The Related Group obtained a $160.5 million construction loan for its dual tower Brickell Heights project in Miami.
Wells Fargo Bank, acting as an administrative agent for a
group of lenders, granted the mortgage to Related Group affiliates 9SMA LLC and
9SMA West LLC. The Miami-based developer broke ground on the 49-story project
at 850 South Miami Ave. in July 2014. Like most Miami condo projects during
this new cycle, it’s heavily funded by 50 percent buyer deposits.
Brickell Heights will have 358 units in its east tower and
332 units in its west tower.
The project should be completed in early winter 2017. Prices
start in the low $300's per square foot for the smaller units and reach $500
per square foot. Unit sizes range from 600 square feet to 2,400 square feet for
the penthouses.
Amenities include a 35,000-square-foot Equinox gym, a Soul
Cycle studio, and several restaurants. The east tower will include 35,000
square feet.
April 5, 2015 – From Florida Business Journal
Timing is everything for Related Group with Brickell Heights
The Related Group broke ground on the 49-story Brickell
Heights in July 2014
The Related Group is pacing itself in this new development
boom so it doesn't flood the market with too much supply – a strategy it's
employing in Miami's wealthy Brickell area.
The developer broke ground on both towers of the 49-story
Brickell Heights in July 2014. After selling out about 95 percent of the 358
units in the east tower, Related has now launched sales of the 332 units in the
west tower. Given that the construction schedule was the same for both, they
could have put them on the market at the same time.
"The way Related programs all its condo development is
we don't want to flood the market with too much product at once," said
Arden Karson, Related's project manager for Brickell Heights. "We are
strategic in how we release inventory. It allows us to go to market with a lot
of pent up demand."
Some analyst estimate that about 6,400 condos are scheduled
to be completed east of Interstate 95 in South Florida this year, followed by
6,700 units in 2016 and 5,000 in 2017. That's assuming all of those projects
move forward as scheduled. Related is once again the largest developer in this
round of building.
Brickell Heights, located on South Miami Avenue between 9th
and 10th Street, is scheduled to be completed in early winter 2017, Karson
said.
Karson said Brickell Heights has a pricing advantage over
much of the new products in downtown Miami. It starts in the low $300's per
square foot for the smaller units and goes up to $500 per square foot. Many
other new condos on Brickell are listed in excess of $600 per square foot.
Related can offer a lower price point at Brickell Heights
because it purchased the site for a reasonable price in 2013 and locked in
construction costs before the explosion of development activity, he added.
"We bought it at a different point in the cycle so our
buyers can experience tremendous value," Karson said.
Units in Brickell Heights range from 600 square feet to
2,400 square feet for the penthouses. Amenities include a 35,000-square-foot
Equinox gym, a Soul Cycle studio, and several restaurants. The east tower will
include 35,000 square feet of office condos, which are mostly sold out, she
said.
The Related Group broke ground on the 49-story Brickell
Heights in July 2014
Jan 26, 2015, From Florida Business Journal
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