PROFILE Exclusive: Exploring W Fort Lauderdale & The Fast Growth of Fort Lauderdale Beach with ISG Principal Craig Studnicky

PROFILEmiami had the exclusive opportunity to sit down with Craig Studnicky, Principal and Co-Founder of ISG Realty and leads sales at The Residences at W Fort Lauderdale. Take a look inside Related Group and Related Companies $60 million renovation of the iconic property and find out how the Fort Lauderdale Beach real estate market is on the move.

PM: Fort Lauderdale and Fort Lauderdale Beach have seen an influx of high-end condo and hotel developments in recent years. What sets The Residences at W Fort Lauderdale apart?

CS: The W Fort Lauderdale was completed in 2009. It was designed and developed as part hotel and part condo, essentially a condo hotel. A lot of the developments on the ocean in Fort Lauderdale, like Auberge and Paramount, are being developed for the end-user. Auberge and Paramount have typical rental restrictions for end-user condominiums. The Residences at W Fort Lauderdale, by contrast, has the ability to be rented short-term. The original developer designed the W as two towers, with the hotel in the east tower, and the condo residences in the west tower. 

What really sets The Residences at W Fort Lauderdale apart is the flexible use of the units. You can buy a unit as a second home and never rent it, buy it as your permanent residence and live there year-round, or you can buy it as a combination second home and rental property. Most of the people who buy at the W use their condo as a combination of a second home and rental property. When owners are not in town, they sign a management contract with Starwood and Starwood manages the unit as a “hotel residence” which generates income for the owner.

W Fort Lauderdale was acquired by Related in 2014. Related has developed more than 80,000 condos over the past thirty years, and are clearly the largest condo developer in the U.S. After taking ownership, Related decided to do a $60 million renovation to the entire property. The W, Starwood and Related agreed to use New York-based design firm Meyer Davis to head up the redesign. Meyer Davis has also been hired by Related for Auberge Beach Residences & Spa, the Paraiso Bay Beach Club in Edgewater, Park Grove in Coconut Grove and 1 Hotel & Homes in South Beach.  

PM: Do you see a need for more hotel branded residences in Fort Lauderdale?

CS: Absolutely. We are welcoming the Four Seasons, just two blocks north of the W, which promised to break ground this fall. The Four Seasons is the most recent addition to the high-end branded residences in the area, including W Fort Lauderdale and Ritz-Carlton.

PM: So, you guys were selling strong when a lot of other projects were slowing down?

CS: We are selling strong because Fort Lauderdale Beach is selling strong. The pricing gap between oceanfront properties in Miami Beach vs. oceanfront properties in Fort Lauderdale Beach has never been greater, and developers and buyers from around the world have noticed. Historically, the price difference from Miami Beach to Fort Lauderdale Beach has been about 25 to 30 percent, with Miami always getting the premium. Today, Miami Beach is about 200 percent more expensive than Fort Lauderdale Beach.  

In the last three years, $1.5 billion in new development has taken place in Fort Lauderdale, 70 percent of which has already been sold. 

PM: Where do you see most of the buyers coming from? Are there a lot of New Englander’s and New Yorkers who want a second home and like the supplemental income and the ability to show up with their golf clubs?

CS: The United States is the number one market for The Residences at W Fort Lauderdale. The overwhelming majority of buyers are from the northeast, including New York, Boston, Philadelphia, Washington D.C., Chicago but also Canada, Toronto and Montreal. The next market after that is Brazil. Brazilians have discovered Fort Lauderdale and the price difference between Miami Beach and Fort Lauderdale is very appealing to them. They love the beach, and the beach in front of the W is the nicest beach in Fort Lauderdale. Even though the dollar is high, they love the idea of buying into a condo hotel because they get their rental income in U.S. dollars, which is valuable for Brazilians. 

PM: So how did you start to connect with Chinese buyers?

CS: I have owned my company for 25 years and we have done lots of work for developers, but I can honestly say, this is the first time I have ever sold to Chinese buyers. About 18 months ago, I started a division called ISG Asia and currently have 20 Mandarin-speaking agents working with me. A majority of China has not been exposed to South Florida and needs a lot of education on what Florida is and the different markets it includes. They are starting to discover South Florida and interest is rising because Florida is a bargain compared to pricing in Los Angeles, New York and San Francisco. The Chinese are only investing so far, mostly looking for income-producing properties. Of all of the properties I show them, The Residences at W Fort Lauderdale is one that they like the most because of its brand. 

When President Xi visited President Donald Trump at Mar-A-Lago in Palm Beach in April, travel websites from China were completely sold out of availability for Florida. The visit was really big for Florida real estate in terms of introducing Florida to the biggest country in the world. By the end of 2017, we are supposed to have a non-stop flight from Tokyo, and by the end of 2018, we are supposed to have non-stop flights from Beijing and Singapore, which will be a real game changer for South Florida real estate. 

PM: Can they move money freely out of China? How easy is it for them to invest their capital in the United States? 

CS: Currently there is a $50,000 restriction per individual on foreign investments annually, which is a challenge. There are ways of getting around it, but it is very challenging. The Chinese government is watching them very closely at the moment. 

PM: What else does Related Group and Related Companies have in store for Fort Lauderdale Beach?

CS: I think you will see Related develop more high-end condos like Auberge Beach Residences & Spa. The value difference between Miami Beach and Fort Lauderdale Beach makes this Fort Lauderdale’s time.

About Craig Studnicky:

Craig Studnicky is a principal of International Sales Group, ISG, and has been a real estate broker for more than 25 years. Studnicky began his career in New York City as a sales associate in residential real estate for JPS Associates. In 1984, he founded Steven Craig Realty in Atlantic City  where his firm became Atlantic City’s leader in real estate, cornering two thirds of the market. In 1992, Studnicky relocated to Florida to work as Director of Sales for Country Club Estates in Aventura from 1992 to 1994. In partnership with Philip J. Spiegelman, he co-founded International Sales Group. Under Studnickys’ leadership, ISG maintains the areas top-producing sales force who have posted record real estate sales. Studnicky is a licensed real estate broker in states of New Jersey and Florida. He holds a degree from Virginia Tech.

Take our tour of Related Group & Related Companies' $60 million renovation of W Fort Lauderdale HERE

Douglas Elliman Honors Top Agents at The Florida Ellie's, Their Annual Awards Show

On April 21, 2017 Douglas Elliman hosted their signature annual awards show at the St. Regis Bal Harbour to recognize the top produces in South Florida. Hosted by Florida CEO Jay Parker and Florida COO Gus Rubio, Douglas Elliman celebrated $2.6 billion in total sales volume in 2016 in Florida, up 8% from 2015. Douglas Elliman oversaw 4,424 sales and lease transactions across the South Florida markets in 2016 as well as the opening of new office locations in Jupiter, Delray Beach and Bay Harbor as well as an expansion of their Brickell location. “We have experienced extraordinary growth and expansion in the past year, and we look forward to the exciting opportunities that lie ahead,” said Jay Parker, CEO of Douglass Elliman Florida. Check out the gallery from the event below and read our PROFILE Exclusive interview with Jay Parker here.  

Douglas Elliman Releases Q1 2017 Market Reports, Shows Continued Strong Growth Across South Florida

Douglas Elliman has released their Q1 2017 South Florida Market Reports for Miami Mainland, Miami Beach, Boca Raton, Fort Lauderdale, Palm Beach, Wellington, Delray, and Jupiter/Palm Beach Gardens. The data was compiled in partnership with Miller Samuel, who is a leading independent appraisal firm. Reports reflect price and sales trends along with current market conditions and emerging market trends. The data through Q1 2017 reflects the continued strong growth of South Florida real estate as it continues to be a destination from flight capital from both northern states and International buyers.

MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price slipped 5.8% to $385,000
- Average sales price jumped 10.4% to $999,241
- Number of sales rose 0.6% to 815
- Days on market was 143, up from 97
- Listing discount was 12.1%, up from 8.8%
- Listing inventory increased 6.4% to 6,166

LUXURY CONDO
- Median sales price increased 14.2% to $3,025,000
- Days on market was 207, up from 119
- Listing discount was 13.1%, up from 10.1%
- Listing inventory increased 11.8% to 1,188 units
- Entry threshold began at $1,600,000

LUXURY SINGLE FAMILY
- Median sales price surged 56.5% to $11,425,000
- Days on market was 261, down from 352
- Listing discount was 20.4%, up from 12.8%
- Listing inventory fell 14.5% to 165 units
- Entry threshold began at $6,250,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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MIAMI COASTAL MAINLAND HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 12.5% to $292,500
- Average sales price rose 0.3% to $405,266
- Number of sales fell 2.7% to 3,487
- Days on market was 81 up from 76
- Listing discount was 5.6%, unchanged
- Listing inventory fell 19.9% to 10,186 units

LUXURY CONDO
- Median sales price fell 27.5% to $785,000
- Days on market was 154 days, up from 110
- Listing discount was 7.8%, down from 8.4%
- Listing inventory slipped 8% to 2,535
- Entry threshold began at $520,000

LUXURY SINGLE FAMILY
- Median sales price declined 12.8% to $1,200,000
- Days on market was 138 days up from 113
- Listing discount was 7.7%, up from 7%
- Listing inventory declined 15.9% to 924 units
- Entry threshold began at $825,000

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FORT LAUDERDALE HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price increased 5.1% to $1,112,500
- Days on market was 48, up from 45
- Listing discount was 6.8%, down from 4.3%
- Listing inventory increased 6.2% to 344
- Entry threshold began at $785,000

LUXURY SINGLE FAMILY
- Median sales price increased 13.3% to $1,950,000
- Days on market was 189, up from 150
- Listing discount was 11.2%, down from 13.6%
- Listing inventory increased 3.8% to 359 units
- Entry threshold began at $1,200,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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BOCA RATON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price slipped 3.7% to $780,000
- Days on market was 73 days, up from 101 days
- Listing discount was 7.3%, down from 7.5%
- Listing inventory increased 27.6% to 305
- Entry threshold began at $485,000

LUXURY SINGLE FAMILY
- Median sales price jumped 18.4% to $2,365,000
- Days on market was 162 days, down from 165
- Listing discount was 9.5%, up from 15%
- Listing inventory jumped 39.2% to 565
- Entry threshold began at $1,272,500

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DELRAY BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 12% to $1,399,000
- Days on market was 100, down from 136
- Listing discount was 7%, down from 13.5%
- Entry threshold began at $1,125,000

LUXURY CONDO
- Median sales price jumped 19.6% to $580,000
- Days on market was 103, up from 78
- Listing discount was 5.1%, down from 5.7%
- Entry threshold began at $400,000

Grand Opening of the Douglas Elliman Delray Beach Office

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WELLINGTON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 33.3% to $1,000,000
- Days on market was 146, down from 160
- Listing discount was 15.5%, up from 12.2%
- Listing inventory increased 13.4% to 271
- Entry threshold began at $625,000

LUXURY CONDO
- Median sales price declined 28.1% to $345,000
- Days on market was 132, up from 99
- Listing discount was 5.5%, down from 6.1%
- Listing inventory declined 22% to 46
- Entry threshold began at $330,000

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PALM BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price dropped 29.1% to $7,475,000
- Days on market was 239, up from 74
- Listing discount was 13.2%, up from 14.4%
- Listing inventory surged 38.7% to 86
- Entry threshold began at $5,400,000

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.

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JUPITER / PALM BEACH GARDENS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price declined 5.9% to $447,000
- Days on market was 73, up from 74
- Listing discount was 5.1%, up from 6.1%
- Listing inventory increased 4.2% to 499

JUPITER CONDO
- Median sales price increased 17.7% to $282,500
- Days on market was 210, up from 201
- Listing discount was 5%, down from 5.7%
- Listing inventory increased 81.7% to 318

PALM BEACH GARDENS SINGLE FAMILY
- Median sales price increased 16% to $479,000
- Days on market was 91, up from 79
- Listing discount was 6.6%, up from 6.4%

PALM BEACH GARDENS CONDO
- Median sales price increased 4.3% to $220,000
- Days on market was 59, down from 60
- Listing discount was 5%, down from 5.3%

About Douglas Elliman:

Douglas Elliman was established in 1911 and has grown to become the largest regional and the nation's fourth largest real estate company. Douglas Elliman has a current network of more than 6,000 agents in over 80 offices throughout Manhattan, Brooklyn, Queens, Long Island (including the Hamptons and North Fork), Westchester and Putnam Counties, as well as South Florida, California, Connecticut, Colorado and New Jersey. In addition, through a strategic partnership with Knight Frank Residential, Douglas Elliman's powerful network extends to 488 offices in 59 countries. Read our PROFILE Exclusive Interview with Douglas Elliman CEO, Florida Brokerage Jay Parker. 

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.