Today we were treated to a preview of the Paraiso district including a hard-hat tour of Paraiso Bayviews. I have to admit, while I’m excited to see the Paraiso district come to life, I’ve always been a bit skeptical about Bayviews because of its location to the west of the other towers. Would it actually have bay views? It does!
Inside the building, it is still too much of a construction site to be able to visualize the units and how the layouts will be. Hopefully we will be able to preview some finished options when the building is a little closer to being finished. It is scheduled to open later this year, so there’s time.
The views that we saw were from the 38th floor out of 43 total floors. There are still a few options for purchase, including a 40th floor 2/2 with 1,068 square feet and a west view, overlooking the tennis courts and sunset for just under $650,000. There are also six penthouses left, priced between $641,000 up to $1.6 milion.
After the residential tower, we also had a look at the Paraiso Beach Club, which is reserved for the residents only. The public will be welcomed in Michael Schwartz’s bayfront restaurant, but the upstairs club is residents only.
What do you think of the views?
Biscayne Beach Receives TCO But Pushes Back Closings
Image by Jennifer Behar Cervera
It has arrived! Biscayne Beach received its TCO (temporary certificate of occupancy) today, one day after it was expected, according to representatives of the developer. They were expecting the TCO to arrive yesterday, but hey… it arrived on “Miami time” and we are very happy to see this step in the right direction.
Due to disclosure guidelines, the closings are able to begin 10 days after completion. Instead of beginning today, they will now begin May 1. Since the initial TCO is for floors 7-35.
Ladies and gentlemen, it’s time! The first bulk sale is officially in contract at the newly constructed Crimson in Edgewater. Despite the building’s opening last year, the developer was still holding onto 20 units that were listed at an average of just over $600/square foot.
The package had been marketed with a 10% discount to an average of $558/square foot. That would make the value of the deal just over $13.5 million rather than the original $15 million. Once the deal closes, we will learn the final contract price and the amount of discount that the developer ultimately accepted. I expect it to be lower than $13.5 million since the Downtown Miami DDA’s report listed the average price per square foot in the building to be $545/square foot in their yearly report, but we shall see.
Crimson was developed by Aventura-based McKafka Development Group and has a total of 90 units. One of the biggest selling features (aside from the waterfront location) is the fact that the building is LEED Silver certified. There are currently 5 resales listed in the building, with an average price per square foot of $677.
I am very interested to see this one close and set the precedent for future deals. I’m sure that we will see additional bulk deals as more buildings open with remaining inventory. Which other buildings do you think we’ll see bulk sales in?
Biscayne Beach Opens This Week
We knew this day was coming soon, and the developers are right on schedule. They had anticipated a late April opening for Biscayne Beach, and here we are. The first closing statements have been sent out for review and closings begin Friday, April 21. The TCO is expected on Thursday, so the developer is really not wasting any time beginning the closings. If the TCO does not arrive on time, the closings will be delayed but we do not anticipate any problems.
Because the TCO has not yet been delivered, we have been unable to preview the finishes and views, but are very excited to do so on Friday when we walk through a unit that we are closing on. This apartment is going to come back to market as a resale and I expect that it will not last long. It is a lovely 2,103 square foot corner apartment on a high floor. There are 3 bedrooms, a den, 4 full baths and is a corner unit. The southeast corner offers south views of the skyline as well as east views of the bay and Miami Beach (the best view offered). You can see the floor plan and more information about the apartment here.
Biscayne Beach was an enormous success for the developers and sold very quickly. I am sure that the buyers will be impressed with how it turns out. We have started a list of buyers and tenants who are interested in the units as they come to the resale and rental market. If you would like to be notified of a particular plan listed for sale or for rent, just reach out.
What Happens If A Buyer Cannot Close On Their Preconstruction Condo?
The spring and summer of 2017 are going to be an interesting time for Miami in a real estate sense. We are going to see a flurry of new condo developments opening, bringing thousands of new closings (and probably hundreds of new resale and rental listings).
Brickell Heights 01 and Brickell Heights 02 are set to open within the next month, 1010 Brickell will follow shortly thereafter (or maybe they will open before… the two projects are neck and neck). Up in Edgewater, Biscayne Beach is slated to open its doors any day now, followed by the first tower of the Paraiso District, Paraiso Bay. The four projects together total over 1,800 new condos that are set for completion this summer. The fall and winter will bring another flurry, but for now let’s concentrate on the openings that are closer. These projects are all effectively sold-out. They are a wild success for the developers! But, what happens if one of the buyers is unable to come up with the remaining funds to close?
During the sales cycle of these four towers, the developers were requiring staggered deposit schedules that totaled a 50% down payment prior to closing and the remaining 50% due at closing. Remember that the majority of these condo sold in 2014-2015. A lot of things can happen in 3 years that can change the financial situation of the buyers. There could be an argument between partners in a condo, divorce, death, health issues. There could be political problems, currency exchange rate troubles, economic hardship. A dictator could be elected. We all know that these things are going on around the globe and they are all very sad. But what happens if one of these factors affects a buyer’s ability to close? It isn’t as dire as some may fear. The buyers do have choices.
They can walk from their deposit
Everyone knows this one. If you put a deposit down on a contract and don’t complete the contract, you will lose your deposit. It is very straightforward, and it stings. These condos sold around $500-$600/square foot. If you figure Related Group’s signature 2 bedroom layout that is almost always 1,200 square feet, give or take, the sale amount would be around $700,000. That’s a $350,000 loss, and that is not ideal for anyone… but it’s an option.
They can close with a mortgage
Although condo financing isn’t easy in brand-new developments, there are banks that will finance preconstruction purchases at the time of closing. The challenge is that many of the buyers in these developments are foreign nationals, and those mortgages are more difficult. Some banks refuse to lend to buyers from countries that have political turmoil (looking at you, Venezuela). It’s not a racist thing, the banks are worried about the political climate and their ability to recoup the mortgage. If you have questions about which banks can finance buyers from different countries, let us know. We have a resource that can help.
They can close with a private mortgage
If traditional financing just isn’t a possibility, buyers could visit a private lender. These mortgages typically require very little documentation and are able to close very quickly because the lender is familiar with the local market, the project, and bases the approval on that. The downside of these mortgages is that they are extremely expensive. Expect to pay 3-4 points to the lender at closing as a fee plus astronomical interest rates. I’ve seen interest rates as high as 13-14%. If a buyer was attempting to close the signature 2 bedroom unit that we discussed previously, that would amount to $10,500 – $14,000 just as a closing fee. Then you could expect around $4,000 per month to go just toward interest. Again, not ideal but also better than losing $350,000 right out of the gate.
They could find someone to step in and close on their behalf
This is probably the most ideal situation for someone in a preconstruction condo bind. Developers typically frown upon contract flipping and there’s no guarantee they would approve it, but developers in today’s market are also not eager to hold inventory on a previously sold-out project. They want to take their money and go do something else until another build cycle opportunity presents itself.
We have already had several investors request opportunities to buy in the event that a preconstruction buyer cannot or will not close. If anyone is in a preconstruction condo bind, please contact us and hopefully we can work it out in a mutually beneficial way.
Missoni Baia Releases Floor Plans And Prices Starting At $500k
Miami’s latest luxury branded condominium development, Missoni Baia, has released their preliminary floor plans and introductory prices. The project will bring 229 ultra-luxury residences to East Edgewater on a waterfront lot with 200 feet of bayfront in a 57 story tower. The sales brochures and renderings are still being finalized, but we were able to get a peek of the preliminary floor plans and first tier pricing.
As I have reported before, the best time to buy a new condo is either when the tower is first announced, or when the tower is completed and preparing to open. Of course, the first buyers have the best choice of floor plans and views. Without further adieu, the first tier prices and floor plans:
FLOOR 8-36 LINE 02
2 Bed / 3.5 Bath + Study
2,335 square feet interior
478 square feet terrace
Direct east center
Private elevators
Starting Price $1,690,000
The sales of the growing tower have remained strong as well, despite the market slowdown. In October the project was reported to be 70% sold, and the developer lowered the minimum deposit requirements from 50% to 35% on select units. When the project reached 74% in January of this year, they expanded the incentive, lowering the deposit requirements for all units. This is a pretty common strategy for developers who are at advanced stages of construction and have sold nearly all of their inventory. At 78% sold today, that leaves 142 purchase opportunities as of now. Since it appears that the project is selling 4% of their units every 3 months, it looks like they are selling just under 10 units per month. While that is not an amazing figure by Miami standards, it is certainly a nice figure considering that so many buildings have inventory today. At this rate, we should expect to hear a “sold out” announcement before the building opens later this year. Very nice, Aria!
Prices of the remaining inventory range from $400,000 to $1.8 million.
Elysee Reveals “Les Grandes Maisons” Collection & New Renderings
Builders typically wait until further into the sales cycle to release the larger, higher and more expensive apartments, but the time is now for Elysee. They have unveiled a collection of the larger, limited edition, full-floor residences on floors 46-56 of the 57 story tower. With the telescoping design, the building is able to offer deeper balconies and 3,891 square foot 5 bedroom plans with a sky-high vantage point. Les Grandes Maisons will bring together the atmosphere and proportions of an estate-like home, penthouse level upgrades and a suite of integrated health and wellness enhancements. The health and wellness enhancements include an aromatherapy infuser integrated into the HVAC system of each residence that continually cleanses the air and dispenses high-quality customizable fragrances; LEED-Certified Wellness Habitat interior paint with antibacterial, anti-mold and odor-eliminating properties; and a pre-installed water filtration system that effectively eliminates impurities.
Owners of Les Grandes Maisons also have the option to have their residences designed by Parisian designer Jean-Louis Deniot,one of the world’s preeminent talents in interior design. Prices for Elysee’s Les Grandes Maisons start at $2.8 million. Tres chic!
All residences will include floor-to-ceiling glass windows and sliding doors, private elevators and foyers, 10- to 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 wide open sunrise and sunset views.
Building amenities will include two resort style pools, a health club featuring a fitness center, yoga studio and spa with sauna, steam and shower facilities and private massage rooms, a children’s playroom and a blow-dry bar. Residents will also have access to an exclusive Owners Sky Lounge which will encompass the tower’s entire 30th floor and feature a Great Room, Grand Salon entertainment area with a full bar and piano lounge, Grand Dining Room with seating for up to 30 guests, wine room, chef’s kitchen, library, private theater and gaming room. Elysee owners will also have the enviable advantage of Elysee Attaché – a premium concierge service that will be available to residents 24/7 for travel arrangements, dinner reservations, concert and event tickets, gift deliveries, and more. The project is currently 44% sold and expects to break ground shortly.
New Miami Condo Buildings With Tennis Courts
This time of year brings one of our favorite events to Miami. The Miami Open runs from March 19-April 1 this year, and to commemorate it, let’s have a look at our favorite buildings in the greater downtown area that have tennis courts!
If living in a brand-new condo is important to you, there are several in the pipeline. Key International’s 1010 Brickell is slated to open within a few weeks. They have an indoor tennis court and 3 remaining presales starting at $950,000. All are 3 bedroom layouts. There is one resale unit on the market so far. SLS Lux is also on track for completion this fall/winter. They have only four penthouses remaining that have recently been repriced.
In Downtown, Paramount Miami Worldcenter is going to bring every amenity imaginable to their mega-project. They are about 60% sold and have residences priced at an average of $750/square foot. Because of their strong sales figures, they were recently able to secure the second largest construction loan in this build cycle. They are currently in vertical construction and should deliver keys at the end of 2018.
If you’re looking for something sooner, you could head up to Edgewater and check out Biscayne Beach. They have 2 tennis courts over their parking deck and a bayfront beach club. They have 5 remaining presale opportunities, and we will be listing an amazing high floor 3 bedroom on the southeast corner.
For people who are looking for an integrated community, I would suggest the waterfront Paraiso complex. There are five residential sections to the complex, totaling 1400 units. Paraiso Bayviews is the most affordable section, with remaining inventory starting at $470k (as of today). They just passed the 42nd floor of construction and should be ready by the end of this year. Paraiso Bay was the first of the towers to open sales. They are currently all sold out and on track to open this summer. GranParaiso is the most luxurious of the towers. It will be finished in Spring of 2018 and has 2 bedroom residences starting at $1 million. One Paraiso is the sister building to Paraiso Bay. They have 3 remaining penthouses, starting at $1.9 million. Aside from the towers, there is also a small enclave of bayfront beach homes. There are only 8 in total and 1 remains at $2 million.
Hyde Midtown is going to be the first project in Midtown to offer a tennis court for residents. They recently topped off at 80% sold. Their prices start in the mid $400,000’s and the rooftop penthouses start at just $735,000! The penthouses have rooftop terraces as well.
Come back tomorrow and we can take a look at the existing buildings who also offer tennis courts!
