I’m going to go out on a limb and say that the east-facing units at Ten Museum Park will be selling 10-15 percent above where they are now by year’s end. I know, I know…the Miami condo market is in a rut. But that’s just my point. The east-facing units at Ten Museum Park are not condo units. They are lofts with 20-foot ceilings. Of all the high-rise developments in Miami, both existing and under construction, only Ten Museum Park can rightfully call themselves an ultra-luxury loft building.
Of the 200 units at Ten Museum Park, 73 of them have 20-foot ceilings with floor-to-ceiling windows. You will see that in future months there will be a premium paid for these units versus other units, not only in this building, but other buildings throughout Miami as well. I’ve already seen a lot of demand for these units in the past two months as some have been discounted due to original buyers not wanting to close. I think by the end of October the discounted units at Ten Museum Park will be nonexistent. The discounted loft units will be long gone by the end of September.
The amount of demand for units at Ten Museum Park has surprised even me, a big advocate of the development. The loft units at Ten Museum Park are truly something unique for Miami. They offer loft living combined with true luxury and gorgeous unobstructed water views, all residing in a neighborhood that, in my opinion, will be the best in Miami within the next five years.
Parc Lofts is a loft building in its truest form, but it is an industrial loft with minimal water views from higher floors, and offers no luxury. I’m a huge fan of that development as well though because it offers something very unique to the Miami market. Star Lofts, which will begin closings shortly, offers lots of luxury but resides in a neighborhood that does not even come close to the neighborhood of Park West. The prices are much higher as well. I think we’ll see a large percentage of defaulted units there. Infinity at Brickell isn’t quite as luxurious, nor does it have the unobstructed water views that the east-facing lofts at Ten Museum Park can offer, but it is probably the closest loft development to Ten Museum Park that offers the kwan: views, luxury, neighborhood and best investment dollars too.
Much of the luxury at Ten Museum Park lies in what it has to offer above other Miami developments. Primarily, it has the Clinique La Prairie spa which is based in Switzerland. By many, it is considered the best spa in the entire world. People from all over the world have been flying to Switzerland to enjoy the lavish spa treatments for which Clinique La Prairie is well known. Some of those treatments promise to slow down the aging process. The Clinique La Prairie spa at Ten Museum Park will be the first U.S. spa with their name associated.
Secondly, Michael Capponi’s name is associated with Ten Museum Park. For those not local to Miami, the Michael Capponi name is synonymous with the abbreviation V.I.P. He can get you into any party, any restaurant and any event that is well attended. Residents at Ten Museum Park will be able to count on Michael Capponi to get them V.I.P. accommodations to any social gathering that is worth attending.
I think those two aspects alone rise Ten Museum Park to the forefront of all other Miami developments. However, Ten Museum Park is also a boutique building with only 200 total units. Most other developments in Miami have well over 400 total units. There are only 6 units per floor at Ten Museum Park. The east-facing units share one bank with two elevators with one another. The units residing on the west side of the building share a bank with two elevators which accommodates four units. This is another good reason to be on the east side of the building.
Marquis – The Fourth Luxury High-Rise Building in Miami’s Park West Neighborhood
I’ve been getting a lot of interest in Ten Museum Park from both local and out-of-state buyers. Most of them inquire about the developments in the immediate vicinity to Ten Museum Park, such as 900 Biscayne Bay and Marina Blue to the south, and Marquis to the north. One can get a good idea of how beautiful 900 Biscayne Bay and Marina Blue will be when completed by looking at the current progress in development. Marquis, however, probably won’t be finished until the middle of next year and, as can be seen in the picture above, much is left to one’s imagination. (The picture was taken July 7, 2007).
I wanted to share some photos that I took of the Marquis sales center back in 2005 to show people what the building is supposed to look like once it is completed. Marquis is an ultra-luxury building and, if I remember correctly, prices ranged from $700,000 to $15M. It will have 306 ultra-luxury residences on floors 15-67 as well as a 10,000 square foot spa/fitness center and boutique hotel aspect to it with 56 hotel rooms on floors 3-14. The architect behind Marquis Residences is world-renowned Arquitectonica, which also did Marina Blue and a myriad number of luxury condo buildings throughout Miami.
There is definitely a big price difference in units located on the north side of Ten Museum Park versus those residing on the south side. Most of this is due to the close proximity that Marquis lies to Ten Museum Park. I think the spread in prices will narrow once Marquis is completed and buyers see that having a building that will be one of Miami’s most luxurious addresses isn’t such a bad thing.
Miami Condo Index – Brickell Key – August 2007
Welcome to the third installment of the Brickell Key Condo Index. I have included a few additional statistics to provide a more comprehensive view of the market. This change will be implemented in the Brickell and South Beach Condo Indices in September. I will now report the number of available listings, pending sales and closed sales in each building, as well as express the number of available listings as a percentage of the overall units in each. I have done away with the sold-to-listed ratio since that statistic has not revealed much insight into the market. It can also be easily calculated with the figures that I provide if someone wishes to track that statistic.
The average price per square foot of condos sold in the past six months in Brickell Key has dropped this month to $437.34 versus $442.69 in July. The weight-adjusted average has dropped to $433.97 from $439.02. Brickell Key has proven to be a much more reliable source as to the state of the market in Miami than Brickell. I have yet to find any closed sales that indicate mortgage fraud in Brickell Key as I have in Brickell. This is not to say that mortgage fraud has not occurred in Brickell Key, but I haven’t found any since I began tracking the market in June.
Isola – 770 Claughton Island Drive | 33131 | $471.85
One Tequesta Point – 888 Brickell Key Drive | 33131 | $442.33
St. Louis – 800 Claughton Island Drive | 33131 | $451.18
Three Tequesta Point – 848 Brickell Key Drive | 33131 | $480.92
Two Tequesta Point – 808 Brickell Key Drive | 33131 | $431.99
As mentioned in the introductory paragraph, I will now include additional statistics each month. The first number beside each building name represents the total numbers of active listings in that building. The number to the right of that, in parentheses, is the number of currently listed condos in each building expressed as a percentage of the total number of condos. The third number represents the number of pending sales in the building while the fourth is the number of closed sales within the past month. Pending sales is a leading indicator and should reveal, in future months, when the condo market begins to rebound.
Brickell Key One – 20 (6.33%) | 4 | 1
Brickell Key Two – 49 (12.41%) | 0 | 0
Carbonell – 57 (20.07%) | 3 | 0
Courts Brickell Key – 41 (12.85%) | 2 | 1
Courvoisier Courts – 58 (21.32%) | 1 | 0
Isola – 53 (17.67%) | 2 | 0
One Tequesta Point – 23 (7.96%) | 2 | 1
St. Louis – 9 (6.72%) | 0 | 1
Three Tequesta Point – 20 (8.40%) | 1 | 0
Two Tequesta Point – 25 (9.29%) | 2 | 0
As you can see from the statistics above, there were only four closed sales in Brickell Key within the past month. This reveals a slow market but the 17 pending sales indicate that the following months should prove to be more active if 70 percent of the pending sales actually close. This is assuming that the pending sales are scheduled to close within the next 60 days.
I’d love to hear some feedback regarding the latest statistics provided. I hope the additions shed new light into the Miami condo market. I’m particularly curious to see the number of pending sales in Brickell when I publish the Brickell Condo Index for September.
Now That’s What I Call a View – Penthouse Condo at Santa Maria
Scanning through MLS listings a few weeks ago I came across an extraordinary condo for sale at Santa Maria. It is a 5 bedroom/6.5 bath condo with an amazing 6,300 square feet of interior space and a total of 3,250 square feet of terrace space. The views from this penthouse are breathtaking, to say the least. In my opinion, this is the best luxury condo currently available for sale of all Brickell condos. The price tag on this baby is a cool $5.6M.
The following description accompanies the listing:
Eclectic sophistication at Santa Maria. Unsurpassed panoramic views from the downtown skyline to Key Biscayne & the Atlantic Ocean. This luxurious 6,300 SF private penthouse boasts the largest curving terraces: 3,250 SF total. The 5BD, 6.5 Bath split floor plan affords maximum privacy for family living. Floor to ceiling glass walls, marble floors. Motorized window treatments & lighting, plasma TVs & surround sound, custom built-in bar with 2 wine coolers. A lavish master suite with his & her baths, walk-in closets & office. Secondary bedrooms with Ensuite marble baths & walk-in closets. Fully equipped kitchen with Snaidero cabinets and 3 parking spaces.
Click here to view the listing information and other pictures of this 5 bedroom/6.5 bath Penthouse condo at Santa Maria.
Short-Sales – Short of Spectacular
Everyone has heard that short-sale and foreclosure listings have increased dramatically in the past 12 months. I’ve found that, as of late, two to four new short-sale listings will appear in the MLS for each neighborhood in Miami per week.
I’m a huge fan of foreclosures but not such a big fan of short-sales, as of right now. I think in about six months things may change, however. I’ve found that the big banks just aren’t ready to play ball yet. Maybe they are just too optimistic about the state of the real estate market. Within the past two months I presented two offers on short-sale condos that were about 15 percent under the lowest comparable sold sale in the building. Both were rejected and the banks countered with figures that were very close to what they were owed. In both cases, what they were owed was much more than what had recently sold in those two buildings.
Banks need to realize that lending practices were lousy, at best, in recent years, and that what is owed to them is a pipe dream. Prices have already come down 20-30 percent from the height of the market here in Miami and Miami Beach. Many project that prices will come down even more. Yesterday, someone emailed me that “Your first loss is often your best loss”. I feel that more banks need to think along these lines. The banks ready to play ball now will be much better off than those holding out for greener pastures. As the saying goes, “Greedy pigs get slaughtered”.
From my experience, however, it does seem that the smaller banks do understand the state of the market and are more willing to negotiate terms. Perhaps, it is not their understanding but rather their eagerness to stay afloat. I think in the next six months, as pressure is added by stockholders, big banks will be much more favorable in their attitude towards short-sales.
The Fate of Prices at Vue at Brickell and The Club at Brickell Bay
For months I’ve been writing about the rampant mortgage fraud that has occurred in certain buildings located in Brickell such as Vue at Brickell and The Club at Brickell Bay.
The August Brickell Condo Index revealed that over the last six months Vue at Brickell had closed sales with an average price per square foot of $522.37 while The Club at Brickell Bay sold at an average price per square foot of $723.35. Both averages have been inflated as a result of the mortgage fraud that has occurred in these two buildings. Both figures seem outrageous to me since both are non-waterfront buildings and, by most, would not be considered top buildings in Brickell.
It is inevitable that in upcoming months both figures will come down drastically. Both have a lot of short-sale and foreclosure units that are currently listed. For example, Vue at Brickell currently has 8 condos that are marked as either short-sale or foreclosures. The Club at Brickell Bay currently has only three but I suspect that many more will arise in upcoming months.
One bank-owned property at Vue at Brickell is listed at $325 per square foot while another is listed at $343 per square foot. These represent an almost $200 per square foot reduction compared to what has sold at Vue at Brickell over the last six months. That is a difference of over 35 percent. Keep in mind also that these are the list prices. They will ultimately sell for less. These transactions will bring the averages down to a more realistic figure. Anyone who purchased a condo in Vue at Brickell about a year ago won’t be able to refinance for many, many years. This will lead to more foreclosures which will bring down the average even more.
The best price per square foot currently offered of the foreclosure or short-sale units at The Club at Brickell Bay is $471. That is a difference of $252 per square foot when compared to what has sold in the past six months, or a little over 34 percent. I feel that there is a lot more room for this figure to drop. There are just too many other brand new non-waterfront units that will be coming onto the market in Brickell within the next 12 months that offer much better prices than those offered by some of the existing Brickell condo buildings that were riddled with mortgage fraud.
My prediction is that a year from now Vue at Brickell will have an average price per square foot of around $325 for units sold over the preceding six months while this figure for The Club at Brickell Bay will be around $375. Of course, this is just an average, so some will sell for less while some will sell for more. I don’t think this will be the bottom though for condos at The Club at Brickell Bay. They will likely plateau around $350 per square foot. The latest foreclosure and short-sale listings shed new light as to the fate of prices at Vue at Brickell and The Club at Brickell Bay.
I feel that other non-waterfront condo developments in Brickell are in jeopardy as well. A lot of people are talking about the thousands of new units that will be coming onto the market in Brickell within the next couple of years but many fail to mention that only two, Epic and Icon Brickell, are bayfront. The rest are either riverfront or non-waterfront buildings. The bayfront buildings will have a slight downward adjustment in prices but will fare well overall. Once those two developments are completed there will only be one bayfront parcel of land left for development.
One Miami – 2 Bedroom/2 Bath Short-Sale Listed at $329,900
I just noticed a 2 bedroom/2 bath short-sale at One Miami that is priced at $329,900, or $282 per square foot. My August Brickell Condo Index revealed that condos at One Miami have sold for an average price per square foot of $450.94 over the past six months. A 2/2 located directly three floors above the short-sale unit sold for $489,500 on April 26, 2007.
I highly doubt, however, that the bank will accept an offer even close to the $329,900 list price. They definitely won’t pay the 4 percent commission that the listing is advertising. I spoke with the listing agent to find out if the list price is close to what the bank is owed. He said no, the bank is owed much, much more. It is probably a waste of time but it will be interesting to see at what price it ends up selling. Some banks are ready to play ball and some still aren’t. My guess is that it will end up being repossessed by the bank.
Villa Regina Auction – A Much Better Result
The Villa Regina auction that I attended this afternoon had a much better turn out and active bidders than the Neo Vertika auction I attended yesterday morning.
Villa Regina is a very well known building residing on the southern end of Brickell Avenue. It was built in 1982 and recently had a special assessment to update the common areas and the marina behind the building. Much of the work recently started and should be completed in upcoming months. The modernization project will also restore the impeccable reputation that Villa Regina once had.
Villa Regina is well known for its spacious floor plans. The 2 bedroom/2 bath unit up for auction today has 1,895 square feet of living space and a large terrace. The condo also has a nice bay view from within the unit and the terrace. I posted the pictures here a few weeks ago. As you can see from the pictures, the condo is in need of about $100,000 to $120,000 worth of work to make it into an A+ unit. The condo can easily be converted into a 3 bedroom.
The bidding started at $100,000. I attended the auction with a client who was looking to fix it up and sell it one to two years down the road. The bidding quickly jumped to $200,000 and then $300,000. $400,000 was called out but no takers. Then $350,000 was called out and quickly taken. We were out once that bid was made. It slowly proceeded north from there.
The winning bid was $385,000. The guy got a great deal, in my opinion. A highly upgraded unit six floors higher is currently listed at $699,900. That condo will probably sell for around $620,000 to $650,000.
My client and I were both hoping for a turn out much closer to yesterday’s auction for the condo at Neo Vertika. But as my client said, “Brickell Avenue is Brickell Avenue, living on it has much value”. I couldn’t agree with her more.
900 Biscayne Bay – Sneak Peak at a Luxury Miami Preconstruction Condo Building – Pictures & Video
Last week I was afforded the opportunity to walk through an almost finished townhouse unit at 900 Biscayne Bay. It was priced, from the developer, at around $945,000 (I don’t remember the exact figure but it is very close, if not exact). The pictures and the short video clip that I shot of the unit are found below.
First, let me provide a little background.
Last weekend an out-of-state couple contacted me to find them a luxury second-home condo. They wanted a great deal but didn’t want to skimp on quality or views. They wanted to buy into a luxury condo building that was either brand new or one that was relatively new or recently remodeled that offered luxury finishes, amenities and views.
In one short day, most of which was scheduled on a 1-2 hour notice, I was able to show them a unit at Jade Brickell, Emerald at Brickell, Imperial at Brickell and The Palace. I was also able to get them a guided tour of Ten Museum Park and Latitude on the River. We also visited the 900 Biscayne Bay sales office just before closing hours. They had a strong interest in a townhouse unit at 900 Biscayne Bay and wanted a guided tour of the actual unit. One was arranged for the following afternoon.
To say the least, they were offered a thorough look at the Miami condo real estate market on their first day looking at Miami condos. They got to see more luxury condo buildings than most people living in Miami have seen in their lives. They were due to leave back home early Wednesday morning. The aforementioned showings all occurred last Monday from 12:30pm to 6:30pm.
We picked everything back up early Tuesday morning with a visit to Carbonell in Brickell Key. They loved everything about the building and the unit that we saw, but the water views off the 2 bedroom were good but not fantastic.
I then took them to Marina Blue where they fell in love with the unobstructed water views and great deals that could be obtained there.
They still had an appetite, however, to take the tour of the townhouse unit that they were interested in at 900 Biscayne Bay. Our next stop was the 900 Biscayne Bay sales office so we could don our hard hats and goggles and trek to the unit.
Fortunately, I brought along my trusty digital camcorder along to take pictures and shoot as much video as I could in our short stay at the 900 Biscayne Bay townhouse that we visited. The following pictures and video clip are from a townhouse unit on the 7th and 8th floors at 900 Biscayne Bay.
Again, this is a townhouse unit at 900 Biscayne Bay. Not all units at 900 Biscayne Bay will offer such bi-level floor plans and high ceilings. In fact, most of them do not.
The townhouse that we saw was a 2 bedroom/2den/3 bath unit. I felt that the bedrooms were pretty small. They should have removed one of the dens and added that space to the master bedroom. The finishes, however, were just as impressive as they were in the sales center. 900 Biscayne Bay should be completed towards the beginning of 2008.
Neo Vertika Auction – Going, Going…Not Gone?
A few weeks ago I mentioned that a 2 bedroom + den/2 bath unit at Neo Vertika would be auctioned on August 20, 2007. I attended the auction this morning.
A single family home in Palmetto Bay was auctioned first and about 5-6 people participated in that auction. There were probably about 35-45 people in the room but most were spectators. The highest bid for the Palmetto Bay house was $476,000. After that auction was over, the room pretty much cleared out.
Only 2 people participated in the Neo Vertika auction. It seemed as though they were unfamiliar with Neo Vertika but participated for a few rounds simply because no one else was bidding. I think it was a bad idea to have the auction in Palmetto Bay. The highest bid came in at $135,000.
Before everyone gets excited, let me tell you that it is almost certain that the bank will reject that bid. I spoke with the auctioneer afterwards and he told me that it is very, very likely that it will get rejected. He said that the bank is looking for something in the $300K’s.
The unit at Neo Vertika is a 2 bedroom + den/2 bath with 1,255 square feet of interior space and a balcony that spans the length of the unit. It has 20-foot ceilings with floor-to-ceiling windows. The unit is on the 29th and 30th floors, faces south with views of Biscayne Bay and comes “decorator-ready”. Neo Vertika was completed in August of last year.
It isn’t too late to grab this 2 bedroom condo at Neo Vertika. Give me a call if you’re interested in acquiring it.
