The Miami Preconstruction Market is Back



Preconstruction has returned to Miami.
The developer, Gil Dezer has new Miami condos in the Sunny Isles Beach area that will go on sale this year in June. The new Miami real estate, called the Porsche Design building, will have a total of 132 condominium homes ready to be purchased for all who have been waiting to buy Miami condo. He is sparing no expense on the sales center that will be ready to receive visitors in June with $3 million designated for this project alone. The building doesn’t currently have a website, and construction on the 57 story building will not begin until the spring or summer of next year. After construction has begun, it will take until at least the summer of 2016 for this new Miami real estate to be completed.

Even though it is in the Miami preconstruction stage, many people have revealed an interest in these condos mainly because of the robotic parking system it will have. This system will make it possible for residents to park several vehicles near their new homes.

According to Dezer, he will not be meeting with anyone who has only suggested a passing interest in purchasing a home. While he is in the planning stage, he is more interested in only conversing with those who seriously want to buy a condo in this building.

In order to keep a list of only the most determined customers, Dezer will only meet with interested parties who deposit $100,000 into escrow. The ending price of the condos will be around $1,000 a square foot with condominium homes ranging from $3.9 million to $14.5 million.

Dezer will offer the deposits back to those who decline to purchase one of the homes but so far, no one has requested a return of their money.

Currently, Dezer has had 27 highly motivated people place their $100,000 deposits into escrow and has an appointment book filled for the next two months. He made 15 reservations for 13 Latin American clients, one American citizen and one Russian who all applied the required 10 percent down payment toward the purchase of their homes. The implication is that Dezer has $400,000 deposited for a product that has at least four years before it can be delivered to the clients.

At future dates, those who made their deposits will need to make further commitments toward this project with a second 10 percent required when the contract is signed and a third 10 percent when construction on the building begins.

According to Dezer, the schedule helps people make the plans they need to make to purchase new real estate.

Miami condos near the beach are not the only property on a schedule. In recent years past, Miami has appeared to be an area that had more properties for sale than buyers. Now that the prices have come down, people are starting to buy again. People are even beginning to believe that even more buildings are needed in Miami.

Research done by the Miami Downtown Development Authority (DDA) found that of the 23,000 condos available in Miami, only 62 percent had been purchased. In the year 2010, the number rose to 74 percent with an even larger percentage in 2011 at 85 percent. Although the numbers for 2012 are not officially known, DDA executive director, Alyce Robertson is willing to say that the percentage may be even higher than 90 percent for this year.

Another Miami preconstruction building, MyBrickell that is being developed by the Related Group, began accepting reservations last year in September. Construction doesn’t start until March, but so many people want to buy a condo in this building that they are nearly 90 percent fully reserved and have found it necessary to increase the price.

The Related Group started selling condominium homes at a price of $300 per square foot, according to condominium division president, Carlos Rosso. The price is now $350 per square foot with 170 of the 192 units currently reserved. 120 of those reserved are now in the contract phase.

During construction, future homeowners will be required to pay 80 percent of the purchase price with the remaining amount due at closing. Now that MyBrickell has seen such great success, the Related Group has started developing another building, Millecento Residences that will have double the number of condominium homes for sale at the price of $370 per square foot.

Not far from MyBrickell is BrickellHouse that will begin construction this summer. Half of the 374 condominium homes have already been reserved with a 10 percent deposit in fewer than 120 days.

Sales director, Alicia Cervera Lamadrid states that she has been able to procure several sales very quickly even though she doesn’t have massive marketing resources at her disposal. The website isn’t even finished yet, and she doesn’t have use of a sales office.

The one promotional event Cervera Lamadrid had for the building was held at a desolate lot with food and a DJ, and they weren’t able to present a model of the building. None of that appears to have mattered to the guests because they were willing to purchase these homes at their selling price of $400 per square foot.

One buyer, a native of Toronto, Vince Pileggi, likes the modernity of the building. It has been a long-time dream of his to purchase a home in Miami, and he found that there is no better time than right now to do so.

The developers of BrickellHouse are using the schedule approach to selling their condos as well. During the construction phase, 70 percent of the price will be due. Although the developer, Harvey Hernandez, has considered raising the price, so far he hasn’t done so to keep from slowing down sales. This measured approach to sales has been given the credit for increasing Miami condominium home sales.

Those unwilling to wait four years to move into a new home also have options in the Miami area. Cervera Lamadrid’s property, Ocean House in the stylish South of Fifth area are ready for new buyers to move in right now. People might want to hurry because according to Diane Lieberman of SBI Realty, Miami is rapidly losing its currently available real estate.

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