Miami-based Related Group knows how to keep real estate brokers motivated in selling its projects. At a recent gathering at Juvia, a trendy restaurant at 1111 Lincoln Road in Miami Beach, about 30 brokers gathered to collect nearly $2 million in commissions for the pre-sales of 42 of the 49-unit Apogee Beach in Hollywood Beach, said Carlos Rosso, who heads Related's condo division. The total broker payouts would reach $5 million when all the units are sold. Apogee Beach is one of the first new condo projects to go up since the economy crashed in 2008.
Related began construction of Apogee in January. Bringing buyers to the oceanfront project was instrumental for Related to be able to break ground on its first project since the economic downturn.
Apogee, near A1A and Hallandale Beach Boulevard, is mainly funded with the deposits of the buyers, mostly foreigners. "It is a way to show that when brokers do their part selling condos for developers who follow through with their promises, everybody wins," Rosso said.
Apogee condos pre-sold at almost $500 per square foot, with units ranging from $700,000 to $2.5 million, he said, adding the new asking price for the few remaining units is about 20 percent higher.
Related plans to hold a similar event this month for brokers who pre-sold many of the condos at the planned Mybrickell, a 192-unit condo tower in downtown Miami.
Related is launching another project, 1100 Millecento Residences, a 42-story tower west of Brickell Avenue in Miami.