W South Beach construction drama arises from speculators noting substantial loss of value from inflated frenzy on a solid product. W South Beach IS one of a kind but with asking values averaging $1,968 per square foot for the month, the final product is now showing signs of distress from the speculator community (from 2006). The South Florida Business Journal published an article today on alleged deception in W Hotel South Beach (2201 Collins Avenue) with several unit owners suing for their deposits to be returned in their entireties. The alleged suit claims the developer promised 520+ units, larger sized units and a second pool at the stylish 420 unit condo hotel.
“The biggest problem at the W right now is the values have declined so substantially, and nobody will lend on that,” said Dennis Freeman, a Miami Beach attorney handling one of the cases.- S. Florida Business Journal
Whether or not he’s referring to the resale values or the hotel room rates (or both) was undetermined but these speculators are asking for the full 20% deposit returned which is unlikely to occur in my opinion. The biggest issue seems to be fewer number rooms than promised as the total ownership is based on the total number of condo hotel units and that percentage of space is used to determine the amount of monthly maintenance costs. In this case and in my opinion, today’s maintenance fees are relatively consistent with other condo hotels of South Beach or approximately $1.50 psf. Other complaints are the smaller than promised “rooms,” a door connecting rooms not disclosed, the elimination of the second pool to the number of trees planted outside.
As of March 2010, 53 deeds were recorded through Miami Dade County out of 420 total W SoBe condo hotel units. W South Beach still a very desirable property and a known celebrity hangout. The newest & latest is typically the hottest in South Beach as was The Setai in 2007. I expect it to do just fine over the next 3 years as values catch up with the market or the market catches up with values.
Some condos and hotels in Miami are having problems because of some financial and location issues that's why in choosing the best hotels in Miami, check those hotels and condo that can stand out and the owner itself can manage it well especially those people who works at the hotel.
These condo/hotel units will never appraise out. The current depressed market will not support these rediculous asking prices. There are high sales in the market, but their living areas are at least 500 to 1,000 square feet larger than those offered here. Most luxury highrise condo building have comparable amenities, so don't tell me that the hotel amenities are going to demand these rediculous $1725 per square feet price.
As of June 21st, 2010, 66 deeds are recorded through Dade County or 20% increase in 'closed' W Hotel units over March 2010 figures reflecting 53 sales. In the last 90 days alone, 16 luxury condos of South Beach have closed above $1,000 psf with the highest PSF sales at Setai reflecting $2,416psf and Fontainebleau II selling at $2,000psf!
It's good to be familiar with W prices (MLS Resales Ave.~ $1,830 psf) and I agree the rooms are small, however it's not about the amenities demanding these values. Rather the speculators looking for loopholes to get out at the contract prices. W South Beach buyers don't care about amenities so much as they “demand” service & exclusivity with the W name & reputation alone proving the very best clientèle.
Some condos and hotels in Miami are having problems because of some financial and location issues that's why in choosing the best hotels in Miami, check those hotels and condo that can stand out and the owner itself can manage it well especially those people who works at the hotel.
Comment by Miami Beach hotels — June 4, 2010 #
These condo/hotel units will never appraise out. The current depressed market will not support these rediculous asking prices. There are high sales in the market, but their living areas are at least 500 to 1,000 square feet larger than those offered here. Most luxury highrise condo building have comparable amenities, so don't tell me that the hotel amenities are going to demand these rediculous $1725 per square feet price.
Comment by Virtualusa — June 21, 2010 #
As of June 21st, 2010, 66 deeds are recorded through Dade County or 20% increase in 'closed' W Hotel units over March 2010 figures reflecting 53 sales. In the last 90 days alone, 16 luxury condos of South Beach have closed above $1,000 psf with the highest PSF sales at Setai reflecting $2,416psf and Fontainebleau II selling at $2,000psf!
It's good to be familiar with W prices (MLS Resales Ave.~ $1,830 psf) and I agree the rooms are small, however it's not about the amenities demanding these values. Rather the speculators looking for loopholes to get out at the contract prices. W South Beach buyers don't care about amenities so much as they “demand” service & exclusivity with the W name & reputation alone proving the very best clientèle.
Comment by AshtonC — June 21, 2010 #