2nd New Condo Project Completed In South Florida Since 2007 Market Crash Published on 8/30/2013 11:30:00 AM
With at least 160 new condo towers already proposed for South Florida, a second condo project has been completed while at least four more towers are scheduled to be delivered before the end of the year as the region's real estate market shows signs of recovering from the dramatic downturn of 2007, according to a new report from CondoVultures.com.
The newly completed 4001 North Ocean condominium complex with 34 units in Gulf Stream in Southeast Palm Beach County originally filed its "notice of commencement" to launch construction of the pair of six-story buildings fronting the Atlantic Ocean in February 2012, according to Palm Beach County records.
In addition to the 4001 North Ocean project, four other condo projects - Apogee Beach in Hollywood, Bellini At Williams Island in Aventura, MyBrickell in Greater Downtown Miami, and the Regalia in Sunny Isles Beach - are expected to complete construction by the end of 2013, according to marketing literature from each project.
In Palm Beach County, a combination of domestic and international developers - in unrelated projects - are proposing to construct 23 towers with nearly 2,100 new condo units in a market that stretches from Boca Raton north to West Palm Beach north to Jupiter on the east side of Interstate 95 as of August 29, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Overall in the tricounty South Florida region, developers are now proposing more than 21,300 units for coastal Miami-Dade, Broward, and Palm Beach counties as of August 29, 2013, according to the Preconstruction Condo Projects Database™.
"South Florida's condo market is in a growth phase in the coastal markets of Miami-Dade, Broward, and Palm Beach counties," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Consider that a pair of new condo projects have already been completed while an additional three dozen towers are under construction in South Florida even as financing remains a challenge. The emerging signs of a recovery in the South Florida condo market are spurring a number of local and out-of-town developers to scour the region for prospective development sites.
"The question going forward is whether developers, lenders, and buyers will remember the lessons from South Florida's last boom-and-bust cycle."
CondoVultures.com is scheduled to profile condo trends in the second quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of July 15, 2013.
In Palm Beach County, the developer of the 4001 North Ocean project has sold 29 units for more than $61.3 million for an average price of nearly $750 per square foot as of August 29, 2013, according to Palm Beach County records.
The new condos at the 4001 North Ocean project have sold for less than $1.4 million to more than $3.3 million each with the price per square foot ranging from less than $525 per square foot to more than $985 per square foot, according to government records.
Some six years after the South Florida real estate crash began in 2007, two new condo tower - 23 Biscayne Bay and 4001 North Ocean - have already been completed in the tricounty region and 35 other highrises - Aventura's Bellini At Williams Island and Echo Aventura (two towers); Fort Lauderdale's Adagio Residences; Greater Downtown Miami's 1100 Millecento Residences, Brickell Citycentre (two towers), BrickellHouse, Habitat II, ICON Bay, MyBrickell, Nine At Mary Brickell Village projects; Hallandale Beach's Beachwalk; Hollywood's Apogee Beach, Costa Hollywood (two towers), Sage Beach (two towers); Key Biscayne's Oceana (two towers); Miami's Baltus House in the Morningside area and Grove At Grand Bay (two towers) in Coconut Grove; Miami Beach's Faena House, One Ocean (two towers), Peloro Miami Beach, and Residences At Miami Beach Edition; and Sunny Isles Beach's 400 Sunny Isles (two towers), Chateau Beach, Jade Signature, Mansions At Acqualina, Porsche Design Tower, and Regalia - are under construction as the post-crash development era gains momentum, according to a CondoVultures.com report.
The push for new condo construction comes as the boom-era unit inventory is dwindling in South Florida.
Overall in South Florida, less than 2,150 new condo units remain unsold from a supply of nearly 49,000 units created since 2003 in South Florida’s seven largest coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island as of March 31, 2013, according to a recent CondoVultures.com report.
The total number of unsold new condos does not include any of the more than 8,000 units that were purchased in bulk transactions by investment groups that plan to one day resell the units at a premium, according to the Condo Vultures® Bulk Deals Database™.
A number of the newly proposed condo units are not expected to be completed until 2014 when the unsold developer inventory from South Florida's last real estate boom and bust is projected to be sold.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based in the 225 Midtown Building at 225 NE 34th St., Suite 209B, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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