14 Unit Bulk Sale at Epic

A 32% price reduction? Not surprising at all. It is basic supply and demand: too many units available on the market and too few cash buyers cash buyers willing to play ball. Nothing is gained from holding on to these units and waiting for the mythical “dream buyer” to finally appear (the buyer who will pay the seller’s “ideal” price) because he/she/they ain’t coming – – sell, sell, sell. Still, one could reasonably argue that, in the absence of additional facts, the buyer got taken: $375 per sq. foot was more than reasonable fmv given market conditions. Unfortunately for downtown… Read more »

This bulk and most others are but another example of distressed sales where owners are willing to take 60 cents on the dollar. In this case it is 68 cents on the dollar for a luxury property another investor might give 48 cents for a non luxury building. Happens all the time and is not 1 in a million, especially in this economy. With the housing market showing signs of slowing again we might begin to see more bulk deals as developers get desperate for cash.

if downtown/brickell does indeed work out…epic will be the best building of the lot

jcrimes is 100% correct. Epic is a great building with a super location next to Met 2 and the river/bay. $375 is a great price for that.

mike, just fyi condoreports . com shows that epic sold several 1 bedroom units for $348 per sf, so this bulk sale of 14 units for $378 is not the lowest in the building. Or are these 1 bedrooms part of the bulk sale you are talking about but you have a per foot price wrong, that per foot is actually $348 not $378. 08/10 3513 1 1 799 278,000 348 Beige World Invest Ltd n/a – – – 08/10 3611 1 1 822 278,000 338 Beige World Invest Ltd n/a – – – 08/10 3713 1 1 799 278,000… Read more »

Good morning, I was wondering if there is anyone on here that knows anything about the Aventure market?There are several nice buildings on 188th St. The Artech, Atrium Eastside 3030 and Uptown Marina Lofts.If anyone lives there or owns a unit I would love to hear your take on the area.I am seriously considering a Condo on that street.Any info. would be greatly appreciated.

owner,
condoreports.com is notoriously inaccurate when it comes to listing the SF of a condo. In one building they were 90% wrong!! So the price per SF is completely skewed and screwed. Do not use that site EVER to calculate price per SF. If you just want to know the sale price and the date of transaction, they are slightly better off in that department.

dillinger

they look like they are always right on their sf in my infinity building and their per sf, because I check what condoreports states against the sf listed for the units in the dade county property site and they are same. Lucas could of just stated incorrect info.

One can never trust the bulk sale prices without reading the entire contract and financing deal. Sometime there are inflated or deflated sale prices with other adjustments. (Remember Barak Obama’s home purchase price in Chicago? – deflated home price and inflated land price!!)

Existing lenders can workout the financing terms to reduce or increase the upfront losses. This is big finance where you take a loss to show profit and take a profit to show the loss.

Well I’m all settled in here in Brickell and though I’d give an update. As part of the orientation last week we were able to me a lot of developers and one of them was Swire Properties at their Brickell Key office. Both the president Stephen Owens as well as Christopher Gandolfo were there.They told us a lot about their history, how they acquired Brickell key and the philosophy of their organization. At the end they discussed their vision for Brickell CitiCenter. They did purchase it for about $40m and they believe they weren’t the highest bidder but because they… Read more »

Another developer we met with was David Lombardi. His focus is on the Wynwood art’s district. He showed us the building he owners where the famous artist Romero Britto works and we also got to go into the unit that he leases to David Bromstad which he uses to film the show Color Splash Miami on HGTV. We also got to see another building which he leases and the owner runs a restaurant and art gallery called Cafeina (www.cafeinamiami.com). It was really nice. I have to admit that the surrounding area looks like trash, but once you go inside the… Read more »

And for the Miami Beach folks we also met Robert Wennett. He gave us a tour through his new property 1111 Lincoln road. It was really nice. I had seen it before and though it was just a parking garage. But there is retail on the ground floor as well as the fifth floor. The seventh floor can be converted to an event space and there are condos above the old drive through as well as a condo with a private elevator on top of garage that isn’t finished yet.

Is it just me, or does building 2 stories of underground parking adjacent to water in a hurricane zone just seem like a really bad idea?

Joe:

It’s a “bad idea” only if you are parking a car there. Other than that, it “seem[s]” purely ridiculous. (smile)

scriv

Gixxer, you’ve only been in Miami a few weeks and you’re already name-dropping like a pro…I guess you’re still a little star-struck. Oh well, you’ll adapt. Topical relevance of posts 10-12 aside, I question the decision of Gixxer to post information the developer would probably prefer not be documented on a web site for the entire world to read. In a presumably off-the-record, candid meeting between developer reps and grad students, I doubt Swire contemplated that Gixxer would run to his computer to post every detail of their meeting. Or that a Wynwood landlord wants the whole world to know… Read more »

correction: “lips” not “lipe”

Drew, The Brickell Citicentre project is listed on their website and they put up new signs and landscaping at the site. If you think a company is really going to tell top secret information to a bunch of graduate students then you’re an idiot. And it’s not like I’m name dropping celebrities or something. These are developers developing condos in Miami and with this being a Miami condo investment blog I’d assume some people might like to know. That’s the who purpose of a blog to, disseminate information quickly. If you don’t find the information relevant then ignore my post… Read more »

I have to agree with Gixer on this one. Your post has some good info but not exactly confidential stuff. Drew, stop trying to pick silly arguments.

gixxer, thanks for the info. glad you are settling into miami. the citibrickell info is interesting. i interpret that developers have scaled back significantly on plans for future construction in the area. they have also pushed plans out 4-5 years-who wants to bet this is at least 7+ years if it actually occurs? nevertheless, current residents will need to wait another 5+ years for additional retail in the brickell area. that suprises me-i really thought the area would get another retail center beyond the village much sooner. brickell really needs to fill in the infrastructure related to daily living asap.… Read more »

interesting decorator ready unit in solaris for $168k. anybody know what a ballpark cost to finish out an 1100 sf unit would be in todays market?

Gixxer, maybe you should try reading a little more closely. I’m not claiming you did anything illegal nor that anything was “top secret,” as you say. I’m just saying there may be some things in your posts that some of these individuals or companies would prefer not to be broadcast worldwide. Its very simple. Ask youself this: If you told these parties at your meetings that you would immediately post an online synopsis (inclusive of their names, their titles, business interests, strategies, their lessees, etc), what do you think they would say? Do you think they would be ok with… Read more »

Ladies and gentlemen,
does anyone have any info on Onyx on the Bay and StarLofts? Good buildings or bad ones?
Thanks in advance)))

Drew — You’re being silly. Unless these developers EXPLICITLY met with these grad students on an off-the-record basis, there’s absolutely nothing wrong with anything Gixxer 1000 did (or posted) here.

gables. I have worked on finishing a few units and I would give you a BALLPARK of around 15k. thats including porcelain floors, which i think is the best value for the cost. Also includes paint, floorboards, window treatments, random little light installations, and closets (most come unfinished).

thanks dale. so the decorator ready unit at solaris can be had for under $190k at move in-not too bad. the building has a great location. have not been inside, so don’t know how it has held up in the past few years. but you get ocean views for the next few years until the empty lot across the street finally develops.

Drew & Gixxer: Boys! BOYS! BOYS! Can’t we all just get along? (smile) In Gixx’s defense, Swire is represented by counsel and thus nothing said at that meeting was not public knowledge/top secret or classified – – because their attorneys would have their hides. Thus posting it on the internet is not a big deal. (Side bar: in case anyone is nervous here, see Section 230 of the Communications Decency Act (47 USC § 230). See also, e.g., Barnes v. Yahoo!, Inc., No. 05-36189 (9th Cir. May 7, 2009)) That said, I appreciated Gixx’s posting. An unanswered and unresolved issue… Read more »

Budget Hearing 5 p.m. September 13 and 23 For City Of MIAMI……

http://globaleconomicanalysis.blogspot.com/2010/08/bankrupt-miami-in-fiscal-emergency.html

Is there serious consideration to a formal BK ?

Swiss- I think the BK idea is that of the commentator, and as far as I know the City has not yet suggested it. This is one area in which Joe and I tend to agree. The City of Miami is run by corrupt monkeys, all the way up to the incompetent, decrepit mayor. Besides the budget deficit, they are under investigation by the SEC for improperly moving funds around for purposes of bond sales. Unbelievable that the avg City of Miami firefighter earns $90k, and many make over $300k. FIREFIGHTERS. And old man Regalado voted in favor of the… Read more »

Sarnoff mentioned it back in May……….

http://www.nbcmiami.com/news/politics/Miami_Budget_Crisis_Miami.html

With future Miami fiscal issues seemingly unsolvable (MANY other cities face the same struggle) a BK could be the cleanest quickest way to get the budget back in balance……

City of Miami is a fraudulent cesspool. Always has been. A few nice condominiums won’t change anything. If you were to eliminate all the $200,000 public servant salaries you would actually see how poor Miami is. Those lush salaries skew the statistics. Miami Beach is just as bad.

Wild Bill,
there is a ton of wealth in Miami. It’s actually Overtown, Liberty City and lower income bums like yourself that mess up the stats. The moment you leave Miami, the city will look better right away. Miami is corrupt for sure, but that’s part of the charm. You wouldn’t want Italy to look like Denmark, now would you?

Might be of interest to some of you:

http://globaleconomicanalysis.blogspot.com/2010/08/bankrupt-miami-in-fiscal-emergency.html

Miami’s government is borderline hopeless. A BK might bring some salaries in line, but the same people will simply find different pockets from which to steal, so there won’t be huge improvements. I posted a link about a year ago that summed it up nicely. In Miami, something like 500 “civil servants” made more than $100,000 last year (or was it $200,000 ??), while in Atlanta, a city much bigger than Miami, the number was *six* (6). —— scriv — I agree re: the larger question being the future of the So. Fla. market in general. I get beat up… Read more »

joe, there are thousands of early twenty somethings who are oblivious to the current financial downturn and condo collapse because it is not on their radar. in five years they will have cash and desire to move up in the world. they will buy into the next round. they will need a crisis of their own to change their habits.

gables — It seems we agree more than we disagree, but I disagree with you on this. Even if today’s early-twenty-somethings have some cash 3-5 years from now, I can’t see developers catering to them *or,* more importantly, banks going back to the easy-money, no-money-down policies of a few years ago. Plus, the bubble that just burst wasn’t driven by 20-somethings, so banking on 20-somethings creating the next one seems optimistic, especially when you look at the job market right now.

Drew you said What’s funny is that this guy Cox (union leader?) threatens that the City employees will leave in droves, in effect depriving the City of “their institutional knowledge.” Ha! Give me a break. These people don’t know their ass from a hole in the ground. Let them leave and try to use their skills in the private sector and we’ll see how successful they are. —-> You are 100% correct about the employees at the city of miami. ——> In 2009 I managed a large project for them. Since the project effected nearly all the departments within the… Read more »

Israelis, Venezuelans buy condos as homes, investments By Yudislaidy Fernandez Many of the international buyers scooping up condos in South Florida’s top bayfront communities are buying to occupy part-time, brokers say, but many would consider a future sale at a profit. Where these buyers decide to purchase depends in part to the condominium’s location, as some are more attracted to beachfront enclaves like Miami Beach, Sunny Isles Beach and Aventura while others want to be in the center of the action and opt for condos in greater Downtown in areas such as Omni, Brickell and downtown. At the 66-floor Marquis… Read more »

I love these articles that still talk about “discounted prices.” Earth to reporters: Three years into the r.e. bust, these prices are NOT “discounted.” When you look at the huge backlog of unsold units, the prices still aren’t even reflective of true market value. Give us a break.

Joe
Would you agree that a lot of these units are being sold for less than their replacement cost?

owneratinfinity, i agree with your assessment of miami government. have seen it in action first hand as well. but do you really think the city will declare banruptcy to clean out the union contracts and pensions? unless an outside force, like the fed, is able to come in and perform that task, the local miami population will not bite the hand that feeds it. and they just need to adjust their property tax rate to recoup money. if it were so easy to fix it would have been done by now-just ask california. the advantage of having so many wealthy… Read more »

George — I haven’t looked into current Miami prices for construction, materials, labor, etc., but aside from an occasional fire sale, I’m inclined to believe the whole “selling below cost” thing is just the latest marketing trick. Most of the new condos were priced with VERY healthy profit margins built in. Prices have been slashed since 2007, but with inflation at or near 0% for 2-3 years in a row, I’m not sure where things stand in terms of replacement value. In any event, regardless of the actual brick-and-mortar costs, I still don’t see a lot of value in most… Read more »

George

Israelis, Venezuelans buy condos as homes, investments
+++++++++++++++++++++++++++++++++++++++

WOW! Then why do we have a housing problem in Miami???? Miami Herald said it was Irish, Greek and Spanish buyers…….. But then the news broke out that they are all nearly bankrupt and are drowning in their own housing bubble!

Are you for real or just fooling yourself! Just tell me, where these buyers are and I would love to sell them all the condos in Miami.

“Are Existing Home Prices Overrepresented By Up To 40%?”
http://www.zerohedge.com/article/are-existing-home-prices-overrepresented-40

Does anyone have updated news on The Lexi at North Bay Village? The developer was declaring bankruptcy back in June and I’m not sure what the current status is. I’m naive about these things but, since the developer still owns quite a few units, I’m thinking it may cause problems for existing owners/HOA. Am I wrong about this??

” I agree re: the larger question being the future of the So. Fla. market in general. I get beat up here for being bearish, but I just don’t buy into the idea that demand will spike again within 3-5 years. People seem to forget that more new condos came to market in Miami in the last 6-7 years than in the previous TWENTY or THIRTY years added together. Given that demand is still lagging for the current condos — i.e., two years or more of current inventory — and given that most of the newer condos turned into rental… Read more »

Florida Developers look to foreign invesyors for funds

http://www.sun-sentinel.com/business/fl-foreign-investor-visa-projects-20100831,0,493427.story

Sould have said investors not invesyors

Sorry people I’m having technical difficulties this morning!!

Using EB-5s visas as a leverage vehicle for real estate financing?

I can’t wait to see how this pans out. This will be better than marriage fraud.

Giddy up!

scriv

One less South Fla public company……

http://www.bloomberg.com/news/2010-09-02/burger-king-to-be-bought-by-3g-capital-group-in-deal-valued-at-4-billion.html

Wonder if they’ll keep HQ in Miami and retain most mgmt… Probably. Theye’ve been through this before. What an unstable place to work.