Preconstruction Sales for 600 and 700 Biscayne Blvd to Launch Soon?

While driving through Downtown Miami earlier this week, I noticed a number of signs at each corner of the sites for 600 and 700 Biscayne Boulevard.  The signs say “Another Luxury Development by Chateau Group”.  A telephone number is also included.  Despite a number  of calls, however, I have yet to obtain any additional information. Just assurances that a sales person would contact me soon.   The lots are located immediately south of Marina Blue and just north of the Freedom Tower.  I have heard rumors for months that pricing will range from $600-$800 per square foot for non-penthouse units at each of the two developments but I’m sure at this point not even the developer knows for certain.  It will be an interesting addition to the array of preconstruction condo developments that have been announced for Miami within the past year.  With the exception of One Thousand Museum, no other luxury condo developments have been announced for Downtown Miami.  The vast majority of them are located in Brickell or Edgewater.

Update: I just saw the exact same Chateau Group sign at the entrance of Gulfstream Park in Hallandale Beach.  There’s a a large lot at the intersection of NE 10 Ave and Hallendale Beach Blvd.  Is Chateau Group planning to build a luxury condominium development at that location as well?

One Thousand Museum Condos

To those not in the know, The Wall Street Journal article last week regarding One Thousand Museum helped to shed a lot of light on the closely guarded ultra-luxury pre-construction development before its formal unveiling later this month.  Although an image taken from a cell phone of the proposed residential high-rise had recently surfaced, the renderings which accompanied the article were the first to be made public by way of the developer.

The Wall Street Journal article is a great read, and I highly recommend it, but for those who like to get right to the point, here’s a quick rundown of what was shared regarding One Thousand Museum in the article:

• One Thousand Museum will cost $300M to construct.
• It will rise 706 feet and have an “exoskeleton” to eliminate the need for interior columns.
• According to the developers, the duplex penthouse at One Thousand Museum will likely be priced between $30M-$50M.
• Half-floor residences will have around 4,500 interior square feet.
• Full-floor residences will have around 9,900 interior square feet.
• Prices will range from $4M to $15M, or $900 to $1,400 per square foot.
• The average price per square foot for oceanfront units in Miami Beach that are currently under construction is $1,000 to $1,250.
• New construction prices for Downtown Miami is typically around $450 to $500 per square foot.
• One Thousand Museum “will be financed with a combination of developer equity, a loan from a nonbank investment fund and deposits of 60% from buyers”.

By the way, you can view the renderings which accompanied the article on my One Thousand Museum condos page.  Check them out there!

A Look at the Life of Zaha Hadid

One Thousand Museum: Additional Information Unveiled

Additional information regarding One Thousand Museum has recently come to light.  My hunch was correct.  The co-developers, Gregg Covin and Louis Birdman, are out to target the uber-rich with this development.  Prices will range from $4M to $12M for half-floor and full-floor residences.  The pricing for the duplex penthouse has not yet been revealed but will likely crush the record for a non-oceanfront condominium residence in South Florida which, if I’m not mistaken, was set in March 2007 when the 9,000 square foot penthouse at Bristol Tower was purchased by Pharrell Williams for $13.95M.  That same penthouse, by the way, is currently on the market for $13,999,000.  I will not be surprised in the least bit if the duplex penthouse at 1000 Museum gets priced at $20M or even $25M.  Things are about to get exciting for the Downtown Miami condo market!

1000 Museum will be erected at 1000 Biscayne Boulevard, the current the site of a BP gas station.  It will reside just south of Ten Museum Park which was developed by Gregg Covin and completed in 2007.  The footprint of the site is not much different than Ten Museum Park so I expect to see half-floor residences start at around 4,000-4,500 square feet.  One would assume that full-floor residences would be double that but I can’t be too sure.  Zaha Hadid is known for using elegant curves in her work so who knows what we will see.  Actually, I take that back.  Who knows what I will see.  The South Florida Business Journal mentioned in an article yesterday that “the first images of Zaha Hadid’s architectural design for the newly named One Thousand Museum are expected in late March”.  That tells me one thing: that the public will have to wait about a month after VIP real estate brokers and agents, like myself, are expected to see the long-awaited designs.  Sorry folks!  Move along, move along.  There will be no show here today, or this week for that matter.  The general public is likely going to have to wait.  I, along with the other brokers and agents in the room, will likely be asked not to disclose publicly any renderings of the development.  They won’t be the first to do so and this is not uncommon when dealing with high-profile developments in this price range.  In fact, I was asked two days ago by two other development sales offices to refrain from posting any renderings on my website for the time being.  Perfectly understandable in my book.

Obviously, not everyone will have to wait to see the new designs.  Certain brokers and agents are given a sneak peek for a reason.  Our job is to spread the word to our high-profile clients and others who might have the means to afford an ultra-luxury residence in this price range.  If you have a sincere and legitimate interest in learning more about 1000 Museum, contact me Friday afternoon.  Be prepared to prove it though.  Buyers will likely be asked to fork over a quarter of a million dollars just to reserve the smallest unit at 1000 Museum.  I’m expecting to see a design that is truly spectacular – the likes of which South Florida has never seen.

One Thousand Museum by Zaha Hadid to be Formally Announced Next Week

The wait is almost over.  The new Zaha Hadid development to be located at 1000 Biscayne Boulevard will be formally announced next week.  It had been expected to be called 1000 Biscayne Tower but that is no longer the case.  The developers have instead decided to call the luxury residential high-rise One Thousand Museum.

Over the past two months, there has been a lot of buzz and excitement surrounding this upcoming development.  The internationally acclaimed architect, Zaha Hadid, has a huge cult-like following all around the world, and for good reason.  Her resume is impeccable with a laundry list of achievements and award-winning past projects.  As a result, I expect there to be a lot of interest for condos at 1000 Museum.  This development, however, will not be for the average buyer.  My sources tell me that this development will target the uber-rich who are looking to not only invest in a luxury residence in Miami but also buy into a work of art that will be known all around the world.  It is expected to set a new bar for condo prices in Downtown Miami.  I would not be surprised to see prices for condos at 1000 Mueum hit $1,000 per square foot out of the gate.

By the way, I did a little research to see if I could substantiate the news which was provided to me yesterday.  I discovered that Louis Birdman, one of 1000 Museum’s two developers, registered the domain 1000museum.com on January 9, 2013.  If that’s not enough proof then I don’t know what is.  Stay tuned because I will have a lot to report on this exciting project in the weeks ahead.

Marina Blue Market Update – 2011 to Present

Below is a market update that I emailed to Marina Blue condo owners late last week.  While not everyone reading this will have an interest in Marina Blue, I think a similar upswing in prices and lack of inventory as described below holds true for most major condo developments throughout Greater Downtown Miami.

If you haven’t heard, the real estate market in Miami is once again heating up and prices for condos at Marina Blue are following suit. Demand is high and inventory is low, paving the way for a strong 2013. Just how strong you might ask? I decided to crunch some numbers to help answer that question.

The left-hand side of the chart below graphically illustrates various statistics regarding asking prices in 2011 (blue), 2012 (red) and 2013 (green). There haven’t been any closed sales thus far this year so the right-hand side of the chart illustrates only sales that took place in 2011 (blue) and 2012 (red). It should be noted, however, that currently there are 4 pending sales at Marina Blue.

In 2011, there were a total of 33 closed transactions which sold at an average price of $324,806, or $299 per square foot. In 2012, the number of closed sales increased 73% to 57 and sold at an average price of $378,495, or $329 per square foot. Due to outlying sales that skew the averages, the median sales price can sometimes provide a better sense for the overall market but that is not the case with this data set. The average and median figures for each year are relatively in line with each other. The average sales price increased 16.5% from 2011 to 2012 while the average price per square foot increased only 10%. This indicates that a greater percentage of larger units sold in 2012 than in 2011.

That brings us to the present day. As of January 14, 2013, there were 29 condos available for sale at Marina Blue. These units ranged in price from $355,000 to $2.8M. The average list price is skewed dramatically, however, due to one listing that is way off base. In this case, the median list price of $515,000 provides better insight into the overall market than the average list price of $698,793.

The chart below follows the same format as the chart above but breaks everything down on a price per square foot basis.

When comparing current availability with closed sales in 2012, it should be immediately clear that current asking prices are very high relative to where condos have sold in 2012. The median sales price per square foot in 2012 was $326 while the median asking price per square foot is currently $452. That is a huge gap but presents a big opportunity for someone who is looking to sell fairly quickly at an above average market price. To be clear, I feel that the average unit will now get $370-$380 per square foot. That is a very healthy premium when comparing it to the median sales price per square foot in 2012. Obviously, units on high floors with above average build-outs should fetch even more.

As inventory dwindles, I have noticed that more and more condo owners throughout Miami are starting to raise their asking prices.  For example, of the 62 units currently available for sale at 900 Biscayne Bay, 13 of the owners have decided to increase their offering price since initially hitting the market.  At Ten Museum Park, 6 of the available 22 units are now offered at a higher price than was available just months ago.  A similar trend can be seen at plenty of other major condo developments throughout Miami as well.  Sellers are taking advantage of the low inventory and are adjusting their offering prices accordingly. 

One Thousand Museum’s Likely Impact on the Neighborhood

Last month, it was announced that world-renowned architect Zaha Hadid has been appointed to design a luxury skyscraper in a neighborhood of Downtown Miami know as Park West.  The residential high-rise, known as One Thousand Museum, will be developed by Gregg Covin, the developer behind Ten Museum Park, and Louis Birdman.  The planned project will be erected in what is the current location of a BP gas station which neighbors Ten Museum Park at the intersection of Biscayne Boulevard and Northeast 10 Street.  Sales information is expected to be released during the first half of 2013.

There always seems to be a sense of excitement surrounding the announcement of a new development in Miami and the news of 1000 Biscayne Tower was no different.  Not everyone, however, shares the same sentiment.   Residents in the immediate area are not always thrilled about the inevitable noise, traffic congestion and their views potentially becoming obstructed due to the new construction.  Taken yesterday evening, the picture above shows not only the site of the BP gas station but also its neighboring condo developments – 900 Biscayne Bay to the south and Ten Museum Park to the north.  Due to their proximity, it should be clearly discernible that views in each high-rise from units closest to 1000 Biscayne Tower will be significantly affected.  To be exact, there are three lines in each development which will have their views hindered: the 08, 10 and 12 lines at 900 Biscayne Bay and the 01, 07 and 08 lines at Ten Museum Park. The following site plans illustrate where these lines reside on each building.

Below is my assessment on how the view of each of these lines will be affected:

900 Biscayne Bay

• 08 line – Earlier this morning, I showed an 08 line at 900 Biscayne Bay and made sure to make a mental note of what the view looked like from the living room.  In this floor plan, the master bedroom is to the left of the living room and the second bedroom is to the right, with all three rooms facing in the same direction.  Of the three lines at 900 Biscayne Bay that will be affected by the erection of 1100 Biscayne Tower, the 08 line will be affected the least.  Notice the setback that Ten Museum Park has from the sidewalk.  1000 Biscayne Tower will have a similar setback and, therefore, the water view from the 08 line will, for the most part, not be obstructed.  Having a massive building directly in your line of view is definitely less than optimal but at least these residents won’t have their water view compromised.
• 12 line – At first glance, it might appear that the 12 line will have their views most adversely affected due to it being the furthest line away from the street but that’s not the case.  There’s no doubt that its water view will be most compromised of the three lines but one must remember that this uniquely situated floor plan also has views to the south and west.  The west view at night is stunning and the development of 1000 Biscayne Tower will in no way take anything away from that.  These residents will still be able to enjoy a view of the sunset from within their unit and should still be able to enjoy a view of the sunrise from their balcony.
• 10 line – In my opinion, residents who live in a 10 line at 900 Biscayne Bay have the most to lose in regards to their view being obstructed if a high-rise is indeed constructed on the current site of the BP gas station.  The 10 line is boxed in on either side by the 08 and 12 lines and will look directly into the southern end of 1000 Biscayne Tower.  Their water view will likely go from unimpressive to highly obstructed in a jiffy.  Any semblance of a view that might remain will be further compromised by the almost certain development of the Miami Herald site in the future.

Ten Museum Park

The impact such a development will have on the views of the units located on the southern end of Ten Museum Park is much easier to assess.  The footprint of the building is perfectly symmetrical and, therefore, the units located on the northern end which look into Marquis Residences serve as a perfect example for what views will look like from the 01, 07 and 08 lines in the future if a development is constructed at the site in question.

• 01 line – This line offers a direct water view and the water view will in no way be affected by the development of 1000 Biscayne Tower.  Privacy from the living room might be a concern but it’s nothing that solar shades or long curtains can’t fix.  Besides, privacy at this end of the building hasn’t been expected since 900 Biscayne Bay began closings in 2008.  Take a tour of an 04 line to get a sense for what it will feel like to have a building so close.
• 07 line – Like the 12 line at 900 Biscayne Bay, this line offers a view to the south and west.  Its southern view will be compromised but its view to the west will be unaffected.  Your view of the water will be slight at best.  Take a tour of an 06 line to see what I mean.
• 08 line – The view from the 08 line will be obstructed the most by the development of 1000 Biscayne Tower.  Residents will look right smack into the northern end of the planned high-rise.  The 05 line will give you an uncanny feel for what life will be like having a view of the side of a building.

Within the past five years, Park West, the neighborhood name given to the area immediately west of the upcoming Museum Park, has undergone a transformation that has been nothing short of amazing.  One could argue that the addition of 1000 Biscayne Tower, as well as the oft-mentioned 700 Biscayne Bay which will be located just south of Marina Blue, is just another step in the progression of Downtown Miami.  Such additions should no doubt strengthen Park West’s positioning as one of Miami’s most luxurious neighborhoods.  I wrote about this inevitable progression in a blog post back in July 2007.  In it, I referred to the neighborhood’s development as Miami’s equivalent to Manhattan’s Park Avenue.  There’s no question that Park West has not yet arrived at its potential but there is little doubt that it is well on its way.  While short term demand for condos in the lines mentioned above will likely wane due to having to deal with construction noise outside your window as well as the loss of views and privacy,  it is difficult to jump ship from a neighborhood that is heading in the right direction with lots of upside potential.  Across the street, the $220M Miami Art Museum at Museum Park is scheduled to open later this year with the Miami Science Museum following about a year later.  Additionally, there has been a lot of talk as of late regarding Miami Worldcenter indicating that the mega-development may not be a pipe dream after all.  If Miami Worldcenter is formerly announced and becomes an actuality then, mark my words, Park West will become the most highly sought after neighborhood in Miami.  You can take that to the bank!

Ten Museum Park Developer Settles Class-action Lawsuit with Condo Association for $587,500

According to Daily Business Review, Ten Museum Park developer Gregg Covin has agreed to settle a class-action lawsuit, filed in 2010, with the building’s condo association.  Disgruntled owners argued that certain amenities were not delivered as promised in the 2005 marketing brochures.  The developer has agreed to pay the condo association $587,500 which will be used to update the common areas.

900 Biscayne Bay’s Attention to Detail

There are several reasons for why 900 Biscayne Bay gets a 9.5 out of 10 quality score on our Condo Rankings page.  The building management’s attention to detail is definitely one of them.  In the photo above, take note of the pattern across the back of the sofa. Each morning, the cleaning person vacuums this pattern into the back and sides of each of the sofas that reside in the club room at 900 Biscayne Bay.  Attention to small details like these that don’t go unnoticed by the most discriminating of buyers.

Custom Built, Fully Furnished Condo at Marina Blue Sets the Bar for the Building

I have seen a lot of condos at Marina Blue over the 4+ years since the building debuted in February 2008.  The vast majority of units have your average run-of-the-mill build-out with tiled floors, California-style closets, solar shades in the living room, black-out shades in the bedrooms and light fixtures that were likely picked up at Home Depot as an afterthought – nice but far short of spectacular.  A few weeks ago, however, I showed a condo at Marina Blue that really blew me away and deserves to be in a league of its own.

Unit 5304 is a 2 bedroom+den/2.5 bath condo with 1,663 square feet of living space.  The floor plan, known as a Sky Loft, is quite rare in the building and only 11 other units of this size exists at Marina Blue.  The condo has 10-foot high ceilings with floor-to-ceiling glass windows, offering breathtaking views of Biscayne Bay, Downtown Miami and the Miami Beach skyline from its vantage point on the 53rd floor.  While the view is remarkable, it is the unit itself that really makes it special.  The condo was 100% custom built and includes a lot of bells and whistles.  The furniture and artwork that you see pictured below is also included in the sales price.

The kitchen includes a large custom island, Gaggenau stainless steel appliances and custom Italian cabinetry by Snaidero.  The owner also had a DJ room/office built into the floor plan and is including the turntables and Evolution Entertainment music system with the sale of the condo.  Each of the rooms is also wired with an Internet-based security camera system.

In all honesty, given the level of quality of both the furniture and the unit itself, this condo is a steal at its current asking price of $795K.  The build-out itself cost at least $150K and I’m sure the replacement cost of the furniture and artwork is north of $100K.  (Update: I called to check my estimates and was told that the owner paid roughly $350K total for the build-out, furniture and artwork.)  Everything is pretty much brand new given that the owner has used the condo only a few times since it was built-out and furnished.  Whoever ends up buying the condo is going to end up with the nicest unit that I have ever seen at Marina Blue.