UPDATED, May 8, 1:52 p.m.: The view from the throne is looking bleak for Miami’s condo king, Jorge Pérez.
The Related Group CEO is slashing the price of a penthouse he owns at One Ocean to $10.95 million, a 45 percent discount off the original asking price of $20 million in 2016, according to the Wall Street Journal.
He paid about $4.2 million for the roughly 3,600-square-foot unit, reserving the penthouse while the 50-unit building at 1 Collins Avenue in Miami Beach was still under construction.
Pérez, who lives in a waterfront mansion in Coconut Grove with his family, said he previously rejected an offer of $15 million. “My expectations were way too high, I admit,” he told the Journal. “But I was responding to what I saw in that moment in the market, without any immediate need to sell. Now, I’m saying, ‘Boy I should have sold.’”
Other high-profile owners have also lost money reselling their high-end Miami Beach condos. Both art dealer Larry Gagosian and billionaire Leon Black sold their units at losses.
The deep reduction in price is in response to the oversupply of luxury condos in Miami. Related canceled one project, Auberge Residences & Spa Miami, in early 2016 as the market was showing signs of trouble. Pérez, a billionaire developer and majority owner of Related, said “now is not the time” to launch any new projects in the Miami area. His company has been working on apartment, affordable housing and mixed-use development in recent years.
Pérez’s four-bedroom penthouse at One Ocean features 4,000 square feet of outdoor space, a Jacuzzi, an outdoor summer kitchen and a wet bar. It’s on the market with Oren and Tal Alexander of Douglas Elliman. [WSJ] — Katherine Kallergis
Correction: An earlier version of this story listed an incorrect agent, as reported in the Wall Street Journal.