1608-6 Galbut Family As seen in
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ewynsn.ote93The Neer York Trme, SUNDAY, JANUARY 31, 1993
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Waterfront Real Estate Is A Hot Item
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Popularity Gains Al Decoplage.a budding Crescent Heights Data Update
bought after foreclosure, apartment prices
As Tight Credit start at less than$60,000.The company has _
converted seven other buildings in the area, NATIONAL
and this month it bought a 264 unit ocean- ,/ HOUSING TRENDS
trnousanas oI urns seasonally adjusted areiusi
Stifles Projects front apartment budding in Hollywood, 18 ,'r• ,"' rates, ChangeI '
miles north of Miami. • Nov 92 Nov 91 •
— -' -- Starts 1242 1.085 •145% •
By CHRISTOPHER BOYD / Comoietans
Sales 1229 1.021 •204%
565 578 -22%
MIAMI BEACH / Source Census Bureau.Department of Conrrece
Last spring Josef Puehnnger visaed the •,. -." 0
MORTGAGE INTEREST RATES(Averages) •
Art Dern Disinct and fell in love with its
pastel•pamted hotels,breezy cafes and bus- ' ` a Northeast Last Previous Yeas
dung art galleries. This winter he tied the f r- , yI P' Week Week Apo
knot,buying an apartment in a neighborhood '• aa Conventional(30yq 800 803 855
he wistfully compares to the Riviera. S, :' / Adjustable fist yr) 509 5 13 577
"In Monte Carlo,you couldn't get a garage
for what a oceanfront studio costs here."said •-•-- r 0 Midwest
Mr.Puehruiger,who is Austrian."I looked at /f�._ - ' - Conventional(30.yr) 798 8 05 858
a great number of apartments from Key _ - j._ - _ Adjustabtenstyrj 519 526 595
Largo to Fort Lauderdale.and this seemed ...-.-. ` _
like the best investment around." • -_ _ ria . South
The 34-year-old marketing consultant r.; - :j•s• • Conventional 130gr) 793 799 858
buut'ht a one-bedroum pled-a•terre in the .._ e _ Adtuslab'e(1st yr) 508 5 tt 590 •
Decoplage, an oceanfront high-rise being '{ _ West •
converted (rota rentals to condominiums. __ ' - ._ •
The conversion is one of many under way.in J - ' I Convenuonat 130-yr) 795 801 844
the trendy vacation district. . •' ,,.,_, Adluslabie(1st yr) 513 c 17 638
"I like the idea that I'll be within walking _ _ ' 1' '
distance of the nightlife,and I feel that I'll be • g: + I t4ortneast Ca+r.Mav+e mass Nn.NJ.Nr
able to rent when I'm not here,"he said. --- --' ----• - - - -u _..:J .:J -_ ' Pe.R: VI Mieheert is Ino Iowa Kar Men
Minn Mo Web N D Otto S U %n South:Ai
From Palm Beach to the Florida Keys, Ark lei DC Fa Ga.So La MD ass NC
waterfront real estate is a hot item.The glut Oki.Sc.Teri+.re. va w va West Alaska •
of would condominiums in the South Florida new local,state and Federal regulations such 1992.we had a 130 jercent increase in sales Ars Cam Cao.riv,a.nano.Mort eves NM
market a decade ago has all but disappeared, as rules increasing the distance a building over 1991.A lot of those sales were to Euro- Che.moan wash Woo
and little new construction is under way. must be from the waterline and tight credit jeans and South Americans. but recently
"The crisis in the banking industry has have driven up values all along the South we've seen a return of Northeastern and Indexes for Adjustable-Rate
made it extremely difficult to get financing Florida coast. Canadian buyers." Mortgages'
for new condominium projects," said Mi- The increasing complexity of budding un Mr.Lantundin said he expected construe- 6.mo Treasury CM 3 t3 352 384
chat•I Cannon. president of Appraisal and the waterfront Means fewer units there. lion to begin soon on the development's final 1.yr Treas security 347 350 414
Real Estate Economics Associates,a Miami When they are available, they usually sell phase: 1,000 units on 37 acres facing the 3-yr Treas security 491 498 547 •
firm specializing in real estate analysis. quickly. Ugo Colombo.developer of the 40- Intracoastal Waterway The completed 5.yr Treas security 582 590 632 •
"The inventory of unsold condominiums is story Bristol 'tower condominium on fits- project will have 2,900 units on 180 acres, I Natrona'Mortgage
disappearing, while coastal property re- cayne Bay near downtown Miami,reports 95 along with five restaurants, ii marina and Contract Rale 749 7 49 825
mains a highly attractive commodity." of his 147 apartments sold,even though the boutiques. 'Rates on most aatustaaemortgagesare ser ia3
About 5,000 of the 15,000 units built in the building won't lie completed before Septem- Al Williams Island,a condominium project percentage Dams above:nese moeres
laic 70's and early 80's that clogged the bet'. not far from The Waterways.work is about to I Sowce 0801 Associates •
Greater Miami market in the mid-80's re- He said he had starched two years for a begin on a 31-story rundunuuiuni tower with
manned unsold as of late October,and aim- construction lender before coning to an 284 units priced from 5250,000 to$650,000.
lysts expect these to disappear quickly. agreement with a Japanese bank,Sumitomo Concordia Bau and Bowden of Cologne.
Dade County developers say many of the Trust To close the deal, he had to find a Get many, developing Oceania on Miami start at less than 360,000.The company has
buyers this winter come from Europe and second lender to guarantee the loan. Beach, has begun construction un a third converted seven other buildings in the area,
South America. like Mr. Puehnnger, they "Label' and land arc both relatively inex- oceanfront tower, which, like two previous and this month it bought a 264-unit ocean• •
are buying Miami property for investment as pensive in Miami compared to other cities.so ones,has 185 condominium units-The one- to front apartment building in Hollywood. IS
much as for pleasure. you can build less expensively,"Mr.Colombo three-bedroom units sell from just under miles north of Miami.
"In my country,you never know what will said. -But you still need the loan in get 5205.000 to$550,000. Carlos Justo,president of Wimbish Realty
happen next."said Lunda Mondria,a Mexico started, and finding one IS nearly imptissi- "We haven't felt the effect of the recession in Miami Beach,said that after two years of
Lily resident who bought a condominium at bit•." at all.and we do very little advertising,"said a slow market, waterfront property sales
Oceania un Miami Beach two years ago. Jeb Bush, a partner in the CtxtnaiBush Gerti Kleikamp, Oceania's executive vice jumped in 1992.He said he expected pnces to
"Our apartment is really an investment,yet Group and a son of former President George president."We have primarily sold to people start to rise if the sales pace continued.
It is also veru convenient. It's not far away Bush,is developing Deering Bay,a mixture buying second homes." The two earlier "The market is changing totally, and
from our home by au',and it's very secure." -of condominiums and unedamily homes on towers have sold out,he said,adding that 18 apartments are selling like crazy again,"Mr.
Miami,with its large Cuban and Central Biscayne Bay south of Miami with prices percent of his buyers over the last six months Juste said."We're coming through a period
American populations,has strong ties to Lat- ranging from$4.50.000 to SI 5 million. Burn- have been Germans. of undervalued real estate.where you could
in America.In the late 70's,South Americans cane Andrew caused some damage to the While new waterfront development caters buy property for less than ns replacement
swarmed to the city,buying vast numbers of project lint summer.delaying the construe- to the upper end of the market,one company. cost. So as the market becomes tighter.
waterfront units.But as quickly as the boom lion,but Mr.Bush said work was now back un Crescent Heights investments, has grown prices are bound to increase."
began,it ended.The oil market plummeted in track.Completion is expected before the end rapidly through conversions.It specializes in Leonard Edelman,who is waiting for corn-
Venezuela and Brand's economy faltered, of the year. buying financially strapped buildings and pletion of a four-bedroom town house in the
which contributed to South Florida's decade- "Waterfront property is unique,"Mr.Bush renovating them and is currently converting Waterways,the Coscan development.said he •
lung real•estato market glut. said. "Developing it requires an enormous Decoplage in Miami Beach's Art Deco Dis- had had trouble finding a condominium that •
But developers say the relative weakness front-end investment." u'tct. fu his requirements.
of the dollar against foreign currencies is Richard Lamondin, president of Coscan Russell W. Galbut. managing director of "We started searching last summer and
now rejuvenating overseas demand. Waterways Inc.,said that demand for units Crescent Heights,said that his company op- found it was almost impossible to find a
in his company's 180-acre Waterways water. crated on a large enough scale to be able to luxury condominium residence with full
e from project in the Aveiuu'a section north of buy y progeny at a low price and sell it reason- amenities,"said Mr.Edelman,a 45.year-old
Fisher Island, a resort off Miami Beach Miami had rernaned high despite the eco• ably and that there was an "incredible de• Sunrise real estate developer. "There are
that is accessible by ferry, will eventually nomir downturn. maid"fur II. plenty of older, smaller apartments out
have 1,200 condominiums on a nine-hole gulf "The surprise this year is the return of there,but very few luxury units in high-rises
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course.Like most waterfront properties un- buyers from the Northeastern states." Mr. As a person who makes a living in real estate,
der development, its units are expensive. Lamondin said. "The whole Aventura area At Decoplage.a building Crescent Heights I have to believe that upside potential for real
avera¢ule SI 6 million. .Su:u''ne land cues has weathered the recession yen. well In Iought after foreclosure. apartment prices '•staIf.values will be enormous.. ■
Fl NAL EDITION
AC • Al
As seen in... elle taint 7 crab
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F • FRIDAY,NOVEMBER 26, 1993 COH1EIITSCOPYia6HT a 1993 THEUUYI HERALD
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Crescent Heights tops list
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in condo sales and volume
Conversions return more than double its nearest "Crescent Heights is definitely
competitor, according to tapping into the demand for
as market force Appraisal and Real Estate Eco- waterfront housing at affordable
nomics Associates, the Miami prices," Dabby said.
in South Florida firm that compiled the ranking. Another condo conversion pro-
Most sales were made at the ject by the company—the Castle
By.DON FINEFROCK Decoplage,a 643-unit oceanfront Beach Club in Miami Beach —
Herald Real Estate Writer apartment building on Lincoln was the top-selling rondo project
Crescent Heights, one of the Road, said David Dabby, a in South Florida in 1992,accord-
; companies that has tapped the senior vice president at AREEA. ing to AREEA.
Miami Beach market by convert- Crescent Heights' sales volume -
ing existing buildings to condo- — $83.3 million — also was
miniums, topped the list of more than double that of any
condo developers in South Flor- other condo developer in Dade,
Ida during the first nine months Broward or Palm Beach counties.
of 1993. The average unit selling price
The company sold 968 condo- for all the condo developers was
minium units during that period, $86,000.
SOUTH FLORIDA LEADING CONDO DEVELOPERS
Rank Developer S Volume Bales Avg Price
1. Crescent Heights $83,325,200 968 $86,080
2. Coscan Waterways 35,516,400 141 251,889
3. Oriole Homes 35,247,100 322 109,463
4. Lennar Corp. 29,946,100 396 75,621
5. Fisher Island 26,160,000 18 1,453,333
4. Minto Builders 23,412,400 259 90,395
7. Pacific Intl 20,477,600 111 184,483
8. Century Village 20,204,700. 271 74,556
9. Nansep Corp. 14,517,400 34 426,982
10. Williams Island 14,406,400 39 369,395
Rankings by dollar volume,January through September
SOURCE:Appraisal and Real Estate Economics Associates Inc.