Text size: A- | A+
Q&A with BrickellHouse Developer Harvey Hernandez


Q&A with BrickellHouse Developer Harvey Hernandez


By Alex Britell

At the beginning of the month, Newgard Development launched sales at BrickellHouse, a 374-unit condominium tower that is, along with Related's MyBrickell, part of a fledgling wave of new development in Miami. Newgard has developed several projects across Miami, including the Gallery Art condo in downtown Miami and the Villa Calabria and Gables View condo projects in Coral Gables. The Real Deal talked to Newgard President Harvey Hernandez about the new project, which will be located at 1300 Brickell Bay Drive, its financing and the ever-expanding influence of Latin American buyers.

TRD: What motivated the BrickellHouse project?

HH: We've been very fortunate [in the city of Miami] to have moved all this [residential] inventory as quickly as we have, which almost created a new need for inventory to come online. We wanted to create a project that could be presented as forward thinking and [more] desirable than the buyers have now. Buyers are requiring a lot more sophistication, better buildings, and better amenities, and that's what we've created in BrickellHouse.

TRD: Last month, Related CEO Jorge Perez told us that Latin Americans essentially "saved" Miami's market. What do you think about that and how much of a role did Latin Americans play in your decision to launch now?

HH: Latin Americans have come over here and found tremendous value, and they compared us to other economies, including their own, and could not believe it. We are selling so far below what other markets are selling, including in South America, that for them, [these prices] are a gift. They also have a love affair with our city. I think they have been responsible for all this shortage of inventory that we have seen.

TRD: How did you finance BrickellHouse?

HH: We're basically self-financed for now. That doesn't mean we will change later. But our business plan doesn't require any financing. But remember, we are in a market that is changing on an almost weekly basis.

TRD: It seems Latin American buyers have also impacted the market by paying installments for residential units over the course of the building's construction. Is that happening at your project?

HH: We're a lot more conservative than ever before. Basically, in order for a buyer to buy in our building, they will have to come in with 70 percent of the purchase price in different installments. What makes it interesting is that the buyer will basically pay as we progress in construction, so it's very safe [for us] -- and it allows the buyer to plan their cash flow.

TRD: Do you see that becoming more popular among developers in Miami?

HH: It's a strategy that's more common in Latin America, and also in Europe and Canada. It's going to be more prevalent for sure. Until you are able to build like we were building [developers'] banks will start requesting a lot more cash from the buyers.

TRD: When do you hope to break ground?

HH: Our biggest challenge right now is getting off the ground. We want to be building in the next six months.

TRD: BrickellHouse was one of the first projects to launch after the downturn. Is that a challenge or an advantage?

HH: Given the conditions, the response we've seen up until now has been positive. As you know, Related also launched another project after ours [MyBrickell] and that's bringing a lot of credibility to the market as well. We don't want to be the only ones; we think it helps the situation when you have a couple of projects and a couple of developers in the market.

"PRIVACY POLICY": Newgard Development Group respects the privacy of visitors to its website and does not generally seek to identify its visitors or to collect information regardingtheir use of this website. Although Newgard Development Group may track thenumber of visits to each of the pages of its website, no Personal Information is collected in the process. The type of information that is automatically collected by Newgard Development Group can include date and time of access of the website, the Internet protocol address of the computer that you are using, the domain and host from which you access the Internet, your browser software and operating system, and the specific activities you are engaged in while visiting the website. This aggregate tracking information is used to help Newgard Development Group improve and enhance the website experience for all of itsvisitors. Newgard Development Group will collect some limited Personal Information that you voluntarily provide such as your name, address, telephone number and/or email address, if you communicate with us via email in response to any prompts on this website. Additionally, any information collected about you from this website may be associated with other information that NewgardDevelopment Group has collected from other sources about you. Under California law, California residents who have provided personally identifiable information to a company may have the right to request a list of all third parties to whom that company had disclosed such information for the third parties' direct marketing purposes during the preceding calendar year, along with a list of the categories of Personal Information that had been so disclosed. However, Newgard Development Group policy, as disclosed on this website, does not currently permit Newgard Development Group to share the Personal Information collected at this website about you with non-affiliated third parties for such third parties' direct marketing purposes. Moreover, even if Newgard Development Group policy permitted the disclosure of Personal Information to third parties for such third parties' direct marketing purposes, because Newgard Development Group provides you with an opportunity to opt out of such disclosure, Newgard Development Group does not have to provide you with such lists. If you are a California resident who would like information on how to exercise your rights concerning third party disclosures, you may send an email to or contact us via postal mail at: NEWGARD DEVELOPMENT GROUP MAKES NO WARRANTY OR REPRESENTATION REGARDING OF CONFIDENTIALITY OF ANY COMMUNICATION OR INFORMATION TRANSMITTED ON THIS SITE OR ANY WEB SITE LINKED TO THIS SITE. YOU AGREE THAT NEITHER NEWGARD DEVELOPMENT GROUP, NOR ANY OTHER PROVIDERS OF PRODUCTS OR SERVICES RELATED TO THIS SITE, ARE RESPONSIBLE FOR THE CONFIDENTIALITY OF ANY INFORMATION, (INCLUDING WITHOUT LIMITATION, PERSONALLY IDENTIFIABLE INFORMATION, EMAIL ADDRESS, PHONE NUMBER, ETC.), AND NEITHER NEWGARD DEVELOPMENT GROUP, NOR ANY OTHER PROVIDERS OF PRODUCTS OR SERVICES RELATED TO THIS SITE, ARE RESPONSIBLE FOR ANY DAMAGES THAT MAY ARISE FROM DISCLOSURE OF SUCH INFORMATION.

Links to Other Websites From time to time, the Newgard Development Group website may contain links to other websites that are not controlled and/or maintained by Newgard Development Group. Please be aware that these other websites may have different privacy policies which may subject you to different privacy practices. Please review the privacy policies of such other websites for information concerning what information is collected on such websites and how it is used.

Changes in Policy This Privacy Policy applies to current and former visitors to the Newgard Development Group website. From time to time, Newgard Development Group's Privacy Policy may change. Newgard Development Group will post changes to the Privacy Policy on this website. Please review this Privacy Policy often so that you will remain abreast of Newgard Development Group's current policies, including its policies concerning the gathering and use of information that may be collected on our website. You are responsible for making sure you are aware of the provisions of Newgard Development Group's most current policy (see date below).

Terms and Conditions of Use Disclaimer None of the information or materials contained on or accessible through this website, including any information or materials accessible in any password protected areas, should be construed as providing any type of investment or other advice to you, nor should you consider it as a solicitation, recommendation, endorsement or offer to you to purchase or sell any investment vehicle, financial security or other financial instrument.

Use of Materials All material on this website, including but not limited to images, logos, trademarks, appearance, graphics and any documentation (collectively referred to as the"Material"), is protected under various intellectual property laws and (except where otherwise stated) owned or controlled by Newgard Development Group, or used with permission of the owner(s) of such Material. Except as otherwise indicated on this website, copying, reproduction, uploading, downloading, transmitting or any other use of this website or of any of theMaterial, in whole or part, without the express permission of Newgard Development Group, is prohibited. You may, however, copy, reproduce, download, transmit and/or print individual pages contained on this website for the purpose of accessing this website under these Terms and Conditions and/or your personal, non-commercial use, provided you agree not to conceal, remove or alter any trademark, copyright or other notice contained on: (i) this website; (ii) any of the Material; or (iii) any such individual pages so copied, reproduced, downloaded, transmitted or printed. Any unauthorized use of this website and/or the Materials may subject the user to criminal prosecution and/or civil liability under applicable law. Limitation of Liability and Use of Disclaimer Newgard Development Group is not responsible for any damages or loss related to the use of this website. THIS WEBSITE, ALL MATERIAL CONTAINED ONTHIS WEBSITE, AND ALL LINKS OR OTHER ITEMS RELATED THERETO ARE TRANSMITTED AND DISTRIBUTED "AS IS" AND WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THAT THE WEBSITE, ITS FEATURES AND FUNCTIONS WILL BE AVAILABLE FOR USE OR FUNCTION AS DESCRIBED. THERE ARE NO WARRANTIES REGARDING MERCHANTABILITY, ACCURACY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, SECURITY, OR MERCHANTABILITY WITH RESPECT TO THEWEBSITE OR THE MATERIALS CONTAINED HEREON. ANY INFORMATION CONTAINED WITHINTHIS WEBSITE IS SUBJECT TO AMENDMENT, REVISION OR UPDATING. NEWGARD DEVELOPMENT GROUP RESERVES THE RIGHT TO SUSPEND OR WITHDRAW ACCESS TO THE PAGES OF THISWEBSITE WITHOUT NOTICE AT ANY TIME AND ACCEPTS NO RESPONSIBILITY FOR THESE PAGES NOT BEING AVAILABLE AT ALL TIMES. NEWGARD DEVELOPMENT GROUP SHALL NOT BE LIABLE FOR ANY ALLEGED DAMAGE OR INJURY, INCLUDING BUT NOT LIMITED TO ANY COMPENSATORY, CONSEQUENTIAL, DIRECT, INDIRECT AND/OR SPECIAL DAMAGES, THAT RESULT FROM YOUR USE OR INABILITY TO USE OR ACCESS THIS WEBSITE OR ANY MATERIALS CONTAINED HEREON OR FROM ANY COMPUTER VIRUS, MALFUNCTION OR OTHERFAILURE.