Hollywood developer Chip Abele is converting his Circ Residences rental tower into a condo building, amid rising demand for newer units.
Abele’s GCF Development completed the 25-story, 386-unit tower at 1776 Polk Street in 2019. It’s now launching sales of the units as condos, with prices ranging from $450,000 to $1.3 million, according to a press release.
The apartment building is about 98 percent leased. Craig Studnicky, CEO of the brokerage ISG World, said the developer sent 45-day right of first refusal notices to tenants this week. His sales team is meeting with tenants who are interested in purchasing units, he said.
The rentals are asking between about $2,300 a month and $5,100 a month, according to Apartments.com.
The Hollywood Circle project includes the 111-key Circ Hotel, a 48,000-square-foot Publix supermarket, 1,500-square-foot Publix Liquors, 6,000 square feet of retail, a restaurant and rooftop bar. In January, GCF Development scored a $133.5 million refinancing from Deutsche Bank for the project, which replaced an existing loan and provided the developer with $15.9 million in new financing.
ISG World is leading sales and marketing of the condos, which include one-, two- and three-bedroom units. GCF Development is also investing millions of dollars into renovating the lobby and amenities, which include a pool deck and fitness center, Studnicky said. Interiors by Steven G. is working on the interior design.
Studnicky said the developer’s decision to convert apartments into condos “has everything to do with inventory.” Because older properties are facing new deadlines to comply with the state’s condo safety regulations, demand for newer buildings has increased.
“My agents are very reluctant to take somebody to a condo that’s more than 20 years old, unless it’s a cash buyer,” Studnicky said.
Eighty-five percent of all residential deals in the tri-county region last year were between $500,000 and $1.5 million, he added, calling it “the most popular price point in South Florida.”
Hollywood and Hallandale Beach have benefitted from rising prices in recent years. New projects in the two cities include BTI Partners’ two-tower, 856-apartment project with retail at 1701-1735 East Young Circle; and developer Ari Pearl and Witkoff’s planned Shell Bay Residences in Hallandale Beach.
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