Terrace Towers
144-unit Miami Beach conversion
144
Total Units
Significant
Value Increase
N/A
Year Converted
FL
State
Property Details
Unit Types
N/A
Year Built
1960
Underlying Mortgage
Yes - paid off through conversion
The Transformation
From Challenges to Success
Before Conversion
The Challenges
Unit values were too low to refinance the building and pull out the necessary millions to complete the restoration. As a co-op, units were selling at a 40% discount to neighboring properties. Several previous attempts to convert to condo ownership had failed.
The mortgage on the building was coming due in 5 months when Hutton was finally engaged. Within that period, an additional $4.0 million was needed to start the structural facade restoration ordered by city and county building officials.
As a co-op building, units were selling slow, at low prices and with no financing available.
After Conversion
The Results
Hutton created a structure to convert all 144 units to condominiums without requiring any out-of-pocket funds from the ownership. The plan also included a back-stop arranged by Hutton to cover any shortfall in funding the conversion from contributions from owners, which assured 100% participation by owners.
Within 5 months of starting the process, Hutton delivered on all points. Building was converted to condos, funding completed and restoration started. Due to the pandemic, the restoration was delayed and has recently restarted.
Condos are easily selling at 50% higher prices with unlimited financing options.
Financial Impact
Financial Impact
Results shown are from a representative unit. Individual results vary by unit size and condition.
Property Location
Terrace Towers
3 Island Avenue, Miami Beach, Florida
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