(The video that I shot of tonight’s auction is at the bottom of this post.)
The Platinum Condominium auction has come and passed. The big talk of the town packed the house with auction participants, brokers, reporters and spectators. If tonight was any indication of what lies ahead, then the Miami condo market is in for a rude awakening. Miami condo developers are in for a sleepless night if word about tonight’s auction reaches them before bedtime.
It was apparent from the first round of bidding that the developer of Platinum Condominium had high expectations and high prices in mind tonight. Many people realized that the rules of the auction were quickly changed once the first round of bidding was over. A HUGE mistake on the part of the developer, if you ask me. The auction house, or maybe the developer, decided to start the auction with Group B. A colossal mistake in itself, in my opinion. Group B was comprised of 2 bedroom + den/2 bath condos; the best batch of condos of the three groups. This should have been left for last. Anyone looking to bid on a one bedroom, and sit this round out, would be in a favorable position if the high bids on the units in group B came in low. That is exactly what happened.
The first round of bidding ended with a high bid of $295,000, considerably lower than the prices that people recently closed on condos through preconstruction contracts in 2004. The recent closing prices for 01 line units ranged from $422,000 to $515,000 while the 07 line units ranged from $407,000 to $555,000. The developer must have been shocked at the outcome of the first round. The likely choice for the highest bidder was to select either unit 2107 or 1201. However, the highest bidder was convinced to select an absolute unit since any other choice would not be approved by the developer immediately, if at all. That announcement wasn’t made publicly but sitting in the front row has its advantages. The bidder selected unit 1001.
The second round of bidding began and once again ended with a high bid of $295,000. The highest bidder also wanted one of the non-absolute units but was likewise steered towards an absolute unit. That bidder selected unit 1907. The same result occurred with the third highest bidder which amounted to $295,000 as well. That person selected $295,000.
The third round of bidding ended with the same result. The auctioneer made an announcement before proceeding with the fourth round of bidding. It was then publicly known that only absolute units would be auctioned at this time. The disappointment in the crowd was felt throughout the room. Two words seemed to form on the lips of people in attendance: “marketing ploy”. The crowd thinned-out thereafter.
The results of the first eight rounds of the auction are below:
1st Round: Unit 1001 – $295,000
2nd Round: Unit 1907 – $295,000
3rd Round: Unit 1607 – $295,000
4th Round: Unit 1602 – $200,000
5th Round: Unit 1806 – $175,000
6th Round: Loft-107 – $160,000
7th Round: Unit 301 – $320,000
8th Round: Unit 707 – $295,000
The 02 line had recent closings from preconstruction contracts that ranged from $235,000 to $345,000 while the 06 line ranged from $242,000 to $390,000. Two small lofts, equivalent to Loft-107, recently closed: one for $260,000 and the other for $267,500.
I think most still in attendance anticipated the auction to end after the 8th round. However, Group A was selected and another round of bidding began. It was quickly announced that the next unit chosen would also be absolute. Once again interest was restored by the crowd but failed to bring any noteworthy bids. The round ended with a high bid of $245,000. The highest bidder selected unit 1905, a 2 bedroom/2 bath condo.
The bidding commenced once again but it was announced that any high bids from thereon out would be subject to developer approval. Below you will find the results of the 9th through 16th rounds:
9th Round: Unit 1905 – $245,000 (Absolute)
10th Round: Unit 1705 – $230,000 (*)
11th Round: Unit 2102 – $185,000 (*)
12th Round: Unit 1201 – $300,000 (*)
13th Round: Unit 1101 – $300,000 (*)
14th Round: Unit 2107 – $265,000 (*)
15th Round: Unit 2007 – $265,000 (*)
16th Round: Unit 501 – $300,000 (*)
The asterisk (*) above indicates that those units were subject to approval from the developer. In other words, those weren’t officially sold.
9 condos sold tonight. 9 out of 20. Maybe a few others will sell once someone gives the developer a good kick in the noggin, but only 9 were officially approved tonight by the developer. I posted a poll along the side of my site a couple of nights ago to ask visitors how many condos they thought would get auctioned at tonight’s auction. The highest response was that all 20 of the units would get sold. What a huge disappointment.
The developer not only did a huge disservice to himself, but to the Miami condo market as well, by not allowing the condo auction to run its planned course. There were two stories that could have possibly emerged as a result of tonight’s event: (1) the auction was a tremendous success and confidence in the Miami condo market has been restored at a downwardly revised level, or (2) the auction was a disappointing failure and Miami condo developers should soon be seeing brown stains appear in their underpants. I can assure you that other Miami condo developers were keeping a close eye on tonight’s event. I think many of them saw the auction system as a last resort. But with their last resort being extinguished as a result of tonight’s disappointing outcome, what more can they count on?
The answer is simple, the banks. The Miami condo developers are not sitting alone in the condo glut that we are experiencing here in South Florida. The banks, and their shareholders, are ultimately the ones who will feel the brunt of the pain. If banks can’t rely on developers to utilize the auction system to successfully liquidate unsold or defaulted units then their only alternative is to take possession of the units that represent the portion of the building that has not closed. Ultimately, these properties will get sold for 50 cents on the dollar, or less, to large investment funds that can buy in blocks of $10M+.
My prediction is that the Miami condo market will have a holiday close-out sale in the winter months. It will “coincidentally” coincide with our peak-season when thousands of snow birds will flock to our tropical climes. More demand, but also extra inventory.
I am very curious to read what the reporters that attended tonight’s auction write about tonight’s event within the next couple of days. Will they have an optimistic perspective, a pessimistic take or an honest-to-goodness report like you’ve read here at the Miami Condo Investments Blog? We shall see.
The following video explains how the auction would work:
Kicking off the auction with Pool B:
Changing the rules and moving to Pool A:
The Results of Today’s Auction
Six properties were auctioned this afternoon. Five of them were condos and one was a single family home. A couple of weeks ago I wrote about four of the condos.
The auction was held in the back yard of the single family home that was being auctioned, located at 5900 NW 13 Avenue. The single family home was the first property to be auctioned and sold for $53,500. It was a 2 bedroom/1 bath with 622 square feet of interior space. The house was in pretty bad shape but it resides on a large corner lot with .149 acres.
The auctioneers decided that since the remaining properties to be auctioned were all condos they would make it “buyer’s choice”. This meant that the highest bidder got to choose from the remaining available condos. He or she also had the opportunity to buy multiple condos at the same purchase price.
The highest bid for the first round was $496,000. As expected, the bidder selected the 3 bedroom/2 bath townhouse in South Beach. I think the person paid fair market value for the property. I personally visited the townhouse this past weekend and it is in need of a lot of work to make it into a nice residence.
The second round of bidding ended with a high bid amount of $272,000. The bidder selected the one bedroom condo located at The Club at Brickell Bay. I was surprised that bidding went this high.
The highest bid for the third round was $230,500. The bidder selected the 1 bedroom/1 bath condo at Venetia Condo.
The 2 bedroom/1 bath condo at Blue Lagoon Condominiums was selected fourth with a high bid amount of $195,750.
The final condo to be selected was a 2 bedroom/2 bath at Grandview Palace located in North Bay Village. The high bid amount was $190,500.
Miami Condo Index – Brickell – September 2007
I received an email last week from a potential investor asking me if Miami is now safer than the “Miami Vice days” that he saw on TV. Indeed, the streets of Miami are much safer than they were 20 years ago, but the corruption that infested the city back then is still prevalent now.
Another month, another fraudulent transaction. I guess nobody cares. As I mentioned last month, the rumors are out there that a government agency is on the lookout for such activity but I’ve begun to lose hope that these rumors hold much water. If these rumors are true, then shame on them for allowing such activity to continue, and allowing the reputation of this city to be equated to that of which was prevalent in the 1980s. This past month, I’ve heard that an FBI agent is living at Vue at Brickell and Jade at Brickell Bay. I wouldn’t be surprised if one lives at The Club at Brickell Bay as well.
The continuance of fraudulent activity in Brickell has sickened me. The sooner that the Miami Herald, or some other major newspaper, goes public with this story, the better. The fraudulent activity just needs to stop. It is doing nobody any good to let the fraudulent activity prevail, except those who are facilitating it.
Sorry, but I just had to rant and rave for a moment. Now, back to our regularly scheduled program (but I’ll continue to rant and rave towards the end when I disclose the latest fraudulent transaction).
The average price per square foot of condos listed in the 18 Brickell buildings included in the Brickell Condo Index has dropped to $525.88 from last month’s average price per square foot of $529.05. The weight-adjusted average has also dropped to $530.15 versus last month’s weight-adjusted average price per square foot of $537.67. Both figures are below those that were calculated in July as well.
Average price per square foot of units currently listed on the MLS:
The average price of condos sold over the past six months has dropped to $467.47 per square foot versus last month’s figure of $471.94 per square foot. The weight-adjusted average has also dropped to $486.30 per square foot from last month’s weight-adjusted average of $498.36 per square foot. Much of the decrease is due to the a sizable drop in the averages at The Club at Brickell Bay and Vue at Brickell. Both buildings had fraudulent transactions that fell off the six month average.
The Sail at Brickell had yet another fraudulent transaction this past month. It was conducted by the same broker that conducted the fraudulent transaction at The Sail at Brickell that I spoke of in July. Once again, the broker acted as the listing agent and the selling agent. He must have some luck! He was also able to close the deal the same day that the deal went pending. Imagine that! This guy works miracles. He was able to sell a 2 bedroom/2 bath at The Sail on Brickell for $670,000. Well at least he was able to negotiate the price down $10,000 for his buyer. He has some smooth negotiating skills. He must also have some great persuasion skills because nobody in their right mind would pay $670,000 for a 2 bedroom at The Sail on Brickell.
Average price per square foot of condos sold in the past 6 months:
Solaris at Brickell – 186 SE 12 Ter | 33131 | $457.45
The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $660.39
The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $501.16
The Palace – 1541 Brickell Ave | 33129 | $363.32
Villa Regina – 1581 Brickell Ave | 33129 | $316.62
Vue at Brickell – 1250 S Miami Ave | 33131 | $464.83
This is the first month that a development has had a price per square foot under $300 for condos sold over the previous six months since I began this index. Atlantis on Brickell broke through this barrier with an average price per square foot of $298.11. This figure for Atlantis on Brickell will likely continue to decline as a bank-owned listing has remained on the market for quite some time and will likely sell for around $200 per square foot.
Below you will find the new statistics that I have included in this month’s Brickell Condo Index. The first number directly to the right of each development name represents the total number of active listings. The second number, in parentheses, is the number of currently listed condos expressed as a percentage of the total number of condos in the development. The third number represents the number of pending sales while the fourth is the number of closed sales within the past month.
Atlantis on Brickell – 13 (13.54%) | 1 | 1
Brickell on the River North– 59 (18.21%) | 4 | 0
Bristol Tower – 19 (12.93%) | 3 | 1
Emerald at Brickell – 34 (23.94%) | 1 | 0
Four Seasons Residences – 18 (6.67%) | 3 | 0
Imperial at Brickell – 15 (9.32%) | 2 | 0
Jade at Brickell Bay – 76 (23.31%) | 6 | 1
Neo Vertika – 78 (17.61%) | 7 | 0
One Miami – 165 (18.42%) | 6 | 2
Sail on Brickell – 64 (42.11%) | 2 | 1
Santa Maria – 10 (5.75%) | 1 | 1
Skyline on Brickell – 54 (15.00%) | 2 | 1
Solaris at Brickell – 21 (15.22%) | 2 | 1
The Club at Brickell Bay – 145 (22.55%) | 11 | 1
The Mark on Brickell – 43 (11.62%) | 0 | 1
The Palace – 25 (9.84%) | 1 | 0
Villa Regina – 20 (9.62%) | 0 | 0
Vue at Brickell – 62 (19.20%) | 1 | 0
Two numbers jumped out at me when reviewing this month’s findings: the 42.11% of available listings at The Sail on Brickell and the 11 pending sales at The Club at Brickell Bay.
I knew that prices were high and unjustified at The Sail on Brickell with mortgage fraud having much to do with it, but I never would have imagined that over 40 percent of the building would be available for sale. That’s incredible! However, a look at the current list prices should make those who have visited this building realize that the prices at The Sail on Brickell are ridiculous. Of the 18 buildings included in the Brickell Condo Index, I would rank The Sail at Brickell at the bottom. There are no views and the common areas and amenities are below Brickell standards. The developer, Renzi Development, recently announced that they plan to go forth with their Beacon at Brickell Village development. I sure hope they have second thoughts. The Sail on Brickell will eventually sell for around $250 per square foot (and that’s being generous). If I were a condo owner who is motivated to sell at The Sail on Brickell then I would be priced at the front of the large pack.
When I saw the 11 pending sales at The Club at Brickell Bay I was quite surprised. At first I thought it was my lack of REM sleep setting in. Once I realized that it wasn’t, I had to investigate further. What I found made this number a complete sham. Of the 11 pending sales, 9 of them have been pending since 2005 and 2006. What the….? It usually takes two months, maybe three months tops, to take a pending sale to the closing table. The other two pending sales have been pending since January and March of 2007. Something just isn’t right. Most likely the sales prices couldn’t be justified. Take 6 months, 12, months, 36 months and the prices still won’t be justified. These transactions should be reclassified as “hopeless” rather than pending. A 1 bedroom/1 bath at The Club at Brickell Bay will be going up for auction tomorrow, September 19, 2007 at 3pm. That will give everyone a good indication as to the fate of prices at The Club at Brickell Bay. You can be sure that I’ll report about it within the next couple of days.
So there you have it, that is the latest Brickell Condo Index. The good news is that there were 11 closed sales within the past month versus a total of eight closed sales the month prior to last. There were a total of nine closed sales the month prior to that.
There are a total of 42 pending sales disregarding the 11 at The Club at Brickell Bay since those have been discredited. As long as half of those transactions actually close, then there should be about 10-11 closed sales next month. I guess we’ll just have to wait and see. I’m praying that we won’t have another fraudulent transaction then. If we do, and you thought I ranted and raved now, just wait until next month.
Preparing for the Platinum Condominium Auction
As many of you already know, the Platinum Condominium auction will be held this Thursday, September 20, 2007 at 7pm. 20 of the developer’s unsold condo units will be auctioned with 8 of them being sold absolute to the highest bidder regardless of price. The auction will be held at the Miami Biscayne Marriott located at 1633 N Bayshore Drive.
Today, I attended the open house at Platinum Condominium to take another look at the building, and specifically the units that will be auctioned. For those of you unaware, the 20 condo units up for auction have been organized into the following three groups. The 8 absolute units are underlined.
Group A
Unit 1602 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 1802 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 2002 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 2102 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 1705 – 2 bedroom/2 bath – 1,142 total square feet – approx. monthly maintenance fee: $432
Unit 1905 – 2 bedroom/2 bath – 1,142 total square feet – approx. monthly maintenance fee: $432
Unit 1806 – 1 bedroom/1.5 bath – 988 total square feet – approx. monthly maintenance fee: $357
Unit PH-2206 – 1 bedroom/1.5 bath – 988 total square feet (11-foot ceilings) – approx. monthly maintenance fee: $357
The auction house may or may not start the auction with Group A. They may take a vote to see which group participants in the auction would like to see auctioned first. Once the first group is selected, bidding will begin and the highest bidder will select his/her preferred unit from within that group. If the unit is not an absolute unit then the developer will have an opportunity to decide whether or not he would like accept that bid. If the developer declines the offer, then the bidder can select a different unit from within that group or sit down and select nothing. If the developer accepts the offer, then the unit is scratched from the list and bidding will start again. The process will be repeated until all units within that group have either been auctioned or the bidding fails to reach an acceptable price by the developer for the remaining units.
Group B, in my opinion, has the best units and should be auctioned at the highest prices. Many would think that Group C would be auctioned highest because it has the only 3 bedroom units available. The views from these 3 bedroom units though are horrible. However, Group C has Loft 103 which is my favorite unit in the entire building. It is truly an amazing loft with its 27-foot ceilings. It doesn’t have much of a view but who cares. The auction participants who haven’t toured this unit will likely hold very little value in it because it is only a one bedroom. It’s a great sleeper pick.
Loft 107, in Group A, pales in comparison to Loft 103. It has 17-foot ceilings and the layout is just decent. There’s a reason why it’s an absolute unit. I definitely prefer the 02 line over the 06 line in Group A but Penthouse 2206 was nice because of the additional 2 feet in ceiling height. The 2 bedroom/2 baths in Group A should go highest, followed by the 02 line units and finally the 06 line units. Loft 107 likely will go somewhere in the middle.
There’s definitely a big difference in the 01 line and 07 line condos found in Group B. Not only does the 01 line have much better views but the layout is much better as well. The living room space in the 07 line was lacking to say the least. It was more like one big kitchen/dining room.
Every unit in the building comes with only one parking space. Each additional parking space will cost you $20,000. There is also an option to buy a storage space that is 23 feet x 38 feet for $5,000.
If you intend to bid at the auction, you will need to present a cashier’s check or certified funds in the amount of $10,000 made payable to Pardo & Gainsburg, LLP Trust on the day of the auction. All winning bids will be required to pay the balance of 10% of the total contract price on the day of the auction in the form of a personal or business check. A buyer’s premium of 10% will be added to the final bid price and included in the total contract price. Make sure you take the buyer’s premium into account when bidding. The balance of the purchase price is due at closing on or before Monday, October 22, 2007.
Additional Information
Pet Policy: Two pets allowed, not to weigh in excess of 50 pounds each
Rental Policy: Minimum of 6 months
Maintenance Fee Includes: Building insurance, water, sewer, garbage, 24-hour manned security, basic cable TV and use of the common areas and amenities
Contact me if you’d like me to register you or if you have any questions regarding the auction. I will be attending the auction and look forward to seeing many of you there. Good luck!
Highly Motivated Seller of Two Latitude on the River 2 bedroom/2.5 Bath Condos – $395,000!!!
The owner of two condos at Latitude on the River contacted me earlier this week. He is highly motivated to sell both of his 2 bedroom/2.5 bath condos and is willing to consider all reasonable offers. He has already closed on both of these B12 units and is willing to accept a loss on each of them.
One of the condos is located on the 17th floor while the other is located on the 20th floor. He went into contract on both of these units in Summer of 2005 but paid the original prices that were offered when sales were initially launched. The contract price on the condo located on the 17th floor was $455,000 while the one on the 20th floor was $461,000. His closing costs were approximately $10,000 for each unit. The slideshow below will show some pictures that I took of the unit on the 17th floor.
The unit on the 17th floor is listed at $459,000 which currently offers the best price per square foot of all 2 bedroom condos at Latitude on the River. There’s a two bedroom listed on the MLS for less but the square footage is inaccurate. The listing agent of that unit decided to include the terrace space as well. The interior space of that condo is actually only 1,179 square feet.
The amenities at Latitude on the River are highly impressive and is a huge selling point for this building. It has some of the best amenities that I’ve seen of the newer condo developments. At this price point, I haven’t seen any that match the quality of amenities that can be found at Latitude on the River. The lobby, landscaping and water features of the building are quite impressive as well.
2-story state-of-the-art fitness center and yoga room
4 high-speed elevators
If you’re in the market to buy a 2 bedroom/2.5 bath at Latitude on the River then this is your chance to score a great deal. Contact me today if you’d like to submit an offer on one or both of these condos.
Both of the units come decorator-ready with concrete floors. The following slideshow will show you a few pictures of a fully decorated unit so you can see what one of these can look like.
Update: This condo closed on December 27, 2008 for $546,000.
Corus Bank – One of the Many Publicly Owned Real Estate-Related Companies to See Trouble Ahead
In previous posts, I’ve revealed that Corus Bank is a prominent lender to condo developers in Miami Miami Beach. A recently published article by TheStreet.com entitled “Corus Swept Up in Florida Condo Undertow” may reveal that my analysis of Corus Bank was actually conservative. The article revealed that, for good reason, “55 percent of the stock’s float is being sold short, meaning that investors are betting on a decline in the stock’s value”.
Since August 4, 2007, when I mentioned Corus Bank (NASDAQ: CORS) in one of my posts, the stock has lost a little over 22 percent of its value. I am definitely not saying that I had anything to do with that. Much of the loss was due to two articles about Corus Bank that were written by TheStreet.com towards the end of August. People have begun to see that Corus Bank has troubled times ahead if condo developers in Miami and Miami Beach have difficulty closing on their units.
Recently, Corus Bank paid its shareholders a cash dividend of 25 cents per share. At first glance, this news may sound promising for Corus Bank since it shows that they have extra cash on-hand. However, my sources tell me otherwise. Joseph Glickman, Chairman of Corus Bank, and his family control about 50 percent of the company. The cash dividend may be a way of getting cash out of the company.
If Mr. Glickman and his family had confidence in the company’s future and felt that the stock was undervalued then they would instead use the company cash to buy back its own stock. The family would then control a larger stake in the company. Earlier this year, the board authorized a share repurchase program but they have yet to repurchase one share of stock.
My source has disclosed to me the following: “Years ago Corus used to include in their 10-K Annual Report an analysis of their loan losses should a serious real estate recession occur. 2004 was the last time they performed the analysis (by the way, interesting to note is that they stopped providing this disclosure to shareholders). You can find the one from 2004 here. Just go to page 70 of the Annual Report for the “Commercial Real Estate Risk” section. Back then they were estimating that they would incur $143M in loan losses from their $5.3B loan portfolio should such a serious real estate recession occur. Well, fast forward three years and their loan balance has grown to $8B for the most recent quarter (6/30/07). Applying the same ratio from the 2004 analysis, I estimate that their loan losses could exceed $200M today. That’s more than a quarter of their book value. Now of course this is all hypothetical. Corus did not disclose how they were arriving at those numbers, or how they were defining a ‘serious real estate recession’. It’s garbage-in garbage-out as they say, but at least the analysis they used to perform gives you some numbers you can work with. I honestly think it could be worse though.”
It will be interesting to see in the following 12-24 months where shares of Corus Bank will be given the large amount of money that they loaned to Miami and Miami Beach developers. The following is a list of the Miami and Miami Beach condo developments that they loaned money to, as well as the amount of each loan:
Emerald at Brickell 3 Bedroom/4.5 Bathroom Penthouse Looks Like a Steal
This past week I came across a 3 bedroom/4.5 bath Penthouse condo at Emerald at Brickell that is priced at $975,000. I had to do a double-take when I saw the listing because I know that the 2 bedroom residences at Emerald at Brickell are listed in the $900K’s to as high as $1.45M. The listing shows this 3 bedroom/4.5 bath condo as having 2,847 square feet of living space.
I believe there are only 4 Penthouse units at Emerald at Brickell. Currently, this is the only Penthouse condo that is available on the market at Emerald at Brickell. The Penthouse units have a spiral staircase which lead to the rooftop pool and fitness center. The views from the pool deck are the best that I have seen from the pool deck of a condo building in Miami. (Unfortunately, the picture below shows only a bit of how great the views are from the rooftop).
Penthouse condos are supposed to sell towards the high end of a building’s average price per square foot. The August Brickell Condo Index revealed that condos at Emerald at Brickell had an average list price of $535.01 per square foot while condos sold over the previous six months had an average price of $474.85. This 3 bedroom/4.5 bath condo at Emerald at Brickell is listed at $342.47 per square foot. This seems like a steal to me.
I haven’t been able to get a hold of the listing agent, however. The only contact number that accompanies the listing is that of his office. I’ve called and they have told me that he is out of the country and are not sure when he will return. The price may be a misprint but if it it is not, then I assure you that this is a fantastic deal.
A 3 bedroom/3.5 bath Penthouse sold for $1.25M in October of 2006. That unit has 3,098 square feet. That amounts to $403.49 per square foot. With the views that the penthouse units offer at Emerald at Brickell, I think anything under $1M is a bargain. This is an east-facing penthouse condo by the way.
Villa Regina – 3 Bedroom/2 Bath – Motivated to Sell Now!!!
A few days ago, I acquired a great listing for a 3 bedroom/2 bath condo with direct bay views from the 19th floor at Villa Regina. I normally don’t discuss my listings on this blog. However, due to the motivation of the seller, I decided that this could be a good opportunity for a buyer looking to buy a beautiful condo at Villa Regina at a great price.
The owners of the condo recently accepted a job offer in another state and need to sell right away. It would make their lives much easier knowing that their Miami residence is sold so they can concentrate on their new move. They are planning to relocate within 60 days.
The listing agreement was signed on Monday and I input it into the MLS later that night. We listed it for $685,000. At $685,000, the condo is well priced, given the competition in the building and the fact that the owner is willing to pay two years worth of monthly maintenance fees. This amounts to a savings of $27,134.40 over the following 24 months after closing. The next best priced condo in this line is priced at $699,000 and is located 11 floors below the condo that I have listed. That unit did not convert its space to three bedrooms, nor does it offer any type of buyer incentive.
Okay, okay…so a $14,000 ($41,134.40 with the two years worth of monthly maintenance fees paid) difference in price doesn’t make for an outstanding deal. How would it sound though if a buyer could acquire this property for $600,000 even? Sound more enticing? The owners are so motivated to have their condo under contract within the next 30 days that they are willing to accept an offer that would net them $600,000 before, not after, commissions.
This newly listed condo at Villa Regina has 1,895 square feet of interior space and two large balconies. It was formerly a 2 bedroom/2 bath but was converted by the current owners to a 3 bedroom soon after they purchased the condo in 2002. It is the only currently listed condo at Villa Regina to be converted into a 3 bedroom. I’ve seen a lot of condos at Villa Regina and this one is a fantastic buy. The condo has hard wood floors throughout all living areas except both bathrooms and the master bedroom. Both bathrooms have marble flooring while the master bedroom has Berber carpet. The condo also have a dry bar with wine cooler, upgraded kitchen cabinetry and appliances, upgraded washer/dryer and upgraded master bath and second bath. The furniture that currently resides in the condo is negotiable.
I received a phone call from a local Realtor Tuesday evening to find out if she could show the condo Wednesday at 5pm. She doesn’t know that my client is motivated to the point to accept a $600,000 offer. The fact that I received a showing appointment within 24 hours of it being listed at $685,000 goes to show me that the condo is well priced. At $600,00, it is priced phenomenally.
My clients hope to have their condo under contract within the next 30 days. For that peace of mind, they are willing to accept a much lower price. They realize that an executed contract normally takes 30-60 days to close so they are only willing accept a $600,000 offer if it is presented within the next 30 days.
Villa Regina recently had a special assessment to modernize its lobby, hallways, marina, fitness center, club room and landscaping. The special assessment has been paid in full by the current owner.
I am encouraging all buyers who have an interest in purchasing a 3 bedroom on Brickell Avenue to take a look at this condo. I dare you to find a better 3 bedroom condo in a building that resides on Brickell Avenue for $600,000 or less. I constantly search the MLS for great deals and I just don’t think you’ll find a better deal. Contact me if you would like to take a look at this condo in person.
Neo Vertika 2 Bedroom + Den on the 29th Floor – $303,000
Two Mondays ago I reported that a 2 bedroom + den loft at Neo Vertika went up for auction. The auction had a dismal turnout and the highest bid was quickly rejected by the bank.
Since that time I have submitted two offers to the bank. The bank has recently stated that they would accept an offer of $303,000 if the closing can happen by September 20, 2007. They want absolutely no contingencies, such as financing or inspections. The unit has never been lived in and comes “decorator-ready”.
The loft faces south and has views of the bay and overlooks the swimming pool. The unit is on the 29th and 30th floors and has 1,255 square feet of interior space as well as a large balcony off the main floor. It has 20-foot ceilings and comes with the upgraded stainless-steel appliance package.
The lowest that a 2 bedroom at Neo Vertika of this size has sold for in 2007 is $400,000. If you, or anyone you know, would like to make an offer then please contact me. A pre-approval letter must accompany the offer.
