I'd like to highlight the last month's closed sales of luxury waterfront condominiums in the South of Fifth Street area of Miami Beach.   Specifically, I'd like to point out and compare the gap (either premium or discount) in closed sales prices from the Miami-Dade tax assessed values of 2009.  The Miami-Dade Tax Assessor's office has made a significant effort in the past year to revise the latest tax market values with the ACTUAL reduced property values of the past few years.  Therefore, I'd like to compare the latest closed sales at The Continuum South Beach, Apogee South Beach, The Murano at Portofino, Murano Grande, and Bentley Bay to compare the actual sales from the tax assessed values.  All of the condomiums highlighted below are premier waterfront units with spectacular water views, and generally among the most desireable lines in the respective waterfront buildings in South Beach's South of Fifth area:

Apogee #604 - 6/18/10  Sales Price: $5,800,000 vs. Tax Assessed Value: $3,889,000 
(Apogee Sales Price Premium +49%)
Continuum North Tower #2701 - 6/18/10  Sales Price: $3,500,000 vs. Tax Assessed Value: $2,072,000 
(Continuum South Beach Sales Price Premium +69%)
Continuum North Tower #905 - 6/30/10  Sales Price: $1,200,000 vs. Tax Assessed Value: $733,000 
(ContinuumMiami Beach Sales Price Premium +64%)
Continuum North Tower #2902 - 6/30/10  Sales Price: $3,040,000 vs. Tax Assessed Value: $2,113,000 
(Continuum Sales Price Premium +44%)
Murano at Portofino #3102 - 6/3/10  Sales Price: $1,925,000 vs. Tax Assessed Value: $1,902,000 
(Murano at Portofino Sales Price Premium +1%)
Murano Grande #2601 - 6/23/10  Sales Price: $2,500,000 vs. Tax Assessed Value: $2,123,000 
(Murano Grande Sales Price Premium +18%)
Icon South Beach #1901 - 7/1/10 Sales Price: $1,490,000 vs. Tax Assessed Value: $1,091,000 
(Icon Miami Beach Sales Price Premium +37%)
Bentley Bay #1201 - 5/28/10  Sales Price: $750,000 vs. Tax Assessed Value: $863,000 
(Bentley Bay Sales Price Discount -13%)

It should be noted that for the newest South of Fifth buildings (Apogee and Continuum North Tower specifically), the Tax Assessed values tend to be low.  The premium prices being paid at both Continuum North Tower and Apogee indicate that these condo buildings are also among the most sought-after and highly desireable ultra-luxury properties.  The biggest price discount is most notably at the Bentley Bay, primarily due to this condo building's high maintenance fees and owner delinquency rates.

Premium waterfront properties (whether condos or single family homes) that are priced RIGHT continue to have strong buyer demand.  For waterfront condos in the South of Fifth area, we continue to see significant buyer demand- most especially from USA Northeast, South American, and select European buyers (most especially East European countries).

The national and international financial headlines have taken a markedly negative tone lately- with widespread reports of a slowdown in the overall economic recovery and especially the housing market.  However, for PREMIER "A" location waterfront properties, such as Miami Beach waterfront condominiums and homes, the story is perceptibly different. 

I have personally witnessed and worked in putting three deals together in the past month.  Due to the ongoing activity of international and cash buyers, Miami Beach's real estate market has been insulated from the national drop-off in sales of the past few months.  The vast majority of my clients are not eligible for a tax credit, so their interest in purchasing real estate didn't taper off after the benefit expired at the end of April.  The national drop-off in demand generally comes from the lower-end price spectrum buyers who rushed to get in on the tax credit deal.  In the two months since the tax credit expired, pending sales in Miami-Dade and Broward Counties have fallen 2.6 percent, according to the Realtor Association of Greater Miami and the Beaches. 

However, what I'm seeing and personally experiencing are that financially strong international buyers keep coming into the Miami Beach marketplace.  They're especially attracted to the South Beach waterfront real estate market due to the substantial price reductions that we've seen from the market high's of 2006.  The inventory of significantly PRICE REDUCED waterfront condos and homes in areas such as South of Fifth Street in South Beach, Palm Island and Hibiscus Island, the Venetian Island chain, Sunset Islands, and even Star Island is extremely limited.  The most important criteria to keep in mind for future pricing trends is INVENTORY- in South Beach most especially, the inventory levels for waterfront properties continues to DECLINE.

The Latest Ultra-Luxury Waterfront Example of This Trend:

Address:  55 Palm Avenue, Miami Beach, FL 33139

This unique and impecabbly restored Spanish Colonial Palm Island Estate has over 12,000 SF of interior space, with over 100 linear feet of waterfront on Biscayne Bay.   Featuring 12 foot Cathedral ceilings, Bulthaup kitchen, an interior courtyard, incredible backyard with Gazebo & pool.  Incredible Views of the Intracoastal and the MB skyline plus much more. 

Sold Price: $11,900,000 (498 Days on Market)
Original “For Sale” Price : 15,500,000 (1/2009)
Bedrooms: 8
Bathrooms: 11
Interior S.F.: 12,184 ($976/SF)
Total Land S.F.: 30,000 ($396/SF)
Closed Date: June 16, 2010
Reduction in Sales Price (from Asking): 23%

For those who would like to read more on the latest sales trends:

Read more: http://www.miamiherald.com/2010/07/01/1711497/home-sales-in-s-fla-buck-trend.html#ixzz0sWswLfB7

Miami Beach, and most especially South Beach's South of Fifth neighborhood, has become one of the most sought-after places to live in the world.  Recognizing this, the city of Miami Beach planned a multi-million dollar renovation of South Pointe Park, which was completed in 2009.  This extensive renovation included a completely new landscape with a variety of vegetation, Palm Trees, walkways, a multicolored nighttime light display along Government Cut, underground water fountains, the creation of elevated sand dunes, party facilities, and even a children's playground!  Additionally, a new Pier was constructed where you can walk out several hundred feet to truly experience the beauty of the Atlantic Ocean. 

South Pointe Park is surrounded by the several luxury condominium buildings - The Continuum South Beach, Apogee, The Portofino Tower, The South Pointe Tower, and The Murano at Portofino.  These residents can often be spotted taking advantage of the Park's restored beauty and vibrant atmosphere.  After an 18 month period of extensive renovations, South Pointe Park reopened in 2009 and has turned into a local gathering spot, being a great place to socialize and get to know the local "South of Fifth" community.

Top Ten Things to do in South Pointe Park:

• 1.   Jog or walk through the many trails and paths- especially at night to see the multicolored light show along the Intracoastal Waterway 
• 2.   Bring a Yoga Mat and attend one of the free morning and evening yoga classes sponsored by various local fitness centers
• 3.   Watch incredible sunrises and sunsets from atop "South Pointe Hill" (located on East side)
• 4.   SOCIALIZE with the many locals who bring their dogs to the Park for morning and evening walks.  A little known fact is that many locals organize regular get-togethers for other dog owners
• 5.   Watch the amazing sight of cruise ships leaving the Port of Miami around 5pm Friday - Sunday (especially in High Season)
• 6.   Take a day trip to the Beach, the park has several beach access paths on the Eastern Side
• 7.   Bring your kids, nieces, nephews, and any other young adult to play in the water fountains next to Government Cut
• 8.   Go to Smith & Wollensky steakhouse INSIDE the Park- Tip: sit on the second floor for an amazing view of Fisher Island, the Ocean, and the downtown Miami skyline
• 9.   Enjoy the party facilities located on the ground floor- these were built by the city as part of the recent renovations to the entire park
• 10. Celebrity watch!  Recently, I spotted Gloria Estefan, Rosie O'Donnell and their families enjoying a spectacular sunset

Despite the recent financial turbulance in Europe, we're continuing to see strong buyer demand especially from Eastern & Northern European countries.  For example, at The Bentley Bay- A two story Penthouse with private rooftop pool sold at a private auction held late last year (part of a three unit sale).  Despite the Bentley Bay's troubled history and high maintenance fees (currently at $1.19/SF), this is a boutique entry-level luxury waterfront condominium located just North of Miami Beach's "South of Fifth" Neighborhood.  The Bentley Bay features spectacular Bayfront and Atlantic Ocean views, with views directly overlooking Star Island and the Downtown Miami skyline.  A Finnish buyer acquired Bentley Bay condominiums #601, #701 and Penthouse 01 for just under $3,000,000 ($345 per square foot of living space) in a private auction sale last year.  I find it especially interesting that this is a POSITIVE cash flow investment due to the significant rental income that the Bentley Bay commands- while the overall luxury condominium market in Miami Beach continues a steady rebound from the lows witnessed last year.

Also, most recently ANOTHER Finnish buyer acquired one of the most luxurious Penthouses at the Setai South Beach for $15,000,000 ($2,416 per square foot of living space) last week. It should be noted that this Penthouse was on the market since 2006, significantly reduced from $34M earlier this year.  The asking price was $19.9M.  This 4bed/4bath Penthouse also has a private rooftop pool and panoramic views of the Ocean, the City of Miami Beach and the Downtown Miami skyline.

See the Luxury Condos at the Setai South Beach For Sale

Icon South Beach paired developer Jorge Perez' Related Group with the contemporary design genius of Philippe Starck, and brought innovative concepts where the original owners were able to choose from four different interior design packages. These decorpackages included options such as flooring, lighting, closet systems, countertops, custom lighting, window treatments, and other design amenities in individual condos.  The Icon South Beach condominium was conceived as a contemporary follow up to The Murano Grande.  A unique luxury building- with it's own design, architectural style, and amenities-  located at 450 Alton Road, just South of Fifth Street. 

Located North of the Murano Grande, Icon Miami Beach consists of two towers with incredible views of Downtown Miami, the city of Miami Beach, the Atlantic Ocean and Biscayne Bay. The condoniminium building consists of One, two and three bedroom floorplans, all of which are available all with floor-to-ceiling windows and sliding glass doors leading to oversized terraces.  Featuring the contemporary and minimalist decor of Philippe Starck, Icon South Beach features two pools, one of the largest private fitness centers in all of Miami Beach, a private library, and many other amenities such as private massage rooms, and private his and her locker rooms.  Located in the prestigious South of Fifth Street neighborhood, adjacent to the Miami Beach marina and the recently completed Fifth and Alton Shopping Center. This is one of the most spectacular locations and one ofSouth Beach's hottest addresses.  Residents are just five minutes away from the Beach, South Pointe Park, and even Publix supermarket!

This is by far one of the most popular buildings in all of Miami Beach, especially with the New York and East Coast"transplants". Icon Miami Beach tends to be particularly favored by the upwardly mobile and highly successful "Gen X" and "Gen Y" hip crowd that enjoys the many social benefits that this contemporary condo buildings offers its residents.  The original vision of "Where you live is who you are", as conceived by Philippe Starck, is definitely reflected in Icon's younger residents today. 

Top 10 Reasons why Icon South Beach is one of the most popular and "Hip" Miami Beach luxury condo buildings:

1.   A strong social environment, with a beautiful bar and poolside food and beverage services.
2.   Top-tier amenities- including a private lap pool, beautiful infinity pool deck, and a contemporary and  oversized fitness center.
3.   Incredible Views of downtown Miami, Biscayne Bay, Fisher Island, Star Island, and the city of Miami Beach.
4.   Location- South of Fifth Street yet right next to the Miami Beach marina and the Fifth & Alton Shopping Center.
5.   Amazing kitchens- Featuring Miele Appliances, high end cabinetry, and large granite countertops in every condominium.
6.   Hurricane Impact Windows throughout the entire property.  This one feature puts this condo building one notch above all others built prior to the passage of the stricter construction codes of 2001.
7.   The separation of traffic among two towers- with elevators opening to semi-private foyers (in most cases).
8.  Financial Stability- There have been short sales in the building in the past year, yet the condo association is well managed and has reduced delinquency rates to under 5% and has strong reserves.
9.  Active Social Committees- The Board of Directors and management organize semi-regular social functions aimed at creating a sense of community among full and part-time residents.
10. Large Terraces- Every two and three bedroom condominium in the building has surprisingly large terraces, with all condos facing the Bay having extra large wrap around balconies.

This week, I had the opportunity to view the relaunch of the Terra Beachside project- located at 60th and Collins Avenue in the mid-beach area of Miami Beach (also known as Millionaires' row).  This project had been sitting idle for over a year.  It was previously considered hard to sell due to the development's unique location (between the north and south bound lanes of Collins Avenue). 

At over $500/SF, which was the initial project pricing back in 2005, I could not recommend Terra Beachside to clients. However, last year the debt on the property was purchased by a New York Group, which is in the process of finishing the construction with much attention to detail, and most importantly, a drastic price reduction.  Today, we are able to offer our qualified buyers the opportunity to purchase one, two, and three bedroom townhome style villas for just above $200 per square foot.  This is an extraordinary value - since the kitchen and bathroom finishes rival many of the highest end buildings in South Beach (such as The Continuum, Icon South Beach, Murano at Portofino, Apogee, etc.). 

All Kithcens feature large open spaces which are bright and ideal for entertaining, with Miele appliances, stainless steel backsplashes, high-end cabinetry, and other luxury amenities.  Also, the floorplans are spacious, well proportioned, and feature very high ceilings.  For anyone looking to purchase a luxury property right NEXT TO the Ocean for a bargain price, I strongly recommend setting up an appointment with us to see this unique development.

Terra Beachside Property Features:

• - 400 foot long atrium with translucent canopy
• - Zen-like gardens and water features within the atrium
• - High tech electronic security and surveillance
• - 24hour Security
• - Secured underground parking garage
• - Lifestyle Center
• - Media Room
• - Fitness Center
• - 80 foot long curving lap pool & Jacuzzi
• - Wireless internet throughout the property
• - Beach Access (across the street)

All residences feature 18 foot ceiling height in the living rooms and come appointed with high end European finishes in the kitchen and bathrooms. One of the building’s highlights is a Zen-influenced translucent atrium that spans the entire length of the property. A three story Lifestyle Center is a focal point of the property with a curving lap pool, Jacuzzi, Fitness Center, and Media Room.

The project offers one- to three-bedroom residences ranging in size from 1,095 to 3,495 square feet and priced
from the mid $200,000s to more than $600,000.  Terra Beachside’s innovative architecture includes a Zen-like atmosphere with a translucent, 400-foot atrium spanning the entire length of the property.  Beneath the atrium, Terra Beachside’s six floors overlook a courtyard of gardens and water features. A three-story, cone-shaped lifestyle center, four unique floor plans, rooftop terraces, ground-floor backyards and a collection of inviting features and amenities.