Related Group Closes Out IconBay; Inventory Concerns Loom For Investors

As reported a few days ago by South Florida Business Journal, Related Group has closed on all 300 units at IconBay. Without question, that is a tremendous milestone for what is considered the first luxury condo development to be completed in Edgewater during Miami’s most recent construction boom. However, not all is sunshine and rainbows for IconBay and, in particular, for its investors; inventory continues to mount and owners are finding it increasingly difficult to sell and/or rent their units.

Let’s first examine the rentals at IconBay. Currently, a total of 68 units are on the market for rent. That represents a whopping 23 percent of the development’s 300 total units. More concerning, however, is the lack of rental activity. According to the MLS, since June, when initial units first began to hit the market for rent, there have been 15 closed rentals, an average of just 3 units rented per month. As a result, and as one might expect, asking prices have fallen along the way; in some cases, the drop has been significant. For example, in late June, when the first 1 bedroom + den unit at IconBay hit the market, it was priced at $4,000 per month. That unit – unit 2102 – ultimately ended up renting for $2,700 per month. Since then, a unit located in the exact same line but four floors higher and with a similar build-out – unit 2502 – rented for $2,500 per month. And prices are still trying to find a bottom. Unit 2802 – another unit of the exact same floor plan that is currently listed for rent – is asking $2,500 per month. And the 2 bedroom + den units at IconBay haven’t fared much better. They have rented for as low as $3,000 per month (in fact, three separate 2 bedroom + den units have rented at that price). In other words, 2 bedroom units are renting for 25 percent less than where the initial 1 bedroom unit was priced.

In regards to resales at IconBay, currently, there are 72 units listed for sale on the MLS. That represents a staggering 24 percent of IconBay’s total number of units. Post-closing, just 4 units have exchanged hands:

• Unit 2401 – a 2 bed + den/2 bath condo with 1,435 interior square feet sold “decorator-ready” for $810,000 on October 1st ($564 per square foot)
• Unit 2601 – a 2 bed + den/2 bath condo with 1,435 interior square feet sold “decorator-ready” for $800,000 on October 16th ($557 per square foot)
• Unit 2901 – a 2 bed + den/2 bath condo with 1,435 interior square feet sold “decorator-ready” for $810,000 on October 27th ($564 per square foot
• Unit 307 – a 2 bed + den/2 bath condo with 1,003 interior square feet sold “decorator-ready” for $540,000 on October 28th ($538 per square foot)

According the MLS, no units have closed this month. Additionally, not one single unit at IconBay is under contract (pending sale). As with rentals, it appears that prices are still trying to find a bottom. For example, unit 3101, which is located on a higher floor than any of the aforementioned 01 units that recently exchanged hands, is currently listed for sale with an asking price of $780,000 ($544 per square foot). Unit 3101 has been listed at that price for 79 days, yet no takers. (I am scratching my head trying to figure out why on earth a buyer would choose to pay $20,000 to $30,000 more for a unit located two to seven floors lower.)

So what gives? Why does there appear to be a lack of interest for units at IconBay? Well, the complaint that I keep hearing, from clients and real estate agents alike, is the size of their floor plans, or, rather, their lack of size. The corner units aren’t so bad, but the interior units are unexpectedly small, especially the non-corner 2 bedroom + den units (lines 03, 04, 05, and 07) which range in size from 1,173 to 1,208 interior square feet. Another common complaint I hear is the neighborhood. People argue that it’s just not there yet, at least not at current asking prices. Edgewater is a work in progress. It’s unreasonable for investors to expect their units there to compete head-to-head with condos located in neighborhoods such as Brickell and Park West. Finally, the third gripe I keep hearing from people about IconBay has to do with their own expectations. With a name like “Icon”, one comes to expect a certain level of luxury, as what is found with its sister projects Icon South Beach and Icon Brickell, both considered outstanding and highly popular condo developments. Oftentimes, people who have visited Icon South Beach and/or Icon Brickell visit IconBay with very high expectations, only to walk away sorely disappointed. It’s like the first time you watched the movie Terminator 3: Rise of the Machines. You couldn’t wait for it to be released in theaters, because you just knew it was going to be amazing, just like the first two parts; yet, in the end, you walked out of the theater asking yourself, What was that crap?. Had you walked into the theater with different expectations, or, better yet, with zero expectations, perhaps you could have enjoyed the movie (actually, no, that was a horrible movie no matter how you slice it).

Of course, there are going to be those who say, Lucas is just being negative. Related Group was able to close all 300 of its units at IconBay. The development was a resounding success. Well, it depends from whose perspective you’re looking. For Related Group, without a doubt, it was an overwhelming success. For investors, not so much. In my opinion, it’s not surprising that all 300 units at IconBay closed. With 50 percent deposits on the line, contract holders weren’t left with much of a choice. (To me, walking away from such hefty deposit money doesn’t seem like much of an option.) If IconBay is such a resounding success, that success should translate into sizable profits for investors (not five or ten years from now, but right now), especially considering the fact that real estate prices in Miami have increased significantly since August 2012, when preconstruction sales launched for condos at IconBay. Recently, I read an article stating that the median sales price of existing condominiums in Miami-Dade County increased 52 of the last 53 months (a period spanning nearly four and a half years). Taking this fact into consideration, one could justifiably assume that initial investors of units at IconBay would have no problem locking in tidy profits post-closing. However, comparing the preconstruction price list dated September 6, 2012 for units at IconBay (shown below) with recent post-closing activity as reported on the MLS, that doesn’t seem to be the case at all. Take, for example, unit 2401 which, as mentioned earlier, closed for $810,000 on October 1st. After taking into account the developer’s fee, commission on the resale, and closing costs on both ends, that preconstruction buyer, by my estimation, likely broke even. And that’s for unit 2401. Units 2601 and 2901, two other units which closed last month and do not appear on the price list below, are located on higher floors; so one could assume that they presold at even higher prices. And let’s not forget about unit 3101, another unit I mentioned earlier in this post; it’s currently asking $780,000 and has been on the market for 79 days.

I leave you all with a thought of the day from Joe Biden. I hate to admit it, but perhaps Joe is finally onto something.

Elysee Sales Launch a Success: Prices, Plans and Penthouse

After a two month whisper campaign, Elysee officially launched sales last night with a cocktail party and unveiling at their sales center in Edgewater. Guests were treated to live music, food and drinks, plenty of mingling as well as details of the upcoming project. At launch, the building was 20% reserved with an average of $750/square foot thanks to the whisper campaign, representatives of the project reported.

The 57 story tower will be home to 100 total residences, all half-floor or full-floor layouts of 2,660 square feet up to 4,000+ square feet and 3+ bedrooms. Each apartment will feature east and west views with 8- or 10-foot deep terraces, private elevators and modern design by Jean-Louis Denoit. Three levels of amenities are offered for all residences.

In addition to releasing the floor plans and brochures, representatives also shared initial details about the 9,000 square foot upper penthouse. This one-of-a-kind residence will be built to suit the owner and encompass the entire 57th floor. It will also include a full-floor rooftop terrace for 360-degree views from above the building. The developers have not officially disclosed the price, but it is expected to be released at around $15 million.

Construction is scheduled to begin in the Spring of 2016. Contact us for additional details.

Each and every condo at Elysee will offer breathtaking views of the Atlantic Ocean and/or Biscayne Bay. Below is a video which showcases those direct, unobstructed views of the water:

Just Listed – Stunning 2 Bed/2 Bath Condo at Paramount Bay w/ Storage Room Included

I’m pleased to announce our newest listing – a stunning 2 bed/2 bath condo at Paramount Bay with 1,128 interior square feet, an 8-foot deep terrace totaling 242 square feet, white porcelain tiled flooring throughout, private elevator, 10-foot high ceilings with floor-to-ceiling glass windows, large walk-in closet with built-in cabinets, stone kitchen countertops, and stainless steel appliances by Wolf and Sub-Zero. Most importantly, this residence features sweeping, breathtaking views of Biscayne Bay from the kitchen, master bedroom, and master bathroom, including from within the glass-enclosed shower. Price includes a 150 square foot storage room located directly across the hallway from this unit.

The property is currently tenant-occupied but the tenant is scheduled to vacate by December 15th. Priced to sell quickly.  Asking $789,000. Last November, unit 1008 (exact same floor plan but located 9 floors lower on the 10th floor) sold fully furnished for $790,000. In my opinion, those 9 floors make a world of difference and more than make up for the fact that this property is being offered unfurnished.

Paramount Bay condos is located at 2020 North Bayshore Drive in Edgewater – Miami’s hottest, emerging neighborhood. Amenities include: east and west swimming pools; hot tub;  BBQ; 24-hour concierge; 24-hour valet parking; 6,000 square foot spa and fitness center with sauna, steam and private treatments rooms; business lounge; and separate teen and children’s playrooms.  Paramount Bay is a pet-friendly condo development.

If you or someone you know would like to receive additional information and/or to request a showing, please call or text me at 786-247-6332. I can also be reached via email at lucas@miamicondoinvestments.com.

Elysee Prepares to Launch: a Superluxury Boutique Condo for Edgwater

Two Roads Development (the Miami-based firm who recently brought us Biscayne Beach) is following up their success by introducing Elysee, Edgewater’s first super-luxury boutique residences. The official launch will take place Wednesday, November 11 and construction is slated to begin early in 2016.

The 57 story bayfront tower will be located on 23rd Street, just north of the Adrienne Arscht Center and conveniently between the MacArthur and Julia Tuttle Causeways. We are most excited to see that the tower will have only 100 residences and all will be half-floor or full floor layouts. Every apartment will have a direct view of the Biscayne Bay as well as a sweeping sunset view. All of the layouts are expansive, ranging from 2,660 square feet up to 4,000 square feet and the developer is honoring the option to combine apartments for additional full-floor options as well as duplex residences. All of the apartments have private elevators & foyers as well as service  elevators. Many apartments will also have staff quarters included in the layout.

Within the tower, there are three floors dedicated to common areas with services such as a blow dry bar, summer kitchen, 75 foot resort pool and a ground floor sunrise pool. The fitness center will include a yoga studio, reception desk, and spa with a separate play area for children. On the 30th level, residents will enjoy a grand dining room for up to 30 guests, business center, library, theater, and wine storage. Each apartment will include 2 parking spaces and a storage area.

Elysee was inspired by the French design and is being finished by Jean-Louis Denoit, the famed interior designer who was recently dubbed the “Modern Master of French Interiors” by Forbes Magazine. With prices averaging at $750/foot, and starting at $1.67M, we expect to see Elysee as another success story for Two Roads Development and also for residents of the area.

Dog Park Coming Soon to Margaret Pace Park

Every dog has its day…a day at the dog park that is! At least that could be the case for your furry, four-legged friends once the new dog park opens in Edgewater at Margaret Pace Park.

This morning, while out showing property in the neighborhood, I spotted heavy machinery clearing the land to a fenced-in portion of the park. So, with camera phone in tow, I ran over to investigate. To my delight, I discovered a sign hanging, which read: Pardon our mess! A new dog park for your furry friends is coming soon!  The sign also included the logo for Easy Grass – a company which produces safe, artificial grass – leading me to assume that Easy Grass will be laid within the designated dog park area.

A dog park in Greater Downtown Miami is something that has been long overdue for residents and their dogs. No more trekking it to Coconut Grove or South Beach in order to allow your dogs ample space to run and play with their friends without fear of being ticketed by the po-po.

The designated area will be located directly parallel to 1800 Club and catty-corner from Quantum on the Bay. Ironically, both of those building are not pet-friendly for tenants. No word yet on when the designated dog area is scheduled to open, but my guess would be within the next 1-2 weeks.

Biscayne Beach – Construction Update (Photos)

Of all the condo developments that are completed or currently under construction in Edgewater, Biscayne Beach is by far my favorite. It will be the only condo development in Miami to include an actual beach. How awesome is that? Some of you, especially non-locals, may be thinking, “So what? There’s tons of sand in Miami.” Well, that’s where you’d be wrong. Miami is situated along the bay, not the ocean, and, therefore, does not have sand-filled, waterfront land. On the other hand, Miami Beach, which is a completely different city from Miami, has plenty of sand along its coast, because it’s situated along the Atlantic Ocean. And the rest of you may be thinking, “Duh, well of course.” Sorry, but I feel the need to clarify that very rudimentary point for locals, because, so often, I come across people who aren’t from Miami who think that Miami Beach is a beach off the coast of Miami and that beaches there are plentiful.

Anyway, enough with the geography lesson – all that is about to change. The developer of Biscayne Beach is bringing the beach to Miami. Residents of Biscayne Beach and their guests will be just an elevator ride away from feeling the sand on the bottoms of their feet and/or enjoying a cocktail at the beach club bar. The atmosphere at Biscayne Beach should truly be a unique and special experience. The building hasn’t even been completed, yet every time I drive by it, the song “Beachball” by Nalin and Kane comes to mind. For those of you who have never heard of that song, “Beachball” was the 1997 international dance club hit. The song starts off with the words, “Yeah, let’s go to the beach”. The rest of the song is then filled with rhythmic yet soothing beats and voices. Such an amazing track! To me, it embodies the energy and atmosphere that one will find at Biscayne Beach once it is completed.

Construction of Biscayne Beach is well on its way. Earlier today, I made a visit to the construction site  to show a 2 bedroom condo at Platinum. While there, I had an opportunity to snap some photos showing the progress being made to Biscayne Beach. By my count, construction has reached the 26th floor. Below are the photos I took this afternoon. Oh, and in case you’re wondering, just a handful of units remain at Biscayne Beach, one of which is a two-story grand penthouse residence with 4 bedrooms, a den, a study, wine room, 5 full bathrooms, and a rooftop terrace with private plunge pool and summer kitchen. The penthouse has 7,878 interior square feet plus an additional 2,785 square feet of outdoor space. Asking $9,450,900 ($1,200 per square foot).

Elysee Condos – Edgewater’s First Ultra-Luxury Condo Development

With new condo developments being announced seemingly on a weekly basis, there are few that excite me these days. Elysee -a recently announced, ultra-luxury tower with just 100 total units – is one that does. Elysee exudes exclusivity and elegance in every way imagined. The 57-story condo development will be located directly on the water in Edgewater at 700 Northeast 23rd Street and include 3, 4, and 5 bedroom floor plans ranging from 2,844 to 3,979 interior square feet. With the exception of the penthouse – which will cover an entire floor and offer full 360-degree views – each of the units below it will span a half floor and offer full 180-degree views (east-south-west or east-north-west). As you can see in the mini scale model above, the floor plans get wider as you go up the building. Every residence at Elysee will have private elevators, 8- or 10-foot deep balconies, and 10- or 11-foot high ceilings with walls of glass all around to showcase the spectacular water and city views.

Most importantly – at least to me – Elysee will be a white-glove service building (think St. Regis). Not enough can be said about how exclusive and differentiating it is for a building to offer such pampering services to its residents. Along with the full-service concierge, Elysee will feature lavish full-floor amenities on both the 7th and 30th floors. The 7th floor will include a 75-foot resort pool; outdoor summer kitchen & BBQ; men’s and women’s spa with sauna, steam shower, and private massage rooms; fitness center; yoga studio; children’s playroom; and blow dry bar.

As if that weren’t enough, the 30th floor – which residents will be able to rent out for formal events – will feature a great room with grand piano and sweeping, unobstructed views of the city and water; chef’s kitchen; chef’s table with indoor and outdoor seating; grand dining room with seating for 30 people; theater room with 4K projector; full lounge bar; business center; resident wine storage; and game room.

Prices for the half floor units at Elysee start from $1.67M.  That amounts to just $587 per square foot! Given the caliber of building that Elysee will be, that has bargain written all over it. There are few condo developments in Miami to get excited about these days, but Elysee is the exception. It will set the bar not only for condo developments throughout Edgewater but throughout all of Miami.

Elysee was soft-launched late last week. However, it won’t officially be released to the public until October once the sales center is built. This is the time to get in at Friends & Family pricing. Contact me for details.

Icon Bay and Biscayne Beach Construction Update

Earlier this week, while scoping out the panoramic views from the rooftop deck of Penthouse 1 at Bay House, I got the opportunity to peek in on the progress being made at neighboring condo development Icon Bay as well as that of Biscayne Beach, located just two blocks away from Bay House on 29th Street. Contained here are a few snaps that I took that day. Icon Bay looks almost ready to go. My guess is that closings will begin towards the end of April to beginning of May. Biscayne Beach, on the other hand, is still in its early stages of construction. As reported by The Next Miami, Biscayne Beach completed its foundation pour on November 22nd. In the photo at the bottom of this post, you can make out Biscayne Beach’s footprint as well as the early makings of its entrance ramp for vehicles entering the property.

Breathtaking Views from Penthouse 1 at Bay House

When you think of reasons why people from all over the world are enamored with Miami real estate, the breathtaking water views it offers is one that would come to mind quickly. This morning, I was given a guided tour of Penthouse 1 at Bay House  – a 5 bedroom, 6.5 bath condo with 3,512 interior square feet and an impressive 1,901 square feet of terrace. The private rooftop terrace includes a summer kitchen, Jacuzzi, and, most importantly, it offers views galore – a full 180-degrees of them. Imagine yourself sipping on a Mojito while soaking in your Jacuzzi, all while your hired help grills you some food. Now, that’s the life! For those who lack a sense for imagination, be sure to watch the video below to help kick-start your daydream. The video starts with a pan of the area designated for the summer kitchen and then quickly gets to the good stuff – the postcardesque view!

Penthouse 1 is just one of eight seven units that remain for sale at Bay House. At one point, the development was completely sold out but, for one reason or another, eight units came back to the developer. In an effort to sell them before May – which is when closings are scheduled to begin – the developer is offering a rather generous incentive package. Not only are these final eight units well priced when compared to other developments in the area, they also will include an additional assigned parking space AND will be delivered with finished baseboards, paint, and choice of white tiled flooring or wood. The other 157 units in the building that were previously sold will be delivered decorator-ready, unless, of course, a contract holder chose to pay a higher price to include such finishes in their final purchase price.  Below is a table showing the eight remaining units along with their price and property details. The traditional floor plate at Bay House has only five units per floor, each with a direct water view. The caveat here, however, is that there’s a large, waterfront parcel of land located directly east of Bay House. It is owned by the Catholic Church, which, over the years, has turned away a slew of condo developers with interests to acquire and develop upon that land. There is no telling if and when the Catholic Church will finally say yes. Townhouse units, located at the base of Bay House, do not have a water view but do offer the ability to drive right up to your unit and park. A great solution for those anti-social types who cringe at the thought of having to walk through their lobby and say hi to people yet appreciate the conveniences that condo living offers.

If you have an interest in any of the eight above mentioned units, please don’t hesitate to contact me. I may be reached on my cell phone at 786-247-6332 or via email at lucas@miamicondoinvestments.com.

Below are other photos I took today while touring Penthouse 1 at Bay House: