Miami News Blog

Riptide was feeling all warm and fuzzy this morning. No, it wasn't just from all the vodka in our coffee. (What, like you don't start your day with a little 'Russian java'?)

Flickr / CC BY-SA 2.0

​The latest employment numbers came out this morning, and it looks like our Kanye-on-the-VMAs-esque disaster of an economy is finally on the rebound. The ArmaRecession may finally be hitting rock bottom. Yay!

But then we talked to Peter Zalewski, head of Condo Vultures and both Riptide and Michael Moore's favorite messenger of doom on our housing market. Zalewski just released some new foreclosure numbers for the area, and damned if they didn't sober us right up out of our Moscow espresso haze.

On average, South Florida lenders filed foreclosure papers on 272 properties every single day last month, according to Zalewski's research.

"It's still a lot of foreclosures compared to past years," Zalewski says.

The October foreclosure-fest means that lenders in Broward, Palm Beach and Miami are on pace for 98,000 foreclosures this year -- a huge leap from the 33,000 they filed in 2007, according to Zalewski's research.

via tfdavis's Flickr

​If you're behind on your bills, you might not be able to shell out for a night at the swanky Shore Club. Though it seems the posh outpost is having trouble keeping up on its own mortgage. "A renovation of the hotel is in process, and there is a disagreement between the owner and the loan servicer regarding the servicer's funding obligations," a spokesperson told the Journal.

via The Truth About's Flickr

Nope, the Miami real estate market is not gearing up for a miraculous rebound. It's not even reached rock bottom, at least according to one analysis. CNNMoney reports that Fiserv, a financial information and analysis firm, predicts the average home price in Miami to tumble another 29.9 percent by next June. That would be the biggest fall in the country. Nationally home prices are expected to drop by 11.3 percent.

Fiserv predicts that the average home in Miami will only go for $142,000 by June 2011.

Though, CNN notes that the report is at odds with other recent reports that say home prices across the nation are beginning to stabilize.

[CNNMoney: Homes: About to get much cheaper]

Why do we suspect this guy is involved?

​We at Riptide, like all good Americans, dream of making an obscene amount of money without doing any work. So when signs recently began popping up alongside Miami roads, reading in bold red lettering, "Rent your home during the Super Bowl for $10,000 a day!" best believe we called the accompanying toll-free number.

We talked to Michael- - he didn't want to give his last name -- who ensured us the Super Bowl is "the biggest event in the world for short-term home rental." The target demographic: Those who can afford any hotel but would rather "feel homey" and avoid "the crowds of paparazzi." The entrepreneurs behind GlobalEventRental.com, as the company is named, clearly aren't the first to think of lucrative renting potential during Miami's Super Bowl in February. There are already scads of related listings on Craigslist, including this pimped-out 5,000-square-foot Pompano Beach pad with an asking price of $15,500 for a weeklong Super Bowl stay.

But as we asked more questions and dug around, we became a bit skeptical of GlobalEventRental.com, and not just because the website looks like it was designed by an 8-year-old. A few red flags:

• The "set-up cost" to have your home listed on the website -- if it rents, there's a commission as well -- is $1,195. Which is so much that when the operator told us it was "eleven ninety-five," we replied, "Eleven dollars and ninety-five cents?" which is a fee we'd like more. Oh, and it's nonrefundable, even if nobody rents your home.

• According to Arizona state documents, the Phoenix-based company was founded August 13. To be clear, that's just over a month ago -- not exactly a reliable pedigree.

• It has no Google presence and is so new that a search of its strip-mall address still brings up the website for the location's former tenant, Fetish Alive, a bondage emporium that specializes in "trampling," "toe sucking," and "foot worship." Which somehow makes us more nervous.

• Business doesn't look like it's booming. The site's listing of homes for rent consists of four houses, none of them impressive, with daily price tags ranging from $4,000 to $5,200. Michael tells us bluntly: "We're desperate for homes."

All told, we'd rather brave the Nigerian scammers of Craigslist -- but if you try this company and it works out, please let us know. We'd love to get thousands of dollars a day for our "rugged" 700-square-foot manse.

​Don't get us wrong -- Miami still attracts the olds by the tour bus full, but we've come a long way in distancing ourselves from our '70s reputation as America's retirement home. Then along comes Money magazine to list us as the 13th best place to retire in the nation. 

Last year, Fisher Island was sitting pretty at the top of Forbes' most expensive zip codes list. This year, it has tumbled to 33rd place. Not coincidently, the price for the only single-family waterfront home on the island was recently slashed by $3 million.

One of Miami Beach's most eccentric homes, a 10-bedroom, two-story mansion built in 1925 in the style of a medieval castle -- complete with moat, draw bridge, gargoyles, and turrets -- caught fire this morning. Firefighters got the blaze under control, but the AP's YouTube channel has this video of the blaze. The home has been unoccupied for the past two years.

Poor, ridiculously wealthy sports superstars. They just can't seem to break even on their real estate transactions here in Miami. Shaq recently unloaded his Star Island spread for $19 million less than his high asking pirce. Now, Alex Rodriguez is following suit by dropping the asking price on his Coral Gables abode by $5 million. 

via Last Nights Party

And, actually, I'm pretty sure Miami Beach retirees rocked this exact look minus the piercing back in the '80s.

Riptide has maybe one too many friends and acquaintances who call Williamsburg, the painfully trendy Brooklyn enclave commonly seen as ground zero for everything hipster, home. At the end of the day, we love them, but sometimes they talk with such jaded snootiness it recalls Brüno minus the affected Austrian accent. 

Vice Mayor Reinaldo Trujillo and Grandview Palace board president Sophia Lima claim Dr. Charles C. Edwards masterminded a scheme to "unlawfully take" $233,730.

In April, we brought you "Treasure Island", the story of big-time spine surgeon and developer Charles C. Edwards being accused of defrauding a North Bay Village condo building out of $233,000 that was supposed to go towards insuring the place.

In three sentences: in 2004, Charles and son James Edwards were two-thirds of the Grandview Palace's Board of Directors when the elder proclaimed to the building Condominium Association that he found an insurance company that would save the building thousands in premiums. What he didn't disclose is that the company, Florida Mutual Assurance, was founded by him that same day- and wasn't licensed to provide, you know, insurance. Perhaps more incriminating, two founding members of the corporation, a lawyer and an insurance agent, quit the day it was formed, with the agent explicitly warning Edwards that issuing insurance without a license "constituted a felony", according to a police report.

This all wasn't discovered until May, 2008, and this March, State Attorney's Office charged the company with organized fraud, grand theft in the first degree, and issuing insurance without a license -- indeed, all felonies.

Which is all well and good, but what about the players behind the company? Back then, State's Attorney hinted that they might never be charged, and Republican State Rep. Julio Robaina had lamented the precedent that might set:

"If you steal a car worth $233,000, you can bet you'll be charged with a felony. [This] sends a message to the rest of the country, saying, 'If you want to commit fraud, come to Miami-Dade County. The worst that will happen is you have to pay back the money you stole.'"

With the company's trial upcoming, it's official that the Edwardses will not be charged. Florida Mutual Assurance will face financial sanctions if convicted, but since it hasn't been active since 2005, it's unclear how it will be forced to pay, says Aaron R. Cohen, a lawyer representing the Condominium Association: "It would be a better use of the taxpayer's money if they refused to prosecute all together rather than prosecute a corporation that has no assets. It's basically a dissolved account. It's just a waste of time and resources."

image via BWE.tv

South Beach Condo Blog, which earlier reported Shaquille O'Neal's Star Island manse went for a deeply discounted $19 million, is now reporting the buyer is none other than Vladislav Doronin. Roughly translated from Russian, "Vladislav Doronin" means "Naomi Campbell's boyfriend." 

via Kevin Tomlinson

There once was a time, before the real estate crash, before the credit crunch, and before the global economic meltdown, when Shaquille O'Neal figured he could sell his Star Island mansion for between $32 and $35 million. That was 2005, and this is now. 

via Wikimedia Commons

We are not sure that many A-list celebrities actually know that anything in Miami exists behind the sunny shores of South Beach and Star Island. Sure, they fly into the airport, but then they're chauffeured in limos with tinted windows until they safely arrive in the drive way of their mansion or five star hotel.

That is slowly changing though, and the gossipers are reporting that Jennifer Lopez is contemplating buying a mega-condo in Icon Brickell at the Viceroy to compliment her home on Star Island we suppose. Hey, Andy Murray lives in Brickell too. Hot new celeb real estate trend alert!

The New York Daily News item about the home gossip though, could just as easily read as a well placed promo for Icon though. As in maybe J.Lo did check out the property, but an over zealous PR person may have gotten on the horn with a chance to herald their fancy, Philippe Starck designed property.

We assume Marc Anthony would be permitted to live in the condo as well. 

Poor Shaq. He has been trying to unload his Star Island mansion for nearly five years with little success. Is there no one out there right now who wants to buy a 200,000 waterfront mega-palace on a 2.5 acre lot?

He's cut his asking price by about 10% to a cool $22.5 million, according to The Wall Street Journal. Which is still a few million more than the $19 million he bought the place for back in 2004. At its peak price, Shaq's shack had a price tag of $35 million in 2007.

So far, Shaq has not twittered about the decision.

Hotel aficionados already know the name Vikram Chatwal, but for the rest of us, well, you might know him as the guy in the turban who stood behind Hansel during the runway-showdown scene in Zoolander.

Yes, he has a side job as an actor, but his main gig involves opening up exclusive hotels. It runs in the family -- his father founded Hampshire Hotels & Resorts.

Chatwal already has five hotels in New York City and one in Thailand, and is quickly expanding in India. But Dream South Beach will be the next hotel the scion opens. The company announced last fall that the Tudor and the Palmer House, at 1111 and 1119 Collins Avenue, will be combined for the new outpost, and it's is scheduled to open Labor Day this year. The property will also include a restaurant and a rooftop lounge. Here is your obligatory clichéd "let's hope the economy picks up by then" joke. 

via David Paul Ohmer's Flickr

This is a French Quarter. The world doesn't need another one.

Some geniuses in Miami Beach want to rebrand two areas in the city as "The French Quarter" (Normandy isles shopping district) and "The District" (shops along Collins near 8th ave). Problem is that one is already associated with various areas of world cities, while the other is entirely bland and not to mention frequently used. While it's true that "a rose by any other name is a rose," and as long as these areas retain their own unique characteristics it matters little, it is also true that just because roses are popular we do not start referring to tulips or daffodils as a rose. 

via Wikimedia Commons

With news that Bacardi will soon be moving to blander headquarters in blander Coral Gables, preservationists are making a preemptive move to ensure their iconic buildings in midtown Miami are protected with landmark status, even though neither is old enough to typically qualify. The Historic Preservation Board meets today to discuss the proposal; let's hope there won't be a hiccup despite the age issue. 

Miami and New York City have a weird symbiotic relationship. New Yorkers, jealous of our warm winters, come down in droves during the chilly months and eventually retire in a nice high rise on South Beach. Meanwhile, a strong contingent of Miamians with an inferiority complex or a civic identity problem keep proclaiming Miami is the next NYC.

The Miami Herald reports that two new downtown hotels, Epic Miami and the Viceroy, are trying to turn Downtown into "Manhattan South"

''You could be looking down here at dusk and you'd think you were on Madison Avenue or Michigan Avenue,'' Epic marketing director Eric Jellson said to the Herald.

Then, up in Long Island City a new rooftop lounge called The Ravel is opening this month, which aims to bring SoBe chic to Queens, according to New York's Grub Street.

All these shenanigans began when New York and Miami accidentally met at summer camp, realized they were long lost twins, and decided to switch places in order to get their separated parents back together through a series of wacky hijinks.

screencap from Google Maps

We've found the predicament of Midtown Miami to be quite interesting for a while now: noting its trouble both here on Riptide and in print. Now the Grey lady is weighing in on the development's slump in a piece that just went online:

"The bankruptcies of Circuit City and Linen 'n Things have emptied sizable spaces at the shopping center, leaving it only 76 percent occupied, Mr. Freddo said. At the same time, some larger tenants are exercising their right to get an adjustment in the rent because of the vacancies. Mr. Freddo said the company now had an opportunity to replace weak retailers with strong ones, but brokers said that might be hard."

...

"Like condo projects everywhere, Midtown has experienced a sharp decline in values. In 2007, 248 condos at 2 Midtown sold for an average of $404 a square foot, according to CondoReports.com, a Miami research service. By the first quarter of this year, the price had slipped to $275 a square foot."

The Times also credits midtown with reinventing the way people shop in the City of Miami. So, now that we've been magically reinvented by the power of development, maybe we can suggest ways Midtown can reinvent now that it has both spaces left by Linen N Things and Circuit City to fill. A bookstore and movie theater have been popular suggestions. A Whole Foods has also been suggested here in comments before. The chain pulled out of planed downtown location in December, but suggested other locations in Miami might be possible. As for the development's condo problems, well, we're pretty sure blog comments aren't going to help there. 

[NY Times:  A Revitalization Project Stalls in Miami]

Integrated Asset Services released their latest IAS360 House Price Index, and as you might expect, the news isn't good. Between January of this year and January 2008 housing prices have dropped a total of 28.4% in South Florida. That's 29.1% in Broward, 18.8% in Palm Beach, and a whopping 32.3% in Miami-Dade.

Miami-Dade dropped 5.9% between December and January, plummeted a total of 37.3% since the national housing price peak in January 2006, and dropped 20.5% since the economic crisis effectively kicked off this September. Egads.

Only Fairfield, Conn., a few towns in Virginia, and cities in the San Francisco area have nose dived harder since January 2006.

After OJ Simpson had to switch his residency to a prison pen, Kendall has been missing a sports star resident to call its own. Well, trading OJ Simpson for Michael Jordan would be a major coup.

As first reported by The Palm Beach Post, it seems Michael Jordan and his 30 year-old Cuban-American beau Yvette Prieto have indeed bought a 3-bedroom house together in Kendall for $281,000.

 We took a look at the abode on Google maps (check it out the behind the cut) and it doesn't seem fit for a sports legend. We're guessing Jordan won't be setting up house there, himself. The Post mentions that Prieto had some credit problems and filed for bankruptcy in 2002, maybe he's helping her out (or helping her help a family member out). 

Fisher Island is the most expensive zip code and has the highest per capita income of any area in the nation. It is home (or second home) to the likes of Oprah, Florida First Lady Carol Rome, Andre Agassi, and Mel Brooks.

Oprah, we hear, is doing just fine during the recession, but that doesn't mean some of her neighbors aren't limiting their Bal Harbor shopping sprees, selling off a Lambo or two, or seriously considering tomorrow's free Denny's breakfast.

According to the only thing left in America that still resembles a newspaper, the New York Times, Fisher Island is not immune to the recent economic downturn. One out of every four condos on the Island is up for sale, and no one wants to buy them. Already high community fees are going up or staying flat, while even the wealthiest are looking to save money. And many of the residents have lost money in the market, and those who haven't are wary.

Meanwhile, the rich still left on the island have turned into a prissy set, complaining about things such as a Spanish Vogue party held on the island (oh, the horror!) and an upgrade to the country club that will cost each member an average of $54,000 (which actually does sound like a horror). Some residents apparently don't mind the price tag, but others are wondering if the country club really needs that $60 million makeover at a time like this.  

Oh, look. We've topped another depressing list. No, this one isn't calling us fat, in fact it's practically guaranteeing we'll be skinnier in one area: our wallets.

PMI group released its list of riskiest real estate markets, and Miami ties with Riverside, California as the riskiest. The chance of home prices being worth less in two years than they are now? 99.9%! Fort Lauderdale has troubles, too. They came in at number 3 with 99.8%. Look on the bright side though: there's a 00.1% they might rise!

If you're looking to make a safe investment, then PMI suggests heading to Texas. The Dallas, Houston, and Fort Worth areas have the least risk of any markets.

Here's another tidbit courtesy of financial magazine's OCD need for lists: Fortune predicts that the Miami-Miami Beach are will be the fourth worst real-estate market for 2009. 

Miami's foreclosure fiasco rages on, and its latest victim is a familiar face. Rapper/producer Wyclef Jean took out a $2 million mortgage to purchase and renovate a Miami Beach spread but failed to keep up on payments, according to the Palm Beach Post's Jose Lambiet (who apparently doesn't know much about hip-hop; Wyclef is more than just a guitarist, but okay). The uncompleted house will go up for auction December 12 and will make a fantastic Christmas present for any real estate vulture skimming up deals while the market is down.

--Kyle Munzenrieder

Fresh off the re-opening of the Fontainbleau, Miami Beach is bracing for another hotel ribbon-cutting. The Mondrian quietly opened its doors to guests two days ago, but the official grand opening will take place during Art Basel. The brains behind the design (and naked candy-throwing enthusiast), Marcel Wanders, is interviewed in the above clip while the cameras roam the interior of our latest superluxe high-rise hotel/residence.

--Kyle Munzenrieder

South of Fifth, the super-luxe ocean front condo complex, still has about a quarter of its units to unload so they've added a sweetener to the pot for potential buyers. What, like free maid service for a year? Waiving any owners associations fees? A complimentary netflix account? Haha, no. They're giving away $260,000 Lamborghini Gallardo Spyders.

Right, because nothing says smart economic move right now like buying luxury real estate and driving a car that gets 10 mpg city. It's like a happy meal for the nuevo rich. Free flashy car inside every deal.

"There is simply no other development like South of Fifth," says Michael Samuel, principle of Samuel & Co. in a press release, "and no other vehicle like Lamborghini. Melding the two is the ideal live/drive marriage for a very discriminating consumer."

Michael, didn't you hear? The discriminating voters of Florida said that marriage is between one man and one woman, not between a car and a condo.

--Kyle Munzenrieder

When the mega complex of Midtown Miami opened many worried it would stymie the growth of Wynwood's art scene. How are artists supposed to meditate on all the darkness in the world when there's a deal on 2 for 1 tube socks just a few block away? Well, two years latter the creativity in Wynwood is as strong as it ever was, and it's the corporate powers of Midtown that are taking the real beating.

Midtown has at least 15 units of un-leased space. Then Ocean Drive faced a round of lay offs and reorganization, though their Midtown studios were unaffected. Linen N' Things is going out of business, taking it's store with it. Then Circuit City announced it was closing 100 stores. While their location in Midtown will remain open, today's announcement that the chain was filing for bankruptcy puts the entire company's future in question.

So it's just about a perfect storm for Midtown Miami, with the complex itself or certain occupants facing downturns in the print industry, real estate, and retail. All it needed were a GE dealership and a Wachovia branch and it would have been a perfect microcosm of all that is wrong with the economy.

--Kyle Munzenrieder

About two years ago Chad Oppenheim Architecture + Design announced plans for COR, a revolutionary green high-rise in the Design District. The building would incorporate wind turbines, photovoltaic panels, and solar hot water generation, and feature a hyperefficient exo-skeleton. It was originally supposed to be finished by 2009. Well, not much has happened with it since they released the breathtaking 3-D renderings, but it's still on its way, hopefully.

Inhabitat says, "The project is still on-the-boards but facing delays."

Right now probably wouldn't be the best time to search for tenants for a 25-story building anyway, but it'd be a shame if the project didn't come to fruition. It was one of the few projects that had us excited. Oppenhiem's website lists a new estimated completion date of 2011, so there's hope.

--Kyle Munzenrieder