111 First Delray in the South Florida Business Journal
The 111 First Delray condo in downtown Delray Beach has broken ground with most of its units pre-sold.
The project will have 70 units and 3,500 square feet of retail at 111 Southeast First Avenue. The ground breaking ceremony will take place Nov. 2 at 11 a.m.
It’s just south of Atlantic Avenue, a busy strip of restaurants and shops that is one of the most active nightlife spots in South Florida.
Felipe Vergara, of developer SOFA Partners, said just over 50 percent of the units have been pre-sold. Construction has started and the building should be completed in winter 2018.
“It took a bit longer than we expected,” Vergara said. “We had a much larger volume of inquiries during the high season of November through April and it slowed in the summer months.”
Many of the buyers are locals who either live in Delray Beach or are frequent visitors to its downtown, Vergara said. Many buyers were snowbirds from the Northeast, he added.
Units in 111 First Delray range from 750 square feet with one bedroom to 1,600 square feet with three bedrooms. They are priced from $450,000 to about $1 million, Vergara said. Since it started selling in late 2015, it has increased prices 6 to 10 percent because of strong demand, he added.
Construction is being funded by equity and 30 percent buyer deposits, Vergara said. He’s currently speaking with several banks about a construction loan. Current Builders is the general contractor.
Most condo projects in Miami require 50 percent down, but the mostly domestic buyers of a condo in downtown Delray Beach won’t commit to deposits so large, Vergara said. That’s why his development team has provided more equity for the deal.
The five-story 111 First Delray was designed by architect Richard Jones. Amenities will include a pool deck connected with an entertainment room with a pool table, a summer kitchen, a bar, a grilling stations and cabanas, plus a fitness center.
The developer acquired the 1.12-acre site in 2015 for $9 million. The development team also includes Manuel Vergara, Rafael Rincon and Daniel Rincon, George Ligeti of the Greenfield Group and Paul Kilgallon of Mainstreet Capital Partners.