Miami Beach Real Estate:
Mid-Year Luxury Waterfront Stats

Miami Beach Luxury Real Estate is Back… and in a BIG WAY!

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

Year #Sales Avg $/psf
2008 49 $934
2009 42 $702
2010 53 $725
2011 35 $714 (thru 6/30/2011)

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

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?

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Nearly Three Years Later, Apogee South Beach Penthouse Sells for About Half its Original List Price

SBCB Exclusive

After lingering on the market for almost three years, the Apogee Penthouse in South Beach closed for $11.5M yesterday (April 14). Originally listed for $22M in July 2008, owner Peter Fine paid $15M for the ultra-luxury condo property in February 2008.

The buyer is Yulia Solodova for Apogee 702, LLC.

Fine produced the Tony Award-winning musical In The Heights” and is a prominent New York developer of affordable housing. He also owns a home on Miami Beach’s celebrity-studded North Bay Road, which he purchased from the then-developer of Canyon Ranch Miami Beach, Eric Sheppard.

Apogee South Beach Penthouse

The Apogee Penthouse is comprised of the top two floors of the east corner of the condominium building. It also has a large rooftop “palazzo” with a private pool and summer kitchen.

The Penthouse has 6,853 interior SF and more than 11,000 SF of terrace space. On the inside, that amounts to $1,678/PSF, which is an unremarkable number, considering the real estate involved.Apogee Penthouse Kitchen

The condo has five main bedrooms, a housekeeper’s room, elevator and a 2.5-car, air-conditioned garage.

Apogee South Beach Penthouse

Apogee South Beach Penthouse – The Real Estate

Apogee Penthouse Living Area

The main drawback to the Apogee Penthouse is that the Murano at Portofino tower hovers over the pool area (you can’t tell from this photo.). The pool area is not very private. Ahem.

More Info on the Apogee Penthouse

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Miami Beach Real Estate: 2010 South Beach Condo Market Index

This Miami Beach real estate condo index is comprised of nine luxury waterfront high-rise condos in the chic South of Fifth neighborhood in South Beach:  Apogee South Beach , Continuum North (or 2),  Continuum South( or 1), Portofino Tower, South Pointe Tower, Murano at Portofino, Yacht Club at Portofino, Murano Grande, and ICON South Beach.

Number of condo sales:

  • 2010: 149
  • 2009: 129
  • 2008: 153

Luxury Condo Statistics for Condos in the SoFi Neighborhood of South Beach

Luxury Miami Beach condo statistics

http://farm6.static.flickr.com/5018/5488084498_52f925fd02_z.jpg

Days of Market [DOM] was 193 for the nine condos in the index.  In 2009:  188;  2008:  148.  2010 was a pretty bland year.  The number of sales and $/psf  is pretty stable.

Miami Beach Luxury Condo Statistics for South Beach

I’m going to go out on a limb and rate these condos as “healthy.”  A “normal” market is considered to be approximately 10% of the total number of units in the condo could be on the market for sale at any given time.  Continuum North has higher inventory because the developer put approximately 40 units on the market during 2010.  Currently the developer owns about 30 units which are all rented.  Portofino Tower has been the poor performer for a few reasons:

  • It’s the oldest of the “newer” luxury buildings and a tad dated
  • It is not on the ocean or bay
  • The buyer profile for a SoFi condo wants new and chic.  They are not necessarily looking for “deals”

With all that being said, I think Portofino is the BEST value to be in this expensive neighborhood.  Portofino is known for their excellent floor plans and views.  Financially speaking, the building runs like a top and maintenance is about $.70 PSF (about half of what the other condos in the neighborhood charge) and has never, to my knowledge, had a special assessment.

Apogee, South Beach condo inventory for sale

Ok.  Apogee South Beach continues to be the BMOC with average $/PSF of $1303.  Continuum North comes in 2nd at $1009 PSF.   Here is a quick and dirty of 2009 vs 2010:

Building 2009 2010
Apogee $1249 $1303
Continuum S $839 $832
Continuum N $833 $1009
ICON $523 $510
Murano $817 $756
Murano Grande $516 $573
Portofino $498 $567
S. Pointe Tower $529 $580
Yacht Club $473 $452

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Miami Beach Luxury Real Estate: 2010 Waterfront Home Stats

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

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

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

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

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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Miami Beach Celeb Real Estate: Seikaly and Piazza Sell

Wow.  Ok. Two (former) professional athletes sell their Miami Beach real estate.

Rony Seikaly, a retired basketball player, sold his stunning lower North Bay Road manse to Brightstar CEO, Marcelo Claure.  The approximately 9,300 sf home, built in 2005 and sited on a 26,500 sf lot, was sold to Claure for $11.5M.  The house was not listed with a broker but it was widely known that it could be for sale. Asking price:  $15M.

Rony Seikaly Sells North Bay Road for $11.5M

The deal also included a condo at Murano Grande in South Beach, that Seikaly now owns.  The Murano Grande condo was completely redesigned by a renowned interior design firm.  At one point, Claure was asking $5M; the unit traded for $2.5M.

Mike Piazza Sells Condo at Murano at Portofino in South Beach

In other sports related and real estate news, former baseball great, Mike Piazza, closed on his unit at Murano at Portofino condominium in South Beach.  The unit has been rented for the last year.  The property was listed for $3.8M and closed for $2.88M.  Piazza has been trying to sell the unit ever since he and his wife purchased their home on guard-gated Sunset Island II in 2008 for $10M.

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