Miamism

Signs of the Miami Real Estate Bottom?  Good news from the media about Miami Real Estate? Pinch me please, this can't be true!

Check out this article by none other than Bloomberg:  Florida Real Estate Bottom Signaled by Sale of Distressed Condo

What I find fascinating is the creativity behind these bulk purchases.  Jorge Perez from The Related Group has been very heavily criticized, but you be the judge:

Perez made the bulk purchase, the largest in condo-glutted downtown Miami, in the 50 Biscayne Blvd. tower with Lubert-Adler Partners LP, a private equity firm headed by Dean Adler. The two firms raised $1 billion to buy condos, mortgages and land in Florida, according to a Feb. 13 news release. The price was $30.3 million, about half the cost of individually sold units.

Bulk Purchase

Perez's partnership bought the condos from his own development company and a partner, Atlanta-based Cousins Properties Inc., which built the 54-story tower.

In an earlier bulk purchase at 50 Biscayne, Perez and Cousins sold 26 units in May to 50 Biscayne Suites LLC for $6.1 million. Perez and Cousins paid off their construction loan with LaSalle Bank with the proceeds, according to Zalewski of Condo Vultures.

Paying off the loan allowed Perez to do the recent 120-unit bulk transaction at below-market prices, said Bruce B. Baldwin, a partner with the Miami-based Mase & Lara PA law firm who was not involved in the deal.
Construction lenders require developers to sell condos at a minimum price, he said. Once the developer's debt to the bank is paid, the developer can discount the units, he said.

Perez may follow a similar strategy at the Plaza on Brickell development, two downtown towers with a total of 1,000 units, and other developers may too, Zalewski said.

Rumors in The Miami Luxury Condo Market don't stop there though, just last week I heard that the Royal Family of Dubai had purchased Midtown Miami.  Although it is only a rumor and I have not been able to confirm it, it leaves you thinking that if big dogs are investing in Miami Real Estate.....there may be an end to the madness after all.

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I just finished reading the Biscayne Boulevard Times' article on The Vagabond Hotel in Miami's Upper East Side and all kinds of thoughts started racing through my head.  Can you tell me why in a world of negativity, we can't get ourselves out of the hole and want to bring everyone around us down with us?

Between the recession, down Miami real estate market, gas prices, the war.......can't we see a little color and start appreciating those people with a vision, the dreamers, the ones with positive attitudes and give them a pat on the back?

The Power of Intention is one of my all time favorite books (and concepts) because it tells you that you attract what you are.  So here's my take:

For all of you that think Silverman is a bit out there with his ideologies and his vision for bringing back the 50's splendor of The Vagabond when Sinatra used to visit - how about dropping the skepticism just one tad and opening yourselves to the possibility.

We will always be surrounded by negative people, but it is so refreshing to find romantics and idealists, non-conformists that are always reaching beyond the normal frame of potential and have a vision for change and progress.  Look around you and find those people, they exist, they are our friends and it wouldn't hurt to open yourselves to the possibilities.  They are the ones that make a change in our world, that improve our cities and lives.....you can choose to be one or to at least listen.

(note:  I will add the Vagabond article link as soon as it is updated on the BBT's website)

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Ines.Hegedus-Garcia 4 feedbacks »

I have to start part II of this series with the same paragraph as Part I:

The question of buying old or buying new in Miami Beach Real Estate always comes up. Some people have a misconception that because the South Florida Building code (SFBC) was updated in 2005, you should buy real estate built after that to make sure it's built right.

Condos are very different from homes when it comes to old vs. new, but they also have a lot of similarities. One thing to keep in mind is when a condo needs to do a major upgrade whether it is a roof, pool, finishes, balconies, etc., the whole condominium will share the cost of that upgrade, and therefore special assessments are given to each condo owner.

Miami Beach Condo Construction Quality

Unlike homes, Condo construction quality has remained strong through the years, and this is especially visible in Miami Beach Luxury Condos where finishes are the best and attention to detail is high. Keep an eye out for condo-conversions though, sometimes modern finishes are thrown together as upgrades that are not very well orchestrated and leave a lot to be desired.

New Miami Beach condos will have advantages like impact resistant windows and doors that were not available years ago - and it makes a difference to have to install shutters to a condo-unit on the thirty-something floor of a high-rise as opposed to needing no hurricane protection at all. If you are an absentee owner, there is major peace of mind not having to worry about installing shutters before a predicted storm.

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Ines.Hegedus-Garcia Send feedback »

The question of buying old or buying new in Miami Real Estate always comes up.  Some people have a misconception that because the South Florida Building code (SFBC) was updated in 2005, you should buy real estate built after that to make sure it's built right.

The South Florida Building Code

Well.....I could not disagree more.  Construction methods, through the years, have gotten worse and worse. Many Developers, in order to make more money, have found ways to cut corners and decrease the quality of construction.  The Building code many years ago was used as a minimum standard, but it got to a point that the same building code started being the top of the standard instead and contractors used it as a maximum.  In order to protect the consumer, that building code became stricter and so the change of the SFBC was inevitable.  Every time you complain about an inspector giving you a hard time and not approving a job done by a contractor, you should thank them instead, because they are there to protect you.

Sturdy Old Construction

Now that the building code question is out of the way I have to tell you that older established neighborhoods in Miami are known for their old construction.  From Miami Beach to Miami Shores, Coral Gables, Miami Springs....these neighborhoods were developed in the 1920's and their construction is as solid as it gets.  They have homes built in the 20's, 30's, 40's and 50's while Miami was evolving. These homes that have been there for at least ½ a century have withstood numerous hurricanes and most of them without even shutters!!   Please don't misunderstand this to mean that you don't have to get hurricane protection for your homes, it means that those old homes have lived through many storms with little damage and we can attribute that to the superior methods of construction of those times.

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The question of the day!! Has Miami Real Estate Hit Bottom??

Most of you that know us know that we are not the type to follow NAR's latest REALTOR bandwagon with "Now is the time to buy" campaign - we just don't see how a National Campaign of that magnitude can generalize about every real estate market since each one is so local in nature.

With that said, there are tell-tale signs that you, as a buyer, should be aware of:

• Investors buying

• Renters buying

• Sales Increasing

We have seen the numbers of Investor movement increasing at a drastic pace. Although we are also hearing the known phrase "Buy when no one else is buying"..... others are also catching on. These investors are not only local, but they come from other parts of the US, from Canada, Europe and South America.

We are also seeing those people that chose to rent 8 months to a year ago (because they wanted to wait for the market to stabilize), making their move now, or at least are beginning to consider to buy.

Miami Real Estate Sales have also increased and numbers don't lie. Here are some examples taking into consideration sales in the first 4 months of the year (from January 1st to April 30th) and the second third (which is not done yet) from May 1st to Today - August 16, 2008. You can see how sales are slowly creeping up.

• Miami Beach Real Estate - single-family homes
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    • First 1/3 of the year - 28 closed sales
      
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    • Second third of the year - 40 closed sales.

• Miami Shores Real Estate - single-family homes
  
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    • First 1/3 of the year - 26 closed sales
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    • Second third of the year - 35 closed sales

• Miami Real Estate - single-family homes
  
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    • First 1/3 of the year - 907 closed sales
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    • Second third of the year - 950 closed sales

• El Portal Real Estate - single-family homes
  
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    • First 1/3 of the year - 1 closed sale
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    • Second third of the year - 4 closed sales

• Aventura Real Estate - condos
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    • First 1/3 of the year - 208 closed sales
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    • Second third of the year - 266 closed sales

Please don't misconstrue this to mean that we are telling you to rush out right now and buy a property. The truth is that prices may keep dropping a bit in certain neighborhoods, but if you are looking for a long term Miami real estate investment, the signs of a stabilizing market are starting to show.

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Ines.Hegedus-Garcia 6 feedbacks »