New Miami Condos – Closing Rates for December 2008

December 14, 2008 by Lucas Lechuga

It’s been almost three months since my last Miami condo closing rate update.  The last one was published on September 22, 2008.  Unfortunately, there has not been a lot of progress in closings for most of the condo developments below since that time.

Miami Condo Closing Rates for December 2008

Below, you will find the date that each condo development began closings followed by the number of closed units in each condo development:

Latitude on the River had three new closings since the last update, Onyx on the Bay had three new closed condos and 50 Biscayne had two.  Ten Museum Park and Loft Downtown 2 were both unchanged since the last update.

Miami Condo Closing Rates for December 2008

Quantum on the Bay and Plaza on Brickell each had an impressive number of closings, since the last update, considering how long ago closings began.  Quantum on the Bay had 28 new condo closings while Plaza on Brickell was able to close 46.

Miami Condo Closing Rates for December 2008

On Friday, the Miami Herald reported that the developer of 1060 Brickell is looking to sell around 60 percent of its condos in bulk.  Closings at 1060 Brickell recently reached the 40 percent mark meaning that this represents the developer’s remaining inventory.

Miami Condo Closing Rates for December 2008

900 Biscayne Bay and Ivy have now each reached the 40 percent mark.  I’m actually quite surprised that not one of the condo developments in this last group has been able to hit the 50 percent mark.  Enough time has certainly gone by.  To rev up sales, 500 Brickell recently held a 4-day promotion offering a free Mini Cooper with any condo purchase from the developer’s inventory.

The next update will include Icon Brickell, Everglades on the Bay (now known as Vizcayne) and Infinity at Brickell which recently began closings.

Disclaimer: The above closing rate information was derived from public County records. There can be a 2-3 week delay from the time that a closing occurs and the time that the closing is recorded.

Leave a Reply

192 Comments on "New Miami Condos – Closing Rates for December 2008"


Sort by:   newest | oldest | most voted
Anonymous
gables
7 years 9 months ago
Lucas, Thanks for the update. Great to see some numbers since the financial storm hit. The recent condo activity appears to be terrible, although i expected that under these financial conditions. Could you possibly provide the total number of closings over this period? Looks like we may start to see the separation of building haves and have nots. Seems like buildings over 70% may survive, but i see quite a number of buildings with under 50% closings. this is going to create a large problem for those particular buildings, and will also keep downward price pressure for all buildings. my… Read more »
Anonymous
gables
7 years 9 months ago

Plaza has certainly surprised me. While i like the building, i did not expect so many closings. I think it is overpriced. Is the developer providing any discounts or incentives to close? Compared to another Related property, 500 Brickell, there appears to be significant differences in closings, even when considering different start dates. any insight to why plaza has done fairly well? and what happened to asia? thought this was full of high value buyers who were immune from a downturn?

Anonymous
jcrimes
7 years 9 months ago

honestly, i’m surprised by the difference in rates, especially when you consider that a lot of these buildings are similar when you cut to the chase and started closing around the same time.

Anonymous
AJ
7 years 9 months ago
gables, You asked almost all the questions I wanted to ask! But I can add on to what you said. I am very pleased with Quantum. Plaza is a major surprise. It is a good building and people fell in love with it. Even Opera did better!! from 34 to 37%. Who would have thunk? I have an explanation why 1800 hit a wall after 69% (actually it is supposed to have closed 70.2% by the buildings estimate, the difference with Lucas’s numbers are minimal anyway). The developer it seems does not discount a dime on the units he holds.… Read more »
Anonymous
Huh
7 years 9 months ago

thunk?

Anonymous
gables
7 years 9 months ago
jcrimes, i agree. that is why i was a bit puzzled by the difference between plaza and 500. developers may have to realize that to move the units in the low closing buildings, either find a bulk buyer like avenue is trying, or drop your sale price to an equivalent price and let the common public move the units. at some point, the developers must realize all the “luxury” appliances, floors, etc do not add up to a $100k+ premium. a bare condo now runs for under $200 sq ft, and the “luxury” adds at most about $50 sq ft,… Read more »
Anonymous
Renter Tom
7 years 9 months ago
A 70% closing rate with even half of that (35%) being rented by 100 different floplords with some desperate and others going into foreclosure as time goes by, not a building I would want to buy in. Even a stable building has significant start up HOA issues, but one coming out of the gate already on life support is not good at all. To rent maybe, since no real risk, just hassles. The severity of this pullback in home values has exposed a lot of weak positions and exacerbated a lot of people near the margins too. I was hoping… Read more »
Anonymous
Renter Tom
7 years 9 months ago

“rocketing towards stability’ …..ha ha ha, that is the funniest thing I have heard in a long time!

Anonymous
gables
7 years 9 months ago
met 1 is a bit of a surprise to me. i actually like the building exterior and location. i understand from some on this blog the interior was not all it could have been. was it that bad on the inside, or just not the luxury people were looking for? i see this building as one which should be affordable, a step up from the loft buildings in downtown, but would attract a professional crowd with its location. has nice water views, and should be near a commercial hub in the next few years. i would consider buying there if… Read more »
Anonymous
Questioning Downtown
7 years 9 months ago

Does anyone have info on Met1? I agree it is a dud, but the middle floorplan is quite a nice 2/2 with supposedly a great bay view. Also, the future of the area with the met center sounds pretty interesting

Anonymous
Questioning Downtown
7 years 9 months ago

further, why are there so few units listed? reminds me of MB when it was first opening…does the developer prohibit listing on the mls?

Anonymous
Joe
7 years 9 months ago

AJ — How is the gym at 1800? Does the pool deck include an outdoor jacuzzi?

Anonymous
Joe
7 years 9 months ago
i live at plaza on brickell. i went last week to sales office and i have to say that 901 building is almost sold out. just few unites lefts. the other building 901 started closing few months ago and thats why you see 70% closing rate. plus developer rented few units at 901 with option to buy. otherwise would be over 90% all the best units are gone. just couple left. i wanted to upgrade to a bigger one and i talked to the sales people. even only few penthouses are left. plaza on brickell has a waiting list for… Read more »
Anonymous
Dan
7 years 9 months ago

Joe — how is the elevator in the morning? parking? any general complaints with living there?

Anonymous
7 years 9 months ago

I hope you guys caught 60 minutes.
Words fail me.

Anonymous
Michael
7 years 9 months ago

Lucas….

You stated there were three closings at Latitude on the River since your last update yet when I checked recent sales on your site the last sale was reported on May 16.
According to the public records that you used as your source, can you quote the price per square foot that these units sold for and when.
Much appreciated.

Anonymous
storm
7 years 9 months ago

I saw the 60 minutes episode.
How could things have gotten so bad? Tough times are a comin’.
I can answer why the Midtown4 numbers are so high. Everybody in the building is renting from the developer. I believe he bought the unsold units out to rent. It’s a nice place to live and was the epicenter during Art Basel.

Anonymous
gaelgha
7 years 9 months ago

Lucas,
Great Job!
Would you be able to do the same for South Beach?

Anonymous
Alex
7 years 9 months ago

Has anyone participated in todays REDC auction?

Anonymous
7 years 9 months ago

Michael,

The three closed sales don’t appear on the recent sales page because only resales appear there. The three closed sales were developer sales that recently closed.

Anonymous
7 years 9 months ago

Link to 60 minutes “A Second Mortgage Disaster On The Horizon?”

http://www.cbsnews.com/stories/2008/12/12/60minutes/main4666112.shtml

The reference to a building that was 100% sold with 25% in foreclosure.. I assume that’s Jade?

Anonymous
Michael
7 years 9 months ago

Lucas,

Can you tell me the prices paid on those three Latitude developer units?

Anonymous
AJ
7 years 9 months ago
Joe, 18 has one of the best gyms I have seen in new buildings. They could definitely use some bench presses and incline presses. Other than that it is well equipped. The double height and the industrial design interiors are eye catching. The bay view is incredible from the gym. It is very entertaining to see all the activity in the Pace park while you are on the tread mills or working out, you may have hard time to choose between looking at the TV’s or outside! Yes there is a Jacuzzi outside on the pool deck (A source of… Read more »
Anonymous
AJ
7 years 9 months ago

storm,
you only surface if there is a comment on Midtown 4.
I don’t remember the last time you posted. One of the mangers at Mondrian rents in your building. Haven’t been to Midtown on this trip to Miami. I Should have checked out. But keep us posted about life out there, new developments, new business openings etc. I believe Ocean Drive is published out of there.

Anonymous
Questioning Downtown
7 years 9 months ago

sooo, does anyone have info on met?

Anonymous
Joe
7 years 9 months ago
AJ —Funny you mentioned that Quantum skimped on the hot tub. It might not be important to many people, but when I was considering purchasing there it bothered me that this amenity wasn’t offered. In light of the fact that there are many medical field people at 1800 with not a great deal of free time would I be correct in assuming that the pool deck is underutilized and fairly empty most of the time? Not that I would expect it to be like the Flamingo, but I was just wondering if it’s totally dead. And how is the noise… Read more »
Anonymous
AJ
7 years 9 months ago
Joe, weekends, the pool is well utilized. Lots of beautiful people tanning on the beds. Some residents and some visitors. Weekdays the pool deck is dead. Noise transmission was never a problem. I could not hear the TV from the neighbors. The noise from own a/c unit is an issue for many. It is a loud friggin unit but extremely energy efficient and cooling. People put some noise insulating barriers to address that problem. I like the SOBE buildings where the a/c unit is outside the flat. But you cant have everything I guess. Also regarding the noise, 18 is… Read more »
Anonymous
jcrimes
7 years 9 months ago
as for midtown…curious to see how the commercial aspect of the project plays out now that two anchor tenants are bust (linen’s & things and circuit city). we will witness just how strong the appeal of target really is. as for ocean drive moving its HQ over there…well, jerry p. can throw all the hip parties he wants but at the end of the day, his revenues have to be down HUGE. his mags don’t make money from a subscriber base, that’s for sure. and the real estate developers and stores that paid him all the money for advertising space… Read more »
Anonymous
60 minutes
7 years 9 months ago

Did you guys see that 60 minutes spot? Freaking awesome. I’ve been watching a new condo building in Miami beach where 2 bedrooms sold for 1 million. Last sale in October was 420K. 32 units total with 4 in floreclosure, 5 still owned by developer and 13 for sale! Someone is already offering at 390K 2 months later! No takers. Every single purchaser is underwater! Can’t wait until prices hit 150 for the unit I’m lo0king at.

Peace.

Anonymous
Joe
7 years 9 months ago
AJ, and others—Thanks for all the info. I’ve lived in South Beach & was considering making the move to miami, to one of the new condos such as 1800. Do you find it a little too confining just having Pace Park to walk about your area compared with all of SoBe? I like that SoBe is so pedestrian friendly & fear that I’ll feel a bit isolated at 1800, especially without a car. I’m aware of new shops & restaurants in your area, but they seem so limited compared with the multitude & diversity at SoBe. Would you not liken… Read more »
Anonymous
Hugo P
7 years 9 months ago
Lucas, again, great information. Again, these numbers are very good to see where developers stand, but not really give you much information as to the status of each of these buildings for prospective buyers. You need to also look at how many units are for sale on MLS by owners/investors/speculators to realize where the individual building stands. For example, a building that is 78% closed like Quantum (698 total units), currently has about 60 units for sale on MLS. Based on the closing rates Lucas mentions, 146 units are still available from the developer. That is a total of 206… Read more »
Anonymous
jcrimes
7 years 9 months ago

joe
i know what AJ will say…but, as a beachnik, i don’t think there’s any comparison. there’s a lot to criticize about south beach…but one thing is certain – you are always within walking distance of something to do and your options are significantly greater than the pace park area. maybe in five years this dynamic will change, but if you’re talking about a year or two of renting, the choice is painfully clear where to be.

Anonymous
Richard
7 years 9 months ago

Unit 2106 at the Mark on Brickell Bay sold for $155,000 at the Sunday Auction. It was a 1-1.5 unit with 750 sq. ft. Lots of others in the same tier are listed in the $350,000 up range. What possible motive does anyone owing more than a unit worth have to keep paying the mortgage. Plenty will probably be leaving the key at the front desk on the way out. A newer 3-2.5 townhouse in Homestead went for $82,500 which actually might make a decent rental if half the town wasn’t for sale.

Anonymous
Joe
7 years 9 months ago

jcrimes—–I tend to feel similarly. I wish I could find a large fairly new condo comlex in South Beach similar to the ones opening up in Miami, but not at insane prices (to purchase). Any suggestions, or am I just fantasizing? And if you were to predict which area in miami would have more of a SoBe dynamic in say 5 or more years, which of these 3 would you select: Brickell, Pace Park or downtown between these two areas?

Anonymous
AJ
7 years 9 months ago
jcrimes, for once you are wrong about me. SOBE is a walkers paradise. I just walk walk walk. I walk all the way from West avenue to ICON marina, along the water to Apogee, South Point Park, to Ocean drive, Lummus Park, Lincoln road and back to West avenue. Some times I bicycle too. There is no place in the whole wide World as walker friendly and as walker interesting and amusing as SOBE. I will have a tough time to choose between My Old SOBE condo or my Swanky 1800 condo to live in when I move to Miami.… Read more »
Anonymous
Renter Tom
7 years 9 months ago

AJ – For what it is worth, dump the downtown ASAP and just live on SoBe. There is no doubt that the downtown will fair very poorly….no matter how “swanky” (which won’t last by the end of 2009 as foreclosures mount). No reason to hype a sinking ship…people are already out on their lifeboats.

Anonymous
AJ
7 years 9 months ago
Oh. Let me add another choice of almost free transportation that will put you in SOBE from Pace Park. From OMNI Terminal bus station (Right next to the Metro Mover, which is about 2 blocks from 1800), you can take 5 buses (FIVE!!) to SOBE and one night Owl. You get one almost every 5 minutes. Take A, C, S, K, M or 246 night owl for $2, you are in SOBE. So if you do not want to Walk or Bicycle or Drive or Take a Taxi, you can get to SOBE cheaply enough. No other area in Mainland… Read more »
Anonymous
Brian
7 years 9 months ago

Ocean Drive already closed down in Midtown. Its now published out of NYC.

Anonymous
AJ
7 years 9 months ago

Brian,
That is not good news. I hope it is not true.

Anonymous
Joe
7 years 9 months ago

AJ—–great post. Quite apropos to my situation, as I have lived in NYC & am accustomed to being within walking distance of what I need recreationally & of the necessities, such as food shopping. Speaking of which, where do you do your grocery store shopping? When I lived in SoBe I was able to walk to Publix.

Anonymous
900 guy
7 years 9 months ago

AJ, you’re right about some things, but not about walking around 1800 club. Do you walk north up biscayne? hope you have a concealed carry permit. you’re going to get shot someday. Don’t say we didn’t warn you. As the recession worsens the criminals become more desperate.

Anonymous
jcrimes
7 years 9 months ago
Joe the further you move up the beach, the better the deals. i’m actually a big fan of the 60s through 90s stretch on collins. some nice buildings that aren’t troubled (vilasol/vilamur/vilazul) although it’s definitely more quiet up there compared to south beach. if you’re looking to buy in sobe and aren’t tied to the concept that you must have a water view, i think there’s about to be some great deals. cosmopolitan, montclair and meridian lofts are already showing some price weakness and this will become more pronounced in the next year. also some new stuff coming up in… Read more »
Anonymous
AJ
7 years 9 months ago
Biscayne Blvd is absolutely safe both day and night. You have to be as careful on B Blvd as you would be in any big city street. Starbucks on 30th st is doing good. There is continuous string of restaurants/shops on B Blvd all the way to Julia. There is always foot traffic at all times of the day and night. 2nd avenue is absolutely safe during the day. After 11 pm, you may use caution. But as more businesses open and more traffic, 2nd ave will be as good as any. The game changer would be the arrival of… Read more »
Anonymous
Kramer
7 years 9 months ago

Questioning Downtown

Met One

Saw a 2 bdrm 2 bath there last week on the 15th floor 1200 Sq feet with a pretty nice water view to the bay – nice balcony – nice finishes – but the pool area is small in comparison to others and the lobby and hallways are plain not exceptional – no pizazz here at all. The asking price was $486,ooo. Im not sure how deep the developers pockets are but I would guess considerable price declines over the next year or less.

Anonymous
Wild Bill
7 years 9 months ago

Downtown Miami, Park West and Pace Park are all very exciting. http://www.spotcrime.com/fl/miami

Anonymous
Kramer
7 years 9 months ago

Wild Bill

Wild Bill – did you say you work for the Chamber Of Commerce or The Miami Visitors Bureau?

Anonymous
Kramer
7 years 9 months ago

I guess he has never lived in a city before!

Anonymous
7 years 9 months ago

AJ said: “When you step out of your building, you want to be in the middle of everything. The only areas that offer such excitement is SOBE, Pace Park, Park West, Downtown and to a lesser extent Brickell.”

———–

Come on AJ, quit this Pace Park thing. Nobody in Miami has heard of it. It doesn’t register on the radar. The only people who know about it either live there or read this blog.

Anonymous
AJ
7 years 9 months ago
JL, You are one of the informed guys. You cant talk like that. In any case, how well people know a place is not a criteria for how nice it is. Sometimes the least known are the most top class. Until about a few years ago, No one ever even heard of Riverdale in NY. Even many long term New Yorkers. Even if they did hear the name, they have never even been there or seen it. Yet it is among the 5 most desirable places to live in NYC in all the boroughs put together. Exclusive, classy, low key… Read more »
Anonymous
7 years 9 months ago

Hugo P,
Enjoyed your post.
Here is my own real life example with easier numbers that I work out backwards.
I rent for $1650 (brand new 2/2 granite/marble 2 balconies…)
HOA is $750 and taxes work out at $600.
That means that $300 is the profit.
At 7.5% CAP = $48,000.

:-)
$48,000 / 1248 sqft = $38.50 sqft.
:-)

I’ve said it before, $75 sqft.

Why?
Because a lot of us would settle for slightly less than 4%.
(your HOA number and rental income was somewhat optimistic)

wpDiscuz

For Real Estate
Related Needs And Inquiries

please complete the form below

  • This field is for validation purposes and should be left unchanged.