Penthouse B at The Setai Sells for $15M

June 8, 2010 by Lucas Lechuga

The Setai Penthouse B

Last Friday, Penthouse B at The Setai sold for $15M, or $2416 per square foot.  No word yet on who acquired the breathtaking, South Beach penthouse.  The previous owner purchased the unit directly from the developer in 2004 for $9.5M.  From my knowledge, the recent sale is the highest priced condo sale to ever take place in Miami-Dade County.

Pictures and an e-brochure of Penthouse B at The Setai

For inquiring minds, Penthouse A at The Setai came onto the market this past April.  The unit has the same square footage as Penthouse B.  The asking price is $27M, or $4349 per square foot, which currently makes it the second highest priced condo listing in Miami-Dade County.

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33 Comments on "Penthouse B at The Setai Sells for $15M"


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Anonymous
why bother
6 years 3 months ago

Goes to show that there is still shit load of money out there. And it is all cash. Someone on this blog (gables?) said that it is all highly leveraged. NO, when you buy all cash, it is not a leveraged buy.
Good for the lucky guy who bought this spectacular property even though at $2416, it rivals the property prices in Hong Kong and a bit hard to swallow for many.
Where is the $125 brigade LMFAO!!?

Anonymous
gables
6 years 3 months ago

why bother, people leverage up to $1m condos, not $15m condos. not much leverage today in Miami according to the latest reports-that all occurred 5 years ago with the mortgage fraud. they are the short sales listed ad nauseum.

Anonymous
Hugo P
6 years 3 months ago

This is the same unit that was listed in this website at about $20 Million.

Incredible unit, but still too rich in my opinion

Anonymous
Joe
6 years 3 months ago

Doesn’t mean much until we see who the buyer is. Knowing Miami, it might be yet another paper transaction.

Anonymous
Joe
6 years 3 months ago

Lucas — It might be moot now, but the PDF file you mentioned above seems corrupted. I’ve downloaded it 3 times, and all I get is a 2.7 MB file with a blank one-page PDF. I’d like to see if it’s still available somewhere.

Anyway, the pricing history is interesting: Original sale was $9.5M in 2004, then it was listed for $34M, then reduced to $22M, then reduced again to $20M in April, and now it apparently sold for another $5M below list price.

Anonymous
6 years 3 months ago

Joe,

It might be your computer. I tried downloading it from two different computers and didn’t have a problem viewing the PDF on either.

Anonymous
iphoneapi
6 years 3 months ago
This is a lot of fun information. However, it strikes me as being useless to 99.99 percent of condo buyers out. As most insiders know much of these large sales are from Latins, Russians, etc that want to wash their money through the high end Miami condo market by not having to pay taxes on income not reported. It does not reflect the real estate market in any shape or form. What has a greater bearing on Miami real estate is the oil slick spilling onto the Florida and Louisiana shore, altering the environment permanently. The oil slick is the… Read more »
Anonymous
Renter Tom
6 years 3 months ago

iphoneapi – Who knows about some of the transactions in this area. One new building I looked at showed about 8 remaining developer units sold to some LLC at 2-4 times market price….couldn’t understand it and doubt the transaction was real. Why would a developer do this (increase comp prices???)? Odd to me…I must be missing something…

Anonymous
Poor & Unemployed
6 years 3 months ago

Renter Tom

How quickly we have forgotten about OBAMA’s home purchase!

Someone buys something for more money so someone else gets a discount. It is just another financial transaction. In old days they use to say – follow the CASH and you will find the skeletons.

Anonymous
Renter Tom
6 years 3 months ago

I sure hope all that oil doesn’t come to Miami Beach! Oil clumps may show up on occasion for more than a year on the gulf side…ouch.

Hope and Change? I’d settle for stopping just one oil leak… Where is that oil man when we need him!

Anonymous
SouthBeacher
6 years 3 months ago

Anyone know how sales are going next door at the W South Beach? Heard its in trouble with banks not willing to lend large amounts on such small units? It’s not listed in Zillow or Trulia.

Anonymous
Seanjohn
6 years 3 months ago
Sales like this one at the Setai are not useless info to the rest of us buyers. Many high end & low end transactions are of questionable pedigree as iphoneapi points out. Same story in every city like New York or London where high end buyers flock. The point is Miami is one of the places that attract them as well & those buyers in many ways grease the less sexy wheels of the overpriced showboxes the rest of us plebs pay up for. Who doesn’t want to own or live down the block from the 15MM PH guy? Miami… Read more »
Anonymous
carbonblackcab
6 years 3 months ago

Renter Tom: I had a conversation earlier today about someone who was looking for a condo on the beach. They were all concerend about the oil that will surely hit FL beaches in the coming weeks/months. Once the oil hits, it will take a long time to clean up.

It will be interested to see what the oil will do to the price of beach front properties.

Anonymous
6 years 3 months ago

On a more relevant side:

The median price paid for resale condos in April slipped to $91,000, down from $95,000 in March and $103,000 a year ago. April’s level was the lowest since the resale condo median was $87,500 in January 2002. Last month the resale condo median stood 58.4 percent below its $219,000 peak in July 2006.

http://www.nuwireinvestor.com/articles/miami-home-resales-reach-four-year-high-55368.aspx

Anonymous
Gixxer 1000
6 years 3 months ago
From the same article: “The March-to-April decline in the median was in part the result of a shift toward a greater percentage of homes selling below $200,000. In April, 65.1 percent of all sales were under $200,000, compared with 63.8 percent in March.” Which is what I have been saying. It’s not that the actual value of units is going down its just that more people are buying lower priced condos than there are people buying higher priced ones trending the median price down. Especially when you had an incentive that disproportionately affected lower price units (tax credit). Also: “A… Read more »
Anonymous
gables
6 years 3 months ago

gixxer, you also have an increased number of sub$200k homes because they have dropped in value. the numbers are not static. a drop in house value decreases the number of $200k+ homes and increases the number of sub $200k homes. its not neccesarily a shift in target price point-but also actual price point.

Anonymous
Gixxer 1000
6 years 3 months ago
gables, I completely agree. The decrease in median value is going to be from a combination of both a decrease in value and decrease in the composition of purchase prices. Which is why I think we both agree that we’ll have to wait until case/shiller numbers come out for April to get a better understanding. The case/shiller index looks at changes in price of the exact same price of resale homes. So using the information from March you have a decrease in the median price of resale homes of 18.2% from March 2009. But if you look at case/shiller you… Read more »
Anonymous
Gixxer 1000
6 years 3 months ago
Mortgage Delinquencies at FHA Show Slowdown By NICK TIMIRAOS http://online.wsj.com/article/SB10001424052748704726104575290841574349032.html “In April, nearly 8.5% of loans backed by the agency were 90 days or more past due. While that was still higher than a year earlier, April marked the third consecutive month in which delinquencies, which peaked at 9.4% in January, declined.” “The FHA figures come amid other signs that mortgage delinquencies may have plateaued. The number of loans that were 90 days or more past due at Fannie Mae and Freddie Mac, the government-owned mortgage-finance giants, fell in March for the first time in three years. Last month, the… Read more »
Anonymous
Joe
6 years 3 months ago

Gixxer 1000 said: “Which is what I have been saying. It’s not that the actual value of units is going down its just that more people are buying lower priced condos …”

— Have you lost your mind? Unless So. Fla. developers, in a fit of largesse, have been building thousands of low-price condos without me being aware of it, “more people are buying lower priced condos” BECAUSE THE CONDOS ARE NOW WORTH SUBSTANTIALLY LESS.

Good grief, man, do you have any shame? You try to spin everything as a positive.

Anonymous
Gixxer 1000
6 years 3 months ago
Again you seem to miss the point entirely. There are about 16,000 condos listed that range in price from $30k up to over $15m. But only about 1000 are sold each month. If all of a sudden of those 100o condos people start buying the condos that are priced at $100k in MARCH in APRIL then the median price will move toward $100k in APRIL even though they are buying these condos at the same price that they were listed at in MARCH. Others like gables here seem to understand that. Just like how Icon is now selling units at… Read more »
Anonymous
Joe
6 years 3 months ago
Gixxer 1000 — Housing inventory doesn’t just pop up out of thin air. If people are buying more lower-priced condos, then OBVIOUSLY that means the market, in general, has shifted downward. The r.e. market isn’t like some kiosk at Bayside Marketplace where one day a guy is selling popcorn for $1 and the next day someone is selling Rolexes for $10,000. Real estate, in a market with little or no new construction, is a zero-sum game. It’s not like 5,000 lower-priced condos suddenly appeared on the market last week and skewed the numbers — they came from the EXISTING supply,… Read more »
Anonymous
iphoneapi
6 years 3 months ago

It will be interesting to see how long the oil invasion will effect the miami area. I just read an article that states the oil will be leaking until the end of august at best. A friend of mine from NYC is considering selling his condos at the Bellini, The Bath Club, and One Bal Harbour before the beaches are wrecked and prices head way south. What are ur thoughts everyone?

Anonymous
why bother
6 years 3 months ago

My thought is, you are just a big phony, making up stories of your imaginary friend.

Anonymous
scrivener
6 years 3 months ago
“Good grief, man, do you have any shame? You try to spin everything as a positive.” – – Joe I share your frustration. All this mind-numbing, generalized, and speculative talk of “median prices” – – who is doing this math? “[M]edian prices” – – it is almost an indefinite pronoun. The “median” is the middle of a distribution: half the scores are above the median and half are below the median. While median values are less sensitive to extreme scores (e.g. “black swans” and “fat tails”) than mean values , how are these “median price(s)” being calculated? What is the… Read more »
Anonymous
Gixxer 1000
6 years 3 months ago
scriv, I’m confused at to why you say you are frustrated and then make a detailed argument explaining my position. “While median values are less sensitive to extreme scores (e.g. “black swans” and “fat tails”) than mean values , how are these “median price(s)” being calculated?” The median values are based of the MLS closed sales for that month. So were talking about 8,000 to 9,000 sales each month. “The median value in the second example is higher than the first because the data set is larger. The addition of 12, increased the median value by 1.5. None of the… Read more »
Anonymous
Renter Tom
6 years 3 months ago

This oil leak is starting to become a real concern…the area real estate market and our country doesn’t need this problem.

Anonymous
Joe
6 years 3 months ago

Gixxer 1000 said: “Yes, that is the question. Although in most areas the median price is going down. Which is why Joe is arguing that the VALUE of houses must be going down because the median price is going down.”

— Please show us an example of a long-term trend of home values RISING concurrent with DECLINES in the median sales price. Thanks in advance.

Anonymous
scrivener
6 years 3 months ago
Gixx: Thanks for the reasoned response, though, to be honest, I am not explaining your position. Rather, I am trying to ascertain your position. My focus is on the numbers that you report and your previous argument that the real estate market reached a “bottom” – – what was it, on or about April. Your argument seemed to be premised on published data reflecting increased median sales prices. The problem with the argument is that it was based on median values. Trends in median values, though helpful, can hardly be said to be conclusive because of the way they are… Read more »
Anonymous
Gixxer 1000
6 years 3 months ago
sctiv, When did I base my argument on median values??? My argument has been based on a bunch of factors and I’ve stated that over and over. Median values was just one component. The basis of my argument was that 2nd quarter 2009 was the bottom based on a combination of sales volume, case/shiller, pricer per square foot and median sales price. Sales volume: Sales volume went from almost 20,000 total sales per month in 2005 to a low of just under 5000 sometime in the 1st quarter 2009 and started picking up in the 2nd quarter 2009 and has… Read more »
Anonymous
Gixxer 1000
6 years 3 months ago
Joe, “Please show us an example of a long-term trend of home values RISING concurrent with DECLINES in the median sales price. Thanks in advance.’ Why, that’s not my argument. See my post #17 when discussing resale homes. I didn’t argue that the median sales price was going down and home values were RISING. I argued that the majority of the downward movement in median sales price was due to people buying more lower end homes and a small portion of it was due to the decrease in home values. But again as I pointed out to scriv this information… Read more »
Anonymous
owneratinfinity
6 years 3 months ago
Gixxer 1000, —->You always make sense to me. “you said – So in the areas where the median sales prices is going up I have the exact same argument in reverse. For example median prices are up 13.6% downtown in zip code 33131. I don’t think home values are up 13.6% though. I would assume prices are probably up around 1% with the majority of the upward movement coming from people now starting to purchase higher priced units” ——-> And I agree, now that Icon on Brickell is selling around 30 units a month at around $370 to $400 per… Read more »
Anonymous
Joe
6 years 3 months ago
Gixxer 1000: This is what you said in post #17: “And again keep in mind this is information for the entire area.” (Pay special attention to the “entire area” part.) … and this was your quote/rebuttal in post #25: “… Although in most areas the median price is going down. Which is why Joe is arguing that the VALUE of houses must be going down because the median price is going down.” — Since you were clearly talking about median prices for the “ENTIRE AREA” — those are your words, not mine — rather than one particular neighborhood or another,… Read more »
Anonymous

[…] Two other factors working against Clark’s ambitious asking price: one giant oil slick threatening Miami’s coastline and Penthouse “B” at the Setai. It sold last month for $15 million. […]

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