Stuart and Martin County Florida Development
By David A. Podgursky • Dec 12th, 2007 • Category: Development, Residential MortgagesThe Palm Beach Post had an article ( link )this week regarding developers in Stuart Florida - the county seat of Martin County Florida. The city officials are bracing for an influx of developers looking for extensions on their development timelines.
Due to the market conditions they have been unable to continue their efforts to develop land that they purchased 2-3 years ago. Planned Unit Developments that are reaching the end of their original approved building timeline are now in jeopardy of ever being built due to the lack of financing available for new construction… and not just in Florida!
Among the many reasons these projects have had issues getting off the ground are Building Supply Shortages and Hurricane Damages.
The biggest blow to development in this Florida market is that lenders are just not funding projects right now without major pre-construction sales numbers.
With the market prices dropping - especially on condominiums in major (overbuilt) markets, many buyers have walked away entirely from large cash deposits leaving developers, lenders and investors stranded.
There are even instances where a loan that was not yet fully committed was pulled at the last minute because a lender changed their portfolio and wanted 70% of a development’s units sold instead of 30% as they had needed in the past.
The good news is that there are investor groups out there that are still backing good projects in the right submarkets where development has not gone crazy like in Broward and Miami-Dade Counties.
These investor groups are bringing pre-construction buyers for the units and funding construction with attractive financing packages that can restart the project almost immediately.
As cities find themselves mired in requests for construction extensions, Investor groups will find the demand for their funds and services will grow as the market swings back to normal over the next 24-36 months.
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David A. Podgursky, MBA
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David A. Podgursky is a Broker Associate for Boca Executive Realty - www.bocaexecutiverealty.com. As a resident of Lake Worth Florida, David succeeds in assisting Buyers and Sellers with their Residential and Commercial Real Estate needs in Boynton Beach, Lake Worth, Greenacres, Delray Beach and Boca Raton Florida.
David is a Florida Licensed Real Estate Broker and Mortgage Broker making him uniquely capable of offering Full Service Real Estate Services to his clients.
From assisting a first time buyer in determining how much they can afford to analyzing an investment for a high end investor to helping a baby boomer decide the best property for their retirement in Sunny Florida, David Podgursky is the Boynton Beach/Lake Worth Realtor to call first!
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