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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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?

1. Will History Repeat Itself in Miami? – October 28, 2007
2. Advice to Miami Condo Sellers – July 26, 2007
3. Miami Condo Auction a Big Disappointment – September 21, 2007
4. An Analytical Analysis of Analyzing Condominiums – June 15, 2007
5. Sunday Afternoon Bicycle Ride Through Brickell and Downtown Miami – October 14, 2007

The following was the runner-up:

1. 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.

Miami Condo Developer to Miami Condo Vulture?

Earlier today, the South Florida Business Journal published an article entitled “Related Considering Fund to Buy-up Condos“. It reveals that Miami condo developer, Jorge Perez, is considering to create a fund to buy condos throughout Miami at a discount. The article states that a source disclosed that the funding would come from Latin America.

Much of the The Related Group’s condo inventory is located in Brickell and Downtown Miami. Jorge Perez, CEO of The Related Group, recently stated on NBC6 that his only regret is not buying more land around his first condo development, One Miami. While many condo developers in Miami are now regretting ever getting into the mix, Jorge Perez regrets not buying and developing more land.

As the article points out, I think there will be a [huge] conflict of interest if Jorge Perez’s fund acts to buy defaulted condos that arise at Related developments throughout Brickell and Downtown Miami. I don’t think the banks that loaned the money to The Related Group will find the situation too appealing. I, for one, would feel a bit suckered. Additionally, buyers who do close on condos in Related developments might feel a bit suckered as well if they later hear that the developer himself acted as a principal to buy defaulted condos at much lower prices.

Miami Condo Investments Joins the EWM office in Brickell

I am pleased to officially announce that I have decided to join the EWM office in Brickell. The office is centrally located in the recently developed Mary Brickell Village which has great shops and restaurants and has become the focal point of Brickell. It was a logical choice for me since I conduct most of my business in Brickell.

EWM has been in existence since 1964 and has become one of the top real estate brokerages in South Florida. EWM is owned by HomeServices which is wholey owned by world-renowned Warren Buffett’s Berkshire Hathaway and is also affiliated with Christie’s Great Estates.

EWM is a pro-blogging real estate brokerage. It even has their own widely read real estate blog which has great information pertaining to neighborhoods stretching from the southern tip of Florida to West Palm Beach.

You might be saying to yourself “Congrats Lucas, but how is this move going to benefit me as a reader?”. There’s just one word that comes to mind – statistics. I know that you love statistics, as do I. EWM has the best software that can break down the market like no other can. The software dates back 5 years while the MLS data only goes back 2 years. You can get a taste of the software here at the Facts & Trends link. This is just a taste, however. The full software, which I have access to, allows me to break the data down by city, zip code, development name, single family vs. condo, waterfront vs. non-waterfront, price, square foot and date. I was in heaven when I accessed this software. I’m a big statistical buff, as many of you already know, so having this type of data at my fingertips is sensational! I can now tell someone the average price per square foot that XYZ development was selling for back in 2002. How great is that?!

I’m also now able to provide IDX pages for individual developments. I plan to incorporate all Brickell, Brickell Key, Downtown Miami and the Arts District developments onto my blog. You’ll be able to click on a condo development name to view available units as well as recent sales. This should be implemented within the next month.

You may or may not have noticed that I neglected to publish a December index for Brickell, Brickell Key and South Beach. I have no intentions to do so. The holiday season is upon us. For the rest of December I plan to pretend that the real estate and stock markets are functioning superbly. What a joyous fictitious month it will be!

After the New Year, the Brickell and Brickell Key condo indices will return. The South Beach condo index, however, will not. I plan to focus this blog on condos in Brickell, Brickell Key, Downtown Miami and the Arts District. I know South Beach well but don’t plan to focus my efforts there.

Let’s just say that he’ll take everything east of Biscayne Bay and I’ll take everything west of it. A fare trade in my eyes.