Investors guide2013final (1)

INVESTORS GUIDEBrickell and Miami Downtown Real Estate
THE DAVID SIDDONS GROUP
www.luxlifemiamiblog.com
2013

2 INVESTORS GUIDE 2013 DAVID SIDDONS GROUP, EWM REALTY INTERNATIONAL
An Investors Guide
his market report looks back at 2012
exploring the growth of the Brickell and
Downtown Miami real estate market.
From boom to bust to boom, the purpose
of this report is to provide the reader with a
better understanding of market prices, values
and purchase opportunities.
I would like to thank the DDA, EWM, and the
Florida Real Estate Association for providing
me with much of the information that went
into this report.
What is covered?
1. What happened in Brickell and Downtown in 2012
2. What’s new in Brickell and Downtown Miami
3. What to Consider when investing in Miami Condos
4. Infrastructural and social developments
in Brickell and Downtown
5. Brickell and Downtown Condos in detail
6. Appendix and references
T
Asia corner unit. Asia is currently trading at $855 per sqft.

What happened in Brickell/
Miami downtown in 2012?
Of key Importance, property prices increased in
Brickell and Downtown dramatically. 1 bed units
increased on average: 27.9%, 2 bedrooms: 24.5%,
3 bedrooms: 27.3% and 4 bedroom units 17.6%.
Visit: www.luxlifemiamiblog.com/condomarket or go to the
appendix for the complete table of data
The rental market increased significantly as the popula-
tion grew but the inventory of available units for the most
popular 1 and 2 bed units decreased on average 14%.
which in turn pushed rental prices up.
Visit: www.luxlifemiamiblog.com/rentalmarket or go to the
The speed at which properties sold also increased. As
demand increased over 2012 so properties sold on
average 35 days faster than sales of the year before. We
expect this trend to continue through 2013.
Visit: www.luxlifemiamiblog.com/condomarket or go to the
As we saw the rate of buying increase we saw
inventory drop drastically. Inventory is quite possibly
the most telling factor in a market’s future success.
If inventory falls below a critical point then prices can only
further increase. In Brickell inventory currently sits below a
level that maintains market balance and prices can only
increase through 2013.
$600
$500
$400
$300
$200
$100
$0
1 Bedroom
units
2 Bedroom
units
3 Bedroom
units
4 Bedroom
units
241
312
262
332
247
323
517
594
PRICES PER SQUARE FOOT2011 2012
Information derived from Florida MLS data.
Prices
increased by
17-27%
Rental Market
prices increased
up to
8.3%
Time on the Market
decreased by
22.5%
Decrease in
inventory for
2 bed units by
31%
A superb 3 bed unit at Epic. This building is currently trading at an average of $778 per sqft.

1. Midtown and Design District
Prices went from just $232 to $315 per sq.ft. in less than 1 year.
There is significant commercial development going on in the area.
2. Downtown
Prices rose on average from $297 to $365 per sq.ft.
Brickell is divided into 3 areas:
Brickell Key, Financial District, and Old Brickell
3. Brickell Key
There are no more condos to be built on the island. Over 2012,
there was a 15% price increase per sq.ft.
4. Financial District
Over 2012 prices per sq.ft jumped from $338 to $395, up 18%.
New condos being developed are: MyBrickell, 1100 Millecento,
Brickell House and the SLS Hotel and Residences in Brickell.
5. Old Brickell
Starting with sq.ft. prices in $200 range, these older condominiums
can offer excellent entry-level value.
NMiamiAve.
NMiamiAve.
BrickellAve.
BiscayneBlvd.
NE2Ave.
NW7Ave.
Midtown
Design District
Brickell Key
Old Brickell
Financial District
Downtown
Miami
SW 8 St.
NE 15 St.
Rickenbacker Causeway
NW 5 St.
NW 29 St.
SW
3
Ave.
S
M
iam
i Ave.
MacArthur Causewa
y
Julia Tuttle Causeway
Price change per sq.ft. over 2012
35%
30%
25%
20%
15%
10%
5%
0%
OldBrickell
FinancialDistrict
BrickellKey
MidtownandDesignDistrict
DowntownMiami
Information derived from Florida MLS data.
Miami, “The New Global City” as called
by the Wall street Journal, is home to:
• 60 International Banks
• 29 Consulates
• 26 Foreign Trade Offices
• 9 International Trade Organizations
• 8 International Chambers of Commerce

2002
Condos For Sale on 12/31 Condos Sold Annually
5,000
0
10,000
15,000
20,000
25,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Inventory and Sales
Miami-Dade County 2002 - 2012
UNITS
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
Q4 2005 Q4 2008 Q4 2012
Historic Condo Sales Prices/Sq.Ft
$334 $344
$434
$213
$257
$303
$338
$375
$462
Brickell
Brickell
Brickell
Midtown
Midtown
Midtown
DowntownMiami
DowntownMiami
DowntownMiami
1 Historic Brickell
2 Financial District
3 Brickell Key
4 Downtown
5 Midtown Design District
RETURN ON INVESTMENT
Moderate
Moderate/volatile
Moderate
Volatile
Volatile
TIMELINE
Short, Medium Long Term
Long Term
Long Term
RISK
Low
Low
Low
Medium
Medium
Condos For Sale 12/31
Condo Sold Annually
Months of Supply on 12/31
2002
6475
12204
6.4
2003
6260
12872
5.8
2004
5259
13897
4.5
2005
9643
15260
7.6
2006
19875
11932
20
2007
23517
7592
37.2
2008
22637
6731
40.4
2009
16169
10681
18.2
2010
15117
14161
12.8
2011
8651
17533
5.9
2012
7175
17361
5
The importance of Inventory
Market prices stabilize when inventory hold between
6 – 9 months of supply. Current inventory supplies are now
just below 5 months. Such a current short fall of inventory
can only result in an increase to residential property prices.
“Is this just another Real Estate Bubble?”, “With
prices increasing so rapidly, are we not destined
to another Market Collapse?”
BURNING QUESTION 1:
Answer: Real estate is a cyclical business and like any other
industry or market, it goes through periods of contractions
and expansions. As a Realtor I cannot tell you what will hap-
pen in 5 years but I can give you some market facts that
will give you more insight into the real estate cycle. Like any
other market the real estate market is never in equilibrium
and will fluctuate between excess inventory and shortfalls
in inventory due to changes in demand and supply of real
estate.
Demand for real estate in Miami in the last 2 years
literally exploded. Originally it was buyers looking to take
obvious advantage of units selling below construction cost.
In the last year demand for real estate has continued as
Miami Condos are still seen to provide excellent value to
buyers from the America’s market: Brazil, Argentina,
Mexico looking to invest in US property as well as many
from mainland Europe and the rest of the US.
Brickell and Downtown has not only attracted investors
but big businesses as it becomes the ‘business hub’ for
Latin America. As the population has boomed so rental rates
have increased dramatically further fueling the demand for
property that provides a much healthier return than other
investment mechanisms.
Interestingly as the mortgage market tightened its lending
parameters, so a large majority of buyers have been all or
mostly cash. New projects have required 40-50% down as
opposed to the previous market conditions of 2004 - 2007
where buyers were heavily relying on large mortgages to
make purchases. Combined with stronger infrastructural,
social and business developments in Brickell and Downtown
this has resulted in a much more robust property market.
Data taken from EWM Trendgraphics. Originally derived from the Florida tax rolls and MLS data combined.

What’s new in Brickell/ Miami Downtown?
Miami World Center
A nine block mix-used devel-
opment which will offer various
innovative, urban-style residences
including lofts, apartments and
condominiums.
Brickell House
374 units and a robotic parking garage. Units
will range from 400 sq.ft studios to 1775 sq.ft
penthouses. Set for completion in the first
quarter of 2015.
Resorts World Miami
The Genting Group $3 billion
project which includes two resi-
dential towers with 1000 units.
The plans to include a casino in
the mega project have now been
put on hold.
Brickell Citicentre
A $1.05-billion urban shopping
and mixed-use development with
two 42-story condo towers with
a total of 800 units. Estimates
ranging from 900- 2500 sq.ft and
priced between $450,000 and
$850,000.
One Bayfront Plaza
The 80 story plaza will offer 700 luxury
residences which are expected to be
completed in 2018.
NMiamiAve.
NMiamiAve.
BrickellAve.
BiscayneBlvd.
NE2Ave.
NW7Ave.
Midtown
Design District
Brickell Key
Old Brickell
Financial District
Downtown
Miami
SW 8 St.
NE 15 St.
Rickenbacker Causeway
NW 5 St.
NW 29 St.
SW
3
Ave.
S
M
iam
i Ave.
MacArthur Causewa
y
Julia Tuttle Causeway
1
2
3 4
5
6
7
89
10Appendix and references
Icon Bay
A 40 story, 300 unit development
with 1,2,3 bedrooms ranging
from 928 to 1530 sq.ft interior.
My Brickell
Set for completion November 2013, My Brickell
is a 27 story boutique building with 192 units.
1000 Museum
The skyline changing new residential tower of
World famous and prize winning architect Zaha
Hadid. Prices are estimated at $900/sq.ft.
Condos will cover half or the entire floor
starting at 4 million,
Penthouses at $30 million.
SLS hotel
A Philippe Starck designed
Hotel and Residential build-
ing with 1,2 and 3 bedroom
units. Prices start in the
low $400s per sq.ft. and
will range from 600 sq.ft to
1600 sq.ft units.
1100 Millecento Residences
A 42 story and 382 unit condo inspired by
designs of legendary Italian Automobile
designer Pininfarina. Currently under con-
struction. Set for completion in the third
quarter of 2014.
1
2
3
4
5
6
7
8
9
10
95% sold
Under plan
Under plan
Under plan
Under plan
90% sold
95% sold
Selling now
Under construction
95% sold

There is a huge variety of Condos in Brickell
and Downtown and the best deals are often
found not by generalizing a choice of one
Condo over another, but in the specifics of
a single unit. My role is to assist clients in
looking for specific unit opportunities and to
search for anomalies in the market that give
light to potentially excellent deals or risky
investments. Understanding key factors
and spotting these anomalies is essential in
choosing a wise investment.
1. Price per sq.ft
Price per sq.ft. is of course of key importance.
Buyers should be aware of the average price
per sq.ft. not just in their neighborhood but in
specific buildings. The chart on page 10 and
11 shows the average price per sqft for all
buildings in Downtown and Brickell.
Icon Brickell saw substancial increase in value
from 2011-2012. This is inpart due to its
enormous popularity with renters, and prices
were still considered cheap in 2011 in
comparison to other similar Condos.
Bristol Towers is a good example of a building in
excellent financial health. Unit 3302 is currently
for sale for $1,749,000.
2. Financial stability
Based on income levels and reserves held
within a Condominium. This will affect
changes in future maintenance costs and
if reserves held are too low this can result
in building assessments. Please call me for
the 2012 financial summary reports for any
specific Condo in Brickell or Downtown that
you may be interested in.
3. Maintenance Costs
Please refer to page 10 and 11 to see the
current maintenance fees for any of the
Brickell and Downtown Condos. Maintenance
is calculated on a per sq.ft. basis.
Carbonell Condo 2706 , 4/4.5, currently for
sale for $1.8 million, has one of the lowest
maintenance fees in Brickell. This is due to its
strong and establlished financial situation.
4. Location and Views
Miami has always been about water views.
As the city develops so these prices hold a
premium but also weather economic change
much better than city view units.
5. Amenities, Facilities and Services
Spa’s, state of art gyms, large lap pools,
concierge, restaurants are all highly
attractive to owners and renters alike and
make such buildings a top choice. However,
high levels of amenities can also mean higher
maintenance fees as the running costs of the
building are usually higher. Unique and Bou-
tique style features such as private elevators
can also help Condos appreciate well. In the
same way ‘overly generic’ units and Condos
can be far more vulnerable to market change
as there are hundreds of choices to potential
buyers in the future.
What to consider when investing in Miami condos.
All units at Paramount bay enjoys direct bay
views where owners can enjoy the city lights
of Miami beach and water views. Unit 1409 of
Paramount is currently for sale for $699,000.
Icon Brickell has the largest pool in North
America! Epic is home to Zuma and 2 other
award winning restaurants. Both have higher
than average maintenance fees, but in return
offer an exceptional level of services and
facilities.

6. Surrounding Developments
Values for units for sale in Midtown and
Downtown (such as Paramount Bay and
Icon Bay) have done very well on account
of the upsurge in new commercial and retail
developments within the Design district –
New supermarkets, designer stores, and over
a dozen top level new restaurants.
The new SLS in Brickell will follow the same
format as the new SLS in South Beach and
is currently selling pre construction with an
average price of $500 per sq.ft. This price is
expected to rise to $600 once the project is
physically completed.
Bay House - Midtown / Edgewater
Hot on the heels of the sold out Icon Bay
project in Downtown is Bay House. This
newest project from the Melo Group will
consist of 38 floors and 164 exclusive
residences. Read the full report on this
new project on my Blog site.
http://www.luxlifemiamiblog.com.
1000 Museum on Biscayne will be designed by Zaha Ahid, considered the worlds most famous
Architect. Heralded to have units selling from $4 million upwards, and set to redefine the luxury
Condo market in Downtown. Information on this project and all other new developments
can be found on my Blog site: http://www.luxlifemiamiblog.com.
Search Categories: Brickell and Downtown New Condos.
New Designer shops in the design district has
helped boost sales in Midtown2 and the new
Icon Bay Condo as seen here.
7. New developments
Buying a pre-construction unit is certainly
more of an unknown quantity than buying
an established Condo but can offer excellent
value as they can sell around 20% or more
below the price of the finished value.

Infrastructural and Social Developments within Brickell and
Downtown that will affect future sales and rentals.
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
1 Bedroom
units
2 Bedroom
units
3 Bedroom
units
4 Bedroom
units
4.4%
8.3%
2.0%
1.4%
Rental Increase per sq.ft. over 2012
Information derived from South Florida MLS data.
One of the most significant reasons why we
have seen such an increase in population
within Downtown and Brickell (population
grew from 71,800 to 78,000 between 2011-
2012) is that these neighborhoods have
become a much better place to live:
Better transportation:
The metro mover has extended from Brickell
directly to the airport. The Brickell Trolley, a
free trolley service around the neighborhood,
started last year and has been incredibly
popular.
Commercial development:
Significant amounts of Commercial buy up
have occurred in Brickell and Downtown with
18 million sq.ft. of class A and B office space
and 2.5 million sq.ft. of retail space. The Port
of Miami is chartering more than $2 billion
dollars in infrastructural development.
Over 2012 Commercial property in
midtown and downtown has in some cases
increased in value by over 30% as so many
businesses move into the ‘business hub of
Latin America’.
Infrastructure:
A new cinema and a new Wholefoods in
Downtown. The building of the new Art
Museum and History Musem (the biggest
in the whole of the US) also in Downtown.
New supermarkets in the Midtown area. 30
new restaurants in Downtown, Midtown and
Brickell have all opened in the last 12 months.
The new Brickell City Center with a host of
new retail stores as well the new designer
stores in midtown will continue to make this a
highly desirable neighborhood and add value
to the surrounding Condos.
Mary Brickell Village - seen as the center of Brickell will soon be joined by Brickell City Center
which will further expand the number of restaurant, shops and services to a neighborhood which
is currently growing in population by a staggering 10% per year.
Information derived from DDA Miami.

Brickell and Downtown Condos in Detail
Here you will find key information for ALL Condos in Brickell and
Downtown. We reveal changes in price per sq.ft. in the 12 months
from the end of 2011 to the end of 2012. This information has
been sourced directly from the South Florida MLS. We also reveal
current maintenance fee rates which is extremely important and
the health Grade of the buildings as provided by Condoreports.com.
BURNING QUESTION 2:
Answer: Those investors who were willing to take
a greater risk and invest in a pre-construction
project over the last year have yielded significant
financial returns on their investments, far in excess of
returns they would have otherwise yielded on
buying into an already established Condo.
Investors must be aware of a Developers track
record, financial stability, their payment structure
and the unique selling points of that project that will
enable it to stand out from the crowd. My Blogsite:
www.luxlifemiamiblog.com details ALL the new
Condo construction projects in the whole of Miami
Dade with prices, floorplans as well as how that
project compares to other existing Condos. The
golden rule I use is: ‘If it existed today how would
it compare in price to the competition?’ If an equal
quality unit sells at $600 per sq.ft. today and you
can buy pre construction at $450 per sq.ft. for the
same product or better you will see a significant
appreciation.
“Should I buy pre-construction?”
Carbonell

Source: MLS data, www.condoreport.com for Healthgrades.
The building health grade ranks from 0-100 and measures price trends and condo association stability. Generally speaking,
buildings with higher index readings are more stable than buildings with lower readings
Brickell and Downtown
Condominium Information
on www.luxlifemiami.com
Details of all the buildings can be found on
my website: www.luxlifemiami.com under the
tab “Featured Condos”. I feature all of the
major Miami condominiums and present the
reader with pictures, videos, floorplans and
information on amenities.
1450 Brickell, an all-office skyscraper on Brickell
Avenue

APPENDIX: Sales Analysis of 1,2,3,4 bedroom units in Brickell and Downtown Miami.
We analyzed the Brickell and Downtown area
by comparing the 4th quarter of 2011 sales
information with the 4th quarter of 2012 sales
information. We made a general analysis for
the greater Brickell/Downtown Area and a
more specific analysis focusing specifically
on Downtown Miami, Wynwood/Art District,
Brickell Financial District, Brickell Key and
Historic Brickell.
In order to be more accurate for budget and
investment purposes we analyzed 1,2,3 and
4 bedroom units separately.
Market Analysis Brickell/Downtown Miami
When comparing the 4th quarter of 2011
with the 4th quarter of 2012 it can be seen
that the amount of closed sales for 2 and 3
bedroom units increased with a significant
percentage. The (more scarce) 4 bedroom
units had the same amount of sold units in
Q4 2011 compared to Q4 2012 and
1 bedroom units sold 8.1% less than during
last quarter in 2011. This doesn’t
automatically mean there is less demand for
these units. Sales prices went up by 17.6%
to 27.9% (27% for 1 bedroom units) and
the average price per sq.ft, increased with a
minimum of 14.9% for 4 bedroom units and
with a maximum of 31% for 3 bedroom units.
Not only did properties increase in value they
were also less days on the market (15.1%-
26.9%) before being sold.
As can be seen from the availability of units,
the months of inventory in the last quarter of
2012 for 1, 2 and 3 bedroom units went down
by 31.3%, 4.9% and 12.7% respectively.
Applying the supply and demand theory on
these units, we can conclude that demand
for these units is still high as the inventory is
down and prices are increasing.
Only for 4 bedroom units the months of
inventory did increase by 30% to 13 months.
A 6-9 month inventory is considered normal.
Given that the inventory is higher than 6-9
months we are still finding ourselves in a buyers
market. The 1 and 2 bedroom unit market
is close to becoming a sellers market (low
months of inventory and decreasing levels
of available units) whereas 3 and 4 bedroom
units are still in a buyers market with higher
levels of inventory and more units for sale.
Information derived from Florida MLS and EWM Trendgraphics

APPENDIX: Rental Market Analysis of 1,2,3,4 bedroom units in Brickell and Downtown Miami.
From the table above it can be seen that the
price per sq.ft. increased for all types of rental
units in the Brickell and Downtown Market
over 2012.
In general it can be said that all units did
better than the year before regarding an
increased price of sq.ft. The months of
inventory decreased drastically for almost all
type of units to a level below 3 months.
Investors who would like to rent their invest-
ment properties out this analysis will only
become truly interesting when we include the
rental prices into the equator.
It can be concluded that the Brickell/Down-
town Miami Market is growing significantly
with inventory levels decreasing for almost
all types of units to a level below 3 months
and resulting in price increases over short
periods of time. From the table above it can be
seen that the price per sq.ft increased for all
types of rental units in the Brickell and Down-
town Market over 2012. The buying demand
for units in Brickell/Downtown Miami will be
stimulated by the increasing number of
new residents coming to Miami, the new
economical and demographical boost that
will be given to the city by projects such as
Resorts World and Brickell CitiCentre and the
economical and political instabilities in Europe
and South America help fuel the opinion that
the purchase of the Miami condo units often
make for a safe and profitable investment.

APPENDIX: Sales Market Analysis of 1,2,3,4 bedroom units
Brickell Key Condos Financial Distric Condos

Downtown Condos Wynwood/Design Districts

Old Brickell Condos

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