Aria on the Bay Lowers Deposit Requirement To 35% On All Units
Edgewater’s Aria on the Bay is slashing their minimum required down payment to 35%. Prior to the change, buyers were required to deposit at least 50% of their purchase price before closing.
The construction is currently on the 41st floor and will top off this summer at 53 floors. The 35% deposit schedule is: 20% of the purchase price is due within 2 weeks of the contract being signed and the remaining 15% is due at top-off. The final balance is due at closing in late 2017 or early 2018 although it is common for mortgages to be introduced for the final amount.
Aria on the Bay is Melo Group’s first luxury waterfront tower and is already a big success. They have sold 74% of the 647 units with an average price of $540/square foot. Remaining opportunities range from a $420,000 1 bedroom with 880 square feet and a south view up to the $1.6 million 3 bedroom residence with a den, 4 full bathrooms, private elevator and a 600 square foot terrace with north views.
Biscayne Beach Is Preparing Closing Letters
To prepare for opening day, the folks over at Biscayne Beach have begun reaching out to the buyers of their 399 new apartments. They are getting updates on contact information and finding out whether the apartments will be closed with financing or cash.
According to the developer’s representatives, closings will begin in January with cash transactions closing first. This barely misses their estimated completion date from the original marketing material in 2013. I always expect construction dates to be delayed, especially with large projects such as this one so delivering the project within a month of the original the estimated date is something to be celebrated.
This project is one of my favorite in the Edgewater area. The building is 51 stories and the amenities are unique. I hope we will get to take a photo tour for you once the TCO is delivered! Stay tuned as we work on that.
Another AC Hotel by Marriott is Coming to Miami, This Time in Edgewater
A decade ago, the only people who would dare get a hotel room along Biscayne Boulevard anywhere north of Downtown Miami and the city border were the occasional oblivious out-of-towner, and hookers. Boy has all that changed. Boutique hotels have moved in, with the Vagabond changing literally everything, and now the chains are following. Across the street from the under construction Hampton Inn, an AC Hotel by Marriott is being planned at 3400 Biscayne Boulevard, according to the Next Miami. It’s by the same developer as the Hampton, which is expected to open in September, and appears to have a somewhat similar design to the AC Hotel on Miami Beach, which is also a Kobi Karp… um, creation.
40% Sold, Rather Tacky Edgewater Condo Tower ‘Spark’ to Break Ground This Fall
A condo tower called Spark, by a developer called Spider (where do they get these names?) is gearing up for a fall groundbreaking at 533 NE 34th Street, with 40 percent of its 56 condos already sold. This is according to the Real Deal, which also says “construction would begin by the end of the year.” So, that’s like a window of, what, four months? Anywho, the tower is being designed by the Miami architecture firm of Behar, Font & Partners. From the renderings it looks like they might be going for a contemporary Little Mermaid-meets-MiMo motif, which, well, according to some people beauty is in the eye of the beholder. So, if you agree with that, behold! Units at the tower start at $500,000, and range between 955 square feet and 3,925 square feet for the largest penthouse. Oh, and there’s a big, beautiful empty lot right between this thing and the bay that’s primo development land, so if you’re buying in for those gorgeous bay views, you might want to reconsider. Or just don’t.
Quantum on the Bay Celebrates Settlement with Terra Group for Faulty Construction, Throws a Party
Quantum on the Bay
According to a notice posted in their elevator, the Margaret Pace Park-fronting condominium tower Quantum on the Bay has reached a settlement with developer Terra Group over faulty construction, and to celebrate is throwing a party. Meanwhile, 900 Biscayne Bay, also built by Terra, has entered into similar litigation against the developer, and is still working their way through that. Both buildings were completed in 2008, as the Great Recession was setting in and the last real estate boom was crashing hard.
According to a nice chap in the management office at Quantum who identified himself as ‘David,’ the litigation was in regards to faulty construction on the building’s facade. When asked “So, what about the facade David? Balconies, windows?” David’s reply was “both of those.” Well, that’s scary. Anywho David wasn’t willing to spill the size of the elevator sign settlement, but it could be quite large considering the building is throwing a party for all of its residents, this Friday at 6:30 pm, with a champagne toast, to celebrate (open to building residents and any broker who RSVPs, which means it’s totally crashable). That’s developer money.
Quantum on the Bay Party
Related Group Construction Update
The Related Group is looking to start 2016 ahead of schedule. This morning Carlos Rosso, President of Related’s condo division, shared these construction photos of SLS Lux, Brickell Heights, SLS Brickell and the Paraiso mega-development.
Above, you can see Brickell Heights and SLS Lux. Brickell Heights is the two towers under construction in the center of the photo. The tower to the right is Brickell Heights tower 1. This phase is sold out except for a few penthouse opportunities, Brickell Heights 02 is 85% sold out with select residences and penthouses remaining for purchase. This project is scheduled for completion in late 2016.
SLS Lux is the shorter tower to the right of Brickell Heights. The construction began more recently than Brickell Heights and it is scheduled for completion in the fall of 2017. This project is nearly sold out as well with roughly 20 residences remaining and penthouses. Upon completion, SLS Lux will be 57 floors and Brickell Heights will have 49 floors in each tower.
Above, you can see SLS Brickell. This one is topped off just in time for the new year and has been sold out for some time with the exception of a couple of penthouse opportunities. The construction schedule shows SLS Brickell being completed in the spring of 2016.
Below is a great angle to see the impressive size of the Paraiso Bay mega development in Edgewater. This project features 4 towers on 4.6 acres that will begin to be delivered in late 2016. The four towers are Paraiso Bay, Gran Paraiso, One Paraiso and Paraiso Bayviews.
Bravo to Related for pushing the projects & heading toward the finish ahead of schedule! We can’t wait to see the neighborhoods continue to grow. We are happy to help should you be interested in any of the remaining opportunities in the projects.
DEAL ALERT: Developers Offering Attractive Close-Out Pricing on Existing Condos
While the market is buzzing with attractive pre-construction investment deals, not many people think to inquire about the buildings that are existing and still have a bit of inventory. For some investors, these existing buildings can bring a better investment than the speculative development deals that others are flocking to. The close-out phase of an existing building is actually one of my favorite times to sell in a project for a few reasons:
- Mitigated Risk
The investor can see the actual building and apartment they are buying, so much of the risk of the design and construction phase has gone by. Since the apartment exists already, the buyer knows exactly what they will receive, not a photo of a building that they hope comes to fruition the way it is shown in the rendering.
- Faster Return
If you buy existing inventory for purposes of a rental investment, you can lease the property immediately. You will be able to see your money work for you straight away while other investors wait to see how their investments will perform after the building is completed.
- Financing
Mortgages become far easier after half of the apartments in a development have closed. Since the lender can also see the building, they know what their risk is and are more willing to lend money with lower down payments. This is true for both local and international investors.
- Flexibility
Developers are investors too, and when they are in the close-out phase they are almost finished with their project. I don’t care how many people say that there is no emotion in business, that is wrong. There is something emotional about being close to the finish line and that makes developers more eager to sell those last apartments to get to their goal. Many times we see developers offering HOA credits, discounted prices and special leaseback programs to entice buyers into helping them reach their goal. If buyers can reach their goals by helping developer reach their goals, isn’t that a perfect scenario? I think so…
With these points in mind, I have a prime example of a building that is currently in this situation.
City24 is a boutique luxury building in Edgewater with 119 apartments. It was originally built in 2008 and has all of the amenities and finishes that residents of the neighborhood have come to expect. There is a 24 hour doorman, gym, pool & jacuzzi, secured garage parking, the apartments have stainless appliances and quartz countertops with tile or wood floors, washer/dryers in the apartment, pretty views, easy accessibility to restaurants and fun events… the things we look for in the Downtown Miami area.
Out of the 119 original apartments, the developer needs to sell only 6 more in order to be finished. We have toured the remaining 6 and have not seen a reason that these specific apartments remain unsold. The developer is offering the full inventory for $2.5M, which works out to roughly $385/square foot. Naturally, if one investor were to purchase all 6 apartments, a lower price or additional perks would be considered.
At the offered price, the remaining apartments would equate to a pre-tax return of 5% when rented for full market value. The typical investment apartment in the area today brings a 3% return, so the buying investor would start off with an advantage on this package. Additional parking spaces, HOA credits or price negotiations would help the both the buyer and the seller while making good use of the property.
If you would like more information on specific apartment numbers, sizes, prices or packages, don’t hesitate to reach out. We can work together to present a package that meets your investment goals on this or similar projects.
Developers Offering Year-End Incentives to Close Out Projects
In an effort to hold the attention of buyers and sell as many apartments as possible before the end of 2015, developers are coming out with attractive incentives packages to help buyers decide to act now and close out their projects. Here are some of our favorite incentives from buildings that are currently under construction and selling pre-construction residences:
Brickell Heights – Related has lowered the down payment requirement to 30% from the original 50%. Prices of remaining inventory start in the $400,000’s.
SLS Lux – All of the condo/hotel apartments are currently under contract, but the developer is offering upgraded kitchens on the remaining condo residences and 30% down payment. The penthouse collection has recently been released and sales are almost finished. Prices start in the $600,000’s for the remaining units.
Paraiso Bayviews – All four towers of the Paraiso development are currently under construction and Paraiso Bayviews is 95% sold. For select apartments, the developer is offering a finishes package with porcelain flooring throughout. The prices currently start in the mid $500,000’s up to the high $600,000’s and penthouses are priced between $639,900 to $1.75MM. The developer has not officially offered deposit flexibility but has indicated that it is possible on a case-by-case basis.
Hyde Midtown – The construction of Hyde Midtown has only just started in recent months, but close out is fast approaching. Prices on remaining inventory start in the $400,000’s and the sales team has offered some flexibility on the 30% down payment on a case by case basis.
We were very happy to see these flexible down payment options, as it will make new condo purchases more accessible to those who hope to live in the apartments. The incentives also help to allow for the possibility of financing the condo purchases, which many people have inquired about yet been unable to easily attain until now.
Let us know if you or someone you know is interested in more information on these or other developments. We will have team members in Miami during all of the holidays and until the end of the year to help visitors by appointment.
The Crimson in Edgewater Gains Fannie Mae Approval; Prepares to Start Closings
Placed between IconBay and Bay House in Miami’s Edgewater neighborhood, The Crimson is preparing to begin closings this month. The Crimson is a boutique property of only 90 apartments in 20 floors and will offer a more private lifestyle than some of the larger projects on either side.
One of the aspects of The Crimson that we love is its status of being silver LEED certified – meaning that the project has earned 50-59 points toward ultimate energy efficiency. Builders can earn LEED certification points through building design, quality of materials, efficiency of appliances and even for designing low-maintenance projects.
To prepare for the opening, the developer has also announced that the project is Fannie Mae approved. This is particularly exciting for local residents who are interested in purchasing an apartment as their primary residence. The sad reality is that many projects in the area are not attainable for local buyers due to the fact that mortgage funds are not typically available to buyers of new projects. Buyers can now purchase a brand-new condo in The Crimson with as little as 20% down payment. There are only 5 buildings in the greater Downtown area that have this Fannie Mae approval.
There are still a few opportunities to purchase prior to the building opening with prices ranging from $455,000 up to $1,579,000.
