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Argentines Are Becoming ‘Power Players’ In Miami Real Estate

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Emilio Palomo (the past chair of the Master Brokers Forum, an elite network of the top real estate professionals in Miami, and the owner/broker of Riteway Properties III) recently went to a party for the opening of a Miami Beach hotel.

He was not familiar with this particular hotel or the people behind it, and attended on the invitation of a colleague. After a few minutes, it became clear to him that most of the guests were from Argentina (or of Argentine descent), and he was not surprised to learn that the owners are themselves native Argentines who have been — somewhat quietly — buying and upgrading Miami Beach hotels for many years.

Emilio worked with buyers and sellers from around the world over the course of his 47-plus years in Miami real estate. He feels fortunate to live in a city that draws so much global interest, with buyers coming from Europe, Asia, Latin America, Canada, and (of course) the U.S. Many find our real estate prices to still be reasonably low compared to their home nations.

Some foreign buyers come here because of political instability and lack of security in their countries, others because of our weather, beaches and everything else Miami has to offer. Whatever the reason, Miami has become one of the most desired international destinations in today’s market for a permanent or second (or third!) home.

And while buyers from Russia, Brazil, Colombia and Venezuela have drawn the biggest headlines for their respective impacts, he believes that Miami’s Argentines have not received nearly enough attention for their significant contribution to the economy and real estate market.

Some of this may be due to the nature of Argentines themselves, who in Emilio‘s opinion and experience tend to be quite modest and discreet. Thanks to referrals from friends in the banking community, over the years he has built a solid base of Argentine clients, and become friendly with many of them. (His Cuban-American family has become close with one particular group for whom he sold and managed units, and recently joined them to make some amazing wine in Mendoza, Argentina.)

But it would seem that the days of Argentines flying under Miami’s “real estate radar” are in the past. Some of the city’s most visible and exciting new projects are being created by developers with deep roots in Argentina, including:

  • Mid-Miami Beach’s acclaimed Faena District, a six-block project that features luxury hotels, bars, condominiums, a cultural center and a retail complex, from the visionary mind of Argentine developer/artist Alan Faena.
  • The Aston Martin Residences, the car maker’s first branded condominium project, which recently broke ground. The 66-story building located at the mouth of the Miami River is being developed by G&G Business Developments, a Miami-based firm owned by Argentine supermarket magnate German Coto and his mother Gloria.
  • The Oceana-branded condominiums in Key Biscayne and Bal Harbour, created by Buenos Aires native (and international art collector) Eduardo Costantini.

In addition to these high-profile projects, observers may have noticed a quiet explosion of Argentine restaurants and other businesses in Miami over the past few years, reflecting the growing population of residents and visitors. From what Emilio has noticed, many of the wealthiest Argentines make their homes in Key Biscayne, but there are also many to be found in Aventura, Miami Beach, Brickell, Downtown, Midtown and Edgewater.

Unfortunately, not all news involving Argentine interest in Miami real estate have been positive.

Last month, The Miami Herald reported that former president Cristina Fernández de Kirchner was accused by the nation’s top anti-corruption official of secretly owning more than 60 Miami properties bought with “dirty money.”

While this item is concerning, Emilio believes that Argentina’s recent change in government, and the stability being demonstrated by its new reform-minded leadership, will put the country on a path toward sustained economic growth. This would obviously allow even more Argentine investment in Miami — the “clean” kind we very much prefer.

Emilio is looking forward to many more years of welcoming Argentines and others who continue to make Miami a dynamic, evolving, and truly international city.

 

Source: Miami Herald

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Nine Thousand Residential Units Planned For Doral

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With all the condo development going on east of I-95 in Miami-Dade County, what is happening in Doral?

Doral, a city of 50,200 residents, which was incorporated in 2003, is one of the strongest economic engines — and base for employers — in Miami-Dade County. This suburban city, located on reclaimed swampland located west of Miami International Airport, is known internationally for being home to numerous multinational operations, federal offices, a major golf tournament and most recently, the Miss Universe pageant.

Doral also has a reputation for offering reasonably priced housing options in Miami-Dade, aimed at primary users who are looking to live in a suburban setting near their jobs, in hopes of avoiding the area’s heavy traffic congestion.

In response to the projected demand for nearby housing, more than 9,000 new residential units — with 3,000 units currently under construction — have already been approved for this suburb, according to the city of Doral’s website. Currently, nearly 250 condo units are on the resale market in Doral at an average asking price of $214 per square foot as of Thursday, according to the Southeast Florida MLXchange.

In 2014, buyers purchased more than 320 condos at an average transaction price of $171 per square foot. A year earlier in 2013, buyers acquired more than 400 condos at an average asking price of $153 per square foot, according to the data.

Based on the 2014 sales pace of about 27 condo resales monthly, Doral currently has about 9.3 months of supply available for purchase. A balanced market is thought to have about six months of supply. More months of supply indicates a buyer’s market, and less months suggests a seller’s market.

The Doral market has an additional 191 townhouses available for purchase, at an average asking price of about $207 per square foot. Buyers purchased more than 235 townhouses, at an average price of $175 per square foot in 2014, compared to 285 townhouses at an average price of $161 per square foot in 2013. Currently, Doral has about 9.6 months of supply of townhouses available for purchase, based on the 2014 resale activity.

On the rental front, nearly 290 properties are currently available for lease at a median asking price of $1.43 per square foot monthly. Tenants leased more than 1,820 properties, at a median price of $1.36 per square foot monthly in 2014, compared to less than 1,500 properties at a median price of $1.32 per square foot in 2013. Doral currently has about 1.9 months of rental properties available for lease based on the 2014 leasing activity.

The unanswered question going forward is whether Doral has enough primary users to fill up all of the existing and new residential units that are currently available and planned for this suburban economic powerhouse.

 

Source: The Real Deal

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Courtyard Marriott Could Soon be Condos

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The Courtyard Miami Downtown, a 233-room Marriott hotel that sits on a prime 1.07-acre site in the heart of the urban core, is up for grabs.

CBRE is marketing the asset, which could be redeveloped into over 1,000 condo units under the Miami 21 zoning code.

CourtyardByMarriott4“This is an extraordinary location in the heart of Miami’s business district, directly between the new landmark All Aboard Florida Miami terminal, Miami Worldcenter and Brickell City Centre projects,” said CBRE vice chairman Robert Given, who is marketing the hotel on behalf of AVR Realty. The Courtyard Miami Downtown is located at 200 SE 2nd Avenue.

Miami’s hotel market  is one of the strongest in the nation, with a June year-to-date average daily rate (ADR) of $202.87, ahead of cities such as San Francisco and Boston, CBRE’s research reports. Meanwhile, luxury condominiums in Downtown Miami are commanding pricing in excess of $1,000 per square foot.

“Extremely high barriers to entry in a dense urban center, coupled with a booming residential and lodging market, make this property a one-of-a-kind investment opportunity,” says CBRE Hotels’ senior vice president Christian Charre. “The city’s current zoning code also allows for consideration of a high-return alternative—a rare chance to carve a new condominium community out of this saturated downtown core.”

A high concentration of class A office space in Brickell and Downtown surround the 13-story Courtyard by Marriott. Premier large-scale mixed-use developments, including Swire’s Brickell City Centre and the Met Miami projects are located within a short walk.

The site is also close to some of South Florida’s most recognizable attractions, including Bayside, American Airlines Arena, Miami Tower, the Port of Miami and Mary Brickell Village. Hotel visitors or condo residents would have quick access to Brickell Avenue, Interstate 95 and Interstate 395.

Given and Charre, along with Paul Weimer and Natalie Castillo of CBRE Hotels, and Gerard Yetming of CBRE’s Institutional Properties group, are marketing the asset.

 

Source: GlobeSt.

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