Which Miami Condo Developments Are On Highest Ground?
The threat that climate change presents to Miami is as hot of a topic as it is a polarizing one. With increasingly frequent flooding due to storms and the moon/tide cycles, many of the locals have grown familiar with the low-lying hazards in the neighborhood. A summer storm wouldn’t be complete without the dramatic shot of a newscaster standing outside the Publix in Mary Brickell Village with water up to their knees, gawking at drivers who splash by, many of whom end up with water damage to their pricey rides. The intersection of Brickell and 13th Street is another spot that overflows quickly.
After the storm we went through last week that flooded the underground parking garages at Brickell City Centre plus all of Mary Brickell Village, forcing shops to close for a day and a half, I started to wonder which buildings in the area are on higher ground? Some may be surprised to learn that the Downtown area is not flat. There are small, but valuable hills that make certain buildings more secure from the floodwaters. I did a little bit of research and found this very interesting topographical map that is fully interactive and mapped the buildings in our area. The vast majority of the buildings sit between 0-3 feet above sea level, but here are the ones on higher ground…
Simpson Park Area
On the south end of the Brickell Financial District but on the north side of South Brickell is Simpson Park. It is situated on a small hill that crests at the intersection of SW 1st Avenue and I95 at 30 feet above sea level. Le Parc at Brickell is the highest condo development in our service area at 20 feet above sea level. Nearby, Infinity at Brickell also takes advantage of this hill at 10 feet above sea level, but it drops off quickly. SLS Brickell measured 3 feet above sea level.
Because of the contour of the elevation, Vue at Brickell and Axis at Brickell were all showing up as 7 feet above sea level, leaving Millecento and the rest of the surrounding buildings at 3 feet.
North Brickell
All of the other buildings in Brickell are between 0-3 feet except for one small incline at 5th Street that puts 500 Brickell’s East Tower on slightly higher ground (7 feet).
Downtown Miami
The wall of towering skyscrapers along Biscayne Boulevard in Downtown has been affectionately dubbed the “Biscayne Wall” in real estate and architecture groups for some time now, but there could be another reason for it. There is a small increase in altitude along Biscayne Boulevard, leaving Bayfront Park at 3 feet above sea level and all of the condo developments from 50 Biscayne to Marquis Residences at 7 feet above sea level. This includes Vizayne North and South, MarinaBlue, 900 Biscayne Bay, One Thousand Museum, and Ten Museum Park.
Edgewater / Arts & Entertainment District / Midtown
As can likely be expected, none of the buildings in Edgewater are higher than 3 feet above sea level… but the grade increases relatively quickly as you go farther west (by Miami standards anyway). The Arts & Entertainment District’s new project, Canvas, is 7 feet above sea level, and industrial loft or live/work space fans will be pleased to hear that Parc Lofts and Filling Station Lofts are both built 10 feet above sea level.
Midtown fans will also be pleased to know that the entire neighborhood, including Midtown 2, Midtown 4, Midblock and the new Hyde at Midtown are all 10 feet above sea level.
Final Thoughts
If you would like to play with the interactive map on your own, you can do so here. Do the findings make you feel better or worse about our situation?
Dramatic Four Story Marquis Penthouse With Rooftop Pool Seeks $13.9 Million
If you’re interested in trophy properties that are high in the sky, prepare yourself. The dramatic upper penthouse at Marquis Residences came back to the market yesterday with a $5 million price cut and every inch is awe-worthy.
Spanning over 8,000 square feet through the 64th-67th floors, the custom-designed property boasts 4 bedrooms, 4 full baths and 3 half baths. As you exit the private elevator, you are greeted by a waterfall in the foyer. Once inside, illuminated stairs flow through the four levels of splendor, up to the 67th floor private rooftop pool.
Only three other available Downtown Miami area condos dare to approach the level of grandeur seen in this Marquis penthouse. Just two buildings south of Marquis, Zaha Hadid’s One Thousand Museum has listed a 10,000 square foot residence for $20.7 million that is currently under construction and should be delivered in 2019. Down in Brickell, three combined penthouse units covering 8,800 square feet at the Four Seasons Residences are listed for $25 million and just next door is Carlos Ott’s Echo Brickell. It isn’t currently marketed on the MLS, but the nearly completed development will feature a duplex penthouse custom designed by Carlos Ott himself is seeking $42 million and is expected to be delivered by early next year.
Marquis PH6401 was purchased in 2010 by an American businessman for $4.2 million. The owner worked his way up from the ground level at his father’s defense logistics company that he had started with just 3 people over 30 years ago. After taking over the CEO seat in 2003, he continued to grow the company until it was ultimately sold to Honeywell for $230 million, according to a profile in the Alexandria Times. Judging from the listing photos below, it seems he has just as much design sense as he has business sense, because this place is truly amazing.
What do you think?
Epic Hotel & Residences Is Wrapping Up Its Repair Project; Prepares To Reopen Residents’ Pool
At long last! The building repainting and balcony repair work at Epic Residences is drawing to a close and the resident’s pool is preparing to reopen. In two emails to residents this week, the building’s management office announced that the work is coming to a close and gave an update on the reopening of the pool.
Email 1 on July 18:
C&S Paint has finished working on your balconies. Please inspect them, prior to placing your furniture back on the balcony. Please look for any discoloration, excess stucco, cement, or paint that is on or around your balcony. If you find anything, please take a photo and respond back to this email. Your report will be forwarded to C&S Paint. They will correct the issue.
Email 2 on July 18:
C&S Paint will soon be partially done with the Condo Pool deck. They will be cleaning and prepping two pools for use. At this time the Hotel has closed their pool deck except for the weekends. They will open the pool deck starting Saturday morning and close Sunday evening. Our pool deck will open in two weeks depending on weather. We apologize for the inconvenience this has caused and thank you for your patience.
Let’s hope the weather stays nice so that the residents can once again enjoy their pool by the end of summer!
Stunning Industrial Chic Loft Near Downtown Lists For $4.95 Million
Are you the type who likes to regularly hold parties for 200 of your closest friends? If so, this is the loft for you! The industrial-chic masterpiece with 22 foot high ceilings, exposed brick walls, dark oak hardwood floors and skyline views near Downtown Miami just hit the market for $4.95 million.
With over 7,100 interior square feet, top of the line open kitchen by Thurston Kitchen Design from Aspen with huge island/bar, Subzero fridge, TWO large wine coolers, double Wolfe ovens and separate living quarters, this loft is fit for a celebrity or an avid art collector. The space is a combination of units 501 and 402 in the 6 story Parc Lofts near the Art District and Downtown Miami and has been completely outfitted for a fabulous entertainer.
The seller is being represented by our very own Dora Puig, and we can’t stop crushing on the photos! What do you think?
Market Stat Monday: Centro in Downtown Miami
Welcome back to a new week! We’re going to continue our Market Stat Monday series in Downtown Miami’s Centro building. This building made a splash when it was announced because it was the first new tower in the neighborhood to be constructed without parking. It is located in the Central Business District at 151 SE 1st Street, very close to MDC and Bayside Park, so the area is quite walkable.
Another interesting quality of Centro is that all 352 units are loft-style. They’re not duplex loft style (two story layouts), but they are New York style lofts in that there are no walls between the living areas and the bedrooms. This can be a positive or a drawback, depending upon your style of living. It is urban, chic and cool, but the lack of privacy could make things difficult for people living in a roommate situation.
Since there is really nothing different about the penthouses at Centro other than the fact that they’re on the highest floor, I am going to factor them into the statistics search today. Furnished units are factored out. Also, since I’m in the mood for good news, I’m going to look first at the rental market.
Centro Rentals
Because of it’s proximity to MDC and the price, this building was really hot for a few months on the rental market. People could move into a brand-new condo for as low as $1,450/month! Those days have come and gone because there’s just not that much inventory right now. There is only one 1 bedroom layout available to rent as of today, and it is $1,920/month.
Overall, there are 10 active unfurnished listings on the market today. As I said above, the one bedroom is listed for $1,920/month with a partial bay view from the 36th floor. Two bedrooms are listed between $2,000-$2,650/month depending upon the view and size. Most all units in Centro have a city view, a few have a partial bay view.
This has been a very active year for Centro. It opened last summer, in 2017 we have seen 88 total unfurnished rentals. The prices ranged from $1,450/month up to $2,800/month and averaged $2.56 per square foot of living space.
The units that found tenants were marketed for an average of 66 days and accepted 96% of their asking price. Something else that sticks out to me in this report is that the lowest-priced rental stayed on the market for just 3 days. There was also a unit that closed for almost 10% above asking price! This demonstrates something that we tell our clients every day. There is a lot of competition for units that are at the entry point of the market (least expensive in the neighborhood). The rentals happen quickly and for very close to asking price, so if you love an apartment then it is best to make a move for it.
With just 10 units currently available and 88 rented so far this year, that works out to less than 1 month of available inventory! Amazing!
Centro Sales
Now it’s time to swallow our bitter pill. There are currently 55 people trying to sell their apartments in Centro, and 2017 has brought a paltry 5 closed sales. That gives us 66 months’ of inventory. Oof.
The active listings are asking $489/square foot on average, and those who did find buyers sold for $479/square foot, accepting 94% of their asking price. The building is one of the few in the area that is Fannie Mae approved, making financing easier, so what’s the problem?
It appears there are just WAY less buyers in the marketplace. Now more than ever, it is imperative that sellers who sincerely want to sell choose an agent that has access to buyers and a way to make the listing shine in a pack of similarly-priced and similarly-finished apartments. You need an agent who will make sure the property is available to be shown when the buyers request, meets them there to roll out the red carpet and give a tour of the building, answering their objections on the spot and increasing the likelihood that your apartment is the one they choose. I apologize for the lecture, but listing agents need to work harder than ever to make closings happen these days. Here’s a look at the scary stats.
I was amazed to see that even with Fannie Mae approval, there were so few transactions in the building. Only one sold at full-ask, and that seller threw in seller financing to make the deal work. They garnered $540/square foot, the highest price for a resale in the building ever.
To be clear, I’m not dogging Centro. It is very well positioned in the market, offering the lifestyle and finishes that residents of the Central Business District want. Hopefully the demand will pick up and these sale listings will start moving again. Until then, just keep them filled with tenants!
Tips For Foreign Investors Seeking EB-5 Visas & Paramount Miami Worldcenter Update
EB-5 can be a great opportunity for foreign investors who seek American citizenship to be able to do so, but the investment visa is not without risks. It is very important to choose the right project to invest in, so that the investor does not lose their investment without securing the visa. As a rule, the investment money must be considered an at-risk investment, but savvy investors can review their potential projects and choose the one most likely to end in the visa PLUS the return of their funds.
What Are Some Tips To Ensure Success?
When reviewing EB-5 opportunities, it is important to choose a project that actually creates a minimum of 10 full time jobs per visa issued. Good intentions are great, but the project has to actually happen in order for the visas to be issued. Because of this, it is important to invest with an experienced developer who is well-funded and already under construction.
If a developer is not experienced, the project is unlikely to come to fruition, leaving the EB-5 funds at risk. In this case, the investor may or may not be able to recover their $500,000 in investment money, but the $50,000 in administration fees are nonrefundable.
If the project comes to fruition but does not create the required amount of jobs per hopeful EB-5 investor, then a portion of the investors will receive their visas, but those who signed on later in the project would lose their administration fee and may or may not be able to recover their $500,000 investment. Investing in condos is safer in this instance, since investors are more likely to recover their money through the condo sales. Recovery of the funds is more tricky for parking garage or infrastructure projects.
Don’t be greedy. It is extremely rare to find an EB-5 investment program that will provide the investor with the visa AND a healthy financial return. Many times, investors receive a small return and the visa. This brings me to Paramount Miami Worldcenter, which has an interesting offering that is one of the best I’ve seen.
How Does The Paramount Miami Worldcenter EB5 Opportunity Work?
The developer of Paramount Miami Worldcenter is offering a limited number of EB5 investment opportunities to buyers of condos in the project, which is currently under construction in Downtown Miami. There are around 35 opportunities remaining of the original 150. The opportunities are funding just 14% of the capital required for the project, which has already secured its $285 million senior loan and is 60% sold with 50% deposits due prior to closing.
With 150 available investor visas, 1,500 jobs are required to be created. The project is estimated to create over 5,000 total jobs, so investors should have no problem securing their visa upon completion.
At the time of closing, EB5 Investors are offered two options:
1 – They can close on their condo separate of the investment and move in immediately.
2 – For the investors who prefer to roll their investment funds into their condo purchase, they have the option to delay closing by three years on a leaseback program with the developer. The developer will offer the apartments for lease and split the income from that rental with the investor. After the three year term, the investor can close with the use of their investment funds.
The remaining residences start at $626,000 for a 1 bedroom plus den with 1,095 interior square feet up to $1.8 million for a 3 bedroom plus den with a southeast view and 2,376 interior square feet. Overall, prices average $675/square foot and penthouses are available upon request.
If you or someone you know is interested in more information on the EB5 program, please contact our office for a full presentation.
To answer a reader request, this week we are going to look into one of the Downtown area’s most luxurious and appropriately-named buildings… Epic Residences. For those who don’t know, Epic Residences and Hotel was built in 2008 by Ugo Colombo. It is known for level of service, fantastic layouts, luxurious finishes, Epic pool parties and the famous restaurants, Zuma and Area 31.
It is not uncommon to bump elbows with celebrities at the property on any given weekend. Some of the celebs who have dined or partied onsite include Kardashians, Madonna, Miami Heat players, Glenn Close, Kevin Spacey, Gwyneth Paltrow, Will Smith, Lenny Kravitz, David Beckham and a host of others. The food and cocktails are top notch as well. The decor and cuisine are sophisticated with views of the Miami River and docks large enough to house some of the largest yachts known to Miami. Mark Cuban is known to dock his 288 ft “Fountainhead” yacht here.
One of the things that I love about the design of Epic is that there are two entrances. One for the residences and a separate entrance for the hotel and restaurants. Residents receive all of the same service as the hotel guest, but don’t necessarily have to be bothered by the people coming and going. As a resident you are able to set up a charge account and order room service from either restaurant, or to go to the pool and enjoy cocktails and pool food. The Exhale Spa is also onsite, and is continually one of the top-rated spas in the area.
Despite the service and luxury, Epic is not without its problems. They are currently in the midst of a construction project that started as a standard repainting of the building, only to end up as a reinforcement of the balconies and a litigation claim against the developer. I personally interviewed the building manager after reading the claim (back to my real estate geekiness), and was reassured that the reinforcement does not reflect any danger to the residences, just that if they didn’t go ahead and do the work now, it would be a problem later on. They want the developer to pay for the repair, so made the lawsuit. Buildings are typically victorious in these types of claims, so I anticipate everyone will be just fine in no time. The repairs are a bit of a nuisance, since the balconies need to be partially covered for a few weeks, but the repairs are nearly complete.
Another tough pill to swallow for Epic residents is the new neighbor. It was recently announced that Aston Martin Residences, a 66 story behemoth of a tower will be built on the lot neighboring Epic to the East, distorting the views from some of the units. Ideal for Epic? No.
I’m going to go out on a limb here and say what I’m pretty sure everyone has been thinking about Aston Martin. It probably won’t happen anytime soon. This is the developer’s first go-round at building a Miami tower, the design of the tower is ambitious (with an underground parking garage on a bayfront lot) and the market is not very strong right now for pre-construction buildings that are still in the conceptual phase. Anyway, let’s stop talking about the neighbors.
Epic Residences Sales Statistics
When we look at these statistics, we are going to leave out the penthouse levels and riverfront townhomes, since those are considered outliers. As of today, there are 64 available sales listings, or 18% of the building. 20 of the available listings have a South view of the Biscayne Bay, Miami River and Brickell skyline. Those are listed at an average of $701/square foot. There are only 3 units available with a North view of Downtown Miami, listed at an average of $556/square foot. The East and West corners each have 2 listings, priced at $1,050/square foot and $905/square foot respectively.
The last 5 months have brought only 7 closed sales in the project, 2 of which were townhomes. That gives us 46 months of inventory, which is alarming. I feel like many people are in a panic over the new tower, because so many of the active listings have the water view and all of the non-outlier sales this year have had a North view. They are selling at an average of $456/square foot and the sellers who are finding buyers are accepting 93% of their asking price, on average.
Epic Residences Rental Statistics
The rental market at Epic is refreshingly healthy! There are only 18 active rentals as of today that are unfurnished and only 9 are not townhomes or penthouses. They average in price of $3.28/square foot.
We have additional good news for the Epic rental market. So far in 2017, there have been 18 closed unfurnished rental deals, 13 of them have been non-penthouse and non-townhome units. That means that there is only 3.5 months’ of inventory available on the market. This makes it a super healthy rental market! The overall rented price of the units that found tenants was $3.11/square foot and the owners only negotiated to 95% of what they were asking for.
Another interesting fact I noticed from the values of the rented apartments is that again we are seeing that the corner units are the least expensive per square foot in the building. the 9 South facing units averaged $3.52/square foot, the 11 North facing units averaged $3.17/square foot, the 2 East corner units averaged $2.96/square foot and the 1 West corner rented for $3.12/square foot.
As for the sales market, I anticipate an uptick of deals once the litigation is settled and financing is once again available. I can’t think of a new project that is under construction that would be in direct competition with Epic the way that some of the Brickell buildings compete against one another. Epic is Epic and that is that.
What are your thoughts?
The Smoking Ban In Condos Movement Lights Up Again
A movement to ban smoking in condos is heating up again. Fort Lauderdale developer, Dennis Eisinger does not allow smoking in the common areas of his buildings nor in the parking garage, balconies or inside the units themselves, according to the Daily Business Review. The movement is spreading South as well… we noticed this week that Biscayne Beach will also be a 100% smoke-free building.
Here is the section of the Biscayne Beach Rules & Regulations that deals with smoking:
Under Mr. Eisinger’s plan, condo developers retain the right to prohibit smoking in the buildings they sell, and existing buildings have an opportunity to decide for themselves to go smoke-free. A 75% condo board agreement would change the building bylaws and deem lighting up a violation. “Smokers are not a protected class,” Mr. Eisinger told the Daily Business Review, referring to the federal Fair Housing Act.
Why This Is An Amazing Idea
To be honest, Biscayne Beach’s choice to prohibit makes a lot of sense. Below all of the units is the restaurant and beach club. I highly doubt the patrons of the restaurant and the beach club members would appreciate being hit with a stray cigarette while they enjoy their fruity drinks by the pool. I certainly wouldn’t.
In addition, every single building manager I have spoken with has complained at one point or another about cigarettes ruining the pool furniture and starting fires on balconies below. In Infinity, there was actually a fire a couple of years back on a balcony when a cigarette butt hit a patio cushion and it burned. I was also hit in the head recently while swimming with my baby in the pool. Thank goodness it was my hair that got singed and not the baby’s. Scary.
Smoking inside the apartments causes its own form of damage. Smoke smell is not a selling feature. I’ve routinely seen tenants and buyers alike dismiss a property because of the smell. Speaking also from the standpoint of a landlord’s representative, the smell is nearly impossible to get out. The apartments always have to be repainted, the air conditioner units deep cleaned and sometimes the flooring and window shades even need to be changed. This cost quickly adds up and exceeds the security deposit that landlords hold. Not a great investment.
Aside from the inconvenience to others, affect on market values and danger of burns, I think the CDC has appropriately made their point and convinced everyone that smoking is hazardous to your health and to the health of those around you.
But Are The Buildings Overstepping Their Power?
Despite the reasons why buildings SHOULD go smoke-free, can the condo association really dictate what people do inside of the properties that they own? Or is that an example of association over-control?
Also, how could it really be enforced? Would there be a cigarette-gestapo to make sure that people follow the rules? I would love to find out who threw that cigarette off the balcony and hit me in the head, but I recognize that I will never know.
Zaha Hadid’s One Thousand Museum Featured In Upcoming Documentary “Impossible Builds”
A documentary is in the works for PBS and Discovery called “Impossible Builds,” and Zaha Hadid’s One Thousand Museum is being featured, according to an announcement from the developer. There will be only five projects in the world to be featured with the recurring theme of delving into the making of complex structures throughout the world.
One of the most unique features of the 62 story condominium tower is the 5,000 piece exoskeleton that is sourced from glass fiber reinforced concrete. The exoskeleton arrives in shipments from Dubai and installed onsite.
“It is an honor for the project to be spotlighted in this important documentary film,” said Louis Birdman, one of the co-developers for One Thousand Museum by Zaha Hadid Architects. “We could not think of a better way to immortalize the forward-thinking project to a global audience across continents through this important documentary.”
Other projects to be featured will include the thinnest skyscraper in New York City and a resort villa in Dubai. The documentary is set for completion in 2018 and will be broadcast to approximately two billion viewers worldwide, according to the production company.
The tower is currently just past the halfway point of vertical construction. When completed, it will reach 709 feet and is the only residential skyscraper in the Western Hemisphere that was designed by Zaha Hadid. Here are some of the latest construction photos.
VIDEO: Paramount Miami Worldcenter Construction Update
Paramount Miami Worldcenter from the north side construction entrance April 25, 2017.
Phase one vertical construction is now underway at Paramount Miami Worldcenter, according to the developer. The seven story pedestal has reached its final height at a rate of about one floor per week, now they begin construction on the tower portion of the project. When completed, the residential tower will bring 522 residences to Downtown Miami in a glistening 60 story tower atop a 27 acre high street retail promenade. The tower boasts the most amenities of any residential tower in the world.
The residential condos are currently 62% sold at an average of $650/square foot. Some of the available purchase opportunities that remain are:
a 1,095 square foot 1 bedroom with a den at $626,000 is the least expensive apartment currently available. Considering the typical 1 bedroom in the area is 700-800 square feet, this would probably be considered a 2 bedroom in many competing developments.
Two bedrooms start at $1,287,000 for a 44th floor apartment with 2 bedrooms, 3 baths and a den over 1,753 square feet.
Three bedrooms start at $1,581,300. There is one available on the southwest corner that is 2,230 square feet and has 3 bedrooms, 4 baths and a den.
The entire project is expected to be finished in 2019. Here is a video that Bryan Glazer put together that shows the scope of the project and offers a preview of how much the neighborhood will change with its addition. Last year, the developer also released a movie preview that highlights the projects amenities in dramatic form. I am very excited to see this one start to take shape!
Video overview of Paramount Miami Worldcenter by Bryan Glazer
