CNBC’s Diana Olick discussed the Miami condo market this past Monday on her segment entitled “Spring Realty Check”. She reported that the market is once again heating up and that many investors, who believe this is the bottom, are buying condos in bulk.
http://plus.cnbc.com/rssvideosearch/action/player/id/3000010427/code/cnbcplayershare
About a month ago, Penthouse 4901 at Santa Maria came back onto the market at an asking price of $14.9M. The bi-level penthouse has an amazing 10,000 square feet with 3 bedroom/5 bathrooms and a private Jacuzzi and sauna in the master bedroom.
Santa Maria is located at 1643 Brickell Avenue, Miami, FL 33129.
Posted in 33129, Brickell Condos, Luxury Condos, Miami condos, Penthouses, Santa Maria
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I met with a sales rep today who works for Ten Museum Park to go over pricing and availability for a few out-of-state clients who are interested in buying a condo unit there. I took in a lot of good information during my 30 minute meeting and want to share it with everyone. Ten Museum Park has received its TCO (temporary certificate of occupancy) and closings for units on the first 35 floors will begin shortly. I learned that the developer will grant one extension to people scheduled to close. Then, a letter will be sent out notifying the contract holder of a firm closing date. They will be charged for each day that they are unable to close at an 18 percent APR.
There are a lot of great deals currently available at Ten Museum Park. People holding contracts for condo units in the building were required to put down a total of 20% in deposit money. The first 10% was payable in January 2004. The second 10% was due in December 2004 when the building broke ground. Many of those people are currently looking for a purchaser to step in and close for them. In many cases they are willing to sell their unit at a price point that would allow them to break even or accept a small loss. This is an opportunity to get in at January 2004 pricing. The developer charges the contract holder a transfer fee of 3.75 percent and a co-broker fee of 3 percent. Most contract holders have factored in this cost to compute their break-even point. The worksheet below will show some of the deals that are available. The majority of these deals do not appear in the MLS. The data used to create this spreadsheet was provided by a sales agent working for Ten Museum Park.
The best deal in the building right now is unit 1607. As the worksheet reveals, it has a price per square foot of $363. That is remarkable for a building of this caliber!
Ten Museum Park is located in a neighborhood now known as Park West. Besides Ten Museum Park, Park West will have three additions to the neighborhood in the next 12 months. These include the following:
There are a few things that I love about Ten Museum Park. One, is that it only has 200 units. I definitely wouldn’t call it a boutique building but it isn’t a monster development either. Two, the price per square foot is much lower than in these other buildings. The building was able to launch sales and begin construction in 2004, prior to when construction costs began to escalate. These other developments weren’t as fortunate and had to price their units in accordance with the higher construction costs that needed to be taken into consideration. I also love the open floor plans at Ten Museum Park. If you’re a fan of lofts then you’ll appreciate the layouts of the units at Ten Museum Park.
I learned today that when the real estate market was red hot, a few of the “04″ units sold as high as $1.3M during resales. Those people are pretty screwed. Fortunately, the lender, Mellon Financial Corporation, only allowed the unit to be resold a maximum of one time. It may seem logical for some of these buyers to walk away from their deposits seeing that comparable units are now on the market at a 38% discount to what they paid. If one of the resale buyers walks away from their deposit then the initial buyer is on the hook to close. I learned, however, that if this scenario were to occur, the 20% deposit forfeited by the second buyer would be applied to the initial purchase price of the first buyer. That is a pretty sweet deal! An instant 20 percent in equity just like that.
I’ve scheduled to have a tour of Ten Museum Park late next week. I’ll be sure to take lots of pictures and shoot as much video as I can. I’m looking forward to seeing the penthouse unit with the 1,298 square foot rooftop terrace and vitality pool.
Word came to me today that an early contract holder at Icon Brickell has passed away and his contract is up for grabs. The contract has passed from his estate to the developer and The Related Group has it back on the market at the initial price offered when it was purchased in mid-2005. Icon Brickell sold out relatively fast in 2005 and availability is now limited to the condo-hotel units in the Viceroy tower. The Related Group is the most successful developer in Florida and has the reputation of selling out their buildings within the first week. They are known to price their units very well and to leave profit on the table for purchasers rather than squeeze every last penny out of a project. They price their units slightly below market, sell out and then move onto the next project. Great business plan, and it has worked quite well for them.
The condo unit that just came back on the market is unit 2703, located in tower one of the Icon Brickell development. It is floor plan B, which has a southeast view. The picture below will give you an idea of the view that you would have.
It is a 2 bedroom plus den/2 bath with 1,503 square feet of living space and has a 219 square foot balcony. It is priced at $916,000, or $607 per square foot.
Icon Brickell is the second development with the Icon name attached. Icon South Beach was the first and is one of the most well known buildings in South Beach. Icon Brickell is sure to be as spectacular as its South Beach counterpart. The picture slideshow below will show you some renderings of the building and amenities.
Existing home inventories are up, foreclosure rates are rising and mortgage rates continue their ascent – talk about bad medicine for the current lackluster real estate market! CNN.com reports that 30-year fixed rates have jumped to 6.53%, their highest level in 10 months. While rates, a year ago, were slightly less than they are now, the state of the real estate market was in much better condition 12 months ago. An increase in rates now only amplifies the problems that exist.
The Mortgage Bankers Association (MBA) expects 30-year rates to hit 7 percent by year’s end. The Mortgage Bankers Association (MBA) and the National Association of Realtor don’t foresee a recovery until the beginning of 2008. This foreseen recovery has been pushed back a number of times, and at one point early this year a slight increase in home prices for 2007 was predicted. In real estate markets, such as Miami, I expect this recovery timetable to continue to be pushed back until early 2009. The number of new units coming to market actually increases next year and doesn’t drop off until the following year. There’s no denying that the South Florida real estate market is a safe long-term bet as it will become one of the top retirement destinations for the millions of Baby Boomers set to retire in the next ten years, but demand has to catch up with supply. That will take some time.
Those people holding preconstruction contracts will soon seek financing to close on their condo units. For those that are questioning whether to walk away from their deposit or to close on their condo unit, the ever increasing rates will make their decision a little easier.
Today, I discovered a 3 bedroom pre-foreclosure at Uptown Lofts. Built in 2005, Uptown Lofts is a relatively new building. The building has a concierge, swimming pool, gated parking, club room, sauna and fitness center. It is located on the corner of Biscayne Boulevard and NE 23 Street, in the Arts District of Miami. Uptown Lofts has a total of 66 units.
I went over and checked out the 3 bedroom pre-foreclosure an hour after I found out about it. I’ve seen other units at Uptown Lofts in the past, but I wasn’t aware that some of the Penthouse units have 20-foot ceilings. That is, until today. The 3 bedroom/2 bathroom pre-foreclosure has 1,950 square feet of living space, 20-foot ceilings, stainless steel appliances, a huge wrap-around balcony, spiral staircase, stackable washer/dryer and a fantastic view of Biscayne Bay. This spacious corner unit has exposures to the east and north. It is considered a 3 bedroom unit but only one of the bedrooms is closed off. Because it is a loft unit, the two bedrooms upstairs are open and do not have any separating walls.
The owner of this unit paid $599,900 in November 2005. A foreclosure notice was posted on January 12, 2007. The bank is going to take possession of the property soon unless someone steps in to take it off their hands. The price of the 3 bedroom today was reduced from $550,000 to $535,000. That is already less than $275 per square foot. I wouldn’t be surprised if the bank accepted an offer slightly less than $250 per square foot. That would be an amazing deal! It is next to impossible to find a property for under $300 per square foot in a recently constructed building with a direct, unobstructed bay view in the Arts District. $350 per square foot is more like it. The monthly maintenance fees are $987 per month.
The unit does need a little work. Judging by the condition of the unit, it seems as though the owner has abandoned the property. I would definitely repaint the whole unit and install new floors. The carpeting upstairs definitely needs to be torn out but the tiles downstairs can stay if you’re looking to minimize expenses.
The picture slideshow and the video below will show you what I saw today at the 3 bedroom pre-foreclosure unit at Uptown Lofts. Let me know if you have any questions.
I was pretty amazed by the amount of viewership and feedback received today concerning the various problems occurring at Neo Vertika. While I love receiving the emails, I would love for everyone to share their comments with each other in an open forum. Information is much better received when it is coming from multiple sources rather than one source interpreting the opinions of others. We all benefit from the voice you hold inside. Feel free to leave comments and provide your own unbiased opinions.
Below you will find a picture slideshow and a video of the Viceroy South Beach sales center. The Viceroy South Beach is currently accepting reservations. This Saturday, June 9, 2007, is the sales launch party which will be held at the Viceroy South Beach sales center and La Piaggia. Prices will increase 5% for any contracts accepted after Saturday.
Viceroy South Beach residence privileges include:
Gracious Concierge Services at Viceroy South Beach include:
Spectacular Residential Services at Viceroy South Beach include:
Professional Business Services at Viceroy South Beach include:
Viceroy South Beach residence kitchen selections include:
Viceroy South Beach residence master bath selections include:
If the building, Neo Vertika, were a stock, I’d be selling it short all day long! This is a follow-up to a previous entry that I wrote on May 21, 2007 entitled, “Shoddy Construction at Neo Vertika?“. Now, there is no question about it.
When I wrote that piece, I had heard about all kinds of problems from residents including three major water leakages, the sprinkler system needing to be replaced in the entire building and each individual unit, and the air conditioning system being unusually loud. I didn’t realize just how bad it was until today. A client of mine, who is renting a Penthouse unit at Neo Vertika, sent me some pictures of the present condition of his condo unit. He began his lease at the very end of April and still has not been able to move his belongings into the unit. It goes without saying that he is looking to break his lease and get his money back. After seeing the following pictures I don’t blame him one bit. Work to replace the sprinkler system in his unit began last week, and he was told that it would take a total of 2-3 weeks. This is occurring in each and every condo unit in the entire building! Neo Vertika is not even one year old yet.
Imagine how high the cost of insurance will be for the building after all the work has been completed. I’m predicting that within the next six months, the association will increase maintenance fees and/or declare a special assessment. If that happens, which I feel is inevitable, prices at Neo Vertika will surely continue to head south.
