Hey isn’t this the building that the developer said would be a “success”?
Did they scrap the condo and go rental?
Buyer Tom
Gosh, I wish I could own a unit there…..oh, wait, I think I can lease for less than half the cost of ownership. Silly me.
Sean
I wouldn’t even pay $1000 a month for a 2 bedroom at that horrible building. The units at Bay Parc Plaza which right next store are nicer, bigger and cheaper and the building is 9 years old!
Julian
Buyer Tom – exactly – when the math don’t work…just looking at the listings – 2 beds at $500k (well I presume that’s stale pricing…). So as a Landlord So I pay $12,500 tax and probably $6000 HOA. But the 2 beds rent for $24k a year. Hmm, so my gross yield (before funding) is 1.1%. Assume I am cash buyer. My cost of capital is 5%. So I would have to assume, what, 4.1% perpetual growth in the asset value for it to breakeven. Make the 2 bed cost me $300k and the math works if I assume half… Read more »
Wild Bill
The developer won’t evict his own rental tenants for selling drugs, noise violations, dog waste, throwing stuff off the balcony because they will lose monthly rent. These new rental condos will be like a fraternity house on steroids. Sign me up!
Mr Waverly
The Midtown properties took it a step further and are offering “rent to own”. They will credit the first years rent towards purchase. I wonder if you have to make a commitment to buy when signing the lease. The current prices Opera Tower is offering will have to drop, my estimate 20% off those advertised. Soon you will see FIRST MONTH FREE and MOVE IN WITH ONLY $500 SECURITY. Unfortunately for owners (I am one) Tenants do not always respect the properties like the owner. That sometimes means additional cost for upkeep passed onto the owners and less value for… Read more »
I went inside the building and units. They do look horrible. This is clearly not a luxury building, but looks more like a cheap rental place. I think that the rental prices are fine, and they should rent quickly to many students and regular working people. The building has a plus that is on the bay, with some amazing views, but has a strong negative point on its location, just 2 blooks form there you are in the getto, the area needs maybe some 10 more years until it looks safe and nice. It also far away (not walking distance… Read more »
brian
Jan 29, 2008, Miami Herald:
“Hollo deemed Opera Tower a success, with the entire project sold out. “
DV
Those rental prices are too high as well. You can rent 2 bedrooms in new buildings in brickell for $1800 a month and I’ve seen quite a few 2 bedrooms in Quantum and 1800 club for less than $2000 a month as well.
Raffi
Julian,
I’ve never seen someone complicate math so much to get to the conclusion that the units are WAY overpriced. No need for fancy math here, that building is crap and prices are going to have to come down everywhere, especially at crapo tower.
p.s.- I agree with your math by the way.
Julian
Raffi – ha ha. Can’t help it, my profession in the equities world brought to the blog…!
Juan
Anyone has any idea how many closings have been in the building???
LOL. Exhibit A.
Hey isn’t this the building that the developer said would be a “success”?
Did they scrap the condo and go rental?
Gosh, I wish I could own a unit there…..oh, wait, I think I can lease for less than half the cost of ownership. Silly me.
I wouldn’t even pay $1000 a month for a 2 bedroom at that horrible building. The units at Bay Parc Plaza which right next store are nicer, bigger and cheaper and the building is 9 years old!
Buyer Tom – exactly – when the math don’t work…just looking at the listings – 2 beds at $500k (well I presume that’s stale pricing…). So as a Landlord So I pay $12,500 tax and probably $6000 HOA. But the 2 beds rent for $24k a year. Hmm, so my gross yield (before funding) is 1.1%. Assume I am cash buyer. My cost of capital is 5%. So I would have to assume, what, 4.1% perpetual growth in the asset value for it to breakeven. Make the 2 bed cost me $300k and the math works if I assume half… Read more »
The developer won’t evict his own rental tenants for selling drugs, noise violations, dog waste, throwing stuff off the balcony because they will lose monthly rent. These new rental condos will be like a fraternity house on steroids. Sign me up!
The Midtown properties took it a step further and are offering “rent to own”. They will credit the first years rent towards purchase. I wonder if you have to make a commitment to buy when signing the lease. The current prices Opera Tower is offering will have to drop, my estimate 20% off those advertised. Soon you will see FIRST MONTH FREE and MOVE IN WITH ONLY $500 SECURITY. Unfortunately for owners (I am one) Tenants do not always respect the properties like the owner. That sometimes means additional cost for upkeep passed onto the owners and less value for… Read more »
I went inside the building and units. They do look horrible. This is clearly not a luxury building, but looks more like a cheap rental place. I think that the rental prices are fine, and they should rent quickly to many students and regular working people. The building has a plus that is on the bay, with some amazing views, but has a strong negative point on its location, just 2 blooks form there you are in the getto, the area needs maybe some 10 more years until it looks safe and nice. It also far away (not walking distance… Read more »
Jan 29, 2008, Miami Herald:
“Hollo deemed Opera Tower a success, with the entire project sold out. “
Those rental prices are too high as well. You can rent 2 bedrooms in new buildings in brickell for $1800 a month and I’ve seen quite a few 2 bedrooms in Quantum and 1800 club for less than $2000 a month as well.
Julian,
I’ve never seen someone complicate math so much to get to the conclusion that the units are WAY overpriced. No need for fancy math here, that building is crap and prices are going to have to come down everywhere, especially at crapo tower.
p.s.- I agree with your math by the way.
Raffi – ha ha. Can’t help it, my profession in the equities world brought to the blog…!
Anyone has any idea how many closings have been in the building???
I can see this will be an 90% rental building