Market Stat Monday: 1010 Brickell

It has now been just over six weeks since 1010 Brickell opened its doors, sending the market into the flurry of interest and curiosity we have become familiar with when the neighborhood gets a new newest building. But does 1010 live up to the hype? Let’s have a look at the market after a few weeks and see…

Closings

Although Hurricane Irma put a hold on closings for two weeks in early September, 12 buyers were able to receive keys before the storm hit. Once the storm passed, things went back to normal and a total of 84 units have closed to-date with an average price of $411/square foot, according to the tax rolls.

Resales

Of the 84 units that closed, 34 have come back to the market as resales so far. None have found buyers yet, but the asking prices are:

– Studios: $480,000-$499,000
– 1 Bedrooms: $490,000-$649,900
– 2 Bedrooms: $729,000-$995,000
– 2 Bedrooms with private elevators: $825,000-$880,000
– 3 Bedrooms with private elevators: $1,300,000-$1,639,000
– 4 Bedrooms with private elevators: $1,479,000

When shopping in 1010 Brickell, make sure to look at the floor plan of the apartment you are planning to visit prior to the tour, as I did see several units with dens that were being sold as an extra bedroom. You will want to double check that the den has actually been converted.

For potential buyers who are financing their purchase, you will be pleased to know that 1010 Brickell is one of the few buildings in the area that has Fannie Mae Approval. This will make financing much easier and less expensive.

Rentals

So far there has been only one closed rental in the building, but there are at least four that have already found tenants and are waiting for move-in day.

The rental that has already closed was a 1778 square foot 2 bedroom/3 bath apartment on the 15th floor with a private elevator, a den and a partial bay view. The landlord had listed the property for $4,000 per month and received a full price contract.

The four that are waiting to close all have city views and are listed as follows:

– A two bedroom, three bath on the 37th floor for $3,400 per month.
– A one bedroom, two bath plan with a converted den on the 14th floor for $2,875 per month.
– A one bedroom, two bath with an open den on the 15th floor for $2,700 per month.
– A 28th floor studio for $1,800 per month.

Of course, since these four have not yet closed, we do not yet know the final lease prices but I expect them to be very close to the list price since owners are not very motivated to negotiate when they are among the very first listings in a brand new building.

One surprising factor that I will continue to monitor over the coming weeks is the fact that six weeks after opening, there are only 15 available rentals in a 389 unit building. I had expected to see three times that number! It could be because the closing schedule moves at a more leisurely pace in 1010 Brickell than in Related Group’s projects like Brickell Heights or SLS Brickell. Related Group typically closes 30-40 units per week until all have closed. According to the tax roll, 1010 Brickell is closing 10-15 per week.It could also be because more buyers are moving into their apartments, rather than leasing them out. Only time will tell.

For tenants who are hoping to move to 1010 Brickell, here are the price ranges as of today.

– Studios: $1,800 per month.
– One Bedrooms: $2,150-$2,900 per month. All of these have city views, and some have dens.
– Two Bedrooms: There are currently only two available. For a city view, $3,250 per month and for a partial bay view with a private elevator, $5,000 per month.
– Three Bedrooms: $5,250 per month with a partial bay view and private elevator.

To stay up-to-date with the available inventory yourself, you can visit our 1010 Brickell Rentals page to get real-time availability.

About 1010 Brickell

It isn’t just 1010’s status as the new newest building on the block that has the market so excited. The building also has the most expansive array of family-friendly amenities in the neighborhood, including play rooms for toddlers/little kids, climbing walls, an arcade, basketball court, bowling alley and more in addition to the expected state-of-the-art fitness center, spa, social room and hammam. Scroll through the photos below to get an idea… what do you think?

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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!

1010 Brickell Brochure by Sarah Elles Boggs on Scribd

The Full List Of Downtown Miami Area Condos With Fannie Mae Approval

Let’s talk about financing. Many people already know that financing in condos is far more difficult than single-family homes and very few buildings in Miami have achieved that coveted “Fannie Mae Approval”, but which ones did make the cut? Here’s our updated list with expiration dates of the approvals.

SLS Brickell (expires June 2018)
SLS Brickell almost didn’t get to be on this list. According to the executives at Related Group, the inspectors from Fannie Mae were under the impression that it was a condo-hotel... something that would disqualify the property from Fannie Mae Approval. After a site inspection, they could see that it is not a condo hotel. SLS Brickell is a hotel with a tower of residences on the top. They look the same, but work very much differently. Approved!

1010 Brickell (expires February 2018)
This is the first of two buildings who have their approval but are not yet completed. Although it is unarguably behind schedule, I’m really looking forward to see 1010 Brickell open. It is the first building I have seen in Brickell that has such a wide range of amenities for kids of all ages.

1010 Brickell is currently sold-out, but the Fannie Mae approval will help with people who are interested in resales.

Brickell Heights East & West (expires December 2017)
We have covered the Brickell Heights opening extensively and are so pleased with how it turned out. Three members of the Miami Condo Investments team have already signed up for Equinox and are loving the classes!

This is going to be the building for people who want to be in the middle of everything. It is right between Brickell City Centre and Mary Brickell Village, offering a host of entertainment choices. I have heard people who are concerned about the plans to build a 75 story tower called 18 on the lot directly to the north, but it is my opinion that this will not happen. I feel it is simply a sexy tower with approvals to help increase the land value. That’s a pretty common tactic in land sales, but we can talk more about it in another post…

LeParc at Brickell (expires January 2018)
If you’re the type of person who likes to be near the hustle and bustle of city life, but not necessarily right in the middle of it, Le Parc at Brickell is for you. It is a boutique condo that is walking distance to Brickell’s Financial District, but is also located behind Simpson Park. Simpson Park is a natural hammock  on the corner of South Miami Avenue and SE 15th Street and offers trails to experience the natural habitat of this area before the estates and high rises were here.

Fun fact: it is naturally MUCH cooler in the middle of Simpson Park than it is on the street.

Centro (expires February 2018)
This past Monday, we visited the market statistics for Centro and were amazed at how few transactions there were. This is a great opportunity for someone who Ubers everywhere (or Lyft if you’re part of the #DeleteUber movement). There are no parking spots included with the units, so this is for someone who wants a true city lifestyle. Aside from the lack of parking, the location and finishes are great.

Canvas (expires January 2018)
Now we’re going to skip North to the Arts & Entertainment district. Canvas is also still under construction and will need to extend their approval because the building is not quite topped off yet. I feel it will be closer to the middle of 2018 before these units are ready to close.

Crimson (expires June 2017)
If you’re in the market for a LEED certified waterfront condo, then you need to look into Crimson. You also need to hurry because their approval expires at the end of the month. No word yet on whether they intend to renew it.

Biscayne Beach (Expires December 2017)
With interiors by Thom Filicia, Biscayne Beach opened last month to rave reviews. They are currently 99% sold-out of their developer inventory and over have of the units have already closed. Two Roads Development (who is also developing the nearby Elysee) paid off their construction loan and are now sitting pretty as buyers begin to move in.

If you missed the developer inventory, we have listed a beautiful 3 bedroom, 4 bathroom plus den corner layout with south and east views. It is available with one of the best views of Miami, decorator ready for your personal touch at $1.75 million.

What Happens If A Buyer Cannot Close On Their Preconstruction Condo?

The spring and summer of 2017 are going to be an interesting time for Miami in a real estate sense. We are going to see a flurry of new condo developments opening, bringing thousands of new closings (and probably hundreds of new resale and rental listings).

Brickell Heights 01 and Brickell Heights 02 are set to open within the next month, 1010 Brickell will follow shortly thereafter (or maybe they will open before… the two projects are neck and neck). Up in Edgewater, Biscayne Beach is slated to open its doors any day now, followed by the first tower of the Paraiso District, Paraiso Bay. The four projects together total over 1,800 new condos that are set for completion this summer. The fall and winter will bring another flurry, but for now let’s concentrate on the openings that are closer. These projects are all effectively sold-out. They are a wild success for the developers! But, what happens if one of the buyers is unable to come up with the remaining funds to close?

During the sales cycle of these four towers, the developers were requiring staggered deposit schedules that totaled a 50% down payment prior to closing and the remaining 50% due at closing. Remember that the majority of these condo sold in 2014-2015. A lot of things can happen in 3 years that can change the financial situation of the buyers. There could be an argument between partners in a condo, divorce, death, health issues. There could be political problems, currency exchange rate troubles, economic hardship. A dictator could be elected. We all know that these things are going on around the globe and they are all very sad. But what happens if one of these factors affects a buyer’s ability to close? It isn’t as dire as some may fear. The buyers do have choices.

They can walk from their deposit

Everyone knows this one. If you put a deposit down on a contract and don’t complete the contract, you will lose your deposit. It is very straightforward, and it stings. These condos sold around $500-$600/square foot. If you figure Related Group’s signature 2 bedroom layout that is almost always 1,200 square feet, give or take, the sale amount would be around $700,000. That’s a $350,000 loss, and that is not ideal for anyone… but it’s an option.

They can close with a mortgage

Although condo financing isn’t easy in brand-new developments, there are banks that will finance preconstruction purchases at the time of closing. The challenge is that many of the buyers in these developments are foreign nationals, and those mortgages are more difficult. Some banks refuse to lend to buyers from countries that have political turmoil (looking at you, Venezuela). It’s not a racist thing, the banks are worried about the political climate and their ability to recoup the mortgage. If you have questions about which banks can finance buyers from different countries, let us know. We have a resource that can help.

They can close with a private mortgage

If traditional financing just isn’t a possibility, buyers could visit a private lender. These mortgages typically require very little documentation and are able to close very quickly because the lender is familiar with the local market, the project, and bases the approval on that. The downside of these mortgages is that they are extremely expensive. Expect to pay 3-4 points to the lender at closing as a fee plus astronomical interest rates. I’ve seen interest rates as high as 13-14%. If a buyer was attempting to close the signature 2 bedroom unit that we discussed previously, that would amount to $10,500 – $14,000 just as a closing fee. Then you could expect around $4,000 per month to go just toward interest. Again, not ideal but also better than losing $350,000 right out of the gate.

They could find someone to step in and close on their behalf

This is probably the most ideal situation for someone in a preconstruction condo bind. Developers typically frown upon contract flipping and there’s no guarantee they would approve it, but developers in today’s market are also not eager to hold inventory on a previously sold-out project. They want to take their money and go do something else until another build cycle opportunity presents itself.

We have already had several investors request opportunities to buy in the event that a preconstruction buyer cannot or will not close. If anyone is in a preconstruction condo bind, please contact us and hopefully we can work it out in a mutually beneficial way.

1010 Brickell Is Almost Complete

Brickell is very close to having a new newest building. 1010 Brickell is on track for completion in May. The crane and construction hoist have been removed, the painters are hard at work and the 50th floor pool landscaping is already installed.

Despite being a few months behind schedule (completion had been projected for December 2016), the building was a big success from a sales standpoint. The 387 units sold for an average of $650/square foot. We assume that all 387 have sold, because our requests for their close-out inventory have not been responded to.

The building was geared toward healthy living for active families, given the central location and span of amenities. The 11th and 12th floors feature:

• Indoor heated swimming pool with retractable glass walls for flexible access to the outdoors in any weather
• Impact-absorbing outdoor running track providing unparalleled views of the Miami skyline
• Tanning Sundeck
• Mini Golf
• Kids Indoor/Outdoor playground areas
• Children’s outdoor mini water park with cooling water spray
• Active indoor game room including games such as: bowling lanes, foosball, air hockey, table tennis, and arcade games
• Vending machines (ice cream, snacks, beverages etc)
• Modern Kids Recreation Zone – a two-story exercise and entertainment area designed to keep the little ones active and engaged in healthy pursuits like climbing, crawling, and other activities
• The Court – an area with half-court basketball, racquetball, and volleyball
• Indoor Mini Soccer
• Indoor Tennis Court
• Parent/child wristband system to allow the children to freely enjoy the common areas.

There is already one resale on the market, a 1,554 square foot 2 bedroom plus den with 3 full baths. It has terrace access from both bedrooms and the living room and a southwestern view. It is priced at just under $1 million, which works out to $643/square foot (less than the average pre-construction price!)

We haven’t seen any rentals offered as of yet, but do expect them to arrive as May draws closer. As a matter of fact, I expect this to turn out to be a very popular building for young families, who would appreciate the active amenities.

While 1010 Brickell is nearing completion, it won’t be the next newest building. Brickell Heights and Brickell Heights 02 are both on track to open in April, and will hold the “Newest in Brickell” title for just a few weeks before 1010 takes it. The next buildings to open will be SLS Lux and ECHO Brickell later in the year (or early 2018 since construction timelines often get delayed toward the end).