Emerald at Brickell 1 Bedroom Foreclosure – $110,900

November 4, 2009 by Lucas Lechuga

Emerald at Brickell exterior

This 1 bedroom/1 bath foreclosure condo at Emerald at Brickell is fresh on the market; it just became available today.  It is highly likely that this condo will sell above the asking price.  A condo at Emerald at Brickell has previously never been offered this low on the MLS.  The lowest that a one bedroom has sold for in the building is $133,000 which closed in May of this year.  This foreclosure condo, unit 2108, has 826 square feet, faces north and is located on the 21st floor.  It previously sold for $670,000 in February 2008 (likely a fraudulent sale, however).

Once again, the listing agent did not upload any pictures of the condo onto the MLS.  The pictures below are photos that I took of the unit.  The condo is in very good condition with hard wood floors throughout the living room and bedroom and marble floors in the bathroom .  Additionally, none of the appliances were missing.  Caveat emptor: the HOA fees at Emerald at Brickell are higher than most condo buildings in Miami.  That is one of the biggest reasons why prices have fallen so drastically.  The HOA fees on this unit are $744 per month.  The condo would definitely sell at a higher price if monthly maintenance fees were in line with the rest of the market.

living room and kitchen

kitchen

living room

bedroom

master bathroom

infinity-edge Jacuzzi tub

rain shower

balcony

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96 Comments on "Emerald at Brickell 1 Bedroom Foreclosure – $110,900"


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Anonymous
Lara
6 years 10 months ago

high HOA fees kill the deal for me. Views are very limited too.
Recently there was a foreclosure in Soliaris. Also HOA fees kill the deal. In Hollywood there were some deals but high HOA fees. Price become almost irrelevant in such conditions.

Anonymous
JGM
6 years 10 months ago

Lucas, whats causing the excessive HOA fees .. Is it poor management or simply too many foreclosures in the building …

Anonymous
AJ
6 years 10 months ago
I just recieved word from the management of 1800 Club that they are putting finishing touches on the next year budget and it should be out in a few days. It is almost certain (90% probability) that there will be no maintenance increase for the next year too (gasp!). But I will hold off on popping the champagne until the news becomes official and I will share it all with you (you know I will be shouting it from the roof top). So that will make it I year 40.8 cents/sf II year 42.4 cents/sf III year 42.4 cents/sf (if… Read more »
Anonymous
AJ
6 years 10 months ago
Just a couple of things I forgot to mention: 1. The 1800 Club reached such an impressive closing numbers without the developer having to resort to any bulk sale. There are almost no investors in that building with more than 2 flats. Rumor has it that just there is just one guy that has 3 flats and I have not verified that. 2. As JGM posed regarding the Emerald, “Lucas, whats causing the excessive HOA fees .. Is it poor management or simply too many foreclosures in the building …” I have to say that 1800 has no more than… Read more »
Anonymous
Wild Bill
6 years 10 months ago

Real Estate Price Plunge Makes U.S. Homeownership Perilous Path
http://www.bloomberg.com/apps/news?pid=20603037&sid=a5Mu8v6dknLo

The maintenance fees in these new buildings are already dwarfing any appreciation somebody might hope to obtain. Most people will hang on another year before they decide this new Miami condo thing is a hopeless cause.
Buy an older crappy condo on Miami Beach that has been renovated an you will do okay.

Anonymous
scrivener
6 years 10 months ago

I have a question. I noticed that the unit features what looks like a vented hood exhaust system over the cook top. Is it truly an exhaust – – meaning that it vents outside the unit – – or is it merely a hood that vents into the unit similar to the “exhaust” fans found in the microwave ovens?

Wild Bill: thanks for the link!

scriv

Anonymous
Drew
6 years 10 months ago

Almost $9k a year in assn fees for a 826sf shitbox. How in the world can that be acceptable to a buyer?

Unfortunately some of these buildings have zero chance of recovery. On their current path, they will fall into disrepair and delapidation.
The condominium regime should be terminated and the building should be converted into a rental. Easier said than done…but it seems like the only alternative with some of the distressed projects.

Anonymous
Miami Skeptic
6 years 10 months ago
These insane HOA fees will continue to be a deal breaker for buildings like this. In foreclosure infested buildings like the Emerald and others, the low % of owners paying their dues the past few years has left the associations in horrendous shape, with no way out aside from bankruptcy. I don’t believe that this building has any especially costly amenities, more than likely the association just couldn’t keep up with the bills from their major service providers (think utilities and insurance). I know at one point cable and internet were so far in arrears at the one of the… Read more »
Anonymous
6 years 10 months ago

2 things, lucas thank you for not doing another penthouse post, 2br and one br ‘s are more
in line with my budget

high hoa’s are a killer plus they will increase it

Anonymous
AZ88
6 years 10 months ago

Lucas,

Great post. A follow up on what the condo sells for would be great info to see. Thanks.

Anonymous
6 years 10 months ago

JGM,

A large number of foreclosures. Many were a result of mortgage fraud.

Anonymous
AJ
6 years 10 months ago
Wild Bill, I read the piece. Even though there is nothing new in that article, it is very relevant. That is why it is all the more important to buy into a solid building after doing due diligence. All the unnecessary razzle dazzle that you find in the new Miami buildings are nothing but HOA back breakers. The simpler you live, the better. Hopefully people will go back to the basics after this epic debacle. You don’t need atrium lobbies, you don’t need both sunrise and sunset pools, you don’t need movie theaters in buildings, you don’t need valet parking… Read more »
Anonymous
AJ
6 years 10 months ago

Fannie Mae to rent out homes instead foreclosing

http://www.miamiherald.com/135/story/1317939.html

Anonymous
AJ
6 years 10 months ago
With Regalados victory, Marc Sarnoff will become a power center. ” Two-term commissioner Sarnoff is likely to benefit the most for his backing of the new mayor. Sarnoff, who represents the Biscayne Boulevard corridor from Coconut Grove through Brickell, downtown, and on to the Upper East Side, said Regalado already has made clear he will become commission chair. It’s a powerful post, with the chair choosing which items go on the city’s agenda. Sarnoff could also become the new director of the Downtown Development Authority. Though that post is chosen by commissioners, he has Regalado’s backing. The DDA is a… Read more »
Anonymous
Drew
6 years 10 months ago
AJ You bring up an interesting point about the condo/luxury hotel comparison. I guess there is a sense of entitlement and delusions of grandiosity when one decides that they need their home and surrounding amenities to be better than or equal to a 5-star hotel. These condo developers were selling an image and a lifestyle, characterized by the infinity pool, theatre, party room, a lobby that looks like a nightclub, branded gym/sauna, etc. Now all those added amenities (many of which are unnecessary and excessive) are burning a hole in the assn’s budget. A prospective buyer should take a hard… Read more »
Anonymous
AJ
6 years 10 months ago
“Now all those added amenities (many of which are unnecessary and excessive) are burning a hole in the assn’s budget” – Drew and not just the assn budget and related insurance costs, all these bells and whistles and “luxuries” make your prop to appraise for more and hence more taxes too. In reality, we always had luxury buildings even before the bubble times. But it was like 1 building out of 10 or something like that. There were enough rich people to afford all those extra HOA costs and taxes in that one in ten buildings. But then when 49… Read more »
Anonymous
JGM
6 years 10 months ago

Tks Lucas ..

If the high HOA fees are due to high foreclosure rates, if we fast forward three years from now, assume the building is at a much healthier situation, and lower HOA fees, the current $100k price might not be too bad of a deal ..

Even today, paying $100k cash, then renting it out for 1200 to 1400 a month, the deal still works out ..

Anonymous
6 years 10 months ago

“and lower HOA fees”

Has any building in So Fla ever appreciably lowered HOA dues?

Anonymous
scrivener
6 years 10 months ago
“The simpler you live, the better.” – AJ WOW! I propose that we frame, bronze, emboss, super glue, etc this phrase somewhere prominent because it is brilliant and the underlying truism that the condo developers and that purchasers/investors (both in the housing market and the securities market) forgot during the housing bubble. And I appreciate and agree with the observations concerning the excess “luxuries” in the majority of the new buildings in Miami. For example, there is one building (the name is not important) I know of that incorporated biometric security devices in the elevators which required finger print identification… Read more »
Anonymous
Miami Skeptic
6 years 10 months ago
JGM You are correct that if the building straightens out its finances in the next 3 years, this could end up being a good investment. 2 problems I see: 1. Tons of new inventory coming on line will erode the rental market. Drive around at night and look at how few lights are on in some of these buildings. That will be your competition for years to come. 2. HOAs usually only extract themselves from trouble one way – special assessments. Once they work through the foreclosures and have more solvent ownership chances are they will special assess their way… Read more »
Anonymous
Renter Tom
6 years 10 months ago

AJ – If 1800 Club is 20% LESS than other buildings, then one wonders why. Might not all be peaches and cream. Slicing off adequate reserves, under insured, deferred maintenance, etc. Few amenities are one thing, but one wonders what the reasons are… Whenever there is an outlier, it deserves scrutiny….Madoff was an outlier and that should have raised a red flag too…

Anonymous
Lara
6 years 10 months ago

RT, you are wrong in re to 1800 Club. the building has everything that one needs: simple but elegant, all possible well designed and comfortable amenities, stunning bay views. I do not know though about reserves and insurance. I guess AJ can clarify that issue. I am a big fan of this building

Anonymous
Renter Tom
6 years 10 months ago

Lara – I am not wrong, the 20% off I am referring to is the HOA fees that AJ posted a comparison about. Whenever there is an outlier, it deserves scrutiny. Why AJ’s building is sooo “perfect” needs to be taken with a grain of salt. I don’t dispute it is a good building, I don’t know either way, but I would wonder why their HOA fees are so much lower. Just saying, do your homework. Don’t be penny wise and pound foolish.

Anonymous
AJ
6 years 10 months ago
RT, I was as skeptical as you. When a 1 or 2 BR unit in 50 Biscayne or Quantum is paying upto $850/month in HOA and we are paying $520, we sure checked if all is in order. And to our satisfaction, they are. 1) Yes we do not have a lot of reserves, Yes we are only 80% insured (we are self insuring the difference). I have repeatedly asked others to post if their buildings have reserves and 100% coverage but not even one response was forthcoming. I assume all buildings in Miami are in the same boat but… Read more »
Anonymous
MarkyNZ
6 years 10 months ago

I’m guessing the two main reasons why these HOA fees are so high are:
1) High % of units not paying HOA fees given short sales or foreclosures.
2) Small number of units in the building means that the total costs per unit will be higher than a much larger building with similar amenties. All about economies of scale.

Anonymous
southbeachsand
6 years 10 months ago

Not having a reserve is like those idiots in Miami driving a new Benz with no money in the bank account. Complete foolish.

AJ – has your management at least hired an engineer to complete a Reserve Study for the building? Those reports are invaluable in establishing what you need for the future.

Anonymous
Kramer
6 years 10 months ago
Ahhhh Bliss The AJ/Renter Tom soap opera has returned to the MCI Fall Season Schedule. This heavyweight match-up pits (RT) an Ayn Rand devotee with a superiority complex who wears a tuxedo when visiting the pool area, smokes a pipe, listens to opera and never uses the bidet in his apartment preferring to hire help for the deed. Knowledgeable, insightful, debonair, erudite and a model citizen, yet a disdain for the common folk. In the other corner is AJ – a Bloke with a cheeky attitude, more modest in his ambitions, enjoys popular culture, is kind to animals, never orders… Read more »
Anonymous
Renter Tom
6 years 10 months ago

Kramer – I’m pretty sure I saw AJ eating some fatty goose liver just the other day on Ocean Drive….he then got on public transportation and disappeared over the bridge across the bay….he was headed toward Pace Park.

Anonymous
Wild Bill
6 years 10 months ago

I wouldn’t even bother critiquing a developers influenced budget. A complete waste of time.

Anonymous
gables
6 years 10 months ago
The emerald is a building I really like. The prices and hoa fees have always been a concern, because the numbers really do not add up. hoa have always been very high, but many units get listed very low-most likely due to the high hoa and foreclosure. they are a wannabe luxury building, close but not quite there. but the amenities are still a class above most of the other buildings in the brickel area-club, vue, mark, 500, etc. if you can buy at the right price and hold out long enough for hoa to correct, will be a great… Read more »
Anonymous
Condo Swindlers
6 years 10 months ago

as far as the vent hood its a facade-nothing vents out it vents into your a/c duct-dont believe me cook some fish for dinner and see what happens…

Anonymous
John Henry
6 years 10 months ago

Rumor has it that the long-stalled Terra Beachside Villas project on 60th and Collins was purchased yesterday and that construction completion will commence shortly. About time.

Anonymous
Dave
6 years 10 months ago

AJ – I own a 1B1B at Quantum and the HOA fee is $479, and this includes the reserves.

Anonymous
Lara
6 years 10 months ago

Dave, I also own 1b1b in Quantum and you are right. I still think that HOA fees are too high. For some 2bd they go almost $900. 1bd fees should be in the mid 300. I see some waste in management. Do not forget that Quantum has over 700 units. So cost per unit should be lower that in 1800 club where the number of units is in mid 400s.

Anonymous
AJ
6 years 10 months ago
Dave, could you be a bit more specific about how much percentage of the HOA goes towards reserves? Also are you in south tower or north tower? South tower HOA is less than that of North tower. Please tell us the size of your unit. With out that info the total HOA usually does not say much. Lara is right on. Two friends of mine are struggling to pay $850/mo HOA on a 2/2 in Q. The problem with Q is they have 2 gyms, 2 pools, 4 party rooms, 1 movie theater 20 common bathrooms, 1 library and the… Read more »
Anonymous
Hugo P
6 years 10 months ago
I think if it sells above list (which I think will), the price is still a bit high, but not that far if you buy ALL CASH as an investment. Here is the math: Purchase Price: $120k (above asking like Lucas expects) Rent at: $1,600/month (2008 rented for that in Feb 09) Minus: HOA: $744/month – $8,928/year Taxes: $250/month – $3,000/year ($3,200 for $2009) Net Income: $606/month = $7,272/year Return on cash: $7,272/$120k = 6% Not a bad return, but including vacancy and replacement costs the numbers get tighter. I do believe there are some desperate investors who are buying… Read more »
Anonymous
Renter Tom
6 years 10 months ago
I will say that I have seen some activity in the last month or two where a good unit at a “bargain” price gets immediate attention and goes under contract. There are people out there looking for these things ready to go. Are they knife catchers, perhaps, but the risk has lessened since last year as prices have come down and are closer to the bottom. These units tend to be lower to almost mid priced units. The upper end seems to still have a glut without any anxious buyers. Just my observation. Our area will continue to get hammered… Read more »
Anonymous
Renter Tom
6 years 10 months ago

Oppps, almost forgot…rising interest rates are in the our not too distant future (you can only ZIRP for so long) which means asset prices purchased with borrowed money will come down. Don’t underestimate the affect of ZIRP on current home prices…..

Anonymous
Renter Tom
6 years 10 months ago

Oh, and it is a four bank failure Friday. Yawn.

Anonymous
Drew
6 years 10 months ago

Hugo
$1600/month is unrealistic. $1300 at most.

Anonymous
southbeachsand
6 years 10 months ago

Terra Beachside Villas would be like owning a condo between the toll booths on the Dolphin Expressway. I hope the buyer got a huge bargain.

Anonymous
Renter Tom
6 years 10 months ago

……update….now a five bank failure Friday. Move along, nothing to see here, housing is fine, everything will be alright. Move along.

Anonymous
AJ
6 years 10 months ago

Drew, even $1300 is unrealistic for this unit. I would say more like $1100 or $1150/mo. Not a penny more.

Anonymous
Hugo P
6 years 10 months ago

Drew, AJ

I used $1,600 as unit 2008 rented for that price in Feb 2009.

I agree that getting that today might be a stretch, which reinforces even more that this is not a good investment for an iliquid asset.

Anonymous
Miami2009
6 years 10 months ago

I looked at this building a while back when prices for 1bd were 350K+. Obviously overpriced, however the building is very nice and in a decent location across from the bay. No views and high maintenance kill the deal on this unit.

Anonymous
Dave
6 years 10 months ago
AJ – Lara The Q 1B1B unit I refered to earlier is an M in the north tower with an HOA of .65 with 10% going towards reserves, but yes it should lower and there are owners working on several efforts that will take some time to work through for reductions. AJ – Yes there are a lot of common bathrooms throughout the building but aren’t we exaggerating a bit vs. 1800 to play up 2 pools and 2 gyms. I would not count the gym’s loft spinning area as a 2nd gym, and the pools are no larger than… Read more »
Anonymous
Visionary
6 years 10 months ago

AJ – Lara

I also own in Quantum a 1B1B, but my HOA fee is under $400.

Anonymous
Mr Waverly
6 years 10 months ago

Common areas were a trend sold during the boom… In the future look for a 20 X 20 entry, one door man, one pool and two exercise bikes.
All of those common areas should be sold off or rented then managed as their own entities.
I see common areas as a thing of the past, just like the management companies that overcharge to run those buildings.
Just my thoughts.

Anonymous
AJ
6 years 10 months ago
Dave, Yes, 20 toilets was a bit of an exaggeration but you get the point that you need a ton a of man power to maintain and than a lot of electricity to light and cool all these extra spaces. Every extra person you hire will cost you exponentially. Visionary, 1/1 and studios in Q seems to be in line with a tolerable HOA. But the 2/2s are quite heavy. It maybe because the 2/2s are between 1300 and 1400 sf. Not sure. MrWaverly, Cant agree with you more except that you cant sell of your pool. What is done… Read more »
Anonymous
AJ
6 years 10 months ago

Look at this 1BR unit in 1800 for $180K and $375 HOA. I think it is far superior compared to the unit on this thread in every which way. Definitely see the photographs.

http://www.miamicondoinvestments.com/property-search/view.php?mlsid=M1194481

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