4 Proposed Condo Towers Prepare To Launch Construction In South Florida Published on 12/27/2012 9:24:07 PM
With 15 condo towers currently under construction or recently completed in South Florida, the developers of four other proposed towers - 400 Sunny Isles East, 400 Sunny Isles West, ICON Bay, and the Porsche Design Tower - have each taken a key step in preparation of launching construction, according to a new report from CondoVultures.com.
In the last 90 days, the developers of the four respective towers formally recorded their Declaration of Condominium documents in the county where the projects are slated to be built, according to Miami-Dade County records.
The Porsche Design Tower (declaration recorded on Dec. 13, 2012) and the 400 Sunny Isles East and West towers (declarations recorded on Oct. 12, 2012 and Nov. 13, 2012, respectively) are proposed for Sunny Isles Beach and the ICON Bay project (declaration recorded on Nov. 6, 2012) is proposed for Greater Downtown Miami, according to government records.
In the early stages of this newest South Florida condo building boom, an increasing number of developers are recording their condominium declarations documents in the county where the projects are to be located just prior to launching construction.
Contrast this with the last condo boom - and subsequent bust - where developers typically recorded their condominium declaration packages in the county where the projects are to be located only when the construction was nearly complete and the presale contracts were ready to be transacted, industry watchers said.
"South Florida's preconstruction condo market is evolving to meet the demands of cash buyers," said Peter Zalewski, a principal with the Greater Downtown Miami real estate consultancy Condo Vultures® LLC. "Given the challenges that have existed for condo construction financing to date, many developers have had to tinker with their approaches in order to ultimately build their proposed towers. The recording of condo declarations with the county prior to construction is just one of the variations that has emerged with this newest wave of condo construction."
As of Dec. 28, 2012, at least 98 new condo towers with nearly 14,500 units are proposed, planned, under construction, or recently completed in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach, according to the Preconstruction Condo Projects list compiled by the licensed Florida brokerage CVR Realty™.
Some five years after the South Florida condo market began to stall, the new 23 Biscayne Bay condo tower has already been completed in the tricounty region and 14 other highrises - Aventura's Bellini At Williams Island; Greater Downtown Miami's 1100 Millecento Residences, Brickell Citicentre (two towers), BrickellHouse, and MyBrickell projects; Hollywood's Apogee Beach; Key Biscayne's Oceana (two towers); Miami Beach's Residences At Miami Beach Edition; Palm Beach County's 4001 North Ocean project; and Sunny Isles Beach's Chateau Beach, Mansions At Acqualina and Regalia - are under construction as the post-crash development era gains momentum, according to a recent CondoVultures.com report.
Many 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.
Fueled by investors primarily from overseas, less than 2,900 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 November 5, 2012, according to a recent CondoVultures.com report.
It is unclear how many of the other proposed towers could get built in the short term as construction financing is challenging - and expensive - to secure, industry watchers said.
To overcome the obvious financing hurdle, most of the newly proposed projects are requiring prospective buyers to commit to deposits - to be paid in phases - of as much as 80 percent of the preconstruction contract price, industry watchers said.
During the most recent South Florida condo boom, preconstruction buyers were generally asked for deposits of about 20 percent, industry watchers said.
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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