17% Of Units At Brickell City Centre’s RISE Have Been Sold, REACH Now Topped Off

REACH, the 43-story second condo tower at Brickell City Centre, has topped off.

All of the towers at the project have now been topped off, including the 43-Story RISE condo tower, the 40-story East hotel, and several smaller towers. The project is on schedule to open at the end of 2015.

Sales of condos at RISE have been slower than at REACH. As of last week, 65 of the 390 condos in the tower have been sold at an average price of $664 per square foot. Sales for the tower began in November 2014.

At REACH, 304 of the 390 units in the tower have been sold, with prices averaging $634 per square foot. Sales began in May 2014. Between the two towers, 47% of 780 units have been sold (22 units in the combined towers remain in a statutory rescission period as of March 17.)

All sales data comes from an investor presentation released last week by Swire Properties.

Swire continues to move forward with plans to build the 80-story One Brickell City Centre as the second phase of the project. At 1.3M square feet, it will be smaller (but taller) than the first phase. Although completion is estimated to be in 2019, the company still has not confirmed the expected cost to build it.

Swire has also retained the ‘north squared’ land, north of City Centre’s first phase. A development of 520,000 square feet will be built there in the future, but no time frame has been given.

The company has been praised by analysts for keeping a strong balance sheet, which will allow it to easily finance any future projects.

 

16 Comments
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Eon
5 years ago

I’m not surprised at this subpar sales record…surely due to the very high prices of these condos.

Ed
5 years ago

This is only the beginning. Brickell has maxed out in development for this cycle. It was a good cycle and hopefully those currently under construction can make it all the way so we aren’t left with concrete structures abandoned.

Maybe
5 years ago

I’m sure another condo could break ground before this cycle is over.

BinBrickell
5 years ago

The 4 building still with a significant amount of inventory (Edge, Rise, Brickell Heights West, and Flatiron) are more inland and few units will have any views. Sites like One Brickell, Villa Magna, and even Karmely’s twin towers on the river are much superior locations offering better views and will most likely go to market soon and be more successful than these (if priced right). I wouldn’t say the “cycle” is over, but in a transitional intermission.

Anonymous
5 years ago

They need to start disclosing MORE of the brands that are going into Brickell Citycentre….hopefully they start aggresively using those brands , not only to sell the West Tower but to help with closings of their East Tower.

Fredric
5 years ago

What they need in Brickell now is not yet more towering condo projects with million dollar units for sale.

What they need instead is a lot more Class A office space in skyscrapers. With that, the international corporations, financial services companies and various other new-economy uses can be attracted to the downtown Miami area, with most of it coming from outside the region altogether. Once that cycle is complete, then more residential space can be constructed.

Building more ultra luxury residences which MAY then be purchased by foreign absentee owner-investors and then MAYBE later occupied by young professionals willing and able to pay exorbitantly high rental rates would not be a wise move, in the long run. That is what we already have a lot of in the Brickell district and there is only so much room for that kind of market.

Anonymous
5 years ago

Hopefully 600 Brickell doesnt announce Phase 2 of their office bldg which will completely block the views of Swires East Bldg.

Swire will eventually announce ONE BCC…hopefully soon

In the meantime they should do a better job at getting people excited about the Shopping Center…no one knows, 6 months from opening , who is signed up as tenants. They have done a horrible shop at promoting the brands that will be in the shopping

Anonymous
5 years ago

Building class A office space would be just as speculative as building more condos.

When was the last time you heard a new company move to downtown and rent over 200k sqft, its been a while most of the most recent leases have been downtown based companies switching buildings

Fredric
5 years ago

Of course most of the office space leasing has been from in-town shifting. But that does not mean that this must be the trend forever.

Several studies have shown that the office market is now ripe for development. The problem is that too much land has been grabbed by developers all wanting to cash in on the current condo boom cycle. But as the recent past AND the present have taught us, that has now almost certainly peaked. What this means is that we will likely see little or no actual development of the numerous and massive projects announced during the past few months.

The local business and governmental communities have been making strides recently in the area of economic development and THAT is where the future of Miami resides, NOT just in massive condo developments. There is no need for a single corporation to lease 200k sq ft. of space in one large building but numerous smaller can easily take up the space and at a fairly steady pace, which is what happens in numerous world-class cities all around the globe.

You asked me to show you the last time a company came in and leased 200k square feet of space downtown. I cannot do that. Now I ask you to show me a world class city anywhere on the planet where as much as 80% of the square footage in skyscraper buildings is taken up by luxury condos. That is where Miami would be headed if the past 12 years or so of construction activity were to be repeated in kind for the next ten years or so. And of course it will not happen. The time has come for the developers to concentrate on commercial office space and yes, retail space for the next few years at least, IMO. After that they can then enjoy another residential boom, perhaps.

I very much appreciate what has happened in Miami over the past two decades or more but I am only saying that I see a need to shift gears on the development front and I suspect that truly sharp developers who are seeing beyond simple greed will see that as well.

Anonymous
5 years ago

This is a brand new tower released in mid December with sales numbers showing most likely hard contracts. (Lag time of at least 15 days) since it was launched. In reality you are looking at 65 units of January and December. Not bad a little over 30 units per month…

As per the Price Per SqFt, @ $664 (this is a finished product ready to move in) it’s half of what new developments in Sunny Isles or SurfSide are selling and 1/3 of the price of new developments in many areas of South Beach.

With the new tolls in the main access highways and the traffic congestion to get to DT and Brickell, these apartments are going to be rapidly absorbed, and since they were purchased with 50% deposits, the exposure will allow them to cover any fixed costs with potential rents in case of a market slow down.

BCC is by far one of the best options for international buyers who prefer a hard asset, with a potential IRR of +-3% on their money than the 0.25% offered by banks. It has a great location. A solid backer. Exiting lifestyle. It will be delivered as promised, on time. And is paying 6% to Brokers.

If they keep selling the 30 units per month, it will most likely be sold out at the time of delivery. (+-a year from today). Go Brickell City Centre!.

deleted
5 years ago

The article is misleading. This is a brand new tower. (Launched at the end of December 2014). Alysson, there are no reservations, and has never been. The second tower launched at the end of December with hard contracts. Swire has sold in average +-30 units per month since launching.

Anonymous
5 years ago

What is happening with the rest of Brickell Citycentre? on top of Saks and the cinemas who else is confirmed??
They are sucking wind in the leasing and that is affecting their sales.
They are doing a lousy job marketing the shopping center!!
who wants to buy in a 17% sold building??

Obviously
5 years ago

Undoubtedly Swire should hire you. I mean, with your expertise, how could they go wrong?!

Anonymous
5 years ago

hopefully one day theu put a great fence with all the BRANDS coming to BCC and a great add campaign…
crappy marketing

Ed
5 years ago

I don’t understand why many think they should start marketing the retail stores? This thing is under construction. Why would you waste dollars on marketing something that people can’t even see yet? That would be a waste of money. Who cares about getting consumers excited now. You promote something and get consumers excited when they can actually spend money on it! They don’t need to market anything right now to the public. As for marketing to possible retailers, trust me, they are showing each of them the list of retailers that have already signed up and plan to sign up.

Anonymous
5 years ago

because that help sell their condos…did you read the title?