2 Bedroom Condo at Two Tequesta Point – $674,900
March 29, 2011 by Lucas Lechuga
Last week, our client agreed to reduce the price of his condo at Two Tequesta Point from $696,000 to $674,000. This is a level that we are confident that it will sell quickly. The 2 bedroom/2.5 bath condo is located on the 29th floor and has 1,540 square feet interior, a large terrace off the bedroom and living room, marble flooring in the main living areas and carpeting in both bedrooms. The unit also has crown molding, an eat-in kitchen with separate dining room, custom built-in closets in both bedrooms and full side-by-side washer and dryer.
For those not familiar with Two Tequesta Point, it is a luxury high-rise located at 808 Brickell Key Drive in a privately gated neighborhood of Miami called Brickell Key. Two Tequesta Point is the building on the left in the above picture. The building offers spectacular amenities such as tennis, racquetball, basketball, 24-hour concierge and security, 24-hour valet parking, a bi-level fitness center and a beautiful bayfront swimming pool.
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Pending condo sales up 25% YoY and 4% MoM
just to balance you out gixxer, case-shiller is at another new low for miami. even your tiered data showed another drop on the high end-trending closer to a new low on that data set as well.
going forward, at least all the cash purchases will certainly provide a floor to any major collapse in the future-too much skin in the game. if the investors can succeed at profit through rentals in the coming years, they should do ok. but they purchased units during exceptionally low interest rate periods. when they sell in the future-assuming interest rates will rise rather than fall-can they gain on their capital in a higher rate environment? guess it depends on how profitable their rental business becomes. this will probably separate investors who know how to deal in real estate with investors who just had too much cash on hand. similar to the past “investors” who just had access to too much credit.
gables,
I just got through reading the case shiller data. I’m not too worried about it because that is January info. And again to me case shiller is only one point not the end all be all. Let me see a case shiller report for just downtown and that would be a different story.
And for further analysis of case shiller check this out:
http://blog.altosresearch.com/looking-past-the-case-shiller-its-all-about-supply/#more-3001
And to the point I was making before about the bifuration of the market here is some more info from condovultures.
Condo resellers in South Florida are seeking an average of $523,800 for a unit near the coast – east of Interstate 95 – compared to a price of $118,200 for a unit in suburban Miami-Dade, Broward, and Palm Beach counties””
Case shiller covers this entire area as one place and cant differentiate between east and west of I-95.
As far as investors with access to too much cash all this cash is going toward mostly class A property. And they seem to be doing well.
Bulk buyers have completed more than 80 transactions for 10.3 million square feet for a combined price of $2.3 billion since July 2008. At the end of the 2010, bulk buyers had resold 24 percent of the acquired inventory at a premium of $51 per square foot”
And a lot of the smaller folks from Latin America aren’t even looking for any real returns. To them getting minimal or no appreciation on a condo in Miami is a better investment than having your assets confiscated by Chavez.
Housing 101
– Investors + Bulkbuyers = Sellers not Buyers
– From left pocket to right pocket. White inventory, shades of gray inventory, Black inventory = INVENTORY
– Anything sold under 100K = Slumlords not investors
– Any apartment built in 2006 is 5 year OLD now. Not 5 year NEW.
– South Beach = Party. Brickell = Laundromat for money
There has also be alot of development news recently. The first and biggest news is that Swire purchased the tennis club lot in Brickell for $14 million cash and is combining that lot with the other two lots that already make up the Citicentre project and announced that they are developing 5 million square feet on these lots. Construction is supposed to begin within a year. This is obviously a game changer for Brickell. And it’s Swire so it’s pretty solid. They purchased the other lots during the bust for $40 million CASH when everyone was freaking out and no one could get financing, which is why they got it for so low. It’s going to be a mixed use development but the goal is to get much needed daily retail in the area.
They’ve also started construction of what I’ve heard to be a beer garden on the corner of the former Infinity II site. I belive it’s now owned by Alex Vadia. Brickell is pretty much packed with people even during regular weekdays. There’s much more room for expansion.
Alex Vadia also purchased the former Coral Station lot behind Infinity I near the publix. I don’t know what’s going on with this lot but they have a track hoe on site that dug a huge hole.
I’ve also seen permit applications for something called “My Brickell”. I’ve heard that this is supposed to be a 200 unit condo on the old Related Group Brickell Station lot behind 500 Brickell. I guess they be able to use some parking from 500 lowering the cost.
And then there are things I’ve already posted about like Rilea saying they are going to start back working on 1080 Brickell this year and Terra on 700 Biscayne as well.
And financing is definitely starting to flow again. Everglades was able to get a $90M loan on the property.
It looks like my other comment is awaiting moderation becasue of the links so I’ll remove them.
gables,
I just got through reading the case shiller data. I’m not too worried about it because that is January info. And again to me case shiller is only one point not the end all be all. Let me see a case shiller report for just downtown and that would be a different story.
And to the point I was making before about the bifuration of the market here is some more info from condovultures:
“Condo resellers in South Florida are seeking an average of $523,800 for a unit near the coast – east of Interstate 95 – compared to a price of $118,200 for a unit in suburban Miami-Dade, Broward, and Palm Beach counties””
Case shiller covers this entire area as one place and cant differentiate between east and west of I-95.
As far as investors with access to too much cash all this cash is going toward mostly class A property. And they seem to be doing well:
“Bulk buyers have completed more than 80 transactions for 10.3 million square feet for a combined price of $2.3 billion since July 2008. At the end of the 2010, bulk buyers had resold 24 percent of the acquired inventory at a premium of $51 per square foot”
And a lot of the smaller folks from Latin America aren’t even looking for any real returns. To them getting minimal or no appreciation on a condo in Miami is a better investment than having your assets confiscated by Chavez.
And with the bulk prices they are getting and the low vacancy/increasing rents environment were in I think most of them will do okay on the rental side as well. From another article:
“The number that is most important now is return on investment, not rate of appreciation. That indicates they are not thinking of flipping, but seeing it as a vehicle for low-risk investment.
“If they can rent it out getting anywhere from 4%-8% return on investment, it’s an investment tool that’s better than having money in the bank, which tells me they are likely to keep it long-term, say five to 15 years.
Gixxer, let’s keep narrowing down our domain until we obtain the trend we want. Perhaps we can obtain a case shiller report for block 1080 building 2.
The interesting dynamic of the cash buyers is since it is not leveraged, you will have to compare that locked in capital to current interest rates. if we do encounter a higher rate environment in the future, how will that affect the appreciation of the property? It is really an unknown. But if we return to an era where a one year CD brings in better than 5% interest (like it did in 2006), but property is still not appreciating, that is gonna hurt a cash buyer. not so bad if the cash buyer lives in the property, but stings a bit for the investor.
gables,
I don’t really think narrowing down Palm beach, Ft. Lauderdale and Miami to just downtown is a bad thing when you only want to live in downtown.
As for the overall market I agree with most of your analysis. But that’s not going to matter much to a buyer who wants to live east of I-95. Do you really think many of these people will simply change their mind and take a site in Dadeland over Brickell.
P&U,
You seem to missing the point of the recent investors. They are buying for the sole intent of renting while holding the property and not flipping. Most of them are looking to hold these properties for 10 – 15 years. The average homeowner only stays in a home for 5 – 7 years. Using your argument every home is part of the shadow inventory because they’ll be back on the market in 5 years.
As far as age over half of these condos were completed during or after 2008. Besides which, in the life of a building being 5 years OLD is pretty YOUNG. Were not talking about cars here. Although I would focus on buildings that came online recently just because they are filled with mostly cash buyers so they are more financially stable.
I think you need to actually come and visit Brickell. The places is filled with people on a regular Wednesday night. It’s definitely growing into a destination.
Gixxer
Have you looked at building where the investors control the HOA? Renting is permitted on a hourly basis. Most good condos permitted yearly leases once in two years.
If it looks like a duck, walks like a duck, talks like a duck – it is a duck.
Brickell? At night? Do you think I want to get shot? It is bad enough during lunchtime on a week day! Few months ago I had taken some Bolivians to Big Fish and there was drive by shooting, police choppers buzzing overhead. Just like Miami Vice!
Okay now I know you are a complete joke. I walk around Brickell at night every week. It’s packed with women walking around in stilletos at 2 am.
The only place in Brickell that I wouldn’t walk around at night is the area west of the metrorail and that’s mainly because there is nothing to do there.
Wheter you think a condo in Miami is a good investment or not why would you waste time out of your day to lie about a place. I just don’t get some people. I guess the internet give is an outlet for a lot of weird people.
Brickell at night is not dangerous at all. Poor and unemployed, you probably are so because you are in idiot.
As you go west, I would not be comfortable in the Brickell area. But from Mary Brickell Village to the coastline, I don’t see it as a dangerous place. I think Coral Gables is safer overall, personally, but many parts of the built up Brickell area are just as safe. In my opinion, much safer than downtown across the river.