Did everyone read last week’s Business Monday cover story about Miami being a leading luxury capital of the world? It was a WOW moment for Miami where we were defined as “a cosmopolitan playground for the world’s wealthy,” “the American Riviera,” and “a magnet for capital and people from all over the world.” To put it in perspective Miami is:
- No. 7 of 10 top markets globally according to Wealth Report real estate
- No. 9 of 10 in luxury real estate markets according to Christie’s International Real Estate (Cote d’ Azur, London and Miami are the world’s most popular second homes)
- No. 9 globally and No. 2 in the United States in sales of Krug Champagne
- No. 1 globally in sales of Vilebrequin swimwear
- No. 2 in the United State in sales of Audemars Piguet watches
- Way the heck up there in world-wide sales of Breguet watches, Ferragamo shoes & accessories, Burgess Yachts, and Maserati cars
So those are some light-shedding statistics on this great city that I have called home all of my life and sold real estate in for 20+ years (specializing in Coral Gables, Coconut Grove, South Miami, Pinecrest, & Palmetto Bay). The most amazing characteristic of Miami is how resilient we are, and how quickly we recovered from the ‘dark days’ which were darkest in 2007 & 2008. By 2009-2010 we were well on our way to recovery, and 2014 was a record year for real estate sales in both luxury ($1mil+) and non-luxury real estate markets.
You can track the inventory and sales of luxury and non-luxury real estate in Miami for the last 12 years on the two graphs below (click on graph for enlargement):
I have clients coming to Miami this month who want to buy a condo in Coconut Grove but can’t afford nor wait for Park Grove to be completed. I adore Park Grove but we have to remember there is life beyond that site! Architectural styles change and building popularities ebb and flow, but panoramas of sunrise, sunset, Sailboat Bay, and downtown Miami remain constant. Where does one go when they want to be a condo-wheeling Grovite before 2016-17?
There are five properties for sale between $1.6 mil and $8.750 ranging from 1,750 sf to about 6,900 sf. Ugo Colombo completed this majestic 32-story tower in 2006 and it still reigns in my eyes as the king of South Bayshore Drive.
Ritz Carlton Tower Residences & Executive Residences
The ‘Ritz’ is the benchmark for luxury and elegance and between the two Ritz Towers there are four units for sale between $970,000 and $2.350 mil, ranging in size from 1,560 sf to 4000 sf.
It was the bomb when it debuted in 1975 and this Ken Treister classic is still one of my favorites. They just finished the 40 year re-certification at Yacht Harbour and with it came new balconies and a completely fresh face at poolside. There are 4 great units available right now and 2 of them, in the coveted “A” line, have direct views of Sailboat Bay for $799,000 and $675,000.
The views from Grove Isle are endless, and so is the resort lifestyle: hotel, spa, tennis courts, marina, and restaurant – it’s all grand on this private island. Between the 3 buildings there are 10 two and three bedroom units for sale right now between $675,000 and $1.45 mil.
Mutiny Hotel & Condo and Mutiny Park Sonesta Condominium
The Mutiny Hotel located at 2951 S. Bayshore Drive, and Mutiny Park Sonesta Condominium located at 2889 McFarlane Road have a diverse range of inventory beginning at $219,000 and reaching as high as $1.5mil. Both properties appeal to the Coconut Grove investor and periodic visitor who values the hotel/condo platform allowing short and long term visitors.
There are other fabulous buildings in the Grove to consider but there isn’t much for sale in them at the moment. Always on my radar are the Residences at Vizcaya, Grove Hill Tower, Beacon Harbour, Grove Towers, and Mayfair Lofts. Without a doubt, the selection of condominiums in Coconut Grove is as diverse and eclectic as the people who live there.
List Price: 1,375,000.00
4 Bedrooms | 3 Baths
My first closing in 2015 was one of my favorite homes listed in 2014! The house was a classic 1990 built with a mix of Florida Vernacular and Modernism, and spanned a beautiful 14,700 SF lot.
There was no one living at the property and no furniture inside when we listed it, so first on the agenda was transforming this already great house into a “home”. With the help of Jenny McCloskey Staging 515 San Antonio was furnished and accessorized into a magazine quality work of art! We had 3 offers come in and so many other interested parties. I congratulate both the lucky Buyers and Sellers and thank Jenny for a fabulous staging presentation!
Zillow released its rent report this week noting an increase in the South Florida rental market in 2014. 775,000 South Floridian renting-households spent $10.5 billion in rent last year. There was a 7.7% increase in the rental market from the year prior! Read more at The Real Deal.
I personally had 17 rental transactions ranging from $1,900 per month to $8,700 per month in Coral Gables, South Miami, Coconut Grove, Pinecrest and Palmetto Bay in 2014; that was almost double the number of transactions I had in 2013! If the first week of 2015 is any indication of this year’s rental market, South Florida will continue the momentum; it is January 6th and I have 3 rentals transactions slated in Coral Gables and the Brickell corridor.
If you or someone you know would like to rent or list a property for rent in Coral Gables, South Miami, Coconut Grove, Pinecrest, Palmetto Bay or the surrounding areas please call me!
Here’s a look at some of my 2014 rental transactions:
The Real Deal has published “What top Miami developers are predicting for 2015.” In a nutshell the fresh and out-of-the-box thinkers at Grass River Properties are entrenched in the Miami facts that have always driven our economies: Miami appeals to major onshore institutional investors, private equity, and international investors. We attract Latin Americans looking for flight capital and safe haven. We are a magnet for Europeans looking for lower tax bases and better climate, and Northeasterners who have always fled south for warm weather are drawn to our no state tax status. Tom Roth, principal at Grass River Properties, says all of this combined with the residential options and vibrant lifestyle that has evolved in the last 15 years will drive the residential, retail, and office markets in Miami.
Jacob Roffman, principal at 13th Floor Investments and developer of 1010 Brickell, sees young professionals and international investors shaping the residential market in 2015. The young professionals moving in the direction of urban sensibility have driven development investors to these core urban areas. Roffman sees foreign demand for ‘for-sale’ products moderate as it becomes increasingly difficult to move capital out of foreign countries.
According to Don Peebles, we are going to see continued strength in the luxury condos and the development of luxury condos for rental housing as the gap in the cost of rent and the cost of ownership narrows.
Nitin Motwani, developer of Paramount Miami Worldcenter in downtown Miami, believes in those developments with active sales and marketing infrastructures, strong sponsors, and a unique experience or location will be in high demand (that defines most of the developments I have interest in!).
Ron Krongold (Gold Krown Financial) sees the Miami market leveling out as our inventory increases to seven, eight, and nine months of supply (six months is considered the healthy ‘ideal’). At EWM Realty International we have seen the first signs of inventory increasing but demand in all markets is still extremely strong, and well-priced properties are moving quickly.
Hans Huseby, proprietor of FootWorks, father of the Mercedes Benz Corporate Run, a fixture in South Miami for the past 40 years, and THE most wonderful man passed away this past Saturday. So wonderful and loved was he that Sunset Drive from Red Road to SW 59th Avenue was closed last night just to have the space needed to celebrate his life. In the true spirit of Hans Huseby it was styled as another ‘event’.
I bought my first pair of running shoes from Hans in the 1980s, my first “Life is Good” shirt from him in the 1990s, and my children got their first Crocs from him in early 2000. I not only sell real estate in South Miami but am part of the wonderful family of South Miami residents, and FootWorks and the Huseby family are part of the landscape. Their famed “South Miami Twilight Run,” which is the right of passage into summer, brings everyone in my neighborhood outside; whether you run, walk, or just water everyone down who comes by.
Hans’ son, JP, summed him up best: “He was perfect in every way, more loving and compassionate and hard-working than anyone I’ve ever known.” His wife, Laurie, added that “He was ridiculously nice to everyone and made life better for so many people.” I think those are the true definitions of SUCCESS.
Although controversial, Barack Obama’s recent executive actions to overhaul the immigration system will further feed real estate development in Miami. The EB-5 visa can lead to citizenship if a foreigner invests a minimum $500,000 in US-approved real estate projects and creates jobs locally. Some developers are using the EB-5 to help fund residential and commercial projects.
Miami is a prime focus of foreign investment from Latin Americans and important to Europeans too. The US has already reached its 10,000 EB-5 visas cap this past year, with many visas going to Chinese investors, so think about the Venezuelans, Brazilians, and other South Americans that have missed out! Local demand for EB-5 visas is so great that the City of Miami has created an EB-5 Regional Center for Foreign Investment!
By expanding the Miami program we could be expanding Miami!
How Does the Recent Waterfront Sale on North Bay Road Compare to Coral Gables and Coconut Grove Waterfront Property? Hmm…
A magnificent “builder’s acre” (37,895sf) on tony North Bay Road just closed for $15,250,000 (asking price $15,900,000, listed in February, 2014). What the Buyer will do with the existing 6 bedroom/5 bath home, circa 1929, remains to be seen but all are guessing that it is coming down. A Coral Gables-based family purchased the property which makes one ask what could they have purchased on the water in Coral Gables or Coconut Grove for a similar amount?
If you are out shopping for “waterfront” property in Coral Gables or Coconut Grove between $15,000,000 and $20,000,000 there are only six options; four in the Gables (two in Gables Estates, one in Cocoplum, one in Journey’s End), and two in the Grove (one in Entrada Estates and of course the uber cool nest LeGone James just left)
Only Lebron’s house at 3590 Crystal View Court, and 3575 Stewart Avenue in Entrada Estates have the sweeping Bay views that compare to the North Bay Road property, but it would certainly be desirable to live in Gables Estates, Cocoplum, or Journey’s End! Here is a snippet of what’s out there!
The Real Deal, which is a daily read or feed for active realtors, released the “Thankful in Miami Edition” today which highlights some interesting South Florida stats. This information isn’t going to make or break your day but they are fun facts:
- How many hurricanes have hit South Florida since 2005? 0 / Nada
- What is Miami’s average temperature? 75.9 degrees (Have you seen what is happening across the country this week? Six feet of snow in Buffalo in one day – yikes!)
- What percent increase did South Florida have in median sales prices in the 3rd quarter? 8.7%
What percentage of Miami real estate transactions have been conducted by international buyers this year? 29% This is down from 2013 when then the number was 35% . I am having a hard time believing the number of international buyers is down because I have never had so many international clients. Just this week alone, one property that I have listed in Coral Gables at 515 San Antonio has been looked at by buyers from Italy, Uruguay, Argentina, Venezuela, and Spain.
- How many people are predicted to pass through MiamiCentral (All Aboard Florida’s downtown Miami station) each year? 12 million!!!! The dollar impact of that is unknown to me but my first thought when I heard about All Aboard Florida was, ‘Where was that when I was trekking to Walt Disney World and Halloween Horror Nights those 30 or so times?”
Give Miami Day began 3 years ago and has been ‘giving’ ever since; with 115 new charities coming on board this year alone. Give Miami Day is a 24-hour period where donations can be made online to over 500 charities, beginning today, November 20th at 12:01AM. Last year, Give Miami Day raised over $3.2 million in donations for 407 local nonprofit charities!
Some of my favorite charities participate in this event: Breakthrough Miami, Casa Valentina, Big Brothers Big Sisters of Greater Miami, Habitat for Humanity of Greater Miami, South Florida SPCA Society for the Prevention of Cruelty to Animals, and Paws4You Rescue. Visit givemiamiday.org and check out all the charities that are listed, then donate! Donations between $25.00 to $10,000.00 will qualify for a bonus to the receiving charity, depending on how much is raised in the bonus pool. This is a great, easy way to support our community; hurry time is running out!