Puerta de Palmas: Setting the Tone for 2008?

Not since Biltmore II was built on the southwest corner of Biltmore Way and Segovia Street in 1973 has the north side of Coral Gables seen a larger residential condominium project than Puerta de Palmas. Situated adjacent to the Puerta del Sol archway that marks the northeast entrance (Douglas Entrance) to Coral Gables, the 16-story Mediterranean-style structure is home to a whopping 198 units.

One hundred ninety eight units?

Yes, one hundred ninety eight units. Ciento noventa y ocho unidades.

I know, I know. When you’re used to suffering from arthritis of the neck from looking up in disbelief at the behemoths under construction directly to the east, comparing a 198-unit building to something like a 50 Biscayne (which I happen to like a lot) is like comparing the Stardust to the MGM Grand. It’s a Quizno’s unfair match-up. You just don’t do it.

But this is no Magic City. And it sure as hell ain’t Sin City either. This is The City Beautiful, baby. A place where words like “population”, “density” and “control” are serious business and 198-unit buildings are a legitimate concern.

Puerta de Palmas was completed (granted a TCO - Temporary Certificate of Occupancy - I should say) in the 3rd quarter of 2007. According to Miami-Dade County public records, unit closings commenced the first week of August. Since then, approximately 151 out of the 198 units (76%) in the building have closed.

The following is the monthly breakdown of closings along with each month’s percentage of the total units closed:

Keep in mind that it can take anywhere from 2 - 4 weeks for a deed to be recorded with the Miami-Dade County Recorder. However, judging from the numbers above (no apparent closings in over 60 days), it’s almost safe to assume that “that’s all she wrote”.

As you can see, the developer got off to a quick start and closed approximately 44% of the project’s units within the first month of deliveries. A little bit over 58% of all the closings that have taken place occurred in that first month. The amount of closings were nearly cut in half a month later, only to diminish considerably thereafter.

Of the 151 units that have closed, MLS data shows the following:

Actively Listed For Sale: 22

Actively Listed For Rent: 23

Actively Listed For Sale/For Rent: 8

Actively Listed For Sale (while occupied by a tenant): 13

Rented & Occupied (not actively listed for sale or rent): 38

It should be interesting to see what the fate of the remaining developer-owned units will be. Equally of interest will be the effect that the class of 2008 (55 Merrick, The Ponce de Leon, Ponce Tower, Villa Alhambra, Verona Park, Valencia Grande) has on not only Puerta de Palmas, but newer communities like Villa Zamora, Villa Florini, Andalusia, The Minorca, Villa Calabria, Biltmore Village, Mendoza Village and Ten Aragon, if any.

Some believe that when it comes to real estate certain areas in South Florida play by their own rules.

Any thoughts?

Pictures slide show of Puerta de Palmas:

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