The Related Group is faced with $678.5 million of construction loans coming due on the massive three-tower ICON Brickell condo and condo-hotel project within the next eight months, according to the South Florida Business Journal.
A $502 million construction loan on two of the three towers in the ICON Brickell complex is scheduled to come due on June 18. Under the terms of the loan with HSBC Realty Credit Corp, the developer of the 1,820-unit complex can seek a six-month extension that would end on Dec. 18, according to the article.
A $176.5 million on a third tower in the complex is scheduled to mature on Nov. 16. It is unclear if there is a six-month extension option on that loan, according to the article.
"ICON Brickell has the potential to be one of Greater Downtown Miami's most important projects," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "The question unanswered is will it be profitable."
In the first three months of closings through Feb. 27, 2009, ICON Brickell has recorded 17 closed sales worth $13.1 million for an average of $770,576 per unit and $578 per square foot, according to the Miami-Dade County Clerk of the Courts.
At the current pace of six closings per month, the project would need about 300 months or more than two decades to close out. Industry watchers are confident the closing pace will increase significantly once mortgage financing is once again available in the Greater Downtown Miami market.
In the meantime, ICON Brickell has begun to lease - Condo Vultures® Realty LLC has several leases pending - developer-owned units to tenants interested in the living in the project designed by Internationally acclaimed French designer Philippe Starck.
Tenants are attracted by the overwhelming amenities that include as a two-acre pool deck with Japanese blueberry trees planted, three swimming pools including one that stretches 300 feet and another on the 50th floor of the west tower also known as ICON Brickell No. 3, five restaurants, seven bars, an outdoor fireplace, the largest hot tub in Florida, and a 28,000-square-foot spa and fitness center that features a massive indoor wading pool.
ICON Brickell is comprised of a north tower (57-stories), a South Tower (57-stories), and a West Tower (50-stories) located at 495 Brickell Ave. on the site of the former Sheraton Hotel.
The project is located between two parks, Brickell Park, named after the area influential pioneering family the Brickells, and the state-owned site on the south bank of the Miami River where the Tequesta Indian's ancient Miami Circle sundial is situated.
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .
Copyright © 2009, Condo Vultures® LLC
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