Hyde Midtown Offers Leaseback Program On Remaining Inventory
Image by Carlos Rosso
Hyde Midtown is on the home stretch toward opening day and making moves to ensure they achieve sold-out status prior to then. To set themselves aside from the competing buildings, Related Group is now offering a leaseback program to investors on select units. This guarantees the investor a 2 year lease at $3/square foot, starting from the day of closing.
The program appears to be working. Between the last quarter of 2016 and the first quarter of 2017, the project moved from 78% sold to 80%. As of today, 85% of the units have sold. To be fair, the increase in sales is not only due to the added incentive. The last quarter of 2016 was uncharacteristically slow. It all started with Hurricane Matthew distracting people from buying condos. As soon as Matthew passed, the storm that was the election delayed a rebound… then the holidays. Thankfully 2017 has brought increased traffic and the leaseback program is something that investors appreciate, as evidenced by the 20+ sales that have gone down in the last 2 months.
For buyers who are not investors, they also have programs that offer flexible deposit structures and a credit at closing for the first two years of HOA payments.
The project is co-developed by Related Group and Dezer Development and is set to open in October. It will bring 410 apartments, Hyde music lounge & piano bar, cuisine by SBE’s world renowned restaurant group, and a luxury spa and fitness center, among other amenities. We were able to go for a photo tour on the day they topped off. Have a look at the finishes here.
The units at Hyde Midtown are competitively priced as well. The remaining units include:
Two story penthouse units with sunset views from $754,900.
One and two bedroom units with sunset views from $459,900.
Three bedroom corner units starting at $859,900.
Do you think they will ultimately sell out before opening day?
Call For Offers Issued On Miami Beach’s Historic Bath Club
A call for offers has been issued on Miami Beach’s historic Bath Club, according to an offering memorandum we have received. The property was built in 1926 as an oceanfront estate, then converted to a private club. It is comprised of over 15,000 square feet of interior space with a total of 5 acres of land and 500 linear feet of ocean frontage at 60th Street and Collins Avenue.
While the terms of the deal are not defined, a new owner would have several options of income streams including:
A club operation with membership plans. A charter remains that allows up to 200 members and their families. This would allow income through equity memberships, initiation fees, annual dues and food/beverage..
Private event space. The property is currently being used as this function. They have recently hosted events for corporations including HBO, Macallan, Pandora and Bacardi. A one night event currently runs $13,500 per night, give or take some depending upon the season and availability.
Restaurant or lounge. The large commercial kitchen is designed to accommodate simultaneous banquet service and restaurant operations. Several of the rooms are well-suited for dining and lounge areas with a historic setting and the food and drink service can run until 5am.
Cabana sales. There are 60 cabanas on site, of which the usage rights of 14 have been sold at prices up to $90,000. The new owners could sell the remaining cabanas or lease them to generate recurring revenue.
The club was purchased in 2000 for $10 million and a portion of the lot was developed into The Bath Club condominium in 2004. Prices of the condominiums currently range from $1.6 million up to $8.4 million, or $1335/square foot. Owners of the condo units have access to the shared amenities of the club.
Offer terms and letters of intent are due to the seller by May 19 at 5pm. The seller anticipates that the offers will fetch north of $25 million. Please contact us for the full offering memorandum.
Zaha Hadid’s One Thousand Museum Featured In Upcoming Documentary “Impossible Builds”
A documentary is in the works for PBS and Discovery called “Impossible Builds,” and Zaha Hadid’s One Thousand Museum is being featured, according to an announcement from the developer. There will be only five projects in the world to be featured with the recurring theme of delving into the making of complex structures throughout the world.
One of the most unique features of the 62 story condominium tower is the 5,000 piece exoskeleton that is sourced from glass fiber reinforced concrete. The exoskeleton arrives in shipments from Dubai and installed onsite.
“It is an honor for the project to be spotlighted in this important documentary film,” said Louis Birdman, one of the co-developers for One Thousand Museum by Zaha Hadid Architects. “We could not think of a better way to immortalize the forward-thinking project to a global audience across continents through this important documentary.”
Other projects to be featured will include the thinnest skyscraper in New York City and a resort villa in Dubai. The documentary is set for completion in 2018 and will be broadcast to approximately two billion viewers worldwide, according to the production company.
The tower is currently just past the halfway point of vertical construction. When completed, it will reach 709 feet and is the only residential skyscraper in the Western Hemisphere that was designed by Zaha Hadid. Here are some of the latest construction photos.
Inside Biscayne Beach
Today is the day! Biscayne Beach is officially open! They received their TCO on April 21, so were able to begin closings today. Here is a sneak peek from our tour as well as from the developer representative’s social media posts. How do you think it turned out?
The lobby.
The pool.
The Biscayne Beach Club.
There are 13 poolside cabanas.
The kitchens.
I was really impressed with these super hight floor-ceiling windows.
The units are being delivered decorator-ready, so the new owners can now choose their finishes.
Market Stat Monday: 1800 Club
Last week, we had the first official installment of the Market Stat Monday series. We checked in on Quantum on the Bay, which is in the process of overcoming some legal battles. One of our readers suggested that we skip next door this week and look into the less dramatic yet equally beautiful 1800 Club, so here we are.
For those who are new to 1800 Club, it was built in 2007 and has 469 apartments within 42 stories. It is a full-service building, pretty much standard to the area. The amenities include pools, gym, 24 hour doorman, valet, and a party room. The building is quite lovely and is also well-kept. It was actually one of the few buildings in the market to earn FHA approval, so FHA buyers could purchase there with low down payment loans. That approval is notoriously difficult for condo buildings, and sadly it expired for 1800 Club in 2014, but the fact that it was achieved speaks volumes of how the building is run. Today, the FHA certification has not been renewed, but there are conventional mortgage programs that allow up to 95% financing on purchases in the building.
There are currently 32 active listings for sale, so 7% of the total units are available for purchase. The average price per foot ranges more drastically than most buildings. The lowest-priced unit is listed for $295/square foot and the highest price per foot is $511/square foot. If you’re curious why the gap in pricing is so large, it is because the units in this building have a very different mix of layouts and views. Apartments on the east side of the building have direct bay views, apartments on the west side have sunset views and those located on the south side of the building have partial bay views but also look into the nearly-completed Aria on the Bay. Also, all of the one bedroom plans have either the west view or south view. There is one line that has two bedrooms and a west view, but most of the two bedrooms have south or east views. Because the layouts and views are so starkly different, I’ve decided to pull the statistics for each segment of the building.
WEST FACING UNITS
There are currently 7 units on the market that face west. These have beautiful sunset views and the asking price averages $380/square foot. The least expensive is apartment 2902, an 841 square foot 1 bedroom that is offered for $278,900 and includes a $2,000 credit toward new floors (the wood laminate that is now in the apartment is pretty damaged). The least expensive two bedroom is on the 31st floor and is offered for $429,900 with marble floors. The most expensive two bedroom is the same floor plan on the 36th floor for $525,000 that has been completely remodeled.
On the west side, we have seen 3 closed sales since the beginning of the year. These have closed at an average of $323/square foot and the sellers have received an average of 96% of their asking price. The least expensive was unit 1602, which is a 1 bedroom that sold for $260,000. I found the listing photos of this unit to be very misleading. The agent took photos of the bay view from the pool deck but did not specify that they were not taken from the unit itself. An uneducated or underrepresented buyer could easily be led astray with photos like this. Tsk tsk.
There are not any sales listings that currently have pending contracts. I have a feeling we will see some price reductions from those who need to sell.
SOUTH FACING UNITS
The south side of the building is interesting because Aria on the Bay is being constructed next door, so many of the sellers purchased their units when the view was very much different. The view is still pretty, just the water view is not as expansive as it once was. There are currently 8 available sales at an average price per foot of $343. The only closed sale this year in this section of the building was unit 2212, which is a 1,374 square foot 2 bedroom layout that sold for $435,000 ($316/square foot).
Just a few floors up, unit 2712 is currently awaiting closing and was listed for $324/square foot. Since buyers are settling for 96% of the asking price, it looks like we’re due for some price reductions before things start to move.
EAST FACING UNITS
The east view at 1800 Club is really a money-maker. All of the plans on the east side are 2 bedroom layouts and 11 are currently available at an average price of $488/square foot. The actual listing prices are $489,000 up to $620,000.
Something interesting that I found is that the only closed sale on this side of the building was unit 1807, which closed for $545,000 ($445/square foot). The lowest price of the available units is unit 1403, a 2 bedroom with 1,142 square feet for $489,000 ($428/square foot). DEAL ALERT!!!
There are two 3 bedroom units available, but I really don’t have anything to compare them to. One is a furnished 01 line that is on the 8th floor (below the pool deck). The other is a 3,082 square foot duplex loft on the pool level. They are listed for $975,000 and $1.29 million, respectively.
Overall, the building is looking at 27 months of inventory based upon closed sales rates. While that’s not a great number, it is far healthier than some of the other buildings we’ve dug into over recent weeks. There have been a total of 6 closed sales in the overall building with an average price of $328/square foot. With 3 closings on the west side, one on the east side, one on the north side and one that was an outlier (it was on level 3 with a very different floor plan), the less expensive west side is the busier side currently. Since there is nothing pending over there at this point, it will be interesting to see what the summer brings us.
WHAT ABOUT RENTALS?
Just like the buildings we’ve seen over recent weeks, the rental market is still healthy at 1800 Club. There is just under 4 months of inventory on the market (20 active listings and 24 have rented since the beginning of the year). The listings are fetching 99% of their asking price and the listings are staying active for just under 60 days on average.
Now as an investor, you’re probably thinking that 60 days is a long marketing period but also consider that many of the listings are activated 30 days before the previous tenant vacates. The paperwork process of moving a new tenant into the building typically takes 3 weeks, so the 60 days on the market statistic isn’t really so bad.
One bedrooms are fetching $1,750/month and up right now, two bedrooms with west views are bringing $2,450/month. The only north facing unit that is available is an enormous 1,810 square foot 2 bedroom that is available for $3,500/month. East views are available for $2,800/month.
From an investment standpoint, I’m giving 1800 Club a gold star. Mortgages are available in the building, layouts are attractive to tenants (and owner/occupants), the building is well-run, the finishes are nice, the location is top notch and the views are beautiful. Pretending that we purchased that $260,000 one bedroom (the least expensive recent sale) and leased it for $1,750/month (the least expensive 1 bedroom recent rental), it would work out to a 4-5% return rate after expenses. Those are really great numbers for the area!
