Wind by Neo and Latitude on the River Sue Manufacturers for Faulty Fire Sprinkler Systems – What Does This Mean?

 

Latitude on the River

As reported by the Miami Herald, at least two condo towers in the Brickell area have been discovered to have faulty plastic pipes in fire sprinkler systems that protect the high rise towers. Lawyers for the condominium associations at Wind by Neo and Latitude on the River (pictured above) have filed a federal lawsuit against Lubrizol, the Ohio-based sprinkler system company that installed the systems during the development phase of the buildings.

According to the lawsuit, the plastic pipes were made of CPVC and contain a resin that breaks down when combined with other common building materials. This causes leaks, cracks and a loss of pressure. Just a few months ago, residents of the Wind by Neo woke up to water pouring into their apartments, damaging several floors of the 41 story tower. More dangerous still, the subpar materials could cause the fire safety systems to not function properly in the event of a fire. According to the lawsuit, an engineer for Lubrizol warned the company of the issue after seeing damaged pipes from buildings across the country. The company officials decided at that point to not disclose the defects. Officials at Lubrizol have not yet commented on the issue.

So what happens now?

Attorneys for the building are estimating the cost of repair to be in excess of $50 million – $70 million at  each building, and the issue could spread to other developments built around the same time as well. The issue could grow as large (if not larger than) the Chinese drywall issue of recent years. Remediation is lengthy, costly and complicated.

While the attorneys, condominium associations and manufacturers sort the issue out, what happens to the residents of the 943 apartments in the two towers? The Wind (located at 350 South Miami Avenue) has 489 apartments across 41 floors while Latitude on the River (located at 185 SW 7th Street) has 454 apartments across 44 floors. It has not been announced yet whether the residents will be able to remain in their homes during the remediation period, but we imagine that insurance companies would take issue with the risk.

Until the issue is resolved, lenders will not issue mortgages for apartments in the affected buildings, driving the prices down as cash-only purchases will be required. The extent of this adjustment is to be seen, since many of the resales in the area are already cash-only purchases.

At Latitude on the River, over the last 90 days, there have been 5 total closed sales with 1 being financed. The financed purchase was for a 1 bedroom apartment (Unit 1908) at $332/square foot. The average of the 4 cash purchases was $328/foot.

At Wind by Neo, there were 7 total closed sales in the same time period with only 1 being financed. The financed purchase was a 2 bedroom at $375,000 or $349/foot. It was Unit 2803. The average for the 6 other purchases that were cash came in at $341/foot.

Right now, it seems that only a small discount is rewarded to those who are buying without mortgages, but we are curious to see what will come in the future as the remediation gets underway.

Back in 2012, Latitude on the River was faced with a similar class action suit when Chinese drywall was discovered in a handful of the apartments. During that time, the market was on a steady increase after the crisis of 2008 and the building continued to increase in value along with the other properties in the neighborhood, albeit at a lower price than properties with similar layouts, views and amenities. Given that the average price per foot of resale properties over the last 3 months in Brickell is $432/foot, it seems that the trend continues.

We will continue to watch the affected buildings as more details come and will be available for anyone who would like to speak about individual scenarios.

The Crimson in Edgewater Gains Fannie Mae Approval; Prepares to Start Closings

the-crimson-miami-condos-2

Placed between IconBay and Bay House in Miami’s Edgewater neighborhood, The Crimson is preparing to begin closings this month. The Crimson is a boutique property of only 90 apartments in 20 floors and will offer a more private lifestyle than some of the larger projects on either side.

One of the aspects of The Crimson that we love is its status of being silver LEED certified – meaning that the project has earned 50-59 points toward ultimate energy efficiency. Builders can earn LEED certification points through building design, quality of materials, efficiency of appliances and even for designing low-maintenance projects.

To prepare for the opening, the developer has also announced that the project is Fannie Mae approved. This is particularly exciting for local residents who are interested in purchasing an apartment as their primary residence. The sad reality is that many projects in the area are not attainable for local buyers due to the fact that mortgage funds are not typically available to buyers of new projects. Buyers can now purchase a brand-new condo in The Crimson with as little as 20% down payment. There are only 5 buildings in the greater Downtown area that have this Fannie Mae approval.

There are still a few opportunities to purchase prior to the building opening with prices ranging from $455,000 up to $1,579,000.

The Crimson Miami Condos

 

Starchitect Renzo Piano To Introduce Eighty Seven Park In Miami Beach

eighty-seven-park-condos-renzo-piano-6

Miami Beach is getting another starchitect-designed condo building, this time by Pritzker Prize winning Renzo Piano. Eighty Seven Park will be the first project in South Florida to be designed by the famed architect and is located at 87th and Collins on the last piece of land north of North Shore Park at the limit of the city of Miami Beach. The 18-story glass tower will feature oblong floors and wraparound balconies with ocean views. In total, the building will offer 68 residences varying in size from 1,400 to 7,000 square feet.

“The idea behind the site is to enhance the presence of the green spaces in the park by extending trees to the northern limit of the city of Miami Beach,” said a statement from Renzo Piano Building Workshop. The building will be surrounded by a reflection pool and private gardens. Between the residences and the beach will be two swimming pools surrounded by sundecks and a walking path to the shoreline.

Interiors are being designed by Rena Dumas Architecture Interieure from Paris and will feature American oak and Italian stone fittings with orchids, Bonsai trees and cacti. An in-house botanist will maintain the year-round floral display, extending the serene natural feeling from the gardens indoors.

Renzo Piano will join Rem Koolhaas, Zaha Hadid, and Bjarke Ingels with their starchitect-designed projects over the upcoming years. In addition to being the first project for Mr. Piano in South Florida, Eighty Seven Park will also be his first residential building in the United States. Previously, the firm has completed the 95 story Shard, the tallest building in the European Union that is often referred to as London Bridge Tower as well as the 52 story New York Times Building in Midtown Manhattan.

eighty-seven-park-condos-renzo-piano-7

eighty-seven-park-condos-renzo-piano-3

eighty-seven-park-condos-renzo-piano-17

eighty-seven-park-condos-renzo-piano-12

eighty-seven-park-condos-renzo-piano-16

eighty-seven-park-condos-renzo-piano-19

eighty-seven-park-condos-renzo-piano-18

eighty-seven-park-condos-renzo-piano-15

eighty-seven-park-condos-renzo-piano-14

eighty-seven-park-condos-renzo-piano-13

Eighty Seven Park Condos by Renzo Piano

eighty-seven-park-condos-renzo-piano-9

eighty-seven-park-condos-renzo-piano-10

eighty-seven-park-condos-renzo-piano-8

eighty-seven-park-condos-renzo-piano-5

eighty-seven-park-condos-renzo-piano-4

eighty-seven-park-condos-renzo-piano-2

IconBrickell Pool To Close For 12 to 14 Months

Icon Brickell Pool Closing

Residents of IconBrickell and the Viceroy Hotel (W Hotel) are in for a hot and dry summer, as their famed pool deck will be closed for renovations/repair. Our sources have confirmed that the Icon Brickell pool closing is expected to begin around February 2016 and the work is estimated to be completed in 12 to 14 months.

It has been reported that the Icon Brickell pool renovations will include re-tiling of the pool deck for safety reasons (because the tiles used by the developer are too slippery for use on a pool deck). Others have reported that leaks in the pool have caused damage to the spa and gym below; however, the management office has not cited at this time the exact reason for the closing.

IconBrickell opened in 2008 to rave reviews but few sales due to the economic downturn. The amenities in particular won awards and accolades for their grandiose, superb quality and design. Developed by Related Group, Arquitectonica was chosen as the architecture firm and Philippe Starck handled the interior design. IconBrickell was among the first condo developments to rebound from the economic downturn in Miami. Average sale prices for the second quarter of 2015 have been reported at $583 per square foot for the three towers or $796,000 and rentals have averaged $3,150 per month for the same period.

The pool closing at Icon Brickell has been well known among residents and the real estate community for several months. As such, listings at Icon Brickell have already begun to price in the negative impact that the pool closing is expected to have.

Mario Chalmers Traded to Memphis Grizzlies

mario-chalmers-marquis-residences-miami-condos

Mario Chalmers has been traded to the Memphis Grizzlies along with forward James Ennis, according to league sources. The teams have scheduled a trade call with the NBA office to finalize the deal, which is reported to include  Grizzlies’ guard Beno Udrih, forward Jarnell Stokes and a second round pick to the league.

According to Yahoo Sports, the trade deal will save Miami $6 million in luxury tax payments. What has not been disclosed is the future of Chalmers’ 5 bedroom condo in Marquis Residences. The 28 year old guard purchased the 5,475 square foot condo in 2012 from hip hop/rap artist Drake for $2.6M. The apartment originally was designed as 2 residences but were combined by Drake in 2011 and features 5 bedrooms, 5 baths, a game room, wet bar, state of the art kitchen and 2 laundry rooms. It is a 2 level residence on the 49th and 50th floors with views of the Biscayne Bay, Atlantic Ocean and Miami Beach skyline. The property includes 4 assigned parking spaces, but is located just 5 blocks from the American Airlines Arena. It was previously listed last August for $4M, but the listing was removed in February of this year.

There is no word yet on whether Mr. Chalmers will keep his Miami property, but we will be sure to find out as news develops.

The Underline Reveals Plans for New Brickell Park

Underline Park at Brickell Station

The green area under the Metrorail line in Brickell has historically been the dividing line between East Brickell and West Brickell, but will soon be a thriving park area reminiscent of Manhattan’s High Line. The co-designers of the famed park have unveiled a master plan for the green area under the rail line stretching from the Miami River all the way to Dadeland.

While the 10 mile master plan in its entirety is ambitious, it is also supported by local businesses, governments and locals alike, all of who have been searching for more park space for some time in our community. The initial $5 million government grant is proposed to build out the Brickell section as a demonstration project so that the success story can be taken back to the state Legislature for additional support. Previous requests for additional funding have been approved by the state Legislature but vetoed by Gov. Rick Scott.

The Brickell section of The Underline will feature a riverfront seating area, picnic areas, outdoor gym, shaded play area and a MUCH needed dog park. An area of naturally formed oolite will be incorporated into a play area with a rock climbing wall. Once completed, each stop of the Metrorail will boast different community friendly features to improve the nearby communities.

On Monday November 9, the Friends Of The Underline support group will host another presentation of the plan in its’ entirety. This will be the last opportunity that the public has to comment on the master plan before it goes to the Miami Dade County Commission for approval.  Here is the information of this presentation for those who would like to attend:

 

Monday, November 9, 2015
6:00PM-8:00PM
University of Miami School of Architecture – Glasgow Hall
1223 Theo Dickinson Drive, Coral Gables FL 33146

This is a free event. You can download tickets here.

Underline Park Trails

Underline Park in South Brickell

Underline Park at Ponce de Leon

Underline Park at Univeristy of Miami

Underline Park at Dadeland

Ten Museum Park Developer Settles Class-action Lawsuit with Condo Association for $587,500

Ten Museum Park

According to Daily Business Review, Ten Museum Park developer Gregg Covin has agreed to settle a class-action lawsuit, filed in 2010, with the building’s condo association.  Disgruntled owners argued that certain amenities were not delivered as promised in the 2005 marketing brochures.  The developer has agreed to pay the condo association $587,500 which will be used to update the common areas.

Phone Numbers for Condominium Associations in Miami

old black phone

I decided to compile a list of phone numbers for various condominium associations in Miami. These are useful to real estate agents, buyers, sellers and renters alike when looking to obtain building-specific information such as pet and rental policies as well as to request an application for condominium association approval. You can find the list under the “Resources” drop-down menu in the header. The list is by no means complete so please feel free to email me any that I am missing so that I can add them. info@miamicondoinvestments.com

Miami Home Prices Post Strong Gains for Third Consecutive Month in February

Miami Association of Realtors

The good news continues to pour in for the Miami real estate market.  Earlier today, the Miami Association of Realtors released a report showing that Miami home prices had posted strong gains for a third consecutive month in February.  Here’s an excerpt from the press release that was issued:

For the third consecutive month,Miami home prices posted strong gains in February. The median sales price of condominiums in the Miami-Dade County surged 40.4 percent to $131,950 in February compared to a year earlier, according to the 26,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 19 percent to $175,000.

“Miami home prices have rebounded sooner and stronger than predicted, which is a very encouraging sign for the Miami real estate market,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “Months supply of inventory has dipped below 5 months, as housing inventory continues to dwindle. Limited supply should further strengthen home prices.”