Developer: Fed Rate Hike Should Open 'Floodgate' Of Miami Condo Buyers
Shovels have hit the dirt and The Trillist Cos is going vertical with a 28-story condo tower in Sunrise. But despite strong pre-sales, Trillist CEO Scott Leventhal tells us sales velocity has deflated in today's market.
"The overall South Florida office market has slowed," Scott told us during a Bisnow event in Atlanta yesterday. But he credits the slowdown where many others say has been the problem: A stronger dollar has crimped international investors' ability to buy US real estate, especially Miami condos.
Trillist has begun construction on the 263-unit YOO at Metropica, having already pre-sold 50% of the units with half the money down, Scott says. The condo tower, which was designed by YOO Studio, will also feature a resort-style pool with sun-shelf lounging area, poolside cabanas, a 24-hour fitness studio, a steam room, a sauna, two full-sized tennis courts, a children’s playroom, an indoor clubroom with bar and lounge, a bike fix-it station, and indoor pet facilities and a dog grooming sauna.
Despite the slowdown, Scott is convinced there could be a rebound soon, given Fed chairwoman Janet Yellen's recent pronouncement of a potential Fed funds rate hike. That, he says, could cause the dollar to cascade downward, and re-energize foreign buying power.
"All it takes is a little devaluation of the dollar [to] open the floodgate," Scott says.
