Commercial Lending Renews Vigor for Coral Gables, Miami Development & Growth

on Thursday, 16 January 2014. Posted in forte related

Commercial Lending Renews Vigor for Coral Gables, Miami Development & Growth

Buried at the bottom of a recent business story about commercial and residential lending in South Florida was this headline: Thousands of New Miami Condos on the Way. For a real estate-based economy that only a few years ago was on life support, news about thousands of new condos – and, the expected businesses that likely will follow – is nothing to bury at the end of a story about construction financing.

In Miami, Coral Gables and South Florida business circles, this is big news. Banks are lending again. Projects once stalled on drafting tables – or mortgage lenders’ tables – are being put into motion.

In tow will come supporting businesses, commercial real estate, the need for robust office space, and all the services that come in kind.

News of thousands of new units going up and financing returning for developers, builders – and prospective buyers, is good for the economy.

 

Buried at the bottom of a recent business story about commercial and residential lending in South Florida was this headline: Thousands of New Miami Condos on the Way. For a real estate-based economy that only a few years ago was on life support, news about thousands of new condos – and, the expected businesses that likely will follow – is nothing to bury at the end of a story about construction financing.

In Miami, Coral Gables and South Florida business circles, this is big news. Banks are lending again. Projects once stalled on drafting tables – or mortgage lenders’ tables – are being put into motion.

In tow will come supporting businesses, commercial real estate, the need for robust office space, and all the services that come in kind.

News of thousands of new units going up and financing returning for developers, builders – and prospective buyers, is good for the economy.

The original business story was about a $31 million secured from SunTrust Bank by a joint venture between Miami-based Related Group and New York-based Related Cos. The project is Icon Bay condominium in Miami’s Edgewater community. Icon is not alone. The developers are building Element condominiums down the road. Another developer, Eastview Development, is taking reservations for its Biscayne Beach tower planned for the bay at 29th Street.

By one count, nine towers with nearly 2,200 units are going up Edgewater. That represents more than 15% of all units proposed for Greater Downtown Miami.

Any South Florida developer – or real estate buyer – who lived through the Great Recession knows the about-face this represents. The faucets are turned on. While money isn’t pouring out, it’s sufficient to nourish new construction. Take a look around Edgewater, or Brickell, or other areas, and construction cranes have returned to the sky.

For those who rode out the Great Recession, the market has come full circle. Now that banks are lending, it’s once again a great time to be developing or buying or leasing property in South Florida.

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