South Florida: 285-Unit Waterfront Tower Proposed For North Bay Village Site Published on 12/31/2012 9:27:00 AM
An eight-story tower with 285 residential units is being proposed for a waterfront site on the northwest point of Harbor Island in the Miami suburb of North Bay Village as the South Florida real estate market increasingly shows signs of stabilizing from a crash that began in 2007, according to a new report from CondoVultures.com.
Plans call for the luxury residential project to feature 131 one-bedroom units, 122 two-bedroom units, and 32 three-bedroom units at 8000 West Ave., according to North Bay Village government records.
Unlike many of the other South Florida coastal markets experiencing a surge in proposed projects, this is the first new residential project proposed for North Bay Village. Plans call for the units to be rental apartments rather than condominiums, according to government records.
During the last South Florida real estate boom, many rental towers were ultimately converted into condominiums prior to or shortly after completion, industry watchers said.
As of Dec. 31, 2012, at least 98 new condo towers - none of which are in North Bay Village - with nearly 14,500 units are planned for 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 new CondoVultures.com report.
CondoVultures.com is scheduled to profile condo trends in the fourth quarter of 2012 in the nine largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of Jan. 14, 2013.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a nine-part weekly series that analyzed the markets of Greater Downtown Miami, South Beach, 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.
In North Bay Village, the developer - CLPF-NBV LP of Washington, D.C. - of the proposed 285-unit rental tower paid $13.8 million for the 4.5-acre site with entitlements in August 2012, according to Miami-Dade Property Appraiser records.
The seller - Casa Marina Development LLC in care of Miami-based Lennar Homes LLC - had planned to develop a pair of 21-story condo projects on the site during the last South Florida condo boom-and-bust cycle, according to government records.
Prior to that project starting, a Lennar-controlled entity developed the 360 condo project with four towers and more than 400 units on Harbor Island in North Bay Village in 2006, according to Miami-Dade County records.
Going forward, 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™.
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.
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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