4th New Condo Project Begins Construction In South Florida Since Crash Published on 12/27/2011 3:52:00 PM
A fourth new condo tower - the ultra-luxury Regalia project with 5,500-square-foot units in Sunny Isles Beach - has started construction in South Florida as signs of the region's dramatic real estate crash of 2007 begin to improve in the coastal neighborhoods of the tricounty region, according to a new report from CondoVultures.com.
The developer - Regalia Beach Developers LLC with Louis R. Montello as manager of the Aventura, Fla.-based entity - is proceeding with the construction of a 43-story tower with 40 units located on an oceanfront site at 19505 Collins Ave., according to Miami-Dade County records.
The Regalia project is planned for a 1.1-acre development site on the border of the wealthy town of Golden Beach - known for multimillion dollar oceanfront mansions - in Northeast Miami-Dade County.
The Regalia is the first of four new condo towers proposed for Sunny Isles Beach to begin construction.
The Regalia's development group - which was originally Golden Beach Developers LLC with Montello as the manager - purchased the site for $24 million in a deal recorded with the Miami-Dade County Clerk of the Court in September 2011, according to a CondoVultures.com report.
Preconstruction pricing at the Regalia starts at nearly $1,100 per square foot, according to the licensed Florida real estate brokerage CVR Realty™.
The Regalia is one of three South Florida project to begin construction in the fourth quarter of 2011.
In the month of December 2011, veteran developer Martin Z. Margulies initiated construction of the proposed 70-unit Bellini At Williams Island project in the city of Aventura just west of Sunny Isles Beach, according to the Miami Herald.
Miami developer Jorge Perez of the Related Group also held a "ground breaking" ceremony for the proposed 49-unit Apogee Beach project in the city of Hollywood in Southeast Broward County in December 2011, according to a recent CondoVultures.com report.
In June 2011, the Melo Group began construction - and subsequently assembled a crane - for the development of the nearly 100-unit 23 Biscayne Bay tower in the Biscayne Boulevard Corridor of Greater Downtown Miami, according to a CondoVultures.com report.
Overall, developers are now proposing to construct a combined 20 towers with more than 4,200 units east of Interstate 95 in the tricounty region of Miami-Dade, Broward, and Palm Beach counties, according to the CondoVultures.com Preconstruction Condo Projects list.
Fueled by a surge in cash buyers from overseas, developers are proposing 10 Greater Downtown Miami towers including the 23 Biscayne Bay project, the four Sunny Isles Beach projects including the Regalia, two towers in Miami Beach, two towers in Downtown West Palm Beach, the Bellini At Williams Island tower in Aventura, and the Apogee Beach condo project in Hollywood, according to the report.
Developers are proceeding with new construction projects despite the existence of about 4,700 units that remain unsold from the last real estate boom as of Sept. 30, 2011, according to a recent CondoVultures.com report.
It is unclear how many of the proposed towers could get developed in the short term as construction financing is challenging - and expensive - to secure, industry watchers said.
To overcome the 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.
Despite the larger deposits being required, presales for new towers have topped 530 units as of Dec. 20, 2011, according to a recent CondoVultures.com report.
The most recent South Florida condo boom produced nearly 49,000 units in the 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, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide™ eBook series.
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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