, or to cost Lucas any sales, but I’m not aware of a whole lot of people who consider Miami a strong environment for r.e. investment right now. (And assuming there *are* some deals out there, I have no idea why anyone would want to broadcast such info. for free on a website.)
Joe, What do you think is an appropriate rental yield given property risk in Miami??
AJGS — I have no idea. The thought of being a Miami condo landlord hasn’t even crossed my mind. Miami’s rental market is beyond saturated, and no one is projecting appreciation of Miami r.e. over the next few years. To me, that adds up to a big “why bother?”
It’s one thing to break even on rent while the underlying property is appreciating, but with price stagnation projected for the next 5 years or more, unless you can buy a condo for LESS than you can rent it out — and that seems highly unlikely — it just seems like a bad idea from the get-go.
Joe, I understand your distaste for the “buy & rent” strategy but I have a follow on question for you. If you’re forced to implement a “buy & rent” strategy, which are the two best buildings in which to implement and which are the two worst. Please limit yourself to South Beach bldgs. Again, your top 2 and bottom 2 buildings for a “buy & rent” strategy.
AJGS — I have no idea what “forced to implement a ‘buy & rent’ strategy” means. How or why would anyone ever be “forced” to buy a unit and then rent it out (unless it was to launder money or something)?
The only way for me to answer your question would be to run a huge amount of data as you requested above, and I simply don’t have the time or interest. As I’ve mentioned above, a lot of newer condos remain 50% or more investor-owned, and it’s routine for 25% to 50% of a building’s condos to be listed on MLS for sale and/or rent. (Note that this problem is even worse in the better SoBe buildings, where prices haven’t dropped as much as they have downtown.)
If I won a condo in a card game or something, I might be inclined to rent it out, but I just can’t see why anyone would feel compelled to buy & rent a Miami condo right now. I can understand “buy & live,” but not buy & rent. The market is over-saturated with rentals as it is.
What does anyone think about the Vue?