I happen to be in South Florida right now and took a drive through Miami just the other day. I was stunned at how many high rises were in construction. There have to be thousands of unfinished condos in downtown Miami. I can't imagine what will happen to those buildings if their developers meet the same fate as the partners of the Savoy Hotel and face foreclosure. The Savoy Hotel, a landmark with a guitar-shaped pool that sits on prime beachfront property on Ocean Ave., was in the process of being converted into luxury condominiums and condo hotels. The developers ultimately could not convince banks that the project was worth financing, and now the project is shut down. One of the lenders, BankFirst Corporation, is suing for $4.7 million.
It's also being reported today that median housing prices in the U.S. will probably fall this year for the first time in 50 years. Surely, if a famous luxury building literally on the sands of South Beach cannot withstand the market downturn and convince bankers that it is worthy of a loan, the high-rise condos that only face the polluted Miami river will not fare any better. What will happen to those buildings?? Will they be left unfinished??
I will try and take pictures when I am back in Miami on Tuesday to document the crazy number of half-finished buildings.
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