Luxury condo projects in Miami Real Estate attracting construction loans again
Developer Gil Dezer now has a new $214 million construction loan to complete his ultra-luxury condominium tower. He wouldn’t have been able to receive this loan just a few short years ago because lenders were holding onto their cash during the housing bust.
Dezer’s Porsche Design Tower is going to be a fabulous 60-story building with 132 condominium units that will have an amazing glass elevator that will transport residents from the ground to their own garages while they remain inside their vehicles. The southern Florida developer was able to obtain the loan from Wells Fargo because he has sales contracts in the amount of $550 million, and this is much more than he needed to qualify for the loan.
Lenders stopped investing in Sunny Isles Beach real estate after the market crashed because they lost a lot of money at that time. The construction industry has entered a recovery phase, and lenders are willing to grant loans again at a more conservative rate.
Dezer has stated that lenders are choosing to invest in specific types of projects. For example, if a developer has been successful in his endeavors throughout the real estate downturn and plans to construct Sunny Isles Beach condos, he is very likely to receive a loan.
Eddie and Jules Trump of the Trump Group are an example of this new trend. They received a $160 million loan to complete construction on the Mansions at Acqualina in Sunny Isles Beach.
Buyers of Miami real estate are more than willing to help developers finance their projects as they do in Latin America. Investors offer deposits of at least 50 percent of the purchase price as an inexpensive way for developers to finance construction of luxury buildings. With so many Latin Americans with a great deal of cash at their disposal, meeting this qualification isn’t difficult.
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