Luxury Real Estate Market Ended 2012 With Two Huge Condo Sales in South Beach
January 5, 2013 by Lucas Lechuga
The Miami Beach luxury real estate market closed out 2012 with a bang. Two huge condo sales took place over the last four days of the year.
A bi-level penthouse at Icon South Beach sold on New Year's Eve for slightly under $21M, or $2,623 per square foot. The 4 bedroom/6.5 bath condo sold above asking price as it had been listed for $19M. The lavish residence has roughly 8,000 interior square feet and has its own rooftop deck and pool. The penthouse was previously purchased in 2007 for $7M.
On December 28th, a second two-story penthouse sold but this time over at Continuum South Beach North Tower. The 5 bedroom/5.5 bath condo sold for $11M, or $1,580 per square foot. The 6,963 square foot residence has a southeastern exposure with views of the Atlantic ocean and Government Cut. The unit was sold "decorator-ready" straight from the developer.
1) Why would someone with $21 million want to buy a condo and be subjected to condo association rules and be told by 5 fools on the Board how to live your life? 2) This whole deal stinks. 7 Mil in the peak of 2007 market and then it gets sold for 21 5 years later when the market is just catching up to the peaks of 06/07 3) I have been to ICON Sobe many times and it is the most mediocre building in all of SOBE Luxury buildings. In fact as plain Jane as some of the Luxury… Read more »
AJ:
When you look globally the supply of luxury homes is a very tight market while demand is growing exponentially. It’s not like they’re creating more beach. Miami is coming into its own as a global destination. Regardless of what was paid for it in 2007, many people understand that $2,600 per square foot in SoFi is a decent value. Kudos to Boich for grabbing this in 2007 when everyone was shiting the bed.
Hi Gixx, That’s an interesting perspective. You are an eternal optimist when it comes to Miami. It’s not a bad thing. I’m an owner.
I wouldn’t say eternal. I’m sure within the next 10 – 15 years every dentist from NY will be a Miami developer again and we’ll find a way to overbuild again.
Gixx, I didn’t know anything about NY dentists becoming developers. Where would they get the money? I can’t wait till The Whole Food opens and the architects Frank Ghery and Zaha Hadid transform Miami,which is my home at the moment!
I was trying to imply that after a few years of successful project after successful project the lending standards would drop again like in years past and then all the people with no development experience would be trying to get in on the act.
I don’t know what’s going on with Whole Foods. Last I heard Equity Residential pulled out of the deal to build the rental units on top. I really wish they’d get started on it though, it will be great for downtown.
Thanks, Gixx. It looks as if the Whole Food is being built right now. There sure are cranes and men working there everyday. You have not been there for awhile?
I live up the street on Brickell. I passed the site everyday on the way home. There has been work on the site for years. Probably to keep a permit active or something similar. When you see actual construction materials, that’s when I would get excited.