2014 Miami Beach Luxury Waterfront Real Estate Sales – Prices Surge on Low Inventory and 2015 Predictions

It feels good to be back. This stuff is in my blood. I focus on a very specific niche of Miami luxury real estate: Miami Beach and Indian Creek luxury real estate. This market takes me from South Beach to the three pill-shaped islands — Star, Palm and Hibiscus Islands:
Miami Beach Waterfront Estates

  • Venetian Islands
  • North Bay Road (lower, middle, upper)
  • Sunset Islands
  • Mid-beach waterfront
  • Pinetree & Flamingo
  • La Gorce Island
  • Allison Island (residential side)
  • Indian Creek Island

I don’t include Normandy Village or the town of Surfside in waterfront real estate sales, as these areas represent “starter waterfront” and really aren’t considered an option for “UHNWI” (ultra-high-net-worth individuals).

Where to start? 2014 was pretty much more of the same. Very strong year with 81 home sales. We are still dealing with a lack of inventory in the Miami Beach single family home sector. How can I tell? Well, the year-over-year sales price per square foot jumped 16% in 2014 to $1,126. Days on market decreased from 241 in 2013 to 193 last year. Here’s an analysis of how sales price per square foot has shifted over the last five years or so.

Miami Beach and Indian Creek Island Waterfront Sales – Residential Homes and Vacant Land/Knock-downs

YEAR SALES VOLUME # OF SALES $PSF AVG PRICE PER HOME # OF LOT SALES $PSF LOTS-KNOCK-DOWNS SALES VOLUME/LOTS
2014 $556,608,650 81 $1,125 $6,763,530 25 $339 $181,555,000
2013 $520,037,050 90 $946 $5,778,440 11 $285 $75,105,000
2012 $602,818,300 99 $887 $6,089,073 10 $211 $96,495,000
2011 $351,263,033 75 $769 $4,683,507 N/A N/A N/A
2010 $226,854,000 53 $710 $4,280,264 N/A N/A N/A
2009 $169,331,447 42 $702 $4,031,701 N/A N/A N/A
2008 $245,777,500 49 $934 $5,015,867 N/A N/A N/A

I have not tracked land sales prior to 2012 because the numbers were insignificant. But in the chart above, you can see how notable they’ve become over the last three years. I remember when land would sell for UNDER $100 per square foot just before 2012.

2015 Luxury Waterfront Home Sales in Miami Beach/Indian Creek Island – Estates and Land

2014 homes

The Ever-Increasing, Ferocious Desire for LAND

land 2014

Miami: The City of the Future

I love to drive. Yes, even in Miami traffic, I drive… on Collins Avenue, Biscayne Blvd and Wynwood… through Craig Robins’ masterful transformation of the Design District – which is becoming Miami’s Worth Avenue… and along the awe-inspiring swirls of concrete in Doral at the intersection of SR 826 and 836. No matter where I am, my mind is completely blown by the incredible amount of money being pumped into this city by the TRILLIONS.

Even after 20 years in the business, I am amazed by the number of chic, UBER-expensive condos being designed by the most important architects in the WORLD. We have at least 5 five- and six-star condos from Pritzker Prize-winning architects such as Richard Meier, Norman Foster, Rem Koolhaas, Herzog & de Meuron and Zaha Hadid – her first residential project in the Western Hemisphere.

There is no real estate bubble here. People just WANT Miami. It’s just as simple as that. I was further emboldened by Time magazine’s declaration in its December 2014 issue that land and condos in Miami will prove to be one of the four premium commodities of 2015.

My prediction this year for the Miami Beach real estate market is that 1) Inventory will continue to be scarce 2) Days on market will continue to drop, and 3) Price per square foot for homes and land is headed for another healthy bump.

Hey New York City – you’ve got a lot of ground to make up because Miami is on it.

Browse Miami Beach real estate here

Related Reading:

 

I’m Back! Miami Beach Real Estate: Single Family Waterfront Sales for 2013

I know, I know. I ‘ve been gone. Gone! But I’m back. In the year and a half I’ve been away, I’ve seen exactly ONE blog post from other sources that I consider great. Most of the stuff that gets pushed out to you is for reasons other than simply delivering useful info. I’m actually ready to write the 2014 waterfront statistics story, but before I do that, I feel I must do a 2013 stats report so today’s market can be fairly compared.

It would be pretty hard to top the “Great Land Grab” of 2012, where every Miami-Miami Beach real estate record in every sector was broken. And that’s basically what the current numbers prove.

Fleur De LisI find that every year has a story, a nuance that makes it unique. In 2012, Star Island and Indian Creek Island took the spotlight. The sales volume of both islands basically doubled from the year before.

Miami Beach Waterfront Home Sales Continue Fever Pitch in 2013

Reminder: This post discusses 2013 performance data. A review of 2014 will be out soon.

Throughout 2013, buyers of ultra-luxury properties still purchased with wild enthusiasm, but since the market was so hot in 2012, we were left with a low-inventory issue. When this happens, real estate looks to its tertiary market or pocket listings – listings that are active, but, for a variety of reasons, are not on the open market with a broker.

This happened in a big way in ’12 for Miami Beach. Of the 90 luxury waterfront home sales, 24 of them originated from pocket listings. That’s almost 27% of all transactions – a huge number.

2013 Miami Beach/Indian Creek Island Luxury Waterfront Sales

2013-house

Vacant Miami Beach Land Sales Skyrocket

With the availability of ultra-high-end homes lacking, investor focus shifted to ultra-prime vacant land or homes that could easily be knocked down. Eleven parcels traded in 2013, as opposed to ten in 2012. Sales price per square foot was $211 in 2012 and jumped to $285 in 2013.

Miami Beach Waterfront Sales – Vacant Land and Knock-Downs

2013 Vacant land parcels-knock downs
Check out Miami Beach real estate here.

EXCLUSIVE: Venetian Island Home Sells for over $15M- Breaks Multiple Records

SBCB Exclusive

In off-market sale, 420 W. Rivo Alto Drive Sells for Whopping $15,079,600 or $1872 psf.

420 W. Rivo Alto Drive

Since the home wasn’t listed and was recently completed by the previous owner, not much is known about this home. Additionally, the tax records have yet to be updated with the new home specs but the seller confirmed that the property is approximately 8,000 square feet and is sited on a 13,382 square foot, pie-shaped lot.

At over $15M this is the highest sale ever on the Venetian Islands.  Also, $1872 is a record breaking number psf.

Di Lido Island’s Villa Fendi

Di Lido Island had another stellar sale in June.  1 E Di Lido Drive, sold for $14M.  The property is located on an uber-prime 16,700 square foot lot on the southern tip of the island.  The seller was the grandson of the Fendi fashion house founders.  Villa Fendi- as it was known- for marketing purposes I would surmise, sold for a impressive – at the time – $1788 psf.

Villa Fendi Di Lido Island

 

Read More

Stratosphere: 2012 Miami Beach Waterfront Real Estate Sales Soar to Heights Unseen – UPDATED

Miami Beach neighborhood map

 

Check out Venetian Island waterfront homes for sale

1 Hotel & Residences South Beach

A Miami Beach Condo & Condo-Hotel with a Storied Past and Starry Future

I’ve never really devoted a post entirely to a Miami Beach real estate project, so this is a bit odd but FUN for me. The reason I decided to is because 1 Hotel & Residences South Beach is the last development of its kind in this area. What exactly do I mean by that?

1. It’s an oceanfront condo and condo-hotel in South Beach, where there’s no more land on which to build.

2. None. No more.  Zero. Zip. Nada.

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Rich History of the Property – Who Knew?

1 Hotel & Residences has had many incarnations over many years. The hotel was established in 1926 as the Roney Palace Beach Resort and became known as Florida’s greatest hotel. Built by N.B.T. Roney of New Jersey, it was designed by Schultze and Weaver, the architects of the second (and current) Waldorf Astoria in New York. The firm also designed such Miami landmarks as the Freedom Tower downtown, the Biltmore Hotel in Coral Gables and in Palm Beach, the fabled Breakers Hotel.

RONEY_newThe supremely elegant property had a life span of just over 40 years; it was torn down in 1968. The new Roney Palace, a resort with a condominium component, opened in 1971.

Roney Palace shut down in 2004 when the Chetrit Group bought it for $150M. In 2007, Chetrit sold their interest for $370M to William and Michael Achenbaum, owners of the Gansevoort Hotel in NYC.

The Gansevoort Group converted the property into an outpost of their uber-fab NYC hotel, naming it Gansevoort South Beach. The new project opened in 2008 just before the financial crisis. By December 2009, it was in foreclosure. The leinholder ran it under the Gansevoort name until the property was acquired in February 2012 by Starwood Capital Group, The Lefrak Organization and Invesco. The new owners changed the name to The Perry South Beach Hotel.

The Perry consisted of 334 hotel rooms, 255 condo units and 90,000 square feet of retail space, including a David Barton Gym and an STK restaurant from New York City.

Roney Plaza Hotel Miami Beach

In early 2014, the building will reopen as 1 Hotel & Residences South Beach.

Introducing the NEW 1 Hotel & Residences South Beach

In addition to the name-change, the new owners plan a complete renovation of the 1960s property. It was initially estimated that $100M would be spent to transform the structure into a LEED-certified “green hotel.” Everything is scheduled to be replaced… from the windows on in. My sources tell me that the final tab for the massive makeover will be closer to $200M.

The project will consist of a 417-room hotel and 163 private residences run by SH Group, which is Starwood’s hotel management company. 1 Hotel is being developed by Starwood Capital Group’s highly-acclaimed chairman and CEO, Barry Sternlicht, who is also the former chairman and CEO of Starwood Hotels & Resorts, and creator of the very successful W and St. Regis hotel brands.

1 Hotel & Residences South Beach: The Residences

The 163 condos will occupy floors 9 through 16. Initial offerings will include 1-, 2-, 3- and 4-bedroom floor plans, which will range from 830 square feet to about 4,000 square feet. The 15th and 16th floors will feature premium penthouse residences with a distinctly different look and feel from other units. Three stunning oceanfront duplex apartments will also be on floors 15 and 16; these are the @ 4,000-square-foot properties.

1 Hotel & Residences South Beach: The Condo-Hotel

With the wild success of Miami Beach condo-hotels in general (W, Canyon Ranch, Fontainebleau, Mondrian…), there could be interest from potential 1 Hotel owners to place their condos into the hotel pool. This makes the purchase even more attractive because Miami is consistently one of the top-performing U.S. hotel markets.

Buyers will be able to place their units in the rental pool if they purchase the 1 Hotel furniture package as well. More details coming soon!

1 Hotel & Residences South Beach: The Amenities

Yes – 1 Hotel will continue to feature its now-famous rooftop pool, along with three other pools. Owners and guests will enjoy 600 linear feet of oceanfront with private beach club amenities. Additionally, the hotel will have a 40,000-square-foot gym and spa, 24-hour, in-residence dining, and STK from NYC will still call 1 Hotel & Residences home – after the restaurant undergoes a major upgrade.

1 Hotel is slated to open in the first half of 2014, and sales should start in the next 30 to 45 days. While prices have NOT been set yet, I have a feeling they will come in around $950 to $1,000 PSF to start.

Given the notable shortage of Miami Beach real estate inventory and the fact that 1 Hotel is nearing completion, I think these units should move VERY quickly.

Read more on 1 Hotel & Residences South Beach.

 

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Breaking News: Setai South Beach Condo Sale Breaks Record… AGAIN

SBCB Exclusive

Sale of a Setai Condominium breaks $PSF record for a non-penthouse unit.

Last week it happened again! Another Miami Beach real estate record was shattered. And from what I understand, yet another record transaction may go down here in the next day or two.

Setai Residences unit PH-B sold for an ASTOUNDING $3,411/SF. Why is this astounding? Well, for one thing, even though this unit has a PH address, it isn’t really a penthouse. It doesn’t have a large outdoor terrace or rooftop space, or outdoor pool or jacuzzi, which usually defines a true penthouse.

This residence is special, though, because it’s one of only three condos of its kind in Setai South Beach: the “09” line on floors 37-39. The 2,521 SF, three-bedroom condos are rare because they encompass the whole front of the building. The double-corner unit has views to the south, east and north.

The interior was upgraded from the standard developer finishes, but it’s the real estate (or lack thereof) that makes this luxury Miami Beach condo so valuable that it didn’t even hit the open market. Yup! Three offers, just like that.

Setai South Beach Kevin Tomlinson

The seller purchased the property in July 2012 for $6.55M and flipped the unit to Andrew Rosen, a co-owner of the Theory clothing line, for $8.6M – thus making a $2M profit in LESS than one year. BAM.

Setai South Beach, Miami Beach         Setai South Beach, Miami Beach real estate

Setai PH-C (3709) sold last March to NYC developer Mr. Lefrak for $7.2M. Lefrak is now in partnership with Starwood Capital to renovate and re-market the old Gansevoort Hotel into a “green” concept condo-hotel, 1 Hotel & Residences South Beach, located two blocks north at 2399 Collins Avenue. Vladislov Doronin, Naomi Campbell’s Russian boyfriend, who now lives on Star Island, once owned Setai PH-A (3909).

Miami Beach’s Top Luxury Condo Sales

Most of them are in Setai South Beach or W South Beach:

CONDOMINIUM SALES PRICE SALES $PSF SOLD DATE
Setai South Beach Villa B $27M $3,799 1/14/2013
Setai South Beach Villa A $21.5M $3,463 12/8/2011
Setai South Beach PH-B $8.6M $3,411 5/21/2013
Continuum South PH 3 $15.75M $3,379 6/1/2012
Setai South Beach #2308 $7.79M $3,045 3/5/2013
W South Beach #1928 $8.3M $2,975 2/16/2012
Setai South Beach PH-C $7.2M $2,856 5/14/2012
Setai South Beach #2408 $3.3M $2,892 7/5/2012
Setai South Beach #3108 $3.26M $2,857 8/6/2012
W South Beach #1828 $3.5M $2,825 11/1/2012
ICON South Beach PH-2 $20.96M $2,623 1/1/2013

The developer of The Miami Beach EDITION, a new condo-hotel and residence project from uber-hotelier Ian Schrager, has reported a sale of two combined penthouses for $34M or $3,800/SF.

Related Reading:

                   Miami and Tampa had annual gains of 10.7 percent and 11.8 percent

                   Miami-Dade home prices rose 23.7 percent, condos up 17.1 percent

 

 

 

 

Miami Beach Real Estate: 2012 South of Fifth Condo Stats

What a year it’s been. Sorry for the lag on this report.

Miami Beach real estate, Continuum South Beach, South Beach real estate

2012 was a crazy time for Miami luxury real estate, homes and condos alike. In 2011, this South of Fifth (SoFi) condo index added a new luxury building, Ocean House, an ultra-posh, low-rise, 28-unit property in the completely renovated Walburne Hotel. It’s located at 125 Ocean Drive and was originally built in 1946.

The South of Fifth condo index is comprised of ten buildings, including Ocean House: Apogee, Continuum North, Continuum South, ICON South Beach, Murano at Portofino, Murano Grande, Portofino Tower, South Pointe Tower and Yacht Club at Portofino.

 

Number of Miami Beach Condos Sold in 2012

Miami Beach real estate

 

2012 set a record for the number of Miami Beach luxury condos sold. 241 units were traded, up from 198 condos in 2011, which broke a record as well. Here’s how the last five years look:

  • 2012: 241
  • 2011: 198
  • 2010: 149
  • 2009: 129 (nadir)
  • 2008: 153

 

South of Fifth Condos: Average Days on Market in 2012

Miami Beach Condos. Days on market 2012

As a Miami Beach Realtor for 20 years +/-, my thought is that unless a property is really special in some way, good or bad (floor plan, location, condition, etc.), if it shows well and is priced right, there is really no reason for it to be on the market more than 120 days.

Buildings such as Murano Grande have come back very strong from an oversupply of units – in this case, practically since the building was finished in 2003. The backstory on Murano Grande is that it’s a perfect example of the condo investor frenzy in Miami. The condos sold out very quickly… all to investors. When the building went to close on the units, almost every one was put back on the market as a resale. That’s pretty hard to snap back from.

Further hampering the absorption, the Miami Beach real estate market started to downturn in 2005. Up until now, Murano Grande has always had an oversupply of units. Then in 2008, the financial crisis came. As of today, there are only 14 units available for sale at Murano Grande, which is about 5% of the building. I’ve mentioned before that a balanced market (neither a buyers’ nor sellers’ market) happens when about 10% of the total number of units in a building are for sale. So for the first time in ten years, Murano Grande is enjoying a sellers’ market.

 

South Beach – SoFi Condos:
Average 2012 List Price / Sale Price

Miami Beach and South Beach real estat

 

CONDO 2010 2011 2012
Apogee $1,303 $1,779 $2,080
Continuum South $832 $1,081 $1,331
Continuum North $1,009 $1,157 $1,254
ICON South Beach $510 $615 $816
Murano at Portofino $756 $761 $863
Murano Grande $573 $548 $641
Ocean House N/A N/A $1,272
Portofino Tower $567 $590 $741
South Pointe Tower $580 $582 $624
Yacht Club $452 $502 $575

 

I could do a compare and contrast analysis, but I believe the trend is pretty clear. I’m a numbers guy, so I’m going to let the data speak for itself.

What’s interesting about 2012 is the extraordinary number of ultra-luxury, mega real estate sales:

 

Sale Price Date
ICON South Beach PH 2 $20,963,054 12/31/2012
Apogee #1504 $10,500,000 12/27/2012
Continuum North PH 2 $11,152,500 12/27/2012
Continuum South PH 3 $15,750,000 6/12/2012
Continuum South PH 1 $25,000,000 5/18/2012
Continuum North PH 1 $16,200,000 2/17/2012

 

Miami Beach Condo Sales Volume Skyrockets

  • 2012 – $513,282,638
  • 2011 – $333,517,200
  • 2010 – $231,130,331
  • 2009 – $215,988,310
  • 2008 – $243,668,138

Inventory is at an all-time low, and buyers are just hovering. It’s unnerving, actually. Miami Beach has already had a few huge, record-breaking sales in 2013. I will cover those in my next post.

Related Reading:

The Quick-Change Artist [The New York Times]

Stratosphere: 2012 Miami Beach Waterfront Real Estate Sales Soar to Heights Unseen-UPDATED [SBCB]

Miami Beach Real Estate: 2011 South Beach-South of Fifth Condo Market Index [SBCB]