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The 2018/2019 Midtown Miami Real Estate Report.

May 6, 2019
Midtown 5

Midtown Miami is a relatively new neighborhood, probably the newest one in town. Before we get into statistics, let’s learn some history. The neighborhood is a large-scale, urban development that was planned with 8 high-rise residential buildings, a hotel, two parks, and a major urban shopping area, “The Shops at Midtown”. Development of Midtown Miami began in 2005, but due to the collapse of the real estate bubble in 2007, only three residential buildings (Midblock, Midtown 2 and Midtown 4), and about 2/3 of “The Shops at Midtown” were built.  It wasn’t until recently that the neighborhood really started to take off. Recently completed in Midtown Miami were Hyde Midtown, a luxury condo development with a hotel component, and Midtown 5, a luxury rental tower. Two more rental towers are under construction in Midtown now including 28 stories rental building Yard 8 (formerly Midtown 8)  at the south end of Midtown Miami.

Midtown Miami is uniquely positioned at the crossroads of Miami’s three most vibrant neighborhoods: Midtown, Wynwood and the Design District. By car, Midtown Miami is just 8 minutes from Downtown Miami, 10 minutes from Brickell and South Beach and 15 minutes from the Miami International Airport. Let’s look at each one of the buildings in Midtown starting with Midtown 4.

Midtown 4 (also known as 4 Midtown or Four Midtown)

Midtown 4 (also known as 4 Midtown or Four Midtown) is a 32-story, luxury condo development in Midtown Miami. Developed by Midtown Group and designed by Nichols Brosche Sandoval, 4 Midtown includes 392 condo residences with a studio, one-bedroom, two-bedroom, and penthouses. Completed in 2018. Prices range from $239,900 to $1.4M. Located at 3301 NE 1st Ave, Miami, FL 33137 . See recent sales below :

Midtown 2 (also known as 2 Midtown or Midtown Two)

Midtown 2 is a 30-story, luxury condo development in Midtown Miami. Built by the Midtown Group and designed by the world-renowned Bernard Zyscovich, Midtown 2 has 456 units and was built in 2007. The lobby recently went under $2.5M renovation. Prices range from $279,900 to almost $4M. Located at 3470 E Coast Ave, Miami, FL 33137.
See recent sales below :

Midblock

Midblock is 9 story condo development in Midtown Miami. Designed by Forum Architects, Midblock has 173 units and was completed in 2008. Prices range from $298K to $485K. Located at 3250 NE 1st Ave, Miami, FL 33137 See recent sales below :

HYDE Suites & Residences (also knows as HYDE Midtown)

Hyde Suites & Residences is the newest luxury condo development in Midtown Miami. Designed by Arquitectonica and developed by The Related Group and Dezer Development, HYDE has 350 residences and 60 hotel suites. Completed in 2018. Located at 121 NE 34th Street, Miami. Other address sometimes used for the building is 3401 NE 1st Ave, Miami. There are still 19 units available from the developer starting at $399K. Resale inventory prices range from $305K to $1.6M. See below recent sales :

Midtown Miami Real Estate Market Summary

Due to large supply of new construction condos in Midtown Miami and nearby Edgewater neighborhood, the prices have been going down since 2018, in some cases to the levels of 2013. I expect new inventory to be absorbed in the next 2 years and that effecting the real estate prices in a bullish way.

Right now, I see a lot of overpriced listings on the market. Buyers are trying to flip their units at unrealistic prices, eventually resulting in 20-30% price adjustments and longer than usual days on the market. See charts below.

8 year report of closed sales in Midtown Miami shows decline of average sales prices and increase of average days on the market.
8 years sales report in Midtown Miami, showing the difference between Listing Price and Sales Price

Buildings that depreciated the most not just in Midtown but in the whole Miami area are the new products that finished in the last 2 to 3 years that have very generic and standard finishes (many of them range in size between 1,300 and 1,500 SF). The larger units are less affected.

High floor, large and direct waterfront units as well as penthouses will remain to fare better and keep better levels of immunity than the rest of the pack.

The rental market in Midtown Miami will continue to grow as rental rates remain stable. The average rental price in Midtown is about $2.5 per sq ft. Units rent in less than 30 days. HYDE Midtown is the only building that offers very flexible rental policy. Units can be rented 11 times a year, 31 days minimum. This policy is very attractive for the investor or for a second home buyer. Midtown Miami is very desirable neighborhood because of the unique infrastructure offering dinning, shopping, art and all kinds of activities within walking distance. I believe because of that the rental prices will continue to be stable and in some cases even go up which in return will bring more investors to the area and trigger the growth of the real estate prices.

Advise to Buyers

I don’t expect prices to go any lower than they currently are. The best deals are to be had in the $300K – $600K market as well as any leftover developer inventory at HYDE Midtown. If you are an investor in this price range you will be able to pick up some excellent properties at heavily discounted prices. This will be a long- term play though, meaning you need to keep the condo for at least 4 years, in order to flip and generate a good profit. You will be making between 3% and 5% yearly CAP by renting the property. Many great things are coming to Midtown Miami and this is the right time to buy.

Advise to Sellers

If you are a seller who bought a condo in the 2015/2016 peak, do not expect to be able to come out of this at the same price that you bought for. If you are on the fence on whether to sell or not, be aware that if you decide to keep, you will need to hold it for potentially 2-3 years or more to come out better. Recognize that break-even calculations are not truly break- even due to lost investment opportunity and inflation. If you would like to list your property for sale, call me first for a free real estate advise.

Truly yours, Olga Monson

I can be reached at 954-512-3044 or by email at olgamonson@gmail.com

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