Bad Developer/Bad reputation - say no to these guys.
I'm a first time home buyer as well as a current student at a school near by. I put a deposit down on a unit a few months ago in Dec 2019, and due to this Corona Virus pandemic, I desperately needed liquidity as you can imagine with the prospective job market. I asked for a deposit refund and they pretty much kicked me while I was down: they referenced a small clause in this ginormous purchase contract and charged me liquidated damages, keeping the majority of my deposit! They didn't bat an eye when it came to situation of unemployment due to this pandemic. The condo is expected to be construction complete in October 2020 (or so they say) and banks aren't as willing to give out mortgages now, people are losing their work hours or job opportunities (including me), and the developer offered me NO BREAKS, NO CONCESSIONS. They didn't offer a lower purchase price, give me at least a partial break on the liquidated damages amount, or even credit for my lost deposit if I wanted to repurchase later date (when I'm hopefully employed and banks will to lend again).
Everyone is suffering during this pandemic and a small break would have been nice from SCG America. This pandemic is an Act of God (Force Majeure), and something I could not foresee or control. I probably need to seek help in this matter but I guess this is what they mean by "sleazy developer"... pennies compared to their funding and the total cost of the project. I wonder how cheap the finishes, appliances, and amenity spaces are going to be, and how fast they will break down. Once SCG separates you, from your money, they could care less about you... even during a statewide lockdown and unprecedented unemployment. Keep in mind the sales people will be longgggg gone after you take over your condo.
This is SCG America's first project in a new market, and their reputation is something they obviously don't care about - I felt compelled to share my experience with everyone. I'd be careful with what they tell you compared to what is actually going to be delivered once construction completes. The sales people are just doing their job, but make sure read the fine print and understand the tricks the developer can pull on you as a prospective owner - because they will.
For example, the developer has the option to convert unsold units into apartments - a clause buried somewhere their ginormous contract. It's very likely they will elect to convert the remaining units into apartments, if they don't sell out, which is highly likely now with this pandemic and recession. That is a HUGE negative for a prospective condo owner as you will see a lot of wear and tear from apartment residents compared those who actually own the condo. Perla is less than 50% sold right now and I highly doubt sales will pick up when construction completes in October (once again.... "or so they say").
Also, good luck on leasing out the empty retail space at the bottom of the building - I bet it will stay empty for years as retail sector will take a huge hit from the pandemic. A lot of retailers have abandoned plans to expand their footprint for all of 2020 and 2021. This huge empty space takes away amenities for the residents and doesn't help with property values.
To further solidify my point, future condo owners are highly likely to experience problems with this new building, as SCG America hardly has solo ground up condo construction experience in the United States - I bet it's going to be an absolute nightmare once it's up and running. My guess, they will probably increase HOA dues and charge special assessments to the owners shortly after completion, especially if they aren't able to sell enough units. After initial construction is complete, repairs can and probably will go on for years: plumbing leaks, HVAC issues, roofing issues, waterproofing issues, defects with parts of pool area, resulting in the pool area being closed down for months (maybe even years). Don't be the first of owner of this..
I end by saying: don't believe a word that SCG says. The sales guys doing their job but the developer is one I'd be most concerned about. Just look them up on their crummy website (www.scgamerica.com). They have limited real estate ground up experience. You're a hamster in their wheel, and they can care less about you at the end of the day..
Please note that the above statements are my opinions and are based off my research analysis and of what happened to me as a customer. read more