More than 40 South Florida condo projects in the pipeline are registered to sell in New York, aimed at appealing to the steady stream of buyers from the Empire State.
Even more projects are expected to follow suit.
Related Group, Swire Properties, JDS Development Group, PMG and Naftali Group are among developers that have been approved by New York’s Attorney General to market and sell their planned condo projects in the state, according to The Real Deal’s analysis. Some buildings are recently completed, while others are in the planning or construction phases.
Most recently, the state approved Swire Properties’ application to advertise and sell units at the planned Mandarin Residences, a branded-condo and hotel project on Miami’s Brickell Key. Fortune International Group is leading sales of the two-tower development.
Douglas Elliman and Fortune International Group have the greatest number of projects in TRD’s analysis.
New York modified the process in 2016 for projects outside the state to market and sell in New York, allowing developers to bypass certain regulatory requirements in the offering plan review process that were previously needed in order to advertise or sell condos in New York.
Developers and brokers say the approval helps logistically, and it gives prospective buyers comfort.
It’s a “good housekeeping seal of approval for buyers coming from the Northeast,” said Andrew Kraynak, chief sales and marketing officer at Miami-based Ytech. “Being able to extend those same protections provides [those buyers] with a level of assurance, especially if they have never purchased in Florida before.”
Ytech is developing the Residences at 1428 Brickell, a planned luxury condo tower in Miami’s Brickell neighborhood. The firm has been registered to market and sell in New York for about a year, Kraynak said. The Residences at 1428, a 70-story, 198-unit tower, is nearly 50 percent presold. More than half of those buyers are domestic, Kraynak said.
One downside for developers with projects registered in New York is that buyer deposits are subject to different rules and a more in-depth risk assessment. In Florida, condo developers can use much, if not all, of their buyers’ deposits for construction.
“In Florida, it’s much easier for us to gain access to those escrow funds earlier in the process” than for deals secured in New York, Kraynak said.
Douglas Elliman Florida CEO Jay Philip Parker said he’s seeing an estimated 30 percent to 40 percent of new condo buyers coming from the Northeast. He said he “absolutely” recommends his South Florida clients apply to register their projects in New York so that they can sell there.
Parker echoed Kraynak. While those purchasing units in South Florida projects are likely doing so before construction has started, in New York buyers are usually signing contracts for condos that are already under construction.
“There’s an educational process,” Parker said, adding that it’s also helpful for cross-market collaborating with Elliman’s agents in New York.
Here’s a map of the South Florida condo developments registered to advertise and sell in New York:
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