Proposed Mary Brickell Village Condo Tower Moves Closer To Construction Published on 5/13/2011 9:39:00 AM
After several years of start and stop, the proposed 369-unit Sky Palace at Mary Brickell Village condominium in the Brickell Avenue Area of Greater Downtown Miami may finally be gaining momentum, according to a new report from CondoVultures.com.
Set against a backdrop of a dwindling number of new units from the real estate boom and an improving economy, developers of the long proposed 35-story project slated to stand atop the Publix Super Market and retail center on Southwest 1st Avenue have quietly placed several of the planned units for sale on Multiple Listing Service, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
The Sky Palace at Mary Brickell now has 90 units available for purchase on a preconstruction contract basis at an average price of nearly $400 per square foot. The monthly condo association fee is proposed at $0.47 per square foot, according to Miami Association of Realtors data.
Concurrently, the developers of the proposed Sky Palace at Mary Brickell Village project have taken "a significant step forward" by following through on a pending contract and formally acquiring the air rights atop the open-air retail mall for the proposed residential project, according to the South Florida Business Journal.
More than a year ago in April 2010, Sky Palace's vice president of sales Isos Y. Stamelos-Monroe announced plans to go vertical with the project sometime in 2010 with a delivery in late 2011.
Construction never got started.
In the mean time, new condo sales in Greater Downtown Miami spiked as foreign buyers with strong currencies scoured the market searching for deals.
Developers sold 57 percent more new condos in Greater Downtown Miami in 2010 on a year-over-year basis than in 2009, according to CondoVultures.com.
Buyers purchased nearly 3,700 new condos in Greater Downtown Miami in 2010 compared to less than 2,400 in 2009.
In the two previous years of the South Florida real estate crash, many preconstruction buyers with 20 percent deposits at risk decided to buy, closing on nearly 5,000 units in 2008 and 2,000 units in 2007, according to a first-ever comprehensive study undertaken for the Condo Vultures® Official Condo Buyers Guide™ eBook series.
New condo transactions continue in 2011 but the market has experienced some adjustments. Prices have been increased, resulting in a decrease in transaction volume, according to a recent Condo Vultures® Market Intelligence Report™.
Buyers paid an average of 14 percent more for new units in Greater Downtown Miami - in the epicenter of Florida's condo crash - in the first 90 days of 2011 on a year-over-year basis compared to the same three-month span in 2010, according to a CondoVultures.com report.
As the prices for new developer units increased to $348 per square foot in 2011, the average number of sales dropped by 54 percent to 111 transactions per month in the first quarter, according to the report based on an analysis of Miami-Dade County records.
A year earlier in the first quarter of 2010, buyers purchased an average of 239 new condos per month when prices averaged $306 per square foot, according to the report.
As of March 31, some 3,200 new condos created during the boom remained unsold. The unsold units are located in three-dozen projects out of the 84 projects that were developed since 2003 in Greater Downtown Miami.
Greater Downtown Miami is a 60-block stretch from the Julia Tuttle Causeway south to the Rickenbacker Causeway, Interstate 95 east to Biscayne Bay. Greater Downtown Miami is comprised of the neighborhoods of the Brickell Avenue Area, Downtown Miami, and the Biscayne Boulevard Corridor.
Developers constructed nearly 22,250 condos during the real estate boom beginning in 2003 in Greater Downtown Miami. In the four decades prior to the boom, developers had created some 11,500 units in the same market.
It is worth noting 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.
Our report is based on completed transactions where a deed is recorded and taxes paid for the transaction.
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.
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