Downtown Miami too hot for a Heat guard?

Miami /
Sep.September 23, 2013 10:00 AM

NBA superstar Dwyane Wade appears to be the latest victim of the rebounding South Florida condo market.

A month before the Miami Heat starts training in pursuit of three straight NBA titles, the all-star guard has apparently vacated his rented penthouse 4904 in the twin-tower Vizcayne condo, which is conveniently located down the street from the team’s home court at the American Airlines Arena. The departure of Wade clears the way for his landlord to sell off the triplex unit during a strengthening real estate market and just in time for the busy winter buying season.

I have been told that Wade lived in Vizcayne rent-free, lending his star power in exchange for an occasional crash pad.

Whatever the set-up, his former landlord — an entity controlled by New York hedge fund Rockwood Capital — is asking more than $2.6 million for the three-bedroom unit that it claims is nearly 3,300 square feet, or $806 per square feet.

Miami-Dade County lists the size of the unit at less than 3,005 square feet, and appraises it at less than half the sticker price — $1.1 million.

If Rockwood Capital is able to achieve such a premium for Wade’s formal rental, the transaction would rank as one of the most expensive deals ever in the 849-unit residential complex that was completed in 2008 as the South Florida condo market was collapsing.

Rockwood Capital did not build the Vizcayne –- originally named Everglades on the Bay –- instead acquiring 663 units out of U.S. bankruptcy court in a $142 million bulk deal in November 2010, according to Miami-Dade County records.

In the three years since the Vizcayne acquisition, Rockwood Capital has been working vigorously to try to sell off the units Rockwood Capital’s effort to sell its remaining five dozen units –- with a startling high eight-percent commission — offloading more than 600 units at an average price of $381 per square foot, according to government records up to Sept. 15.

In the first full year of sales in 2011, Rockwood Capital sold about 19 units per month at an average price of less than $315 per square foot. The following year, another 19 units per month were sold at an average price of $378 per square foot. In the first eight months of 2013, Rockwood Capital has sold slightly less than 18 units per month at an average price of $470 per square foot, according to government records.

Year to date, buyers have acquired about 25 units on the resale market at an average price of about $425 per square foot, according to the Southeast Florida MLXchange.

It remains unclear, however, whether investors will pay a premium for unsold developer units –- even if a sports star such as Wade once lived there — from the last South Florida real estate boom-and bust cycle when 40 new condo projects are in the pipeline.

Peter Zalewski is a special columnist for The Real Deal who founded the real estate consultancy and publishing company Condo Vultures LLC in March 2006. His analytics firm Condo Ratings Agency operates CraneSpotters.com in conjunction with the Miami Association of Realtors.


Related Articles

arrow_forward_ios
Art Basel Miami Beach (Illustration by the Real Deal with Getty, Master Brokers Forum)
South Florida by the numbers: Art Basel at 20
South Florida by the numbers: Art Basel at 20
The site at 1431 North Bayshore Drive with Genting CEO Lim Kok Thay (Genting)
Genting wants over $1B for waterfront Miami site
Genting wants over $1B for waterfront Miami site
Edna Buchanan with 400 W San Marino Drive
Crime writer Edna Buchanan sells Venetian Islands home for $12M
Crime writer Edna Buchanan sells Venetian Islands home for $12M
Sean Hannity with 9 Sloans Curve Drive (Getty, Google Maps)
Palm Beach green-lights addition for Sean Hannity’s oceanfront townhouse
Palm Beach green-lights addition for Sean Hannity’s oceanfront townhouse
First Quality Enterprises' Kambiz Damaghi along with a rendering of the two proposed residential towers next to MiamiCentral (Getty, First Quality Enterprises, Facebook/Clinton County Economic Partnership, Zyscovich)
Damaghi family buys resi tower dev sites next to MiamiCentral
Damaghi family buys resi tower dev sites next to MiamiCentral
French soccer player Paul Pogba and a rendering of Aria Reserve Miami in Miami's Edgewater neighborhood (Getty, Melo Group)
Consolation prize? Soccer pro Paul Pogba buying Miami condos
Consolation prize? Soccer pro Paul Pogba buying Miami condos
Aria's David Arditi with rendering of 501 Residences (Aria Development Group, Getty)
Aria JV scores $81M construction loan for downtown Miami condo project
Aria JV scores $81M construction loan for downtown Miami condo project
From left: Bel Invest's Maximillian Beltrame, Mast Capital's Camilo Miguel, and PMG's Ryan Shear (Getty; Illustration by Kevin Rebong for The Real Deal)
Life after FTX: What happens to the crypto buyer pool now?
Life after FTX: What happens to the crypto buyer pool now?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...