Recently, the City of Miami Beach renovated 17 acres on the southern most end of South Beach, in a neighborhood known as SoFi, or South of Fifth. Hargreaves Associates, of New York City, was hired to design and update this bayfront park at a cost of around $22 million.
On a recent visit to the park, visitors participated in a variety of activities from walking their dogs, skateboarding, biking and rollerblading to playing Frisbee and jogging. Kids also played in the interactive water features scattered throughout the park.
At the southern tip, an elevated walkway guides you to a deck with sun chairs, providing an ideal spot to watch cruise ships passing through Government Cut, as well as to enjoy the views of Fisher Island, the Miami skyline and the Port of Miami. Catching some rays at the same time is an added bonus.
The bayfront walk extends from 5th Street (Icon South Beach) all the way to the tip of South Pointe Park, approximately one mile. It’s gorgeous to walk along the bay on a wide boardwalk with a marina on one side and beautiful condos on the other. Additionally, the environmentally sensitive “turtle safe” lighting illuminates the Government Cut walkway while enjoying the scenic view at night.
A mix of uses, especially green space, is always a welcome addition to any community. The renovation of South Pointe Park adds value and livability to an already charming neighborhood.
South Beach Luxury Condo Sales
There have been 10 closed sales for luxury condominiums in South Beach within the past three months that appear in the MLS. I defined a sale as being a luxury condo sale if it had a sales price at or over $2.5M. As you’ll see below, Apogee South Beach topped off the list with a condo selling for $7.3M. Even more impressive is a Penthouse condo at Apogee South Beach, which did not appear in the MLS, that closed for $16.5M on June 9, 2008.
Il Villagio – Unit 804 – $2,500,000 – $1,506/SF – May 13, 2008
Beachfront Foreclosure "Steals" Just Aren’t Happening in South Beach
I receive a number of phone calls each week from nonlocals looking to “steal” a condo in South Beach directly on the beach. I tell them every time that it’s just not happening. Beachfront property is still in very high demand.
Case in point is a foreclosure condo at Hilton Bentley Miami Beach that became available towards the beginning of February. It’s a 1 bedroom/1 bath with 620 square feet, fully furnished and listed at $379,900. I never posted about this foreclosure because I wanted my best clients to jump on this opportunity before other agents in town knew about it. I took a look at the condo and it was in prestine shape. Great views, plasma TVs in the living room and bedroom, stainless steel appliances and furniture that was in like-new condition. I submitted a few offers but I was told that 8 other offers were submitted and none of mine were the highest. One of my clients has contacted me a few times within the last couple of weeks, out of curiosity, to find out for how much the condo eventually closed. The foreclosure condo at Bentley Beach closed for $459,900 on March 26, 2008. Again, it was listed for $379,900. Someone bid through the asking price by $80,000!
This is not just one instance. I’ve been seeing a number of South Beach foreclosures and short-sale condos being bid through their offers. As the old adage says, if it looks too good to be true then it usually is.
Flamingo South Beach North Tower Canceled?
Earlier this week, I received an email from someone stating that they had heard rumors that the North Tower of Flamingo South Beach had been canceled. I asked around and it seems that, while nothing has officially been announced, there are plans to give deposit money back to contract holders of units in the North Tower of Flamingo South Beach and to maintain it as a rental building. I’m assuming that the option to convert the Center Tower will not be exercised by MCZ/Centrum and that it too will remain as a rental building.
This is actually great news for owners of condos in the South Tower at Flamingo South Beach, as well as for owners of condos located in the surrounding neighborhood. There will now be much less condo inventory hitting the market. The three towers comprising Flamingo South Beach have a total of 1,688 units. I’m not sure how many of these are situated in the North and Center Towers, but my guess would be that it is something close to 1,100 units. That’s 1,100 less condos that would have otherwise become available on the market (if my estimate is accurate).
I’m just wondering if this will mean that the plans for the courtyard will now be scrapped. The renderings for the courtyard looked fantastic! I’m sure this additional element calculated into the decision-making process of someone who purchased a condo in the South Tower of Flamingo South Beach.
Apogee South Beach – Now That’s a Master Bathroom!!!
Yesterday morning, I had the opportunity to visit a few condo units at Apogee South Beach located at 800 South Pointe Drive in South Beach. The word “sensational” doesn’t even come close to fully encompassing the quality that has gone into this condo development. Apogee South Beach is in a league of its own, with quality that is unmatched by any condo development in South Florida.
The following are a few shots of the master bathroom that I took yesterday inside one of the two condos at Apogee South Beach. Trust me, the kitchens are equally as impressive, if not more so. I’ll likely share the photos of the kitchen at Apogee with everyone in a future post.
New Construction Condo Deals in the Arts District, Brickell, Downtown Miami, and South Beach
As closing dates for some of South Florida’s newest condo developments quickly approaches, the motivation from contract holders to sell is becoming increasingly apparent. I’ve been receiving a lot of phone calls and emails from contract holders, within the past couple of weeks, who are looking for me to help them find a replacement buyer.
In some cases the contract holders are willing to accept a loss on their contract price in order to retain a portion of the deposit that was made 3-4 years ago. Below you will find some of the better deals that I’ve come across:
Unit ??? – 2 bedroom/2.5 bath NW corner unit – 1,491 SF – $1.86M
Unit ??? – 2 bedroom/2.5 bath NW corner unit – 1,922SF – $3.35M
Unit ??? – 3 bedroom/3.5 bath NE corner – 3,497 SF (4 balconies) – $4.2M
If you’re a contract holder and you’re motivated to sell then feel free to email me details of your condo and the price that you are willing to accept. Most developer contracts do not allow you to market your unit outside the sales center, so I will post general information here on the blog to see if a buyer emerges.
I’ll match buyers and sellers together. The sales centers are in some cases charging higher than normal sales commissions and transfer fees which make it virtually impossible for contract holders to get their units into the hands of end-users. I’m hoping that this blog will help contract holders to get some of their money back, end-users to find a great deal and developers to have less defaulted units. The way I see it is a win-win-win situation for everyone involved.
By the way, I’ve added a link to this post on my “Deals” page and will be adding to the list above intermittently.
There’s Never Been a Better Time to Throw a Party
Three years ago, it seemed like every week that there would be a party thrown to commemorate the launch of sales for a new pre-construction condominium project. The parties were grand – open bar, all-you-can-eat buffets, firework shows, flamingos walking around, synchronized swimmers, half-naked cocktail servers, the finest wines, talking parrots – you name it and it was there.
Nowadays, it seems like hardly any developers want to throw a party and I personally think that this is the best time to throw a party. Three years ago, parties were thrown because it was expected (even though people would have signed contracts regardless if there was a party or not). These people signed contracts based on developer reputation, architectural renderings, and merely because the market was hot! It’s no secret that the market has cooled considerably since that time.
Why not stand behind your development and launch a party to show the public that you’re delivering a great product? Get potential buyers inside the building and let them reminisce about the party and how great your building is to other potential buyers. In my eyes, it sends a strong message to the consumer that you feel that you are delivering a great development to the public and that you are confident that they will feel the same way.
Even the best condo developments will have at least a 15% default rate in this market. Once this becomes a reality, why not hold a weekly open house to showcase your building and available units to the general public? I’ll even personally do it for you if you don’t have anyone on staff to do it.
The Related Group of Florida is the only developer that I know of that is throwing grand-opening parties for their developments. As I said before, this shows me that they stand behind their product. In fact, their latest development, Apogee South Beach, is having a grand-opening party on December 19. Unfortunately, I won’t be in town to catch the party, but the fact that they are having one shows me that they are confident that they will be delivering a spectacular product.
Bentley Bay – 1 Bedroom Bank-Owned Foreclosure – $449,900
A 1 bedroom/1 bath bank-owned foreclosure with 777 square feet of interior space at Bentley Bay recently had a $100K price drop. At this point, it fell onto my radar as being a good deal. It is currently being offered at $449,900. The condo is located on the 12th floor.
The unit faces west which, in my opinion, offers a better view than those facing east. The units facing west have a view of Biscayne Bay, Star Island and the Miami skyline. I haven’t viewed this unit in person but from the MLS pictures it appears that the appliances are still in place. I’ve noticed in a lot of other foreclosures that the appliances are oftentimes removed from the unit.
A unit in the same line sold for $550,000 in June 2007. That unit was sold furnished, however. There’s usually a price difference of $3,000 per floor in Miami and Miami Beach. If the foreclosed condo is in good shape then I think acquiring it in the low $400K’s would make for a great deal.
The following units in the same line at Bentley Bay North are currently listed at the prices below in the MLS:
Unit 1013 – $526,500
Unit 713 – $529,999
Unit 1613 – $599,000
Unit 1713 – $599,000
Unit 1213 – $650,000
Unit 2313 – $679,500
South Beach Condo Index – November 2007
The following data was collected on Sunday, November 11, 2007. The average price per square foot of condos currently listed in the following 19 developments in South Beach dropped from last month’s average. In fact, it even dipped below September’s average. It went from $889.83 per square foot, in October, to $886.71, for this month. The September average price per square foot was $887.60. The weight-adjusted average also slid slightly to $773.67 from last month’s weighted average of $773.73. Below, you will find the average price per square foot of condos listed in the following 19 condo developments in South Beach:
The average price per square foot of condos sold over the previous six months has gone down from $787.01 per square foot to $775.74. Once again, Meridian Lofts didn’t have any closed sales within the last six months which is why you will find the “N/A” below. If Meridian Lofts were included in the average this month, at its previous average price per square foot of $434.78 in September, then the average price of condos sold in this index would have dropped from $768.47, last month, to $757.80, this month. Below, you will find the average price per square foot of condos that have sold within the last six months in the following 19 developments in South Beach:
Murano at Portofino – 1000 S Pointe Dr | 33139 | $1,040.34
Murano Grande – 400 Alton Rd | 33139 | $721.85
Portofino Tower – 300 S Pointe Dr | 33139 | $1,014.26
Setai South Beach – 101 20 St | 33139 | $1,494.92
Waverly at South Beach – 1330 West Ave | 33139 | $475.99
Yacht Club at Portofino – 90 Alton Rd | 33139 | $611.65
As with the Brickell and Brickell Key condo indices, I have provided the graph below to make it easier for everyone to make sense of the statistics above. If you can’t read the numbers below then you need to upgrade your glasses to a set of binoculars. Otherwise, right-click and save the graph below and blow it up to as big as you’d like.
The first column, to the right of each condo development’s name, is the difference in the average sales and list prices for the statistics at the top, expressed as a percentage. With the exception of Portofino Tower and The Floridian, the average sales prices are well below the average list prices in these 19 developments. Portofino Tower had a condo sell for $1,505 per square foot on June 29, 2007. Once that transaction falls off the average in January, we shall see Portofino Tower begin to show its true colors. Average list and sales prices at The Floridian are merging together because the high number of short-sales that are available at The Floridian. Once a few of these actually close, the average sales price will fall well below the average list price.
The second column is the number of active listings in each development currently in the MLS. The third column shows the percentage that these listings represent over the total number of condo units in each development. The cells highlighted in green reveal those developments that have active listings that represent less than 10 percent of the the overall units in the building. I find this to be a very healthy number. 1500 Ocean Drive, Courts at South Beach, The Decoplage, Grand Venetian, Il Villaggio and Murano at Portofino fall into this territory.
The 10-15 percent range is considered average while the 15-20 percent range is beginning to approach dangerous levels. The ones highlighted in red reveal those developments that have active listings that represent over 20 percent of the overall units in the building. This indicates that the danger zone has been breached and caution should be heeded. Of the 19 condo developments in the South Beach Condo Index, Bentley Bay, Murano Grande and Setai South Beach fall into this red zone area.
The fourth column shows the number of pending sales while the fifth column displays the number of closed sales since October’s South Beach Condo Index. As you can see, there are 31 pending sales in South Beach. There’s been a total of 13 closed sales within the last month, which matches last month’s figure. Icon South Beach, with 3 closed sales, is beginning to show some spirit. There was a recent article in the papers that stated that former NFL quarterback Michael Vick, recently acquired a pricey condo at Icon South Beach. I’m pretty sure that the neighbors won’t be pleased by all of the dog barking until he begins to serve his time. Woof, woof!!!
The sixth column shows you the difference in the average list prices from this and last month’s, expressed a percentage. Those highlighted in red reveal those condo buildings which had a drop in their average list price, those highlighted in green show those that had an increase while those highlighted in yellow reveal a stalemate from last month’s figures. As you can see, Meridian Lofts had an 11.44 percent drop. That’s probably because it hasn’t had any closed sales within the last six months. Time to drop prices!
The seventh column reveals the difference in average sales prices from this and last month’s, expressed as a percentage. The color scheme remains the same. Sales prices at Bentley Bay spiked up 7.33 percent because a transaction that took place on May 8, 2007 at $476 per square foot fell off the average. The Setai South Beach took a beating this month, with a 9.71 percent drop from last month’s average. This is mainly attributed to a Penthouse unit that sold for $1,851 per square foot falling off the average this past month.
Pending sales have increased to 31 from last month’s figure of 25. It looks like the off-peak months have begun to knock boots with the on-peak months. Just wait until January. I promise that you’ll begin to see more pending and closed sales during those months.
Flamingo South Beach: Then & Now
Correction: I’ve been told that the picture above is from the 1920s and is of the old Flamingo Hotel.
I viewed the above picture a few days ago. I found it simply amazing to see what Miami Beach and Flamingo South Beach looked like in the 1960s. There were so many parcels of land still untouched back then. What a world of change 40+ years can bring to a city.
Flamingo South Beach became the largest condo-conversion in the state of Florida in early 2006. It is composed of three towers with 1,688 total units and is in the process of undergoing a multi-million dollar restoration. Currently, the south tower has been fully sold and Chicago-based MCZ Development is now working to sell out the north tower. The center tower, which rises above the two others and has more modern finishes and better views, will likely be available for sale in late 2008 if MCZ Development exercises their rights to it.
What is interesting to note about the picture above is that a swimming pool didn’t exist back then at Flamingo South Beach. Nowadays, the swimming pool area is where the party is each sunny weekend afternoon.
Of course, the picture directly above wasn’t taken on a weekend afternoon. In fact, I took it in August of 2006 on a Tuesday afternoon. The topless and G-string clad beauties at Flamingo South Beach usually bask under the South Florida sun on the weekends.
Flamingo South Beach is well known for its great amenities. It is the closest that you’ll come to resort-style living in South Beach. Investors love Flamingo South Beach because rental rates are high and the development allows short-term rentals. A gorgeous place to stay while on vacation in South Beach.
Truth be known, prices likely won’t appreciate at Flamingo South Beach for 2-3 years sheerly based on the high number of units that have been and will eventually be fully converted. The long-term outlook, however, for Flamingo South Beach is great. It’s a little piece of paradise within a paradise city.
