Swire Chief: Condo Market ‘At Half The Pace’ Compared To Last Year, But Healthy

Swire Properties President Stephen Owens told a forum last week that ‘there’s no question’ that sales of condos at Brickell City Centre have slowed down.

Owens told the audience that the market is ‘at half the pace’ compared to last year. He blamed it on more discerning buyers, and said that it was a sign of a healthy market. His comments were reported by The Real Deal.

As of March, 17% of units at Swire’s Brickell City Centre RISE condo tower has been sold. That compares to nearly 80% sold at REACH, which launched sales earlier.

Dezer Development president Gil Dezer echoed Owens’ sentiments last week, saying that ‘there’s the same number of buyers’ as before, but more projects. He also said that it was now a healthier market, and that it wasn’t ‘normal or stable’ when units were selling out as fast as they were last year.

 

 

 

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Anonymous
6 years ago

This really just shows that the Brickell area is getting close to buildout and in the next 5-7 years, Brickell’s transformation should be complete. The preponderance of developers focus is going to logically go towards Downtown and further northwards with the enticement of a blank canvas in huge swaths in these areas as the appeal.

Anonymous
6 years ago

Don’t forget West Brickell. There is lots of land there to buyout and build.

Anonymous
6 years ago

No, I didn’t forget about West Brickell, that’s why I said “the Brickell area.” There are projects planned for west brickell but I don’t expect the major ones to come to fruition in about 3 to 4 years from now. Buildout doesn’t necessarily mean that no new construction will go on. It just means that probably in the next seven years, we’ll see the bulk of Brickell completed. You more than likely will not be witnessing the construction frenzy you’re seeing now in Brickell. Maybe one project a year or every other year breaking ground and that will be realestate bought and torn down for new projects.

Anonymous
6 years ago

Based on some back of the envelope math and previous filings it sounds more like sales are running at half of half (that is a quarter of the pace) than last year. Things aren’t as rosy as he is spinning them.

Anonymous
6 years ago

Well you have to remember, the residential portion of BCC is being sold at the same time construction is going on. Swire was not asking for deposits and waiting until a certain amount was acheived before ground breaking.

Also, I believe Swire is placing quite a bit of their hopes on Chinese buyers.

marc
6 years ago

Cue the gloom and doomers.

Anonymous
6 years ago

I think it will change once the mall is open. Although it is true that every building in the area will benefit tremendously from being next to the mall, Rise and Reach will carry the name and address of BCC and should market themselves I an different category….if they do it right.

Anonymous
6 years ago

Back to the commercial tenants/retailers that are supposed to fill the BCC: will this place be filled with Dadeland Mall type retailers or Bal Harbour type? Seems like Design District getting the Bal Harbour types. If a Designer Brand goes there , they won’t go to BCC and vise-versa. Is there an in-between retail brand profile?

Anonymous
6 years ago

I think BCC whole intention since the beginning was to have a mixed of designer type of retail, other high-end retail, and middle level retail. At the end, I believe it will be perfectly oriented to the brickell and downtown market. Diversity is key for this project; it is true Brickell has come a long way, but it isn’t Miami’s reachest neighborhood and the project is clearly not oriented to this particular sector market either.

Tomas Possenti
6 years ago

Whitman Family Development (operators of Bal Harbour) will be co-operating with Simon Property Group the retail portion of the mall. I believe Saks Fifth Avenue is one of the first announced tenants.

In order to understand the divide between the allegiance of luxury brands affiliated with Design District/BCC you have to look further back and understand what caused this.

The leases signed long ago by retailers at Bal Harbour Shops had a radius clause- meaning that if that retailer would open another shop within a set radius, they would have to give the operators of the mall (Whitman Family Development) a percentage of those sales.

Fast forward a few decades and with the boom and growth of Miami; those clauses would cost major brands eager to expand a nice deal of money. A bunch of lawsuits later, and a few settlements thereafter caused a divide.

Enter Mr. Robins (Design District) – he teamed up with LVMH and sold them a stake in the project. Hence, why most flagship LVMH brands are in that district. They OWN a portion of the project.

Simon Property also operates The Falls(Pinecrest), Aventura Mall, and Dadeland, which should influence some of the tenants at those locations to follow them the BCC.

It has yet to be seen, but I’m pretty sure the alliances Swire has created will bring them more than enough “luxury” retailers to fill the square footage.

GGP, the other major retail operators of both Merrick Park and Bayside should also be kept an eye on, as they try and create a more upscale Bayside with the redevelopment and improvements being done. I highly doubt they can shift Bayside into something high end, but who knows…