Strategies of the Condo Vultures®

Downtown Miami Land Trades For $39 Million

Condo Vultures® Realty LLC — Wed, 23 Sep 2009 10:54:47 -0500

A Boca Raton company has paid $39 million for nearly 300,000 square feet of vacant land situated on nine parcels in Downtown Miami, according to a new report from the Condo Vultures® Bulk Deals Database.

The newly created PWV Group 1 Holdings LLC, with Gary N. Gerson as registered agent, paid $130 per square foot on Sept. 21 for 27 lots located a block west of four new highrise condo towers on Downtown Miami's Biscayne Boulevard, according to CondoVultures.com research.

The seller, six corporations controlled by AI Holdings (USA) Corp with Tamir Kazaz as chief financial officer, paid a combined $32.3 million, or $108 per square foot, for the land, which was acquired between August 1999 and March 2006, according to Miami-Dade County records.

The powerful Africa Israel fund controls AI Holdings (USA) Corp, according to a notarized document recorded with the deed.

"The purchase price works out to a gross premium of 21 percent for the seller minus expenses, and there have been many of them," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "For the buyer, the purchase price is 8 percent less than today's assessed value of $41.6 million, or $139 per square foot, for property tax purposes."

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Regulators Shut 2 Florida Banks, Lose $140 Million

Condo Vultures® Realty LLC — Tue, 11 Aug 2009 08:08:34 -0500

Regulators have seized three bank, two headquartered in Florida and one in Oregon, resulting in an estimated loss of $185 million to the Federal Deposit Insurance Corp.

First State Bank, a Sarasota, Fla.-based institution with assets of $463 million and deposits of $387 million, was shuttered on Friday, Aug. 7, producing a loss of $116 million to the FDIC's Deposit Insurance Fund. The FDIC ensures deposits up to $250,000 per account.

On that same day across town regulators were seizing the Community National Bank of Sarasota County, with assets of $97 million and deposits of $93 million. This failure resulted in a loss of $24 million to the FDIC's Deposit Insurance Fund.

The deposits of both Sarasota banks were assumed by Stearns Bank of St. Cloud, Minn. This is not the first time that the FDIC has worked out a deal with Stearns Bank to assume the deposits of a failed institution.

In June, Stearns Bank took over the deposits of the failed Minnesota institution Horizon Bank with assets of $87.6 million and deposits of $69.4 million.

For the year, regulators have seized six Florida-based institutions with combined assets of $14.2 billion and deposits of $9.8 billion. The six Florida bank failures of 2009 have resulted in an estimated loss of $5.4 billion, according to CondoVultures.com research based on FDIC data.

Florida ranks fourth in the country in 2009 for the greatest number of bank failures behind Georgia's 16 closings, Illinois' 13 closings, and California's eight closings, according to the Bal Harbour, Fla.-based consultancy Condo Vultures®.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

FDIC Prepares To Open Failed Bank Office Next Month In Florida

Condo Vultures® Realty LLC — Fri, 07 Aug 2009 09:22:48 -0500

Federal regulators are staffing up for next month's scheduled opening of what is poised to be a 500-person bank failure and asset sales office in Florida.

The Federal Deposit Insurance Corp, which insures individual accounts up to $250,000, plans to open a "temporary" east coast office on Jacksonville's south side of town in September.

"Throughout its history, the FDIC has used these offices to keep temporary asset resolution staff closer to the concentration of failed bank assets they oversee," according to an FDIC statement. "As the work diminishes, the temporary satellite offices are closed."

Industry watchers expect a surge of bank failures to occur in Florida in the upcoming months as the sunshine state is one of the hardest hit real estate markets yet only six of the 94 FDIC institutions to fail since January 2008 have been headquartered in Florida.

By comparison, neighboring Georgia leads the nation in bank failures with 21 seizures, or 22 percent of the overall total closings, since 2008, according to Condo Vultures® LLC research based on FDIC data.

The FDIC's satellite office is viewed by many industry watchers as further proof that a series of Florida bank failures is imminent in the upcoming months. The FDIC is not dispelling the speculation.

"You put the office as close to the bulk of your work," FDIC spokesman David Barr told CondoVultures.com.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Free First-Time Home Buyers Seminar On Tuesday

Condo Vultures® Realty LLC — Mon, 27 Jul 2009 08:57:24 -0500

Individuals planning to attend Tuesday's First-Time Home Buyers Dos and Don'ts seminar are encouraged to register as soon as possible for the free event given the strong response.

With the $8,000 first-time home buyers federal tax credit scheduled to expire in November, many purchasers are scrambling to figure out how to qualify for the Obama administration incentive before the offer disappears.

Many of the answers will be provided at Tuesday's Condo Vultures® seminar on what every first-time home buyer needs to know before purchasing a deeply discounted residence in South Florida.

"The combination of the Obama tax credit and decreasing inventory in the $350,000 and under category is making this a competitive time for buyers in South Florida, especially on product located in coastal areas," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Bulk Deal Closes At 94% Discount In South Florida

Condo Vultures® Realty LLC — Sun, 26 Jul 2009 15:42:12 -0500

A South Florida private equity group purchased 51 new, oceanfront condo-hotel units in the luxury One Bal Harbour complex at $63 per square foot, a discount of 94 percent off of the $1,100 per square foot average recorded sales price, according to a new report from Condo Vultures® LLC.

Elcom Condominium LLC with Jorge E. Arevalo and Thomas D. Sullivan in South Miami paid $2.6 million for 41,047 square feet of saleable space in the 124-unit Regent Hotel tower located on the west side of the 26-story, trophy complex in exclusive Bal Harbour.

Bankrupt residential development company WCI Communities, Inc., based in Bonita Springs, Fla., was the seller of the condo-hotel with 106,051 saleable square feet. WCI's chief restructuring officer Jonathan Pertchik signed the deed.

"Nearly 60 percent of the One Bal Harbour condo-hotel project closed at an average price of $1 million per unit before Elcom Condominium stole the remaining 40 percent of this high-end project for $51,000 per unit," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Condo-hotels are not for everyone but at $63 per square foot one has to think there are buyers for this quality of product at that price."

This is the eighth bulk deal - and second in Bal Harbour - of new or significantly improved residential product to close since July 2008, according to the Condo Vultures® Bulk Deals Database. Four deals have closed in Greater Downtown Miami and an additional two transactions have closed in West Palm Beach.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Bank Foreclosing Oceanfront Site Seized By Federal Regulators

Condo Vultures® Realty LLC — Wed, 22 Jul 2009 20:24:42 -0500

Federal regulators have seized the South Dakota bank foreclosing on a nearly $12 million oceanfront condo development site in Greater Miami Beach.

BankFirst of Sioux Falls, S.D., was shut on Friday, July 17, less than a month after the 14-year-old institution filed to foreclose on a 1.1-acre site development site located between Collins Avenue (State Road A1A) and the Atlantic Ocean.

A 43-story tower featuring one unit per floor is proposed for the site located in the northeast Miami-Dade County city of Sunny Isles Beach, according to a CondoVultures.com article.

The Federal Deposit Insurance Corp. estimates losses of $91 million from BankFirst's failure. Prior to shuttering the two-branch bank with assets of $275 million, regulators entered into a purchase agreement for BankFirst's $177 million loan portfolio to be acquired by Beal Bank Nevada in Las Vegas.

BankFirst filed the foreclosure action, also known as a Lis Pendens and/or Notice of Default, in Miami-Dade Circuit Court on June 17 seeking repayment of $11.7 million on a predevelopment loan originated in 2006, according to the Condo Vultures® Foreclosure Database^TM.

Originally purchased for $9 million, or $181 per square foot, in July 2001, the 49,830-square-foot development site is now assessed for tax purposes at $15.7 million, or $315 per square foot, by Miami-Dade County. BankFirst's loan was made at $235 per square foot.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

South Florida Bank Repossessions Fall 16% In Q2 of 2009

Condo Vultures® Realty LLC — Fri, 17 Jul 2009 10:33:05 -0500

Banks repossessed 16 percent fewer South Florida properties in the second quarter of this year than were seized during the same period a year ago despite an increased number of foreclosure filings in the tricounty region, according to a new report from Condo Vultures® LLC.

Lenders repossessed 5,992 properties in Miami-Dade, Broward, and Palm Beach counties between April and June of 2009 compared to seizing 7,098 properties in the second quarter of 2008. In 2007, lenders seized 2,167 South Florida properties in the second quarter, according to the report produced using court records.

"Government intervention - whether it be foreclosure moratoriums or mortgage modification programs - is the primary reason for the decrease in the number of repossessed properties," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "That being said, the number of foreclosure filings are back on the rise in the tricounty South Florida region. It is difficult to predict if the foreclosure actions will ultimately end up as Real Estate Owned by banks known as REOs or simply nonperforming mortgages."

More than 52,000 foreclosures have been initiated in South Florida in the first half of the year, putting the tricounty region on pace for more than 100,000 actions in 2009.

By comparison, lenders filed about 38,000 foreclosures actions in the first six months of 2008 and more than 75,000 actions for the year. In 2007, banks filed nearly 8,000 actions in the first half of the year and more than 32,000 for the year, according to data from the Condo Vultures® Foreclosure Database^TM.

Another factor contributing to the decreasing number of bank repossessions in South Florida despite the increasing number of foreclosure filings is the lengthy legal process necessary before a lender can repossess a residence.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

South Dakota Bank Files $12M Foreclosure On Oceanfront Site In Miami Beach Area

Condo Vultures® Realty LLC — Thu, 16 Jul 2009 08:49:30 -0500

A $12 million foreclosure action has been launched against an oceanfront development site in Sunny Isles Beach that is to house a proposed 43-story luxury condominium tower featuring only one unit per floor, according to the Condo Vultures® Foreclosure Database^TM.

BankFirst of Sioux Falls, S.D., filed the foreclosure action, also known as a Lis Pendens and/or Notice of Default, in Miami-Dade Circuit Court seeking repayment of $11.7 million on a predevelopment loan originated in 2006. BankFirst's loan is secured by a 1.1-acre development site located between Collins Avenue (State Road A1A) and the Atlantic Ocean.

Originally purchased for $9 million, or $181 per square foot, in July 2001, the 49,830-square-foot development site is now assessed for tax purposes at $15.7 million, or $315 per square foot, by Miami-Dade County. BankFirst's loan was made at $235 per square foot.

"This is not the first oceanfront development site to go into foreclosure in Greater Miami Beach," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "A courthouse auction is scheduled for September on a slightly larger development site also located between Collins Avenue and the Atlantic Ocean. The judgment amount on that site, however, is twice as much."

A few miles south on Collins Avenue, a 1.4-acre oceanfront property zoned for a high-rise condo tower in Sunny Isles Beach is scheduled to be auctioned off in the next 60 days to the highest all-cash bidder, according to CondoVultures.com.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

$40 Million For Chinese Drywall Repairs Set Aside By Miami Developer

Condo Vultures® Realty LLC — Tue, 14 Jul 2009 09:23:29 -0500

Early estimates in response to dozens of lawsuits have determined that defective Chinese drywall is present in at least two percent of the 20,000 single-family houses developed in Florida between 2006 and 2007 by Miami-based homebuilder Lennar Corp.

The number of defective residences may grow even higher as Lennar's research has just begun to determine how many other homes the Miami company built in earlier years in Florida that contain Chinese drywall, which causes metal corrosion, foul smells, and physical irritation to some individuals.

Lennar initiated the research for Chinese drywall in response to 43 lawsuits from homeowners that have been filed against the homebuilder in state and federal courts.

"The company is currently unable to reasonably estimate its future exposure relating to defective Chinese drywall," according to Lennar's second quarter filing with the Securities and Exchange Commission. "However, the company is continuing its investigation of homes it delivered during the relevant time period in order to determine whether there are additional homes, not yet inspected, with defective Chinese drywall and resulting damage."

Based on the initial findings, Lennar has set aside nearly $40 million to repair about 400 single-family houses in Florida with the defective drywall but is prepared to increase that amount based on future findings, according to the SEC filing.

Florida is estimated to have about one-third of the 100,000 single-family homes constructed nationwide with defective Chinese drywall, according to CondoVultures.com.

This estimate does not include defective Chinese drywall that may have been used to build out some of the high-rise condo towers that were developed throughout the state during the boom years of 2003 to 2007.

At least one high-end condo tower in Greater Miami is known to have defective Chinese drywall present and several other new skyscrapers are suspected of also having the defect present, said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

$26 Million Oceanfront, High-Rise Site To Be Auctioned

Condo Vultures® Realty LLC — Wed, 08 Jul 2009 08:47:57 -0500

A 1.4-acre oceanfront property zoned for a high-rise condo tower in Sunny Isles Beach is scheduled to be auctioned off in the next 60 days to the highest all-cash bidder at the Miami-Dade County Courthouse, according to Condo Vultures.com.

A final judgment amount of nearly $26.3 million, or $419 per square foot, was established for the property on July 6 by Miami-Dade Circuit Court Judge Ronald Dresnick.

If the borrower fails to satisfy the loan by the auction date, the 62,800-square-foot property with 300 feet of Atlantic Ocean access would be sold to the highest bidder who surpasses the final judgment amount.

"To purchase a property at the Miami-Dade County courthouse steps, a buyer must be able to pay the entire amount of the winning bid on the day of the auction," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "There aren't a lot of buyers with the wherewithal to close all cash that day but then again you never really know for sure in an international city like Miami."

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami^TM and Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

4th Bulk Condo Deal Closes In Downtown Miami

Condo Vultures® Realty LLC — Tue, 07 Jul 2009 11:49:19 -0500

A Miami Beach company headed by Jorge Mattos has purchased 21 units in the Marina Blue condominium tower in Downtown Miami for $5.69 million in an all-cash deal involving the project's former mezzanine lender, according to a new report from Condo Vultures® LLC.

A newly formed Florida corporation called 21 Marina Blue LLC with Mattos as the manager purchased 13 two bedroom units, seven one-bedroom units, and a three-bedroom penthouse for a blended price of $196 per square foot on a deal that was recorded on June 23, according to Condo Vultures® research.

Mattos is a business partner of Carlos Mattos who purchased 31 units for $6.1 million in mid-June at the 1060 Brickell condominium tower in Miami's Brickell Avenue financial district, according to a recent Condo Vultures® report.

Carlos Mattos' 1060 Brickell Apartments LLC paid $203 per square foot for four studio units, 22 one-bedroom units, and five two-bedroom units with a combined 29,913 square feet of livable space, according to Condo Vultures®.

"This is the second bulk deal to close in the Greater Downtown Miami area in the last month," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures. "Once again, the buyer is a private equity group with roots and investments in South Florida."

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Related Group Negotiates Return Of Unsold Condo Towers

Condo Vultures® Realty LLC — Fri, 03 Jul 2009 19:46:52 -0500

The Related Group, the nation's largest condo tower developer, is attempting in the next two months to finalize plans to return thousands of unsold new units with debt of "roughly $1.5 billion" to the construction lenders, according to Miami news reports.

The admission comes just as the Related Group has agreed to relinquish ownership to its lenders of the remaining 381 unsold units in the 420-unit, 20-story CityPlace South Tower in Downtown West Palm Beach. Related had still owed about $119 million, or about 88 percent, of the original $134.7 million construction loan, according to South Florida news reports.

"We've had very good discussions over the last seven months with all of our lender syndicates," Related Group's chief operating officer Matt Allen told the Miami Daily Business Review. "Each syndicate is different. They have different goals they might want to achieve, and we expect in 60 days to have complete resolution and that resolution can carry many different fronts."

Related developed or converted dozens of highrises with several thousand units throughout Florida, ranging from the Apogee in Miami Beach's South of Fifth neighborhood to the Trump Hollywood in Southeast Broward County, the Oasis in Fort Myers on the Gulf of Mexico to the ICON Brickell complex in Greater Downtown Miami.

In Downtown Miami alone, the Related Group built during the condo boom about 5,550 units, of which the company is still in possession of more than 2,400 units, or about 44 percent, according to the Official Condo Buyers Guide to Miami^TM published by Condo Vultures®.

Specifically in Downtown Miami, Related built seven projects with 12 towers and more than 5.8 million gross livable square feet. An eight project proposed for 495 units and 389,000 gross livable square feet was shelved before construction began, according to Condo Vultures®.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Downtown Miami Condo Closings Slow By Half In 2nd Quarter

Condo Vultures® Realty LLC — Wed, 01 Jul 2009 07:48:47 -0500

The pace of new condo closings in Greater Downtown Miami slowed by half in the second quarter of 2009 to 2.7 sales per day, down from an average of 5.2 per deals day in the first quarter of the year, according to a new report from Condo Vultures® LLC.

Buyers purchased 246 units in the 60-block stretch of Greater Downtown Miami between April and June. In the two previous quarters, buyers closed on 466 new Downtown Miami units between January and March, and 441 units between October and December, respectively, according to the Condo Vultures® report based on the Official Condo Buyers Guide To Miami^TM.
"A majority of the second quarter closings occurred in three projects: Marina Blue, 1060 Brickell, and the south tower of Brickell on the River," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Price reductions were the common denominator triggering the increased closing activity in all three condo projects. With financing difficult to obtain in Downtown Miami, all-cash buyers are proving that they are ready to purchase if the price is right."

With the increased activity, Marina Blue - where a bulk deal occurred in December 2008 - is now 99.4 percent closed with only a handful of units of the 516-unit project still in the name of the developer.

The south tower of Brickell on the River is now 70.3 percent closed with less than 100 units in the 327-unit tower available.

At the 1060 Brickell condominium, the developer has closed nearly 350 units - 31 units of which closed in a bulk deal in June - out of 576 units for a sellout rate of 59 percent, according to the Condo Vultures® report.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

South Florida Average Discount Reaches 54%

Condo Vultures® Realty LLC — Tue, 30 Jun 2009 09:13:11 -0500

Nearly 900 residences in the Vultures Database^TM have closed in the first five months of 2009 at an average discount of $357,500, or nearly 54 percent, a dramatic change from the average price reductions of 44 percent in 2008 and 29 percent in 2007, according to a new report from Condo Vultures® LLC.

Buyers closed 232 single-family houses, condos, and townhouses in the tri-county South Florida region of Miami-Dade, Broward, and Palm Beach counties in May for a daily average of 7.5 transactions. In April, buyers closed an average of 7.0 properties per day. The running average in the first five months of 2009 is 5.9 closings per day on properties in the Vultures Database^TM, according to the report.

"Discount investors and first-time home buyers are having a noticeable impact on the coastal residential real estate market in South Florida," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Half of the transactions involving properties in the Vultures Database^TM have closed in the last two months. We anticipate the pace will continue at the same level, if not stronger, throughout the summer if conditions remains the same."

In its third year of monitoring South Florida discounts, the Vultures Database^TM is comprised of nearly 3,800 condos, townhouses, and single-family houses actively for sale east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties that have been reduced in price by at least 10 percent and/or $100,000.

Discounts are proving to be the single-most important factor in determining whether a property is sold or not. With conventional financing difficult to obtain, the majority of today's buyers are selectively purchasing with cash or the assistance of government-backed programs, such as the Obama $8,000 tax credit for first-time home buyers.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Fort Lauderdale Inventory Down 30% In 7 Months

Condo Vultures® Realty LLC — Mon, 29 Jun 2009 13:30:05 -0500

Resale residential inventory in the Greater Fort Lauderdale area is shrinking at a faster rate than is the case for the South Florida region, according to a new report from Condo Vultures® LLC.

Resale inventory in Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, is down 30 percent to nearly 26,000 single-family houses, condos, and townhouses in the last seven months dating back to Thanksgiving week.

By comparison, South Florida inventory is down 25 percent for the tri-county region. Resale inventory has fallen by 26 percent in Miami-Dade County, where Miami Beach, Coral Gables, and Aventura are located, and by 19 percent in Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, according to the report created using Florida Association of Realtors data.

"Broward County is South Florida's middle ground in terms of location and price point between expensive Miami and more reasonably priced West Palm Beach," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "It is not uncommon for dual-income families to have one person working in the Miami area and the other in Broward and/or Palm Beach. In these situations, Broward is often times the place where the families ultimately decide to buy given the lower price compared to Miami."

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Short Sales Account For 31% Of South Florida Properties For Sale

Condo Vultures® Realty LLC — Sat, 27 Jun 2009 12:18:06 -0500

BY WILLIAM BETANCOURT

There were a total of 83,445 residences listed for sale in South Florida as of June 12th, 2009. Of that, 25,814, or 31 percent are in some stage of the short sale process, according to a new report based on the Condo Vultures® Foreclosure Database^TM.

"The month of May proved to be busy at the courthouse recording office accounting for 1,899 new Lis Pendens filings in Miami-Dade County, 4,442 filings in Broward County, and 2,661 filings in Palm Beach counties, respectively," said William Betancourt, a licensed Florida real estate agent and short sale specialist with Condo Vultures® Realty LLC. "The real story is the 2,866 filings in Miami-Dade, 4,223 filings in Broward, and 2,029 filings in Palm Beach in the previous month of April and what June has in store ending the second quarter with more distressed inventory. The spike isn't likely to continue to rise.

"However, we will still see a continuing stream of filings throughout the remaining two quarters."

Over the past two months, 18,120 new properties are in pre-foreclosure in the three counties. Broward County accounts for 47.8 percent of the new filings, with Dade at 26.3 percent and Palm Beach County with the remaining 25.9 percent, according to the Condo Vultures® Foreclosure Database^TM, which tracks the filing of Lis Pendens notices through court records since January 1st, 2007.

To date, the database contains more than 158,000 filings.

Read More

Bank Regulators Hold Key To Lending Rebound In Florida

Condo Vultures® Realty LLC — Fri, 26 Jun 2009 12:40:31 -0500

BY JIM FREER
Special Correspondent
CondoVultures.com

It's not just bankers who will determine when the residential and commercial real estate markets will begin a rebound in Florida and around the country.

Bank regulators always have major influence on banks' overall strategies, and they have been taking actions that likely will result in many banks remaining cautious on lending for the remainder of this year.

As part of a stepped-up review process they began approximately two years ago, federal and state banking regulators are telling many banks to keep adding to their reserves to cover potential loan losses, experts tell CondoVultures.com.

Those additions to reserves are taken from a bank's quarterly earnings, or from capital during quarters when there are no profits.

That review of loan quality is part of what some bankers say is regulators being figuratively "in banks" that are having earnings problems. In some cases, they are instructing banks on lending strategies but not necessarily on making individual loans.

Regulators also are telling some banks to raise capital or reduce assets, to improve their capital-to-asset ratios.

For many banks that means making fewer loans and reducing asset size as other loans are paid off.

Read More

Chinese Drywall Impact 'Huge' On Florida Valuations

Condo Vultures® Realty LLC — Thu, 25 Jun 2009 09:18:59 -0500

BY ERIK BOJNANSKY
Special Correspondent
CondoVultures.com

Eight months ago, hardly anyone knew or cared about Chinese drywall. And eight months later, the full impact of this imported building material that has been blamed for metal corrosion, electrical mishaps and health problems is still unknown, according to CondoVultures.com.

Most agree, however, that Chinese drywall will have a huge negative impact on South Florida's already troubled real estate market and any home built with significant amounts of it may be worthless.

"It's a huge problem," said Randall Jimenez, owner of Under Pressure Home Services, a Fort Lauderdale company that cleans up and manages foreclosed homes for banks. "No one has real answers to this problem and no one wants to say anything yet."

The true number of homes constructed with Chinese drywall remains uncertain but estimates suggest that between 35,000 and 100,000 homes and commercial properties across the United States, Canada and the Bahamas were made from this material.

The adverse affects of Chinese drywall was first discovered in homes located within the Sunshine State in January 2009.

Colson Hicks Eidson attorney Elvin Gonzalez, who has been representing hundreds of clients with drywall problems, suspects there may be 35,000 homes infected in Florida alone with large pockets in Miami-Dade, Broward and Palm Beach counties.

"Broward is very, very hard hit," Gonzalez said.

Read More

South Florida Inventory Falls 1.1% To 81,000 Residences

Condo Vultures® Realty LLC — Wed, 24 Jun 2009 07:23:12 -0500

South Florida residential real estate inventory dropped by 1.1 percent in the last week, dragging the total number of resales available down to 81,159 properties, according to a new report from Condo Vultures® LLC.

Residential resale inventory slipped by 888 properties between June 15 and June 22 for an average decreased of 127 properties per day. On June 1, there were 83,491 residential resales on the market in the tri-county region of Miami-Dade, Broward, and Palm Beach counties, according to the report compiled using data from the Florida Association of Realtors.

"The single-family house inventory is shrinking at a faster pace than the condo and townhouse market," said Peter Zalewski, a principal with Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Condo and townhouses now represent about 61 percent of the total South Florida inventory. Back in November, condos and townhouses represented 57 percent of the overall residential inventory in South Florida."

On a county-by-county basis, Broward has the fewest number of single-family houses available for resale with 10,179 properties, or 32 percent of the total South Florida inventory of 32,125.

Miami-Dade and Palm Beach are in a tie in percentage terms with each accounting for 34 percent of the remaining single-family house inventory. Palm Beach, with a population of about 1.1 million, has 10,888 houses for sale compared to 11,058 houses on the resale market in Miami-Dade, with a population of 2.5 million, according to the Condo Vultures® report.

Read More

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

Bulk Condo Deal Closes In Greater Downtown Miami

Condo Vultures® Realty LLC — Mon, 22 Jun 2009 21:56:46 -0500

A Miami entity headed by Carlos Mattos paid $203 per square foot for 31 units at the 1060 Brickell condominium in Miami's financial district, according to Condo Vultures® LLC.

Mattos' newly created 1060 Brickell Apartments LLC paid nearly $6.1 million without financing for four studio units, 22 one-bedroom units, and five two-bedroom units with a combined 29,913 square feet of livable space, according to Condo Vultures® LLC.

"We have reason to believe that 1060 Brickell has about 200 units under contract and/or closing as we speak," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "In the last week, 1060 has closed 58 units including the 31 from this bulk deal. It will be interesting to see what our second quarter closing rate report for new condos in Greater Downtown Miami will show."

read more>>

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

NAR Chief Economist: South Florida Real Estate Market At Bottom

Condo Vultures® Realty LLC — Thu, 18 Jun 2009 18:06:16 -0500

The South Florida residential real estate market is at bottom and likely to experience some appreciation within a year, the National Association of Realtors Chief Economist Dr. Lawrence Yun said.

"I think the prices have already pretty much bottomed in the South Florida market," Yun said. "The rest of the country is more difficult to say but I think here, given the buyers, the prices have already bottomed in Florida."

Yun made the declaration (Watch The Video) on June 11 during a keynote address to a lunch crowd of the International Real Estate Congress and Expo. The event was hosted by the Realtors Association of Greater Miami and the Beaches at the Biltmore Hotel in Coral Gables.

Yun's keynote address preceded a panel discussion on the South Florida real estate market with Peter Zalewski, founder of Condo Vultures® LLC; Rei Mesa of Prudential Florida Realty; Oliver Ruiz of Fortune International Realty; and Ron Shuffield of EWM.

Given the growing number of residential deals occurring in South Florida despite no readily available financing, Yun projects that today's buyers could actually realize some home price appreciation as soon as next year when credit is expected to be available once again.

"Soon you will reach the point of equilibrium where home prices begin to show growth," Yun said. "It is always difficult to precisely predict. I think that many people who are buying today in this month - June of 2009 - if they look back a year from now in June 2010, I think many people will see that they have actually gained in equity."

Yun cautioned that the South Florida market conditions - a diverse community with limited developable land, attractive weather, and an international appeal - give the region an advantage over many other areas in the United States.

"There will be some premium attached to Miami, in relation to say Atlanta, Birmingham, and others," Yun said. "So the price point in Miami will be much stronger when compared to other, say, southern states across the country or even say the rest of America. For that reason, I am very hopeful that currently it is an undervalued market.

"Buyers are recognizing [that]. Sales up about 100 percent from one year before."

Yun's comments come a month after national real estate analyst Jack McCabe of McCabe Research & Consulting in Deerfield Beach, Fla., told CondoVultures.com that he thinks South Florida residential prices are within 15 percent of the bottom.

McCabe, who began warning of a Florida housing bust in 2005, projects the South Florida residential real estate bottom will be reached by the summer of 2010.

"I think the worst is behind us, but I still believe we have another 10 to 15 percent drop because of the unemployment and the foreclosures depressing prices, and the amount of inventory we have yet to absorb," McCabe told CondoVultures.com.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

South Florida Rental Rates Seminar Tonight

Condo Vultures® Realty LLC — Tue, 16 Jun 2009 08:40:09 -0500

Looking to invest in South Florida residential real estate but not sure where rental rates are heading? Struggling to find a double-digit cap rate to justify an investment?

Many of these questions will be addressed by a five-member panel of South Florida experts convening between 5.30 pm and 8 pm tonight, June 16, to discuss "Rental Rates and the Quest For Double Digit Cap Rates" at the Doubletree Grand Hotel just north of Downtown Miami. The program features a networking session, panel discussion, and question and answer period with the panel.

Condo Vultures® principal Peter Zalewski will moderate the discussion about the current and future trends in South Florida's rental market from an investor's perspective.

Joining Zalewski on the panel are:

- James Donnelly, the president and chief executive of the Castle Group condo association management company;

- Jack McCabe, a national real estate analyst with McCabe Research & Consulting;

- Alan Ojeda, developer of the Miami high-rise rental tower One Broadway;

- and Raul Valdes-Fauli, Miami-Dade County president of CNL Bank.

For more information, please visit the Upcoming Events page at CondoVultures.com or call 800-750-0517.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

South Florida Real Estate Market Rebounding: Industry Watchers

Condo Vultures® Realty LLC — Mon, 15 Jun 2009 10:31:01 -0500

BY ERIK BOJNANSKY
Special Correspondent
CondoVultures.com

Happy days are here again, acclaim Realtors and analysts interviewed by CondoVultures.com, as recent data suggest a significant increase in South Florida home purchases and a decrease in residential inventory.

Well, maybe relief and cautious optimism are better descriptions of how many Florida real estate agents are currently feeling.

South Florida's inventory of condos, townhouses and single-family homes has fallen by nearly 24 percent in seven months. On Nov. 24 there were 107,527 residences available for resale. As of June 15, there were only 82,047 -- a reduction of 25,480. Meanwhile pending sales in South Florida have increased by more than 68 percent between November 24 and June 15 from a total of 9,302 to 15,645, according to a new report released by CondoVultures.com.

"There is a percentage of the population that believes the bottom of the market has hit," said Jeff Morr, CEO of Majestic Properties. "Sales are way up."

Brian Paul, CEO of the Realtors® Association of the Palm Beaches , credited low home prices and the $8,000 federal tax credit for first-time home buyers for the increased buying trend, especially among those who couldn't afford buying a condo or a house two years ago. The prospect of rising interest rates has only increased the pace of home-buying, Paul said.

"Housing is affordable again," Paul said, "People are recognizing that and are getting into the market before they are priced out."

Situations are popping up where investors can, in some cases, collect more on rent than the property actually costs on a monthly basis. A five-person panel is scheduled for Tuesday, June 16, to discuss "Rental Rates and the Quest For Double-Digit Cap Rates" at the Doubletree Grand Hotel just north of Greater Downtown Miami.

Read More

First-Time Home Buyers Guide To South Florida Unveiled

Condo Vultures® Realty LLC — Sat, 13 Jun 2009 16:54:09 -0500

Are you a first-time home buyer who wants to take advantage of the deep discounts and the Obama $8,000 tax credit but are feeling overwhelmed by the process?

Are you unsure about which, if any, of the newly created local, state, and federal programs you qualify for?

Condo Vultures® had you in mind when it created the newly published First-Time Home Buyers Guide To South Florida^TM.

This 18-page eBook features a collection of articles about the process, pointing out the dos and don'ts in making your first home purchase.

For more information about the First-Time Home Buyers Guide To South Florida^TM, please visit the eBooks page of CondoVultures.com.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC

NAR Chief Economist, Condo Vultures® Founder To Appear On Housing Panel

Condo Vultures® Realty LLC — Fri, 12 Jun 2009 18:07:16 -0500

Dr. Lawrence Yun, chief economist of the National Association of Realtors, and Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC, will participate on a panel discussion on the state of the South Florida real estate market .

Yun and Zalewski are scheduled to speak at the Realtors Association of Greater Miami and the Beaches' International Business Luncheon between noon and 2 pm June 11 at the Biltmore Hotel in Coral Gables.

Rei Mesa, Prudential Florida Realty; Oliver Ruiz, Fortune International Realty; and Ron Shuffield, Esslinger - Wooten - Max well, Inc., are also scheduled to appear on the panel. Matt Haggman, an award-winning journalist with The Miami Herald will serve as moderator.

The luncheon is a highlight of the 14th International Real Estate Congress and Expo that draws a multinational audience from the Realtors Association of Greater Miami and the Beaches and its partners including SECOVI-SP and FENACI in Brazil, and FNAIM France.

"We are proud to be able to bring high-caliber speakers and programming to address international real estate trends and opportunities in South Florida," said Teresa King Kinney, RAMB Chief Executive officer, in a statement.

For those who can't attend the luncheon, Zalewski is scheduled to moderate a June 16 panel discussion entitled "Rental Rates and the Quest For Double-Digit Cap Rates" at the Doubletree Grand Hotel just north of Greater Downtown Miami.

Participating in the panel discussion, entitled "Rental Rates and the Quest For Double Digit Cap Rates", will be moderator Zalewski of Condo Vultures® along with:

- James Donnelly, president of the Castle Group condo association management company;

- Jack McCabe, national real estate analyst of McCabe Research & Consulting;

- Alan Ojeda, developer of the new Miami high-rise rental tower One Broadway;

- and Raul Valdes-Fauli, Miami-Dade County president of CNL Bank.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report^TM for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database^TM or our Video Gallery. Our new books, the Official Condo Buyers Guide to Miami^TM , Miami's Great Condo Crash: A Chronicle of the Boom and Bust^TM , and First-Time Home Buyers Guide To South Florida^TM are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database^TM.

Copyright © 2009, Condo Vultures® LLC