Incredible Buy on a 1 Bedroom at The Grand – $299K

November 30, 2007 by Lucas Lechuga

The Grand 1040

I just came across a one bedroom/one bath listing at The Grand that looks to be incredibly well priced. It has 1,180 square feet of interior space. It is listed for $299,000, or $253 per square foot. There are a few other one bedrooms in the building that are listed for slightly less but none of them come even close to having the level of quality that was put into this unit.

The Grand

This is a perfect condo for somebody in search of a spacious one bedroom that is in impeccable condition for under $300K.  You won’t find this type of space in a one bedroom in most of the new buildings.

The Grand

Take a look at the MLS listing for more information and pictures. You can call me for additional details as well or if you’d like me to schedule you a showing.

The Grand

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34 Comments on "Incredible Buy on a 1 Bedroom at The Grand – $299K"


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Anonymous
RayRay
8 years 9 months ago

Beautiful unit. Any idea what the condo fees are?

Anonymous
8 years 9 months ago

Hi,

Personally I would wait untill the market gets more stable. This condo can look as a good deal today, but what about 6 months from now?
If the prices continue to go down you might be upside-down after maybe only 6 moths.

Anonymous
8 years 9 months ago

RayRay,
The listing doesn’t show but I think they’re around 50 cents per square foot at The Grand.

Anonymous
JM
8 years 9 months ago
How realistic is the rental price? Do 1BRs in this condo typically rent for $1700? Also, if I am doing the math right – never guaranteed – you’re saying the CC on this unit would be c.$600/mo. Why so high? Beautiful unit, by the way. It looks like it is priced to move, unlike 90% of the listings out there. For someone in the 28% tax bracket, this is one of the few rent vs. buy prices I’ve seen that passes the giggle test. Even more compelling if the super-exemption comes into play, and tax rates go up in the… Read more »
Anonymous
BB
8 years 9 months ago

Is there anything preventing someone from building a condo tower on the parcel just north of this building (where that little tiny building is located)?

Is it a historical building or does someone own the air rights above it? If not, it seems like that if someone put a new building there it could potentially destroy the view from that side of The Grand:

The Grand – Bird’s Eye View

Anonymous
BB
8 years 9 months ago

Never mind – I just looked it up, and it is on the register of historic places (Miami Woman’s Club). So the view is safe.

Anonymous
Paolo
8 years 9 months ago

is that a Corian countertop?

Anonymous
8 years 9 months ago

BB – Yep, it’s a historic building. That view won’t change unless some money is slipped under the table.

Paola – I never knew what a Corian countertop was until I Googled it. It looks like it may be a Corian countertop from the pictures of the unit. I’m showing the condo tomorrow so I’ll be sure to ask.

Anonymous
8 years 9 months ago
Ignacio – I think the new construction buildings are the ones that will come down the most in price. The older buildings, such as the one above, will come down a bit but not as you would expect. There’s a lot of speculative money behind the new condominium buildings. The older buildings are pretty safe. Almost all of the contracts that I’ve either written or received within the past 3 weeks have been in older buildings. There may be a few foreclosures in older buildings because people bought at the top and overextended themselves or they refinanced but nobody bought… Read more »
Anonymous
8 years 9 months ago
Ignacio what if you wait 6 months and the prices go up and you lost the opportunity? If you think like that whats to stop you in 6 months from thinking the same thing? Keep thinking like that so you can be negative the whole ride the market takes down and then when its over be negative that you dont own anything. If you are buying a condo for under replacement cost in theory you are getting a good deal, thats just basic economics, and I dont know of anyone that can make solid construction for under $200 a foot… Read more »
Anonymous
8 years 9 months ago

Ignacio what if you wait 6 months and the prices go up and you lost the opportunity?
_________________________________

LOL!

Anonymous
sbki
8 years 9 months ago

Why is the maintaince fee is so high in this building?

If I remember correctly the Grand was built by the same developer as Opera and Club at Brickell Bay.

Overall 299k seems really high for a unit that was fetching 160k 3 years ago.

Anonymous
8 years 9 months ago

It will be 160k again 3 years from now.

Anonymous
JM
8 years 9 months ago
Chris, I’m sorry. Your retort to Alejandro made me laugh. It’s not exactly as though potential buyers are sweating it over prices being higher in six months’ time. Al contrario. On the other hand, I doubt this unit will be $160K again ever. It wasn’t, by the way. The last recorded sale of this unit was for $221k in March 04. Since then, the owner has spent a small fortune on renovation. I would buy this in a NY minute at $160K. I know how much it costs psf to install premium wood floors and baseboards, and that kitchen did… Read more »
Anonymous
8 years 9 months ago

JM – I showed the unit yesterday afternoon. The listing has been withdrawn because a lease was just signed on the condo. I wanted to show it anyway because my clients were investors. I asked the listing agent about the countertops. He wasn’t sure what they were. They looked to be Corian, however.

Anonymous
JM
8 years 9 months ago

Lucas, what did it rent for? Also, did you get a handle on the carrying charges? Thanks.

Anonymous
8 years 9 months ago
$200 a foot times 1180 square feet is $236,000 if you bought it for $160,000 that would be buying at $135 a foot, that wouldbe ridiculous. Make all the fun of me you want Chris because in fact I hope you are right, if apartments like that go to 160K and the Euro which will keep gaining over the dollar goes to 1.60 to 1.70 EUR/USD I will have so much business i wont be able to handle the volume. Lucas if you find out what its rented for let us know so we can do a an NOI, IRR… Read more »
Anonymous
8 years 9 months ago

By the way Chris I just contradicted myself and made you look right because I actrually sat down and did the math. I guess financially it would make sense for this apartment to trade for $180,000 to $200,000

Anonymous
8 years 9 months ago

The unit rented for $1,595 per month.

Anonymous
8 years 9 months ago

Ouch $1595 that doesnt even cover the commision, property taxes and maintenance fees

Anonymous
sbki
8 years 9 months ago

rent of $1595 a month, this would not make sense as an investment at $300k… In my book that should be a buy at $159k and a pass over 190k

Anonymous
8 years 9 months ago

It should also be considered that this isnt a stable market, there is too many rentals right now so rents have gone down about 30% over the last year. I personally would buy anything on the spot that I could rent for monthlu 1% of the sale price meaning that if an apartment is 100K and it rents for 1,000 a month I would buy it without seeing it, unluckily I have never seen that over the past 8 years while ten years ago it was the rule of thumb

Anonymous
Antonio
8 years 9 months ago
I think the older buildings are going to do way better than the newer ones. I own in both an old building and a new one. The old buildings really have their act together, can easily reduce costs (maintenance has gone down almost $150/mo), and don’t have to worry about issues with the developer. Everything is working perfect, and the vast majority of the owners have been there for years. They pay on time, and they take care of the building. All the contracts are up to date, and the board has been in control for years. On the other… Read more »
Anonymous
8 years 9 months ago

Alejandro:

One question, why you mention the “risk Free T Bill ” into your calculations?

ps:
sorry if it’s a dumb question :)

Anonymous
8 years 9 months ago

Ignacio – He mentions risk-free T-bills to compare how his returns would be had he placed his money into risk-free T-Bills instead of paying cash for a property. Buying real estate is not a risk-free investment so your return should beat the return of investing in a risk-free T-bill.

Anonymous
8 years 9 months ago

Haaa,

I’m such a n00b :)

Good comparision and also an eye opener.

Anonymous
tom
8 years 9 months ago

Antonio,

I think a blog that tracked the problems at each of the new condos out there would be really informative… only who would report on it? The folks who are living with the problems have a vested interest in keeping that stuff away from the public. They are having a hard enough time trying to sell as it is.

That being said, I’d love to see it.

Anonymous
8 years 9 months ago

You will always find somebody who want to rant and vent the problems they find.

The real problem is who will do it, and how the would be poster will find it.

Maybe a good start is that site that somebody created to sell SF of his condo. I do not remember the url right now

Anonymous
JM
8 years 9 months ago

$1595/mo changes my view of the economics on this. I can’t see an investor buying. Certainly not this one. I feel sorry for the owner.

Anonymous
8 years 9 months ago

Jeez, I would buy it for $260k hands down, even with the tenant in there at $1595 a month.

Anonymous
JM
8 years 9 months ago

Then, Candela, assuming you are an investor, I have a condo you should buy. It’s for sale at $299k – same price, and priced aggressively low, rents for $1700+, and the maintenance is $258/mo. And it is not moving.

Lucas – I am not using your blog to advertise my condo. I am merely pointing out economics. An investor should prefer a unit that brings in $100-$150/mo more in rent, and costs +/- $340 less in maintenance.

Anonymous
8 years 9 months ago

WOW! What an amazing condo. What might the condo fees be?

Anonymous
Jean Stewart
8 years 9 months ago
FYI Everyone – This building is classified as a ‘Condo/Hotel’ property. Many of the units are rented out by the DoubleTree Grand Hotel which occupies the first 10 floors of the building. For this reason, all mortgage brokers classify it at a higher risk so you can expect to have to put down at least a 20% down payment AND you will pay a 2-3% higher interest rate over prime; even if you have PERFECT credit. This was before the August credit crunch so terms might even be tighter at this point. Many deals fall though at this building because… Read more »
Anonymous
Rollin Smith
7 years 10 months ago

I just had a deal fall through for the precise reason stated out by Jean Stewart.

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