2 South Beach Loft Foreclosures on Meridian Avenue

January 22, 2008 by Lucas Lechuga

Within the past week, I’ve come across two great bank-owned lofts on Meridian Avenue in South Beach. The first is located at 1700 Meridian Avenue in a development called Montclair Lofts. It is a bi-level 3 bedroom/3 bath loft with 2,300 square feet. The unit looks to be in great condition judging by the pictures that accompany the MLS listing. The bank is asking $749,900, or about $326 per square foot. According to public records, the judgment amount on this foreclosure was $1,050,855.

The second foreclosed loft is located at 2001 Meridian Avenue in a building called Meridian Lofts. It is a 1 bedroom/1 bath loft with 1,046 square feet of interior space. This loft also appears to be in great shape judging by the pictures accompanying the MLS listing. The bank is asking $391,900, or about $375 per square foot.

Both developments were built in 2005 and are within walking distance of world-famous Lincoln Road. I think both of these lofts represent good deals, even in this market.

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77 Comments on "2 South Beach Loft Foreclosures on Meridian Avenue"


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Anonymous
8 years 8 months ago

Hi,

A little out of context, but where online can I check if a given property has any lien?

Anonymous
jcrimes
8 years 8 months ago

i do it through a two step process – do a property search on the public records to find out who the record owner is. then based on the record owner, do a public records search on the name to see what recorded docs come up.

Anonymous
RMP
8 years 8 months ago

Let’s be honest now, those are not good deals. Not in 2008, 2009, 2010 or 2011.

Anonymous
8 years 8 months ago

$326 per square foot in a prime area of South Beach? I guess you guys are waiting for it to hit $200 per square foot. Good luck!

Anonymous
8 years 8 months ago

RMP,

Montclair is only one block away from Lincoln Road. That is a great deal for that amount of space. Not everyone is looking for Bayview or Oceanview. Some are looking for convenience and not many units are out there that are 2000+ sq ft. So lets put that in perspective.

Anonymous
8 years 8 months ago

I actually did a search for condos or lofts that are over 2,000 square feet in South Beach. The Montclair Loft, with 2,300 square feet, is the best priced unit available in all of South Beach. I guess that’s not good enough. The location is great and the building is relatively new.

Anonymous
Omar
8 years 8 months ago

The adjective PRIME and GREAT as it refers to locations for properites is being thrown around quite loosely.

IMO, this is a good location with a distinct target “audience.” This type of unit or location does not carry mass appeal like a Beachfront or Sof/Fifth would. Hence not prime, which is defined as first or best. That’s just reality, which hopefully some of us are trying to inject.

Also, the listing notes YR/Built as 2005? Renovated maybe. Built, not likely.

Anonymous
8 years 8 months ago

A portion of the site was historic and ronovated but another portion was built in 2005.

Anonymous
Raul
8 years 8 months ago

Hello Lucas,

Love your site!

I have an off topic question, I will be looking to re-locate my SoBe based business to a new location. Where can I find listings of commercial real estate properties for sale or lease in SoBe?

Anonymous
Brian
8 years 8 months ago

That is a horrible location. The unit is about 10 feet from Dade Blvd, which is a highly traveled road cutting through south beach. Very noisy and there is a stop light right outside the window.

Its actually 3 blocks from Lincoln Road, but those are 3 VERY LONG blocks. It spans the entire convention center plus the big parking deck to reach Lincoln. Thats a very long walk.

Anonymous
8 years 8 months ago

I was talking about Montclair – one block from Lincoln.

Anonymous
Brian
8 years 8 months ago

Oh I see. I was referring to Meridian. I drive by there all the time and wonder how those people sleep up there. They have a 2nd building that looks nearly complete as well. They get that convention center traffic as well.

Anonymous
Syed
8 years 8 months ago

Maybe not $200 PSF but I think closer to the $250 range. That is a great location (with or without the noise). Its walking distance to restaurants, a movie theater, and public transportation. I definitely can’t say the same thing for the downtown projects where the $200 PSF is becoming less unrealistic. Anyone know what the maintenance is on the 17th street unit?

Anonymous
RMP
8 years 8 months ago

Lets not get carried away with the $/sqft figures here. These units are not SO-FI, they are not beachfront, they are not bayfront, you can not dock a boat anywhere and every time there is an event in the convention center its pandemonium on your doorstep.

$300/sqft would be amazing for something on the water. For this? Not so much.

Anonymous
8 years 8 months ago
While not getting carried away with the $/sqft please realize that the market sets a price. You may think it is worth only $200 per sq ft but if buyers are buying units in the building at $350 per sq ft (I’m not saying they are or aren’t) even in this market then the market value of the building will be near $350 per sq ft no matter what a buyer or seller thinks. Its only when we start to see a trend as a result of actual sales that I think we can start talking about $/sqft. There will… Read more »
Anonymous
BFG
8 years 8 months ago

The Montclair looks out onto the Miami Beach Convention Center parking lot:

http://tinyurl.com/2hx58j

I imagine that would be a relatively noisy place to live.

Anonymous
8 years 8 months ago

Well… People got themselves into mortages they could barely afford. Since paying the mortage comes first(we don’t wanna live under a bridge), people couldn’t afford spending their left over money on other goods and services as much as before. So our economy went into a recession. Now we can finally thank those developers, realtors, bankers, contruction companies and contractors for screwing up our present economy. Everyone wants a piece of the pie without working hard at it.

Anonymous
BFG
8 years 8 months ago

Also, like an above poster mentioned, this was a condo conversion.

It was built in 1954.

Anonymous
8 years 8 months ago

Like Samir, I thought only the building in the middle was built in 1954.

Anonymous
jcrimes
8 years 8 months ago

middle building is 54, surrounding structure is new. it’s a great property. not sure how it can sell for less than $300 sq ft, however, it may take some time to find the “right” buyer, i.e., this is definitely geared toward a second home purchaser and not a primary residence purchaser.

Anonymous
8 years 8 months ago

Jcrimes,

I was actually thinking that the loft at Montclair Lofts would be geared more for someone who is the artistic type, loves lofts and works on Lincoln Road. I think a second home buyer would be willing to comprise space for a view or something that is closer to the beach.

There has been a lot of debate about these two lofts. I’m going to keep a close eye on them and provide an update as to when they go under contract and for what price they eventually sell.

Anonymous
jcrimes
8 years 8 months ago

lucas
but isn’t that a limited group of buyers at that price? i was thinking (and no, am i not judging!) that this property would appeal to a nontraditional couple that has expendable residual income and enjoys this area of south beach. it really is a great location and the building is nice. a traditional couple, yeah, i agree, they’ll want a view and will look elsewhere.

Anonymous
8 years 8 months ago
It is a limited group but, while this may not be the only group that this loft may appeal to, I think it is the most promising group. This is the type of buyer that will see this as a great deal. They don’t have the investor mindset. They’ve already been sitting on the sidelines for months for a deal like this to be revealed. Many of the comments left on this post are from investment-minded people. While I fully grasp your investor mentality, you need to realize that there is a target buyer for every property. The target buyer… Read more »
Anonymous
Marcus Bui
8 years 8 months ago

Lucas, your sounding rather defensive and testy. I also agree with the other posters, your analysis seems way off and this unit is still way, way over priced. It’s an older building too, which is another issue. Why don’t you post a picture of the outside? Not sure how you can judge the inside only, but the outside must count for something in decision making. Also, the interior shows very tiny window in the top photo. I would not pay a dime more than 200 for older redone construction.

Anonymous
8 years 8 months ago

Like we said this is a new construction building. Only the lobby portion of the building is the old 54 building which was renovated due to city requirements. The exterior is very unique with metal frame elements and the building was designed by Chad Oppenheim – Ten Museum Park, Sobe Bay etc.

http://www.multifamilyexecutive.com/industry-news.asp?sectionID=549&articleID=346895

Goto oppenoffice.com for photos. Click on projects -> alphabetical -> montclair

Anonymous
8 years 8 months ago
Marcus, LOL. I think you want me to sound testy, but I’m not. If you click on the link that accompanies this post, I’m sure that you’ll see some pictures of the exterior. It’s not like I’m trying to hide those. It’s not like anyone is buying sight-unseen these days. You’re (your) trying to make me sound testy and defensive. I just ask you, in a very kind way, to attend a few grammar classes before you respond. I think it may do you some good. If you do so, then maybe one day you’ll sound slightly educated. Right now,… Read more »
Anonymous
jcrimes
8 years 8 months ago
hey guys…no need for the insults. this is one of the few civil blogs/comments boards around. no need to ruing that about two foreclosed units. in any event, i’ll agree with lucas, there is a specific buyer for this place that doesn’t care about price the way i might care about price (although i’m not an investor…just a sap waiting to get the right deal for a place to call home). as for montclair lofts (and for purposes of full disclosure, i am a pessimist about this market), it’s a great looking building outside and inside (at least from the… Read more »
Anonymous
Julian
8 years 8 months ago
One of the first things I was taught by a friend who is a property developer in London is the concept of quantum. I think this obsession with $/sq ft ignores this (and given build costs correlate highly with home prices – except in the last 5 years – you can see why quantum is important). Quantum in this analysis simply refers to the absolute $, £ or € price for a unit/house in a given area. I guess it’s like saying a Penthouse in TMP is only $400 a sqft (for example) but costs $5m. I.e. the quantum is… Read more »
Anonymous
DAVID
8 years 8 months ago

Lucas,

Kudos about the grammar! It’s quite appalling to see the spelling and grammar of some responders.

Anonymous
8 years 8 months ago

$/sq ft is the gold standard as long as you specify the location and approx. square footage with- high floor?, views?, waterfront? parking? ultra-lux or medium construction etc.

Anonymous
Julian
8 years 8 months ago
JL – I don’t agree. It’s a very US-centric measure, used only elsewhere in the world where there is a complete lack of space – i.e HK. Even London has only moved in the per sq ft direction in the last two years and is from the measure that people discuss. Besides per sq ft also only works to a point. Even in Central London, the price per sq ft for a 1000 sq/ft 2 bedroom (if you cared about such measures) differs markedly from price per sq ft for a 3000 sq ft house. I think it’s a misleading… Read more »
Anonymous
Juan
8 years 8 months ago

Raul,

I do commercial real estate in Downtown Miami and parts of the beach. If you need any help contact me at jfranco@metro1properties.com.

Back on topic, I love the look of the Montclair lofts and I definately think there’s a customer base for it. They’re right in the middle of everething!

Anonymous
Grant
8 years 8 months ago

As a London based property investor, I have to agree fully with Julian. I’m surprised by the lack of analysis of total units within particular price bands. In a highly leveraged environment (the past) $/sq ft can make sense, but now that reality is squeezing us it’s more about matching a number of units with a number of buyers, ie. quantum.

Julian -Excellent post by the way.
Lucas – Don’t respond to the rif-raf; you’re aboveit.

Anonymous
Julian
8 years 8 months ago

Cheers Grant. Time to think about Afford-ability again rather than Finance-ability. Quantum works with the former, $ per sq ft the latter.

Anonymous
BFG
8 years 8 months ago
I think Julian has a good point. Price per square foot can be a useful measure, but it is only one of many things to look at. Price per square ft varies depending on the size of the unit, as well. Obviously, there is a diminishing value as a unit gets bigger. The smaller the unit, the higher the price per sq ft will be compared to an equivalent unit that is 2 or 3 times the size. So, you can only use that measure for comparably-sized units in the same area or building. Also, a lot of the prices… Read more »
Anonymous
8 years 8 months ago

Maintenance and taxes on these two units are just too high in my humble opinion. I would be surprised if they sell for more than $300 a sq/ft primarily because of that. I also agree that it is not optimum location and think most people would prefer to pay more for a class A building with amenities.

Anonymous
8 years 8 months ago
I also believe people prefer to pay more for a class A building with amenities but when most people are looking to purchase in South Beach it is because they do not want to live somewhere else – Miami Beach, Sunny Isles, Downtown. So if there are not many large units available in South Beach even close to the price the options become limited and this becomes more attractive. In my experience buyers want to buy in Downtown because they know they are getting a bargain on properties with great bay-views due to increased inventory. Buyers looking in South Beach… Read more »
Anonymous
Tony
8 years 8 months ago

Maybe I’m not giving the average buyer who is an owner/user enough credit, but do you guys really think that Joe Schmoe is sophisticated enough to be looking for a home on a $/Sq.Ft. basis? I agree with Julian, especially now that many investors/speculators are in a holding pattern, the absolute value of the property carries much more weight than the $/Sq.Ft.

Anonymous
cyrus
8 years 8 months ago

LUCAS,

LOL! … fart in the wind …

Anonymous
Dave A.
8 years 8 months ago

I’m sorry, but the maintenance fee of $662 is absolutely insulting. Even for a full-service building, it’s high. And this looks bare-bones.

Anonymous
Bill P
8 years 8 months ago

This is a tough crowd, Lucas and Samir. Comments reflect the questions that skeptical buyers are asking in this uncertain market and the market is not accepting the offering prices on these units.

$/sq. ft. is used extensively in Boston where I am but also relevant is the price point. Many sacrifice total square footage for exceptional finishes and building amenities.

Regarding Montclair, spiral stairs went out in the 80’s and the floor looks warped. NOT quality in this market where buyers have so much to choose from.

Anonymous
8 years 8 months ago
I don’t think this term of Quantum is really any different than $sq/ft. When you provide each number with the appropriate context, you get the other so there is no argument really… they are different ways to state the math to demonstrate a point/trend. If you say 2BR /2bath 2,000 sq foot new constructions aren’t selling at $400/sq.foot, it’s implicit that $800,000 2,000 sq. foot quantums aren’t selling. If you say 600K 2 bedroom 2,000 sq foot townhouses are selling in the city, then you’re saying the market in that area for that type of layout is $300/sq foot. If… Read more »
Anonymous
8 years 8 months ago

People are loosing their jobs left and right. Businesses are closing down. People are getting foreclosed. And houses are not selling. People will not buy 2nd home in today’s global economy due to the market worldwide slowdown. I do not want to hear the excuse that foreigners will buy these houses. Houses will sell once prices are back at the years of 2001-2003 price range.

Anonymous
8 years 8 months ago
Lucas, When I see un-educated people posting comments on my blog, I delete them because it make my blog look bad…like homeless, iliterate people hang out on my blog. I wonder for the peeps who have been throwing around the $200/ft number–they will be actually be able to purchase that crap across the bridge for that and keep all the rich, educated people over here on Miami Beach. Sorry….Platinum will be $200 /ft pretty soon. LIVE IT UP THERE. Bring your mace, you’ll need it. But you only paid $200 a foot–amenities like a prostitute right out your front door,… Read more »
Anonymous
8 years 8 months ago
I don’t have 1 single friend or family member or extended family member that has lost their job or closed their business. JoCo, do you know anyone in this situation? I do know that people are getting foreclosed on but that is not just due to market values going up that has something to do with mortgage fraud and bad mortgage brokers. Everyone talks about the economy going down the drain but not everyone is being affected equally. Sure many people will consider spending less. Of course not everyone can afford a $500,000 two bedroom but they were created to… Read more »
Anonymous
RA
8 years 8 months ago

Bottom line you get what you pay for and if you are very lucky you may steal a couple of cheapo’s that got screwed or over extended themselves in the boom. End of the day prime bldgs and spots will cost ya. Either pay or buy somewhere else there are plenty of options and building for evey tye of income. Just dont be thinking that a true mid-high luxury building will become a Platinum auction price point cause if you do you’re kidding yourself.

Anonymous
8 years 8 months ago
Jo Co, I think Kevin and Samir will agree with me that properties ARE SELLING in this market. Real estate prices have come down about 20-30% since the end of 2005 to beginning of 2006. I think all three of us would tell you that 2008 has already been a phenomenal year for us…and we’re still in January. There are some condo developments in Miami that will see declining prices in the next 12 months but that’s because they priced themselves too late in the game. I also have to agree with Samir that the high-level of foreclosures that we’re… Read more »
Anonymous
jcrimes
8 years 8 months ago

Samir/Jo Co
i don’t think i’m kidding myself by waiting in this market. the condo you describe will be available in a year from now…cheaper. it’s just plain fact.

as for premium spots for condos, i.e., certain stretches of collins, south pointe, well, that’s not my market.

Anonymous
jcrimes
8 years 8 months ago

Lucas
the bulk of foreclosures you’re seeing now are mostly in buildings that have already been completed or were completed during the boom. wait to see what happens with all the new inventory coming online. assuming these folks still choose to close. if not, do you really want to be in a building where the developer is looking to do a bulk sale to a buyer that’s gonna operate the units as rentals? would you advise a client to do that?

Anonymous
GT3
8 years 8 months ago

I just wanted to point out a simple, yet fundamental, observation that was posted here:

Quoting BFG: “A buyer shouldn’t look at what something costs compared to the 2005 price and declare it a ‘good deal’ because it is 30% off that over-inflated price.”

Those who don’t agree with the statement probably think that 70 bucks a barrel for oil (hit $99), 600 bucks for a troy oz. of gold (hit $900), and 12 bucks for a grey goose and tonic ($15-25 at most trendy bars/restaurants) are a great deal too.

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