Units in the luxurious three-tower condo project, known simply as ICON Brickell, are seeing a significant slice in prices—by a hefty 30 percent, in hopes of luring buyers to a closing point.
Apparently, the Related Group made negotiations with HSBC, Bank of America, and Wells Fargo, their lenders for the project, which will offer deep discounts for buyers with current contracts. Considerably a power play by the banks, they are hoping for momentous results. Construction lenders have also jumped onboard, offering short-term, fixed-interest, five year loans.
These price cuts are undoubtedly aftershocks of the troubled market and the effect it’s had on the billion-dollar ICON. Closings have come to a halt, as people are hesitant to pay full price for these units. So far, the programs have been initiated in the first two of the three towers, the third of which contains the Viceroy Hotel.
As is the trend with condo developers these days, requesting the ability to cut unit prices, ultimately at the cost of the lender. Most lenders in South Florida are cautious to take on the risks associated with property loans, with considerable factors like price declines and foreclosures still strongly permeating the market.
Sales made as recently as September 30th have seen dramatic decreases in current pricing, according to Condo Vultures, a condominium research firm.
Via: The Miami Herald