Miami Developers & Agents Look to China to Spur Sales

Top Chinese real estate agents tour Miami's hottest new developments. Photo via MiamiHerald.com

As the Miami real estate market looks for a more diversified group of buyers, agents and developers are focusing on China as a new revenue stream where investment has historically been weak. Factors effecting this are Miami's new emergence on the world stage as a world class city to invest in, but also due to proximity and the fact that there are no direct flights between Miami and China. The Miami Herald reported in August that 20 of the top Chinese real estate brokers came to Miami to tour some of the top new projects. They are attracted by the affordability of the properties and value compared to other U.S. markets.

Only 2% of the home sales to international buyers in South Florida last year were to Chinese buyers. Despite this, during that same period Chinese investors spent $27.3 billion across other U.S. markets. Chinese investment has played a major roll in the continuously changing landscapes of New York and San Francisco real estate. China City Construction Co., a Chinese government owned developer, has purchased over $110 million of land in Brickell and Miami Beach. Additionally, Cathay Pacific Airways Ltd. is looking into a larger plane for long-haul flights between Hong Kong and Miami. Officials at Miami International Airport said that the flight could become a reality in the next 2 years.      

Coconut Grove 5 Bedroom in The Moorings Listed for $4,999,999

Coconut Grove is alive again these days. This classic Coconut Grove pad is located within The Moorings, a prestigious private gated waterfront community in Coconut Grove with a bay front park and marina. 3835 N Moorings Court is a 5 bedroom 4 bathroom classic with 3 half baths over 6,313 SF of living area. It features an outdoor entertainment area with summer kitchen and pool, separate guest cottage, library, 3 fire places, sitting rooms and smart house technology. It is currently listed for $4,999,999 with Al Arostegui of One Sotheby's International Realty. Photos by One Sotheby's International Realty.

The Historic Dade-Commonwealth Building to Become Hotel

Spain's OD Hotels will open their first Miami location with 169 rooms in the historic Dade-Commonwealth Building in Downtown Miami. The building is located at 139 N.E. 1st Street and was originally built in 1925. Under supervision of Architect Richard Heisenbottle, the building will have 10 floors added to the existing 7-story structure during the hotel conversion. This restoration will actually return the structure to its original size before it was damage by a hurricane in 1926. Dream Downtown Miami, LLC., a joint venture between a sister fund of the Paris-based Beekman REIM and Immocorp Capital, will lead the redevelopment effort. The parties originally purchased the property for $9.2 million in November 2015 and they planned to leave the property as-is for 2 years as they begin to develop the project. The hotel will be in close proximity to Downtown's Flager Street redesign efforts, Paramount World Center Miami and Brickell City Centre. 

Miami is Currently The #1 Buyer's Market in the United States

The Miami real estate market is in a bit of a crossroads as it try to figure out which way to head. New inventory is hitting the market and unstable foreign governments have spun foreign interest in investment in Miami all over the place. One thing is for sure though, all the uncertainty has led to the potential for deals. Miami is currently a true buyer's market, and in fact is the strongest buyer's market in the United States. According to OpenHouse, 8 of the top 10 buyer's markets were in Florida. They are reporting that real estate demand in Miami is down as there are 4,332 active listings on the MLS but only 205 closed deals in the last 30 days. They are reporting that 61% of homes took over 3 months to sell while over 80% closed for below the asking price. 

Photo via OpenHouse

Top 10 U.S. Buyer's Markets

1. Miami, FL
2. Miami Beach, FL
3. Weston, FL
4. Sarasota, FL
5. Detroit, MI
6. Kendall, FL
7. Hollywood, FL
8. Pompano Beach, FL
9. Taunton, MA
10. Plantation, FL

Photo via OpenHouse

Photo via OpenHouse

Midtown Miami Construction Update September 2016

Hyde Midtown

The construction in Midtown in cruising along with both Related Group's Hyde Midtown and Magellan Development's Midtown 5 making major progress towards completion. Midtown 5 leads the two, and has topped off and has glass paneling on the sides already. The 24 story, mixed-use building will feature 400 residential rental units. It will ultimately have over 52,000 SF of indoor and outdoor amenities. They market the project as a "live, work, play community."

The 31 story, 372 ft tall Hyde Midtown is beginning to get the initial makings of an outer-shell. Designed by Arquitectonica, the residence will feature about 337 condo units and 60 hotel units. The hotel portion of the project will be managed by SBE, who continue to extend their exposure in Miami to Midtown. There will also be 21,745 SF of retail space and 526 parking spaces. Pricing was around $550 SF. Groundbreaking was in late 2015 and completion is expected near the end of 2017. 

Hyde Midtown Construction Update September 1, 2016

Midtown 5

Midtown 5 Construction Update September 1, 2016

Midtown 5 Construction Update September 1, 2016

SLS Brickell Hotel to Open October 3

SLS Brickell is coming! Related Group and SBE have set an opening date of October 3rd for the hotel as we edge closer to seeing the completion of this most recent development cycle. SLS Brickell is a 124-room hotel with pricing starting at $249 per night and can reach over $1,950 for the 1,756 SF, 2 bedroom Louie Suite. The 52-story building was designed by Arquitectonica and also features 450 residential condo units. It also features an LED façade by lighting artist Ana Isabel Martinez, artwork throughout the property by Fernando Botero and Matias Duville, and a colorful, iconic exterior art mural. SLS Brickell includes José Andrés' Bazaar Mar, his new seafood restaurant concept, as well as Michael Schwartz's Fi’lia, Italian concept. José Andrés will also be head of all food and beverage operations throughout the property including the pool bar, mezzanine and in-room dining. Related Group began planning the project in 2012 and broke ground in early 2014. 

Coral Gables Classic Designed by George Merrick Listed for $999K

It really doesn't get any more classic than this Coral Gables historic designed by Coral Gables founder George Merrick himself. Located at 6704 S Le Jeune Road in the Dutch South African Village part of Coral Gables, the home is 2,008 SF with 3 bedrooms and 2 bathrooms. It was in fact designed after a traditional South African 17th century farmhouse and features classic styling including oak wood floors and a wood-beam vaulted ceiling. The home is currently listed for $999,000. Photos by Avatar. 

Brazilian Real Estate Investors Have Begun to Set Their Eyes On Miami Once Again

Scott F. Pryce, founder and CEO of TRX Investments; Luiz Augusto Faria do Amaral, co-founder and CEO of TRX Group; and Fernando Fiuza de Souza, managing director of TRX Investments and founder and managing partner of TRX Residential. Photo via MiamiHerald.com

The Real Deal is reporting that spurred by dropping rents back home, Brazilian real estate investors are beginning once again to focus their sights on Miami. Rents in Miami have stayed mostly stable despite the influx of new inventory that has begun to hit the market. In Brazil rents have dropped 5.2%. The investors are looking for an escape from the political and economic instability in Brazil. Brazil had fallen out of the top five countries with interest in Miami real estate in June after 17 consecutive months at the top, but has climbed back to third in July according to the Miami Association of Realtors. Bloomberg is reporting that TRX Residential, a Miammi-base real estate investment firm, wants Brazilian investors to commit close to $30 million dollars, helping them to double the funds size. Brazilians single handedly saved the Miami real estate market in 2012 when they came to purchase second homes and take advantage of a stronger currency compared to the dollar. Since then many economic and political factors have shifted the Brazilians demand for American real estate, where they focus on Miami due to proximity, stability and potential for growth. 

La Gorce Historic Hits Market for $5.4 Million

6711 Windsor Lane is a true old-world classic with modern living features. The ivy covered historic home on La Gorce Island has just hit the market for $5.4 million. The home was originally built in 1937 and today sits at 5,984 SF on the .37 acre lot. It features 7 bedrooms, 6 full bathrooms and 1 half-bath with a large master suite, meticulous decoration including woven wall-coverings, hardwood, stone and marble floors throughout, brick governor's driveway, wood shutters, a foyer winding master staircase, and a rare covered coral keystone entertainment patio and pool lining. Listing and photos by Compass.

Miami Luxury Condo Sales Over $1 Million Reportedly Down 44.5%

Bentley Bay Penthouse

Residential condo sales are reportedly down close to 21% over the same time last year in 2015, according to Mansion Global. When focusing on properties over $1 million, there were just 73 single-family home sales in July, down 31.8% from the same time in 2015. Luxury Condos saw a total of just 45 transactions in July, those numbers were down 44.4% year over year. Condos also saw average days on market up 1.9% to 162 days before sale. There are also only 1,272 pending sales, down 25.4% year over year and inventory is up 47.8% with 2,482 luxury condo units over $1 million on the market. The slowdown can be attributed to unstable governments and currencies in South America and a strong dollar, which has put a slowdown on foreign investment. It also can be tied to the slowdown that has also hit the rest of the United States over the same time period. Despite the slowdown, investors have seen this as an opportunity to take advantage of some of the deals that have come about due to the market shift.