Bringing luxury condos to a Miami market that is already saturated with similar products would be harrowing for some developers. But not for Henry Torres, CEO of the Astor Companies, who said there are still ways to differentiate a product that will ensure its success during uncertain times.

The Astor Companies has just broken ground on Merrick Manor, a 227-unit, Mediterranean-style high-end condo development located in Coral Gables. With an expected completion date in early 2019, Merrick Manor will be among the many luxury developments competing in a market that is considered by some to be overbuilt, plagued by soft sales or officially “distressed.”

One analysis shows that there will be 11,000 new condo units delivered to the Greater Miami market by the time Merrick Manor is completed. So why isn’t Torres fretting? Because Merrick Manor was able to differentiate itself – in terms of location and scope – from its competition, Torres said.

For one, Merrick Manor, at 4200 Laguna Street in Coral Gables, is being built away from much of the overcrowding that has come to define other luxury markets in Miami, like Brickell, Downtown and Miami Beach. Being somewhat removed from the building boom hitting other places, Merrick Manor is not only facing less competition, but is attracting buyers who don’t want to deal with issues of overcrowding, Torres said.

“The things you hear about that is overbuilt is downtown Brickell,” Torres said. “There’s people that don’t like living there because it’s over congested. In Coral Gables, it’s a different story. It’s a small town. It has the old world feel still. I see us selling our project without a hitch.”

In the submarket of Coral Gables, there isn’t much competing with Merrick Manor, which further helps the project to stand out, Torres said.

“We are the only large condominium project in the city of Coral Gables under construction at this moment,” he said. “Everything else out there is little small projects with maybe 12, 13 units. A lot of people going to buy condos don’t like small buildings, because if there is an assessment or if anything happens to the building, its not shared with a bigger amount of people, so the impacts are bigger.”

Merrick Manor

Successful strategy

The strategy has proven successful so far, as 50 percent of Merrick Manor’s 227-units have been sold, Torres said. Traffic at the site continues to outpace his expectations.

Being selective and strategic with his projects has helped Torres and the Astor Companies find success in a Miami market struggling with inventory and affordability issues. That foresight has also led him to Little Havana, where a affiliate of The Astor Companies built a 320-unit building that was eventually sold for $90 million and preceded much of the change taking place in the historic neighborhood.

Torres said the city is overbuilt, and that’s likely a result of developers misreading the market.

“I think everybody goes out there and does their own thing. They don’t really look at the market a lot,” Torres said. “They think they’re going to sell faster than anybody else, and they’re going to sell their inventory first. Right now, people are rethinking.”

Despite those issues, Torres said he sees the Miami market correcting itself and returning to a healthy cycle soon enough.

“We definitely built a lot in Miami. I think it will vet itself out,” he said. “We’re not in the same situation we were in in 2007. We learned from those mistakes. I think the sales are still there. People are still interested in the Miami market.”