Halted Hollywood condo project may be a harbinger
Shelved H3 project may signal a cyclical peak in condo sales and development in Broward
October 02, 2016 11:15AM
Renderings of the H3 Hollywood condo project in downtown Hollywood
The recent suspension of construction work on a downtown Hollywood condominium may signal a broader slowdown in condo sales and development in Broward County.
Hollywood Station Investments has presold 60 percent of the 247 units planned for its H3 Hollywood condominium. But the developer stopped construction of the 15-story project after finishing 13 floors while it seeks financing.
Peter Zawleski, principal of consulting firm Condo Vultures, told the Sun-Sentinel the suspension of construction and sales for H3 Hollywood at 2165 Van Buren Street may be a sign that southern Broward County is nearing a cyclical peak in condo sales and development.
It appears that Broward “is catching the flu that Miami-Dade has,” Zawleski told the newspaper, referring to slow condo sales and a bulging inventory of unsold units in the Miami area.
According to data from Condo Vultures, most condo development in Broward is concentrated in Hollywood and Hallandale, where 1,071 units are under construction and 4,685 have been announced since 2011.
On top of that, about 1,500 existing condos in Hollywood and Hallandale are listed for sale, so the two cities now have a glut of new and preowned units, Zawleski said.
Patrick Campbell, a vice president of Miami-based Related Group, said condo sales have not slowed at the company’s Hyde Beach House in Hollywood, now under construction next to another Related development, Hyde Resort & Residences, which is scheduled to open next year.
Related also is building the Auberge Residences & Spa Fort Lauderdale condominium at 2200 North Ocean Boulevard on Fort Lauderdale’s beach. Campbell told the Sun-Sentinel that Fort Lauderdale “has always been a slower market compared to Miami, but it’s not disappointing to us.”
David Kodsi, part of the team of developers behind the Paramount condominium development along Fort Lauderdale’s beach, told the Sun-Sentinel that sales in Broward County’s condo market are slower than in recent years but still steady.
Kodsi also told the newspaper the Paramount is 85 percent presold at prices starting at $1.5 million. The 18-story condominium is under construction and expected to open in 2017.
Harvey Hernandez, developer of the 129-unit Gale Residences Fort Lauderdale Beach, said condo demand in Fort Lauderdale has weakened.
Hernandez said 75 percent of the Gale units have sold at prices from $500,000 to $1 million. The development at 401 Bayshore Drive has been under construction since August and is expected to open in approximately 17 months.
But he also told the Sun-Sentinel that some condo projects in the preconstruction phase of development may be suspended or canceled: “They may have some issues. There’s no question that the market [in Fort Lauderdale] is slower than it was before.” [Sun-Sentinel] — Mike Seemuth
Source: The Real Deal