Bay Harbor Islands just set a price-per-foot record at $21.8M

Bay Harbor Islands has a new high-water mark. The home at 9640 West Broadview Drive sold for $21.8 million, a record price per square foot for the barrier-island town. The 8,000-square-foot house has 8 bedrooms, 10 bathrooms and 80 feet of water frontage, and the deal penciled out to more than $2,700 per square foot.

The seller was an entity led by Menachem Kranz. The buyer was not named, but is described as someone who leads a company relocating to South Florida. Moshe Goldshtein and Vanessa Frank of One Sotheby's brokered the sale, as first reported by The Real Deal.

“There's too much demand and there's no inventory of turnkey $15 million, $20 million-plus homes on the water.”Moshe Goldshtein, One Sotheby's

Enrique's read

My read: this is the turnkey-scarcity trade playing out at the top of the market. There is no shortage of buyers at $15 to $20 million on the water. There is a real shortage of finished, move-in product at that level. When a relocating executive wants to close and move in, they pay a premium for done. Dated homes on comparable lots do not command anything close to this number, and many sit.

If you own a finished waterfront home and you have been waiting, the data says the ceiling is higher than most owners assume. If your home needs work, the gap between you and a record like this is the cost and time of a renovation, and that gap is what a buyer will price against.

• Turnkey wins. Finished, move-in waterfront is pulling record numbers while dated inventory lingers.
• Frontage matters. 80 feet of water frontage was a core part of this price. Frontage and dockage carry a measurable premium.
• Relocation demand is real. An executive moving a company to South Florida bought here. That buyer pool is still growing.
• Price to the finish level. Buyers underwrite the cost of getting your home to turnkey. Know that number before you list.