The future of Related Group, Miami’s biggest condo developer, has been revealed in an SFBJ interview with Chairman and CEO Jorge Perez and other company executives.
Market timing – Related group is now “very good at playing and understanding the cycle. We hit it right on the dot in this market,” Perez said. Related is now finishing the “cycle” and preparing for the next one, but “the good thing about this market is it’s not an abrupt stop,” President Carlos Rosso said.
50 Percent Deposits – Perez said he was surprised that he was able to sell preconstruction condos with a 50 percent deposit requirement. The higher deposit shifts the risk-reward profile away from buyers to the developers, who in the past were asking for 10 to 20 percent deposits.
$1 Billion in a year – Related expects to close on $1 billion in condos this year. The four-tower Paraiso project is the company’s biggest ever.
Moving away from urban core – Related will move out of their Biscayne Boulevard offices. An eight-story headquarters on Tigertail Avenue in Coconut Grove is being developed.
444 Brickell & 1400 Biscayne – Perez thinks the market isn’t strong enough yet to relaunch sales at 1400 Biscayne (Auberge).
Micro-condos – Related will launch sales for at least one micro-condo project this year. The company owns a site in Wynwood, and is looking for more land in Midtown and Downtown. Prices could start in the $200,000s for a 400-square-foot unit with a high level of amenities.