ST Residential invests in Miami’s Mint condo to help drive sales

11/05/2010

“ST Residential has made the decision to serve as a backstop in the distressed condominium market. Rather than playing to the killer instincts of investors searching for prey, ST Residential has begun a marketing effort to change the thinking about condos from commodities that are to be traded to homes where individuals and families live,” Zalewski said. “To be successful, ST Residential must convince buyers that the market cannot get any lower, from a pricing perspective, while at the same time offering a value proposition in terms of lifestyle.”

Ideally, the investment will not only make the Mint product more distinctive, but it will also make condos more valuable, and ST Residential has the time and money to wait out an improvement in the market, Spiegelman said.

Adam Greenberg, managing director at BayBridge Real Estate Group BayBridge Real Estate Group, is not sure the $15 million gamble will pay off.

“Will those upgrade costs translate directly into increases in property value, or would they be better off keeping pricing low and getting to their buyers on the ‘value’ perspective? And are these changes necessary/warranted, just based on the difference of taste by ST Residential? It remains to be seen because no one has tested that hypothesis. No one has taken a project that has slowed down, put in new money and resold it. The only strategy that has worked has been lowering prices,” Greenberg said. “But he has something going on his side, which is that a lot of the inventory in downtown Miami and Brickell has been sold.”

For the FULL article from South Florida Business Journal by Oscar Pedro Musibay, please click HERE.

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