Miami’s preconstruction inventory is shrinking, thanks in part to a handful of canceled or paused projects, a new report shows.
About 83 percent or 16,714 of the roughly 20,000 units in the pipeline were presold as of April, according to the ISG Miami Report. While the percentage is up from the 80 percent that ISG reported last May, the total pipeline shrunk by about 3,200 units. ISG surveys the sales centers and sales teams of projects in Miami, Fort Lauderdale, and the Beaches, which includes Hollywood and Hallandale Beach.
Projects that have been shelved over the past year include Fasano Residences Miami Beach, a 67-unit luxury condo project planned for the Shore Club hotel property. When HFZ Capital Group canceled the development in November, sources said it was between 40 percent and 45 percent presold.
Naranza at Edgewater, a 137-unit, 19-story condo tower planned for the Miami neighborhood, was also canceled, according to the report. Prodesa launched sales for the project at 430 Northeast 31st Street in December 2016 with Fortune International Group. Prices started at $325,000 for one-bedroom units.
Since ISG released its report last year, Spider also axed plans for its Edgewater condo building called Spark. The 27-story, 56-unit condo project was slated to rise at 522 Northeast 34th Street with units starting at $500,000. Spider launched sales in 2015. The developer also converted another Edgewater project, 25 Edgewater, from condos to rentals.
Kasa Bay Harbor, a seven-story, nine-unit development that launched sales in 2016, was also canceled, as was Casa Verde, another boutique project in Bay Harbor Islands.
Of the 3,300 unsold units, about 875 condos are in projects that haven’t broken ground yet. In Brickell, the recently launched 135-unit Una Residences is about 20 percent presold. Aston Martin Residences, which broke ground in October at 25 percent presold, is now up to 35 percent presold, according to the report.
Lionheart Capital’s Ritz-Carlton Residences, Miami Beach was 70 percent presold, according to the report, an increase from the 60 percent in presales ISG reported a year ago. Terra’s Eighty Seven Park in North Beach has sold about 70 percent of its units. The 548-unit Brickell Flatiron is 75 percent presold, and Rise at Brickell City Centre, which opened in 2016, still has 45 percent of its 390 units available for sale. ISG recently took over the remaining sales at Reach and Rise, which total about 25 percent of the 680 condos.
In Broward, projects like the Conrad and W Fort Lauderdale still have significant inventory remaining. The Conrad Fort Lauderdale Beach condo-hotel, a 290-unit project that has been mired in litigated and delays, is 47 percent sold. The W, owned by the Related Companies and completed in 2009 and recently renovated, is 55 percent sold, according to the report.