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Facts and Trends: Miami-Dade Condo Inventory 2003-2011

MIAMI BEACH, the small universe where I conduct business, the high end properties with the best addresses sold briskly during the first quarter of this year.  Five sales were recorded just on Star Island during the past two months, three of which closed over $10,000,000.  A record high of $25,500,000 was fetched for 13 Star Island Drive. Yes: inventories are dissipating, multiple offers are being received and nobody is building anew (yet).

SINGLE FAMILY HOMES

Lower North Bay Road, below 31st Street, has also been a HOTSPOT, with five homes going under contract or closing recently.  Most of these properties were bought with the intent to re-model or tear down for new construction by end users. Former Miami Heat center, Rony Seikaly’s, home is the exception, it traded in turnkey condition in December 2010 for $11,500,000. Today, 3114 North Bay Road is the only waterfront home available. Asking $4,500,000, the sellers are close to being permitted for a complete rebuild, which is motivating them to take it off the market temporarily, construct and re list a brand new modern home for $15,000,000.

CONDOS

The Miami Beach condo market is also thriving with inventories down and prices on the rise.  The ‘sun seekers’ have stayed in the game purchasing ocean and bay front units in the primest buildings including the South of Fifth and the Collins Park neighborhoods. Apogee, the youngest tower South of Fifth,  just unloaded one of its three penthouses for $11,500,000.  Originally listed for $22,000,000, this is a significant transaction for the Miami Beach condo market despite the incredible discount. A four bedroom, direct ocean front unit closed two weeks ago for $10,500,000 in the south tower of the Continuum. I sold a pied-a-terre at the Setai in March for $2,200psf, that’s a weighty number.

The buyer’s are international and domestic alike.  They realize that the market bottom has been reached and Miami Beach is a world class resort offering the best values in the United States if not globally. The price is right, the weather’s great, beautiful beaches and a growing sophistication!

WISHING YOU A HAPPY, HEALTHY AND PROSPEROUS 2011

Reflecting on 2010, I’d say luxe Miami Beach real estate bustled. While I maintain Miami Beach’s market hit bottom in ’09, I led many buyers and sellers on the wheel and deal as they vied for the best in waterfront estates, ocean and bay front condos and commercial interests. Here’s a glimpse into my year:

• Humbly proud to report, I brokered the highest residential real estate transaction in Miami-Dade County in 2010, listing and selling 88 La Gorce Circle for $16,000,000 in June. Believe it or not, this will look like a greater deal for the buyer in a few years.

• As a neighborhood, North Bay Road had the most action and arguably the sweetest steals for waterfront homes this year, 11 properties traded in all.  While working the transaction for the wide open bay front property located at 5718 North Bay Road, I was blown away by the selling price, $3,350,000. It was the lowest price per square foot for land and under air on North Bay Road this year, and likely numbers that the market may never see again.

• The fabled anglers spot on Hibiscus Island, Miami Beach Rod and Reel Club, I sold this month for $2,925,000. Once asking  $15M including the parking lot across the street which closed for $2,000,000, in December, this listing revealed to me that the speculators are returning. Currently there is a shortage of new construction in the high end inventory,  The Rod and Reel Club and its parking lot across the street will likely have new homes flanking the entry to Hibiscus Island in a few years. This future development will enhance the entrance to the island prompting real estate values soon.

• Capri South Beach, the newly built luxurious, bayfront condominium, changed ownership this year. Due to the economic landscape, many developers that finished projects conceived during the boom years of 2005-2006, were forced to sell, not sufficiently flush to wait out the stagnant inventory. In addition to the magnificent Miami skyline view, opulent appointments and logical floor plans at Capri South Beach, the underground parking garage was engineered by Soletanche Bachy (makers of the Chunnel). Stay tuned for new upgrades including a new lobby, landscape and spa to be completed in early 2011.

• Until recently, the short sale was not part of my professional vernacular, but realtors readily adapt. The high end of the market has its share of distress too, I represented a short sale for 1031 North Venetian Drive, the western most neighborhood of the Venetian Islands.  This $3,000,000 deal bought a newly built home with more than  6,000sf under air and 65ft of bay frontage. As urban legend weaves, the short sale is a lengthy, tireless process. Which couldn’t be farther from the truth, keep in mind it costs lenders less to short sale than foreclose.

I eagerly look forward to 2011! I predict sales will increase and as the inventory for waterfront homes and oceanfront condos dwindle, there will be a price jump.

2060 North Bay Road, Miami Beach

As the new Miami Heat guard settles in on North Bay Road, the veteran moves on. I sold Rony Seikaly 2060 North Bay Road in 2002 for $2.15M. He tore down the house and built anew, selling it last week for $11.5M/$1,228psf. I believe the buyer, Marcelo Claure-President and CEO of Miami Based Brightstar Corporation, made a fair deal. This sale in addition to recent purchases made by Heat stars Chris Bosh and Dwayne Wade, are evidence that waterfront homes on North Bay Road and Miami Beach have rebounded from the bottom.

• 9,363SF-interior
• 26560SF-lot
• 9Bed/10Bath
• 125FT-water frontage
• Built in 2005
• Builder: John Turchin
• Designer: Sam Robins

2060 North Bay Road, Miami Beach

2060 North Bay Road

2060 North Bay Road, Miami Beach

5150 North Bay Road

Sold in February 2010 for $3.75M, 5150 North Bay Road was just listed for $5.49M.

Have the flippers returned?

6396 North Bay Road

It’s official, Miami Heat star Chris Bosh paid $12.5M to have a piece of Miami Beach’s fabled waterfront. Completed in 2009, Bosh’s new home at 6396 North Bay Road has 12,000SF of living space with 100FT of Biscayne Bay frontage.

5800 North Bay Road

5800 North Bay Road, Biscayne Bay, Miami Skyline

5800 North Bay Road,  a 1929 Mediterranean estate and former J.Lo manse, was transformed into a contemporary residence fit for the twenty-first century. While maintaining the original footprint, the sophisticated contributions of designers Lorraine Letendre, Edwina von Gal and Tom Webber propel this residence to a new level of luxury for Miami Beach real estate. I’ve noticed a confidence among top end sellers today who feel the market lacks ULTRA luxury high end product, my client @ 5800 North Bay Road is a perfect example, asking a cool $29M.

The Ipe gated entry opens to a well appointed Royal Palm forest. An exotic whimsy permeates the acre plus lot with clumpy Zoysia grass, Dominican coral stone, westardly curved Coconut Palms, a Koi Pond and a continuous bay breeze. During this epic renovation, the entire roof was removed, elevating the second floor. A lofty expansiveness prevails through the  master suite and the four upstairs bedrooms. Belgium craftsman skillfully treated the interior walls creating a textural effect throughout. The finishes are exceptional; the amenities immense.The second highest residential offering in Dade County today, 5800 North Bay Road has it ALL:

• 12,152SF Living Area
• 52,881SF Lot
• 200FT of Biscayne Bay Frontage
• 7Bed/8Bath/3Half Bath
• Electronic Gated Entry
• Summer Kitchen and Pool Cabana
• New Dock and Seawall w/ 20,000lb Boat Lift and 2-Jet Ski Lift
• Wine Cellar: 800 bottle capacity
• Petz Windows manufactured in Germany
• 150 year old reconditioned wood floors
• Lutron and Crestron Systems
• Integrated Security System w/ 32 cameras
• Theater
• Elevator
• Staff Quarters
• 3-Car Garage

And if that’s not enough, new North Bay Road residents and Miami Heat Dream Teamers Dwayne Wade and Chris Bosh are moving down the street! Both paid north of $10M.

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Top 5 Residential Listings in Dade County:

1. 3 Indian Creek Drive $60M*
2. 5800 North Bay Road $29M*
3. 40 Star Island Drive $29M*
4. 420 Harbor Drive $25M
5. 1736 W 28 Street $25M*

*located in Miami Beach

5718 North Bay Road sold for $3.35M in '10: View facing west with Downtown Miami Skyline

Eight waterfront properties have SOLD on North Bay Road since February 2010! WOW, in the context of market conditions. But in my mind, not surprising. For me, North Bay Road is the Fifth Avenue of Miami Beach. Hands down the best address for waterfront property on the barrier island if you are a view devotee. Upon entering a North Bay Road home on the water, if well designed, its views instantly open up and out over Biscayne Bay, revealing fiery sunsets.

Back to the most recent deals:

• 5760 North Bay Road SOLD for $4.5M on 2/10
• 5150 North Bay Road SOLD for $3.75M on 2/10
• 4462 North Bay Road SOLD for $4.42M on 2/10
  
• 2324 North Bay Road SOLD for $3.5M on 4/10
• 6100 North Bay Road SOLD for $3.4M on 5/10
• 5718 North Bay Road SOLD for $3.35M on 5/10
• 4640 North Bay Road SOLD for $2.75M on 5/10
• 4358 North Bay Road SOLD for $7.4M on 6/10 (vacant land)

So why the frenzy? Now buyers are taking advantage, realizing there’s real value in the numbers.

5760 North Bay Road sold for $6.5M in '09 and $4.5M in '10

4640 North Bay Road sold for $3.6M in '06 and $2.75M in '10

The "Castle' in Miami Beach, Florida

My client, Bill Roedy, CEO of MTV Networks, plans to dwell on Miami Beach’s famed North Bay Road. Home to The BeeGees, Ricky Martin, J.Lo and Matt Damon, Roedy made the best deal for waterfront land in the neighborhood last week, purchasing the ‘Castle’ for $4.42M. He plans to build anew for his family.

“The neighbors are going to be extremely happy once the ‘Castle’ comes down,” Gonzalez says. “It’s been an eyesore for years.” -Miami Herald on April 14, 2010

The well heeled neighbors may rest (at least until the construction begins), directly adjacent to Roedy’s south, designer Calvin Klein resides and to his north, D.C. architect David Schwarz.

Originally built in 1925, the ‘Castle’ has been a spectacle for more than two decades since Captain Mike Burke, Founder of Windjammer Barefoot Cruises, bought and transformed the property into his medieval fantasy. Decked with moats, sharks, grotto’s and gargoyles, I often wonder how he bore 17 Star Island Drive (which he sold to Thomas Kramer in the 90′s ). Subsequently, Burke sold the ‘Castle’ in 2007 for $7.6M. It went up in flames in July 2009. Roedy’s transaction truly reflects land value. The lot is 25,427 with 145′ of water frontage–wide open, west facing frontage on Biscayne Bay with views of Downtown Miami, doesn’t get much sweeter than that!

Eight North Bay Road properties have traded or gone under contract during the last sixty days. Buyer’s are finally off the sidelines, fully realizing the great value Miami Beach real estate holds. Who isn’t taking advantage of the discounted prices for private homes and ocean front condos in 2010? Primary residents are upgrading. The renters are buying. And the seasonals, both Domestic and International (Europe, Canada, Asia, and on) are in Miami, making deals.

2046 NORTH BAY ROAD

It usually takes just one sale to break a cycle. For our purposes we focus on the ultra luxe end of the market.  In June, Shaq’s Star Island home, at one time listed for $35M, closed for $16M. Until this sale, Dade County had only seen one single family home trade above $10M during 2009. This  fall, the Sunset Island residence located at 1400 W 28 Street that was on the market for $15.9M closed for $9.5M.  The domino effect continues this week with the sale of 2046 North Bay Road which closed for $9.750M.

Originally listed for $17M, this spec estate was conceived during South Florida’s most recent boom time, 2005-06. In those days buyers and sellers did not subscribe to the BUBBLE theory. As a result, developers planned to yield large by devouring tear downs + vacant land.  Fast forward a few years to find all the bells and whistles in decadent, new construction…at a substantial discount. My buyer certainly maximized his $$$ on this transaction, the deal was pure value, the appointments alone read like a who’s who of Architectural Digest.

2046 North Bay Road Vitals:

• Smart House custom designed by Audio One (both interior + exterior)
• Private guard house
• Lot Size: 38,314SF (112 x 370′)
• Under Air: 13,056SF
• On the H2O: 112′
• Large dock with boat lift
• 80′ pool (in length)
• 3 Kitchens include: Wolf, Miele, Viking and Sub Zero appliances
• 1,700 SF Master Suite
• Waterworks bathrooms throughout
• Wine Cellar + Wine Tasting Room
• Smoking Room with advanced exhaust system
• Home Theater
• Elevator
• 4-car garage

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2940 and 2920 North Bay Road

The properties located at 2940 and 2920 North Bay Road occupy more than 96,000SF of prime waterfront land in Miami Beach; one with a dilapidated Mediterranean-style home and the other, an adjoining vacant lot. Most recently sold as one piece in 2006, the property traded for $13M. Since then, the lots were subdivided, creating two folios, which one may assume could yield a great return but, was purchased going into a bad market. Listed for $6.9M, 2940 North Bay Road closed today for $4.038M/$426SF…WOW!

And the lucky winner is? A local developer, who confided to me that this will be the last house in which he resides, it’s a keeper. He plans to renovate the 9,476SF manse. I’m all for preservation and old world style, but many buyers make the mistake of trying to save a home because they think they will spend less $$$ by using the existing structure. While under construction, at a point too far along to turn back, homeowners often realize that the renovation is costing them much more than starting from scratch. Not that he asked, but I believe that this house is a tear down. It’s in very bad condition with low ceilings and an odd floor plan. Either way, he did buy a great property at a good price and will do well in the future with this investment.

The adjacent 52,360SF of land, that’s 170FT of water frontage ladies and gentleman,  is ripe for the picking. Listed at $7.9M, who’s ready to make a STEAL?! Who wouldn’t want to be Miami Vice producer, Michael Bay’s neighbor. Formerly Hulk Hogan’s residence, Bay picked it up 2900 North Bay Road for $17M.