Imperial at Brickell Penthouse Reduced to $238 Per Square Foot
July 4, 2010 by Lucas Lechuga
Earlier this week, the 5,034 square foot 5 bedroom penthouse at Imperial at Brickell that we featured this past May was reduced from $1,490,000 to $1,199,999, or $238 per square foot. The unit has an amazing 4,000 square foot terrace with direct views of Biscayne Bay and Key Biscayne. Take a look at the video below for a tour of the Imperial at Brickell penthouse. Call us at 305-428-3860 or email us at info@miamicondoinvestments.com to schedule a showing.
Another bulk buyer getting set to make some $$$$$…
I have come to believe that Gixxer 1000 is just another real estate shill hack.
I’ve always thought Gixxer 1000 was a shill, but Peter Zalewski and the Condo Vultures are even worse. Those guys have turned into the biggest pump-and-dumpers in Miami r.e. They’re totally shameless.
It’s hilarious how, just 1-2 months ago, even the bulls on this site admitted that Miami’s r.e. market was one of the worst markets in the country, but now, even in the face of “cataclysmic” (in the words of one analyst) r.e. numbers in the rest of the U.S. after the expiration of the tax credit, people are pretending that Miami is Boomtown, U.S.A.
Gixxer, thank you so much for posting an advertisement instead of an actual news piece.
Guys get real!
Gixxer 1000 is NOT a real estate shill hack. No real estate shill hack would spend so much time and ENGERY doing research and then posting his comments on his blog.
He’s a young guy who is into this RE stuff, so give him a break.
One of my favorite TV shows…. “Real Estate Intervention”. Everyone in Florida…and even those who aren’t (ummm… Gixxer 1000) should watch it. It is hilarious.
owneratinfinity – Either a real estate shill hack or a guy in prison with Internet privileges (j/k). Seriously though, for someone who is most probably NOT moving to Florida (last I remember….but I stopped reading his posts months ago) why oh why try to convince people the real estate market here has bottomed and is poised for some sort of dramatic rebound.
We are in for prolonged real estate price stagnation in our area and the current economic malaise will continue as the Obama administration continues to create economic uncertainty while simultaneously chasing away private capital investment in our country and into the arms of China et al. Yeah, let’s raise the cost of employment, the cost of health care, the cost of taxes, the cost of entitlements and the cost of energy during a recession….just brilliant Barry, just brilliant.
I think the owner has a point. Most RE agents are dumb as a door knob. From his posts Gixxer looks like he can analyze data and statistics. He also knows geography. On both counts he is definitely not a RE agent. RE agent skills are limited to 2 things 1) How to open a lock box to get the key out (even that is hard for some! I am not kidding) 2) How to calculate 3% of a certain amount. They actually go to school to learn these rocket sciences! Gixxer is anything but that.
“Gixxer, thank you so much for posting an advertisement instead of an actual news piece.” – – Drew
I am almost embarrassed by the position you’ve put me in Drew, that being one of actually defending, while at the same time picking away at, Gixxer. Wow. This is a first.
Look, those of you who went weak at the knees over these bulk-sales transactions need to read that article – – albeit cheesy – – more closely. Once you do a little research, it makes sense.
The bulk buyer in question here is FFOC Investors LLC. A quick search on sunbiz.org reveals that this company was formed on May 12, 2010. It’s registered agent is listed at “CORPORATION SERVICE COMPANY”, based in Tallahassee, who, a bit more research – – a quick google.com search will do – – is one of the largest registered agent service companies in THE WORLD. Interesting is it not? (See: http://en.wikipedia.org/wiki/Corporation_Service_Company)
I note that the other bulk-buyer mentioned in the article, Fontainebleau Florida Tower 3 LLC, has a similar registered agent. These are not “real” LLC’s in terms of those that produce products and services. Rather they are holding companies – – investment devices.
But let’s look at this more closely. An LLC is not just a business entity. It is also a tried and true tool for asset protection. It is personal favorite of mine – – next to the revocable trust with a spend-thrift clause. Why? Because it is difficult, if not impossible, to get a judgment against an LLC compelling it to release assets it holds.
Granted it has been a while since I dealt with such matters, and laws in jurisdictions do vary, but, generally speaking. the only way to achieve economic recovery – to get at the any semblance of the assets held by an LLC – – is to go to court and obtain what is often called a “charging order.” The problem is that even then, the aggrieved party is only entitled to attach to the streams of income that flow out of the entity, not the assets held by the entity themselves. And if – – just if – – you are seeking recovery from an LLC for – – let’s say – – unpaid HOA fees and the LLC in question is just a holding company that pays no dividend or salary to its members, there is nothing to attach to and the aggrieved party(s) is/are out of luck.
But, more importantly, this shell game – – and let’s be clear her folks, that is all that has been going on for the past several years – – of transferring ownership from the developers or the mortgage lender/creditors to bulk buyers had to end eventually. Run numbers: can it be said that the gain can be justified by the capital expense?
Now the members of the LLC want to recoup on their investment by selling 18 of the 25 units they purchased – – probably in May of 2010. There is nothing wrong with this – – other than the tax-related issues. This is probably why the LLC mentioned in the article is trying to sell 18 of its units so quickly – – because if it takes a loss, the loss, though capital, will be short-term, rather than long-term, capital loss.
But don’t believe the hype here folks. It’s just a group of reasonable investors seeking a reasonable return on the investment they made. Nothing more.
These sales transactions are more akin to a hedge fund liquidating a position of stock than a reasonable purchaser for value seeking a condo. This is even more true of the next purchaser is another bulk buyer.
Thus the shell game.
scriv
Scriv, what was your post about? It’s like you’re providing an answer to a question that wasn’t asked.
Wow Scriv, I am actually impressed. I am starting to believe you may actually know a little something about real estate law as it pertains to asset protection.
Some of your earlier statements left me wondering.
anyway, you are right. It is very difficult to get to the assets of a multi-member LLc. The best that can be hoped for is a charging order against a member’s distribution share but even then the Members can decide to suspend distributions. If for some reason they are able to get to your assets liability is limited only to that LLc they can’t go after you personally.
That is why I’ve said Investment RE should be held in a LLC and not in one’s personal name.
JL:
Sorry about that.
I saw the “article” that Gixx posted a link to and got overly verbose about the LLC “shell game” going on in Miami real estate.
scriv
scriv-
I don’t know if you’re a conspiracy theorist or just love to load your writings with innuenedo, but, as JL, noted, I really don’t know what your trying to uncover or suggest, other than what should be obvious to anyone: that being the business model of bulk buying entities. Its really not a great revelation that “these LLC’s are not “real” LLC’s in terms of those that produce products and services” as you state.
Regarding the newly-organized single-purpose LLC, what do you expect? Would you be reassured if Lennar or Toll Brothers bought those units instead?
And how is a company’s choice of registered agent significant? Further, how is election of CSC as registered agent “interesting”??? CSC provides a variety of corporate services and retaining them to act as registered agent is completely immaterial.
As you quote the illustrious Chuck D and Flavor Flav with “don’t believe the hype,” I (and probably many others) don’t know what “hype” you’re referrng to.
Thanks.
I’m chose to study REAL ESTATE DEVELOPMENT at UM over other more prestigious programs. So I admit I’m a bit biased in the fact that I’m excited about the Miami real estate market or I wouldn’t have chosen to study here. But not any more biased than someone else who simply wants cheaper prices and hopes prices continue falling. Furthermore I would benefit from price going lower as that would only mean cheaper prices for me. Starting August 1st I’d gladly meet up with most people here who have at least half a brain and are actually interested in real estate.
My posting of the article was just to show that another bulk buyer is about to make a profit. Joe might not remember but we had a conversation last year when I clearly stated that people making these bulk purchases would come out ahead and they clearly have. He seemed to think the bulk buyers were crazy. These guys bought at $429 and asking prices are currently $691. Even if they reduce prices its pretty clear they going to come out ahead. Especially when another bulk deal was done just last year at $405 and they were able to sell units at $657.
Gixxer, welcome to Miami! Did not know you had made the decision. you fall into the trap of many of us here-let prices drop until we decide to buy! did you decide on an area yet? again, i recommend coral gables, but there is value in Brickell. i would hesitate to go any further north unless you dont mind traffic and the commute. good luck!
Gixxer 1000 said: “But not any more biased than someone else who simply wants cheaper prices and hopes prices continue falling.”
— For the 100th time, if you seriously think I post here in an effort to “talk down the market,” you’re out of your mind.
——
Gixxer 1000 said: “My posting of the article was just to show that another bulk buyer is about to make a profit. … These guys bought at $429 and asking prices are currently $691. …”
— For one thing, they’re ASKING prices, not sales prices. I’ll be a lot more impressed when they’ve sold the 18 units at said asking prices. For another, we still don’t even know if a lot of these bulk deals were arms-length deals. I bet half of them have been developers simply shuffling titles around in an effort to maintain market value on paper (and/or to represent the market as being stronger than it is).
gables,
Thanks, I’m really excited. While I’m no stranger to traffic here in DC, after listening to many folks, even some here, I have decided to stay in either Coral Gables or Downtown/Brickell. Since were not sure exactly where my fiance will be working yet were leaning towards a 2/2 in Downtown/Brickell being that its centrally located and should pretty much be OK if she has to work in Kendall or Aventura. We’re going to stay with friends for a couple of weeks while we look at places and decide.
gixxer, i would not recommend brickell key-friends just move out said it was too isolated. there are many other places in the area that present themselves in a more walkable manner. in coral gables, find a condo downtown by the miracle mile-very walkable all day and night-meaning very safe all the time with lots to do. you can ride the metro from downtown/brickell to UM, but it is not a very time efficient mode from what many people tell me-though not sure the drive is any better at rush hour.
why bother,
you said:
I think the owner has a point. Most RE agents are dumb as a door knob. From his posts Gixxer looks like he can analyze data and statistics. He also knows geography. On both counts he is definitely not a RE agent. RE agent skills are limited to 2 things 1) How to open a lock box to get the key out (even that is hard for some! I am not kidding) 2) How to calculate 3% of a certain amount. They actually go to school to learn these rocket sciences! Gixxer is anything but that.
—-> You are so 10000% correct about RE agents. Where I came from (south central USA) RE agents were A LOT smarter, better educated, much more honest, hard working and professional.
—->Here in Miami they are general major dumb asses, more then one of them could not even open the lock box.
—->This is why I never used a buyers agent when I buy and when I sell I only use a listing agent who is also a broker, so I can get my property on the MLS and on the various end user on-line RE web sites such as realtors.com.
—->So when I sell my homes I only give my listing/broker agent 1% commission and I only give the buyer’s BUYER agent 1% commission and 1% more if the buyer’s BUYERS agent brings me a offer for the full asking price.
—-> So the most I ever pay is 3% total to sell my homes, rather then the normal 6% commission
—–> You may think that its hard to find listing/broker agents and buyer’s BUYER agents that would accept these lower commissions but they always accept them because they see that I am selling a great product at a very reasonable price that will sell very quickly which they always does.
—->Just FYI, I sold my last home, which was a SFH to the first person who walked in the door the first day it was on the market for full asking price.
Gixxer 1000,
When you are in Miami, if you want email me at owneratinfinity@aol.com and I will show you guys around Miami. I REALLY know miami and miami beach well, I have ALOT of info on the buildings in Miami and Miami Beach.
Joe,
I think I understand that those were asking prices considering that’s what I wrote. And as I pointed out even if they sell at less than their asking price their still going to come out ahead. There is a lot of distance between $429 and $691. I think I also pointed out that the last bulk buyer bought units at $405 and sold them at $657, which would be SOLD not asking prices.
As far as you developer conspiracy the logic makes no sense. Why would a developer fake bulk deals at BELOW market value if the goal was to create the appearance of sales at market value??? Not to mention in many cases they clearly indicate the person or people behind the bulk deal.
You see sales you don’t like, they must be fake. You don’t like what I’m saying, I must be a Realtor in disguise. I seem to be noticing a patter here.
Of course people like Peter Zaleski change what they are saying. The market changes. If bulk buyers are out making 25% profits in a matter of months what do you want him to say. He also says things like this:
“If this momentum of increased inventory continues, it could raise concerns that a South Florida region that had been showing signs of stabilization could be facing a possible double dip. It is still too early to know for sure but it is definitely worth monitoring.”
If you read most of what the guy writes he’s not even that bullish on the market. But activity has definitely picked up and there are people out there making money in this market. Do you want him to ignore it.
“That is why I’ve said Investment RE should be held in a LLC and not in one’s personal name.” – – Makes Me Think
ABSOLUTELY!
“I don’t know if you’re a conspiracy theorist …” – – Drew
Oh come on Man! (smile)
This is not about “conspiracy.” It’s about the game!
The game is what I am interested in – – that being the transfer of assets among parties during a period of economic down-turn and recovery. I like to think of it like a hockey game: “period 1” consisted of developers and buyers scrambling for assets (mortgages, flips, etc); “period 2” consisted of developers and lenders scrambling for assets to stay alive; “period 3” – – I am not sure we are there yet. “Period 3” could be the transfer of assets among buyers – – be they individuals or investors. Eh, who knows. But it will be an interesting time.
“For one thing, they’re ASKING prices, not sales prices. I’ll be a lot more impressed when they’ve sold the 18 units at said asking prices. ” – – Joe
Me too. The mark-up was aggressive and I think, given market conditions as well as the fundamentals, excessive. But I wish them good luck. Then again, maybe they don’t need it – – losses are just as valuable as gains in the investment world.
“As far as [your] developer conspiracy the logic makes no sense. Why would a developer fake bulk deals at BELOW market value if the goal was to create the appearance of sales at market value??? ” – – Gixx
I have a theory on this one. OK … I have multiple theories, but it is early so I will simply post one of them.
It’s called “churning.” This is a term of art in securities law (See, Section 10 of the Securities Exchange Act of 1934 and SEC Rule 10b5). But I think it potentially applies to these real estate transactions as well.
Churning, generally speaking is: i) trading in the account that is excessive in light of the customer’s investment objectives; ii) explicit or de facto control over that trading by the salesperson; and iii) scienter on the part of the broker, which is established either by evidence of intent to defraud or by evidence of willful and reckless disregard of the customer’s interests. (In re Al Rizek, Securities Exchange Act Release No. 41725 (August 11, 1999).
Blah, blah, blah.
What I mean by this is that we have large blocks of units being sold en mass. Sales are sales, right? And every sale, be it individual or bulk, influences market behavior. Right?
With sales to individuals down – – what better way to portray the Miami – – or any market for that matter – – as “hot” than by generating a large number of sales through bulk buyers. Thus, regardless of intent or scienter, all these bulk sales could be viewed as purely synthetic: an attempt to influence market behavior rather than as evidence of genuine market recovery.
scriv
The concept of “pump and dump” is equally and arguably applicable here — maybe more so than “churning.” Again, these are just theories. Nothing more.
But, that’s a theory for another time.
scriv
Drew:
It’s “the game” that interests me my friend: the free flow of assets between parties during this economic period. The transactions; their timing; their structure. “The s**t’s chess, it ain’t checkers.” That’s what I find so enjoyable about this stuff.
And that is what I was writing about. Nothing more.
No innuendo. No “conspirac[ies].” Just raw facts and analysis.
Who are the players? How are the deals being done? What are the possible/probable effects on market fundamentals and behavior? What is the economic substance of the transaction?
Folks, we are experiencing an interesting moment in time here. Make the most of it!
scriv
PS: Gixx: thanks again for your prior posting – – the one containing the link containing April and May sales data. Very, very interesting stuff!
Drew:
[Sorry for the flurry of posts folks – – it’s Drew’s fault (smile)]
“And how is a company’s choice of registered agent significant?”
It is “significant” as it is relevant and pertinent to the possible economic substance of the transaction. Let’s compare and contrast two different recent transactions.
This bulk sale involved an LLC who chose CSC, who is based in Tallahassee, as its registered agent. CSC is in the business of serving as a registered agent – – among other services. Thus, as choices go, CSC is a rather “generic” or “vanilla” choice as it has no potential/probable substantive pecuniary interest in the substance of the transaction.
Contrast that with the recent bulk sale in – – was it the MET? – – where 20% or so of the units were purchased by three LLC’s that are controlled by three guys with the same last name. Their registered agent was – – if I recall correctly – – a corporate maintenance service provider whose office is in downtown Miami and is owned by these same three guys. Here, one could argue that the choice of registered agent colors the economic substance of the transaction because the MET development has corporate offices which will need maintaining.
See the “significance?” You potentially have two different types of bulk buyers: investors and, for lack of a better description, investors seeking “fringe benefits.”
scriv
Post #19 sounds sexually suggestive.
Beware of Internet predators.
Whoops.
Correction: CSC is not “based” in Tallahassee. Rather it has an office there. It’s US headquarters are in Wilmington, Delaware.
scriv
scriv
While your argument is creative, I find it somewhat absurd. Even if you have “two different types of bulk buyers”, one’s decision to use CSC vs. another’s to be their own registered agent is irrelevant.
In fact I’d argue that the guys who choose CSC displayed more diligence than the guy who chooses to be his own registered agent. Do you know how many business owners decide to be their own registered agent and then encounter service of process or other gov’t/administrative problems because they moved or shut down operations and now process or notices can’t be served upon them? By using CSC, the business owner hires someone else to receive all official notices relevant to the company and then forward it on to the owner in a proper and timely manner.
I would think you know what a registered agent’s role is, but based on your post, I am not too sure…. Most all registered agents have no “potential/probable substantive pecuniary interest in the substance of the transaction.” In fact, its probably better that they do not. Besides companies like CSC, for instance, most corps (even legitimate ones with real business operations!) use law firms to act as registered agents.
“In fact I’d argue that the guys who choose CSC displayed more diligence than the guy who chooses to be his own registered agent.” – – Drew
Maybe yes. Maybe no. Depends on the facts and circumstances.
“Most all registered agents have no ‘potential/probable substantive pecuniary interest in the substance of the transaction.'” – – Drew
Maybe yes. Maybe no. Depends on the facts and circumstances. The involvement of related parties typically tends to cast doubt your assumption. Time will tell.
“I would think you know what a registered agent’s role is, but based on your post, I am not too sure.” – – Drew
Rest assured. I know.
Best regards.
scriv
Scriv, i have to agree with drew, you are reading way too much into the registered agent stuff. A registered agent charges $100/ year to forward mail that likely will never come. If you want to save yourself a few dollars just have the mail sent directly to your office as long as someone is there to sign for it. They could have easily used a trusted friend as the Registered Rep. It’s no big deal who receives it. I use my lawyer and a friend because I don’t want my name to show up on any public records. lawyer charges $100/LLc friend charges $0
Lucas,
I see that you didn’t post my comment replying back to Drew’s insulting comment to me.
It’s very interesting that you would post his insult to me, but you would not post my insult back to him.
As you know I have never used bad words ever on this blog. However in this case, the words I used in my reply back to Drew were the right ones. People like that need to be put in their place.
I would suggest that in the future you should not post any comments that would be considered insults to other folks on this blog.
Of course, if you did that, there would be a lot less posts on this blog since many of these posts are insulting others on this blog.
Thank You and Enjoy your day.
Drew, Makes Me Think, et al:
With all due deference, I think you missed my point. The issue I am focusing on is not that there is a registered agent, the role of the agent, or the defraying the costs – – but, honestly, I did appreciate your input and thoughts. Whether the agent is CSC, FBI, NSA, FUBAR – – who cares? What interests me here is the involvement of what appears to be a “related party.”
Maybe I am reading the tea leaves too closely. Maybe I am talking about something that no one here understands – – no offense intended, I assure you my friends….my mind is a dangerous place. And maybe, just MAYBE, I am seeing something that does not really exist – – or, in the alternative, exists only as an unrealized possibility. If any, all or just parts of some of the aforementioned are true, then, so be it: it is what it is.
But there has to be a reason why these groups are buying these units in bulk. Cost aside, the ordinary casual buyer – – Jane Doe and/or Joe Six-pack – – does not buy in bulk because it does not make sense, if only because a human being can only use and enjoy one unit at at time.
So what is the game being played here? The reason I ask is that, it seems to me, that such investments, in the absence of another motive, are not prudent? (word?)
Why? Because their lack of diversification means that, unless he/she is able to dispose of his/her holdings in bulk, the owner of, say, 30% of the units in the MET, will likely incur a loss on the subsequent sale of his/her holdings as he/she stands in the similar position as the original developer; that being having to dispose of a large number of units in a market where he/she cannot control the selling price.
Check that: Arguably, such a seller is in an even worse position because the development itself is not new. Rather it has a “few years on it” and has been subject to the wear and tear of prior tenants and owners (not to mention being used as a set for Burn Notice and/or CSI – – smile), making disposition of the bulk buyers’ position at a profit even more difficult. Moreover, market fundamentals are such that such a seller will be hard-pressed to generate a profit on all of their holdings because buyers are free to choose among an increasing number of alternatives, requiring the bulk buyer more aggressively price and market his/her units. Right? (Note: yes, this is what the bulk buyer “signed on for” – – I get it.)
Thus, when I saw that the bulk-sale – – I think it was the in the MET – – went to LLC’s owned by three guys with the same last name and LLC’s that shared an address with a corporate service provider…I began looking for the existence of some business relationship that would justify such an investment. And the existence of what arguably looks like an affiliated group – – where one branch of a corporate group could convey benefits on another – – seemed a logical explanation.
There is nothing wrong with such relationships or transactions. I am simply trying to cut through the fog, smoke and mirrors – – to get to the substance underlying the transaction.
So, what’s the game?
scriv