Tag Archives: Brickell CityCentre

Brickell skyline 1 - Brickell com

The Ongoing Demand for Brickell Real Estate

 

Being young is the most powerful element in creating long term wealth with real estate investments. But being young alone does nothing. You must couple it with knowledge and action. And you must be bold. Over time, your investments will grow with inflation, your debt will gradually amortize, and provided you do not sell your best assets, with a little luck you will become immensely wealthy.

And so, exactly how do you acquire knowledge?

Follow the following simple steps with persistence and tenacity:

  1. Pick the one industry that interests you most (e.g., multifamily, office, retail, industrial, hotels, etc.). Focus 100% of your attention on that industry. Later, when you are worth $100 Million+ you will be able to pick a second industry for fun. Focus is the key.
  2. Spend endless hours driving around your city learning everything about different geographical areas. Good areas, emerging areas, gentrifying areas, expensive areas, poor areas, areas where the city is growing into, etc. Notice every little detail about them. Real estate is a highly localized business. Look only in areas you truly understand, or are willing to learn and understand. Notice everything unique and relevant about them. Develop that special eye that separates you from the next guy.
  3. Once you focus your attention on a few areas (tend to stay away from high end areas as economic returns normally tend to be better in more challenging areas that are improving and where you can bring value added), spend endless hours driving around your city inspecting every detail about the specific properties that catch your attention (e.g., size, construction, type of tenants, rental rates, stability of tenants, types of construction, etc.).
  4. Go home and read everything online about your city, the industry you selected (remember, start with only one!), the economics of the type of property you selected, the appraisal methodologies for such properties, the capitalization rates (cap rate) as function of risk, and the best and most successful realtors in that specific market.
  5. Become friends with one or more of the more successful commercial realtors in that industry in your hometown. A good realtor is worth her/his weight in gold. They tend to be friendly and accessible. Simply look up which ones have the listings. Exchange valuable industry information with them from time to time so the relationships flourish. Learn from her/him everything about the business you can. Ask them to put you on their mailing list. Resist negotiating their commissions. Otherwise, you will never get the really good deals.
  6. Befriend the commercial loan officer at your local bank. Ask her/him what is their appetite for financing the type of property you are seeking. If they do not finance it themselves, ask her/him who does and go talk to them. Be sure to always keep up with what terms of financing are available (loan to value/purchase price, interest rates, term, length of fixed rate, personal guaranty requirements). This knowledge is fundamental in this business.
  7. Review closely the most recent sales and focus on the economics of each such sale (e.g., cap rate (which is always a function of location and risk), location, property condition, motivation of seller, special issues with the property, etc.). Be sure you understand where the market (i.e., cap rates, demand, supply, investor appetite) lies at that moment.
  8. Study and ascertain at all times where in the economic cycle you are in at the present moment in time. Values of properties oscillate depending on where you are in the economic cycle. Cycles typically last between 7 to 12 years. You always want to buy at the bottom and never at the peak. Learn to resist the herd mentality. It can destroy your financial security. Buying commercial real estate in 2006 was disastrous to many buyers. Buying in 2010–2011 proved mostly quite insightful and profitable (at least it did for us).
  9. Review online listings periodically (there are many services that offer this service, including some free ones (such as loopnet) and learn more about why certain listings linger longer than others. Normally it is because some sellers aspire unrealistically high prices. Search for “off market”opportunities from local realtors and property owners as these often result in better values.
  10. After following all these steps, write down specifically the attributes of the property you wish to purchase (create an “envelope of attributes”). Include the parameters for price, down payment, financing terms, cap rate, location, condition and how you are going to operate the property (are you going to operate it yourself or are going to outsource management?). Stay faithful to that envelope.
  11. Research every property for sale within your envelope until you land one that meets your established criteria.
  12. Then, arm yourself with as much courage as you can. Then go for it. Use a good local real estate attorney who comes highly recommended. Be extremely disciplined in not exceeding your price threshold. FYI, for me only about one in 10 typically gains traction. Do not despair. Be very patient.

An important element to remember is that if you buy and then sell your entire life, the day you retire you will have little or nothing to show for it. You will have spent your fortune. Instead, always retain your gem properties as these are the ones that over time will make you very rich. Resist at all cost selling these!

Be gentle and conservative. Do not over-extend. Do not over-leverage. Always have cash for a rainy day. When everyone is exuberantly buying, run for the hills. When everyone is frightened and not buying, wait for prices to drop, return from the hills, and carefully purchase the best quality assets you can find. Again, be a contrarian and avoid the herd mentality.

One final piece of advice: Make it a point that every deal you close is win-win-win for everyone involved. You, the counterparty buyer or seller, the realtor and the lender. Always leave some money on the table for others. Make sure you endeavor for everyone to leave the closing table reasonably happy. Always strive to do the right thing. Never be dishonest, nor even betray an appearance of dishonesty in your dealings. These are fundamental principles in this (and probably every) business. It will ensure you be first in line for the best deals, it will make your life (and others) much more enjoyable, and it will make this world a little better place.

The beautiful thing about real estate is that if you follow these simple steps, you will have lots of fun, over time will create great wealth, and you will be able to help others and leave a legacy to your children and your favorite philanthropic cause.

Good luck!

Brickell skyline - Brickell com

The Ongoing Demand for Brickell Real Estate

Supply versus demand is the key component of the real estate market. Investor’s live by this concept as if it were a mandated law. Supply versus demand is a very simple concept to explain and understand. For instance, if there is a low inventory of condos, but high demand from a vast amount of buyers, then the market is “hot” and prices soar per square foot. However, if there is a large inventory of condos, but a low a demand from fewer buyers, then the market slows, as inventory peaks, and prices begin to come down in a scramble to sell more units.

Currently, Brickell is seeing a surplus in units, and not enough buyers to snatch up all the units. Brickell’s skyline is ever changing, and as the skyline changes and grows, so does the market.

In late 2014, Brickell saw a great deal of preconstruction and resale units being purchased by international buyers. That demand remained steady until 2015 when buyers from struggling economies, especially in Latin America, could no longer afford such extravagant purchases.

With the increase in inventory and slowing sales, Brickell’s condo market is seeing a shift in supply. Once where there weren’t enough condos to satisfy the purchasing needs of buyers, now there are too many condos on the market. New buildings, such as Brickell House, Brickell City Centre, Nine, SLS, and Brickell Heights have opened; and, more new developments such as Panorama, Brickell Flatiron and Solitar are slated to open in the near future.

As Miami has a keen fascination with all things brand new and shiny, some of the most recently move-in ready buildings are seeing a decline in sales, while the preconstruction developments are seeing an increase in sales. These new developments are leading to the over abundance of units for sale in the area.

However, don’t be fooled thinking that you can snatch up amazing units for low prices. Units in established high-end buildings like the Santa Maria, Bristol Tower, and Asia are in high demand because of their amenities and waterfront views. Also, in newer and preconstruction developments, penthouses with high ceilings, limited corner units, and units with large terraces are in high demand, and haven’t depreciated in cost or value.

Miami-Dade County has a surplus of $1 million plus units, which most residents cannot afford. With that being said, the demand for rental apartments in Brickell, and South Florida, for that matter, is steadily increasing. Brickell’s population growth and Florida’s current state of low homeownership is what is mostly pushing this demand for rentals.

If you are interested in purchasing a Brickell condo as your residence or as an investment, contact Andres Larin at Brickell.com or at (786) 306-4287. Brickell is currently seeing a development boom with improved public transportation, including an extension of the Metromover directly to the airport and the Brickell Trolley; as well as a boom in luxury dining, entertainment, and shopping. You definitely don’t want to miss out on your chance to own a slice of this cosmopolitan area.

Brickell Market Might Give Life To Unoccupied Land

Brickell Market 1-3The uncharacteristic lot which resides under the Metrorail tracks, starting from the Brickell Metrorail Station and stretching north, and next to the Brickell Citi Centre plot, might possibly flourish into something considerably fancy as opposed to the unoccupied patch of land that currently exists. This prospect was proposed by landscape architects and husband and wife team Douglas Thompson and Ebru Ozer, whom strive to develop “landscapes of enduring beauty with environmental awareness.” The envisioned project Thompson and Ozer have pieced together for this lot is called ‘Brickell Market’.

On their website, Thompson and Ozer describe the project as follows:

Brickell Market repurposes an underutilized space under an elevated commuter train corridor in the Brickell neighborhood of Miami, Florida as a new civic space for a farm market, outdoor cafes, and beer garden.  It experiments with the idea of transforming of traditional infrastructure to green infrastructure that can respond to the environment.  In addition to its active programming, the design also focuses on capturing and treating stormwater from the overhead rail structures and adjacent street surfaces utilizing raingardens with native planting.

The two are attempting to meet with the county to have their Lincoln Road-like esplanade, Brickell Market, become more than just pen on paper.

Brickell Market 2-3

plan-3

New Renderings Released for Brickell CityCentre

Swire Properties, the developer behind the groundbreaking Brickell CityCentre project, has just released new renderings of its audacious project that include a new logo designed by prominent international branding firm Pentagram. The South Florida Business Journal has more:

The letters for the project name are formed by circles of light and are all separate words – Brickell City Centre – which is how the project will be identified going forward. Previously, Swire had called the project Brickell CityCentre.

“I thought it was important that the diverse and rich culture of Miami was reflected in the Brickell City Centre brand,” said Paula Scher of Pentagram, in a statement. “The circles are representative of the unique neighborhoods surrounding Miami – when viewed apart, they’re very distinct, but when combined, they form the fabric of the city.”

Selected for their extensive experience working with luxury brands such as MoMa, Bloomberg LP and Saks Fifth Avenue, Pentagram’s design will be reflected in the exterior signage, directories, logo and the parking garage at the project.

“The Pentagram identity package expresses the connectivity of this destination to its many audiences and Swire’s aspiration that it become the heart of Miami,” said Megan Kelly, executive vice president of Swire Properties.

Needless to say, Swire Properties has big plans for this billion-dollar project, which will span over nine acres and include a large luxury shopping center, two residential towers, a hotel, a wellness center, Class-A office space, and more. Phase one of Brickell City Centre has already begun, with its estimated completion date being some time in 2015. This widely anticipated development will no doubt solidify Brickell’s status as one of South Florida’s most prosperous and vibrant communities.

To learn more about these and the wide range of other amazing Brickell Condos, call Brickell.com at 305-379-0203.

New CityCentre Tower Announced as One Brickell CityCentre

As if Brickell CityCentre wasn’t already turning out to be one of the most audacious real estate projects in South Florida, it was recently reported that the massive mixed-used complex will be adding even more to its already-impressive list features. As Curbed Miami reports:swire-thumb

“The 80-story tower named  would be the tallest in the project which is currently under construction. Along with the rest of the project the tower is designed by Arquitectonica and would house more Class-A office space, more condominiums, more retail space, and another hotel. It would also be the project’s grand entrée to Brickell Avenue. In the press release Swire says that the company “intends to work with the City of Miami to have One Brickell CityCentre approved as an extension of the existing Special Area Plan.” Translation: they don’t want to go through the bother of another approvals process and are hoping the city caters to them considering the vastness of the project.”

Swire acquired the 1.5 acre site at 700 Brickell Avenue for $64 Million in July, signifying just how committed they are to this unprecedented endeavor. Indeed, the project is already worth well over $1 billion, making it among the most expensive preconstruction developments in South Florida(which says a lot, given the constant growth in the region).

Construction of CityCentre first began on July 2012 and is scheduled to be completed in 2015. Spanning over 9 acres of land along South Miami Ave, between 8th Street and 6th Street, it will entail an impressive 5.4 million square feet of space, accommodating office, residential, hotel, retail, entertainment purposes. This includes a 520,000 square foot shopping center, 120,000 square feet of office space, 120,000 square foot wellness center, 800 condos, 243 hotel rooms, and 93 apartments.

Parking in this tight-knit area of Brickell will be provided by a two-level 7-acre underground parking garage underneath the property, entailing 3,100 parking spaces in total. To ease congestion and increase accessibility, the development will incorporate the Metromover’s infrastructure and be closely situated to I-95. Some of the most advanced technological and engineering marvels will be utilized to create nothing short of an urban masterpiece.

It’s developments like One Brickell CityCentre that make explain why Brickell regularly ranks as one of the fastest-growing and most desirable communities in all of South Florida. To keep tabs on these exiting developments, or to acquire your own phenomenal Brickell residence, call Brickell.com at 305-379-0203.