Top 5 Distressed Condo Sales Closed in May 2009

June 19, 2009 by Lucas Lechuga

Below, you will find what I believe to be the five best condo deals of the 46 distressed sales that closed in the month of May in the MLS located in Brickell, Brickell Key, Downtown Miami and the Arts District.  I think the distressed condos that closed in the month of May were better deals than what we have seen in previous months.

  1. Jade Brickell – unit 1002 – 2 bedroom/2 bath (1,529 square feet) – This unit sold for $375,000, or $245 per square foot, on May 15, 2009.  Short Sale
  2. Courts Brickell Key – unit 1909 – 3 bedroom/3 bath (1,488 square feet) – This unit sold for $350,000, or $235 per square foot, on May 20, 2009.  Short Sale
  3. Skyline on Brickell – unit 306 – 2 bedroom/2 bath (1,367 square feet) – This unit sold for $349,000, or $255 per square foot, on May 8, 2009.  Foreclosure
  4. Skyline on Brickell – unit 1512 – 2 bedroom/2 bath (1,367 square feet) – This unit sold for $305,000, or $223 per square foot, on May 18, 2009. Short Sale
  5. One Miami – unit 3916 – 1 bedroom/1 bath (846 square feet) – This unit sold for $150,000 or $177 per square foot, on May 27, 2009.  Foreclosure

Runner-ups:

  • The Mark on Brickell – unit 1001 – 2 bedroom/2 bath (1,200 square feet) – This unit sold for $205,000, or $171 per square foot, on May 22, 2009.  Foreclosure
  • 1800 Biscayne Plaza – unit 203 – 2 bedroom/2 bath (1,057 square feet) – This unit sold for $120,000, or $114 per square foot, on May 01, 2009.  Short Sale
  • Cite on the Bay – unit 2213 – 1 bedroom/1 bath (795 square feet) – This unit sold for $100,000, or $126 per square foot, on May 13, 2009.  Foreclosure

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142 Comments on "Top 5 Distressed Condo Sales Closed in May 2009"


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Anonymous
AJ
7 years 3 months ago

wow!! Lucas, how come you post these sales after the fact? It is a cock teaser. You cant have em anymore. I particularly love the units at One Miami and Cite for 150K and 100k. What the heck, I could have picked up one myself. With one bedrooms renting at $1000ish, it is a +cash flow or close.
So the next time post the foreclosure and bank approved short sales before the fact so that people here can take advantage. One of my friend in NY would have bought either of those two in a heart beat and all cash.

Anonymous
Wild Bill
7 years 3 months ago

Unit 2213 at Cite was bought on 1/2005 for $220,900. A complete disaster for owners who payed over $200,000. A hit and a rip is the only way out.

Anonymous
Hugo P
7 years 3 months ago

Lucas:

I agree with AJ.

Given what has been written in this blog that distressed properties is the best (and in my opinion the only) way to get a deal, I think it would be good business for you if you add a distressed tab above so everyone can look what’s available.

It’s a bit of a pain going through every building to see what’s available.

Hope that helps

Anonymous
Wild Bill
7 years 3 months ago

One Miami unit 3916 was bought for $400,000 on 10/2006. Sold for $150,000 5/2009. Stop paying mortgage, maintenance fees and steal the appliances. Only way out.

Anonymous
Wild Bill
7 years 3 months ago

Mr. Perez paid bought unit 1002 at Jade on 12/2006 for $1,600,000. He sold it for $375,000 on 5/2009. Stop paying mortgage, maintenance fees and steal the appliances. Only way out.

Anonymous
AJ
7 years 3 months ago
Some guys got really lucky with One Miami and Cite. The one Miami unit directly overlooks all of Bayfront Park and beyond. The cite unit, no views but has the best location advantage of being near Pace Park and among all the up coming conveniences on the Biscayne Blvd. The price paid is peanuts. But the irony is that the smart folks who read this blog are not benefiting from such distressed sales. Some ignoramus must have stumbled on this with the help of an equally ignorant RE agent and bought it. Not fair for the loyal readers and followers… Read more »
Anonymous
AJ
7 years 3 months ago

My question is;
Lucas, were these properties featured on your Condo Deals page? If they did and none of us bothered to look at that page, then it is our fault. But if you never featured them and escaped your eye and your research, then you gotta pull up your socks a bit.

Anonymous
Wild Bill
7 years 3 months ago

No win situation. Once people do the math an realize their investment went down over 50% they will stop paying mortgage and maintenance fees. The cash buyers are screwed because the board can lien and foreclose on their cash units. They are stuck paying for all the losers that took off.

Anonymous
Odd & Sods
7 years 3 months ago

I fail to see how the runners up are not better deals than the first five so called winners all of which sold way above market value. I’ll take $114.00 per square foot any day all day.

Anonymous
H
7 years 3 months ago

Amazing views from that One Miami unit.

Anonymous
Lara
7 years 3 months ago

Lucas,

Would you please explain why I cannot find these units neither on your condo deals nor in the list of units for sale or sold. You have the list of buildings in each area of Miami where the list of units for sale and sold is supposed to be updated from MLS every 5 days. I think you mentioned it once.

Please explain

Anonymous
southbeachsand
7 years 3 months ago

Yeah, lets all blame Lucas. Everyone should get a refund for your membership fees to come here.

Anonymous
Lara
7 years 3 months ago

Noone is blaming Lucas. We are simply asking. That’s it. If the listings are old that’s fine too as long as we know about it.

Anonymous
7 years 3 months ago
Some of the listings may have been on the Condo Deals page. It’s hard to say because the listings are automatically removed from that page once the listing is no longer available. I must admit though that I’ve been pretty bad about keeping the Condo Deals page regularly updated over the past 30 days because I was on vacation part of the time and have been extremely busy with work lately. Ask any agent and they’ll tell you that business has picked up immensely since April. I’m actually quite surprised because this time of year it is usually very slow.… Read more »
Anonymous
Kramer
7 years 3 months ago

The last CLOSING RATE post for new condos that Lucas posted was over 4 months ago February 8th. We dont know if any units are closing or not. Lara pointed out about completed sales pages not being current. Not bitching just saying.

Anonymous
7 years 3 months ago

Relax, you all will like the June deals more than the May ones and the July ones more than the June ones and the August ones more than the July ones…. You haven’t missed anything here.

Zilbert is doing a good job with his listings annotating short/foreclosed with the listing. Assuming his data is up to date and accurate, One Miami has quite a lot of listings that are short sales. In fact for the 3BRs he’s showing that there are 11 short sale listings vs. 8 normal ones. Nice ratio… NOT

Anonymous
Wild Bill
7 years 3 months ago

On 1/2006 unit 1512 at Skyline was purchased for $587,000. Unit sold on 5/2009 for $305,000.
Unit 306 in the same building was
purchased on 8/2005 for $590,000. Unit sold on for $349,000 on 5/2009.
Dine and dash.

Anonymous
AJ
7 years 3 months ago
gables, keep your powder dry and get ready. miami 2009, where are you? Same goes to you too. I think the time to grab a short sale and foreclosure is now. These are the only deals that are half off the peak prices. Everyone else is holding off hoping that once all the distressed property is off the market, they can still get their asking price. So if the economy improves, which looks like it will by the end of the year with no further job losses, the foreclosure list may not get any bigger. As long as there are… Read more »
Anonymous
Joe
7 years 3 months ago

AJ — I’m not so sure the foreclosure list won’t get any bigger, with or without additional job losses. I believe there’s like a trillion dollars in mortgages that are scheduled to reset over the next 12-24 months — ???

Anonymous
Odd & Sods
7 years 3 months ago

The reason realtors do not push or advertise deals like the “so called runners up” and why the they state that the first five over priced deals are better deals than the lower priced deals can be summed up in one word: commission.

Anonymous
Miami2009
7 years 3 months ago

Aj, I am on the sidelines just waiting ;-). Can someone tell me how to find these deals before they get sold? I will be down in August to take another look. Since prices have been coming down I have broadened my search to include Bal Harbour and Miami Beach as well.

Anonymous
Petronius
7 years 3 months ago
AJ, There will be more distressed properties available because they are in the pipeline already. Look at Skyline on Brickell for example. In the public records, there are 107 lis pendens filings and only 30 transfers of title to banks so far. Now not every filing leads to a finalized foreclosure and a few bank owned properties may have already been sold but there is still a large pool of foreclosures trickling through the legal system. The driver to foreclosures isn’t only the economy and unemployment but the deeply negative cash flow that some of the speculators who purchased during… Read more »
Anonymous
southbeachsand
7 years 3 months ago

Looks like Bernie Koser got done in by the real estate bug.

http://www.miamiherald.com/486/story/1105967.html

Anonymous
Odd & Sods
7 years 3 months ago

AJ

I never took you for a plagerist, surely you quote The Ace without giving due credit.

Anonymous
Wild Bill
7 years 3 months ago

Advertising these deals is like advertising the collapse of your industry. All your clients that bought at the peak are destroyed. All the people who buy these short sales will be destroyed when the maintenance fees go up. You’re essentially looking at a blog that is documenting the downfall of Miami similar to the crash of 1926.

Anonymous
AJ
7 years 3 months ago

odds & sods,
I cant believe I am agreeing with you a second time in a month! That may be true. selling a $100,000 unit will only fetch $3000 in commission. But the realtors must realize that no one is buying that Million dollar penthouse. A $3000 in the pocket is better than the imaginary $30,000 (3% commission on a $million condo) that you are never going to make. At least not anytime soon.

Anonymous
CC
7 years 3 months ago

I dont know how some can say that foreclosure inventory will be smaller in the near future. Look at the stats below. It takes 6-9 months for it to work through the system.

Can someone please let me know how i can look public records to see how much a unit sold for in the past?

http://www.miami-dadeclerk.com/dadecoc/Mortgage-Statics.asp

Anonymous
Joe
7 years 3 months ago

Realtors are still in dreamland. Every time a unit sells, they seem to think things the worst is over.

I’ll never forget the time I sold a condo and listed it with only a 7% commission instead of the standard 8% (in that area), and then had multiple agents tell me “they only showed full-commission” properties.

Ha ha ha! Enjoy unemployment, scumbags!

Anonymous
Mondrian
7 years 3 months ago

Realtards as they say. This party is just gettin’ started! it’s going to last for YEARS. YEARS. Mark my words. The price collapse is just starting. Unemployment just hit a record in the 33 years they are keeping records. Recalibrated to the way they kept stats in the 1930s unemployment is near 20 %. This is going to be a bloodbath.

Anonymous
BMW M3
7 years 3 months ago

The bottom will be in when AJ finally admits he is finacially ruined and/or he hangs himself. Buy then and only then. By my estimation that is a few years away.

Anonymous
Lara
7 years 3 months ago
Generalization whether it is about agents or politics, or group of people, views on life and etc ruined civilizations, led to cruel wars, tragedies in human life. Not all agents are the same.If one is a real estate agent or talent agent or a sports agent. It is a matchmaking process. Find the right one, take your time to actually look for one. In re to real estate it really depends what your goals are. Being an investor I work all the time with agents on both sides of transactions. None of us like to pay comissions but it is… Read more »
Anonymous
Wild Bill
7 years 3 months ago

The bottom is in. Cash buyers are jumping in. Foreign investors just arrived to MIA. I recommend multiple offers on multiple properties. Buy multiple units in one building. This boom is going to be even bigger than the last.

Anonymous
BMW M3
7 years 3 months ago

Wild Bill #32 has got to be a phoney. Wild Bill has stated that condos are never a good investment. Why the sudden change?

Anonymous
BMW M3
7 years 3 months ago

“this boom” hahahahah! Wild Bill #32 = AJ = AZ88 = Lara

Anonymous
AJ
7 years 3 months ago
Many RE agents are losers (professionally). They open the door to show you the flat and expect to pocket the commission. I am so glad they are all out of work and I hope that they continue to be out of work. But there are a few agents/brokers like Lucas or Samir, who work hard for their commission (even though I did not work with Lucas, the work he puts on this site proves that he earns his clients keep). Even then I seriously object to the 6% commission days. In the days of yore when the agents have to… Read more »
Anonymous
Wild Bill
7 years 3 months ago

BMW M3,

That was the real me in post #32. I found a new doctor and have new meds. Everything is looking good. Going to place a few offers on Monday. My taxi driver confirmed. Foreigners are in town.

Anonymous
Joe
7 years 3 months ago
AJ — If you think 6% is bad, head to New York. The standard fee there has been 7% to 8% for years. See my post #28. — Lara — “Not all agents are the same.If one is a real estate agent or talent agent or a sports agent.” — Ouch! Touche. “None of us like to pay comissions but it is a necessary part like a stop on the red light.” — I don’t object to commissions; I work in a commission business myself. My problems are these: (1) a 6% to 8% fee, in this day and age,… Read more »
Anonymous
Bobby J
7 years 3 months ago
As long as we’re able to hold the deals together and deliver value to our clients we have earned our commissions. I just put under agreement a $3.5 million listing which I sold for $2.5 four years ago. After staging and networking the property was officially listed with ten showings the first week and an offer was accepted after long negotiations, which brought the offer to full asking price and increased the initial offer by $400,000. The buyers got an exceptional property. For this my clients are paying 5% (I get 6% for less expensive properties), half goes to the… Read more »
Anonymous
makes me think
7 years 3 months ago
honestly, I can’t believe some of the prices I am seeing here. I have noticed that the inventory has shrunk quite considerably in the past few weeks but I have also noticed there are lots of empty houses waiting to be put on the market. I can’t figure it out, seems like the banks are deliberately keeping some houses off market in order to reduce inventory thereby trying to put the brakes on price declines. It seems that prices are spiraling downwards the lower prices are causing lower apraisals. It looks like people are still walking away from their homes… Read more »
Anonymous
Bobby J
7 years 3 months ago

I think that the banks keep houses off the market because they want to take their losses gradually. The reserves are probably inadequate.

Anonymous
Joe
7 years 3 months ago

Speaking of distressed condos, check out the article in today’s (Sunday’s) Miami Herald (currently on the front page of MiamiHerald.com) titled, “Condos squeeze deadbeat residents.” Things appear to be getting very, very ugly in CondoLand.

I wonder if the writer reads this site, as one of Renter Tom’s favorite phrases — “condo death spiral” — is used about halfway through the piece.

Anonymous
Richard
7 years 3 months ago

I don’t think Wild Bill is showing not original purchase prices but rather inflated resales and probably a fraud case one at the Jade.
In my opinion listing agents deserve max 1% commission for their little effort–in todays world a seller could do his own listing and would probably include more than 1 picture to promote the sale–the selling agent is the one to be rewarded.

Anonymous
gables
7 years 3 months ago
AJ, my powder is dry and ready. there are some really good deals appearing in short sales, but not sure how valid such an offer really is. on the other hand, i am more concerned than ever about the status of HOA in buildings. i get the sinking feeling many of these buildings are going to turn into giant money pits over the next decade due to HOA costs. just a feeling, no firm proof. anybody care to share actual conditions and future projections in buildings they live/own in? would love to have more of this info.
Anonymous
AJ
7 years 3 months ago
Richard, who ever you are, I cant agree with you more. The listing agent does precious nothing. Most times, he/she puts the house key in a lock box and disappear. While I was looking at some props with Samir, One MOFO listing agent who had 3 flats in 1800 Club actually left all the main doors open and tells the selling agent to just go look for themselves! What kind of a lazy SOB does that and has the balls to collect the commission. Does the owners even know that this arse hole is leaving their flats unlocked day and… Read more »
Anonymous
Wild Bill
7 years 3 months ago
Remember that empty units are not using water. The water budget is off instantly. Insurance and reserve accounts are nonexistent or bare minimum. A complete fraud to post low figures when your building has no reserves. What is this a bankers convention? Real estate agents are not obligated to post anything but the last payments for the maintenance fees. Which is really an estimate. Maintenance fees can change at anytime. Some special assessments are added to monthly maintenance fees. I suspect that nobody knows what they were buying in the first place which is why people cannot pay their fees… Read more »
Anonymous
AJ
7 years 3 months ago
We went down this road before. I gave an open challenge to anyone to show me which of the 50 new downtown buildings have reserves built in their HOA. No one came forward. I knew it. Talking about water bill!! The water bill part is minuscule in the overall scheme of things in the operation of a building ( It will become a major part by 2020 when water becomes as scarce as petrol but as of now it doesn’t count that much). The major Expenses are Electricity (unchanged due to the low or high occupancy), Staff (same), Insurance (Same).… Read more »
Anonymous
Odd & Sods
7 years 3 months ago

With unemployment exceeding 14% in Miami and heading for 11% plus nationally there is a Tsumi of foreclousers on the way. And although I’ve been an admirer and follower of The Ace for some time his predicion of $125.00 which is now upon us is no where near the bottom.

Anonymous
AJ
7 years 3 months ago
Well can you all see how the arguments slowly changing. Initially some of these guys were arguing that the developer is subsidizing the HOA and hence it is low in some buildings like the 1800. That has long been debunked. Some said that certain buildings might be cutting corners by under insuring themselves. I checked with my building insurances and they are fully insured to the mandated levels and beyond. My mortgage holding bank has accepted the fully insured figure and deemed that it is quite sufficient. So even that argument gets flushed down the toilet. Now they are trying… Read more »
Anonymous
AJ
7 years 3 months ago
I think this is long overdue. Everyone please go down to your management office and get this info please and post it here. How mush is the HOA/SF/month? Are their reserves built in this HOA? (If you can even find out how much percentage of the HOA is set aside for reserves, it would be great but if you do not have that info, its still OK) Whether you are a renter or owner in a building, it does not matter. Please get this info and put it here. I will compile it all and make a chart for everyone… Read more »
Anonymous
gables
7 years 3 months ago
AJ, The monthly fees are not a great big problem to estimate. Just divide the monthly hoa fee by square footage to get an estimate for the building. the info i am most interested in is the status of reserves, special assessments (how often and how much?), percentage of people paying dues on time, etc. this info would be great to better understand whether a building is a ticking time bomb, cheap but with known upcoming expenses, expensive but safe, average but save, etc. you get the picture. what the buyers need to understand, is if I hold the unit… Read more »
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