SUNNY ISLES BEACH, FL-In March 2010, an affiliate of Dezer Properties assumed an existing loan from a Trump development partnership and started trying to sell a slew of empty condos. After selling more than 350 units, the firm has paid off a $265-million mortgage on Trump Towers II and III.
The project’s three towers each have 45 stories and 271 units, for a total of 813 units. Tower I is sold-out and occupied. Tower II and Tower III, which had a combined 475 units remaining to sell when the Dezers assumed the loan, now have slightly more than 100 units remaining.
“When we took over the mortgage from the original development group, we felt that a four-year time-window would be appropriate for the volume of units that needed to be sold,” Gil Dezer, president of the Dezer entities, tells GlobeSt.com. “The rate at which sales are occurring, it is our hope to conclude sales some two year ahead of our initial forecast.”
Dezer’s marketing strategy included price adjustments based on the new economic realities of the marketplace, with price points ranging from as low as $350 per square foot to $600 per square foot. Dezer expects that the remaining 100-plus units will sell in the range of $650,000 to $2.2 million, with higher price points for select combined and penthouse units.
“The huge differentiator for our real estate market is the international buyer,” Dezer says. The $265-million loan was the second significant pay-off in the last eight months for another affiliated Dezer entity. The company paid-off a $210-million construction loan in December, 2010 for another Dezer project, Trump Royale, located just north of Trump Towers in Sunny Isles Beach.
“With two large loan re-payments totaling $475 million--a $210-million construction loan on Trump Royale and now this--it gives our organization tremendous credibility with the financial community, and positions us as a truly unique development organization,” Dezer says. The Dezer portfolio includes 45 acres of oceanfront property in Sunny Isles Beach and more than 20 properties in New York.
“Inventory levels continue to drop consistently throughout Miami-Dade, which is putting pressure on pricing, and allowing us to slowly increase our overall pricing,” Dezer says. “We expect that in 2011 a great deal of the remaining developer inventory will be sold, allowing for some moderate price increases in 2012.”
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