26th New Condo Tower Proposed For South Florida Since Crash Published on 3/21/2012 10:39:27 AM
A 26th new condo tower is being proposed for South Florida - this project in the Downtown Fort Lauderdale and Beach market - as signs emerge that portions of the coastal tricounty region are recovering from a devastating real estate crash that began in 2007, according to a new report from CondoVultures.com.
Developer Silvia Coltrane is proposing to build an 18-story condo tower with 170 units - dubbed the Orion - on an entire city block where the former Howard Johnson hotel stands vacant on Fort Lauderdale Beach Boulevard, according to the South Florida Sun-Sentinel.
"Developers are rushing to market with plans for more than two dozen new condo towers with nearly 5,400 units and counting in South Florida," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "The catalyst driving the wave of newly proposed projects is the strong condo absorption rate that has put South Florida on pace to sell out of boom-era units near the coast sometime in 2013. After the Hollywood / Hallandale Beach market, the only South Florida market with fewer remaining developer condos as a percentage of the units built during the boom is the Downtown Fort Lauderdale and Beach market."
Fueled by investors primarily from overseas, less than 4,300 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 Dec. 31, 2011, according to a recent CondoVultures.com report.
On a market-by-market basis, the Hollywood / Hallandale market is statistically sold out as fewer than five developer units out of a pool of nearly 5,000 units from the boom remain unsold as of Dec. 31, 2011, according to a previous report from CondoVultures.com.
The Downtown Fort Lauderdale and Beach market is a close second with less than 50 developer units remaining unsold from the 5,100 units created during the boom, according to a recent report from CondoVultures.com.
The unsold developer unit total excludes the 298-unit condo-hotel complex at 551 N. Fort Lauderdale Beach Blvd. that was formerly named the Trump International Hotel and Tower before being repossessed by the lender of record earlier this month, according to a recent report from CondoVultures.com.
The unsold condo total also excludes the 171-unit Fort Lauderdale Residences project - known as the W Fort Lauderdale - on Bayshore Drive that formally became a condo-hotel about a year ago, according to Broward County records.
Greater Downtown Miami has the distinction of being the single coastal neighborhood with the greatest number of new condos created during the boom with nearly 22,250 units. At the end of 2011, less than 1,750 units remained under the control of the original developers, according to a recent report from CondoVultures.com.
Condo Vultures® relied on public records and private research to complete this study over the course of the last three years.
The results of this exhaustive researching of deeds, condominium documents, and government files is the basis for a series of seven ebooks titled the Official Condo Buyers Guide™. The guides for Greater Downtown Miami, South Beach, and Sunny Isles Beach are already on available for purchase on Amazon.com.
This information is also the foundation for a new Condo Ratings Agency™ service designed to provide guidance on the financial stability of nearly 1,000 condo projects - old and new - with 125,000 units east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties.
On Fort Lauderdale Beach, Coltrane is reportedly seeking permission to revise her development plans for the Orion that was originally approved in 2007 as a 20-story, condo-hotel tower with 340 units just south of the historic Bonnet House Museum & Gardens near Sunrise Boulevard on State Road A1A, according to city of Fort Lauderdale records.
The proposed Orion condo site is located three blocks north of the former Trump International Hotel and Tower and six blocks from the W Fort Lauderdale project, according to Broward County Property Appraiser records.
As of March 22, 2012, at least five condo towers - Hollywood's Apogee Beach; Miami's 23 Biscayne Bay and MyBrickell towers; Sunny Isles Beach's Regalia; and Aventura's Bellini At Williams Island - are under construction, according to the CondoVultures.com Preconstruction Condo Projects list.
Construction on a a pair of 40-story condo towers at the proposed six-tower Brickell Citicentre complex in Greater Downtown Miami is scheduled to begin in the upcoming weeks, according to a new report from CondoVultures.com.
Other than the Brickell Citicentre and Bellini At Williams Island projects, none of the other developers with proposed condo towers have announced financing.
It is unclear how many of the other proposed towers could get developed 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 at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
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