Constructa seeks to build residential instead of hotel component at Brickell village
By Sherri C. Ranta
Constructa's Mary Brickell Village, like BVT Development Corp.'s Coral Station at Brickell Way, is dropping its hotel plans in favor of expanded residential components.
Planned to stretch along South Miami Avenue between Southwest Ninth and 10th streets, Constructa's mixed-use project is awaiting new permits for a 382-unit residential piece. BVT's Coral Station at Brickell Way, now billed as upscale rentals, was planned as a hotel on Southwest First Avenue at 13th Street.
Constructa's change requires a permit change, delaying work originally planned to begin earlier this summer, said Philippe Labarre, project manager. Developers now hope work can begin in October.
Permits for the retail portion of Mary Brickell Village, which is to include a Publix and restaurants, are approved but lenders want all permits in place before proceeding, Mr. Labarre said.
Market forces have changed since plans for Mary Brickell Village were made three years ago, said George Giebel, Constructa senior vice president.
"Right now," he said, "market trends on Brickell favor multi-family."
"What's surprising," said David Gray, director of Cushman & Wakefield's real estate hospitality group, "is not who is dropping their hotel component, but who would go ahead and build a hotel on Brickell right now."
Lending for luxury hotels is at a standstill, he said. "The lenders are taking a cautious and conservative view."
Developers in the Brickell market added or planned 1,000 rooms during the past three years, Mr. Gray said. The existing JW Marriott and Mandarin Oriental hotels account for about 600, he said. Four Seasons and Espirito Santo Plaza, he said, will add about 400 more.