Unit 1508 at Brickell on the River North Revisited
April 25, 2009 by Lucas Lechuga
Towards the end of February, I wrote about a 2 bedroom/2 bath condo foreclosure at Brickell on the River North that had recently been listed at the time. The condo was listed for $159,000, or $151 per square foot. The 2 bedroom was priced below recently closed 1 bedroom condos at Brickell on the River North and, as a result, attracted the interest of many buyers. From speaking with the listing agent in February, I learned that he had received over 30 offers for the condo. The unit closed on April 3, 2009 for $236,000, well above asking price.
Banks are purposely setting prices below current market value in order to spur bidding wars among buyers that eventually drive the final sales price higher than the actual current market value.
I would argue that some of these foreclosure bidding wars are more a function of “irrational exuberance” rather than a barometer of current values.
Realtors can create the excitement and potential buyers fight over the “unbelieveable deal”…but in the end, after all the b.s. back-and-forth offers from multiple buyers, its not really a good deal at all.
Its like the old saying, is the highest bidder the winner b/c he got the property or is he the loser b/c he paid a price no one else was willing to pay?
Will an avg Brickell on River 2-br ever be $159k? Probably not…but I bet $239k is still too high.
Interesting article on the “super rich” in Britain…
http://news.bbc.co.uk/2/hi/business/8018693.stm
“Over the past 12 months the number of billionaires has fallen from 75 to 43.”
I agree with Drew, but it would be interesting to know the unit number and surface area.
It’s a nice building and some lines are really nice.
I still stand behind a $200k price target for new 2B units. prices below represent a bargain, prices above not a bargain. $200k is just about affordable for a household income of $75k a year. the bidding game is in play, and will be as long as the banks are able to keep inventory in the shadows. but as soon as the inventory begins to flow, by say forcing the banks to stay up to date on hoa and taxes, the leverage will be lost. you can play this game with 5 REO in a building, you cannot play the multiple bid game with 50 REO. similar effect will occur when banks begin to push through short sales instead of stalling.
people think the economy may be bottoming, and I really hope so, but if not, look out for a very viscous downturn again by this summer. the talk is optimistic, but there are some very serious storm clouds gathering again. if the storm hits us, even the $159k price tag will no longer seem like a bargain. there is a reason Treasury has stress tested our banks on a very worse case scenario, even if they dont want to admit it.
i think this building will be one of the stars in brickell over time. fantastic central location, with water views of the river and partial bay. very unique location will be to its benefit. talking water view units only, however. the south facing units should not command a premium whatsoever.
Gables, I agree, vey nice builduig, but I checked it out, it’s a very small 2 BR unit 1052 sq/f at 225 $/sqf for a city view…I’m not sure this guy had the best deal. Just wait a couple weeks and you will see forclosures even stronger. I have the feeling that it will be the last round.
I checked it out, it’s a very small 2 BR unit 1052 sq/f at 225 $/sqf for a city view…I’m not sure this guy had the best deal. Just wait a couple weeks and you will see forclosures even stronger. I have the feeling that it will be the last round. But still a nice building… with bay and river views
Sorry first time on this blog, I repeated twice the same message
lapt, you noticed one of my primary gripes with the new buildings. most of the 2B units are too small, between 1000 and 1200 sq ft. this is really too small for the long term. 1400 sq ft would be ideal. since many units are close to 1000 sq ft, a $200k price tag puts you around $200 sq ft-my target point. good deals will be had down to $150, and premium units may demand $250. but average prices will not exceed $200 sq ft by very much, if at all. buying additional storage space may help, but i am not aware of its availability and cost in most buildings. anybody have some insight in a particular building? aj has commented about availability in 1800, but have now knowledge of others.
DREW // GOOD ORIGINAL “NAME” CHOICE………YOU THINK OUT OF THE BOX
I WILL CHANGE MY NAME TO AJ 305
GABLES, THE ECON MAY BE BOTTOMING, BUT MIAMI VEGAS AND LEE COUNTY AND A FEW OTHER AREAS ARE NOT EVEN CLOSE TO BOTTOMING,
DONT BUY THE HYPE ABOUT MIAMI ON SALE ITS A SUCKERS GAME, UNLESS YOU WANT THE CREAM OF THE CROP, AND ARE WILLING TO PAY 4 IT…………WAIT IT OUT,
$256k for a 1,000 sq. foot condo that doesn’t even have a water view (sorry but the Brickell river is not a water view IMO). Are people out of their minds?!?
I checked out this unit last month, and was willing to pay about $175k for it. Anything above that, and someone overpaid. I recently tried to purchase a 3bd from the developer but couldn’t get financing. Once any bank receives the “condo questionaire”…the deal is dead. ONLY CASH DEALS for this building. Like nearly all other buildings in Brickell…prices will continue to fall until banks start lending. There aren’t enough cash buyers to support the amount of supply. There are plenty of people waiting on the sidelines…with 25% down…and are frustrated b/c they can’t buy!!!
Totally agree with DJ on #12. Guys don’t fall for these bidding wars.
Having said that, I have a few interesting observations.
Today I crashed a wedding in the Pace Park (Just kidding, I was watching from the side lines). It was a very beautiful wedding and everyone in a million dollar suit and dress. A perfect day for a wedding and also a perfect location for a photo shoot afterwards. I will get married in pace Park when the time comes.
I walked from 15th street(OMNI) to the 25th street (Latin Cafe 2000) on Biscayne and realized it is one of the most beautiful streches of the boulebard and very soon it will extend all the way to 36th street midtown. Very beautiful buildings, stores and restaurants lining up this section of the boulevard.
Last night I walked from Pace Park to Space at 11 pm and walked back to Pace Park at 2:30 am and did not encounter a single shady character. It took me an easy 15 mts walk.
I have become a downtown convert. When I move to Miami in a year, I was planning to stay in my SOBE condo and rent my Downtown Condo. But boy, how times have changed. I will be doing the exact opposite. I really like living in downtown and I am not the only one. Actually 3 of my friends scooted from SOBE recently after their lease expired. One moved to 50 Biscayne, One to Opera, one to Quantum and another is planning to move to the Everglades. The beach is bleeding the renters profusely. And the funny thing is once they taste blood (downtown living), they never want to go back to living on the beach again. And their friends are following suite.
I see that 4 or 5 restaurants shuttered in the Starbucks building in front of the Mirador on the West Avenue. And they are furiously opening all kinds of stores in the biscayne boulevard in the stretch that I was talking. All are doing extremely well. Just the other day, I went to the Salad creations during lunch hour and the line was out of the door even with 4 people behind the counter working furiously.
I can see Miami downtown from Epic to Midtown becoming one of the most happening places on the planet. Unfortunately at the expense of the beach and outer suburbs until more people move to Miami to fill in those who left for Downtown.
downtown and northern brickell will both do well over the long run, as long as restaurants, shops, cafes, etc open their doors to provide a standard of living. if nothing but$70 meal restaurants are open, that will not help the day to day living. you need some cheaper alternatives or the area will not thrive as a full time living zone. right now miami beach offers more hassles than benefits, one of the reasons for a possible outflow. at least with downtown area, its a given you will live in new construction. one miami is the premium location in my opinion for the downtown area (not building just location). it will be centrally located once downtown revitalizes, and is surrounded by picturesque water views. if only jorge had built plaza there…
hahaha! People still overpaying = bottom is still not in
Drew299, I was posting on this blog before you. Also, lose the caps. You remind me of a middle-schooler posting on myspace.
For the record, post #14 may be the most melodramatic, manipulative and overall ridiculous description of downtown Miami condo life I have ever read. Gimme a break.
I LIKE THE CAPS, I STARTED GOING WITH THE CAPS A MONTH AGO,
IT IS MIAMI AND THERE ARE MANY OLDER FANS OF THIS SITE, WHY SHOULD THEY HAVE TO SUFFER,(YOU ARE CRUEL)
I HAVE NEVER SEEN A POST FROM A DREW, CAN YOU TELL ME THE LAST TIME YOU POSTED…. WHERES POST # 14
DJ AND AJ ARE CORRECT, ALTHOUGH THE HERD OF SUCKERS COMES IN AND EATS UP INVENTORY, THAT MAY EFFECT THE MARKET
THEY ARE GOING TO SELL THIS RECOVERY TO US…………LOOK FOR ANOTHER 30=50 % DOWN IF YOU ARE A SMART BUYER
CAPS YES CAPS NO PLEAS VOTE
OH AND LATIN CAFE RULES
Drew,
Aj’s posts are just full of bs. He does not even live in Miami. Please AJ tell us about pace park after you are a resident there. Any update on the murder in the pace park? I am sure residents are concerned.
Don’t you all know how beautiful Miami is? Forbes just did a story calling Miami the 3rd most beautiful city in America, oops, I mean 3rd most dangerous for violent crime! Just saw an episode of the First 48 where they guy was shot 7 times on NW 20th street, which is just steps away from 1800 club lol!!! There are plenty of crack houses over there. On second thought, maybe Miami is beautiful to a crackhead thanks to the easy availability of crack cocaine.
The city really needs to move quicker on getting Camillus house out of downtown. I was in the area today and was bum-rushed (pun intended) by 4 (i kid you not) homeless guys asking for change while I was waiting at the light with the top down. That block where Camillus house is on (2 blocks behind the fantastic four buildings) and two blocks behind Space is very sketchy. My girlfriend and I counted 38 homesless persons on that one block alone. Does anyone know when the Camillus house move is supposed to happen?
Looks like the homeless will be around a bit longer.
Current Camillus House shelter hits market, garners interest
By Scott E. Pacheco
Now that Camillus House has wrapped up a deal to move its main homeless shelter operations, the focus has turned to what becomes of the organization’s current digs on Northeast First Avenue.
One thing is certain: developers are interested.
“I’ve talked to several people this week alone,” said commercial real estate professional Ronald Kohn, who’s in charge of finding a new owner for the building.
“I don’t have a price on the land,” said Mr. Kohn, a former member of Camillus’s board of directors and owner of Kohn Commercial Real Estate.
“We’re asking for interested parties to put in bids. It’s confidential at this point, and we’re just exploring what we can do with our partners.”
According to an online data base on the City of Miami’s Web site, the 13,000-square-foot building is worth $416,905.
Camillus has claim to two buildings on Northeast First Avenue. It owns the 13,000-square-foot building on the northeast corner and leases the 12,484-square-foot building on the southeast corner for a $5,000-per-year flat rate.
The owned building is on a lot of 19,600 square feet and the leased building a lot of 13,500.
Both Mr. Kohn and Camillus President Paul R. Ahr said they most likely won’t sublease the smaller building and that the lease will be transferred when Camillus moves.
“Our plan is to vacate the site,” Mr. Ahr said.
The owners of the larger parcel, the Little Brothers of the Good Shepherd, have pledged the proceeds of the sale of the existing shelter to the capital campaign for the new facility.
Mr. Kohn said a major “sticking point” in selling that land will be finding a buyer who may be entering into a contract in 2008 but won’t be able to close on the property until 2010.
“We need partners who are going to be able to work with us, we need assurances,” he said, adding that he doesn’t want to get in a situation where “Camillus would be homeless.”
The area near the shelter by the Miami Arena could see retail development, but condominiums and other housing might be a losing proposition, Mr. Kohn said. He said with all the residential units, current and future residents will continue to need places to shop and eat.
The property is zoned commercial-residential, according to city records.
And Camillus’s departure bodes well for the economic vitality of that area, said Tony Cho, president/broker with Metro 1 Properties, a Miami-based boutique commercial brokerage and investment firm focused around sustainable urban development.
Mr. Cho, who has a client that owns property in that neighborhood, said the presence of Camillus House and panhandling in that area scare off potential investors. He acknowledged that homelessness is a “very serious issue,” but said strictly from the standpoint of attracting investors, the move of Camillus House will lead to economic gain.
“Having Camillus house in that neighborhood precludes a lot of restaurants and retailers,” he said. “I see that as the more alternative retail and restaurants that would be linked to entertainment nearby.”
Camillus House officials plan to move into their new $60 million facilities on Northwest Seventh Street between 15th and 17th streets in 2010.
As part of the land swap agreement, the University of Miami will take control of the land on Northwest Seventh Street between 17th and 20th streets and plans to build a biosciences center on it.
Camillus House’s move has been a long time coming.
In August 2006, the Miami City Commission approved the new facility amid some protests by residents in the area. The Florida Cabinet in September 2006 approved the land swap deal, which included a 60-year lease for Camillus on its new land.
But the deal took longer to consummate as the university did due-diligence on the land, which included taking care of “80 matters” on its new property, Mr. Ahr said, adding that Camillus took that time to raise money and make preparations for the project.
The new facility is to include a kennel for homeless clients to keep their pets while they are in the program. It also will include a 10,000- to 12,000-square-foot courtyard for homeless who don’t want to sleep indoors.
Camillus House began in 1960 as a small soup kitchen to benefit newly arrived Cuban-Americans. It operates 16 facilities in the county, including emergency shelters, transitional housing and job training centers.
Camillus House officials have been trying since 1984 to move into a bigger facility than its shelters near Miami Arena and in Allapattah that also serves as a job training facility.
AJ
keep that late night walking up and you’ll be buried in pace park. as for the millior dollar suits…no way. you’ll see some tacky ass zegna or armani suit before you see the cultured taste of made to measure brioni, oxxford or kiton.
back to condos – was in il villagio today. what an amazing building. puts many of the new so-called luxury buildings to shame.
Angel- that’s just another example of the dichotomy and inequality of Miami that you will not find in any other US city. You’ve got Camillus House with the bums fresh off the Greyhound, the slums along N Miami Ave, and the Miami-Dade registered sex offenders who have been relegated by local gov’t to live in a “tent city” under the McArthur Causeway. And in the middle of it all, there’s the million $ condos of 900 Biscayne, Marina Blue, etc.
Drew
no way. try new orleans.
Drew & JCrimes,
Correct on both accounts.
Man went to Casino in LV with $100.
He was ahead by over $10,000, when his girlfriend went shopping. Loss of ladyluck caused him to lose all the money he had won earlier.
So he pulls out his credit cards to recoup his $10K loss!!!!!!!!!!!!!!!!!!!!!!!!!!!
dichotomy ??? yeah,but but no one is hold a gun to your head to move there ??? only after u move in……….
you have your choice of so many areas, why move to anrea surrounded by bums ??
or crime or trafficor whatever ??? cant figure u guys out……
Top 5 Most Dangerous Cities:
No. 1 Detroit, Mich.
(Detroit-Livonia-Dearborn, Mich., metropolitan statistical area)
Population: 1,951,186
Violent Crimes per 100,000: 1,220
No. 2 Memphis, Tenn.
(Memphis, Tenn.-Miss.-Ark. metropolitan statistical area)
Population: 1,295,670
Violent Crimes per 100,000: 1,218
No. 3. Miami, Fla.
(Miami-Miami Beach-Kendall, Fla. metropolitan statistical area)
Population: 2,401,971
Violent Crimes per 100,000: 988
No. 4 Las Vegas
Read the full story Kurt Badenhausen
E-mail Create Alerts Speed
© ShutterstockNo. 9 Miami, Fla.
Miami has been crushed by the housing collapse. Moody’s Economy.com estimates that 26% of mortgages in Miami are delinquent or are likely to be written off as bad debt that can not be collected. Violent crime and corruption are also off the charts.
worst city # 9 is …………………….
3=400,000 for a condo on biscayne theres a sucker born every day
True about New Orleans, and there are probably a few other examples.
But the point is this: Irresponsible city planning and governmental favorability to private interests over public benefit has led to a bunch of supersized condos in odd locations that add little to zero public value. The City Commission approved everything that came across their desks and (with developers) tried to maximize the # of units in each project with little regard for anything else, esp infrastructure and a balance of affordable housing. The City in a way should actually be relieved that all the condos are empty–think about the traffic/transportation nightmare if the 12,000 +/- units were actually occupied and all those people had to negotiate those streets (and bridges) all day.
The City should have used its powers to require developers to contribute more to the surrounding areas in which their projects were based; or, the City should have used the impact fees they collected from developers more wisely.
Build a few parks, plant some trees, and fix the potholes and sidewalks. Find somewhere other than under a bridge for sex offenders. And get a grip on the homeless problem.
How long will it take for these foreclosures to hit the market?
jcrimes,
Yes, milllion dollar suits was an overstatement. But from the looks of it and the cars they alighted from, they looked wealthy. They could have got married any fancy place they wanted but chose Pace Park Instead. I am not surprised. I see almost on a daily basis, movie, TV, Commercial and modelling photo shoots there all the time. A picture perfect setting.
Il Villagio is my second favourite building on the beach after Continuum II (on the sheer location factor). May be interior wise Villagio is better than Continuum II.
Going to Midtown 2 and 4 in the next couple of days. I will write about that. I am getting very cosy to the idea of Midtown being a very happening place soon.
bwahahaha…AJ is trying to sell Pace Park as a sophisticated and hip place for weddings. Puh-lez, there’s nothing more distasteful than getting married at Pace Park. That’s a new low. Why would anyone get married in a place that had a murder a couple of weeks back is beyond comprehension. Oh and watch out for your “1 mil” suits and white dresses on that poop infested grass. I bet those cracked and peeling basketball courts, along with all the plastic bottles and trash floating around the bay, really brought the wedding together, right AJ? I guess Vizcaya and The Biltmore weren’t up to par with the oh-so sophisticated Pace Park, right? Gotta love these tourists like AJ who are always trying to tell us, long residents, what Miami is about.
I bet there are TEN times as many weddings on the beach in Sunny Isles Beach then Pace Park. Beach wedding, esp. by the Newport resort are common.
Drew #24, Try NYC, it has bums lying around next to million $ condos. NYC is the only city apart from New Orleans that could be called a third world city with it’s crumbling infrastructure(try driving on the pothole riddled roads the size of a human, the filth and waste lying around).
Drew
you’re absolutely right. i honestly think that several of the recently finished buildings should be torn down. just odd looking structures, completely lost in the surrounding area. start with uptown lofts and yorker. or any of the new condo buildings built on SW 27th ave in the grove. hell even one miami/met one/5o0 are asthetically unimpressive (espectially in light of the surrounding structures, especially epic).
Jcrimes-
Yes. I could talk for hours about the ridiculous projects along SW 27 Ave and those on Coral Way just east of Gables. No consideration for the existing community and a complete lack of thoughtful urban planning (10-storey condos adjacent to single-family homes and duplexes; 5-storey parking garages fronting Coral Way…). That was a quiet, decent working-class neighborhood that was completely broken up by some of those projects–usually built by some fly-by-night developer who didn’t have the capital to buy any land in the urban core so instead bought cheap parcels in that area in order to build a crappy, ugly condo.
Look at Miami 21, the new zoning initiative that they’ve been haggling over for the past 6 years and it still hasn’t been drafted. I find it funny that Manny Diaz was actually in the running for Obama’s Sec. of Transportation. He’s more to blame than Jorge Perez for this housing mess down here. And what the hell has he done about transportation in Miami that would warrant a US secretary position? (Guess that’s why he didn’t get the job.)
Me Thinks there is a lot of misleading BS goin on here. After 30 ?? offers this supposed buyer ended up paying about $225. per sq foot in a Second or even third rate building (location and finishes) with a city rather than a river view and abuilding where all the balcony’s have exposure to your neighbors balcony (no private balcony’s where you are obligated to wave nicely to your next door neighbor when stepping out on your balcony – not even a flimsy plastic partition. Just a glance at Lucas CONDO DEALS PAGE reveals prices at much much better quality buildings with much much better locations at prices per sq foot well BELOW this SUPPOSED foreclosure. Two at JADE with water views for about the same price per sq foot. AJ’s 1800 Club has two listed at $180 per sq foot. Four (4) on Lucas page from the same Brickell River North All BELOW this SUPPOSED foreclosure bidding war. Midtown has two below this foreclosure. The Mark, One Miami, Ten Museum, Latitude On River and on and on etc. etc. So – why isnt there a bidding war in these buildings for these units which anyone with knowledge of the area would rate above and I would say substantially above the quality and location of Brickell On The River. I smell some Swine fever here.
Look at final selling prices to get a better assessment of the market. The asking prices are all over the board: banks with very low initial offers in order to generate the bidding war; meaningless and arbitrary short sale offers; and “real” sellers with unreasonably high asking prices. Even if the $239k for this unit seems high, at least its a comp, and it gives a better picture of the current state of the market than the current listings that are very scattered at this time.
The “30” bidders on this unit got caught up and failed to realize that there are hundreds of other better units in better buildings that will be available for a better price. These were people easily influenced by slick realtors who tried to convince them that Unit 1508 at Brickell on the River was the steal of the century.
You dont have bidding wars at the bottom of the market. You will recognize the bottom when FEAR prevents ANYONE from making an offer on good buildings in good locations. Not enough FEAR out there yet.
Experience is a hard teacher because she gives the test first and the lesson afterwards.
Don’t underestimate the stupidity or ignorance of buyers who don’t understand the market. People are willing to overpay in good times and bad.
Everyone’s got an opinion, but the stats don’t lie: even though prices are still dropping, there is alot more sales activity in recent months. Compare that to a year ago when the market was stagnant since prices weren’t moving. At least now sellers are more realistic and are willing to concede a loss.
BTW wats up with the garage totally covered up with glass in Axis. How are the noxious fumes supposed to escape?
It is the most bare bone lobby I have ever seen anywhere. It has zilch nothing in it!! Not kidding.
Roger,
spot on with NYC assessment.
Lucas,
You never gave me an answer to the 3405 in the 18 initially listed for 385K. I asked the developer today and he said it is rented for $2100 a month and he is selling the unit with the renter and the existing lease for 402K.
Capital Grill was seriously interested in opening a restaurant below 1800 as I heard.
Everglades CVS is about to open its doors any day now.
Paramount Bay is looking really gorgeous. They are getting closer. The side walks are done and looks very inviting. Irrespective of the closings, it will be a great day for all of us when they receive the TCO.
You guys should try the cev*che restaurant behind theBbank Atlantic building. It is 200 feet from Loft 2, 50 Biscayne and Evergades. Inexpensive food and Miami Beach decor in Downtown.
so they’ve found a sucker whiling to put over $230k for this unit. People are stupid. It definetely ain’t worth over 190k.
I visited the unit, it was fine, but nothing out of the ordinary, not a high floor, no sunlight, no privacy on your balconet, cramped between 2 1bed units.
This was probably one of the very last suckers though, I don’t think that there are many more people who will buy over 200k cash in those risky buildings, where over 25% of owners don’t pay HOA fees.
Re bums: Sure, in any major city you’re going to have homeless who camp out in otherwise affluent areas. But I’m also talking about the hell-hole otherwise known as Overtown that sits in the middle of downtown that can be viewed in all its glory while sitting on a 40th floor balcony in Marina Blue. That’s not a homeless issue- its a crime/drug/poverty -ridden area that I would not want to be anywhere near. I’d feel like a prisoner in my condo. (e.g, Parc Lofts)
hey Aj, when are you coming to guyana. your uncle & aunt both want to see you badly
samir
Any of you radical dudes have info on the NE 25th St Area (Design district). I know it’s dangerous, but is it, “get shot while waiting at a red light dangerous”? I will navigate the streets in a vehicle only leaving my condo fortress parking structure to drive to work and go to other non-design district areas. No dog walking or jogging escapades for me. Am I risking my life?
Thanks in advance.
Dude, what building are you talking about? Onyx?
Yup!
Go get your carry permit and buy a nice .45 auto…….that should help.