Home to celebrities such as Gloria Estefan, Rosie O’Donnell, Shaquille O’Neal, Daniel ‘Tommy’ Mottola, and business leaders such as Phillip Frost and Susan Miller.  Star Island is the most exclusive of the tri-island and homeowner association comprised of Star, Palm and Hibiscus Islands.  Most notably, in the midst of the most severe housing downturn in a generation, high end estate homes such as the one highlighted below sold in just four months.  Also of note is that the discount from the original asking price is relatively small.

Star Island

Star Island Home - Old World Charm

Star Island Luxury Home For Sale

Located on an oversized 48,300 SF lot with over 220 linear ft. of watefront, this classic southern-style home features Old World charm.  Featuring Southern and Eastern exposure towards Miami Beach, Fisher Island, and the cruise ships.  Located only five minutes away from all the excitment of South Beach.  This single family estate offers exclusivity, privacy and is located on a 24 hour guard gated island community. Owners dock their yachts and live among the stars (the next door neighbor is Rosie O’Donell)!
:  Oversized Waterfront Proeperty with 220 ft. on Water, Spectacular location on Star Island, Gated Island Community

:  Orientation towards busy causeway and potential for traffic noise.

Sold Price: $8,100,000 (2008)
Original “For Sale” Price : $9,750,000 (2008)
Bedrooms: 6
Bathrooms: 6
House S.F.: 4,720
Land S.F.: 48,300
Sold Date: September, 2008
Sold Price per S.F.: $1,716/S.F.

Reduced from Original “For Sale” Price: 17% (132 days on market)

Source:  SouthEastFlorida Regional

I’m often asked about the best deals in Miami Beach’s premier waterfront homes and condo buildings. Specifically, most active buyers want to know how much lower can prices go and what constitutes a true “bargain” today?  Lately, I have noticed a divergent trend among Miami Beach properties (both homes and condos).  The most sought after condos in premier buildings such as The Continuum Condo,  Murano at Portofino, Portofino Tower, Icon, and Murano Grande have seen a surge in sales activity in the past few months. The premier waterfront single family homes and condos are selling NOW at significantly discounted prices.

The most recent condo and home sales continue to demonstrate that buyers are willing to pull the trigger and purchase homes and condos that are priced right and significantly discounted from 2006 closed sales prices.  What is the right price?  It all depends!

A few divergent examples of Recently Sold Waterfront Miami Beach Condos and Single Family Homes:

The Continuum Condo - South Tower Penthouse-1

Continuum Penthouse

Magnificent and massive South Beach oceanfront 3-level penthouse.  360 views, 5 bedroom/7.5 bath, 13′ ceilings (26′ in dining room) & 7,000SF under a/c,  pool, Smart house touch panels integrate high-end audio, video, auto shades, HVAC, lighting, security, 4-plasma TVs, wi-fi, private elevator, all on top of the most exclusive 13-acre gated enclave with spa/club, 3 tennis courts, 3-pools and 2 rest. at the southernmost tip of the most exciting part of South Beach. Also included in the sale were four private parking spaces.

:  12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse

:  None

Sold Price: $9,900,000
Original “For Sale” Price : $25,000,000
Previous Sales Price (2003) $7,000,000
Bedrooms: 5
Bathrooms: 8
Condo S.F.: 7,374
Sold Date: May 15, 2009
Sold Price per S.F.: $1,342
Discount from Original Asking Price: 60.4%

The Bentley Bay - South Beach Design Group Showcase Condominium

Bentley Bay Condo # 1811

Amazing 270 degree views of Downtown Miami, Star Island, Fisher Island, and the Ocean from this contemporary designed two bedroom condominium. Terrazo floors, custom lighting, clean design and decorator appointed finishes.  The original owners had spent well over $200,000 in upgrades and finishes alone!

:  270 degree views of Biscayne Bay, Downtown Miami, and the Ocean, beautiful finishes & design.  Boutique Building.

:  High Maintenance Fees and construction issues at The Bentley Bay

Non-MLS Sold Price: $480,000 (2009)
Original “For Sale” Price : $1,595,000 (2005)
Previous Sales Price: $1,090,000 (2006)
Bedrooms: 2
Bathrooms: 2
Condo S.F.: 1,250
Sold Date: May, 2009
Sold Price per S.F.: $384/S.F.
Discount from 2006 Asking Price: 72%

Palm Island- Single Family Home with Old World Charm

Palm Island Miami Home

Beautifully updated 2-story Mediterranean charming home on exclusive, guard-gated Palm Island. Paradise living on secluded island just minutes from the excitement of South Beach and downtown Miami. Easy commute anywhere in South Florida. Walk to new park/playground/tennis courts. 4 bdr/ 3 bth, updated kitchen, marble baths. Open & bright design.

:  Charming Home, Spectacular location on Palm Island, Gated Island Community

:  Small Lot, some work needed on property

Sold Price: $660,000 (2009)
Original “For Sale” Price : $1,749,000 (2006)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,616
Land S.F.: 5,775
Sold Date: May, 2009
Sold Price per S.F.: $252/S.F.

Discount from Original Asking Price: 62%

Palm Island- Double Lot Waterfront Home

Coconut Lane Home - Palm Island Miami

Waterfront home on a double sized lot with lush landscaping, 100 ft of open bay on 24 hour gate guarded Palm Island.  Amazing views of downtown Miami and Cruise ships.  The home included a private dock with Boat Lift, a two car garage, sauna, outdoor shower, pool, large entertainment room, and even a real working fireplace.  Marble and wood floors throughout, stainless steel appliances, Hurricane Impact windows, and a balcony as well as covered Patio on the second floor to enjoy the views!

:  100 ft. Prime Waterfront Lot, Spectacular location on Palm Island, Gated Island Community

:  Home needed some updating

Sold Price: $2,700,000 (2009)
Original “For Sale” Price : $5,800,000 (2006)
Bedrooms: 3
Bathrooms: 3
House S.F.: 3,180
Land S.F.: 14,000
Sold Date: May, 2009
Sold Price per S.F.: $849/S.F.

Discount from Original Asking Price: 53%

I keep receiving many inquires and requests from Buyers (both from USA and International clients) about the possibility of purchasing a foreclosed, or bank owned, single family home in Miami Beach.  There continues to be a significant gap between the sought-after upper-end luxury market and the less desirable, and generally non-waterfront properties.  Most importantly, we’re seeing a significant increase in buyer activity on the market due to the unfreezing of the credit markets for qualified buyers.

To illustrate the price (and demand) gap between turnkey waterfront homes and the still hard to sell mid-to-lower range single family homes, I’d like to highlight a few recently closed sales of bank owned homes around Miami Beach. These are not short sales, only those classified as REO sales (Bank owned and approved).

North Bay Road- Bank Approved Sale

Miami Beach North Bay Road Home

Bank Owned home, located on prestigious North Bay Road with nearby mansions and waterfront estates. Corner lot surrounded by privacy hedge. Open floor plan, designer stainless steel kitchen, terrazzo, limestone floors, formal dining room, family room, breakfast room, alarm system, sprinkler system.

:  Great Location
:  Small corner lot, house needed some work due to recent neglect

Sold Price: $520,000
Original “For Sale” Price : $1,350,000 (2007)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,474
Land S.F.: 6,978
Sold Date: March 6, 2009
Original Asking vs Sold Price: 39%

Alton Road- Significantly Reduced Turnkey Waterfront Home

Alton Road Luxury Home

A 1930’s  Mediterranean large home with guest house.  Renovation was completed in 2006 with luxury touches throughout  The additional amenities of this beautiful estate include: polished  marble floors, a custom masonry  fireplace, gas appliances,movie theater out door fountains with 5 bed and 4 and 1/2 baths.
: Complete renovation & charm

: Located on busy Alton Road & limited appeal

Sold Price: $520,000
Original “For Sale” Price : $2,200,000 (2006)
Bedrooms: 5
Bathrooms: 4
House S.F.: 3,223
Land S.F.: 7,320
Sold Date: April 22, 2009
Original Asking vs Sold Price: 24%

Biscayne Point- Gated Community Land Value Teardown Sale

Foreclosure Waterfront Home

Bayfront vacant home that was sold “as is” by the lenders, gated community with wide bay views.  Minutes from the Ocean, rare Bayfront lot with 75′ of waterfront.

: Waterfront lot with Wide Bay Views, Gated Community in Miami Beach
: Complete rehab / teardown house

Sold Price: $500,000
Original “For Sale” Price : $1,200,000 (2004)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,816
Land S.F.: 7,500
Sold Date: March 12, 2009
Original Asking vs Sold Price: 42%

Finally, to illustrate the dramatic difference with turnkey waterfront homes, I’d like to highlight another recent sale on Miami Beach’s North Bay Road, where the home was on the market for just TWELVE DAYS:

North Bay Road- Wide Bay Home

Luxury North Bay Road Home

This was one of the best waterfront deals on Miami Beach.  Wide bay views with 77 FT on the water and a 254 FT deep oversized lot.  This home is sparkling clean and livable “as is”.

Sold Price: $3,200,000
Original “For Sale” Price : $3,900,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 4,006
Land S.F.: 19,685
Sold Date:  March 11, 2009
Original Asking vs Sold Price: 82%

Over the past month, my team and I have witnessed a significant increase in buyer activity for what I consider to be “A” real estate properties.  These can be quickly defined as:

- Miami Beach waterfront condos in buildings such as The Murano, Murano Grande, Icon South Beach, Portofino Tower, Continuum, and more affordable buildings such as The Waverly and The Floridian along West Avenue.

- The more popular luxury waterfront single family homes located on island communities such as The Venetian, Palm, Hibiscus, and Sunset Islands.

Whether it’s a single family home or condominium, an additional requirement for an “A” property in this Buyer’s market is that it be turnkey, or completely remodeled and updated.  In other words, the only additional expense a buyer has to be concerned with is moving in with their furniture and personal belongings.

It’s been our experience recently that single family homes and condos, when priced RIGHT, are bombarded with buyer interest and generally receive multiple offers.  We are witnessing a new surge of buyer interest in these “A” location properties in the South Beach and the greater Miami Beach real estate market.  Our real estate websites are also seeing a dramatic increase in traffic, with local cooperating brokers calling with inquiries and sending us multiple sales contracts.

All of these signs are indicators that the bottom is very close to being reached, and sales are beginning to come back, with prices to GRADUALLY follow as the “A” inventory diminishes.

A few examples of “A” real estate properties currently on the market:

Venetian Island - Greatly Reduced Waterfront Home

Rivo Alto home in Venetian Islands Miami Beach

Romance is felt throughout this Mediterranean waterfront home situated on 10,500 sf of land, spanning 60 feet of wide bay waterfront facing the Miami skyline. This timeless residence with unique architectural features contains over 4,117 sf of living area, with 5 bedrooms, 6 full and 2 half baths.

Current Asking Price: $3,199,000
Original Asking Price : $4,250,000
Bedrooms: 5
Bathrooms: 8
House S.F.: 4,117
Land S.F.: 10,500
Waterfront:  60 ft. with Dock

San Marino Island- Significantly Reduced Turnkey Waterfront Home

San Marino Waterfront Home in Venetian Islands

A fantastic opportunity to own an oversized waterfront lot.  This Mediterranean waterfront estate has 90 feet on the water, located on the Venetian Island causeway between Miami and Miami Beach.  Beautifully redone with gourmet kitchen, brazilian cherry hard wood flooring, fireplace, office/library, and award winning landscaping!

Current Asking Price: $2,950,000
Original Asking Price : $4,599,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,370
Land S.F.: 15,750
Waterfront:  90 ft. with Dock

Portofino Tower Condo- Spectacular Atlantic Ocean, Fisher Island, and Miami Beach Skyline Views

View from the Miami Beach Portofino Tower Condo Unit #3402

This high floor condominium is a real flow through floorplan with two expansive and very private terraces with the most stunning views of Fisher Island, Downtown Miami, Miami Beach and the Ocean.   A Grand Foyer entrance, floor to ceiling  windows, a unique floorplan, and the most exquisite upgrades make this condomimium one of a kind.

Current Asking Price: $1,500,000
Original Asking Price : $1,795,000
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,960

The current status of the real estate sales industry, especially those working the Miami Beach market, is in a state of change and consolidation.  I started my Real Estate career in 1998 with much success, and that success has grown each year both during the “boom” market of 2002-2006 and the current “bubble burst” market.  During those “boom” years, it seemed as if everyone and their friends had a real estate license.  Real Estate became the “in” topic of discussion- due both to the lucrative commissions and also the cultural and social appeal of shows such as House Hunters, HGTV, etc.  It seemed as if everyone wanted to be a part of the real estate phenomenon, and this was easily attainable via easy mortgages and equity lines of credit.

The “easy” money in earning a real estate commission from the sale of a property is long gone.  Today’s market requires Agents and Brokers who have strong organizational skills, attention to detail, intimate knowledge of realistic market values, a close relationships with lenders, patience, and most importantly strong negotiation skills.  The task of taking a buyer around and showing him some good “deals” is just the beginning of a successful real estate transaction.  In this market, the key is to provide a strong value-added service to the customer (both to buyers and sellers).

My professional strategy for the last few years has been to focus on investing in both the people who comprise my team and in marketing resources for our clients.  This involves such mundane but important tasks as maintaining meticulous files and a system for following up with pending offers and contracts, as well as investing in new marketing resources that allow us to promote our clients properties to influential Brokers around the world.  My highest priority, however, has been to build and retain a trained, motivated, knowledgeable, and honest team of agents that are committed to the business.

A few of the latest successfully CLOSED sales of Miami Beach single family homes that are worthy of note:

Palm Island Luxury Home

Palm Island Luxury. Granite kitchen counters w/stainless viking equipment. Marble floors and terrace with hard wood in bedrooms. Large master with walk in closets & balcony. Infinity set river rock pool w/paver deck and wet bar. Seperate maid quarters. Full emergency generator and Gated entry to prestigious Palm Island.

Sales Price: $690,000
Previous Asking Price : $1,150,000
Bedrooms: 5
Bathrooms: 4
House S.F.: 2,694
Land S.F.: 6,000

South Beach Home

Rare single family home in South Beach by renowned 1930s architect. $325k+ renovation incl new: tile roof, PGT impact windows, HVAC, elec, plumbing, lighting, heated salt pool, marble paver deck, prof landscape. New in 2008: sleek custom kitchen w/ Sub-Zero/Thermador/Bosch, exotic stone; 3 new marble baths - Hansgrohe/Duravit/Toto fixts, body sprays, wenge vanities. Original wood floors, 11′ ceiling in sunny rotunda Living Room w/ honed coral-rock fireplace, Moorish detail arches. Corner lot in Flamingo Park neighborhood of Miami Beach.

Sales Price: $1,139,750
Previous Asking Price : $1,350,000
Bedrooms: 3
Bathrooms: 3
House S.F.: 2,142
Land S.F.: 7,500

Venetian Island Waterfront Home

Prime Venetian Island property, 60 x 175 waterfront lot with 10,500 Sq. Ft.  Minutes from South Beach, The Performing Arts center, and Downtown Miami.  Panoramic Bay views of Downtown Miami, the cruise ships, and Palm Island.  This home offers Miami Beach waterfront living at its finest!

Sales Price: $1,970,000
Previous Asking Price : $3,350,000
Bedrooms: 5
Bathrooms: 5
House S.F.: 3,268
Land S.F.: 10,500
60 ft. of waterfront