Miami Beach Rock Star Cribs

Recently, these four rock star properties traded in Miami Beach. Two homes, two condos. New and old, ocean and bay. Just as I always say to clients, it is all about the location.

> The Residences at the Bath Club -5959 Collins Ave #1103, Miami Beach – a 3 bedroom, 3,640 square feet oceanfront unit – acquired from the developer in 2005 for $2.28 million -  sold for $2.29 million or $629 per square foot.

> The Setai – 101 20th St #1705, Miami Beach – one bedroom, 821 square feet, oceanfront condo – acquired in 2004 for $550,000, generates $110,000 in net rental income - sold for a $1.2 million OR $1,462 per square foot – impressive!

 

> North Bay Road – 5004 N Bay Rd, Miami Beach – a 4 bedroom single family home built in 1950, half an acres, 100 feet of waterfront – listed in Feb 2007 for $6.5 million, closed 9/29/08 for $3,075,000 or $747 per square foot.

> Venetian Islands – 122 E San Marino Drive, Miami Beach – a five bedroom home built in 2003 – active on the market 8/12/08, asking $1,799,000 - SOLD in less than 60 days on 10/29/08 for $1.7 million or $428 per square foot.

These recent Miami Beach sales just go to show that buyers continue to recognize the tremendous value of Miami Beach real estate, even in times of major economic instability.

Miami Spin Cycle

For most people today, the Miami real estate market is much like a spin cycle. Many talk as if they have been wiped out and got worked until they do not know which way is up. And yes, some have been wiped out, but really only due to their own greed.

So let’s look at a few notable deals in the Miami Beach area that closed in the past month.  We start with the luxury segment of the real estate market and North Bay Road. The magnificent old-world Mediterranean estate located at 5396 N Bay Road, with 6,977 square foot of living area and 79 feet of water frontage on the bay, traded for a price of $6.8 million. The buyer out of New York paid a handsome $975 per square foot and took out a $3.8 million mortgage from Bank of America for a property that last traded in July of 2005 for $5.0 million.

In Miami Beach, we also had three impressive waterfront land deals this past month.  The three properties located at 1339 N Biscayne Point Road, 3370 Chase Avenue and 4567 Pinetree Drive, each traded hands for $98, $102 and $99 per square foot respectively.  The sale of 4567 Pinetree Drive for $12.1 million, an unusually large 3-acres vacant parcel, with about 300 feet on the water, really stands out. This property was purchased by Seth Gerszberg, founder of hip hop T-shirt company Ecko, for $9 million or $74 per square foot, at practically the peak of the market in July 2004. 

This supports our previous findings that while the luxury segment has seen some lack of demand and stagnant prices, that there are still buyers out there that recognize the value, uniqueness and potential in Miami Beach waterfront property.  Alternatively, by looking just a little further north up Collins Avenue, to the quiet seaside village of Surfside, we find a very different story. 

My analysis of three recent sales of single family homes, all with identical size lots, and similar in age and size, revealed that all three traded at an average decrease in value of 37% of the most recent sale, of which two traded in mid-2006 and one in mid-2005.  The sale prices ranged from $239 to $281 per square foot, or $335,000 to $450,000.  I recognize that for many of you that you may consider that a hefty price tag, but one has to consider that many of these homes sold for almost double that amount just a few years ago.

Now I don’t know about you, but I think it’s beginning to smell like opportunity around here!