Miami Developer Loses New 324-Unit Condo Complex To Lender
MIAMI, FL--A Miami developer who was unable to sell a single unit in the new 324-unit
Terrazas Riverpark Village condominium (top right photo) complex west of Greater Downtown Miami has lost the two-tower project to the lender, iStar Financial, according to a new report from CondoVultures.com.
The Terrazas Riverpark's original developer,
Windmoor Project LLC with Miguel Angel Barbagallo (
middle left photo) as principal, signed a "special warranty deed in lieu of foreclosure" that was recorded on April 13 in Miami-Dade County. The eight-page deed-in-lieu document was originally signed on Sept. 18, 2009 by Barbagallo, but not recorded until this week, according to government records.
Before recording the deed-in-lieu document, the lender established an entity - 1861 NW South River Drive - Miami LLC - to take title to the Terrazas Riverpark project that stands on nearly 2.2 acres north of the site of the new Florida Marlins ballpark.
The value of the deed-in-lieu transaction was recorded at $45 million, or nearly $139,000 per residential unit. The original construction loan for $84.5 million, or nearly $261,000 per unit, was made in March 2006, according to the report based on government records.
"Chances are the write down that the lender has taken on the Terrazas Riverpark will not be deep enough to lure a bulk buyer and/or individual buyers for this product at this time," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
"After all, a local developer of the new San Lorenzo condo tower nearby just held an auction on April 10 where the average bid on 65 units worked out to $121 per square foot for a property that the lender is owed $216 per square foot.
"We do not envision a much different scenario for the Terrazas Riverpark at this time given the financing difficulties of today's market."
Condo Vultures® is scheduled to release its first quarter of 2010 new condo closing report for Miami on Monday, April 19, in its free weekly Market Intelligence Report™.
The report's latest findings will be discussed in detail at the upcoming Condo Vultures® panel discussion entitled the "Future of Condo Development in South Florida" scheduled for Tuesday, April 20, at the Miami Marriott Biscayne Bay Hotel on North Bayshore Drive.
A couple of weeks before the recording of the deed-in-lieu, the Terrazas Riverpark's developer filed on March 29 the necessary paperwork - a 295-page declaration of condominium - to formally establish the project as a Florida condominium.
The Terrazas Riverpark is comprised of a 20-story and 27-story tower with more than 200,000 square feet of saleable residential space plus four commercial condominiums. The project consists of 157 one-bedroom units, 145 two-bedroom units, and 22 three bedrooms located on Northwest South River Drive, just north of Florida State Road 836, or the Dolphin Expressway, according to a CondoVultures.com analysis of the condominium documents.
Construction on the project began in April 2006, stalling several times during the last four years. A fourth notice of commencement to finally finish up the project was filed on Jan. 28, 2010, according to government records.
The Terrazas Riverpark site was originally purchased in November 2002 for $4 million. At the time of the purchase, a four-story health care facility with 67,229 square feet of space stood on the site before being demolished in July 2005.
Windmoor Project's original construction loan for $84.5 million was provided on March 10, 2006 by Fremont Investment & Loan, which was one of the top four condo construction lenders in South Florida during the boom years. In summer 2007, Fremont sold its commercial real estate loan portfolio - which included the Terrazas Riverpark - to iStar Financial.
More than 40 bulk deals for more than 3,600 new condo units with more than four million square feet of saleable space have closed at an average price of $241 per square foot in the tricounty South Florida area since July 2008, according to the Condo Vultures® Bulk Deals Database™.
About one-third of the bulk deals have transacted in Greater Downtown Miami where developer constructed nearly 23,000 new units between 2003 and 2010, according to the Condo Vultures® Official Condo Buyers Guide To Miami™.
First-Quarter Condo Sales Pace in Downtown Miami Tops 2009 Activity
MIAMI, FL--Buyers purchased more than 700 new condo units in Greater Downtown Miami in the first quarter of this year, pushing the overall closed sales ratio for the epicenter of Florida's condo crash to more than 70 percent, according to a new Condo Vultures® White Paper™.
A year ago, buyers purchased units at half that pace, acquiring only 370 new condos between January and March of 2009.
At that time, only 59 percent of the more than 22,200 new condo units constructed in Greater Downtown Miami since 2003 had been sold, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™.
The strong buying activity in a market with virtually no financing means that 35 projects out of a total of 82 are now completely sold out. An additional 24 projects have successfully sold at least half of their respective units for sale. Only six projects have not sold a single unit, according to CondoVultures.com.
"The condo sales in Greater Downtown Miami are a function of price," said
Peter Zalewski (b ottom right photo) , a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
"A year ago, developers and lenders were still asking $300 per square foot for a new condo. The asking prices dipped shortly after that to the $200 per square foot range, triggering a buying frenzy that reduced the overall inventory by 11 percent.
"As the inventory of new condo product dips below 6,600 units, some developers are attempting to boost prices back up to the $300 per square foot range. Time will tell if the new pricing sticks."
Contact: Peter Zalewski of Condo Vultures® at 800-750-0517 or by email at
peter@condovultures.com.
