As mentioned in my last blog post, I think real estate values in Downtown Miami, for a number of exciting reasons, are ready to take off. Museum Park is about a year from being completed, Miami Worldcenter seems an almost certainty, and a proposal for a 1000-foot observation tower called Skyrise Miami was recently submitted to the city of Miami for approval. Also, with prices starting at $4M, the addition of One Thousand Museum will only help position the area as Miami’s equivalent to New York City’s Park Avenue. If there were ever a time to be excited about the prospects for Downtown Miami, the time is now.
So how does one take advantage of all this fabulous news? Well, surprisingly, there are still a number of great deals to be had in the existing condo market in Downtown Miami. Due to the illiquid nature of real estate, market news oftentimes get disseminated at an almost snail-like pace and, as a result, does not manifest itself in pricing for quite some time. The same, however, does not hold true for the pre-construction real estate market. Prices there are set by developers who take into account any and all information that will have a positive effect on neighborhood values from now until completion of the project. In that regard, it is sort of like buying commodities futures with the price determined by future expectations and the likelihood of those expectations being met. The hope for contract holders is that market values present at the time of delivery will be at or above their contract price. That is why one will notice a sizable gap between the price per square foot for existing condos and the price per square foot for pre-construction condos . In other words, the promise of what is yet to come has already been taken into consideration when determining the contract price.
My point is that the existing condo market is slow to act. As a result, there are definitely still good deals to be had. Below, you will find a list of five condos currently available for sale in Downtown Miami that I believe are undervalued and well positioned to take advantage of the positive news that is now shaping the neighborhood.
Before I start, I want to first say that none of the properties listed below are my exclusive listings. These were chosen unbiasedly by me because I truly feel that they warrant inclusion.
Marquis 3707 – This is a bi-level, 2 bedroom+den/3 bath corner unit with 2,081 interior square feet and 20-foot, floor-to-ceiling glass windows. The unit is located on the northeast corner of the 37th floor offering beautiful views of Biscayne Bay and the Atlantic Ocean. It also overlooks Museum Park which is currently under construction. The only drawback to this unit, and likely the reason why it hasn’t sold yet, is the fact the landlord is getting very low rent until October 2014. The tenant was able to negotiate a great deal in exchange for paying the entire lease upfront. A triumph for the tenant but an ill-advised move by the landlord because, from an investment standpoint, low rent has an adverse effect on a property’s value. If a buyer can stomach the low rate of return until October, there is an opportunity here to buy at a great price the only bi-level, 2 bedroom corner unit currently offered for sale at Marquis Residences. Asking price is $1,250,000, or $601 per square foot.
Marina Blue 5205 – This unit likely won’t win any Best in Show Awards but it has incredible potential. If one can look past the traditional, almost anti-Miami decor, I’m sure one will find incredible value here. This is one of the largest 2 bedroom floor plans at Marina Blue, a rare combination unit found only on floors 52-56. It is a 2 bedroom/2.5 bath condo with 1,660 interior square feet and 10-foot, floor-to-ceiling glass windows. The unit faces east-southeast and enjoys a panoramic view of the Atlantic Ocean, Biscayne Bay and Downtown Miami skyline. Asking price is $725,000, or $437 per square foot, which, in my opinion, is low considering the fact that it is a prime floor plan located on a very high floor. Given a few recent comps, and the fact that the listing has grown stale after sitting the market for 600 days, there should still be room to negotiate on the price.
Marina Blue 1603 – This might be your last opportunity to own a 1 bedroom + den at Marina Blue for under $370,000. This is an approved short sale priced at $355,000, or $376 per square foot; an incredible value no matter how you slice it. Every unit at Marina Blue has a direct water view and this unit, located on the 16th floor, is no exception. In fact, it not only offers a view of Biscayne Bay but also the Downtown Miami skyline.
Ten Museum Park 3101 – Unfortunately, the listing agent hasn’t uploaded any pictures of this unit onto the MLS. I’ve seen it in person though and it’s a beauty! The bi-level, 2 bedroom/2.5 bath corner unit sports 20-foot, floor-to-ceiling glass windows, offering an amazing view of the water and a front row seat to all the action down below at the upcoming Museum Park. The unit is impeccably designed and exudes the sexy, clean look for which Miami is known. Asking price on this 1,802 square foot loft is $1,150,000, or $638 per square foot.
900 Biscayne Bay 5302 – While there are cheaper 02 and 09 lines available for sale in the building, this one is located on the 53rd floor and comes completely furnished. Equally important, the unit has always been owner-occupied, and it shows. The condo is tastefully decorated and offers not only direct bay and ocean views but also sunrise and sunset views from this 53rd floor flow-through unit. In my opinion, these flow-through units, which are relatively rare in Downtown Miami, will become extremely valuable once Miami Worldcenter gets built. Not only will owners get to enjoy the amazing water views to the east, but they will also be able to check out the action down below at MWC to the west. It would be like overlooking Time Square in New York City. The price was reduced $115,000 yesterday and is now asking $975,000, or $619 per square foot. Also, the listing states that the owner is motivated. This could be a good time to snag an amazing unit at an excellent price.
If you or someone you know has an interest in learning more about any of the above properties, or would like to view any in person, please contact me via email at [email protected] or by phone at 786-247-6332.
Updated Video and Brochure for One Thousand Museum
For those of you who have not had a chance to check out the latest promo video for One Thousand Museum, go check it out now. It is pretty spectacular. I believe the video has been around since last month but it wasn’t until earlier this week that I actually sat down and watched it in its entirety. The video not only does an outstanding job of showcasing the amazing design of the building and jaw-dropping views, it also highlights the promise of what is to come for Miami – more specifically, for Downtown Miami. It is this promise, and the excitement that surrounds it, that will inevitably propel real estate values in Miami past those last seen at height of the market in early 2007. With Museum Park set for completion in 2015, the ever-impending formal announcement of Miami Worldcenter, and the recently proposed Skyrise Miami, there is a lot to be excited about in Downtown Miami.
Fully Furnished 2 Bedroom + Den with 16-foot Ceilings at Icon Brickell II – $5,400/mo
Within the next month, a client of mine will be closing on a 2 bedroom + den at Icon Brickell Tower 2. The unit is very unique because it features soaring 16-foot ceilings from the 41st floor. This is the highest floor in the building that has high ceilings. The unit also includes motorized shades in both bedrooms, three crystal chandeliers, TUI furniture package and a state-of-the-art electronics package. Electronics package includes: Blu-ray 3D player, 3D TV and 3D surround sound system. Wake up each morning to a breathtaking view of Biscayne Bay from the 41st floor. 1 assigned parking space. Rent includes basic cable TV, Internet & water. Asking price is $5,400 per month. If you have an interest please contact me at 786-247-6332.
4 Bedroom Condo at The Setai South Beach Hits the Market for $25M
A combined five-unit condo at The Setai South Beach hit the market earlier today for $25M. The 33rd floor residence spans approximately 5,400 interior square feet and includes four bedrooms, four full baths, two half baths, a formal living room, casual dining room, spa and entertainment lounge area. The unit also comes with five valet parking spaces.
Foster + Partners Releases Video of Faena House and the Faena District in Miami Beach
Earlier this week, Foster + Partners released additional renderings of Faena House. They have now released a fly-through video (see below) which showcases Faena House and the Faena District in Miami Beach. The 18-story, ultra-luxury development is truly stunning. Faena House is scheduled for completion in fall of 2014. 50% of its condos are already under contract.
The developer, Alan Faena, is asking $50M for the penthouse pictured above. Without a doubt, once completed, the penthouse will be one of the most highly acclaimed pieces of property in South Florida. It will have 8,273 interior square feet and approximately 10,000 square feet of terrace space which will accommodate an outdoor kitchen, cabana and 30-foot-long infinity-edge pool.
Preconstruction Sales for 600 and 700 Biscayne Blvd to Launch Soon?
While driving through Downtown Miami earlier this week, I noticed a number of signs at each corner of the sites for 600 and 700 Biscayne Boulevard. The signs say “Another Luxury Development by Chateau Group”. A telephone number is also included. Despite a number of calls, however, I have yet to obtain any additional information. Just assurances that a sales person would contact me soon. The lots are located immediately south of Marina Blue and just north of the Freedom Tower. I have heard rumors for months that pricing will range from $600-$800 per square foot for non-penthouse units at each of the two developments but I’m sure at this point not even the developer knows for certain. It will be an interesting addition to the array of preconstruction condo developments that have been announced for Miami within the past year. With the exception of One Thousand Museum, no other luxury condo developments have been announced for Downtown Miami. The vast majority of them are located in Brickell or Edgewater.
Update: I just saw the exact same Chateau Group sign at the entrance of Gulfstream Park in Hallandale Beach. There’s a a large lot at the intersection of NE 10 Ave and Hallendale Beach Blvd. Is Chateau Group planning to build a luxury condominium development at that location as well?
Pharrell Williams’ Miami Penthouse Marked Down $5.9M
It appears that the market for Miami penthouse condos is not all sunshine and rainbows. Despite a red hot Miami luxury real estate market which has seen an array of record-breaking penthouse sales during the first half of this year (See Exhibit A, Exhibit B, Exhibit C and Exhibit D), the Bristol Tower penthouse currently owned by hip-hop sensation, Pharrell Williams, has seen its price slashed $5.9M since hitting the market this past November. Initially set at $16.8M, the tri-level mansion-in-the-sky was recently marked down to $10.9M – a whopping 35 percent price reduction!
Formerly the residence of Bristol Tower developer, Ugo Colombo, the 5 bedroom, 6.5 bath penthouse features 9,080 interior square feet, private elevator entry, grand living spaces with impressive floor-to-ceiling glass walls, a 180-degree wrap-around balcony, 7 assigned parking spaces and rooftop terraces with summer kitchen, pool and Jacuzzi. The one-of-a-kind penthouse also sports a sensational view! It offers sweeping 360-degree views of Biscayne Bay, the Atlantic Ocean and sparkling city lights at night along with the opportunity to enjoy both the sunrise and sunset each day.
According to property records, Mr. Williams acquired the penthouse in March 2007 for $12,525,000.
Miami Ranks Third on Knight Frank’s Q1 2013 Prime Global Cities Index
It is no secret that the Miami luxury real estate market has performed remarkably over the past twelve months. The latest report from Knight Frank confirms this. The Miami luxury real estate market ranked third behind Jakarta and Bangkok on Knight Frank’s Q1 2013 Prime Global Cities Index. Year-over-year, eight cities recorded double digit price growth for luxury homes but Jakarta, Bangkok and Miami led the way, recording annual price growth of 38.1%, 26.1% and 21.1% respectively. Surprisingly, prices for prime property in New York City declined 7.1% in the same time period, according to the same report.
The Future of Real Estate Marketing
In an earlier blog post, I had mentioned that several big changes with my real estate business had taken place over the past couple of months. Well, one of those big changes was transferring my real estate license to a new broker. I now have my real estate license hung with Luxe Living Realty. While many may have never heard the name, those who keep close tabs on the Miami luxury real estate market, and its practitioners, likely will have heard of Dora Puig. She has over 23 years of experience in selling high-end, luxury real estate and, over the past couple of years, has grabbed huge market share from her competitors (ie. other local brokers and agents specializing in Miami luxury real estate). She is the same Dora Puig who sold a penthouse at Icon South Beach last December for $21M. At this time, Dora personally has over $140M worth of real estate listings, including the $39M penthouse listing at Continuum South Beach South Tower, the $18.5M penthouse listing at Ocean House and, recently, a $14.5M combination residence at Continuum South Beach North Tower with just under 5,000 interior square feet. Dora has beat out competitors when interviewing for big listings such as these by continually thinking outside the box and coming up with innovative yet glamorous ways to market her luxury real estate listings. It was a no-brainer for me when presented with the opportunity to work under her new brokerage and learn from one of the best in the industry.
Just a few weeks ago, Dora was one of three finalists for the “Most Innovative Method of Marketing Award – Real Estate Agent” presented by the Miami Beach Chamber of Commerce. Her nomination came as a direct result of her social media efforts over the preceding year. In my opinion, when it comes to social media, no one in the local real estate market does it better than Dora Puig. The level of engagement she has with her followers on various social media platforms is quite impressive. These outlets have allowed her to stay connected with past and current clients by keeping them informed of any news affecting the local real estate market. Social media has also allowed her to expand her network and earn new followers who at times later convert into business. In a world where a friend’s referral or public “Like” can mean all the difference, the importance of social media can no longer be ignored.
Unfortunately, Dora did not take home the crown last month for the “Most Innovative Method of Marketing Award – Real Estate Agent”. She did not sulk about it though. Instead, Dora began to question “Is there a better way of doing things?” – not for the sake of winning an award but for the sake of effectively marketing her listings and, therefore, providing an even higher level of service to sellers. I have always been a proponent for using video to market real estate. I suggested that she give it a try. Being open minded and innovative as she is, Dora jumped on it. I wanted her to do real video though. Picture slideshow videos would no longer cut it for these types of listings. Her $10M+ listings deserve true-to-life, HD-quality video tours – something akin to what you would see on Million Dollar Listing. Her video crew delivered in spades. The video below is a guided video tour of her $14.5M combination residence listing at Continuum South Beach North Tower (50 South Pointe Drive #3301-03, Miami Beach, FL 33139). I don’t know of a single other real estate agent in Miami who is doing video quite this way.
There is no doubt in my mind that this is the future of real estate marketing – especially for a market like Miami where the impact of the foreign buyer is so obvious. No one is saying that these luxury real estate videos will entice foreign buyers into purchasing a $10M+ property sight-unseen. However, I am certain that these types of videos stand a far better chance of convincing a potential buyer into booking an airline ticket to Miami to take a look in person than pictures do alone. Take a look for yourself and see what you think. I would love to hear your comments.
