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:
North Bay Road (lower, middle, upper)
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
# OF SALES
AVG PRICE PER HOME
# OF LOT SALES
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
The Ever-Increasing, Ferocious Desire for LAND
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.
In off-market sale, 420 W. Rivo Alto Drive Sells for Whopping $15,079,600 or $1872 psf.
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.
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.
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 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:
Setai South Beach Villa B
Setai South Beach Villa A
Setai South Beach PH-B
Continuum South PH 3
Setai South Beach #2308
W South Beach #1928
Setai South Beach PH-C
Setai South Beach #2408
Setai South Beach #3108
W South Beach #1828
ICON South Beach PH-2
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.
I really didn’t plan on doing a Q3 stats analysis of Miami Beach luxury waterfront homes, but with such incredible activity, especially in the ultra-high-end ($10M+) range, the stats are so out-of-control good that I just HAD to.
The big story of 2012 is the number of homes and parcels of land that sold in the $10M+ category and the velocity with which they moved. It seems that Miami, and Miami Beach in particular, is taking the wind out of our northern neighbor’s real estate sails: Palm Beach.
At the end of Q3, Miami Beach and Indian Creek Village had 13 sales in excess of $10M. Additionally, there were two transactions in Indian Creek Village that broke Miami-Dade County real estate sales records: 14 Indian Creek sold for $38.4M in March and was topped five months later by 3 Indian Creek at $47M.
Miami Beach & Indian Creek Village Residential Real Estate Sales: $10M+ thru 9/30/2012
# OF SALES
Prior to 2012’s record-breaking sales on Indian Creek Island, the biggest real estate deal in Miami-Dade County was three lots on Star Island that Robert Frost purchased from Leona Helmsley in 2006 for $27M. Helmsley, who was 75 at the time, bought in 1996 those five acres of land on the desirable west side of the island for $13M.
Star Island & Indian Creek Island Steal the Spotlight
The other notable story in Miami Beach luxury real estate is the unprecedented number of sales on Star Island and Indian Creek Island. Through 9/30/2012, there were 12 transactions on Star and Indian Creek islands combined. Prior total activity for these communities:
2011 – 7 sales
2010 – 2 sales
2009 – 3 sales
2008 – 3 sales
Luxury Miami Beach & Indian Creek Village Real Estate Sales thru 9/30/2012
Waterfront Land Sales in Miami Beach & Indian Creek Village for Q3 2012
Insights & Analysis thru Q3 2012
Since I’m wrapping up this post moments before the year-end stats come in, let’s act as if Q4 will be blah (which it won’t be; I’ve seen the numbers, so get ready!). Compare this data to prior years, and draw your own conclusions:
Miami Beach Luxury Waterfront Homes Sales: 2008-2012 (Q3)
# OF SALES
So far, $PSF is up 19% from 2011. We are just about at 2008 pre-crash prices, BUT at double the 2008 activity level (wink, wink).
When I made that statement, I had no idea what was to come. The stats I’m putting out today completely blow everything away — everything ever. Miami Beach luxury real estate has gone to the NEXT LEVEL.
Let’s take a quick look back. When I got into real estate in the mid-90s, a $3-5M transaction was a BIG DEAL. And, even though Star Island, Indian Creek Island (Village, technically) and La Gorce Island have always been prestigious, expensive and the creme de la creme, they’ve never enjoyed the desirability that they do now. As an example, below are the waterfront sales (including lots) for each island from 2007 through 2009:
Nothing exciting. I think the real estate activity on the islands, for as “important” as they are, has been lackluster. Historically, buyers have not been that excited about these enclaves. From 2007 to 2009, all the big Miami Beach real estate sales went to North Bay Road. All the celebrities and CEOs, etc., gave up the prestige and security of these islands for two reasons: 1) They love the open, wide-bay views that North Bay Road offers, and: 2) Location. Star Island is just off the mainland, so if the causeway is backed up… tough. Indian Creek is too far from South Beach and all the action. Same for La Gorce Island.
As a Miami Beach real estate broker for almost 20 years, I think the most interesting time here has been the post-Lehman era. The Lehman financial crisis happened in late 2008. 2009 was our nadir in terms of real estate values. Prior to that, even during the so-called “boom,” we were used to one big sale per year, and that sale was usually in the $15 to $17M range. Things started to change in 2010, when, even though our high sale was “only” $16M at 88 La Gorce Circle, La Gorce Island, the market was swiftly and very quietly ascending to the next level. We had another seven sales that year at, near or just above $10M. That was telling. Our high end was definitely beginning to “percolate.”
It’s been typical “broker-speak” the past five years to say, “We only have so much waterfront land.” That blurb NEVER resonated with clients. They seemed to dismiss it as “broker babble.” After four years of irrefutably steady and impressive numbers, buyers almost feel panicked to purchase. Lots on Star, La Gorce and Indian Creek islands that have been available for YEARS are being snapped up at breakneck speed — and at jaw-dropping prices.
Luxury Miami Beach Real Estate Sales Thru 6/31/2012
Sorry, Bargain Hunters – Prices Are Up Almost 20%
in 2011, the price-per-square-foot for Miami Beach real estate was $769. Now it’s 18.2% higher at $909 PSF. We saw about three years of relatively flat $PSF. Those days are over.
# OF SALES
Miami Beach Luxury Real Estate – The Next Level
It really hit me yesterday when I read that a $23.94M sale was Palm Beach’s “biggest” this year. Being the nudge I am, I contacted the most important person in Palm Beach real estate. He confirmed the $23.94M deal and characterized the “trophy price range north of $20M” as “lackluster.” From what I’m hearing from my Palm Beach sources, there is a $100M+ deal simmering – which would break ALL records.
Real Estate Records Broken on Indian Creek Island
Miami-Dade had its largest sale ever on Indian Creek Island this year at $38.4M. Congrats to Jorge Uribe at ONE Sotheby’s for that one. As reported by every major local news outlet, 3 Indian Creek, Indian Creek Village is pending and awaiting closing. Rumor has it that the sale price is in the high $40M range. Another record waiting to be broken.
The Number and Velocity of “Trophy Sales” is Astounding
In 2011, there were 75 “luxury” waterfront sales in Miami Beach, an increase of 41% from 2010. In 2011, the average waterfront home price in Miami Beach was $4,680,000. For the first half of 2012, we’ve had 45 luxury waterfront sales. The total sales volume of these properties is $270,997,700, which makes the average price of a waterfront home in Miami Beach $6,022,222. Additionally, in the first half of 2012, there were six land sales in Miami Beach. The sales volume for the six deals is $63,150,000. Five of the six land sales this year were either on Star Island or Indian Creek Island. Land sales volume for all of 2011 was $26,435,000.
More, More AND More
Villa Vecchia – 4821 Pine Tree Drive, Miami Beach
Now, let’s chat about some pending sales. This is an interesting story. Villa Vecchia, described as a “historic property,” went under contract last week. Originally listed at $21M in August 2011, and currently priced at $19.8M, Villa Vecchia, which is located at 4821 Pine Tree Drive, was built in 1928 and is the ONLY property in Miami Beach I know of with a formal ballroom; the current owners built it as a “necessity.” The palatial residence has 18,000 +/- int. sq. ft., 13 bedrooms and 12.5 bathrooms. I’ve confirmed through Facebook, of all sources, that the house is definitely under contract for $14.1M. Whoa! That’s a big chop from the $19.8M asking price. [UPDATE] The property just closed TODAY for $13.1M or $727 psf. That’s what I get for trusting Facebook as a source, eeh? I was only $1M off. Thanks Zuckerberg.
Here are the goods: The home has been curiously on and off the market for the last year. When it went pending last week, we brokers got an email notification that it was officially “under contract.” A few hours later, we got another notification that the property was “temporarily” off the market. Hmmmm. I knew there was a story here. According to my sources, the house IS under contract and scheduled to close in about a month. From what I can see, it seems that the broker was relieved of his/her duties of marketing the property. The rest of the story veers into gossip – and I’m not going there. Here’s a slideshow of Villa Vecchia, 4821 Pine Tree Drive:
This Just In: Another Broken Record! Three Contiguous Properties Close on North Bay Road for $19.6M
Ok, so I was just kinda catching my breath and was going to wrap this long, long info-packed post up, when this juicy tidbit was whispered in my ear. Get this: three lots – 4666, 4682 and 4700 North Bay Road – with houses on them and arguably the best views on all of North Bay Road – were sold for $19.6M, which equals $369 PSF for land. This is the highest price ever paid PSF for land, but you gotta pay if you want to play. North Bay Road has long been considered “where the big boys are.”
The buyer, Wayne Boich, who is young as shit and cool as shit, is in the energy business in Ohio. He plans, of course, to knock down all three homes and build quite possibly the most important estate in Miami Beach. The three parcels of land combine to 300 linear feet of prime wide-bay waterfront and 53,130 sq. ft. of land. Currently, his panty-dropper of a penthouse at ICON South Beach is under contract for OVER the asking price of $19M. It’s rumored to be in the nabe of $21M, furnished of course. Closing, according to the MLS, is scheduled for September 1.
As many know, Lil Wayne lives on La Gorce Island. This is BIG Wayne Boich, who once dated the lovely and sophisticated Tara Reid. Judging from his new girl, he took some major steps up. Oh, my god… am I really writing this? It’s Miami Beach, people. This is how we roll. (Ugh, I feel like a Kardashian.)
A little trivia for you: Anita Bryant owned 4682 North Bay Road in 1982. She bought it with her then ex-husband, Bob Green. H/T to the doyenne of the high end, Esther Percal for this tidbit.
Waterfront Land Sales in Miami Beach and Indian Creek Village Thru 6/31/2012
Does not include the above-referenced, three-lot sale on North Bay Road.
So, to bring this baby in for a landing, NEVER has Miami Beach seen this many deals at prices this high – and we have another five months to go. Hmmm.
2012 Miami Beach Property Sales at $10M+
9 Indian Creek $19.2M
2 Indian Creek $14.5M
14 Indian Creek $38.4M
7 Indian Creek $14.8M
29 Star Island Dr. $14.325M
5130 N. Bay Road $10.6M
1758 W. 28th St. $12.3M
2817 Lake Avenue $9.45M
4666, 4682 and 4700 North Bay Road $19.6M*
4821 Pine Tree Drive $14.1M (closed for $13.1M)
3 Indian Creek Drive $47-$50M (est.)
On the last day of her talk show on Oprah Winfrey’s OWN TV network, Rosie O’ Donnell lists her Miami Beach Star Island Estate for $19,500,000
The home located at 43 Star Island Drive, was purchased by O’ Donnell in 1999 for $6,750,000, is just over 11,000 sf and sited on a 48,266 lot with 203 linear foot of southeast facing waterfront. The home has two separate private guesthouses and has been upgraded from when she originally purchased the property in 1999. No pics yet.
There has been a good amount of activity on Star Island in the last 6 months. Two lots just sold for over $8M each. A well-publicized bankrupty forced the sale of businessman Claudio Osorio’s home at 15 Star Island Drive for $12,270,000. 15 Star Island was once Vanilla Ice’s (Robert Van Winkle) home. Shoe designer Donald Pliner has his estate on the market for $19,999,999 at 29 Star Island Drive. **Update** Rumor has is that the Pliner house is now under contract.