Marina Blue – Closings to Begin Towards the End of September 2007
I was notified today that closings at Marina Blue are scheduled to begin towards the end of September. Marina Blue is a 60-story luxury high-rise building going up in the neighborhood known as Park West. The fantastic thing about Marina Blue is that every unit has a beautiful view of Biscayne Bay.
As closing dates approach, there are some great opportunities to own a condo at Marina Blue. As in other developments, there are investors who purchased condos at Marina Blue in hopes to flip them prior to closing. As everyone knows, the market has changed dramatically in the past two years and many of these speculators are content to accept a loss on their deposit to avoid having to close.
I received a phone call last weekend from someone who placed a one bedroom condo under contract at Marina Blue for $296,000 as a resale. The condo is on the 15th floor and has 845 square feet of interior space. He was still in his 15-day rescission period and wanted to know if I felt that he got a good price. I told him that he got a great price. In my opinion, anything under $300,000 is a solid buy at Marina Blue. The long-term prospects for that neighborhood are great. I feel that one bedroom condos at Marina Blue will easily rent for $1,700 per month.
Currently, there’s a one bedroom for sale at Marina Blue that is on the 17th floor. It is listed at $320,000. The condo has 845 square feet. I think this unit can be acquired for under $300,000.
There’s also a 2 bedroom at Marina Blue on the 9th floor that is listed for $455,000. This condo has 1,327 square feet of interior space. If you can get this condo for around $430,000 then I think that your long-term prospects are bright.
In the upcoming years, I feel that Park West will be the best condo neighborhood in all of Miami. It was developed to be Miami’s equivalent to Manhattan’s Park Avenue.
At the beginning of July, I published a post about the neighborhood of Park West and the four luxury high-rise buildings being developed in that neighborhood. The post was entitled “Pictorial & Video Review of The Fantastic Four in Miami“. Take a look at that post for more information about the Downtown Miami neighborhood of Park West and what it has to offer. You will also see some pictures and a video of Marina Blue as it stood towards the beginning of July.
Miami Condo Auction – Platinum Condominium – 20 Units Up for Auction in September
I was notified tonight that twenty condo units at Platinum Condominium will be auctioned off on September 20, 2007. Eight of those units will be auctioned “absolute”. This means that the condo(s) will be sold to the highest bidder. There are no minimums and no reserves.
This is major news! The 20 units up for auction at Platinum Condominium represent 16.8% of the overall units in the building. The are a total of 119 units in the building with 7 units per floor. I think 20%-30% default rates in other developments is not out of the question.
A few months ago, after Platinum Condominium began closings, I did a pictorial and video review of the building. You can view it by clicking on the following link: pictorial and video review of Platinum Condominium. Any information that you seek regarding this development will be found there. If for some chance, you have a question that isn’t answered there, then feel free to contact me.
For you Miami condo vultures, this might be a great opportunity to own a bulk of units at a really good price. If they can be acquired at a good price, you may even be able to rent them out with positive cash flow until the neighborhood turns around and sell them for a nice profit.
Those looking to buy a single condo at an auction at a good price, this may be your opportunity. I am very knowledgeable in the various floor plans at Platinum Condominium. My services are available to you to act as your representative at the auction. I will be attending the auction regardless. I will act in your best interests. If I walk out of that auction without one of my clients acquiring one condo then you can be assured that the prices offered were too high. I am completely comfortable walking away from that auction without one sale being made. The people who know me well know that I am not a tough or pushy salesman.
There’s a 2 bedroom/2 bathroom condo foreclosure at Courvoisier Courts in Brickell Key that is listed for $449,900. The condo has 1,288 square feet of living space. It also comes with two assigned parking spaces.
I took a look at the unit tonight for an interested client. It is in tip-top condition. The living room has large tiled floors and the bedrooms have brand new carpeting.
The bank’s judgment against the previous owner was for $444,748.00. The condo was foreclosed on June 28, 2007.
The lowest that a 2/2 has sold for at Courvoisier Courts in the past six months is $475,000. That was for an 05 line on the 17th floor. There were also two other 2/2 units that closed within that time frame. Those closed for $540,000 and $555,000. An 06 line unit on the 24th floor sold for $555,000 on June 28, 2007.
The unit doesn’t have a water view though since it is only on the fifth floor. It is an 06 line. The other 06 lines have a partial water view at best though since they face northeast and have obstructed views by other developments. The balcony was pretty large and deeper than most units I’ve seen at Courvoisier Courts.
Brickell Key is one of the most exclusive neighborhoods in Miami. I think getting this condo for $419,000, or $325 per square foot is a solid buy. The July Brickell Key Condo Index revealed that the average price per square foot of condos listed at Courvoisier Courts was $482.45. The average price per square foot of condos sold in the past six months at Courvoisier Courts was $415.01. Most units at Courvoisier Courts come with carpeting throughout, as they were delivered when the building was converted into condos. As mentioned before, this unit has tiled floors in the living room and carpeting in the bedrooms.
Courvoisier Courts was built in 1997. Courvoisier Courts offers fantastic amenities which include: full-service concierge, 24-hour security, fully equipped business center, bi-level fitness center, racquetball/squash courts, bayside swimming pool and sundeck, club room with billiards table, theater room, and valet parking. Courvoisier Courts has a total of 272 condo units in the building.
This is a great opportunity to own a 2 bedroom at Courvoisier Courts for over 20% less than what 2 bedrooms have sold for at Courvoisier Courts in the past six months.
Miami Condo Index – Brickell Key – July 2007
This is the second installment of the Brickell Key Condo Index. The data was collected on July 27, 2007. Overall, list prices declined about .82% in the past month for condos listed in Brickell Key. The average price per square foot in June for condos listed was $519.97 versus an average price per square foot of $515.71 for the month of July. The weighted-average price square foot in June was $513.19 versus $510.83 this month. Each building in the index, except Brickell Key One and Two Tequesta, had a decrease in their average price per square foot over the past month.
The average price per square foot of condo units sold in the past six months was $442.69. This is compared to an average price per square foot of $445.59 for condos sold over the preceding six months in June. Prices went down about .65% in Brickell Key in one month’s time. The weighted-average price per square foot for condos sold in the past six months in Brickell Key was $439.02. This compares to a weight-adjusted average of $441.05 in June.
Isola – 770 Claughton Island Drive | 33131 | $465.90
One Tequesta Point – 888 Brickell Key Drive | 33131 | $444.10
St. Louis – 800 Claughton Island Drive | 33131 | $466.15
Three Tequesta Point – 848 Brickell Key Drive | 33131 | $480.92
Two Tequesta Point – 808 Brickell Key Drive | 33131 | $431.99
The sold-to-listed ratio, expressed as a percentage, of each building is found below. Overall, the average Brickell Key condo this month is listed 16.39% above what closed sales have dictated. The weighted-average reveals that the typical Brickell Key condo is listed 20.63% above average closed sales. Both of these numbers are down from last month.
Isola – 770 Claughton Island Drive | 33131 | 13.92%
One Tequesta Point – 888 Brickell Key Drive | 33131 | 9.07%
St. Louis – 800 Claughton Island Drive | 33131 | 13.82%
Three Tequesta Point – 848 Brickell Key Drive | 33131 | 19.05%
Two Tequesta Point – 808 Brickell Key Drive | 33131 | 37.61%
There were a total of 10 closed sales in Brickell Key since the June numbers were released. This is one more transaction that occurred in one month’s time than in the 18 buildings that are represented in the Brickell Condo Index. The 10 buildings that compose the Brickell Key Condo Index have a total of 2,816 condos versus the 5,349 condo units represented in the Brickell Condo Index.
I feel that there is going to be far more stability in Brickell Key than in Brickell. Clients that I have been working with are much more comfortable looking at properties in Brickell Key. Prices are more reasonable, the neighborhood offers a sense of exclusivity and every building in Brickell Key is waterfront.
1/1.5 @ Ten Museum Park for $310,000 – Reduced Again!
Someone contacted me last week to see if I could help them find a buyer for their 1 bedroom/1.5 bath condo at Ten Museum Park. He is perfectly able to close but would rather sell it to an end-user than carry it for a while. If he closes on the unit though then he will end up holding onto it. His closing date is approximately 30 days from now but he thinks that he could have it extended if an interested buyer surfaces.
His condo has 886 square feet of interior space and a 143 square foot terrace. It is an “05” line. The floor plan is below.
As of now, the best priced “05” line available on the MLS through the developer is priced at $400,000. Here is your opportunity to buy at Ten Museum Park for much less. Make an offer today!
Advice to Miami Condo Sellers
I mentioned last week in the July Brickell condo index that only 9 closed condo sales occurred from June 19, 2007 to July 18, 2007, in the 18 buildings that comprise the Brickell Condo Index. A question was left for me in the comments section of the post about whether I felt that the lack of sales activity was a reflection of an overpriced condo market in Miami. A great conversation enfolded and I wanted to expand on that conversation with a post that will hopefully find its way to condo sellers throughout Miami.
In a nutshell, yes, prices do need to come in significantly in order for buyers to be enticed to buy. There are a lot of “motivated” condo sellers right now who have their units listed with a Realtor who are having a very difficult time selling their condo. However, sellers need to realize that their situation will become progressively worse as time goes by and more condo units come onto the market throughout the overdeveloped areas of Miami that stretch from Brickell to the Arts District. Your condition can easily turn from “motivated” to “desperate” within a six month time period.
I will let the numbers do the talking. Within the next 7 months there will be five new condo developments that will be completed in Brickell. These five developments are: 500 Brickell (633 units), The Plaza on Brickell (1,000 units), 1060 Brickell (582 units), Brickell on the River South (322 units) and Latitude on the River (455 units). These five condo developments will bring 2,992 new condo units to the Brickell condo market within 7 months. 12 months after that, another four developments will be completed in Brickell. These developments are: Infinity (459 units), Axis (718 units), Icon Brickell (1,816 units) and Epic Miami (966 units). These four developments will add another 3,959 new condo units to the Brickell condo market. That is a total of 6,951 new condo units within 19 months from now.
Over 6,900 new condo units within the next 19 months in Brickell! If this sentence alone doesn’t make a seller see the light then maybe the following sentences will. The Brickell condo index is currently comprised of 18 condo buildings throughout Brickell which consists of a total of 5,348 condo units. This means that within 19 months we’ll see a 130% increase in the number of units that comprise the index. The total number of condo units represented in the Brickell condo index will increase from 5,348 condo units to 12,299 condo units within a 19 month period.
That is just within Brickell. Include the developments below that are within 4 miles north of the southern tip of Brickell and conditions become far worse. These developments should be completed within the same time period. A few of these buildings such as Onyx on the Bay, Platinum Condos, Midtown 2 and Ten Museum Park have already begun closings. The 23 buildings below will add another 9,119 new condo units residing within 4 miles of Brickell within the next 19 months.
This means that within the next 19 months there will a total of 16,070 new condo units that will come onto the market in the neighborhoods of Brickell, Brickell Key, Downtown Miami, Park West and the Performing Arts District. The bulk of the problems will be in Brickell, Downtown Miami, Park West and the Performing Arts District since Brickell Key will only add 123 units once Asia is built.
Let’s assume that 30% of the condo units in the five new developments that will be completed in Brickell within the next 7 months were purchased by speculators. That is a very conservative number. I have heard people suggest that this number could be as high as 70%. Let’s use 30% though to illustrate a point in a conservative manner. That means that of the 2,992 new condo units to come onto the market in Brickell, 898 of these will be listed for sale. As I mentioned at the beginning of this post, there were a total of 9 closed condo sales that occurred in Brickell from June 19, 2007 to July 18, 2007. This means that if market conditions remain the same, and this absorption rate continues, then it will take 100 months, or 8.33 years to absorb the new inventory in Brickell. This doesn’t take into account the existing inventory of 1,550 condo units on the market at this time in Brickell. It also only includes those units in Brickell that will be completed within the next 7 months, not the units scheduled for completion 12 months after. Nor does it take into account the negative impact that the units scheduled for completion in Brickell Key, Downtown Miami, Park West and the Performing Arts District will have on the condo inventory in Brickell.
My advice to condo owners who NEED to sell is to get out now! Today, Barbara Corcoran was on the Today Show and suggested that people who need to sell now should be priced 5% below the currently best priced property in the neighborhood. She was speaking about homes and the national real estate market, but I think that this advice is a great start for condo owners in Miami. To illustrate, last week, two days after our office held an Open House/Wine Tasting at The Imperial at Brickell, a pending contract resulted on one of the three bedroom units that were showcased. It was the best priced three bedroom in the building and was the nicest as well. By the way, for those of you who haven’t heard of Barbara Corcoran before, she is often referred to as “The Queen of Real Estate”. She is a Realtor in New York who has had tremendous success and has been asked to appear on many nationally televised segments for her invaluable insight.
Sellers may not like the idea of discounting the price of their condo to 95% of the best priced unit currently listed in the building. However, they will like the alternative scenario even less if they don’t. Keep in mind that once the new condo units come onto the market, you’ll end up lowering your price to that level anyways. But at that time, you will be priced in the middle of the pack rather than at the front.
If you are a truly motivated seller, who doesn’t have an exclusive listing agreement with another Miami Realtor, and want to sell your condo before the worst begins, then contact me today so we can devise a plan to get you out of this mess before condo inventories in Miami reach nightmare proportions.
Short-Sale at One Miami – 1 Bedroom/1Bath for $275K !!!
There’s a 1 bedroom/1 bath short-sale at One Miami that was reduced $44,900 today. It is now listed at $275,000 and has 846 square feet of living space. That’s a great deal! The unit is now listed at $325 per square foot. The Brickell condo index for July revealed that the average price per square foot of units sold at One Miami over the last six months is $453.66. There have been 8 one bedroom/one bath units that have closed at One Miami in the past six months. They have sold in the range of $349,000 to $430,000. Like I said, this is a great deal! Prices for one bedroom units at One Miami have come in significantly in recent months but this short-sale unit is the best priced of them all.
The unit comes with one assigned parking space and one complimentary valet space. Amenities at One Miami include: two swimming pools and hot tub, two clubs rooms, two fitness centers, business center, 24-hour security/concierge and valet parking. The maintenance fee is $389 per month. High-speed Internet, basic cable TV, water, sewer and garbage are included in the maintenance fee as well.
Take a look at the MLS listing for more information.
Miami Condo Foreclosures – Search Engine Results
I’m an avid reader of anything to do with search engine optimization (SEO). The algorithms involved in producing search engine result pages (SERPs) fascinates me. I haven’t hired any outside companies to do any of the SEO work for my site. My blog has done the work for me. I began my blog a little over three months ago and the results that it has produced with the search engines in that short time span is amazing.
If you type in “Miami Condo Foreclosures” into Yahoo my sites appear as the first, second, fourth and eighth results on the first page.
The results on Google aren’t as great but they still drive a lot of traffic to my blog. You will find my site by clicking on the fourth, sixth, eighth and ninth links on the first page of Google when typing in “Miami Condo Foreclosures“.
Surprisingly, the search results for “South Beach Condo Foreclosures” on Google is much better. I know that there is a lot of weight placed on keywords used in the URL, and “South Beach” doesn’t appear in my URL. So, I was shocked that “South Beach Condo Foreclosures” would have my site ranked higher than “Miami Condo Foreclosures” since keywords such as “Miami” and “Condo” appear in my URL. This is probably due to the fact that the keyword “Miami” has more competition than the search term “South Beach”. You will be led to my site by clicking on the first, second, fourth, and fifth links that appear on the first Google result page after typing in “South Beach Condo Foreclosures”.
After this post, I’m sure that my site will hold even more relevance to the search terms cited above so you’ll probably find that my site appears even higher in the rankings than what I’ve noted.
Miami Condo Index – Brickell – July 2007
You may have noticed that some of the June numbers have changed. This is because I originally took out the closed sales that were obviously due to mortgage fraud. I recently went back and included those sales because I wanted to present things just as they were. However, this made listings appear to be priced more accurately, which they aren’t. To condo owners, and to some Realtors not in the know, these fraudulent transactions have made their listings appear justified. They need to realize that these transactions are just that, fraudulent, and very inaccurate.
The average price per square foot of condo units listed in the 18 Brickell buildings covered in my index dropped $7.44 since last month. A drop in the price of condos listed in Brickell over the last month was highly expected. I actually thought that prices would have come down even more though. These 18 buildings in Brickell had an average price per square foot of $528.84 this month versus $536.28 in June. The weighted average price per square foot was $540.17 for July versus $547.06 in June.
The most shocking thing that the July Brickell condo index revealed was the number of transactions that occurred in one month’s time. There are a total of 5,348 condo units represented in the 18 buildings that comprise my Brickell condo index. Take a guess at how many units have closed from June 19, 2007 to July 18, 2007.
Had enough time to come up with a guesstimate? Nine. That’s the number of units that sold during that time period throughout the 18 buildings that make up the Brickell condo index. Everyone knows the market is slow but I don’t think anyone could have guessed to what extent. Nine! I still can’t get that out of my head. There are a total of 875 units available on the market right now in those 18 buildings. This equates to 16.36 percent of the total units. This number is actually much higher in many of the newer buildings. Many of the older buildings have 20 or less listings in the entire building. The instability lies in the newer buildings; the buildings that were heavily funded by speculators.
The average price per square foot of condos sold over the past six months in Brickell actually went up slightly. But keep in mind that there were nine transactions in all 18 buildings. Most Realtors would focus on the fact that prices are actually going up. However, I will tell you, first hand, that these numbers are attributed to fraudulent transactions. The price per square foot went from $471.76, in June, to $473.95, in July. Most of this was due to a transaction that appears to be fraudulent at The Sail on Brickell.
The reason why I feel that this transaction is fraudulent is for a number of reasons. One, the unit was sold at the highest price per square foot in the building with concrete floors, two, the broker is a discount broker who charges 4 percent per transaction, three, in every transaction he seems to find the buyer and already holds the listing, and four, he finds the buyer within four days. I did a search by the broker’s email to see what other transactions have occurred. I’m not going to name names but let’s just say that this broker has at least six transactions where this has occurred. The same exact thing. He finds a buyer to acquire a condo at The Sail on Brickell within four days at the highest price possible. Let me tell you, firsthand as a Realtor, that it is hard enough to find a buyer in this market to buy something at the best price available. How is this guy finding a buyer at the highest price available? Within 4 days? Like I said, I’m not going to name names but something fishy is going on there. If someone, like the Miami Herald, wants to investigate this thoroughly and name me as the source, then so be it, but I’m not divulging names. I don’t want to have a hit-man after me. Hopefully I’m wrong about what has occurred in The Sail at Brickell, but I doubt it.
Average price per square foot of units currently listed on the MLS:
