13 Star Island Drive Sells for $25.5M – Record Breaking Sale

May 20, 2011 by Lucas Lechuga

13 Star Island Drive

13 Star Island Drive in Miami Beach recently sold for $25.5M, making it the highest priced sale in Miami-Dade County history.  The sale closed late last month but wasn’t updated in the MLS until yesterday afternoon.  The 8 bedroom/8 full bath/2 half bath waterfront home resides on a 40,000 square foot lot and has 15,008 square feet of living space, a bayfront infinity edge pool and a fitness center.  The estate sold in 50 days at a 20.3% discount from its initial asking price of $32M.  The property was previously purchased in 2000 for $3.7M.

To put this sale into perspective, let’s compare it to another recent sale on Star Island.  As you may recall, 27 Star Island sold earlier this month for $10.75M.  That property also sat on a 40,000 square foot lot and had 15,000 square feet of living space.  My initial reaction is that there is A LOT that can be done with $14.75M.  An argument can be made that the west side of Star Island is preferable over the east side because you get a gorgeous view of the sunset and Downtown Miami skyline but you’d be hard pressed to find someone who would say that justifies the price. Nonetheless, 13 Star Island Drive is a beautiful property.  There’s no denying that the luxury real estate market has performed remarkably well this year, especially given the state of the economy.  There have now been four home sales this year of $10M or more, two of which have been properties located on Star Island.

More pictures of the property will be posted later.

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55 Comments on "13 Star Island Drive Sells for $25.5M – Record Breaking Sale"


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Anonymous
Joe
4 years 11 months ago

Who owned this place? And who bought it?

Anonymous
Poor and unemployed
4 years 11 months ago

Check the records before opening the bubbly! It was a special warranty deed. That should explain something to those who understand RE.

Anonymous
Drew
4 years 11 months ago

Seller was Thomas Morgan, a Denver-area oil exec according to some reports.

P&U- Please enlighten me why a SWD would have a bearing on the purchase price. I think you have no idea what you’re talking about.

Anonymous
Poor and unemployed
4 years 11 months ago

Drew,

May be you are right about me. What do I know about this business? Unless one has done these kinds of deals with lots of zeros and complicated debt financing, there is no point trying to explain it to you.

Anonymous
Drew
4 years 11 months ago

So what are you suggesting? That a title defect pre-seller is somehow related to an inflated sales price? While I agree that the price seems suspiciously high, I don’t see the connection with the seller giving a SWD instead of a warranty deed.

Anonymous
Poor and unemployed
4 years 11 months ago

Here is food for the thought.

With about $25 million equity in the house, why would there be any title defect?

High priced lawyers and accountants are very useful in international finance, where assets are pledged in deals. Losses can be converted in to profits and profits are protected against taxes. Buyer is a BVI company.

Anonymous
Drew
4 years 11 months ago

For the third time, what does any of this have to do with a SWD instead of a WD? I still think you don’t understand the difference between the two.

Anonymous
Poor and unemployed
4 years 11 months ago

OK Drew You know it all. Enlighten us about your knowledge of “Special” Warranty Deed. Make it long and legal (Not copy / paste from google search). Also throw in some information on the interstate torts for good measure.

Anonymous
Drew
4 years 11 months ago

You obviously have no clue and just confirmed your ignorance. You said:

“Check the records before opening the bubbly! It was a special warranty deed. That should explain something to those who understand RE”

Warrants in deeds relate to title defects, dummy. Don’t make stupid comments if you have no argument to back up your claim. No wonder you’re poor and unemployed. I wouldn’t hire you to shovel shit.

Anonymous
Poor and unemployed
4 years 11 months ago

Drew, Drew, Drew

Didn’t I say it.

Unless one has done these kinds of deals with lots of zeros and complicated debt financing, there is no point trying to explain it to you.

Anonymous
seanjohn
4 years 11 months ago

Wonder when & for how much this home last sold?

Anonymous
Phantom of the Opera
4 years 11 months ago

Date Description Price % Chg $/sqft
04/28/2011 Sold $25,500,000 -20.3% $1,699
02/16/2011 Listing removed * $32,000,000 765% $2,132
03/13/2000 Sold $3,700,000 51% $246
08/07/1998 Sold $2,450,000 — $163

Anonymous
Jordan
4 years 11 months ago
Lol. Of course 13 star sold for more than twice 27 star did…and it is entirely justified. 13 star faces west and 27 star faces east. Now to a silly realtor who can’t afford either property that may not seem like a big deal. But it’s a huge deal and facing west makes the property at least 2 to 3 times more valuable. I have been in both properties and comparing them on sq foot is like comparing a warehouse to a palace. 27 star’s price is a land-value deal as the home needs to be torn down and rebuilt,… Read more »
Anonymous
Imo
4 years 11 months ago

The $45 Billion Genting Malaysia paid $236 million for the entire 14 acre miami herald property including the building. Herald is moving out in 2 years so the building can get torn down for redevelopment. Plans for a hotel/resort/casino. They are lobbying hard to get a casino permit for this site and the laws may be changed in the next 2 or 3 years. All I can say is wow, a world class casino smack in the middle of downtown miami’s arts district!

Anonymous
Joe
4 years 10 months ago

I guess it’s time for our annual “Urban Beach Weekend” discussion. I got blasted last year for saying it’s a low-class affair that has no place in Miami Beach, but the news reports this year make my position unimpeachable. It’s high time for Miami Beach to put an end to this “event” and tell these dregs to go elsewhere. It’s an absolute joke that people who pay millions to live at the Beach have to flee every year because of the havoc wrought by these “Urban Beach” thugs.

Anonymous
owneratinfinity
4 years 10 months ago
agreed — i forgot it was happening so by error i rode my bike through them on the way back from a long bike ride from ft lauder back to brickell – they sure made a hell a mess – i hope city of miami does not decide that brickell needs to start having the event – it was major trash event – i think it was worst this year… ====news report=== A Miami Beach commissioner on Tuesday called for a curfew to be in place for next year’s Urban Beach Weekend after two police-involved shootings broke out during the… Read more »
Anonymous
owneratinfinity
4 years 10 months ago
Anonymous
Miami2009
4 years 10 months ago

That is a real shame that these thugs are allowed to do these things every year. The police chief calls it uneventful?

Anonymous
Joe
4 years 10 months ago
One of the Miami outlets (CBS?) had a report yesterday that even “Uncle Luke” (Luther Campbell), who was one of the founders of Urban Beach Week, hasn’t attended the event in several years due to “too many thugs.” That seems like a good sign that the event has outlived its usefulness. (Oddly but perhaps not unexpectedly, Campbell blamed Miami Beach instead of the thugs. Campbell says MB needs to organize better events, such as a Mary J Blige concert, but that seems like B.S. Miami Beach doesn’t organize events to keep people from rioting during Art Basel or the boat… Read more »
Anonymous
George
4 years 10 months ago

Joe,
I’m not sure that the city can simply shut this event down since it doesn’t issue any special events permit for it. This weekend has no real structure, just different people promoting parties at clubs. I agree it negatively impacts the residents of the beach, however the challenge will be balancing the needs of the business community (clubs, hotels, parking lots etc who make a ton of money during this weekend) and those of the residents.

What Luke is advocating is a structured event supported by the city not organized by the city.
http://blogs.miaminewtimes.com/riptide/2011/06/memorial_day_weekend_fiasco_co.php

Anonymous
Poor and unemployed
4 years 10 months ago

I think we should not allow any criminal to enter or live in the city. Especially those who come here on Memorial day weekend. Let’s turn the clock back and bring back all those old folks who used to live in MB. Shut down the bars, restaurants and clubs.

How dare these criminals allow themselves to get killed with 100 shots in Miami? They should do that in NY or New Orleans bridge!

It is sad state of affairs when people jump to conclusion so quickly, when the dead person is not one of their own kind.

Anonymous
Joe
4 years 10 months ago

No one jumped to any conclusions. This event has had the highest number of arrests of any event in MB every year for the past five or ten years.

Anonymous
Poor and unemployed
4 years 10 months ago

Joe,

May be people should start asking that question? But they dont look like us so – who cares? Thanks god they are Americans unlike most in this city!

Shops, hotels, restaurants, clubs – the business community in general has no complaints but somehow hundreds of tourist get arrested on the streets not in the hotels, bar and restaurants. We never hear about riots, destruction of property – kind associated with such high number of arrests.

Anonymous
Drew
4 years 10 months ago
Both the police and the “tourists” are at fault. Memorial Day “tourists” behave like animals – wandering the streets (and refusing to get out of the way of cars), litter, fight, and other forms of rude and obnoxious behavior. And leaving shitty gratuities at restaurants. Show some class and act like civilized humans and there is no problem. On the other hand, the police need to show some restraint. They completely went overboard with the Collins Ave shooting. (2 days later the “found” a gun in the car! What a coincidence!) Couple the police abuse with several thousand blacks (who… Read more »
Anonymous
Poor and unemployed
4 years 10 months ago

Hey Drew

45 STAR ISLAND DR was just sold for $7.105 million. Any comments?

Anonymous
Drew
4 years 10 months ago

Yes, I do have a comment: Whether the deed was a warranty deed or special warranty deed has no bearing on the sales price.

Anonymous
Poor and unemployed
4 years 10 months ago

Drew,

Can you give us your expert opinion on the big difference in price of these two properties?

Anonymous
Drew
4 years 10 months ago

I never contended that there wasn’t something strange going on with the sales price of 13 Star Island. You’re the guy who claimed that a SWD had something to do with it, which is idiotic.

Anonymous
Poor and unemployed
4 years 10 months ago

Hello Drew,

So you do not have a clue but you do have a opinion!

Only in Miami! What a country!

Anonymous
gables
4 years 10 months ago

P&U, it appears you are the one who claimed conspiracy theory, not drew. tell us your conspiracy! that way i can be sure not to use star island to comp my future home!

Anonymous
Poor and unemployed
4 years 10 months ago

How about you explain how one home sold at $25 million and other for $7 million. Is the market going up or down? Or do you think these people are just too rich to care about $10 – 15 millions here and there.

Anonymous
Poor and unemployed
4 years 10 months ago

Are you Drew too? what other personalities to you have on this site?

Anonymous
gables
4 years 10 months ago

that is what i was asking you, since you seem to have all the answers! if i knew, i would have told you and not asked you a question!

Anonymous
Gixxer1000
4 years 10 months ago
Well from a quick look at things I’d have to say if anything there is something wrong with the 45 star island sale. The house is 5000 sqft smaller than 13 star and it’s facing south so its right by the bridge and all the traffic and has a view of the port. Further more 40 star island is listed for $27M and $29 star island is listed for $21M. 45 star was only listed for $9M so even the owners knew it was worth less. 30 star island is also listed for $9M and is an empty lot. So… Read more »
Anonymous
Gixxer1000
4 years 10 months ago
Anonymous
Joe
4 years 10 months ago

Hurry up, buy now! Units are going fast! There won’t ever be an opportunity like this again!

Anonymous
Gixxer1000
4 years 10 months ago
What a difference a year makes. Here is an unofficial update of condo supply from some MLS numbers I pulled of the net: Price Total/Average sales per month/months of supply Miami-Dade Total 10597/1513/7 under $200k 4337/1111/4 $200k-$300k 1728/151/11 $300-$400 1170/76/16 $400-$500 782/40/19 $500-$750 1018/54/19 $750+ 1562/82/19 Miami Beach Total 1696/206/8 Under $200 423/99/4 $200k-$300k 292/28/10 $300-$400 248/20/12 $400-$500 149/12/13 $500-$750 216/19/12 $750+ 378/28/13 So Miami-Dade went from 16 months of supply back in April 2010 when Lucas last ran the numbers and now it’s closer to 8 months. And Miami Beach went from 14 months down 8 months. Inventory in… Read more »
Anonymous
Poor and unemployed
4 years 10 months ago

WOW! Looks like sure shot! How many are you buying? No wonder they keep saying here that americans are stupid. They dont know how to make money.

At this rate, in next 8 months we will have no inventory!

Anonymous
Gixxer1000
4 years 10 months ago
You’re just as idiotic as you friend Joe. Either the market is completely busting or its shooting through the roof and you have to buy multiple condos. I’m just posting the numbers to show that the local market here is getting back on track. It’s funny a year ago the big argument is supply and Joe and others were yelling about how there was enough supply for 4 to 5 years and now that you start showing that the supply is getting down to manageable levels they act like you’re telling them they they have to rush out and buy.… Read more »
Anonymous
Joe
4 years 10 months ago

Only Gixxer 1000 can post numbers that say one thing and then claim they say another. His own damn chart, above, shows 4 months of supply in the bargain-basement “under $200k” segment but then 11, 16, 19, 19, and 19 months of supply in Miami and 10, 12, 13, 12, and 13 months in Miami Beach. That hardly looks like an “8-month supply” to me. It looks like one bargain-basement market that’s moving and five other segments that are essentially stagnant (and are WAY, WAY higher than historical supply norms, with shadow inventory still looming large as well).

Anonymous
Gixxer1000
4 years 10 months ago
You’re an idiot. I posted the information in the exact same format that Lucas did a year ago. There were 16,310 condos available with monthly average sales of 995 for 16.39 months of supply for the entire market. The total supply is an apples to apples comparison to a year ago. “but then 11, 16, 19, 19, and 19 months of supply in Miami and 10, 12, 13, 12, and 13 months in Miami Beach. That hardly looks like an “8-month supply” to me. It looks like one bargain-basement market that’s moving and five other segments that are essentially stagnant”… Read more »
Anonymous
Gixxer1000
4 years 10 months ago
Also I posted an article yesterday that Lucas didn’t approve about the high end market that you follow so much. Since I can’t link to the article here are the quotes I wanted you to see. “What’s happened in the last 60 days is almost all of the high-end market sold,” Butler said. “We’re really looking at an inventory shortage. The deals that have been sitting on the market for a while are now selling, for good prices and multiple offers. So it’s very encouraging.” “[The Miami market] is selling more condos over $7.5 million than we’ve ever sold in… Read more »
Anonymous
Joe
4 years 10 months ago
Gixxer said: “You’re an idiot.” — Great rebuttal! That U. of M. master’s program is paying off already. Anyway, I don’t care what some shill realtor says. If “almost all of the high-end market sold,” then why does your chart show 11, 16, 19, 19, and 19 months of supply in Miami and 10, 12, 13, 12, and 13 months of supply in Miami Beach in the segments over $200k? That sure as hell doesn’t look like a “supply shortage” to me. Some of those segments have supply that’s still 200 or 300 percent higher than historical norms, and that’s… Read more »
Anonymous
Gixxer1000
4 years 10 months ago
When you get used to talking with other classmates, professors and professionals its kind of hard to then switch gears and talk with a layperson with not much education about the subject. But anyways, that comment of inventory shortage was actually referring to the over $5M segment which I don’t have. I can tell you that in Miami-Dade there were only 92 condos available when he did his last condo supply update. At the time there were less than an average of 1 sale per month which turns out to be an 110 month supply.In Miami Beach there were 43… Read more »
Anonymous
Gixxer1000
4 years 10 months ago
“Some of those segments have supply that’s still 200 or 300 percent higher than historical norms, and that’s only if we pretend there’s no shadow inventory.” Do you actually know the historical norms for supply in the over over $5M segment, or any segment for that matter. You always cop out and say stuff like this. “Well were still higher than the average” but you never say what or where you’re getting that average from. The article did say we average 2.5 sales a YEAR in the $7.5M and over segment for the last 9 years (which were primarily boom… Read more »
Anonymous
gables
4 years 10 months ago
gixxer “The article did say we average 2.5 sales a YEAR in the $7.5M and over segment for the last 9 years (which were primarily boom years), and in the last 12 months we’ve sold 8. That means were now selling 3 times more than the 9 year average.” To even remotely justify using any statistical calc is appropriate under such a small sample set is obnoxious. It’s almost like providing the mean, median and standard deviation of a sample set of 1 number! You can make the calculation, but you better not read anything into it! but seriously gixxer,… Read more »
Anonymous
Gixxer1000
4 years 10 months ago
“but seriously gixxer, is the slowdown in foreclosures because the banks are better controlling the rate of REO properties back into the market with short sales? or is it because it takes nearly 2 years and judicial oversight for the foreclosure to be completed in florida? or is it because banks are tied up in foreclosure litigation which is stemming their ability to foreclose on a property right now? remember, a short sale is still a distressed sale.” It’s all of the above and that’s my point. With all the hassles with foreclosures banks are simply not going to even… Read more »
Anonymous
gables
4 years 10 months ago

gixxer, i don’t really buy into the theory distressed and shadow properties will flood the market either-unless another financial crisis hits us soon. but they will leak into the market, at not insignificant levels, for perhaps several more years. this is downward pressure on prices in general, and will make appreciation difficult for a while.

Anonymous
Gixxer1000
4 years 10 months ago

Here is a chart showing the change in median values for both condos and single family homes in Miami:

Since Case Shiller is a 3 month average and is current Jan-Feb-Mar I expect it to start going up in the next couple months as well.

Anonymous
gables
4 years 10 months ago

gotta love the 1Q2009 bottom in that chart!

Anonymous
Gixxer1000
4 years 10 months ago

Again gables that is all of Miami. Statistics still show that Downtown bottomed when I said which was 2Q2009. I don’t anyone one this site is actually concerned about the Homestead or Plantation.

Anonymous
gables
4 years 10 months ago

gixxer, then why provide the chart? what percentage of condos from that chart are from downtown?

show me a price index which showed downtown bottomed in 2Q2009. a price index is more definitive than the mean and median prices people have been producing. “statistically” numbers may have risen (it’s a game), but people are still buying units for similar prices to a year ago. just saying…

Anonymous
Gixxer1000
4 years 10 months ago
There is no price index for downtown and you know it but regardless the median price and sales volume has been incresing since 2Q2009. Call it a numbers game if you want but it doesn’t change the fact that prices are rising. You keep trying to say that its just Icon making the numbers go up but prices are going up in most of the individual buildings, especially in Brickell. People are paying more for units than they were in 2009. Drew and Infinity have shown this. Can you find a unit or two at certain buildings that sold for… Read more »
Anonymous
Gixxer1000
4 years 10 months ago

And here is a better chart showing active and pending listings:

Anonymous
gables
4 years 10 months ago

From the Miami Herald:
City to start enforcing pickup truck ban
http://www.miamiherald.com/2011/06/14/2266463/city-to-start-enforcing-pick-up.html

This cracks me up. Can’t park a $30k pickup truck, but i can park a $2k tricked out honda civic in my driveway overnight!

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