Miami’s condo market is taking a beating from a glut of inventory and a struggling South Florida economy, but one pair of developers are finding success with a new luxury residential tower in the Coconut Grove neighborhood.
Terra and The Related Group say they have sold more than $245 million worth of condos at the 66-unit waterfront property, One Park Grove, with more than 80 percent of contracts having already closed in the last 60 days. Units are closing at a rapid clip with buyers taking possession of residences and starting interior buildouts, according to a statement.
The development duo has paid off $112 million in construction financing following the May delivery of the 23-story tower, which comprises the third and final phase of the five-acre Park Grove community. Bank OZK (formerly Bank of the Ozarks) issued the loan in 2018, when construction of the tower began.
Terra and Related paid $55 million for the 5.2-acre Park Grove site in 2013, marking the first collaboration between the two prominent Miami developers. The OMA and Rem Koolhaas-designed development features a total of 271 units across three towers, which also include Two Park Grove and the Club Residences. Units in the multi-tower community are now 98 percent sold.
Located at 2701 S. Bayshore Drive, One Park Grove features amenities including a 2-acre private park, outdoor amphitheater, private screening room, wine tasting room, fitness center and spa, indoor and outdoor lounges and a restaurant created by chef Michael Schwartz, Tigertail + Mary. The building is surrounded by multilevel gardens and outdoor spaces designed by landscape architect Enzo Enea. Interiors are designed by Meyer Davis Studio and kitchens and baths by William Sofield.
Condo recovery ahead?
The developers say that a limited number of remaining condos are available in the tower starting at about $2.7 million. In a statement, Related Group CEO Jorge M. Perez noted that sales remained robust “despite the current headwind,” adding that the partners were seeing demand from buyers across the U.S. and worldwide.
Existing condo prices in Miami grew 4.2 percent year-over-year in July, from $249,500 to $260,000, according to the Miami Association of Realtors. Inventory jumped 6.8 percent in the same time frame to 14.2 months, indicating a buyer’s market. In a balanced market, supply would range between 6 and 9 months, the association said.
Existing condo sales dropped 9.1 percent year-over-year in July, from 1,220 to 1,109. Pent-up demand and low mortgage rates, however, helped drive new pending sales for condos up 6 percent in July to 1,454. Pending sales for homes and condos began to recover from the pandemic in mid-April and the association expects a significant increase in closed sales over the coming months.