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!
Which building should we look into next week???
Dog Park Coming Soon to Margaret Pace Park
Every dog has its day…a day at the dog park that is! At least that could be the case for your furry, four-legged friends once the new dog park opens in Edgewater at Margaret Pace Park.
This morning, while out showing property in the neighborhood, I spotted heavy machinery clearing the land to a fenced-in portion of the park. So, with camera phone in tow, I ran over to investigate. To my delight, I discovered a sign hanging, which read: Pardon our mess! A new dog park for your furry friends is coming soon! The sign also included the logo for Easy Grass – a company which produces safe, artificial grass – leading me to assume that Easy Grass will be laid within the designated dog park area.
A dog park in Greater Downtown Miami is something that has been long overdue for residents and their dogs. No more trekking it to Coconut Grove or South Beach in order to allow your dogs ample space to run and play with their friends without fear of being ticketed by the po-po.
The designated area will be located directly parallel to 1800 Club and catty-corner from Quantum on the Bay. Ironically, both of those building are not pet-friendly for tenants. No word yet on when the designated dog area is scheduled to open, but my guess would be within the next 1-2 weeks.
Coming to Market – 1800 Club Unit 4003 – Asking $599,000
I am happy to present a beautiful, new listing – a turnkey furnished, 2 bedroom/2 bath condo at 1800 Club offering breathtaking views of the Atlantic Ocean, Biscayne Bay, Miami Beach skyline, cruise ships, and sunrise from the 40th floor. The unit has 1,142 interior square feet; stainless steel appliances; wood flooring throughout the living room, kitchen, and both bedrooms; marble flooring throughout both bathrooms; and a Jacuzzi tub in the master bath. The video located at the bottom of this post, which was shot just a few days ago, provides the viewer with a thorough tour of the condo.
This condo, unit 4003, would make for an excellent investment property. It was last rented for $3,200 per month and would have no problem fetching at least $3,300 per month if it were rented today. The condominium association dues are $550 per month. These dues include services and expenses such as basic cable TV, high-speed Internet, water, sewer, trash removal, use and maintenance of the amenities and common areas, insurance on the exterior of the building, and on-site building management. Amenities at 1800 Club include: fitness center with direct water views, sauna, steam room, hot tub, club room, valet parking, and 24-hour concierge. 1800 Club is conveniently located directly across the street from Margaret Pace Park – a dog-friendly, waterfront park which includes a basketball court, fitness area, children’s playground, volleyball courts, and tennis courts.
1800 Club unit 4003 will hit the market in the coming weeks with an asking price of $599,000. If you have any questions and/or if you would like schedule an appointment to view the property in person, please do not hesitate to contact me. I may be reached via email at [email protected] or on my cell phone at 786-247-6332.
Below is a floor plan for unit 4003 at 1800 Club:
New Sales Listing of the Day
Unit 301 at 1800 Club came onto the market earlier today and I’m intrigued for a couple of reasons. One, the price. It’s a corner 3 bedroom/3 bath with 2,189 interior square feet. The asking price is $625,000, or $286 per square foot. That’s an amazing price for a 3 bedroom condo with a direct water view in Greater Downtown Miami. The unit is only on the third floor but as you can see in the picture above, the unit clears the trees and still offers an unobstructed view of Biscayne Bay and Margaret Pace Park. Two, this unit has vaulted ceilings which is unique to units 301 and 401 of all the 01 line units. The listing does not include any pictures but mentions that the unit has tiled floors throughout. It’s definitely worth taking a look at if you’re in the market for a well priced 3 bedroom condo.
As an aside, the current owner closed on the unit in December 2007 which is around the time that 1800 Club was completed. This indicates to me that he/she purchased the unit pre-construction. The purchase price was $688,750 for the unit which means that a loss will be taken.
Trump Towers 3 condos in Sunny Isles Beach are now available for sale
1800 Club announces a developer blow-out sale of their last 30 remaining condos
Media towers passes final vote
The developer of Artecity, a South Beach condo development, filed for Chapter 11 bankruptcy protection
1800 Club and Neo Vertika Now FHA Approved
This news came across my desk yesterday afternoon and I was quite surprised. I verified the information on the U.S. Department of Housing and Urban Development (HUD) website. It appears that Neo Vertika received its FHA approval on February 2, 2010 and 1800 Club received theirs on March 18, 2010. Down payment requirements for qualified buyers on an FHA loan can be as low as 3.5 percent of the purchase price. FHA loans typically come with additional costs but credit standards are usually less stringent than those of a conventional loan.
Top 5 Distressed Condo Sales Closed in February 2010
Below, you will find what I believe to be the five best condo deals of the 40 distressed sales that closed in February 2010 in the MLS located in Brickell, Brickell Key, Downtown Miami and the Arts District.
Two Midtown #H1002 – 1 bedroom/1.5 bath (735 square feet) – This unit sold for $100,000, or $136 per square foot, on February 25, 2010. Foreclosure
Cite on the Bay #2404 – 1 bedroom/1 bath (706 square feet) – This unit sold for $110,000, or $156 per square foot, on February 26, 2010. Short Sale
Two Midtown #H1009 – 1 bedroom/1 bath (735 square feet) – This unit sold for $115,000, or $156 per square foot, on February 1, 2010. Short Sale
1800 Club #1811 – 1 bedroom/1.5 bath (1,095 square feet) – This unit sold for $190,000, or $174 per square foot, on February 25, 2010. Short Sale
Marina Blue #2710 – 1 bedroom/1.5 bath (845 square feet) – This unit sold for $185,000 or $219 per square foot, on February 10, 2010. Short Sale
Penthouse at 1800 Club Sells for $170 Per Square Foot
The best condo deal that closed in the month of September actually wasn’t a short sale or foreclosure. Unit 3715 at 1800 Club was a developer unit that sold for $700,000, or $170 per square foot, on September 3, 2009. The 4 bedroom/4.5 bath penthouse condo has 4,120 square feet of interior and a 2,327 square foot bi-level rooftop terrace with a private Jacuzzi. Grant it, the penthouse faces southwest and only has partial views of Biscayne Bay, but I think the developer gave this sweet pad away at $170 per square foot.
1800 Club – 2 Bedroom/2 Bath with Direct Bay Views – $385,000
1800 Club offers some of the best water views in Miami from its 2 bedroom condos facing direct east. Unit 3505 is currently available for $385,000. It has 1,222 square feet of interior space plus a 252 square foot balcony. Maintenance fees for this condo are $518.98 per month.
Below, you’ll find a video of the view from the balcony of unit 3505 that I shot a few weekends ago. You’ll also find various photos that I shot of the interior of the condo as well as the view.
1800 Club Amenities & Common Areas
Since there was a good response regarding my previous post about the deals to be had at 1800 Club, I’ve decided to include some pictures of the amenities and common areas before diving into a new post about the units themselves. I received a few emails from nonlocal buyers who are unfamiliar with the building so I thought a brief summary along with pictures of 1800 Club might help.
1800 Club has 469 total units across 42 floors. It was developed by BCOM, Inc. and completed in November 2007. The current monthly maintenance fee is 42.47 cents per square foot. Included in those fees are: basic cable TV, high-speed Internet, water, sewer, garbage and insurance on the exterior of the building. The amenities at 1800 Club include: 24-hour concierge and security, valet parking, swimming pool, hot tub, sauna, steam room, state-of-the-art fitness center and club room. 1800 Club is located across the street from Margaret Pace Park which has tennis courts, volleyball courts, a basketball court and children’s playground.
Here are some pictures of the amenities and common areas at 1800 Club:
