A Year in Review for the Miami Condo Investments Blog
As a year-end post, I decided to go through all of the posts that I’ve written about the Miami condo market in 2007 to highlight my five favorite posts. This blog was born on May 12, 2007, so it’s really a 7 1/2-month review. It’s amazing that I’ve been able to find the time to write 180 posts since that time. The following five posts weren’t necessarily the most popular, although a few were, but rather just my own personal favorites. These are the blog posts that I felt were both insightful and well written. Is there a Miami Blogging Pulitzer Prize in existence yet?
I’d love to hear which Miami condo post was your favorite of 2007.
Miami Condo Developer to Miami Condo Vulture?
Earlier today, the South Florida Business Journal published an article entitled “Related Considering Fund to Buy-up Condos“. It reveals that Miami condo developer, Jorge Perez, is considering to create a fund to buy condos throughout Miami at a discount. The article states that a source disclosed that the funding would come from Latin America.
Much of the The Related Group’s condo inventory is located in Brickell and Downtown Miami. Jorge Perez, CEO of The Related Group, recently stated on NBC6 that his only regret is not buying more land around his first condo development, One Miami. While many condo developers in Miami are now regretting ever getting into the mix, Jorge Perez regrets not buying and developing more land.
As the article points out, I think there will be a [huge] conflict of interest if Jorge Perez’s fund acts to buy defaulted condos that arise at Related developments throughout Brickell and Downtown Miami. I don’t think the banks that loaned the money to The Related Group will find the situation too appealing. I, for one, would feel a bit suckered. Additionally, buyers who do close on condos in Related developments might feel a bit suckered as well if they later hear that the developer himself acted as a principal to buy defaulted condos at much lower prices.
Marina Blue – A Repeat Performance for Hyperion Development or a New Chance to Shine?
A very interesting article regarding the condo development called Marina Blue was published yesterday in the International Herald Tribune. The article focuses on Hyperion Development, the developer of Marina Blue, and its damaged reputation as a result of the large “delays and unhappy buyers” at its first development called Blue.
Some residents at the first tower, named Blue, are threatening to sue the company for not delivering on amenities while other owners at the 330-unit complex are trying to sell their condos for less than they paid.
Blue’s problems have hurt Hyperion’s reputation enough that consultants say that some buyers who put down deposits at the company’s second tower, the 516-unit Marina Blue, may decide not to close. Other Marina Blue buyers have sued to get their deposits back.
The problems raise questions about the ability of Hyperion to repay a $110 million construction loan as well as its ability to develop future projects in the Miami market.
It will be interesting to see if Hyperion Development has learned its lesson and delivers all amenities and common areas completely done at Marina Blue. I know from reading the comments that are left here, that this is a HUGE concern of contract holders of condos at Marina Blue and those who have an interest in purchasing a condo there. Sales agents at the Marina Blue sales office have assured me that all common areas will be delivered when closings begin but I won’t believe it until I see it. Closings are scheduled to begin within the next week, so we won’t have to wait long to see if those promises were kept. You can be sure that I’ll be keeping a close eye on how closings go at Marina Blue in the upcoming months.
Miami Condos in Brickell – Red Hot Foreclosure and Short-Sale Condo Deals!
Before anyone takes me seriously, let me first just say that the headline above was meant to be a joke. Once you see the “hot” short-sale and foreclosure deals in the Brickell condo buildings below, you’ll know what I mean. Goes to show that just because a condo is listed as a short-sale or foreclosure doesn’t mean that it is priced well.
I’m not sure why listings like the ones above even make it into the MLS. It’s a complete waste of time in my eyes.
How to Sell Your Condo or House in the Current Real Estate Market
The following video provides great insight as to how sellers in the current real estate market should be realistic in pricing their home or condo if they are truly motivated to sell.
Oh yeah, and in case you missed it….DON’T OVERPRICE YOUR HOME! If you interview three agents and you decide to go with the agent that is willing to list your home at the highest price, then good luck!
New Construction Condo Deals in the Arts District, Brickell, Downtown Miami, and South Beach
As closing dates for some of South Florida’s newest condo developments quickly approaches, the motivation from contract holders to sell is becoming increasingly apparent. I’ve been receiving a lot of phone calls and emails from contract holders, within the past couple of weeks, who are looking for me to help them find a replacement buyer.
In some cases the contract holders are willing to accept a loss on their contract price in order to retain a portion of the deposit that was made 3-4 years ago. Below you will find some of the better deals that I’ve come across:
Unit ??? – 2 bedroom/2.5 bath NW corner unit – 1,491 SF – $1.86M
Unit ??? – 2 bedroom/2.5 bath NW corner unit – 1,922SF – $3.35M
Unit ??? – 3 bedroom/3.5 bath NE corner – 3,497 SF (4 balconies) – $4.2M
If you’re a contract holder and you’re motivated to sell then feel free to email me details of your condo and the price that you are willing to accept. Most developer contracts do not allow you to market your unit outside the sales center, so I will post general information here on the blog to see if a buyer emerges.
I’ll match buyers and sellers together. The sales centers are in some cases charging higher than normal sales commissions and transfer fees which make it virtually impossible for contract holders to get their units into the hands of end-users. I’m hoping that this blog will help contract holders to get some of their money back, end-users to find a great deal and developers to have less defaulted units. The way I see it is a win-win-win situation for everyone involved.
By the way, I’ve added a link to this post on my “Deals” page and will be adding to the list above intermittently.
Incredible Buy on a 1 Bedroom at The Grand – $299K
I just came across a one bedroom/one bath listing at The Grand that looks to be incredibly well priced. It has 1,180 square feet of interior space. It is listed for $299,000, or $253 per square foot. There are a few other one bedrooms in the building that are listed for slightly less but none of them come even close to having the level of quality that was put into this unit.
This is a perfect condo for somebody in search of a spacious one bedroom that is in impeccable condition for under $300K. You won’t find this type of space in a one bedroom in most of the new buildings.
Take a look at the MLS listing for more information and pictures. You can call me for additional details as well or if you’d like me to schedule you a showing.
Miami Condo Index – Brickell Key – November 2007
The average price per square foot of condos listed in Brickell Key has gone down once again, as it has every month since I began this index. The average price per square foot of the ten condos, which represent the Brickell Key Condo Index, fell to $494.61 this month from last month’s figure of $501.55. The weight-adjusted average also fell to $490.87 per square foot versus last month’s weight-adjusted average of $497.82.
Average price per square foot of Brickell Key condos currently listed on the MLS:
This is the first month since I began the Brickell Key Condo Index that the average price per square foot of condos sold over the previous six months has gone up. The average price per square foot of condos sold within the last six months increased to $435.21 from last month’s average of $430.08. The weight-adjusted average also increased to $433.31 from last month’s weight-adjusted average of $424.57. Most of this is attributed to the lack of closed sales at Brickell Key Two. A closed sale of $375 per square foot at Brickell Key Two fell off the average and was replaced by a new closed sale within the past month at $446 per square foot. One closed sale within the past six months encompassed the average in October and November. As I said, the lack of closed sales is to blame.
Isola – 770 Claughton Island Drive | 33131 | $440.14
One Tequesta Point – 888 Brickell Key Drive | 33131 | $407.77
St. Louis – 800 Claughton Island Drive | 33131 | $442.40
Three Tequesta Point – 848 Brickell Key Drive | 33131 | $461.58
Two Tequesta Point – 808 Brickell Key Drive | 33131 | $450.84
Additional statistics can be found in the chart below:
There have been a total of 6 closed sales within the past month which is much better than the pathetic 2 closings revealed in last month’s update. These 6 closings, however, were highly concentrated with 4 of the 6 closings residing at Carbonell. Pending sales have inched up to 18 from last month’s 16 pending sales.
Closings to Begin at Opera Tower Very Soon
Word reached me tonight that the crown top at Opera Tower has been illuminated. I have also been informed that the swimming pool and hot tubs have been filled. Opera Tower is located in Miami’s up-and-coming Edgewater neighborhood.
This suggests to me that closings at Opera Tower will begin very soon, although closings were originally scheduled for September. However, when I drove by Opera Tower this past week, the street-level commercial spaces still looked to be at least one month away from being finished.
I’m not a fan of this development. I’ve made it known in a previous post that I think that this development will have a high default rate for various reasons that are disclosed in that post. I think it is likely that we will see a majority of these condos owned by the bank that loaned money to the developer of Opera Tower by April 2008.
