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LIVING
rental market. The commercial market is gaining traction as well. Currently,
investors see rentals, condominiums and commercial properties as having
good potential return in the short term. Despite a relatively low
employment rate, if current trends continue, home ownership will become
a more appealing investment. In a few short years homeowners could see a
significant value increase in their property. The good news for potential
homeowners is that mortgage rates have dropped as low as 3.26% in the
Miami market, making additional financing for a new
home an easy option that offsets the recent increases
pricing.
Current & Upcoming Projects
Over the past 20 months, lenders have financed about
$900 million for new South Florida condo projects,
which are forecasted to be east of Interstate 95 in the
tri-county region of Miami-Dade, Broward and Palm
Beach. According to the Miami-Dade County records,
Alabama Regions Bank has been one of the biggest
financers with $250 million allocated, along with New
York City NorthStar Realty Finance Group providing
more than $125 million for upcoming condo projects.
According to the Clerk of the Court records in the
Miami-Dade, Broward, and Palms Beach, New York City's
Deutsche Bank Trust Company America, National Bank
of Florida, and Bank of the Ozarks have also been large
contributors, allocating $20- 50 million.
And where are developers looking to construct
condos? According to the Southeast Florida MLXchange, developers are looking to purchase
development sites where less than 19,000 units are
currently on the resale market.
We should be seeing over 150 new condo towers with
more than 20,200 units arise in the area. So far, there
are 35 new South Florida condo projects that have
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begun construction. Among those are the Mansions at Acqualina tower in
Sunny Isles Beach ($160 million), the Echo Aventura project with two towers
in Northeast Miami-Dade ($105 million). Finally, $50 million is proposed for
BeachWalk condo-hotel tower in Hallandale Beach. Also, 70 towers are
already being offered for pre-construction sale. In addition to the heavy
financing, developers of rental apartments are receiving loans in South
Florida, which are encouraging new projects to begin. Loans for condo