BrickellHouse Parking Trouble: How Have Sales Values Been Affected?
Back in early November, residents at Brickell House condominium in the Brickell Financial District were shocked to receive news from the condo association that their “state-of-the-art” robotic parking system would cease to function due to a disagreement between the builder and the operator of the system.
While the news of the service interruption was a surprise, the issue between the building and Boomerang Systems was not. The parking system that was installed in 2014 never worked properly, and the morning ritual of retrieving cars could sometimes take upwards of an hour per resident. The building had done their best to appease the residents, offering free Starbucks coffee during the lengthy wait times, reimbursement for Uber trips and reimbursement for alternative parking arrangements, but the elephant in the room remained. The building had a major problem.
After scrambling to find alternative arrangements for the residents of the 374 apartments, the parking company continued to demand $50,000 per month as a fee for operating the system and $100,000 in back payments. The building resisted the payment as the delays continued to grow as the building continued to fill with residents. According to the South Florida Business Journal, US Bankruptcy Judge Mary F. Walrath settled the dispute on December 21 by cancelling the contracts for purchase, installation and maintenance of the parking system but allowing the building to hire another company to manage the equipment & software that is already on site. In the meantime, the temporary parking solution remains in place.
While the building is busy looking for a new parking service company, many are wondering what will happen to the sales and rental values of the building?
Now that the market has had a few months to reflect the aftermath of the dramatic news, we are happy to see that not much has changed in the sales values. According to our BrickellHouse Statistics page, the sales figures have steadily risen since the building opened in late 2014.
Over the previous 3 months, the average price per foot has been $641/foot for sold condos, up from $611/foot over the last 6 months and $595/foot at building opening. There are also 4 apartments that have executed contracts that are still in process. The rental market has also steadily grown with 18 new leases in place over the last 3 months, 56 leases in the last 6 months and 143 over the last year.
While we are sure the parking situation is inconvenient for all involved, it is a relief to see that the building is holding its value as planned. Once the parking debacle is resolved, we are confident that the building will be revealed as an even better investment for the long-run.
Related Group Construction Update
The Related Group is looking to start 2016 ahead of schedule. This morning Carlos Rosso, President of Related’s condo division, shared these construction photos of SLS Lux, Brickell Heights, SLS Brickell and the Paraiso mega-development.
Above, you can see Brickell Heights and SLS Lux. Brickell Heights is the two towers under construction in the center of the photo. The tower to the right is Brickell Heights tower 1. This phase is sold out except for a few penthouse opportunities, Brickell Heights 02 is 85% sold out with select residences and penthouses remaining for purchase. This project is scheduled for completion in late 2016.
SLS Lux is the shorter tower to the right of Brickell Heights. The construction began more recently than Brickell Heights and it is scheduled for completion in the fall of 2017. This project is nearly sold out as well with roughly 20 residences remaining and penthouses. Upon completion, SLS Lux will be 57 floors and Brickell Heights will have 49 floors in each tower.
Above, you can see SLS Brickell. This one is topped off just in time for the new year and has been sold out for some time with the exception of a couple of penthouse opportunities. The construction schedule shows SLS Brickell being completed in the spring of 2016.
Below is a great angle to see the impressive size of the Paraiso Bay mega development in Edgewater. This project features 4 towers on 4.6 acres that will begin to be delivered in late 2016. The four towers are Paraiso Bay, Gran Paraiso, One Paraiso and Paraiso Bayviews.
Bravo to Related for pushing the projects & heading toward the finish ahead of schedule! We can’t wait to see the neighborhoods continue to grow. We are happy to help should you be interested in any of the remaining opportunities in the projects.
Developers Offering Year-End Incentives to Close Out Projects
In an effort to hold the attention of buyers and sell as many apartments as possible before the end of 2015, developers are coming out with attractive incentives packages to help buyers decide to act now and close out their projects. Here are some of our favorite incentives from buildings that are currently under construction and selling pre-construction residences:
Brickell Heights – Related has lowered the down payment requirement to 30% from the original 50%. Prices of remaining inventory start in the $400,000’s.
SLS Lux – All of the condo/hotel apartments are currently under contract, but the developer is offering upgraded kitchens on the remaining condo residences and 30% down payment. The penthouse collection has recently been released and sales are almost finished. Prices start in the $600,000’s for the remaining units.
Paraiso Bayviews – All four towers of the Paraiso development are currently under construction and Paraiso Bayviews is 95% sold. For select apartments, the developer is offering a finishes package with porcelain flooring throughout. The prices currently start in the mid $500,000’s up to the high $600,000’s and penthouses are priced between $639,900 to $1.75MM. The developer has not officially offered deposit flexibility but has indicated that it is possible on a case-by-case basis.
Hyde Midtown – The construction of Hyde Midtown has only just started in recent months, but close out is fast approaching. Prices on remaining inventory start in the $400,000’s and the sales team has offered some flexibility on the 30% down payment on a case by case basis.
We were very happy to see these flexible down payment options, as it will make new condo purchases more accessible to those who hope to live in the apartments. The incentives also help to allow for the possibility of financing the condo purchases, which many people have inquired about yet been unable to easily attain until now.
Let us know if you or someone you know is interested in more information on these or other developments. We will have team members in Miami during all of the holidays and until the end of the year to help visitors by appointment.
Brickell Investor Opportunity: 2 Bedroom Under $500k
From time to time we like to talk about deals that we see that are particularly interesting for one reason or another, and this is a very interesting investment deal. Brickell condo investments typically see around a 3% return for existing purchases (after expenses such as taxes and homeowners fees are subtracted) and 2 bedroom properties under $500,000 are becoming more and more difficult to find.
This listing at the Vue at Brickell is a standout in our book at only $449,000 with two parking spaces, full renovations and fully furnished. The building is located at 1250 S Miami Avenue, so is walking distance to practically everything in Brickell, the “official walk score” by walkscore.com is listed as 97. Despite being able to walk almost everywhere, this apartment comes with 2 parking spaces rather than the typical single space. The building was built in 2005 and was recently renovated, offering a new lobby, refreshed gym and pool area. The condo management is in good standing, managing to keep the HOA fees at only $675/month, which is significantly lower than competing buildings in the neighborhood.
Inside the apartment, the kitchen and bathrooms have been updated and the apartment is being offered turnkey furnished (linens, artwork and electronics included). The kitchen offers new stainless appliances including a wine cooler as well as quartz countertops and new cabinets. Both bathrooms have new vanities, countertops, sinks and light fixtures. The balcony has a wonderful view of the city lights as well as the Biscayne Bay.
Considering this apartment were to be rented today, an investor could reasonably expect $2,800/month in income. If you reduce the real estate taxes and HOA fees, it would leave a return of 4.5% as soon as the tenant takes place! If you or someone you know is interested, just reach out and we are happy to set up a tour.
IconBrickell Pool To Close For 12 to 14 Months
Residents of IconBrickell and the Viceroy Hotel (W Hotel) are in for a hot and dry summer, as their famed pool deck will be closed for renovations/repair. Our sources have confirmed that the Icon Brickell pool closing is expected to begin around February 2016 and the work is estimated to be completed in 12 to 14 months.
It has been reported that the Icon Brickell pool renovations will include re-tiling of the pool deck for safety reasons (because the tiles used by the developer are too slippery for use on a pool deck). Others have reported that leaks in the pool have caused damage to the spa and gym below; however, the management office has not cited at this time the exact reason for the closing.
IconBrickell opened in 2008 to rave reviews but few sales due to the economic downturn. The amenities in particular won awards and accolades for their grandiose, superb quality and design. Developed by Related Group, Arquitectonica was chosen as the architecture firm and Philippe Starck handled the interior design. IconBrickell was among the first condo developments to rebound from the economic downturn in Miami. Average sale prices for the second quarter of 2015 have been reported at $583 per square foot for the three towers or $796,000 and rentals have averaged $3,150 per month for the same period.
The pool closing at Icon Brickell has been well known among residents and the real estate community for several months. As such, listings at Icon Brickell have already begun to price in the negative impact that the pool closing is expected to have.
SoMa at Brickell Opens
SOMA at Brickell, formerly known as The Edge at Brickell, opened to new tenants this week after beginning construction early in 2014.
SOMA at Brickell offers a rare mid-rise option to Brickell’s rental market with 8 floors and 418 apartment residences. The apartments range in size from 514 to 1,102 square feet in the studio, 1 bedroom, and 2 bedroom floor plans. All residences at Soma Brickell feature stainless steel appliances, granite countertops, and in-unit washer/dryer.
SOMA at Brickell is located in Southwest Brickell at 145 SW 13th Street. It’s a 2.4-acre site directly across the street from a Publix grocery store as well as walking distance to both the Downtown area Metro Mover and the Metrorail’s Brickell Station. This location makes for a seamless commute for SOMA Brickell residents to popular locations such as the University of Miami, Jackson Memorial, and Dadeland areas. Additionally, shops, cafes, and bars at Mary Brickell Village and Brickell City Centre are within walking distance of SOMA Brickell.
The amenities at Soma at Brickell include a cyber cafe, rooftop lounge area with cabanas and grills, fitness center with yoga studio, screening room, sports court and club room with a catering kitchen and billiard. The 8-story parking garage at SOMA Brickell includes charging stations for electric cars.
The building management at SOMA Brickell is offering quick move-in with prices starting at $1,695 for studios, $1,800 for 1 bedroom plans, and $2,375 for 2 bedroom plans. Contact us today to arrange a tour and to check current availability.
Just Listed – 2 Bedroom Corner Unit at The Plaza on Brickell with Direct Water Views – Asking $825,000
I am pleased to announce my newest listing – unit 3211 at The Plaza on Brickell – a 2 bedroom, 2.5 bath corner unit with breathtaking views of Biscayne Bay, Brickell Key, and Key Biscayne. This is an 11 line unit located on the 32nd floor of the Brickell Bay tower, arguably the best line in the entire development. Most importantly, the unit clears the Four Ambassadors across the street by 12 floors, allowing for direct water views. As one would expect, units that clear the Four Ambassadors sell at a big premium to those that do no. Last September, unit 3411 – just two floors directly above unit 3211 – sold for $850,000. That unit was sold furnished with marble flooring throughout. Priced to sell, unit 3211 is being offered for $825,000.
The Plaza on Brickell is centrally located, just blocks from the shops, restaurants, and bars at Mary Brickell Village and the upcoming $1.2B mixed-use development called Brickell City Centre. Amenities at The Plaza on Brickell include: two swimming pools, hot tub, steam room, two fitness centers, 24-hour concierge, 24-hour valet parking, club room, theater, and more.
Vue at Brickell Unit 2306 Video Tour – Asking $479,000
Keep an eye out for more video tours in the weeks and months ahead. This is a service that I now provide to all customers who list their property with me. Yes, even for rentals! All videos are shot in 4K, also known as Ultra HD, which allows for an immersive, life-like experience for the viewer. If you have an interest in listing your property for sale or rent, please contact me. I can be reached via email at [email protected] or on my cell phone at 786-247-6332.
Just Listed – Beautifully Designed, Turnkey Furnished 2 Bedroom Condo in the Heart of Brickell – Asking $479,000
Just Listed For Sale – a beautifully designed, 2 bed/2 bath condo in the heart of Brickell with 1,143 interior square feet. Offered TURNKEY complete with furniture, electronics, dishware, linens, artwork, and more. Kitchen and both bathrooms renovated. Fabulous, direct views of Biscayne Bay and the Brickell skyline. Tandem parking space included (parks 2 cars). Tons of restaurants, cafes, shops, and nightlife at your doorstep and/or within walking distance. Low monthly condo dues! Only $675 per month – includes basic cable TV, high-speed Internet, and water! Ideal property for investment.
Located at Vue at Brickell – 1250 South Miami Avenue, Miami, FL 33130. Building amenities include: pool, concierge, fitness center, and valet parking. Pool, lobby, and fitness center recently renovated. Just blocks from Mary Brickell Village and the upcoming $1.2B mixed-use development called Brickell City Centre. Asking $479,000. For showings and/or questions, please contact me via email at [email protected] or on my cell phone at 786-247-6332.
