Related holds down prices on Auberge Miami
Units in the first phase are selling at prices averaging $575 per square foot
February 13, 2016 09:15AM
Auberge Miami rendering
Related Group has started pre-construction sales of condos at the Auberge Residences & Spa Miami at lower prices than many rival condominium developments.
Auberge Miami is a 60-story, 290-unit building that Related plans to build at 1400 Biscayne Boulevard in Miami, near the Adrienne Arsht Performing Arts Center. It is the initial phase of a three-tower project that would have 1,430 units and 13,280 square feet of retail space.
Carlos Rosso, president of Related’s condo division, told the South Florida Business Journal the company is selling Auberge Miami units at an average price of $575 per square foot. Many condo developments in downtown Miami are selling at unit prices exceeding $700 per square foot.
“We weren’t planning on launching this job, but we had partners that said, ‘We don’t mind making a little less profit for the lower price. We want to get closer to getting the [construction] loan,” Rosso told the Business Journal. “It was a unique situation.”
He also told the Business Journal the first five days of sales produced 50 unit reservations, and Related needs reservations for 60 percent of the units, or 174 of them, to obtain construction financing and break ground.
Related requires a 50 percent deposit to reserve a unit at Auberge Miami, 10 percent initially and the rest in stages as the development advances.
Units at Arquitectonica-designed Auberge Miami range in size from 515 square feet to 1,964 square feet.
“Gran Paraiso and SLS LUX are suffering because we are going out at a great price on this project [Auberge Miami]. But we are fine with that because at those other jobs we already have met our pre-sales,” Rosso told the Business Journal. “Now if you sell condos, it has to be at an attractive price.” [South Florida Business Journal] — Mike Seemuth
Source: The Real Deal