Article Courtesy of The Miami Herald
By Nancy Dahlberg
Published September 14, 2016
As other luxury condo developers are pulling back, ROVR
Development is unfurling its plans for The Fairchild Coconut Grove, a
boutique luxury condominium set to soon rise on the Coconut Grove
waterfront.
The five-story Fairchild, with 26 residences, is the only waterfront
development going up in the Grove, said Oscar Rodriguez, who is developing
the project with Ricardo Vadia, both principals of ROVR. ROVR amassed the
one-acre parcel through the acquisition of the former Bay Colony
Condominiums, in the Grove’s Glencoe neighborhood.
Coconut Grove
architect Max Strang ensured that The Fairchild will have a
decidedly Grove feel, Rodriguez said. Incorporated in the
design is local oolite limestone, native wood accents and
clean white stucco as well as expansive outdoor terraces and
private gardens. The sleek and modern inside spaces will be
designed by Rafael de Cárdenas.
“In this day and age of concrete jungles and high rises and
living with 300 or 400 other people, this provides an
alternative for the person that wants more of a private
experience,” Rodriguez said.
Dedicated elevators will lead to two to four bedroom
residences ranging from 1,700 to 4,200 square feet, with
prices from $1.4 million to $4.5 million, or starting out at
about $823 per square foot. The Fairchild is scheduled to
break ground in early 2017 and construction will take about
a year and half, Rodriguez said. Sales and marketing is
being exclusively handled by ONE Sotheby’s International
Realty. |
|
Rendering of The Fairchild Coconut Grove, a boutique
luxury condominium development at 3581 E. Glencoe St., being
developed by ROVR Development.
|
Rodriguez and Vadia both worked at Related Group for more
than a decade and branched out on their own in 2009, merging their companies
a couple of years later. They have developed student housing, affordable
housing for seniors, luxury condos including a 100-unit project in East
Edgewater currently in development and a 402-unit rental apartment
development in North Miami, among other projects.
The Fairchild will be going up as other developers in the luxury category
are pulling back. Significantly fewer foreign buyers are in the market than
last year, as currencies in Brazil and Venezuela have tumbled. Developers
have begun delaying planned condo projects, especially in areas off the
water, including Auberge Residences & Spa Miamiin the Omni district and
Boulevard 57in the Upper East Side.
“We are going forward because we believe this is so uniquely situated and
boutique,” Rodriguez said. “It’s not investor driven. I believe the
potential buyer is an end user. While the market is precarious, we think
this type of product is insulated from that analysis. People fall in love
with our sales center and if they want to buy, they buy.”
The Fairchild will be financed by buyers, who will put up a total of 50
percent in stages before and during the construction process.
While it’s true that, in general, boutique luxury developments appeal more
to end users than investors, such projects can have drawbacks, said Peter
Zalewski, a principal of the Miami real estate consultancy CraneSpotters.com,
who closely tracks the preconstruction condo market. While such developments
can be highly desired because of the exclusivity and privacy, higher
maintenance fees because of the limited number of units can drive off
potential buyers, he said.
Sales have softened considerably in the luxury category, and prices are
expected to follow suit, he said. Between January and June, eight luxury
condo units closed in the Grove this year, at an average square foot price
of $703, Zalewski said. In the Grove’s preconstruction category, there are
six projects with 357 units proposed, planned or under construction, he
added.
“I would characterize the market as over-saturated,” Zalewski said, noting
that inventory levels in Coconut Grove are almost three times what is
considered healthy. “Where you are in the market now, a buyer can be very
selective and make the seller or the developer bow down and provide
incentives. Two years ago the developer would have had the advantage.”
Rodriguez agrees being boutique and unique is not enough: “It has to be in a
great location. … In these days it is important to have a major marine and
bay use, and we are very fortunate to have that with boat slips, kayaks and
paddle-boarding. It is very beautiful — that’s what sets us apart.”
|