Paramount Bay Sales to Launch Early Next Month
September 6, 2011 by Lucas Lechuga
We received official word late last week that sales for Paramount Bay condos will launch early next month. Of the many condo developments constructed during the recent condo boom in Miami, Paramount Bay will be the last to launch sales. It is also one of the few luxury waterfront developments and perhaps the finest of the bunch. Buyers have eagerly been awaiting for condos at Paramount Bay to begin sales and we expect units to sell quickly. As a result, it is important for potential buyers to become familiar with the building and floor plans before the launch of sales. Last week, we were given a private tour of Paramount Bay and can offer the same opportunity to those who contact us with an interest to purchase a condo at Paramount Bay.
Please refer to the Paramount Bay condos website for full information regarding the sales launch and to view pictures of various condos at Paramount Bay.
Omni area enjoying revival spurred by Genting
land-buying spurt near the Arsht Center for the Performing Arts could translate into a new center for downtown Miami.
In the three months since the Genting Group announced plans for a resort on the bayside site of The Miami Herald, the once sleepy Omni area has turned into an epicenter for downtown Miami’s redevelopment.
The transformation of the area — with the Arsht Center for the Performing Arts as a centerpiece of a vibrant entertainment district — appears to be happening in a larger and faster way than anyone could have imagined.
In addition to Genting’s vision for Resorts World Miami plans are in the works for a mixed-use development at 1400 Biscayne Center by Espacio USA and a new Publix Super Market opening next year at 17th Street and Biscayne Boulevard.
“The energy you feel on the Boulevard hasn’t been felt there for a long time,” said Alyce Robertson, director of the Miami Downtown Development Authority. “It’s a really exciting change for an area that’s been under the weather for so long.”
Leading the way is the Malaysian conglomerate that spent $236 million in May for the 13.9-acre Herald site and is now vying for control of the Omni Center with the recent purchase of one of two bank notes on the distressed property. Genting also has bought small parcels along Biscayne Boulevard across from the Omni and west on Northeast First Avenue and Northeast 15th Street.
And most players in the area’s real estate market believe the Asian giant isn’t done shopping. Many property owners said they’ve been approached by prospective buyers who could be Genting representatives, considering the company has been working the acquisitions quietly.
Genting declined requests to discuss its recent purchases, only confirming through a Miami spokesman the Omni note purchase. A clearer sense of the company’s vision is expected later this month when Genting unveils its master plan for the Miami Herald site, being designed by Miami’s Arquitectonica.
The Malaysian firm’s hunt for more land is driving up real estate prices along Biscayne Boulevard west to North Miami Avenue. From small parcels by private owners to the Primera Iglesia Bautista church and the Miami-Dade County School Board parking lot, the area is teaming with land ripe for a revival.
A year ago, tracts in the Omni area were offered for $40 to $60 a square foot – and few were selling. These days, prices are as high as $200 a square foot and more for waterfront property, local real-estate brokers say.
The group that last month sold Genting a site across the street from the Omni now occupied by a Checkers burger joint reaped $16.25 million for the 2.38 acre property it had owned since the 1960s. During the boom it was under contract to a developer who got approval for a high-rise condo tower, but then defaulted in April 2006.
“The perceived value of that property has gone up and down over the many years we’ve had it,” said Henry Block, the managing partner of the investment group for the 1650 Biscayne property. “We felt like this was a fair price in today’s market. The time was right.”
Realtor Suzanne Hollander, who has two listings in the area, has seen a significant increase in interest after news that Genting is looking beyond the Herald site. Hollander has the church at 1790 NE Second Ct. on the market for $1.9 million and an assemblage of land in the 1700 block of Northeast Second Avenue that includes the S&S diner, all listed for $3.7 million.
“My phone is blowing up after Genting’s deals,” Hollander said. “They have inspired confidence in an area that has previously not been seen that way.”
But other brokers say the new level of pricing makes closing some deals a challenge because a developer needs to be able to build a dense high-rise project to make some of these numbers work
“There’s a lot of hype around the recent acquisitions; you have to temper that,” said Tony Cho, president of Metro 1 Properties, a broker who works in the Biscayne corridor and surrounding neighborhoods. “You can’t blame people for wanting to get the most money they can, but at the end of the day the deal has to make economic sense for the developer. The numbers don’t crunch if you’re not selling condos at $500 or $600 per foot.”
While Genting is catching most of the headlines, it is not the only international player betting on an upswing in the Biscayne corridor. Espacio USA, the American arm of the Spanish real estate firm Immobilaria Espacio, was actually the first one in, buying 1400 Biscayne Center last year for more than $32 million. In the last year, Espacio has invested $1 million in capital improvements and taken the mixed-use office and retail space from an occupancy level of 11 percent to 72 percent. New tenants include Centro Cultural Español Miami, Atlantis University, John Moriarty & Associates and i.d. Art Supply.
Espacio’s long-term plan calls for knocking down the existing structure and building a major mixed-use redevelopment designed by renowned architect I.M. Pei. A master plan is expected sometime next year. The project will be divided into two phases that could start in a few years.
But Espacio is looking for more land in this once-blighted area.
“We really like Miami and believe that the future for downtown is in the Biscayne corridor,” said Maribel Goldar, marketing manager for Espacio USA, which set up its U.S. headquarters in Miami in 2008. “We want to stay here for the long-term.”
The activity is good news for long-term investors such as Dr. Barry Silverman. The retired orthopedic surgeon from Aventura bought the former Les Violins site at Biscayne Boulevard and 17th Terrace about a dozen years ago because he’s always believed in the viability of the area. But not many shared his vision back then.
“As soon as the Genting deal was announced we started getting calls,” said Silverman, who is sitting with 1.1 acres of vacant land and listening to offers. But he’s in no hurry. “The land in the Omni entertainment district is getting used up. As it gets scarce, it puts us in a better position.”
How far the Genting spillover impact will spread remains to be seen. Could Watson Island just over the MacArthur bridge be a future target if Genting wanted to create an amusement park, similar to what it has done at Resorts World Sentosa in Singapore?
The owners of Jungle Island says they have not been approached by Genting and are not in any kind of negotiations.
“We know that we’re a location for something to happen in the future,” said Ronnie Krongold, co-owner of Jungle Island.
Meanwhile, Genting and other developers remain busy on the mainland side of the causeway.
The Miami-Dade School Board has solicited development proposals for one of its undeveloped parking lots at the southwest corner of Northeast 14th Street and Second Avenue, now used by employees during the day and for Arsht Center parking at other times. The site is just under one acre; current zoning would allow for a building up to 48 stories.
Developers were asked to submit plans for a mixed-use commercial project that would allow the School Board to utilize parking facilities, educational space or both. Preliminary plans were due in July, but the School Board on Friday declined to release details while the proposals are under review.
Several other undeveloped lots surrounding the Arsht Center are prime space for future development.
Genting and the other note holder on the Omni Center still must sort out who gains control of the troubled retail, office and hotel complex. The other note is held by a group of veteran local developers: Jorge Perez, Jimmy Tate and Sergio Rok.
As these plots are transformed, some of downtown Miami’s focus may shift away from the Flagler Street and Brickell areas.
“You’re looking at the new spoke in the middle of the wheel,” said Miami City Commissioner Marc Sarnoff, whose district includes the performing arts district. “The Omni area in 20 years will be the new core of downtown Miami.”
23 Biscayne has the tower crane up and is going vertical. I think pre-sale prices are around $230. And I believe Paramount has been getting about $480.
Then you have the Sonesta Mikado Condo/Hotel that Hollo is doing, that should get stater next year.
Fifteen group also recently purchased the old ICE condo site.
The Genting deal definitely changes a lot in that area. Just imaging that project combined with the new museum park and that whole area is going to be transformed.
Gixxer, A person I know who held the pre construction contract of Paramount was offered a revised perice of $420/sf. They were negotiating for $400/sf. I do not know the final outcome but if they chose to take their 5% and walk away, it would have been a terrible mistake as according to you it will be offered at $480 and as per other RE insiders, this project will be sold out in weeks when it opens to the public.
I guess it depends on the unit. The range for units have been $415 – $600. But I think for the most part at $420 they would have probably come out ahead.
It was the best 2 bed line in the building. Negotiations happened about 2 months ago. Both parties were haggling on the $400 vs $420 figure. It is the line that would easily sell out at $480 in matter of weeks if not days. The opening of Life Sciences Center, The announcement of Genting, The opening of Publix and a whole food store at the ground level, Completion of Biscayne Blvd redevelopment, Lenny Kravitz interiors and other considerations made this already desirable Class A Building into a must have. Out of 349 units less than 200 are expected to hit the market. It will be fun to watch.
Yes, as long as Lenny Kravitz is doing the interior design, it surely is a “must have.”
I heard Jamiroquai designed the elevators.
Gixxer, would it be farfetched if we assume Paramount will command a much better price per SF than ICON Brickell or Marquis? Will it become the most expensive building in Downtown?
Epic is the most expensive new condo building in downtown Miami, and Paramount is unlikely to beat it.
Yes, You are right. I did not think about Epic. But it looks like Paramount Bay might beat out ICON and Marquis.
Paramount needs its own marina to be truly A-class building. However, given the scope of future development around it, it is not unreasonably priced. In 10 short years, Edgewater will be one of the finest neighborhoods of Miami, and Paramount is clearly one of its signature towers. In any case, it would be helpful if someone posted real pics of its interior design (lobby, hallways and amenities).