River District 14 Brings Flexible Living To The Miami Hospital District Posted on July 11, 2023 by Sarah Elles Boggs Coming soon to Allapattah just blocks from the Miami River and the Miami Hospital District is a new 16-story condo development with 283 investor-friendly condo units that allow short-term rentals. River District 14 has been advanced to the permitting phase and is preparing for construction to begin, according to The Real Deal in April. This is the only building in the area approved for AirBnB style, nightly/weekly/monthly short-term rentals. With all of the traveling nurses, doctors and patients looking for flexible stays near the Hospital District, this is the perfect opportunity for investors. River District 14 Miami Map The Location of River District 14 The location of River District 14 is the first thing that comes to mind. Allapattah is located just west of I-95 and has been lauded as the next area of gentrification as new developments continue to saturate the areas closer to the Biscayne Bay. With popular eateries and entertainment venues such as The Wharf and Seaspice, socialites and urban-dwellers are already venturing over to the banks of the Miami River to enjoy afternoons and evenings of fun. Adjacent to River District 14’s construction site is River Landing, a shopping center that offers a new Publix grocery, Pet Supermarket, fast food options including Chic Fila and Haagen Daaz, as well as Planet Fitness and retail shopping outlets. Nearby Metrorail Stations make commuting into Downtown Miami, Brickell, Coconut Grove and Coral Gables a breeze, which also brings up the proximity to the University of Miami (UHealth) Campus. Access to Miami International Airport is also a cinch on the Metrorail, or via car. Rendering of River District 14 Miami Streetscape River District 14 Investment Notes The residences in River District 14 are of course spectacular, but the main draw to the project is going to be the flexibility of use. Since the condo units have the option of being delivered fully-furnished and allow short term rentals, we can think of several profiles of potential buyers or renters that would maximize the potential for the space. For starters given the proximity to the hospital district, families of long-term patients are always faced with a challenge of finding suitable accommodations close by. Hotels seem so transient and you cannot properly settle in during your stay. You would have to eat out for every meal. With a short-term rental condo, you could stay adjacent to the hospital so that you are available for your loved one during their recovery and close to the medical care if you are in an outpatient situation. You can live in a proper home and settle in to live as normally as possible during this transition time. It is also amazing for visiting doctors or nurses who would stay for a few months before returning to their home, wherever that may be. Doctors are also known to have to work long shifts and odd hours, so a place to rest their head close by is immensely valuable. Medical students value living near the hospital as well so that they are readily available during their residency, yet still have convenient access to the nightlife that the city core offers. Being close to the airport is another draw to this location. Pilots and flight attendants are known to work together to have what is called a “crash pad”. This is a rented apartment that is convenient to the airport where flight professionals can arrange to stay during long layovers or during stop-ins to different cities. The possibilities for this location and short-term rental offering really are endless without even tapping into the obvious tourist market and long-term tenants. Rendering of River District 14 Miami Game Room Inside The Units At River District 14 As we mentioned above, the units at River District 14 are delivered fully finished with the option of also being turnkey furnished. The closets are fully built out and everything is ready for the first tenants or owners upon closing. With smart access utilizing keyless entry, changing tenants is a breeze. Each unit has 9-foot ceilings and gourmet kitchens with stainless appliance packages. The bathrooms have Swedish rain showers and custom vanities as well as contemporary lighting packages that include recessed lighting, dimmers and lighting control. Each apartment also has a stackable washer/dryer and comes with one parking space. The different sizes range from studios up to 2 bedroom/2 bath options with square footages that range form 520 square feet up to 1,130 square feet for a 2-bedroom walkup residence. Prices range from $471,000 up to $1M. Each apartment includes access to the state-of-the-art fitness center, coworking spaces, an expansive pool deck with cabanas, a media room and pickleball courts. If you are interested in a private presentation on River District 14 with specific availability and pricing, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com. Rendering of River District 14 Miami Pool Rendering of River District 14 Miami Gym Rendering of River District 14 Miami Facade
Terra’s $1.2 Billion Downtown Miami Deal Is Off. What Does This Mean For The Miami Real Estate Market? Posted on June 30, 2023 by Sarah Elles Boggs Well, that’s a wrap. The record-breaking $1.2 Billion development site deal between Terra Group and Genting at 1431 North Bayshore Drive is not moving forward. What was heavily touted in every news outlet as the most expensive deal in the history of Miami is canceled. What does this signify about the market? Is the news media onto something that we are about to come to a screeching halt? Let’s break it down. The Deal And Why It Fell In order to really get ahold of what this signifies for the market, we first have to look into the development deal itself. Why it was a marker to begin with and why the deal failed. Of course, the sheer dollar amount of the purchase is the reason that the deal was so newsworthy. Genting had big plans for the site. At the time, their purchase price of $236 million was in and of itself groundbreaking. But their plans did not make it through the governmental red tape and Downtown Miami is just not the spot for table games and gambling. Genting really did make a solid go of it too. I don’t really gamble, but that Superfast mini-cruise ship/Bahamas ferry was a lot of fun (for those who remember). Rather than continue to put good money after bad, they finally said forget it and flipped the property to someone with a different plan. After a short period of collecting bids, Genting chose Terra Group’s bid of $1.2 Billion. The actual plans were very hush-hush, potentially because they were still in the conceptual state and not ready for press. But as quickly as the deal started, it stopped. It turns out that the problem with the deal was simply that Terra Group requested an extension of the due-diligence period for the deal and Genting said no. This is pretty common in development deals, and in my opinion, the deal should have already passed the due diligence period before being released to the press because so many things can happen during this delicate time. It could have been that the soil testing came back in a way that needed more testing, the seawall needed more work than anticipated and they needed to get more bids. It could have been that the return on investment at sell-off needed some tweaking, it could have been ANYTHING. This is in no way an indicator that either party is acting in a negative way toward the other or that the market is too unstable to withhold a development of this magnitude. What this does mean is that Genting is in a position of power. They have four other buyers eager to send them ten-figures for their land. Why should they give extensions? This is business and they are here to sell their land to the person who will close as quickly as possible and for the highest amount possible, so everyone can move along to their next deal. It’s a good position to be in. Can Terra come back and bid again? Certainly. And we love Terra Group’s product, so we hope that this does happen. Either way though, we are as eager as everyone to see how this pans out. Rendering of Casa Bella Rooftop Pool View North What this means for the Miami Real Estate Market In the time that the Terra/Genting deal was starting and failing, sales have not slowed down. Casa Bella Residences, which is gearing up to begin construction directly to the west of the development site at 1444 Biscayne Boulevard, has recently announced that they have sold over 70% of their 312 residences. They are now busy offering the 23 penthouses, which is the last step of the new development sales cycle. To reach this point in less than 18 months with the amount of competition the Miami new development market is offering is outstanding. Rendering of EDITION Residences Edgewater Arrival To the north of the development site is a flurry of action. Two Roads Development’s EDITION Miami Residences in Edgewater is located just to the north at 2121 North Bayshore Drive, and is gearing up to begin construction. Within a month of launch this spring, they had sold over $160 million of their 185 residences. This all happened before they were even able to open their $10 Million sales gallery. Rendering of Villa Miami Entrance And we cannot finish this analysis without looking at the all-star luxurious foodie-haven Villa Miami, which is also a Terra Group product in partnership with Major Food Group. This project has 75 super-luxury residences that embrace an array of culinary-focused amenities. The residences start at $4.5 million and have debuted in the market with much fanfare. I’m not going to rule out the possibility that maybe Terra Group realized its plate is a bit too full (see what I did there?) with Villa Miami and other projects in its pipeline this month, so asked for another month to complete the due diligence on Smart City with Genting. I do not know this to be a fact, it is purely speculation. My point is that nobody really knows why the Smart City transaction failed, but it doesn’t really matter either. Someone else will buy it (or maybe Terra Group will buy it again) and sales traffic has not slowed in the neighborhood. As long as there are new taxes and increased inflation in New York and other key areas of migration, there will be opportunity in Miami. If you are interested in continued updates on the development site, stay tuned here. If you are interested in a private presentation, more details and/or specific pricing for any of these projects, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
The Capital Of Capital: Miami’s Luxury Real Estate Market Experiences Double-Digit Gains Posted on May 16, 2023May 18, 2023 by Sarah Elles Boggs While the majority of the world’s luxury real estate markets are experiencing their first losses since the 2008 financial crisis, Miami surges ahead. According to a recent study undertaken by Knight Frank and published in Mansion Global, Miami is the only city in the United States to experience any gains at all, with local luxury real estate prices rising 11% from the first quarter of 2022. The only city in the world with larger luxury real estate price increases than Miami was Dubai. “The slowdown in growth has overwhelmingly been driven by sharply higher interest rates following a recent tightening in global monetary policy,” said Liam Bailey, Knight Frank’s global head of research, in the report. Due to low interest rates, the obvious favorable climate, and the attractive tax climate, the Miami luxury real estate market was already on the upswing when COVID hit in 2020. During this time, as we were all in lockdown, many realized that not only is Miami financially a great choice, the lifestyle is far richer than depicted in the media. While the vibrant nightlife and tourism communities are certainly there, Miami is also a lovely place to raise a family and conduct business. Rendering of Rivage Bal Harbour Porte Cochere Remote workers began to choose Miami. Celebrities such as Tom Brady and Gisele Bündchen moved their family to Miami Beach, as did Jared and Ivanka Kushner. Around this time, Mayor Suarez was deep in the throes of his mission to make Miami an international epicenter of not only lifestyle, but business as well. His mission has been successful, the Magic City is now a hotspot for tech companies as well as the venture capital elite. Starwood Capital and Citadel are moving their headquarters to Miami and contributing to the thriving luxury real estate market as executives snap up homesteads for their families. Record-setting deals have been inked at a regular pace since the pandemic began to clear. We are now a true “Capital of Capital.” Is there a downside? Of course, as with any astronomical growth, there are growing pains. Inventory shortages have plagued us for a few years now, causing prices to increase further and pricing locals out of their own market. Supply chain issues cause delays in the delivery of new luxury residential towers. Even the private school systems are creaking under the pressure of the influx of new full-time residents. Fiancial Times has reported that so many families are relocating from Manhattan, our private schools are even more competitive than ever. Legacy families are being left behind as wealthy New Yorkers bring their private school bloodsport games down to Florida. For many families, there is no way to compete. One private school in Palm Beach received an $18 million gift from a newcomer. Naturally, his children were admitted. There is even talk from some of New York’s more prestigious private schools to open satellite campuses in Miami to accommodate these expat Manhattanites, but this takes time. For now, we will have to battle it out for the slots available in Ransom Everglades, Belen Jesuit, Miami Country Day and others of the sort. The Shore Club Residences Terrace View Looking Forward… As we adjust to the new neighbors and the new levels of density, there are so many beautiful towers to look forward to. The Perigon Miami Beach is active in their sales process and it is going very well. The Shore Club Residences in Miami Beach is also performing well. On the mainland, Villa Miami and Edition Residences Miami Edgewater are quite busy, with sales swiftly being completed. Overall, things look bright. There is no end in sight for the Miami luxury real estate boom of 2023 as long as Mayor Suarez continues to deliver a favorable business climate to match our lovely weather, culture and tax scenario. After the growing pains work themselves out and these new towers are delivered, we really will be sitting pretty and those who thought to buy in during the growing pains will have fatter pockets to show for it. To speak more specifically about an investment or if you need/wish to move, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com. We would be honored to assist you. Knight Frank Prime Global Cities Index Q1 2023 via Mansion Global