Terra Beachside Villas

A recent news article by the South Florida Business Journal relays that Regions bank has filed new foreclosures against the Miami Beach FL Real Estate projects Terra Beachside Villas and Terra Beachside Villas II completing three foreclosures against BSG Development. The previous foreclosure was filed in October on BSG’s Cabana on Collins project with the developer taking $98.2 million in mortgages from Regions Bank. These three projects were planned and sold within a 3.7 acre construction zone off 6000 Collins just one block from the ocean. These were sold in 2004 & 2005 at a premium and the construction progress seemed to be moving along just fine with punch out work and final finishes before the C.O. & closings. What happened after they repainted the ugly blue front entry cylinder…? A few months ago, I noticed the workers hadn’t been around for awhile and the construction came to a standstill. Apparently, over a dozen contractors have filed liens on the subject properties and this is true proof of the downside to this real estate downturn based on over development, overpricing and smoke & mirrors as these were primarily sold to speculators.

Based on the Article, BSG had $46.4M in loans from Regions with Terra Beachside Villas plus $8M from Miami based Royale World Metropolitan which sold the property to BSG in 2004. Additionally through Regions, $11.6M was secured on Terra Beachside Villas II and $40.2M on the 210 unit project Cabana on Collins.

BSG was cofounded by Sieger and Suarez, of the Miami based Sieger Suarez Architectural Partnership, which has designed buildings such as Fort Lauderdale’s Las Olas River House, Miami Beach’s Portofino Tower and Sunny Isles Beach’s Trump Ocean Grande. The architecture firm is also a defendant in Regions Bank’s lawsuits. SFBJ Article December 8, 2008

I’ve always wondered how they planned to prevent flooding from the basement underground parking garage?! As a matter of fact, Terra Beachside Villas is a great new development if you like the neighborhood and being in the center of two busy streets. Hey it is across the street from the ocean. I see the Terra Beachside Villa property eventually being finished and selling these 2 story townhomes around $300k. Because of the scarred reputation, Terra Beachside will have to change their name like Regions did! Remember Union Planters Bank…? Yes Regions, we didn’t forget you either.

South Beach to Sunny Isles Real Estate Consultant, Micro Economist. If you’d like to receive the latest local real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper left column) or by email above every time a new posting occurs. The new JADE Condos Sunny Isles.com is now available! Have a great week and call any time toll free 1.888.383.7326 or view new condos here.

CLHMS & Million Dollar Guild

News Release

FOR IMMEDIATE RELEASE

Local Real Estate Professional Recognized for Million-Dollar Successes Ashton Coleman Earns Membership in Prestigious Million Dollar Guild

(Miami Beach FL, December 1^st) R. Ashton Coleman, of Keller Williams Miami Beach, has been recognized by the prestigious Institute for Luxury Home Marketing for his recent performance in the million-dollar and above luxury home market within Sunny Isles Beach.

“Real Estate professionals who have earned admittance to The Institute’s Million Dollar Guild not only have specific upper-tier market knowledge, but they also understand the unique needs of affluent buyers and sellers and recognize the importance of being discreet,” said Institute President Laurie Moore-Moore. “Whether you’re buying or selling a multi-million dollar property, you can depend upon The Institute’s Million Dollar Guild members to have the competencies necessary to help you meet your objectives.”

“To have this recognition of my accomplishments in serving Sunny Isles Beach is an honor,” said Coleman. “It has strengthened my commitment to the community and its residents.”

Members of the Million Dollar Guild are Certified Luxury Home Marketing Specialists (CLHMS) who have documented their success in assisting affluent buyers and sellers with million-dollar properties. The recognition is awarded by the Institute for Luxury Home Marketing which trains real estate agents in the luxury home market and awards international designations to those who meet stringent performance standards.

Coleman has been in the Miami Beach FL real estate market since 2002 and specializes in the luxury oceanfront real estate market. “I’ve created a very effective global marketing platform through my network affiliations, websites and micro economic analysis reports via blogging ensuring proper real estate exposure with solid results.”

About The Institute for Luxury Home Marketing

The Institute for Luxury Home Marketing exists to help real estate professionals around the world provide high quality service to buyers and sellers of luxury properties. Institute members have completed special training to build expertise in the marketing of upscale homes and estates and those who meet performance standards may earn the prestigious Certified Luxury Home Marketing Specialist designation. Information and an international membership list can be found at www.CLHMS.org. Members are also listed on the Wall Street Journal’s RealEstateJournal.com website.

Contact: Ashton Coleman | Real Estate Sales Consultant | Keller Williams Miami Beach | MiamiDreamRealty.com | Telephone: 888.383.7326 | Direct: 305.978.7704 | Fax: 866.427.4224 | Email: Ashton@MiamiDreamRealty.com

Sunny Isles Oceanfront

“I don’t want to give it away,” is occasionally the response heard when honest property values seem far too low from the seller’s perspective. When selling your Miami Beach Condo or Home, if you interview 3 sales associates, there’s always 1 who doesn’t know the market or didn’t do their homework or both. These associate will spend countless hours of wasted time (yours & theirs) relaying smoke & mirrors on something overpriced and not even in the playing field.

What’s it take in today’s Miami Beach buyer’s market? The right price… We currently have a pricing WAR and a beauty pageant all rolled into one. That’s right a WAR to sell. It’s you against the bank owned steals and or the motivated who must sell today with an average 36 months of inventory! When the market was geared for seller’s in 2002, 2003, 2004 & 2005 it was common to base the asking price on what recently sold with an increased value from the previous sale price. For instance, if your neighbors Miami Beach Condo sold for $500K, then yours was worth $515K right!? How easy that was and it sold fast! We were holding 20 to 30%+ as strong appreciation each year. Not anymore as the market has now depreciated 35% along the Miami Dade Beaches since the peak in 2005; and so now when the current neighbors property has just sold for $500K it’s a hard pill to swallow when yours might only be worth $485K. So what’s the right price…

So how about pricing it at $550K and waiting for an offer? Well this is still a frequent “old school” strategy used by many sellers and not very effective in a strong buyer’s market. You can have your property on the market, yet not in the market and that’s where a lot of disgruntled seller’s are sitting and or chasing property values (Caveat: I AM GUILTY of working on overpriced listings with the traditional pricing approach). It’s the “20 zone or 1%ile” where you better be with your pricing and with so much inventory, today’s savvy buyer’s don’t care to see overpriced (they’re abundant) Miami Beach condos. They are seeing the good Miami Beach Condo deals and making cash offers.

BUYERS be informed that the Miami Beaches condo market average Sale to List Price Ratio is at 90% of list… and ”Steals” do not win the race with low ball offers. They just don’t. Reviewing many Miami Beach FL condo “deals” I’ve seen Sale to List at a very rare 25% of list yet with a “steal,” to play the game it’s 15% off list max and there is probably another superior cash offer just around the corner. YES, the Investors are again actively pursuing & acquiring Miami Beach Property Deals & Steals. I just noted a loft at Bay View Lofts which is now under contract around $250K and was valued by Dade County 2008 at $616K ie) “steal!!” The REO asking price was slowly reduced from $367K to $279K and it’s an obvious no brainer Miami Beach “steal.” Rental Income actually hits the investment mark at attractive numbers (approximately $2,100) monthly. PS. Purchased in OCT2006 at $705K, YES!

Sunny Isles Beach Pier

So what is this post about already? It’s about the most effective, tried & true strategy to show you results and it’s The “Traffic” Approach. Take notes as you simply price it where the market direction is headed and of course in a superior position with active competition. It’s that easy and the goal is setting the initial real estate buzz , getting ample foot “traffic” within the first 2 weeks and ultimately, multiple offers. Multiple Offers!!?? In this market…? YES. You price it right the first day and not only is the sale fast (see STATS below) & stress free but there are likely to be multiple cash offers with no conditions and smooth sailing. I just sold a “deal” at Barbizon Beach Club (530 Ocean Drive) within 2 weeks from start to finish. Did you give it away? NO, but it was priced “in the market” and the cash offer came in within 4 days and sold at 14% of list (SP/LP Ratio). BAM! Happy Seller with $100K as profit (before Uncle Sam’s 15% ). Today’s vultures know values, they are watching this Miami Beach FL real estate market closely and if the price is right, make offers. Job done right and it’s all about the price with condition in second.

SELLERS, Quit chasing the market down like a slinky down the stairs! Here are the interesting facts to let marinate… In looking at MLS closed sales from the last 90 days, (Criteria: Collins Avenue, Sunny Isles to South Beach, Oceanfront) we see 120 sales occurring. Out of these 120 sales there were 31 which sold in less than 60 days with an average Sale to List Price Ratio at 91.89% (Averaged 29 Days On Market). Out of those 31, only 3 had price reductions! Meaning they were priced to sell and sold fast. This doesn’t mean they were given away but simply met the market value for the property. Here’s the flip side to these STATS, there were 12 that sold after being on the market over 1 year with an average Sale to List Price Ratio at 80% (Averaged 487 Days On Market)!

Nobody makes it as easy as the R.E. Zebra!

I assure you you are not dealing with a rookie here but a Miami Beach Micro Real Estate Economist of Choice. Quick playing games with your money and carrying these hefty monthly expenses. It doesn’t add up to “test” your values with smoke & mirrors! However, I welcome any feedback as long as it’s constructive and related. Have a different perspective or want to add to the message… Please, you are invited to comment!

Thinking of selling and have equity? Let’s go before capital gains tax is doubled increased next year. Today is the time & there is no better time than today! Warren Buffet said this… “Be scared when everyone is greedy and be brave when everyone is scared” Thinking of Buying and have cash? I’ll be creating a new “30 Best” Page soon where I will showcase the best 30 condos I’ve studied and are positioned to sell within the first few months (Market Average DOM =130). If you’d like to receive the latest local real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper left column) or by email above every time a new posting occurs. Have a great week and call any time toll free 1.888.383.7326 or view new condos here.

Keller Williams Realty

Inman News just reported that Keller Williams Realty, the fourth largest real estate company in the US, set a benchmark in customer service & satisfaction. The J.D. Power and Associates 2008 Home Buyer/Seller Study surveyed 3,200 people who bought and or sold a home between April 2007 and June 2008 through the nations largest real estate firms. Buyers gave Keller Williams the highest overall satisfaction ratings.

“Although the California based marketing research firm has conducted similar proprietary surveys for brokerages’ internal use, this is the firm’s first “syndicated” study of customer satisfaction in the real estate industry. J.D. Power funds syndicated studies itself, releasing the results publicly and awarding trophies to top scoring firms. On a 1,000 point scale, satisfaction averaged 794 when customers sold their homes in five months or less, but declined to an average of 730 when the process took seven months or longer.” by Inman News

This J.D. Powers and Associates study found that it took sellers an average of 6 months to close their home with 23 percent having listed their home with another broker before finding success in the sale. In my personal opinion, this is typically because the second agent confirmed the correct pricing, due to the local market conditions, that the first agent failed to accomplish. The Four factors that were considered in the overall satisfaction experience when selling a home were; agent (43 percent), marketing (38 percent), office (12 percent), and services (7 percent) while the home buyer satisfaction experience was determined by Three factors including; agent (65 percent), office (21 percent) and services (13 percent). Keller Williams had the highest scores in all three areas along with the top overall score of 831 followed by Prudential (820) and Coldwell Banker (816). Word of Caution Wisdom: Your Real Estate Satsifaction Experience is based on the AGENT alone when buying or selling Miami Beach FL Real Estate.

“When buying a home, customers particularly appreciate agent professionalism, responsiveness to calls and e-mails and the agent’s skill in locating and showing properties in the appropriate price range—all areas in which Keller Williams excels,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “Although the Internet provides home buyers and sellers with the ability to perform some essential tasks—such as listing a home for sale or researching a neighborhood in which to purchase a home—it still does not replace the importance of a good real estate agent,” said Howland. “Particularly in an uncertain real estate market, professional advice from agents can be especially valuable to buyers and sellers. The knowledge and expertise provided by experienced agents is an important benefit of using a full-service real estate company.” J.D. Power and Associates.

Keller Williams Miami Beach

The Miami Beach Real Estate Blog has now surpassed 20,000 viewers! If you’d like to receive the latest local real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper left column) or by email every time a new posting occurs. Have a great week and call any time toll free 1.888.383.7326 or view new condos here.

Florida now surpasses New York for the number of Millionaires. Compiled from the I.R.S. & WSJ, a new wealth statistics report released shows Florida grabbing the #2 spot for the nations wealth statistics with 199,000 residents showing a net worth of $1.5 million or more as of 2004 numbers. New York was just behind with 168,000 residents though California continues to rule the nations wealthiest position which boasted 428,000 total millionaires. This is likely to be the first time in history that the I.R.S. has documented Florida beating New York for number of millionaires. This could be due to Florida not having State Income tax as wealthy retirees see Florida as the prime retirement destination. Texas rates as the top 4 position with 108,000 people with a net worth over $1.5M with Illinois rating 5th place.

Sunny Isles Beach

An interesting trend to note reveals the nations top millionaire states as deriving their net worth from real estate, which the I.R.S. calculates. About 40% of California’s residents net worth was directly in real estate (remember these are 2004 figures). Florida was slightly more than 20%, and New York was slightly less than 20%. The new updated figures should be very interesting with the real estate market downturn of 2005. This should be especially noted to the California & Florida millionaires with New York being less volatile these past 3 years. Many investors are now seeing Miami Beach FL real estate as an opportune time to begin investing again with the bottom in sight. It’s time to start building your wealth! If you’d like to receive new blog postings & updates once available, you can easily be notified by RSS feed (see upper left column) or by email every time a new posting occurs. Have a great week and call any time toll free 1.888.383.7326.

Lifestyle of the Rich & Famous (Part1) takes us to 88 La Gorce Island in Miami Beach FL real estate with an asking price of $25M USD (List Date JAN 08). This home is built on 27,900 Square Feet of prime (Eastern shore of La Gorce Island) waterfront (136 x 204) land. Completion is scheduled for early 2009 and the details are tremendous…

The home, known as Villa Okto, is a 2 story modern estate with 20,000 square feet of interior living space. The 9 bedroom home is comprised of 10 full bathrooms with 4 half baths, a wonderful chef’s kitchen, commercial elevator, impact resistant doors with a 40′ opening, an enormous rooftop terrace and best of all, 5 garage spaces for your treasured collection. The guest home is made up of 1 bedroom (of the 9) with 2 bathrooms. There is an elevated cabana with full bathroom plus a 2 bedroom (of the 9) 2 bathroom staff quarters with a full kitchen. The home is equipped with an 80′ lap pool and comes fully furnished. The masterminds behind the design are none other than Todd Glaser (with Touzet Studios) of Miami who is known for the Hogan home and has appeared on HGTV.

Just as Jorge Perez has been heralded as the King of Condominiums, Todd Michael Glaser can be called the Heavenly Father of Homes. While other real estate developers are working with a plethora of inventory, buyers are lucky to get their hands on a property developed by Todd Glaser, to the point where Ugo Columbo purchased The Fisher Estate when Glaser was only half done with the renovations. ~ HauteLiving.com

If your looking for a modern luxury waterfront estate in Miami Beach this one’s it… In this video below we see a brief glimpse of the neighborhood and at minute :50, you’ll see the property 88 La Gorce Circle, the parcel of land with “what once was the home” along with what I believe to be another of Todd’s masterpieces (minute 1:18 you’ll see this gem) at 94 La Gorce Circle. {Sold in 2006 for $8.6M and at only 90 days on the market!} Oh btw, if you haven’t subscribed to this blog yet, do it now! If you’d like new blog updates once available, you can be notified by email or by RSS feed (see upper left column) every time a new posting occurs. 1.888.38.DREAM

Miami led the pack as the cleanest city in America as the Sunshine State dominates the 2008 list by Forbes.com. Four metro areas ranked in the top 10 with Jacksonville (No. 3), Orlando (No. 4) and Tampa St. Petersburg (No. 8). With built in advantages of weather patterns that blow out smog with warm sea breezes, there are also city efforts for cleanliness as we reap the rewards during Florida’s population boom. The migration has been sharp in the Sunbelt, with Jacksonville growing its population 8% and Miami 11.5% since the beginning of the decade. Beyond health, cleanliness appears to have a crucial economic impact. Economic factors go into a person’s choice to move but a great reputation for clean air, water and streets seems to play a big part as well.

“Air quality is a huge health factor for urban dwellers, so we made it a very big deal in our study. To determine the cleanest major cities in the U.S., we initially measured the rankings for air pollution and ozone levels among all 49 U.S. metro areas with populations exceeding 1 million, using data from the American Lung Association. After eliminating those areas that ranked poorest in air quality, we measured the remaining 29 cities on the additional but less weighted factors of water quality and per capita spending on Superfund site cleanup and solid waste management. From this list, we drew our top 10.”

Forbes.com Article

Want to live where the air is sweet, the water is pure and the streets are clean? Try Miami Beach FL real estate, the cleanest city in America. Feel free to comment on your thoughts related to this blog. Myself and the many readers would love to hear from you! I continually add to my blog, and once you visit, you can be notified by email or by RSS feed (upper right column) each time I post a new article.

Having to bribe building officials of Miami Beach… No way! It’s so easy to get permits and work completed in Miami (isn’t it?) Well if you’ve experienced the process you’ll know it’s a big problem with Miami Beach FL real estate. A recent story from the Miami Herald told of The Coral House owner bribing three building officials having paid over $110,000 to get his projects expedited. Over the last year, the Coral Rock House owner Michael Stern wore a wire to assist law officers in this public corruption case. The Coral Rock House owner had also paid bribes of a Rolex watch and a Ford Crown Victoria in exchange for advice on how to demolish the Miami Beach landmark at 900 Collins Avenue in Miami Beach. Authorities charged the three officials with bribery and racketeering while Stern was not charged having received immunity from prosecution for the great cooperation.

Stern declined to comment Wednesday. His attorney, Michael R. Band, said his client had paid the three men because “his dealings with inspectors were nightmarish. Basically, if you needed to get your site inspected, you had to pay them,” he said. –MiamiHerald.com

Last year Stern met with a building official to discuss ”the demolition of the Coral Rock House.” When Stern expressed concern about getting city approval, the official told him that ”everything is approvable” but urged Stern not to tell anyone that he was making suggestions on how to tear down the house. As of January Stern and co owner Ivor Rose agreed with preservationists to substantially preserve this historic 1915 house in Miami Beach.

Feel free to comment on your thoughts related to this Miami Beach real estate blog. Myself and the many readers would love to hear from you! I continually add to my blog, and, once you visit, you can be notified by email or by RSS feed (upper right column) each time I post a new article.

Miami has a New Vice of bottom fishing for Miami condo bargains. New condo buyers from the U.S. and abroad are descending on Florida to buy condos that have suffered from depreciation along with the excessive inventory, subprime mortgage crisis and credit crunch. Some are searching for investment properties, confident today’s prices will eventually rebound. Others are hunting for vacation or retirement homes along the Atlantic Ocean.

In heavy hit Miami Dade County (Downtown Miami), condos originally costing as much as $1.4 million at the peak of the market now sell in some cases for $840,000, a 40 percent drop while Oceanfront Condos have dropped approximately 25 percent since 2005. Such price drops have people like Bruce and Suzanne Bowen, of San Juan, Puerto Rico, and fishing for deals. The Bowens have visited Miami three times since November to scout for properties, and recently bought a two bedroom, 1,200 square foot unit on a high floor with Biscayne Bay views in Miami’s fashionable Brickell district. Mr. Bowen made his move after prices in the building fell to $290 a square foot from nearly $400 in September.

Now, the couple is looking for a second condo.“We’ve been coming here for 10 or 12 years, and I know how much cheaper it is today,” says Mr. Bowen, a 46 year old banker. “I may miss the bottom by 10 percent or so, but five years from now, that will be irrelevant. The underlying fundamentals are still very strong here.”

Florida is a reflection of what’s happening across the country. As the price of condos which tend to be popular among investors, retirees and second home owners took a dive in many once hot markets, buyers are emerging to grab Miami properties very cheap. They’re finding plenty to choose from and driving hard bargaining power. Because of Florida’s perennial popularity among real estate investors and vacation and retirement home buyers and as young families have migrated there from other states many areas were flooded with great new projects in recent years. Now, amid the downturn, Florida condo sales are sharply down, off an average of 27 percent in 2007 from the year before, says Sean Snaith, an economist at Orlando’s University of Central Florida.Perhaps nowhere is the carnage as well as the opportunities and risks of condo bottom fishing more evident than in Downtown Miami real estate (Dade County), where about 2,391 condos are currently for sale, according to Multiple Listing Service statistics. Cranes line Downtown Miami’s skyline, and though several projects have been cancelled, new condo towers in various stages of completion rise up everywhere. By most estimates, 2,000 to 5,000 more condo units will become available over the next 18 to 24 months. Given that about 400 condos are sold in a typical year in the area, the supply overhang means prices may fall further. The result is apparent on Biscayne Boulevard, where four towers sidle against each other. Though the views, location and materials are all similar, two buildings Marina Blue and Ten Museum Park began construction prior to the hurricanes, and units there are priced today at roughly $400 a square foot. The other two 900 Biscayne Bay and the Marquis began going up after the hurricanes and are priced in the $600 per square foot range.

Another potential hazard for buyers is foreclosures. In some buildings, foreclosures represent as much as half the units, according to Florida’s Office of the Condominium Ombudsman. A high foreclosure rate means special assessments will likely be imposed on unit owners of remaining condos at some point to help pay for common maintenance costs. This will unexpectedly raise your cost of ownership. Moreover, foreclosed properties in South Florida tend to be priced near the mortgage amount. Given the run up in prices before the shakeout, that means foreclosure buyers could pay inflated prices at the auction block. A better approach is to simply wait for banks to reclaim property that doesn’t sell at the auction. You’re more likely to be able to negotiate a better bargain then as it hits the market at great pricing.

One crucial note buyer’s should be aware of are the differences in Miami Downtown vs. the Miami Beaches. With limited space and inventory along the Atlantic Ocean, there are not as many foreclosures as found on the mainland of Miami. Buyers with cash might expect 75 to 80 cents on the dollar on oceanfront condos in Sunny Isles and Miami Beach FL real estate. True, the inventory and selection on the ocean is excellent and there are plenty of deals to be had on oceanfront real estate, yet there is no blood bath found along the Beaches as we see in Downtown Miami. MLS Statistics show 2008 properties selling on average at 90 cents on the dollar. Notice the Bank United’s Black List did not contain one oceanfront property! My perspective is another 18 months of great Miami Oceanfront Deals. Take advantage of today’s low interest rates if you must finance, buy and hold as to time this market perfectly is a roll of the dice. To buy at the bottom and sell at the top is everyone’s desire but also an easy target to miss.

This article originated from the Wall Street Journal and the original article was written by Jeff Opdyke Sunday March 2, 2008. Feel free to add your insights and thoughts to this blog posting and make it a great day.

I’m simply curious to see the differences in selling price per square foot in various locations along the Miami Dade Beaches. I’m including recent sales data and statistics in South Beach, Miami Beach, Bal Harbour and Sunny Isles. Strictly Oceanfront Condo Sales in Miami Dade County that occurred through the Southeast Florida MLS in the last 30 days.

South Beach real estate shows as having 6 closed sales at an average of 90% sale price to list price ratio. The average selling price per square foot (psf) is at $511. The highest closed sale was at the Bentley Hotel (510 Ocean Drive) selling at $979 psf.

Miami Beach oceanfront condos

Miami Beach FL real estate shows as having 11 closed sales at an average of 90% sale price to list price ratio. The average selling price per square foot (psf) is at $418. The highest closed sale was at the Green Diamond (4775 Collins Avenue) selling at $555 psf.

Miami Beach FL oceanfront condos that have sold…

Bal Harbour real estate shows as having 13 closed sales at an average of 89% sale price to list price ratio. The average selling price per square foot is at $642 (psf). The highest closed sale was at the Bellini Condo (10225 Collins Avenue) selling at $759 psf.

Bal Harbour oceanfront condos that have sold…

Sunny Isles real estate shows as having 16 closed sales at an average of 89% sale price to list price ratio. The average selling price per square foot is at $464 (psf). The highest closed sale was at the Acqualina (17875 Collins Avenue) selling at $638 psf.

Sunny Isles oceanfront condos that have sold…

Feel free to leave a reply or add any additions to this posting!

The Flamingo condo conversion developer is giving back deposits in the north tower of the Miami Beach FL real estate complex because the developer hasn’t been able to determine closing dates. The sales in the Flamingo north tower stalled at 200 with the market downturn of 2006.

“We don’t know when the building will be converted to condo,” Lerner said of the 614 unit north tower. “We have to hit a critical number before we start converting.” South Florida Business Journal

The north tower will continue as a rental building until the sales meet a threshold along with the center tower which is the newest and the Flamingo’s sought after crown jewel. The attention is now redirected on the south tower which has nearly sold out of the 562 units. If you’ve invested in the Flamingo Towers complex we’d love to hear your feedback. Feel free to comment on the Flamingo Tower conversion.

A new article has just been released by the South Florida Business Journal showing Bank United’s “Condo Blacklist.” These are the high risk condo properties that this bank will not be issuing loans to now and possible ever. Many of Miami Dade’s condo properties and homes witnessed a 25 percent increase in their overall value year over year from 2003 to 2005.  By 1Q 2006, things began to change and now a 25% to 40% depreciation has occurred.  And here we are now limping out of 2007 with the worst yet to come apparently in 2008 for the mainland of Miami Dade including Downtown Miami, Brickell condos and the Miami River. Property values continue to crash in these areas, foreclosures are at an all time high and now comes word that now over 100 condos in the Downtown Miami area are being blacklisted. Interested buyers looking for mortgages to buy units in Miami’s Opera Tower, Everglades on the Bay or Four Ambassadors shouldn’t bother approaching Bank United. The Miami based bank has included them on a list of 191 condo projects it will not be writing loans for.The Business Journal obtained a list of “non permissible” projects used internally at Bank United (BKUNA) and updated as of Jan. 14. Most of the forbidden properties were in Downtown Miami and were added at the last update. It wasn’t clear who at the bank wrote the list, but the author stated a reason for almost every project declared off limits.

Declining market value was the biggest culprit, followed by high investor concentration as much as 70 percent in some cases. Bank United’s decision is also based on numerous foreclosures, delinquent condo association dues and structural based litigation. Bank United spokeswoman Melissa Gracey said the list is based a similar guidelines used by Fannie Mae and Freddie Mac. The key point of this mess, not even mentioned in the article, is the domino effect. Anyone who purchased a unit and has closed on it is now trapped into what may occur. There is no one to sell to because no financing is available so speculators are left on the sidelines with heavy carrying costs. By publicly posting the exclusion list, other lenders are sure to follow suit. It will become difficult if not impossible to purchase a unit in any of those 119 projects. The implication is a substantial number of those projects will fail. Whatever banks financed those towers are going to end up owning them. Those who have a placed a down payment on a unit but have not yet closed may wish to seek legal advice to see if the shutdown of bank financing is somehow material to the purchase agreement. Some no doubt will simply decide to walk away regardless of the answer. Bank United just started a domino effect. The dominoes will keep falling until they reach the banks lending money to these projects. Undercapitalized banks funding these projects may likely fail.

Bank United’s Non Permissible Condo List (Miami’s condo heavy hitters in alphabetical order) 50 Biscayne in Miami, 600 Biscayne, 1650 Biscayne, 900 Biscayne Bay, 500 Brickell, 1390 Brickell Key, 1600 Club, Asia, Atlantis Condo, Axis on Brickell, Bay Lofts, Biscayne Tower, Blue, Brickell Bay Club, Brickell Bay Tower, Brickell on the River, Brickell Place, Brickell Station, Bristol Tower, Capital at Brickell, Carbonell, Cima Condo, Cite, City 24, Club at Brickell, Commodore Bay, Costa Bella, Courts Brickell Key, Courvoisier Courts, Cynergi, Downtown Lofts, Emerald at Brickell, Epic Dupont, Espirito Santo Plaza, Everglades on the Bay, Filling Station Lofts, Fortune House, Four Ambassadors, Four Seasons Hotel & Tower, Golden Bay Club, Icon on Brickell, Infinity at Brickell, IOS on the Bay, Ivy, Jade Residences at Brickell, Latitude on the River, Marina Blue, Marquis Miami, Mary Brickell Village, Met 1, Metropolitan, Midtown Miami, Mint at Riverfront, Neo River Lofts, Neo Vertica, Oasis on the Bay, One Miami, One Tequesta Point, Opera Tower, Paramount on the Bay, Paramount Park, Parc Lofts, Park Place, Platinum, Plaza on Brickell, Point at Brickell, Quantum on the Bay, River Oaks, Sail Boat Cay, Seacoast Towers, Skyline Mary Brickell Village, Skyline on Brickell, Soleil Miami, Solaris Brickell Bay, Summit Brickell, Star Lofts, Sunset Harbour, Ten Museum Park, The Carriage House, The Jade Condominium, The Mark on Brickell Bay, Three Tequesta Point, Two Tequesta Point, Uptown Lofts, Villa Brickell, Villa Magna, Villa Regina, Vue at Brickell, Wind by Neo, Yorker. Brought to you by the South Florida Business Journal

Whew, what a list! Many on the list were outside of Miami Dade (included Las Vegas) and we find the majority blacklisted are located in Downtown Miami including Brickell and the Miami River. Notice something crucial from above…Banks have faith in Oceanfront Condos of Miami Dade including Sunny Isles real estate, Bal Harbour real estate, Miami Beach FL real estate and South Beach FL real estate! I’m reaffirmed that the demand is and always will be based on location, location, location. ie) Oceanfront Luxury Condos where there is limited space to build and continued demand. Through increased tourism (currently the Miami Boat Show), National and International buyer’s seeking the Miami oceanfront Deals and Low interest rates and even in this great Buyers market. You’re invited to leave any thoughts, opinions and comment below.

Voters have said yes on Amendment 1. Realtors around the state expect buyers and sellers’ pent up housing demand to generate an immediate increase in home sales following passage yesterday of Amendment 1, which allows buyers to now take their Save Our Homes tax savings with them when they move.

“People who buy now are getting a great deal because home prices have fallen,” says 2007 FAR President and St. Petersburg Realtor Nancy Riley, who led the charge last year in support of Amendment 1. “These price reductions, combined with portability, will mean a great deal on the taxes owed on their new home.” Some Realtors expect to see sales activity from first time buyers thanks to a slight increase in the homestead exemption provided by Amendment 1, then record low mortgage rates, pent up demand as the market is closely watched and a large selection of properties for a great selection of Miami Beach FL real estate.

“Again, given the lower cost of housing and the increased homestead exemption, those who have been dreaming of buying their first home will find this the best market in many years,” Riley adds. The portability provision of Amendment 1 is retroactive only to January 1st, 2007. Sellers may transfer their Save Our Homes credit (the difference between the assessed value of a homestead and the market or “just” value) provided these terms

1. The residence sold last year was homesteaded
2. The new residence qualified for the homestead exemption as of Jan. 1, 2008
3. The owner applies for the exemption and transfer with the county property appraiser by March 1, 2008. For specific questions about property tax reform, you may contact their local property appraiser at MiamiDade.gov. You’re invited to leave any thoughts, ideas and opinions by commenting below.

So what is selling these days in Miami Dade County? Everyone is asking… We will review the sales of Sunny Isles real estate along with Miami Beach FL real estate to see what buyer’s are finding as HOT buys along the ocean..

Sunny Isles oceanfront condos have 6 closed this month worth reviewing. Acqualina, Ocean One, Oceania I, Trump Palace and Turnberry Ocean Colony (2). These selling prices range from $500k (Oceania I) to $2.595M (Turnberry Ocean Colony) and what we see is the sale price to list price ratio ranges from 94% to 81% (both at Turnberry Ocean Colony). The best price per square foot was only $397.26 psf at Oceania I while the highest was $796.51psf at Turnberry Ocean Colony. Much has to do with building age and amenities as Oceania I is from 1990 while Turnberry Ocean Colony is the premier 2008 South Tower. Both Acqualina and Trump Palace sold at $663.39 and 576.37 psf. respectively. What is worth mentioning is the Pending Sales of 2008 are already at 11 which proves a slower holiday season as people travel and families join together. This month each of the above buildings have additional accepted offers but also luxury oceanfront condos including Ocean Two, Ocean Four, Trump Grande, Pinnacle and La Perla. Asking prices ranged from $2.499M to $549k and we will soon see what they’ve sold for. On average, sale price to list price ratios are at 88% for a great 12% off reduced asking prices starting off 2008 right for buyers. Each real estate transaction is different so it’s important to analyze each condo on an independent basis. This real estate blog is only to get an idea of what’s happening in Sunny Isles real estate.

Miami Beach FL oceanfront condos (including South Beach FL real estate) have 9 closed this month worth reviewing. Continuum, Setai (2), Decoplage (2), Roney Palace, The Collins and Fountainebleau II. These selling prices range from $417k (Decoplage) to $2.5M (Continuum) and what we see is sale price to list price ratios ranging from a low 69% (Decoplage) to a high of 101% (Setai Resort). The best price per square foot was only $426.92 psf at The Collins while the highest was $1,500 psf at The Setai Resort. Much has to do with location and building demand & amenities. The Collins is an excellent oceanfront condo conversion in mid beach while the Setai is the sought after and highly desired South Beach Resort. Akoya and Continuum each sold at $581 psf and $1220 psf respectively. The infamous Kevin Tomlinson of EWM sold The Continuum unit after 280 days on the market and saving his customer 16% off the asking price! I’m always inspired by the SoBe Realtor elite and learn a lot when reviewing their sales figures. On average, sale price to list price ratios are at 89% saving today’s buyers 11% off the already greatly reduced asking prices. This month pending sales for Miami Beach FL real estate are very low at only 3 currently under contract (2 at Blue Diamond)! Why is this? My opinion is location vs. selling price per square foot. South Beach is and will always be HOT real estate and in demand. The difference is Sunny Isles real estate sells for a much better price per square foot ($824psf SoBe vs. $569psf SIB) and has a lot to offer new residents with it’s convenience to Aventura, Bal Harbour real estate and both Ft. Lauderdale and Miami International Airports! If it’s the action you desire, I strongly recommend Miami Beach FL real estate yet Sunny Isles real estate is only 20 minutes to all the SoBe excitement. Today’s end users and even investors are penny wise to make smart investment decisions on South East Florida real estate. International Buyer’s are taking advantage of a soft real estate market and the weak dollar offering VERY aggressive prices today on Sunny Isles luxury condos. The new Sunny Isles Millionaires Row is just tremendous with Trump going all out like he did in NYC when the values were down. Trump now has 4 new signature towers finishing this year on into 4Q 2009 along with both Jade Ocean and Jade Beach which I’m super excited about. The selection today for buyers is great but at times may be confusing. The help of a Realtor assisted sale makes the work, time and stress so much less for today’s Southeast Florida Buyers. Contact me to discuss this blog by commenting below or call anytime to talk Miami Beach FL real estate sales.

Three sections of our City are well underway with Capital improvements. North Beach and South Beach have various stages of construction and there’s more on the way. Eighty percent of Miami Beach FL real estate improvement projects are ahead of schedule, so it won’t be long before you can enjoy new and improved streets, drainage, lighting and landscaping, as well as other improved infrastructure.

South Pointe Park is to be completed early 2009 as dunes are being created, a serpentine walkway that traverses a rising berm, open palm lawns, a new park pavilion with a unique rooftop event area and the foundation has been poured on one of the most exciting elements in the park… the “cut walk”. A 20 foot wide elevated promenade providing breathtaking views of Government Cut. Final touches to South Pointe Park include pedestrian friendly yet turtle safe lighting along the cut walk, a new destination entrance at Washington Avenue, distinctive and interactive water features and more. The jewel in its crown will be the Art in Public Places installation of “Drift,” in it’s exact scale model of an iceberg created by world class artist Inigo Ovalle. Also the streets between Collins and Ocean Drive from 6th Street to 14th Street are being updated with new sidewalks, striped pavement, lighting and landscaping with noticeable improvements to the pedestrian experience.

Belle Isle Park & Street Improvements are also close to completion. This 3.3 Acre green space is nestled between the Venetian Causeway and Island Drive South and improvements include enhanced landscaping, new pedestrian walkways, a playground with furnishings such as benches and trash receptacles. Plans are also in the works for a bark park for canine residents’ enjoyment…Arff!

The new Normandy Shores Golf Course and Clubhouse is on track for completion this year with the same course challenge and configuration as before yet with greener environmentally friendly grass and the nines reversed. Same as the Miami Beach Golf Course in the Bayshore neighborhood, the course will be bright green with eleven beautiful water features. The City of Miami Beach decided to honor the history by renovating the clubhouse to reflect it’s original design. A kitchen, 80 cart capacity barn with additional locker rooms for men & women and new restrooms.

Feel free to leave comments to let me know what you think, other topics you’d be interested in seeing and remember to make it a great day!

Want to have a positive cash flow with the minimum 20% down? Today’s $1M investment (3BR at 2400 Sq Ft) will return around $6,000 in monthly rental income. When you take into account Taxes $1,500 and a Maintenance fee (Ave.) $1,200 with today’s interest rate at 5.75% (Principal & Interest) at $4,700 totals $7,500! The Miami Beach investor is putting down 40 to 50% to have a break even or goes negative if choosing to leverage money as the gamble on appreciation at a 3+ year hold is likely. Other points of interest are the bottom of this Miami real estate bubble on oceanfront condos which may likely have already occurred. Across the board on oceanfront condos in the Sunny Isles area and Miami Beach FL real estate, we’ve seen average 25% depreciation in the last 24 months. In the last 90 days there have been 71 closed sales in Sunny Isles and 70 in Miami Beach. The aggressively priced condos are selling well at an average of 95% of the asking price.+A recent article on Cory Fritzlers investment portfolio shows he is concentrating now on Dallas and Miami Beach FL real estate. “Despite record foreclosure rates and declining property values in 2007, there is evidence suggesting the worst may be over, providing significant opportunities for investors and home buyers in 2008 and 2009. As a result, Cory Fritzler, real estate investor and entrepreneur, has increased his portfolio in the South Florida market and continues to hold and manage over 40 rental properties in the Dallas Fort Worth area. In addition to the Dallas market, Cory Fritzler has strengthened his company’s position in the Miami Beach area. As the recipient of multiple awards for his work in real estate, Cory Fritzler is known for his innovative real estate investing, unique financing programs, charitable work and benevolence. Moving into 2008, Fritzler anticipates more investment opportunities, with a focus solely on the Dallas and South Florida markets.” WebWire Jan 17th 2008

More positive news coming as this year shows a new outlook on Miami Beach FL Real Estate. What do residents, tourists and International buyers really want? Oceanfront living, a great climate and an active lifestyle are the major attractions for year to come. Let me know what you think by leaving your thoughts and suggestions below…

Where is the bloodbath in Miami Beach FL and Sunny Isles buyers want to know!? Today’s buyers are now placing frequent offers and soon find that seller’s are only accepting 5 to 10% off the asking prices. What about 30 to 40 cents on the dollar? Where are the foreclosures, bank owned and desperate seller’s the media is portraying along our South East Florida Coast. Well I’m here to tell you that the blood bath has already occurred along the Atlantic, there are properties going under contract and demand is on the rise again. A lot has to do with the winter season, weak dollar, and end users wanting a piece of oceanfront and willing to pay market value. I expect a rebound on Oceanfront by 4th quarter yet a continued lag with new inventory like the new Trump Tower I, II & III and Jade Beach & Jade Ocean. Look for great deals coming up!

In the past 2.5 years property inventory went sky high as speculators took a big step back and the media beat up on S.E. Florida real estate. The mortgage market went south with the subprime crisis as seller’s soon noted the smoke & mirrors that they succumbed to… Prices on average dropped 25% since 4th Q 2005 after a strong 2 years at 29% appreciation. The most recent stats show sale price to list price ratio at 95%! The seller’s (the 1% ile) who are aggressively priced to the market are in fact getting offers with Pending sales on the rise in 2008. Trump Palace 4806 is getting an offer each week. Well it’s a steal at $1.199 with new marble floors going in and now we see the serious offers rising from 29% to now 13% requested off the asking…(it’s in line to sell 1Q at full price)! My forecast is a clear separation between the mainland and the oceanfront as Downtown Miami takes a continued tumble. International buyer’s are taking advantage of oceanfront real estate that softened, the weak dollar and tend to move fast with cash offers. We welcome the loving Canadians and Europeans who look for Florida sunshine and the strengthening Loonie and Euro (now 33% off USD). It’s a strong Buyer’s market in Miami Beach FL real estate and Sunny Isles real estate and those that gamble on the market pay today’s market prices and are in it with a positive 3 year + outlook. Let me know what you think and I appreciate your responses and personal opinions.