Nearly 80% Of Buyers At Reach Purchased As Investment
One year ago, we noticed a shocking yet not unexpected trend at Brickell City Centre’s Reach Tower. At that point, 277 of the building’s 390 residences had closed, and 30% of those had already come back to the market as rentals. We knew that a significant number of buyers had purchased as rental investments, but had not seen the exact figures. It was intriguing, and we have followed the numbers as the building continues to fill up.
And here we are. A year has passed and according to the tax rolls, 351 units have closed. Of those, 34 have come back to the market as resales, 191 as rentals, and 55 owners put their units up for sale and for lease. That leaves only 71 units to be used by the owners. According to the tax rolls, none of the owners had filed for the Homestead Exemption, so it appears that those 71 owners are part-time residents.
Over the coming days, we are going to be calculating the same figures for other buildings that recently opened. Do you think we will see the same trend throughout the marketplace, or is Brickell City Centre an exception?
Midtown 5 Announces 4,000sf of Wellness Space In Ground-Level Retail
Tenants of the newly-completed Midtown 5 will soon be able to refresh their look without leaving the building. Magellan Development Group has announced that they have signed retail lease agreements with “The Biostation” and “Omni Nails and Lash Lounge.”
The Biostation is a medspa that specializes in preventative medicine and counteracting the signs of aging to help replenish vitality, health and youth, according to their press release. Offering a highly- personalized, scientific approach to total wellness, the medspa features a wide-ranging menu of treatments administered by one of several doctors or registered nurses. The 2,716-square-foot space will serve as the biostation’s second South Florida location.
Omni Nails and Lash Lounge will outfit 1,415 square feet with all the necessities needed for relaxing pedicure and manicure services, as well as facials, eyelash extensions, permanent make-up and waxing. This all-encompassing salon will have expert beauticians on hand to customize the variety of treatments offered to meet clients’ needs.
Midtown Five offers studios, one, two and three bedroom residences ranging from 540 square feet to 1,500 square feet.
ECHO Brickell Gets Its Sign
Construction is moving right along at PMG’s super-luxury tower, ECHO Brickell this week, and the sign has now been installed. The logo is reminiscent of the building’s signature shape, filled with black glass tile and surrounded by slate. The awnings and lighting features are also being installed.
Construction began on the Carlos Ott designed tower at the end of 2014, and is expected to be completed at the end of this year. Earlier this year, we were lucky to receive a hard hat tour of the progress & the views, including the $42 million Carlos Ott Penthouse. Prices of available residences range from $1.9 million to $19.7 million including a handful of one-of-a-kind custom designed floor plans.
Related Companies Buys Brickell Heights Retail Space For $12.2M
I know what this sounds like, Related built Brickell Heights, so how could they sell the retail portion to themselves? What many people don’t realize is that Related Group’s luxury condo development division is only one portion of what its parent company, Related Companies, focuses on. They also have divisions for luxury rental developments, commercial development, even affordable/workforce housing. It is only natural that they should want to pounce on an amazing retail space in a thriving neighborhood that is poised for another growth spurt.
Yesterday, Related Group sold the 30,000 square foot retail space that was recently leased by Equinox along with the 6,000 square foot space that will soon be home to SoulCycle to Related Companies for $12.2 million.
“The closing of Equinox and SoulCycle units Brickell Heights is another step forward in our efforts to transform South Miami Avenue into a vibrant, pedestrian friendly corridor in the same vein as Lincoln Road. Brickell is thriving, and these closings show a long-term commitment to further establish the area as a bustling neighborhood to live, work and play. Our buyers at both Brickell Heights and SLS LUX are excited about these changes and can’t wait to start living the lifestyle,” said Carlos Rosso, President of the Related Group’s condo division.
Aside from the A+ location, the fact that both spaces have newly-signed long term leases with A+ tenants makes them among the most attractive retail investments in the neighborhood. The exact terms of the leases have not been shared.
Despite the high sticker price, it appears that Related gave itself quite a bargain when you consider the size of the space. With a total of 36,000 square feet of leasable space, Related Companies paid just $339/square foot. Just next door, 8,015 square feet of raw space is being marketed for $10.5 million, or $1,310/square foot. Since it is raw space, there is currently no lease income and it is offered for almost $1,000/square foot more than Related Companies paid!!
Also this week, a Spanish investor paid $1,000/square foot for another A+ rated retail space with an A+ tenant. This transaction is the La Petite Maison space in BrickellHouse, which sold for $5.2 million. Related Companies got a very nice deal indeed!
Market Stat Monday: How Many Buyers Actually Pay Cash vs Financing?
Photo by Lucas Lechuga.
In the not-too-distant past, our real estate market was in a state of financing drought. Even if a buyer was prequalified, the chances of a mortgage making it out of underwriting with a clear to close were slim to none. Listing agents would many times refuse to show their listings to buyers who intended to use financing because the likelihood of the deal going through was so slim. This was during the recovery of the 2008 market crisis, and we have come a long way.
Banks have since loosened their purse strings and relaxed their underwriting guidelines, leaving more opportunity for the mortgaged masses… but how much of our current market do they make up? We took a look at all of the 772 resales that happened during the first half of 2017 in Brickell, Downtown, Midtown and Edgewater and found that financed purchases comprise about half of the transactions and sales volume. Check out this interactive graph that displays our findings.
Aside from the number of transactions and sales volume, we also found that only 14 of the 397 cash transactions were valued at over $1 million, and 23 of the 365 financed transactions were valued over $1 million. Naturally, none of the FHA financed transactions hit the benchmark since these loan limits are capped far below.
Are you surprised by any of these findings? How do you think the trend will continue through the rest of the year and into 2018?
Filling Station Lofts Offers 2 Months Free On A 2 Year Lease
The Arts & Entertainment District’s Filling Station Lofts is pulling out the big guns in order to lure long-term tenants. As their Summer Special, they are offering two months’ of free rent to those who sign a two year lease in the building.
To be clear, this does not mean that new residents will simply pay their security deposit and receive keys with no additional money due for 60 days. When buildings offer free rent, the cost of the month’s rent is broken down by however many months are in the lease contract. That broken-down amount is offered as a discount on each monthly rental payment.
So, let’s say you sign a two year lease for $3,500/month. Your discount is $7,000, divided by 24 months. That works out to $292/month, so your monthly rental payment is $3,208.
The Filling Station is a very unique building, offering true industrial New York-style loft units. They can be used as live/work spaces or purely residential. The lofts have 18 foot ceilings and views of the Downtown Miami skyline, or views of Midtown/Wynwood. Pets welcome up to 60 pounds.
Available inventory and prices change frequently, so let us know if you are interested.
Epic Hotel & Residences Is Wrapping Up Its Repair Project; Prepares To Reopen Residents’ Pool
At long last! The building repainting and balcony repair work at Epic Residences is drawing to a close and the resident’s pool is preparing to reopen. In two emails to residents this week, the building’s management office announced that the work is coming to a close and gave an update on the reopening of the pool.
Email 1 on July 18:
C&S Paint has finished working on your balconies. Please inspect them, prior to placing your furniture back on the balcony. Please look for any discoloration, excess stucco, cement, or paint that is on or around your balcony. If you find anything, please take a photo and respond back to this email. Your report will be forwarded to C&S Paint. They will correct the issue.
Email 2 on July 18:
C&S Paint will soon be partially done with the Condo Pool deck. They will be cleaning and prepping two pools for use. At this time the Hotel has closed their pool deck except for the weekends. They will open the pool deck starting Saturday morning and close Sunday evening. Our pool deck will open in two weeks depending on weather. We apologize for the inconvenience this has caused and thank you for your patience.
Let’s hope the weather stays nice so that the residents can once again enjoy their pool by the end of summer!
OJ Simpson’s Former Miami Home Gets A Fresh Start
While OJ Simpson waits to find out whether he will get a fresh start, the house he bought in 2000 in order to get a previous fresh start, is getting a fresh start. After his famous 1995 murder acquittal, he moved to Miami to live “a quieter life,” purchasing the home at 9450 SW 112th Street in 2000. As everyone knows, the quiet life didn’t work out for Mr. Simpson and he went to prison in 2008, later losing his quiet Kendall home to foreclosure. Tomorrow, he will find out whether he gets another fresh start via parole hearing, but his former home is already well on its way to a new life.
The home is actually quite lovely, although lacking character today. The house flippers who bought it out of foreclosure have done well to remove any hint of the home’s famous former owner, leaving a blank slate for the new owner. It was originally built in 1953 and renovated in 2014-2015, so has very good bones with contemporary finishes and fixtures.
Despite being located on busy Killian Parkway, the home sits on a large 1.65 acre lot, which allows a feeling of privacy. The lot also has many mature palm trees, a half basketball court and a poolside guest cottage. It was purchased via foreclosure auction for $513,200 in 2014 and was listed in November of 2016 for $1,475,000 but has been reduced to $1,299,900. The jury is still out on what the investors spent to remove every trace of OJ from the place… what do you think?
Paraiso District Construction Update: Paraiso Bay Closings Set To Begin September 2017
The Paraiso District is now 97% sold and on the verge of opening its first building. Here is a breakdown of each tower with current photos of their progress…
Paraiso Bay – Although previously announced as “Sold Out”, we have received word that one unit has come available. This one is an 05 line with a direct bay view. It has 1,326 square feet with 2 bedrooms, 3 baths and a den. It is being offered for $934,900.
We had previously heard that the building was set to open this month, but opening day has been pushed to September. Delays at the end of the construction process are pretty common, so we’ll be sure to stay abreast of any changes.
Paraiso Bay Homes – Although not as heavily publicized as the towers, the Bay Homes are probably my favorite phase of the complex. They are located directly across the driveway from the Paraiso Beach Club and directly under the pool deck for Paraiso Bay and GranParaiso (with their own entrance). They are townhouse-style beach homes with an average of 4,000 square feet and 3 or 4 bedrooms. There are currently 3 remaining that are priced between $1.9 million up to $2.4 million.
Paraiso Bayviews – The most affordable tower is also nearly sold out, with an anticipated opening of January 2018 after topping off in April. There are now 5 condo residences available and 7 penthouses. The prices range from $420,000 for a 1 bedroom plus den with a garden view to $650,000 for a 2 bedroom with sunset/skyline views. In the penthouse levels, remaining opportunities range from $630,000 to $1.6 million.
One Paraiso – In our most recent construction update, One Paraiso had just topped off with two opportunities remaining… a 1,680 square foot 3 bedroom, 3.5 bath with bay and ocean views for $1.45 million and a 4 bedroom, 4.5 bath penthouse with 2,850 square feet and bay/ocean views for $2.85 million. Both remain available with opening day projected for February 2018.
GranParaiso – The final tower to be completed is also the one with the most inventory to choose from. GranParaiso has currently reached the 46th floor of 53 total. We should see top off early in the fall and final completion in the Spring of 2018. There are 18 condo residences available, ranging from $960,000 for a 2 bed, 2 bath plus den with bay & ocean views, up to $1.88 million for a 4 bed, 3.5 bath plus den with the same view.
There are also four remaining penthouses from $2 million to $3.1 million.
For specific unit numbers and prices (if not listed in this post), just send us a message. We’re always happy to help. As for the Paraiso Beach Club and Amenity Complex, they are both coming along nicely and scheduled to open just in time for the first residents’ move-in.
Live the Luxury Loft Life: Inside The Ritz Carlton Residences Miami Beach’s Loft Residences
One of the most ambitious redevelopment projects I have seen is preparing to open in a few months, The Ritz Carlton Residences Miami Beach. For those who aren’t familiar, the project is a redevelopment of the Miami Heart Institute, which was shuttered in 2004 after it was purchased by Mt. Sinai.
For years, nobody knew what would become of this eyesore on a great waterfront lot. Due to building regulations, the structure could not be torn down and rebuilt at the same size. In order to keep the height and size of the structure, all they could do is redevelop the existing structure. It took until 2012 when Lionheart Capital stepped in to propose a new Ritz Carlton designed by famed Italian architect, Piero Lissoni. Why not, right?
Well, here we are in 2017, the project is getting ready to open within the next few months, and 70% of the 126 residences have been spoken for. There are still 4 remaining loft residences with double height ceilings and increased feeling of privacy, let’s have a look at these plans…
Loft 220
3 Bedroom | 3.5 Bath | Den
3,342 square feet
$2,827,000
This plan is a corner apartment that has southern exposure with a private plunge pool and summer kitchen. One of my favorite aspects of this plan is the bedroom and den upstairs, making it a great guest suite.
Loft 224
3 Bedroom | 3.5 Bath | Den
3,778 square feet
$3,964,000
This is the last remaining loft with a direct view of Lake Surprise. It also has a private elevator and all of the bedrooms are upstairs, leaving the downstairs perfect for entertaining.
Loft 218
3 Bedroom | 3.5 Bath | Den
3,292 square feet
$2,925,000
Another of the lofts with southern exposure, Loft 218 also has the plunge pool and summer kitchen on the terrace and guest quarters upstairs.
Loft 217
4 Bedroom | 4.5 Bath
4,033 square feet
$3,065,000
This is the last available four bedroom option, although the fourth bedroom could also be converted into a study. It also has a junior master suite upstairs and extra space on the terrace.
