200 New Condo Units Proposed For Miami's Coconut Grove Neighborhood Published on 12/28/2012 1:06:00 PM
A Greater Downtown Miami developer is proposing 200 new condo units as part of a mixed-use project at a high-visibility intersection in the Coconut Grove neighborhood of Miami, and in the process has boosted the total number of proposed towers to at least 98 in South Florida since the real estate crash began in 2007, according to a new report from CondoVultures.com.
The development group - headed by the father-and-son team of Pedro and David Martin - plans to construct the condo complex on a five-acre site at 2701 S. Bayshore Drive in the heart of Coconut Grove. As part of the proposal, the developer - which has a contract to purchase the land for an undisclosed amount from the current owner Coconut Grove Bank - intends to build a new headquarters for the bank, according to the Miami Herald.
The development group has an understanding about the Coconut Grove area as it is currently in the process of preselling nearly 100 units in its proposed Grove At Grand Bay condo project just down the street from the Coconut Grove Bank site.
With the newly proposed condo project in Coconut Grove, at least 14,465 condo units have been announced for the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties as of Dec. 28, 2012, 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 new CondoVultures.com report.
CondoVultures.com has recently completed its profile of condo trends in the third quarter of 2012 in the seven largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.
The Condo Vultures® Market Intelligence Report™ published a seven-part weekly series that analyzed the 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.
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.
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 majority 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 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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