Updated, Oct. 9, 10 a.m.: In another sign that Miami’s luxury condo boom is reaching its peak, South Florida’s dominant developer, Related Group, has dropped the required deposits on one of its Brickell area projects from 50 percent to 30 percent, The Real Deal has learned.
Related, which is developing about 20 percent of all new condo projects proposed or under construction in coastal South Florida, has sent out fliers offering preconstruction units at its Brickell Heights 02 at the reduced deposit rate — at least temporarily. It is the first time the giant Miami-based developer has marketed a lower deposit structure during this cycle.
“We have reached our presales requirements and completed our capital stack at Brickell Heights. Our loan is closed and we just have few units left, priced very attractively,” Carlos Rosso, president of Related’s condominium division, said. “This 30 percent deposit is a limited offer and brokers and buyers have responded extremely well. We just want to sell out the remaining inventory, which obviously is priced higher, and move to the next projects.”
Rosso added” “We are launching more projects and continue to be very bullish on Miami.”
Designed by Arquitectonica at 850 Miami Avenue, Brickell Heights 02 is planned to have two towers of 50 stories and 47 stories. The units will have 9-foot to 13-foot floor-to-ceiling windows, wrap-around terraces and high-end appliances. The project will also have an Equinox Fitness Club and spa, and Soulcycle on site.
One bedroom units are being marketed at prices starting in the $400,000s, two-bedroom units from the $500,000s, three-bedroom units in the $800,000s, and penthouses starting from $1.5 million.
Brickell Heights 02’s in-house sales team’s emailed flier offers “30 percent down for a limited time only,” saying the offer “can change at any time without notice.” The special deposit structure allows 10 percent down at contract, 10 percent down in 60 days, 10 percent down in another 60 days, and the 70 percent balance at closing, which is expected in 2017.
The lowered deposits come amid a flurry of new condo developments announced for South Florida, including more than 70 new condo towers with nearly 20,200 units in Greater Downtown Miami, including the Brickell area, according to Peter Zalewski’s preconstruction condo projects website CraneSpotters.com.
Related, led by Jorge Perez, is not the first to lower the deposit structure on a preconstruction condo project in recent months, as developers battle to offset the strengthening U.S. dollar against many foreign currencies.
Swire Properties announced earlier this year that it was lowering down payments for a condo at one of its Brickell City Centre residential towers, Rise, to 35 percent. And Property Markets Group also offered some foreign buyers deals that allow them to pay 50 percent deposits in installments prior to closing for units at Echo Brickell, Echo Aventura, Muse in Sunny Isles Beach, and Sage Beach in Hollywood.