Biscayne Beach’s Ultimate “Sandcastle In The Sky” Asks $9.5 Million
While doing their pre-construction sales, the developer of Biscayne Beach used the tagline, ‘Sandcastles in the Sky,’ and now they have released the details of the ultimate one. Penthouse 7 sprawls over 7,500 square feet of interior space with soaring ceilings, tons of natural light and views of practically all of South Florida.
It has 4 bedroom, a den, 5 full bathrooms and 2 powder rooms. In the master bath, there is a private sauna and the rooftop boasts a private pool. The developer is offering it decorator-ready for $9,453,900. Have a look at the photo preview and let us know what you think!
Downtown Miami Set To Unveil Miami’s First “Complete Street”
In an effort to improve transportation, the City of Miami is beginning to adopt the “Complete Streets” program in downtown and the first one is set to open this week. By creating dedicated lanes for cars, public transit, bicycles and pedestrians, more people will be able to be moved in the same space and time, while being safer and more convenient.
The first “Complete Street” is set to open this week, with a ceremony on Thursday at 10am on the corner of SE 1st Street and SE 2nd Avenue (at CENTRO). If you are unable to make it to the ceremony, you can already see a preview of the setup. The high visibility lane changes are already in place. The lane painted red is reserved for busses and the lane painted green is reserved for bicycles. Cars will now only use the center lane and bicycles are no longer allowed on the sidewalk.
Do you think the revamp will help to alleviate congestion and safety?
A Look at the Largest Non-Penthouse Floor Plan at Marinablue
They don’t build ’em like they used to is a phrase often said these days when comparing today’s condo floor plans to those of yesteryear. Nowadays, a 2 bedroom floor plan encompasses 1,000 to 1,300 interior square feet, up to 1,500 if it includes a den. Back in the Golden Age of Real Estate development (circa 1980s), it wasn’t uncommon to find a 2 bedroom floor plan with upwards of 1,800 interior square feet (e.g. Villa Regina #T105 built in 1982). While gone are those days, let’s rejoice in the fact that present-day developers, while albeit trying to maximize every square inch they can, still tend to sprinkle in a few larger floor plans throughout the building to appease the “throw-back Thursday” crowd. Take unit 5405 at Marinablue for example. It is one of just 21 unique, over-sized 2 bedroom floor plans in the building. In fact, it is the largest and the only one of its kind that exists in entire building. Per developer floor plan, unit 5405 is a 2 bedroom + den/2.5 bath unit with a whopping 1,784 interior square feet. It also has 223 square feet of balcony, 10-foot high ceilings with floor-to-ceiling glass windows, and sweeping views of the Atlantic Ocean, Biscayne Bay, and Downtown Miami skyline. Below are the property photos for those who would like to have a look-see. It recently hit the market for $789,000.
Which Miami Condo Developments Are On Highest Ground?
The threat that climate change presents to Miami is as hot of a topic as it is a polarizing one. With increasingly frequent flooding due to storms and the moon/tide cycles, many of the locals have grown familiar with the low-lying hazards in the neighborhood. A summer storm wouldn’t be complete without the dramatic shot of a newscaster standing outside the Publix in Mary Brickell Village with water up to their knees, gawking at drivers who splash by, many of whom end up with water damage to their pricey rides. The intersection of Brickell and 13th Street is another spot that overflows quickly.
After the storm we went through last week that flooded the underground parking garages at Brickell City Centre plus all of Mary Brickell Village, forcing shops to close for a day and a half, I started to wonder which buildings in the area are on higher ground? Some may be surprised to learn that the Downtown area is not flat. There are small, but valuable hills that make certain buildings more secure from the floodwaters. I did a little bit of research and found this very interesting topographical map that is fully interactive and mapped the buildings in our area. The vast majority of the buildings sit between 0-3 feet above sea level, but here are the ones on higher ground…
Simpson Park Area
On the south end of the Brickell Financial District but on the north side of South Brickell is Simpson Park. It is situated on a small hill that crests at the intersection of SW 1st Avenue and I95 at 30 feet above sea level. Le Parc at Brickell is the highest condo development in our service area at 20 feet above sea level. Nearby, Infinity at Brickell also takes advantage of this hill at 10 feet above sea level, but it drops off quickly. SLS Brickell measured 3 feet above sea level.
Because of the contour of the elevation, Vue at Brickell and Axis at Brickell were all showing up as 7 feet above sea level, leaving Millecento and the rest of the surrounding buildings at 3 feet.
North Brickell
All of the other buildings in Brickell are between 0-3 feet except for one small incline at 5th Street that puts 500 Brickell’s East Tower on slightly higher ground (7 feet).
Downtown Miami
The wall of towering skyscrapers along Biscayne Boulevard in Downtown has been affectionately dubbed the “Biscayne Wall” in real estate and architecture groups for some time now, but there could be another reason for it. There is a small increase in altitude along Biscayne Boulevard, leaving Bayfront Park at 3 feet above sea level and all of the condo developments from 50 Biscayne to Marquis Residences at 7 feet above sea level. This includes Vizayne North and South, MarinaBlue, 900 Biscayne Bay, One Thousand Museum, and Ten Museum Park.
Edgewater / Arts & Entertainment District / Midtown
As can likely be expected, none of the buildings in Edgewater are higher than 3 feet above sea level… but the grade increases relatively quickly as you go farther west (by Miami standards anyway). The Arts & Entertainment District’s new project, Canvas, is 7 feet above sea level, and industrial loft or live/work space fans will be pleased to hear that Parc Lofts and Filling Station Lofts are both built 10 feet above sea level.
Midtown fans will also be pleased to know that the entire neighborhood, including Midtown 2, Midtown 4, Midblock and the new Hyde at Midtown are all 10 feet above sea level.
Final Thoughts
If you would like to play with the interactive map on your own, you can do so here. Do the findings make you feel better or worse about our situation?
Record-Breaking Sale at Jade at Brickell Bay
After dozens of showings and nearly six months on the market, I’m pleased to announce that Jade at Brickell Bay #4107 has sold for $1.85M, the highest priced sale ever for a 3 bedroom condo in the building (excluding penthouses and bay lofts). The record-breaking sale amounts to $869 per square foot. To put this sales price into perspective, last month, tennis sensation Andy Murray sold his 4 bedroom condo, located on 45th floor of Jade at Brickell Bay, for $703 per foot.
Unit 4107, a flow-through residence with 2,130 interior square feet, was recently updated with new tiled flooring in the living areas and balconies, new kitchen counter top, refaced kitchen cabinets, soffit lighting in the living room, and motorized shades on all windows. The sellers purchased the property in 2012 for $1.39M.
Dramatic Four Story Marquis Penthouse With Rooftop Pool Seeks $13.9 Million
If you’re interested in trophy properties that are high in the sky, prepare yourself. The dramatic upper penthouse at Marquis Residences came back to the market yesterday with a $5 million price cut and every inch is awe-worthy.
Spanning over 8,000 square feet through the 64th-67th floors, the custom-designed property boasts 4 bedrooms, 4 full baths and 3 half baths. As you exit the private elevator, you are greeted by a waterfall in the foyer. Once inside, illuminated stairs flow through the four levels of splendor, up to the 67th floor private rooftop pool.
Only three other available Downtown Miami area condos dare to approach the level of grandeur seen in this Marquis penthouse. Just two buildings south of Marquis, Zaha Hadid’s One Thousand Museum has listed a 10,000 square foot residence for $20.7 million that is currently under construction and should be delivered in 2019. Down in Brickell, three combined penthouse units covering 8,800 square feet at the Four Seasons Residences are listed for $25 million and just next door is Carlos Ott’s Echo Brickell. It isn’t currently marketed on the MLS, but the nearly completed development will feature a duplex penthouse custom designed by Carlos Ott himself is seeking $42 million and is expected to be delivered by early next year.
Marquis PH6401 was purchased in 2010 by an American businessman for $4.2 million. The owner worked his way up from the ground level at his father’s defense logistics company that he had started with just 3 people over 30 years ago. After taking over the CEO seat in 2003, he continued to grow the company until it was ultimately sold to Honeywell for $230 million, according to a profile in the Alexandria Times. Judging from the listing photos below, it seems he has just as much design sense as he has business sense, because this place is truly amazing.
After digging into the numbers, I’m really starting to see some solid trends among these new buildings. The developer made off flush, closing on all but a handful of the units for an average of $587/square foot, or $183 million as reported by The Real Deal. Nearly 80% (77% to be exact) of the pre-construction buyers are now either trying to sell or lease their properties, and nobody has claimed their homestead exemption.
Looking at the resale market, the outlook is pretty grim (but don’t get worked up, the rental market is better, just scroll down if you’re looking for rosy news). There are currently 68 active listings for sale, and only 2 have sold on the resale market so far. The MLS shows 6 total sales, but 4 of them were developer sales. If you figure the months of inventory based upon all closed sales combined, there are 91 months of inventory. If you only consider the true resales, that number jumps to 272 months of inventory! Either way you figure it, that is far more inventory than we’ve seen so far.
Of the apartments that did sell, again we are seeing that the sellers are not budging far in their negotiations. The developer sold their 4 listed apartments at an average discount of 4% and garnered $595/square foot. Open-market resales received 94% of their listing price with an average of $499/square foot. Although both investors garnered far less for their units than the developer, that’s not to say they both lost money.
Apartment 2508
– Originally purchased in September 2016 for $742,900. If you figure a 1.5% developer fee, that nets a $754,000 buy-in.
– The property resold in April 2017 for$620,000. If you figure the seller paid the standard 6% commission, they netted $582,800 in the sale.
– The overall investment lost the investor $171,200 (unless there are hidden factors that we can’t pull from the MLS and tax roll).
Apartment 2101
– Originally purchased in August of 2016 for $527,900, netting $535,800 after assuming the 1.5% developer fee.
– The property sold in May of 2017 for $595,000. Assuming the 6% commission, the net sale was $559,300.
– This transaction left the investor a $23,500 gain, or a little more than 4%.
Final Thoughts
Am I saying that purchasing in The Bond on Brickell is a bad idea? Absolutely not. The building turned out very nicely, with high quality finishes and thoughtfully chosen amenities. Rilea Group was also smart to purchase the air rights over the small office building next door. I see it as SLS Brickell’s not-so-garish cousin. If that is your taste, then it is a great time to get a great deal and a lovely home for years to come, just don’t buy in thinking you can flip the property for a hefty profit, because you will be disappointed.
Now it is time for the good news. The rental market is very stable, with only 20 active listings currently. The building has been leasing up at an average of 18 units per month (142 for the year so far), leaving just over 1 month of inventory for tenants to choose from.
Despite the low inventory today, the average days on market is listed as 64 days. It is common to see new buildings offer a glut of inventory shortly after the investors close on their units. Everyone wants to find a tenant and fast. The lease prices drop for awhile until the majority of that inventory is absorbed and then the prices and days on market stabilize.
This trend is evident in the rental history of The Bond over the last year. Studios have leased for as little as $1,350/month during times of high inventory, but now command between $1,900-$2,350/month. One bedrooms have been as low as $1,800/month, but now are leasing between $2,300-$3,250. Two bedrooms were as low as $2,400/month but now are $3,300-$4,500. Three bedrooms were once $4,200/month, but the only one available today is $6,500.
This is not the time for opportunistic tenants to try and over-negotiate lease prices. There is very little on the market and the landlords are only negotiating to 94% of their asking price… not a huge drop.
So, while the resale market is pretty bleak, the landlords and owner/occupants in The Bond are poised for success!
Resales At 1010 Brickell Hit The Market As Opening Day Approaches
The amenity-rich, Fannie-Mae approved and much anticipated 1010 Brickell is finally preparing to open, bringing 387 new neighbors to Brickell. Although the closing letters have been sent out with anticipated closing dates in August, we have been informed by the developers office that those dates could be delayed into September if the TCO does not arrive this week or next.
As was to be expected after what we have seen in other buildings that opened over recent months, resale listings have already started to appear on the market. There are currently 10 active listings, priced between $571,000 for a 932 square foot 1 bedroom on the 31st floor, up to $1.8 million for the 3 bedroom penthouse. Almost half of the available resales are in the 01 line, the big northeast corner plan with 3 bedrooms, a den, 3 baths and over 2,100 square feet. They are listed for between $1,479,000-$1,639,000. You can compare all of the floor plans here.
Another thing that grabbed my attention is the pricing of these listings compared with the price list that we happened to save when the building opened sales in 2013. Many of these sellers are offering their units far less than they were offered from the developer, which leads me to wonder whether they REALLY need to sell, or whether the developer gave them a REALLY great deal.
We will be watching the closings very closely and scheduling a tour as quickly as possible so that we can figure out which it is! In the meantime, check out this amenity list! Wow!
Year-Long Downtown Miami Roadway Project Begins This Week
It is time to prepare alternate routes in and out of Downtown Miami, because FDOT has started its year-long roadway project in the area. Over the next year, they will update the storm water drainage system, re-pave and re-stripe the roadways, updating signage and traffic signals, and extend the exclusive bicycle lane from SE 3rd Avenue to SE 3rd Street.
Residents can also look forward to a more pedestrian-friendly roadway with updated curb ramps, more pedestrian push buttons, high-emphasis crosswalks and a pedestrian refuge island at the I-95 entrance ramp.
In order to complete the work, they will need to establish permanent work zones that reduce the number of travel lanes, but have committed to leaving at least one lane open for traffic to pass.
The Downtown Miami DDA suggests the following alternative routes to avoid the construction zone:
Use Flagler Street to N Miami Ave to get on I-95 or to Brickell
NE 1 Street to N Miami Ave to get on I-95 or to Brickell
Flagler Street to SW 2nd Ave to get on I-95 or Brickell
Go North on Biscayne Blvd to get on the I-95
Go North on NE 1st Ave to get to I-95
Go west on NE 3rd Street to NW 3rd Ave to get on I-95
The Inside Scoop On The Ongoing Drama At Quantum On The Bay
A building that was once known for its sweeping bay views and convenient location is quickly becoming known for its incessant drama and infighting, and there are no signs of a slow down at Quantum on the Bay. In a letter to residents of the South Tower, Sue Nelson (the new South Tower board president), details her grievances with the way the building has been run and we have to admit that she has a point.
Two years ago, as a new member of the South Tower condo board, Sue was reviewing the “2014 Actual Expenses” spreadsheet and noticed two line items that seemed “off.”
1 – Water Expenses: While $1,000 was budgeted for the year, the actual amount paid was $13,480! After further investigation, it was discovered that the overage was for bottled water for the management office. That works out to over $1,000/month for bottled water, that’s a lot of water!
2 – Housekeeping Coverage: While the management company has 10 housekeepers on payroll for Quantum, whose salary expenses are passed to the owners of the building, there was still a $26,000 charge for “Housekeeping Coverage.” This was a fee that was paid to a separate housekeeping company to provide additional housekeepers on an “on-call” basis at a higher hourly rate than the full-time staff earns. To complicate matters further, it appears that the housekeeping company in question is owned by the partner of the former North Tower condo board president, who was in office at the time of the expense.
In an effort to remedy this double expense, Nelson proposes to outsource all of the housekeeping department to one company. According to an estimate she received, this would save the owners upwards of $100,000 per year, while providing better equipment.
Communication
As we saw in last month’s spat, the board members are also displeased with the Master Board’s insistence that they remain the sole source of communication between the boards and the residents. The South Tower Board has now regained the ability to send messages directly to its residents, but from what I understand, the North Tower has not.
Condition of the Building
Once everything is settled, the owners would ultimately like to see the building maintained more efficiently. They shared photos of the valet area, that once had shrubs and greenery in the planters along the entry, but are now filled with cement and rocks. The tiles are chipped and the ones that were replaced were not replaced by tiles of the same color, leaving a mix and match look as the first impression when visitors arrive at the building. They feel it looks cheap, and they are right.
Do you think the building owners and the Master Board will be able to settle their differences without (another) lawsuit?
