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Miami Real Estate Review – Episode 7

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In this episode, we provide an update regarding the developer blowout sale at The Plaza on Brickell that started last Thursday. We also touch upon pricing at Icon Brickell and discuss news regarding Marquis. We end the show by highlighting four noteworthy foreclosures that came onto the market since last Friday.



27 thoughts on “Miami Real Estate Review – Episode 7

  1. The story regarding Plaza selling out 41 units over one weekend is unbelievable! Looks like there are a lot of hungry wolves out there (with cash in hand).

  2. May Home-Buying Activity Looks Worse Than Expected
    By James R. Hagerty and Nick Timiraos

    http://blogs.wsj.com/developments/2010/06/04/may-home-buying-activity-looks-worse-than-expected/

    “How will housing sales fare without the benefit of big tax breaks for home buyers? The early indications are that sales are down very sharply in recent weeks, worse than most brokers and analysts expected.

    Of course, economists and real estate analysts expected home sales to slow after the tax credit, of as much as $8,000, expired at the end of April. But early data from real estate brokers indicate that the sales declined as much as 25% to 30 from the year-earlier levels in some markets.”

    Uh oh, but wait…..

    “In Florida’s Miami-Dade County, home-sale contracts signed in May were up nearly 5% from a year earlier, according to EWM Realtors. Many buyers in Miami are foreigners attracted by huge price cuts there over the past couple of years, said Patrick O’Connell, a senior vice president at EWM.”

    If the majority of people purchasing are foreign then they obviously aren’t going to get the tax credit, so the expiration of the tax credit has absolutely no bearing on them.

  3. Do we have any data on the identity of these purchasers? While I am delighted to hear that these units “flew off the shelves” – - the speed at which they moved fascinates me.

    scriv

  4. Scriv, I am not that surprised. Plaza is a marquee development in Brickell. IMO, one of the best buildings in Brickell and a great location. Every self respecting Venezuelan or Colombian wants to live there! It has a great buzz about it and even with out this price drop, the developer could have sold the remaining 48 units at regular price over a period of 6 months instead of over one weekend. But maybe he needed some sudden cash infusion or something. Just goes to show that Miami’s attraction to the South Americans has not dimmed one bit. Next to get sold out will be Icon and Marquis.

  5. Watsup with all these multimillion dollar deals!?

    Miami Beach mansion sells for $16 million

    By DOUGLAS HANKS
    dhanks@MiamiHerald.com

    A German businessman has paid $16 million for a Miami Beach mansion completed just weeks into the global financial crisis.

    The 17,200-square-foot residence at 88 La Gorce Circle comes with two docks, a staff house, a five-car garage. marble staircase and an elevator. Seller Todd Glaser, a developer, built the 10-bedroom mansion “on spec,” hoping he could find a deep-pocketed buyer once the project finished. Construction began in January 2008, and finished in November 2008, just as a credit crisis was throwing financial markets into turmoil.

    Nearly 18 months later, the house sold furnished for well less than the listing price of $25 million (reduced in 2009 to $19.5 million). But it’s still believed to be the priciest residential deal in Miami-Dade since Shaquille O’Neal’s Star Island mansion sold for $16 million last year.

    Glaser’s partner in the venture was Armin Mattli, owner of Clinique La Prairie spa and a real estate investor, according to the sellers’ law firm, Waserstein Nunez & Foodman.

    Nelson Gonzalez, the Esslinger Wooten Maxwell real estate agent who represented both sides in the sale, declined to identify the buyer beyond a German executive who is wealthy but not well-known. He’s not moving to Miami Beach, but likes to travel there.

    “It’s a vacation home,” Gonzalez said.

    Read more: http://www.miamiherald.com/2010/06/11/1675761/miami-beach-mansion-sells-for.html?mi_pluck_action=comment_submitted&qwxq=82937#Comments_Container#ixzz0qahTUGRG

  6. Scrivener- What kind of buyers were they? Try foreign nationals who launder, wash, funds they would have had to pay taxes on back in their home country. This is one of the advantages of living in Miami never knowing how, and how much your neighbor has stolen. Then on top of that your high end neighbor may have equally high end narco traficante friends. This is one of the fringe benefits of buying in Miami. You think the foreclosed penthouse was owned by some good old American taxpayer? I would say not.

  7. Mark Zilbert- thanks for the info on http://www.miamism.com. I don’t know what has happened to this blog either. There used to be a lot of postings. I think Lucas is doing a good job, though perhaps this is more a reflection of less interes in condos, and more interest in single family homes? After all you have to put up with a lot of other peoples shit when you share a condo, by buying a condo. The biggest headache is having other peoples financial problems becoming your own. When your neighbors don’t pay their maintainance it becomes your problem. I think there is much less interest in condos because of this, and more interest in homes. Look at the sky high maintainace costs at the Bristol, 50 biscayne bay, one bal harbour, the majestic. Then u may get stuck like the current condo owners at one bal harbour and be forced to sue the owner of a building for letting it run down, discontinuing valet, and deal with rumours of mold intrusion. A house at times sounds so much easier during these challenging times.

  8. Plaza at Brickell is a destination? wtf! I remember looking at the penthouse units there (for rent) in early 2009 and immediately turned around and walked out. The kitchen was a refrigerator and a couple cupboards (most penthouses have room to actually cook) and the cheap carpet and fixtures was an insult to humanity. The floor plan left a lot to be desired as well. I also found the amenities to be less than desirable (seriously, they had a business center with 3 dinky computers there..more like an Internet cafe? no real place for a conference table…and what business person these days doesn’t have a laptop?)

  9. elvis, i understand many of these building went up in the boom, and provided minimal interior amenities and carpet since everybody would immediately upgrade to hardwood floors and granite countertops upon purchase. discerning buyers in today’s market are thus a bit turned off since the $10k marble countertop no longer can add $50k resale value on flipping. business center is like a gym-a marketing ploy of little use to residents.

  10. Guys,

    Plaza is not a marquee development in Brickell. Icon and 4 seasons and maybe Jade are more of marquee developments

    Again being an end user and being at gound zero and after looking at all the new condo buildings in Brickell, Downtown and Midtown, I can tell you all that Plaza at Brickell is just another one of the nice new MIDDLE OF ROAD new buildings in Miami on or near the bay. It is closer to the bay then the then middle of road buildings.

    Middle of the road like, my building Infiniy, Axis, 1060, 50 Biscanye, etc. There are one or two things I liked better at Plaza then my Infinity building, but there were several things I liked better at Inifity then Plaza.

    The best thing i liked about is that Inifnity was a much better value for the dollar then Plaza for what I was looking for.

  11. gables,
    you siad –elvis, i understand many of these building went up in the boom, and provided minimanral interior amenities and carpet since everybody would immediately upgrade to hardwood floors and granite countertops upon purchase. discerning buyers in today’ s market are thus a bit turned off since the $10k marble countertop no longer can add $50K rresale value on flipping. business center is like a gym-a marketing ploy of little use to residents.

    —> just FYI all these condos in these middle of road or better new buildings (including Plaza) have real stone (grantie) countertops standard, but you are correct that most of all of them come with bare concrete floors or crap carpet.

    —-> also due to the bad market the cost of finishing the condos are cheaper now . It cost me only 10K to have my marble floors put down, paint walls and stair cases, etc done. So it rec’d a 100% finished unit for 10K.

  12. Owneratinfinity- Do you have a guess as to how many of the buyers at infinity are trying to wash money through a real estate transaction? I was told nearly 50 percent of the latins who buy on Brickell are not pay taxes on the funds earmarked for purchases, when they should. Any thoughts as to whether the zetas are washing theirmoney through these big penthouse deals?

  13. Iphne:

    I will “bet the farm” that there is absolutely no data available on whether or not the Miami condo market is being used for such purposes. An interesting theory though. (what does the term “zetas” mean?)

    This is particularly true because …. eh …. not going to go there.

    scriv

  14. Iphne .
    you said – Owneratinfinity- Do you have a guess as to how many of the buyers at infinity are trying to wash money through a real estate transaction? I was told nearly 50 percent of the latins who buy on Brickell are not pay taxes on the funds earmarked for purchases, when they should. Any thoughts as to whether the zetas are washing theirmoney through these big penthouse deals?

    —-> I don’t know about that, but most of the condos in my building was paid for in cash/

  15. computer consultant,

    “Costar, based in Bethesda, Maryland, made its forecast for property prices assuming a 10 percent loss based on previous disasters, such as oil spills, hurricanes and the 1979 Three Mile Island nuclear accident in Pennsylvania, Miller said. His estimate relied on recent sales data of property within 200 feet of the Gulf waterfront and spanning 600 miles from Venice, Louisiana, to Clearwater, Florida.”

    Seems pretty ridiculous to post an article about POSSIBLE loses that could occur up to Clearwater on a blog about Miami real estate. Even the places that say its possible for oil to reach Miami are only expecting tar balls.

    http://www.nbcmiami.com/news/local-beat/Miami-Dade-plan-for-oil-disaster-Just-say-no-to-volunteers-96350434.html

    “Volunteers are not going to be involved in picking up the tar balls,” said Espinosa. “That is going to be contract people and or people who are trained and who have the proper equipment and protection to do that.”

    Espinosa said the Coast Guard and other authorities have told him the amount of oil expected to reach Miami-Dade county is relatively minimal, and will be weathered tar balls, which means they’ll be much less toxic. He said there are enough people to assist in the clean up without needing volunteers.

  16. Owneratinfinity
    You seem to like and enjoy your Infinity bldg. and you have mentioned(in the past) that the developers are not to eager to go down in their price,although not too much sales demand .Just recently a friend willing to buy there and move w.his fam.(I have mentioned this to you before) saw a unit in the floor 24 or 25,facing NE,2/2.5,aprox 1,500 sqft.,wrap around balcony.for the price of 450K or $290 per sqft.

    Can u give opinion re:price?,will continue up? price seems high as compare to other bldg. in the area?He has to finance ,if he buy.Will the appraisal comes much less??
    Are they closing units? my friend’s wife is concern about safety,bldg.still empty.
    Your opinion,again, is very much appreciated.

  17. palapa48

    you said,
    Can u give opinion re:price?,will continue up? price seems high as compare to other bldg. in the area?He has to finance ,if he buy.Will the appraisal comes much less??
    Are they closing units? my friend’s wife is concern about safety,bldg.still empty.
    Your opinion,again, is very much appreciated.

    —> tell you fiiend to look at condoreports.com and you will see that Infiniy is selling for 240 to 260 per foot

    —-> my condo was the best deal for me in all miami and the nation cause I paid 22o per foot for my condo on the 50 and 51 floors with an direct city/bay/ocean view.

    —–> I would suggest that your friend goes back to the developer and see if he can get this price per sf down to 25o or so. that would be a a much better deal for him.

    —–> the building manager and her staff are doing excellent job and they treat me like a king, like i live in a much more upscale bulding.

    —–> the security is good and I feel very much at home and safe in the building

    ——> the building is only 25% sold, but I like how empty it is, it’s not over ran but rents (yet), its nice, clean and very peacefully, I am enjoying it while it lasts

    ——> tell your freinds wife that she has nothing to worry about. The security is good

    ——> the developer’s VP of OPS treated me great and gave me need a unit in the buildiing to use for 2 months while I was waiting to move into my condo

    ——> I think at 250/260 or less per foot Infinity is the best value in Brickell, your friend just needs to get his price per sf lowered, but if he’s a preconstruction buyer then he is stuck with that price per sf.

  18. Palapa ,

    sorry I had to retype in my user name for this blog and I typed in Infinityatbrickell instead owneratinfinity by mistake.

    The comments on post 24 is from me owneratinfinity.

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