Not even Donald Trump armed with an oceanfront site can weather South Florida’s real estate correction without some pain.
Trump, a New York real estate titan whose name is attached to 10 Florida condominium towers, has confirmed to the Miami Herald that one of the two proposed condo-hotels planned for Fort Lauderdale has been shelved. The Trump Las Olas Beach Resort is on hold indefinitely much like what happened with Trump’s tower in Tampa.
``At this moment, to build in this market would be foolish,'' Trump told the Herald.
In the article, Trump did not discuss the status of his five other Florida condominium towers that are at various stages of development. Trump has four towers under construction in Sunny Isles Beach and one in Hollywood.
Trump also didn’t speak to what his development partners plan to do with the oceanfront site on Fort Lauderdale Beach on which the Trump project was supposed to be erected. In the article, Trump also didn’t address what happens to the $20.02 million predevelopment loan on the property.
It’s not shocking that even a developer with a reputation such as Trump won’t be going forward with one of the two Fort Lauderdale towers given the amount of inventory scheduled to be delivered in the region.
What is surprising is the timing of the announcement as it is just weeks before the out-of-town snowbirds return for the winter. With all of the negative attention about South Florida’s real estate market, a tremendous number of visitors are expected to go real estate shopping this winter.
Given that, one has to wonder if a deal for the project isn’t already in the works that would allow a future suitor to capitalize on the timing. Or, maybe the development team needs out fast and is hoping to take advantage of the number of Vulture investment funds searching for deals.
Peter Zalewski is a principal with the consulting firm Condo Vultures™ LLC and the qualifying licensed Florida real estate broker of Condo Vultures™ Realty LLC. Peter can be reached at 800-750-0517 or by email at peter@condovultures.com.
Copyright © 2007, Condo Vultures™ LLC
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