6,800 New Condos From Boom Era Still Unsold In South Florida

 

MIAMI, FL---Nearly 6,800 condominium units - some 14 percent of the total new inventory - created near the coast in the tricounty South Florida region during the real estate boom are still not sold as of March 31, 2011, according to a new report from CondoVultures.com.

The total number of unsold new condos does not include any of the more than 8,000 units that were purchased in bulk transactions by investment groups that plan to one day resell the units at a premium, according to the Condo Vultures® Bulk Deals Database™.

Developers created nearly 250 projects with 49,000 units since 2003 in the seven largest condo markets east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties during the boom.

In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,500 units in the same seven coastal markets of Greater Downtown Miami (top left photo), South Beach, Sunny Isles Beach (top right photo), Downtown Fort Lauderdale and the Beach, Hollywood / Hallandale Beach, Downtown West Palm Beach (bottom left photo) and Palm Beach Island, and Boca Raton / Deerfield Beach (bottom right photo), according to a comprehensive study undertaken for the Condo Vultures® Official Condo Buyers Guide™ eBook series.

"At the current pace of about 200 new condo sales per month - or 600 units per quarter - in South Florida, the tricounty region has nearly three years of remaining inventory in Miami-Dade, Broward, and Palm Beach," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"Despite the new unit inventory overhang in South Florida's seven largest coastal markets, some developers are already taking steps to secure land and governmental approval to launch presales for new projects in the near future.

" It is unclear if prospective buyers will decide to purchase newly constructed units when nearly 49,000 condos were built during the boom that began in 2003." 

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com

HFF places $17.8 million agency loan for Tallahassee area multi-housing community

               

MIAMI, FL – HFF announced today that it has placed a $17.8 million financing with Freddie Mac for Delaney Park at Southwood  (top left photo), a 248-unit, premier Class A multi-housing community in Tallahassee, Florida.

HFF worked on behalf of Epoch Properties, Inc. to secure the seven-year, fixed-rate loan through Freddie Mac’s Early Rate Lock Capital Markets Execution (CME) Program.  The securitized loan has a rate below five percent and will be serviced through HFF’s Freddie Mac Program Plus® Seller/Servicer program.

Delaney Park at Southwood is adjacent to SR 251 in Tallahassee about 3.7 miles from the Florida State capitol.  Epoch completed the development in 2007 and has managed the property since completion. Delaney Park at Southwood has 12 residential buildings that are 95 percent leased. 

Community amenities include a beach-style entry swimming pool, whirlpool spa, cardio/strength training fitness center, indoor basketball court, steam sauna, private movie theater, billiards and game area, resident conference room with library, car care center and controlled access gates.

The HFF team representing Epoch Properties, Inc. was led by director Elliott Throne and senior real estate analyst Todd Adams.

“Epoch took advantage of the current low interest rate environment and paid off their original construction loan with a new permanent loan that had terms only Freddie Mac could offer.  They now have an attractive low interest rate long-term financing that can be assumed by a new buyer if they choose to sell the asset in the future,” said Throne.

Epoch Properties, Inc. is based in Winter Park (Orlando), Florida and has developed over 32,000 multifamily living units in over 55 cities from California to Florida. Epoch currently owns 3,913 units in 11 properties and manages over 6,100 units

Contacts:

Elliott P. Throne, HFF Director, (305) 421-6549, ethrone@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,                                       

krmurphy@hfflp.com

                                                                                                                               

HFF secures $10.92 million financing for Sparks, NV multi-housing community

IRVINE, CA – HFF announced today that it has secured $10.92 million in financing for The Waterford (top left photo), a 240-unit multi-housing community in Sparks, Nevada.

Working on behalf of Silverwing Development, AJU Investments and the Strand Group of Companies, HFF placed an 80 percent LTV, seven-year, Capped ARM acquisition loan with Freddie Mac (Federal Home Loan Mortgage Corporation).

  HFF will service the loan through its Freddie Mac Program Plus® Seller/Servicer program.

The Waterford is located at 800 Nichols Boulevard across from the Sparks Marina.  The property offers one-, two- and three-bedroom units and is currently 92 percent leased.  Community amenities include a swimming pool and hot tub, 24-hour fitness center, lighted basketball court, picnic areas with barbecues, covered parking and five laundry facilities.

The HFF team representing Silverwing, AJU and Strand was led by managing director David Bleiweiss (lower right photo) and associate director Greg Brown. 

“This was a tremendous opportunity for the buyers of this asset,"said Bleiweiss.

"We were able to obtain a waiver for 80 percent financing through our relationship with Freddie Mac, and the buyer was able to capitalize on the attractive Capped ARM Program offered by Freddie Mac. 

" This drove the cash-on-cash returns for this investment above what is typical for this quality of multi-housing, especially in today’s competitive acquisition environment,”  

Silverwing Development is a residential and land developer, headquartered in Concord, CA, that is currently focused on repositioning commercial and multifamily assets in the Western US.  AJU Investments is focused on the acquisition and repositioning of multi-housing and retail properties throughout the Southwest US and Florida.  Strand is actively involved in the acquisition and financing of multifamily and single family residential projects throughout the US.

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 Contacts:

David A. Bleiweiss, HFF Managing Director, (949) 253-8800 dbleiweiss@hfflp.com

 Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,                                       

krmurphy@hfflp.com

$128 million financing secured by HFF for eight-property multi-housing portfolio in Georgia, North Carolina and Texas

 DALLAS, TX – HFF announced today that it has secured $128 million in financing for an eight-property, 2,407-unit multi-housing portfolio located in the metropolitan areas of Atlanta, Georgia; Raleigh, North Carolina; and Dallas and Houston, Texas.

Working exclusively on behalf of MAA, HFF placed the 10-year, 5.08 percent fixed-rate loan with New York Life Insurance Company.  Loan proceeds are paying off an existing facility.

The HFF team representing MAA was led by senior managing director Kevin MacKenzie (top right photo).

MAA is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 47,654 apartment units throughout the Sunbelt region of the U.S.  www.maac.com.

Contacts:

Kevin C. Mackenzie, HFF Senior Managing Director, (214) 265-0880,  kmackenzie@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF closes $20.58 million sale of The Cannery in San Francisco

SAN FRANCISCO, CA – HFF announced today that it has closed the sale of The Cannery (top left photo), a 98,983-square-foot mixed-use building in San Francisco’s Fisherman’s Wharf district.

HFF marketed the property on behalf of the seller.  The property was purchased for $20.58 million free and clear of debt. The iconic property was aggressively pursued resulting in over 25 offers to purchase.

Originally developed in 1907 as the world’s largest peach cannery, the property has operated as a multi-level mixed-use center for the last 50 years.  The Cannery was extensively renovated in 2001 and includes two, three-story office and retail buildings.  Located at 2801 Leavenworth Street, the 1.29-acre site is situated in the heart of San Francisco’s Fisherman’s Wharf district, which attracts more than 16 million visitors annually and is ranked as one of the top five destinations nationally.  

The HFF team representing the seller included directors Samuel Brownell and Nicholas Bicardo and senior managing director Michael Leggett.

Contacts:

Samuel A.  Brownell, Ca. Lic. # 01323731, HFF Director, (713) 852-3500, sdeasy@hfflp.com

Nicholas T. Bicardo, Ca. Lic. #01380524, HFF Director, (415) 276-6300, nbicardo@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (415) 276-6300                                                                 

krmurphy@hfflp.com