WCI’s Financial Fortune Is Staked To Condo Tower In Miami [South Florida]
One Bal Harbour may look like just another sign of excess in Miami’s oversaturated condo market, but to developer WCI Communities ( WCI) the luxury tower represents crucial cash.
The Bonita Springs, Fla.-based developer is counting on sales of 185 condos and 115 hotel-condos for the bulk of the $400 million to $600 million in free cash it will generate this year. So far, WCI’s free cash flow has totaled about $130 million.
With mortgage rates rising and lenders either tightening their requirements or shutting their doors, buyers are abandoning contracts. No one knows how many of One Bal Harbour’s buyers will walk away before closing.
“It’s the most important building they have to close this year,” said Vicki Bryan, senior high yield analyst at Gimme Credit. “They bet the farm on Bal Harbour.”