Miami Developer Jorge Perez Starts Presales of New Apogee Beach Condo Tower
According to a new report by Condo Vultures, an entity controlled by Miami developer Jorge Perez of the Related Group has launched preconstruction sales this week for the proposed 22-story Apogee Beach condo tower fronting the Atlantic Ocean in the city of Hollywood in Southeast Broward County.
Proposed pricing for decorator-ready units - referred to by some industry watchers as "raw" - begins at $350 per square foot for the 49-unit tower where condos are to range from two bedrooms to five bedrooms.
"This is going to be an interesting test as the Hollywood / Hallandale Beach coastal condo market is virtually out of new unit inventory," said Peter Zalewski, a principal with Condo Vultures LLC. "Individual purchasers and bulk buyers have acquired practically every developer unit built during the real estate boom in the Hollywood / Hallandale Beach market. Given the oceanfront location and the limited number of units, the proposed Apogee Beach condo project is a shrewd way to test the will of buyers for new condo product in Southeast Broward County."
The Hollywood / Hallandale Beach submarket in South Florida's Broward County is defined as Federal Highway (U.S. 1) east to the Atlantic Ocean, and Sheridan Street south to Holiday Drive (Broward / Miami-Dade County line).
The Hollywood / Hallandale Beach submarket has 176 condo projects with nearly 27,200 units, including 21 projects with more than 4,900 units created since 2003, according to the Condo Vultures.
As of March 30, 2011, developers had sold 96 percent of the Hollywood / Hallandale Beach coastal market condo inventory created since 2003, according to Condo Vultures.
Nearly all of the unsold original developer units are located in one project - the Trump Hollywood - that was officially acquired by a bulk buyer in the second quarter of 2011. Prior to the change in ownership, the bulk buyer had acquired the construction loan on the project in the fourth quarter of 2010, according to the South Florida Business Journal.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The Condo Vultures new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
The proposed Apogee Beach project could offer of a glimpse of how preconstruction contract purchases will be structured in the future in South Florida.
The Apogee Beach's escrow deposit schedule requires contract holders to post more than three times as much as the 20 percent deposit normally collected during the South Florida condo boom.
For many flip-minded speculators, the 20-percent deposit standard worked out to be a minimal bet on the South Florida condo market during the bull-market run that began in 2003, industry watchers said.
Now in 2011, buyers at the proposed Apogee Beach project are required to put down a 15 percent deposit at contract followed by another 15 percent deposit at the time of construction - or "ground breaking" - scheduled for January 2012, according to marketing materials.
A third deposit of 20 percent will be required once construction of the tower reaches the top floor, or "structure top off," according to marketing materials.
Another 20 percent deposit will be required upon completion of the project - or "building closure" - scheduled for August 2013, according to marketing materials.
Under the proposed Apogee Beach deposit schedule, preconstruction contract holders will have posted 70 percent of the purchase price even before the transaction is completed.
Designed by architect Carlos Ott, the proposed Apogee Beach project is comprised of five different floor plans with the layouts focused on users, according to marketing materials.
The smallest units will have nearly 1,700 square feet, featuring two bedrooms, a den, and 3.5 bathrooms. The three-bedroom units include a den and 3.5 bathrooms with nearly 2,350 square feet. The four-bedroom units feature a den, 4.5 bathrooms with either 3,125 square feet or 3,225 square feet, according to marketing materials.
The five-bedroom units feature two dens, 5.5 bathrooms, and more than 4,800 square feet, according to the marketing material.
In September 2010, the Miami entity PRH-Sian Hollywood LLC at 315 S. Biscayne Blvd. - the address of the Related Group's headquarters - purchased the more than 46,700-square-foot development site for $2.9 million in a U.S. Bankruptcy Court auction, according to Broward County government records.
The ultimate controlling entity of PRH-Sian Hollywood LLC is Perez Ross Holdings LLC with Jorge M. Perez, Jeffery Hoyos, and Matt Allen, according to Florida Secretary of State records.