Miami Condo Investments Is Going To The Movies! Cinemex At Brickell City Centre Update
Last month, we received information that the Cinemex movie theater in Brickell City Centre was set to open on February 17. This news was welcomed with much excitement by the people who have been waiting patiently to see a movie in Brickell. The people with Swire were less impressed. It seemed there were some delays behind the scenes that we were unaware of, and the opening day was pushed back to March 17.
As that date draws nearer, the permits still haven’t been closed out and opening day is rescheduled for March 24. This process of final permits always leaves us with very fluid dates. The date that they are closed out depends upon the schedules of the inspectors, contractors, the amount of paperwork on the desk of the inspectors and a host of other moving parts that could create a delay. Even so, we took a peek inside this week and saw that things are indeed very close to completion.
We are just as anxious as everyone else to see the theater open! This is something we have wanted to have in the neighborhood for 10 years now, and at last it is SO CLOSE! We have even signed on to have a 30 second commercial that will air before each movie on each of the 10 screens at the theater, starting on opening night. We are so eager to see the theater open, we can’t wait to show it to you! What do you think?
Just Listed – Beautiful 3 Bedroom Condo at the Luxurious Jade at Brickell Bay
I am pleased to announce our newest listing – a beautifully renovated and furnished 3 bedroom, 3 bath, flow-through residence at the luxurious Jade at Brickell Bay with 2,130 interior square feet; 32-inch by 32-inch, white porcelain tiled flooring throughout the living areas and marble flooring in all bathrooms. It also includes motorized shades on all windows; closets with built-in cabinets; custom lighting; Samsung front-loading washer and dryer; and Master Bath with Jacuzzi tub, separate glass-enclosed shower, bidet, and double vanity. Best of all, the unit is located on the 41st floor offering breathtaking views of the Atlantic Ocean, Biscayne Bay, Virginia Key, and Miami Beach skyline.
It is rare that a 3 bedroom unit on a high floor becomes available for sale at Jade. In fact, it has been almost 3 years since one above the 36th floor has been listed for sale. From these very high floors, the view to the north becomes significantly better because it completely clears all but one of the high-rises on Brickell Key. It is also rare to find a renovated unit at Jade, especially one with such a clean, modern decor. Unsurprisingly, the feedback that I have received thus far from agents and their prospective buyers has been very positive. I have no doubt that this showroom-quality residence will soon find its way to a very happy buyer. The asking price is $1,999,999 and condominium association dues are $1,747 per month. It includes 2 parking spaces (1 assigned space + 1 valet space) plus storage.
Despite being built in 2004, Jade at Brickell Bay is still regarded as one of Miami’s finest condo developments. It is a waterfront development located along Biscayne Bay at 1331 Brickell Bay Drive. It is comprised of 338 total residences and rises 48 stories. Amenities at Jade at Brickell Bay include: infinity-edge pool, hot tub, state-of-the-art fitness center, spa, full-service concierge, rooftop sky lounge, complimentary valet parking for guests, 24-hour business center, and more.
See below for additional photos and information. If you or someone you know have an interest in scheduling an appointment to view this spectacular property, please contact me via email at [email protected] or on my cell phone at 786-247-6332.
$200k Price Chop For Andy Murray’s Brickell Apartment
Four months ago, Andy Murray relisted his 45th floor 4 bedroom apartment at Jade Residences at Brickell Bay, and we were optimistic at his chances of coming out on top with a workable deal. Well, that didn’t happen. As of today, he has slashed his price by nearly $200,000 in order to reduce it below $2.5 million.
To be honest, the listing photos really don’t do this lovely apartment justice. Jade Residences at Brickell Bay is a great building and is increasingly popular despite the inventory struggles of our current market. The apartment is a 3,415 square foot 4 bedroom, which is insanely large for the Brickell area. It is also on the northeast corner of the building, offering amazing views of Brickell Key, the Port of Miami, Brickell, Miami Beach and of course the Biscayne Bay. Unit 4201 has the same layout and recently sold for $2.7 million. We recently sold apartment 904, which is a smaller plan, but the buyer was able to take out a conventional mortgage on the property… something that is not particularly common in the Brickell real estate market and speaks very highly of how the building is being run.
As for the active and available alternatives to this listing, we have had apartment 4107 on the market for just over a week and have already had several prospective buyers. Apartment 4107 is a three bedroom with bay and city views. You can compare the layouts and photos here.
Do you think Andy will have success this go-round?
Four Ambassadors’ Waterfront Restaurant Space To Be Redeveloped As ‘Brickell Bay Boardwalk’
A long underutilized stretch of waterfront restaurant space is being offered for lease with a redevelopment plan, according to an offering summary we received this week. Many people would be surprised to learn that there is a nearly 15,000 square foot waterfront restaurant underneath the Four Ambassadors at 8th Street & Brickell Bay Drive. At long last, a redevelopment plan is in place.
The Brickell Bay Boardwalk will be a 14,354 square foot restaurant space with 160 feet of linear bayfront space and an option for tenant docks. Once completed, the restaurant will have beautiful views of the Biscayne Bay and Brickell Key. The Mandarin Oriental is just across the bridge and Brickell City Centre is just 2 blocks to the west.
After a 6 month rent abatement for build-out, the space is offered for $96/square foot NNN with $14/square foot CAM charge. The space is also divisible in to two restaurant spaces of 5,260 square feet and 9,094 square feet. It looks like an interesting addition to Brickell and a great use of the space! What do you think?
January 2017 Brickell Real Estate Market Update
This is a very interesting time in Miami’s real estate market and we are going to start doing more regular market updates of the various neighborhoods and even individual buildings. We’ll start with Brickell, but don’t hesitate to reach out and make a request if there is a specific neighborhood or building that you are curious about.
SALES MARKET
January 2017 brought 41 closed sales in Brickell, according to MLS data, down from 66 in January of 2016. These were seller to buyer transactions, not developer to buyer transactions, since developer to buyer transactions are not reported in the MLS. We will do a separate post with developer-buyer transactions for each building as they open and the sales are recorded.
Although the number of transactions fell, the average price rose to $514,000 for those 41 closed sales. 2016’s average price was $500,000. The average price per square foot also rose to $412/square foot, up from $401/square foot last year. The condos that found buyers had an average time on the market of 163 days, last year was 114 days. It seems the longer marketing time and increasing inventory choices for buyers has made the sellers more eager to sell. The buyers who transacted were able to negotiate down to 92% of the asking price this January, down from 97% of the buyers who bought last January.
The most expensive listing that sold this month was Tower Suite 3801 in Reach at Brickell City Centre. It sold for $1.95M and was offered at $2.1M and the buyer was represented by our very own Lucas Lechuga. We did an in-depth look at the numbers from that transaction last week. The least expensive sale of the month was a $168,000 studio at Brickell’s original condo building, the Four Ambassador.
As of today, there are 1,888 active listings in Brickell (300 of which are new listings in January), averaging $725,000 and $508/square foot. If we continue selling at this rate, we have enough inventory for 46 months of business. With this amount of available alternatives for the buyers, the sellers who are eager to move on from their units need to not only price them aggressively but also hire an agent with strong marketing power so that you stand out from the crowd.
RENTAL MARKET There were 306 new leases signed in January of this year, up from 264 in 2016. The average rental price is $2,466/month, basically the same as last year’s $2,440. The 306 landlords who found new tenants beat out the competition of 1,442 alternative active listings, 465 of which were new listings.
Although the number of transactions is up and the prices are holding firm, the marketing time is increased this year to an average of 79 days on the market. Last year it took an average of 65 days to find a new tenant and move them in.
Tenants should not smell blood in the water yet though. The 306 leases that were signed garnered 96% of the asking price, so lowballing isn’t a thing just yet. The landlords who are not into 2+ months of vacancy are pricing their units well and finding a tenant quickly.
The most expensive rental of the month was the Four Seasons Residences Unit 44C. That one rented for $9,750/month. The least expensive was a studio at The Club at Brickell Bay for $1,400. It is important to note that the entry-level apartments in the neighborhood are less likely to negotiate price. Brickell is increasingly a hot neighborhood, so the entry point options are very much in demand.
What trends do you anticipate for Brickell? Weigh in and we’ll follow back up next month!
Inside Rise at Brickell City Centre
Last summer, we were able to take a photo tour through Reach Tower at Brickell City Centre shortly after it opened. Reach is now 95% sold out and its sister tower, Rise at Brickell City Centre has opened as well.
Rise is located at 88 SW 7th Street, above Saks Fifth Avenue. It has 43 floors and 390 total units ranging from 1 bedrooms up to 3 bedrooms, Tower Suites with 4 bedrooms and 3-5 bedroom Penthouses. They are currently 60% sold and move-ins are underway. The prices for each tower start in the mid $600,000’s and go up to $2,750,000 for the 4 bedroom Tower Suite at Rise.
Stay tuned for Friday, when we will tour the available Tower Suites and Penthouses on both projects with details on each.
Here are the photos of our tour of the Rise model apartments. You can find the associated floor plans here. If you are interested in a personal tour, don’t hesitate to reach out. We’re always available to set it up for you.
The street-level lobby:
The 6th Floor Resident’s Lobby:
A full-service Hammam and Salon:
The model units are all on the 31st floor:
Diana and Francisco are making deals while touring. Multitasking like champs!
Surprisingly, the west view apartments also have a water view:
The kitchen is finished with the Latte color palette. Also available, kitchens in Espresso palette.
These are the standard finishes for all master bathrooms:
Master bedroom closets are delivered finished out:
Northeast views from the 31st floor:
Direct east views:
The rooftop of the office towers are finished with grass, making an additional community area:
Reach Tower as seen from Rise:
Our sunset happy hour awaits! Check out that view!
Doing deals while sampling the amazing food at Sugar. I recommend the boneless Korean chicken wings, but everything we sampled was amazing.
Looking south into Brickell as the sun sets.
Brickell Heights is 100% Sold Out, Closings Beginning in the Spring
Just ahead of their opening day, Brickell Heights has sold the last of their pre-construction condos. The building is preparing to open on schedule in late April or early May of this year, according to the developer’s representative who we work with, Yenny Hanley.
Of the project’s 690 units, the last to sell were the penthouses, but this is a common occurrence in new projects. Because they are so customized, the penthouses typically take longer to sell. SLS Brickell still has a penthouse available, as does SLS Lux and ECHO Brickell. Back when Infinity at Brickell was doing their initial sell-off, the penthouses were in the last handful of apartments to sell as well. Brickell Heights has been a very successful project, with all of the units being sold for around $500/square foot.
The closings are expected to begin in late April or early May, depending upon the permit process. Equinox is already hard at work signing up new members for their 30,000 square foot location within the project. SoulCycle is also expected to open alongside the residential portion of the project.
It is so exciting to see our new neighborhood coming together!
Brickell Flatiron’s Foundation Pour Is Tonight
Image courtesy of CMC Group
The foundation pour for Ugo Colombo’s Brickell Flatiron is scheduled to begin tonight! When completed in 2018, the building will reach 750 feet into the skyline and have 65 floors.
This will be the largest pour to-date for Moss Construction, the contractor for the project. Since the building is so tall, the foundation will be 12,500 cubic yards and use 1,300 truckloads of concrete. This will take place over a span of 24 hours, according to The Next Miami. In order to ensure the strength of the foundation, the concrete must be poured continuously until it is complete.
Of the 552 total units, around 60% are currently sold, a representative from the developer reported. Prices on remaining inventory start at $465k. If you would like to view the pour, the 10th Street Metromover Station offers a bird’s eye view. Concrete starts flowing at 10pm and the developer will be hosting an event on Saturday to commemorate the milestone.
Miami’s Rental Market Is In Decline, About To Be Flooded. What Does This Mean For You?
The rental market in the Downtown Miami area is in for a jolt, according to an inventory report from the Downtown Development Authority. Many people expected that rental prices would begin to decline in 2017 as the new luxury condo buildings begin to open. As of the third quarter of 2016, the prices were already beginning to decline after buildings such as The Bond at Brickell and SLS Brickell began to open, flooding the market with new options for prospective tenants.
What many people did not see was the influx of new rental buildings that are going to start being delivered in 2017. A few have already come to market, but 2017 promises a whole new array of choices for tenants. Landlords are fervently trying to keep their tenants if leases are coming up for renewal, but many of the options are too good to pass up. In 2016, we saw 3,748 new condo units come to the market and 1,038 additional units in rental-only buildings. 2017 will flip that number, with 2,774 new condo options and 3,575 new units in rental-only buildings.
What to do if you are a tenant?
Don’t be greedy. While the market is in decline, the condos for rent in Miami are not going to rent for fire-sale prices. Yes, you may have more leeway in negotiation than once before with condo units, rental-only buildings typically do not negotiate their prices. Rather, they are pre-set at the beginning of each day based upon an algorithm in their computer software.
A quick move-in is worth a lot. If you can offer to move-in as quickly as possible, you will have more negotiation power than if you are shopping several months in advance. I always say that the sweet spot between the contract date and the move-in date is 3 weeks. That gives everyone enough time to get their paperwork together and applications completed. Building applications commonly take 2 full weeks in condo developments. Rental-only developments are commonly quicker, so are a good option if you get in a pinch and need to move even more quickly.
Have ONE agent to represent you. Make sure that person is someone who is well-informed about the market and what is available. That will prevent you from drowning yourself in options and becoming frustrated. Be open with your agent about what features you like and what features you are disinterested in. Let your agent take you to rental developments as well. Many times, we know ahead of time what the availability and rough price ranges are at the rental developments.
What to do if you are a landlord?
If you currently have a good tenant, entice them to stay and treat them well.
Don’t panic, but understand the monetary value of each month of vacancy. Price your available rental on the market as quickly as possible and with a firm that will give you the most exposure.
When reviewing offers, consider reductions based upon the risk of a full month of vacancy rather than holding onto the idea that your condo will earn as much this year as it did in years past. It won’t. If you have a unit that was previously earning $3,000/month and you receive a quick-move in offer for $2,750/month, it would be a good business decision to accept. Otherwise, you could be stuck accepting far less in contract value on top of the $3,000 expense of having the unit vacant for a month.
Negotiate with people who lowball. Run your numbers and decide what is the lowest price you can accept based upon available options for the tenant and the amount of vacancy that you are already into. Not that you will always have to accept that lowest price, but you know how much room you really have for negotiation.
Remember that just like market storms that we have weathered in the past, this one will blow over. The condos will still be beautiful and in-demand afterward. If you need to sell, then sell. Otherwise just be patient until the inventory is absorbed.
How Much Should The Owners Of Brickell Harbour Expect From Their Buyout?
Earlier this month, we reported that the owners of Brickell Harbour are being solicited for a buyout by a mystery developer. Well, the offers have come in and unfortunately (yet expected), we cannot talk about what has been offered because they are bound under a tight confidentiality clause. What we can talk about is how much the sale is likely to garner for the owners if a good deal is made.
It is common in condo buyout deals for the developer to hold the owners under a contingency stating that the sale will only take place if 90% of the residents agree to sell. Otherwise, it makes no sense for the developer to own the building since they would not be able to develop. There are always those last few owners who hold out for the most money and sometimes it works, but sometimes it just ends up throwing a wrench in the entire deal. So, how much is a realistic number for Brickell Harbour as a development site?
First, let’s look at the most recent comparable sale. The development site at 25 NE 25th Road is just over 1 acre of waterfront land with 155 linear feet of bay frontage. It is around 300 feet deep. Once you break down the final purchase price of $48 million, that works out to just over $1,000/ft of land. The units combined are comprised of 76,291 square feet of livable space or $629/square foot ($800,000 per unit for the 61 units).
25 Bay Tower Development Site
Now let’s look at Brickell Harbour. In comparison to 25 Bay Tower, Brickell Harbour is a far superior development site. Its location at the south end of Brickell Bay drive is closer to the hustle and bustle of Brickell’s city vibe, yet secluded enough to offer peace and quiet along the bay. The site offers 275 feet of linear bay frontage and half an acre more of developable space. Both sites are in the same zone for height restrictions, allowing up to 600 feet of building height. Variances can be given, but this is where we are today.
Another feature of the site at Brickell Harbour that sticks out as a big upside is the marina. Building new marinas is extremely tedious from a permitting standpoint due to the environmental impact they cause, making them nearly impossible to add. Given all of these factors, I estimate that a final sales price of Brickell Harbour would be far north of the $1,000/square foot of land that 25 Bay Tower received.
Now that we’ve looked at the comparable and determined why Brickell Harbour is worth more, let’s get down to the numbers. Using the same price per square foot of developable land as OKO Group’s purchase would amount to a $70 million purchase for Brickell Harbour. That breaks down to an average of $380,000 per unit at Brickell Harbour, or an average of $512/square foot of livable space. Add in the increased desirability of the lot size, location and added marina, we could see a purchase of $80 million!
How much do you think the owners will end up garnering at the end of the negotiation? Do you think it will go through?
