A Review Of The Penthouse At Brickell City Centre’s Reach Tower
If you’ve ever dreamed of living in a palace in the sky, but also dreamed of living on top of an elegant shopping district, but also dreamed of living in a condo that was perfect for entertaining AND perfect for family, then we’ve got just the thing for you. Swire has released the newly finished upper penthouse at Reach Tower above Brickell City Centre and it does not disappoint.
Before we go to the review and photos, here are the specs: Penthouse 4203
4 bedrooms, 3 baths, 2 powder rooms, 2 family rooms, 4 terraces, service quarters, rooftop pool & summer kitchen
Interior Size: 4,346 square feet
Exterior Size: 1,823 square feet
Price: $6,650,000
The Views
Starting with the views since many people in the $5 million-plus price range automatically ask for waterfront options, let me show you why I consider high floors in the city to be a better option…
If you’re in a waterfront condo, the blue water is pretty, but what will you look at after the sun goes down? Nothing. With the high floor city view, you still see the beautiful blue water of the Biscayne Bay AND the Atlantic Ocean, plus the glittering city lights at night. Gorgeous.
Speaking of water views and glittering city lights, how about you enjoy them from your private rooftop pool? Or maybe throw together a little al fresco dinner party in your summer kitchen?
To the West, you can see the city lights at night all the way to the Everglades.
The South view also offers more distant water views as the coastline tapers in through South Brickell, Coconut Grove and Coral Gables.
Now, let’s go inside for some renderings vs real life fun!
The Kitchen/Living Room Layout and Finishes
Ok, so we can see that the renderings were based on a different penthouse, but the finishes look 100% on-point, and LOOK AT THAT SPACE! I can’t even begin to think of the number of different events you could host here. Of course, if you’re a homebody like me, you could also just chill on a different sofa every night of the week and cook some crazy recipes in that kitchen.
I’m not sure what to say about that kitchen. If it were mine, I’d have platters of hors d’oeuvres filling that marble countertop for my friends and every kitchen gadget offered so that I could cook more. Heaven.
The Bathrooms
Here we are again with a rendering that was based off of another penthouse, but with on-point finishes. I love the teak shower floor. It gives a no-slip yet luxurious spa feel. Also, the backlit mirrors are typically demonstrated in sales centers and renderings, but are actually an upgrade that you don’t find out about until later. Not here. Swire delivered what they demonstrated.
The Floor Plan
Swire and Arquitectonica clearly did their homework on versatility with this layout. The way the floor plan is laid out; with the master bedroom in the front and the other bedrooms in the back, separated by the family room, it’s almost like there is a guest house.
I can see it already… a family gathering and the adults want to have adult conversations but the kids want to run crazy and do kid things. The kids can go to the family room and party with the nanny while the adults have wine and peace.
Or, it could be that the owner wants to give their guests an additional sense of privacy…. they have their own living room with a balcony.
Another thing I would like to point out is the amount of storage space! There are closets everywhere you turn AND a walk-in pantry! This is not something that is common in our marketplace.
Finally, I really appreciate the fact that they thought to separate the laundry room from the staff quarters. I always find it a bit oppressive to see the housekeeper’s bed pushed up next to the washing machine. This is 2017, not Downton Abbey. At the same time, the service quarters is not included in the bedroom and bathroom count, as they sometimes are. In this apartment, you get 4 full bedrooms, 3 full baths PLUS a bedroom and bathroom for the nanny/housekeeper who keeps your life straight.
All-in-all, I’m giving this penthouse a rave review. See below for additional photos and let us know if you would like a tour for yourself!
La Casa Reposada To Villa Leone: The Story Behind 2100 South Miami Avenue
Along South Miami Avenue at 21st Street is a vacant lot the size of the entire block that is surrounded by a coral rock wall and majestic statues of lions covered by foliage. It is evident that there is an interesting story behind the land, although after thirty years of sitting vacant, new construction has commenced. For today’s Throwback Thursday, I want to share the story and then admire what is coming next.
According to the Miami History archives, the lot was originally purchased by a businessman for use as his family’s summer home in the 1935. The design was meant to emphasize the sun and fresh air of the area, and it was a grand home! The grounds included a rock garden with a fish pond, an island with a cypress bridge for access, a rose garden, reflection pool and a marble statue. The swimming pool was able to be electrically filled with either salt water or fresh water. Of course, the interior of the home was just as grandiose and designed for entertaining. The owner named it “La Casa Reposada,” since the family intended for it to be a haven of rest and tranquility.
La Casa Reposada Around 1955 From Miami History Archives
Shortly after his retirement in 1940, the owner died suddenly and his wife sold the property at an enormous loss, for just $50,000. The son of the owner recalls finding a listening device under one of the staircases, and presumed that the original owner had used it to eavesdrop on his guests in order to obtain the upper hand in business dealings. Savage!
After a few years, the family received an unsolicited offer for purchase from then Cuban President Carlos Prio Socarras, the last democratically elected president of Cuba. The son again recollects that the closing took forever. Prio’s representatives arrived at the house with suitcases filled with cash and it took from first thing in the morning until after lunchtime to count as armed guards stood by. Prio ended up spending much of the time he was exiled at La Casa Reposada before returning to Cuba in attempt to influence change.
From that point, the house changed hands several more times before being razed in the late 70’s or early 80’s. Aside from a cement-filled pool (that I had always assumed was the foundation of the previous structure) and the signature stone wall with lions, the property sat vacant for more than 30 years… until now.
Vertical construction has recently begun on a collection of 5 homes called “Villa Leone,” I imagine paying homage to the stone lions that looked over the property for the last 80 years. The homes have a contemporary design by Borges & Associates, who have been responsible for the designs of other popular buildings including Infinity at Brickell, The Carillon on Miami Beach and even the American Airlines Arena.
The designs maximize the buildable space, including underground garages and rooftop terraces with summer kitchens and pools. Sadly, it does not appear there is room on the lot to preserve the lions. Prices are available by request.
Market Stat Monday: Buyers From Which Country Purchase The Most In Sunny Isles?
After the interesting findings in our Market Stat Monday report last week showed that Americans purchase more Brickell properties than any other country, I thought it would be interesting to see who the predominant buyers are in Sunny Isles Beach. Of course, everyone assumes that the findings will show that Russians are the most active, the community has been nicknamed “Little Moscow,” after all. But guess what? They’re not.
According to the Miami MLS, it was again the Americans who had the highest number of transactions as well as the highest total expenditure. Granted, it was a US buyer who snagged the Upper Penthouse at Porsche Design Tower, but even before that one $25 million sale, the US was way ahead of the other countries.
Overall, there were 264 closed sale transactions amounting to a grand total of $220 million in sales. In Sunny Isles, I’m not as interested in the overall price per square foot paid because the market is too polarized. We need to break that figure down into average price per foot of affordable condos in Sunny Isles, mid-range, luxury and super-luxury. In addition to those topics, we should also separate the oceanfront buildings from the intracoastal side buildings, so this is a post of its own. Of the closed sales that occurred, about half of the agents reported the nationality of their buyer. Here is how it breaks down, just scroll over or touch the graph below to see the figures.
Market Stat Monday: Which Brickell Buildings Are The Most Popular For Buyers?
During our Market Stat Monday series, I’ve started to notice a trend that there is an increasing amount of competition between condo listings for a smaller amount of buyers in the market. This led me to become curious if there are any buildings in the that are more popular among the active buyers, and some of the results are surprising!
First, we have to acknowledge the harsh reality that we have seen only 175 closed sales in the neighborhood this year. With 1,413 active listings, that amounts to over 40 months of inventory on the market JUST in the Brickell resale market. When pulling my data, I only looked at resales, not developer inventory. If you add in the developer inventory, there will be even more months of inventory.
The sellers who were able to sell did so for a neighborhood average of $389/square foot.
I was pleasantly surprised to see that IconBrickell’s Tower 3 has been a stand-out so far this year. They have seen 13 closed sales despite losing their hotel program (which I think creates an opportunity for owners). Seven of those sales took place in April, telling me that the investors agree.
Another popular option has been The Club at Brickell Bay, who saw 12 closings with an average price per square foot of $299/square foot. I am not aware of anything out of the ordinary that would cause The Club to be such a good buy right now, aside from the fact that the layouts and location are good and the price is right.
1060 Brickell has also had a good year. There have been 11 total closed sales at a rate of $346/square foot. Our statistics page only reports 9 sales, but that is because we have separated the project into the east and west tower.
I was not surprised to see Icon Brickell’s Tower 1 on the list. Buyers nearly always ask about IconBrickell, despite fears regarding their pool construction. Also, Tower 1 is one of the densest towers in town, with 712 total apartments, so it makes sense that there should be more transactions.
Brickell on the River’s South tower made the list with 10 sales, and that sort of makes sense to me. The building is well-run and the loft-layouts are unique. I typically advise investors to purchase a 1 bedroom in the South tower, but if they are looking for a 2 bedroom, to buy in the North tower. This is because the 1 bedroom plans rent far easier in the South tower because of their loft layout, but the 2 bedroom loft layouts lose a lot of potential tenants because of the lack of privacy from the bedrooms. Since there is competition from newer buildings these days for tenants, you want your investment to appeal to as many people as possible and the 2 bedroom lofts don’t work well for roommate situations or families. The price is also right, averaging $297/square foot.
Speaking of loft layouts, Infinity at Brickell is also on the list with 8 sales at an average of $319/square foot. I remember back in the day when people would complain about the developer selling apartments at Infinity for $255/square foot. Those were the days. A lot of people are under the misconception that Infinity no longer has views because of the construction of SLS Brickell next door. While it is true that SLS blocked some views, most of the units still have at least some bay views and the 00 and 02 lines still have a lot of bay views. Infinity is still one of my favorite buildings, the staff is very friendly and professional, the layouts are nice and since the building is so well-maintained, it does not look like it is about to be 10 years old. At $319/square foot, that is a great bargain for what you get.
One building that really surprised me was BrickellHouse. It didn’t make it into the top 10, but there were 5 sales this year averaging $474/square foot! That is a lot lower than the $600/foot price the original buyers paid, but is still a great number for a building that is probably about to have a special assessment that will make you do a double take and recount those zeros. On the bright side, they did finally find a solution to their parking debacle, so at least we’re moving forward.
Here is the full top10 list of Brickell buildings by transaction count:
Biscayne Beach Receives TCO But Pushes Back Closings
Image by Jennifer Behar Cervera
It has arrived! Biscayne Beach received its TCO (temporary certificate of occupancy) today, one day after it was expected, according to representatives of the developer. They were expecting the TCO to arrive yesterday, but hey… it arrived on “Miami time” and we are very happy to see this step in the right direction.
Due to disclosure guidelines, the closings are able to begin 10 days after completion. Instead of beginning today, they will now begin May 1. Since the initial TCO is for floors 7-35.
How Much Should The Owners Of Brickell Harbour Expect From Their Buyout?
Earlier this month, we reported that the owners of Brickell Harbour are being solicited for a buyout by a mystery developer. Well, the offers have come in and unfortunately (yet expected), we cannot talk about what has been offered because they are bound under a tight confidentiality clause. What we can talk about is how much the sale is likely to garner for the owners if a good deal is made.
It is common in condo buyout deals for the developer to hold the owners under a contingency stating that the sale will only take place if 90% of the residents agree to sell. Otherwise, it makes no sense for the developer to own the building since they would not be able to develop. There are always those last few owners who hold out for the most money and sometimes it works, but sometimes it just ends up throwing a wrench in the entire deal. So, how much is a realistic number for Brickell Harbour as a development site?
First, let’s look at the most recent comparable sale. The development site at 25 NE 25th Road is just over 1 acre of waterfront land with 155 linear feet of bay frontage. It is around 300 feet deep. Once you break down the final purchase price of $48 million, that works out to just over $1,000/ft of land. The units combined are comprised of 76,291 square feet of livable space or $629/square foot ($800,000 per unit for the 61 units).
25 Bay Tower Development Site
Now let’s look at Brickell Harbour. In comparison to 25 Bay Tower, Brickell Harbour is a far superior development site. Its location at the south end of Brickell Bay drive is closer to the hustle and bustle of Brickell’s city vibe, yet secluded enough to offer peace and quiet along the bay. The site offers 275 feet of linear bay frontage and half an acre more of developable space. Both sites are in the same zone for height restrictions, allowing up to 600 feet of building height. Variances can be given, but this is where we are today.
Another feature of the site at Brickell Harbour that sticks out as a big upside is the marina. Building new marinas is extremely tedious from a permitting standpoint due to the environmental impact they cause, making them nearly impossible to add. Given all of these factors, I estimate that a final sales price of Brickell Harbour would be far north of the $1,000/square foot of land that 25 Bay Tower received.
Now that we’ve looked at the comparable and determined why Brickell Harbour is worth more, let’s get down to the numbers. Using the same price per square foot of developable land as OKO Group’s purchase would amount to a $70 million purchase for Brickell Harbour. That breaks down to an average of $380,000 per unit at Brickell Harbour, or an average of $512/square foot of livable space. Add in the increased desirability of the lot size, location and added marina, we could see a purchase of $80 million!
How much do you think the owners will end up garnering at the end of the negotiation? Do you think it will go through?
Brickell Is The Best Neighborhood To Be In During a Hurricane. Here’s why. (UPDATED)
It’s been a long time, my friends. The last notable storm that hit South Florida was back in 2005, when Brickell was simply a banking center that emptied out at 6pm. Today, as we all sit in anticipation of Hurricane Matthew’s path, something occurred to me. I sure am glad that I live in Brickell. As far as safety and discomfort from a storm is concerned, I feel that Brickellians (or Brickellites) sure have it easy relative to other areas of South Florida.
We don’t have to worry about storm shutters.
Most of the residential buildings in the Brickell area were constructed with hurricane impact glass, so we don’t have to worry about the hassle of putting up our shutters. Sure, we have to clean off our balconies, but we dodge the issue of who is responsible for installing the shutters and sitting in the dark, should we decide to weather the storm at home.
Our cars are stowed away safely in the garage.
Since the parking garages in Brickell are typically in the pedestal of the building, our cars are safely parked in their spots. There is no need to worry about them blowing away or a tree falling on top of them. Also, because they are typically 2-12 floors above ground, your risk of losing your car to flood is relatively low.
We have 3 Publix locations.
Ok, so one of the locations is on the west end of West Brickell, but practically anywhere you live in the neighborhood, there is a Publix that is close enough to scurry into between swells in case you forgot something or need more beer and wine.
If you’re afraid to run to Publix, you could order from any of the countless delivery services. Sure, they may stop delivering during the storm itself, but service will be restored quickly and we can be back to our convenient living.
We will be first on the list when it comes to having power restored.
Speaking of getting back to convenient living, Brickell is one of the most populous neighborhoods in America. According to the Downtown Development Authority’s recent demographics report, there are an estimated 35,000 people living in our little neighborhood that is just over 1 square mile. We are also one of the biggest banking hubs in the nation. Because of this, the FPL regards Brickell as an important neighborhood to keep running. We are the first to receive power restoration after the hospitals. Other neighborhoods that are on the ‘high priority’ list are South Beach along Collins and Downtown Miami.
Several of our favorite go-to restaurants and bars will remain open.
Our friend and contact over at Swire, Jami Reyes, reminded me yesterday that Perricone’s is always open during storms. I also saw that The New Times has a handy list of eateries and bars that we can rely on in case we didn’t properly prepare. Here are the Brickell locations:
– Batch Gastropub: Batch is on SW 12th Street, just under the Hampton Inn. They have a full bar and amazing food (even though I still wish they would bring back their roasted peppers. Looking at you, Kevin). They also make their own Fireball, so there’s that.
– Blackbird Ordinary: This is on SW 1st Street just north of Mary Brickell Village. They have some pretty amazing craft cocktails and Jenga.
– Coyo Taco: Our local Coyo Taco is under Axis on SW 1st Street. I don’t think I really need to say more. It’s not Taco Tuesday, but it’s always time for Coyo Taco.
– PM Fish and Steakhouse: In case you’re feeling sophisticated, you can go to PM Steakhouse on 15th and South Miami Avenue for a fine cut of beef or a lobster tail.
– Perricone’s: This is a Brickell staple since forever. Perricone’s is on 10th Street, just north of Mary Brickell Village. Typically viewed as a romantic date spot and also a solid choice for a business lunch, they also have a generator and roll it out for storm days.
– Sushi Maki: They have recently moved from their original location and are now in the old Rosinella spot at 11th and South Miami Avenue.
– Tino’s: Next to Sushi Maki is Tino’s, the newest pizza location in Brickell and one of my favorites. Their pizza is top-notch. The service is really friendly and they have a really romantic secluded patio in case you visit between swells.
Does this mean that I’m skipping the preparation? No. I ordered enough LaCroix and flat water to get my family through the next few days and will pass by the store for beer and wine after work. I am thankful though that I’m not hustling with storm shutters.
If Flipping Preconstruction Condos For Profit Doesn’t Work, What Does?
Lucas acknowledged it back in November with his blog post about the success of IconBay. This week, both CurbedMiami and The New Times have concurred after a formal study proved that flipping preconstruction condos for a profit is a bad idea. The only person who makes money is the developer. But if that’s true, then why are preconstruction investments so popular in Miami?
Well for one, developers and their salespeople are incredibly savvy. They sell a dream. No investor should go into that transaction unrepresented by a trusted buyers’ rep. The representatives in the sales offices of the buildings represent the project, not the buyer. They may be supportive and have great ideas, but the sales center representatives exist and are paid to fill that building up. Always, and I mean always, have a buyers’ representative.
Aside from the savvy sales strategy, foreign investors are many times able to take advantage of our exchange rate, making their purchases less expensive than a dollar to dollar transaction. This is great, as long as everything goes according to plan over the next 2-3 years that the project is under construction. But what happens if something goes down in their country (or in the US), making the exchange rate not so attractive? (Looking at you, Brazil). These investors are now finding that their money has been parked in Miami without earning a return for the last 3 years and to add insult to injury, they are not able to resell their investments for a profit even if the exchange rate had remained favorable.
For those who like to watch currency conversion rates, we have a special treat coming up for you in the next week or so. Stay tuned, but for now let’s stay on topic…
What should the preconstruction investors do?
I am not trashing preconstruction condo sales in general, just preconstruction condo sales for short-term investment. New projects are a great idea for people looking to buy a new home, vacation home, or a long-term rental investment.
In my opinion, investors who have already purchased a condo from a developer should hold them until the inventory has absorbed. The rental values will fall over the upcoming years because the market is flooded, but the condos are still beautiful and we will bounce back.
People still want to live in Miami. The condos are beautiful, people love to be the first resident in a building, and we can chug along with the rentals until the oversupply is absorbed and prices will increase.
What about current investors who are eager to make a profit short-term?
One option to make a relatively quick profit in the Miami condo market is to buy in a building that has upside potential. This would be a building that is in the process of solving litigation, is nearly finished reselling a batch of distress sales, or has some other reparable defect. The defect would drive the sales price down, then resell after the issue has been resolved. I have had investors experience success in this strategy at the Vue at Brickell, Neo Vertika, and Latitude on the River in Brickell and Blue Condo in Edgewater.
One investor purchased an apartment through a foreclosure sale at Vue at Brickell in 2010 for $159,000 (true story). He leased the apartment for a couple of years and then resold it for $375,000 after the distress sales were all absorbed. He made a small return on the rental and then cashed out. Some of the buildings that I think are good opportunities now for this strategy are BrickellHouse, IconBrickell, and 500 Brickell.
We all know about BrickellHouse’s trouble, but once their parking situation is fixed, the sales prices will rebound. Since the rental prices haven’t been affected relative to the sales prices, it would be a good investment option. The same holds true for IconBrickell, although I anticipate their rental prices will be affected more than BrickellHouse since the pool area of Icon is one of the big draws for tenants there. 500 Brickell is still working through the litigation surrounding the Chinese drywall that was discovered three years ago, making mortgages near impossible and driving the sales prices down. Since the actual apartments have long since been repaired, it is a popular building for tenants.
Another strategy would be to buy an apartment in a building that has a unique quality that is attractive to tenants. Some of my favorites for this strategy are Jade Residences at Brickell, Infinity at Brickell, Blue Condo in Edgewater and MarinaBlue in Park West.
The views, layouts and quality of Jade are unsurpassed, making it a popular choice for buyers and tenants alike. It is one of the few buildings in Brickell that will always retain its view because it is direct waterfront.
The layouts of Infinity are unique, there are not many buildings that primarily offer duplex lofts in the neighborhood. The sales prices have been pushed down due to the fact that the SLS Brickell construction has blocked many of the east-facing views, but the building remains a popular choice for tenants because it is one of the only options for people who have large pets.
MarinaBlue and Blue Condo are sister buildings. They both have really great floor plans for roommates or families and tremendous views that are protected. Pets are welcome for tenants and they are in great condition despite being around 10 years old.
These are the buildings that I prefer to pitch to investors who are new to the Miami market. Preconstruction opportunities have their place, but in my opinion are better for vacation homes or primary residences than investors. Let me know which buildings are some of your favorites and why. I’m always open to hear other suggestions.
Friends of the Underline Host UnderLounge Event in Brickell
The Underline, Miami’s new 10 mile linear park that will be installed underneath the Metrorail tracks from Brickell to Dadeland South, is inviting everyone to a free festival at underneath the Brickell Station. The event is called The Underlounge and will take place Saturday, October 15 from noon-6pm.
There will be activities for all ages including face painting, the world’s longest mini-golf hole, interactive chalk art madala, pop-up dog park & pet costume contest, caricature artist, balloon animals, kids play, fitness classes, yoga, and of course – a DJ. I already have my dog’s camel costume ready to go.
The Underline is being designed by James Corner Field Operations, the same designer of the popular High Line in New York City. The $120 million project will be funded by donations from developers (including Swire’s $600,000 contribution), impact fees from developments built within 1,000 feet of the metrorail, private donations and was recently approved as an EB-5 project.
Construction is set to begin next fall on the Brickell segment. Initial funding for this segment was the first to be received and we are very much looking forward to utilizing this space!
