Brickell Condo Index – April 2008
The Brickell Condo Index is back! I was shocked to see that it’s been six months since I last provided an update to what used to be a monthly report. Those who’ve been around long enough to remember those updates would probably agree, however, that very little change in the market was seen on a month-to-month basis. In this report, you’ll definitely see that prices in some Brickell condo buildings have changed quite a bit within the past six months. Ideally, from this point forward, I’d like to provide a Brickell Condo Index update every three months.
Most of the following data was collected last week on April 22, 2008. The pending sales information towards the bottom of the post was collected today.
I finally decided to include Latitude on the River in the Brickell Condo Index. In November, the average price per square foot of available condos in the Brickell Condo Index listed in the MLS was $512.14. Six months later, asking prices have dropped 6.52 percent to an average of $478.76 per square foot. The drop would have been 5.64 percent had Latitude on the River not been added to the index. A few of the following condo buildings, however, have had huge reductions in their average asking prices. I’ll discuss these in more detail towards the end of the post.
Average price per square foot of units currently listed on the MLS:
The average price of Brickell condos sold over the past six months has dropped 13.20 percent to $410.38 per square foot from November’s average of $472.80. The drop would have been 11.75 percent had Latitude on the River not been included in this month’s update.
Average price per square foot of condos sold in the MLS within the past six months:
- Atlantis – 2025 Brickell Ave | 33129 | $249.28
- Brickell on the River – 31 SE 5 St | 33131 | N/A
- Bristol Tower – 2127 Brickell Ave | 33129 | $442.37
- Emerald at Brickell – 218 SE 14 St | 33131 | $409.11
- Four Seasons Residences – 1425 Brickell Ave | 33131 | $913.08
- Imperial at Brickell – 1627 Brickell Ave | 33129 | N/A
- Jade – 1331 Brickell Bay Dr | 33131 | $544.02
- Latitude on the River – 185 SW 7 St | 33130 | $314.35
- Neo Vertika – 690 SW 1 Ct | 33130 | $322.13
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $324.77
- Santa Maria – 1643 Brickell Ave | 33129 | $595.43
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $397.72
- Solaris at Brickell – 186 SE 12 Ter | 33131 | N/A
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $367.44
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $386.25
- The Palace – 1541 Brickell Ave | 33129 | $320.09
- Villa Regina – 1581 Brickell Ave | 33129 | $356.79
- Vue at Brickell – 1250 S Miami Ave | 33131 | $212.82
Below you will find some additional statistics:
As in the past, the first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, expressed as a percentage. An “N/A” is found next to Brickell on the River, Imperial at Brickell and Solaris at Brickell since this percentage could not be computed as each building failed to have a closed sale within the past six months through the MLS, and thus did not have an average price per square foot for condos sold.
The second column is the number of active listings in each development currently in the MLS. The third column shows the percentage that these listings represent over the total number of condo units in each development. The cells highlighted in green reveal those condo developments that have active listings that represent less than 10 percent of the the overall units in the building. In my opinion, this often demonstrates a sound condo building. The ones highlighted in red reveal those condo developments that have active listings that represent over 20 percent of the overall units in the building. There’s definitely underlying risk in buying condos in these buildings and I’d only advise buying within one of these condo buildings if the price justified the risk. The condo developments with active listings less than 10 percent are considered very safe, in my opinion, and anything in the 10-15 percent range is considered normal, even in a healthy market.
The fourth column shows the number of pending sales while the fifth column displays the number of closed sales within the past six months. There are a total of 58 total pending sales in the 18 condo buildings now represented in the Brickell Condo Index. In November, there were a total of 49 pending sales at the time. I was quite surprised by the large number of pending sales at The Club at Brickell Bay, Jade and Solaris at Brickell. It looks like buyers are finally starting to step in and place some of the condo foreclosures in these buildings under contract.
The sixth column show you the difference in the average list prices from this month’s and November’s, expressed a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. Vue at Brickell saw asking prices drop about 25 percent, The Club at Brickell Bay around 19 percent, Jade around 16 percent and Solaris at Brickell around 11.5 percent. The seventh column reveals the difference in average sales prices from this month’s and November’s, expressed as a percentage. The condo buildings hardest hit with mortgage fraud saw prices drop in half, in a few cases, as the fraud has ceased and the supply of foreclosures has grown. The average price per square foot for condos sold at Vue at Brickell within the past six months has dropped almost 48 percent. A few apparent fraudulent transactions included in the November average have fallen off. The Club at Brickell Bay’s average dropped a little over 46 percent, Solar at Brickell’s dropped about 33 percent and Jade fell around 25 percent. Even One Miami took a big hit with a drop of around 23.5 percent.
Brickell on the River – 1 Bedroom/1 Bath Short-Sale – $200,000
I’m quite surprised that the 1 bedroom/1 bath short-sale for $200,000 at Brickell on the River isn’t under contract yet. It was offered for sale on April 1, 2008. The next best priced condo in the building, located directly 8 floors below the short-sale condo, is priced at $260,000.
Depending on someone’s credit score, this condo should break-even on a monthly basis if you’re able to get $1,500 per month for it with a 20 percent down payment. The condo faces west and has a view of the Miami River. The listing says that the monthly maintenance fee is $418 per month.
Last Summer, a client of mine placed on offer on unit 2703 at Brickell on the River, which has a very similar view as 2907, for $240,000. It, too, was a short-sale. The condo was listed for $280,000 at the time. The bank felt that our offer was too low to warrant a counteroffer. I received word that the bank would not accept anything that wasn’t “very” close to the listing price. Within a month, the list price was actually increased to $320,000. Needless to say, the condo failed to sell through the MLS, despite the price eventually being lowered to $259,000 on March 12, 2008. The listing was canceled a few weeks later. I’m guessing that the condo went into foreclosure, but I haven’t confirmed that.
Close to one year later we have unit 2903 on the market for $200,000. That’s close to a 30 percent discount from what the banks, a year earlier, felt that they should be able to get. I think $200,000 for this condo at Brickell on the River North is a very good price. In fact, it is probably one of the best priced one bedrooms currently offered in all of Brickell. I guess time will tell for how much this condo eventually sells.
The Urbanization of Brickell
Many of you local to Miami may have read in Sunday’s edition of the Miami Herald an article entitled, “Brickell’s Draw: A Feel of City Life”. It describes the great transformation that Brickell has seen within the past 2-3 years. The article is a must-read for non-locals who may not be very familiar with what Brickell has to offer. Be sure to also take a look at the video which provides great insight from the perspective of a Miami resident.
New Miami Condos – Closing Rates for April 2008
It has been a while since my last post regarding the closing rate of various Miami condo developments. The last update was provided on February 20, 2008. As with the February post, the first graph below reveals the closing rate of those Miami condo developments that began closings prior to November 1, 2007. The condo developments are ordered, from left to right, according to when closings began.
Below you will find the date that each condo development began closings:
I’m quite impressed with the closing rate of Loft 2. Their closing rate has improved roughly 13.5 percentage points since the last update and is within 6 percentage points of reaching the 100 percent mark. Great job!
The rest of the condo developments in this group have not changed much since the February update. The closing rate of 50 Biscayne has improved about 6 percent while the closing rate of Onyx on the Bay has improved a little more than 4 percent. The rest of the condo developments have improved 1.5 percent or less. You may notice that the closing rate of Star Lofts on the Bay has actually gone down since the February update. Well, obviously, two closings weren’t rescinded. I discovered two deeds that were re-recorded. I hadn’t caught these in the February post. No additional units have closed at Star Lofts on the Bay since November 8, 2007.
The following graph shows the closing rate of various condo developments in Miami that began closings after November 1, 2007.
Below you will find the date that each condo development began closings:
For the most part, a lot has changed with this group since the February closing rate update. Of this group of condo developments, I must say that Apogee South Beach has done a remarkable job! Apogee was the second to last condo development in this group to begin closings, yet it has far surpassed the success of the others. The high closing rate of condos at Apogee proves once again that the ultra-luxury condo market in Miami Beach is still doing quite well.
The 1800 Club has pushed well through the 50 percent mark and has improved roughly 16 points. Quantum on the Bay is hovering right at 50 percent which is good considering that they received the TCO on the second tower around the beginning of March. I can definitely see it hitting the 75 percent mark within the next two months. I also want to note that Plaza on Brickell and 1060 Brickell are both comprised of two towers. I’ve heard that closings for condos in the 851 tower of Plaza on Brickell recently began. The condo units in the 851 tower represent 60 percent of the overall development. I also know a few people who have contracts on condos in the 901 tower who are still waiting to receive a closing date. I’m not sure if only one or both of the towers at 1060 Brickell have begun closings yet.
Next month, I plan to include Marina Blue, Wind and Midtown 4, which each began closings recently.
Disclaimer: The above closing rate information was derived from public County records. There can be a 2-3 week delay from the time that a closing occurs and the time that the closing is recorded.
The Sail on Brickell Penthouse 2 Bedroom/2 Bath Foreclosure – $299,900
In September of last year, I revealed a very compelling piece about the apparent mortgage fraud at The Sail on Brickell. At the time, a 2 bedroom/2 bath at The Sail on Brickell had recently sold for $670,000!!! Now, there’s a bank-owned 2 bedroom/2 bath Penthouse condo at The Sail on Brickell that is listed at $299,900. Was I right about the apparent mortgage fraud or was I right?
I urge everyone to read my post in September. It will provide much insight as to how prevalent the mortgage fraud was back then in Miami. I actually reread my post and I was like “Damn! That was a great post”. Back then I didn’t have many readers. My readership was made up of just around one hundred people.
Currently, there are two 2 bedroom/2 bath short-sales at The Sail on Brickell listed for $599,000. Both short-sales are the condos that I discussed in my July and September posts that had recently closed. This makes it apparent to me that the buyers never had the intention to hold these condos but rather defraud our U.S. banking system. Our banking system in this country has enough problems. I’m very upset about my findings. Very!
Here are the two condos that were sold at The Sail on Brickell in July and September:
- Unit 2504 was listed at $670,000 and sold for $670,000
- Unit 2204 was listed at $670,000 and sold for $670,000
Both were sold by the same broker. <<<<<<<<<<<<<
Where is the mortgage fraud task force when you need them?
Two Multi-Million Dollar Condos Recently Go Pending in Brickell
Two multi-million dollar condos in Brickell recently went pending within the past 30 days. The first was a 5 bedroom/6.5 bath Penthouse condo at Santa Maria with 6,300 square feet that went pending on March 3, 2008. The list price was $5.29M, or $840 per square foot. The views from this Penthouse condo at Santa Maria are simply amazing, as you can see from the above picture. The MLS listing description and photos of this Penthouse condo at Santa Maria will show you just how amazing this condo truly is.
What’s interesting to note is that the current owner purchased this Penthouse condo at Santa Maria for $3.9M in the latter half of 2005, when many would say the Miami condo market peaked. This just goes to show that the ultra-luxury condo market in Miami has continued to hold up well. Despite the potential profit that the current owner makes, anything under $840 per square foot for this unit is a freakin’ bargain. In my opinion, Santa Maria is the best condo building in Brickell and is in a complete league of their own. No foreclosures or short-sales that I’ve ever come across, and a comparatively very low maintenance fee, despite the world-class amenities that Santa Maria has to offer.
The second multi-million dollar condo in Brickell to go pending within the past 30 days is the Penthouse condo at Epic located on the Miami River near the inlet into Biscayne Bay which went pending on Febuary 27, 2008. It’s a 4 bedroom/5.5 bath two-story Penthouse with 4,522 interior square feet and an amazing 7,488 total square feet, including balconies. The list price on this bad boy is $5M. Epic is currently still under construction but should be completed by the end of this year.
What is not a coincidence is that the developer behind both condo buildings is Ugo Columbo. He is well-known for delivering some of the most high-quality condo products to Miami. His reputation definitely supersedes him. I can’t wait to get inside Epic to see how it compares to his previous condo developments such as Santa Maria, Bristol Tower and Grovenor House.
Here are some multi-million dollar condos in Dade County that have actually resold and closed in 2008:
- Villa del Mare #7274 – $12,360,000
- Porto Vita #1104 – $3,600,000
- Continuum #TH-7 – $3,100,000
- Bellini Condo #1102 – $2,900,000
- Santa Maria #3005 – $2,680,000
- The Setai #3106 – $2,600,000
- One Bal Harbour #707E – $2,550,000
- Grovernor House #1902 – $2,525,000
- Continuum #TH-9 – $2,350,000
Emerald at Brickell 2 Bedroom Tower Suite Short-Sale – $499,000
This 2 bedroom/2 bath tower suite short-sale at Emerald at Brickell slipped through my radar since the middle of February because the listing agent failed to include the correct zip code with the listing. This short-sale condo is listed at $499,000, or about $395 per square foot. It has direct views of Biscayne Bay and Key Biscayne.
The next best priced tower suite condo at Emerald at Brickell is listed at $699,00. It is slightly bigger but is still listed at over $140 per square foot more. If the correct zip code (and correct spelling of the development) had been included, I suspect that this condo would have been under contract by now. It fell off my radar and I’m guessing that it fell off the radar of many other Realtors and buyers.
Vue at Brickell – Are Prices Finally Bottoming?
On May 24, 2007, I wrote a blog post entitled “Vue at Brickell – Overpriced or Insanely Overpriced?“. At the time, the average list price of condos available at Vue at Brickell was over $550 per square foot. As many of you now know, and as the blog post explains, the inflated list prices were a direct result of the rampant mortgage fraud that occurred in the building. Since that time, as more and more people became aware of the situation and as a large number of foreclosures in the building hit the market, prices at Vue at Brickell have come down like a ton of bricks.
There are now indications, however, that prices at Vue at Brickell may be close to reaching the bottom. Buyers are finally stepping in. Since the last week of January, there have been 7 condos at Vue at Brickell that went pending. With list prices of $190,000-$199,900 for 1 bedroom condos and $220,000-$249,900 for 2 bedroom condos, it makes sense that buyers are now beginning to accept the risks associated with buying a condo in a building that has a high number of foreclosures. It will be interesting to see the sales prices of these condos at Vue at Brickell once they close. It’ll give us a better indication as to the level of motivation of some of these banks.
Below you’ll find the best deals at Vue at Brickell:
- 1 Bedrooms
- Unit 2111 – short-sale – $162,500
- Unit 1710 – short-sale – $162,500
- Unit 1211 – short-sale – $162,500
- Unit 1413 – short-sale – $162,500
- Unit 2307 – foreclosure – $205,000
- 2 Bedrooms
- Unit 1303 – short-sale – $229,900
- Unit 1505 – short-sale – $250,000
- Unit 1304 – short-sale – $279,900
- 3 Bedrooms
- Unit 3006 – short-sale – $357,000
- Unit 3606 – foreclosure – $379,900
The mortgages of three of the four short-sale one bedroom units listed for $162,500 are held with the same lender. This may be an opportunity for an investor to grab all three for a bargain-basement price. There are currently only 8 condos available for rent at Vue at Brickell. Within the past 12 months, the lowest that a one bedroom has ever rented was $1,300 per month. The lowest that a 2 bedroom rented was $1,550 while 3 bedrooms condos bottomed at $2,500 per month.
Coming Soon: Sushi Siam at Plaza on Brickell
Last week I noticed the above sign, “Coming Soon: Sushi Siam,” as I drove by Plaza on Brickell. This is great news not only for Plaza on Brickell but also the entire neighborhood of Brickell.
Sushi Siam is a very well known sushi restaurant located on Lincoln Road in South Beach. I find it very interesting that more and more establishments are deciding to expand their operation from South Beach into Brickell. A few years ago, Novecento, a restaurant and bar, made the expansion move and recently we saw Segafredo Cafe, a restaurant and lounge, make the move as well. It shows me that these establishments are quite confident that Brickell already has enough year-round residents to justify such an expansion. (I just wish Lime Fresh Mexican Grill would make the jump as well. I heard a while back that they committed to opening their third restaurant at Midtown Miami though.)
Eventually the commercial spaces found on the ground level of the new condo buildings in Brickell, such as Plaza on Brickell, will be a natural extension of Mary Brickell Village, with new retail stores and restaurants. That’s when we’ll really start to see the foot traffic in Brickell.
By the way, I was digging through some old pictures that I took in July 2005. Remember what Plaza on Brickell consisted of back then?
