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Tags:  Miami Beach Real Estate, miami beach condos

The Caribbean Condos in Miami Beach have been on the market since 2006, and have been sitting mostly vacant for the past year. The lender, Corus Bank (Chicago based), has recently sold the construction loan on the completed luxury condominium project located at 3737 Collins Avenue.

caribbean miami beach condominiumThe original developers of The Caribbean Condominiums are Bluerock Real Estate and Christa Development, under a joint venture formed during the the height of Miami's housing boom. The developers obtained a construction loan of over $100 Million from Corus to convert the 103-unit oceanfront condominium at the peak of the housing boom in 2005. The proejct was completed in July 2008, just as the housing and financial markets crashed. We have been informed that only 13 units managed to close from the original buyers who contracted during the original sales period.

The new debt holders of the project will be 3737 Caribbean Partners, affiliated with Melohn Properties, an investment group from New York. Property records show the developer, Caribbean Group Owner, paid back portions of the loan after selling the 13 units that closed at prices ranging from $2.8 million to $1 million. It is believed that the rights to re-sell the remaining units were acquired for around $50 Million. If this is accurate, the new owners paid just over $500,000 per condominium for the remaining inventory.

I believe that this is good news for the Miami Beach condominium market, as nearby Oceanfront properties such as MEi Miami Beach, The Bath Club, and Canyon Ranch are selling today for around $550/S.F. These are more indicators of a market bottom, especially for PRIME waterfront properties located in Miami Beach. There is virtually no new construction being undertaken today, and waterfront properties in Miami Beach are protected by city ordinances and Art Deco architectural protections severely limiting what can be built in the future. It's encouraging that large institutional buyers are stepping up and acquiring the rights to sell these prime oceanfront development, at what will probably be discount pricing.

Currently, we are seeing discount pricing up to 50% off pre-construction sales prices from 2005 - 2006. Our expectations are that the Caribbeancondominiums will be selling quickly if they come to market at around these price points. The Caribbean is a luxury condominium building located directly on the Ocean in Miami Beach. Miami architect Kobi Karp designed the 19-story, 68-condo tower located just south of the historic Caribbean hotel. Architect L. Murray Dixon designed the six-story historic building in 1941, which was completely renovated and consists of 35 ultra luxury condos.

 

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