Miami Beach Bungalow

PRICE: $599,900  **CLOSED SALE $570,000**

Description | This 1950’s home located in mid Miami-Beach has a converted garage that can serve as a third bedroom, den or office. This property has been renovated and features an open floor plan, original restored Dade pine wood flooring, and a large 7,500 square foot lot. With all the large windows you’ll feel like you’re living in a secret tropical garden with chic amenities and design. Call or email us today to view this mid-century Miami Beach bungalow – 305.673.5300 or info@miamiangelproperties.com.

Address | 3440 Sheridan Ave, Miami Beach  -   map it

Property Type | Single Family Residence
Year Built | 1954
Living Area | 1,992 SF or 185 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | N

Download a full description (PDF):

3440 Sheridan Ave (Right click the link and choose “Save link as”)

Quest In Sunny Isles Beach

Over the past two weeks I have spent considerable time walking several luxury condominium buildings in Sunny Isles Beach. The objective was to find a 2,000 square foot condo in a luxury “established” building with minimal distress, a  flow through floor plan, turnkey unit, and with awesome ocean and city views. Sounds easy enough, right? Now try and accomplish that for under $350 per square foot.

So how does one determine an established building? It’s not easy, but a good start is to look at the pipeline of distressed properties in the building, including pre-foreclosures, bank owned and those scheduled for auction. With over 1,300 condos currently available for sale in Sunny Isles Beach, I quickly narrowed it down to 125 potential candidates. The list – Ocean One, Ocean Two, Ocean Three, The Pinnacle, Sands Pointe, Oceania, and for fun, Trump Tower I and Sayan.

So why would we throw in a couple of recently completed projects, such as Trump Tower or Sayan? Simple. Developers have been selling remaining units for big discounts these past few months and we’re looking for blood on the streets! Additionally, there was the recent resale of a designer ready “D” line unit on the 12th floor in Trump Tower II at $328 per square foot.

The first thing that jumps out at you are the setback requirements between the buildings, and in particular, the new construction projects. These newer projects have significantly reduced setback requirements between each building, and if you’re not careful, that luxury penthouse in the sky may just have a view of the tower next door. Not to say that the new projects do not offer stunning views, but they are just more limited. I should add that one of the most amazing views that I have ever seen in Miami, was that from the master bathroom in the the “D” Model on the 37th floor in Trump Tower I.

We looked at some awesome units with truly spectacular views, and I should add that we accomplished the task at hand. The winner was clearly Ocean Three located at 18911 Collins Avenue. Why? The functionality and floor plans of the units we walked through, together with outstanding views of the ocean and city / bay, and to top if off a very stable project, and when all combined offered the most value for what our client was looking for.

If you would like more information or assistance with Sunny Isles Beach or Miami Beach properties, please do not hesitate to contact us at info@miamiangelproperties.com or call 305.673.5300.

Foreign Interest in Miami Increases

Although there is no official data available, the estimated percentage of second and investment properties owned by foreigners in Miami is as high as thirty percent. We attract investors and second home owners from all over the world, with our primary feeder markets coming from flight capital leaving Latin and Central America. This is one of the reasons that we have a somewhat unique residential market, and what is now helping us turn over so many foreclosed properties.

We even have certain areas where foreign investors look to purchase residential property. In South Florida, for example, Doral and Weston are two preferred areas for Venezuelans. Known locally as Little Buenos Aires, Argentines love the mid-Miami Beach area.  In the past few years, Sunny Isles Beach in North Miami is fast becoming a Russian enclave for vacation and second homes. Meanwhile, European clients prefer the many waterfront areas of Miami Beach, including the South Beach, Venetian Islands, Normand Isle, Treasure Island, Sunset Islands and Harbor Island.

So while our traditional second home American buyers out of Chicago, Washington D.C., Boston and New York have taken a back seat, international buyers have been flocking to our market to buy distressed real estate.  This year, the range of our international clientele has been extremely diverse and from all corners of the globe, including Turkey, Switzerland, Germany, France, Argentina, Bahamas, Bermuda, Canada, Israel, South Africa, Angola, India, Italy, Brazil, Ecuador, Guatemala, Spain and England.

So what has prompted this surge of international buyers in Miami?  The following driving factors are what we most commonly hear from our international clients buying in our market  -

1. Miami remains an alluring international destination. It is the American Riviera, our own little Sardinia, St. Tropez, Cyprus or Capri.
2. Miami is a cultural Mecca, a tropical paradise where the many cultures of the Americas live, work and play.
3. The cities of Miami and Miami Beach have invested hundreds of millions of dollars to develop the arts, history and culture of our area.
4. Miami is an international hub and easily accessible from most continents. We are a major international airport, sea port for cargo and trade, tourist hub, and regional business center for Central and Latin America.
5. A foreign owner enjoys the same fundamental rights to ownership* as that of a U.S. resident or citizen.
6. Although our country is suffering from a major recession, Miami is a safe place to enjoy, relax and revitalize oneself.
7. The Miami lifestyle is very unique and different to other major cities. This is a city that is always alive and it shows in our people, places, colors, festivals, and experiences.
8. While Miami has one of the highest rates of foreclosures in the country, the value that Miami offers today surpasses that of ten or even twenty years ago.

One of the tools still available to most foreign investors today, is the ability to obtain financing for a second home. Fair enough, relative to three or four years ago when most banks offered generous terms to foreign nationals, it is more difficult to obtain mortgage financing today.

However, one of the common misperceptions of our clients is that the difficulty lies in the program either not being available, or that the rates and loan-to-values are unattractive.  This is mostly an incorrect assumption as today interest rates are far more appealing AND foreign investors may still borrow up to 70% loan-to-value, or 70% of appraised value, whichever is less.

The real difficulty lies in getting approved to purchase a condominium in a project that does not meet today’s guidelines. The personal or borrower requirements, however, for proof of employment, six months reserves, sixty (60) day sourcing of the down payment in a local bank account, and letters of credit, are practically the same.

For further information on any of our properties, or Miami real estate, please call our office at    (305) 673-5300    or email us at info@miamiangelproperties.com.

 * Note that time spent in the United States and immigration status will determine tax liability. Foreign investors should consider title options carefully. There are a several legal issues and tax consequences for foreign investors from purchase to sale of the property – the advice of a qualified accountant, finance professional and attorney should be sought.

Moulin Rouge

PRICE : $210,000   **PRE-FORECLOSURE**

Description |  This unit is in a brand new Art deco dondo conversion with a gourmet kitchen, bathroom spa, and fantastic upgrades.  Located on Meridian near Flamingo Park and just blocks to the beach.  To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 741 6 Street Unit 202W-   map it

Property Type | Condominium
Year Built | 1941
Living Area | 816 SF or 76 m2
Bedrooms | 1
Bathrooms | 1
Waterfront | N

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741_6_street_unit_202w (Right click the link and choose “Save link as”)

The Meridian

PRICE : $399,900  

Description |  A brand new luxury condo loft, boasting over 1100 square feet.  Flooded with bright white light, you’ll feel that you’re stepping into a sanctuary spa everytime you step in.  This building has been ever so popular since it’s ultra-modern design hit the grounds of premier Meridian Avenue.  To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 2001 Meridian Avenue Unit 422-   map it

Property Type | Condominium
Year Built | 2005
Living Area | 1145 SF or 106 m2
Bedrooms | 1
Bathrooms | 1.5
Waterfront | N

Download a full description (PDF):

2001_meridian_avenue_unit_422 (Right click the link and choose “Save link as”)

Miami Beach Foreclosure Fantasy

Getting all caught up in this real estate madness of chasing the next “best” deal to come on the market, certainly has its downsides and pitfalls. This obsession to find the perfect view, size, location, price, and all in a quality and not a distressed building, is at most just a real estate fantasy, a made for “Property Virgin” TV episode.

Here are some of the most common misperceptions that we commonly hear when “foreclosure hunters” visit our Miami Beach market:

• Cash is King; just because you can pay in cash does not mean that you can low ball the seller and offer way below asking. There are MANY cash buyers out there and you have some serious competition. This is particularly the case when bidding on a property in a high demand location or building.
• It’s All about Price; a value added real estate purchase is not ONLY about the purchase price! If the condo you are considering is in a financially stable building, with a high percentage of owner-occupants, a great location, low default rate,  with no major deferred maintenance issues or upcoming assessments, and conventional financing is available to buyers, then you have much less risk of further price deterioration and the safety of medium to long-term property appreciation.
• A Direct Ocean View; if you have always dreamed of waking up in your bed and looking over the ocean in Miami Beach, be prepared to pay significantly more for this direct view! Miami Beach is surrounded by water on three sides and there are multiple islands surrounding us in Biscayne Bay, such as the Sunset Islands, Venetian Islands, Palm Island, Hibiscus Island, Star Island, Belle Isle, Allison Island, and Treasure Island etc.  Therefore, the views vary GREATLY from location-to-location, building-to-building and unit-by-unit. You may just be able to buy that same 800 SF apartment with direct open bay views, as well as views of the ocean, Miami Beach, and the stunning views of downtown Miami at night, located on Treasure Island, which is just five minutes from the beach and ten minutes to South Beach, all for $80,000 – $100,000 less than that direct ocean view!
• It’s Only about Property Appreciation; this attitude will end your excitement and determination in a heartbeat. Real estate is not liquid asset that trades on a public exchange. While speculators enjoyed many years of unrealistic and unsustainable day trading in real estate, this is not realistic thinking or a smart approach to making a few bucks on your investment. Now don’t get me wrong, there are still many ways for a sophisticated real estate investor to make a quick buck in this market. However, as far as the general public goes, if you are buying that much desired second home or investment property in Miami Beach, you have to be thinking in terms of appreciation over five, ten or twenty years. And just as important, the pleasures of owning a second home in Miami Beach brings SO MUCH MORE to your life than just “how much will I make in three years?”
• Something For Nothing; people, stop deluding yourself. This is one of the most desired cities to own real estate in the world, and one of the cheapest! Everyone wants to experience and live in Miami Beach. Our 80,000 residents are truly a global, diverse, multicultural, open bunch of people. Our real estate is limited and we are built-out in most areas. There is a minimal amount of inventory coming online and most buildings are historically protected. Yes, there are a handful of new condo developments under construction on the beach with maybe a total of 600 new units and then that is it. This is not downtown Miami and the supply is limited.
• I Will Qualify For Financing; even if you have excellent credit, no debt and good income, the property you wish to buy may not qualify for several reasons. Nowadays the most common reasons are the lack of or no available condo association reserves, or more than 15% of owners are 30 days behind on paying their maintenance fees. Let’s face it, in the real estate boom days Fannie Mae or Freddie Mac would buy just about any mortgage on the secondary market.  Today, it is a completely different story.

I think it is important to work with the facts and the reality of the current real estate market. Many of our clients have been very successful in purchasing a property in a fantastic location for an incredible price. This is a result of having a realistic plan and working with the dynamics of this almost historic opportunity in our local real estate market.

Bottom Fishing

The Financial Dictionary defines a bottom fisher as “an investor seeking stocks that have fallen at or near their bottom, which he or she believes will trend up in the future.” I think that we as a society are fixated with the idea of finding the floor or bottom in real estate. It’s like an anti-depressant for some, one’s Prozac you might say. Once the local or national media says that we have hit bottom, you immediately feel good about making a decision.

What we are able to recognize, however, are great deals based on the basic fundamentals of location, condition, size, use, cost and planned length of ownership. One buildings maintenance fee is not the same as anothers, nor is the current taxable value. The location is what it is. Do you plan to buy it as a primary, second or investment property? Does the condo have an uninterupted view of the bay, is it facing west or east? What is your cost of borrowing and what is the amount you need to borrow? What does an identical or similar unit in the same building or immediate neighborhood currently rent for? What are the most recent sale comparables? So with some work one may relatively quickly determine if the price and cost of ownership makes sense for you. These are facts.

It is fair to say that real estate is cyclical, which includes several stages. And this is where I think that most people get it all mixed up. When there is significant demand, price appreciation and euphoria, everyone jumps in at the high point. This is actually the point of maximum risk. And then we are somewhere at the lowest point, the point of depression and desperation, then this is the point of maximum opportunity.

The way how I see it is that there is NO real bottom. This is all just a dream of finding the “perfect” deal. Real estate is local by nature and it is not possible to apply a “bottom” to all condominiums in Miami Beach, for example. While there are certain checks and balances one should apply when making a smart real estate investment decision, this obsession with entering the market at the absolute bottom should not be one of them.

Miami Is Flying High

So you think that the local economy is depressed and you do not see any improvement on the horizon? It all depends on what information you are tracking and which segment of the Miami economy you are considering.

Let’s consider the latest data provided by the U.S. Department of Commerce and Office of Travel and Tourism Industries on international visitation to Miami:

• We ranked SECOND in the nation, behind New York City, in total number of visitors.
• Year-to-date through August 2008, with over 2 MILLION international visitors, we are up by 10% over the same period in 2007.
• The top ten tourist generating countries to the U.S. - Canada, Mexico, United Kingdom, Japan, Germany, France, South Korea, Italy, Brazil and India.

The Miami tourism economy is certainly alive and kicking. During the first six months of 2008, with an average stay of 5.85 days, overnight visitors in Miami spent $17.1 billion in direct expenditures. If you are looking for foreign real estate buyers, spend your marketing dollars wisely and make sure to focus your efforts and dollars on our feeder markets.

The “South of Fifth” Neighborhood

I have been spending much time lately working with a number of buyers on the South of Fifth market in Miami Beach. We have looked at properties selling in a range from $400 to $1,200 a square foot, including small six unit modern loft buildings to mega high-rises and family-style resort complexes with pools, jacuzzis, billiard rooms and gyms. This inspired me to learn more about the history and development of the area since the early 1900’s when John Collins developed the world’s largest avocado plantation on Miami Beach.

As with many of Miami’s old neighborhoods, the South of Fifth “SoFi” neighborhood in Miami Beach enjoyed its heydays in the 1950’s. Miami Beach had a reputation as the “American Riviera” with its beaches, hotels, tropical weather, mobsters and star power. However, the area was ethnically divided with SoFi as home to a thriving, mostly Jewish community, while the areas to the north and even some hotels had little tolerance for diversity. A number of hotels had “restricted clientele” rules and some properties transferred with deeds prohibiting “Hebrew blood.”

By the 1970’s, however, SoFi had become a haven for Jewish retirees and the younger generation stopped moving in. As the area declined, the city formed what was known as the “Committee to Keep Greater Miami Beach Young.” Then in 1973, the city created the South Shore Redevelopment Area in an effort to eliminate most of the structures south of Fifth Street. The city leader’s imagined that the $400-million plan would completely revitalize the area. Unfortunately, it all but guaranteed the area’s decline.

Many theories exist as to why the plan failed so dismally, but clearly it influenced property owners to stop taking care of their existing buildings. As the neighborhood was so cheap, it attracted the poor and crime and drugs became rampant. Unfortunately, things continued to get worse and it was not until the mid 1990’s that interest re-emerged to invest in the SoFi area.

Today the SoFi neighborhood represents the success that redevelopment can produce. The area is very safe, it boasts an excellent elementary school, many successful businesses, restaurants, hotels, nightclubs and some of the most expensive real estate on the east coast. Every weekend the beach is packed with locals and tourists and our resident Brazilian soccer stars play “Footvolley” at Third and Ocean Drive. We have one of the highest grossing restaurants in the country, Prime 112, and last year Danny Devito and his partners opened Devito’s at 150 Ocean Drive. It also happens that the SoFi area continues to see record prices that people are willing to pay for a home in one of the most prestigious and active residential neighborhoods in Miami Beach. As an example, one of our clients is selling his condo in the Murano at Portofino, which we just put under contract to an all-cash buyer for $883 per square foot.

“Pura Vida” SoFi.