THE REAL STATE OF REAL ESTATE
MAGIC MARKET, MAGIC C I T Y INSIDE MIAMI’S REAL ESTATE IN 2014
™
Opulence International Realty (OIR) proudly presents its first annual Miami consumer market report. Our goal is to take a closer look into what makes Miami the “Magic City” and present key takeaways relevant to buyers and sellers alike. The objective in mind while creating this report was to provide you valuable information on each of our city’s neighborhoods and clarify the “real state of real estate” amongst these communities. We believe the more relevant information you have about today’s market, the better we can do our job when working with you. After all, it is about loving where you live, and we at Opulence International Realty hope this consumer market report can serve as a guide to achieving just that. Keeping in mind that we live in a global market (but sell locally), we take a look at the “Magic” that makes up Miami. It is clear to us that it’s the people, the businesses that make up our neighborhoods, the enormous impact of the arts and culture, and, of course, the endless gourmet and innovative eateries that are defining the special brand of “Magic” that only Miami can offer. I hope you enjoy reading this consumer market report as much as we enjoyed bringing it to you. With all the amazing real estate opportunities available right now, our priority is to share the information that matters to you most. For an even more detailed look into the numbers and communities in which you are interested, please visit our report site at oirfl.com/reports or contact us on our website via live video chat. We wish you all a prosperous 2015.
Cheers,
James C. Hoffman President and Broker Opulence International Realty 305.615.1376
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Miami has been dubbed the hottest market in the country, just behind New York, by prolific developers like Don Peebles, Richard LeFrek and Ronald Krorngold. Why? There’s a special mix of elements coming together to create the magic market in the Magic City. Miami has long been seen as the capital of South America. Our stable government and banking system has provided a safe haven for the unstable currencies of our international neighbors to the south. As our city continues to re-invent itself, Miami has become even more attractive to the South American buyer, as well as, buyers from Canada, Mexico, Europe and Russia. Chinese buyers are just beginning to learn about our market. In a recent forum held by the Real Deal South Florida, our lack of state income tax was cited as a major attraction. Wealthy individuals from high tax states, like New York, can afford to purchase expensive homes and because of our tax structure, those homes will pay for themselves in a few years.
It seems Miami has shed its “Scarface” image and has become the fresh “it” place to be. Some of the greatest minds in architecture and design are unleashing their genius on our streets. Distinctive communities like Wynwood are home to a new creative class, bringing us substance. Art Basel has exploded into a mega event for the world’s finest collectors and art lovers. The restaurant world is ablaze. A new tech culture is growing. The diverse population in Miami has the highest concentration of foreign-born people in the U.S. The town has a palpable vibrancy it hasn’t felt in years. Finally, behind the glitz and manmade artifice, Miami holds a natural beauty unsurpassed. The city rests on the banks of an aquatic preserve, with Biscayne National Park to the south, home of the northern portion of the third largest living coral reef in the world. Nature, pristine beaches, and one of the most culturally diverse international cities - Miami has it all.
B O O M TOW N :
HIGHEST startup rate per capita of any large city Source: Kauffman
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Photography by Hector Sotelo
I see a tremendous wave of development between now and 2025. - Jack McCabe, Economist
A N EW M IAMI
7th top global city for wealth Source: Knight Frank
4
BIRD’S EYE VIEW POPULATION
BUSINESS
In summer 2014, Florida overtook New York as the third most populated state behind Texas and California. Its annual population growth rate is the seventh highest in the U.S, a recent increase due to 73.9% net migration, about 50% of which is international.
“The goal is to make Miami a place where ideas are built.”
ALL EYES ON MIAMI
Miami-Dade County is the most populous and among top 5 fastest growing in Florida. Population growth rate
8%
4.9%
Miami’s Central Bus. District population: 14,358
Greater Downtown Miami population: 80,750
RENT 35%
OWN 50%
VACANT 15%
HOW DOES THE CITY OF MIAMI LIVE? RENT 62%
OWN 24%
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In 2013, Miami ranked #1 for the most entrepreneurs creating startups, beating Los Angeles and Houston. The Knight Foundation has made over 50 investments in entrepreneurship “as a tool to build community [and] bind people to each other and to our rapidly evolving city.” Venture-capitalism has tripled in Miami companies, jumping to
HOW DOES MIAMI-DADE COUNTY LIVE?
VACANT 14%
Sources: Florida Office of Economic and Demographic Research, US Census Bureau, World Population Review, Downtown Development Authority
ARTS & CULTURE The Miami art scene is exploding. Here are a few cultural highlights.
– Matt Haggman, Knight Foundation
.8%
City of Miami population: 417,650
.9%
Miami-Dade County population: 2.617M
Florida population: 19.789M
1.36%
EDUCATION
Florida International University has grown to be the 5th largest public university in the United States. VISUAL
The University of Miami was named one of the top 50 national universities by US New & World Report: Best Colleges Ranking 2014.
$ 8 63
Art Basel – Premiere Art Show with 260 exhibitions from 31 countries, an estimated $500M in economic impact and 75,000 visitors Wynwood Art District – Home to graffiti art by muralists from around the globe, galleries, art complexes, studio spaces and new restaurants
MILLION in 2014
Miami’s the second most popular financial hub next to New York City and has long been established as the banking capital of Latin America, with 53 banks on Brickell Avenue. A growing number of large hedge funds are moving here, spurred by an attractive tax structure, proximity to Latin America and rising quality of life.
“Florida’s businessfriendly policies, which are so different from California’s, offer the perfect environment for us as we expand…I’d expect to see more firms like Universa voting with their feet and relocating to a more hospitable business and tax environment.” – Mark Spitznagel, CIO of Universa Investments (a resident of Coconut Grove), has roughly $2 billion in assets. Sources: 2013 Kaufman Index of Entrepreneurial Activity, South Florida Business Journal, Business Insider, Miami Herald, Price Waterhouse Coopers
Time Magazine put Dr. Eduardo Padron, President of Miami-Dade College with the “10 Best College Presidents” in the country.
PERFORMANCE
Adrienne Arsht Center: offering 300+ shows a year with opera, Broadway touring companies, concerts, and more. New World Symphony: housed in the Frank Gehry designed New World Center. Miami City Ballet: Worldclass company with 11 world premieres and commissions from choreographers like Twyla Tharp. CULINARY
Among all large metro areas in the country, Miami clocked the fastest increase in well-educated young adults living in close-in urban neighborhoods, according to economist Joe Cortright. Sources: Downtown Development Authority
“There are more restaurant openings in 2015 than the last four years combined.” – John Kunkel, CEO of 50 Eggs. Turn to page 12 for Kunkel’s full interview
Miami is in the midst of a massive Renaissance with growth across all levels.
BUILDING
MIAMI INT’L AIRPORT
$11B
8
4 2
$6B BRICKELL
6
$3.5 B
Miami Int’l Airport (MIA) is ranked #2 for int’l passengers behind New York’s JFK. Total arrivals increased 1%, while domestic passengers increased 2.4%.
PortMiami is in the midst of $2B in improvements. It won 2015’s “Best Home Port” Award, contributes $27B annually to the local economy and supports more than 207,000 jobs.
Overnight visitors to Greater Miami and the Beaches gained a point in 2014, with an average occupancy rate of 78.3%.
increase in cruise passengers since 2013
$2B
NEIGHBORHOOD
RESIDENTIAL
206
40.9M domestic and int’l passengers flew through MIA in 2014
COMMERCIAL
MIA completed a $6.4B capital improvement plan including new South and North Terminals. The North Terminal is American Airlines’ Latin American and Caribbean hub, operating 300+ daily flights and serving 25M+ passengers a year. A 72-lane passport control hall can serve 2,000 passengers an hour.
100 airlines now operate at MIA, surpassing all other U.S. airports.
All Aboard Miami, a privately owned express, intercity passenger rail connecting Miami, Fort Lauderdale, Palm Beach and Orlando will break ground in 2015.
of visitors were international.
PortMiami is known as the Cruise Capital of the World and broke the world record in 2014, processing 4.8M multi-day cruise passengers. Cruise passengers increased 27% since 2013. Thirteen cruise lines make PortMiami their home port.
MIAMI BEACH 44%
DOWNTOWN 18%
NEAR AIRPORT
17%
Since 2009, PortMiami cargo traffic has increased by 13% and is expected to double in the next decade with the expansion of the Panama Canal. Capital improvements include the new tunnel (completed) and the Deep Dredge Project, deepening and widening Government Cut, making way for new Panamax ships.
9.1% room rate increase in 2014 In 2014, Miami’s Average Daily Room rate increased 9.1%.
TOTAL TRADE BY REGION DID YOU KNOW?
INFRASTRUCTURE
50%
North Dade / Sunny Isles 11% South Miami-Dade 4.7% Coral Gables 4.2% Key Biscayne 1.3% Doral 0.9% Coconut Grove 0.5%
New condo towers are in varying stages of planning and construction in Miami-Dade County, which represents 72% of the South Florida preconstruction market.
There is currently 424,998 square feet of office space under construction in Miami.
About
WHERE THEY STAY
0
Source: Cranespotters
HOSPITALITY & TOURISM
27% DORAL
10
DOWNTOWN MIAMI
DEVELOPMENT $ (BILLIONS)
12
EAST EDGEWATER, MIDTOWN, DESIGN DISTRICT
It’s no secret Miami is in the midst of a building boom. The chart below illustrates the development dollars going into four growing neighborhoods.
PORT OF MIAMI
One out of every
4.1 jobs
EUROPE 9%
CHINA 32% LATIN AMERICA & CARIBBEAN 52%
in the local economy is contributed by MIA and aviation industries (272,395 jobs in total). Sources: Greater Miami Convention and Visitors Bureau, Miami Dade County, Miami International Airport, Miami Dade Aviation Department, ExMiami, CBRE, Miami Herald
Sources: PortMiami, Greater Miami Convention and Visitors Bureau
New York is the #1 domestic feeder market to Miami, followed by Chicago, Philadelphia, Boston, Atlanta, Washington, Dallas, Los Angeles, Detroit and Houston. Brazil is the #1 international feeder market to Miami, followed by Canada, Argentina, Colombia, Venezuela, Germany, England, the Bahamas, Ecuador and France. Source: Greater Miami Convention & Visitors Bureau, Miami Herald, Miami Today
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ANALYZING THE
OPULENC E MARK E T We’ve targeted our market analysis to houses and condos valued at $500,000 and above in Miami’s most sought-after areas: the “Opulence Market”. AREA
POPULATION
SIZE
FOUND ON PAGE
South of FIfth
5,309
0.35 sq mi
15
Miami Beach
85,717
18.7 sq mi
17, 18
Surfside
5,954
1.0 sq mi
19
Bal Harbour
2,613
0.44 sq mi
20
Brickell
32,489
0.43 sq mi
23
Downtown
14,358
0.8 sq mi
25
East Edgewater
15,434
0.4 sq mi
26
Northeast Corridor
12,731
2.8 sq mi
29
Aventura
37,262
2.3 sq mi
30
Sunny Isles
13,416
1.4 sq mi
31
Golden Beach
951
0.3 sq mi
32
Coral Gables
49,631
13 sq mi
36
Coconut Grove
31,905
5 sq mi
37
Pinecrest
19,046
7.6 sq mi
40
Key Biscayne
12,832
1.4 sq mi
43
Fisher Island
222
0.34 sq mi
46
Indian Creek Island
90
0.4 sq mi
47
Sources: City of Miami Beach, City of Aventura, Downtown Development Authority, United States Census Bureau, Realtor.com
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MI A MI B EACH 1 2 3 4
MIAM I C E N T R A L
9
11
5 Brickell 6 Downtown 7 East Edgewater
South of Fifth Miami Beach Surfside Bal Harbour
MI A MI N O RTH
10
MIAM I SOU T H
8 Northeast Corridor 9 Aventura 10 Sunny Isles 11 Golden Beach
12 Coconut Grove 13 Coral Gables 14 Pinecrest
4 16
3
8
I SL A N D COMMUNITIES 15 Fisher Island 16 Indian Creek 17 Key Biscayne
2 7
6 1 5
15
CORAL GABLES
12 13
17
14
DID YOU KNOW? Biscayne Bay is home to the largest marine park in the U.S national park system and the 3rd largest living coral reef.
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THROUGH THE YEARS Miami isn’t shy. She makes an entrance and her market trends are no exception. The graph below illustrates median housing sales prices over the last fifty years. Seven years ago the Miami market took a historic dive from its recordbreaking height. But no less dramatic has been its bouncy recovery, surpassing the nation’s averages.
New banking regulation and deposit structures for new projects are safeguarding a greater market sustainability for the future, but these safeguards don’t seem to be slowing her down. Miami is back at it, breaking sales records, most noticeably in the luxury market.
2 014 AT A G L A N C E Nationally, combined housing sales volume rose 3.5% in 2014. The national median sales price was $209,500 at year-end, a 6% increase from last year, according to the NAR. In Florida, sales volume for single family homes rose 8.1% while condo sales decreased 1.2%. Median sales price for single family homes was up 6.9% to $185,000 while condo prices rose 8.4% to a median price of $149,000.
As prices have continued to rise, so has inventory from sellers wishing to capitalize on the market. Active inventory was up 11% from 2013. Single family home inventory increased 4.7%, while condo inventory was up 14.6%. This has resulted in a seller’s market for single family homes and more of a balanced market for condos.
In Miami, more single family homes were sold than ever in history, increasing 4.8% to 13,521 sales for 2014. Condo sales decreased 4.3% to 16,409 total sales. Combined, total sales decreased a minimal .4% from last year. Year-end sales prices increased 8.9% for single family homes and 8.6% for condos.
1991: Norman Braman purchases 1 Indian Creek for $3.9M, the highest price then in MiamiDade County
1980: Mariel Boatlift 1987: Miami Tower built 1975: The BeeGees move to Miami
1970s: Richard Nixon keeps Winter White House on Key Biscayne
Me d ian Sales P r ice: Hom e s an d Con dos, 19 6 5 - 2 01 4 2007: Median sales price hits $315,000 in Miami-Dade County
2014: Faena House’s Penthouse rumored to be under contract for $60M
2006: Miami Heat wins NBA Finals over Dallas Mavericks
JANUARY 2014: Opulence International Realty opens its first office location
2013: Alex Rodriguez sells his Miami Beach mansion for $30M
2002: Art Basel begins 1992: Madonna buys her Coconut Grove mansion for $4.9M, the highest price then in Miami-Dade County
1995: Fisher Island sets record for most expensive condo at $5.8M
1993: Premiere issue of Ocean Drive Magazine
OCTOBER 2010: 1999: American Airlines Arena opens
South Florida Opulence Magazine’s premiere issue unveiled on Fisher Island
SINGLE FAMILY HOMES: 2014 Market Overview, Miami-Dade County Miami-Dade County’s Single Family Home market enjoyed a record breaking year in 2014 with a total number of sales of 13,521, more than ever before in history. Supply is rising to meet demand, but prices are rising faster, making the market favor sellers. The pace of the market has slowed slightly, as properties are selling nearly 10% slower than they did in 2013, and at about 95% of the asking price.
AND
DEM
PLY
SUP
CARVING UP THE LUXURY MARKET Which single family home price point sold most in 2014?
% change vs. 2013 year-end inventory (supply)
6,265 $2
M
-$
3M
number of sales (demand)
$500 - $699K
13,521
$1M - $2M
$700 - $999K
median sale price
$245,000 $3M - $4M $4M - $5M $5M - 7M $7M - $10M
$10M - $15M $15M - $20M $20M+
median days on market
45
4.7% 4.8% 8.9% 9.8%
At the current sales pace, there is a 5.6 month supply of single family homes. HOMES, OPULENCE LUXURY MARKET Priced $500,000 and up in select areas (see page 5 for area list) % change vs. 2013 number of sales (demand)
1,347 median sale price
$1,238,031 avg days on market
87 11
-2% 2.3% 2%
CONDOS: 2014 M a rket Overview, Mia m i-Da de County Miami-Dade County’s Condo resale market enjoyed its second strongest year in history in 2014, despite competition from new construction supply, with a total number of sales at 16,409. Demand is decreasing slightly, but prices and supply are rising, balancing out the market between buyers and sellers. Condos are selling more slowly than in 2013 and on average they are selling for about 95% of the asking price.
% change vs. 2013 year-end inventory (supply)
11,430
SUPPLY
LUXURY CONDO APPRECIATION RATES 2013 - 2014 comparison
14.5%
43%
CONTINUUM 1 CONTINUUM 2 APOGEE
13% 6% 17%
MURANO PORTOFINO
number of sales (demand)
16,409
$190,000
39%
FISHER ISLAND
-4.3%
17%
SETAI W SOUTH BEACH
8.6%
57
4% 17%
EPIC RESIDENCES ICON BRICKELL
3%
3%
PARAMOUNT BAY
-2%
median days on market
24%
ICON SOUTH BEACH
MARQUIS
median sale price
DEMAND
FOUR SEASONS RESIDENCES ST. REGIS BAL HARBOUR
24%
-14%
12% 33%
ACQUALINA JADE OCEAN
20%
At the current sales pace, there is an 8.4 month supply of condominiums. CONDOS, OPULENCE LUXURY MARKET Priced $500,000 and up in select areas (see page 5 for area list) % change vs. 2013 number of sales (demand)
1,562 median sale price
$1,082,813 avg days on market
93
-5% 1.8% -2.9% 12
- John Kunkel
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MI AM I BEACH
“
“
I literally worked every position from open to close. What that allowed me to do was really understand the Beach. I had no budget, so I learned how to guerrilla market door to door. Just by doing my job I got to be a superstar on Miami Beach…just by remembering people’s names and what they eat. Those little things are what build a business.
Portrait Photography by Hector Sotelo
R E S I D EN T I NTE RVIE W
J O H N KUNK E L The CEO of 50 Eggs sits down to tell us why the beach is a special place to live, what drives him nuts, and what’s next for the Miami restaurant scene.
J
ohn Kunkel owns and operates some of Miami’s most popular restaurants: the James Beard nominated and award-winning Yardbird Southern Table & Bar (now opening a second location in Las Vegas), Khong River House, Swine Southern Table & Bar and Patpong Road, and is also known for creating and developing the fast casual Mexican chain, Lime Fresh Mexican Grill, which he sold to Ruby Tuesday in 2012 for a cool $24M. His company, 50 Eggs, was named one of The Coolest Multiconcept Companies in the Land by Restaurant Hospitality Magazine.
surround myself with people smarter than myself, always the key to business. But for me, even starting from the very first business, there was an unwavering commitment to do it right.
that just makes people feel good? And if you don’t enjoy that, you are in the wrong business. It’s not about making money. You are truly in the service of others and if you don’t get that, then it doesn’t work.
For instance, I think service has been one of
OIR: What do you see in the future for 50 Eggs and for the Miami Restaurant scene? This year there are more restaurants opening than the last four years combined. It raises the bar for Miami. There is even talk of Michelin coming to Miami. To have them come put the stars out, that would be a great motivator. Selling Lime was a strategic move on my part because now we are in such an incredibly lucky place where I can conceive of a restaurant and open it myself. It is the creative freedom I have dreamt of having all my life.
OIR: Are you a Miami native? JK: No, I’m not. I’ve been here almost seventeen years. My wife and I came down here from Georgia one cold, wet, rainy winter to visit family and decided we didn’t want to go back to the cold, wet, rainy winter. I have been a water nut since I was a kid. My father was a Navy SEAL and there is nothing like the super blue water of Miami Beach. A lot of people don’t know Miami Beach is such a great residential area. I look out my back door every morning and see dolphins, manatees and stingrays. I could never trade that for anything. I travel a lot these days for my job, but I can’t wait to get home. There is just no place else like it anywhere in the world, which is why, I guess, everyone is coming here. OIR: You’ve received some huge accolades, among them, South Florida Entrepreneur of the Year…what’s your special sauce? JK: Gosh, you know, I don’t have one. I
our downfalls in Miami Beach. It is one of the things I focus on most. To this day, it drives me nuts when a hostess won’t say hello. I explained to a group of our new trainees the other day, “Have you ever been in love?” And everybody raised their hands, and I said, “Have you ever wanted to do something for someone, just to make them feel good? Just to leave them smiling?” That’s what service is. What can I do during the dining experience
We recently bought and renovated a MiMo hotel on Biscayne Boulevard with this grand vision of wanting to have a great office space and “test kitchen.” We decided we wanted to do something community based, so it’s aimed toward the hospitality industry to channel and bring us all together. We want to bring in cheese makers and wine makers, but open it to the community. It’s a good recruiting tool. I am super excited about having local farmers come talk about what they do all day and really understanding the story of specialty food artisans. The restaurant business needs to know and understand where our food comes from. To me, it’s kind of the fabric of America. To learn more about what John is up to, log on to www.50eggsinc.com.
SOUTH OF FIFTH CON DOS
S
outh of Fifth is its own extraordinary market which bears targeted examination. The numbers below reflect all condos priced from $500,000 and up, which saw an overall decrease in sales price and steady increase in numbers of sales. These numbers do not impress like those of the ultra luxury condominiums for which South of Fifth is known. See the table on the opposite page for the jaw dropping appreciation rates in the last year alone. Keep in mind, these numbers do not account for the leverage of a mortgage. In addition, the resale numbers below do not reflect new development sales South of Fifth. These units have sold out in a matter of months with prices between $1,400 and $2,600 per square foot, adding 120 units to the area’s density. MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
7%
223 median sale price
-4%
$1,150,000 median sale $/sq ft
6%
$888 average days on market
93
15%
year-end inventory
221
BEST SELLER 2 01 4 TO P SA L E
100 S Pointe Dr #3602, Continuum South
$27,500,000 12/17/14 ($3,342 psf )
Source: Southeast Florida Regional MLS
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SOUTH OF FIFTH CONDO APPRECIATION RATES 2013 - 2014 comparison
43%
CONTINUUM 1 CONTINUUM 2 APOGEE
13% 6%
MURANO PORTOFINO
17% 24%
ICON SOUTH BEACH MURANO GRANDE
17%
PORTOFINO TOWER
13%
16
MIAMI BEACH
MARKET AT A GLANCE: 2014 STATS
HOMES
M
iami Beach single family homes experienced a shoring up of the market as the number of sales decreased slightly from 2013, but prices continue to increase significantly. Inventory of home listings continues to rise helping to temper the pace of this fast-moving market. 2014 saw significant sales such as 30 Star Island Drive, pictured below, which sold for the highest price ever paid on the exclusive Star Island. The Florida Department of Transportation has embarked on a $32M drainage project at Alton Road to alleviate the risk of rising sea levels, expected to be completed in August 2015.
% change vs. 2013 number of sales
318
median sale price
$1,332,500
median sale $/sq ft
$498
average days on market B E ST S E L L E R
96
2 014 TOP SA L E 30 Star Island Drive
$28,144,150 4/3/14 ($1,759 psf ) Source: SEF Regional MLS
17
year-end inventory
259
-8% 16% 21% 14%
MIAMI BEACH
MARKET AT A GLANCE: 2014 STATS
CON DOS
M
iami Beach condos also experienced a slight slowing of sales and pace of the market in 2014, but prices continue to rise. This report examines condos priced from $500,000 and above, but the ultra luxury condo market, which examines the top 10% of the market, saw an increase in median sales price of 47.2% from 2013. The appetite for luxury on Miami Beach is voracious and is also being met by extraordinary new sold out condo projects like Faena House and Miami Beach Edition, pictured below.
% change vs. 2013 number of sales
590 median sale price
$790,000 median sale $/sq ft
$655 average days on market
71
-4% 1% 9% 4%
B E ST S E L L E R 2 014 TOP SA L E 2901 Collins Ave PH-1 Miami Beach Edition
$17,500,000
year-end inventory
1,596
on 12/3/14 ($3,807 psf ) Source: SEF Regional MLS
18
SURFSIDE
MARKET AT A GLANCE: 2014 STATS
HOMES
P
erhaps spurred by the stunning Four Seasons development, The Surf Club, designed by legendary architect Richard Meier, the town of Surfside enjoyed a 118% increase in single family home sales in 2014. The time it takes to sell a home also decreased 18% from 2013 to 76 days. The Surf Club project, which will be completed in 2016, will incorporate some of the existing historic structure in homage to its illustrious past as host to celebrities and heads of state including Winston Churchill, who used to paint watercolors on its beaches.
% change vs. 2013 number of sales
48
median sale price
$572,000
median sale $/sq ft
$311
average days on market B E ST S E L L E R
76
2 014 TOP SA L E 1220 Biscaya Dr
$4,000,000 2/12/14 ($627 psf ) Source: SEF Regional MLS
19
year-end inventory
19
118% 0.4% 5% -18%
BAL HARBOUR
MARKET AT A GLANCE: 2014 STATS
CON DOS
T
he Bal Harbour condo market is holding strong with a median sale price of $945,000 up 9% from 2013. Remarkably, sales volumes of condos over $500,000 was exactly the same in 2013 and 2014. Significant commercial transactions in the neighborhood in 2014 were the sale of the St. Regis Bal Harbour by its owner, Starwood Hotels, for $213M and the acquisition of One Bal Harbour by the owners of the Ritz Carlton, South Beach. The entire 25th floor penthouse at the St. Regis sold for $22,750,000 in May 2014.
% change vs. 2013 number of sales
110 median sale price
$965,000 median sale $/sq ft
$594 average days on market
102
NO CHANGE
9% 11% 10%
B E ST S E L L E R 2 014 TOP SA L E 9701 Collins #2501 St. Regis Bal Harbour
$22,750,000
year-end inventory
161
on 5/8/14 Source: SEF Regional MLS
20
21
- Brian Alonso
“
“
When you can tell a story about a building or a neighborhood, it makes it better.
M I A MI C ENT RAL
RE SI D EN T I NTE RVIE W
ALO NS O B ROTHE R S Brothers Randy and Brian Alonso, owners of Lost Boy Dry Goods, sit down to tell us about Downtown Miami’s vibrant energy, preserving Miami’s history, and making the area better and better.
B
rothers Randy and Brian Alonso have deep roots in Downtown. La Época, the iconic department store on Flagler Street, was founded by their grandfather and great uncle in Havana, 1927. Three generations later, the brothers opened Lost Boy across the street, a Western-inspired denim and dry goods store with a unique hipster feel. Randy is a member of the Downtown Miami Partnership, while Brian is President of the Dade Heritage Trust, Board Member for the Miami Dade Homeless Trust, and Chair of the Flagler Street Task Force that’s about to embark on a $13M facelift of Miami’s historic main street.
lose that grittiness? RA: No, I think we have a great opportunity. You’ve got Brickell CityCenter on one side and Miami World Center on the other, with big anchor stores. You have two giant retail developments that will absorb every major retailer. That leaves anyone on Flagler something unique. Something cool. There’s nowhere else in Miami with historic buildings and vertical infrastructure on the
RA: This is my tenth year. I grew up in Coral Gables, went to college in North Carolina and immediately moved home. Within a month, I went to One Miami and have lived here ever since. OIR: What are the biggest changes you have seen over those ten years?
OIR: Do you think Downtown is going to
OIR: How has the process been working with developers and preserving Miami’s heritage? BA: From a developer perspective we see a lot of respect for historic preservation. We have a 2,000 year old Tequesta Indian village, the site of Fort Dallas during the Civil and Seminole wars, and where Henry Flagler had the Royal Palm Hotel, the birthplace of modern Miami, all in one place. They’ve discovered 13 circles and we’re building a condo on top of all this. Three circles will be preserved. Two will have glass boxes around them so people can see them in the lobby of the condo. Artifacts will be relocated to a plaza between Met 1 and Met Square. From a historic preservation standpoint, what we learn from the Met Square site is we’re one of the oldest cities on the east coast. Telling that story makes us a better community.
OIR: How long have you lived in Downtown?
RA: The foot traffic and amount of people at any time of day. One of my favorite parts of living Downtown was, and is, the grit and the character. Soya e Pomodoro, one of my favorite restaurants and a pioneer here, used to do Cuban music every Thursday night. I’d walk 5 blocks from One Miami through barricades, barren streets with no cars, and hear a trumpet in the distance. Then you come to this beautiful, broken down arcade and feel like you’re in Italy. Taking that walk today, I’d pass people walking their dogs, going to the store…I’d get that ambiance, but it’s packed with people now. There’s energy.
$13M reconstruction of Flagler will go 16 feet down. You’ll still have lanes of traffic both ways. No more on-street parking. Date palms at intersections and live oak on the sidewalks will create a big promenade with shade. It’ll take about a year and a half.
OIR: Can you talk about your work with the homeless? water. There’s buzz about people who are pioneers in their own neighborhoods eyeing Downtown. There’s still that local flavor and it isn’t corporate mainstream. OIR: Tell us about the Flagler Street renovation. RA: The Flagler Street Task Force was aimed at improving the street. If we have a strong main street, we’ll have a strong neighborhood. The
BA: We had 8000 homeless and are down to 800 in Miami-Dade and 300 in Downtown over a 25-year span. We are down to the chronic, the hardest to rehabilitate. We’re doing a pilot program delivering medication to the mentally ill on the street so they’re cognizant enough to make their own decisions. People have a perception homelessness is our biggest challenge, but we have some of the lowest crime statistics here. Transportation is our biggest challenge.
BRICKELL CON DOS
B
rickell is the most populous area in Miami’s downtown with its highest median household income of $100,307, according to the Downtown Development Authority. Its resale condo market saw a contraction in sales volume, like much of the rest of the Miami market, and a modest increase in prices. At this moment, the Brickell area is overshadowed by the number of cranes in its skyline, as it is at the center of a $6 billion storm of new development being poured into its neighborhood. History is in the making as millions of square feet of residential, hotel, retail, and oďŹƒce space are being constructed.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-10%
343 median sale price
3%
$750,000 median sale $/sq ft
0.2%
$500 average days on market
82
-9%
year-end inventory
1,199
BEST SELLER 2 01 4 TO P SA L E
1643 Brickell Ave PH4701, Santa Maria
$6,500,000 on 5/5/14 ($1,032 psf )
Source: Southeast Florida Regional MLS
23
24
DOWNTOWN
MARKET AT A GLANCE: 2014 STATS
CON DOS
O
ne very positive aspect of the last market downturn was that it created aordable opportunities to purchase in the urban core of Miami and grow the heart of the city. Downtown, also known as the Central Business District, experienced the biggest leap in population, growing 215% from 2000-2010 and another 39% from 2010 to 2014. Both condo sales and prices are up in this exciting area. Laying between Brickell City Centre to the south and Miami World Center to the north, Downtown oers a historic flavor and distinct character all its own.
% change vs. 2013 number of sales
161 median sale price
$775,000 median sale $/sq ft
$512 average days on market
102 B E ST S E L L E R 2014 TOP SALE 200 Biscayne Blvd Way #5302 Epic Residences
$3,850,000 2/28/14 ($840 psf ) Source: SEF Regional MLS
25
year-end inventory
598
3% 10% 10% -6%
EAST EDGEWATER
MARKET AT A GLANCE: 2014 STATS
CON DOS
I
mpressively, the number of resales in the hot east Edgewater area has increased 35% from 2013, despite competition from at least 12 other major pre-construction projects transforming the area, such as Icon Bay, Biscayne Beach, the Paraiso Projects, Aria and The Crimson, to name a few. Sales prices dropped, although price per square foot increased slightly. The question is if the area will become too saturated because of the amount of new units which are slated to be released in 2016. Time will tell, but for now the neighborhood is definitely holding its own.
% change vs. 2013 number of sales
92 median sale price
$635,000 median sale $/sq ft
$473 average days on market
90
35% -7% 3% 29%
B E ST S E L L E R 2 014 TOP SA L E 2020 N Bayshore Dr #4005 Paramount Bay
$3,100,000
year-end inventory
366
6/30/14 ($1,151 psf ) Source: SEF Regional MLS
26
- Kathryn Mikesell
27
“
“
Miami’s the only city where as an individual, you can have a significant impact both with financial means and with doing.
MI AM I NORT H
Portrait Photography by Hector Sotelo
RE SI D EN T I NTE RVIE W
KATHRYN MIKESELL The Foundress of The Fountainhead Residency and Studios sits down to tell us what makes Miami’s art scene so unique, what we can learn from the artistic process, and why the world of art continues to amaze her.
K
athryn Mikesell and her husband Dan have created the Fountainhead Residency and Studios. The Residency is just that, a residence across the street from their own home in Morningside. The Mikesell’s provide flights and host artists to give them the space and environment to find a new source of inspiration (a fountainhead). Fountainhead Studios in Little Haiti provides affordable, flexible studio space for over 41 local artists. Their mission is to introduce visiting artists to Miami’s art community and supporters, to infuse Miami with artistic inspiration, and to enable our art institutions to realize more ambitious shows.
OIR: How did you get interested in art? KM: It came through [my husband], Dan. After we married, we put up two pieces he had and I said, “It’s incredible to live with these works. We have more empty walls. Let’s buy more art.“ We got involved with the local art community. We both traveled during the week for work, would visit galleries, and on weekends we’d
OIR: Can you comment on the changing art scene in Miami?
OIR: What brought you to Miami and this area?
KM: If you look at where Miami is today, we have the Arsht Center, New World Symphony, PAMM, Miami City Ballet, Florida Grand Opera, Young Arts - many of these have been around for some time, but weren’t on the forefront. Now they’re receiving the recognition they deserve.
KM: My husband. We were introduced over the phone for a business deal and it blossomed into a love affair. We didn’t describe ourselves physically because we were having an incredible time getting to know the individual, heart and soul, over the phone and through written correspondence. Then I came to Miami, we met for the first time and shortly after that, I moved here. Shortly after that, we married. The funny thing about Morningside is we actually started here. Soon after, we did what most young people do, and moved to the Beach. Eventually, we realized it wasn’t where we wanted to be long term. Everyone was partying all night and sleeping all day. We were like, wow, we have jobs. When we were looking for homes, we fell in love with Morningside. It’s so eclectic, in the homes, the people, age, race, everything. It gives our neighborhood such tremendous character. It’s this little paradise and is central to everything.
something about ourselves. It went beyond our wildest dreams. Our children are being shown the only limitations in life are those you put on yourself. What greater lesson? We bring people from around the world; our family has experienced diversity through individuals and sharing experiences. It’s caused us to answer questions early, “Why does Raul dress like a girl? He’s a boy, right?” People have a right to live life as they see fit. That doesn’t mean we can judge them. We can inquire. It’s fine to ask questions because you want to understand. For the kids to learn that has been amazing.
OIR: You’ve stepped into the artists’ world to find out what they need and provide it. You’re so engaged in the process. What have you discovered?
Miami’s the only city where as an individual, you can have a significant impact both with financial means and with doing. I don’t know another city that has the world’s attention, is still so young, and has such opportunity. And it’s beautiful. It’s one of the first things almost all the artists say, “Your light is so different from anywhere in the world.” The community is supportive of what we do and of the artists who come here. We don’t have hierarchical divides that exist in other art communities. Here there is a unique level of engagement because rising tides raise all ships. We want to work together to make a difference.
KM: Every artist we have to the residency has helped us look at life differently or realize
Learn more at fountainheadresidency.com and yourfountainhead.com
come back and share what we liked and visit more galleries or museums.
NORTHEAST CORRID O R
MARKET AT A GLANCE: 2014 STATS % change vs. 2013
HOMES
number of sales
S
ingle family homes in the Northeast Corridor are up on all levels. With so much development and buzz to the south, homebuyers may be attracted to these areas because they are just slightly away from the hustle and bustle. Bay Point, Morningside, Belle Meade and Keystone all showed strong sales as property values increase on the mainland. The resurgence of Biscayne Boulevard - with the renovation of its MiMo hotels and some terrific new restaurants - have given the area a hip, livable, “next thing� vibe.
195
median sale price
$840,000
median sale $/sq ft
$327
average days on market B E ST S E L L E R
78
2 014 TOP SA L E 4575 Sabal Palm Road
$6,150,000 4/30/14 ($1,302 psf ) Source: SEF Regional MLS
29
year-end inventory
116
19% 2% 6% 7%
AVENTURA
MARKET AT A GLANCE: 2014 STATS
CON DOS
A
ventura experienced a tightening of sales and price in the luxury market, as median price fell 8% to $680,000. In 2014 it took slightly less time to sell a condo and the median price per square foot increased. Aventura is home to several successful new developments, including Marina Palms Yacht Club and Residences, Echo Aventura, Bellini, and more on the way. According to Cranespotters, the current supply of condos represents nearly 10 months of inventory (less than six months typically represents a seller’s market, more than six months represents a buyer’s market).
% change vs. 2013 number of sales
320 median sale price
$680,000 median sale $/sq ft
$343 average days on market
84
-3% -8% 4% -3%
B E ST S E L L E R 2 014 TOP SA L E 6000 Island Blvd #1001
$3,450,000 10/17/14 ($840 psf )
year-end inventory
995
Source: SEF Regional MLS
30
SUNNY ISLES
MARKET AT A GLANCE: 2014 STATS
CON DOS
S
ales volume in the luxury market fell for condo resales in Sunny Isles, but prices rose at least 10% from 2013, continuing to show a strong market. Sunny Isles has no shortage of high-profile condo projects with 19 new towers and counting. Porsche, Chateau, Jade, and Armani are some of the big names lining the beach. Good buys in inventory from the last boom are also still available.
% change vs. 2013 number of sales
349 median sale price
$1,075,000 median sale $/sq ft
$640 average days on market
92 B E ST S E L L E R 2 014 TOP SA L E 17121 Collins Ave #4601 Jade Ocean
$7,070,000 2/14/14 ($1,085 psf ) Source: SEF Regional MLS
31
year-end inventory
777
-9% 10% 13% 14%
GOLDEN BEACH
MARKET AT A GLANCE: 2014 STATS
HOMES
% change vs. 2013
G
olden Beach is a very special area with its own golden market, which has catered to celebrity and wealth for decades. It is the only significantly sized area in Miami-Dade County where single family homes touch the sand. 2014 saw a decrease in the number of sales while prices remained fairly steady. The top sale of 2014 was 115 Ocean Boulevard, which closed for $12M. Currently, architect Chad Oppenheimer is designing a massive 23,000 square foot private residence at 699 Ocean Boulevard with a listing price of $36M.
number of sales
16
median sale price
$2,022,250
median sale $/sq ft
$517
average days on market B E ST S E L L E R
165
-11% 0.4% -18% -12%
2 014 TOP SA L E 115 Ocean Boulevard
$12,000,000 4/28/14 ($1,412 psf ) Source: SEF Regional MLS
year-end inventory
27 32
- Joseph Adler
33
“
“
I love our audience. I go to theatre all over the world and I can honestly say we have the best audience, and I’m not pandering.
MI AM I SOUTH
Portrait Photography by Hector Sotelo
RE SI D EN T I NTE RVIE W
J OS EP H A DLE R The award-winning Producing Artistic Director of GableStage sits down to tell us about pushing the envelope, loving his audience, and heading up his new passion project with the restoration of the Coconut Grove Playhouse.
J
oseph Adler doesn’t settle. Year after year, the award-winning Producing Artistic Director of GableStage has selected and mounted seasons of provocative, edgy plays to challenge and inspire his South Florida audience. Where other regional theatres might shy away from intense material, Adler has risked it and it has paid off. With 55 Carbonell awards (a Carbonell is our South Florida version of an Obie Award) and 187 nominations, Adler is a respected titan of the South Florida theatre community. It’s a natural fit that after 17 years at GableStage in the historic Biltmore Hotel, Adler has been asked to head the new Coconut Grove Playhouse.
of loyal supporters that make all the difference. People have this mistaken notion South Florida is filled with people who want to see the umpteenth production of “Fiddler on the Roof”. It’s not true. Our Sunday matinees that skew older are the hippest audience I have. I’ve done plays that really push the envelope.
OIR: What kind of support has the community provided you over the years? JA: Most of what’s happened in the Arts has happened because we have the greatest Department of Cultural Affairs of any county in the country. And then there are the tax dollars. People actually voted to float bonds to support the arts. That’s where the $20 million is coming for the new Coconut Grove Playhouse. [GableStage] also has a terrific core
JA: You have to have good relationships with people representing the plays and lobby early. When we started, we were the only regional theatre interested in those plays, so it wasn’t that hard. Now, other theatres realize it is possible, so I have to work a little harder. It’s rewarding to see there is an audience that appreciates sophisticated material. Last season I got the rights to Terrence McNally’s “Mother’s and Sons” while it was still on Broadway. Ours was the first production after its Broadway run. Two or three of the producers happened to be in town and saw our production. They got in touch with McNally and told him he must come down and see it. His production of “It’s Only a Play” with Nathan Lane and Matthew Broderick, is selling out on Broadway. He stood up at the end to applaud the actors. It was amazing.
OIR: Why did you choose South Florida and Coral Gables as a home for your theatre? JA: My family was in the restaurant business on Miami Beach and I moved here when I was a kid. After I went to school at Carnegie Mellon and NYU, I came back to make a low budget movie and decided to stay. I had an opportunity to work in film and theatre here. I’m glad I stayed because this town has changed so much in a positive way. It’s become a really exciting, cosmopolitan town.
runs. How are you able to get the rights over other theatres around the country?
OIR: What is your vision for the new Coconut Grove Playhouse?
A few years ago, we did a play called “Killer Joe”, which was very trailer park and had been a big hit in London. Our then Executive Director said, “Are you really going to do Killer Joe? With the violence and the sex? Here in Coral Gables? At the Biltmore?” I said, “Yes, and it’s going to be our biggest grossing show.” And it was. We proved there’s an audience that will support the kind of theatre that reflects what’s going on in the real world. OIR: You’re known for producing plays right after their Broadway and Off-Broadway
JA: The County is heavily involved and they have the bond money. I feel confident saying it is really going to become a reality. We’re going to have a 250-300 seat theatre. We’re working with the same consulting firm that worked on the Arsht Center to discuss our needs. OIR: What do you see for the future? JA: I see Miami becoming a great theatre town, like Chicago. More actors are staying here because there are new theatres where they can work. When that happens, more writers and directors will come to Miami as well.
35
CORAL GABLES HOMES
L
ike most of Miami, Coral Gables saw a slowing in the number of sales, but strong gains in price. An area 13 square miles, the Gables has a wide variety of properties from the historic houses that surround the Biltmore Hotel to the regal waterfront mansions of Tahiti Beach, Journey’s End and Gables Estates. Coral Gables’ downtown center, Miracle Mile, will be undergoing an $18M streetscape restoration with wider sidewalks, lighting, and plazas to build foot traffic and make the area more pedestrian friendly. Giralda Avenue, Coral Gables’ restaurant row and home to “Giralda Under the Stars” will also benefit from the renovation.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-12%
369 median sale price
10%
$860,000 median sale $/sq ft
7%
$349 average days on market
43
2%
year-end inventory
182
BEST SELLER 2 01 4 TO P SALE
4 Tahiti Beach Island Road
$18,000,000 7/8/14 ($848 psf )
Source: Southeast Florida Regional MLS
36
COCON UT GROVE HOMES AND CONDOS
P
rices rose for both Coconut Grove homes and condos in 2014. Two extraordinary new developments are bringing a lot of attention to the area and heralding a new resurgence in the Grove. Grove at Grand Bay (Sold Out) and Park Grove are stunning projects with major, worldclass talent behind them. Titans of the architectural world Bjarke Engles and Rem Koolhaas/OMA are designing each, respectively. One of the oldest areas of Miami, Coconut Grove, with its lush, leafy enclaves, offers its residents a relaxed, artsy feel. Coconut Grove is also home to Miami’s priciest listing, La Brisa, at 3551 Main Highway, listed at $65M. Originally built in the 1920s, the nearly 7 acre property sits on an ancient coral reef and has over 200 feet of waterfront. MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
CONDOS: 90 HOMES: 111
CONDOS HOMES
15% -2%
CONDOS HOMES
8% 5%
CONDOS HOMES
-4% 13%
CONDOS HOMES
-12% -5%
median sale price
CONDOS: $692,500 HOMES: $1,040,000 median sale $/sq ft
CONDOS: $338 HOMES: $401 average days on market
CONDOS: 59 HOMES: 52 year-end inventory
CONDOS: 78 HOMES: 92
BEST SELLER 2 01 4 TO P SA L E
3501 Anchorage Way
$5,460,000 8/1/14 ($620 psf )
Source: Southeast Florida Regional MLS
37
38
39
PINECREST HOMES
I
n Pinecrest the number of sales dipped slightly in 2014, but prices rose a significant 13% to a median price of $985,000. Characterized by its large acre lots, Pinecrest boasts some beautiful homes.
The Village of Pinecrest just received a significant grant from the Knight Foundation for local students to jam with jazz greats. The grant is to enable Miami-Dade County students to learn from masters of jazz by expanding Pinecrest Gardens’ popular “South Motors Jazz Series” to include a new mentor program.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-3%
216 median sale price
13%
$985,000 median sale $/sq ft
13%
$283 average days on market
65
7%
year-end inventory
126
BEST SELLER 2 01 4 TO P SALE
9030 SW 60 Ave
$5,500,000 6/1/14 ($444 psf )
Source: Southeast Florida Regional MLS
40
- Mayra Peña Lindsay
“
“
People choose to live here because of its island feel, its village feel. Everyone is approachable. You know your grocer, you know your cleaner. You know all the children in your child’s school. It has that hometown 1950’s environment.
ISLAND 41
CO M M U N I T I E S
Portrait Photography by Hector Sotelo
RE SI D EN T I NTE RVIE W
MAYRA PEÑA LINDSAY The new Mayor of Key Biscayne sits down to describe her vision for the future of “the Key”, why she loves working with residents, and what sets island life apart.
M
ayra Peña Lindsay is the new mayor of Key Biscayne. The first woman to hold the post, she was sworn in November 13th, 2014. Mayra grew up in Miami and was educated at Amherst College and University of Miami Law School. She and her husband have lived on Key Biscayne for 22 years and raised their two daughters there.
had a fire department but no EMT’s because posts were given to senior fire fighters who weren’t cross-trained. Our biggest need was for middle-aged people requiring emergency medical treatment. We’re fortunate to have negotiated to create our own fire and police departments and have
ML: My husband and I were trying to figure out where to start our lives as a married couple. Key Biscayne captured everything we were looking for. It’s therapeutic to get to and from work. You see water. You feel like you’re coming home to a resort. People are very active; there is a lot of running and cycling. You feel invested in the community. We look out for each other. Kids bike in the streets. They visit friends, climb trees, go fishing, to the beach. We have very low crime statistics for a number of reasons. There is one ingress and one egress. People are out and about. There is a citizens’ network.
ML: The island incorporated as a village about 23 years ago. Our mission was to “keep the village in the Village.” The biggest issues were unplanned building and zoning. We wanted autonomy in making those decisions. We were paying a tremendous amount in taxes and weren’t getting services we needed. We
OIR: What are some initiatives you’d like to implement as Mayor? ML: I continue to want to acquire green space and fields for children. The demographics have changed from empty nester, seasonal residents to an island full of families, which is wonderful. It’s a more dynamic place, but our needs have changed. We are an island paradise so [I am committed to] anywhere we can make things more native and beautiful. I am working to modernize our library, which would really meet the community’s needs. We’d like to be a model for issues such as beach erosion and storm surge.
OIR: What drew you to Key Biscayne?
OIR: How has the island changed since you’ve been here?
ML: But they’re engaged. It’s amazing to have residents come to a council meeting, raise a hand and say, “listen, I have an idea.” We get participation and passion. People are paying attention and they hold us accountable. It’s a nice dynamic.
OIR: How was the road to becoming the first woman mayor on Key Biscayne?
very low taxes. Our millage is 3.0, the lowest in South Florida. We’re very fiscally responsible and concentrate on giving really good quality core services. Our residents demand it and are willing to support it. OIR: I’m sure they demand it. Imagine the tax base of Harbor Drive [one of the most affluent streets in Miami-Dade County].
ML: A lot of strong female council members paved the way. Fabulous, passionate women helped in the incorporation process and in developing the community center cherished by our residents. It is interesting to me that currently I’m the only woman on the council. We have very highly educated residents. In fact, statistically, we have the most highly educated residents in the state. At the end of the day, I work very well with the group. I think running unopposed really says it all. It is a mandate. Fortunately, I had four brothers growing up, so it is nothing new.
KEY BISCAYNE HOMES AND CONDOS
M
edian sales prices are up for exclusive Key Biscayne Island’s single family homes and condos. Numbers of sales of houses increased, while condo sales tapered off slightly. With its fresh, tropical breezes, pristine beaches, and stringent zoning, Key Biscayne has retained its faraway resort feel while being so conveniently close to downtown. An exclusive interview with the island’s first female mayor, Mayra Lindsay, sworn in November 2014, appears on page 42. Key Biscayne is home to one of Miami’s priciest single family home listings, 775 S Mashta Drive, an 11,000 square foot home with 2,000 feet of waterfront listed at $60M, which was developed at the turn of the last century by the Matheson family. MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
CONDOS: 176 HOMES: 72
CONDOS HOMES
-13% 7%
CONDOS HOMES
14% -2%
CONDOS HOMES
8% 7%
CONDOS HOMES
35% 38%
median sale price
CONDOS: $955,000 HOMES: $2,252,500 median sale $/sq ft
CONDOS: $599 HOMES: $820 average days on market
CONDOS: 81 HOMES: 119 year-end inventory
CONDOS: 148 HOMES: 82
BEST SELLER 2 014 TO P H O M E SA L E
715 N Mashta Drive
$10,000,000 3/19/14 ($1,436 psf )
Source: Southeast Florida Regional MLS
43
44
45
FISHER ISLAND CON DOS
F
isher Island resale condos saw a decrease in number of sales, but its median price per square foot rose a whopping 39%. Fisher Island condos also took a quarter of the time on the market to sell than they did in 2013. The island is currently selling its first new development in seven years, Palazzo del Sol, with 47 units priced from $5M to $32M. The project features larger units, higher ceilings and more natural light. The building is projected to be completed in January 2016. The island has recently completed a $60M renovation to the Fisher Island Club.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-21%
31 median sale price
-3%
$3,100,000 median sale $/sq ft
39%
$1,179 average days on market
157
-24%
year-end inventory
49
BEST SELLER 2 01 4 TO P SALE
7600 Fisher Island Dr #7612
$12,500,000 1/28/14 ($1,786 psf )
Source: Southeast Florida Regional MLS
46
INDIAN CREEK HOMES
T
he ultra private and uber-exclusive Indian Creek Island saw two sales in 2014 compared to no sales in 2013. 12 Indian Creek closed for $28M, while 30 Indian Creek sold for $14.4M. There was also one land sale at 4 Indian Creek, which went for $21.8M. According to the Miami Herald, Indian Creek Island residents boast a combined net worth of 37 billion, which is quite a number when you consider there are only 90 of them. Properties on the island have been appreciating rapidly since the last downturn. In 2012 a county record was set when a Russian billionaire paid $47 million for the newly constructed 3 Indian Creek.
MARKET AT A GLANCE: 2014 STATS
number of sales
2 median sale price
$21,200,000 median sale $/sq ft
$998 average days on market
493
year-end inventory
2
BEST SELLER 2 01 4 TO P SA L E
12 Indian Creek Drive
$28,000,000 7/21/14 ($1,609 psf )
Source: Southeast Florida Regional MLS
47
48
49
MIAMI WATERFRONT HOMES MIAMI BEACH AND ISLANDS
W
aterfront homes on Miami Beach and the surrounding islands, including, Palm, Hibiscus, Star, the Sunset Islands, the Venetians, La Gorce, Indian Creek, as well as, Key Biscayne and Golden Beach, represent the top of the luxury market and are selling at a median price per square foot 47% higher than 2013. Median sales price jumped up 42% to $3,300,000. Sales volume has remained basically the same as last year, with a slight 1% decrease. Buyers are here and willing to pay what they have to for prime waterfront residences in Miami Beach and surrounding islands.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-1%
157 median sale price
42%
$3,300,000 median sale $/sq ft
47%
$875 average days on market
93
-26%
year-end inventory
178
BEST SELLER 2 01 4 TO P SALE
30 Star Island Drive
$28,144,150 4/3/14 ($1,759 psf )
Source: Southeast Florida Regional MLS
50
MIAMI WATERFRONT HOMES MAINLAND
W
aterfront homes on the mainland of Miami also rose in price, but not as dramatically as waterfront homes to the east, o the coast, on Miami Beach and the islands. While sales volume dipped a slight 3%, median sales price was up 10%. The median price for a Miami home on the water was $1,330,000 in 2014. Median sales prices in the posh waterfront neighborhood of Gables Estates remained constant from 2013 to 2014 at $5.3M.
MARKET AT A GLANCE: 2014 STATS % change vs. 2013 number of sales
-3%
205 median sale price
6%
$1,330,000 median sale $/sq ft
10%
$412 average days on market
92
-15%
year-end inventory
149
BEST SELLER 2 01 4 TO P SA L E
540 Casuarina Concourse sold for
$28,000,000 on 4/16/14 ($2,644 psf )
Source: Southeast Florida Regional MLS
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Miami-Dade
72%
20% Broward 8% Palm Beach
NEW CONSTRUCTION MARKET
MIDTOWN
DESIGN DISTRICT
NW 79 ST
This map represents a snapshot of some the more high-profile developments in Miami-Dade County. At the time of publication (Feb 2015), Cranespotters counts 237 towers completed, under construction or in pre-construction in South Florida. Miami-Dade County represents 72% of the new construction market.
7
95
8
6 25 43
27
28
1
NE 167 ST 35
AVENTURA
195
NORTH BAY VILLAGE
EDGEWATER
29
BI
S
C A YN
E
B L VD
Miami’s at it again with a flurry of new residential & commercial construction
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IN TR W AC AT OA E R S TA W AY L
ON THE MAP
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SURFSIDE
MIAMI BEACH
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SUNNY ISLES
BAL HARBOUR 32
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PALMETTO EXPY
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1. Park Grove 2. Merrick Manor 3. Brickell Flatiron 4. Paramount World Center 5. Aria on the Bay 6. The Crimson 7. Canvas 8. Hyde Midtown 9. Bath Club Estates 10. Muse 11. Residences by Armani / Casa
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12. Grove at Grand Bay 13. Echo Brickell 14. Nine at Mary Brickell 15. SLS Hotel & Residences 16. Brickell Heights 17. Brickell City Centre 18. Palazzo del Sol 19. One Ocean 20. 321 Ocean 21. Marea 22. Glass 23. Centro 24. One Thousand Museum 25. Icon Bay 26. Faena House 27. Paraiso 28. Biscayne Beach 29. Bay House 30. Ritz Carlton Residences 31. Surf Club 32. Fendi Chateau 33. Oceana Bal Harbour 34. Chateau Beach 35. Marina Palms 36. Jade Signature 37. Mansions at Acqualina 38. Porsche Design Tower
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SOUTH BEACH
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KEY BISCAYNE
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*Note: Locations are approximate. Not an accurate representation.
39. Oceana Key Biscayne 40. My Brickell 41. Brickell House 42. Residences at Miami Beach Edition 43. 23 Biscayne 44. Bellini Williams Island 45. Regalia
COMPLETED
16 17 41 15 40 14 BRICKELL 3 13
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DOWNTOWN
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UNDER CONSTRUCTION
COCONUT GROVE
PRE-CONSTRUCTION
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T HE D EVELO P ERS
All eyes are on Miami as experienced, well-funded developers are flocking in from around the world to get a piece of the development game. An old adage in the development world states “He who gets into the ground first, wins.” While land prices have skyrocketed in the last three years, developers are still willing to pay top dollar for Miami’s prime land sites. New deposit structures demand buyers ante up a hefty 50% cash up front. For most projects, that limits developers to the wealthy and uber-wealthy buyer. Developers have gone to great lengths to lure that type of buyer, from hiring artistic genius starchitects and designers (see opposite) to mounting art installations to partnering with high-end restaurants and private clubs to give their project cache. It’s working. The Penthouse at Faena House is rumored to be under contract for a record-breaking $60M. According to Cranespotters, the mean selling price per square foot for Miami pre-construction east of I-95 was $855 at the close of 2014.
“In Miami, you can buy a unit for a third of the price and the cost of living is half of what it is in New York. Miami has also grown culturally and has infrastructure in place that didn’t exist in the last cycle, making it a more attractive place to live.”
“The best positioned projects heading into 2015 will be those with strong sponsors and an active sales and marketing infrastructure...Projects offering a unique experience or location are also in high demand.”
Reid Baron, Eastview Development (Biscayne Beach)
Nitan Motwani, Miami Worldcenter Associates
“I’d be worried if interest rates go up and consumer confidence drops, but the U.S. Economy is doing well and the stock market is high. [New Yorkers] like Miami because it is an exciting place to have a home.”
“From an investment standpoint, Miami has never been stronger. We are one of a few top U.S. Markets that appeals to major onshore institutional investors, private equity, and international investors alike. We continue to attract Latin Americans in big numbers looking for a home for flight capital and a safe place to live. Europeans choose Miami for lower taxes and better climate. Northeasterners are looking to Miami for no state taxes, better climate and an emerging urban lifestyle.”
Richard LeFrek, (1 Hotels & Homes South Beach)
“We see [Wynwood] as the next Meat Packing District, Soho and Williamsburg. We believe we are coming in during the second inning of a nine-inning game. What you are seeing now is just the beginning of what Wynwood will be in 10 years.” Jonathon Yormak, East End Capital 55
Tom Roth, Grass River Property
T HE TA L EN T
Historically, Miami has seen some significant eras of architecture, from our own Art Deco on Miami Beach to the mid-century modern hotels and homes by visionaries like Morris Lapidus and Alfred Browning Parker. I.M. Pei made his mark on Miami with the iconic Miami Tower and the elevated courtyard in Downtown, housing the Miami-Dade Public Library, History Miami and the former Miami Art Museum. The latter was designed in conjunction with Philip Johnson. Today we seem to be in another era of historic architecture, kicked off in 2011 by Frank Gehry’s beautiful rendition for the New World Symphony on Miami Beach. The New York Times called the building and park, “part of an effort to break down the emotional distance between performers and the public, and in doing so to pump new life into an art form that is often perceived as stuffy and old-fashioned.” Architecture powerhouse Heurzog de Meuron followed with 1100 Lincoln, the chic parking garage at the foot of Lincoln Road that seems to have a perpetual party on its rooftop.
The Pritzker Prize is architecture’s most prestigious award, given annually to the architect “whose built work demonstrates a combination of...talent, vision and commitment, which has produced consistent, significant contributions to humanity.” SIX PRITZKER PRIZE WINNERS are currently at work on high-profile residential and commercial projects in Miami:
RICHARD MEIER The Surf Club “Most cities in America are so terrible…By comparison, Miami is a beacon.”
ZAHA HADID One Thousand Museum
HERZOG DE MEURON Jade Signature Perez Art Museum Miami (PAMM)
REM KOOLHAAS Park Grove Faena District
FRANK GEHRY New World Symphony YoungArts
NORMAN FOSTER Faena House
Other international renowned architects working on residential projects in Miami include Bjarke Ingels (Grove at Grand Bay), Enrique Norton (One Ocean and 321 Ocean), Carlos Ott (Echo Brickell and Muse), and Piero Lissoni (Ritz Carlton Residences). 56
THE BUILDINGS
Highlights from Miami’s pre-construction boom
ONE THOUSAND MUSEUM 1000 Biscayne Boulevard, Miami
Developer: 1000 Biscayne Group: Louis Birdman & Gregg Kovin Architect: Zaha Hadid # of Units: 83, 1 tower Price Range: $5.6M - $49M Completion Date: Q4 2017
PARK GROVE
2701 S Bayshore Drive, Coconut Grove
Developer: Terra Group & The Related Group Architect: Rem Koolhaas OMA # of Units: 270, 3 towers Price Range: $530,000 - $4.6M Completion Date: 2017
FAE NA H OU SE
3201 Collins Avenue, Miami Beach
Developer: The Faena Group Architect: Norman Foster # of Units: 47, 1 tower Price Range: $3M - $50M Completion Date: 2016 57
PARAMOUNT MIAMI WORLD CEN TER 800 NE 1st Avenue, Miami
Developer: Motwani, Falcone, Kodsi Architect: Elkus Manfredi # of Units: 479, 1 tower Price Range: $700,000s - $15M Completion Date: 2018
THE SURF CLUB
9011 Collins Avenue, Surfside - Miami Beach
Developer: Fort Capital Architect: Richard Meier # of Units: 285 Units, 5 Towers Price Range: $3.5M - $25.5M Completion Date: 2016
RESIDENCES AT ARMANI / CASA 18975 Collins Avenue, Sunny Isles
Developer: Dezer Development & The Related Group Architect: Cesar Pelli # of Units: 260, 1 tower Price Range: $1.35M - $5.6M Completion Date: 2016
ACKNOWLEDGEMENTS This project would not have been possible without the tremendous talents and research skills of our author, Jill Patterson, and our designer, Victoria Sampaio. Thank you both for your ability to see the vision and make it reality. I would also like to give a special thank you to my fabulous staff here at OIR. They truly are the differential in this business. Their hard work and dedication to each project and agent is exceptional. - James C. Hoffman, President and Broker of OIR Jill would like to thank her sources which include all the real estate journalists at The Real Deal, Miami Herald, South Florida Business Journal, Sun Sentinel, Cranespotters, Ex Miami, Curbed, Ocean Drive, as well as, John Shipley at the Miami Dade Public Library, Linda Fernandez at the Realtor Association of Miami Dade, the Downtown Development Authority, Miami Property Appraisers Office, the Greater Miami Visitor and Convention Bureau and all of her resident interviewees.
Creative Direction / Writing by Jill Patterson Art Direction / Graphic Design by Victoria Sampaio
Front cover image and neighborhood photography by Kevin Coster Back cover image by Hector Sotelo
©2015 Opulence International Realty. The material herein is produced for general interest only. Although high standards have been used in the preparation of the information, analysis and views presented, no responsibility or liability can be accepted by Opulence International Realty for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents.
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