Looks like everyone is trying to make some money in the downturned economy. Condo Vultures are everywhere. Vultures are everywhere, but you can't blame them. If I had the money I would probably do the same thing.
Condominium units are being offered for bulk sale at a newly-built Brickell high-rise.
BY MATTHEW HAGGMAN
mhaggman@MiamiHerald.com
Want to buy a condominium on Brickell Avenue with sweeping views of Biscayne Bay and a short stroll away from a revived South Miami Avenue buzzing with new restaurants and nightlife?
You have 346 units to choose from -- and the developer wants you to buy all of them.
A newly built two-tower condo project called 1060 Brickell Avenue is putting 60 percent of its units up for sale in hopes of finding a bulk buyer.
Adam Greenberg, a Miami broker who is marketing the units, said the developers realized that selling individual units would take too long in this sluggish market.
''These developers don't want to keep the units and be a rental owner, that's not what they do,'' said Greenberg, the managing director of BayBridge Real Estate Group.
The bulk offer is another sign of growing impatience with South Florida's struggling housing market. Many condo builders are trying to unload units in a tight credit market and contracting economy -- and as thousands of new condo units hit the market.
Few bulk deals have been completed, however, despite an enormous inventory of unsold units and hordes of vulture buyers trolling for bargains.
''It's like the Wild West; the buyers have an itchy trigger finger,'' said Jay Massirman, president of Rivergate Residential, a Miami firm that acquires residential real estate. ``But when you look at the numbers and look at the market, it's hard to make a transaction work.''
The sticking point has been price: Vulture buyers want steep discounts while developers are holding out for better prices.
Lenders, meanwhile, have largely been reluctant to foreclose on developers struggling to repay loans amid slow sales. This has given more breathing room for builders hoping for better offers.
Most bulk deals, thus far, have been for townhomes and condos in suburban areas. The few bulk sales for high-rise condos have largely been internal deals. For instance, Miami builder Related Group joined with a Philadelphia investor to buy 146 of its own units at the 528-unit 50 Biscayne building in downtown Miami.
''There has been this stand-off,'' said Massirman, referring to developers selling units and bulk buyers. ``There has been nothing forcing these people to sell.''
The 576-unit 1060 Brickell, in the heart of Miami's Brickell neighborhood, was finished earlier this year. It was built by Extell Development, a New York City firm with projects in Boston and New York, including the W Hotel in Times Square.
Greenberg said he's betting he can sell the units at 1060 Brickell because the developer is willing to slash prices deeper than other builders have. Greenberg declined to give an asking price but said the builder will entertain offers in the range of the low $200s per square foot.
By comparison, when Related Group purchased its own units in bulk at 50 Biscayne the price was about $250 a square foot.
To date, downtown condos produced during Miami's housing boom have experienced a better closing rate than many had expected. Since 2003, 17,299 condos have been completed -- with 12,169 closing, according to a recent survey by condovultures.com. That is a 70 percent closing rate.
But it has been a struggle to close units in the remaining condo buildings with excess inventory.
While lenders have generally been patient in allowing builders to close units, some have grown impatient. Two weeks ago, Wachovia Bank filed papers in Miami-Dade Circuit Court to foreclose on dozens of unsold units in the Miami River condo, Wind.
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