Corus Swept Up in Florida Condo Undertow

The developers of Jade Ocean, a luxury high-rise condo near Miami Beach set to be completed in 2009, claim they've already sold 98% of the building's units -- a seemingly astounding feat given that many housing experts expect the Miami condo market to implode before the project is even finished.

Of course, the reality is that this "pre-construction sales" number at Jade Ocean carries little meaning. It's a phrase that previously impressed people but carries little meaning in present-day Miami -- which is increasingly looking like the Netherlands in the aftermath of the Tulip Craze more than 300 years ago.

At the forefront of a looming crisis in the market is Corus BanksharesCORS, a Chicago-based bank that has been one of the largest construction lenders for Miami condos in recent years.

Skeptics say that buyers for Miami projects like Jade Ocean -- the largest of the Florida condo projects for which Corus has provided financing -- will have left the market in droves by the time the buildings are actually finished. Buyers will walk away from their 20%-down deposits because of rapidly falling prices and a huge inventory overhang that will only get worse in the market, several industry experts say.

The problem specifically with Jade and several other projects Corus has lent to is that they are being built late into the game, and the rules of play have changed rapidly since the heady days when speculators would snap up any unit available.