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.
Miami Beach Waterfront Real Estate Sales Break Records in Every Sector
I’m an information gatherer. I like doing these stats and market performance posts to better my understanding of the business, but in the last couple of years, it’s also been like witnessing something great – history – and getting to tell the story. This is not just a Miami Beach real estate renaissance or boom. It’s a solid upward trend.
Key Miami Beach Real Estate Factors
Location, Location, Location
Supply vs. Demand
I’ve been a real estate agent in Miami Beach for almost 20 years. When authoring this blog, I take special care to let the numbers do the talking, and then I provide the insight and analysis – which the numbers can’t do.
Miami Beach is a special place for all the obvious reasons. But the most important reason real estate-wise is that there is NO MORE Miami Beach land on which to build. I’ve been saying this to buyers and sellers for about the last five years, but now that reality seems to be sinking in – and to this I attribute “The Great Land Grab of 2012.” Miami Beach real estate transactions and prices have hit all-time highs.
Star Island and Indian Creek Village Take the Lead
During the last ten years, Miami Beach has become a luxury destination much like Jackson Hole or Aspen. In the years leading up to 2012, Star Island and Indian Creek Village were always known as the most prestigious neighborhoods in the area, but the true intrinsic worth of these enclaves wasn’t realized monetarily until last year.
The problem was that, for one reason or another, Star Island and Indian Creek Village never dazzled buyers like North Bay Road. For many years, North Bay Road was the most highly sought neighborhood for luxury Miami Beach waterfront real estate, by celebrities and others with the desire for wide-bay views.
Combined Star Island and Indian Creek Village Real Estate Transactions:
# OF SALES
Average Property Price on Star Island and Indian Creek Village:
Indian Creek Village Breaks Highest-Ever Sale Price – Twice
Complete List of 2012 Miami Beach Luxury Waterfront Sales
What strikes me most is the incredible number of waterfront sales in 2012; we broke another record here with 99 transactions. That’s insane! We also smashed a record with our highest sales volume ever: $602,818,300 – that equals $6,089,073 for the average Miami Beach waterfront home. Talk about stratosphere!
Miami Beach Waterfront Sales Statistics 2008-2012
# OF SALES
AVG PRICE PER HOME
# OF LOT SALES
Since 2009, sales volume has increased 256%, and the number of sales has more than doubled. Compared to 2011, sales volume increased 72% last year, and the number of real estate transactions went up by 31% during the same period!
2012 Miami Beach and Indian Creek Land Sales
I have never seen this chart so full in nearly two decades – and with these kinds of numbers! Additionally, there are a number of homes in the “Complete List of Sales” chart above that are slated for demolition and lot splits, or in the case of three parcels on North Bay Road (4666, 4682, 4700), unity of title.
UPDATE 1/12/2013: 2550 Bay Avenue, on Sunset Island II, was sold on 12/31/2012 for $20M. The sale is not yet updated in the tax rolls, but the Warranty Deed from the Miami-Dade County Clerk’s website is available.
The property is comprised of a 46,318-square-foot lot and an approximately 7,000-square-foot house. The new owners plan to demolish the house and build a new one. Ultimately, the buyer paid $432 per square foot for the property, which is an all-time high in terms of price paid per square foot for land (see chart above). The lot is probably one of the ten most important parcels in all of Miami-Dade County.
The buyer, Mr. Markert, is the CEO of Amerisave Mortgage and will be living next to Robert Toll, CEO of Toll Brothers, Inc. Mr. Toll bought his lot(s) in 2008 for $22.5M and paid the second highest price ever for Miami Beach land. The 84,000-square-foot lot is comprised of FIVE lots on the tip of Sunset Island II.
The grand total for homes and land purchased in Miami Beach and Indian Creek Village in 2012 is $699,313,300.
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.)
This post is definitely the hardest of the year to write, if done right. Usually I get this Miami Beach real estate retrospective out on New Year’s Day, but I wasn’t feeling so comfortable with that this year. Why, you ask? Well, I saw something in the number of sales NOT reported in the MLS that was higher than normal, so I decided to dig further. What I found is pretty interesting. I’m glad I waited. This year, I also created graphs to make it easier to compare one Miami Beach waterfront neighborhood to another.
2011 Miami Beach Luxury Waterfront Homes Stats
Since I primarily focus on luxury waterfront sales, these statistics represent all Miami Beach waterfront home sales up to 63rd Street, including Indian Creek Island, La Gorce and Allison Islands, North Bay Road, Sunset Islands I- IV, the Venetian Islands (Belle Island, Rivo Alto Island, Di Lido Island, San Marino Island and San Marco Island). Also included are all the Mid-beach waterfront areas in Miami Beach (Pine Tree Drive, Flamingo Drive, North Meridian Avenue, Prairie and Chase Avenues, and Lakeview Drive and Lakeview Court).
Fun with Numbers
In 2011, there were a whopping 75 waterfront home sales in Miami Beach – up from 53 residential real estate sales in 2010. That’sa 41% increase in sales. There were three killer sales at or above $20M last year. One was 13 Star Island Drive in April for $25.5M. Another was 1736 W. 28th Street (Sunset Island I) for $19.8M, and 4580 North Bay Road closed for $20M. There were some huge condo sales in 2011, too, but I’ll save that for my next post.
Total Miami Beach Luxury Waterfront Home Sales 2008-2011
I always go with my gut. The only advice I EVER give my clients is, “Go with your gut.” I am such a bad salesperson (joke). My gut told me that the Miami Beach real estate market bottomed out in 2009. Here are the stats to prove it:
# OF SALES
2011 Miami Beach Luxury Waterfront Home Sales
You’re Probably Sayin’, “Kevin – Break it Down for Me.”
Ok. The average $PSF for 2011 was $769, up from $710 in 2010. The biggest Miami Beach real estate sale was about $16M in 2009 and 2010. To reiterate, we had three sales at or above $20M in 2011.
The Venetian Islands kicked butt and took names last year, racking up 25 sales – compared to 13 sales in 2010. The average $PSF for the Venetian Islands in 2011 was $729, up from $617 in 2010, which is an increase of about 15%.
There’s an amazing new listing on Di Lido Island at 34 W. Dilido Drive for $11.9M. This is for the buyer who wants the very best of the best, including expansive downtown Miami views from every room of this Venetian Island masterpiece.
North Bay Road
North Bay Road has always been a preferred choice for Miami Beach luxury living because of its unobstructed wide-bay views, especially on middle and upper North Bay Road. Many celebs and CEOs who initially gravitated to gated islands for privacy and security opt for North Bay Road now because of the breathtaking views. There were 11 Miami Beach real estate sales on this street last year – the same number of sales as in 2010. The average $PSF for North Bay Road in 2011 was $836, which is down from 2010’s $862. There was one big sale at 4580 North Bay Road for $20M, which included a 23,871 SF parcel of land at the neighboring 4570 address.
Palm and Hibiscus Islands
There were 11 real estate sales on Palm and Hibiscus Islands in 2011 and 11 sales in 2010. Not much stands out, except for 94 Palm Avenue, which sold for $14.2M last July.
In 2010, there were only two sales on all four islands. There was much more activity in 2011, with eight waterfront sales, including one of the largest Miami Beach real estate transactions of the year – $19.8M. The average $PSF for 2011 was $870. The only other point of interest about the Sunset Islands last year was that, upon Elizabeth Taylor’s death, it was announced that she had some sort of relationship with the man who once owned the home at 2555 Lake Avenue on Sunset Island II. The house was reported to be for sale at $13.9M, but was never officially on the market. It did, however, rent for $50k/month. Meh.
Flamingo and Pine Tree Drives
These streets run parallel to the Indian Creek Waterway on the east side of the island, which overlooks Collins Avenue. In the early days, the most important homes were built between the 40th and 50th blocks of Pine Tree Drive. Before the large hotels went up, these estates enjoyed oceanfront views and breezes. There is a stellar deal at 5869 Pine Tree Drive which was just reduced. Old-world mansion. Good buy.
This neighborhood consists of North Meridian Avenue, Prairie Avenue, Chase Avenue, Lakeview Drive and Lakeview Court. There were four sales in Mid Miami Beach in 2011. The average $PSF was $295.
La Gorce Island
La Gorce Island is one of the most prestigious neighborhoods in Miami Beach. It is known for its impeccable landscaping and security, not to mention its VERY expensive real estate. Many celebs live or have lived there, including Billy Joel and Cher (she’s lived everywhere). La Gorce Island is located at the northern end of North Bay Road and has approximately 95 homes, 33 of which are waterfront properties.
In June 2010, 88 La Gorce Circle sold for $16M to a German businessman and was the highest sale in Miami-Dade County for that year.
There were two waterfront real estate transactions in 2011: 68 La Gorce Circle, which sold for $6.5M, and 94 La Gorce Circle, which sold to rapper Lil Wayne for $11.6M. Average $PSF: $909.
There was one sale on Allison Island in 2011. 6475 Allison Road sold for $2.45M, with a $PSF of $491.
Indian Creek Island
Considered one of the most secure and exclusive places to live, and claiming to be “America’s most exclusive community,” Indian Creek Village has its own police force. It also has the only 24/7 armed boat patrol around the island and is often the only waterborne police force available on Biscayne Bay. Many CEOs, industry titans, philanthropists and a supermodel or two call Indian Creek Island home. There was one sale on the island last year – 18 Indian Creek Drive – which went for $14M and $1,923 PSF. One of the most expensive Miami-Dade County homes for sale, 3 Indian Creek Drive, is currently on the market for $60M.
Retired tennis player Anna Kournikova has sold her Sunset Island III home in Miami Beach. The 6,630 SF Mediterranean estate was built in 2000 and has seven bedrooms and eight bathrooms.
Originally listed in May 2011 for $9.4M, it closed on January 26th for $7.425M or $1,120 PSF, which is a 21% reduction in price. Ouch. Her luxury property at 2345 Lake Avenue was on the market for 231 days; the average number of days on the market for a Sunset Island home in 2011 was 116.
In 2011, there were eight sales on the Sunset Islands for an average of $870 PSF and a median PPSF of $833.