FT. LAUDERDALE, FL-One Thousand Ocean, a 52-unit, luxury condominium on the tip of a private peninsula adjacent to the Boca Raton Resort & Club’s Boca Beach Club, closed on 25 of its units for a total of $100 million. This is about half of the projected sellout volume of over $200 million, says Jamie Telchin, president of development with LXR Luxury Resorts.
While the developer of One Thousand Ocean, a seven-story condominium that finished construction in February, closed on 25 units, 35 units had been under contract. Telchin expects another five of those units to close in the next few weeks. “Realistically, we expect to sell another two or three units in the coming tourist season, from November through April,” he says. The average price for the units that have been sold, which average 4100 square feet, is $4.2 million or about $1100 per square foot, says Telchin.
The developer began selling units at One Thousand Ocean in December of 2006. In order to sell the condominiums, there are various incentive programs, which Telchin declined to elaborate on. Telchin expects to pay off a $137 million construction loan for the development to Wells Fargo by mid-August.
In the first season that One Thousand Ocean units were for sale, the winter of 2006-2007, the developer sold 20 of them, says Telchin. Then, when the condominium market began to falter, sales went down to just three per year for two years. Last season, the development sold nine units, he reports.
Although sales have been slow, One Thousand Ocean may be doing better than some other luxury condominiums. “We’ve seen 50% or more cancellations in South Florida condominiums since 2007,” says Jack McCabe, president of McCabe Research & Consulting in Deerfield Beach, Florida. “In some cases, we’ve seen as much as 80% to 100% walkaways,” he says.
One Thousand Ocean is a nautilus-shaped building featuring one and two-story beach villas, one-story residences and penthouses. While they average about 4,100 square feet of interior space, they have approximately 1200 square feet of terrace space. Asking prices range from $3 million to $15 million.
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