With economic pressures driving down the prices of high-end condos inside new developments like Signature in St. Petersburg and 55 West in Orlando, developers are looking for ways to fill their towers.
The answer seems to be in rentals.
Both highly-publicized urban condo towers have run into financial struggles after buyers have backed out and deals have fallen through. Signature developer Joel Cantor said Signature has also cut its prices by 25%.
“I basically gave away the lion’s share of my profit,” Cantor told the St. Petersburg Times in August. “You won’t see my jet parked at the airport.”
Cantor says he hopes to recapture his investment money with the tower’s 220 units—most of which overlook Tampa Bay. But that doesn’t make it any easier to accept that 55 of his 177 buyers will probably walk away from their contracts this fall.
Orlando’s 34-story 55 West is scheduled to be sold in a foreclosure auction this month and the project’s developer owes a reported $239 million in construction financing.
To fill the tower and generate revenue, 55 West returned buyers’ deposits and is making units available for rent.
Property manager Samantha Branchaud thinks the new rental strategy will work.
“They could’ve walked away, but thanks to their vision and their commitment, we’re actually going to have a success story here in downtown,” Branchaud told WFTV in July.
Units in the 55 West development are as large as 1,032-square-foot studio lofts and range from $1,000-$15,000 a month.
For more information on both developments, visit SignatureStPete.com or FiftyFiveWest.com.
