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$60 million penthouse sale at Faena House breaks Miami record

A view of the Faena House penthouse that sold for $60 million.
A view of the Faena House penthouse that sold for $60 million. Faena House

Sorry, billionaires. The 12,516-square-foot penthouse at ultra-luxury condo Faena House in Miami Beach is officially off the market.

The eight-bedroom penthouse, which also features 9,900 square feet of outdoor space, closed this week for $60 million, or $4,794 per square foot, according to Faena’s representatives. That’s a new sales record for Miami residential real estate.

The price breaks Miami’s previous biggest deal: a mansion on Indian Creek Island that sold for $47 million to an unnamed Russian billionaire in 2012. The highest price paid for a condo had been a unit at the Continuum in South Beach that went for $27.5 million, or $3,342 per square foot, last year.

Faena House was designed by Pritzker Architecture Prize-winning firm Foster + Partners.

Argentine developer Alana Faena built the 18-story tower, 3301 Collins Ave., Miami Beach, as part of an arts-centered district that will include a hotel, two additional luxury condo towers, and a cultural and retail complex designed by architect Rem Koolhaas. Ukrainian-born businessman Len Blavatnik is a partner in the venture.

The Faena House penthouse has nine bathrooms, a 70-foot-long rooftop pool and a wrap-around terrace with views of the Atlantic Ocean, Indian Creek and the downtown Miami skyline. The 42-unit building also offers all the amenities ultra-rich buyers demand in Miami: an in-house spa and fitness center, a private club, concierge service and a round-the-clock doorman. It was originally listed for $50 million.

The buyer’s identity is not being disclosed. County property records for the deal are not yet available.

Peter Zalewski, a condo market analyst, said the jaw-dropping figure reflected market conditions that likely don’t exist anymore. Faena House launched at the very beginning of the current real estate cycle in 2012.

“There’s an advantage in being first to market, being able to plant the flag and attract buyers,” Zalewski said. “They did a great job. But when they announced the project and buyers were reserving units, there was far less inventory, the dollar was cheaper and commodity prices were much higher.”

Faena House was the 18th condo tower launched east of Interstate 95 during the current cycle, according to Zalewski. Since then, developers have announced an additional 350 towers, he said.

“I would suspect that if Faena House were to launch today, it could not achieve these sales prices with all the inventory on the market,” he added.

The average closing price for Faena house is about $3,500 per square foot, according to the developer. The two latest towers — a 22-unit building called Faena Versailles Classic in the old Versailles Hotel and a 41-unit building called Faena Versailles Contemporary next door — are selling at an average of about $3,000 per square foot.

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Condo prices have been cooling down in Miami as currencies around the world plummet against the dollar. But developers say the ultra-luxury market, fueled by flight capital and foreign wealth, is still strong enough to sustain individual sales in the tens of millions.

The most expensive pre-construction units listed today include a $49 million penthouse at Zaha Hadid-designed One Thousand Museum in downtown Miami; a $42.2 million penthouse at Echo Brickell in downtown Miami; a $40 million penthouse at the Estates at Acqualina in Sunny Isles Beach; a $40 million penthouse at the Ritz Carlton Residences in Miami Beach; two penthouses priced at $35 million at Turnberry Ocean Club in Sunny Isles Beach; and a $33.5 million penthouse at the Porsche Design Tower in Sunny Isles Beach.

The most expensive home currently on the market in South Florida is a $67 million bayfront mansion that sits on 3.6 acres in Coral Gables and belongs to auto magnate Alan Potamkin.

Nicholas Nehamas: 305-376-3745, @NickNehamas

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