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Miami Condo Distressed Properties

When I started talking about Miami Condo Distressed properties the cap rates in Brickell area were between 1.5% to 3.5% , in the past year the cap rates have started to climb to ~5% and above in Class B buildings. The rental market is still strong given the influx of young people moving to Brickell. Brickell is 4th Fastest growing neighborhood in the US. 

38% of Q2 2017 Brickell Sales Resulted in a Loss. The overall market has over 28 months of supply of existing resale condos listed for sale on the MLS. As more preconstruction units are completed by 1Q 2018 and as condo flippers continue to take large losses on resale transactions the overall market will likely continue to suffer downward pricing pressure.
Distressed Deal in the Market
Infinti Brickell : Studio | City view | Large balcony | Class B Building 
Current Listed Price: $195,00 | Total Sqft: 642 ( including balcony )
Taxes : 
$3,615 / year
HOA : $345/month
Est Rent : $1,500/ month
Current Net Cap Rate : 5.25% at the listed price

Cheapest Studio in Brickell Area and with the current market conditions we can push the net cap rate to ~5.7%

Brickell City Center : 1BD + 1.5 BR | Class A building
Current Listed Price: $499,900 | Total Sqft: 1,040
Taxes : 8000 / year
HOA : $800/month
Current Rent : $2,550/ month
Current Net Cap Rate : ~2.6% at the listed price

Cheapest 1BR for the best building in Brickell, Developer is selling units in other tower  ~600 - to ~700 sqft
Unit was initially listed at $587,000 initially

ICON - Brickell  : 2BD + Den + 2BR | Water View | Class A Building
Current Listed Price: $679,000 | Total Sqft: 1,313
Taxes : 13,215 / year
HOA : $1,241/month
Estimated Current Rent : $3,750/ month
Current Net Cap Rate : ~2.5% at the listed price

Similar units sold for high 500's since it is a buyer's market 

Spread The Distress Word

Varun Hemraj

Real Estate Advisor
Keller Williams Realty
Copyright © 2017 All rights reserved.

Disclaimer: The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein.

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Real Estate · 55 SE 6th St. · Apt. 4202 · Miami, Florida 33131 · USA

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