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Homebuilder and developer WCI Communities told investors recently that the average selling price of its homes fell 10.5% in the fourth quarter.
But there was one notable exception: Altaira, the condo tower WCI is building at The Colony Golf and Bay Club in Bonita Springs, is posting average sales price per unit of $1.8 million. That compares with an average selling price of $451,000 for all its homes.
The condo prices drew lots of questions on a recent conference call with Wall Street analysts because the profit margins on condos are fatter than single-family homes.
So far, WCI has sold 13 of the 76 units at Altaira, which has reached the fifth floor of construction. One buyer recently paid $3.6 million for two adjoining condos. The 19-story tower will cost $60 million to $70 million to build and the first residents will start moving into their homes in the second half of 2017, WCI CEO Keith Bass told investors in a Feb. 17 call, the transcript of which was posted on SeekingAlpha.com.
“We feel great about where it sits as far as inventory in the marketplace and we think it's a tremendous value,” adds Bass. “In fact, they raised prices just a little bit or they are about to do it I think this month.”
Unlike the previous boom, WCI says the condo buyers will live in the towers. “So this isn't the speculator tower market; that's really not what we want,” Bass says.
It'll also be hard for buyers to cancel their contracts. Within 15 days of signing a contract to buy an Altaira condo, buyers must make a 20% deposit, or $300,000. They owe another 10% ($180,000 on average) when the tower's roof is completed.
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