Luxury Real Estate Tycoon’s $1.6B Gamble Flops as no one Buys $15M Miami Condos on Deadly Surfside Collapse Site
By SARA MCGIFF, US REAL ESTATE & CONSUMER REPORTER
A lavish Miami beachfront condo development with residences starting at $15 million has yet to sell a single unit, as the site remains haunted by the Surfside collapse that claimed 98 lives.
Dubai-based Damac Properties was the only developer willing to take on the infamous oceanfront parcel, unveiling plans to transform the now dubbed The Delmore into what it calls ’37 mansions in the
sky.’
But luxury broker Victoria Shtainer, CEO and founder of The Victoria Shtainer Team at Compass, believes the project’s biggest obstacle is one no amount of lavish amenities can overcome.
‘How many people want to live on top of a graveyard? Not many,’ she told the Daily Mail.
She argued the site’s painful history, combined with lofty pricing and the developer’s marketing strategy, has made selling the homes an uphill battle.
‘Coupled with the least expensive apartment starting at $20 million, gigantic floorplans and a Dubai firm marketing equals failure.’
The company enlisted acclaimed London architecture firm Zaha Hadid Architects to design the ultra-luxury tower, complete with a suspended glass-bottom rooftop pool, a 20,000 sq ft meditation garden and
sprawling residences priced from $15 million.
But even the promise of ultra-luxury living has failed to lift the shadow cast by the Champlain Towers South collapse, the deadliest structural failure in modern US history.
A Dubai developer’s Miami beachfront condo project with residences starting at $15 million has yet to sell a single unit, as the site remains haunted by the Surfside condo collapse that claimed 98 lives
Wednesday marks the fifth anniversary of the disaster, when the 12-story beachfront condominium pancaked in the middle of the night, killing 98 people as families slept
Luxury broker Victoria Shtainer, CEO and founder of The Victoria Shtainer Team at Compass, said the project faces an obstacle no amount of luxury amenities can overcome, asking: ‘How many people want
to live on top of a graveyard?’
Wednesday marks the fifth anniversary of the disaster, when the 12-story beachfront condominium pancaked in the middle of the night, killing 98 people as families slept.
In the aftermath, Florida developers were reluctant to take on the emotionally charged site after a state court ordered it sold to help fund a roughly $1 billion settlement for victims’ families. Many in the
industry viewed rebuilding there as simply too sensitive.
Damac was the lone developer willing to take the gamble, paying $120 million for the roughly 1.8-acre oceanfront parcel with plans for a $1.6 billion ultra-luxury tower.
But the bet has yet to pay off. Despite launching sales about 18 months ago, the developer has reportedly failed to sell a single residence.
The slowdown became so severe that people familiar with the matter told the Wall Street Journal the company explored selling the property. A Damac spokesperson told the outlet the site is not currently on
the market, adding that the firm is instead seeking a local development partner to oversee day-to-day operations.
The project has also been dogged by controversy. According to victims’ families and a former Surfside official, Damac’s interactions with relatives of those killed strained relations from the outset.
Marianne Meischeid, who served as a Surfside commissioner at the time, said the developer’s approach only deepened tensions.
‘They just had this haughty attitude, ‘We’re here, we’re going to get what we want, we’re going to do what we want, and no one’s going to stop us’,’ she told the WSJ.
The company enlisted acclaimed London-based Zaha Hadid Architects to design the ultra-luxury tower, which features a suspended glass-bottom rooftop pool and a 20,000 sq ft meditation garden
In the aftermath, Florida developers were reluctant to take on the emotionally charged site after it was ordered sold to fund a roughly $1 billion settlement for victims’ families, with Damac the only
developer willing to step in
The project has also been dogged by controversy, with victims’ families and a former Surfside official saying Damac’s interactions with relatives of those killed strained relations from the outset
Meischeid said she arranged a meeting between Damac executive Jeff Rossely and victims’ families in hopes of discussing ways to honor those who died. Before the meeting, Rossely had suggested the company could donate a bench and fountain for a nearby memorial, she said, but the idea was never raised with the families.
‘It was really unfortunate,’ Meischeid said. ‘It just put a deeper divide between the families and the developer.’
A Damac spokesperson said the company agreed to dedicate seven feet of its property for the public memorial, which will be built along a street bordering the site after families failed to reach an agreement with the developer on incorporating one into the project itself.
Construction was also temporarily halted in February after Damac was unable to secure the insurance required to continue building, an obstacle industry sources say could be eased by bringing on a local development partner.
Chairman Hussain Sajwani reportedly viewed the project as Damac’s gateway into the US luxury real estate market, attracted by one of South Florida’s most coveted stretches of beachfront where high-end condo towers continue to rise.
Yet while the broader Surfside market remains red-hot, The Delmore has struggled to gain traction.
According to data analyzed by Miami Association of Realtors economist Gay Cororaton, the top five percent of condo sales in Surfside topped $31 million in the first quarter of 2025, compared with $3.6 million across Miami-Dade County.
Nearby, developer Fort Partners enjoyed such strong demand for its Four Seasons Surf Club residences that it expanded with three additional luxury condominium buildings.
Chairman Hussain Sajwani reportedly viewed the project as Damac’s gateway into the US luxury real estate market, drawn to one of South Florida’s most coveted stretches of beachfront where high-end condo towers continue to rise
Hannah Jones, senior economic research analyst at Realtor.com, said the lack of sales likely reflects a combination of the site’s tragic history, the price point and the early stage of construction
Experts say the lack of sales appears to stem from a combination of the site’s tragic history, the extraordinary price tag and buyer hesitation over purchasing a home that remains years from completion.
‘The lack of sales likely reflects a combination of factors, including the site’s history, the price point and the early stage of construction, and it will be difficult to untangle their relative weight,’ Hannah Jones, senior economic research analyst at Realtor.com, told the Daily Mail.
‘The buyer pool at this price point is thin enough that even modest stigma could matter, but so could a dozen other things.’
Jones said preconstruction buyers are being asked to take an extraordinary leap of faith.
‘Preconstruction sales at this price point require an extraordinary leap of faith: wiring tens of millions of dollars to an unfamiliar developer for a unit in a building that doesn’t exist yet, on a contested site, with delivery years away.’
She said the strength of neighboring luxury projects suggests the issue is not Surfside itself.
‘That neighboring luxury projects continue to perform well confirms that ultra-wealthy demand exists in the area, suggesting the hesitation may be specific to this project, not the location broadly.’
Jones added that Damac also faced several hurdles unrelated to the site’s history.
Some brokers say Damac’s pricing is also limiting demand, with units priced at about $5,000 per sq ft – around 12 percent above comparable luxury properties in the area – and averaging roughly $35 million
‘Several non-site factors compound the challenge. Damac soft-launched before its sales gallery was finished, brings no US track record for buyers to underwrite, and entered a Florida condo market that was softening broadly.
‘Once the building is visibly rising, some of that hesitation should ease on its own.’
Some brokers also believe Damac’s pricing has further limited buyer interest. The company is asking roughly $5,000 per sq ft – about 12 percent above the roughly $4,466 per sq ft commanded by comparable luxury properties in the area – with residences averaging around $35 million.
Luxury broker Shtainer believes the project will ultimately need a different strategy to attract buyers.
‘The reality is, to market a building of this caliber you need a US-based company that understands the Florida buyer and can turn the building into a perfect home for the buyer,’ she said.
‘The builders need to regroup and rebrand to sell this.’
Despite the slow sales, Jones said Damac’s gamble could still ultimately prove profitable because it acquired the land at what was effectively a distressed price.
‘Being the sole bidder almost certainly means Damac paid a distressed-asset discount for the land,’ she said.
‘The developer took a bet, and was willing to absorb the stigma at a lower basis and wager it fades faster than the carrying costs accumulate.
‘With a potential sellout well above $1 billion against a $120 million land cost, the math can work even if units eventually close below ask.’
Original source: https://www.dailymail.com/yourmoney/article-15920177/dubai-developers-surfside-condos-collapse-miami-beach.html
