It isn't everyday that positive news out of the Miami high-rise market trumps that of another Florida city, but yesterday was one such day. According to the Daily Business Review, a Singer Island-based investment group, Welcome Bay, paid $13 million for 60 units in the 516-unit Marina Blue tower in downtown Miami. While the bulk purchase is welcome relief for the seller, Silicon Valley entrepreneur Jim Clark, the sales prices aren't likely to cheer up owners of adjacent units. For example, Welcome Bay bought Unit 2012 for $168,600 or $127 per SF. The identical unit one floor up , 2112, sold previously for $557,740, or $423 per SF. The DBR says this transaction is a harbinger of what's to come as bulk sales really take off in 2009. Meanwhile, just up the road in West Palm Beach, the first downtown condo has been officially turned over to the lender. With $44 million outstanding on a defaulted mortgage from the developer, iStar Financial just repossessed the 140 remaining unsold units in The Whitney. In other West Palm news, the Palm Beach Post reports that closings are off to a slow start in three other high-profile condos: Two City Plaza, CityPlace South Tower and City Palms.Tuesday, January 6, 2009
A Tale of Two Cities...and Condos
It isn't everyday that positive news out of the Miami high-rise market trumps that of another Florida city, but yesterday was one such day. According to the Daily Business Review, a Singer Island-based investment group, Welcome Bay, paid $13 million for 60 units in the 516-unit Marina Blue tower in downtown Miami. While the bulk purchase is welcome relief for the seller, Silicon Valley entrepreneur Jim Clark, the sales prices aren't likely to cheer up owners of adjacent units. For example, Welcome Bay bought Unit 2012 for $168,600 or $127 per SF. The identical unit one floor up , 2112, sold previously for $557,740, or $423 per SF. The DBR says this transaction is a harbinger of what's to come as bulk sales really take off in 2009. Meanwhile, just up the road in West Palm Beach, the first downtown condo has been officially turned over to the lender. With $44 million outstanding on a defaulted mortgage from the developer, iStar Financial just repossessed the 140 remaining unsold units in The Whitney. In other West Palm news, the Palm Beach Post reports that closings are off to a slow start in three other high-profile condos: Two City Plaza, CityPlace South Tower and City Palms.
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2 comments:
From $423/SF to $127/SF in a year? Ouch.
Here's an interesting article from Tech Crunch about Jim Clark and Marina Blue. Apparently he was trying to sell his units for less than they were worth in Dec. 2007.
http://www.techcrunch.com/2007/12/26/jim+clark+has+the+miami+real+estate+blues/
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