Following in the footsteps of Old Spanish Village, the Venetian Coral Gables townhouse preconstruction project which was to consist of 20 luxury townhomes at 920 Sevilla Ave (across from the Venetian Pool and within almost eye-shot of the Biltmore Hotel) is on the heels of foreclosure .
The Miami real estate market has been less than ripe for many of big preconstruction ventures that have tried to take a foothold in South Florida, for several years now. And although many townhouse projects were designed and actively being marketed as pre-construction investments, as the construction loans came due, developers and investors of these various pre-construction projects were forced to weigh their options …
The Venetian Coral Gables has been actively exploring the possibilities of a condo conversion …. as well as the possibility of infusing additional investment capital… and the lender meantime is pressing for re- payment of the over $4 million in outstanding construction loans.
Had the Venetian Coral Gables project been built, even with the challenges South Florida’s real estate market of the past several years, every single one of those 20 luxury town-homes could have been sold in my opinion… and easily … because the need for alternative options OTHER than condo living. Being able to downsize, and yet keep a sense of independence as we go from opulent estates and acre properties to being empty nesters is important.
The Venetian was expected to fit the needs of those downsizing … nothing to finish, nothing to upgrade or renovate … the ability to take off on vacation and travel at the turn of a key … These were to be fully finished, very private, exclusive, luxury 4-story townhouse units priced from $1,675,000 to $1,975,000… and they were to have had outdoor rooftop summer kitchens and elevators, stone flooring, top of the line everything, with European kitchens … and be generator ready.
Prices plummeted on preconstruction projects in Miami… impacting sales of town house projects in Coral Gables, Coconut Grove and in South Miami … Pricing in the Cloisters took a nose dive. Oaklane in South Miami struggled to hold on … and after many a hiccup, they are now finishing off the last remaining interior spaces on the handful or unsold units. Oaklane’s 40 townhouse project on Red Road are now close to being sold out.
A number of pre-construction and under-construction projects stopped in their tracks. The Valencia in Coral Gables abandoned efforts on the remaining townhomes there… Prices slipped as the property went into foreclosure, and a number of other projects went belly up. Unfortunate … There are homeowners all across South Florida, looking for an alternatives to their oversized homes … wanting an alternative to downsizing into condo living … and they have relatively few options …
The market for single family homes seems to have already begun to climb … That is good news for South Florida real estate. Most pre-construction projects in Miami … whether they be town homes or condos… are most likely looking to the distant horizon before they’ll see a solid recovery. What a shame because there is definitely a market for finished townhomes here in Miami, right now!
If you’re considering buying, selling, leasing or building we’d welcome the opportunity to assist with any and all of your real estate needs. Call us anytime at 305 793-1365 or feel free to contact the Restivo team here as well.
