Miami Real estate community on fire over LeBron James' housingoptions

Even before LeBron James announced he'd be coming to South Florida, which South Florida luxury home he would choose was being discussed
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
What piece of prime South Florida real estate is fit for a king? LeBron James landed in Miami on Friday after making the announcement he would be leaving Cleveland to join the Miami Heat, but even before that, the local real estate circuit was abuzz with questions of where the multimillionaire athlete would live.According to analysis by Esslinger-Wooten-Maxwell Realtors, James will have plenty of multimillion dollar properties to choose from -- 355 Miami-Dade properties were listed for sale at prices above $4 million in May. Some of those properties -- and some unlisted mega-mansions -- have been in the spotlight this month, as rumors swarmed that James had been shopping for real estate in South Florida in recent days. On Thursday, Miami-based luxury Realtor Alex Shay began hearing rumors from other agents that James had put in a $49.5 million offer on a Gables Estates home being sold by auto tycoon Alan Potamkin.

Flagler Street in Miami, Florida - Circa 1955

The home, at 11 Casuarina Concourse, in Coral Gables, features 20,088 square feet of living space, eight bedrooms, 11 bathrooms and 800 feet of water frontage. ``It's a great big property on three great big acres of land -- it has all the bells and whistles, it has all the goodies that you want in a home,'' said Shay, who posted the rumor on his real estate blog. ``It's the second-highest priced property in Dade County.'' The most expensive home, an Indian Creek Village waterfront mansion listed at $60 million, is still under construction. Other homes for sale in that neighborhood include a six-bedroom, six-bath listed at $12.9 million, a 17,000-square foot mansion listed at $17.9 million and a Mediterranean style villa with seven bedrooms listed at $6.5 million. Heat president Pat Riley also owns a Gables Estates mansion.

Biscayne Boulevard, Miami Florida Circa 1927

If James, 25, wants to settle in at a bachelor pad in one of Miami's luxury condominium buildings, he could opt for a high-rise in downtown Miami or South Beach. A website launched weeks before James decided to come to Miami pitched a 4,200-square-foot Miami condo as ``LeBron's Future Miami Penthouse.'' It features 20-foot floor-to-ceiling windows, view of Biscayne Bay and, an extra perk, it's right across the street from AmericanAirlines Arena. The corner unit, at Marina Blue condominium, is on the market for $3.3 million. Judging from the castle James will be leaving behind in Ohio, a condominium would likely mean a major space downgrade, so speculating Realtors are betting he'll end up in a single-family home. James built a 35,000-square-foot mega-mansion outside of Cleveland in 2008, completely razing the 11-bedroom home that was on the land in order to erect the giant abode. The home includes a theater, recording studio, casino and more. ``Barbershop, bowling alley, ATM machine, Starbucks, all that,'' he told Jimmy Kimmel in a 2009 interview. ``You're going to have to do a show live from my house.'' With South Florida's home values still far below their peak, James could end up getting a bargain on a luxury property. ``He could probably make a great deal,'' Shay said. ``It depends on the house or the seller or the motivation of the seller, but there are good deals out there.''

Introduction To Miami

Miami Luxury Homes Sold For Bargain Basement Prices

Miami luxury home at 221 Casuarina Concourse, Coral Gables, Florida
Miami luxury homes have been selling at a snail's pace in the past few years, with only 42 luxury homes with water frontage, sold in greater Miami Beach in 2009. Miami and Coral Gables have also experienced dismal home sales and huge price drops. All of this points to a bottoming out of the luxury real estate market in Miami. More luxury home buyers have re-entered the marketplace, and more sales are closing. Recently, a fine luxury home in Coral Gables, located at 221 Casuarina Concourse, sold for $7,750,000. The property is just a stone's throw away from one of the most expensive homes in all of Miami, Alan Potampkin's Coral Gables mansion at 11 Casuarina Concourse, offered for sale for a whopping $49,500,000. The 11,402 square feet, 8 bedrooms, 11 bathrooms home, situated on a 34,876 square feet lot was purchased in 2006 for $9,775,000, and closed last month for $2,025,000 less than the seller paid for it 4 years ago, in February 2006. Many home sales in Miami have mirrored this one, as sellers become more realistic, and realize that times have changed dramatically, particularly with respect to the Miami real estate market. Many Europeans are visiting Miami this month, and some of them are taking advantage of the best buyer's market that Miami has seen in many years. It can truly be said that there has never been a better time than now, to make a great deal on a luxury home or condo in Miami.

Miami Condo Prices At Icon Brickell Continue To Fall

Miami condo owners, who have listed their condos for sale, have all become acutely aware of the steep fall in value of their apartments. The over development of many huge buildings with hundreds of apartments, and no buyers, along with the foreclosures of thousands of other condos in Miami, has brought the condo market to it's lowest level in memory. The good news is that condos can be purchased at prices that would have otherwise been unthinkable. Luxury real estate at low prices, relatively speaking, has become the norm in Miami. The Icon Brickell, a 3 tower complex, with 1,796 units, one of the biggest developments in Miami in recent years, has dropped prices more than 50% on units in the third tower. Condos in the Icon Brickell that were selling for $680 per square foot, just a few years ago, can now be purchased for as low as $298 per square foot of interior living area. Condos in the other two towers have dropped about a third in value. Related Group, the developer of the ultra luxury 3 tower project, is counting on Latin American buyers to come in, and snatch up the multitude of available units, at the steeply reduced prices. For those interested in living in a great area in the heart of Miami, the Icon Brickell is a good choice, and an opportunity to live in a building that is state of the art.

Miami At Night

Miami Real Estate Undergoes Changes

Miami real estate is undergoing some changes that are truly mind boggling. Some homes are selling for remarkably high prices, given today's economic climate, while others are selling at prices well below market value; and some sellers still don't get it. Last week a beautiful new home was listed for sale in the Miami MLS (multiple listing service) for an asking price of $3,990,000. At first glance, this didn't seem like an outrageous price for a brand new house on the exclusive Venetian Islands in Miami Beach, with 4,600 square feet of interior living space, and 5 bedrooms. At a second glance, one notices two very important factors -- that the house sits on a lot measuring 7,200 square feet, and that the property is not a waterfront home. That means that the seller is askingapproximately $867 per square foot of living space, for a house on a lot which is less than three quarters of the size of most waterfront lots on the Venetian Islands. Waterfront homes on the Venetian Islands have been slow to sell recently, and there are many waterfront houses for sale now. Sales of bayfront homes vary widely in terms of price per square foot, but $600 to $850 per square foot of interior space, can be used as a "rule of thumb" with regards to sales prices. It begs the question, how does a home owner of a non-waterfront property come to the conclusion that he/she could possibly get anywhere close to the asking price, or even half of the asking price of $3,990,000? It is mind boggling, and one of the reasons that real estate in Miami is undergoing such turmoil. On the other hand, sales of luxury homes on Miami Beach are still being made, albeit at a snails pace. Very recently a beautiful Miami Beach house on the Sunset Islands sold for $9,500,000. The 9,993 square feet mansion, situated on a 20,000 square feet waterfront lot, located at 1400 W 28th St. on Miami Beach, boasts 7 bedrooms and 7.5 bathrooms, and is a Mediterranean work of art, with fine marble, hardwood, and keystone floors. Although the asking price for the estate was $15,900,000, the property closed for just over 59% of the asking price. Condos are moving slowly as well. Last week a beautiful condo at the Four Seasons in Miami sold for $1,000,000. The 2 bedrooms 2.5 bathrooms condo located at 1425 Brickell Ave on the 48th floor (48C), was a great buy for the new owner, at approximately $468 per square foot of interior space.

Miami in 1946

Miami Real Estate

Miami Real Estate Market Sees Spark Of Light

Miami real estate has undergone its share of turmoil in the past few years, and many homeowners have suffered as a result. However, there are signs that a bottoming out is taking place right now, at least with respect to the sale of single-family homes in the Miami area. The latest statistics documented by Realist.com, showed a substantial increase in sales of single-family residences this July over July 2008. Last month 1,622 homes sold, as compared to 1,277 in July of 2008, a remarkable increase of approximately 27%. That is the good news. The bad news is that median home prices dropped considerably from a year ago. The median home price in July 2008 was $249,000, and last month, it was $206,000, a decrease in value of more than 20% from a year ago. Condo sales tell a far different story. The overbuilding of condominium towers by greedy developers over the past several years, has taken its toll on thousands of Miami residents. In July of 2008 the median sales price of a condo in Miami was $348,000, and one year later, in July 2009, the median price dropped to $230,000, reducing the price of a condo to only 66% of its value just 12 months earlier. Sales have also dropped substantially in the Miami condo market. In July of 2009, only 1,524 condo units sold in Dade County, as compared to 2,441 sold apartments in July 2008, a drop of more than 40% in number of sales from the same month, a year earlier.

Rare Photo View of Biscayne Boulevard Looking North in Miami, Florida - Circa 1958

Miami Real Estate Boom (The Boom That Was - Circa 2004)

The real estate boom in Miami has ended. The copy below will give you a good idea of where Miami real estate was just a few years ago. The number of real estate projects being developed all throughout the city proves Miami's exceptional growth. Last year, the Planning Department reviewed 104 major development projects. Out of the 104, the City Commission approved 25 projects. The approved 104 projects gave way to 20,100 new residential units, 800 hotel rooms, and 12,800 parking spaces. All the approved developmental projects amounted to a total construction cost of US$7.8 billion. Miami caters to all real estate investors by providing numerous opportunities to buy and sell properties. With a variety of single-family homes, commercial spaces, waterfront homes, and condominiums, both the realtors and homebuyers are provided with a number of choices. During the first months of 2005, the Miami condominium market started to heat up. Last month, a total of 19,660 condo units were just finished, is still under construction, and in the planning stage. New condominium constructions such as Brickell CitiCenter, Icon Brickell, Soleil, Urban River, and Ehden Placea won approval for new units. With the new developments in Miami real estate, the values are expected to increase which would demonstrate real estate developer's timely and accurate investment judgment. Values of each condo unit have averaged at about US$300,000. Investment experts say the boom in the Florida real estate market is because of economic factors and demographic causes. Developers expect the real estate values to continue growing as the projects are being developed. However, with Miami's real estate history, the city would always find a way to stand up against the market drop off and continue to develop their magnificently popular city.

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