After a few weeks in the Miami Riverfront and Edgewater areas, we’re going to jump back to Brickell for this week’s Market Stat Monday and look into Brickell on the River’s North tower. For the Brickell newbies out there, Brickell on the River was built in 2006 and has 2 towers that share an amenity deck and parking garage, but aside from that are very much different.
The north tower was the first to be built. It has 42 stories and a contemporary feel. The lobby is marble with wooden accents and the condos are all flat, with sizes varying from 1 bedrooms up to 3 bedrooms. The condo association has recently completed a face-lift to the hallways and lobby. I have always viewed this tower as a great option for both end users and investors alike since it has such a great mix of qualities that are attractive to most anyone. Once the north tower was complete, work began on the south tower, that was completed in 2007. The south tower has 46 floors and features a more modern design with duplex lofts rather than the flat apartments with separated bedrooms.
One of the big selling features of Brickell on the River lately has been the fact that it is the only building in Brickell that is approved for FHA financing. Sadly, I have to announce that this approval has expired, but conventional financing is still available.
Even without the FHA approval, the north tower hasn’t been performing to badly lately. There have been 5 closed sales this year with an average price per square foot of $350. One thing that is interesting is the fact that of the 5 recent closings, two have been REO deals (foreclosures). Unit 2503 is a 1 bedroom that closed for a paltry $239,925, which worked out to $309/square foot. Before you go crazy about this ridiculously low-priced sale, you also have to acknowledge that this particular sale seems to have squatters, which are the buyer’s responsibility. The listing noted that the property was occupied and no interior inspections were available… meaning the property cannot be seen in person. That’s pretty hardcore.
In a less dramatic deal, unit 4019 is a two bedroom that closed for $370,000. This one was a Homepath deal, a foreclosure that was taken back by Fannie Mae. I saw this property in person and it was in great shape. It needed only some drapes and was ready to move-in. Someone got a very good deal. That unit would rent for $2,450/month by my estimates.
As for non-distressed sales, we saw a 1 bedroom trade for $330,000 ($365/square foot), and then a two bedroom corner unit that sold for $407,500 ($367/ft). On the 39th floor, a 2 bedroom with 2 parking spaces closed for $415,000.
Overall, the sellers who closed their units accepted 93% of their desired price, staying in line with the rates of negotiation we are seeing in other buildings.
There are currently 3 contracts pending in the building. One is a short sale that was listed for $360,000 for a two bedroom. This one has to be considered an outlier because who knows whether it will get approved and the buyer has to pay the seller’s closing and legal costs. There’s no telling how much that will amount to!
Units 1603 and 2403 are both one bedroom plans and are asking $299,900 and $299,000 respectively. We have also just listed apartment 803 for $283,000, so expect to see an offer come through very quickly!
Aside from apartment 803, there are 33 total active sales in the building. While that does work out to 33 months of inventory at the rate that closings are coming, it is also only 9% of the total units. That is a far better situation than some of the other buildings in the area.
One bedrooms start at $255,000 up to $325,000. Two bedrooms are between $384,000 to $485,000 aside from one two bedroom listing that is a short sale offered for $308,000. I can’t believe we’re talking about short sales again! Even with the short sales and foreclosures that are being marketed, since financing is still possible, I would still consider Brickell on the River North to be a relatively healthy building in this market.
On the rental side, we have seen 24 rented apartments in the last months with an average price of $2.33/square foot. One bedrooms range from $1,850-$2,100, two bedrooms from $2,300-$2,750 and 3 bedrooms around $3,400/month. The average marketing time is 46 days and owners are garnering 96% of their asking price. It is also important to make note that most of the rentals are transacting for the asking price, especially in the lower price points. Furnished rentals tend to be a bit more flexible since they are more challenging to fill, but the unfurnished units are not budging in price.
Current rental availability ranges from $2,150/month-$2,375/month for one bedrooms, $2,500/month-$2,850/month for two bedrooms and $3,200/month-$3,500/month for three bedrooms.
January 2017 Brickell Real Estate Market Update
This is a very interesting time in Miami’s real estate market and we are going to start doing more regular market updates of the various neighborhoods and even individual buildings. We’ll start with Brickell, but don’t hesitate to reach out and make a request if there is a specific neighborhood or building that you are curious about.
SALES MARKET
January 2017 brought 41 closed sales in Brickell, according to MLS data, down from 66 in January of 2016. These were seller to buyer transactions, not developer to buyer transactions, since developer to buyer transactions are not reported in the MLS. We will do a separate post with developer-buyer transactions for each building as they open and the sales are recorded.
Although the number of transactions fell, the average price rose to $514,000 for those 41 closed sales. 2016’s average price was $500,000. The average price per square foot also rose to $412/square foot, up from $401/square foot last year. The condos that found buyers had an average time on the market of 163 days, last year was 114 days. It seems the longer marketing time and increasing inventory choices for buyers has made the sellers more eager to sell. The buyers who transacted were able to negotiate down to 92% of the asking price this January, down from 97% of the buyers who bought last January.
The most expensive listing that sold this month was Tower Suite 3801 in Reach at Brickell City Centre. It sold for $1.95M and was offered at $2.1M and the buyer was represented by our very own Lucas Lechuga. We did an in-depth look at the numbers from that transaction last week. The least expensive sale of the month was a $168,000 studio at Brickell’s original condo building, the Four Ambassador.
As of today, there are 1,888 active listings in Brickell (300 of which are new listings in January), averaging $725,000 and $508/square foot. If we continue selling at this rate, we have enough inventory for 46 months of business. With this amount of available alternatives for the buyers, the sellers who are eager to move on from their units need to not only price them aggressively but also hire an agent with strong marketing power so that you stand out from the crowd.
RENTAL MARKET There were 306 new leases signed in January of this year, up from 264 in 2016. The average rental price is $2,466/month, basically the same as last year’s $2,440. The 306 landlords who found new tenants beat out the competition of 1,442 alternative active listings, 465 of which were new listings.
Although the number of transactions is up and the prices are holding firm, the marketing time is increased this year to an average of 79 days on the market. Last year it took an average of 65 days to find a new tenant and move them in.
Tenants should not smell blood in the water yet though. The 306 leases that were signed garnered 96% of the asking price, so lowballing isn’t a thing just yet. The landlords who are not into 2+ months of vacancy are pricing their units well and finding a tenant quickly.
The most expensive rental of the month was the Four Seasons Residences Unit 44C. That one rented for $9,750/month. The least expensive was a studio at The Club at Brickell Bay for $1,400. It is important to note that the entry-level apartments in the neighborhood are less likely to negotiate price. Brickell is increasingly a hot neighborhood, so the entry point options are very much in demand.
What trends do you anticipate for Brickell? Weigh in and we’ll follow back up next month!
Three Bank Owned Condo Foreclosures Worth Pursuing
The foreclosure forefront has been quite slow ever since several U.S. banks initiated a voluntary freeze in October. The freeze on foreclosures was implemented after banks had acknowledged using “robo-signers” to approve hundreds of foreclosure documents a day without first verifying the information in them. Bank of America, the largest U.S. financial institution, announced the week of December 6, 2010 that it would lift its national foreclosure freeze and resume taking possession of properties. Despite the announcement, I had not seen any foreclosure condos in Miami or Miami Beach hit the market that I felt would be of any interest to my readers for quite some time. That is, until yesterday. The following are three Miami or Miami Beach condo foreclosures along with my commentary detailing why I feel they are deals worth pursuing.
One Miami #3103 – This 31st floor, 1 bedroom/1 bath bank owned foreclosure has 868 square feet and is asking $182,000 or $210 per square foot. The unit faces south overlooking the Miami River with views of Biscayne Bay from the balcony. Taking a look at recent sales at One Miami, one can see that unit 803 which is in the same line but located 23 floors lower sold for $188,000 on November 9, 2010. This is the only 03 line that has sold within the past six months. Unit 3103 at One Miami is currently the second best priced condo in the building, second only to a short sale by $2,000. If you’re looking for a quick purchase without the hassle of a short sale then this is a great condo to look into right away.
Vue at Brickell #2115 – With an asking price of $159,900, or $143 per square foot, this 2 bedroom/2 bath corner unit is an exceptional deal but I expect it to sell well above asking price. Of the recent sales at Vue at Brickell, units 1415 and 815 are by far the best comparables because, once again, they are in the same line as the subject property. Unit 815, residing 13 floors lower sold for $180,000 on October 28, 2010 while unit 1415, just seven floors lower sold for $185,000 on August 5, 2010. You also have to take into account that unit 2115 appears to be an upgraded unit from the pictures. It has hard wood floors throughout the living areas while units 815 and 1415 both had carpeting.
The Cosmopolitan #2213 – If you’ve been waiting for a well priced condo foreclosure in South Beach, then look no further. The Cosmopolitan is located at 110 Washington Avenue in the South of Fifth neighborhood of South Beach which is one of the most sought after neighborhoods in Miami Beach. This 1 bedroom/1 bath condo has 861 square feet and comes with 2 parking spaces, a rarity in the Miami Beach condo market. The asking price is $241,433, or $280 per square foot, which is an unbelievable deal for a 1 bedroom condo at The Cosmopolitan. Notice that next best priced 1 bedroom condo currently available at The Cosmopolitan is asking over $75,000 more than unit 2213. For some reason, our website isn’t showing any of the seven condos that have closed at The Cosmopolitan over the past six months. Three of the seven closed sales were one bedroom units which ranged from $270,000 to $349, 500.
Top 5 Distressed Condo Sales Closed in October 2010
Below, you will find what I believe to be the five best condo deals of the 71 distressed condo sales that closed in October 2010 in the MLS located in Brickell, Brickell Key, Downtown Miami and the Arts District. This should give everyone a good idea of the kind of deals that can be obtained in the Miami condo market at this time. Of the 71 distressed condo sales that closed last month, 39 were REOs and 32 were short sales. I feel it’s important to note that 25 of the 39 REOs sold at or above asking price. Time and time again, we try to emphasize to clients that the majority of well priced REOs in condominium buildings of interest will receive multiple offers and sell at or above asking price. It may be difficult to believe but bidding for condo foreclosures in Miami is very competitive. For example, unit 1601 at Solaris at Brickell was a foreclosure that we discussed on one of our video shows in August. The condo was listed for $168,300. At that price, we felt that the condo was grossly under priced. Last month, the condo closed for $230,000, or about 37% above asking price. It’s important to recognize good value when it becomes available and to have the ability to act quickly. As a side note, in the example above, our recommendation at the time to potential buyers was to bid up to $200,000.
Solaris at Brickell #1204 – 2 bedroom/2 bath (1,145 square feet) – This unit sold for $165,100, or $144 per square foot, on October 21, 2010. REO
Brickell on the River North Tower #3417 – 2 bedroom/2 bath (1,157 square feet) – This unit sold for $215,000, or $186 per square foot, on October 1, 2010. Foreclosure
Blue Condominium #2004 – 2 bedroom/2.5 bath (1,158 square feet) – This unit sold for $180,000, or $155 per square foot, on October 8, 2010. Foreclosure
Neo Vertika #2519 – 2 bedroom/2 bath (1,113 square feet) – This unit sold for $159,000, or $143 per square foot, on October 4, 2010. Short Sale
Cite on the Bay #119 – 2 bedroom/1.5 bath (980 square feet) – This unit sold for $136,000 or $139 per square foot, on October 20, 2010. Short Sale
Four Great Condo Foreclosure Deals on the Market Now
In this video segment, we highlight four condo foreclosure deals that are available at this time. These condos reside at 900 Biscayne Bay, Blue Condominium, The Club at Brickell Bay and Icon South Beach. Give us a call at 305-428-3860 if you would like to learn more about these opportunities or other foreclosure deals now on the market.
Miami Real Estate Review – Episode 7
In this episode, we provide an update regarding the developer blowout sale at The Plaza on Brickell that started last Thursday. We also touch upon pricing at Icon Brickell and discuss news regarding Marquis. We end the show by highlighting four noteworthy foreclosures that came onto the market since last Friday.
$12.9M Penthouse Foreclosure at Santa Maria Hits the Market
Earlier this afternoon, a penthouse foreclosure at Santa Maria came onto the market with an asking price of $12.9M. It’s a two story condo with 10,000 square feet of interior and has a rooftop terrace with a large hot tub.
Update: As I was writing this blog post, I received word that the penthouse has already gone under contract. Word is that the accepted offer price was $11M. Geez, that was fast!
Price Increases Seen in the Sub-$250K Market
This video introduces a 1 bedroom/1 bath foreclosure condo at Brickell on the River North which came onto the market yesterday. It’s located on the 24th floor and faces west with a direct view of the Miami River. The asking price is $128,700, or $170 per square foot.
The video also explains why we’ve been seeing prices rebound in the sub-$250K segment of the market. Demand has increased due to the availability of financing in 2010 which had been pretty much nonexistent throughout 2009. Each month we continue to see more and more buildings become Fannie Mae approved throughout Miami. The common element in most of these newly approved buildings is that condos in the sub-$250K market are well represented. Furthermore, supply has decreased as evidenced by recent market reports showing large percentage increases in year-over-year closed sales as well as pending sales. Arguments which point to remaining and future developer inventory hold very little water in this segment of the market. Buildings such as 900 Biscayne Bay, Paramount Bay, Mint, Infinity at Brickell, Marquis and Icon Brickell have very little, if any, inventory in that price range.
Carlos Justo the Previous Owner of the 5 Bedroom Penthouse Foreclosure
Carlos Justo was the previous owner of the 5 bedroom penthouse foreclosure at Imperial at Brickell that was recently showcased on this website. In today’s video show, we feature an Associated Press interview that was filmed in that very penthouse.
5 Bedroom Penthouse Foreclosure at Imperial at Brickell
Yesterday afternoon, I had the pleasure of viewing a bank owned 5 bedroom penthouse at Imperial at Brickell. The two-story condo has 5,034 square feet of interior and is the only residence located on the penthouse level. Furthermore, the terrace is one of the largest that I’ve seen for a Brickell Avenue condo and has an amazing, direct view of Biscayne Bay, Key Biscayne and the South Beach skyline. It truly is an entertainer’s dream.
A few days ago, the list price was reduced $300,000 to its current asking price of $1.49M, or $296 per square foot. The unit needs to be renovated considerably. In fact, if it were me, I would gut the entire condo and start from scratch. The condo is perfect for someone who is creative and has the vision to transform this space into one of the most spectacular residences along Brickell Avenue.
Without a doubt, this is a rare opportunity at a great price. Contact us at 305-428-3860 if you have any questions regarding this 5 bedroom penthouse or would like to schedule a personal showing.
Imperial at Brickell was completed in 1983 and is located at 1627 Brickell Avenue.
