Just west of the Metrorail line in Brickell is Neo Vertika. It was built in 2006 and is the only building in the neighborhood that offers industrial-style lofts. I have always been a fan of the building since the units are unique, deals are plentiful and the building is very well-managed. Since the building is well-managed, financing is easier and the terms are more attractive to buyers. So how is the market doing today?
The sales market is holding strong! There are only 18 active listings today, 13 of which are unfurnished non-outlier listings (I took out the penthouses and lower-floor units since they don’t fully compare). The listings are asking $349/square foot on average.
So far this year, 5 listings have closed in the building. This isn’t a huge number, but when you consider the lack of available listings for sale, the metric looks far more healthy than buildings we have seen in weeks past. The units that did find a buyer closed for an average of $318/square foot after negotiating to 96% of asking price.
There are two types of one bedroom units at Neo Vertika. The smaller 638 square foot plan is really a studio, but is often marketed as a one bedroom. The 795 square foot one bedroom is a duplex loft. The studios are available for between $225,000-$245,000, duplex one bedrooms from $269,500-$294,500 and two bedroom duplex plans from $355,000-$450,000.
The rental market is also performing very well at Neo Vertika. With only 24 available options currently, 37 other units have found tenants so far this year. That gives us just under 4 months of inventory. The studios lease between $1,600-$1,700/month, duplex one bedrooms from $1,750-$1,900 and two bedrooms from $2,200-$2,550/month.
Looking at the current inventory, one deal that sticks out to me is apartment 2309, which is listed for $335,000. This is the lowest priced two bedroom option currently on the market and is leased for $2,400/month. A rental investor would earn a 4.7% return on their investment after you paid the taxes and HOA bills as quoted in the listing. That is a great return compared to buildings we have seen previously. The apartment also has a river view and is across the street from KLA, one of the most popular preschools in the area. Not bad!
Girlboss: Miami Buildings Developed By Female Developers
In honor of #WCW (Woman Crush Wednesday), let’s take a look at the buildings in our area that were brought to us by women. Many people know the story of how Miami was founded by two women (Julia Tuttle and Mary Brickell), and everyone knows about the magic that Zaha Hadid is bringing to Downtown Miami with One Thousand Museum, which she designed but did not develop. What about the women who are behind the reins? Real estate development is an especially male-dominated field, so bravo to these trailblazers! Girlboss!
Lissette Calderon
Ms Calderon was born into a real estate family. Her father was a developer of small projects while she was growing up and piqued her interest after his passing when she was a teenager. While in college at the Wharton School of Business, she took a few real estate classes for fun, but didn’t plan on entering the field until later. When she ultimately returned to Miami, she landed a job under the Condo King himself, Jorge Perez.
After two years of learning the development ropes, she branched off on her own in 1999 and formed NEO. Her first building was Neo Lofts, which we don’t have featured on our website because it is west of our core service area, but is a great start to a great career. It was completed in 2004 and has 20 stories with 200 units. It is still a popular choice for those who enjoy high-rise living but don’t necessarily want to be in the densest part of the city.
Following the success of Neo Lofts, she expanded into Brickell to bring us Neo Vertika in 2006. This was an interesting addition to the neighborhood as it is the only choice for residents who enjoy living in New York style lofts. I consider New York style lofts to be those with exposed ductwork and concrete floors/ceilings. Neo Vertika has 36 floors and 443 lofts that are studios up to three bedrooms. The prices today range from $225,000 for a studio-sized one bedroom up to $375,000 for a 2 bedroom penthouse. The average sales price of closed sales this year is $317/square foot. For rentals, you could find a studio-sized one bedroom for just under $1,700/month, a duplex one bedroom for $1,850, and two bedrooms starting at $2,250/month. Another draw to this development is the popular restaurant/lounge in the waterfront retail space, American Social.
Next, Ms Calderon moved to the north side of the river and brought us Wind by Neo in 2008. Due to the unfortunate timing of the building’s opening in the middle of the 2008 financial crisis, there were financial hardships and many foreclosures associated with Wind, but it has rebounded nicely and remains a popular building today. Wind has 41 stories and 481 Miami-style lofts with a dramatic all-white-everything lobby. There are currently 57 units for sale in the building with one bedrooms starting at $245,000 and two bedrooms starting at $305,000. The average sale price per square foot is $317/square foot for sales that occurred in the first quarter of 2017. Rental prices start at $1,650 for a studio-sized one bedroom, $1,800 for a full sized one bedroom, and $2,300month for a two bedroom.
For her fourth project, Lissette had intended to build a 52 story tower with 507 units on the lot directly in between Wind and the river. The tower was named Cima, but with the market conditions the way they were, she moved on from the project. The lot was later sold to KAR Properties and will soon be developed into the ultra-luxury One River Point, which held the grand opening of their lavish sales center last month.
Lissette was also known for being a working mom. After preschool, he children would usually be found in her office, so that she could interact with them while she was working and also to teach them work ethic. A woman after my own heart! Today, she has taken her talents back to the Related Group, where she has been named the first ever female President at the company.
Evangeline Gouletas
A former First Lady of New York State, Evangeline Gouletas is just as much grand dame as she is girl boss. Hailing from Athens, Greece, she studied mathematics at Johns Hopkins and vector analysis at the Illinois Institute of Technology. While most of her development success has been in Chicago, she has made a lasting mark in Brickell as well.
In 2004, Evangeline brought us Skyline on Brickell, a 35 story waterfront tower with 360 condo units. The one bedrooms today start at $309,900, two bedrooms start at $500,000 and three bedrooms are just under $1 million. The closed sales have averaged $395/square foot over the last 4 months. For the renters out there, one bedroom units are starting at $1,900/month, two bedrooms at $2,650/month and there is one three bedroom available for $4,100/month.
While she did not follow through with developing it, I still consider her the mother of NINE at Mary Brickell Village, which was completed in 2015. She was the visionary who had the idea to purchase the air rights of Mary Brickell Village and build a tower over the shopping center. Initially, the project was to be named “Skyline at Mary Brickell Village”, but the construction lenders were having a hard time differentiating the two Skyline buildings, so she renamed it “Sky Palace at Mary Brickell Village.” Sky Palace was initially going to be a condo development and she did all of the presales before the 2008 market change. She then planned to turn the building into a rental community, but ultimately sold the air rights to the developers, who constructed the building and renamed it Nine at Mary Brickell Village due to the address being 999 SW 1st Avenue.
Today, Evangeline is in the acquisition phase of several new projects, working on the board of several nonprofits and traveling. She also participates in horseback riding, dressage, loves to go skiing and dance the tango. I have always admired her ability to combine glamorous Elizabeth Taylor-esque drama with real estate development grit.
When asked about what it is like to be a female developer in a male-dominated market, Evangeline said, “Gender does not matter in the Condominium Industry. In fact, it helps to be a female.” She continued to add that, “Men of Quality do not feel intimidated by women of equality.”
That is a wonderful outlook! We are very proud of both Lissette and Evangeline! Thank you for your contribution to our skyline!
Can Glen & Cristy Rice Sell Their Brickell Condo Before They Lose It To Foreclosure?
Neo Vertika Condo with Cristy Rice via BravoTV & Glen Rice
Can someone please buy Glen & Cristy Rice’s Neo Vertika condo before the foreclosure gavel takes it away? It seems that despite the fact that he once made an estimated $35 million during his 15 years in the NBA, and she once held a position on BravoTV’s “Real Housewives of Miami” show, they aren’t able to pay for it.
The 1,113 square foot 2 bedroom with 2.5 baths and both east and west views is currently on the market for $330,000. That amounts to less than $300/square foot, which is a great deal in Brickell! The average price per square foot in the neighborhood is currently $459/square foot. Sure, the kitchen is original from 2006, but the building is trendy and cool, and a rental investor could expect to make around $2,200/month as-is, or up to $2,350/month if they gave it new appliances and a fresh coat of paint.
According to association’s lawsuit, the ex-pair is so broke that they are unable to afford their $675/month condo association dues. They haven’t paid in so many months, they now owe $20,000! They also missed their $4,700 property tax bill for 2015 and their lender has already won a $275,000 judgment on the unit for the mortgage they took out when they initially purchased it. In order to make sure all previous debts are paid from the closing, an investor would need to bring an offer relatively close to the asking price.
But is this a sad story, or a Miami story? What are they up to when they aren’t ghosting the Neo Vertika Condo Association and the Dade County Tax Collector? Everything was going great for them up until 2011, when money troubles started to wear the relationship thin and Glen caught Cristy shacked up with another man. He beat the man senseless and ended up arrested. Since that night, they’ve gone through a bitter divorce and then headed along their separate ways.
After her stint on Real Housewives of Miami, Cristy founded a line of bikinis that celebrate her Cuban heritage. She hasn’t really been linked to anyone since her divorce, and seems to be doing well.
Glen went on to have a total of 6 kids. He had a paternity dispute with a woman in 2011, but had a change of heart and married her in April 2016. They had a lavish wedding at the historic Vizcaya Museum and Gardens, with the rehearsal dinner being at the Four Seasons Hotel in Brickell. The bride wore a Monique Lhullier gown and then they jaunted off on a European honeymoon. Given the fact that the wedding happened after Glen and Cristy stopped paying their bills, I really don’t think they care about the foreclosure.
Brickell Condo Tour and Construction Update [VIDEO] – February 14, 2015
It has been about four months since my last video tour covering the fast-paced development taking place in Brickell. Since then, a lot has happened, so I figured it was time to get back out on the road and provide everyone with another update. As you will see, this video is much more comprehensive, covering not only current and future construction, but also existing condo developments for those who may be unfamiliar or newly acquainted with the Brickell condo market. In the video, I even highlighted two, large commercial properties in Brickell which recently traded hands – the SunTrust building located at 777 Brickell Avenue, which sold earlier this week for $140M, and the former Capital at Brickell site located at 1420 South Miami Avenue, which was acquired this past December for $74.74M by CCCC International USA LLC, a subsidiary of Beijing’s China City Construction and American Da Tang Group of New York.
The rental market is a very interesting segment of the real estate market, not only for potential tenants on the prowl for a new pad but also current landlords and would-be investors trying to assess the demand for rentals across various neighborhoods and, more specifically, across various condo developments. Only a few years ago, the supply of rentals in Miami far outpaced demand. As a result, rental prices plunged and renters ruled the day. Fast forward to the present and an entirely different rental market is upon us in Miami. Nowadays, rental inventory is being absorbed quickly and overall rental prices are on the rise. For those living in Miami, I’m sure this a message that you have not only read in the local paper but have also heard directly from friends and family who have experienced it firsthand.
Obviously, not all neighborhoods and condo developments are created equal. Factors such as price, location, views, quality and recommendations from peers help determine rental demand. As a result, one would assume that demand can vary greatly from building to building and even neighborhood to neighborhood. Which condo developments are the leaders when it comes to rental demand and which are the laggards? More importantly, which buildings should we expect to see prices climb in the near future?
In this first segment, I decided to analyze the Brickell rental market to answer the above questions. Below, you will find a spreadsheet containing rental data for various condo developments in Brickell. Click the link below the spreadsheet to view it in its entirety.
Brickell Rental Market as of March 01, 2011
Columns C through G show the number of available rentals pertaining to each condo development grouped by number of bedrooms. Column I displays the total number of rentals available in each condo development while column J shows the total number of units within that development. I debated whether or not to include column K, the number of available rentals over the total number of units in the development expressed as a percentage, because the figure can be deceiving in buildings where developer inventory remains which has neither been sold nor rented. This is the case in buildings such as Icon Brickell and Infinity at Brickell. Regardless, I decided to include the figure because it can provide additional insight in buildings where this is not the case.
The main objective in creating this spreadsheet was to calculate months of inventory for each condo development. This can be seen in column M. Months of inventory was calculated by dividing total units available for rent by the monthly average number of units rented over a 3-month period from November 16, 2010 to February 15, 2011. You may be wondering why I did not include closed rental data from the past two weeks in determining the monthly average. I have noticed that it can take real estate agents days, and even weeks, to change the status of a rental in the MLS from pending to rented. As a result, I felt that the average would be skewed to the downside and not be an accurate representation of the Brickell rental market. Furthermore, if I had to venture a guess, I would also say that it is highly likely that around 10 percent of the total number of units available for rent are in fact no longer available. In this case, the listing agent has yet to change the status from available to pending.
Regardless, a lot can be ascertained from the spreadsheet above. In my opinion, any building with 1.5 months of inventory or less has a solid rental market. 1060 Brickell, The Plaza on Brickell and Vue at Brickell are standouts with absorption rates hovering around one month. I expect rentals prices in these developments to continue to rise in the near future. For those in the market to lease a condo in one of these developments, I advise that you act quickly and put your best foot forward when making an offer.
According to the spreadsheet, there is currently 2.29 months of rental inventory available in Brickell. Some may expect this number to increase as more units from Icon Brickell and Infinity at Brickell hit the rental market. Of course, this will all depend on how quickly the units become available and at what pace demand absorbs them. Only time will tell, but I plan to watch Brickell rental market closely and post updates on a monthly basis.
I would love to hear your thoughts and comments.
Three Bank Owned Condo Foreclosures Worth Pursuing
The foreclosure forefront has been quite slow ever since several U.S. banks initiated a voluntary freeze in October. The freeze on foreclosures was implemented after banks had acknowledged using “robo-signers” to approve hundreds of foreclosure documents a day without first verifying the information in them. Bank of America, the largest U.S. financial institution, announced the week of December 6, 2010 that it would lift its national foreclosure freeze and resume taking possession of properties. Despite the announcement, I had not seen any foreclosure condos in Miami or Miami Beach hit the market that I felt would be of any interest to my readers for quite some time. That is, until yesterday. The following are three Miami or Miami Beach condo foreclosures along with my commentary detailing why I feel they are deals worth pursuing.
One Miami #3103 – This 31st floor, 1 bedroom/1 bath bank owned foreclosure has 868 square feet and is asking $182,000 or $210 per square foot. The unit faces south overlooking the Miami River with views of Biscayne Bay from the balcony. Taking a look at recent sales at One Miami, one can see that unit 803 which is in the same line but located 23 floors lower sold for $188,000 on November 9, 2010. This is the only 03 line that has sold within the past six months. Unit 3103 at One Miami is currently the second best priced condo in the building, second only to a short sale by $2,000. If you’re looking for a quick purchase without the hassle of a short sale then this is a great condo to look into right away.
Vue at Brickell #2115 – With an asking price of $159,900, or $143 per square foot, this 2 bedroom/2 bath corner unit is an exceptional deal but I expect it to sell well above asking price. Of the recent sales at Vue at Brickell, units 1415 and 815 are by far the best comparables because, once again, they are in the same line as the subject property. Unit 815, residing 13 floors lower sold for $180,000 on October 28, 2010 while unit 1415, just seven floors lower sold for $185,000 on August 5, 2010. You also have to take into account that unit 2115 appears to be an upgraded unit from the pictures. It has hard wood floors throughout the living areas while units 815 and 1415 both had carpeting.
The Cosmopolitan #2213 – If you’ve been waiting for a well priced condo foreclosure in South Beach, then look no further. The Cosmopolitan is located at 110 Washington Avenue in the South of Fifth neighborhood of South Beach which is one of the most sought after neighborhoods in Miami Beach. This 1 bedroom/1 bath condo has 861 square feet and comes with 2 parking spaces, a rarity in the Miami Beach condo market. The asking price is $241,433, or $280 per square foot, which is an unbelievable deal for a 1 bedroom condo at The Cosmopolitan. Notice that next best priced 1 bedroom condo currently available at The Cosmopolitan is asking over $75,000 more than unit 2213. For some reason, our website isn’t showing any of the seven condos that have closed at The Cosmopolitan over the past six months. Three of the seven closed sales were one bedroom units which ranged from $270,000 to $349, 500.
Top 5 Distressed Condo Sales Closed in October 2010
Below, you will find what I believe to be the five best condo deals of the 71 distressed condo sales that closed in October 2010 in the MLS located in Brickell, Brickell Key, Downtown Miami and the Arts District. This should give everyone a good idea of the kind of deals that can be obtained in the Miami condo market at this time. Of the 71 distressed condo sales that closed last month, 39 were REOs and 32 were short sales. I feel it’s important to note that 25 of the 39 REOs sold at or above asking price. Time and time again, we try to emphasize to clients that the majority of well priced REOs in condominium buildings of interest will receive multiple offers and sell at or above asking price. It may be difficult to believe but bidding for condo foreclosures in Miami is very competitive. For example, unit 1601 at Solaris at Brickell was a foreclosure that we discussed on one of our video shows in August. The condo was listed for $168,300. At that price, we felt that the condo was grossly under priced. Last month, the condo closed for $230,000, or about 37% above asking price. It’s important to recognize good value when it becomes available and to have the ability to act quickly. As a side note, in the example above, our recommendation at the time to potential buyers was to bid up to $200,000.
Solaris at Brickell #1204 – 2 bedroom/2 bath (1,145 square feet) – This unit sold for $165,100, or $144 per square foot, on October 21, 2010. REO
Brickell on the River North Tower #3417 – 2 bedroom/2 bath (1,157 square feet) – This unit sold for $215,000, or $186 per square foot, on October 1, 2010. Foreclosure
Blue Condominium #2004 – 2 bedroom/2.5 bath (1,158 square feet) – This unit sold for $180,000, or $155 per square foot, on October 8, 2010. Foreclosure
Neo Vertika #2519 – 2 bedroom/2 bath (1,113 square feet) – This unit sold for $159,000, or $143 per square foot, on October 4, 2010. Short Sale
Cite on the Bay #119 – 2 bedroom/1.5 bath (980 square feet) – This unit sold for $136,000 or $139 per square foot, on October 20, 2010. Short Sale
Shrinking Rental Inventory in Brickell and Downtown
In this episode, we discuss the shrinking rental inventory of condos in Brickell and Downtown Miami. In recent months, it has become increasingly more difficult to find a rental in these neighborhoods than it has since the peak of the market. For example, at this time The Plaza on Brickell, which has 1,000 total units, only has two unfurnished one bedrooms available while 1060 Brickell has zero. We highlight eight other well known condo buildings in these areas and provide an overview of the rental availability within them.
Miami Real Estate Review – Episode 7
In this episode, we provide an update regarding the developer blowout sale at The Plaza on Brickell that started last Thursday. We also touch upon pricing at Icon Brickell and discuss news regarding Marquis. We end the show by highlighting four noteworthy foreclosures that came onto the market since last Friday.
1800 Club and Neo Vertika Now FHA Approved
This news came across my desk yesterday afternoon and I was quite surprised. I verified the information on the U.S. Department of Housing and Urban Development (HUD) website. It appears that Neo Vertika received its FHA approval on February 2, 2010 and 1800 Club received theirs on March 18, 2010. Down payment requirements for qualified buyers on an FHA loan can be as low as 3.5 percent of the purchase price. FHA loans typically come with additional costs but credit standards are usually less stringent than those of a conventional loan.
