Have you jumped on the Bitcoin Bandwagon yet? If not, you cannot buy this penthouse!
That’s right, the seller of the Penthouse 2206 at Edgewater’s Platinum Condominium does not want your financed offer, or your cash offer for that matter. They accept ONLY Bitcoin and are asking $33 for the 1 bedroom unit. According to our handy currency conversion tool, this amounts to $542,000 USD.
While I commend the seller for their attempt at profiting from the buzzword of the hour, there are some fundamental flaws in their strategy.
FLAW 1: Alienating Potential Buyers Who Would Pay Cash
Whenever you are offering something for sale, you want that item to be available to as many people as possible. This is the reason Realtors are always saying to remove the clutter and personal items from your home before you put it on the market. In order to achieve maximum profit, you want the potential buyers to be able to see themselves living in the apartment and making it their home (or to see a solid profit in an investment). If you ONLY accept Bitcoin, you alienate all of those who would pay cash or get a mortgage.
FLAW 2: The Price
If you convert the price of $33 Bitcoin to US Dollars, it comes out to $542,000 (as of today). Even the biggest two bedroom in the building isn’t offered for that much! Check here to see the other available apartments in the building. They’re priced nowhere close to this unit. In fact, over the last 6 months the only two 1 bedroom apartments to sell both went for HALF of the asking price at PH 2206. Even the two bedroom apartments that sold traded for more than $100,000 less than this listing.
This is a hyped-up attempt to get away with overpricing an OK apartment.
FLAW 3: These Photos
Ah, these photos. If you’re going to post a listing that is overpriced by double, at least give us some photos that attempt to justify the price. Let’s go through them…
This one is great if you want to see a blurry depiction of what the view was like in 2014. Since then, at least 3 towers have been constructed within the frame.
The gym is nice enough, but the image could be sharper.
Same with the pool.
There are lockers and a sauna.
This photo was also taken in 2014. You can see IconBay in the background, but not the other towers that have been built around.
This photo is so blurry, you can’t even make out the name of the building behind the front desk.
The kitchen is nice enough.
Apparently there is a rule in this apartment that prohibits hanging photos or wall decorations by tenants.
So, there’s a washer/dryer in the apartment. I’m not sure this photo is a testament to how spacious the laundry area is, but at least you know it’s there, right?
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All-in-all, I think this listing should serve as a huge warning to bitcoin buyers. This seller is clearly trying to pull one over on the market and profit from the hype. BUYER BEWARE!
The boutique ultra-luxury building will be home to just 100 residences with only 1 or 2 homes per floor. Each home has both a sunrise view over the bay and a sunset view over the horizon. From the upper floors, even the Everglades are visible!
On the 30th floor is a luxurious sky lounge for the residents with each room designed to maximize a different time of day. Each residence also includes a membership to Luxury Attaché, an around-the-clock and around-the-world lifestyle concierge.
Prices range from $1.5 million to $10 million for the residences and up to $14 million for residences in the “Les Grandes Maisons” collection.
Want To Be The First To Try Out The Restaurant At Paraiso Beach Club?
Last week, we were excited to bring you a photo preview of Amara at Paraiso, the Michael Schwartz-owned waterfront restaurant at Paraiso Beach Club. This week, we can help you to be the first to try it!
Debuting the new bayfront eatery in proper Miami style (just ahead of condo closings and during Art Basel), Mr. Schwartz is opening for a special pop-up experience December 6-9. Dinner seatings are available from 7-9:30pm each night by reservation only.
Guests at Amara at Paraiso will dine on a special preview menu that includes snacks, cocktails, wine, beer, and four courses that are served family-style. The cost is $189 per person. Below is a peek at the menu, and you can reserve your spot here.
If you would like to move to Paraiso, price ranges include:
Paraiso Bay: SOLD OUT, closings begin January 2018 One Paraiso: Four bedroom penthouse available for $2.85M. Expected completion March/April 2018. GranParaiso: Two bedroom plus den plans from $978k, three bedroom plus den plans from $1.33M, four bedroom plus den plans from $1.67M, penthouses from $2M. Estimated delivery April/May 2018. Paraiso Bayviews: One bedroom plans from $570k, Two bedroom plans from $630k. Estimated delivery March/April 2018.
Paraiso Bay Homes: Prices from $2M, closings begin early 2018.
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…
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!
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!
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