Bulk Condo Opportunity in Brickell

June 27, 2009 by Lucas Lechuga

On June 9th, I wrote about 53 condo units in a newly completed Downtown Miami condo high-rise that were heavily discounted.  Those 53 condos all went under contract within 2 weeks.  That opportunity has passed but I am now aware of a new opportunity.  This time the development is located in Brickell.  I’m looking for investors with $10M or more in capital with an interest in acquiring bulk condos in Miami.  Contact me at 305-428-3860 for more information.

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127 Comments on "Bulk Condo Opportunity in Brickell"


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Anonymous
AJ
7 years 3 months ago

Wow! Do we ever get to find out which downtown building that is? So some bulk buyer must have picked all of them up even before individuals could organize themselves into a group. People are sensing opportunity here?

Anonymous
Joe
7 years 3 months ago

I bet half these deals are just paperwork shuffles from one LLC to a related LLC (or the like) to make it look like there’s more action than there really is.

If there’s so much demand at reduced prices — and if I recall the last thread, it wasn’t even clear the price was that great — then why wouldn’t the developer just put them on the market at those prices?

Maybe it’s just me, but “hold, hold, hold … fire sale!” seems like a strange way to do business.

Anonymous
7 years 3 months ago

Last Opportunity let me guess

Seller: Jorge Perez

Buyer: Jorge Perez dba I Need Buyers for My Brickell Condos llc

???

Anonymous
Joey Myers
7 years 3 months ago

AJ why not put up 10 million and find out for yourself?? You ca afford it.

Anonymous
Lara
7 years 3 months ago
Joe, I think you are wrong. Those prices were attractive for 2nd home buyers and some were relatively attractive for investors. So I am not surprised that they were bought within 2 weeks mainly by out of state and foreign buyers. Why did it take 2 weeks? Some of them actually took their time to fly in and look at the units. Why seller did not put them on MLS? the seller made prices attractive enough for bulk buyers (5 aprt. at a time to buy them). Easier to deal with. I think if step by step all remaining units… Read more »
Anonymous
Renter Tom
7 years 3 months ago
We will see if these types of deals do much good. We are in a multi-year (possibly decade long) supply shock coupled with demand destruction and a shadow inventory of new construction, foreclosures, REO’s, and homes not put on the market or taken off the market. When you consider financing such a purchase for condos or any home in the jumbo+ range it just makes it worse. Anyone that tells you the South Florida market will turn around quickly is nuts…. I have heard the “opportunity” song and dance more than once…..without a concrete plan to generate cash flows, these… Read more »
Anonymous
7 years 3 months ago
World Wealth Report….always an interesting read. So much for the wealthy being able to withstand the market….25% of Ultra-HNWI (UHNWI) are now just Very-HNWI (VHNWI or mid-tier millionaires). Click my name for the pdf link…. ——————— “HNWI POPULATION AND WEALTH CONTRACT SIGNIFICANTLY Attheendof2008,theworld’spopulationofhighnetworthindividuals(HNWIs • 1)wasdown14.9%fromtheyear before,whiletheirwealthhaddropped19.5%. The unprecedented declines wiped out two robust years of growth in 2006 and 2007, reducing both the HNWI population and its wealth to below levels seen at the close of 2005. • Ultra-HNWIs2sufferedmoreextensivelossesinfinancialwealththantheHNWIpopulationasawhole. The Ultra-HNWI population fell 24.6%, as the group’s wealth dropped 23.9%, pushing many down into the ‘mid-tier millionaire’3 pool. TheglobalHNWIpopulationisstillconcentrated,buttheranksareshifting. •… Read more »
Anonymous
Kramer
7 years 3 months ago
I hate to say that I agree with rentertom but I agree with rentertom. The economy is not sprouting green shoots. Those shoots are turning into brown weeds. Im having a hard time believing that a bulk buyer paid about $200. per sq ft on average for 50 some units at 1060 Brickell. A second tier building nowhere near the water and then claim that they are cash flow positive. NOT. A one bedroom new building condo can now be had for $1300. per month. The owners nut is per month approx. $500. property tax – $500. HOA. Next figure… Read more »
Anonymous
Kramer
7 years 3 months ago

MIAMI DADE COURT
DISCOVERS 15,000. UNSERVED FORECLOSURES – DBR

” A Miami Dade Circuit Court judge discovered a bombshell of mammoth proportions – more than 15,000. foreclosure cases filed this year have not been served. It’s the latest shoe to drop in a foreclosure crisis garnering nationwide attention, and an unwelcome discovery in the face of state budget cuts that produced layoffs for courts and clerks. The backlog is critical because cases where homeowners havent been served within four months are subject to dismissal”.

Anonymous
Kramer
7 years 3 months ago

Peninsula Condominium in Aventura is the first Miami Dade to document Chinese Drywall.

Anonymous
Kramer
7 years 3 months ago

CITIGROUP HALTS SOME MORTGAGE APPLICATIONS – dbr

“Citigroup suspended loan applications at a unit that produced half of its $115 billion in mortgages last year after a review found that some property appraisals and income verification documents were missing. The correspondent division, which buys loans from banks and independent mortgage firms, stopped accepting new loans Tuesday afternoon and will restart July 6, 2009 Citi said in a letter to clients. The New York based company said it will use the time to change procedures and fix the omissions”.

Anonymous
Donzi
7 years 3 months ago
I suspect we will see higher and higher interest rates as US Debt and Deficits continue to grow exponentially. Add on increased cost for so called “Green Electric Generation” coupled with rapidly increasing rates of real estate taxation and you have a perfect storm for the real possibility of continued downward pressure on prices. As icicing on the cake hurricane season is fast approaching and insurance companies continue to charge more for less coverage. Hard for me to make any kind of positive case for a return to the good old days in my lifetime. Pays to rent and not… Read more »
Anonymous
Renter Tom
7 years 3 months ago

Donzi — The doom and gloom are real. If you can buy something for less than the cost to build in a stable area/building, then it might make sense…and I am assuming no cost for the land in the price. That is, if you can buy for less than the cost of the structure with no cost for land, can’t be all bad though.

Anonymous
gables
7 years 3 months ago
Japan suffered through years of collapsed RE prices. I never thought it could/would happen here. But enough time has passed in this crisis to indicate this is a very real possibility. I have a sinking feeling at the end of each year people will say, we are at the bottom so i might as well buy, and the bottom still sinks-slowly. You dont realize you are in quicksand until well after it has undermined your mobility. we are so accustomed to a rapid paced society where outcomes are evident within weeks, that we may be completely unaware of this secular… Read more »
Anonymous
Petronius
7 years 3 months ago
Seems very much like the Japanese scenario so far, even to the point of the magnitude of price drops in some markets being 60% (I believe that was the peak to trough decline in Japanese cities beyond central Tokyo). The nominal price levels reached during the peak of the bubble won’t be reached again for years to come. And in real terms, those who bought at the peak of the bubble have locked in their loss until a bubble of similar magnitude inflates again (if ever). Nominal prices could appreciate faster than in Japan depending on the future path of… Read more »
Anonymous
Joe
7 years 3 months ago
gables — All of the angst aside, unless my math is bad, people still should be better off today than they were in 2000. The scary question is, will people be better off in 2015 than they are in 2009, and I have to tell you, I’m not optimistic, especially the way Obama is spending money. — Lara — I have to disagree with you. I just don’t see how 50 or 100 empty units that sat unsold for a year at price “x” suddenly became great investments at price “x minus __%”, where __% didn’t seem to be such… Read more »
Anonymous
Joe
7 years 3 months ago
RT, gables, Petronius, et al. — I agree with your comments above. Quite frankly, I believe the current downturn will look like nothing compared to the inevitable day of financial reckoning that awaits the U.S. As far as I can tell, none of the underlying issues that led to this recession and overall crisis have been addressed let alone solved. The federal and state governments are spending more and more money, the average American is in debt up to his or her ears, unemployment is trending higher, and job creation not only has stagnated but declined because of left-wing tax… Read more »
Anonymous
Renter Tom
7 years 3 months ago
Joe – I have to agree. I have said that what the government is doing is like a credit bubble shell game and simply shifting the debt burden from individuals to everyone. That is a mistake. The system we have allows people to fail and those that were prudent and planned can continue and succeed. Now, with massive govt spending that is crazy, the debt burden is no imposed on everyone regardless of the past actions. We’re all being punished…including the prudent and future generations. The madness must end. I can’t imagine the obligations we have in the next 10-20… Read more »
Anonymous
gables
7 years 3 months ago
Joe, The sad part is most folks are not better off now than in 2000, other than a few executives who control their own destiny in a company. Job security is nonexistent compared to 2000, debt levels are absurd compared to 2000, many folks have a similar level of savings in their 401k as they did in 2000. And when you subtract the debt from assets obtained since 2000, most people are in negative territory. Personally, i think this is a necessary, although difficult, realignment of the financial world. But the reality is we have not had much true wealth… Read more »
Anonymous
Renter Tom
7 years 3 months ago

“Found out a few weeks ago that Marc Anthony and Jennifer Lopez purchased a penthouse at Icon Brickell. about 17 hours ago”

Yep – a lot of “celebrities” have made dumb financial decisions regarding real estate that have killed them financially. They forget the enormous holding costs. Ed McMahon, Michael Jackson, Bernie Kosar….so many, so many….

Anonymous
DJ
7 years 3 months ago
Visited a fried that lives in The Ivy in Brickell last night. What a dump. They had a guard gate, but no guard, so I had to drive through the exit to get in. The vallet was full, which I don’t understand because the building can’t be anywhere close to capacity. When I aksed where I could park and they looked at me dumbly and were like ‘I don’t know.’ There was no one manning the front desk, so once I did park I just walked right in. Etc., etc. Between that and Wind by Neo right next door, there’s… Read more »
Anonymous
Renter Tom
7 years 3 months ago

This one is for all the AJ’s out there in the world…. :-)

http://dilbert.com/strips/comic/2009-06-26

Anonymous
Kramer
7 years 3 months ago

DJ

Any information on “Wind”? The buildings lender foreclosed on the remaining units after about 40% of the original buyers closed on their units. The bank was Washington Mutual (now Wells Fargo). Any fire sale prices there? Who is paying the maintenance? Im betting those three buildings “Wind” – “Mint” – “Ivy” all go into receivership.

Anonymous
7 years 3 months ago
lara, please explain why you believe that those are attractive prices ?? is because things used to be more expensive ?? like when there was cred in the economy ? like when people had jobs ?? when miami was considered a desirable place to live ? you mentioned second home buyers ? look miami condos are done!!!!!! do the math people, the only way these things work is if u love the area and plan to live there a long time, your not reselling your units fo much more than they are going 4 now…(except for the cream) the rest… Read more »
Anonymous
Wild Bill
7 years 3 months ago

NBA All-Star Shaquille O’Neal will buy these bulk units. He just lost millions on his single family home and wants to make back.

Anonymous
7 years 3 months ago

obama nation people

cap and trade +health care reform $+ hundreds of new taxes =THE END OF WHATS LEFT OF THE MIDDLE CLASS

UNLESSS YOU HAVE GOV JOB YOU WILL HAVE NO JOB

PEOPLE MUST PRESERVE ANY AND ALL CASH NOT DUMP IT IN AN OVERPRICED BOX

IN THE MIDDLE OF NOWHERE

Anonymous
gables
7 years 3 months ago
Lucas, Any chance we could get an update on some numbers in Brickell regarding sales activity and prices? I am quite interested to see how things have evolved over the past 6 months or so. My feeling is quite negative, but the numbers will reveal the truth. Very curious whether activity has picked up, and if so, how much is relegated to cheap distressed properties versus owners who are able to move a property which is not under direct financial duress. I do not get the sense we are reaching any type of financial equilibrium point is sale prices, but… Read more »
Anonymous
BMW m3
7 years 3 months ago

Lucas talks a good game but I challenge him to a debate to be broadcast on YouTube. Realtor conman vs scholar. Resolved : The Miami real estate crisis continues and will continue for many years to come.

Anonymous
7 years 3 months ago

gables,

I hope to have the new closing rate numbers posted by Thursday. It usually take me 4-5 hours to collect all the numbers for each building. I’m going to try to chip away at it over the next couple of days and hopefully write the blog post either Wednesday or Thursday.

BMW,

What makes me a “Realtor conman”? Additionally, what makes you a “scholar”? What are your credentials?

Anonymous
AJ
7 years 3 months ago

Lucas,
Do not react to Mo.

Also , can you wait a few more days to publish the condo closing rates (say like July 15th or so), thereby you can have all the transactions until June 30th included in your next report (as according to you, it takes 2 weeks for a closing to get recorded).

Anonymous
BMW m3
7 years 3 months ago

You’re a conman because you make money off the misery of others. I’m a scholar because I’ve been right and you’ve been wrong all along the way. It’s always a great time to buy according to you. Where would you like to meet for our debate?

Anonymous
Lara
7 years 3 months ago
Drew 299, this is in response to to you message #24. You realize that I was speaking about particular (5 aprt, at a time) bulk purchase ad that Lucas placed sometime ago. Did you speak to him or his partner in re to that particular building> Did you see the prices? In this particular luxury building with amenities and views prices became very affordable for people with decent income (2nd home). Some were attractive even for investors when with 20% down rent actually covers all expenses. Because of the building in some time it had a potential for appreciation or… Read more »
Anonymous
7 years 3 months ago

Lara,

I actually did reveal the name of the development that had the previous bulk opportunity in this post. Hover over the link that I provided in the post and you’ll see the name of the development. That was my subtle way of letting everyone know the name. I’m surprised nobody picked up on it.

Anonymous
condoswindler
7 years 3 months ago

Lucas-yes please wait on the posting so that we get closer to end of June and therefore Q2 2009/ 2009 6mos. Looking forward to it as know just how brutal it will be-also please make a note on that report as far as what percent of the sales were short/REO’s, and those from developers.

Do not inlude the Bulk sale or with that make a note as the numbers will definately effect averages.

Just a thought

Anonymous
makes me think
7 years 3 months ago
Joe, RT, gables, Petronius , are you guys getting paid to get on this blog to repeat the same shit post after, post, day after day? Damn guys, we already know the economy if f’d up, we already know that people who choose to buy condos or realestate now will loose all their money and yes we all know that 5 years from now the USA will surpass haiti as the poorest country in the western hemispehere. Do you have to keep posting the same shit every day. Guess what, for many people life still goes on even after they… Read more »
Anonymous
gables
7 years 3 months ago
MMT, sorry to have hit a nerve with you. but i am not the one you should be angry at. i am only stating where i think we are and are headed. you really want to deal with the people who are sitting on the sidelines requesting too much for their property, not those of us sitting on the sidelines waiting for prices to reach proper levels. the world will be a lot happier when that equilibrium is reached and people are happily buying their new homes and filling up the new neighborhoods. target the anger at the banks and… Read more »
Anonymous
Juan
7 years 3 months ago

MMT I agree with you 100%. I think all these guys are going to be very suprised by the number of closings.

Anonymous
Visionary
7 years 3 months ago

makes me think,

Well spoken ! I fully concur with you.

Anonymous
7 years 3 months ago

Juan, Yep. I think they’ll all be VERY surprised. For example, in February 1060 Brickell had a closing rate of around 41%. When I visited the development last week they only had around 60 units left. I was told that they’ve been able to close around 230 units since the first week of April. Most of those sales were to individual buyers. I know that 500 Brickell is doing very well also.

Anonymous
gables
7 years 3 months ago
Nobody is stopping you from buying a condo today. In fact the selection is greater than you could ever have imagined. So for MMT, Juan and Visionary, why are you still browsing this blog rather than decorating your newly purchased condo? I am simply a pessimist when the situation calls for it, and an optimist when the currents change. I simply have not felt any significant changes in the currents until now. But I will say this, I was ready to buy a couple of years ago, and reading this blog certainly opened my eyes to the dangers at that… Read more »
Anonymous
gables
7 years 3 months ago

Lucas,
You can certainly do your part to change our mindsets. Provide that data, let us see what is happening. A positive and transparent market is the best way to return consumer confidence. Give me a reason to be positive so I dont have to be negative.

Anonymous
Kramer
7 years 3 months ago

Im definately inviting MakesMeThink to my next party. You woulda been a big hit at Auschwitz.

Anonymous
makes me think
7 years 3 months ago
No body is cheerleading people into buying, well except AJ but you guys are worst than AJ. There are people who has a good secure job and enough assets who has been waiting on the sidelines for an opportunity to buy a home to live in. if hose people has done their research and are aware of the potiential pitfalls then they should go ahead and make their purchase and move on with the rest of their lives. I am not looking to buy a condo I “control” several homes and at these prices I’m looking to “control” even more.… Read more »
Anonymous
Kramer
7 years 3 months ago

MakesmeThink

Now we have to be lectured by a guy who a few months back in a post claimed that Herbert Hoover was one of our greatest presidents. Its kinda like going to Bernie Madoff for personal financial advice. Would you care for some cheese with that whine of yours?

Anonymous
AJ
7 years 3 months ago
Juan, Yes, I am also in the same belief that people are going to be surprised with the new closing rate. In the 1800 Club, The developer said he had 16 closings on the table and one by one all of them are closing. As per the last Lucas report, 1800 Club was 68.8% closed. Now only 117 flats are left with the developer out of the 149 flats he had the last time Lucas made the post. That is a very impressive tally indeed. Especially considering the fact that for the first 2-3 months after Lucas posted the condo… Read more »
Anonymous
Wild Bill
7 years 3 months ago

Seems like the real estate bulls are running on empty. If investors who aren’t covering their bills a 100% closing rate doesn’t mean anything. You can only shuffle money around for so long before you turn into a Burnie Madoff. The key to a buildings health reflected in Miami Dade Court documents.

Anonymous
makes me think
7 years 3 months ago

Kramer,
Herbert Hoover? I don’t know anything about hoover and I doubt I’ve ever had a conversation about hoover much less blog about him. Check those facts again!

Anonymous
gables
7 years 3 months ago

AJ,
Are the closing prices recorded anywhere? Can we actually see the price people are closing these units at? I know we can get this info from resale units, but i do not know about initial closings. would be great to see if these units are selling at a discount or people are actually buying at their preconstruction prices. if the units are closing at the initially agreed upon prices, makes me more confident in RE. if they are closing at discounted prices, still have some time to investigate.

Anonymous
Joe
7 years 3 months ago
This blog gets funnier by the day. First, a self-described optimist and lover of life (“makes me think”) posts one of the most negative diatribes in the history of the site. Then a realtor(s) pop in gloating about closing rates … in a city with double-digit unemployment and massive tax shortfalls. What next? Will there be chocolate milk in the water fountains tomorrow? I’d love to know who’s buying all these cookie-cutter units in Miami. It sure as hell isn’t the unemployed and/or debt-ridden locals, and if it’s outside money, why would they buy downtown when the Beach is overflowing… Read more »
Anonymous
Wild Bill
7 years 3 months ago

Miami police bolster Brickell presence
http://www.miamiherald.com/news/breaking-news/story/1120278.html

“Operation Difference comes just weeks after a woman was raped along Southeast 10th Street and Brickell Bay Drive in an area that residents described as extremely safe.”

“The area, which includes Brickell Avenue and Coral Way, has seen a recent increase in burglaries of motor vehicles and robberies.”

No comment.

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