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 Miamis 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 andor rent their units
Lets 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 developments 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 $4000 per month That unit unit 2102 ultimately ended up renting for $2700 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 $2500 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 $2500 per month And the 2 bedroom + den units at IconBay havent fared much better They have rented for as low as $3000 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 IconBays total number of units Post closing just 4 units have exchanged hands
Unit 2401 a 2 bed + den2 bath condo with 1435 interior square feet sold decorator ready for $810000 on October 1st $564 per square foot
Unit 2601 a 2 bed + den2 bath condo with 1435 interior square feet sold decorator ready for $800000 on October 16th $557 per square foot
Unit 2901 a 2 bed + den2 bath condo with 1435 interior square feet sold decorator ready for $810000 on October 27th $564 per square foot
Unit 307 a 2 bed + den2 bath condo with 1003 interior square feet sold decorator ready for $540000 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 $780000 $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 $20000 to $30000 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 arent 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 1173 to 1208 interior square feet Another common complaint I hear is the neighborhood People argue that its just not there yet at least not at current asking prices Edgewater is a work in progress Its 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 andor Icon Brickell visit IconBay with very high expectations only to walk away sorely disappointed Its like the first time you watched the movie Terminator 3 Rise of the Machines You couldnt 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 youre looking For Related Group without a doubt it was an overwhelming success For investors not so much In my opinion its not surprising that all 300 units at IconBay closed With 50 percent deposits on the line contract holders werent left with much of a choice To me walking away from such hefty deposit money doesnt 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 doesnt seem to be the case at all Take for example unit 2401 which as mentioned earlier closed for $810000 on October 1st After taking into account the developers fee commission on the resale and closing costs on both ends that preconstruction buyer by my estimation likely broke even And thats 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 lets not forget about unit 3101 another unit I mentioned earlier in this post its currently asking $780000 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
Starchitect Renzo Piano To Introduce Eighty Seven Park In Miami Beach
Miami Beach is getting another starchitect-designed condo building, this time by Pritzker Prize winning Renzo Piano. Eighty Seven Park will be the first project in South Florida to be designed by the famed architect and is located at 87th and Collins on the last piece of land north of North Shore Park at the limit of the city of Miami Beach. The 18-story glass tower will feature oblong floors and wraparound balconies with ocean views. In total, the building will offer 68 residences varying in size from 1,400 to 7,000 square feet.
“The idea behind the site is to enhance the presence of the green spaces in the park by extending trees to the northern limit of the city of Miami Beach,” said a statement from Renzo Piano Building Workshop. The building will be surrounded by a reflection pool and private gardens. Between the residences and the beach will be two swimming pools surrounded by sundecks and a walking path to the shoreline.
Interiors are being designed by Rena Dumas Architecture Interieure from Paris and will feature American oak and Italian stone fittings with orchids, Bonsai trees and cacti. An in-house botanist will maintain the year-round floral display, extending the serene natural feeling from the gardens indoors.
Renzo Piano will join Rem Koolhaas, Zaha Hadid, and Bjarke Ingels with their starchitect-designed projects over the upcoming years. In addition to being the first project for Mr. Piano in South Florida, Eighty Seven Park will also be his first residential building in the United States. Previously, the firm has completed the 95 story Shard, the tallest building in the European Union that is often referred to as London Bridge Tower as well as the 52 story New York Times Building in Midtown Manhattan.
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.
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 [email protected].
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.
Welcome to excellence! Designed with precision, Marina Blue unit 5602 is an impeccable residence offering some of the very best, awe-inspiring views of the Atlantic Ocean, Biscayne Bay, Port of Miami, and Downtown Miami skyline. Over $250,000 in upgrades, furniture, lighting, electronics, and artwork. Located on the 56th floor, unit 5602 features hard wood floors; motorized shades; blackout curtains; custom lighting; artwork by acclaimed artists; large, custom-built walk-in closets in both bedrooms; and a state-of-the-art electronics package, which includes a 3D TV, Blu-Ray 3D player, Bose surround sound system, and security camera system with remote viewing capability.
Very unique floor plan. Only 5 of its kind in the entire building. One of just a few units in all of Downtown Miami offering a direct water view and balcony access from BOTH bedrooms. In almost every other case, the view from the second bedroom faces west (away from the water) and/or does not have balcony access. The same can be said for most 3 bedroom units throughout Downtown Miami. Having an amazing water view is one of, if not, the biggest reasons to buy a condo in Miami, so why not buy a condo which would afford you the opportunity to enjoy the breathtaking views from EVERY room?
If you’re in search for the very best, look no further! Contact Lucas Lechuga for showings. I can be reached on my cell phone at 786-247-6332 or via email at [email protected].
SLS Brickell Hotel & Residences Construction Update [PHOTOS]
Earlier today, I showed a client a number of east-facing units at Infinity at Brickell. This gave me the perfect opportunity to check in on the progress being made to SLS Brickell Hotel & Residences. As of today, construction had reached approximately the 27th floor. I must admit, when SLS Brickell was initially announced, I thought the views from the east-facing units at Infinity at Brickell would be completely destroyed. To my surprise, although the two buildings butt up against one another, there’s actually a lot of room separating the actual residences. Basically, the two developments are separated by their respective pool decks. Although views directly to the east will be blocked from Infinity at Brickell, the space between the two buildings allows for residents to enjoy the views to the north and south. Besides, let’s not kid ourselves, the view of the SLS Brickell pool deck is going to be breathtaking in its own right.
Just Listed – 3 Bedroom Penthouse at Trump Palace in Sunny Isles Beach – Asking $2,350,000
It is with great pleasure that I present my newest listing – an immaculate 3 bedroom penthouse at Trump Palace in Sunny Isles Beach. This one is a beauty and is priced to sell quickly!
The impeccably designed penthouse offers sweeping, unobstructed views of the Atlantic Ocean, Intracoastal waterway, and Downtown Miami skyline, along with picturesque views of the sunset from 12-foot high floor-to-ceiling windows. The recently renovated 3 bedroom, 3.5 bath condo has 2,435 interior square feet with balcony access off the master bedroom, second bedroom, living room, and kitchen. Over $500,000 spent in renovations and upgrades. Features include: 36×36 white porcelain flooring throughout; custom LED lighting; electric shades; built-in closets; and custom kitchen with white Quartz countertops, matching cabinets from Spain, stone backsplash, and high-end, stainless steel appliances by Sub-Zero, Bosch, and Gaggenau. Unit includes valet parking for unlimited cars. Asking $2.35M, or $965 per square foot. Furniture not included but negotiable.
Trump Palace is a 55-story, luxury, oceanfront condo development located at 18101 Collins Avenue in Sunny Isles Beach. Amenities include: 24-hour, full-service concierge; state-of-the-art-fitness center with views of the Atlantic Ocean and coastline; men’s and women’s spa with sauna, steam room, and hot tub; 24-hour valet parking for residents and guests; private beach access; private pool and hot tub; tennis courts; and use of all amenities at neighboring Trump International Beach Resort.
The photos here speak for themselves. For showings, please contact me on my cell phone at 786-247-6332 or via email at [email protected].
Below is a video tour of the unit as the sun is setting:
