Related Plans 1,200 Miami Condos Across From Its 1,800-Unit ICON Brickell Published on 12/13/2013 4:49:00 PM
As the South Florida condo market rebounds from the devastating real estate crash of 2007, Miami billionaire Jorge Perez of the Related Group - the tricounty region's most prolific vertical residential developer - is proposing to build three towers with 1,200 condo units across the street from one of his earlier three condo tower projects - the 1,800-unit ICON Brickell - in Greater Downtown Miami, according to a new report from CondoVultures.com.
For the Related Group, the newly proposed project - dubbed the One Brickell and slated to go up at 444 Brickell Ave. - represents the 27th, 28th, and 29th new condo towers with a combined 7,500 units slated to be developed by the Miami-based company in the coastal tricounty region of Miami-Dade, Broward, and Palm Beach counties, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
By comparison, the Related Group developed 24 new condo towers with more than 9,125 units in South Florida's seven largest coastal markets during the last boom-and-bust cycle that began in 2003, according to the Condo Vultures® Official Condo Buyers Guide™ series.
With the new Related Group project, developers are now proposing at least 45 new towers with more than 13,400 condo units in the Greater Downtown Miami market that stretches from the Julia Tuttle Causeway south to the Rickenbacker Causeway, and Biscayne Bay west to Interstate 95 as of December 23, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Overall in South Florida, at least 182 new condo towers with more than 24,675 units are now proposed, planned, under construction, or recently completed in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach as of December 23, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
(It is worth noting, real estate expert Peter Zalewski - founder of CraneSpotters.com in conjunction with the Miami Association Of Realtors - narrates weekly Official Preconstruction Condo Project Tours of South Florida's hottest coastal market, including Greater Downtown Miami, on Saturdays and Sundays during the winter tourism season.)
CondoVultures.com is scheduled to profile condo trends in the third 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 October 14, 2013.
The Condo Vultures® Market Intelligence Report™ plans 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.
For the proposed One Brickell project comprised of 80-story, 70-story, and 55-story towers, a Delaware corporation controlled by the Related Group paid $104 million - using a $53.5 million loan from New York City's DB Private Wealth Mortgage - for a pair of contiguous lots with a total 4.1 acres of land on the south bank of the Miami River in a deal that was recorded on December 10, 2013, according to Miami-Dade County records.
The land for the proposed One Brickell project has a 2013 market value of nearly $44.6 million, according to the Miami-Dade Property Appraiser.
With the proposed One Brickell project, the Related Group is now in the midst of developing nearly 30 South Florida condo towers - including nine projects with nearly 1,500 units that are already under construction or recently completed - with an overall total of nearly 7,500 units, including the Brickell Heights, Hyde Midtown, Paraiso Bay, and SLS Hotel & Residences projects in Greater Downtown Miami; the Armani Residences By Cesar Pelli in Sunny Isles Beach; the Hyde Resort And Residences in Hollywood; and the ICON Palm Beach north of Downtown West Palm Beach, according to the Preconstruction Condo Projects Database™.
Additionally, the Related Group is currently constructing - or recently completed - the 1100 Millecento Residences, ICON Bay, and MyBrickell projects in Greater Downtown Miami; the Baltus House in the Morningside area of Miami; the proposed One Ocean and Marea in the South Beach market; and the Beachwalk and the newly finished Apogee Beach towers in the Hollywood / Hallandale Beach market in Southeast Broward County, according to Cranespotters.com.
For the Related Group, the Greater Downtown Miami market area represents the majority of the proposed projects by total units as 15 towers with nearly 5,100 units have been announced, according to the report.
The Downtown West Palm Beach market ranks second with six towers and more than 1,050 units proposed, according to the report.
The Hollywood / Hallandale Beach coastal market in Southeast Broward County ranks third with three towers and more than 750 units, according to the report.
The Sunny Isles Beach market ranks fourth with two proposed towers and 500 units, according to the data.
The South Beach market ranks fifth with three towers and about 80 units, according to the report.
Some six years after the South Florida real estate crash began in 2007, four new condo projects (in order) - 23 Biscayne Bay, 4001 North Ocean, Apogee Beach, and Bellini Williams Island - have already been completed in the tricounty region and 44 other buildings - Aventura's Echo Aventura (two towers), and Marina Palms Yacht Club & Residences (one tower); Bal Harbour's Oceana Bal Harbour; Fort Lauderdale's Adagio Residences; Greater Downtown Miami's 1100 Millecento Residences, Bay House; Brickell Citycentre (two towers), BrickellHouse, Centro, Habitat II, ICON Bay, MyBrickell, Nine At Mary Brickell Village projects; Hallandale Beach's Beachwalk; Hollywood's Costa Hollywood (two towers), H3, Positano Beach; Sage Beach (two towers); Key Biscayne's 101 Key Biscayne and Oceana (two towers); Miami's Baltus House in the Morningside area and Grove At Grand Bay (two towers) in Coconut Grove; Miami Beach's 321 Ocean Drive (two towers), Faena House, Glass, Marea South Beach, 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 recent CondoVultures.com report.
The push for new condo construction comes as the boom-era unit inventory is dwindling in South Florida.
Fueled by investors primarily from overseas, 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 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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