In spite of the overall slowdown in the real estate market, prices of residential units continue to increase, which is great news for sellers and residential project developers. In Miami-Dade County, for example, condo units are selling at roughly 19% more than they were a year ago, and single family homes are up around 6%. It’s not an earth-shattering climb, but still it is a seller’s market, giving optimism to residential developers embarking on new projects, such as Palm Beach Jupiter Farms project. What once was actor Burt Reynold’s ranch will become a paradise of 30 private residences, set among untouched open space preserved for horse riding and other nature activities.
The residential rental market is also seeing some groundbreaking activity. In South Beach, for instance, eight buildings totaling 113 residential units recently sold for over $22M. The properties were purchased by Boardwalk Properties in the biggest deal South Beach has seen so far.
Long-awaited commercial projects are moving forward
Lending institutions had taken a step away from financing commercial construction projects due to market conditions, but this apparently has changed, as $332M was loaned to a commercial development company from Argentina. Consultatio is constructing a high-level exclusive, luxurious residential project consisting of 240 units in a glass tower in the upscale community of Bel Harbour. Oceana Bel Harbour, as it is called, is already giving Consultatio much to celebrate, as they have sold out or have reservations for most of the building. The project is expected to yield anywhere from $1.2 to $1.3 billion in sales proceeds.
West Palm Beach will soon have a new hotel and convention center, good news for the city where it is expected that 1,500 new jobs will be generated and around $1B in new revenue. The project includes a 225-seat restaurant, 403 rooms, conference facilities, spa and recreation facilities and ballrooms, all at a cost of $110M.