Miami Bulk Condo Buyer Pays Record Low $223 Per SF for 20 New Units
Posted by Alex Finkelstein 12/10/09 8:30 AM EST
(MIAMI, FL) — A bulk condo buyer has set a new record low per-square-foot price of $223 with the $6.3 million purchase of 20 new units at the new Artech Residences at Aventura in North Miami.
The previous low record of $324 per square foot was set in June. A South American buying group paid $7.5 million for 15 units with nearly 23,300 square feet.
Artech Residences at Aventura
At the time, units were selling at an average price of $533 per square foot, according to according to a new report from Condo Vultures using Miami-Dade County records.
Aventek LLC, a Miami investment fund, and managing member Juan Ball bought the units at Artech Residences at Aventura, covering more than 28,400 square feet in the 10-story, waterfront project that resembles a cruise ship.
Ball's Brickell Avenue-based entity closed on the package of units with 20 separate transactions that were recorded throughout November, according to the CondoVultures.com report compiled using Miami-Dade County and Florida Secretary of State records.
“What a difference two quarters makes,” says Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures LLC.
“This $101-per-foot swing will undoubtedly reinforce the fears of many bulk buyers that the prices being paid today for blocks of condo units may not be viewed in the same manner as deals that close tomorrow.
“Still, real estate has a way of making owners who are patient and financially sound look good with time.
“How long these owners are willing to hang around to be proven correct is another question.”
Zalewski says Ball's bulk buy is part of an overall selloff strategy that has been adopted in recent months at Artech. The project first began to close on pre-construction contracts to individual buyers in September 2008, completing 153 transactions, or 66 percent, out of a total of 232 units.
Nearly 65 percent of the total transactions have occurred in the last three months at a pace of nine deals in September, 33 deals in October, 54 deals in November, and so far three deals in December, according to Condo Vultures® Bulk Deals Database™.
The overall average sales price for the project is $306 per square foot. Before September, the average sales price was $430 per square foot for 54 units.
Since September, the average sales price is $242 per square foot for 99 units. This works out to a difference of $188 per square foot today versus August, according to the report.
Ball's transaction is the 30th residential condo bulk deal for new or entirely renovated product to close in South Florida since July 2008. The deals represent more than 2,500 units and three million square feet.
Of the 30 deals, there have been 25 transactions for real estate and five deals for construction loans where the developers have not relinquished their deeds, according to the Condo Vultures® Bulk Deals Database™.
Activity has stepped up in the last six weeks. In November, buyers completed seven bulk real estate deals and one note purchase. There has already been one deal to close in the first days of December.
“We are aware of at least two more deals that are expected to close by the end of the year,” Zalewski said.
“As we head into 2010, watch for the bulk deals to tail off significantly in the first two quarters as lenders and developers go the way of the retail sales approach to tap into the strong demand from individual buyers.”