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!
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?
Paraiso District Construction Update: Paraiso Bay Closings Set To Begin September 2017
The Paraiso District is now 97% sold and on the verge of opening its first building. Here is a breakdown of each tower with current photos of their progress…
Paraiso Bay – Although previously announced as “Sold Out”, we have received word that one unit has come available. This one is an 05 line with a direct bay view. It has 1,326 square feet with 2 bedrooms, 3 baths and a den. It is being offered for $934,900.
We had previously heard that the building was set to open this month, but opening day has been pushed to September. Delays at the end of the construction process are pretty common, so we’ll be sure to stay abreast of any changes.
Paraiso Bay Homes – Although not as heavily publicized as the towers, the Bay Homes are probably my favorite phase of the complex. They are located directly across the driveway from the Paraiso Beach Club and directly under the pool deck for Paraiso Bay and GranParaiso (with their own entrance). They are townhouse-style beach homes with an average of 4,000 square feet and 3 or 4 bedrooms. There are currently 3 remaining that are priced between $1.9 million up to $2.4 million.
Paraiso Bayviews – The most affordable tower is also nearly sold out, with an anticipated opening of January 2018 after topping off in April. There are now 5 condo residences available and 7 penthouses. The prices range from $420,000 for a 1 bedroom plus den with a garden view to $650,000 for a 2 bedroom with sunset/skyline views. In the penthouse levels, remaining opportunities range from $630,000 to $1.6 million.
One Paraiso – In our most recent construction update, One Paraiso had just topped off with two opportunities remaining… a 1,680 square foot 3 bedroom, 3.5 bath with bay and ocean views for $1.45 million and a 4 bedroom, 4.5 bath penthouse with 2,850 square feet and bay/ocean views for $2.85 million. Both remain available with opening day projected for February 2018.
GranParaiso – The final tower to be completed is also the one with the most inventory to choose from. GranParaiso has currently reached the 46th floor of 53 total. We should see top off early in the fall and final completion in the Spring of 2018. There are 18 condo residences available, ranging from $960,000 for a 2 bed, 2 bath plus den with bay & ocean views, up to $1.88 million for a 4 bed, 3.5 bath plus den with the same view.
There are also four remaining penthouses from $2 million to $3.1 million.
For specific unit numbers and prices (if not listed in this post), just send us a message. We’re always happy to help. As for the Paraiso Beach Club and Amenity Complex, they are both coming along nicely and scheduled to open just in time for the first residents’ move-in.
One Paraiso Has Topped Off; Paraiso District Construction & Sales Update
The third tower in the 10 acre Paraiso District has topped off. One Paraiso reached its final height of 53 floors this week leaving only GranParaiso in the vertical construction phase. Here is the latest on the project:
One Paraiso – The building has topped off and interior finish out is underway. Only two residences remain, a 3 bedroom and a penthouse. Closings are set to begin later in the year.
BayHomes – Interior finish-out and landscaping are underway and sidewalks are being poured. Closings will begin this summer and prices start at $1.9 million.
Paraiso Bay – This was the first tower to top-off. Interior finish-out is underway and closings are set to begin this summer. There are no purchase opportunities at this time.
Paraiso Bayviews – The most affordable tower in the district topped off in April and is set for opening at the end of the year. Remaining apartments start at $599,000.
GranParaiso – If you want A-Rod to be your neighbor, you should buy here. They have reached the 41st level of vertical construction and are set to open in the Spring 2018. Prices start at $968,000.
