10.18.2013

$ / SQ. FT - BREAKING RECORDS FASTER THAN WE ANTICIPATED


So I have here below another fascinating article from the Real Deal, the best syndicated real estate news source in South Florida. In this article they reveal the order from highest to lowest of price per square foot in the luxury preconstruction market with some of the most expensive units available for sale breaking at a whopping $2500/foot (lifestyles of the rich and famous baby). Absolutely jaw dropping as just 2 years ago we were astounded when $1300.00/foot was surfacing the luxury market.

Of course this raises questions for me as I'm curious to know what will happen when the existing owners of the most luxurious products want to anti-up and sell what they have for the next best available purchase. Is this when prices begin to regulate? Will we have a secondary market of buyers prepared to sweep up inventory from the 2005 - 2008 era? Some buildings will suffer from being an inferior product with any number of variables impacting their resale potential, views, location, carrying costs, etc.

Rather than focusing on the old, let's remain enthusiastic about the new. Zaha Hadid's One Thousand Museum is enough to keep your head spinning. She has delivered on a concept once unimaginable. The column support and structural frame of the building will be used as an exoskeleton, an element to emphasize the aesthetic of the building. The exterior columns will actually enhance the window/balcony view for each resident in the building as not one view will be alike.

Faena House is another project I've studied closely and their Alero terraces creating a unique outdoor living experience is also expanding the limits to how we occupy residential space.

Just recently reported, 22 billionaires have all invested in the Porsche Design Tower, there is no end.

As you read below you'll see we are now contending with an iconic city like New York. Truly amazing...



From left: Ian Schrager, Residences at Miami Beach Edition, One Thousand Museum









Miami is beginning to look like Manhattan, at least in terms of what buyers are willing to shell out for a square foot of prime real estate. In New York, the average per-square-foot price for a new luxury condo ranges from the high $2,000s to the low $3,000s. The Magic City is still cheaper at the top of the market, but just a little: Units in the two ritziest towers going up — Ian Schrager’s Residences at Miami Beach Edition and Terra Group’s Glass, also in Miami Beach — are averaging more than $2,500. By comparison, the least expensive is Juno Beach’s Bay Colony, at $241. The median listing price: $682, according to research by Condo Vultures and Cranespotters.com, which provide market data.

The reasons fueling Miami’s dizzying prices today are the same ones that launched Manhattan’s meteoric rise so long ago: Growing prestige as a world city, which creates demand, and an influx of international cash, which lifts the price floor.

Right now, in this market run-up, there are 85 condo projects that the region’s cities have signed off on and 45 that developers want to build but don’t have the okay yet. Construction crews are busy at work on 34 towers. And only three are finished so far.

Together, the projects in their various phases represent well over 20,000 new units and more than 170 towers.

The sizes of projects this time around are smaller than the last boom.

Of 46 projects in preconstruction, nearly half — 22 — have fewer than 100 units. And there is a correlation between the number of units and the per-square-foot cost, an analysis byThe Real Deal shows.

Only two of the 11 most expensive towers have more than 100 units: Oceana Key Biscayne, which has 154 condo units, and Oceana Bal Harbour, with 260 units. Asking prices there are $1,700 and $1,500 per square foot, respectively.

The top spot on the list is Schrager’s Edition, which has only 26 condos, selling for $2,640 per square foot on average.

Terra’s Glass is even smaller, more intimate — 10 units, the fewest of all the towers — but is asking slightly less per square foot: $2,592.

The biggest project by far is Paraiso Bay in Downtown Miami. The skyscraper complex will have 1,000 units. Its average per-square-foot price holds the No. 30 slot with $525, a fifth of what Glass costs.







































Location — both city and ocean frontage — is influencing cost, of course.


All of the top 10 projects are in monied Miami Beach, Sunny Isles Beach, Key Biscayne and Bal Harbour. Every one also has a bird’s-eye view of the water.

At the opposite end of the spectrum, Juno Beach is about 85 miles north of Miami, and its Bay Colony project is at the bottom of the list.

What all the towers share is a core group of amenities. Bay Colony, as well as H3 in Hollywood, the second-cheapest project — will have fitness centers, clubhouses, pools and spas just like the two most expensive — Edition and Glass.

The priciest certainly offer more services, including round-the-clock concierges, beach attendants, personal trainers and valets. And owners of the Edition’s condos, which will sit atop a hotel, are going to be able to order room service just like out-of-towners. On the menu: Champagne and caviar.

Obviously the biggest difference, though, comes from the units themselves: bigger, wider balconies, floor-to-ceiling windows, home gyms, media rooms, marble countertops — and the list goes on.

Plus, the ritzy projects are the work of noted architects. Rene Gonzalez, a Cuban native who now calls Miami home, is the inspiration behind Glass and its clean, stacked stories; British minimalist John Pawson had the vision for the tailor-made exclusivity of Edition, with a private entrance and a secret “celebrity” one.


Moolah from everywhere
The flood of South American buyers is well documented, and now more and more are coming from Europe and Asia as well. They have cash and they’re willing to spend it. The proof is the record amounts that have already been ponied up for existing units.

A Russian, for example, paid $1.45 million — a little more than $2,900 per square foot — for a 497-square-foot condo in The Residences at W South Beach, setting a new mark for the most ever paid for a studio or one-bedroom in South Florida. And a foreign buyer, identified only as a well-known European tennis player, ponied up $5.2 million — $1,500 per square foot — for a penthouse in the decade-old Four Seasons Residences, shattering the highest price paid per square foot in Miami’s Brickell corridor. That is, until that benchmark was broken by a penthouse at Echo Brickell that fetched around $2,000 per square foot more recently.

Though the prices are great watercooler fodder, they don’t stun industry insiders, and they’re not considered unreasonable for what they’re buying.

“Given the global demand for Miami, we are priced well below cities like London, Paris and New York,” said Veronica Cervera, president of Cervera Real Estate, which is handling sales at 321 Ocean Drive in Miami Beach’s chic SoFi neighborhood.

The tower, with 30 units over 16 floors, ranks No. 8 in average per-square-foot listing price: $1,609. The oceanfront low-rise — a 1926 Art Deco building undergoing a $24 million renovation, will have a concierge, beach attendants, showers and lockers for bike riders, and an “elite” fitness center, according to its website.

Manhattan-based Schrager, who started out solely as a hotelier, is unabashedly forthright about his decision not to spare any expense on Edition. And it paid off. An anonymous buyer paid $34 million by two side-by-side triplex penthouses, the most ever for a preconstruction condo in South Florida.

The square footage hasn’t been disclosed, but the eight-figure price tag could explain why the developer puts the average per-square-foot price of the Edition at more than $3,000 — even higher than the $2,640 cited by Cranespotters.

“Miami has changed,” said Schrager, whose last project in South Florida was the Delano Hotel, 17 years ago. “Miami has become every bit the world gateway city that New York is, and buyers are not intimidated by high prices.”



Source

Christopher Camerons "Miami's 20,000 new condo units try for Manhattan prices". 10/01/2013. The Real Deal Real Estate News. http://therealdeal.com/issues_articles/top-dollar-for-new-condos/




8.20.2013

The Bond in Brickell Reverting to a Vintage 50s Period

Sean Connery photographed by Terry O'Neill

The Bond in Brickell is adding distinct personality to the downtown landscape of high end condominiums. Centrally located off of Brickell avenue, neighboring bulidings such as 1050 - 1060 Brickell and the Plaza, The Bond will be in a perfect position to take advantage of the entertainment in the near walking vicinity.

The Real Deal Miami, has provided us with an interesting update on the projects design and direction:

London is calling at The Bond on Brickell, a 328-unit, 44-story condo tower set to break ground later this year that will be adorned with vintage prints by British celeb photographer Terry O’Neill, “melted” steel and a lit-up Abbey Road. The Bond’s developer, Rilea Group, tapped Mexico City-based Loguer Design to outfit the building’s lobby and other common areas, according to a company release.

"We approached The Bond with the goal of creating an ambiance that would feel like home to London’s legendary jet-setters of the 1950s and 60s, as well as the jet-setters of today,” Ramon Alonso, senior partner of Loguer Design and head designer of The Bond, said in the release. The result: pin-striped granite floors in the car entryway and an illuminated crosswalk-homage to The Beatles’ Abbey Road album cover.

The 60s-swinger concept continues into the lobby, where O’Neill’s photographs of Sir Elton John, Bond girl Barbara Bach, and Sean Connery, lounging in Gaetano Pesce’s UP 5 chair, will be prominently displayed against hand-stitched leather and suede walls. A contemporary version of the gray cashmere chair in a photo of Connery will be placed directly beneath the image, as part of The Bond’s permanent collection, the release said. — Emily Schmall

Source

Emily Schmall. "A bit of 1960s London Planned for Brickell" 8/20/2013. The Real Deal Miami. http://therealdeal.com/miami/blog/2013/08/20/a-bit-of-1960s-london-planned-for-brickell/

8.09.2013

Another Roaring Construction Loan since the Bubble Bust: Dacra Affiliates enhancing Miami's Design District

Craig Robins
Craig Robins


In the largest private construction financing since the recession, Dacra obtained a $301.5 million package for its haute couture shopping mall project in Miami’s Design District, the South Florida Business Journal reported.
Once again I'm taken back by the speed at which Miami is developing. This announcement made yesterday will continue to reform and change the landscape of the Midtown / Edgewater / Design District areas. Within 3 years we will be examining Miami in a completely different way. The lifestyle and experience is dramatically being enhanced.

8.07.2013

The Miami Herald Site Approved for Demolition: Making Way for Genting's Resorts World Miami


The Genting Group, the Malaysian gaming company that purchased the Miami Herald site, has received a permit to demolish the media company’s former headquarters, the Herald reported.

The demolition of the iconic white-and-yellow structure on Biscayne Bay is set to take place by the end of the year, the Herald reported, citing a statement released by Bill Thompson, senior vice president of development for Resorts World Miami, a Genting Group subsidiary.

Genting’s initial $3.8 billion casino project has been significantly scaled back, according to plans revealed in March. The company now plans a mixed-use complex with a five-star hotel, luxury condos, restaurants, retail and a 800-foot promenade along Biscayne Bay, the Herald said.

Genting paid $236 million for the former Herald site, which includes almost 14 bayfront acres.

The Herald moved from its former downtown location to Doral in May.


Getting to know the Genting Group:





Source

Emily Schmall. "Genting gets go-ahead to wreck former Herald site." http://therealdeal.com/miami/blog/2013/08/07/genting-gets-go-ahead-to-demolish-former-herald-site/. 08/07/2013.




7.11.2013

Oceana Bal Harbour JUST APPROVED by Bal Harbour Village



Below you'll find out about Constantini's second development project, OCEAN Bal Harbour. Although the followers' commentary on Curbed seems to reflect negative opinions on this captivating new project, Oceana Bal Harbour residences may be the next most exquisite condominium coming to Miami, and all located in walking distance to the pristine Bal Harbour Shops.

Oceana Key Biscayne has all but the penthouses left to sell and I imagine this project will capture the same allure.

The renderings show a flow through between the two towers which will remain as a passage between the ocean and bay.

I'm very excited to watch this unfold.

Read more below:



[Via Oceana Bal Harbour]

Bal Harbour Village just approved the construction of this big rectangular glassy thing designed by Arquitectonica, to replace its old school beach club that formerly sat on a large oceanfront site in the middle of town, according to a press release. It's called Oceana Bal Harbour, and the 250 luxury units start at $2 million each. It's nearly identical to Oceana Key Biscayne, which is currently under construction, and not to be confused (yes, we were confused) with two other, older and unrelated, projects called Oceania Sunny Isles Beach and Oceania Island.


                                             Main Entry

                                              Sky View
Siteplan with swimming pools, tennis courts, large manicured grounds and direct access to the beach.

Source

Sean McCaughan's "This was just approved to replace the bal harbor beach club". Posted on 07/02/2013. http://miami.curbed.com/archives/2013/07/02/this-was-just-approved-to-replace-the-bal-harbour-beach-club.php

7.03.2013

THE SLS HOTEL & RESIDENCES IN BRICKELL




The SLS Hotel and Residences in Brickell is an exciting new project which will give you an urban amenity rich lifestyle in the highly pursued Brickell financial district and also grant you privileges to the SLS South Beach amenities.


With the best in high end restaurants will be available on the retail floor of this new development:

"SLS Brickell Hotel & Residences is a new project by The Related Group. The project will be located at 1300 South Miami Avenue in Brickell. It will have 450 units, 51 floors, with retail at the ground level featuring 4 on-site restaurants - including world-renowned Katsuya by Stark, Bazaar by Jose Andres, and Michael Schwartz of Michael Genuine . The hotel component of the building will begin at the lobby level and go up to the 9th floor, where there will be an elevated pool, spa deck, and amenities such as the HYDE Bar and Lounge and CIEL Spa. The residential units will be from the 10th to the 51st floors and will have 11 units per floor."



6.19.2013

Perceived Growth from the City's Largest Builders


Here's another article from the Real Deal indicating great signs of growth and city development for the city of Miami, and I happen to agree, once the Brickell CityCentre is finished, we will continue to see new demand and interest creating a lot of movement in the downtown market:

In South Florida, behind every star architect is a star builder.

John Leete, the head of Florida operations for John Moriarty & Associates, a Winchester, Mass.-general contracting and construction company, has garnered billions from Miami’s current condo boom, according to an interview with the Miami Herald.

Leete’s company is responsible for the Pérez Art Museum Miami, the $220 million project whose construction is underway at Museum Park designed by Swiss architecture firm Herzog & de Meuron, and, in a joint venture with Americaribe, Swire Properties’ $500 million BrickellCityCentre. Leete has worked on $2 billion in projects developed by Related Group, co-founded by the museum’s namesake, Jorge Pérez.

Asked whether South Florida is gaining momentum in construction, Leete said “it has been for the last 18 months and is continuing to pick up steam.” “The number of new projects this year alone is staggering. The big question is if and when they all break ground. It will be like turning back the clock to 2006,” he said, adding that labor shortages and the cost of materials continue to be industry challenges.

PAMM, a LEED-certified building that incorporates South Florida’s natural landscape, posed particular construction challenges, Leete said. “The [museum] has some key features such as the largest hurricane-rated glazing panels that also incorporate museum requirements for tinting and color rendering for the artwork. [There are] hanging-garden elements that mimic a Banyan tree; and also large column-free art galleries utilizing cutting-edge concrete-slab systems from Europe,” he said.

Leete predicted BrickellCityCentre will be “the catalyst” to Miami’s economic recovery from the recession. [Miami Herald] –Emily Schmall

Source: The Real Deal "General contractor John Moriarty & Associates sews up billions in high-profile SoFla buildings". http://trdsofla.com/164eD7N. Published June 10, 2013.