Navigating Complex Projects: The Murano at Portofino and Murano Grande Approach

By Glenn Tyndall, CPA | September 13, 2023

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In a recent development within Florida’s real estate sector, luxury condo associations are taking significant steps towards tackling long-awaited projects. The prominent Murano at Portofino, a 37-story tower with 189 units at 1000 South Pointe Drive, and the renowned Murano Grande, a 40-story building featuring 270 units at 400 Alton Road, are spearheading initiatives that have been in discussion for several years, as affirmed by the associations’ owners.

Sequential Funding for Comprehensive Enhancement: Murano at Portofino’s Strategy

An intriguing example is Murano at Portofino, which is currently in the process of raising funds from its unit owners for a two-phase project. Andres Asion, a notable unit owner and broker, recently shared on social media the initial payment he made—amounting to $52,525. The preliminary phase, projecting a cost of almost $30 million, encompasses a spectrum of vital repair works. This ranges from resolving stucco challenges, balconies, waterproofing, and water intrusion to addressing other prevalent issues typically encountered by ocean-adjacent structures.

Furthermore, the project integrates non-essential enhancements, including replacing luggage carts and the remodeling of the beach club. Notably, this initial phase excludes the task of pool and pool deck refurbishments, which are slated for the second phase. A significant concern among unit owners arises from the absence of an official estimate for the subsequent phase, magnifying the importance of financial preparedness and accurate planning.

Assessment Dynamics and Financial Responsibility

An essential aspect of this endeavor is the calculation of individual shares for the special assessment. With an aggregate sum of approximately $30 million, the average per-owner contribution hovers around $160,000. However, the precise allocation varies, contingent upon the square footage of respective units and the total number owned by each individual. A distinguishing aspect is the building’s decision not to offer financing options. Consequently, it rests upon unit owners to orchestrate the procurement of funds, necessitating resourcefulness and financial prudence.

Drawing upon his expertise, Jose “Joe” Rodriguez, a distinguished real estate attorney and partner at Rennert Vogel Mandler & Rodriguez, emphasizes the role of condo boards in engaging consultants to

prioritize and strategize essential works. This responsibility takes on added complexity, as boards often combine aesthetic improvements to coordinate all essential tasks cohesively.

Proactive Measures for Sustainable Solutions

In the ever-evolving landscape of construction costs, the importance of timely action gains prominence. Alex Martin, Vice President at KW Property Management & Consulting, underscores that deferring projects can amplify expenses due to the continuous escalation of construction and material costs. The financial implications are stark, with a cost of $5 million five years ago potentially doubling to $9 or even $10 million at present. The impact is expected to be most pronounced among older buildings, particularly those housing residents with fixed incomes.

Fostering Unity and Collaboration for Effective Governance

As communities navigate essential special assessments, unity and collaboration among unit owners play a pivotal role. An illustrative example occurred during a town hall meeting for Murano Grande residents. During this session, a representative from KWPMC unveiled a proposal for a $7.4 million special assessment. The allocation of costs over nine quarterly payments, with an average unit contribution of about $27,400, reflects a comprehensive approach to resource distribution.

However, the significance of transparent communication and collective decision-making cannot be overstated. Divergent opinions on moving forward with essential improvements and repairs necessitate a holistic perspective to address various concerns. In the wake of the Surfside collapse, which cast a poignant light on safety and preparedness, the community’s response to pivotal decisions takes on enhanced significance.

By examining the proactive measures undertaken by Murano at Portofino and Murano Grande, this article underscores the intricate landscape of navigating complex projects within condo associations. The process of securing funding, prioritizing tasks, and fostering community collaboration stands as a testament to the efforts dedicated to maintaining these architectural landmarks for generations to come.

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