Luxury Aqua Miami Beach Condo

PRICE : $519,900  **CLOSED SALE $519,000**

Description | Aqua, a private residential island on the intracoastal waterway of Miami Beach, was created by Miami Beach pioneer developer Craig Robbins. A secure and private island retreat just minutes from the golf course, ocean or South Beach, this development offers oustanding amenities and a quality product. This unit is a large 2 bedroom 2 1/2 bathroom with a gourmet kitchen, high ceilings and a huge 1,356 square foot outdoor patio. Call or email us today to view this stunning unit -305.673.5300 or info@miamiangelproperties.com.

Address | 201 Aqua Ave, Unit 804, Miami Beach  -   map it

Property Type | Condominium
Year Built | 2004
Living Area | 1,957 SF or 182 m2
Bedrooms | 2
Bathrooms | 2.5
Waterfront | Y

Download a full description (PDF):

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Highest and Best Scenarios

The Village at Sailboat Bend

September 21, 2009 – A few months ago having to explain a highest and best request form to your client was unheard of. In today’s “affordable” price range under $200,000, it is almost always a requirement and many asset managers even add it to their preliminary document package when submitting the initial offer.

First, let’s talk about asking prices of bank owned properties. In South Florida, many asset managers and listing agents are purposefully pricing their new product at very attractive prices. There may have been one or two recent comparable sales higher than the asking price. However, in order to attract attention and competitive bids from the pool of cash buyers in the market, they release the property at an attractive or below market price. 

A few good examples of this intense bidding and highest and best situations are in the condo projects of the Grandview Palace in North Bay Village and The Collins in Miami Beach, as well as in the Village at Sailboat Bend in Fort Lauderdale. For several months there were a dozen or more distressed units on the market, and then one or two units finally closed at a very attractive price per square foot, and everyone jumps on this price over-correction in the condo project.

In the Grandview Palace this was the bank owned unit # 1517 that closed at a price of $100,000, or $97 per square foot, to a cash buyer in April 2009. A large two bedroom unit,  featuring a split floor plan, good location just minutes from Miami Beach, and fantastic open views of the bay. Since,  there have been another dozen or so distressed sales at prices up to $165,000 for an identical sized unit with a similar view.

In the Village at Sailboat Bend we experienced a very similar scenario. Following the sale of 411 SW 13th Terrace at price of $130,000 in May 2009, which was $1,000 below asking price, compare it to the recent sale of 418 SW 13th Terrace. This was an identical unit, and also a bank owned property, and it sold at a price of $160,100, which was practically $23,200 over the asking price!

If you are in a “highest and best” situation and are unsure of how to proceed, the latest from Fannie Mae, Freddie Mac and other major sellers of REO properties, is that they want CASH with at least a 10 percent initial deposit and preferably a second deposit of 10 percent. Remember that if you feel confident that at the asking price the property is a bargain, so too are other cash buyers. So don’t be hesitant to bid up over asking price if it works for you.

So what if you are offering a deal subject to conventional or FHA financing?  Well, be prepared to be even more aggressive to entice the lender, including providing a copy of your credit scores, a recent mortgage pre-approval, and even a bank statement to show proof of funds for the deposit[s], reserves and estimated balance due at closing.

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.

Copyright © Miami Angel Properties, LLC

Miami Real Estate – August 2009

Summary - August 2009

For the month of August 2009, the Miami real estate market experienced a slight drop of 13 percent in overall closed sales. While the median price for single family homes remained constant at $173,000, condominiums and townhomes actually realized an increase in the median price from $126,670 in July 2009 to $135,000 in August 2009.

We think that this slight increase in the median price of condominiums is primarly due to the pent up demand for second homes and investment properties in Miami. In today’s market, it is not uncommon to find multiple cash offers on condominums in desirable locations and somewhat “stable” condo projects.  Additionally, according to the MLS data on the sale of bank owned condos in the Miami Beach area priced at under $500,000, more than 80 percent of all closed sales were all cash transactions. Additionally, there were several examples where the purchaser closed at a price up to 25 percent over the asking price.

The majority of properties trading in the lower price ranges continues to be dominated by distressed properties.  While buyers appear to be having more success closing on short sale deals with financing, if you are looking to be competitive and negotiate terms, be prepared to come with an all cash offer.

Featured Sales - 

800 S Pointe Dr #1203, Miami Beach “The Apogee”

Balconies in the Apogee feature complete outdoor kitchens

According to Miami Dade Public Records, attorney Jan Carson Cheezem of Cohen Fox P.A. in Miami, purchased this 3 bedroom 3.5 bathroom luxury condo in The Apogee on South Beach for $3.8 million or $1,378 per square foot. This unit on the 12th floor, which overlooks Miami Beach to the north, downtown Miami to the west and the oceanbeach to the east, was on the market for 248 days with an asking price of $4.1 million.

1200 West Ave #807, Miami Beach “The Mirador”

The Mirador apartment buildings located on West Avenue in South Beach, were built in the 1960’s and then converted to condominiums by the developer and condo converter Crescent Heights in 2005. With lines of prospective buyers camping out on West Avenue the entire week before the developer opened sales to the public, this condo project was the epitomy of condo conversion frenzy during the Miami real estate rush. This 1 bedroom 1.5 bathroom corner unit with 1,019 square feet of living area, was originally sold by the developer in 2005 for $265,900, then flipped four months later for $383,000, and again six months later in May 2006 for $515,000, only to be taken back by the subprime lender, New Century Mortgage, in December 2008. In this most recent sale last month, the purchaser paid $147,000 or $144 per square foot.

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 August 2009 for single family homes, unless otherwise indicated as condominiums/townhomes. The prices are the actual sales prices of all single family or condos/townhomes that closed during the month of August 2009 and are published in the MLS as of the date of this post.

Miami Foreclosures: The Facts

There has been much talk in the press lately of a rebound in the housing market. According to the most recent RealtyTrac report, while several states indicated a remarkable improvement for the first six months of 2009 over that of 2008, Florida is up a whopping 42 percent in the number of foreclosure filings in 2009 over 2008.

So what is the story in Miami? Although we have seen a decrease in monthly foreclosure filings since peaking at 7,103 in March 2009, we are up a significant 38 percent, at 34,679 foreclosure filings for the period of January through June 2009, versus 25,117 foreclosure filings for the same period in 2008. The good news is that our local real estate market has definitely improved and that pending sales continue to increase month after month.

Basically, we are in a two-tiered market -

1st Tier -  A horde of cash buyers and investors aggressively chasing distressed properties priced at under $150,000. Properties are being slowly released by lenders to the open market. Often the original asking price is purposefully priced low to generate lots of attention and multiple offers. The pipeline is full as tens of thousands of bad assets need to be foreclosed on and moved off bank’s balance sheets.

2nd Tier – A narrow field of interested parties kicking the tires and looking for a substantial discount off asking price, and the higher the asking price, the more pressure to discount. A number of these cautiously “optimistic” buyers are paying in cash, but many are also looking to leverage and take advantage of historically low mortgage rates. We are seeing more high-end deals closing, which is encouraging. However, there remains this “mystery” of the luxury condo shadow inventory of bank owned properties. It’s out there and perhaps more pervasive than what most recognize.

So the big question is – where are we headed in Miami?

Until these foreclosures are turned over and mortgages become more readiliy available, I think that we will remain in a two tier market for foreseeable future. There will be continued competition in the lower tier, while the upper tier is going to have to discount considerably to attract a ready, willing and able buyer.

If you would like any additional information on distressed real estate opportunties in Miami, please send us an email at info@miamiangelproperties.com.

Disclaimer: The above mentioned foreclosure statistics for Miami are supplied by the Clerk of the Courts, Miami Dade County, Mortgage Foreclosure Statistics.

Miami’s Shadow Inventory

Today’s headline in the local Miami business journal read “Judge grapples with her discovery of 15,000 unserved foreclosure cases.” I also read an article on CNBC.com titled “Rebound In Housing Hampered By Slowdown in Short Sales.” So what is the story here?

According to public records, in Miami-Dade County there were 26,731 foreclosures filed in 2007, another 56,656 foreclosures were filed in 2008, and an additional 29,833 foreclosures have been filed through May 2009. That’s over 110,000 foreclosures filed within the past two-and-a-half years! We have a HUGE shadow inventory of foreclosed properties out there that very few people in the real estate business want to acknowledge, let alone share with the general public.

I keep wondering where are all these bank owned properties? I think there is only one explanation. These thousands upon thousands of distressed properties are being held on the banks balance sheets. TALF, TARP, stimulus, mark-to-market, call it whatever you wish, but the banks are playing a simple game with the market, and apparently, the FDIC, Federal Reserve, OTS or Comptroller, have nothing to say about it.

So let’s consider some additional facts. According to the Southeast Florida Multiple Listing Service, since January 2008 there have been a total of 22,583 properties sold in Miami. Out of this number, there were only 6,624 bank owned or REO properties sold, a mere 28% of total sales.

Now in all fairness not all foreclosure filings ever end up in a foreclosure sale. There are many that are modified, some are sold in pre-foreclosure, many are caught up in legal snafu’s, a few are dismissed, many have not been served or processed, but c’mon, where are the other potential 50,000 plus bank owned properties that should be on the market?

Yes, I am in the business of selling real estate, but I also like to work and make decisions based on facts and reality. Do you know how many times I have heard the same story lately, “we have multiple offers, send us your highest and best offer?”

The banks are playing the real estate market, and so far they have clearly earned the gold medal.

Miami Real Estate – March 2009

Summary - March 2009

For the month of March 2009 vs. February 2009, we experienced an 14% increase in the number of closed sales from a total of 206 to 235 closed sales. The inventory of properties for sale increased marginally by 10% over the previous month.  This is the third month in a row that we have seen an increase in the overall number of closed sales, and we are up an impressive 35% in the past two months alone.

While the average sale price of single family residences in Miami Beach with a price under $1 million continues to decline from $653,282 in January 2009 to $513,800 in March 2009, the average closed sale price of condominiums in Miami Beach (under $500,000) and in the Downtown/Brickell market actually increased. This is the second month in a row that we have seen prices increase in the Downtown market, and are up from $231,767 in January 2009 to $296,252 in March 2009 respectively.

This leads us to a bit of a quandry in regard to the prices of foreclosure and distressed properties. While we all hear that prices continue to drop, and in relative terms and year-over-year this is the case, the banks are playing a game of cat and mouse with their REO properties. Here is the spiel – offer the property to the public at a bargain basement price, allow multiple offers to accumulate, play it off for a few weeks, and many suckers will bid up the price to more than asking.  It’s simple enough, but works time and time again.

Another interesting change in sentiment this month is indicated in the sale of five single family residences in Miami Beach in the $1 million plus category. For the past few months, we have witnessed lackluster sales with many luxury home buyers sitting on the sidelines. With five closed sales in the luxury category, and an average closed sale price of $2.4 million, the luxury home buyer has re-emerged in Miami Beach.

Featured Sales -  Two Luxury Miami Beach Homes

28 W San Marino Dr, Miami Beach

This Bauhaus inspired house built in the 1930’s, is located on the prestigious San Marino Island in Miami Beach. With six bedrooms and six bathrooms, a total living area of 4,716 square feet, and incredible views of the Miami skyline, the property sold to Venetian Marino Investments Inc, Hubert Jean Marie Weisslinger as president and director, for $3,830,000 or $812 per square foot. This house was placed on the market in December 2008 with an asking price of $4,450,000 and was only on the market for 47 days before going under contract.

5777 Pinetree Drive, Miami Beach

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 March 2009 for single family homes, unless otherwise indicated as condominiums/townhomes. The prices are the actual sales prices of all single family or condos/townhomes that closed during the month of March 2009.

Miami in Review – Q1 2009

For many of us, reflecting on the state of the Miami real estate market for the first quarter of 2009 versus the first quarter of 2008, is much like this monkey trying to make sense of his reflection in the camera lens. While we appear to have made significant progress as properties are selling and inventory is shrinking, just what is the reality and where is the market heading?

Single Family Residences

For the first quarter of 2008, a total of 1,149 single family residences were sold with a median sale price of $316,500, or $173 per square foot, and an average of 87 days on the market. For the first quarter of 2009, a total of 1,909 single family homes were sold with a median sale price of $180,000, or $104 per square foot, and an average of 104 days on the market. While the sales of single family homes has increased by over 65% for the same period in 2009, the average sale price per square foot has dropped by approximately 40%, and it is taking longer to sell a house.

Condominiums/Townhouses/Villas

During the first quarter of 2008, a total of 1,338 units were sold with a median sale price of $267,500, or $249 per square foot, with an average of 105 days on the market. During the first quarter of 2009, a total of 2,086 units were sold with a median sale price of $145,000, or $127 per square foot, and an average of 83 days on the market. Clearly, the sales of condos and townhouses has dramatically increased year over year as well. However, the average sale price per square foot has plummeted by 49% and properties are selling a lot quicker.

SUMMARY

In order to look more objectively at the above data, I think that it is important to pay attention to the inventory of distressed real estate in the market. During the first quarter of 2008, we had a total of 22 bank owned properties and 437 short sales, or pre-foreclosures, available for sale. For the same period of January through March 2009, a total of 1,091 bank owned properties and 3,784 short sales were available for sale. That is practically a 1,000% increase in the number of distressed properties available in the market from 2008 to 2009.

So we know that the number of foreclosures filed in Miami are up more than 30% for the first quarter of 2009 as well, and with the increase in distressed inventory available in the market, we will certainly continue to see additional pressure on pricing for several months and perhaps even through 2010.

So what has prompted the dramatic increase in sales in such a distressed real estate environment?  In many cases, prices of today’s real estate is less than ten or even twenty years ago. If one were to compare the city of Miami today to the Miami of the mid 1990’s, it is relatively easy to recognize how much more value Miami offers today. What is clear is that when buyers see value, they will invest.

For any additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

The data used to generate this chart/data is gathered from the Southeast Florida Multiple Listing Service (“MLS”) and the Miami Dade Clerk of the Courts public records. The data in the MLS is deemed reliable but not guaranteed. This data is for January through March 2009 for single family homes, condominiums, townhouses, and villas, unless otherwise indicated. 

Miami Distressed Sales – Update

During the most recent three month period from December 2008 through February 2009, we experienced quite a significant jump in the number of closed sales in Miami Dade County. Although the above chart does not show the results for the same period during the previous year, our total unit sales increased by 1,722 units or 43 percent over the same period! So what is really driving the increase in activity?

If you pay attention to the statistics in this table, what should immediately jump out at you is that two-thirds, or 66.2 percent, of the total unit sales during this quarter were either bank owned properties or short sales. This is further evidence to indicate how much the real estate landscape has shifted from a traditional market to one of mostly distressed sales. As buyers and investors are coming back into our market, we are now dealing with an entirely new landscape full of challenges and legal issues. Bidding, multiple offers, as-is contracts, revised contracts, Fannie Mae, asset managers, stripped properties, title issues, liens, association attorneys, and the list goes on.

With distressed sales representing such a large chunk of the current housing inventory, being aware of the potential legal and title issues that accompany bank owned and short sales is crucial. If you are considering getting involved in a short sale, here is a list that was recently provided by the National Association of Realtors:

1. Tax Consequences – Although the federal government passed a law in 2007 directing the IRS not to count mortgage debt forgiven by a lender as income, the provision is limited. It applies ONLY to purchase money mortgages, it does not apply to cash-out refinancing, and it does not apply to second homes or investment properties. There is also a dollar limitation of $1 million for married couples filing separately or twice that amount for joint filers.
2. Secondary Debt – Even if the primary lender forgives the debt, holders of second mortgages do not typically forgive the debt. It is more common practice that they accept a partial payment, like $2,000, and instead of forgiving the debt, they then sell the balance to a collection agency for another few thousand dollars. You may be caught by surprise when a collection agency calls you a year later seeking payment of the debt.
3. Inappropriate Lender Requests for Seller Contributions- It is not uncommon for lenders to go after money that the sellers have in a bank or retirement account before they approve a short sale request. They will sometimes push the real estate practioner representing the seller to get the sellers to sign over a note for the amount they have in the bank as a condition of the sale. However, in states where mortgage debt is non-recourse, they have NO right to the money.
4. Double Close and Flip- Here is what typically happens in this scenario: Investors insist on handling short sale negotations with the lender, allowing the real estate agent to focus on finding a buyer. During the negotiations, often without the agent’s knowledge, the investors talk the sellers to turn over the deed. Once the agent finds a buyer, the investors do a double closing, buying the property at a deep discount and then flipping it to the buyer at the listed price.
5. Loss Mitigation Experts – Companies that specialize in managing short sales promise to focus on the complicated details of the short sale. However, a lot of these companies are fly-by-night or have one person that is handling too many cases and may not touch your file for weeks.
6. Facilitating Transacations Not Listed On The HUD-1 Form – It is very common for investors to offer incentives to move a deal forward, but lenders do not want to see a seller walk away with money when they are supposedly taking a loss. Investors may try to work around this limitation by offering to buy something from the seller at an attractive price, such as a piece of furniture for $5,000. Be careful not to get involved in such transactions, which may potentially lead to charges of lender fraud.

If you are considering purchasing a distressed property in Miami, we are available to consult with you and discuss your plans. For further information, please call us at 305.673.5300 or send an email to  info@miamiangelproperties.com.

Miami Real Estate – December 2008

Summary - December 2008

For the month of December 2008 vs. November 2008, we experienced a substantial 74% increase in the number of closed sales versus the prior month. This increase in sales was predominantly focused in the Downtown/Brickell, Miami Beach and Coral Gables areas.

Recently, everyone has been talking about the big increase in sales of bank-owned properties or those in pre-foreclosure [short sales] and here is why. If you look at the combined total of 165 sales in Downtown/Brickell and Miami Beach condos [under $500k], a total of 95, or 58%, fell into this category. We think that the supply of bank owned properties will continue to climb as will the percentage of bank owned sales. Another fact that we should pay attention to, whether you are a real estate practitioner or investor, is that the majority of December’s distressed sales, or 73%, were bank owned properties and not short sales.

There was also an impressive increase in the number of sales of condos over $500,000 in Miami Beach versus November 2008. It should also be noted that more than 50% of these sales included some form of “jumbo” conventional financing. Apparently, the supply of jumbo mortgages is not so dire for Miami condos. I would also like to add that five luxury homes traded hands in Miami Beach in December, including waterfront locations on the Sunset Islands, Pinetree Drive, Allison Island, San Marino Island and Rivo Alto Island.

Featured Sales – A Downtown Loft and A Luxury Home

The Baylofts - 455 NE 25th St., Miami

This month’s featured sale was the purchase of a 2 bedroom, 2 bathroom loft condo in a new building near the Miami Performing Arts Center. The all-cash buyer paid $130,100 for 965 square feet [90 m2] of living space in a building that was constructed in 2004, which equates to a price of $135 per square foot! This unit features a wrap around balcony, 10 foot ceilings and stainless steel appliances. The best part is that the monthly maintenance fee is only $383, and with such a low purchase price, this condo was an absolute steal. We should also recognize that the most recent sale of an identical two bedroom unit in this building was at a purchase price of $238,100. This was a bank-owned property which was on the market for only 35 days and the original asking price was $129,900.

Sunset Island – 1525 N View Dr., Miami Beach

A Swiss buyer, Sonja Berchtold, as director of JP Investments I Inc., purchased this luxury waterfront home in late December for an all cash price of $6.25 million. This Caribbean Colonial residence has over 6,600 square feet (613 m2) with 5 bedrooms and 5.5 bathrooms and sits on almost an acre of land and with 165 feet (15.3 metres) of open bay frontage and direct access to the ocean. The seller, Rand Skolnick, purchased the home in February 2002 for $4.2 million. The original asking price was $8.9 million and after six months on the market the home sold for practically thirty percent less, or $6,250,000.

For any additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

The data used to generate this chart is gathered from the Multiple Listing Service (“MLS”). The data in the MLS is deemed reliable but not guaranteed. This data is for December 2008 for single family homes, unless otherwise indicated as condominiums. Homes that are pending sales have had offers made on them, and those offers have been accepted by the seller, however the sale has not yet closed. The prices are the actual sales prices of all single family or condos that closed during the month of December 2008.

Miami Real Estate – October 2008

Summary - October 2008

For the month of October vs. September 2008, we did note that there was a dramatic increase in the number of condominiums sold in the price range of less than $500,000. Additionally, that the number of single family homes that sold in Coral Gables increased by 400%, or from 5 to 25, due to the sale of several distressed properties. This was also the case in Miami Beach where the majority of the units sold were either a short sale or a bank owned property.

October’s Featured Sale

This month’s featured sale was the sale of the top floor of the North Tower of the Canyon Ranch, located at 6801 Collins Ave in Miami Beach. According to the Daily Business Review and Miami Dade Public Records, Betty Saks, a Smith Barney financial consultant, and her husband, Bart Kavanaugh, paid $5,449,700 for units 2701, 2703 and 2704, with a total of 5,100 square foot or 474 square metres, which is the entire twenty seventh floor of the development’s North Tower. The couple obtained a $3.0 million mortgage from CitiMortgage as purchase financing, structured as a three year adjustable rate mortgage with a starting interest rate of 5.125%. And you thought we were in a credit crunch!!

For additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

The data used to generate this chart is gathered from the Multiple Listing Service (“MLS”). The data in the MLS is deemed reliable but not guaranteed. This data is for October 2008 for single family homes, unless otherwise indicated as condominiums. Homes that are pending sales have had offers made on them, and those offers have been accepted by the seller, however the sale has not yet closed. The prices are the actual sales prices of all single family or condos that closed during the month of October 2008.

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