May 2, 2014
Construction began in December 2013 on Oceana Bal Harbour, the Bal Harbour project with an all-glass tower that will have 240 units along a 400-foot stretch of oceanfront.
Developer Consultatio said it obtained a $332-million construction loan for its ultra high-end condominium project, Oceana Bal Harbour, from a consortium of banks led by HSBC.
“We thought it would be convenient for the company to obtain such a credit facility,’’ Argentine developer Eduardo F. Costantini, the head of Consultatio, said in the telephone interview from Buenos Aires.
Consultatio expects to complete its first U.S. project, Oceana Key Biscayne, at the end of July. The Key Biscayne condo project —where prices have already soared above pre-construction prices —was financed without any bank financing, relying instead on developers’ equity and buyers’ deposits, Costantini said. As his firm delivers those units to buyers, it will amass cash to pursue other projects “in Miami and New York,’’ Costantini said.
It will feature sculptures by Jeff Koons.
Costantini said the Bal Harbour project, which is selling at an average price of $1,800 per square foot, already has “north of $350 million of signed contracts’’ to buy units and a total of more than $400 million in commitments, including reservations. Total sales for the project will be in the range of $1.2 billion to $1.3 billion, he said.
Costantini is using the popular buyer-deposit model for the project. Unit buyers are asked to put up 10 percent when making a reservation; another 20 percent upon signing a contract; an additional 10 percent when construction reaches the fourteenth floor; and 10 percent when the building is topped off. The remaining 50 percent is due at closing.
Source: Miami Herald