With a shortage of standing inventory in Florida and surging migration to the State, Florida homebuyers will be faced with fewer options when searching for that perfect winter or year-round address. Construction materials and labor costs are on an upward trend, resulting in the continued rise of new home pricing in the market. For developers with pre-sale condominium offerings, this scenario will lead savvy homebuyers getting in early to take advantage of future appreciation.
For homebuyers that settle on what’s available today, waiting for new construction may be necessary to acquire the home of their dreams. Pre-sale offerings in real estate developments can be a win-win for both the buyer and the developer. For the homebuyer, the best selection and pricing are available upon initial release. Developer business plans include price escalations as contracts are secured. For the developer, early sales are necessary to meet construction financing requirements, and having buyers commit early is critical for the project to get off the ground. Often a 50% sales requirement is the trigger to breaking ground.
Cotton & Company, a leading sales and marketing firm specializing in luxury residential real estate, has assisted developers in introducing new offerings to the market for decades. “We have guided our clients through the ups and downs of many real estate market cycles,” says Stephann Cotton, founder and president of Cotton & Company. “As demand increases and inventory shrinks, developers have an opportunity to capture increased market share for pre-sale communities.”
After a lengthy acquisition process, Unicorp National Development received its final approval in April 2020 for The Residences at the St. Regis Longboat Key. With the country on lock-down due to a global pandemic, the timing appeared less than ideal for the developer of this prestigious project. Cotton & Company worked with the sales team from Michael Saunders & Company in Sarasota to present the opportunity through a compelling website and community brochure. The database pipeline was nurtured with details on the caliber of the development team and a glimpse of what the future would hold.
Against all odds, in the middle of the summer off-season, The Residences at the St. Regis Resort Longboat Key launched its pre-sale efforts. The luxury residential offering will encompass three gulf-front condominium buildings adjacent to a stunning St. Regis Hotel. The spacious residences will also provide homebuyers with access to the legendary services and amenities of the St. Regis brand, along with a host of private resident-only amenities. As the only residential offering of this caliber in Longboat Key history, the results astonished veteran industry professionals. The pre-sales launch occurred in late July 2020 and resulted in more than 30 sales totaling nearly $200 million in a matter of weeks.
In nearby downtown Sarasota, Core Developers’ newly completed residential tower, BLVD Sarasota, is nearing sellout. The 18-story tower is located in the bustling Rosemary District overlooking the parks and cultural centers of The Bay, Sarasota’s renaissance of the waterfront district.
Also, in Sarasota, Kolter Urban has owned the condominium market for the past decade. Following sellouts of VUE Sarasota Bay and Mark Sarasota, the developer is nearing completion and sellout of the Ritz-Carlton Residences Sarasota as well. Kolter Urban’s newest venture, Bayso is located adjacent to the Ritz-Carlton Residences in The Quay Sarasota, a waterfront multi-use neighborhood being developed by GreenPointe.
Bayso will offer 149 luxury condominiums with a walkable lifestyle in one of Florida’s most desirable downtown locations. The newly launched condominium will feature 11 innovative two- and three-bedroom plus den floor plans ranging from 1,600 to over 2,600 square feet and seven luxurious penthouse floor plans ranging from 2,500 to just under 4,000 square feet. Residences are priced from the $800s to more than $3,000,000. Cotton & Company is working with the team from Premier Sotheby’s on the presale launch, which has already resulted in the sale of more than $22 million in a matter of weeks.
“With shrinking inventory levels and over 1,000 people a day moving to Florida, pre-sales have been gearing up quickly,” says Laurie Andrews, principal and chief marketing officer for Cotton & Company. “In the post-COVID world, individuals are looking for a personal sanctuary where modern amenities and services can provide all the daily conveniences they need, close to home. There is a renewed focus on wellness, fitness and clean-air systems in new developments as a result of increased buyer interest in healthy living.”
Stephann Cotton sums it all up. “The market is booming, and historically low mortgage rates are providing liquidity across all sectors. The demand is tangible as evidenced by our clients’ astounding pre-sales success. People are willing to commit at a very early stage in development to find a new home, whether it be their first or third home, retirement home or vacation home.”
Cotton & Company’s coordinated branding, lead generation, advertising, internet, web development, digital marketing and public relations efforts create an unmatched marketing advantage for today’s unique real estate challenges.