(MIAMI, FL)—Bulk condo buyers continue to rule the roost in Miami-Dade County’s high-rise shelter market.
CondoVultures.com reports a newly created South Florida entity has purchased 20 units in a new Greater Downtown Miami condo tower for $2.9 million, or an average $169 per square foot---one of the lowest prices in the past two years.
The price represents a 59 percent discount off of the average closed sales price in the project up to that point, according to a new report from CondoVultures.com.
The Aventura-based Kypros Holdings LLC with principals Ramon Cierco and Blanca Palau purchased nearly 17,400 square feet of space in the 18-story Gallery Art condominium (top right photo) on Northeast 24th Street in Greater Downtown Miami's Biscayne Boulevard Corridor.
The 20 units have an assessed value for tax purposes of $5.6 million, according to the Miami-Dade County Property Appraiser's Office.
"On the surface, the price seems attractive compared to previous closed sales in the building," says Peter Zalewski, (middle right photo) a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
However, "after a closer review, the bulk buyer ended up paying a premium over another investor who purchased a bundle of 50 units for only $4 million in a project located just two blocks down the street,” Zalewski points out.
"The quality of the two new projects differs but it is up for discussion if the differences are worth the premium," he adds.
Mercantil Commercebank assigned its outstanding debt on the original $12.3 million loan for construction of the Edgewater Lofts to the bulk buyer, 2200 NE 4th Avenue LLC, in October 2009. No price was recorded for the transaction with Miami-Dade County, according to government records.
“Bulk deals have been closing at a rapid pace, making it a challenge to stay apprised of the latest pricing,” says Zalewski.
The Gallery Art bulk purchase is the second deal to close in December, and the 15th transaction this quarter in the tricounty South Florida area.
Since July 2008, buyers have closed on 33 bulk deals (including five note sales) for more than 2,900 units and 3.47 million square feet, according to the Condo Vultures® Bulk Deals Database™.
At Gallery Art, the Kypros Holdings' bulk purchase represents only a fraction of the units that have closed at the condominium that recorded its first recorded sale in February 2008.
Of the 119 closings recorded in the 176-unit tower, 58 units -- including the 20 units in the bulk purchase -- have closed since November 2009, according to Miami-Dade County records compiled by CondoVultures.com.
With the flurry of closings in the last month, the average closed sales price for the project is $301 per square foot. The average closed sales price since November is $191 per square foot, according to the Condo Vultures
To date, the Gallery Art condominium has generated nearly $29 million in transactions. (Biscayne Bay bottom left photo)
Mercantil Commercebank in Coral Gables provided a $40.3 million construction loan to the project in June 2006 that has not yet been repaid or assigned, according to Miami-Dade County records.
Contact: Peter Zalewski, Condo Vultures® Realty LLC, Office: 305-865-5629, Cell: 305-321-7383, eFax: 1-305-832-0311, Peter@CondoVultures.com, http://www.condovultures.com/
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