As Resales Spike In Pompano Beach, BankUnited Plans Townhouse Project Published on 9/8/2013 12:51:00 PM
BankUnited - the largest bank headquartered in Florida - is proposing a new 21-unit townhouse development a block west of the Atlantic Ocean in Pompano Beach at a time when condo and townhouse resales in this Northeast Broward County market of South Florida spiked 29 percent in the second quarter of 2013 on a year-over-year basis, according to a new report from CondoVultures.com.
Representatives from BankUnited - a Miami Lakes-based financial institution with assets of $13.1 billion - are scheduled to appear at the Pompano Beach Development Review Committee meeting on September 18, 2013 to present plans for its proposed project - dubbed 14th & Ocean - to be located in the 1300 block of North Ocean Boulevard, according to government records.
The current leadership of BankUnited - which replaced the previous ownership following the institution's failure in May 2009 - acquired the 1.2-acre townhouse development site - that currently houses a bank branch - for $1.1 million in December 2009 from the Federal Deposit Insurance Corp, according to Broward County records.
On the preconstruction front, developers are proposing a pair of new condo projects with a total of 10 towers - the 350-unit Koi Residences & Marina and the 24-unit Pompano City Place - for the Pompano Beach coastal market at a time when South Florida real estate shows signs of recovering from a crash that began in 2007, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Overall in South Florida, developers are now proposing at least 161 condo towers with more than 21,850 units for the tricounty region of coastal Miami-Dade, Broward, and Palm Beach as of September 6, 2013, according to the report.
"The condo and townhouse market in coastal Pompano Beach is increasingly showing signs of recovering from the devastating South Florida real estate crash of 2007," said Peter Zalewski, a principal with the real estate consultancy Condo Vultures® LLC. "In Pompano Beach, condo and townhouse resales are gaining momentum even as the median price per square foot for a unit is on the rise. This combination of strong resales and price rises is prompting some developers to proposed new condo and townhouse projects in Pompano Beach."
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.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly series that analyzes the markets of Greater Downtown Miami, South Beach, Bal Harbour / Surfside / Bay Harbor Islands, Sunny Isles Beach, Aventura, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Pompano Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.
The Pompano Beach coastal market is defined as Northeast 24th Street / Hillsboro Inlet south to Commercial Boulevard, and and the Atlantic Ocean west to Federal Highway, according to the Condo Vultures® Official Condo Buyers Guide™ series.
Buyers purchased nearly 285 condos and townhouses in the Pompano Beach coastal market between April and June of 2013 compared to less than 220 units in the same three-month period of 2012. A year earlier in the second quarter of 2011, buyers purchased less than 235 units in the Pompano Beach coastal market, according to an analysis by the licensed Florida brokerage CVR Realty™.
Compare this to the second quarter of previous years when buyers purchased about 210 units in 2010 and less than 125 units in 2009 in the Pompano Beach coastal market, according to an analysis based on Florida Realtors association data.
At the current resale pace, the Pompano Beach coastal market has less than five months of condo and townhouse inventory available for purchase, according to the report.
As of September 7, 2013, more than 410 condos and townhouses are available for resale in the Pompano Beach coastal market where buyers purchased an average of nearly 95 units per month in the second quarter of 2013, according to the data.
The demand for condo and townhouse resales in the Pompano Beach coastal market is spiking even as the median purchase price increased to about $183 per square foot in the second quarter of 2013 from about $173 per square foot in 2012, according to the report.
In the second quarter of previous years, the median resale price was about $160 per square foot in 2011, about $164 per square foot in 2010, and about $172 per square foot in 2009 for a condo or townhouse in the Pompano Beach coastal market, according to the report.
The condo and townhouse resale statistics do not reflect any deals that may have been transacted without being marketed on the Multiple Listing Service.
Of the Pompano Beach coastal condos and townhouses currently available for resale, more than 250 units have two bedrooms with a median asking price of nearly $240 per square foot. An additional 90 units have one bedroom with a median asking price of nearly $200 per square foot.
Less than 65 three-bedroom units are available for resale at a median asking price of about $305 per square foot. Nearly 10 units with at least four bedrooms are available for resale at a median asking price of about $400 per square foot, according to the data.
Less than five studios are available for resale at a median asking price of more than $435 per square foot monthly, according to the data.
Some six years after the South Florida real estate crash began in 2007, two new condo projects - 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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