Miami real estate


Construction Continues in Southern Florida Counties

Miami Condominiums

 In May of 2011, developers started building high-rise constructions in southern Miami at a fast pace. It began about three years ago with the area’s first pre-construction launch party. The latest condominium building to be completed is number 50 on the list, and it will be located within the Miami-Dade, Broward and Palm Beach coastal region.


Jorge Perez of the development firm the Related Group is largely responsible for the boom that southern Florida is experiencing. He got an early start by holding a ceremonial groundbreaking for the SLS Hotel & Residences Brickell on January 22. This ambitious undertaking will contain 52 floors of 453 condominium homes and 132 hotel suites and will be situated in Greater Miami.


Originally, there were other plans for the land where the hotel will stand. It was going to house the Infinity at Brickell II during the last phase of the boom/bust housing market. The difference in the Miami real estate climate can also be seen by the fact that developers recently completed construction of a condominium tower that contains 7,100 homes.


Developers do not plan to slow their building down this year. They have 186 projects that are either currently being constructed or are in the planning stage. This means that the area between Key Biscayne and Jupiter will have a total of 25,150 new units constructed within their borders this year. An analysis of records from the Clerk of the Court shows that the current boom is much bigger than the previous housing boom that began in 2003 and ended in 2007. At that time, only 243 towers that contained 49,000 units were constructed within Miami-Dade, Broward and Palm Beach counties.


The Related Group plans to participate in the current boom with 29 new condominium towers that will house 7,500 new units. The firm has already gotten started and has 10 projects in construction now. During the previous housing bust, the Related Group was involved in 24 condominium projects that contained 9,100 units.


The Related Group is not the only development company that is taking part in the current housing boom. Miami condo towers are also being constructed by Martin C. Margulies, Melo Group, Key International, Fortune Development and Dezer Development. Along with these veteran developers, there are also new ones who have never constructed properties in southern Florida before. They are building impressive condominium towers such as Oceana Bal Harbour in Bal Harbour and Regalia tower in Sunny Isles Beach.    


People have mentioned that the fact that there are new developers may be cause for concern because they are unfamiliar with how southern Florida’s housing market works. During the previous boom, lenders financed projects with 70 percent of the money needed to complete the buildings. Now, buyers are largely responsible for funding these ventures. This means that buyers must offer a 50 percent deposit rather than the 20 percent they offered previously. Even so, buyers are not shying away from purchasing at this time, so it looks as if the housing boom will continue.   


The Real Estate Buying Frenzy Isn’t Slowing Down in Miami

More people seek condominium properties in the Miami Beach area than in any other in the country, and these properties are moving at an alarming rate as was reported in The Real Deal. Currently, purchase prices are appreciating slower as more properties are being sold. This makes these properties extremely attractive to buyers and will ensure that this market remains popular for a while.   


What It All Means


Because of the current trend described above, investors consider Miami Beach real estate to be a great buy for the money, and this is true although the market has seen an increase in purchase prices over the past four years.   However, this isn’t stopping people from buying. Now that prices are   climbing at a slower rate, more people can take the opportunity to seek properties in Miami Beach like foreign investors have been doing lately.


The article in The Real Deal stated that condominium sales increased by 21 percent from August of 2012 to August of 2013. People were even more interested in single-family homes. Proof of this is in the fact that sales of these properties increased by 38 percent between August 31, 2012 and August 31, 2013. These numbers greatly impressed experts and prove that people continue to desire to purchase Miami real estate.           


Where Are the Investors From?


The Miami Beach real estate market has always attracted those who are in search of extreme opulence. The difference today is that these people are now coming from other parts of the world.


Several buyers were French, but there were many Canadian purchasers as well. Real estate experts believe that wealthy French investors like the American real estate market because they aren’t required to pay as much in taxes as they do in France. The welcoming winter weather is a large part of the reason that Canadians are in favor of purchasing here.


Condominium homes at the Apogee sold for an average $2,371 per square foot, and this price set a record for the area.   


Miami Beach, Sunny Isles Beach and Bal Harbour all have opulent properties that realtors are having difficulties keeping on their rosters. This makes hiring a knowledgeable realtor crucial if you are interested in purchasing one of these incredible properties.


Currently, more people are seeking to purchase the best properties in the Miami area. Before you can make this location your family’s home, you will need to locate your dream house. Miami realtors work with people from all over the world, and this gives them the experience that they need to find the perfect place for you. You may be in the market for a condominium home, or you may wish to purchase a single-family home. A Miami Beach realtor can find the right one for you, and you will be very happy with the price. 


Now Is the Time to Buy Real Estate in Miami

One of the most popular locations to buy property is the Miami Beach area. An article in The Real Deal informs us that this is true because people are buying properties at a faster rate than in other locations. Generally, this causes purchase prices to rise, but the prices in Miami Beach are appreciating at a slower rate. Miami Beach real estate is still offering investors unbelievable value for their dollars, and they thought that this was the case during the past four years when purchase prices were increasing. Now that purchase prices are appreciating at a slower rate in this highly desirable area, more people are expected to show an interest in buying Miami real estate. To demonstrate that the Miami Beach real estate market is exploding, The Real Deal’s article stated that condominium sales went up by 21 percent from August of 2012 to August of 2013. A similar occurrence transpired in the single-family home market where the sales for these properties increased by 38 percent.


Luxury condo projects in Miami attracting construction loans again

Porsche Design Tower Sunny Isles Beach

Lenders are beginning to start parting with their money again. The developer Gil Dezer obtained $214 million for a construction project in Sunny Isles Beach in a sign that banks are taking chances again with large construction loans.


Dezer’s project is the Porsche Design Tower, and it is an extremely opulent building that contains a robotic glass elevator that lifts residents’ vehicles from the ground to their garages that are located right next to their homes. The veteran developer of Miami real estate has sales contracts that total $550 million. He is currently constructing the 60-floor luxury condominium tower that will contain 132 residences. Two-thirds of the units have been sold, and this placed Dezer in a position where he could easily qualify for the loan from Wells Fargo.


The housing market crashed several years ago, and lenders were left with major losses on their books. This caused them to be wary of construction lending. In the recent past, construction and related industries have been recovering, and lenders have taken notice. They are more willing to invest in Sunny Isles Beach real estate projects although they are not lending as much money as they did before the market crashed.


According to Dezer, the profile of someone who is likely to receive a loan is someone who has plans to build in the most popular locations and who has been able to succeed in real estate even while the market was slowing down. Dezer is obviously one of those people because he is responsible for six construction projects in the Sunny Isles Beach area.


Martin A. Schwartz of Bilzin Sumberg in Miami agrees with Dezer. “They are cherry-picking projects. The ones they’re picking are with a proven developer with a track record and substantial bucks behind them,” said Schwartz. “Lenders want more equity in the projects, and they want to know they have very substantial developers.”


Eddie and Jules Trump of the Trump Group have had similar success to Dezer’s in the Miami area. They obtained a $160 million construction loan to build the Mansions at Acqualina. This building is another ultra-luxurious condominium tower that is being constructed now in Sunny Isles Beach.


Another example comes from developer Craig Robins and partner L Real Estate who received a $251.5 million construction loan from HSBC and Credit Agricole to begin several projects in the Design District. Schwartz stated that these developers received another loan from a Blackstone fund in the amount of $50 million for the purpose of building other Sunny Isles Beach condos.


The trend in this location has been to follow how deals are made in Latin America where buyers offer 50 percent or more of the purchase price as a deposit before closing. This option made it possible for developers to obtain the low-cost financing that they needed to begin to build. This tactic was highly successful because there were so many foreign investors with a great deal of cash who wanted to step into southern Florida’s real estate market.      



Now You Can Own the Former Versace Mansion

South Beach Versace Mansion

The former Versace mansion is going to be auctioned on the 17th of this month in U.S. Bankruptcy Court. Real estate developer Glenn Straub owns the Palm Beach Polo & Country Club, and he is preparing to bid on the estate.           


This fantastic South Beach luxury real estate has 10 bedrooms and 11 bathrooms and is located at 1116 Ocean Drive in Miami Beach where the auction will be held. In order to participate, Straub filed a notice of appearance with the court on the 13th of this month on behalf of Pam Beach Polo.


To be able to be a participant in the auction, Straub needed to offer a $3 million deposit and demonstrate that he has the means to pay at least $40 million for this glorious example of Miami waterfront luxury homes. Straub’s attorney Luis Salazar stated that Straub was able to meet these conditions on Friday.


Salazar announced on Straub’s behalf that his client “has tremendous financial strength to bid.”


VM South Beach, LLC is the debt holder on this South Beach real estate, and the owners have already placed their own stalking-horse bid of $25 million on this very property. This means that the minimum bid will be $25 million. The property for sale includes the mansion as well as the furniture within.


Currently, Peter Loftin owns this particular Miami real estate through Casa Casuarina, LLC, but the company’s creditors were seeking to have a receiver appointed. To prevent this from happening, Loftin entered into Chapter 11 bankruptcy proceedings on July 1 of this year, and his creditors gave their consent to the sale of the house.


In December of 2011, German Bank WestLB sold the property’s mortgage to VM South Beach, LLC, and this company has an important reason to desire the property. The Nakash family of New York controls Jordache Enterprises, and it is affiliated with the former Versace estate. The Victor Hotel is located right next to the property, and the Nakash family has an interest in the hotel.


Reporters tried to obtain a statement from Straub, but he couldn’t be reached. However, a spokeswoman at the law firm representing him was available for comment. She stated that Straub was very familiar with bankruptcy proceedings. According to the spokeswoman, Straub has been able to acquire several new properties and enter into many projects through bankruptcy proceedings throughout the nation. Just one is the St. Lucie Tesoro Club that is currently worth $400 million.


Straub proposed the winning bid for the Miami Arena in 2004, and people were very surprised that he was able to do so. He succeeded in selling the property in 2012.


In 1997, the Italian designer Gianni Versace was shot while on the steps of his home. In 1992, the estate was a dilapidated apartment building when Versace purchased it. Coldwell Banker has been marketing the home for the Fisher Auction Company, and executives stated that Versace invested in excess of $33 million to improve the estate.      


The Possible Recovery in the Miami Beach Housing Market

South Beach condos


Miami real estate began to take a dive in 2007, but the area has become so popular again that it appears to be recovering too quickly. Housing prices peaked in 2006, and current prices are currently higher for condominium homes and single-family dwellings than they were at the peak. What this means is that more Miami Beach condos and single-family homes are being added to the available inventory, and this fact offers an advantage to those who wish to buy property.


Miami-Dade County and the marketing literature are illuminating some important trends. First, 600 new South Beach condos that were built before the housing crash remain unsold for a third subsequent quarter. Even so, developers are continuing to build new condominium homes, and 17 new towers are being built at this time at prices as high as $3,000 per square foot in some cases.


Rental Properties

Those who study real estate conditions also need to consider rental properties. Investors who wish to rent their properties to others take rental prices into consideration before they determine whether or not a property’s purchase price is advantageous. More people are leasing properties in Biscayne Bay because they can obtain much lower prices than in Miami Beach, so the total number of rental properties in Miami Beach remains high.


Typically, fewer transactions are completed in the summertime in Miami Beach, but the above-described conditions may cause a climate where purchase prices for Miami condominium units and single-family houses are going to decrease because of the increased amount of inventory. Illustrating this point is the fact that those currently in the process of purchasing condominium units in Miami Beach are paying less on average than people paid for homes in the same area from January to April of this year.


During the first four months of 2013, the average purchase price for Miami condominium homes was equal to $336 per square foot, and this was a 20 percent increase over past purchase prices. In contrast, the average price was only $281 per square foot during the first four months of 2012. However, this was an 11 percent increase over the same period in 2011 when the average price per square foot was $236.


If buyers are currently seeking a condominium unit in Miami Beach, they will pay around $490 per square foot. In 2006 at the peak of the housing boom, these same buyers would have paid a price that is 12 percent lower at $437 per square foot. This increase in price caused more homeowners to place their condominium units for sale in Miami Beach. 


Those looking for condominium units have approximately 1,400 properties to consider as of May 20 of this year, and only 225 of these properties are expected to sell each month. This means that these properties should last for about six months if purchase prices remain at their current levels.   


The same can be said of the single-family home real estate market. In this case, real estate agents have about nine months of inventory to sell to interested buyers. Also, more people are leasing homes, and these prices are increasing as well.


The Bright Side

The bright side of this trend is that there is about four months of rental inventory at current 2013 prices. What will remain unknown at the moment is whether or not sellers and landlords will keep their prices at these high levels at a time when inventory is increasing. Furthermore, landlords must concern themselves with the fact that people can seek properties in Downtown Miami, and sellers must be aware that people can purchase Sunny Isles Beach condos for lower prices.




What Future Buyers Need to Know about the South Florida Housing Market

Miami condos for Sale

The Miami real estate market continues to recover, and proof of this is what occurred in April. During that month, the average purchase price of Miami single-family homes was $225,000, and this was an increase of 23.7 percent over last April’s average purchase price. The average purchase price of Miami condos for sale increased to $175,000, and this is a 17.1 percent increase over the same time period.


In April, inventory for single-family homes decreased by 6.9 percent, but this did not prevent an increase in sales for these properties. At that time, 1,094 single-family homes were sold, and this was an increase of 15.2 percent in the Miami-Dade area.


Miami-Dade also saw an increase in the number of condominium homes sold. There was only a 1.1 percent increase in the number of listings for the area in April, but there was an 18.7 percent increase in sales over the previous year. In April, there was high demand for condominium homes and an increasing number of sales expected, so it was estimated that Miami-Dade had only 5.7 months worth of inventory remaining. Last year, the market had enough inventory to last 6.1 months during the month of April.


Real estate agents know that there is a lack of inventory, so they are astonished that people are purchasing properties at greater numbers as time goes by. The Chairman of Miami Realtors Natascha Tello stated that sales weren’t expected to surpass 2012 levels because of the limited number of supply and the past two years of record-setting sales, but the opposite is happening.


The housing market in Broward County is experiencing the same phenomenon. Greater Fort Lauderdale Realtors stated that the average purchase price for a single-family home increased by 22 percent over last April’s purchase price to $250,000. The Realtors’ Group declared that average prices for condominium homes and townhouses increased by 24 percent. In April 2013, people were paying the average price of $105,000 for these types of properties.


Charles Bonfiglio of Greater Fort Lauderdale Realtors offered an explanation for current market trends. Those who have been waiting to list their homes on the market believe that now is the time to do so because it’s very likely that they will receive their asking prices or something very close to them.


According to the Realtors’ Group, Broward homeowners only received 91.6 percent of their asking prices in 2012. This year in April, homeowners received 94.8 percent of their asking prices. Sellers of condominiums and townhouses saw similar numbers. Last year, they received 91.6 percent of their asking prices, but they received 94.4 percent of their asking prices this year in April.  


All over Florida, housing markets are recovering, and this was very evident in April when housing prices and sales increased by double digits. For example, the average purchase price of single-family homes was $165,000 in April, and this was a 14.2 percent increase over the year before.




The Positive and the Negative of the Miami Real Estate Market

St Regis residences condo Bal Harbour


So many people seek to purchase Miami real estate from every part of the world because this city has Miami condos for sale that suit the tastes and needs of all types. The city is unique in its ability to be all things to all people, including those who are looking for an exotic vacation destination. Located on the beach off the coast of southern Florida, the area also accommodates a vibrant international business community where people from all over the world take part in commerce, the financial sector and trade. One must not forget that Miami has a rich cultural history where the media, arts and entertainment meet.

Upon arriving in the city, it’s obvious that it offers an assorted array of different real estate options, but people still need to keep up with anything new that Miami real estate introduces next. Continue reading to learn more about how Miami’s real estate market fared during the first half of this year.

Two Very Different Sides of the Same Coin

This city’s real estate market resembles a coin. On one side people will find that a great deal of cash was infused into the market, and these purchases helped developers begin to create new construction projects. With all of this money changing hands, property values began to increase. The coin also has another side that is reminiscent of the foreclosure troubles that the housing market is having in the rest of the country; this city had a large number of homes fall victim to foreclosure this year.

The Positive Side

In June of this year, pending sales for single-family houses and Miami condos for sale were up by 22 percent over pending sales from the same month of last year. The good news continues because positive numbers were not just recorded for pending sales. Single-family houses and condominiums have increased in price for seven months in a row, and this means that the market appears to be growing at a steady rate.

Specifically, the median price for condominiums in the Miami area is $160,000, and this is a 34 percent increase over the price registered in 2011. Single-family homes also saw a price increase to $194,250, and this is five percent higher than the prices for similar homes in June of 2011. As median prices and actual prices are not the same, keep in mind that the actual prices may be very different from the numbers printed above.

As was mentioned above, the real estate market became flooded with money as many people made cash transactions; a full 65 percent of real estate transactions that closed in June of 2012 ended with cash payment. 46 percent of single-family homes and 77 percent of condominiums were closed as people paid cash for these purchases.

The Negative Side

It’s true that greater numbers of people are purchasing real estate in Miami, but it’s also true that foreclosures continue to be a problem. More foreclosures occur in this city than in any other part of Florida. Currently, there are 3,260 properties with foreclosure filings against them.

The situation is not the greatest, but June 2012 had fewer new foreclosure filings than in any other month.

To learn more about the real estate market in Miami, consult with a professional real estate agent.


Once Again New Yorkers Are Buying Miami Real Estate

Miami Real Estate

When the housing industry was experiencing a serious downturn everywhere in the country, Miami real estate was defying the trend. At the time that miami's real estate market began to turn around, people were coming form Russia, Europe, Canada and South America to take part in the opportunity that was being presented to them. The latest thing Miami is seeing is buyers from New York who are also opting to purchase Miami condos on the beach. The owner and founder of Oceanfront Realty, Walter Abolsky has always had many clients from New York, but they have been cautious in the recent past. Now that Miami homes are selling again, New Yorkers are regaining interest in purchasing in the Miami area because Miami homes are becoming scarce and the prices are rising as a result.

New Yorkers appeared to be timing miami's real estate market as they watched prices continue to fall. Around mid-2011, it looked as if Miami real estate hit its lowest point and savvy investors started buying. Those who decided not to do so at that time are paying for their mistake with a 15 to 20 percent increase in what they would have paid had they purchased last year. To keep from having to pay even more, New Yorkers have recently been relocating their homes and businesses to the Miami area so that they can enjoy the fact that Florida doesn’t have an income tax and has homestead protection; a bonus is that they are wallowing in some of the greatest weather in the country.

When real estate was booming in Miami, investors were making an incredible amount of money with their properties and more and more people wanted to become engaged in the industry. This fact caused an upward pressure on housing prices that rose much faster than they did in other areas in the country. This real estate was so popular because of the fact these condominium homes are in such innovative, new amenity-rich buildings in pre-construction right on the ocean. The other reason is that Miami is a favorite of those who do business internationally. Even more buildings are in the pre-construction phase, and the area is in the works to receive a new port that will be larger than the others in the area. The Miami area is becoming the main place for foreigners who are operating their businesses in the United States.

Walter Abolsky has stated that the best is yet to come for real estate in Miami. With the massive home price appreciation that has occurred, Bell believes that it will take much less time for the housing market to improve than the three to seven years she thought it would take. The fact remains that foreigners are the most important part of this market, but New Yorkers will continue to be an important element as well.


Miami Herald Land Recently Sold For $236 Million


Prominent Miami real estate is extremely popular and sought after more than any in the U.S. In light of recent events, Miami's real estate market takes a major hit on the positive side with the purchase of 13.9 acres of land on the waterfront by the third largest casino company in Asia. Namely, Genting Malaysia Berhad has acquired this large parcel of land owned by the Miami Herald Newspaper for $236 million. This major property spans from Biscayne Blvd. to Biscayne Bay and is considered the kind of deal that will reshape Miami's skyline and further enhance this thriving community.

Even though the Herald's operations have sustained in the Miami area, the publisher issued a public note stating that their current space could no longer maintain an environment of productivity. It was also mentioned that funds were required to address the current concerns of the Herald organization. Those concerns consisted of taxes, debt and funding for the employee pension plan. The Herald also promises that their daily operations will continue uninterrupted in lieu their lucrative South Florida real estate sale.

Among other Miami luxury residential developments, it has been estimated by the Genting Group that this project will be constructed at the cost of $2-5 billion. This fosters a significant boost to the already booming South Florida economy. Ultimately, this leads to job creation that numbers in the thousands.

The Genting Group has planned a luxury complex that includes a host of ultra-modern residential highrise living spaces, a hotel, retail shopping venues and a convention center where business meetings, concerts and other large gatherings can be accommodated. Miami's real estate market receives these grand plans with great expectations.

The success of the Hearald transaction can only strengthen the prospect of South Florida real estate. This deal has been received as a sign of future luxury developments to follow in this vibrant Miami community. The ongoing hunger for luxury constructions in South Florida will allow the continued attraction to international visitors and current renters in the local metropolis.

When it comes to Miami real estate, this landmark deal makes perfect sense. Though the deal is already closed, the expected construction will take place in 2 years. This gives the Miami Herald time to relocate their organization and settle their inner concerns, as they are eager to land a property in the same area.


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