Corus Swept Up in Florida Condo Undertow

Sales at One Bal Harbour began in late 2003. WCI told investors on its conference call that half of the units were sold to investors, and it expects default rates will be between 8% and 10% at the site. Several market watchers say those default rates are conservative.

WCI also said Miami Beach, where One Bal Harbour is located, is a better market than the rest of Miami. Prices will average about $750 per square foot.

Jade Ocean, in contrast, is located about a mile from Bal Harbour in the area known as Sunny Isles, Fla. -- which does not have golf courses or as a nice a beach as Bal Harbour. Nonetheless, Jade Ocean is asking for an average of $900 per square foot for the units, with some as high as $1,400 per square foot.

Alex Barron, an analyst who covers WCI and other homebuilders for Agency Trading Group, wonders how Jade Ocean can possibly find buyers at higher prices than Bal Harbour, where he expects the default rate to be 25%.

"Jade Ocean is so ridiculously expensive," Barron says. "It will be one huge blowup. It is so far out into the future."

The developer of the project disagrees. Edgardo Defortuna, the president of Fortune International, says the company was very careful to screen against speculators buying at the property. His wife was the director of sales.

« Previous Page

1 2 3 4 5 6

Next Page »