Boca Raton Bulk Deal Spurs Rise In Total Developer Sales In 2011 Published on 2/22/2012 12:21:00 AM
A 15-unit bulk deal in the coastal Boca Raton / Deerfield Beach condo market triggered a 12 percent increase in total developer sales in 2011 compared to the same January through December span in 2010, according to a new report from CondoVultures.com.
The buyer - Palmetto 455 Inc. with Marc and Melissa Malaga as directors - paid nearly $7.8 million - or $209 per square foot - for the remaining developer units in the 16-unit Palmetto Fifth Avenue condominium on East Palmetto Park Road in Downtown Boca Raton on Dec. 19, 2011, according to an analysis of Palm Beach County records.
With the bulk deal, buyers in the Boca Raton / Deerfield Beach market acquired 55 units at an average price of nearly $550 per square foot in 2011 compared to 49 units at an average price of nearly $960 in the same period of 2010, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Boca Raton / Deerfield Beach™.
"As developer condos are acquired and prices rise in Miami-Dade and Broward counties, investors are increasingly considering the unsold boom-era inventory in the Boca Raton / Deerfield Beach coastal market," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "As investors search for unsold developer inventory, the highest percentage of unsold developer inventory from the boom is located in the Boca Raton / Deerfield Beach coastal condo market. The challenge as always will be achieving the resale prices that many investors demand."
CondoVultures.com is examining the latest residential real estate trends in 2011 in the seven largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.
Since the week of Jan. 16, 2012, the Condo Vultures® Market Intelligence Report™ has been publishing a seven-part series analyzing new condo sales trends in 2011 in 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.
The coastal Boca Raton / Deerfield Beach market is defined as Spanish River Boulevard south to Hillsboro Boulevard, and the Atlantic Ocean west to Federal Highway / West Dixie Highway, according to the Condo Vultures® Official Condo Buyers Guide To Boca Raton / Deerfield Beach™.
In the fourth quarter of 2011, buyers acquired 25 new condos at an average price of less than $375 per square foot in the Boca Raton / Deerfield Beach market compared to less than five units at an average of less than $825 per square foot in the same October through December period in 2010, according to the report based on Palm Beach County Property Appraiser records.
Developers created a dozen condo projects with nearly 1,050 units in the coastal Boca Raton / Deerfield Beach market during the South Florida real estate boom that began in 2003, according to the Condo Vultures® Official Condo Buyers Guide To Boca Raton / Deerfield Beach™.
Overall, the Boca Raton / Deerfield Beach market has 114 condo projects - with a minimum of 15 units - for a combined 9,500 units, according to the report.
As of Dec. 31, 2011, buyers have acquired nearly 710 developer units for nearly $570 million in the coastal Boca Raton / Deerfield Beach market, leaving less than 330 units still unsold from the condo bubble that began in 2003, according to Palm Beach County records.
At the current pace of about five developer unit sales per month in 2011, the coastal Boca Raton / Deerfield Beach condo market has more than 70 months of remaining new condo inventory available, according to the report.
Based on nearly 32 percent of the new developer units still unsold as of Dec. 31, 2011, the coastal Boca Raton / Deerfield Beach market ranks tops for remaining inventory among South Florida’s seven largest condo markets east of Interstate 95 through 2011.
It is unclear if the coastal Boca Raton / Deerfield Beach market will retain this distinction in the months ahead given a recent weakening of average developer sales prices.
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 at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
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