Top 5 Miami Distressed Condo Sales Closed in September 2008

October 28, 2008 by Lucas Lechuga

I found a total of 25 distressed condo sales that closed in the month of September in the MLS located in Brickell, Brickell Key, Downtown Miami and the Arts District.  The following are, in my opinion, the five best deals that took place.  This will hopefully give everyone a sense for where prices are for similar units in these buildings and neighborhoods.  This is not an indication of where prices may or may not ultimately settle.

  1. Jade at Brickell – unit 1706 – 1 bedroom/1 bath (895 square feet) – This unit sold for $215,000, or $240 per square foot, on September 5, 2008.  Foreclosure
  2. Blue Condominium – unit 3101 – 2 bedroom/2.5 bath (1,651 square feet) – This unit sold for $385,000, or $233 per square foot, on September 16, 2008.  Short-sale
  3. Neo Vertika – unit 3119 – 2 bedroom + den/2 bath (1,255 square feet) – This unit sold for $225,000, or $179 per square foot, on September 5, 2008.  Foreclosure
  4. Vue at Brickell – unit 2204 – 2 bedroom/2 bath (1,023 square feet) – This unit sold for $173,000, or $169 per square foot, on September 16, 2008.  Foreclosure
  5. Parc Lofts – unit 208 – 1 bedroom/1 bath (1,255 square feet) – This unit sold for $220,000, or $174 per square foot, on September 9, 2008.  Foreclosure

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307 Comments on "Top 5 Miami Distressed Condo Sales Closed in September 2008"


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Anonymous
jcrimes
7 years 10 months ago

the parclofts price is amazing. always was a big fan of that building. really is one of the good looking projects down here. prices there, however, make absolutely no sense when considering the hood (no AJ, regardless of what you say about pace park, you cannot walk around the parclofts neighborhood w/o seriously risking your life).

this does not bode well for those people that hold contracts at filling station. that could get REAL UGLY!

Anonymous
JoeL
7 years 10 months ago
Lucas, This is my opinion of your great deals. -Jade Unit I would consider a good deal. -Blue – not a favorite of mine, if you follow this building you will know why, plus very high maintenance fees. Also take into consideration that the unit was sold in September, which means that they were under contract either late July or early August. Alot has happened since – we are in a different World now. -Lucas $169/sqft for Vue at Brickell, I wouldn’t classify that as a great deal. As a matter of fact there have been other units that have… Read more »
Anonymous
Angel
7 years 10 months ago
I agree with JCRIMES. Parc Lofts is one of the nicer more original industrial loft developments in Miami. I went to go check out a few of these units last year and then I saw the neighboorhood. That killed the deal for me on the spot. It’s not like Park West which I will dare walk through at night and often do on the weekends when I go out in that area. The area where the Parc Lofts is located is in the middle of the hood. Much gentrification still needs to happen in that area before people start moving… Read more »
Anonymous
7 years 10 months ago

JoeL,

I’m not saying that these are the 5 best deals of the year. In my opinion, they are the 5 best deals of the 25 that closed through the MLS in the month of September. In November, I will write a post for those that closed in October and so forth and so forth so we can see how prices for these distressed sales are going.

Anonymous
Brad
7 years 10 months ago

To judge if these are in fact “good deals,” you need to look at the current state of the each’s condo association and the maintenance fees tacked onto these units. Is the Jade at $215k such a good deal if your fees are $700+ per month and face a real risk of a crippling special assessment at any given time?

Parc Lofts’ association probably has the most stable financials.

Anonymous
carbonblackcab
7 years 10 months ago

I am surprised that Jade condo commands such a premium over others. There is no view from the Jade condo. I know Juan Pablo Montoya has a condo there, but why is there a premium for jade?

Anonymous
7 years 10 months ago

Lucas, Good stuff. I think specific transaction examples like these (done every month) give a better gauge of the market than broad inventory surveys when very little of the overall supply is trading.

Anonymous
7 years 10 months ago

Lucas,
thx for the post.

Anonymous
AJ
7 years 10 months ago

Lucas,
One of the best posts ever. Please keep doing this on a monthly basis along with your condo closing statistics.
Jcrimes,
Parc lofts location will be good in 2-3 years from now. After the NE 2nd ave gets revamped and the Bayview Market gets functional in a couple of years it will be gold.
I think $174.sf for a 1/1 on the 2nd floor is a not a sell out at all.

Anonymous
Kyle
7 years 10 months ago
I am deeply offended by the racist comments being made on this site.. one of you bumbling idiots said that “much gentrification” has to take place before the area around parc loft is safe. Lucas, I can not believe that you allow this type of racist and ignorant commentary on your blog. It’s an outrage how everyone else just follows along and doesnt see this as offensive. I’ve spent a lot of time around there at night, I often go to Circa 28 a couple blocks over, I go to Target at Midtown, I go running at the park around… Read more »
Anonymous
7 years 10 months ago

Are there any Segafredo type places or OK bars/clubs/restaurants with liquor licenses within walking distance to Pace Park?

Anonymous
7 years 10 months ago

Sorry, slightly off topic, does anybody know if a 2 year rental agreement normally carries a 2 month rent commission or does it stay at the usual 1 month?

Anonymous
JOHN
7 years 10 months ago

Stay away from the area around parc loft. It is GHETTO war zone!!

Anonymous
la la
7 years 10 months ago
Monday night I was driving north on Brickell at the height of rush hour and I caught the Brickell Bridge going up- yes, I would agree it’s stupid to raise it during peak traffic hours. But, I think it’s a big exaggeration to say traffic was at a standstill for a long time. I probably waited tops 5 minutes before we moved. Was it annoying? Yes. Annoying to the point where I would complain to someone? No. I just got to send a few texts safely while I waited. I’ve always said they should do the bridges here like they… Read more »
Anonymous
Miami2009
7 years 10 months ago

Great info Lucas. Would definitely like to see more of this on a monthly basis.

Anonymous
Angel
7 years 10 months ago
Kyle, Sorry if you are offended but Parc Lofts is in the ghetto. Its is not like Q and1800 in the Pace Park area. If you think the few blocks surrounding Parc Lofts are safe you are crazy, again this area is not Pace Park. The area is currently undergoing gentrification. Like it or not it’s happening. There are various definitions of gentrification so it is not necessarily a bad thing. How that was a racist statement is beyond me. Here is one defintion of gentrification for your edicifation. I personally jog at Pace Park and hang out in Park… Read more »
Anonymous
Generalmagic
7 years 10 months ago

JL,

It is my understanding that Florida leases are only legally valid for one year. One should pay commissions on that one year and when the second year is signed, the second commission should be paid at that time.

Anonymous
UENYC
7 years 10 months ago

Looking to invest in Miami…On these examples (and others similar) is EVERYONE at risk for assessments in each building? What happens if the condo building is only 25% full? How does the building afford to keep up if only a few are paying maintenance? Can they elect to raise monthly maintenance fees? Are there condo’s the prohibit that activity or have strong cash backing? Looking for some background as I see these look on paper like good deals, but not sure what kind of money pitt they could become..thanks

Anonymous
Renter Tom
7 years 10 months ago
UENYC – You highlighted the risks of owning an illiquid asset that is expensive to hold and almost powerless against increasingly being taxed (by govt, by HOA). It is a real risk in this environment that one’s financial analysis needs to take into account at the time of purchase. Those amenities need to be paid for and deferred maintenance can only be deferred for so long and then it starts to bring down property values. Also, most renters, not me of course, do not treat a property like an owner and so you should also look at the rental policy… Read more »
Anonymous
Hugo P
7 years 10 months ago
Lucas, EXCELLENT post. Like many people have said, this is the best information to have. Even though these distressed sales might not really reflect exactly what the market will be, they certainly give you a better indication of where prices are heading. I understand that banks have an incentive to offload these units quickly so that they don’t carry the taxes and HOA fees, but with the recent developments in the financial markets you have to assume that things will get worse and not better. On the Parc Lofts comment… I agree with jcrimes and Angel. Probably the only true… Read more »
Anonymous
7 years 10 months ago
Kyle /Oct 28, 2008 at 11:19 pm Vote: “I am deeply offended by the racist comments being made on this site.. one of you bumbling idiots said that “much gentrification” has to take place before the area around parc loft is safe. Lucas, I can not believe that you allow this type of racist and ignorant commentary on your blog. It’s an outrage how everyone else just follows along and doesnt see this as offensive. I’ve spent a lot of time around there at night, I often go to Circa 28 a couple blocks over, I go to Target at… Read more »
Anonymous
jcrimes
7 years 10 months ago
la la i called it a condo canyon with a parking lot in the middle. and if you don’t think it will be that in a few years with all the buildings going up, well, you’re in for a rude awakening if you’re a commuter. as for the pedestrian friendly element, i’ll just disagree with your assessment and leave it at that. also, the time for the bridge solely depends on how much boat traffic is coming through. you were lucky…it was only a few minutes. i can tell you that i’ve sat at that bridge for twenty minutes at… Read more »
Anonymous
Hugo P
7 years 10 months ago
On another note… I heard a speach from Paul Volcker yesterday in ULI’s Fall meeting in Miami Beach. Without getting into any specifics of what he said (Consumption is at an all time high at 72% of GDP when the historic average was 62%, Savings got to 0% of GDP compared to 8-10% average, etc.), he believes we have a 2-3 year recession in our hands for things to get back to “normal” and that the only way we can get out of this is by people recovering their trusts in financial institutions which will take some time. The bailout… Read more »
Anonymous
Raffi
7 years 10 months ago
somebody asked why Jade has a premium over other buildings. for one its the nicest building in brickell, quality wise and location wise, its right on the water and if you have a view of the bay it will never be blocked. most buildings in brickell are holes with too many units in the buiding and lots of problems. jade is the only “luxury” building i think. It had lots of fraud problems and thats why prices got out of hand but in the long run it will be the best residential building in brickell. $240 sq/ft in that building… Read more »
Anonymous
UENYC
7 years 10 months ago

What type of rents are people getting in these nice buildings…say a one bedroom with semi water view? You have to go through an agency or does the building management help out? Thanks

Anonymous
WHO KNOW'S
7 years 10 months ago

DOES ANYBODY ELSE SEE $ 125 a sq. ft. in MIAMI????I think it’s coming sooner than later.

Anonymous
Arlyz Morales
7 years 10 months ago

Last lowest sale @ Jade was unit 211 1/2 for $190,000 , 1293sqft = $150,73 per sqft. Is crazy!!!!!! This sale was reported on 8/12/08

Anonymous
Raffi
7 years 10 months ago
you guys know why i dont think prices will get to $125 sq/ft? because with all this money the govt. is pumping out we are going to have some serious inflation in the next 2-3yrs. that $125 will be $300. so if you have cash its going to get burned by inflation, thats why I for one am getting rid of most of my cash and buying hard assets. Renter Tom if you are saving and saving I hope you are not keeping it as cash in the bank. I have had many conversations with people and everyone agrees that… Read more »
Anonymous
Renter Tom
7 years 10 months ago
Hugo P – I have to agree with Volker but would add that the consumption level was driven by debt and hence the savings rate was negative and the current savings that people are doing are mostly, on net, just going to pay off debt and is not actual savings per se. Moreover, we are transferring debt incurred by individuals to the govt which will have negative effects for decades. Top that with even larger govt spending (which will off set some of the consumption spending drop off) and deficits never before seen, the country must must must cut the… Read more »
Anonymous
Renter Tom
7 years 10 months ago

Raffi – I am monitoring the inflation possibility and am moving cash around accordingly. As I just posted, low interest rates will cause cash to go somewhere else esp. once this short term scare is over with. There are deflation factors too so over the next 12 months inflation should not be a factor but after that it may very will come home to roost.

Anonymous
Renter Tom
7 years 10 months ago

Raffi – Oh, and if inflation comes, it will not be the friend of many people. Real estate taxes will rise and to will HOA fees. You may be able to inflate your way out of low fixed rate mortgage but the other holding costs will dog you.

Anonymous
Raffi
7 years 10 months ago

Renter Tom, I agree but “if inflation comes” should be “when inflation comes” its going to come fast and furious and whoever is holding cash is going to get burned like its happened in many other countries around the world, perfect example, Argentina. I believe the govt. is creating this inflation on purpose to get rid of the debt burden that they have which is impossible to pay back. everything will go back to zero, put it in writing cause i guarantee it.

Anonymous
Renter Tom
7 years 10 months ago

Raffi – Keep us posted on the inflation watch…I know I will be watching that too….it is a concern for me for sure and am staying ahead of the curve. At this time I am reeveluating cash holdings……

Anonymous
Renter Tom
7 years 10 months ago

CD’s have been opened not more than 12 months out…..anything more was too much risk at too low a rate. Some OK 6-12 months CD’s are out there, but to go long in this environment is probably unwise given the level of uncertainty.

Anonymous
Kramer
7 years 10 months ago

Hoa Fees?

Anonymous
Renter Tom
7 years 10 months ago

Hoa Fees = Condo Home Owner Association dues, special assessments, etc.

Anonymous
Kramer
7 years 10 months ago

$800. per month HOA fees on lets say a two bedroom new condo are no more per month than you would pay if you owned a single family home with a yard and a swimming pool in Surfside-Morningside-Roads Area-Coconut Grove-Coral Gables. This high HOA fee argument is a false argument.

Anonymous
Kramer
7 years 10 months ago

Except for Jade- the other four examples are ininferior buildings in inferior locations.

Anonymous
Hugo P
7 years 10 months ago

Kramer… are you saying that just because $800 is what it costs to operate a single family home then it should be OK for a condo?

Damn… that’s some good Kool Aid!

That is precisely one of the advantages of living in a condo… shared ammenities = shared (and lower) expenses

Anonymous
djr
7 years 10 months ago

That weasel Mark is sneaking back in with different names this week.

JOHN /Oct 29, 2008 at 12:22 am
Stay away from the area around parc loft. It is GHETTO war zone!!

WHO KNOW’S /Oct 29, 2008 at 10:07 am
DOES ANYBODY ELSE SEE $ 125 a sq. ft. in MIAMI????I think it’s coming sooner than later.

The posts look exactly like his previous posts including the calligraphy.

Anonymous
Kramer
7 years 10 months ago

Thats not what I am saying. Everyone here is arguing that $800. per month will drain you as if the same single family owner is not paying the same amount per month. My burden is no more than his. And from a safety point of view- my apartment on the 35th floor is never going to be broken into and robbed and during hurricane and floods my car wont ever be under water like a single family owners car will.

Anonymous
WHO KNOW'S
7 years 10 months ago

WAIT TILL OBAMA GET’S IN……..PROB. GO DOWN TO $99 a SQ. FT.What do you think djr?????

Anonymous
djr
7 years 10 months ago

Mind you ,I have to agree with MARK or whatever his name is this week. Prices could drop to a new low, and $125 is not out of sight at all.

Anonymous
7 years 10 months ago
Kramer, You observations on Jade are appreciated. Your logic on HOAs is faulty. As homeowners go into foreclosure, special assessments are a real possibility. An assessment of 8-10K shoots the monthly HOA by $277 if spread out over 3 years or less. On your comment on safety. There is truth to what you say. However, since I’ve lived here for 40 years+ I can guarantee you that if a CAT5 comes around I do not want to be on the 35th floor. That day or for a couple of weeks (or much longer.) As far as floods, yes many will… Read more »
Anonymous
jcrimes
7 years 10 months ago

Raffi
come on…we won’t be seeing the argentinean inflation model here.

Anonymous
jcrimes
7 years 10 months ago

djr
maybe so….but whoever wrote the statement about the neighborhood surrounding parclofts, he/she is right.

Anonymous
Raffi
7 years 10 months ago
jcrimes, I’m not saying to that extent but its going to happen. the only reason our dollar is gaining strength right now is because everyone is scared and running to the dollar. once the nerves calm down a bit and people start to really notice how much money has been pumped these last few months reality will start to sink in. on top of the war they have approved about 1 trillion dollars and that doesn’t include any existing deficits that we have on a monthly basis. and when that socialist becomes elected and decides to pump up more spending… Read more »
Anonymous
curious
7 years 10 months ago

posted this elsewhere, but seeing as how this is the most recent:
Just curious: What opinion do you have on the attorneys who help their clients receive a percentage (higher than 5%) of their deposits back?

Anonymous
djr
7 years 10 months ago

That SOB Mark is using my name on post #43. That is not my post.

Kramer, $800/month expenses to run a single family home looks steep. I could run a pool home for $300/month excluding utilities and taxes (HOA excludes utilities and taxes too).

Anonymous
RODNEY KING
7 years 10 months ago

There is a lot of SPECULATION on here that prices are going to DROP below $125 a Sq. Ft.What do you think Renter Tom j crimes ACE djr Mr. Waverly???Anyone hear from MARK (not Zilbert) lately??

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