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200 New Condo Units Unsold In Downtown West Palm Beach From Crash
200 New Condo Units Unsold In Downtown West Palm Beach From Crash
Published on 3/20/2013 5:07:13 PM

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A pair of bulk deals by Palm Beach billionaire Jeff Greene - the first in November 2012 and the second in January 2013 - has reduced the number of unsold new condos in the Downtown West Palm Beach and Palm Beach Island coastal market to slightly more than 200 units from the South Florida real estate boom that began in 2003, according to a new report from CondoVultures.com

Greene, who capitalized on the housing crash with credit default swaps and then unsuccessfully ran in 2010 for one of Florida’s two U.S. Senate seats, paid $34 million for the remaining 150 new residential condos and the commercial space in the 288-unit City Palms condo project on Hibiscus Street in the Downtown West Palm Beach and Palm Beach Island market, according to the Palm Beach Post.

Greene followed up with a deal recorded in January 2013 by paying $28.5 million for the remaining 166 unsold condos out of a total of 275 units in The Strand condominium on Evernia Street, according to the Palm Beach Post

With the pair of bulk deals, buyers now have purchased about 94 percent of the more than 3,400 units created in the Downtown West Palm Beach and Palm Beach Island market during the South Florida real estate boom, according to the analysis based on the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach and Palm Beach Island™

The unsold developer inventory does not include the several hundred units that were acquired by investment groups in earlier bulk deals but have not yet been resold to individual buyers, according to an analysis of Palm Beach County records.

"Jeff Greene has single-handedly backstopped the condo market of Downtown West Palm Beach with his bulk transactions," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Before Greene's acquisitions, the Downtown West Palm Beach condo market was selling developer units from the previous boom at a pace of less than 10 condos per month. The unanswered question is whether Greene's moves will bring a new level of pricing for buyers, sellers, and developers who are focused on the Downtown West Palm Beach market."

CondoVultures.com has been profiling condo trends in the fourth quarter of 2012 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties since the week of Jan. 14, 2013.

The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly series that analyzes the markets of Greater Downtown MiamiSouth BeachBal Harbour / Surfside / Bay Harbor IslandsSunny Isles BeachAventuraHollywood / Hallandale BeachDowntown Fort Lauderdale and the BeachPompano BeachBoca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.

The Downtown West Palm Beach and Palm Beach Island condo market is defined as Palm Beach Lakes Boulevard south to Southern Boulevard, and the Atlantic Ocean west to Australian Avenue / Interstate 95, according to the analysis based on the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach and Palm Beach Island™.

In the year 2012, buyers acquired more than 250 units - excluding Greene's 166-unit bulk deal at The Strand that transacted in 2013 - at an average price of about $232 per square foot for a total of $64.6 million in the Downtown West Palm Beach market, according to an analysis of Palm Beach County Property Appraiser records.

Compare this to 2011 when buyers purchased about 120 developer units for nearly $34.3 million for an average price of more than $250 per square foot, according to the report.

Overall, the Downtown West Palm Beach and Palm Beach Island market has 74 condo projects - with a minimum of 15 units - for a combined 7,300 units, according to the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach And Palm Beach Island™.

Despite the developer condo inventory available, at least six new condo towers with nearly 1,000 units have been proposed in the Downtown West Palm Beach area as of March 20, 2013, according to the Cranespotters.com Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.

Overall, more than 120 condo towers with nearly 16,400 units have been proposed for the tricounty South Florida region of coastal Miami-Dade, Broward, and Palm Beach as of March 20, 2013, according to the Cranespotters.com.

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.

Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports to stay informed on the latest market trends and to find out about our various Condo Vultures® Seminars. Looking for a property at a deep discount? Take a peek at the Vultures Database™ or view our Video Library. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database™. Our new books, the Official Condo Buyers Guide to Miami™Official Condo Buyers Guide To South Beach™Official Condo Buyers Guide to Sunny Isles Beach™Official Condo Buyers Guide to Downtown Fort Lauderdale and the Beach™Official Condo Buyers Guide to Hollywood / Hallandale Beach™Official Condo Buyers Guide to Downtown West Palm Beach™, and Official Condo Buyers Guide to Boca Raton / Deerfield Beach™, are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.

© Copyright 2013. Condo Vultures® LLC. All Rights Reserved.  


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