Condos are becoming more popular in Florida these days, with construction of these buildings increasingly taking place in our state. One high-end condo project that is in the works is the Oceana Key Biscayne. This commercial real estate project is slated to be finished in late July.
A company called Consultatio was able to secure a construction loan of more than $330 million for the Oceana Key Biscayne. The company did not use financing from a bank. Rather, it used deposits from buyers as well as equity from developers. Its goal is to provide condo homes to buyers and then use the revenue to complete other real estate projects.
Another popular project in the works in Florida is Bal Harbour, which began in late 2013 and is a fully glass tower featuring more than 250 condo units. This project stretches along the ocean and has already drawn more than $350 million in signed contracts. The project is expected to generate more than a billion dollars.
In situations where new condos are being constructed in Florida, buyers often are required to put a large chunk of their money upfront during various phases of the project. This can occur when they reserve their units, when they sign their contracts and when a certain amount of construction has been completed. Even though commercial banks are not lending for construction as much as they did before the Great Recession, they are now increasing their financing. Although commercial real estate development deals and transactions can be lucrative and are in demand today, they can be complex in Florida, especially those involving condos. Getting the right advice and support can be crucial in these situations.
Source: Miami Herald, "Oceana Bal Harbour project gets $332 million loan", Martha Brannigan, April 28, 2014