Author Archives: Claudia Moreno

Related Group reveals One Island Park in Miami Beach

Related Group has the approval for construction of the luxury condo tower One Island Park on Miami Beach’s Terminal Island moving along nicely. To gain the city’s support, the company is proposing to also build a new 50,000-square-foot city fleet maintenance and sanitation facility at no cost to taxpayers.

Recently, the City of Miami Beach Commission collectively voted to indicate the proposal to the City’s Land Use and Development Committee.

“We are pleased with the ‘Commission’s vote to move One Island Park forward in the review process and look forward to delivering a new, upgraded City maintenance facility at no cost to taxpayers,” said Jon Paul Perez, Vice President, Related Group. “Our plan will bring a boutique residential building that will reduce the impact on traffic for surrounding areas, compared to the ‘land’s current industrial and office zoning, which only allows for developments that significantly increase traffic.”

Related also informed that the new building would generate more than $2.9 million in annual tax revenue to the city compared to only $10,500 right now. The developer additionally informed that the proposed zoning change as lower intensity and could result in less traffic than what is currently supported.

One Island Park is proposed to include 90 residential units; Arquitectonica is the architect.

Fastest growing tech scene boosts real estate in Miami

A new report released by the Financial Times puts Miami as the place to be if you are looking for technology jobs, which also serves as a booster to the real estate market of the city. The numbers are impressive; the tech industry was the fastest growing business in Miami-Dade between 2012 and 2017.

In total, there were 11,440 job opportunities, up 40 percent during the five years term, according to the county economic development organization. Another statistic, this time coming from the Brookings Institution, shows that the tech scene in Miami is growing faster than in San Diego, Boston, and Las Vegas.

Remarkably, a few tech entrepreneurs that can work remotely from anywhere are picking Miami to live due to a better lifestyle and lower taxes. Median household Floridians are paying 8.4 percent in state and local taxes, lower 5.3 percent than New York. For example, a $1 million home in Manhattan costs $19,250 in property taxes, as opposed to $12,800 in Miami-Dade.

Also, most tech companies are gathered between Wynwood and Coconut Grove, including the areas of Brickell and Edgewater.

Back on top: Miami attracts Brazilian real estate investors

After two years of recession, the financial market is showing gradual signs of recovery in Brazil. The confident forecast corresponds to the interest of Brazilian foreign investors in South Florida real estate; the numbers are so positive that the Miami Association of Realtors declared the country was among the top foreign countries buying homes in the city in 2018.

However, South Florida has attracted Brazilian investors for some time, not only as an alternative to their country’s real estate market, to invest and establish a source of income in dollars, but also as second homes to high-end buyers. All due to the protection of exchange currency and better market conditions, as well as perfect weather and paradisiac beaches.

“With the development of the economy in Brazil, we will have a growing resurgence of Brazilians in Miami, mainly because the city has already gained a space in their hearts,” added Matias Alem, CEO of BRG International. “They love the weather, the beaches, the lifestyle in general, they feel at home,” he concluded.

And what are they looking for in the city? “They’re looking for good deals,” said Fabiana Pimento, a realtor of Fortune International Realty.

In 2018, Brazilian president Jair Bolsonaro won his presidential campaign with the commitment to pass a significant pension reform that would decrease a growing debt that began with gross overspending and threw the country into a slump in 2015. His reform is looking to change the systems by cutting the spending over ten years by about 1 trillion reais (Brazilian currency), or 250 billion dollars.

This outlook has made a few people move forward with investing in Miami, according to Pimento.

The Department of Federal Revenue in Brazil, which Brazilians report when they are fleeing the country for good, declared that there was a 165% increase of what is classified as “definitive exits” in 2017.

Miami Freedom Park: Beckham Group Reveals New Renderings

A new Miami Freedom Park website, attributed to David Beckham and his partners, is live; in which we can see new renderings of the park and more details of the concession proposal submitted to the city of Miami.

“We look forward to working with the City of Miami to finalize the voter-approved, fair-market-value lease agreement that provides residents with an expansive public park, 11,000 construction jobs, 2,300 permanent jobs and more than $40 million in tax revenue, while using zero City taxpayer dollars,” said Jorge Mas, managing owner of Inter Miami CF.

The terms of the lease includes:

  • A 99-year lease with annual rent payments in the amount of at least $3.5 million (based on a fair market evaluation made by a third party)
  • Creation of a 58-acre public park and 11 soccer courts
  • Payment of the total cost of property remediation to allow public use of the park
  • A construction of the Inter Miami CF stadium, the entertainment and retail space, the office and hotel technology center, at no cost to city taxpayers
  • Employee Lifetime Salary
  • A commitment to complete the creation of the public park at the same time or before finishing the construction of the stadium

Miami Freedom Park has also added a Community Benefits Agreement, including $5 million for the Citywalk Riverwalk/Baywalk project, $20 million for park maintenance, and youth free access to the soccer fields. The owners of Inter Miami CF and Miami Freedom Park have also concluded a relocation agreement with the First Tee program.

During the last few months, representatives from the Miami Freedom Park held meetings and went door to door seeking support from the local community.

Inter Miami is co-operating with U.S. Soccer Foundation to bring free soccer programs, including clinics, mini-pitch facilities, and more events for the youth to become involved with the club. They also built a U.S. Soccer Development Academy that will begin to play in September for the 2019-20 season, a series only for South Florida players.

First Interior Renderings from Okan Tower is released; Construction is Planned This Year

The Okan Tower project, an all-glass tower inspired by the Turkish national tulip flower, has launched the first interior rendering of the luxurious 70-story project.

Until now, only external renderings were released.

With construction starting this year, according to representatives of the developer, they are moving ahead with turning reservations to contracts.

The project is 20% sold.

Sawgrass Mills announces multimillion-dollar renovation, the mall’s largest to date

Sawgrass Mills, a massive alligator-shaped outlet mall in Sunrise, the country biggest outlet mall and amongst the largest malls and tourist destinations in America, will have its common area remodeled by late 2020, just in time for the mall’s 30th anniversary.

“Sawgrass Mills has evolved into a renowned global shopping destination,” stated David Gott, Sawgrass Mills General Manager. “The center has gone through six expansions and brought a long list of retail, dining and entertainment firsts to the market in its 30 years. We are excited to embark on the property’s largest renovation to date in our mission to deliver an unparalleled shopping experience.”

The current flooring will be substituted with porcelain tile accentuated by marble and stone, also included in the project is an open skylight design, LED light fixtures, new seating, and tables. Also, the food courts will be rebranded as food halls, with the addition of new dining options.

There is a new entrance being planned with decorative metal panels, colorized glass, permanent canopies, simultaneously with new landscaping and updated lighting and signage. Besides, a hotel is also coming to the site. The AC Hotel by Marriott – Sawgrass Mills with 174 rooms have opening scheduled for fall of 2020.

More Wealthy Moving to Florida Than Any Other State

The wealthy population of the United States was seeing ditching their high-tax states for Florida in the last few months, but a new study released by Bloomberg shows that the migration period started even before the tax changes had made the state more favorable to live.

Bloomberg examined data from the Census Bureau and IRS during the years of 2016 and 2017. The results confirmed the state had gained the biggest amount of income due to migration in comparison to other states, surprisingly more than the seven times runner up Texas.

The state of Florida earned $17.2 billion in net taxpayer Adjusted Gross Income for the year, while Texas in the second place gained only $2.4 billion. New York, as you can see in the graph below, had the most significant difficulty.

Miami: what is left to sell?

ISG Miami has recently released a new report analyzing Miami’s current condo cycle and predicting what is yet to come. The study shows us developers have 2,101 new development apartments left to sell from this cycle, of those, 587 units were delivered, 1,331 are under construction right now, and 183 are in the pre-construction phase.

Our current cycle began in 2012, and it is essential to note that the pipeline of new units excludes projects that have been filed in the last seven years and also does not include units available in the MLS.

“We’re calling this the supply shock,” said Craig Studnicky, CEO of ISG World, which authored the report.

From Coconut Grove to Fort Lauderdale and east of I-95, out of almost 20,000 units in this cycle’s pipeline, 89% were presold, an average of 1,340 units sold per year during the last three years.

Groundbreakings climaxed in 2014 at 23, and have been dropping on an annual basis, with only 11 in 2017 and just four last year. Even though developers are quiet about when they plan to release new projects, experts are predicting 2020, 2021, or 2022 will be the beginning of a new cycle.

Now let’s take a look at what is available according to the report.

Ugo Colombo’s luxury tower Brickell Flatiron, current under construction, is 90 percent sold. The 64-story project located at 1001 South Miami Avenue, with 527-unit, began sells in April 2014 and has newly reduced its deposit conditions after it received a Fannie Mae conditional support.

Una Residences, with 135-units, started sales approximately a year ago and is 45 percent presold. The building, planned for 175 Southeast 25th Road in Brickell, intends to break ground between this year or 2020. Vlad Doronin from OKO Group, a Russian billionaire, and investment firm Cain International are developing the project.

Low sales have be seen in downtown Miami with projects that haven’t broken ground yet, or that started sales at the end of the cycle. Aston Martin Residences, for example, is 48 percent presold out of 390 units; Okan Tower is 56 percent sold out of 149 units. YotelPad Miami, which broke ground at the beginning of the year, is 74 percent sold.

In Miami Beach, Bay Harbor Islands, Surfside, Bal Harbor, Sunny Isles Beach, Hallandale Beach, and Hollywood, or the Beaches market as defined in the study, projects such as 57 Ocean (18 percent sold) and 2000 Ocean (15 percent sold) announced lower sales than their competitors. Shahab Karmely of KAR Properties revealed 2000 Ocean in the summer of 2018 while 57 Ocean, of Multiplan Real Estate Management, led by Brazilian billionaire Jose Isaac Péres, began sales in December.

Rendering of the Una Residences.

555 River House is Coming to Miami

The distinguished architect Carlos Zapata is designing a new project called 555 River House in Miami, and it promises to change some of the Miami River area. With 175 hotel rooms and only 39 residential units, apartments will be sold at an average price of $1 million to $1.5 million ($1,150 per square feet).

Sixty Hotels will run the hotel rooms and brand the residential units. Residents will share amenities with hotel guests. Another architect for the project is the office of O’Donnell Dannwolf and Partners.

The project will also include:

Three separate buildings
600-foot public riverwalk
120,000 square feet of office
35,650 square feet of retail
Ten boat slips
416 parking spaces

The design includes green walls and a transparent parking construction to allow for natural light and breezes. Stell and concrete will be used to create a reflective glass structure.

The Miami River Commission will review the plans on June 3; the subcommittee approved the plans earlier this month. Groundbreaking is proposed for January 2020 and residential units won’t be sold before then.

Miami Beach convention center hotel is redesigned; review is coming next

A new design for the Miami Beach Convention Center hotel has been modified and resubmitted for review. The new renderings show significant engineering modifications, including a design with less glass.

The project will be built in place of the current surface parking lot next to the Convention Center. A one-story office building and the one-story and two-story sections of the back of the Fillmore Miami Beach, in the Jackie Gleason Theater building, will also be demolished.

The plans kept the same number of hotel rooms: 800, plus 320 parking spaces. The tower itself remains the same, with 17 floors, but instead of 190 feet, now is 185 feet.

Arquitectonica is the architect of the project; construction is expected to begin early next year with work on the site underway this year. The Miami Beach Design Review Board is scheduled to review the plans on June 4th.