Market Stat Monday: Quantum on the Bay

After the positive reviews of my Miami Riverfront Market Statistics article last week and similar feedback to previous market stat posts, I’ve decided to try something new and make it a regular thing. Monday is now Market Stat Monday on the Miami Condos Blog. Each week, I’ll take a look at a different neighborhood, area, or a building. If you have a building or area that you would like to see featured, just let me know. I’m happy to do it and enjoy digging in the numbers.

One of our social media followers suggested that I take a look at what’s going on in Quantum on the Bay. I haven’t written about Quantum in awhile, so agree that it a good place to start. For those who don’t know, Quantum on the Bay was developed by Terra back in 2008. It is located across the street from Margaret Pace Park and is situated in a way that most every apartment has at least a partial bay view, but many have a big, open view of the bay. Because of the park, it used to be a very popular place for people with pets, but the condo association stopped allowing pets for tenants. Owners may have pets, but not tenants (unless you have a support animal). The building has 2 towers and 698 residences.

Despite the beautiful views and convenient location, Quantum has not been free from drama. They had to sue the developer in order to be repaid for the repair of some construction defects. They won that lawsuit and threw a party. The party was barely cleaned up before a tenant slapped the association with a lawsuit for price gouging on move-in fees. I was really wondering how long it was going to take for that to happen somewhere. Almost all of the buildings do it and the tenants always complain but nobody has gotten mad enough to actually sue over a few hundred dollars.

SALES MARKET

So, let’s see how the building is doing. There are currently 86 active sales listings in Quantum. That’s just over 12% of the building, which isn’t so bad. But with only 7 closed sales this year, that’s 43 months of inventory. On the bright side, the units that did sell received 96% of their asking price, so at least it’s not a bloodbath. There is just a lot of competition for buyers, who are more scarce.

The units that closed did so for an average of $357/square foot. The least expensive was a 1 bedroom on the 36^th floor for $250,000. In an interesting turn of events, a 3 bedroom with 1,620 square feet sold for $535,000, less than a two bedroom with a direct bay view. The two bedroom sold for $540,000 on the 27^th floor and another for $570,000 on the 39^th floor. That’s interesting to see how a direct bay view does affect the price of an apartment more so than an additional bedroom. 1,620 square feet is really an enormous apartment in this area. There are 8 contracts waiting to close.

For the buyers who are still looking, there are studios available with partial bay views starting at $220,000, a one bedroom on the 40^th floor with a partial bay view is offered starting at $257,000 and two bedrooms with partial bay views start at $380,000. Three bedrooms start at $524,000 or $350/square foot and there is a 3 bedroom penthouse available for $950,000. These prices are relatively the same as they were two years ago (when I last had an active buyer in the building). I’ll save the trends for a future post.

RENTAL MARKET

Just like at the Miami Riverfront, Quantum on the Bay’s rental market is also far healthier than the sales market. There have been 54 rentals this year so far at 98% of the asking price. The average price of a closed rental is $2.37/square foot. The individual prices were:

Studios: As low as $1,500/month.

One bedrooms: Starting at $1,675 for a 35^th floor apartment with 663 square feet and a little bit of a water view.

Two bedrooms: There was one rental at $2,250 for a two bedroom, but I have a feeling this one is an outlier. The remarks said that the property had to be taken “as-is”, so I imagine it was either filthy, needed painting or had something else wrong with it. The next least expensive unit was 2711, which rented for $2,300/month with a partial bay view.

Three bedrooms: as low as $3,100/month.

There are 38 available rentals listed, so just under 3 months of inventory for tenants. There are 18 units that have a contract signed and are waiting for move-in day.

All in all, it looks like things are picking up for Quantum. I feel like that once the association straightens up and the lawsuit over their application fees settles, the sales market will pick up also. Litigation makes things very difficult for sellers, since most banks will not finance transactions in buildings with legal drama.

We’ll see you next week with another report! Which building or area should we dig into next week?

Aria on the Bay Construction Reaches 11th Floor Pedestal, is Apparently 70% Sold

Photo courtesy Aria on the Bay.

Construction at Melo Group’s Aria on the Bay has reached the top of the building’s 11-floor pedestal, and will increase in speed to approximately one new floor a week, according to the developer. The gargantuan 648–unit building will continue at that pace for the next 48 weeks to reach its full 53 floors in height. That means in about a year the hole which Aria is filling in the row of condo towers known as the ‘Margaret Pace Park wall’ will be gone. Niente. Nein. Meanwhile the building itself is over 70% sold “with units under hard contract,” at prices averaging $550 a square foot, according to the developer. Designed by Arquitectonica, the tower is basically the nicest thing Melo has ever built. (I once called it “Melo’s least hideous tower yet.”) Top off is expected in April 2017, with completion before the end of next year.

New Dog Park Completed at Margaret Pace Park; Grand Opening Ceremony Tomorrow

I just received word that the dog park at Margaret Pace Park is finished. A grand opening ceremony will be held for it tomorrow, October 1st, at 11:30am with City of Miami Commissioner and Omni CRA Chairman Marc D. Sarnoff officially introducing the dog park to the neighborhood. The dog park encompasses a half-acre and will include two fenced in areas – one for dogs over 25 pounds and the other for smaller dogs – as well as park benches, “fire hydrants”, and water fountains for both dogs and people.  Funded by the Miami Omni Community Redevelopment Agency, the dog park was completed at a cost of $400,000. Judging by the photos, it looks like the Omni CRA did an amazing job!

Unfortunately, I will not be able to attend the grand opening ceremony due to previous engagement but look forward to checking it out very soon with my two Miniature Schnauzers. If you’re in the area tomorrow, drop by to show your support for the neighborhood. A dog park was a much needed amenity for the neighborhood; the void is finally filled!

A Look at Margaret Pace Park in the Arts District of Miami

I had some time to kill in between showing appointments Sunday afternoon so I decided to take a walk around Margaret Pace Park.  It was a warm afternoon and the park was bustling with activity.  For those of you who don’t know, Margaret Pace Park is located in Edgewater Miami along North Bayshore Drive from NE 17 Street to NE 20 Street.

A few volleyball games, tennis matches and a pick-up game of basketball took place while I was there.  People were also out walking their dogs or jogging around the path that surrounds the park.  I noticed several parents having fun with their young children at the playground as well.

1800 Club, Quantum on the Bay, Cite on the Bay and Paramount Bay are a few condo developments across the street from Margaret Pace Park. (Below, from left to right)

Here’s an aerial view of Margaret Pace Park that I took a few years ago from one of the condo buildings nearby: