Despite a view with blue skies as the limit, luxury condo building, The Caribbean, was one of the many casualties of the real estate crash that contributed to our Great Recession. Located at Collins Avenue and 37th Street, just north of Resort Row in Miami Beach, the oceanfront condominiums had trouble nailing down owners in the summer of 2009 who could close the deal, and developers like Christa Development of Victor, N.Y., and Bluerock Real Estate of New York City, and its lender, Corus Bankshares of Chicago, were struck with profound losses.
However, some innovative Miamians saw this as the perfect opportunity to make lemons out of lemonade. A recent article in the New York Times explains that real estate backer Melohn Properties took over the property from Corus last August at a mortgage price of $127.7 million, less than half the face value of the loan, according the building’s broker and our own Haute 100 member, Diane Lieberman.
Whereas last summer, only 14 units had been closed on, the Times reports that now there are only 15 units left in the 103-unit Miami Beach condo tower, perhaps because now the condos are selling for an average of $600 per square foot, nearly half the original price of $1,100 a square foot.
While South Beach reaps sales advantages due to its proximity to the ocean, downtown Miami continues to push for rising condo sales by emphasizing its architectural structure, including the new Icon Brickell. According to the New York Times article, the average price of sales within the complex were estimated at $404 in the first quarter while about 30 units have sold for less than $300 a square foot. The building’s $15 million entryway hopes to boost sales and draw in new investors.
Source New York Times