CEO Jaime Sturgis was recently quoted in Bisnow about his insights on the ever-changing condo market.
“Condo buyouts are probably the single hardest real estate feat to accomplish,” said Jaime Sturgis
Sturgis likened the process to solving a Rubik’s Cube.
“It’s incredibly challenging as you can spend a ton of time, resources and legal dollars getting through what you believe to be everybody, and then there’s just a couple holdouts that can kill the deal,” Sturgis said.
In the last decade, the Florida Department of Business and Professional Regulation tracked more than 400 condo terminations as of February, according to The Wall Street Journal. But not even Miami’s beachfront property is immune to the slowdown in capital markets and development driven by increased costs at every stage of development.
“It paused the development just because of the economics, between the cost of capital going up, the cost of insurance doubling and tripling year-over-year, and then the cost of construction also going up,” Sturgis said. “It’s very difficult to pencil around on multifamily construction right now.”