40th Condo Tower Proposed For Greater Downtown Miami Since 2007 Crash Published on 9/29/2013 7:23:00 PM
As the South Florida condo market increasingly rebounds from the last real estate crash to devastate the tricounty region, the Hong Kong-based development company Swire Properties has announced plans for what amounts to the 40th new condo tower proposed for Greater Downtown Miami since 2007, according to a new report from CondoVultures.com.
Swire Properties has unveiled plans to add a fourth new condo tower with fewer than 400 additional units to its previously proposed nearly $1.1 billion Brickell CityCenter mixed-use complex with seven towers and 5.4 million square feet of "gross floor area" in the Brickell Avenue Area of Greater Downtown Miami, according to company statement.
"Under Miami 21 zoning, residential development of the One Brickell CityCentre site would be permitted as of right and would allow over 400 units to be developed," according to a Brickell CityCentre corporate statement. "Swire’s development plan for One Brickell CityCentre is yet to be finalized but will include fewer residences than a stand-alone condominium tower."
The newest tower is slated stand 80-stories tall on a 1.6-acre site located at 700 Brickell Ave. that was acquired for $64.1 million - or nearly $950 per square foot - in a deal that transacted on July 15, 2013, according to Miami-Dade County records.
Back in October 2008 as the U.S. financial system was on the brink of collapse, Swire Properties paid $41.2 million - or $169 per square foot - for 5.6 acres of undeveloped that would ultimately become the heart of the proposed Brickell CityCentre project on South Miami Avenue between Seventh and Eighth streets, according to government records.
With Swire Properties' newest tower, more than 12,000 units have been proposed in Greater Downtown Miami as of September 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 171 condo towers with nearly 22,500 units for coastal Miami-Dade, Broward, and Palm Beach counties as of September 29, 2013, according to the Preconstruction Condo Projects Database™.
Since the week of July 15, 2013, CondoVultures.com has been profiling 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.
The Condo Vultures® Market Intelligence Report™ has published 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 Greater Downtown Miami condo market is defined as the Julia Tuttle Causeway south to the Rickenbacker Causeway, and Biscayne Bay west to Interstate 95, according to the analysis based on the Condo Vultures® Official Condo Buyers Guide To Greater Downtown Miami™.
In Greater Downtown Miami, Swire Properties had already announced plans to build three condo tower with nearly 1,175 units, three office buildings, and a hotel tower prior to this latest announcement, according to a recent company statement.
Swire Properties - the firm that built out much of the gated, island community of Brickell Key just east of Brickell Avenue - has spent more than $132 million to acquire 11.6 acres of land stretching from Brickell Avenue west to Southwest First Avenue, and Eighth Street north to Fifth Street in the Brickell Avenue Area of Greater Downtown Miami, according to a recent CondoVultures.com report.
As part of the Brickell CityCentre complex, Swire Properties has partnered with the Whitman family - owner of the high-end Bal Harbour Shops - on the retail component of the complex, according to the Miami Herald.
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 38 other highrises - Aventura's Bellini At Williams Island, Echo Aventura (two towers), and Marina Palms Yacht Club & Residences (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), H3, 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 Greater Downtown Miami and South Florida alike.
As of June 30, 2013, less than 500 new condos were unsold out of a total of more than 22,200 units created in the Greater Downtown Miami market during the last South Florida boom that began in 2003, according to a recent CondoVultures.com report.
On the resale market, more than 1,600 condos are available for purchase at an average asking price of about $489 per square foot in the Greater Downtown Miami market as of September 29, 2013, according to the licensed Florida brokerage CVR Realty™.
Of the condos being marketed for resale in the Greater Downtown Miami market, about 81 percent of the units were created since 2003. The average resale asking price for the condo units created since 2003 is about $510 per square foot, according to Florida Realtors association data.
Overall in South Florida, about 1,925 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 June 30, 2013, according to a new 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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