By Sunny Isles Real Estate Expert on March 10th, 2010
Trump Towers Sunny Isles Beach Florida – Now Owned By Dezer Properties
Here is most recent article about Trump Towers Sunny Isles that was published in The Miami Herald. Dezer Properties has taken over the ownership stake at the mega complex and is selling it now below the market price! Here is full story:
Dezer Properties has taken over the Miami mega-condo developer’s ownership stake at Trump Towers in Sunny Isles Beach and is assuming the remaining debt on the property.
Condominium prices are being cut by at least 30 percent at the newly built skyscrapers, said Dezer Properties President Gil Dezer, as the company tries to unload hundreds of unsold units amid a troubled real-estate market.
Real-estate experts say the prices now rank below competing new oceanfront properties countywide.
The Trump Towers is a three-tower
813-unit project – an oceanfront condominium in Sunny Isles Beach located at 16001 Collins Ave. was co-developed by Related and Dezer — with Related responsible for construction and financing and Dezer in charge of sales and marketing, Dezer said. The towers derived their name through a licensing deal with New York real-estate mogul Donald Trump.
Following three months of negotiations with lenders, Dezer said his company assumed the former partnership’s $265 million loan on Dec. 31, 2009. He declined to comment on other financial aspects of the deal with Related, but said it was “an amicable split.”
“It was a matter of Related CEO Jorge Perez having a lot on his hands and us being in the Sunny Isles market and being the best fit to handle this,” Dezer said. The Dezer family-owned business holds 45 acres of oceanfront land in Sunny Isles Beach, with sites for eight more buildings, he said.
Related Associate General Counsel Betsy McCoy declined to comment on the deal on Thursday.
Trump Towers is not the first project that Related, among the most aggressive developers during the real-estate boom, has exited.
Last July, Related surrendered ownership of the 420-unit CityPlace South Tower in West Palm Beach to a group of partners led by Toronto-based Scotia Capital.
And the company has been negotiating for months with lenders regarding its $1 billion ICON Brickell project, a three-tower, 1,800-unit luxury development in the 400 block of Brickell Avenue in Miami. McCoy also declined comment on ICON.
“We plan to do more projects together,” Dezer said of Related, declining to discuss specifics, but adding that an architect for a new project had just left his office. “I will take Jorge as a partner any day of the week because he is a great partner.”
The Dezers — Gil and father Michael Dezer — also developed Trump Grande in Sunny Isles Beach, a three-building oceanfront enclave that includes the Trump International Beach Resort, built in 2003; Trump Palace, completed in 2006 and sold out; and Trump Royale, which was finished in 2008 and is 60 percent sold out. In addition to their South Florida properties, the Dezers’ holdings include 27 buildings in New York.
Wells Fargo, the lead agent of a syndicate of 11 banks, extended financing for four more years, giving the company time to sell the remaining 435 unsold units, Dezer said. Prices now range from $350 per square foot for most units to $600 a square foot for penthouses, he said.
“It’s like a relaunch. What we originally sold was preconstruction with 20 percent down, and we had almost 900 units spoken for,” Dezer said. “Then the crisis hit as we called for closings, and many buyers had their situations changed. So we’re selling the units back in inventory.”
Each of the three 45-story towers has 271 units. Tower I has 260 units sold, and Tower II is about 40 percent sold with 105 sold, he said. During the next two to three months, Dezer will send out closing notices to those who put down deposits on Tower III, and give them the option to move over at a reduced price to Tower II. Tower III was sold out at an average price of $720 per square foot, with some sales at more than $1,000 a square foot, Dezer said.
During preconstruction sales a few years ago, Trump prices began at $600 to $700 a square foot, said Craig Studnicky, president of International Sales Group, an Aventura real estate sales and marketing firm that specializes in Sunny Isles Beach real estate and Aventura.
At $350 a square foot, the price now is even below replacement cost, Studnicky said. “If they went to build today, it would cost $400 to $450 a square foot, including land.”
However, Trump Towers’ new prices reflect the current glut of unsold units, said real-estate analyst David Dabby.
“I think $350 is the low end of the oceanfront in Miami-Dade County,” said Dabby, president of Coral Gables-based Dabby Group Advisors. “Miami Beach is significantly higher, primarily due to a lack of new inventory and higher demand.”
Related’s move and the price reduction also demonstrate developers are cutting losses. During the boom, Related was the most prolific condo developer in Miami, Dabby said.
“There’s no future for new construction until the overhang is gone,” he said. “They have to get rid of the problem before they can even think of the next project.”