Murano Grande South Beach

LIST PRICE: $695,000 CLOSED SALE $640,000

Description | This large two bedroom two bathroom unit in the Murano Grande at Portofino in South Beach offers incredible views of the bay and downtown. This spacious model features a large open gourmet kitchen, split floor plan, with multiple walk-in closets for each bedroom. Situated within a few minutes walking distance from South Pointe Park, beach, Miami Beach Marina and several restaurants, the Murano Grande is also a quick drive to the downtown Miami financial district or Miami International Airport. For additional information on this condo in the South of Fifth neighborhood, call 305-673-5300 or email us info@miamiangelproperties.com.

Address | 400 Alton Rd, Unit 1407, Miami Beach - map it

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January 25, 2010 by Ross · Leave a Comment

The Bentley Bay Miami Beach

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

LIST PRICE: $675,000

Description | The Bentley Bay is a luxury South Beach condominium residence that features some of the best views of Biscayne Bay, downtown Miami and incredible Florida sunsets. This three bedroom residence offers floor to ceiling windows, an enormous balcony, marble floors, and gourmet kitchen. The best part is that qualified buyers have the option to assume the existing mortgage at a fixed interest rate of 4 percent. For additional information on this amazing Bentley Bay unit call 305-673-5300 or email us info@miamiangelproperties.com.

Address | 520 West Ave, Unit 1402, Miami Beach - map it

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January 25, 2010 by Ross · Leave a Comment

Jefferson Place Foreclosure

Filed Under Condos, Listings ·

PRICE : $174,000 CLOSED SALE $190,000

Description | This boutique building was designed by South Beach architect Les Beilinson and fully renovated and converted in 2006. Each unit features European cabinets, granite countertops, wood floors, stainless steel appliances, washer and dryer, BBQ and picnic area, and a private “pied-a-terre” entrance.

This unit is perfect for a first time home buyer or investor looking for that fantastic South Beach location at an affordable price – Call or email us today to view this property -305.673.5300 or info@miamiangelproperties.com.

Address | 826 7th St. #6, Miami Beach - map it

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January 18, 2010 by Ross · Leave a Comment

West Bay Condo South Beach

Filed Under Condos, Listings ·

PRICE: $269,000 CLOSED SALE $235,000

Description | This two bedroom, split floor plan condo with two full bathrooms, is perfectly located in South Beach. Walk out your door to several shops, markets, restaurants, movie theaters, or the Lincoln Road Mall. Best of all, it is a corner unit with a balcony, assigned parking, and plenty of natural light. The maintenance fees in this full service building are very affordable as is the asking price. To view this fantastic opportunity to live on West Avenue, call or email us today - 305.673.5300 or info@miamiangelproperties.com.

Address| 1688 West Ave, Unit 509, Miami Beach - map it

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January 14, 2010 by Ross · Leave a Comment

Miami Year in Review 2009

Filed Under Blog ·

Home Flippers Return

This year marked the return of property investors flipping foreclosures in anticipation of quick profits. Due to the volume of foreclosure cases making their way through the courts and banks, it was an opportune time to take advantage of the disorganized lending institutions and court system.

The year started out with the presence of a few established investment groups, which grew exponentially as investors on the fence jumped in. Although the banks set unrealistic reserve prices and few properties traded at the Miami Dade public auctions, there were many successful short-term trades executed with returns of 30 to 40 percent.

One particular sale at the Miami Dade public auction epitomized this chaotic market. A large estate in Coral Gables with an estimated market value of $4.0 million was being auctioned off by the Clerk of the Court. The summary judgment against the owner was over $5.0 million, while the lender’s representative at the auction set the reserve at $2.3 million. Two individuals stepped up and registered to bid. The first offered $90,000 and the lender’s representative countered at $100,000. Then, the second investor raised the bid to $110,000, and the lender’s representative stopped bidding. The Clerk confirmed the bid three times and subsequently closed the sale at a price of $110,000.

Lenders Sell Discounted Notes – Developers Seek Bankruptcy

This was the year that local, national and international lenders unloaded multiple distressed notes and condo projects to investors. According to the Condo Vultures Bulk Deals Database, during the past 18 months bulk buyers acquired more than 2,200 new or renovated units consisting of approximately 2.7 million square feet.

There were several high profile condo projects that traded hands during the year, which included the sale of the Caribbean Miami Beach to New York based Melohn Properties, and the purchase of a $261 million note for 244 units in the luxury 900 Biscayne Bay by a Cayman Island entity. In October 2009, Starwood Capital Group also became a major player in the South Florida condo market with their purchase of Corus Bank.

Corus’s portfolio included about $1.0 billion in loans secured by condominium projects in South Florida. What is evident is that investors are confident enough that if we are not already at bottom in the condo market, that we are close enough to find it attractive to purchase these assets at 30 to 50 percent less than replacement cost.

During the year several lenders allowed developers to sell condos at prices for less than what is owed on the construction loan. However, in August, Cabi Downtown Developers, the builders of the 849-unit Everglades on the Bay in Downtown Miami, filed for Chapter 11 Bankruptcy protection. Although certain lenders may decrease the debt owned by allowing the sale of individual units to take place, it does nothing to significantly reduce their exposure in a deteriorating condo market, which is most like the case with Everglades on the Bay.

Looming Shadow Inventory Grows

According to data released by First American CoreLogic, there were 1.7 million bank REOs and homes facing imminent foreclosure that had not yet hit the market at the end of the 3^rd quarter 2009. This is consistent with the Miami market where we experienced an approximate 10 percent increase in the number of mortgage foreclosures over the 56,656 foreclosures that were filed in 2008.

If you consider the sales of distressed properties in Miami last year alone, you will note that our shadow inventory is massive as tens of thousands of distressed properties need to be released on the market.

Unfortunately, at the current sales pace in Miami, it could take up to three years to work through of this looming shadow inventory of distressed properties. If you combine this with the 24,500 existing residential properties plus an estimated 10,000 new condos visibly on the market, it represents a backlog of more than five years.

Enthusiastic Investors Return

This year we experienced a surge in second home and investment property buyers of Miami real estate. In part because of a weak U.S. Dollar, which is 20 percent lower against the Euro since March 2009 alone, in part because of low interest rates, in part because prices have collapsed, and in part due to large investors scraping up bulk condominium deals in fractured condo projects.

With prices of Downtown Miami condos dropping to the $200 to $250 per square foot range, international investors leaped back in the market as all cash buyers. Due to a lack of financing available in the majority of condo projects, buyers that required financing were practically shut out of the market.

Another factor that propelled the market was the investor appetite for bank owned properties, which created an unprecedented level of competition. At the beginning of the year, Fannie Mae could barely give away the property. Then by mid-year, you had to be prepared enter the ultimate fighter foreclosure ring with fifty competitors.

Jingle Mail – Strategic Defaults Increase

According to several recent studies and data published by the Mortgage Bankers Association, the percentage of home owners that are strategically defaulting on their mortgages is rapidly increasing. Although I do not possess any factual data collected on strategic defaults of home owners in South Florida, I can speak from my experience on the street.

What we consistently hear from people is that due to their (i) under-employment, unemployment and/or declining income situation, (ii) underwater properties, and (iii) “everyone” is doing it attitude, that the percentage of home owners that are choosing not to pay their monthly mortgage is much higher than reported in these studies.

Unlike some states where the lender has recourse to a borrower’s non-related mortgaged assets, in the state of Florida, a mortgage is secured only by the property. If one chooses to default, you only have to surrender the property.

Has Miami Hit Bottom?

Although median sales prices continued to erode throughout 2009, the sales of existing homes and condos significantly increased by 50 percent over the previous year. While we appear to have hit a plateau with the median sale price of bank REO properties in the past few months, the median sale price of short sale properties continues to decrease [see chart below].

With such a low median sales price of bank owned properties, it is clear that the majority of the bank REO sales this past year have been in the affordable lower priced segment. As such, the next shoe to drop will most likely be within the luxury market segment. This is further supported by the fact that the luxury segment has also received minimal government intervention.

The Gravy Train – Government Subsidization

The U.S. Government threw the housing market, homeowners and the financial industry, several life lines throughout the year. Direct efforts to prop up the ailing housing market included the First Time Homebuyer Tax Credit and Home Affordable Modification Program. Additional efforts included historical low interest rates, unlimited capital support for Fannie Mae and Freddie Mac, and the Federal Reserve’s purchase of nearly $1.5 trillion of mortgage-related assets.

It has become clear that the U.S. Government policy of direct intervention in the housing market is the main factor that influences the current and future direction of the real estate market. Therefore, as long as this market remains on taxpayer and Government life support, real market forces like foreclosures will play only a secondary role. Additionally, due to the upcoming November elections this year, the involvement of the government in the real estate market is likely to continue.

Are you looking for a Miami or Miami Beach investment property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

* The data used to generate this chart/data is gathered from the Multiple Listing Service (“MLS”) and the Miami Dade Clerk of the Courts. The data in the MLS is deemed reliable but not guaranteed. The sales prices are the actual median sales prices of all single family, condos or townhomes that closed during 2009 and are published in the MLS as of the date of this post.

January 11, 2010 by Ross · Leave a Comment

Central South Beach on Drexel

Filed Under Condos, Listings ·

PRICE : $299,000

Description | This 2 bedroom condo is centrally located in South Beach in a boutique building that consists of only four units. The beautiful beach, Flamingo Park and Lincoln Road are literally a five minute walk. A few of the features of this unit include wood floors, plenty of natural light, washer and dryer, as well as very affordable monthly maintenance fees. Call or email us today to view this fantastic condo -305.673.5300 or info@miamiangelproperties.com.

Address | 1236 Drexel Ave, Unit 4, Miami Beach - map it

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January 8, 2010 by Ross · Leave a Comment

South of Fifth Art Deco Condo

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE: $379,000

Description | This large two bedroom, two bathroom unit features a renovated kitchen with stainless steel appliances and granite counter tops, designer bathroom fixtures, hard wood floors, plus a washer and dryer. Located just minutes from the beach in the South of Fifth neighborhood of Miami Beach, this property is perfect for the beach lover. To view this stunning art deco property, call or email us today - 305.673.5300 or info@miamiangelproperties.com.

Address| 901 3rd St, Unit 3, Miami Beach - map it

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January 8, 2010 by Ross · Leave a Comment

Miami Real Estate – November 2009

Filed Under Blog ·

Summary – November 2009

For the month of October 2009 versus October 2008, the total number of closed sales increased over 100 percent, which is consistent with the upward trend in sales volume this year. However, the number of closed sales for November 2009 versus October 2009 remained flat. Another noticeable trend is that demand has remained somewhat constant these past few months, while at the same time, the inventory of properties for sale continues to shrink. If this trend continues it may result in less downward pressure on home prices, which would allow for the market to stabilize in the coming months.

In the city of Miami Beach there are significant sales price differences depending on location. With several sales in the $50 to $60 per square foot ["PSF"] range, the prices of condominiums in the north Miami Beach area [71 Street north to 84th Street] remain severely depressed. Whereas, the sale price of condos in good locations within the South Beach market, indicate a floor on pricing in the range of $250 to $350 PSF. This month, the Floridian condominium project located at 650 West Avenue in Miami Beach, had a record number of five distressed closed sales. Closed sale prices ranged from a low of $214 PSF [unit 1806] to a high of $407 PSF [unit 2603].

In downtown Miami, or Brickell District, the average asking and closed sale price was significantly higher than the prior month. This was partially due to the sale of several luxury condominiums in the Jade on Brickell, Epic and Santa Maria, in addition to, a pent-up demand for affordable condos. The demand for condos in the downtown Miami area remains very high, which is supported by the fact that the average days on the market for the closed sales this month was only 61 days, a very healthy number.

There were also a few condo projects where the majority of the sales where located, including The Madison Downtown, Quantum on the Bay, One Miami, and the Club at Brickell Bay. While the sale of foreclosure units in The Madison have been hovering at a closed sale price of $100 PSF, there were also several sales with financing in the range of $160 to $170 PSF, which represents a significant premium for financing.

The majority of the transactions within the condo segment continues to be mostly to all cash buyers, with only select purchasers obtaining conventional, foreign national or FHA financing. However, in the single family home segment, the vast majority of transactions are to primary residence purchasers that are successfully obtaining financing at very attractive rates. As existing home owners are adjusting to market prices, there were few distressed sales of single family homes in the areas of Miami Beach, Coconut Grove and Coral Gables.

November’s Featured Sales:

450 Alton Rd, Unit 1806, Miami Beach

The sale of this 1,452 square foot, two bedroom, two bathroom, luxury condo in the Icon South Beach at price of $500,000, or $344 PSF, represents a significant price decrease in this “iconic” building. The former owner paid a price of $1.3 million for this property back in 2006. At that time, the buyer obtained 100% financing from American Brokers Conduit in the form of a $1.0 million first and $300,000 second mortgage. This was a short sale and the lender took a significant loss to approve the sale.

4949 Pine Tree Drive, Miami Beach

This magnificent estate was the former home of S.S. Kresge, the original founder of K-Mart. This 11,638 square foot home sits on a huge 2 acres corner lot in a prime Miami Beach location and features over 670 square of water frontage. The estate also features a clay tennis court, Venetian swimming pool, four car garage and guest house. According to public records, the home was sold to William H Dean, the current CEO of M.C. Dean Inc., for an all cash price of $8.0 million, or $687 PSF.

Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

* The data used to generate this chart/data is gathered from the Multiple Listing Service (“MLS”) and the Miami Dade Clerk of the Courts. The data in the MLS is deemed reliable but not guaranteed. This data is for November 2009 for single family homes, unless otherwise indicated as condominiums/town homes. The prices are the actual sales prices of all single family or condos/town homes that closed during the month of November 2009 and are published in the MLS as of the date of this post.

January 7, 2010 by Ross · Leave a Comment

DESIGN BY dotp

Murano Grande South Beach

LIST PRICE: $695,000 CLOSED SALE $640,000