Just Listed – Turnkey Furnished 2 Bedroom Condo Featuring Awe-inspiring Views – Asking $825,000

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].

Marina Blue Unit 5602 listing

Marina Blue condos website

Circuit Layout for Formula E Miami ePrix

Earlier today, Mayor of Miami Tomas Regalado formally announced that Miami will host “the first electric single-seater race in America”.  The Miami ePrix will take place in Downtown Miami on an eight turn, 1.35-mile circuit down Biscayne Boulevard and looping the American Airlines Arena, home to the Miami Heat.  The course will also run along the newly opened Museum Park, offering plenty of space for spectators to watch the race from street-level, as well as in front of Downtown Miami condo high-rises Marinablue, 900 Biscayne Bay, Ten Museum Park, and Marquis Residences.  The race is set for March 14, 2015.

Top Five Condo Deals in Downtown Miami

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.

5. 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.
   
4. 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.
3. 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.
2. 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.
1. 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.

2013 Mercedes Benz SL550 & More Included in the Sale of a 56th Floor 2 Bedroom Condo at Marina Blue

Owning a fab condo in Downtown Miami overlooking the bay and ocean just doesn’t cut it anymore in this city.  These days, you also need a luxe car to go along with it.  Or, at least according to some, that’s the reputation that Miami has earned for itself over the years.  Well, if there’s any truth to it, and you’re worried about making the cut, then unit 5602 at Marina Blue might be right up your alley.  The seller needs to move back to Europe quickly and is looking to sell everything including his furniture, artwork and panty-dropping 2013 Mercedes Benz SL550 (pictured above).  The vehicle has only 1,800 miles and comes fully loaded with every upgrade and option available.

The beautifully appointed 2 bedroom, 2.5 bath condo at Marina Blue is located on the 56th floor, just one floor below the penthouse.  It offers an incredible view of Biscayne Bay, the Atlantic Ocean and the Downtown Miami skyline.  The floor plan, which contains 1,331 interior square feet along with an unusually large balcony spanning the entire width of the unit, is unique with only five of its kind existing in the building.  The condo features hard wood floors, motorized shades, a state-of-the-art electronics package, accent lighting and artwork by acclaimed artists.  For example, the art piece hanging in the second bedroom, which is covered with six layers of Swarovki diamonds, is by Kfir Moyal.

In the interest of selling everything quickly as a package deal, the owner is asking $887,000.  Quite a deal considering all that is included.  Contact me if you or someone you know has an interest.  You may reach me on my cell at 786-247-6332 or via email at [email protected].

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?

Marina Blue Market Update – 2011 to Present

Below is a market update that I emailed to Marina Blue condo owners late last week.  While not everyone reading this will have an interest in Marina Blue, I think a similar upswing in prices and lack of inventory as described below holds true for most major condo developments throughout Greater Downtown Miami.

If you haven’t heard, the real estate market in Miami is once again heating up and prices for condos at Marina Blue are following suit. Demand is high and inventory is low, paving the way for a strong 2013. Just how strong you might ask? I decided to crunch some numbers to help answer that question.

The left-hand side of the chart below graphically illustrates various statistics regarding asking prices in 2011 (blue), 2012 (red) and 2013 (green). There haven’t been any closed sales thus far this year so the right-hand side of the chart illustrates only sales that took place in 2011 (blue) and 2012 (red). It should be noted, however, that currently there are 4 pending sales at Marina Blue.

In 2011, there were a total of 33 closed transactions which sold at an average price of $324,806, or $299 per square foot. In 2012, the number of closed sales increased 73% to 57 and sold at an average price of $378,495, or $329 per square foot. Due to outlying sales that skew the averages, the median sales price can sometimes provide a better sense for the overall market but that is not the case with this data set. The average and median figures for each year are relatively in line with each other. The average sales price increased 16.5% from 2011 to 2012 while the average price per square foot increased only 10%. This indicates that a greater percentage of larger units sold in 2012 than in 2011.

That brings us to the present day. As of January 14, 2013, there were 29 condos available for sale at Marina Blue. These units ranged in price from $355,000 to $2.8M. The average list price is skewed dramatically, however, due to one listing that is way off base. In this case, the median list price of $515,000 provides better insight into the overall market than the average list price of $698,793.

The chart below follows the same format as the chart above but breaks everything down on a price per square foot basis.

When comparing current availability with closed sales in 2012, it should be immediately clear that current asking prices are very high relative to where condos have sold in 2012. The median sales price per square foot in 2012 was $326 while the median asking price per square foot is currently $452. That is a huge gap but presents a big opportunity for someone who is looking to sell fairly quickly at an above average market price. To be clear, I feel that the average unit will now get $370-$380 per square foot. That is a very healthy premium when comparing it to the median sales price per square foot in 2012. Obviously, units on high floors with above average build-outs should fetch even more.

As inventory dwindles, I have noticed that more and more condo owners throughout Miami are starting to raise their asking prices.  For example, of the 62 units currently available for sale at 900 Biscayne Bay, 13 of the owners have decided to increase their offering price since initially hitting the market.  At Ten Museum Park, 6 of the available 22 units are now offered at a higher price than was available just months ago.  A similar trend can be seen at plenty of other major condo developments throughout Miami as well.  Sellers are taking advantage of the low inventory and are adjusting their offering prices accordingly. 

One Thousand Museum’s Likely Impact on the Neighborhood

Last month, it was announced that world-renowned architect Zaha Hadid has been appointed to design a luxury skyscraper in a neighborhood of Downtown Miami know as Park West.  The residential high-rise, known as One Thousand Museum, will be developed by Gregg Covin, the developer behind Ten Museum Park, and Louis Birdman.  The planned project will be erected in what is the current location of a BP gas station which neighbors Ten Museum Park at the intersection of Biscayne Boulevard and Northeast 10 Street.  Sales information is expected to be released during the first half of 2013.

There always seems to be a sense of excitement surrounding the announcement of a new development in Miami and the news of 1000 Biscayne Tower was no different.  Not everyone, however, shares the same sentiment.   Residents in the immediate area are not always thrilled about the inevitable noise, traffic congestion and their views potentially becoming obstructed due to the new construction.  Taken yesterday evening, the picture above shows not only the site of the BP gas station but also its neighboring condo developments – 900 Biscayne Bay to the south and Ten Museum Park to the north.  Due to their proximity, it should be clearly discernible that views in each high-rise from units closest to 1000 Biscayne Tower will be significantly affected.  To be exact, there are three lines in each development which will have their views hindered: the 08, 10 and 12 lines at 900 Biscayne Bay and the 01, 07 and 08 lines at Ten Museum Park. The following site plans illustrate where these lines reside on each building.

Below is my assessment on how the view of each of these lines will be affected:

900 Biscayne Bay

• 08 line – Earlier this morning, I showed an 08 line at 900 Biscayne Bay and made sure to make a mental note of what the view looked like from the living room.  In this floor plan, the master bedroom is to the left of the living room and the second bedroom is to the right, with all three rooms facing in the same direction.  Of the three lines at 900 Biscayne Bay that will be affected by the erection of 1100 Biscayne Tower, the 08 line will be affected the least.  Notice the setback that Ten Museum Park has from the sidewalk.  1000 Biscayne Tower will have a similar setback and, therefore, the water view from the 08 line will, for the most part, not be obstructed.  Having a massive building directly in your line of view is definitely less than optimal but at least these residents won’t have their water view compromised.
• 12 line – At first glance, it might appear that the 12 line will have their views most adversely affected due to it being the furthest line away from the street but that’s not the case.  There’s no doubt that its water view will be most compromised of the three lines but one must remember that this uniquely situated floor plan also has views to the south and west.  The west view at night is stunning and the development of 1000 Biscayne Tower will in no way take anything away from that.  These residents will still be able to enjoy a view of the sunset from within their unit and should still be able to enjoy a view of the sunrise from their balcony.
• 10 line – In my opinion, residents who live in a 10 line at 900 Biscayne Bay have the most to lose in regards to their view being obstructed if a high-rise is indeed constructed on the current site of the BP gas station.  The 10 line is boxed in on either side by the 08 and 12 lines and will look directly into the southern end of 1000 Biscayne Tower.  Their water view will likely go from unimpressive to highly obstructed in a jiffy.  Any semblance of a view that might remain will be further compromised by the almost certain development of the Miami Herald site in the future.

Ten Museum Park

The impact such a development will have on the views of the units located on the southern end of Ten Museum Park is much easier to assess.  The footprint of the building is perfectly symmetrical and, therefore, the units located on the northern end which look into Marquis Residences serve as a perfect example for what views will look like from the 01, 07 and 08 lines in the future if a development is constructed at the site in question.

• 01 line – This line offers a direct water view and the water view will in no way be affected by the development of 1000 Biscayne Tower.  Privacy from the living room might be a concern but it’s nothing that solar shades or long curtains can’t fix.  Besides, privacy at this end of the building hasn’t been expected since 900 Biscayne Bay began closings in 2008.  Take a tour of an 04 line to get a sense for what it will feel like to have a building so close.
• 07 line – Like the 12 line at 900 Biscayne Bay, this line offers a view to the south and west.  Its southern view will be compromised but its view to the west will be unaffected.  Your view of the water will be slight at best.  Take a tour of an 06 line to see what I mean.
• 08 line – The view from the 08 line will be obstructed the most by the development of 1000 Biscayne Tower.  Residents will look right smack into the northern end of the planned high-rise.  The 05 line will give you an uncanny feel for what life will be like having a view of the side of a building.

Within the past five years, Park West, the neighborhood name given to the area immediately west of the upcoming Museum Park, has undergone a transformation that has been nothing short of amazing.  One could argue that the addition of 1000 Biscayne Tower, as well as the oft-mentioned 700 Biscayne Bay which will be located just south of Marina Blue, is just another step in the progression of Downtown Miami.  Such additions should no doubt strengthen Park West’s positioning as one of Miami’s most luxurious neighborhoods.  I wrote about this inevitable progression in a blog post back in July 2007.  In it, I referred to the neighborhood’s development as Miami’s equivalent to Manhattan’s Park Avenue.  There’s no question that Park West has not yet arrived at its potential but there is little doubt that it is well on its way.  While short term demand for condos in the lines mentioned above will likely wane due to having to deal with construction noise outside your window as well as the loss of views and privacy,  it is difficult to jump ship from a neighborhood that is heading in the right direction with lots of upside potential.  Across the street, the $220M Miami Art Museum at Museum Park is scheduled to open later this year with the Miami Science Museum following about a year later.  Additionally, there has been a lot of talk as of late regarding Miami Worldcenter indicating that the mega-development may not be a pipe dream after all.  If Miami Worldcenter is formerly announced and becomes an actuality then, mark my words, Park West will become the most highly sought after neighborhood in Miami.  You can take that to the bank!

The Lebron Effect on Downtown Miami Real Estate Prices

It has been a long and winding road but the Miami Heat accomplished Thursday night what they had set out to do in July 2010 – to win an NBA championship.  The Miami Heat defeated the Oklahoma City Thunder 4-1 in the NBA Finals to become the 2012 NBA champions.  In all honestly, the Miami Heat obliterated the OKC Thunder and made a mockery of them – but we won’t go there.  Few would refute that LeBron James, the Most Valuable Player of the 2011-2012 season, was the most contributing factor which allowed the Miami Heat to raise the NBA trophy Thursday night for only the second time in franchise history.  LeBron James’ decision in July 2010 to take his talents to South Beach single-handedly changed the landscape of the league and set forth in motion an inevitability that no one outside of Miami wanted to see.

James’ arrival in the summer of 2010 was celebrated not only by die-hard Heat fans but also anyone with any type of business or property interest in the city. His announcement was seen as a godsend to the hotel and tourism, restaurant and real estate industries throughout Miami.  The area most positively impacted by LeBron James’ decision to join the Heat was most certainly Downtown Miami, the neighborhood immediately surrounding the Miami Heat arena.  Prior to James’ arrival, property values in Downtown Miami had endured several years of double digit price declines.  Furthermore, retail spaces and hundreds of condominiums within walking distance of the arena sat completely empty.  However, that was all about to change.

Within days of James’ announcement, there were reports of buyers snatching up condos in the area in a flurry of excitement.  As a result, developer inventory began to dwindle and Miami real estate prices started to recover over the subsequent months.  Since LeBron James’ decision in 2010, real estate values in Downtown Miami have increased over 20 percent.  Additionally, across the street from the arena, several new businesses – such as a pizza restaurant, wine bar, Chinese restaurant and sports bar – have opened their doors.  One could argue that James’ arrival played an instrumental role in the real estate recovery seen in Downtown Miami in recent years.

Investment Group Sells Last of 60 Units at Marina Blue

As you might recall, an investment group operating under the name Welcome Bay LLC paid $13M, or $200 per square foot, for 60 units at Marina Blue in a bulk-sale acquisition on December 24, 2008.  It ended up being the second largest bulk sale that took place that year in Greater Downtown Miami. Up until last year, the investment group still maintained control of all 60 units.

In early 2011, after failing to solicit a suitable offer for the 60 units in a package deal, the investment group decided to sell each unit individually in hopes to arrive at an average sales price of around $310 per square foot.  They did just that. The last of their 60 units at Marina Blue sold last month.  The investment group did not allow any financing contingencies in their sales contracts and required the buyers to pay the seller’s closing costs.  The units, which already had tenants in place, were well suited for individual investors with “rental-grade” build-outs.  Each of the units had either carpeting or laminate wood flooring throughout, vertical blinds and no built-in closets.

Now that the last of the 60 units has sold, the good deals at Marina Blue are relatively scarce.  There are currently 24 units available for sale at Marina Blue on the MLS.  The average asking price of the 24 units is $443 per square foot.  That is quite a far cry from the $310 per square foot that the 60 units fetched.  Nonetheless, there are still a few units available for sale that buyers should have their eyes on:

• Unit 1603 – 1 bed + den/1.5 bath – $285,000 ($302 per square foot) – this is a short sale
• Unit 2103 – 1 bedroom + den/1.5 bath – $320,000 ($339 per square foot) – REO
• Unit 2310 – 1 bed/1.5 bath – $298,000 ($353 per square foot) – regular sale

Downtown Miami Rental Market

Below, is a spreadsheet I compiled earlier this afternoon that shows various statistics regarding the Downtown Miami condos rental market.  Click on the link below the spreadsheet to view it in its entirety.  I calculated the months of inventory figure by dividing total units available by the average units rented over a three month period from December 1, 2010 to February 28, 2011.  You will see that Downtown Miami currently has 2.55 months of rental inventory.

Downtown Miami Rental Market as of March 15, 2011