The Ultimate Market Stat Monday: Downtown Development Authority’s Mid-Year Report
Despite the fact that many media outlets and whispers in the marketplace would leave you to believe that the cards are stacked against us in the Miami condo market, things really aren’t so bad according to the Downtown Development Authority (DDA) Mid-Year 2017 Report. As they state in the report, “2017 has not been the best of times, but it hasn’t been the worst of times either.”
I have included the full 28 page report below, but also a synopsis…
RENTALS
The report separates the rental market into two sub-categories. Conventional rentals are the rental-only buildings that are all managed by one company. 2017 has brought 969 new rental units to the market, leaving just under 3,600 under construction. The condo rentals are considered shadow inventory since there is no way to tell whether a unit would be a rental, resale, or final sale until after delivery.
Amazingly, despite increased inventory, rental prices have increased slightly in conventional rental communities. I had previously been skeptical about the rental community market with so much inventory going up, but our neighborhood is very attractive and people are flocking in.
The segments of the rental market showing the biggest price gains are 1 bedrooms and 3 bedrooms, showing 3.4% and 3.6% growth since last year respectively. Studios are showing a slight decrease in price, but I suspect that this is due to the fact that tenants who would typically take a studio are now taking one bedrooms. Three bedrooms are less plentiful in the neighborhood, so are almost always a good investment opportunity.
PRE-CONSTRUCTION
The market in new developments is also hanging on. The researchers report that 2016 and 2017 YTD have garnered about 50% of the sales experienced in 2015, which experienced 25%-50% less than 2014. It’s undeniable that things have changed, but we will survive and the projects will be sold.
While the market has slowed markedly, projects that are currently under construction and 55%-60% sold do not seem to be in distress, according to the researchers.
One submarket that could flourish in the upcoming 18 months is the smaller-scale boutique project market. According to the report and our experience, these developments tend to capitalize on infill lots between the larger developments and do very well when the larger buildings slow down.
RESALES
Our resales are facing a tremendous amount of inventory with a 6% decline in overall pricing since last year. From July 2016 to June 2017 there were an average of 99 resales sold. That rate needs to be raised by an additional 500-700 listings sold per month to reach pricing equilibrium.
The conclusion of the report is that because so many new construction projects continue to be delivered and fewer projects are announced, we could see some stability in 2018 if nothing crazy happens.
A Peek Inside Amara at Paraiso; Paraiso Construction Update
Despite Hurricane Irma’s damper on the Paraiso party, the project is preparing to begin closings. The damaged crane was successfully removed and Gran Paraiso should be topped off by the end of the year. As they put the finishing touches on the first residential units, let’s have a look at “Amara at Paraiso,” the onsite restaurant by Michael Schwartz.
The Edgewater mega-project had planned to begin closings last month, but were delayed by the storm. Since then, everyone has been working diligently to bring the closings back to the anticipated schedule (or as close as possible). As of now, here is the most updated completion schedule:
Aria on the Bay Lowers Deposit Requirement After Sales Benchmark
To celebrate a new sales benchmark, Melo Group has once again reduced the required deposit amount at Edgewater’s Aria on the Bay. The project, which topped off in April, has now sold over 85% of their condos. New buyers are now required to put down only 20% of the final purchase price.
We were treated to a hard-hat tour back in June and were very impressed to see that nearly all of the buildings units have at least a partial bay view, but most have expansive views from spacious scalloped terraces. Melo Group and Arquitectonica really did an amazing job on the building’s design. It offers maximized views for the residents and also a beautiful design for passers by.
During the tour, we were also lucky to be able to tour the penthouse that Miami Marlins superstar Giancarlo Stanton had recently purchased. We were not allowed to know which penthouse was his, but since we went through all of them, it is a pretty good bet that we saw it. I have my own theory of which one he chose…
Back to the remaining sales opportunities, the remaining apartments range in price from the mid $400,000’s up to $1.9 million. There are options remaining from the lines with semi-private elevators as well as private elevators. Closings are expected to begin early next year.
Below, you can see some new renderings that show how the apartments will look once they are furnished, and you can click here to see our review of the project after the construction tour. We were able to see real views from several different levels of the building, along with the actual finishes. If you would like an in-person presentation, just reach out. We are happy to show off this project.
Missoni Baia To Break Ground This Week
When completed, Missoni Baia will bring 57 stories of ultra-luxury residences to the shores of East Edgewater.
The groundbreaking is scheduled for 5pm on Thursday, October 12 at the build site, 777 NE 26th Terrace. The first-ever Missoni branded condominium will feature a vibrant and colorful decor, even with a custom tile mosaic of the brand’s signature brightly colored stripes.
The residences range in size from 1-5 bedrooms and prices of the tower residences range from the $700,000’s up to $3.4 million. Penthouses have not yet been released. The development is slated for completion at the end of 2020.
Here is a teaser video that was released by the developer that shows the quality of the finishes and the amenities…
Elysee Lands $16.5 Million Construction Loan
Just months after the successful opening of Biscayne Beach, Two Roads Development has landed a $16.5 million construction loan that will fund the first phase of construction for Elysee, a boutique ultra-luxe tower just blocks away.
Work commenced back in March on the 124-foot-long seawall in order to prepare for the formal groundbreaking, and now with these additional funds granted by California-based Mosaic Real Estate Credit, LLC, the developers will be able to start bringing the 57 story project out of the ground. The first phase of development will include the site work, excavation, installation of pilings, and the pouring of the foundation.
Construction loans are notoriously difficult to obtain, and this is a very good sign for Elysee. Developers must prove to the lenders that they have a strong track record, well-capitalized sponsorship, a preferable location as well as consistent sales activity. Once the loan is obtained and dirt starts moving, the remaining inventory tends to sell faster, as buyers have increased faith that the project will come to fruition. Many buyers are also more willing to jump on board with a new development when they can physically see what they are buying. All in all, this is amazing news for Elysee.
One of the differentiating features of Elysee is the size of the residences. All of the homes are either half-floor or full-floor plans, offering a boutique/private feel. They will include floor-to-ceiling glass windows and sliding doors, private elevators and foyers, 10-12 foot ceiling heights, designer finishes and fixtures, premium appliances, top-of-the-line Italian cabinetry, as well as two expansive east/west-facing terraces with 180-degree sunrise and sunset views.
As of today, 45% of the project’s 100 units are in contract. Remaining residences range from $1.7 million to $4 million, at $639 to $800 per square foot. The penthouse collection has been dubbed “Les Grandes Maisons” and range from $2.8 million to $10 million.
Completion is slated for 2019.
Market Stat Monday: Almost $50 Million In Contracts Signed Post-Irma
It has been a few weeks now since the skies have cleared in Greater Downtown Miami after Hurricane Irma’s brush, and despite a little bit of flooding and debris, we were very lucky. Now that cleanup is under way, how have the condo sales fared?
Not too bad, if I must say. Despite having only two functional weeks in September, nearly $50 million in resale contracts were signed on 79 total units.
The least expensive listing to find a buyer was at the Loft II Downtown, where a 770 square foot one bedroom was listed for $175,000. Of the 79 units that went to contract, 50 of them were listed for under $500,000. We will find out the final sales prices once they close.
In the luxury segment, there were a total of 6 properties listed over $1 million that found buyers. Among them was the crown jewel penthouse #1 at Asia on Brickell Key. With nearly 5,000 interior square feet through three levels including a dramatic rooftop terrace with a private pool, the sellers had asked $8.5 million, or $1,715/square foot.
Comparing September of 2017 to September of 2016, you will see that 2016 brought both a higher number of transactions as well as a higher volume of listings sold, but not enough to make it an overall better month considering that September 2017 was short due to people being distracted by the hurricane and Hurricane Matthew didn’t brush South Florida until October of last year. September of 2016 brought just over $60 million of listings sold, with 119 total transactions.
To celebrate the end of a successful yet stressful September, let’s check out some photos of that Asia Penthouse!
Giancarlo Stanton Tours His Nearly Completed Miami Penthouse
photo: _nicolasbarbara/instagram
Calling Giancarlo Stanton the legitimate home run king may be premature, but there’s no reason for him not to plan ahead; after all, they say every king must have his castle. In May, it was reported that Stanton contracted to purchase a 7,800 square foot, tri-level penthouse at Aria on the Bay – a 53-story, luxury condo development located in Miami’s Edgewater neighborhood. Earlier today, Stanton toured the building, stopping briefly for a photo with Aria on the Bay’s sales and development team. The photo was taken on the rooftop of his nearly completely penthouse, which will come equipped with an outdoor pool and summer kitchen.
Aria on the Bay is slated to be delivered early next year. Scroll down for a digital rendering of Stanton’s outdoor terrace.
Biscayne Beach’s Ultimate “Sandcastle In The Sky” Asks $9.5 Million
While doing their pre-construction sales, the developer of Biscayne Beach used the tagline, ‘Sandcastles in the Sky,’ and now they have released the details of the ultimate one. Penthouse 7 sprawls over 7,500 square feet of interior space with soaring ceilings, tons of natural light and views of practically all of South Florida.
It has 4 bedroom, a den, 5 full bathrooms and 2 powder rooms. In the master bath, there is a private sauna and the rooftop boasts a private pool. The developer is offering it decorator-ready for $9,453,900. Have a look at the photo preview and let us know what you think!
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?
