• Lisa Simpson
• Oct 22,2009
• In: Real Estate

Condominiums Carry a Hefty Price Tag

The condominiums in Miami carry a hefty price tag of $1.3 million to $7 million. But they surely ooze opulence what with Italian style cabinets, pool decks and fridges stacked with wine. All the 200 of them offer a dramatic view of the ocean.

The condominiums have been developed by the high-profile consultants Jorge Perez and Donald Trump. The total cost of the project is $355 million. The developers say that they have been contacted by 140 buyers. The deals should be closed next week.

Donald Trump says that the building is like the topping on a cake. When the country is going through such a deep recession and crisis, it seems strange that such high-priced buildings are still being sold. Experts have doubts about the future of these buildings in Hollywood.

A housing consultant, Lewis Goodkin, says that Perez and Trump may palm off the sizable number of contracts. However, it may be difficult to sell all the condos because most buyers are looking for bargains. Goodkin says that he would be the last person in the world to open a condominium development centre.

South Florida is one of the regions replete with condominiums. Prices really soared when the country witnessed the housing boom between 2000 and 2005. Investors bought and sold units as if there was no tomorrow. However, there were no long-term investors that put the developers in deep financial trouble.

The duo had built a condominium complex in Sunny Isles Beach in 2008 but when the bubble burst, the duo lost a lot of money. Perez and Trump also agreed to open another condominium building. However, the project was postponed. Also another project known as the Trump International Hotel & Tower in Fort Lauderdale may not ultimately take off. Another condo-cum-hotel project did not happen and investors lost a lot of money because of this.

It may be noted that Perez’s company, The Related Group, based in Miami, has developed 58,000 houses in Florida since the late ‘70s. But the group is now reeling under the effects of recession. It is seeking to buy time from the lenders to pay debts. The company has also handed over the control of the West Palm Beach condominium complex to a group in what can be termed as “friendly foreclosure.” The housing downturn had taken a toll on the 39 units. The market is indeed very tough and bankers too are tightening standards.