Hyde Midtown Is 80% Sold And Has Topped Off

The Related Group, Dezer Development and Moss Construction celebrated their topping off of Hyde Midtown Suites and Residences with a string of parties and construction tours. We were lucky enough to be invited to preview the views and finishes of the project, which is now 80% sold.

The remaining inventory is all in the residences section, the 60 suites have already sold, as did the hotel. The prices start at $435,000 for a 779 square foot 1 bedroom with 1.5 baths and a view of Wynwood. A 1 bedroom with a den is $460,000 and 2 bedrooms start at $540,000. There are four remaining penthouses ranging from $735,000 up to $2,035,000.

During the tour, the hotel, lobby and amenity deck are all very much still construction sites. Some of the apartments and suites already had the kitchens installed, so we were able to preview those. They’re coming out very nice!

When finished, the amenities will include a tennis court, putting green, flow-through infinity edge pool, dog park. The Related Group’s President of the Condo Division, Carlos Rosso, said that the plans for a children’s playground were removed and jokingly announced that they had added a modeling agency. There are already several modeling agencies in Midtown, so I wouldn’t be surprised if that ended up coming true, even if he was joking with the announcement.

They also had celebrations for the 400+ construction workers who contributed to the building and will be having another event for the agents who have sold there. Carlos Rosso said, “This milestone gets us one step closer to delivering the Hyde lifestyle to Midtown Miami. The property offers everything that today’s buyers are looking for. Its unrivaled list of amenities, chic design by David Rockwell and enviable central location all add to what makes this development stand out from the rest.”

Here is a preview of what we saw. The building is on schedule to open in October of this year.

Kitchen Finishes

East View

Northeast View

Southeast View

South View

Amenity Deck

The rooftop palm tree, celebrating a successful top-off

Thank you, Carlos for the tour!

Midtown 2 Loft Sells For $260/square foot – The Lowest Price Per Foot Since 2013

After 11 months and 3 weeks on the market and an almost 20% discount, a buyer has found a bargain in this enormous loft unit at Midtown 2. The buyer was able to snap up the property for a record amount of $1,425,000, which works out to $260/square foot. It had also been available as a rental for $9,500/month.

The last time an apartment at Midtown 2 sold for such a low price per square foot was way back in 2013. That sale was also a loft unit, albeit smaller. It was Unit L61, a 1,410 square foot loft that sold for $212/foot. According to our Midtown 2 Sales Stats page, the average sales price per square foot has held pretty steadily around $420-$425/square over the last 2 years.

Despite the low sales price, the seller still did quite well in the transaction. They had purchased the unit back in 2012 as a part of a bulk sale for $800,000. The property is a beautifully redesigned 4 bedroom with 3.5 baths, 30 foot ceilings and over 5,400 square feet of living area! Full disclosure, you can see in the MLS photos that the construction of Hyde Midtown is partially obstructing the view, but this is part of city life.

With the new wave of inventory coming up over the next year, how much more do you think prices will be affected in Midtown?

Miami’s Rental Market Is In Decline, About To Be Flooded. What Does This Mean For You?

The rental market in the Downtown Miami area is in for a jolt, according to an inventory report from the Downtown Development Authority. Many people expected that rental prices would begin to decline in 2017 as the new luxury condo buildings begin to open. As of the third quarter of 2016, the prices were already beginning to decline after buildings such as The Bond at Brickell and SLS Brickell began to open, flooding the market with new options for prospective tenants.

What many people did not see was the influx of new rental buildings that are going to start being delivered in 2017. A few have already come to market, but 2017 promises a whole new array of choices for tenants. Landlords are fervently trying to keep their tenants if leases are coming up for renewal, but many of the options are too good to pass up. In 2016, we saw 3,748 new condo units come to the market and 1,038 additional units in rental-only buildings. 2017 will flip that number, with 2,774 new condo options and 3,575 new units in rental-only buildings.

What to do if you are a tenant?

Don’t be greedy. While the market is in decline, the condos for rent in Miami are not going to rent for fire-sale prices. Yes, you may have more leeway in negotiation than once before with condo units, rental-only buildings typically do not negotiate their prices. Rather, they are pre-set at the beginning of each day based upon an algorithm in their computer software.

A quick move-in is worth a lot. If you can offer to move-in as quickly as possible, you will have more negotiation power than if you are shopping several months in advance. I always say that the sweet spot between the contract date and the move-in date is 3 weeks. That gives everyone enough time to get their paperwork together and applications completed. Building applications commonly take 2 full weeks in condo developments. Rental-only developments are commonly quicker, so are a good option if you get in a pinch and need to move even more quickly.

Have ONE agent to represent you. Make sure that person is someone who is well-informed about the market and what is available. That will prevent you from drowning yourself in options and becoming frustrated. Be open with your agent about what features you like and what features you are disinterested in. Let your agent take you to rental developments as well. Many times, we know ahead of time what the availability and rough price ranges are at the rental developments.

What to do if you are a landlord?

If you currently have a good tenant, entice them to stay and treat them well.

Don’t panic, but understand the monetary value of each month of vacancy. Price your available rental on the market as quickly as possible and with a firm that will give you the most exposure.

When reviewing offers, consider reductions based upon the risk of a full month of vacancy rather than holding onto the idea that your condo will earn as much this year as it did in years past. It won’t.  If you have a unit that was previously earning $3,000/month and you receive a quick-move in offer for $2,750/month, it would be a good business decision to accept. Otherwise, you could be stuck accepting far less in contract value on top of the $3,000 expense of having the unit vacant for a month.

Negotiate with people who lowball. Run your numbers and decide what is the lowest price you can accept based upon available options for the tenant and the amount of vacancy that you are already into. Not that you will always have to accept that lowest price, but you know how much room you really have for negotiation.

Remember that just like market storms that we have weathered in the past, this one will blow over. The condos will still be beautiful and in-demand afterward. If you need to sell, then sell. Otherwise just be patient until the inventory is absorbed.

Midtown 5 Opening January 1

Magellan Development is preparing to open their newest rental building, Midtown 5, in early January. In order to guarantee a quick lease-up, they are offering a host of perks to the first tenants of the development.

The first tenants of the building will receive 1 month of free rent, and those with good applications (qualifying income and high credit scores) will be able to move in with a $500 security deposit. Pets up to 60 pounds are welcome with a $500 pet fee, payable to the building. This is an amazing deal compared to the condo rentals that are being offered nearby! In order to rent a condo, tenants are required to pay first month rent, last month and security deposit to the owner, on top of a security deposit and associated move-in fees to the building! That amount often adds up to well over 4 times the agreed-upon monthly rental rate.

Midtown 5 has 400 apartments that range from 538 square foot studios up to 1,501 square foot three bedroom options. The prices vary based upon availability and change daily, so we are happy to provide more information to you on a case by case basis if you are interested.

The building will offer a heated lap pool, fitness center with crossfit station, children’s play area, meditation garden, bike storage area with wash and repair station, an off-leash dog park, indoor pet gameroom with grooming station, a rewards program for discounts at nearby shops and restaurants and full concierge services. The apartments will be outfitted with modern finishes including keyless entry, usb ports for easier device charging and smart thermostats.

As of now, the first two weeks of January are booked for move-ins, but lease starting dates are available from January 15 for lower-floor options all the way to March 1 for penthouse units.

Hyde Midtown Offers Free HOA For First Year & Flexible Deposit Structure

Going into the holidays, the developers of Hyde Midtown are looking for new ways to close out the last of their inventory. They are currently 78% sold with a nice selection of available apartments and the construction is on the 25th floor.

For a limited time, they are offering to cover the first year of HOA payments for new buyers.  The way they typically apply the promotion is to give a credit at closing in order to avoid confusion with the HOA after the association has been turned over to the homeowners.

Since the building is nearing top off, the developer is now able to offer a more flexible deposit structure. Rather than the typical 50% required before closing, they are now able to accept 30% if the buyer prefers.

Of the remaining 90 or so apartments, they have prices starting as follows:

• 1 bedrooms from $435,000
• 1 bedrooms plus den from $490,000
• 2 bedrooms from $538,000
• 2 bedrooms plus den from $643,000
• 3 bedrooms from $859,000
• Penthouses start at $735,000

Congress Unanimously Agrees To Make FHA Financing Easier For Condo Buyers

In a rare moment of solidarity, Congress unanimously agreed to pass the proposed changes to the FHA approval guidelines for condo purchases, opening the way for middle-income buyers to participate in the condo market once more.

Over recent years, the FHA has imposed nearly impossible guidelines for condo purchases that have left a large segment of buyers out of the market, particularly first time homebuyers. The problem has been that in order to secure an FHA loan for a property, the buyers must qualify (relatively easy), AND the building must qualify (almost impossible). The approval process was expensive and the costs were not refunded in the event that the project was rejected. The approvals had to be renewed every couple of years as well. Most condo associations opted to forego the application and just not have FHA as an option for purchasers in the building. With the new guidelines, the projects no longer need to go through the approval process. Buyers can now apply for a spot-approval on individual units and the owner-occupant vs investor ratios have been lowered. Bravo!

This is going to be a big help for actual residents of the Downtown Miami area who are ready to buy a condo, but maybe don’t have the 20%-35% down payment that is currently required to buy a property. You can read more about the new guidelines here.

FHA Proposes New Approval Process That Helps People Get Condo Loans

Condo shoppers rejoice! The FHA (Federal Housing Administration) is proposing changes to their condo approval process that could really benefit South Florida shoppers.

Up until now, if a person wanted to buy a condo in the Downtown Miami, Brickell, Midtown, or Miami Beach areas with an FHA loan, their choices would be to buy at Brickell on the River’s south tower, Brickell on the River’s south tower, or Brickell on the River’s south tower. That is not a typo, the only approved condo project in our area is Brickell on the River. The entire project isn’t even approved, just the south tower. 1800 Club was approved in 2012, but that expired in 2014 and wasn’t renewed. In my experience, whenever I have a buyer who is looking to use an FHA loan, I always tell them that they need to purchase a house, not a condo. Condo FHA loans are almost impossible.

The problem is that in order to offer FHA loans on the properties in the various condos, the entire building has to undergo an application process with FHA. This isn’t cost effective for developers because they have typically already sold their units prior to the building’s opening. Established condos would have to undergo the expense of the application, which is another expense for the condo association to pay. Those buildings that do go for the application typically get rejected because of the number of owner-occupants in the building. Let’s face it, a lot of the residents in our towers are vacation homes, rental units, or a combination of the two.

Well today is a new day. The FHA has realized that it is extremely difficult to use their loans in condos and are proposing to change their ways. They are proposing to lower the minimum owner-occupancy requirements to 25%-75% and allow single-unit spot approvals.

What this means is that instead of having to qualify the entire building, you could get an FHA loan on a single condo as long as their building information matches the requirements of FHA (which would now be far more lenient). Since FHA loans are designed for people who are responsible homebuyers but may not have a huge down payment or fully-established credit, these buyers have been left out of the Downtown Miami market, which is in need of new buyers now. Let’s hope and pray that this goes through! It would be amazing to see more homeowners in the downtown area!

If you would like to read the entire proposed rule, you can find it here.

Hyde Midtown Tears Down Their Sales Office

Hyde Midtown Sales Office by Hyde Midtown Instagram

It’s not what you think. After almost exactly one year of construction, the Hyde Midtown sales office has been torn down in order to make way for the building that is already 1/3 finished. The sales office is being relocated around the corner until completion.

The project is steaming along at a great pace, around 1 floor per week. They are 77% sold, but still have a good collection of apartments available in all different sizes. Prices start at $446/ft and penthouses start at $734,900. The penthouses of the 31 story tower will include rooftop patios with amazing views and a great price. Have a look here for more photos.

Almost 40% of Downtown Miami Residents Have Pets – Strategies for Investors and Tenants

The Downtown Miami DDA (Downtown Development Authority) released its updated demographics study today, and they found that 39% of Downtown Miami households include a pet. This is interesting because so many of the developments impose strict pet policies upon their residents. Some only allow certain sizes of pets, some only cats, some only allow pets for unit owners and some say no pets at all.

This is always a touchy subject when we are working with a client who has a pet. There is so much misinformation out there regarding which buildings do and do not welcome pets. If a resident gets caught with an unauthorized pet, they are forced with the difficult choice of paying a lease cancellation fee (which is typically the value of 2 months’ rent), or re-homing their beloved pet. Unfortunately, not all agents verify the pet policies before entering into a contract, which wastes time and gets the client all excited about an apartment that they cannot have. No bueno.

I even once had a client who cheated on me with another agent that had told them they could have a large pet in a pet-restricted building. That is completely irresponsible and self-serving of that agent. Thank goodness, the clients realized what would happen if they went forward with that deal. The agent would have been paid and then they would have either had to break their lease or part with their dog. That is a horrible choice to have to make when most people consider their pets as members of the family.

In order to have an authorized pet in the building, many associations require an additional registration and application. The pet’s weight is verified (many times with a report from the veterinarian), their vaccinations are verified and some buildings even take it a step further. Infinity at Brickell requires a DNA sample to be placed on file and in the event that messes are found in the lobby, the mess is sent in for a DNA match. The resident that pops up after the DNA test is issued a fine. I call it Maury Povich enforcement… but it works. If people know they’re going to get busted breaking the rules, they’ll be less likely to do so. This way, the building can continue to allow large pets for everyone.

Over recent years, a popular workaround to the ‘No Pets’ buildings has become all the rage. There are websites where you can claim that you need a therapy dog. They’ll issue you a certificate for a fee and, viola! Your dog can go with you everywhere and nobody can say anything… except the condo associations have started to get wise of this ruse. The Jade at Brickell verifies these Therapy Dog certificates through an attorney. It takes an extra few days during the application process and you don’t get your application fees back if you get caught with a phony form. I don’t recommend the fake therapy dog stunt.

If you are curious of whether a particular building accepts pets, just have a look at the building page on our website. We have verified all of the buildings’ policies and list them in the FAQ section of the website. Every now and again, a building will change their policy in between when we last called to verify, but we update it frequently. Our agents also keep themselves updated of the pet policies and fees for the buildings in the area. We’re all about efficiency and not wasting your time or energy…

So what about investors?

With the rental market changing, it is important to have apartments that appeal to as many people as possible. Purchasing an investment condo for sale in a pet-restricted building automatically crosses out almost 40% of the prospective tenants that could be interested in moving in. Some of my favorite pet-friendly buildings are MarinaBlue and 900 Biscayne Bay in Park West, Infinity at Brickell in Brickell, the Midtown developments in Midtown and One Miami in Downtown.

For investors who are concerned with having animals in your property without knowing the behavior or cleanliness of the pets, it is completely customary to charge a pet deposit for the unit. In many cases, the building has a separate pet deposit or fee, but I suggest a refundable deposit for the unit itself. The amount can vary depending upon the pet. Puppies would require a bit of a larger deposit since they tend to chew and have accidents. You could also lower the deposits in the event that a tenant was able to submit a diploma from obedience school or behavior training.

Whether you are an investor, or if you are buying/renting a home for yourself, if there is a specific building that you are curious about, don’t hesitate to drop us a line and inquire. We’re happy to help.