Here Is The Full Schedule Of IconBrickell’s Pool Renovations
In a letter to unit owners this week, IconBrickell has released the full schedule of their pool deck renovations, which are currently underway. According to the document, it appears everything is going according to schedule. They hope to be finished and cleaned up by December 15, 2017.
During the construction, there have been looming value and inventory worries. Thankfully, the prices seem to be holding firm, as we saw last week during our market checkup.
IconBrickell Renovation Schedule by Sarah Elles Boggs on Scribd
Checking In On IconBrickell’s Sales And Rental Values
It has been 3 months since we last checked in on IconBrickell’s pool project, and construction is now well underway. The photo above was taken this morning during one of our showings. You can see that the trees have been removed and their soil is now being removed to make way for the tile demolition.
Back in November, we noticed that the prices were in a virtual free-fall. Thankfully, the trend has not continued now that the work is underway. In the last 3 months, the average sales price per square foot has actually risen to $492/square foot and sellers have been discounting their listing prices less than the Brickell market overall. IconBrickell sellers are accepting an average of 94% of their asking price, opposed to the average of 92% of asking price that is being accepted throughout the neighborhood.
In the rental market, we have seen a flurry of action! A whopping 96 apartments were leased in the building during the last 3 months, with 49 pending contracts waiting for move-in day. The prices have fallen, but not as far as many have feared. Apartments are starting at $1,700/month for studios, $1,900/month for one bedrooms and $2,500/month for two bedrooms. Please also note that the prices I am giving are AFTER negotiation. The landlords are not negotiating as much as some may hope. The studios are offering very little room for negotiation, one and two bedrooms may reduce their asking price by $100 or so, but nothing dramatic. Despite the pool hiccup, it seems the building is still very popular to tenants.
One metric that was alarming to me was the fact that there are currently 228 active listings for sale in the project, but only 12 closings during the last 90 days and 14 units with contracts in escrow. Since inventory is up and closings are down but values are holding steady, this tells me that only the owners who really need to sell are doing so. This is good news for IconBrickell fans, it shows the owners understand that the building will be restored to its former glory once the repairs are complete. Unfortunately for those who were hoping to capitalize on the building’s situation, it doesn’t look like that strategy is panning out as well as many had hoped.
We will check back in a few months and see how the trend is moving along. In the meantime, you can browse the available options here.
IconBrickell Pool Closure Begins December 5
Over a year after we first reported the pool closure at IconBrickell, they have finally given the dates for the work to begin. In a letter to residents this week, the condo association has announced that starting December 5, the pool will be inaccessible for approximately 12 months. Surprisingly, the condo association did not make arrangements for an alternative pool for the residents.
Anticipation of the repair and special assessment have sent sale and rental prices in a tailspin. Sales prices in the last 90 days are averaging $426/square foot. Just a year ago, apartments in the project were closing at $584/square foot.
Rental prices have also been in free-fall. Unit 4103 in Tower 2 rented in 2015 for $5,300. This year, it rented for $3,800 after 5 months on the market. In Tower 1, unit 4104 rented this month for $2,000, down from the $2,600 that the landlord received last year. It doesn’t help matters that there are currently 180 available rentals on the market. Since 24 apartments rented in the last 30 days, it will take over 7 months to absorb all of this inventory.
On the bright side, this is a fantastic opportunity for investors who are looking for a long-term hold or for those who are looking for a great price on a vacation home. While the values are depressed now, I fully expect them to rebound when the amenity deck reopens. There are still plenty of sellers who need to move on from the properties for personal reasons, or investors who are not able to wait out the storm. How much lower do you anticipate the prices will fall? We are happy to help if this situation is an opportunity for your investment goals.
IconBrickell Condo Association Releases Scope and Dates of Pool Renovation
The condo association at IconBrickell sent out a newsletter today to all of the residents, detailing the scope and dates of the pool renovation that nobody is looking forward to. Apparently, the defects were discovered almost 5 years ago and they have been working all this time to find an efficient way to make the repairs.
According to the 2 page newsletter, the spa and fitness center will remain open but they confirmed the pool will remain closed until the fall of 2017. Surprisingly, the newsletter did not make mention of the special assessment that was was passed in June or a lawsuit for the defects. They did introduce the construction team and give a preview of the tiles that were chosen for the new pool. Why anyone would build a pool and not use non-slip tiles is beyond me, but here we are.
While all of the whispers have been circling about the massive repair, values in the building have already started to be affected. Rental prices are down about 10%. The problem is that the iconic pool is a big reason people choose to live at IconBrickell. People don’t really like living in a construction site, so the apartments there aren’t able to command the premium they once did.
Take as an example our listing of apartment 4104 in Tower 1. It has the double-height ceilings that people ask for in the building and a great view. Last year, we rented it for $2,600 and this year it has been sitting on the market since July… even with a reduction in price to $2,300.
In Tower 2, we have another rental listing, Unit 4103. It is the big 2 bed plus den plan that is one of the most popular in the building. The furnishings are gorgeous, and it also has the double height ceilings? It is also priced lower than the lease value of last year, but is sitting lonely since June.
Hopefully, the construction team that took almost 5 years to put together will work fast and do things the right way this time. Nobody is looking forward to the next year at IconBrickell except investors looking for a deal.
IconBrickell Newsletter on Scribd
Icon Brickell’s Most Expensive Listing Stagnates, then the Big Pool Breaks
Unit 4601-2, the most expensive apartment for sale at Icon Brickell, located in the north tower, has been on the market for a solid year and four months, seeing multiple price drops along the way. Currently offered at $4 million, today however is still not its day. The pool broke big time, meaning a construction site downstairs for the next 12-14 months and assessment charges for everyone!
The 3,520 square foot bay front condo with fabulous views of Downtown, the bay, and the beach originally asked $4.8M when it was listed in February 2015. Reduced to $4.2M in May 2015 it was reduced again to $4M in July 2015. The listing expired for a month that summer and has stuck to its price ever since. Let’s see what happens next.
Leave your opinions of the destiny of Unit # 4601-2 in Icon Brickell Tower II in the comments!
What Will Icon Brickell’s Leaky Pool Do to Property Values?
The ongoing situation with Icon Brickell‘s leaky pool, the pool’s reconstruction, the fees being assessed to each unit’s owners to cover that cost, and the lawsuit seeking that money back, means a lot of people are asking questions about their property values. In three towers with a combined 1718 units, a hotel, restaurants, and a rooftop nightclub, that’s an army with a money problem. Here’s Lucas’ prediction:
“It’s to be expected that rental prices will be adversely affected by the pool repairs and renovations for the next 12-14 months or however long the project ends up taking to complete. Sales prices and rental prices are highly correlated, especially for a building such as Icon Brickell which has a high concentration of investor-owned units. As rental prices decrease, the overall return to investors will go down. In order to provide the same pre-assessment return to would-be buyers, the sale prices would need to come down.”
So once the pool’s done, everything will just bounce back?
“It’s a big piece of the puzzle. The special assessment is only like $8K per unit. What’s going to hurt the building values more is when rental prices go down because investors will get a lower return. Once their return goes down enough, they’ll figure it’s better to sell and invest their money elsewhere. Yes, once the pool reopens, rental prices should bounce back to where they should be.”
This is How Much Each Icon Brickell Owner Will Have to Pay to Fix That Giant Leaking Pool
Icon Brickell Pool
The Icon Brickell Master Association sent out a letter to ‘All Association Members,’ meaning every owner in the three-towered colossus, to lay out how much each is expected to pay, broken down per unit, for the repair and replacement of Icon Brickell’s poorly constructed pool. The cost of the entire $14 million project is being split up among the development’s 1,718 total units, the newly rebranded W Hotel, and even (from the looks of it) the restaurants, proportional to each owner’s percentage ownership of the development. This breaks down the amount of the special assessment to thousands of dollars for a typical unit, but not tens of thousands. Reasonable? The association is set to vote on the special assessment on 14th.
The Viceroy is (Most Likely) Becoming a W Hotel
Viceroy Elevator Lobby. Photo via Flickr/ 準建築人手札網站 Forgemind ArchiMedia
According to two independent sources connected to the property, the Viceroy Miami Hotel in Brickell has been purchased by Starwood Capital and will soon be turned into a W Hotel. Some employees (including one of our sources) who are being kept on after the rebranding have already been notified and are preparing for the switch, while the hotel’s residents and guests have yet to officially be told, but have probably heard anyways. “Yes, I’ve heard it as a rumor — but a strong one” says one occupant (our second source) of a leased unit. This is apparently happening while the hotel’s main pool gets its big rebuild, adding yet more intrigue to that otherwise dramatic situation.
IconBrickell Pool To Close For 12 to 14 Months
Residents of IconBrickell and the Viceroy Hotel (W Hotel) are in for a hot and dry summer, as their famed pool deck will be closed for renovations/repair. Our sources have confirmed that the Icon Brickell pool closing is expected to begin around February 2016 and the work is estimated to be completed in 12 to 14 months.
It has been reported that the Icon Brickell pool renovations will include re-tiling of the pool deck for safety reasons (because the tiles used by the developer are too slippery for use on a pool deck). Others have reported that leaks in the pool have caused damage to the spa and gym below; however, the management office has not cited at this time the exact reason for the closing.
IconBrickell opened in 2008 to rave reviews but few sales due to the economic downturn. The amenities in particular won awards and accolades for their grandiose, superb quality and design. Developed by Related Group, Arquitectonica was chosen as the architecture firm and Philippe Starck handled the interior design. IconBrickell was among the first condo developments to rebound from the economic downturn in Miami. Average sale prices for the second quarter of 2015 have been reported at $583 per square foot for the three towers or $796,000 and rentals have averaged $3,150 per month for the same period.
The pool closing at Icon Brickell has been well known among residents and the real estate community for several months. As such, listings at Icon Brickell have already begun to price in the negative impact that the pool closing is expected to have.
