July 19, 2006 at 10:23am by Gus
Big news regarding local real estate - the Midtown Miami project is up for sale. Critical Miami says the developer wants out for tax reasons.
“The owner is claiming that he wants to sell “for tax reasons,†and that he’ll make about the same amount of money selling now as if he held on until construction was finished and sold the finished units. Which idea the article pretty well refutes, suggesting the obviousness of the assumption that he’s trying to sell now because of low and dropping demand for residences. Maybe someone else can “buy the risk†and get hosed down the line.”
Midtown was considered the anchor project in Miami’s revitalization.
If the developer for such a secure property is getting cold feet, that says something about his confidence in the market.
This quote from Miami Herald sums it up nicely:
‘‘I find it surprising that a developer who took it this far does not see it through, with a controlling interest, until the end,’’ said real estate analyst Michael Cannon. Typically you don’t cash out the general partner until it is all done. The real profits come at the end.’‘
To date, only one of the eleven planned towers is complete and two others are under construction.
But don’t shed a tear for the Developer. He is asking for $375 million.
In 2002, he purchased the land for $34.5 million.
Nothing beats making a 1,000% return on your investment.
Hopefully, the buyers who have purchased condos at Midtown will see a return on their investment too.
Related:
• Soon We’ll Be Shopping at Midtown
Gus Moore heads up Miami Beach 411 as site administrator. You can reach him at 1-305-754-2206.
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