900 Biscayne Bay Pools Close for Renovation

According to a notice that was sent earlier this week to all 900 Biscayne Bay residents, BOTH of the building’s pools will be closed from Monday, January 29th, to “sometime in October of this year”. The closure allows for work to commence on the “Pool Deck Restoration Project”, which was approved last year. Designed by ArquitectonicaGEO, the restoration project will include new lush landscaping, resurfacing, new furniture, the addition of a BBQ area, and an extension of the upper pool deck.

In the meantime, the condominium association has made arrangements with the Intercontinental Hotel, located next to Bayfront Park, for residents of 900 Biscayne Bay to use their pool. As to how this news will impact prices in the building, only time will tell.

Monthly Assessments at 900 Biscayne Bay Drop 12 Percent Year-over-year

The owners at 900 Biscayne Bay received highly favorable news heading into the new year – their monthly assessments would drop 12 percent when compared to the amount that they paid throughout 2017. A big reason for the unusually large reduction was the $15M that the condominium association received last year as part of the settlement agreement resulting from 558 construction defect litigation it had with the developer and other related parties.

That litigation had been a thorn in the condominium association’s side, but now, with such a sizable settlement, they can make some nice improvements to the building. They recently updated the spa and, later this year, will begin renovation on their pool deck.

The monthly assessments at 900 Biscayne Bay are now at 74 cents per square foot, which is outstanding considering the level of amenities and services that the building offers. Below are the 2017 vs. 2018 condo dues for three of the 1 bedroom lines at 900 Biscayne Bay:

• 03 line
  • 2017: $765.85 per month
  • 2018: $673.25 per month
• 05 line
  • 2017: $780.16 per month
  • 2018: $685.80 per month
• 07 line
  • 2017: $787.72 per month
  • 2018: $692.45 per month

900 Biscayne Bay Can Look Forward To Lower Association Dues In 2017 And A Pool Upgrade

Apartment owners at 900 Biscayne Bay can look forward to a nice 2017. According to announcements from the condo association, their monthly association dues are decreasing by over 25% and they can look forward to pool upgrades.

On October 27, a special meeting was held to go over the proposed budget for 2017. The new budget showed a reduction of over $2.6 million from the 2016 budget and included the pool renovations that are included in the 558 litigation that is currently underway against the developer. This litigation will hopefully be settled in December during a scheduled mediation. If not, it will go to trial in April of 2017. Once this is finished, the 2018 budget is anticipated to be even lower than the 2017 budget! Each apartment owner will experience a reduction in dues from $1.13/square foot per month down to $0.78/square foot per month in 2017.

The owners are also invited to preview the pool renovations on November 15 at 5:30pm in the 15th floor conference room. See below for some photos of the changes compared to what the pool looks like now.

New Design From Arquitectonica, The Landscape Architect

New Furniture and Tile

A New Barbecue

And here are some photos of what the pool currently looks like:

5 Most Expensive Rentals In The Downtown Miami Area

MLS Photo 900 Biscayne 6301

Lots of us are suckers for browsing fancy properties online and Miami is known for our flashy pads. Here is a list of the top 5 most expensive rental properties in the Downtown Miami area.

Four Seasons 48E – $22,500/month
Throughout the last building booms in Brickell, the Four Seasons has retained its stature as one of the best ultra-luxury properties in the neighborhood. People are familiar with the name and the level of service. For $22,500 per month, you can call this 3,357 square foot residence home. It has 4 bedrooms, 4 baths and tremendous east-facing bay views that include South Beach, Fisher Island, the Port of Miami and Key Biscayne. The listing photos don’t do this apartment justice, so here is a photo of the view.

MLS Photo Four Seasons Brickell 48E

Paramount Bay 4502 – $19,900/month
You can actually be the first to live in this full-floor residence at Paramount Bay. It has 4,437 square feet of walls of glass and 360 degree views. There are 4 bedrooms and 4 bathrooms, multiple balconies, a view from your bathtub, a hidden kitchen and all top-of-the-line fixtures that are detailed out in the listing photos.

MLS Photo Paramount Bay 4502

Four Seasons 56CD – $19,850/month
Skipping back over to Brickell, we have another option at the Four Seasons. Just like apartment 48E, this apartment comes fully furnished and designer decorated. This one is a combination of two west-facing apartments, so offers view of all of Brickell and westward into the Everglades. At night, the twinkling lights are amazing. The apartment is 3,253 square feet and has 3 bedrooms and 3 bathrooms. You can check out the photos here.

MLS Photo Four Seasons Brickell 56CD

900 Biscayne Bay 6301 – $16,000/month
Now we’ll head back over to Park West and visit THE apartment to have if you’re into backlit onyx. Probably the most photogenic of the bunch, 900 Biscayne Bay 6301 offers 3,199 square feet indoors and a 1,500 square foot terrace.  The custom backlit onyx stretches throughout the apartment, giving it a completely different feel at night versus the daytime look. You have to check the listing photos to see for yourself. It may not be everybody’s taste, but you can’t deny that it is fun to look at. It’s like a family home that transforms into a private nightclub when the sun goes down. Interesting. Very Miami.

MLS Photo 900 Biscayne 6301

Santa Maria 1202 – $15,000/month
Back in Brickell again, we will round out the list at Ugo Colombo’s 1996 stunner, Santa Maria. Possibly the most secure of all of the buildings, there are very few clues that this property is 20 years old. Unit 1202 has 3,170 square feet and 3 bedrooms, 4.5 bathrooms with wraparound terraces and views of both the Biscayne Bay and Brickell. This unit is furnished by Artefacto and I would say the most tasteful of the bunch. Because the building is as secure as a fortress, you will have a treat in the listing photos. There are some shots of the amenities that are not typically seen.

MLS Photo Santa Maria 1202

What do you think of the list? Were there any buildings that you were surprised to not see? Do you like the apartments? Let us know, we love hearing feedback!

Quantum on the Bay Celebrates Settlement with Terra Group for Faulty Construction, Throws a Party

Quantum on the Bay

According to a notice posted in their elevator, the Margaret Pace Park-fronting condominium tower Quantum on the Bay has reached a settlement with developer Terra Group over faulty construction, and to celebrate is throwing a party. Meanwhile, 900 Biscayne Bay, also built by Terra, has entered into similar litigation against the developer, and is still working their way through that. Both buildings were completed in 2008, as the Great Recession was setting in and the last real estate boom was crashing hard.

According to a nice chap in the management office at Quantum who identified himself as ‘David,’ the litigation was in regards to faulty construction on the building’s facade. When asked “So, what about the facade David? Balconies, windows?” David’s reply was “both of those.” Well, that’s scary. Anywho David wasn’t willing to spill the size of the elevator sign settlement, but it could be quite large considering the building is throwing a party for all of its residents, this Friday at 6:30 pm, with a champagne toast, to celebrate (open to building residents and any broker who RSVPs, which means it’s totally crashable). That’s developer money.

Quantum on the Bay Party

Kukaramakara Moving into Revolving Door Retail Space at 900 Biscayne

Kukaramakara. Photo by Lucas Lechuga

The ground-floor retail/restaurant space at 900 Biscayne Bay has had a series of tenants sine the building’s completion in 2008. but will the building’s latest entree be the right fit? Kukaramakara, a live band venue just opened over the past weekend. Up until 2 or 3 weeks ago, the space was occupied by Libar Steakhouse, before that Doma Polo Bistro, and before that another place, which, if we remember correctly, was an Argentinian restaurant. Meanwhile the space itself was put on the market for sale earlier this year.

The space is a great example of the amount of retail turnover on this stretch of Biscayne Boulevard, the so-called Biscayne Boulevard wall. The Marquis had a hotel, and now it’s about to have another hotel. 888 Biscayne Boulevard/Marina Blue is getting a CVS in their corner space. The ground floor retail space at Ten Museum Park has never had tenant. And soon One Thousand Museum will be adding more retail square footage to the row. With new construction happening nearby, a neighborhood in transition, and lots of traffic along Biscayne Boulevard, when will the stretch reach some stability?

CVS Pharmacy Coming to Marina Blue in Park West

It appears that a big change is on the horizon for Park West. This weekend, I was told by three independent sources that a CVS Pharmacy will be opening next year at Marina Blue. The pharmacy chain has signed a lease to occupy a big chunk of the building’s street level retail space which currently consists of four separate commercial units, three of which are tenant-occupied at this time. According to one of my sources, in order to make way for CVS Pharmacy, the three tenants (a nail salon, restaurant, and real estate office) will be vacated by November 1st; the tenants received notices about six months ago when the commercial spaces were placed under contract by a recent buyer for an undisclosed amount. As a result of these dealings, the restaurant tenant, Elia’s Gourmet, which has been a long-time commercial tenant at Marina Blue, will be relocating to a larger space along the north side of 900 Biscayne Bay.
 
Given that there’s already a CVS Pharmacy just six blocks south of Marina Blue at Vizcayne, the choice of locations is a bit peculiar, but not completely surprising. After all, Marina Blue is located catty-corner from the American Airlines Arena, so the new CVS Pharmacy should see a good amount of foot traffic come its way as a result of Miami Heat basketball games, music concerts, and other events held at the stadium throughout the year.

East side of Marina Blue along Biscayne Boulevard

South side of Marina Blue along Northeast 8th Street

Top Five Condo Deals in Downtown Miami

As mentioned in my last blog post, I think real estate values in Downtown Miami, for a number of exciting reasons, are ready to take off.  Museum Park is about a year from being completed, Miami Worldcenter seems an almost certainty, and a proposal for a 1000-foot observation tower called Skyrise Miami was recently submitted to the city of Miami for approval.  Also, with prices starting at $4M, the addition of One Thousand Museum will only help position the area as Miami’s equivalent to New York City’s Park Avenue.  If there were ever a time to be excited about the prospects for Downtown Miami, the time is now.

So how does one take advantage of all this fabulous news?  Well, surprisingly, there are still a number of great deals to be had in the existing condo market in Downtown Miami.  Due to the illiquid nature of real estate, market news oftentimes get disseminated at an almost snail-like pace and, as a result, does not manifest itself in pricing for quite some time.  The same, however, does not hold true for the pre-construction real estate market.  Prices there are set by developers who take into account any and all information that will have a positive effect on neighborhood values from now until completion of the project.  In that regard, it is sort of like buying commodities futures with the price determined by future expectations and the likelihood of those expectations being met.  The hope for contract holders is that market values present at the time of delivery will be at or above their contract price.  That is why one will notice a sizable gap between the price per square foot for existing condos and the price per square foot for pre-construction condos .  In other words, the promise of what is yet to come has already been taken into consideration when determining the contract price.

My point is that the existing condo market is slow to act.  As a result, there are definitely still good deals to be had.  Below, you will find a list of five condos currently available for sale in Downtown Miami that I believe are undervalued and well positioned to take advantage of the positive news that is now shaping the neighborhood.

Before I start, I want to first say that none of the properties listed below are my exclusive listings.  These were chosen unbiasedly by me because I truly feel that they warrant inclusion.

5. Marquis 3707 – This is a bi-level, 2 bedroom+den/3 bath corner unit with 2,081 interior square feet and 20-foot, floor-to-ceiling glass windows.  The unit is located on the northeast corner of the 37th floor offering beautiful views of Biscayne Bay and the Atlantic Ocean.  It also overlooks Museum Park which is currently under construction.  The only drawback to this unit, and likely the reason why it hasn’t sold yet, is the fact the landlord is getting very low rent until October 2014.  The tenant was able to negotiate a great deal in exchange for paying the entire lease upfront.  A triumph for the tenant but an ill-advised move by the landlord because, from an investment standpoint, low rent has an adverse effect on a property’s value.  If a buyer can stomach the low rate of return until October, there is an opportunity here to buy at a great price the only bi-level, 2 bedroom corner unit currently offered for sale at Marquis Residences.  Asking price is $1,250,000, or $601 per square foot.
   
4. Marina Blue 5205 – This unit likely won’t win any Best in Show Awards but it has incredible potential.  If one can look past the traditional, almost anti-Miami decor, I’m sure one will find incredible value here.  This is one of the largest 2 bedroom floor plans at Marina Blue, a rare combination unit found only on floors 52-56.  It is a 2 bedroom/2.5 bath condo with 1,660 interior square feet and 10-foot, floor-to-ceiling glass windows.  The unit faces east-southeast and enjoys a panoramic view of the Atlantic Ocean, Biscayne Bay and Downtown Miami skyline.  Asking price is $725,000, or $437 per square foot, which, in my opinion, is low considering the fact that it is a prime floor plan located on a very high floor.  Given a few recent comps, and the fact that the listing has grown stale after sitting the market for 600 days, there should still be room to negotiate on the price.
3. Marina Blue 1603 – This might be your last opportunity to own a 1 bedroom + den at Marina Blue for under $370,000.  This is an approved short sale priced at $355,000, or $376 per square foot; an incredible value no matter how you slice it.  Every unit at Marina Blue has a direct water view and this unit, located on the 16th floor, is no exception.  In fact, it not only offers a view of Biscayne Bay but also the Downtown Miami skyline.
2. Ten Museum Park 3101 – Unfortunately, the listing agent hasn’t uploaded any pictures of this unit onto the MLS.  I’ve seen it in person though and it’s a beauty!  The bi-level, 2 bedroom/2.5 bath corner unit sports 20-foot, floor-to-ceiling glass windows, offering an amazing view of the water and a front row seat to all the action down below at the upcoming Museum Park.  The unit is impeccably designed and exudes the sexy, clean look for which Miami is known.  Asking price on this 1,802 square foot loft is $1,150,000, or $638 per square foot.
1. 900 Biscayne Bay 5302 – While there are cheaper 02 and 09 lines available for sale in the building, this one is located on the 53rd floor and comes completely furnished.  Equally important, the unit has always been owner-occupied, and it shows.  The condo is tastefully decorated and offers not only direct bay and ocean views but also sunrise and sunset views from this 53rd floor flow-through unit.  In my opinion, these flow-through units, which are relatively rare in Downtown Miami, will become extremely valuable once Miami Worldcenter gets built.  Not only will owners get to enjoy the amazing water views to the east, but they will also be able to check out the action down below at MWC to the west.  It would be like overlooking Time Square in New York City.  The price was reduced $115,000 yesterday and is now asking $975,000, or $619 per square foot.  Also, the listing states that the owner is motivated.  This could be a good time to snag an amazing unit at an excellent price.

If you or someone you know has an interest in learning more about any of the above properties, or would like to view any in person, please contact me via email at [email protected] or by phone at 786-247-6332.

Marina Blue Market Update – 2011 to Present

Below is a market update that I emailed to Marina Blue condo owners late last week.  While not everyone reading this will have an interest in Marina Blue, I think a similar upswing in prices and lack of inventory as described below holds true for most major condo developments throughout Greater Downtown Miami.

If you haven’t heard, the real estate market in Miami is once again heating up and prices for condos at Marina Blue are following suit. Demand is high and inventory is low, paving the way for a strong 2013. Just how strong you might ask? I decided to crunch some numbers to help answer that question.

The left-hand side of the chart below graphically illustrates various statistics regarding asking prices in 2011 (blue), 2012 (red) and 2013 (green). There haven’t been any closed sales thus far this year so the right-hand side of the chart illustrates only sales that took place in 2011 (blue) and 2012 (red). It should be noted, however, that currently there are 4 pending sales at Marina Blue.

In 2011, there were a total of 33 closed transactions which sold at an average price of $324,806, or $299 per square foot. In 2012, the number of closed sales increased 73% to 57 and sold at an average price of $378,495, or $329 per square foot. Due to outlying sales that skew the averages, the median sales price can sometimes provide a better sense for the overall market but that is not the case with this data set. The average and median figures for each year are relatively in line with each other. The average sales price increased 16.5% from 2011 to 2012 while the average price per square foot increased only 10%. This indicates that a greater percentage of larger units sold in 2012 than in 2011.

That brings us to the present day. As of January 14, 2013, there were 29 condos available for sale at Marina Blue. These units ranged in price from $355,000 to $2.8M. The average list price is skewed dramatically, however, due to one listing that is way off base. In this case, the median list price of $515,000 provides better insight into the overall market than the average list price of $698,793.

The chart below follows the same format as the chart above but breaks everything down on a price per square foot basis.

When comparing current availability with closed sales in 2012, it should be immediately clear that current asking prices are very high relative to where condos have sold in 2012. The median sales price per square foot in 2012 was $326 while the median asking price per square foot is currently $452. That is a huge gap but presents a big opportunity for someone who is looking to sell fairly quickly at an above average market price. To be clear, I feel that the average unit will now get $370-$380 per square foot. That is a very healthy premium when comparing it to the median sales price per square foot in 2012. Obviously, units on high floors with above average build-outs should fetch even more.

As inventory dwindles, I have noticed that more and more condo owners throughout Miami are starting to raise their asking prices.  For example, of the 62 units currently available for sale at 900 Biscayne Bay, 13 of the owners have decided to increase their offering price since initially hitting the market.  At Ten Museum Park, 6 of the available 22 units are now offered at a higher price than was available just months ago.  A similar trend can be seen at plenty of other major condo developments throughout Miami as well.  Sellers are taking advantage of the low inventory and are adjusting their offering prices accordingly. 

One Thousand Museum’s Likely Impact on the Neighborhood

Last month, it was announced that world-renowned architect Zaha Hadid has been appointed to design a luxury skyscraper in a neighborhood of Downtown Miami know as Park West.  The residential high-rise, known as One Thousand Museum, will be developed by Gregg Covin, the developer behind Ten Museum Park, and Louis Birdman.  The planned project will be erected in what is the current location of a BP gas station which neighbors Ten Museum Park at the intersection of Biscayne Boulevard and Northeast 10 Street.  Sales information is expected to be released during the first half of 2013.

There always seems to be a sense of excitement surrounding the announcement of a new development in Miami and the news of 1000 Biscayne Tower was no different.  Not everyone, however, shares the same sentiment.   Residents in the immediate area are not always thrilled about the inevitable noise, traffic congestion and their views potentially becoming obstructed due to the new construction.  Taken yesterday evening, the picture above shows not only the site of the BP gas station but also its neighboring condo developments – 900 Biscayne Bay to the south and Ten Museum Park to the north.  Due to their proximity, it should be clearly discernible that views in each high-rise from units closest to 1000 Biscayne Tower will be significantly affected.  To be exact, there are three lines in each development which will have their views hindered: the 08, 10 and 12 lines at 900 Biscayne Bay and the 01, 07 and 08 lines at Ten Museum Park. The following site plans illustrate where these lines reside on each building.

Below is my assessment on how the view of each of these lines will be affected:

900 Biscayne Bay

• 08 line – Earlier this morning, I showed an 08 line at 900 Biscayne Bay and made sure to make a mental note of what the view looked like from the living room.  In this floor plan, the master bedroom is to the left of the living room and the second bedroom is to the right, with all three rooms facing in the same direction.  Of the three lines at 900 Biscayne Bay that will be affected by the erection of 1100 Biscayne Tower, the 08 line will be affected the least.  Notice the setback that Ten Museum Park has from the sidewalk.  1000 Biscayne Tower will have a similar setback and, therefore, the water view from the 08 line will, for the most part, not be obstructed.  Having a massive building directly in your line of view is definitely less than optimal but at least these residents won’t have their water view compromised.
• 12 line – At first glance, it might appear that the 12 line will have their views most adversely affected due to it being the furthest line away from the street but that’s not the case.  There’s no doubt that its water view will be most compromised of the three lines but one must remember that this uniquely situated floor plan also has views to the south and west.  The west view at night is stunning and the development of 1000 Biscayne Tower will in no way take anything away from that.  These residents will still be able to enjoy a view of the sunset from within their unit and should still be able to enjoy a view of the sunrise from their balcony.
• 10 line – In my opinion, residents who live in a 10 line at 900 Biscayne Bay have the most to lose in regards to their view being obstructed if a high-rise is indeed constructed on the current site of the BP gas station.  The 10 line is boxed in on either side by the 08 and 12 lines and will look directly into the southern end of 1000 Biscayne Tower.  Their water view will likely go from unimpressive to highly obstructed in a jiffy.  Any semblance of a view that might remain will be further compromised by the almost certain development of the Miami Herald site in the future.

Ten Museum Park

The impact such a development will have on the views of the units located on the southern end of Ten Museum Park is much easier to assess.  The footprint of the building is perfectly symmetrical and, therefore, the units located on the northern end which look into Marquis Residences serve as a perfect example for what views will look like from the 01, 07 and 08 lines in the future if a development is constructed at the site in question.

• 01 line – This line offers a direct water view and the water view will in no way be affected by the development of 1000 Biscayne Tower.  Privacy from the living room might be a concern but it’s nothing that solar shades or long curtains can’t fix.  Besides, privacy at this end of the building hasn’t been expected since 900 Biscayne Bay began closings in 2008.  Take a tour of an 04 line to get a sense for what it will feel like to have a building so close.
• 07 line – Like the 12 line at 900 Biscayne Bay, this line offers a view to the south and west.  Its southern view will be compromised but its view to the west will be unaffected.  Your view of the water will be slight at best.  Take a tour of an 06 line to see what I mean.
• 08 line – The view from the 08 line will be obstructed the most by the development of 1000 Biscayne Tower.  Residents will look right smack into the northern end of the planned high-rise.  The 05 line will give you an uncanny feel for what life will be like having a view of the side of a building.

Within the past five years, Park West, the neighborhood name given to the area immediately west of the upcoming Museum Park, has undergone a transformation that has been nothing short of amazing.  One could argue that the addition of 1000 Biscayne Tower, as well as the oft-mentioned 700 Biscayne Bay which will be located just south of Marina Blue, is just another step in the progression of Downtown Miami.  Such additions should no doubt strengthen Park West’s positioning as one of Miami’s most luxurious neighborhoods.  I wrote about this inevitable progression in a blog post back in July 2007.  In it, I referred to the neighborhood’s development as Miami’s equivalent to Manhattan’s Park Avenue.  There’s no question that Park West has not yet arrived at its potential but there is little doubt that it is well on its way.  While short term demand for condos in the lines mentioned above will likely wane due to having to deal with construction noise outside your window as well as the loss of views and privacy,  it is difficult to jump ship from a neighborhood that is heading in the right direction with lots of upside potential.  Across the street, the $220M Miami Art Museum at Museum Park is scheduled to open later this year with the Miami Science Museum following about a year later.  Additionally, there has been a lot of talk as of late regarding Miami Worldcenter indicating that the mega-development may not be a pipe dream after all.  If Miami Worldcenter is formerly announced and becomes an actuality then, mark my words, Park West will become the most highly sought after neighborhood in Miami.  You can take that to the bank!