Developers always want to make sure that their units are selling, and they often set up certain benchmarks to help give them an idea of how well they are doing, and to determine what else they might need to do as a means to market their properties better. Reaching 50% sold is considered good and impressive for most. However, there are occasionally condo projects that are able to sell even faster. Look at the newly completed BrickellHouse in Downtown Miami as an example of a property that is selling remarkably well. They’ve actually sold 98% of the 374 units in the 46-story tower.
The developer, Harvey Hernandez, has successful transactions for 366 units, and has been able to bring in more than $157 million. This makes the current average purchase price around $489 per square foot, which is quite impressive. The units in the building varied greatly in price. Some were selling for as little as $150,000, while others were selling for as high as $4.9 million. Currently, there are only eight properties left in the building.
Resale and Renting
Despite the fact that the units are nearly all sold by the developer, there are actually a number of owners in the building who are already looking to sell. Most know that they got their condos at a good price and are seeing the values rise. They are asking for an average of approximately $615 per square foot for the units.
Currently, there are about 60 units on the resale market. This is good news for buyers who are looking for a property in the area, although they may also want to check the prices with the developer to ensure they are getting the best possible deal. In addition to the properties that are up for resale, there are about 20 units available for rent at BrickellHouse. The median rental price for these units is $2,850 per month.
The Success Was Not Certain
While it is easy to say that the building is a success now, that was not always what people thought might happen with BrickellHouse. In the early stages of development, they had some financial issues, including a foreclosure lawsuit for $15.8 million, which they eventually resolved. After the financial troubles were in the past, the developers were able to concentrate on what they do best – building great units.
Will Other Towers Have the Same Success?
One of the big questions on the minds of many in Miami, and those who are considering buying in the area, is whether other towers will have the same success. There are a number of new towers being developed across Miami right now, and this will add thousands of new units to the market. One such example is Brickell City Center – http://www.sunnyislesmiamirealestate.com/Downtown-Miami/Brickell-City-Centre/. Some fear that they will not be able to sell all of these units. However, the market still looks to be quite strong, and there seems to be no lack of interest when it comes to new properties in the area. It’s not certain how long this will last, but there doesn’t seem to be any stopping the love for properties in the Miami area right now.