Closings to Begin at Opera Tower Very Soon

November 25, 2007 by Lucas Lechuga

Opera Tower - The First Big Default in 2008

Word reached me tonight that the crown top at Opera Tower has been illuminated. I have also been informed that the swimming pool and hot tubs have been filled.

This suggests to me that closings at Opera Tower will begin very soon, although closings were originally scheduled for September. However, when I drove by Opera Tower this past week, the street-level commercial spaces still looked to be at least one month away from being finished.

I’m not a fan of this development. I’ve made it known in a previous post that I think that this development will have a high default rate for various reasons that are disclosed in that post. I think it is likely that we will see a majority of these condos owned by the bank that loaned money to the developer of Opera Tower by April 2008.

What do I know though? I’m no real estate oracle.

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28 Comments on "Closings to Begin at Opera Tower Very Soon"


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Anonymous
8 years 9 months ago

I agree… I don’t think Opera Tower will do to well…

Anonymous
8 years 9 months ago

*too well

Anonymous
perez
8 years 9 months ago
I was in the area alot this weekend. I don’t know much about the building, but here are some observations. The illuminated top looks pretty good, and the oval shape draws attention. With the completion of Opera Tower, and 2 other massive buildings to the north (Quantum?), and Paramount Bay a little further up, this area will definately transform. The waterfront Park in front of these buildings is a great asset, and with all these new residents in the area, the park will be very well used. This area is very convenient to South and Mid Beach, and of course… Read more »
Anonymous
guillermo
8 years 9 months ago

what porcentage of closings the developer needs to have to pay the bank constraccion and messanine loan????.

Anonymous
8 years 9 months ago

Guillermo,

I think banks typically lend on 60-65% of the construction costs.

Anonymous
RA
8 years 9 months ago

Not convinced on this building either. Looks somehwat nice but it’s interesting such a supposedly moderate to higher end building would use steel railing on the balcony vs glass. I woul expect the steel on 1800 Plaza and or Cynegi but on a tower liek this and a higher price point you would expect glass on the balconies.
1800 Club on the other hand which is very comparable looks much better in term sof use of glass and the water features that are already outside the building.

Anonymous
Bill
8 years 9 months ago

It’s a moving target, Guillermo. Keep in mind the monthly cost of carrying the debt, plus paying the condominium fees and taxes on the unsold units. Time is money!

Anonymous
Bill
8 years 9 months ago

Lucas,
Has the court made a ruling on the case brought by Miami attorney Michael J. Schlesinger on behalf of buyers at Midtown Miami? I believe that this was filed in July and as you’ve reported, the result could have broad ramifications. I have seen nothing reported on this. Thank you.

Anonymous
8 years 9 months ago

Bill,
I haven’t heard anything yet concerning that class action lawsuit. I had lunch this afternoon with a condo litigation attorney and he hasn’t heard anything lately either.

Anonymous
Proletarian
8 years 9 months ago

Excellent site. I invested in Renzi’s Blue on Coral Way and it has been a nightmare. Do you know about it?

Anonymous
8 years 9 months ago

I predict not a single condo closes on this project. Overpriced and far outstripped on the merits by other condos in the area that you have highlighted in the recent past

Anonymous
laura
8 years 9 months ago

I disagree. this building will have a lot of default units but I think it’ s a quality construction with very interesting architecture and it’s waterfront. the original buyers will do good on a long term if they can hold to their investments for the next 4-5 years

Anonymous
8 years 9 months ago

Do you think any of the buildings that line the Miami River will just never be completed? And the banks will have to sell them as is to someone else to come in and finish the job?

Anonymous
Brian
8 years 9 months ago

The buyers will be just as happy and successful as those at Blue…..haha

Anonymous
8 years 9 months ago

Candela,

I think the buildings on the Miami River will be completed but I think that area will have considerably high default rates.

Anonymous
mark
8 years 9 months ago

I believe Opera Tower is built by the same developer as Club at Brickell Bay. If i’m right about that, stay FAR FAR away! it’s easy to hide cheap construction for the first year. it takes time for shoddy pipes, cheap faux wood finishes, and discount HVAC equipment and other mechanicals to start falling apart.

Anonymous
8 years 9 months ago

Mark,
Yep! Same developer.

Anonymous
Paolo
8 years 9 months ago

Where did you get the 60-65% figure?

Anonymous
8 years 9 months ago

Staqndard Development Biusdget is 20 % Hard Costs, 80% soft costs so the developers really only put up about 20% to make the building and the other 80% is financed by the bank and also offest it by increasing deposits

Anonymous
8 years 9 months ago

The Opera is going to be FORECLOSURE GALORE, Its buildingslike that that will keep me in business, hats off to the developer.

Anonymous
Nancy
8 years 8 months ago

I understand that the law firm of D|K Philips filed 13 lawsuits in court last week. I also understand that this may be a class action and have a good case to help get people out of thier contract. I do not know thier phone number but I know they have a website: http://www.condominium911.com. I am going to join the litigation becuase I believe you are all correact in your predictions.

Anonymous
Alessandro
8 years 8 months ago

Nancy is the class action for Opera Tower?, I have a unit there, I can close, but at this point if there is a way out, I would prefer my money back!

Anonymous
Nancy
8 years 8 months ago

Alessandro,

Call David Philips, Esq, at (305) 403-0777. From what I understand he going to get 9 or 11 people out of thier contracts. But from what I heard you must act immediately. I read about David Philips in 3 newspaper articles in the last couple of week alone. He is your best bet.

Anonymous

[…] By the way, the blog post in question has been edited to take away the incorrect facts, but can still be found here:  Closing to Begin at the Opera Tower Very Soon. […]

Anonymous

[…] blogger, Lucas Lechuga, was slapped with a $25M law suit today for steering his readers clear of a specific condo development on his blog, MiamiCondoInvestments.com. Lucas has been finding out the hard way that his honest […]

Anonymous

[…] I did not have my license hung with EWM at the time that I wrote the post. Does this mean that all corporations should now be held accountable for the blog posts that their […]

Anonymous
JT
8 years 5 months ago

What do potential renters in these new buildings need to take into consideration before signing a lease?

Anonymous
8 years 5 months ago

JT,

I have the same question. Despite allegations of shoddy HVAC (my biggest fear), I would be interested in renting an 02 unit for a year and seeing whether I like it — and whether the price is right — for possible purchase.

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