Inigo Ardid explains how Key International is dealing with the slowdown: VIDEO

Developer also talked about difficulties securing construction financing

Oct.October 28, 2016 12:45 PM

Video by Alistair Gardiner

With construction well underway at the Harbour in North Miami Beach and more than 80 percent of its condos sold, Inigo Ardid isn’t too worried about the market slowdown. In fact, as he told The Real Deal Managing Web Editor Hiten Samtani, it might be a good time to start buying.

Ardid, co-president of development firm Key International, stepped aside at TRD’s Showcase & Forum last week to break down how his company is handling a downshifting condo market.

Key International’s favorable position came down to pricing and timing, he said. The Harbour’s 425 units have an average price of $700,000, Ardid said, whereas new construction in the nearby Sunny Isles Beach asks much closer to $5 million.

“We’re already making money on the project,” he said. “The rest is gravy.”

As for construction financing, Ardid said projects this cycle are mostly funded with buyer’s deposits. Whatever gap in the capital stack that needs to be filled with a bank loan is “no problem.”

It could pose a problem, however, for projects that aren’t already out of the ground. He said brokers might not show a condo development that’s not under construction because if it doesn’t get built, they won’t see a commission payday. No buyers mean no deposits.

“As long as you have the deposits,” he said, “you’re good to go.”

Ardid was one of more than a dozen expert panelists at TRD’s largest-ever South Florida Showcase & Forum last week at Wynwood’s Soho Studios. More than 4,500 real estate movers and shakers showed up for a day of industry intel, networking and checking out the latest new developments. — Sean Stewart-Muniz

Related Articles

From left: e.b. Solomont, Ron Shuffield, Mike Pappas, Oren Alexander and Phil Gutman

Unrealistic pricing bogs down Miami luxury condo market: TRD Showcase & Forum

From left: Amir Korangy and Secretary of Housing and Urban Development Dr. Ben Carson

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

From left: Stuart Elliott, Jerome Hollo, Michael Shvo, Laurent Morali and Lissette Calderon

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum

Miami Forum

Welcome to the 2019 #TRDForum!

AC Hotels by Marriott in Fort Lauderdale and Inigo Ardid

Key International scores construction loan for new Fort Lauderdale Beach hotel

Highland Park Center and Inigo Ardid

Key International sells Miami Health District building to TopMed Realty

Rendering of Boca Beach House

Developers launch sales of Boca Beach House condo project

Key International sells Little Havana apartments

Key International sells Little Havana apartments