Fast-Selling Projects Put Related Closer To Construction Funding
At least three condominium projects recently unveiled by the Related Group are selling at a brisk pace, the Daily Business Review has learned, setting the developer on the fast track to securing the construction financing needed to make those projects happen.
Paraiso Bay, a three-tower development on Biscayne Bay at 600 NE 31st St. in Miami's Edgewater neighborhood, has sold 70 percent of the units in the first planned tower in just over two months, said Carlos Rosso, Related's head of condo development.
The quick pace of sales means Related is now deep in the next step of development, securing what will likely be a multimillion-dollar loan from a lender to cover half of construction costs.
"We are still finalizing the construction pricing, but we have a couple of lenders aligned," Rosso said.
The sales at Paraiso Bay have averaged $550 per square foot, he noted.
"The demand is coming from a combination of things," Rosso said. "It's a bit of Art Basel. It's a bit of the fact more people come and see Miami. And I think it's the product. People don't just see the price. People see the location."
Paraiso Bay is not the only Related project with a high number of sales in a brief period of time. Hyde Resort and Residences on Hollywood Beach, which kicked off its marketing six weeks ago, is 50 percent sold at an eye-catching average of $670 per square foot, according to Rosso. That's more than double the $316 average price per square foot for Hollywood Beach properties as calculated by real estate website Trulia.com.
The latest of Related's condo projects also is selling at a relatively fast pace. Brickell Heights is a 690-unit project at 850 S. Miami Ave. in the Brickell district, which is seeing large-scale development and plans for more major projects. It officially kicked off sales Monday with a party at the future construction site.
Hundreds of guests, including Miami Mayor Tomas Regalado and City Commissioner Marc Sarnoff, were feted as the developer showed off renderings for the future towers in a slick promotional video.
"This is going to be the greatest quarter anywhere that's not New York City," Related CEO Jorge Perez said at the event, "And this right here will the grand baby."