1.35 Acres of Prime Coconut Grove Land Hits the Market Asking $40M Posted on May 19, 2016 by Michael Light Coconut Grove has been the talk of the town because of its revival within the past few years with projects like Grove at Grand Bay and Park Grove, and as a result, a 1.35-acre assemblage of prime center Grove land that just hit the market for $40M. The 1.35-acre assemblage is located at 3101 and 3131 Grand Avenue and includes 6 parcels that break down to 4 single-family home lots and 2 commercial lots, according to TRD. Currently, the property is occupied by Kwik Stop food store, Subway, a dry cleaners, UPS store and Sapore di Mare, a seafood restaurant, along with single-family homes on the backside of the block on Florida Avenue. This land, located only a block from CocoWalk, is like gold in Coconut Grove and is a very rare opportunity for an investor to find this much acreage together in the center neighborhood of the Grove. The retail market overall in Coconut Grove is thriving, just look at the retail building directly across from CocoWalk at 3034 Grand Avenue that just sold to a Chicago-based investment firm, L3 Capital for $23M. L3 Capital plans to re-tenant this property to add to the prospering of the Grove. Photo Source: The Real Deal
Legalization of Uber & Lyft Contribute to a “Car-Less” Miami Posted on May 5, 2016May 8, 2016 by Michael Light On Tuesday, Uber and Lyft officially became legal in Miami-Dade County as Miami commissioners passed ordinances on a 9-2 vote that legalized the Uber/Lyft business model, which utilizes freelance, approved drivers that charge fees which rise and fall with sales, according to the Miami Herald. Despite the already successful business for Uber since launching operations in Miami in the summer of 2014, it has been a mission for supporters to get ride-sharing services legalized here. The public has been speaking shouting to get this passed and the commissioners have finally listened, despite taxi companies now suing the county because of the new Uber law. Until Uber & Lyft entered the Miami market, it was a necessity to own a car and drive everywhere, but they have since contributed to Miami becoming more of a car-less city. And, now with the legalization of Uber & Lyft, they will only become a bigger contributing factor. Now, I understand that Uber & Lyft use cars, but what I mean by “car-less” is that people living in the greater Downtown Miami area no longer have to rely on owning a car (like many in NYC) to get around the city. Less cars means less pollution & less traffic. As a Miamian (who, like all other locals, doesn’t walk anywhere because of the heat), I am very happy to have the Uber law passed…makes it much easier to move around the city without having to deal with the headaches of parking or dealing with valets, and is much more comfortable riding in a luxury and clean car/SUV versus a taxi.
Downtown Miami: 4th Fastest Growing Neighborhood in the Entire Country! Posted on April 19, 2016 by Michael Light Realtor.com released an analysis recognizing the 10 fastest growing neighborhoods in America that are expected to grow even faster over the next 5 years and, with no surprise, Downtown Miami ranks #4 on the list. This list of “Boom Towns” includes an interesting mix of cities where economic growth is exponential and there is an abundance of job opportunities and prime real estate. Top 10 Boom Towns Across America – Photo Credit: Realtor.com So how did Realtor.com perform their analysis??? An economic data team gathered projected measures of job creation, household formation and new construction for 2016 to recognize the top growth counties. Every neighborhood listed in the boom town list (based on zip code) has seen up to 5 times the job growth of the top 100 counties in America. Household expansion in each of the areas is up to 7 times the growth of the top 100 counties and new homes are up to 6 times the growth. Most significantly, each zip code is projected to experience household growth of 9-19% over the next 5 years. The chief economist of this analysis, Jonathan Smoke, said that the neighborhoods on the boom town list “are experiencing the most balanced growth.” This includes “job creation that leads to the country’s greatest growth in households and more new construction, which is needed to enable the forecasted growth.” #4 Downtown Miami (33132) Downtown Miami, most importantly, has a projected 5-year household growth of 14.9%! Miami has been globally known, until that last few years, only for its tropical weather, nightlife and beaches (even though the beaches are in Miami Beach). But, Downtown Miami has much, much more to offer than people think…especially when compared to Miami Beach. Greater Downtown Miami (not just the zip code listed above), which includes Downtown Miami, Design District, Midtown and Brickell, is absolutely booming with new urban developments, nightlife, condos, and shopping. Specifically, Brickell City Centre and Miami Worldcenter are bringing so much growth to Downtown Miami. Moreover, Miami Worldcenter is the 2nd largest urban development in the country, second only to Hudson Yards in NYC, and is set to include a signature condo building dubbed Paramount Miami, and a Lincoln Road/Shops at Bal Harbour-esque promenade with lots of shopping, restaurants and entertainment.
Miami Condo Market is Far From a Bust: Response to the Wall Street Journal Posted on April 17, 2016April 17, 2016 by Michael Light I am sick-and-tired of news reporters writing “stories” about the Miami real estate market with inaccurate, misleading headlines simply to scare capture the attention of readers, making them think that our market is going to tank, simply so that people click on their stories to help their respective websites rank higher. I encourage everyone to please read the full articles and then look at factual statistics about the market before believing the headlines. And, most importantly, please understand that Miami and Miami Beach are completely different places and completely different markets! Miami Condo Market is Far From a Bust A few weeks ago, the Wall Street Journal (WSJ) published a story with a headline predicting a “condo bust” in Miami, which is just flat-out misleading, has no basis in fact and although caught the attention of many around the globe, is wrong. Let me first address a few things from that WSJ article: #1 – “In the fourth quarter of 2015, the number of Miami Beach condo transactions declined nearly 20% from a year earlier.” THIS IS FALSE! I have no idea where this reporter got her information from. Developers do not openly disclose how much inventory they have available or sold. So, I can only assume that she got her information from the MLS for resale inventory. This entire article is written from the perspective of developer inventory but she then tries to use numbers for resale properties to “pad” her negative figures??? Let’s look at the MLS data for Miami Beach that I just pulled for this article. Q4 2015 Miami Beach Closed Sales: 522 Q4 2014 Miami Beach Closed Sales: 568 46 less units equals 8.1% decline, not 20%…mislead much? And, if I did have access to all developer sales statistics during these periods, units sold would have gone up in 2015, not down. If you look at the entire year of 2015 vs. 2014, there was only a 5.3% decline! If you were traveling 100 miles per hour and slowed down by 5% to 95 miles per hour, would you say that you have stopped…or just slowed down slightly??? #2 – “[Related] priced its new Auberge development, a 60-story project in downtown Miami, at $600 a square foot, compared with the $850 a square foot it might have asked a couple of years ago.” GIVE ME A BREAK! First of all, a condo building that is NOT waterfront in Downtown Miami would never set prices to begin at $850 a square foot at any time during this cycle, let alone “might have asked a couple years ago”…PURE SPECULATION on the part of a reporter. Using this figure to compare to the $600 a square foot that Auberge is actually priced at only helps “support” this reporters opening paragraph that states “developers slashing prices.” Again, very misleading. *Note, the article does mention that Auberge sold 20% of its inventory in the first 2 months of sales…which supports how strong the Downtown Miami market currently is! *Also note, another project near Auberge in Downtown Miami that is NOT waterfront is Paramount Miami Worldcenter. At no time since Paramount Miami launched sales have they asked $850 a square foot. In fact, Paramount Miami launched sales with Tier 1 pricing starting at $533 a square foot (November 2014). If Auberge “might have asked $850 a square foot a couple years ago” then Paramount Miami would have definitely done so especially since Paramount Miami is a much nicer project and will be situated within the 2nd largest urban development in the entire country. #3 – “Other Miami developers have put on hold or canceled more than half a dozen projects planned earlier in the cycle.” So let me understand something…the opening paragraph of the WSJ hit piece article, directly after “Miami is facing a condo bust—again” states that “developers have started canceling projects.” There are over 240 condo projects in Miami-Dade County either completed, under construction or in planning stages…and this article uses a mere 6 canceled projects as a basis to scream “the sky is falling” and that “developers have started canceling projects?” That is only 2.5% of all projects! Key facts not mentioned in the WSJ article that rebut the so-called condo bust in Miami: 85% of the pre-construction condo developments (currently under construction) with a completion date in 2016 in the Greater Downtown Miami area (including Downtown Miami, Brickell, Edgewater, Midtown) have already been sold. What does this exactly mean? It means that buyers of these units have already put down at least 50% deposits. Do you think anyone in their right mind would choose to lose a 50% deposit by not closing? NO! This, as opposed to 2008, where buyers only had up to 20% of money down before the closing and depended heavily on bank financing. Greater Downtown Miami currently has approximately 7,200 units under construction which will be delivered over the next 3 years. Compare this to 2006-2008 when there were nearly 18,500 units under construction. Over 80% of all condo sales over the past 3 years were purchased “all cash” with no bank financing. In the resale market in 2015, the percentage of all-cash condo purchases was 73%. If buyers used financing, it was for 60% or 70% of a property’s value. Overall, this means there is an incredible amount of equity and very little bank exposure or default risk, i.e. foreclosures or short sales, which is what usually leads to steep price declines, the supposed “bust.” So, let me just clarify, the WSJ led their story with a headline that is based purely on conjecture. At best, it is an opinion. A more accurate headline would have been “Can the South Florida condo market survive foreign currency fluctuations?” – But, that wouldn’t bring as many website clicks, would it? A Few Additional Stats I encourage you to look at the facts: Douglas Elliman just released their Q1 2016 Market Report for Miami and Miami Beach, and I hope that you read the full reports on my website. In addition, the Spring 2016 Housing and Mortgage Market Review published by Arch Mortgage Insurance Company spells out that there is little chance that Florida home prices will drop. Further, the likelihood of home price declines across the United States over the next two years remains low at 5%, but for Florida the risk is even LOWER. The report tries to measure the likelihood that home prices will be lower in 2 years based on recent economic and housing market data. Regardless of the low overall risk of home price declines across the country, the report highlights the fact that Florida’s risk of a price decline over the next 2 years is only 2% in 24 Florida counties, including Miami-Dade and Broward. Miami & Miami Beach are NOT the Same Place I really want people to understand that Miami and Miami Beach are not the same city and are different real estate markets. The “Miami market” includes cities and neighborhoods such as Downtown Miami, Midtown, Edgewater, Design District, Brickell, Coconut Grove, Coral Gables, South Miami, Pinecrest and Palmetto Bay. The “Miami Beach market” usually includes such cities, islands and neighborhoods as Miami Beach, Bal Harbour, Surfside, Sunny Isles Beach, Fisher Island, Bay Harbour Islands, North Bay Village, South Beach, North Beach and Mid-Beach. When news reporters are speaking about the so-called “Miami” market, they are confused by the difference and are lumping many different categories of stats together to make the market in South Florida look bad, when that is not the reality. Please leave it to Miami real estate experts to use statistical data and who actually understand the distinctly different cities and neighborhoods in Miami-Dade County! Conclusion There are still amazing pre-construction condo developments in the Miami and Miami Beach real estate markets that buyers should consider. Definitely not all of them, but this is why it is crucial to work with a knowledgeable real estate condo broker who knows the condo market in this area like the back of his/her hand. It is even more so crucial to trust your broker. Let me give you a scenario. I received a referral from a client and close personal friend. The referral toured single-family homes with me in Coral Gables because he was certain he did not want a condo. A different friend of his purchased at a condo building in Edgewater, so my referral then blindly purchased at the same building as his friend without knowing much about the project and decided he didn’t need me being involved in the transaction as he could get a better “deal” directly through the developer (always a big mistake…developers have their own best interests to protect, never the buyers…that’s why a broker is so important). If he had used my guidance, I would have explained to him that this particular project, though appealing to the eye, was not the best fit for his lifestyle or long-term investment goals. I would have presented him with developments that will have better long-term value, i.e., One Thousand Museum, Park Grove, Eighty Seven Park and Paramount Miami Worldcenter, all with outstanding architects, developers, amenities and luxury residences. It is crucial to find a condo development that fits your needs, but also your wants. It is not the same market as it was for the past 2 years, and yes, the condo market is stabilizing, but this does not mean that people should be scared of the market, just more cautious. And, whether you work with me or a broker that you already highly trust, just be more diligent. Make sure that you are working with an outside broker (not an employee of the developer) who is honest with you about each project. If a broker has nothing bad to say about a project, they are probably just looking for their fast commission check. Like anything, there are always pros and cons to every project. For me, it is not about the quick check. It is about building relationships and building a referral network. This is why I am brutally honest with my clients. If you, or someone you know, are interested in learning more about the condo market in Miami, please contact Michael Light, Director of Luxury Sales at Douglas Elliman. You may reach me directly at my office at (305) 350-9842, on my cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
4th Annual Miami Beach Chamber of Commerce’s Better Beach Awards Luncheon 2016 Posted on April 3, 2016 by Michael Light On Friday April 1st, Jaimee Light, Marketing Director of Miami Luxury Homes, attended the 4th annual Miami Beach Chamber of Commerce’s City National Bank Better Beach Awards luncheon which honored trendsetting, influential leaders in the local real estate industry. The upscale luncheon was held at the ballroom in the Ritz Carlton on South Beach and led by the Master of Ceremonies, WPLG Local 10’s Sports Director and Lead Sports Anchor, Will Manso. Master of Ceremonies, Will Manso This premiere event was sponsored by City National Bank who has been involved with this award ceremony since its inaugural event in 2013. And, it was hosted by the Miami Beach Chamber’s Real Estate Council, which acts as an invaluable resource to the members of the Chamber who serve the local real estate community. Prior to the luncheon and the awards ceremony, guests enjoyed a mini expo which included booths presented by participating sponsors which happened to include our remarkable brokerage, Douglas Elliman, who was the presenting sponsor of the annual ceremony. The businesses who also participated in the expo included City National Bank, Paramount Miami Worldcenter, Itopia, Miami Beach Chamber Education Foundation, South Florida Luxury Guide, Coconut Stock, BISNOW, Brightbox and Compass. Although many awards were given to the leading real estate professionals in our community, the one Jaimee and I are most proud was the award given to the CEO of Douglas Elliman Florida, Jay Parker, who was awarded the “Innovative Leader Award.” This award recognized Jay’s thought-provoking leadership and dedication within the real estate industry. This should come as no surprise since Douglas Elliman has quickly rose to become the leading luxury real estate firm in the country with over $22 Billion in sales in 2015 with $2.4 Billion coming from right here in South Florida. Jay’s leadership, expertise, friendship and outstanding contributions to the community is what attracted Jaimee and myself to join Douglas Elliman’s real estate family. It is a remarkable luxury real estate firm in which we are so honored to be a part of. So, congratulations to Jay Parker on this outstanding award and all of his accomplishments in the real estate industry and overall as an outstanding individual and mentor in our community. Jay Parker, CEO of Douglas Elliman Florida, presented with the “Innovative Leader Award” If you, or someone you know, are interested in buying or selling luxury real estate in Miami or Miami Beach, or simply would like to learn more about the current real estate market in South Florida, please contact Michael Light of Douglas Elliman. You may reach me directly at my office at (305) 350-9842, on my cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
One Thousand Museum Loses Legendary Architect Zaha Hadid Posted on March 31, 2016March 31, 2016 by Michael Light Zaha Hadid, the groundbreaking starchitect who was the first woman to win the Pritzker Prize, the highest honor in her profession, sadly died in Miami today. The world-renowned architect suffered a sudden heart attack while being treated in the hospital for bronchitis that she contracted earlier this week, according to the New York Times. Zaha Hadid was highly celebrated for her groundbreaking designs that left a mark on skylines around the globe. In fact, her passing sadly hits home since Zaha Hadid just recently brought her incredible talents to South Florida to build her first residential tower in the United States as she designed the 62-story ultra-luxe tower, One Thousand Museum, that will be situated in the epicenter of Downtown Miami directly across from the stunning waters of Biscayne Bay. One Thousand Museum, because of Ms. Hadid, has provided Miami with an unprecedented architectural design including the tower being the first building in the U.S. to use a glass-fiber reinforced concrete shell as the permanent frame for its highly-innovative exoskeleton, which you can see below. One Thousand Museum Condos With only 83 luxury residences, and its museum-like designs, over-the-top amenities including a rooftop helipad and the spectacular direct-water views, One Thousand Museum is already an iconic place to call home in Miami. But, after today, some believe there will be an exponential rise in value because One Thousand Museum is Zaha Hadid’s first and last ever residential masterpiece in the United States. In fact, one of my clients from overseas who has been considering purchasing at One Thousand Museum called me this afternoon to discuss the impact Ms. Hadid’s passing will have on the project. It is his belief that her passing can be compared to an artist’s passing and their artwork increasing in value. Sadly, I am sure my client will not be the only person to think about this. When world-renowned artists pass away, their artwork appreciates considerably, and One Thousand Museum will be no different. Residences at One Thousand Museum will be part of a forever art collection, and forever be cherished by those around the world who admired Zaha Hadid. Rest in Peace, Ms. Hadid, you will be forever missed. If you, or someone you know, are interested in purchasing a piece of history in Miami, please contact Michael Light of Douglas Elliman. You may reach me on my cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
JUST SOLD| $2.9M Warehouse in Wynwood Sold to NYC Ad Execs Posted on March 19, 2016January 16, 2019 by Michael Light My New York clients just closed on a $2.9M warehouse in Wynwood where they plan to move their entire company from NYC. The warehouse is located at 271 NW 23rd Street, directly across from the 30-acre site where Moishe Mana plans to build his entertainment, mega-complex. My clients are advertising executives who run a very successful agency in NYC but have been advised by their accountants, just like many of my other high-net-worth clients, to move their business to South Florida to take advantage of the favorable tax situation in Florida. My clients, husband and wife, are also planning to make another large purchase in South Florida as they plan to buy a luxury home in Coral Gables, in one of its many gated communities such as Journey’s End or Snapper Creek, at a price upwards of $10M. Check out The Real Deal article about my sale: New York Ad Execs Pay $2.9M for Wynwood Warehouse If you, or someone you know, are wondering what to know about upcoming auctions of farm equipment or looking to relocate your business to South Florida, please contact your trusted broker, Michael Light of Douglas Elliman. I will personally assist you in the purchase of your dream home, AND I will recommend and put you in direct contact with a trusted and reputable commercial broker, to ensure that your relocation to the sunshine state is as seamless as possible! You may read more about New Zealand Van Lines and their moving services. Picture Source: Google Maps
Knight Frank 2016 Wealth Report Released Posted on March 10, 2016 by Michael Light Knight Frank, partnered with their global alliance Douglas Elliman, just released their annual 2016 Wealth Report, which reflects the global perspective on prime property and investment. DOWNLOAD: Knight Frank 2016 Wealth Report The PIRI 100 from the 2016 Knight Frank Wealth Report The value of the world’s leading prime residential property markets rose on average by 1.8% in 2015, according to the latest results of Knight Frank’s unique Prime International Residential Index (“PIRI“). This average was similar to the 2% growth seen in 2014. However, in 2015 over 66% of the PIRI 100 locations recorded flat or positive price growth, compared with 62% in 2014. Looking at our specific market, out of the 100 cities on the PIRI, Miami ranked 14th overall with a price growth of 6.4%, which is over 3 times that of the average! Further, Miami ranks as the 2nd highest price growth when comparing only the cities in the U.S., second only to San Francisco. Miami’s real estate market, specifically in certain neighborhoods in and around Miami and Miami Beach, is continuing to see major growth and is a great place to invest. So, if you, or someone you know, are interested in purchasing real estate in Miami, or simply have a question about the Miami market, please contact Michael Light of Douglas Elliman. You may reach me on my cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.