Midtown Miami Bulk Buyer Attempts To Resell Condo Units Published on 3/14/2012 11:32:19 PM
Less than six months after purchasing more than 500 residential units in the Midtown Miami mixed-use complex in Greater Downtown Miami in a bulk deal, the new owner is attempting to resell a first batch of 61 condos to individual buyers, according to a new report from CondoVultures.com.
The opening wave of resale condo units are all located in the 29-story Two Midtown tower on East Coast Avenue just south of the Northeast 36th Street, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
In addition to the Two Midtown inventory, the new bulk owner also controls more than 300 condo units in the 32-story Four Midtown tower and an additional 172 rental apartments across the street in the Midblock building that houses many of the popular restaurants in the complex including Sugarcane Raw Bar Grill and Mercadito, according to an analysis of Miami-Dade County records.
It is unclear what impact outside factors - including a newly proposed 164,500-square-foot Walmart retail center to be built to the south on Northeast 29th Street or plans by various developers to put up 10 new condo towers in Greater Downtown Miami - had on the decision to begin resales of the Two Midtown units, industry watchers said.
Midtown Miami - which is situated at the northern edge of Greater Downtown Miami on a former Florida East Coast Railway storage yard located south of Miami’s Design District and east of the city’s Fashion District - made several headlines in the fourth quarter of 2011.
In October 2011, the bulk buyer – Gold Krown Financial with M. Ronald Krongold – paid an undisclosed price for more than 360 condo and 172 apartment units – nearly 60 percent of the total residential product - in the Midtown Miami complex, according to the Miami Herald.
A couple of months later in December 2011, a series of Delaware corporations paid at least $57.2 million for more than 950,000 square feet of developable land in and around the 57-acre Midtown Miami complex located at Northeast 36th Street and Northeast 1st Avenue, according to an analysis of Miami-Dade County records.
The recent transactions have come as the Midtown Miami complex - comprised of residential, big box retail, restaurants, and office space - has evolved into a nightlife alternative for locals to the Brickell Avenue Area neighborhood or even Miami Beach.
For the last three years, the Midtown Miami units that traded in bulk have been operated as rentals as the South Florida real estate market struggled to absorb the overhang of condo inventory that was built during the boom.
Since 2003, developers created nearly 22,250 condo units in a 60-block stretch from the Julia Tuttle Causeway south to the Rickenbacker Causeway, and Interstate 95 east to Biscayne Bay, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide To Miami™.
As of Dec. 31, 2011, the unsold developer inventory in Greater Downtown Miami from the boom has decreased to less than 1,750 units, according to a recent CondoVultures.com report.
Besides the unsold developer inventory in Greater Downtown Miami, there are also more than 915 condos built during the boom currently available for resale and hundreds of units being marketed for resale by bulk buyers that purchased at deep discounts, according to CVR Realty™.
In the Midtown Miami complex, more than 15 condos are available for resale at a median price of more than $300 per square foot as of March 15, 2012, according to data from the Florida Realtors association.
In 2011, buyers purchased more than 35 resale units at a median price of $171 per square foot in the Midtown Miami complex, according to the Florida Realtors data.
Compare this to previous years when buyers purchased nearly 30 Midtown Miami resale units at a median price of $172 per square foot in 2010 and less than five units at a median price of $171 per square foot in 2009, according to the data.
As for the Midtown Miami development sites, it is unclear what the purchaser's plans are going forward.
A developer named Alex Vadia is reportedly operating the ownership entity that controls the Midtown Miami land, according to the South Florida Business Journal.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports to stay informed on the latest market trends and to find out about our various Condo Vultures® Seminars. Looking for a property at a deep discount? Take a peek at the Vultures Database™ or view our Video Library. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database™. Our new books, the Official Condo Buyers Guide to Miami™, Official Condo Buyers Guide To South Beach™, Official Condo Buyers Guide to Sunny Isles Beach™, Official Condo Buyers Guide to Downtown Fort Lauderdale and the Beach™, Official Condo Buyers Guide to Hollywood / Hallandale Beach™, Official Condo Buyers Guide to Downtown West Palm Beach™, and Official Condo Buyers Guide to Boca Raton / Deerfield Beach™, are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.
© Copyright 2012. Condo Vultures® LLC. All Rights Reserved.