Developer Slashes Unit Count For Proposed Downtown Miami Highrise Project
As Greater Downtown Miami's next residential construction boom gains momentum in the aftermath of the last condo crash, at least one highrise developer is slashing - by half - the number of residential units in a newly revised mixed-use project slated for a high visibility site across from the Adrienne Arsht Center For The Performing Arts, according to a new report from CondoVultures.com.
Espacio Miami Properties LLC - a Florida entity ultimately controlled by the Spanish developer Inmobiliaria Espacio S.A. Espana - has been proceeding through the governmental process to obtain "approval of a substantial modification" for its proposed $412.5 million project - dubbed 1400 Biscayne Boulevard - that "reduces the density and intensity" of an existing Major Use Special Permit that was obtained by the site's former owner, according to city of Miami records.
Espacio Miami Properties purchased the nearly 2.9-acre site for $34.8 million in a pair of deals that transacted in June 2010 and July 2011, according to Miami-Dade County Property Appraiser records.
The newly revised plans call for a 55-story condo tower with 428 units and a 12-story office tower that combined would have 710,200 square feet of residential space, 139,900 square feet of "non-residential" space, and 873 parking spaces, according to the application.
Compare this to the original plan conceived during the last condo boom that calls for 850 residential units with 1.16 million square feet of space plus 43,500 square feet of "non-residential" space. More than 1,200 parking spaces were proposed under the original plan, according to government records.
Espacio USA executive Alberto Munoz told the Miami Herald: “The times have changed, and we didn’t want to take away views or impact the area heavily. We wanted something sustainable that did not overwhelm the city.”
On Oct. 17, 2012, Espacio Miami Properties' newly revised mixed-use proposal passed the Miami Planning, Zoning, and Appeals Board with a 10-1 vote, clearing the way for construction to begin in 2013, according to the Miami Herald.
The developer of the proposed 1400 Biscayne Boulevard project has said the construction process would be completed in two phases - with the 12-story office tower built first - that are expected to require about five years, according to the Miami Herald.
It is worth noting the Malaysia-based Genting Group announced plans in September 2011 - that are currently being revised - to build a six-tower mixed-use complex - that includes two condo towers and 1,000 units - to the immediate east of the 1400 Biscayne Boulevard site, according to a CondoVultures.com report.
CondoVultures.com is scheduled to profile new unit sales in the third quarter of 2012 in the seven largest coastal condo markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach.
Beginning the week of Oct. 15, 2012, the Condo Vultures® Market Intelligence Report™ plans to publish a seven-part weekly series analyzing new condo sales trends in 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.
Greater Downtown Miami is a 60-block stretch from the Julia Tuttle Causeway south to the Rickenbacker Causeway, and Interstate 95 east to Biscayne Bay. The market is comprised of the neighborhoods of the Brickell Avenue Area, Downtown Miami, and the Biscayne Boulevard Corridor, according to the Condo Vultures® Official Condo Buyers Guide To Miami™.
With the third quarter of 2012 activity, buyers have purchased about 95 percent of the more than 22,200 condos created in Greater Downtown Miami during the boom that began in 2003, according to the new report from CondoVultures.com.
Competition for buyers is intensifying in Greater Downtown Miami as bulk owners attempt to resell units at projects such as the Paramount Bay and Vizcayne - formerly the Everglades on the Bay - for a premium and a series of recently announced new projects strive to catch the attention of buyers, according to the Preconstruction Condo Projects list compiled by the licensed Florida brokerage CVR Realty™.
Spurred by a strong pool of foreign investors, attractive land prices, and competitive building costs, developers in Greater Downtown Miami are proposing, already constructing, or recently completed at least a dozen towers - 23 Biscayne Bay, 1010 Brickell Avenue, 1080 Brickell Avenue, 1100 Millecento Residences, 1101 Brickell Avenue, Brickell Citicentre, BrickellHouse, ICON Bay, MyBrickell, One Bayfront Plaza, and the Resorts World Miami - with more than 4,800 units, according to the report.
As of Oct. 18, 2012, at least 77 condo towers with more than 10,850 units are proposed - with 12 towers under construction and one tower already completed - in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach, according to a recent CondoVultures.com report.
An additional 940 condos - that were built and sold to individual buyers since 2003 - are currently on the resale market at a median asking price of nearly $435 per square foot in Greater Downtown Miami as of Oct. 18, 2012, according to an analysis based on Florida Realtors association data.
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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