New Miami Condos – Closing Rates for February 2008
This month, I decided to make two separate graphs to show the percentage of total units that each development has closed since closings began. The first graph, found immediately below, reveals the closing rates for Miami condos which had their first closing prior to November 1 2007. The condo developments are also now ordered according to when closings began, with the first to the left.
Below you will find the date that each condo development in the graph above began closings:
Not much has changed with this group of condos since the last update was provided in January. Ten Museum Park and Latitude on the River inched up about 2-3 percentage points. Star Lofts on the Bay remained the exact same and Onyx on the Bay was able to close one additional condo. The Loft Downtown 2 moved up a little over 5 percentage points and 50 Biscayne moved up almost 7 percentage points. A few different sources have told me that there have been about 200 defaulted condos at 50 Biscayne. This is in line with the 239 condos that are currently unaccounted for according to public records. Several people have left comments here stating that the developer has chosen to lease many of the defaulted condos and ride out the storm rather than sell to a bulk buyer. I’m sure other developers will follow suit, which will decrease the expected inventory levels for a few years.
Below you will find the date that each condo development in the graph above began closings:
The graph above includes a group of condos which began closings within the past three months. I was surprised to see that 1800 Club has fared the best, although it should be noted that it did begin closings first amongst this group. Brickell on the River 2 has made much progress since the end of January when closed condos represented about 4 1/2 percent. Quantum on the Bay has done well considering that it has only received a TCO on the first of its two towers. Driving by a few times within the last couple of weeks, I did notice more lights on at night than one would expect from a condo development that just started closings about a month and a half ago. Same goes with 1800 Club. With a closing rate of about 20 percent, Apogee South Beach is off to a good start. Prices there start at about $2.5M. Plaza on Brickell has also only received a TCO on the first of its two towers. We should see much improvement from most of the condo buildings in the above group within the next month or two.
You may have noticed that One Bal Harbour and Midtown 2 are not found in this month’s update. I chose not to include One Bal Harbour because the Regent condo-hotel units have now begun closings and I did not want to intermingle the two. I do know, however, that WCI Communities has been quite successful in closing units at One Bal Harbour. They’ve closed around 150-155 condos out of a total of 185. I also know that several have been reassigned and are currently under contract. I expect WCI to have only a couple developer units left at One Bal Harbour by the end of March.
I didn’t include 2 Midtown because I noticed that a bunch of deeds have been re-recorded there. It would have taken me forever to sort through that mess. The following was written along the left-hand side of the re-recorded deeds: “This deed is being re-recorded to correct vesting on title”.
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 gets recorded.
Miami Condo Construction Update
Super Bowl Sunday afternoon, I decided to walk around Brickell, Downtown Miami and Park West to provide those who reside outside of Miami a construction update for various condo developments. Below, you’ll find various pictures that I took during my walk:
500 Brickell looks to be about 2-3 months away from being finished.
Epic Miami looks to be almost topped off.
Icon Brickell appears to have topped off one of its towers and close to topping off the other two.
Met 2 will be comprised of two towers. One will be a 47-story high-rise comprised of Class A office space. The second will be a 42-story signature hotel called Marquis, a JW Marriott Collection Hotel.
Asia is located in Brickell Key. Probably another 2-3 months until this luxury high-rise is ready to begin closings.
Met 1 is the white tower located in the center with the Wachovia building hovering directly behind it. Met 1 is complete but I’ve yet to hear for when the first closing is scheduled. Has anyone heard anything?
Marina Blue, 900 Biscayne Bay, Ten Museum Park and Marquis. Marina Blue is just about done and should begin closings very soon. Gotta love the architecture and glass on Marina Blue! 900 Biscayne Bay will probably begin closings sometime within the next 2-3 months. Although closings at Ten Museum Park began in the Summer of 2007, the amenities and spa are far from being 100 percent complete. Hopefully by July we can file it away as being completely finished. Marquis still has quite a ways to go before being topped off.
Click on the following link to view a slideshow of other pictures that I took during my short walk in Miami:
Assessing the Neighborhoods and Condo Buildings of Miami
A great comment was made this morning asking me for my take on the various neighborhoods in Miami. Excellent topic and one that I’m sure my non-local readers would appreciate.
The map above is a portion of a larger map that was created by the Miami Downtown Development Authority. It is a great resource for people to see where various condo buildings throughout Miami are located. I realize that it is very difficult to view the above image. I do, however, have a PDF of the map on my file sharing page. Click on the file called “Miami Developments Map Aug07”. You may also want to view the file called “Miami Developments Report Aug07”. There you will find profile pages for several condo developments in Miami.
The map does not encompass all of Miami, however. It basically covers just those neighborhoods in Miami that had the most condo development during our recent boom. It also doesn’t show every condo development on the map. I’m not sure how far back it goes but my guess is that it only includes developments built since 2004.
The Neighborhoods of Miami
- Brickell – Brickell is also known as the financial district of Miami. A lot of large international banks are located in Brickell. Also, the majority of Miami’s condos are located in Brickell. When you see a picture of the Miami skyline you are most likely looking at the various condo buildings in Brickell.This is considered by most to be an affluent neighborhood. There are some very high-end condo buildings located in this neighborhood such as Four Seasons Residences and Santa Maria.However, there is a large supply of condos that has recently begun to hit the market in Brickell. Buyers will definitely have good opportunities and a lot of options within the next couple of years. You really need to research these buildings considerably if you intend to buy. There are some condo developments in Brickell that I feel are overpriced and will likely come down over the next 2-3 years. There are others that I feel are appealing to end-users. I also wanted to note that there is only one waterfront lot left in Brickell.
- Brickell Key – Many would say that Brickell Key is viewed as an exclusive neighborhood with its gated entry into the neighborhood and its paved brick roads. There isn’t much new inventory in Brickell Key that will hit the market within the next year. In fact, only 123 new condos will hit the market once Asia closes its units. Other than the small piece of land behind the Mandarin Oriental Hotel, there is no room left to build in Brickell Key which means that there probably won’t be any new supply there for many years. Many might argue that the large supply of condos in Brickell will have an effect on prices of condos located in Brickell Key. However, some would tell you that they only want to live in Brickell Key.
- Downtown Miami – In my opinion, Downtown Miami needs more infrastructure before it can become a great neighborhood. It’ll take some time but will eventually become a great place to live. My opinion is that until this becomes a realization current prices will be difficult to justify. Long-term though, I think Downtown Miami will be a very happening place to live.
- Park West – Park West is a small area of Miami that is located directly south of the MacArthur Causeway. It is currently comprised of four buildings. I’ve said it before and I’ll say it again, I believe this neighborhood has the greatest long-term potential for various reasons that I’ve mentioned in other posts. In the short-run, however, I feel that prices won’t go up until grocery stores, pharmacies, coffee shops, etc. become available in Park West. I’ve heard from various people that Gardener’s Market is negotiating a lease to open a store at the base of 900 Biscayne. Park West needs more of this.
- Arts District and Edgewater – The Arts District is a fairly large area. I typically regard it as beginning at the Carnival Center for the Performing Arts and ending on NE 36 Street, although everyone has their own definition. In my opinion, this will be the last neighborhood to turn around. There is still a lot of room to build on waterfront lots because there are a lot of run-down buildings that could easily be knocked down. It does have Margaret Pace Park though which is a fantastic park. I think opportunities for investors to buy in bulk will become available in some of the new buildings in the Arts District. I currently know of one.
I’d love to hear everyone’s thoughts and input.
Brickell on the River South Tower Closings Off to a Slow Start
Closings in the South Tower of Brickell on the River are off to a very slow start. According to public record, there have been a total of 15 closed sales at Brickell on the River South Tower since closings began on December 21, 2007. The end of this week will mark the fifth week. However, as I’ve mentioned before, there can be delays in having closings recorded with the county.
According to the management office of Brickell on the River South Tower, there are a total of 334 units. This means that Brickell on the River South Tower has been able to close about 4 1/2 percent of their overall units within the first 5 weeks. Not a good sign!
To put this in better perspective, below you’ll see what percentage of units the following buildings were able to close within the first five weeks after closings began:
- Latitude on the River – 47%
- 2 Midtown – 15%
- Onyx on the Bay – 26%
- Ten Museum Park – 15%
What do you think about Brickell on the River South Tower’s 4 1/2 percent closing rate? Paraphrasing the words from the Coffee Talk with Linda Richman skit on Saturday Night Live, discuss amongst yourselves.
Santa Maria – Luxury Condo Living at its Finest
It is always a pleasure whenever I’m able to show a condo or two at Santa Maria. It is, by far, my favorite building in Brickell. Unquestionable quality, spectacular water views, fantastic amenities and spacious floor plans makes Santa Maria the best luxury condo building in Miami, in my opinion.
Yesterday, I was able to show a client about four condos at Santa Maria. I didn’t have time to get shots of the units that we saw but I was able to get some good pictures of the lobby and the amazing views from the Penthouse-level fitness center and spa. Most developers wouldn’t think twice about selling the Penthouse level at the highest price per square foot and instead placing the fitness center and spa on a much lower floor. Instead, the developer of Santa Maria, Ugo Columbo, brilliantly decided to allow all residents at Santa Maria to enjoy the panoramic views from the Penthouse level. Ugo Columbo also developed Bristol Tower (also on Brickell Avenue) and Grovenor House (in Coconut Grove), both spectacular developments as well.
Plaza on Brickell – A Look Inside
This afternoon I was able to take a look at about 4-5 condos at Plaza on Brickell with potential buyers. The picture slideshow below will show you a bunch of pictures that I took with the camera on my phone. Keep this in mind because the quality is not that good.
We weren’t able to gain access to the swimming pool deck at Plaza on Brickell today but I was able to see it from a couple of the units that we saw.
Overall, I was impressed with the building and the condos that I saw today. I’ve mentioned before that the condos at Plaza on Brickell offer the best prices that you’ll find of the new developments in Brickell. There will finally be a more affordable option to buyers in Miami. Hopefully, within the next couple of weeks I’ll get some higher-quality pictures of Plaza on Brickell that I’ll post on this blog.
Plaza on Brickell vs. 1060 Brickell
Closings began within weeks of each other. The location is about the same, with Plaza on Brickell and 1060 Brickell each residing just across the street from one another on Brickell Avenue. So, which condo development represents a better buying opportunity? Plaza on Brickell or 1060 Brickell?
About a month ago, I stepped foot into each condo development and was able to take a tour through both Plaza on Brickell and 1060 Brickell. Below are my thoughts. I’d love to hear the opinions of others who also have been able to tour each condo development.
Layouts & Functional Space – I felt that the closet space in the units at 1060 Brickell were much too small. I’ve heard this complaint from several others who have toured condo units at 1060 Brickell. A year-round resident likely won’t have enough closet space in a condo at 1060 Brickell. I was actually pleasantly surprised by the large walk-in closets in condos at Plaza on Brickell. Several of the 2 bedroom units at Plaza on Brickell actually have large closets in both of the bedrooms. I also really like the floor-to-ceiling glass windows in the corner units at Plaza on Brickell because lots of natural sunlight shines through.
Views – The views are about the same since neither are waterfront condo buildings. However, condos located on high floors looking east at Plaza on Brickell have fantastic direct bay views with views of Biscayne Bay, South Beach, Fisher Island and the Atlantic Ocean. I’d have to give the edge to Plaza on Brickell on views.
Condo Finishes – I was actually very impressed with the finishes of condo units at Plaza on Brickell. The kitchen finishes were especially great. I prefer the dark cabinets but everyone has their own preference. I thought I’d like the finishes at 1060 Brickell equally, if not more than the finishes at Plaza on Brickell, but this was not the case.
Miami – I’m Baaaack
I arrived back into Miami last night. NYC was awesome and I was actually contemplating extending my stay until Sunday but I’m happy to be home. Being in Chicago and NYC for the past couple of weeks reminded me just how many people are in this world. Walking (or driving) the streets of Miami you kind of lose site of that after a while. Walking one city block of Chicago or NYC though and you regain that perspective.
The Real Estate Connect Conference was a good experience. I met a lot of great and insightful people and listened to some very intelligent keynote speakers. I’m not sure if the conference was completely worth the price to me but it was still a great experience and I have no regrets. I’m a very tech-savvy person though, so for a Realtor who isn’t tech-savvy this conference would pay for itself in spades.
I decided to install the “Recent Comments” plug-in onto my sidebar. (You’ll find it down the right-hand side of the screen). I’ve known about this plug-in since I began this blog but I never really liked the look of it. I’ve decided to install it regardless because I know that you all enjoy participating in the latest conversations. I’ll often receive comments on a blog post that I wrote 4-6 months ago. Unless you periodically check that post or happen to stumble upon it via a search engine, then you’ll likely never know about the latest comment on that post. The “Recent Comments” plug-in will reveal the latest conversations occurring on this blog.
Here are a few tid-bits of information:
- Plaza on Brickell will begin closings in the 901 tower within the next week. I think Plaza on Brickell is the most affordable new condo development on Brickell Avenue. About three weeks ago, one bedrooms started at $210,000. I’ve mentioned before that I feel that Plaza on Brickell will act as the buoy for the Brickell condo market. If any of you are strongly considering purchasing in Plaza on Brickell then let me know because I can now get you inside so you can preview the development and walk inside condos that you may have an interest in buying.
- Avenue on Brickell (1060 Brickell condos) will begin closings within the next 7-10 days. This means big competition between Avenue on Brickell and Plaza on Brickell since closings will begin around the same time. They are basically right across the street from one another. It will be interesting to see which offers a better product.
- As most of you already know, Bank of America purchased Countrywide Financial Corp. yesterday morning for $4B in stock (a total investment of $6B when considering its $2B investment in Countrywide in 2007). With this acquisition, Bank of America will overnight become the largest mortgage originator and servicer. BOA is acquiring a HUGE customer base from Countrywide. Countrywide, however, will have huge losses as a result of bad loans and their credit risk will now be passed along to Bank of America. On the bright side, as a few financial articles have pointed out, Bank of America will enjoy huge tax savings because of this acquisition. Bank of America, which has large annual profits will be able to offset these profits with big write-offs from Countrywide. Wall Street, however, didn’t particularly like the details of the acquisition as Countrywide lost a little over 18 percent of its value on Friday.
- The Brickell and Brickell Key Condo Indexes will likely return later this month. I have a million things to get done before that but I should be able to make the time to get that done. It’ll be interesting to see if anything has changed now that we’re a few months into our peak season in Miami.
- I plan to hire a professional videographer/editor within the next couple of weeks. Up to this point, I’ve done all the video work on my own. I’m just an amateur videographer though. Every listing that I get from here on out (and the ones that I currently have) will have a professionally made video tour. The quality will be much better than I could ever do. About 80% of the buyer leads that I get from this blog are from non-locals. I think video will help these out-of-state or out-of-country buyers tremendously when previewing properties. Many brokers may not agree, but virtual tours are a thing of the past. Video may be cost prohibitive to most Realtors when compared to virtual tours but I think the investment for me will separate me from the rest. I’m trying to find a reputable videographer/editor in the Miami area. If any of you know of one then please let me know. I don’t need a production studio but rather an individual who knows what they’re doing and can deliver great Internet-quality video. Also, if any of you developers that read this blog are interested in having your development showcased then let me know because I would love to get inside with a camera crew to tour the common areas and various units. It’s all about eyeballs these days. Get more eyeballs to view your development and you’ll get more closed sales. Miami real estate has become an international market. You’ll also gain insightful comments from visitors of this blog. You may hear someone comment “The lobby looks amazing!” or “The closets are way too small”. This is the feedback that you need to hear, even if you may not want to.
A Year in Review for the Miami Condo Investments Blog
As a year-end post, I decided to go through all of the posts that I’ve written about the Miami condo market in 2007 to highlight my five favorite posts. This blog was born on May 12, 2007, so it’s really a 7 1/2-month review. It’s amazing that I’ve been able to find the time to write 180 posts since that time. The following five posts weren’t necessarily the most popular, although a few were, but rather just my own personal favorites. These are the blog posts that I felt were both insightful and well written. Is there a Miami Blogging Pulitzer Prize in existence yet?
- Will History Repeat Itself in Miami? – October 28, 2007
- Advice to Miami Condo Sellers – July 26, 2007
- Miami Condo Auction a Big Disappointment – September 21, 2007
- An Analytical Analysis of Analyzing Condominiums – June 15, 2007
- Sunday Afternoon Bicycle Ride Through Brickell and Downtown Miami – October 14, 2007
The following was the runner-up:
- Crisis Looming in the Arts District of Miami? – May 29, 2007
I’d love to hear which Miami condo post was your favorite of 2007.
