Dive Brief:
- The city of Daytona Beach, Florida, has halted construction on a 31-story condo project from Palm Coast, Florida-based Protogroup because of a lack of progress, according to The Daytona Beach News-Journal.
- Last year, Daytona Beach deemed the construction permit expired because little work had been done on the project over the last two years. On Sept. 1, the city slapped the stalled project with a condemnation and demolition order.
- The city gave Protogroup until April to show the project was progressing. After city chief building official Glen Urquhart said he’s only seen debris pickup and cosmetic work, he denied the company’s request for a 180-day extension and pulled the construction permit.
Dive Insight:
The Protogroup condo tower is part of a $192 million oceanfront project that also includes a hotel and has been in progress for over a decade. The Daytona Grande hotel opened in June 2021 after getting deadlines extended several times, according to The Daytona Beach News-Journal.
Protogroup began construction on the condo project in 2018 and was slated to wrap up in 2020, but the construction that Protogroup had completed at the site showed more signs of problems than progress. In last fall’s condemnation order, the city of Daytona Beach said that portions of the project were dangerous and “likely to partially or completely collapse or to become detached or dislodged,” according to The Daytona Beach News-Journal.
At the time, the city ordered Protogroup to secure or repair the rusting concrete or demolish it and clear the site. After securing the foundation, the developer received a reprieve before the most recent shutdown. To restart construction on the project, Protogroup will need a structural engineer to show how the concrete columns with exposed rusting rebar sticking out of concrete can be fixed to support a 31-story condo.
When — or if — construction will restart on the project is an open question. The Daytona Beach News-Journal reports that the developer needs to complete more sales before it can secure the $90 million to $100 million loan to reboot the project.
But the slowing sales environment — a product of the Federal Reserve’s interest rate hikes — presents a hurdle for the developer.
In an analysis of MLS data, local realtor Wyse Home Team Realty found that 117 condo units were sold around the Daytona Beach area in March with a median sales price of $330,000. Although that’s a 6.4% increase compared to February, it’s a 41% decline from March 2022.
Protogroup is also facing more competition in the market. In March, the number of available units was up 72.4% year over year, with 857 condo units made active at some point during the month, according to Wyse Home Team Realty.
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