Market Stat Monday: The Bond On Brickell
This week, we are going to take an in-depth look at another recently-opened development, Rilea Group’s Bond On Brickell. Around the same time last year, we were treated to a sneak peek just days before the project began closings, and it has come a long way since!
After digging into the numbers, I’m really starting to see some solid trends among these new buildings. The developer made off flush, closing on all but a handful of the units for an average of $587/square foot, or $183 million as reported by The Real Deal. Nearly 80% (77% to be exact) of the pre-construction buyers are now either trying to sell or lease their properties, and nobody has claimed their homestead exemption.
RESALES
Looking at the resale market, the outlook is pretty grim (but don’t get worked up, the rental market is better, just scroll down if you’re looking for rosy news). There are currently 68 active listings for sale, and only 2 have sold on the resale market so far. The MLS shows 6 total sales, but 4 of them were developer sales. If you figure the months of inventory based upon all closed sales combined, there are 91 months of inventory. If you only consider the true resales, that number jumps to 272 months of inventory! Either way you figure it, that is far more inventory than we’ve seen so far.
Of the apartments that did sell, again we are seeing that the sellers are not budging far in their negotiations. The developer sold their 4 listed apartments at an average discount of 4% and garnered $595/square foot. Open-market resales received 94% of their listing price with an average of $499/square foot. Although both investors garnered far less for their units than the developer, that’s not to say they both lost money.
Apartment 2508
– Originally purchased in September 2016 for $742,900. If you figure a 1.5% developer fee, that nets a $754,000 buy-in.
– The property resold in April 2017 for$620,000. If you figure the seller paid the standard 6% commission, they netted $582,800 in the sale.
– The overall investment lost the investor $171,200 (unless there are hidden factors that we can’t pull from the MLS and tax roll).
Apartment 2101
– Originally purchased in August of 2016 for $527,900, netting $535,800 after assuming the 1.5% developer fee.
– The property sold in May of 2017 for $595,000. Assuming the 6% commission, the net sale was $559,300.
– This transaction left the investor a $23,500 gain, or a little more than 4%.
Final Thoughts
Am I saying that purchasing in The Bond on Brickell is a bad idea? Absolutely not. The building turned out very nicely, with high quality finishes and thoughtfully chosen amenities. Rilea Group was also smart to purchase the air rights over the small office building next door. I see it as SLS Brickell’s not-so-garish cousin. If that is your taste, then it is a great time to get a great deal and a lovely home for years to come, just don’t buy in thinking you can flip the property for a hefty profit, because you will be disappointed.
The current price ranges are:
Studios – $268,000-$389,000
1 Bedroom – $359,000-$680,000
2 Bedroom – $667,000-$850,000
3 Bedroom – $1,050,000-$1,650,000
RENTALS
Now it is time for the good news. The rental market is very stable, with only 20 active listings currently. The building has been leasing up at an average of 18 units per month (142 for the year so far), leaving just over 1 month of inventory for tenants to choose from.
Despite the low inventory today, the average days on market is listed as 64 days. It is common to see new buildings offer a glut of inventory shortly after the investors close on their units. Everyone wants to find a tenant and fast. The lease prices drop for awhile until the majority of that inventory is absorbed and then the prices and days on market stabilize.
This trend is evident in the rental history of The Bond over the last year. Studios have leased for as little as $1,350/month during times of high inventory, but now command between $1,900-$2,350/month. One bedrooms have been as low as $1,800/month, but now are leasing between $2,300-$3,250. Two bedrooms were as low as $2,400/month but now are $3,300-$4,500. Three bedrooms were once $4,200/month, but the only one available today is $6,500.
This is not the time for opportunistic tenants to try and over-negotiate lease prices. There is very little on the market and the landlords are only negotiating to 94% of their asking price… not a huge drop.
So, while the resale market is pretty bleak, the landlords and owner/occupants in The Bond are poised for success!
Miami Condo Investments’ Most Popular Buildings in Greater Downtown Miami
I thought about doing a TBT post today, but then changed my mind. There is so much going on in today’s real estate market, why talk about the past? New buildings are opening every month, people are curious about how these new buildings compare to the ones that were new in years past. So which buildings are currently the most popular by condo shoppers?
I took a look through our Google Analytics report to see what our readers are looking at the most. In the time period from May 14, 2017-June 14, 2017, MiamiCondoInvestments.com received a total of nearly 73,000 page views. Of those, here are the ten most viewed building pages. This list does not include views of individual listings, just of the building pages themselves, where you can find inventory lists, market statistics and closed sale/rental data.
1 – SLS Brickell – 1,219 views
It makes sense that SLS Brickell would take the number one spot with an overwhelming lead. The project was very much anticipated by future tenants, owners and pool-party-goers alike. Move-ins began in late December/early January and have moved on at a rapid pace, leaving the building almost at full occupancy now, with demand still strong. Our agents alone have handed out 16 sets of keys in the building, with a healthy book of buyers and prospective tenants still shopping.
2 – Reach at Brickell City Centre – 731 views
I would have been surprised if Brickell City Centre didn’t make this list! This project was the catalyst that fueled the buying craze in Brickell over recent years and reinvigorates the neighborhood that was once a dense yet sleepy enclave of beautiful high rises that became quiet at night. Reach was the first residential tower to open in Brickell City Centre, and is also approaching occupancy. When the project initially opened, one bedrooms started at $2,400-$2,450/month, but now have risen to $2,650/month.
3 – Brickell Heights East – 715 views
The newest new building on the block also made the list, and no surprise there. Our photo tour of Brickell Heights just days before they opened was one of the most popular blog posts so far this year, and the amount of calls we get for it is a very good sign that the initial occupancy of the building will go smoothly.
4 – 1100 Millecento – 700 views
Millecento’s place as number 4 on the list was a bit more surprising, but not in a bad way. It’s not the newest building in the area, so people aren’t hungry for a preview. There’s really no drama going on with the building (that I have heard of at this time), so people aren’t looking for gossip and info. We still receive a healthy amount of calls and contact requests on Millecento, so I feel it’s safe to say that the traffic is good ol’ prospective residents. That’s great!
5 – Biscayne Beach – 638 views
Edgewater’s newest new building is also on the charts. We covered the progress & opening extensively, so it makes sense that blog readers are interested in the progress. We also have a beautiful 3 bedroom unit listed on the 30th floor with direct bay and Downtown Miami views. It is well-priced and a blank canvas inside. With the amount of attention the building receives, I feel that it will sell quickly.
6 – The Bond on Brickell – 615 views
The Bond is very popular for people who want to live in a brand-new condo in Brickell, but prefer understated elegance and high quality finishes over the kitschy excess that is SLS Brickell. We receive many calls about this building, and there have also been many of our clients who have called about SLS Brickell but then chosen The Bond. It is like SLS Brickell’s quieter sister.
7 – The Plaza at Brickell East Tower – 531 views
The Plaza is basically a Brickell staple. I was surprised that it received more views than any of the IconBrickell towers, but that just shows what the market is interested in. We did a market report on Monday about The Plaza and found that sellers and landlords fare better in today’s market by removing that horrible outdated berber carpet from 2008. There is too much competition in the neighborhood to expect buyers and tenants to sign up for old berber carpet (in case I didn’t make my point on Monday).
8 – BrickellHouse – 530 views
Despite their garage saga, BrickellHouse remains a popular building in the neighborhood. Yes, the garage is broken. No, we don’t know when it will be fixed. Despite that, the finishes are quite lovely, the views and location are great and it remains very popular among our clients.
9 – IconBrickell Tower 1 – 477 views
Of course IconBrickell would be on the list. It has remained one of our most requested buildings since it opened… even since the pool closed. The pool should reopen by the end of the year.
10 – Jade Residences at Brickell Bay – 468 views
Jade is one of the most luxurious buildings in the neighborhood, even after 13 years. Although most buildings in Brickell have beautiful bay views, Jade is where you go if you want an extremely luxurious setting with private elevators and direct bayfront. The only building it competes with is the Santa Maria, except that Jade is more modern and in a more walkable section of the neighborhood.
Do you think that the top viewed buildings on our website are surprising, or expected?
The Bond On Brickell Is Getting A Fancy New Starbucks
While passing by The Bond On Brickell this morning, we noticed that the sign has gone up on the fancy new Starbucks that is being built into the retail space on the first level. According to their construction permit, the build-out is budgeted to cost just under $100k. It is unclear whether this Starbucks will be replacing the location at Mary Brickell Village just 2 blocks away, but since the space is only 1,112 square feet, I imagine it will be an additional location.
The Bond On Brickell opened during the summer and was a success for the developers, Rilea Group. Current prices range from $319,000 for a studio to over a million for a three bedroom plan. Rentals range from $1,750 for studio to $4,000 for a two bedroom.
The Bond On Brickell Resales and Rentals Hit the Market
Two months after receiving their TCO, the first resale listings and rental listings at The Bond On Brickell are available on the MLS. The listings include a handful of remaining inventory from the developer, some being sold finished and some decorator ready.
When we toured the building in August, we got a chance to check out some of the views and layouts. They seemed very much what I expected from a Rilea building. There weren’t any crazy attention-grabbing features like the crazy/creepy/cool LED displays at SLS Brickell, just very tasteful design with extremely high quality finishes. I was impressed with the suede and leather walls, the elegant simplicity of the common areas and the themed playroom. Being a new mom myself without a playroom in my building, I paid special attention to that part.
Prices of the apartments start at $319,000 for a studio, $469,900 for a one bedroom, $685,000 for a two bedroom, $1,200,000 for a three bedroom and $2,593,000 for the four bedroom plans. There are 19 available with 8 listings being resales and 11 are the last of the developer inventory.
For the rental options, there are 11 one bedroom plans available as of today. They range in price between $2,500-$3,300, depending upon whether the apartment has a den and view of the bay.
Here is a link to our photo tour, so you can see the finishes.
Inside the Bond on Brickell, Which Just Received its Temporary Certificate of Occupancy
The lobby
The Bond on Brickell, which used to be called the Bond ‘at’ Brickell until its developers MDR and the Rilea Group secured an address and entrance on Brickell Avenue itself for the building (the name change has become something of, shall we say, a conversation piece) recently received its temporary certificate of occupancy for most of the building, and has started closings while still putting on finishing touches. It is also almost completely sold out, with only about a dozen units remaining according to a building representative. Meanwhile, it was recently reported that the first unit closings took place earlier this week. Today the building was a beehive of activity as workers got the Bond showcase ready and brokers brought their clients/current owners/us for a looksie.
On the first floor, the building’s driveway can be entered via either Brickell Avenue or SE 1st Avenue, leading to a covered porte cochere which will have a waterfall feature, and the building’s signature London phone booth. Inside, the spacious lobby itself is divided into a few sitting areas, with a fireplace, overstuffed couches, and mod chairs, giving it a bit of a British vibe. Not really British-meets-the-tropics, or British colonial, just British. Walls throughout are paneled in a variety of interesting materials. In the lobby, surfaces alternate between gray suede and dark, blood red leather. Despite its location in the heart of Brickell, the building’s interiors are hushed, due to a layer of fiberglass behind all the walls.
Upstairs, on the amenity level, a club room, library, and fitness center all look out onto an amenity deck with a large T-shaped pool and outdoor fire pit. Also on the floor is a children’s playroom which is probably the most explicitly flag-flying, ‘God save the Queen’-ing part of the entire building, with wallpaper covered in British-isms like ‘Mind the Gap.’ Mens and women’s saunas and steam room, with accompanying locker rooms, are elsewhere on the floor, slightly oddly not attached to the gym, but on the opposite side. They are tiled in contrasting black and white rocks, to moody effect.
Finally, we checked out a few units with varying layouts. Balconies are generously deep, all kitchens come standard with Bosch appliances, designed to coordinate with the dark wood cabinetry, and some units come with dens. Interior doors feel solid wood, instead of hollow, which is often the case, and door handles and other hardware is nice.
One final note about the exterior. Although renderings gave the impression of dramatic exterior lighting, it appeared that this was not (or at least not yet?) part of the final design. Where there would have been long bands of light shooting up and across the facade as of now are just bands of decorative plaster, painted a dark gray.
The Bond on Brickell is Opening at the End of the Month
The Bond on Brickell construction photo from February. Photo by Phillip Pessar.
The Bond on Brickell, the vaguely British-themed residential building under construction on Brickell Avenue, is extremely close to completion. with closings expected around the end of the month. Developed by Rilea, the central mass of the building is one block off Brickell Avenue, along SE 1st Avenue, but has an entrance directly on Brickell, as well as air rights to the building in front, preserving views. Sales are wrapping up, although perhaps slower than before in this not-so-hot market. In February there were eleven units left for sale, and now four months later there are ten. The remainders are all 1 or 2 bedroom units, listed for $495,000 to $780,000, with square footages from 796-1236.
The Bond at Brickell Releases Final Inventory, Prepares for Completion
Miami-based Rilea Group is preparing to open their latest residential tower, The Bond on Brickell. This British-inspired luxury tower has 323 total apartments through 44 floors with layouts ranging from studios, 1, 2 and 3 bedroom apartments along with exclusive lofts and penthouses.
One of the aspects we like the most about The Bond is the fact that Rilea had the foresight to purchase the air rights to the building directly east of the tower, preventing future development that would sacrifice the views of the residents in The Bond. The blocking of views has become an issue for many buildings in the neighborhood, most notably the Infinity at Brickell, whose bay views were blocked by the construction of SLS Brickell just one month after completing their initial sell-off.
Unlike most of the towers in Brickell, The Bond is one of the first to deliver the residences fully finished and ready for occupancy. Many previous buildings have delivered their apartments decorator ready, or still in need of flooring, lighting packages, paint and window treatments. The apartments at The Bond include porcelain flooring throughout, Bosch appliances and Nolte cabinetry.
The developer has released the final 11 opportunities in preparation for the opening of the tower. The remaining apartments are comprised of a mix of 796 square foot 1 bedroom units with a den up to 1,217 square foot 2 bedroom units with a den as well. Prices range from $496,900 to $689,900 depending upon size and view. Contact us for information about specific opportunities. The apartments will be ready for move-in upon closing in March.
