Reuters: "Glacial sales pace could spell disaster for Perez"
Three weeks ago the Miami Herald had an interview and feature story on the slow closing rate and growing financial concerns at Icon Brickell. Now Reuters is weighing in on Miami's condo conundrum: "The once-booming real estate market that made Jorge Perez a billionaire is crumbling around Miami's 'condo king' in what may be the biggest U.S. condo glut." Interviews with distressed property buyers and Miami realtors offer words of encouragement for Perez but little in the way of optimism. Of the 1,640 luxury condos in Icon Brickell, only 18 units had closed as of March 18. That's 1.09%. Put another way, if you multiplied by a very conservative median sales price of $500,000, that's roughly $9,000,000 in value for units closed compared to a total project value of $820,000,000. Adding insult to injury, "New rules from lending giant Fannie Mae, which buys mortgages from banks, have been anything but helpful when it comes to providing potential condo buyers with end-loan financing."
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