That another condo complex in Miami is going back to the lender is nothing new. But there was a startling fact in the story that rivals the catastrophe of the Pontiac Silverdome.
The Wall Street Journal reports Related Group Expects Banks to Take Over Miami Condo Project
MIAMI—A group of lenders led by HSBC Holdings PLC and Bank of America Corp. are likely to take ownership of Icon Brickell, a Miami condominium and hotel complex, according to Jorge Pérez, chairman of Related Group, the current owner of the project.
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The negotiations over the Icon Brickell, one of the highest-profile developments in the Miami area, are among hundreds of similar discussions between real estate developers and banks stuck with a glut of condos in South Florida. “We’re in for a very exciting 2010,” said Ron Kriss, chairman of the distressed property group at the law firm Akerman Senterfitt in Miami.
In the downtown Miami and neighboring Brickell areas, more than 22,000 condos have been built in the past four years, or more than twice the number added over the previous four decades, says Holliday Fenoglio Fowler LP, which advises real-estate developers and investors.
Stop right there. Twice as much as the last four decades!
There is nothing else to read…it is painfully-obvious how this is going to end.
It may take another 3-4 year to get there, but Miami-area condos are going to zero or very close to it.
