Author Archives: nikky

Miami’s Soon-To-Be 15 Tallest Buildings

By: Ismael Rodriguez

Miami’s skyline paints a picture that is both aesthetically pleasing and dynamic, constantly growing in size and evolving before our eyes. For the past decade, Miami has become the second fastest growing skyline in the U.S., second only to New York City.

In the past, height restrictions in Miami had limited towers to go higher than 800 feet, but that all changed in 2015. The 764-foot Southeast Financial Center was the tallest skyscraper then, surpassed by the 789-foot Four Seasons in 2003, but height limitations have loosely been altered to allow developers to go beyond the 800-foot mark.

Many of the new development projects over the next five years have already proven to add some bulk to the iconic Miami skyline. A handful of skyscrapers, 984 feet or higher, are planned to break ground in areas like Brickell and downtown Miami.

Below is a list of the tallest buildings currently under or approved for construction in Miami:

Government approves stretch for high-speed train between South Florida and Orlando

The Brightline high-speed train linking South Florida to Orlando may begin to operate even earlier than planned. According to a statement from the company, the next phase of the rail passenger service has been approved by the federal government and is expected to begin construction in the first quarter of 2018.

Recently, the Federal Railroad Administration issued a statement including the route from Miami to Orlando in the next phase of construction of the company. “This is the most critical and final step in extending Brightline’s service to Orlando, and we look forward to moving forward,” Brightline CEO Dave Howard said.

The construction phase between the routes of Fort Lauderdale and West Palm Beach is still in testing and was expected to start operating in 2017, but with a week to the end of the year, both ticket prices and the start date of the operation are announced as “Soon” by the company.

The train ride from West Palm Beach to Fort Lauderdale will be made in 30 minutes and another 30 minutes to Miami. Now the trip from Miami to Orlando will take three hours, one hour less if you compare the trip by car or bus, officials estimate.

Paramount Miami is halfway to the top

Construction is moving along quickly at the Paramount Miami Worldcenter, with the project recently hitting its halfway mark. Miami’s future amenities king is currently 70 percent sold with over 48 nationalities represented amid the buyers, per a representative.

The building is the first condo tower for sale within the Miami Worldcenter development and encompasses over 500 units. Among its selection of amenities, the future residents will enjoy tennis courts, swimming pool, hiking trail, playground, picnic area, and pool cabanas starting at $295,000. On the 9th floor of the tower, a football field will be available to the residents who may want to risk kicking the soccer ball while enjoying the beautiful city view.

The project is located on a 27 acres site, and it’s promised to transform the downtown area upon completion. Paramount is expected to top off during the summer of 2018, now the completion is scheduled for the first quarter of 2019.

For more details, please visit www.brgintl.com.

Florida’s workforce growth rate exceeding four times national average

The metropolitan areas of Orlando, Tampa, and Miami, are the top three in economic growth and jobs creation in Florida, according to a recent government data. With Florida’s workforce growth rate exceeding four times the national average, the state now focuses on reducing taxes and decreasing regulations to attract businesses.

The state’s economy continues to grow steadily, and Florida’s business sector was one of the most prosperous in 2017, Gov. Rick Scott said. 127,400 new jobs were created in October and the unemployment rate fell to 3.6%, the lowest rate since February 2007. Since December 2010, Florida companies have created 1,448,300 new jobs in the private sector.

Governor Scott noted that the “effort to make Florida a friendly state for business is working, and it’s a sign of continued economic growth.” He also added that they “will continue to work to reduce taxes and reduce regulations, so more companies will choose to move to Florida.”

The number one job

Amid the job categories, education and health services had the largest increase in Miami-Dade, Broward and Palm Beach counties, with 18,000 jobs. The 4.7% growth in South Florida represents a 2% difference than the national average.

The sector is followed by trade, transportation, and utilities which had the second-largest year-to-year increase over the 12-month period, growing by 8,600 jobs, which was a 1.5% gain. Nationally, the same sector gained just 0.4%.

Professional and business services also saw an increase regarding the job amount with 7,700, construction, with 7,500 and other services with 7,600.

Property in Miami is for Sale by 33 Bitcoins – Money is not Accepted

The Bitcoin is becoming more and more relevant to the economics of the modern time. Platinum Condominium in Wynwood has listed unit for roughly $563,000. However, the owner of the property is not accepting cash as a form of payment – he wants to receive only Bitcoins.

Broker Justino Ferret from United Realty Group makes it clear that the apartment’s only method of payment is the amount of 33 Units of Bitcoin. The reason as for why the owner of the unit is only accepting the digital currency it’s still unknown, but the strategy has brought a lot of attention to his property.

While this is not the first property ever to be on the market to accept cryptocurrency, it’s an uncommon way of payment given the volatility of the same.

Bellow see a list of top 5 cities around the world already accepting the digital cash to buy real estate:

Miami, Florida
Dubai, United Arab Emirates
NYC, New York
Lake Tahoe, California
Bali, Indonesia

Amazon introduces the app that connects agents with leads and books showings

Amazon, the online retail giant, has surprised the real estate world with its recent development: Agent Neo. The app features the newest technology for the Amazon Echo, the Alexa-voiced internet appliance. This new technology will help agents to buy, sell or book a showing in a property with a simple voice command.

To use the app, customers have to tell Alexa the address of the property they are interested in and the time desired of the showing, and the app will recommend available realtors on the area that have partnered with them. For realtors, Agent Neo is a new marketing tool that will help them to advertise their services and stay up to date on any leads, notifications about appointments and schedules for their properties.

Agent Neo is linked to Zillow which also allow the users to get approximate home values, demographics and loan pre-approvals.

Amazon has been causing a significant buzz in real estate since July when during their Prime Day Event, clients noticed a button called “Hire a Realtor” appeared on the online retail giant’s website with the phrase “coming soon.” The company already offers a “Services” section where customers can search for local professionals. You can find services such as cleaning, furniture assembly, maintenance, among others.

Success in NY and LA, the Ice Cream Museum Arrives in Miami

Woke up this morning feeling like you need to swim in a pool of ice cream sprinkles? Don’t you worry, because after Los Angeles, San Francisco and New York, it is Miami Beach’s turn to win the Museum of Ice Cream. The interactive (and delicious) attraction that will showcase some of the world’s most famous frozen dessert story.

Some of the Museum highpoints include the colorful and super attractive rooms with a swimmable pool filled with 100 million sprinkles, a gummy bear mural, a banana split made of 10,000 “bananas,” and a jungle of melting ice pops. Miami’s décor version plays with the art deco architecture, key lime pie, and palm trees.

According to the creators, the gallery it’s a place where creativity can be transformed into real experience. “Our mission is to bring people together and provoke their imagination.” Of course, whoever visits the museum will have the chance to taste delicious samples (included in the cost of admission).

The museum opened its doors on December 13 as part of Art Basel Miami 2017, the city’s largest art event, and it is in the Faena District at Mid-Beach – 3400 Collins Avenue, Miami.



Museum of Ice Cream

Where: Faena District, 3400 Collins Ave, Miami Beach

Tickets: $38 plus tax

For more information visit: museumoficecream.com; or call: 855-258-0719

Founder of Multiplan wins approval to build Miami Beach condo

Multiplan owns, among other projects, the luxury mall “Morumbi Shopping” in Brazil

Brazilian billionaire José Isaac Peres, founder of Multiplan Real Estate Asset Management, received the city’s approval to redevelop one of the most iconic buildings in Miami Beach, the Marlborough House built 56 years ago, which should be demolished.


The once controversial project had been the target of several protests, mostly because of a concrete walkway with exclusive access to the beach that could interfere with the distribution of natural light on the site and block the ocean view of a few neighbors. To secure approval from the Miami Beach Design Review Board, the developer informed in a press release that a few changes were made on the design, including a decrease on the building’s width, which creates a gap of approximately 100 feet between the project and the neighboring building to the south.

Perez paid $ 100 million for the 6,000-square-foot lot on Collins Avenue. Arquitectonica is designing the 90-unit, 17-story luxury condo building. The developer will build a 15-foot-wide path featuring lampposts, benches and landscaping so the public can access the beach.

Peres is the founder and largest shareholder of Multiplan, one of the largest shopping center managers in Brazil, which owns, among other projects, Morumbi Shopping. His personal fortune is estimated at $ 1.6 billion by “Forbes.”

How will the tax bill impact Miami Real Estate?

The United States Senate approved last Saturday, December 2nd, the tax reform advocated by President Donald Trump, which represents the largest tax reform since the 1980s, but also a significant increase in the US fiscal deficit.

The bill was approved with 51 votes in favor, all from Republican senators, and 49 opponents, almost all of them Democrats. The U.S. Senate is expected to reconcile the text approved with their House of Representatives, who approved a separate version of the bill with some differences, before Trump could sanction the reform. The law that comes out of this negotiation between the two houses is scheduled to go through a new vote.

The National Association of Realtors (NAR) has been actively releasing information regarding the proposals and its effects on homeowners, home prices and the real estate industry, however, it’s necessary to make state-by-state analysis, since home prices, economic growth, and population varies.

Recently the NAR President, Elizabeth Mendenhall, said: “The tax incentives to own a home are baked into the overall value of homes in every state and territory across the country, when those incentives are nullified in the way this bill provides, our estimates show that home values stand to fall by an average of more than 10 percent, and even greater in high-cost areas.”



Tax Reform – Key Multifamily Issues
Protect flow-through entities / REIT structure retains full business interest deduction
Ensure depreciation rules and avoid harming real estate while maintaining like-kind exchanges
Preserve carried interest

Income

Current Law Treatment of Business Income

  • Flow-through entity: 39.6 percent max rate
  • Individual: 39.6 percent max rate (effective at $418,400 single filers / $470,700 married couples)
  • Corporate: 35 percent max rate

House Tax Reform Bill

  • Active Investor in Flow-through Entity: 30 percent of income taxed at 25% rate with higher percentage available
  • Passive Investor in Flow-through Entity: 25 percent max rate
  • Individual: 39.6 percent max rate (effective at $500,000 individuals / $1 million married couples)
  • Corporate: 20 percent max rate

Senate Tax Reform Bill

  • Flow-through entity: 23 percent deduction (29.6 percent max rate) limited to 50% of allocable wages
  • Individual: 38.5 percent max rate (effective at $500,000 individuals / $1 million married couples)
  • Corporate: 20 percent max rate

 

Business Interest

Current Law

  • Interest fully deductible

House Tax Reform Bill

  • Interest fully deductible for real estate

Senate Tax Reform Bill

  • Real estate companies may elect to maintain full deductibility of interest

 

Depreciation

Current Law

  • Depreciation of Structures: 27.5 years
  • Depreciation of Other Property: Bonus depreciation through 2019 / MACRS

House Tax Reform Bill

  • Depreciation of Structures: 27.5 years
  • Depreciation of Other Property Held by Real Estate Firm: MACRS

Senate Tax Reform Bill

  • Depreciation of Structures: 30 years for firms maintaining full interest deductibility
  • Depreciation of Structures: 25 years for firms accepting haircut on full interest deductibility
  • Depreciation of Other Property Held by Real Estate Firm: Full Expensing (through 2022), Bonus depreciation thereafter

 

Carried Interest

Current Law

  • Carried Interest: Capital gain if asset held for at least one year

House Tax Reform Bill

  • Carried Interest: Capital gain if asset held for at least three years

Senate Tax Reform Bill

  • Carried Interest: Capital gain if asset held for at least three years

 

Estate Tax

Current Law

  • Exemption: $5.49 million individual / $10.98 million married couple
  • Top Rate: 40%
  • Basis Rule: Step up

House Tax Reform Bill

  • Exemption: Doubled in 2018 (Tax Repealed in 2025)
  • Top Rate: 40%
  • Basis Rule: Step up (before and after repeal)

Senate Tax Reform Bill

  • Exemption: Doubled in 2018 (Provision reverts to current law in 2026)
  • Top Rate: 40%
  • Basis Rule: Step up

The breakdown of NAR examination can be seen in this link.

Real estate and art merge at the 3rd edition of “Art + Real Estate”

On Wednesday, BRG International sponsored the Art + Real Estate 2017 Edition featuring the paintings by the Argentinean artist Daniel Bottero. The exhibition was planned to coincide with the first day of the 16th edition of one of the biggest art festivals in the world, Art Basel Miami Beach.

The event took place in the newly and expanded elegant space of BRG International Head Quarters. Art enthusiast and collectors had the opportunity to enjoy some of Bottero’s works as part of their Art Basel experience.

During the event, BRG International displayed images of some of the most desired homes available for purchase as well as their portfolio of newly renovated luxury condos, some of which are collaborations with renowned architects and designers recognized worldwide.

Guests were treated to experience the creative process behind some of Bottero’s art, in addition to have the opportunity to meet the artist himself accompanied by some of the Miami personalities connected to the cultural and artistic scenery.