Vue at Brickell – Are Prices Finally Bottoming?

On May 24, 2007, I wrote a blog post entitled “Vue at Brickell – Overpriced or Insanely Overpriced?“. At the time, the average list price of condos available at Vue at Brickell was over $550 per square foot. As many of you now know, and as the blog post explains, the inflated list prices were a direct result of the rampant mortgage fraud that occurred in the building. Since that time, as more and more people became aware of the situation and as a large number of foreclosures in the building hit the market, prices at Vue at Brickell have come down like a ton of bricks.

There are now indications, however, that prices at Vue at Brickell may be close to reaching the bottom. Buyers are finally stepping in. Since the last week of January, there have been 7 condos at Vue at Brickell that went pending. With list prices of $190,000-$199,900 for 1 bedroom condos and $220,000-$249,900 for 2 bedroom condos, it makes sense that buyers are now beginning to accept the risks associated with buying a condo in a building that has a high number of foreclosures. It will be interesting to see the sales prices of these condos at Vue at Brickell once they close. It’ll give us a better indication as to the level of motivation of some of these banks.

Below you’ll find the best deals at Vue at Brickell:

• 1 Bedrooms
  • Unit 2111 – short-sale – $162,500
  • Unit 1710 – short-sale – $162,500
  • Unit 1211 – short-sale – $162,500
  • Unit 1413 – short-sale – $162,500
  • Unit 2307 – foreclosure – $205,000
• 2 Bedrooms
  • Unit 1303 – short-sale – $229,900
  • Unit 1505 – short-sale – $250,000
  • Unit 1304 – short-sale – $279,900
• 3 Bedrooms
  • Unit 3006 – short-sale – $357,000
  • Unit 3606 – foreclosure – $379,900

The mortgages of three of the four short-sale one bedroom units listed for $162,500 are held with the same lender. This may be an opportunity for an investor to grab all three for a bargain-basement price. There are currently only 8 condos available for rent at Vue at Brickell. Within the past 12 months, the lowest that a one bedroom has ever rented was $1,300 per month. The lowest that a 2 bedroom rented was $1,550 while 3 bedrooms condos bottomed at $2,500 per month.

Ten Museum Park Revisited

Ten Museum Park was one of the first major condo buildings in Miami to hit the market within the past year. Closings began at Ten Museum Park, almost nine months ago, on June 14, 2007. I thought this would be a great opportunity to revisit Ten Museum Park to see what type of activity its seen since then.

As of today, according to public records, Ten Museum Park has been able to close exactly 75 percent, or 150, of its 200 total units since closings began in June 2007. It’s been a long and winding road to reach 150 closed units. I wonder how long it will take to close out the last 50.

Let’s take a look at the active listings for sale at Ten Museum Park. There are currently 63 active listings in the building at this time.

• 1 Bedroom units (868 square feet)
  • 05 line (9 listings) – $355,000-$475,000
  • 08 line (10 listings) – $358,000-$560,000
• 2 Bedroom units (1,239 square feet)
  • 06 line (9 listings) – $458,000-$680,000
  • 07 line (6 listings) – $440,000-$690,000
• 2 Bedroom units (1,949 square feet)
  • 02 line (8 listings) – $785,000-$1,495,000
  • 03 line (7 listings) – $798,000-$995,000
• 2 Bedroom units (1,906 square feet)
  • 01 line (6 listings) – $895,000-$1,350,000
  • 04 line (6 listings) – $895,000-$1,385,000
• 4 Bedroom units (4,500 square feet)
  • Penthouses (2 listings) – $3,200,000-$3,400,000

There hasn’t been much resale activity since Ten Museum Park began closings. There’s been a total of 3 closed sales in the MLS since that time.

• Unit 1105 sold for $295,000 on January 3, 2008
• Unit 3408 sold for $350,000 on January 25, 2008
• Penthouse 4203, with 4,000 square feet, sold for $2,200,000 on January 31, 2008

Activity seems to have picked up a little, however, as there are currently 4 pending sales at Ten Museum Park.

• Unit 1107 was listed for $455,000 and went pending on January 30, 2008
• Unit 3706 was listed for $475,000 and went pending on February 2, 2008
• Unit 2704 was listed for $748,900 and went pending on February 7, 2008
• Unit 1901 was listed for $975,000 and went pending on February 2, 2008

I haven’t been to Ten Museum Park within the past three weeks but I have heard that the fitness center is finally under way. I’ve also heard that work has begun on the Clinique La Prairie Spa and that it should be completed in about six months. I think everyone would agree that these amenities are long overdue. I know of 3 buyers who have been patiently waiting for this work to get done. I’m sure there are many other buyers patiently waiting as well.

Coming Soon: Sushi Siam at Plaza on Brickell

Last week I noticed the above sign, “Coming Soon: Sushi Siam,” as I drove by Plaza on Brickell. This is great news not only for Plaza on Brickell but also the entire neighborhood of Brickell.

Sushi Siam is a very well known sushi restaurant located on Lincoln Road in South Beach. I find it very interesting that more and more establishments are deciding to expand their operation from South Beach into Brickell. A few years ago, Novecento, a restaurant and bar, made the expansion move and recently we saw Segafredo Cafe, a restaurant and lounge, make the move as well. It shows me that these establishments are quite confident that Brickell already has enough year-round residents to justify such an expansion. (I just wish Lime Fresh Mexican Grill would make the jump as well. I heard a while back that they committed to opening their third restaurant at Midtown Miami though.)

Eventually the commercial spaces found on the ground level of the new condo buildings in Brickell, such as Plaza on Brickell, will be a natural extension of Mary Brickell Village, with new retail stores and restaurants. That’s when we’ll really start to see the foot traffic in Brickell.

By the way, I was digging through some old pictures that I took in July 2005. Remember what Plaza on Brickell consisted of back then?