Developer Blowout at The Plaza on Brickell
June 5, 2010 by Lucas Lechuga
In this video segment, we discuss the developer blowout sale at The Plaza on Brickell that was announced Thursday afternoon. I received word just 24 hours later that 16 units had already been placed under contract. This is now the best deal in Brickell but availability won't last long. Later in the video, we also discuss the uptick in luxury condo sales in 2010. We end the show with a picture slideshow of Penthouse A at Apogee South Beach which came onto the market last month with an asking price of $16M.
I have an acquaintance who does research on the housing market in South Florida with Oppenheimer. He feels there will be a new spurt of pressured sales and walkaways from luxury properties by recent high end Europeans buyers, as the Euro has lost 40 percent of it’s value in a very short period of time causing a cash crunch for these buyers, effectively paying 40 percent more in taxes, monthly maintanance, and purchase price. He also states that many Europeans were able to get loans from banks with improper documentation. He cites Canadians (as one example) who are receiving large… Read more »
Does it mean that we can get loans from Canadian banks?
Lucas, re: Plaza at Brickell prices reduced – It’s about time. I dealt with them before I bought my place at Infiinty, but they would not reduce their prices enough for it to buy there. Also, they wanted me to buy the condo for more (like 10K -15K) then the purchase price and they would give me the money back at closing. I guess they wanted to keep up the apprisals or something for the building. It was just too strange with a strange charges on the HUD statement. I did not want to buy a place like that. But… Read more »
Lucas,
are you able to anwswer my question?
Question: You said that they (Plaza) are selling a 1 bed for 165K, please tell me what floor is that unit is on, and what is its sf and want does it view? Thanks
owneratinfinity,
That unit is located on the 3rd floor and has 739 square feet. As of this morning, only 7 units were still available.
iphoneapi While the Euro slide is significant it is nowhere near 40% versus the USD. The number is under but close to 20% looking at 09′ highs/closes. Also many of the European investors are receiving rental income in USD ,so , to a degree, a currency hedge against the lower Euro. Not everybody sublets but this exchange ratio may make that attractive to Europeans going forward who find dollar denominated HOA/taxes too burdensome. I also wonder how high a % of the luxury market the European’s represent in Greater Miami. Guessing its single digit.
Seanjohn – You are correct that the European that bought when the Euro was strong against the US $ and now either sells or rents in US $ will be better off then the pure US $ losers. But then again, I have always said that the currency exchange issue is separate from the purchase decision (you can always just play directly in the currency market without the falling price real estate risk). However, for someone who had already purchased (sunk cost) perhaps they can make it less worse now… Regardless, enthusiasm for real estate is not high…the summer months… Read more »
If anyone is interested in the naked bike ride event, please read on. Here is nudity with a purpose. Alex (MUL) has invited you to the event ‘Miami World Naked Bike Ride’ on MIAMIurbanlife.com! Show your support! NUDITY is optional! lol Time: June 12, 2010 from 4:30pm to 7:30pm Location: Starts at Freedom Tower in Downtown Organized By: Miss Susy & Miriam Cruz Event Description: This is Miami’s first…. World Naked Bike Ride. It is the labor of love of a few hardcore individuals who believe that Now is the time to stand up for the environment and the health… Read more »
Renter Tom- Agree, currency trade is a seperate issue although I do feel that there is a flight to safety currency factor among some South American buyers in South Florida even during the frothy days of 04/05′. Re your comments for the whole market, my thoughts are that the R.E. market is plodding along, stuff is clearing, dips will be the norm, a return to steady annual value appreciations? Not a chance. However is there a slow uneven absorbtion of supply? Yes. Credit is still a problem. Most buyers are cash still but that also bodes well on the flip… Read more »
According to Condo Vultures: “Miami Beach Property Values Tumble 12% In 2009 Property values for existing real estate product located in the barrier island city of Miami Beach tumbled nearly 12 percent, or $2.9 billion, on a year-over-year basis in 2009, according to a new report from CondoVultures.com. Existing real estate product in the city of Miami Beach is now assessed at $21.9 billion, down from $24.8 billion in 2008, according to the report based on the latest projected values from the Miami-Dade County Property Appraiser. The proposed values – which still need to be finalized and do not include… Read more »
I read an article today that BP oil spill will reach Miami beaches in 20 days. A lot depends on the winds written in the story. This situation worries me a lot. If in fact it happens I think it will have devastating consequesces to Maimi economy and real estate values. Your opinions?
RT If you look at that % drop for MB , 2008 versus 2009 I think that IS an example of MB holding up better than anywhere else in related markets. Also, for the most part, current sales are driven by values tumbling over the last two years. The definition of what makes an investor paradise isn’t making 07 buyers positive on their mortgages. I also think South Beach has seen upticks in values & closings on the troubled West Ave corridor in 2010 over 2009.
Renter Tom, What on earth does the assessed property value have to do with anything. The ACTUAL value of property was dropping faster than the assessed value which is why so many people were complaing. The assessed value is just now trying to catch up to all those losses. From the very same article you posted: “It is important to remember that these estimates are backward looking and do not necessarily reflect today’s real market values.” “- Miami Beach should have held up better than anything else really, so this is just indicative of what is going on in the… Read more »
Lara Agree The slick is a potentially dangerous issue for MB. In general, to overseas buyers to whom Florida is Florida the fallout from the spill just on the Gulf Coast is enough to temper some buyers enthusiasm for starters. Overall this could be very bad for Miami & the whole state even if oil doesn’t hit the beach. Hoping I’m wrong but this is bad.
gixxer, agree the numbers are not current since they refer to assessed values. they just confirm significant decrease has occurred over the past couple of years. but our state and local governments are now facing severe budget shortfalls do to the lossees of this revenue stream-does not bode well for the future of many communities with respect to government services. lara and seanjohn, i have posted the same question. if oil begins to wash onto our shorelines this year-and if this carries on intermittenly over several years, how will it affect oceanfront property values? the entire oceanfront state of florida… Read more »
Gixxer 1000 said: “If anything this simply makes it a better investment because there are now less taxes to pay.”
— Um, really? Most So. Fla. municipalities that have cut assessed value are simply jacking up the tax rate to make up for the difference. People wouldn’t be so angry about property taxes if their tax bills were going DOWN. You seem to be good at crunching numbers, but a little deficient when it comes to making common-sense analysis thereof.
the euro is headed to 1-1 with the dollar so unless they pay cash, they could have some issues
the oil will be churning around florida for 5 years >>>
if the loop current takes to the east coast …. ???
euro went down and some buyers had issues ??/
when the dollar loses half its value in a few years how will that it effect
m b real estate market ??