Originally listed for $27M in April of 2010, this 5,803 sf residence was owned by Netscape Founder Jim Clark.  Clark originally purchased the unit in 2004 in “decorator ready” condition (raw) for $9,000,000.  The Penthouse has 4 bedroom and 4 baths.  The buyer is not a celebrity and said to be a private businessperson

Two records were shattered not only in South Florida but all the way up to New York City.  To my knowledge, there has not been a single condo unit South of New York City that has traded for over $16,500,000 ($2300 psf) which was in Apogee South Beach ‘PH C’ ; additionally, I’m certain that no unit ever has obtained in excess of $3700 psf.

Setai PH ‘A’ sits atop of the 40-story world-famous Setai Resort known for its luxury and celebrity clientele.  The Setai South Beach is serviced by Singapore-based, five star hotel management company GHM Hotels.  There is also a Setai outpost in New York City.

More pictures of the Record Breaking Miami Beach Real Estate Sale at Setai South Beach

The last PH that sold in Setai South Beach was a lower PH, which sold in 2010 for $15M.  There has been intense activity in the ultra-high end homes and condos here in Miami Beach this year.  Apogee PH ‘A’ sold for what I believe was an unremarkable number of $11.5M, earlier in the year.  So far this year there have been four properties that have sold at or about $20M in Miami Beach:

• 1736 W. 28 -Sold for $19.8M in July*
• 4570 & 4580 North Bay Road- Sold for $20 in September*
• 13 Star Island Drive- Sold for $25.5M in April
• 101 20th Street PH ‘A’ -Sold for $21.5M in December*

*denotes ONE Sotheby’s International Realty’s involvement in sale

Related Reading:

• Miami’s Million Dollar Real Estate Boom [Florida Trend]
• The New Global City [WSJ]
• Condo Inventory Detailed in New Report [Miami Herald]

I knew this was a really good year, but it wasn’t until I started to pull the stats that I realized HOW good a year it’s been – and continues to be.  We regularly track nine condos in South Beach’s South of Fifth (SoFi) neighborhood for a few reasons:

• Location
• Types of buildings
• Buyer profile

These to me are the most important factors for really gauging the luxury condo market here in Miami Beach.

South Beach-South of Fifth Condos We Track

• Apogee South Beach
• Continuum South Tower
• Continuum North Tower
• ICON South Beach
• Murano at Portofino
• Murano Grande
• Portofino Tower
• South Pointe Tower
• Yacht Club at Portofino

“I Have a Friend, and He Told Me…”

I’ve had many (oodles) clients during the last few years who wanted “deals.”  Of course, because I do these stats regularly, I know the numbers in my sleep.  (For the record, I’ve encouraged them ALL to pull the trigger.)  I’ve had to explain, ad nauseam, that Miami proper is NOT Miami Beach/South Beach.  I would liken Miami proper to Los Angeles and the Miami Beach/South Beach luxury condo market to, say, Beverly Hills.

You Want a “Deal?” It May Be Too Late.

Some bought, some didn’t.  It was ALWAYS their choice.  I must admit, I do get a certain sense of satisfaction knowing that my clients are making smart moves.

Okay… on to the stats.

Number of Miami Beach/South Beach Condos Sold

• 2008: 153
• 2009: 129
• 2010: 149
• 2011: 128 thru June 30

A few notes on the graph above.  The Apogee Penthouse closed in Q2 for $11.5M.  I thought it was a very unremarkable price for the property, but I’ll leave it at that.  Apogee South Beach tends to sell in waves.  One wave was May-July of 2010.  The last wave started in March 2011.  The current all-time high PPSF sold is Apogee unit #1404 at $1,769.  I’m particularly proud of this because #1404 was my listing.  The penthouse sold for $1,678/SF.  Ahem.

Continuum South has really impressed this year with 17 sales, and unit #3603/04 traded for $10.576M for a PPSF of $1,643!

Well, it’s clear that we are on track to get back to pre-2008 numbers.  Madoff and that whole economic “bizness” affected SoFi, and Miami Beach luxury real estate in general, more than that “other” stuff (sub-prime loans, jobs losses, etc.).

The Miami Beach/South Beach real estate market is a cash market.  There were a few peeps who had to do a short sale or foreclosure, but those deals were the exception, not the rule.  I would venture to guess that 80% of the 2,000+ units in this index were purchased with cash. (I’m so not doing THAT research.)

Most Expensive Condo for Sale in Miami Beach

• 50 S. Pointe Drive, PH 1, South Beach-South of Fifth (Continuum North)

Average Days on Market [DOM]

2008: 148

2009: 188

2010: 193

2011: 161 thru June 30th

Wow. Wow. Wow.  A market is considered “normal” when approximately 10% of its total inventory is available for sale at any given time.  It is definitely a sellers’ market.  Continuum North has fairly substantial inventory available because the developer held back and dumped about 40 units on the market at one time.  Although it seems like there are plenty of units left in this condo — the oceanside of the building is basically sold out.  Now, let’s take a look at available units in the rest of the South of Fifth buildings:  all hover around 5% of inventory.  That’s nothing.

Apogee is clearly the most expensive condominium in South Florida on a PPSF basis.  In six months, the average PPSF rose from $1,303 to $1,659.  All buildings are enjoying a nice increase in PPSF from 2010′s numbers.  I’ll end my post with one little nugget: low inventory and high demand only mean ONE thing.  Draw your own conclusions.

Related Reading:

• Nearly Three Years Later, Apogee South Beach Penthouse Sells for About Half Its Original List Price
• Miami Beach Real Estate: 2010 Condo Market Index
• Miami Beach Real Estate: A Six-Year Retrospective of the Miami Beach Condo Market
• Miami Beach Real Estate Statistics:  Distressed Properties & Diana Olick

Search Miami Beach Condos Here

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Wow.  It is insane out there.  Our “season” usually tapers off right around June. This post won’t reveal such shocking stats, but I will clue you in on what is happening right now. Deals that will show up in Q3 will really surprise a few.

Basically, the average PPSF is still hovering in the low $700s, which is what I expect will continue for the next year or so.  What did happen this year was the first residential deal to break $20M since 2008 – 13 Star Island Drive sold for $25.5M.

This transaction flirts with Miami Beach’s all-time highest recorded sale of $27M. Back in Oct. 2008, Robert Toll bought five lots on the tip of Sunset Island II for $22.5M.

Luxury Miami Beach Real Estate Sales to Date

As you can see, we’ve already basically surpassed 2009.  It’s clear that 2009 was the year to buy.  Current inventory is at an all-time low, especially at the ultra high-end of the market.

Most Expensive Homes in Miami Beach

• 3 Indian Creek Drive, Indian Creek Village: New Construction – $60M
• 5800 N. Bay Road, Miami Beach: JLo’s old home during the “Bennifer” days – $34.5M

Looking at the Miami Beach Real Estate Sales of 2011

The big story last year was North Bay Road. There were four large sales ($9M+), which were mainly due to those ball players buying two homes there.

So Far, It’s All About the Venetian Islands

The Venetian Islands have ruled Miami Beach real estate in 2011, with 42% (or 15) of all waterfront sales occurring there. Wow. The Islands racked up just 13 sales in all of 2010. The activity this year is pretty surprising considering all of the construction on the Venetians.  But, this is also the year that sellers are finally listening to what the market is saying and pricing their properties lower accordingly.

Sunset Islands

Also of note are the Sunset Islands. There were a couple of “knock down” sales last year, and three transactions in 2009. Nothing to write home about.  So far this year, two homes have closed, and there are another three homes pending; two of those are VERY prominent homes.

Star Island

There’s been intense activity on Star Island this year.  As you probably know, local attorney Roy Black purchased 45 Star Island.  Though the media went into overdrive, this is the first house on the southeast side of the island, and it is closest to the causeway. 13 Star sold for a near-record $25.5M in 90 short days. 35 & 36 Star Island Drive sold for $12.25M in February. That parcel is comprised of two 40,000 SF lots, and the seller was Philip Levine.

Donald Pliner listed his home this year at 29 Star Island Drive for $24M.  The Moroccan-style estate has since been reduced to $21M.

Big Miami Beach Real Estate Deals Ahead

It seems that our luxe neighbor to the north, Palm Beach, has had many sales in excess of $20M this year.  I know of two homes that will close in the relatively near future and add to these numbers.  One is a very prominent home with a very prominent owner, and the other pending deal may very well break the all-time highest sale record by closing for more than $27M. Additionally, a plot of land on tony Indian Creek Island is said to be under contract for $15M.

Finally, embattled businessman Claudio Osorio listed his home at 15 Star Island Drive for $14.9M in April.  The estate was only on the market for two weeks before going under contract.  The home was once owned by, ahem, Vanilla Ice.

That’s the whole scoop.

Happy 4th.  I hope you’re happy knowing that I’m sitting in front of a computer writing and calculating and verifying.  My job is real glamourous, eeh?

Related Reading:

• Miami Beach Luxury Real Estate: 2010 Waterfront Home Stats [SBCB]
• Luxury is Back [Pursuitist]
• Miami Beach Real Estate: Sunset Island Lots Sell for Near Record $22.5M UPDATED [SBCB]
• Miami Beach Luxury Real Estate: Waterfront Homes PPSF Falls 25% Y-O-Y [SBCB]
• Top 5 Miami Beach Trophy Properties For Sale [SBCB]

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I could start out this post with “A Top Producer’s Perspective” or something, well, rather dopey like that—but since I’m a numbers guy—I’ll let them speak for themselves.  I have lots of analysis (easy to understand) and anecdotal info which will make it very easy to gauge what is going on with Miami Beach luxury waterfront real estate.

Miami Beach Waterfront Home Sales for 2010

Compiling these reports takes time.  It takes me a good ten hours to retrieve and research the data, look for non-MLS sales–verify that they were “arms-length” transactions, etc.  FYI, I DO NOT report sales that I know were not “arms-length” transactions.  An example of a non-arms-length transaction would be where a seller “short sells” the house to himself or herself, which most likely involves a corporation, usually one in Delaware, but is still living in the house.  That’s the new mortgage fraud.  I know of about three to four homes on Miami Beach that have done that, so those sales ARE NOT reflected in my stats.  Anyway, a good, smart agent would know that.  Wink, wink.

Moving right along, the stats reflect Miami Beach waterfront home sales up to 63rd Street, including Indian Creek Island, La Gorce and Allison Islands, North Bay Road, Sunset Islands 1-4, Star, Palm and Hibiscus Islands, Venetian Islands, and all the waterfront areas in the mid-beach neighborhood (Pinetree Drive, Flamingo Drive, N. Meridian, Prairie & Chase Avenues, and Lakeview Drive & Court.

In 2010, there were 51 waterfront sales in Miami Beach, up from 42 sales in 2009. The average Miami Beach waterfront home sold for $710/square foot, up from $702 in 2009.  The high sale was $16M for 88 La Gorce Circle; the high sale in 2009 was Shaq’s, which sold for $16M as well.  I would put the chart in for 2009, but except for the number of sales, it looks, more or less, like 2010.  Now, the real story was the drop from 2008 to 2009.

A relatively blah year–though some brokers are saying otherwise.  Here are some interesting nuggets excised from the data:

Sunset Islands

There were only two(!) waterfront sales on the Sunset Islands in 2010.  Both sales were on SS #4 and basically sold for land value.  The Sunset Islands, especially Sunset I & II, are one of the most desirable neighborhoods in Miami Beach.

Related Sunset Island Reading

• Miami Beach Real Estate:  Sunset Island Lots Sell for Near Record $22.5M
• Sunset Islands Waterfront Homes for Sale
• Sunset Islands Non-Waterfront Homes for Sale

North Bay Road

North Bay Road continued to shine as the BMOC.  Eleven waterfronts sold this year and many prominent pieces of real estate traded to equally prominent people. (Bosh, Wade, A-Rod, et al.)  The total volume for homes sold in 2010 was a whopping $67,462,000.  The average $/psf for North Bay Road was $862.19 for 2010.  5800 North Bay Road, an estate once owned by Jennifer Lopez during the “Bennifer” days, was listed for $29M.

Related North Bay Road Reading

• Miami Beach Celeb Real Estate: Seikaly and Piazza Sell
• Miami Beach Real Estate: Has A-Rod Finally Stepped Up? $7.4M Acre of Land on Celeb-Studded N. Bay Road Sells
• Miami Beach “Castle” Sells to MTV Exec Bill Roedy for $4.42M
• North Bay Road Waterfront Homes for Sale
• North Bay Road Non-Waterfront Homes for Sale

Venetian Islands

All the chatter this year went to North Bay Road, but the Venetian Islands quietly racked up 13 waterfront sales.  The average $/psf was $616.83, down from $671 in 2009, and the total volume of sales was $28,272,000.

Related Venetian Islands Reading

• Miami Beach Real Estate:  Waterfront Foreclosures and Stuff
• Venetian Islands Waterfront Homes For Sale
• Venetian Islands Non-Waterfront Homes For Sale

La Gorce Island

The highest sale of the year was on La Gorce Island.  88 La Gorce Circle sold for $16M in June.  It was originally listed for $25M.  One of the best buys of the year was 40 La Gorce Circle, which sold for $7.4M.  It is located on the western side of La Gorce Island so it has nice wide bay views.  It was priced at $7.9M and sold in seven days.

Related La Gorce Island Reading

• La Gorce Island Waterfront Homes For Sale
• La Gorce Island Non-Waterfront Homes For Sale

Other Notes

• 11 sales on Palm and Hibiscus Islands.  Average $/psf $702.42
• 7 sales on Pinetree Drive
• 1 sale on Indian Creek Island
• 3 sales in the mid-Miami Beach neighborhood

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Fun with Graphs (Lots and Lots of Them)

After punching up all these graphs, I was a little surprised to see where we’ve been in relationship to where we are now. In this post, I’ll review the inventory of available Miami Beach condos, as well as the average price per square foot (PPSF) and the luxury condo market over $2M.

Six-Year Snapshot of Miami Beach Condo Inventory: All Ranges

The graph above shows that the market peaked in 4/05, when the number of condos for sale was the lowest (911) and the number of condos sold was the highest (249). At that time, there were only 3.7 months of condo inventory available, which represents a strong sellers’ market. A real estate market is considered balanced when six to nine months of inventory is available.

Inventory peaked in 7/07, with almost 4,000 units on the market. The sales low-point was between late 2007 and early 2008, with only 70 units sold in 1/08. Currently, there are 2,751 condos for sale in Miami Beach.

Miami Beach Condos: Months of Inventory

Months of Inventory is used to indicate or assess how long it would take to sell all existing condos on the market, assuming the rate of sales stays constant and no new listings are added. Again, the market is considered balanced when six to nine months of inventory is available. In 1/08, there were 56 months of Miami Beach condo inventory available based on closed sales. Today, we are clearly still in a buyers’ market with 17.1 months of inventory available.

Miami Beach Condos:  Tracking Average Price per Square Foot

This graph is kind of boring. Not much can be gleaned from it in my opinion, but some people love it.  I don’t like it because it represents an average. Miami Beach condo inventory swings from one end of the spectrum to the other.

Say you are interested in buying a condo at Apogee South Beach and want to use this chart as a guide. Waste of time. It includes all condos, all price ranges and distressed sales (short sales and bank-owned real estate).

One interesting nugget of info seems to be that the average PPSF peaked in 4/08 at $679. Weird. Today, the average PPSF is $463, which puts us just about at the 4/05 price level ($464).

Average Price per Square Foot for a Miami Beach Condo:  Excluding Distressed Sales (bank-owned and short sales)

I know these numbers are spot-on because the average PPSF in 4/05 and 4/08 is the same in this chart as it is in the previous chart ($464 and $679 respectively). The effect of distressed sales begins to reveal itself in 1/09 through today. The current average PPSF (w/o non-distressed sales) is $659.  That is almost a $200 PPSF difference.  Moving right along to my favorite niche…

Luxury Miami Beach Condos: Six-Year Retrospective – $2M+

This chart is pretty self-explanatory. Inventory peaked in 1/09 with 228 Miami Beach condos for sale OVER $2,000,000. Currently, there are 162 units on the market at this price point. One note about this graph: Apogee and Continuum North were not built until 2008.

Average Price per Square Foot: Miami Beach Luxury Condos

Interesting to note here that the average PPSF for luxury Miami Beach condos peaked right around the same time as the under $2M condos. The numbers here are up and down, but the average PPSF is currently at $1,138 in the luxury sector. The numbers are elevated because a few high-priced condos at Setai, One Bal Harbour and Fontainebleau II closed in the last month or so.

Miami Beach Luxury Condos: Months of Inventory

Eeeh. Some sharp peaks, but overall it looks as though things are headed in the right direction for the $2M+ condo market.  Currently, there are 24 months of inventory at the high end, and clearly that’s not good, but all the really good, prime units in A+ buildings are sold. I think the luxury condo market bottomed out last summer. Deals, really good ones, on really good apartments, have been had. Those days, my friends, are gone.

Before I wrap this all up, I found one more chart that is really eye-opening to me. Probably the best one of them all:

Miami Beach Distressed Condo Sales Statistics: Under $500k

• 2,751 condos on the market in Miami Beach
• 640 or 23.3% are distressed sales
• 585 of the 640 are under $500k (see chart above)

Well, Kevin, What’s Going to Happen Here?

Since my crystal ball, along with everyone else’s Mercedes, is in the shop…

I think that for Miami Beach, clearly, the worst is over. The market has bifurcated. It’s either you are over or under $500k. Period. But, now more than ever, real estate fundamentals, along with your objectives, should be the things that guide you most as you meander through the real estate landscape. Obviously, the best units in the best buildings in the best locations are no-brainers. If you are looking in the under $500k range, there are still going to be some good buys for the foreseeable future. As you can see in the chart above, the inventory of distressed properties is still coming to market at a fairly steady rate, and I don’t see any signs of that inventory drying up anytime soon.

Related Reading

• Miami Beach Real Estate Statistics:  Distressed Properties & Diana Olick

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I liken Miami Beach to Manhattan or Beverly Hills.  Manhattan real estate operates on its own from the greater New York area, much the same way that Beverly Hills is its own little market inside the greater Los Angeles area.

I service South Beach and Miami Beach; the majority of my clients are NOT from here.  When they read a Case-Shiller report or news report from Diana Olick of CNBC that says X percent of X is X, and prices are falling and foreclosures are everywhere, I’m the one with the task to sort out the mess and misinformation.  Many of my clients have missed out on properties they wanted desperately to buy, but took the info that was produced en masse for the masses and made their decisions on that.

Just the other day, I had a conversation with a client, a very good client, who wanted to buy a unit at the Bath Club in Miami Beach.  It was a year ago today that we put in our offer for $900K.  My client would NOT go up.  The seller would have taken $1.1M.  It sold right after our offer for just over $1.2M.  It came back on the market about a month ago for, get this, $1.8M.  My client looked at me and said, “Kevin, you should have made me buy it!”

What can I do?  I knew it was a steal.  She knew it was a steal.  But when people smell blood, they want more.  The owner was in foreclosure, and conservatively, today, the property is worth about $1.550M.  Can’t beat those numbers with a stick, Diana!

But I digress. Let’s get to the TRUE picture of distressed real estate in Miami Beach (bank-owned and short sales) and show Case, Shiller and Olick a graph or two or three.

Distressed Real Estate in Miami-Dade County

The chart above represents all distressed properties in Miami-Dade County, including Miami Beach.  There are 10,219 homes for sale in a distressed state.  There are more than 1,100 of them selling per month, and about 2,300 properties are being pended per month.

Distressed Real Estate in Miami Beach

Now the true picture is revealed.  In ALL of Miami Beach, there are 700 distressed properties on the market for sale, with about 75 of those being sold per month.  Since our season ends in June, the dip in pended sales makes sense.

Distressed Miami Beach Real Estate over $500,000

If you break it down even further, approximately 100 of the 700 units in Miami Beach that are in a distressed state are
$500,000 and over—that’s like nothing.

Miami Beach Distressed Real Estate

• 3,121 active listings in Miami Beach
• 700 or 22.4 percent are in a distressed state (bank-owned or short sale)
• 600 of those units are under $500k

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Luxury real estate statistics for condos in the SoFi neighborhood of South Beach

It’s very clear that the days on market [DOM] for all the condominiums has increased.  2009: 188; 2008: 148.

Toward the end of 2009, Miami Beach condo sellers started to hear what the market was telling them.  Many reduced prices and real estate sales really picked up toward the end of the year.

SoFi Condos–Some insight

• This was probably the LEAST affected real estate sector of any market in the United States.
• A vast majority of these luxury South Beach condos were purchased cash
• Most of these condos are 3rd, 4th, & 5th homes.
• A very, very small amount of distress sales.  The majority of distress sales/foreclosures were a result of mortgage fraud.

The amount of condos on the market 2009 vs. 2008 has decreased in condominiums.  The general rule of thumb is that “healthy amount” ( approximately 10% of the total number of units in the condo) could be on the market for sale  at a time.

Apogee clearly wins, again.  But Apogee is down about $100 psf, or 7.8%, on average from 2008.  ICON South Beach had the biggest decrease, 27.7%, from 2008.  Portofino Tower had the third largest decrease with a 26.3% drop in $ psf from 2008.  Here are the rest of the results:

Miami Beach Luxury Statistics for South Beach Condos

Check out the nifty little graph below to see how the market has performed over the last three years.   I’d like to say that there was something really interesting to point out–but that’s not the case.  There are some ups and downs, but nothing to raise an eyebrow. Weathering the storm quite well.

South Beach Deals

Continuum North, 50 S. Pointe Drive, #3402, Miami Beach, FL 33139. This condo has three exposures: east, south and west. It priced very, very well at $3.6M.

Continue Browsing Miami Beach Luxury Real Estate Here

Related Reading

• Miami Beach Real Estate:  2008 South Beach Condo Market Index

Let’s Look Back, Shall We

After blogging stats for years now, the benefit to me and my client really becomes apparent. No longer do I have to search for numbers, run sales data, or try to re-interpret the Miami Beach real estate market on the fly for every client. I do it once, and once only.

These posts are great reference points, and as the years come to an end, having the previous year’s numbers to compare and contrast gives great historical insight into how the real estate market is performing and hopefully brings value to my readers.

2009 was a really blah year. I’m glad it’s over. So let’s do this.

Miami Beach Waterfront Home Sales for 2009

The stats below reflect Miami Beach home sales up to 63rd Street, including Indian Creek Island, La Gorce & Allison Islands, North Bay Road, Biscayne Bay Islands (Sunset Islands 1-4; Star, Palm & Hibiscus Islands; Venetian Islands), and all the waterfront areas in the mid-beach neighborhood (Pinetree Drive, Flamingo Drive, N. Meridian Avenue, Prairie Avenue, Chase Avenue, and Lakeview Drive and Court).

In 2009 there were 42 waterfront sales in Miami Beach. The average Miami Beach waterfront home sold for $702/ square foot. The high sale for 2009 was Shaq’s Star Island home which sold in June for $16M, and the low sale was a home in mid-beach for $1M. Coincidentally, the high and low sales in 2008 were just about the same.

Miami Beach Waterfront Sales 2008

Below is the chart for 2008 waterfront homes sales. In 2008 there were 49 sales and the average price of a Miami Beach waterfront home was $934/square foot. Compared to this year’s $702/ square foot, that is a $232/square foot, or 24.8%, drop in one year! In other words, if you own a 7,000 sf waterfront home, in 2008 it was worth $6,538,000- today it would be worth $4,914,000.

North Bay Road Waterfront Homes

Click on graphs for larger image

North Bay Road is a street that runs parallel to Biscayne Bay on the west side of Miami Beach. The waterfront homes range in price from about $3M to around $30M.

Historically, North Bay Road has out-performed other, more exclusive, gated islands like La Gorce Island or Sunset Island I & II. Many celebs ( JLO, Matt Damon, Ricky Martin, Shakira, Bee Gees, Calvin Klein, et al) have given up the gate for the spectacular, expansive views that North Bay Road offers. In 2009 there were a couple of shockingly-low distress sales which brought the average down to $690/ square foot.

• North Bay Road Waterfront Homes For Sale
• North Bay Road Non-Waterfront Homes For Sale

Venetian Islands Waterfront Homes- Belle, Rivo Alto, Di Lido, San Marino, San Marco, Biscayne Island

The Venetian Islands (Belle Island, Rivo Alto Island, Di Lido Island, San Marino Island, San Marco Island, and Biscayne Island) are comprised of six man-made islands in Biscayne Bay that extend from the barrier island of Miami Beach to Miami’s mainland.

In the first half of the year there were only four homes that sold in 2009, compared to fifteen homes sold during the same time period in 2008.  Thanks Bernie.

Venetian Islands Map

• Venetian Islands Waterfront Homes For Sale
• Venetian Islands Non-Waterfront Homes For Sale

Sunset Islands 1-4

The Sunset Islands are four islands connected by canals from north to south.  Sunset Island 1 & 2 are accessed at 29th Street and North Bay Road and Sunset Islands 3 & 4 are accessed from 20th Street and North Bay Road.  The development of the islands began circa 1934 and the area was marketed to Hollywood celebs and high society-types. 

 ”The Sunsets” as the locals call them, have been very popular over the last decade because of their proximity to South Beach.  Lenny Kravitz used to own a home on SS #2.  Enrique Iglesias owns on SS #1.  Local lore had Frank Sinatra and Marilyn Monroe frolicking at a home in “the day.” 

One of the most important homes in Miami, 1736 W. 28th Street, is currently on the market for just under $30M.   Additionally, The Honorable Fred Hochberg, also owns a home on SS #1, 1600 W. 28th Street, which is listed for sale.  The home was published in a design magazine.  Fred?  Tom?   It’s a very, very chic residence.

• Sunset Islands Waterfront Homes For Sale 
• Sunset Islands Non-Waterfront Homes For Sale

Other Highlights

• Zero Sales on La Gorce Island (There was one sale–but technically it was land.)
• Zero Sales on Allison Island
• Two sales on Indian Creek Island: 34 Indian Creek sold in September for $6M, and 22 Indian Creek sold in December for $9M.  Both homes are on 80,000 sf lots. 

Related Reading

• Miami Beach Real Estate:  Lenny Kravitz Lists Home; Prominent Sunset Island Estate Listed for $29,900,750 [SBCB]
• South Florida’s Top Residential Deals of 2009 [TRD]
• Miami Beach Real Estate:  Luxury Waterfront Stats for 3Q 2009 [SBCB]
• George Lindemann Junior Lists Art-Filled Mansion in Miami [The Real Estalker]
• Top 5 Miami Beach Trophy Properties For Sale [SBCB]

Capitulation is Right Around the Corner

Miami Beach condos have been pummeled in the media for years.  Prices have dropped big time, except for the South of Fifth neighborhood.  Inventory is decreasing and number of transactions are up—way up.  Not the same for waterfront Miami Beach homes.

All Real Estate Will Succumb-Sooner or Later

Many luxury homeowners are getting antsy.  Agents have been telling them for years to “hold on, you’re special.”  They wanted to believe, but they are losing hope–and fast. 

Enter 1350 S. Venetian Drive

Located on San Marco Island, one of Miami Beach’s Venetian Islands,  1350 S. Venetian Drive has been on the market since February, 2009.  The waterfront Mediterranean home was built in 2003; has 7991 sf, five bedrooms, seven bathrooms and two half baths.  The home was originally priced just under $7M, and today,  was reduced to $4.985M or $624 psf!  Contact me for a showing.

Related Reading

• Miami Beach Real Estate: Luxury Waterfront Stats for 3Q 2009
• Miami Beach Real Estate: 3QT 2009 Stats for Condos in South of Fifth Neighborhood
• Top 5 Miami Beach Trophy Properties For Sale

Venetian Islands Homes For Sale

• Venetian Island non-waterfront homes
• Venetian Island waterfront homes

Venetian Islands: Whaaa?

What really raised my eyebrow was the lack of sales on the Venetian Islands for the first half of the year.  During the first half of 2008, there were 15 sales on the Venetian Islands, and only four sales for the same time period this year, for a total of nine sales for Q3 2009.

Miami Beach Waterfront Sales Statistics for 1/1/2009-9/30/2009

Blech.  In Q3 there was a spectacularly low sale on North Bay Road.  I would classify this one as the ‘deal of the year.’

Looking forward to Q4 stats expect a few more sales on the Venetian Islands, one more shocker on North Bay Road; and a huge estate on Pinetree Drive that has been on the market for years and years (and mired in innuendo) finally closed last week.

Best Buys for Miami Beach Waterfront Estates

• 4766 North Bay Road, Miami Beach.  $4.4M.  Great lot, great views.  Owner paid $5.7M in 2006
• 303 E. Rivo Alto Drive, Rivo Alto Island, Miami Beach.  $1.990M.  Great buy on a cute little home.  Next waterfront home on the Venetians is $2.485M

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