Fisher Island Preconstruction Beats The Odds – $300M Sold At Six Fisher Within Weeks Of Launch

 
What could have been seen as a gamble, launching an ultra-luxury development that you have to be invited to even be considered for in a nationally declining real estate market, is proving to be a stroke of genius. Related Group’s The Residences at Six Fisher has sold nearly 30% of its inventory just a few weeks after its soft launch at Art Basel.

The project is set to rise on the last available development site on Fisher Island, a private enclave of ultra-luxury condos and homes with its own school, private club, police force and more. There is currently one crane on the property, preparing for groundbreaking when the rest of the country is stressing interest rates and new pending sales that are practically in a free-fall.

Despite the woe in the macro-real estate market, Jorge Perez believes in Miami. As “the condo king of Miami,” he certainly knows his kingdom and places all of his cards where they need to be. Anticipating a $1.2 billion sellout on the 10-story, 50-unit project, he paid nearly $125 million for the land to build and declared that not just anyone can garner a presentation on the project. He has hand-picked those who are able to consider the luxurious investment.

It seems that he has chosen well, as $300 million of contracts are currently out, with initial buyers not only hailing from international locations such as Brazil, Canada, Mexico and Israel, but also from domestic locations as well.

“Almost 30% of the units are spoken for,” said Perez. “Contracts have gone out for over $300 million, and we haven’t really done any marketing. Nevertheless, should the market slow down a little bit, we’re in a fortunate position.”

What makes us a true outlier is the fact that Miami has traditionally been an internationally-focused market. When wealthy international people seek to enter the US market, they largely choose Miami due to weaker economies and political instability in their home countries, but also the ease of access, undervalued prices, vibrant lifestyle and unique mix of cultures that Miami offers. It is very easy to feel at home in Miami, no matter where you are from. Over recent years however, domestic buyers have descended upon us, looking for more favorable tax environments, so the surge of demand with weak supply continues to push prices & projects skyward.

“Yes, the market across the country has gone down, particularly in luxury units, but we’re finding that in enclaves that we have, like Fisher Island, we still see a great level of interest from those people that can afford the best,” Mr. Perez told CNBC.

Inside the sales cycle of ultra-luxury projects

It is not unheard of for new ultra-luxury projects to experience a busy launch, then having the sales taper off as the development nears completion. Initial buyers are offered incentives for placing their trust in the developer’s plan without having a tangible example to tour. There is also obviously more inventory to choose from.

As the project rises and prospective buyers have more information to base their decisions on, prices rise. Despite the higher prices, the projects continue to sell, with buyers in this price bracket searching for “The One”. They are looking for something unique, something bespoke to their own tastes and needs. With The Residences at Six Fisher, they find this and more.

Fisher Island offers ultra exclusivity, privacy, security and amenities. The island is accessible only by ferry, yacht or helicopter. They have their own private school, the convenience of their own grocery store and restaurants, a private beach and a golf club. There is currently a five to seven year waitlist in Miami to join a golf club, so the immediate inclusion that buyers of Six Fisher receive to the Fisher Island Club proves to be immensely valuable.