Robotic Parking Financial Settlement at Brickell House Poses Amazing Condo Investment Opportunity

Robotic Parking Financial Settlement at Brickell House Poses Amazing Condo Investment Opportunity

Apr 10, 2019 April 10, 2019

A recent settlement regarding a malfunctioning robotic car parking at Miami’s posh Brickell House may provide an unprecedented opportunity for investors to purchase a condo at one of Miami’s most extravagant condo towers for an unbeatable price. The dark cloud of parking problems over the condo building which has deflated prices is soon to be removed, plus the financial tailwind from the settlement will likely unlock more value from the condo building.

Robotic self-driving car elevators are becoming all the rage in contemporary condo developments.  In Boston, a newly inaugurated luxury condo tower known as The Boulevard boasts an automated parking system that self-parks cars in an underground garage. In Sunny Isles, the sleek new Porsche Design Tower also provides residents with the convenience of a robot car elevator called the “Dezervator” that self-drives cars directly to the door of each residential unit. And Elysee in Edgewater will be delivered next year also with robotic parking.

The car lift system of the Porsche Design Tower Miami

The car lift system of the Porsche Design Tower Miami - Photo credit: Porsche.com

Similarly, Miami’s Brickell House, a 46-story luxury condo tower that opened in 2014 at 1300 Brickell Bay Drive, promised condo owners the bonus of a convenient robotic car elevator that would deliver their cars to them in 10 minutes. This proved to be a powerful marketing lure, and the tower’s arresting residential units with breathtaking panoramic views went like hotcakes, with developer Newgard Development Group selling 98% of the tower’s 374 units within the first three months of opening the building.

Unfortunately for those condo owners, however, the robotic self-parking car elevator didn’t quite deliver the goods as promised. Almost immediately after the building’s inauguration, once owners began moving in, problems began to crop up with the tower’s automated parking system.

The automated car elevator relied on technology developed by a company called Boomerang Systems.  But shortly after the car elevator at Brickell House began to malfunction, Boomerang filed for bankruptcy, and condo owners at Brickell House were forced to park their cars at a neighboring garage. This inconvenience led to an insurance claim on the part of the Brickell House Condo Association asserting that the failure of the parking system had cost condo owners an average of $70,000 per unit.

Fast forward to October of 2018, and the Brickell House Condominium Association has reached a confidential $32 million settlement with the Hartford Steam Boiler Inspection and Insurance Company, who underwrote the insurance policy for the elevator’s technology at Brickell House. The settlement, rumored to be among the largest of its kind, amounts to more than half of the $61 million insurance policy that the Condo Association purchased to insure the technology of the car elevator.

Elysee in Edgewater

Elysee in Edgewater

But litigation continues. The Condo Association alleges that Newgard was aware of the elevator’s malfunction and seeks to collect additional funds from the developer, while Newgard’s attorneys have denied the allegations. Meanwhile, Newgard claims that they have offered to repair or replace the faulty technology in an affidavit presented by Harvey Hernandez, owner of Newgard Development Group, and claims that the Association has declined those offers.

Today, the situation at Brickell House presents a great opportunity for investors interested in purchasing a luxurious residential condo at an unbelievable price. Not only do we expect to see the automated parking problem finally resolved at Brickell House within the next few months, but the settlement also likely leaves a fair amount of money left over (we can’t be certain but it seems that way), which may be used to fund other improvements to the property.

Peaches are ripe for the picking at Brickell House as prices for these luxurious residential units will naturally begin to adjust upward once the car elevator repairs are completed within the coming few months. Additionally, condo association fees have been elevated at Brickell House, partially due to the lease for the neighboring garage. Our best guess is that those fees will come down considerably over the next year as well, making this a truly winning opportunity for investors. The building also allows for 30-day rentals, which is appealing to second-homers and investors. Current homeowners at Brickell House will also benefit from property value increases as this automated parking problem is finally cleared up at one of Miami’s most beckoning luxury condo towers.

Robot Elevator at Brickell House

Robot Elevator at Brickell House

Contact Sep Niakan
Founder, Condoblackbook.com & Owner/Broker, HB Roswell Realty
(786) 930-4220
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Recent Posts

Greater Downtown Miami Luxury Condo Market Report -- Q3 2019
Real Estate News Greater Downtown Miami Luxury Condo Market Report -- Q3 2019
CondoBlackBook.com’s luxury condo market report for Q3 2019 outlines how sales increased in Miami overall, median prices went down, and heavy inventory kept buyers in control. This report breaks down how neighborhoods in the Greater Downtown area fared individually, as well as compared to the Miami market as a whole. For the purpose of this report, we’ve included areas with the Zip codes 33129, 33130, 33131, 33132, 33136, 33137 – essentially Downtown, Arts & Entertainment District, Edgewater, Midtown, Wynwood, Brickell, Brickell Key, and more. Further, this luxury condo market report only features properties priced $1 million and above. Greater Downtown Miami Luxury Market at a Glance (year over year) Greater Downtown Miami Luxury Condo Market Q3 2019 Highlights: Sales down year-over-year in all neighborhoods Trailing 12-month sales trendline positive for all neighborhoods, except Edgewater Price per sq. ft. lower than Q3 2018 in all neighborhoods Median sales price higher than...
The average Miami Preconstruction Condo buyer lost 14% in resales through Q3 2019
Real Estate News The average Miami Preconstruction Condo buyer lost 14% in resales through Q3 2019
This year, CondoBlackBook.com again teamed up with HB Roswell Realty to analyze the latest new construction resale data across Miami. We tracked new condo units built between 2017 and 2019 in Miami’s urban core and beach areas that have since been sold by the original owner in the first three quarters of 2019. What we found builds upon last year’s report and is surprising—most sellers lost money. On average, Miami new construction condo resales lost around 13.9% when factoring in costs (1.7% at purchase and 6.8% at sale).*  This follows our analysis conducted over the same period last year in which we found sellers lost 11% on average. Our team analyzed 116 new construction resales in Greater Downtown Miami, Coconut Grove, Miami Beaches and the surrounding islands (except Fisher Island and Key Biscayne) that closed in 2019 and found that 40 broke even or made a profit, while 76 resales lost money—nearly 65% of the owners in our study (compared to a similar figure of 63% in last...
Coral Gables and Coconut Grove Luxury Condo Market Report -- Q3 2019
Real Estate News Coral Gables and Coconut Grove Luxury Condo Market Report -- Q3 2019
The latest from CondoBlackBook.com’s Q3 2019 report for luxury condos in Miami shows some slight shifts from the previous quarter -- while overall sales and the median sales price increased, the median price per square foot dropped and a sustained inventory surplus means we’re still in a buyer’s market. This report breaks down how the combined Coral Gables and Coconut Grove fared in the third quarter. For the purpose of this luxury condo market report, we’ve only featured properties priced $1 million and above. Coral Gables and Coconut Grove Luxury Condo Market Q3 2019 Highlights: Sales slightly short of last year’s outstanding performance Positive sales trendline, showing sustained market momentum Price per sq. ft. is lower compared to Q3 2018 Overall inventory drops significantly Coral Gables and Coconut Grove Luxury Condo Market Summary - Fig. 1 Slight Slip in Overall Luxury Condo Sales YoY sales decline marginally, but are higher than 2017, 2016 and 2015 with positive...
Miami’s New and Pre-Construction Condo Update: October 2019
Real Estate News Miami’s New and Pre-Construction Condo Update: October 2019
Supertalls took over pre-construction news this Halloween month. The tallest in the city – Okan Tower won construction approvals. The fourth tallest in Miami, Brickell Flatiron celebrated its completion milestone. The Turnberry Ocean Club, one of the tallest on the Atlantic Coast, topped off. And, the tallest in Edgewater, Missoni Baia snagged a $243 million construction loan. Read on for details on these and other condo pre-construction updates for the month of October below:  Completed Brickell Flatiron - Brickell At 736 feet above ground, Brickell Flatiron now stands complete. It is the fourth tallest building in Miami, just behind Panorama Tower (868 feet above ground), Four Seasons (around 800 feet), and the Southeast Financial Center (764 feet). With closings beginning shortly, 95% of the tower is already sold out. The 64-story skyscraper is home to 527 ultra-luxury condo residences, offering high-end amenities such as a sky pool with lounge, rooftop gym and spa, urban...
Miami Beach Luxury Condo Market Report -- Q3 2019
Real Estate News Miami Beach Luxury Condo Market Report -- Q3 2019
In our overall Miami luxury condo market report for Q3 2019, we saw an increase in sales, a decline in median prices, and heavy inventory keeping things in favor of the buyer. This report breaks down how the neighborhoods in Miami Beach and the barrier islands reacted over the quarter individually, as well as against the market as a whole. For the purpose of this report, we’ve included the sub-neighborhoods of South Beach, Mid-Beach, Sunny Isles Beach, Surfside, and Bal Harbour as part of this Miami Beach grouping. Also, this luxury condo market report only features properties priced $1 million and above. Miami Beach Market at a Glance Miami Beach Luxury Condo Market Q3 2019 Highlights: Miami Beach sales almost match Q3 2018 Sales trendline positive for all neighborhoods Year-over-year sales improve in South Beach, Surfside & Bal Harbour  Miami Beach price per sq. ft. is same as Q3 last year Surfside & Bal Harbour report highest jump in quarter-over-quarter median sales...
The Most Luxurious Condo Buildings in Coconut Grove
Real Estate News The Most Luxurious Condo Buildings in Coconut Grove
Coconut Grove is not just about rich foliage, but is also home to quite a few luxury condo residences. To get a taste of this historic neighborhood plus its plush properties, we’ve enlisted the 5 Most Expensive Condo Buildings in Coconut Grove and bonus pre-constructions that set the bar high for phenomenal living in the city. Why Choose Coconut Grove? Coconut Grove Main Highway. Photo courtesy of MiamiAndBeaches.com The partly coastal neighborhood of Coconut Grove is characterized by lush, tropical foliage and a relaxed Bohemian vibe. Its bouquet of rare boutiques, unique shops, colorful cafés, diverse restaurants, historical venues, lush parks, and easy access to water sports plus a nautical lifestyle make it a breezy neighborhood to live in. The Best of the Best Condos in Coconut Grove  Ritz-Carlton Coconut Grove – 3300, 3340, 3350 and 3400 SW 27th Avenue, Coconut Grove Avg. sales price $624 per sq ftBacked by the world-famous hospitality brand, this waterfront...