Condo Associations Opting to Not Include Water as a Utility in Their Monthly Dues
You know what they say when you assume: you make an ASS out of U and ME. Until recently, it was assumed, for condos located in Miami, that water would be included as a utility in a condo owner’s condominium association dues and, therefore, would be included in the rent price for tenants who lease their property. That no longer seems to be a safe assumption. Two recently completed condo developments – Nine at Mary Brickell Village and The Crimson – have done away with including in their condo dues water as a utility. For those two condo developments, units have associated to them separate water meters, which are read periodically in order to compute their individual utility bill.
While at first glance this may seem like great news for investors since they no longer would have to foot the bill for a utility service that they personally are not using, it could potentially be risky for owners as well. If a tenant neglected to pay his/her water bill, a lien could be placed on the property. That is not the case for other utilities and services such as electricity and cable TV. If a tenant neglected to pay their electricity bill, Florida Power & Light would simply shut off the power to the property. If a tenant neglected to pay their cable TV bill, the cable company would simply deactivate service. If, on the other hand, a tenant neglected to pay their water bill, the bill would continue to run up and a lien would be placed on the owner’s property. Something to keep in mind, especially for Realtors who are in the habit of telling prospective tenants that water comes included in the rent price. Rather than assuming, it’s always best to double check with a building’s condominium association before relaying such information.
Brickell City Centre Reach Tower Is Officially Open
At long last, Brickell City Centre’s first residential tower has opened! Reach Tower has received its certificate of occupancy from the city and closings have begun. The closings just began this week and the first residence to hit the public records was apartment 2109. That closed on Monday, April 11, according to The Next Miami.
Sources with the development have indicated an average sales price of $650/square foot for the 390 residences, 335 of which are currently under contract. The first investors to commit to the development were offered lower prices in exchange for believing in the project when it was in the conceptual phase. Apartment 2109 is a 2 bedroom with 1,501 interior square feet that closed for $884,300, or $589/square foot.
At the time of this post, we have not yet seen any of the apartments come to the rental market although they are expected soon. Some investors have mentioned to our agents that they intend to list the rental units for $3500/month for one bedroom options and $4500/month for two bedroom options.
The apartments are being delivered finished and ready for furniture, so we will not have to wait for interiors to be built out before seeing new neighbors occupying the tower. If you would like a tour of the development for purchase or lease, we are happy to arrange it.
East Hotel Taking Reservations Starting May 9, Reach Tower 95% Sold As Brickell CityCentre Begins to Open
Just three days after the ribbon cutting and official opening of Three Brickell CityCentre, we have exciting news about the other phases of the opening. All three remaining components of the much-anticipated development will be opened within the next six months. Here is the timeline we are working with:
Hotel: The East Hotel is currently accepting reservations with availability beginning May 9, 2016. Rates for the first night begin at $279/night including complimentary wifi and continental breakfast for two according to the booking section of their website. Separate packages are available for business travelers, offering a complimentary welcome cocktail, dry cleaning credit, wifi and continental breakfast for one.
Residential: Sales remain strong at both residential towers, Reach and Rise. Reach is currently 95% sold and awaiting their certificate of occupancy to begin closings this month. For buyers who wish to move-in within the upcoming weeks, a few opportunities remain with pricing averaging at $650/square foot. Rise tower is not far behind, boasting 50% sold status and similar pricing. We expect to see Rise opening later this year.
Retail: The impressive list of tenants have already begun their interior build-out to prepare for the grand opening of the mall, which is expected to be in September of 2016. The mall will be anchored by Saks Fifth Avenue and Cinemex luxury movie theater with a gourmet dining component. Other retailers will include Apple with their largest store in Florida, Valentino, Chopard and Lululemon. Sources have been buzzing since 2014 about the addition of an Eataly location although representatives of Swire have been unable to confirm this claim. Here is a full list of retailers that has been released by Swire.
Office: Three Brickell CityCentre was officially opened on March 1 with a ceremonial ribbon cutting attended by Mayor Regalado along with executives from Swire Properties and Akerman. Akerman is the anchor tenant of the office component of the development with 290 attorneys on staff. The new space will allow them to grow by 10%. Two Brickell CityCentre is the second office tower that is currently awaiting their certificate of occupancy.
It is important to note that these are prospective dates, considering everything goes as planned with the weather, contractors and permit delivery. We will be sure to be on top of any changes. Should you be interested in space in the residential, retail or office components, we are here to help.
Brickell Flatiron Issues Groundbreaking Notices; Construction Begins in March
Fans of Ugo Colombo will be overjoyed to hear that groundbreaking notices have been delivered to the buyers of Brickell Flatiron, the long-awaited project at 10th Street & South Miami Avenue in Brickell. According to the notices, the official groundbreaking is scheduled for March 16, 2016 although preliminary site work will be commencing immediately.
Locals will recall that this groundbreaking has been quite long-awaited. Ugo Colombo’s CMC Group purchased the site in 2013 for $21 million. In January 2015, the popular neighborhood restaurant/nightclub was closed to make way for the development. Since the closing and demolition, not much has been said with regard to the actual construction start date. The site has been used as overflow parking for the neighboring shopping center and restaurants.
This groundbreaking is very much a triumph for the neighborhood as Ugo Colombo is one of the area’s most celebrated developers. His previous projects have been among the most successful developments in the city and tend to hold their value through market fluctuations better than some of the competing buildings due to their quality and unique design. Some of his previous projects include Santa Maria, Bristol Tower and the Epic Hotel and Residences in Brickell as well as the famed Grovernor House in Coconut Grove.
One of the aspects that we appreciate the most from Ugo Colombo’s developments is that they have a more lasting effect on the skyline. Buildings that he built 10 or 20 years ago still appear brand-new in the skyline and do not show their age even as newer buildings pop up around them. The average resale price of Mr. Colombo’s developments stands at $757/foot over the last year, compared to $506/foot for the same time period for all buildings developed by The Related Group.
Purchase opportunities are still available at Brickell Flatiron, in the range of $600/foot depending upon layout and floor location. Residences will be delivered in 2018 fully finished with Italian porcelain tile. Contact us for details about the available opportunities or to speak about your specific needs for a condo.
Week in Review: Brickell Backyard Section of The Underline Receives Large Donation, Auberge Reserves 50 Units in 5 Days and Other News
Brickell Backyard Section of The Underline Park
This week brought great news for supporters of The Underline, a new park that is being developed beneath the Metrorail lines from the Miami River down to Dadeland. Each station is individually funded and the Brickell Backyard section received a $75,000 donation this week from local developers.
The Underline will begin construction in the Brickell phase and continue down 10 miles of the rail tracks. They have also secured $5 million in grants and funding from developer impact fees, Miami Dade County and Florida Department of Transportation. Friends of the Underline CEO & founder, Meg Daly hopes to begin construction by the end of 2016.
Residents of Brickell have been increasingly vocal over recent years regarding their desire for more park space but have lost out due to the laws of economics. The Underline is a solution that meets the needs of everyone involved, as the area underneath the rail tracks is not able to be sold and developed, but is available for public use. Think: the opposite of New York’s High Line… Underline will be a welcome addition indeed. [The Real Deal]
Speaking of the laws of economics, The Next Miami is reporting that the location of Brickell’s Burger King could face the wrecking ball in favor of a 960 foot tower. It appears that plans have been submitted to the FAA requesting permission to build up to 960 feet above sea level on the site.
Before you cancel your reservations on your north-facing apartments at Brickell Heights and hoard a box of Whoppers, let’s take a look at all of the evidence. Yes, a tower could be built on the land and this will likely happen one day. No, the Burger King strip center is not the highest and best use of the lot (particularly after Brickell’s recent growth spurt). We do believe that a tower will be built on the corner, but the likelihood of it happening anytime soon is very low.
The parcel of land at 10 SW 8th Street includes the Burger King on the east side all the way over to La Sandwicherie on the west side. The shopping center was last sold back in 2006 and no developer has been named for this proposed tower. Since shopkeepers in the strip center have been open about the fact that the building is being prepared for a sale, we sense that the proposal is simply a plan to increase the value of the lot in preparation for going to market. Whether or not the sale would happen quickly is another conversation altogether. For the foreseeable future, we will continue to enjoy our late-night La Sandwicherie subs in peace. [The Next Miami]
A little further north, Auberge Residences and Spa certainly had a large week. They released their first inventory on February 10 and successfully reserved 50 apartments in their first 5 days on the market! Given the feedback we have received, we hope that the lucky buyers who were able to secure a reservation hold onto their position when contracts are issued. Many people were disappointed to learn that certain floor plans have already been spoken for. Contracts are expected in late March. [The Next Miami]
While buyers were scurrying for opportunities in the Arts District, buyers of Miami Worldcenter have been scavenging for information regarding the revamped plans of their shopping center. This week finally brought additional details with renderings of the new open-air shopping concept that will replace the enclosed mall that was originally planned.
Some have praised Miami Worldcenter for their revised plans and some have begun to question the development. Have a look at the new renderings and let us know what you think… [Curbed Miami]
Auberge Residences Miami Video, Floor Plans, and More
Along with a few changes, additional information regarding Auberge Residences Miami has been released. Rather than 340 condo residences, there will now be just 290. Each will come with private elevator access and ceiling heights of 9, 10, or 11 feet. There will also be four double-height penthouse residences at Auberge Miami with 22-foot high ceilings.
Below, I’ve included the video for Auberge Miami along with the recently updated floor plans, fact sheet, and brochure. Reservations begin this Wednesday, February 10th. Prices for 1 bedroom units start at $297,400, but I was told earlier today that the developer already has more LOIs than actual 1 bedroom units that exist in the building.
Introducing Auberge Residences & Spa Miami; Reservations Begin February 10th
Get your checkbooks ready! Related Group is set to launch their latest preconstruction condo development – a luxurious, 60-story tower called Auberge Residences & Spa Miami, which will be located at 1400 Biscayne Boulevard in the newly coined Arts + Entertainment District. The tower will include 410 total units, comprised of 340 residences – with 1, 2, 3, and 4 bedroom floor plans – and 70 condo-hotel units. Designed by world-renowned architectural firm Arquitectonica,the all-glass tower will face east-southeast towards Museum Park and offer breathtaking views of the bay, city, and ocean. Interiors will be designed by famed interior designer Piero Lissoni and landscaping by the award-winning landscape architect Enzo Enea. The grounds and common areas at Auberge Residences & Spa will feature museum-quality artwork by celebrated artists such as Jaume Plensa, Fernando Botero, and Julio Le Parc.
Amenities at Auberge Residences & Spa Miami will include a 60th floor pool deck with food and beverage service, a world-class spa, full-service concierge, and more. Located at the corner of 14th Street and Biscayne Boulevard – directly across the street from the Adrienne Arscht Center for the Performing Arts – Auberge Residences Miami will be within walking distance to Museum Park and the upcoming Miami Worldcenter and within 15 minutes of Brickell, Wynwood, Downtown Miami, and Miami Beach.
Reservations are set to begin on February 10th. Units will be released in batches with the first batch averaging $575 per square foot. A 10% deposit will be required to reserve a residence and contracts are expected to go out in late-March, at which point an additional 10% deposit will be due.
Auberge Residences & Spa Miami is expected to be completed in early 2019.
Miami Worldcenter Opts for Open-Air Shopping; Residential Amenities Remain Unchanged
News spread earlier today that Taubman has opted to turn Miami Worldcenter into an open air shopping mall rather than the originally planned enclosed mall. We found this to be great news, as open air malls have been more sought after by shoppers in recent years, leaving hoards of enclosed malls vacant and in need of redevelopment throughout the country. The open air plan will also likely be less costly to build.
The shopping center had been slated to be anchored by Macy’s and Bloomingdale’s, although it is not clear at this moment whether they are still on board. Just last week, Macy’s announced it would be closing 40 stores due to dismal holiday stores.
Construction is already underway on Paramount Miami Worldcenter, the luxury residential component of the development. Many people have contacted us regarding these changes and how they affect the condo portion. The developer has reassured us that the changes in the retail component will not affect the amenities slated for Paramount.
BrickellHouse Parking Trouble: How Have Sales Values Been Affected?
Back in early November, residents at Brickell House condominium in the Brickell Financial District were shocked to receive news from the condo association that their “state-of-the-art” robotic parking system would cease to function due to a disagreement between the builder and the operator of the system.
While the news of the service interruption was a surprise, the issue between the building and Boomerang Systems was not. The parking system that was installed in 2014 never worked properly, and the morning ritual of retrieving cars could sometimes take upwards of an hour per resident. The building had done their best to appease the residents, offering free Starbucks coffee during the lengthy wait times, reimbursement for Uber trips and reimbursement for alternative parking arrangements, but the elephant in the room remained. The building had a major problem.
After scrambling to find alternative arrangements for the residents of the 374 apartments, the parking company continued to demand $50,000 per month as a fee for operating the system and $100,000 in back payments. The building resisted the payment as the delays continued to grow as the building continued to fill with residents. According to the South Florida Business Journal, US Bankruptcy Judge Mary F. Walrath settled the dispute on December 21 by cancelling the contracts for purchase, installation and maintenance of the parking system but allowing the building to hire another company to manage the equipment & software that is already on site. In the meantime, the temporary parking solution remains in place.
While the building is busy looking for a new parking service company, many are wondering what will happen to the sales and rental values of the building?
Now that the market has had a few months to reflect the aftermath of the dramatic news, we are happy to see that not much has changed in the sales values. According to our BrickellHouse Statistics page, the sales figures have steadily risen since the building opened in late 2014.
Over the previous 3 months, the average price per foot has been $641/foot for sold condos, up from $611/foot over the last 6 months and $595/foot at building opening. There are also 4 apartments that have executed contracts that are still in process. The rental market has also steadily grown with 18 new leases in place over the last 3 months, 56 leases in the last 6 months and 143 over the last year.
While we are sure the parking situation is inconvenient for all involved, it is a relief to see that the building is holding its value as planned. Once the parking debacle is resolved, we are confident that the building will be revealed as an even better investment for the long-run.
