The Trump Towers on Collins Avenue in Miami Beach was co-developed by both the Related Group and Dezer Properties, but now Dezer Properties have taken over the Trump Towers and have assumed the remaining debt on the mega condos.
The three-tower, 813 unit condominiums have been taken over by Dezer Properties and are being sold for considerably less then they were bought. The prices for the Trump Towers on Sunny Isles are being cut by at least 30 percent, according to Dezer Properties President Gil Dezer.
In fact, the prices of these skyscrapers have been so affected by the economy that according to some real state experts, the once competing prices for the high-priced towers, are now ranking below other oceanfront properties across the country.
Related Group still remains one of the most prominent and aggressive developers in real state, but unfortunately they have had to back out of other projects besides the Trump Towers.
In fact, last July they were also known to have given up ownership of the City Place South Tower, located in West Palm Beach, to Scotia Capital.
The market is still changing and there are is hope for a better economy in the future. Wells Fargo has decided to extend financing on the Trump Towers four more years, because there are still over 400 unsold units in the tower (435 to be exact) and with a four year plan, it would seem more possible to finish selling them all.
The declines of the prices are becoming really obvious. In the beginning, during the preconstruction era of the skyscrapers, the cost per square foot started between $600-$700, and now with the economy down the toilet and the real estate market stuck with it, the prices are about $350 per square foot, considerably less than before.
In an article in the Miami Herald, David Dabby, President of Coral Gables-based Dabby Group Advisors mentions that “there’s no future for new construction until the overhang is done,” he said. “They have to get rid of the problem before they can even think of the next project.”