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
(305) 697-7667
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Your Miami Condo Awaits

Recent Posts

October 2020: ‘Scare Up’ Some Fall Fun with These Miami Events
Lifestyle October 2020: ‘Scare Up’ Some Fall Fun with These Miami Events
It’s that time of year again, when orange skies fill the air and pumpkin spice lattes fill your coffee mug. Fall in Miami is truly beautiful - the weather is cooler, the sunsets are stunning and the pace of our lives starts to wind down a bit. October in Miami is great time to experience the outdoors and get in some nature walks to recharge the senses without breaking much of a sweat - not to mention have some fun! So, for things to do in Miami this month, we’ve got a mixed goodie bag of online and on-ground events to help you have some Halloween fun. (We highly recommend double checking the availability of the on-ground events before heading out.) There’s also a virtual run, online jazz series, boat show, and carnival to keep you in the highest of fall spirits. Look below for the complete list of virtual and on-ground events to spice up your October in the Magic City: Halloween Specials Drive-Through Pumpkin Patch: October 3-31 Miami-Dade County Fair & Expo Center, University...
Our Top 10 Sailing & Boating Clubs - From Coconut Grove to Miami Beach
Lifestyle Our Top 10 Sailing & Boating Clubs - From Coconut Grove to Miami Beach
Nothing embodies the Miami lifestyle better than a day of sailing on the beautiful blue waters of Biscayne Bay, the Atlantic Ocean, or the Intracoastal Waterway. Boating is a way of life in South Florida. For those who want to board a boat and join the fun, here is a list of our 10 favorite sailing and boating clubs in Miami.  1) Biscayne Bay Yacht Club 2540 S Bayshore Dr, Coconut Grove  The Biscayne Bay Yacht Club (BBYC) is Miami’s oldest boat club, dating back to 1887, when it leased the Florida Cape Lighthouse as its headquarters.  The club purchased its current clubhouse in 1932 and has been involved in practically every important sailing race in South Florida to date.  Today, the club continues to be among the most popular sailing clubs in Miami, with regattas throughout the year, sailing lessons, and all kinds of sailing events. The BBYC has also become popular among windsurfers and is now known as the international hub for this popular sport, turning out Olympic-caliber...
These Two New Miami Towers Could Become Edgewater’s Latest Developments
Real Estate News These Two New Miami Towers Could Become Edgewater’s Latest Developments
Edgewater is expanding. Again! With two new residential towers planned - one condo and one multifamily - the Miami waterfront neighborhood is once again proving it’s continuing to be Miami’s most desirable neighborhood. Both projects are currently awaiting a vote from the City of Miami’s Urban Development Review Board. Developers have been attracted to Edgewater for residential projects, given its family-friendly vibe. The Bayfront neighborhood further benefits from close proximity to the shops and restaurants of Midtown, high-end shopping at the Design District, the eclectic art scene of Wynwood, and general vivacity of Downtown. It is also minutes from a Metromover station that takes people through to Downtown and Brickell. New Edgewater Condo Grupo T&C: 36-story, LEED-certified Condo Tower designed by Kobi Karp Sitting just behind Quantum on the Bay and 1800 Club, Lima-based developer Grupo T&C is proposing a 322-unit, 36-story tower at 1825 and 1837 NE Fourth Avenue. The...
Must-Have Tech to Make Your Condo a Smart Home
Opinions and Advice Must-Have Tech to Make Your Condo a Smart Home
Smart Home technology has been improving year after year and has probably been making your life easier without you even knowing. In the last few years, the home-tech market has exploded leading to a new generation of smart home devices that let you automate your condo.  Whether it’s an energy-saving, AI-powered thermostat keeping your condo at the right temperature, or maybe a smart security system that keeps burglars at bay. There is no question the smart home market is growing and here to stay. What: Philips Hue - The Smart Light Bulb Why: The Philips Hue Smart Bulbs give you access to the color and tone of the lights in your condo all from an app on your phone. These smart light bulbs communicate through Bluetooth and wifi, letting you control the lighting around your condo with just a smartphone! Depending on which model you buy, you’ll be able to not only change the strength and hue of the light but even the color. Dim purple lighting in your living room? Easy. All without...
Need to Get Away from It All? Escape to a Miami Sandbar
Lifestyle Need to Get Away from It All? Escape to a Miami Sandbar
Destination: Sandbar Miami Miami’s coastline provides plenty of adventure, fun and stress relief, the perfect life hack for destressing! Whether you’re into boating, kayaking, swimming, or scuba diving, our coast provides plentiful areas where natural beauty and cooling relief from the hot sunny weather await you. Among the many delights that the Miami coastline has to offer are the sandbars that emerge along the beach at low tide. While most sandbars come and go with the tides and shifting sands, there are several that are established as permanent, and three in particular within Miami. These sandbars are sunny oases in the middle of the sea, accessible only by boat or kayak, and have become popular fun zones where families and singles can swim, relax, and party.  If you are looking to enjoy a special adventure in the water, set out on the waters and check out these gorgeous Miami Sandbars the next time you go out boating or kayaking. Haulover Sandbar 10800 Collins Ave, Sunny...
Buying a Miami Condo for Daily Rental or Short-Term Vacation Rental? Read This!
Opinions and Advice Buying a Miami Condo for Daily Rental or Short-Term Vacation Rental? Read This!
With more and more travelers choosing to book with daily vacation rental websites such as Airbnb or VRBO over traditional hotels, the short-term vacation rental business is on the rise globally. Its local reach, luxury amenities and home-away-from-home comfort is what makes this vacation rental model a huge success. Additionally, when you couple the breeziness of an Airbnb-style vacation rental with a year-round city like Miami, travelers get a phenomenal vacation. After all, it's no secret that Miami has one of the best beach, nightlife, food, culture and shopping scenes in the world, and that's not going to change. This, quite obviously, makes buying a condo for daily renting in the city or Miami Beach a lucrative and smart investment opportunity. However, before you go property-hunting for your full-time or part-time Airbnb investment, here's what you should know about daily rental condos in Miami: Quick Links   Why Invest in a Daily Rental Condo in Miami? What's the Difference...