Miami Beach Luxury Real Estate is Back… and in a BIG WAY!

Wow.  It is insane out there.  Our “season” usually tapers off right around June. This post won’t reveal such shocking stats, but I will clue you in on what is happening right now. Deals that will show up in Q3 will really surprise a few.

Basically, the average PPSF is still hovering in the low $700s, which is what I expect will continue for the next year or so.  What did happen this year was the first residential deal to break $20M since 2008 — 13 Star Island Drive sold for $25.5M.

This transaction flirts with Miami Beach’s all-time highest recorded sale of $27M. Back in Oct. 2008, Robert Toll bought five lots on the tip of Sunset Island II for $22.5M.

Luxury Miami Beach Real Estate Sales to Date

Year #Sales Avg $/psf
2008 49 $934
2009 42 $702
2010 53 $725
2011 35 $714 (thru 6/30/2011)

As you can see, we’ve already basically surpassed 2009.  It’s clear that 2009 was the year to buy.  Current inventory is at an all-time low, especially at the ultra high-end of the market.

Most Expensive Homes in Miami Beach

Looking at the Miami Beach Real Estate Sales of 2011

The big story last year was North Bay Road. There were four large sales ($9M+), which were mainly due to those ball players buying two homes there.

So Far, It’s All About the Venetian Islands

The Venetian Islands have ruled Miami Beach real estate in 2011, with 42% (or 15) of all waterfront sales occurring there. Wow. The Islands racked up just 13 sales in all of 2010. The activity this year is pretty surprising considering all of the construction on the Venetians.  But, this is also the year that sellers are finally listening to what the market is saying and pricing their properties lower accordingly.

Sunset Islands

Also of note are the Sunset Islands. There were a couple of “knock down” sales last year, and three transactions in 2009. Nothing to write home about.  So far this year, two homes have closed, and there are another three homes pending; two of those are VERY prominent homes.

Star Island

There’s been intense activity on Star Island this year.  As you probably know, local attorney Roy Black purchased 45 Star Island.  Though the media went into overdrive, this is the first house on the southeast side of the island, and it is closest to the causeway. 13 Star sold for a near-record $25.5M in 90 short days. 35 & 36 Star Island Drive sold for $12.25M in February. That parcel is comprised of two 40,000 SF lots, and the seller was Philip Levine.

Donald Pliner listed his home this year at 29 Star Island Drive for $24M.  The Moroccan-style estate has since been reduced to $21M.

Big Miami Beach Real Estate Deals Ahead

It seems that our luxe neighbor to the north, Palm Beach, has had many sales in excess of $20M this year.  I know of two homes that will close in the relatively near future and add to these numbers.  One is a very prominent home with a very prominent owner, and the other pending deal may very well break the all-time highest sale record by closing for more than $27M. Additionally, a plot of land on tony Indian Creek Island is said to be under contract for $15M.

Finally, embattled businessman Claudio Osorio listed his home at 15 Star Island Drive for $14.9M in April.  The estate was only on the market for two weeks before going under contract.  The home was once owned by, ahem, Vanilla Ice.

That’s the whole scoop.

Happy 4th.  I hope you’re happy knowing that I’m sitting in front of a computer writing and calculating and verifying.  My job is real glamourous, eeh?

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About Kevin Tomlinson