The developers of the waterfront St. Regis Residences Miami are downsizing their plans and increasing condo prices, The Real Deal has learned.
Instead of two 46-story towers, Related Group and Integra Investments will build one 46-story tower. And instead of about 330 units, the two Miami-based developers plan about 150 condos on the site at 1809 Brickell Avenue, said Related Group president Jon Paul Pérez. Related and One Sotheby’s International Realty, which is handling sales, on Monday began notifying buyers who have reservations for units, Pérez said.
The changes were spurred in part by buyers who were seeking a smaller building with larger units, he said. The project is more than 50 percent reserved. The unsold units will increase in price by about 10 percent to 15 percent, Pérez said.
Rising construction costs weren’t a factor in the decision, he said.
As previously planned, condo prices started at $2.8 million, for units ranging in size from 1,300 square feet to 7,000 square feet. Related and Integra will honor the per-foot price for buyers with reservations in the east tower. Buyers in the 183-unit west tower, which was eliminated, will be given the option to buy larger units for a higher price, Pérez said.
The condo project now has a projected sellout of more than $1 billion, down from a $2 billion projected sellout that was announced last December when St. Regis was unveiled as two towers. The project is “commanding the highest prices ever achieved in Brickell” at more than $2,000 per square foot, Pérez added.
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Robert A.M Stern Architects is designing the tower, and Rockwell Group will design the interiors. St. Regis Residences will still have the same amount of amenities – more than 60,000 square feet, including a St. Regis tearoom, a wellness center, marina, sky lounge, plus a pool deck with cabanas and pickleball and tennis courts. Pérez said the architect will likely rotate the building so that more units have water views and the developers could add townhome units.
Pérez said that canceling plans for the west tower, which was to have smaller, less expensive units, makes it a more “exclusive” project “that will create additional value” for the buyers. He acknowledged that it’s a “tough decision when you eliminate a tower.”
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The developers will also eliminate the underground parking, reducing the construction cost and timeline, and instead have all above-garage parking.
Daniel de la Vega, president of One Sotheby’s, said in a statement that Pérez and his team are “not afraid to make the difficult choices needed to drive a project to its full potential.”
The sales center is expected to be completed by the end of the year, and the developers could convert reservations to contracts by March. Construction could start by the end of 2023.
Miami-based Integra has owned the 3-plus acre site, home to the former Stanley Axelrod Towers, since 2014. It paid $14 million for the 17-story building, which was constructed in 1966, and will be demolished.
The change in plans is indicative of a shift toward more high-end projects with fewer units, allowing developers to sell pricier condos.
Projects that fit that bill include the Aman Residences under construction in Miami Beach, and Related’s planned condo development on Fisher Island, with partners BH Group and Teddy Sagi. Pérez said he’s met with about 20 prospective buyers for the Fisher Island development, which is in a friends and family stage of presales. Prices there are expected to average $30 million per unit, plus more for penthouses.
A St. Regis-branded development is also planned for Sunny Isles Beach. Fortune International Group and Chateau Group are the developers of that project.