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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

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.

Aerial View: Sunset Islands, Miami Beach, Fl 33140

Current Back View: 1460 W 28 Street, Sunset Island 1, Miami Beach, FL 33140

Rendering/Back View: 1460 W 28 Street, Sunset Island 1, Miami Beach, FL 33140

Aerial Rendering: 1460 W 28 Street, Sunset Island 1, Miami Beach, Fl 33140

The Sunset Islands is an exclusive neighborhood of luxurious single family homes located in Miami Beach overlooking Biscayne Bay to the west. The community of both waterfront and non waterfront properties is comprised of four guarded islands located between 21st and 29 streets. Sunset Island 1 and 2 are accessible through 29 Street, west of North Bay Road. Entry to Sunset Islands 3 and 4 is at the southern most part of North Bay Road on 21st Street. The Sunset Islands attract a variety of  residents including celebrities, Anna Kournikova and boyfriend, Enrique Iglesias; South Beach Diet author Dr. Arthur Agaston; Miami Beach developer, Steve Muss who acquired his home from rockstar, Lenny Kravitz ; architect Chad Oppenheim; as well as many pillars in the community. Yachtsman seek out the The Sunset Islands as the location offers no fixed bridges, allowing larger vessels unrestricted access to the Intracoastal Waterway and the Atlantic Ocean.

I just reduced the list price of 1460 W 28 Street, a waterfront home on Sunset Island I, from $4.395M to $3.99M. Prices have not been in this range since the early part of the Millennium. This particular property has an open floor plan, classic appointments and abundant natural light. The sellers have plans designed to construct a new home, however the current structure, built in 1947, is charming and beautifully maintained. Either way, the property is a bargain, where else in Miami Beach can one find a home on a guarded island, with 100FT of water frontage for less than $4M? Currently there are four waterfront properties offered for sale on Sunset Island 1. These homes are all located on the same street as 1460 W 28 Street, but the asking prices significantly exceed this property, ranging from $29.9M to $4.5M.

1460 W 28 Street: Property Highlights

• Lot Size: 20,000 SF
• Interior Living: 3,643 SF
• 100′ of water frontage
• Boat dock
• 4 bed / 3 bath
• 2-car garage
• No fixed bridges
• Plans for new home

2008 Closed Sales: Sunset Islands *

SUNSET ISLAND 1:

• 1525 North View Drive sold for $6.25M

SUNSET ISLAND 2:

• 1401 West 27 Street sold for $10M
• 1425 West 27 Street sold for $5.7M

SUNSET ISLAND 3:

• 2277 Sunset Drive sold for $4.6M**

*These four waterfront homes which sold on the Sunset Islands in 2008 had an average sale price of $877.19 SF

** I will take credit where it is due, this was my listing, and I sold it directly to the buyer

FRONT FACADE: 6050 NORTH BAY ROAD, MIAMI BEACH, FL

One of my clients, like many buyers today, was having an identity crisis. Who was he, an owner or a renter? Until last week, he was a SIDELINER, a browser looking for a deal in the Miami Beach real estate market. He was on the verge of leasing a unit at the Continuum I on South Beach, when I introduced him to a mid century modern house at 6050 North Bay Road. This property was on the market for less than two weeks, my client recognized the opportunity I presented him with and jumped on it! Calculating the numbers, he concluded it was more cost effective to maintain the house than spend $10,000 a month renting a 2/2 in the Continuum I. Built in 1951, 6050 North Bay Road sits on a lot just under 20,000 SF with 77 FT of water frontage, unobstructed views of Biscayne Bay and a spacious interior with over 4,000 SF. Next door neighbor, Oscar Award winning movie star Matt Damon, paid $4.2M in December 2005 for virtually the same size lot, although the house was a tear down. Damon’s primary residence was acquired in April 2005 for $10.3M.

INTERIOR: 6050 NORTH BAY ROAD, MIAMI BEACH, FL

VIEW OF BISCAYNE BAY: 6050 NORTH BAY ROAD, MIAMI BEACH, FL

Miami Beach Luxury Waterfront Homes for Sale

Currently, there are 17 luxury waterfront properties for sale on Miami Beach’s North Bay Road with an average asking price of approximately $1,400 SF. In 2008, 10 waterfront homes sold on North Bay Road with an average price of $1,100 SF, and they are as follows:

1. 5790 North Bay Road sold for $16.75M
2. 5050 North Bay Road sold for $13.1M
3. 4420 North Bay Road sold for $9M
4. 5396 North Bay Road sold for $6.8M
5. 6380 North Bay Road sold for $5.6M
6. 2012 North Bay Road sold for $5.4M
7. 6410 North Bay Road sold for $5M
8. 6010 North Bay Road sold for $4.6M
9. 2040 North Bay Road sold for $4.1M
10. 5004 North Bay Road sold for $3.075M

You do the math, seems my client scored receiving a $1M rebate, paying $798SF or $3.2M for 6050 North Bay Road.