With construction well underway at the Harbour in North Miami Beach and more than 80 percent of its condos sold, Inigo Ardid isn’t too worried about the market slowdown. In fact, as he told The Real Deal Managing Web Editor Hiten Samtani, it might be a good time to start buying.
Ardid, co-president of development firm Key International, stepped aside at TRD’s Showcase & Forum last week to break down how his company is handling a downshifting condo market.
Key International’s favorable position came down to pricing and timing, he said. The Harbour’s 425 units have an average price of $700,000, Ardid said, whereas new construction in the nearby Sunny Isles Beach asks much closer to $5 million.
“We’re already making money on the project,” he said. “The rest is gravy.”
As for construction financing, Ardid said projects this cycle are mostly funded with buyer’s deposits. Whatever gap in the capital stack that needs to be filled with a bank loan is “no problem.”
It could pose a problem, however, for projects that aren’t already out of the ground. He said brokers might not show a condo development that’s not under construction because if it doesn’t get built, they won’t see a commission payday. No buyers mean no deposits.
“As long as you have the deposits,” he said, “you’re good to go.”
Ardid was one of more than a dozen expert panelists at TRD’s largest-ever South Florida Showcase & Forum last week at Wynwood’s Soho Studios. More than 4,500 real estate movers and shakers showed up for a day of industry intel, networking and checking out the latest new developments.
Source: The Real Deal