ME Miami Hotel Update

Although it may not seem like it from the outside, a significant amount of progress has been made to the ME Miami Hotel at Marquis in Park West. Late last week, CGI Merchant Group – the Miami-based investment and asset management firm which owns the lower 15 floors of Marquis – sent a newsletter to residents of the luxury high-rise to update them on the current and future plans for the hotel and hotel facilities, including the pool deck, spa, and fitness center.

Below are the highlights:

• All building permits have been approved
• The pool deck will undergo a complete renovation
• The exercise facility will receive updates to design and functionality as well as updated equipment
• The Spa design will evoke an exciting and relaxing environment complete with locker rooms for men and women and will offer a variety of spa and beauty treatments
• The valet and parking services will have enhanced safety and accessibility features
• Implementation of technological advances such as the ability to enter to your room and control lighting, TVs and sound system with your own smartphone are underway to position ME Miami as the leading smart hotel in South Florida
• The design and equipment layout for the ground floor restaurant, 3rd floor kitchen and bar, and the 14th floor sky bar are complete
• The demolition activity on the east side of the Hotel is 98% complete
• The demolition of the interior of each townhouse been been completed
• Landscaping in the valet area is scheduled for the coming weeks
• All old signs referencing previous hotel have been replaced

Work Begins on Front Entrance to the Upcoming Me by Melia Hotel at Marquis Residences

Work has begun on the front entrance to what later this year will become the Me by Melia Hotel.  Yesterday afternoon, while out running errands in the neighborhood, I noticed fencing marking off the perimeter for the project.  The area located immediately in front of Marquis Residences, and running parallel to Biscayne Boulevard, will see a complete redesign, including new landscaping.  The rendering found  at the end of this post shows what the finished project will look like.  Notice the outdoor dining area and bar for the Rebel by STK restaurant.  The one thing that Downtown Miami is lacking is a selection of fine dining options.  Where others have failed, I hope to see Rebel by STK succeed.  The neighborhood will see a complete transformation in coming years, so perhaps the timing is perfect.

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.

Miami Heat Point Guard Mario Chalmers Lists 5 Bedroom Condo at Marquis Residences for $4M

Yesterday, the Los Angeles Times reported that Miami Heat point guard Mario Chalmers recently listed his 5 bedroom condo at Marquis Residences for $4M.  The combined floor plan is situated on the 49th and 50th floors of the northeast corner of the building and offers a direct view of Biscayne Bay, the Atlantic Ocean, and Miami Beach skyline.  Consisting of 5,475 interior square feet, the bi-level condo includes 5 bedrooms, 5 baths, a game room, wet bar, state-of-the-art kitchen, and 2 laundry rooms.  Also, included in the sale are 4 assigned parking spaces.

In March 2012, Chalmers purchased the luxury condo from hip-hop/rap artist Drake for $2.6M.  Drake had purchased the side-by-side units in 2011 then later combined them.

Marquis Residences is a luxury condo development located in Downtown Miami.

Change is on the Horizon for Guests and Residents of Marquis Residences

A few weeks ago, it was reported that Africa-Israel USA, the developer of Marquis, had sold the lower 15 floors of the luxury high-rise to CGI Merchant Group (CGI), a Miami-based investment and asset management firm, for $37.5M.  The sale included the Casa Moderna Hotel and Spa, Amuse Restaurant and Lounge, 5,700 square foot retail space, parking garage, and the 14 townhomes that are situated around the pool.

Above, you will find the official notice from the Marquis Condominium Association advising building residents of CGI’s acquisition.  It states:

The Miami Marquis Condominium Association and KW Property Management is proud to announce the sale of the hotel portion of the Marquis Residences. 

CGI Merchant Group, a Miami-based investment and asset management firm, has acquired the lower 15 floors of the Marquis tower including the first floor “gallery” space, parking garage, spa and 14 townhomes.

CGI is planning to transform and re-brand the hotel, joining in partnership with an internationally renowned, 5 star hotelier, soon to be announced.

Plans call for extensive renovation and upgrades to include converting the townhomes into full-floor hotel suites as well as major improvements to the pool deck and gym amenities.  Hotel renovations will include additional luxurious suites and a vibrant new restaurant and event space.

An elegant entrance to the front of the property accommodating the hotel and “gallery” space directly off Biscayne Blvd. will also be included as part of the upgrade.

The Marquis Condominium Board has worked diligently alongside CGI to support the sale while strengthening the relationship by negotiating to have a Condo Board Member represent condo owners at the master level.  This opportunity provides direct feedback from the membership while promoting transparency for all parties involved.

The Marquis Condominium Association welcomes the long overdue improvements and amenity upgrades and looks forward to a long-term partnership with the CGI Merchant Group.

More information will be announced within the next couple of weeks.  CGI is planning a “Meet and Greet” to detail the improvements and answer questions from the residents.

Regards,

Marquis Condominium Association

My guess is that one of the first questions asked by residents during CGI’s upcoming “Meet and Greet” will pertain to valet parking.  Currently, valet parking is free for resident guests.  Will the transition to new ownership mean an end to this long-time practice?  Also, how long will it take for improvements to be completed?  Sounds like the pool and gym may be closed for a long period of time.

I hate to ruin surprises, but “rumor” has it that the hotel will be operated by “Me by Meliá”, which is a luxury hotel brand of Meliá Hotels International with its roots in Spain.  I have also heard that The Darby, a popular restaurant and lounge from New York City, will open its first Miami location at Marquis.

On a side note, I was told earlier today that moving forward only owners will be permitted to have a pet at Marquis Residences.  Sorry renters, but you are out of luck…once again!

Penthouse Sale at Marquis Breaks Record on Per Square Foot Basis

Recently, a record-breaking sale took place at Marquis in Park West Miami.  Unit 6101 – a 4 bedroom, 4.5 bath bi-level penthouse encompassing 3,729 interior square feet – sold last Friday for $2,675,000, or $717 per square foot.  This made it not only the highest sale to ever take place at Marquis on a per square foot basis, but also the first sale in the building to the eclipse the $700 per square foot threshold.  The view – which is amplified by its soaring 20-foot, floor-to-ceiling glass windows – is nothing short of spectacular.  The condo, located on the southeast corner of the 61st floor, offers views of the Miami Beach skyline, Downtown Miami, Biscayne Bay and the Atlantic Ocean.

The penthouse was priced extremely well.  I know firsthand that there was a high level of interest from buyers.  The unit lasted not even two weeks on the market before going under contract and ended up selling $175,000 above asking price.

The unit was purchased decorator-ready directly from the developer in March 2011 for $1,730,000, or $464 per square foot.

It is important to note that this penthouse is not one of the penthouses that includes a rooftop pool.  As you may recall, one of those penthouses sold decorator-ready in June 2010 for $4.2M, or $525 per square foot.  That was the mammoth penthouse at Marquis with 8,000 interior square feet across four levels.  In case you’re wondering, that is the largest penthouse currently in existence in Downtown Miami.  That record will be shattered once THE PENTHOUSE at One Thousand Museum is completed.  That penthouse will have a mind-blowing 15,000 interior square feet.

Marquis condos for sale
Marquis condos for rent

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.

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.

Impeccably Decorated 3 Bedroom Condo For Sale at Marquis Residences

A few weeks ago, I had the pleasure of viewing one of the most impeccably decorated condos for sale at Marquis Residences.  The custom designed unit was absolutely stunning.  The 3 bedroom/3.5 bath condo has 2,393 interior square feet, 10-foot ceilings and comes fully furnished as you see in the pictures below.  A private elevator opens to the 22nd floor residence which includes 2 master suites, 17×43 porcelain tiled floors, a laundry room, 3D LCD TVs, custom bar, Euro kitchen, security system with cameras, linear diffusers and covered ceilings with fiber-optic lighting.  A Crestron system is also included to control the audio/video, lighting, air conditioning and window treatments.  To top it all off the Park West Miami condo offers spectacular, 180-degree views of Biscayne Bay.  Asking price of this remarkably beautiful property is $1,695,000.