Amara at Paraiso Building Listed For Sale – Asking $20,000,000
According to various commercial real estate websites, the freestanding, waterfront building located at 3101 NE 7th Avenue, which houses the Amara at Paraiso restaurant by Chef Michael Schwartz, has been listed for sale for $20,000,000. The sale would include a lease transfer with Amara at Paraiso in place as the tenant. The prospectus for the sale of the property states that Amara at Paraiso has a 10-year lease in place with three options to renew their contract. The restaurant includes 6,445 square feet (4,513 interior square feet + 1,932 exterior square feet), seating for 209 people, boat access, and 24 valet parking spaces.
The two-story building also has a rooftop component called Paraiso Beach Club, and the sale of the property would include income generated from it. According to the prospectus, each unit owner of the four Paraiso condo towers (Gran Paraiso, One Paraiso, Paraiso Bay, and Paraiso Bayviews) is paying $750 per year in membership dues to the owner of the Paraiso Beach Club for the right to use it. This arrangement generates membership income totaling over $1,000,000 per year. The Paraiso Beach Club rooftop is 5,871 square feet (2,794 interior square feet + 3,077 exterior square feet) and has seating for 158 people.
Combined, the rent income plus membership dues generate an annual income of $1,633,750 (an 8.17 percent cap rate) according to the investment prospectus.
Gran Paraiso Construction Video Showcases Jaw-dropping Views from Paraiso District
Construction of Related’s Paraiso District is in the home stretch. Along with Amara at Paraiso – a Michael Schwartz restaurant which opened last week along Biscayne Bay – Paraiso District is comprised of four luxury, high-rise towers, each scheduled to open later this year: Paraiso Bay, which is nearly finished with delivery expected this quarter; One Paraiso – expected to begin closings in Spring of this year; Paraiso Bayviews – expected to begin delivering units this Summer; and Gran Paraiso, which is very close to topping off and is aiming to begin closings this Fall.
The drone video below showcases the jaw-dropping views that one can expect from the condos at Paraiso District:
Paraiso Bay is completely sold out; all that remains at One Paraiso is a single penthouse which is asking $2.1M; Paraiso Bayviews has limited inventory starting at $579K; and Gran Paraiso has 1 to 4 bedroom options available starting at $800K.
Want To Be The First To Try Out The Restaurant At Paraiso Beach Club?
Last week, we were excited to bring you a photo preview of Amara at Paraiso, the Michael Schwartz-owned waterfront restaurant at Paraiso Beach Club. This week, we can help you to be the first to try it!
Debuting the new bayfront eatery in proper Miami style (just ahead of condo closings and during Art Basel), Mr. Schwartz is opening for a special pop-up experience December 6-9. Dinner seatings are available from 7-9:30pm each night by reservation only.
Guests at Amara at Paraiso will dine on a special preview menu that includes snacks, cocktails, wine, beer, and four courses that are served family-style. The cost is $189 per person. Below is a peek at the menu, and you can reserve your spot here.
If you would like to move to Paraiso, price ranges include:
Paraiso Bay: SOLD OUT, closings begin January 2018 One Paraiso: Four bedroom penthouse available for $2.85M. Expected completion March/April 2018. GranParaiso: Two bedroom plus den plans from $978k, three bedroom plus den plans from $1.33M, four bedroom plus den plans from $1.67M, penthouses from $2M. Estimated delivery April/May 2018. Paraiso Bayviews: One bedroom plans from $570k, Two bedroom plans from $630k. Estimated delivery March/April 2018.
Paraiso Bay Homes: Prices from $2M, closings begin early 2018.
A Peek Inside Amara at Paraiso; Paraiso Construction Update
Despite Hurricane Irma’s damper on the Paraiso party, the project is preparing to begin closings. The damaged crane was successfully removed and Gran Paraiso should be topped off by the end of the year. As they put the finishing touches on the first residential units, let’s have a look at “Amara at Paraiso,” the onsite restaurant by Michael Schwartz.
The Edgewater mega-project had planned to begin closings last month, but were delayed by the storm. Since then, everyone has been working diligently to bring the closings back to the anticipated schedule (or as close as possible). As of now, here is the most updated completion schedule:
Paraiso District Construction Update: Paraiso Bay Closings Set To Begin September 2017
The Paraiso District is now 97% sold and on the verge of opening its first building. Here is a breakdown of each tower with current photos of their progress…
Paraiso Bay – Although previously announced as “Sold Out”, we have received word that one unit has come available. This one is an 05 line with a direct bay view. It has 1,326 square feet with 2 bedrooms, 3 baths and a den. It is being offered for $934,900.
We had previously heard that the building was set to open this month, but opening day has been pushed to September. Delays at the end of the construction process are pretty common, so we’ll be sure to stay abreast of any changes.
Paraiso Bay Homes – Although not as heavily publicized as the towers, the Bay Homes are probably my favorite phase of the complex. They are located directly across the driveway from the Paraiso Beach Club and directly under the pool deck for Paraiso Bay and GranParaiso (with their own entrance). They are townhouse-style beach homes with an average of 4,000 square feet and 3 or 4 bedrooms. There are currently 3 remaining that are priced between $1.9 million up to $2.4 million.
Paraiso Bayviews – The most affordable tower is also nearly sold out, with an anticipated opening of January 2018 after topping off in April. There are now 5 condo residences available and 7 penthouses. The prices range from $420,000 for a 1 bedroom plus den with a garden view to $650,000 for a 2 bedroom with sunset/skyline views. In the penthouse levels, remaining opportunities range from $630,000 to $1.6 million.
One Paraiso – In our most recent construction update, One Paraiso had just topped off with two opportunities remaining… a 1,680 square foot 3 bedroom, 3.5 bath with bay and ocean views for $1.45 million and a 4 bedroom, 4.5 bath penthouse with 2,850 square feet and bay/ocean views for $2.85 million. Both remain available with opening day projected for February 2018.
GranParaiso – The final tower to be completed is also the one with the most inventory to choose from. GranParaiso has currently reached the 46th floor of 53 total. We should see top off early in the fall and final completion in the Spring of 2018. There are 18 condo residences available, ranging from $960,000 for a 2 bed, 2 bath plus den with bay & ocean views, up to $1.88 million for a 4 bed, 3.5 bath plus den with the same view.
There are also four remaining penthouses from $2 million to $3.1 million.
For specific unit numbers and prices (if not listed in this post), just send us a message. We’re always happy to help. As for the Paraiso Beach Club and Amenity Complex, they are both coming along nicely and scheduled to open just in time for the first residents’ move-in.
One Paraiso Has Topped Off; Paraiso District Construction & Sales Update
The third tower in the 10 acre Paraiso District has topped off. One Paraiso reached its final height of 53 floors this week leaving only GranParaiso in the vertical construction phase. Here is the latest on the project:
One Paraiso – The building has topped off and interior finish out is underway. Only two residences remain, a 3 bedroom and a penthouse. Closings are set to begin later in the year.
BayHomes – Interior finish-out and landscaping are underway and sidewalks are being poured. Closings will begin this summer and prices start at $1.9 million.
Paraiso Bay – This was the first tower to top-off. Interior finish-out is underway and closings are set to begin this summer. There are no purchase opportunities at this time.
Paraiso Bayviews – The most affordable tower in the district topped off in April and is set for opening at the end of the year. Remaining apartments start at $599,000.
GranParaiso – If you want A-Rod to be your neighbor, you should buy here. They have reached the 41st level of vertical construction and are set to open in the Spring 2018. Prices start at $968,000.
Photos Bonanza! Paraiso Bay Construction Update
The first closings at Paraiso are scheduled to begin this summer, so how is construction coming along? Let’s check…
Paraiso Bay – This will be the first tower to open and closings are scheduled in July. It is currently sold out and on the home-stretch to completion.
Paraiso Bay Homes – Around the time that Paraiso Bay opens, the 8 Paraiso Bay Homes will also be complete. They are located in front of Paraiso Bay and Gran Paraiso, underneath the pool deck. There are still a few available. There is a 3 bedroom plus a study that is $1,910,900 and a couple of 4 bedrooms that also have a study. Those are $2,190,900 and $2,400,900.
Gran Paraiso – Paraiso Bay’s sister tower has reached the 38th floor of vertical construction. The railings and glazing are also inching their way up. We expect to see completion next spring and there are still units that are 2 bedroom up to 4 bedroom layouts starting at $968,000.
Paraiso Bayviews – The most affordable tower in the complex topped off last month and the rooftop pool deck is currently being constructed. We’re hoping to see this tower delivered at the end of 2017 and the close-out inventory starts at $420,000.
One Paraiso – Standing up front on the edge of the bay, One Paraiso has reached the 53rd level of vertical construction. We are also expecting to see this one completed later this year and there are two penthouses remaining, starting at $2.8 million.
The Paraiso Beach Club is also coming along nicely. It should be ready to open in time for the first residents to move-in this summer.
Here are some additional shots of the complex, for those who love a photo bonanza!
VIDEO: Paraiso Bayviews Construction Tour
Today we were treated to a preview of the Paraiso district including a hard-hat tour of Paraiso Bayviews. I have to admit, while I’m excited to see the Paraiso district come to life, I’ve always been a bit skeptical about Bayviews because of its location to the west of the other towers. Would it actually have bay views? It does!
Inside the building, it is still too much of a construction site to be able to visualize the units and how the layouts will be. Hopefully we will be able to preview some finished options when the building is a little closer to being finished. It is scheduled to open later this year, so there’s time.
The views that we saw were from the 38th floor out of 43 total floors. There are still a few options for purchase, including a 40th floor 2/2 with 1,068 square feet and a west view, overlooking the tennis courts and sunset for just under $650,000. There are also six penthouses left, priced between $641,000 up to $1.6 milion.
After the residential tower, we also had a look at the Paraiso Beach Club, which is reserved for the residents only. The public will be welcomed in Michael Schwartz’s bayfront restaurant, but the upstairs club is residents only.
What do you think of the views?
What Happens If A Buyer Cannot Close On Their Preconstruction Condo?
The spring and summer of 2017 are going to be an interesting time for Miami in a real estate sense. We are going to see a flurry of new condo developments opening, bringing thousands of new closings (and probably hundreds of new resale and rental listings).
Brickell Heights 01 and Brickell Heights 02 are set to open within the next month, 1010 Brickell will follow shortly thereafter (or maybe they will open before… the two projects are neck and neck). Up in Edgewater, Biscayne Beach is slated to open its doors any day now, followed by the first tower of the Paraiso District, Paraiso Bay. The four projects together total over 1,800 new condos that are set for completion this summer. The fall and winter will bring another flurry, but for now let’s concentrate on the openings that are closer. These projects are all effectively sold-out. They are a wild success for the developers! But, what happens if one of the buyers is unable to come up with the remaining funds to close?
During the sales cycle of these four towers, the developers were requiring staggered deposit schedules that totaled a 50% down payment prior to closing and the remaining 50% due at closing. Remember that the majority of these condo sold in 2014-2015. A lot of things can happen in 3 years that can change the financial situation of the buyers. There could be an argument between partners in a condo, divorce, death, health issues. There could be political problems, currency exchange rate troubles, economic hardship. A dictator could be elected. We all know that these things are going on around the globe and they are all very sad. But what happens if one of these factors affects a buyer’s ability to close? It isn’t as dire as some may fear. The buyers do have choices.
They can walk from their deposit
Everyone knows this one. If you put a deposit down on a contract and don’t complete the contract, you will lose your deposit. It is very straightforward, and it stings. These condos sold around $500-$600/square foot. If you figure Related Group’s signature 2 bedroom layout that is almost always 1,200 square feet, give or take, the sale amount would be around $700,000. That’s a $350,000 loss, and that is not ideal for anyone… but it’s an option.
They can close with a mortgage
Although condo financing isn’t easy in brand-new developments, there are banks that will finance preconstruction purchases at the time of closing. The challenge is that many of the buyers in these developments are foreign nationals, and those mortgages are more difficult. Some banks refuse to lend to buyers from countries that have political turmoil (looking at you, Venezuela). It’s not a racist thing, the banks are worried about the political climate and their ability to recoup the mortgage. If you have questions about which banks can finance buyers from different countries, let us know. We have a resource that can help.
They can close with a private mortgage
If traditional financing just isn’t a possibility, buyers could visit a private lender. These mortgages typically require very little documentation and are able to close very quickly because the lender is familiar with the local market, the project, and bases the approval on that. The downside of these mortgages is that they are extremely expensive. Expect to pay 3-4 points to the lender at closing as a fee plus astronomical interest rates. I’ve seen interest rates as high as 13-14%. If a buyer was attempting to close the signature 2 bedroom unit that we discussed previously, that would amount to $10,500 – $14,000 just as a closing fee. Then you could expect around $4,000 per month to go just toward interest. Again, not ideal but also better than losing $350,000 right out of the gate.
They could find someone to step in and close on their behalf
This is probably the most ideal situation for someone in a preconstruction condo bind. Developers typically frown upon contract flipping and there’s no guarantee they would approve it, but developers in today’s market are also not eager to hold inventory on a previously sold-out project. They want to take their money and go do something else until another build cycle opportunity presents itself.
We have already had several investors request opportunities to buy in the event that a preconstruction buyer cannot or will not close. If anyone is in a preconstruction condo bind, please contact us and hopefully we can work it out in a mutually beneficial way.
We have covered Andy Murray‘s attempts to sell his 45th floor apartment at Jade Residences at Brickell Bay. To be honest, I’m not sure what’s going on with this apartment. The price volleys up and down on a monthly basis, but nobody buys. It all started in November of 2015 when he listed the property for sale at just under $3 million. Someone placed a contract on the property, but it fell apart and the property went back to market for $2.7 million in October of 2016. That’s when the seesaw started. In November of 2016, the price went down to $2.59 million, then back to $2.69 million a few days later. In January of 2017, there was another reduction to $2.64 million, then down to $2.5 million in February. Two weeks later, the price was raised to $2.65 million and is still at that point. It is an interesting marketing strategy to say the least. I feel like that if they would stop the pricing games and have the property re-photographed, it would sell. We have apartment 4107 on the market in the same building and have experienced a lot of traffic. We hope to sell it very soon, but I digress.
Probably the largest concentration of tennis stars will be in Edgewater at The Paraiso District. The project is top of the line when it comes to tennis with five hard-courts, the same as those at the Miami Open Masters, Gram Slam, US Open and Australian Open. Hard-courts are preferred by avid players looking to practice their fast game. Spanish former No. 1 professional tennis player Arantxa Sanchez Vicario and No. 6 French player Gael Monfils have already purchased their homes at the project and it has also been a favorite of Venus Williams, who made a surprise appearance at the opening of the sales gallery back in 2014.
Andre Agassi and Caroline Wozniacki have also chosen to live on Fisher Island for its club’s expansive and globally ranked tennis facilities including a pro-shop and eighteen courts from grass to hard-courts to clay courts. Residents at Palazzo Del Sol, the latest luxury residential addition to the island, will have full access to the same club.
