As Miami Developments Take A Breather, New Projects Are Rising In Nearby Cities
Both developers and buyers are taking a wait-and-see approach to the launch of new developments in Miami.
For developments that have broken ground and are moving forward, between 60% and 100% of the units have been sold, said Edgardo Defortuna, president and CEO of Fortune International Group, a real estate development, sales and brokerage firm founded by Defortuna.
At his company’s 192-unit Jade Signature development in Sunny Isles Beach, which is directly north of Miami Beach, “we sold $51 million worth of units in the first quarter,” Mr. Defortuna said. The building, which launched sales in 2013, is “95% or 96% sold out.”
“For Miami projects that have launched sales but not broken ground, sales are slow, with few exceptions,” Mr. Defortuna said. “They’re waiting for the rescue boat to come in and lift them out of the water.”
Carlos Rosso, president of condo development at The Related Group, said that sales have slowed compared to six months to a year ago.
“We were selling 30 units per week. Now we’re selling five, six or seven per week, but we’re still selling,” Mr. Rosso said. “Things are moving.”
Both Messrs. Rossos and Defortuna said, however, that the nearby Fort Lauderdale market has become increasingly attractive.
“We’ve been surprised by the numbers we’re getting,” Mr. Defortuna said. “The Fort Lauderdale absorption rates are as good as anything in Sunny Isles. Fortune International and The Related Group are teaming up to build Auberge Beach Residences & Spa right on the beach in Fort Lauderdale. The first tower is 95% sold and Tower 2 is 60% sold. The Fort Lauderdale airport is very convenient for people from New York and other U.S. cities.”
“Fort Lauderdale is also significantly less expensive than Miami. It’s one-third the price of South Beach,” Mr. Rosso estimated.
In Fort Lauderdale, 80% to 85% of pre-construction sales have been to U.S. buyers, compared to 15% nondomestic, Mr. Defortuna said. In Miami, that flips to 75% to 80% foreign sales and around 20% domestic. And that largely international market that’s key for Miami has been hurt by a strong dollar.
“We need the dollar to lower itself a bit compared to other currencies around the world,” Mr. Rosso said.
But there’s hope. Mr. Defortuna mentioned Argentina and Brazil as two countries whose buyers seem to be coming back.
“In Brazil, there is the perception that the Miami market is really attractive and it’s time to get back in,” Mr. Defortuna said.
He expects the Asian market to improve next year, too, with the addition of direct flights from select Asian cities to Miami.
“So far this year, Turkish buyers are a visible presence in the Miami real estate market since direct flights were launched late last year from Istanbul to Miami,” Mr. Defortuna said. “If you have direct flights, then you have the lifestyle and the convenience–that makes the decision to buy much easier.”
Here is a snapshot of some developments launching this summer in the Miami area.
PARAMOUNT Miami Worldcenter
1010 NE 2nd Ave., Miami
In early June, the highly anticipated PARAMOUNT Miami Worldcenter launched the sale of its exclusive Penthouse Collection Series.
The 26 penthouses will be located in the circular upper core of the 60-story high rise, the only residential tower currently for sale within the 27-acre mixed-use Miami Worldcenter site. The Penthouse Collection will consist of 18 large single-story residences and eight two-story duplex residences.
The penthouses feature sweeping panoramic views. The apartments include private elevator access and large entertainment spaces. The chef’s kitchens have 12-foot islands and the highest quality Gaggenau appliances, including a full-size wine cooler and premium induction cooktops.
Other elements of the four- and five-bedroom residences include 10-foot ceilings in all living spaces, expansive outdoor living rooms, and designer European kitchens and bathrooms complete with rain showers and spa tubs.
The development is currently under construction and will include retail, restaurants, office space, lush parks, galleries and nightlife when it’s completed in 2019.
Number Of Units: 500-plus, including 26 penthouses
Price Range: Residences from mid-$700,000s; penthouses from $3.5 million to $9.5 million
Developer/Architect: PARAMOUNT Ventures (Dan Kodsi, Nitin Motwani and Art Falcone)/Elkus Manfredi Architects
Apartment Sizes: 1,180 to 2,350 square feet, one- to three-bedrooms plus den; penthouse residences range from 3,500 to more than 6,000 square feet offering four- and five-bedroom layouts
Amenities: Debuting as the largest amenity deck in the country, the facility is be home to the tower’s resort-style pool, complete with floating pods and private bungalows, and a premier sports and entertainment complex that includes outdoor soccer fields, two tennis courts, a boxing studio, and a “jam room.”
2000 Ocean, Hallandale Beach, Florida
This boutique property will have 64 oceanfront units consisting of half-floor residences, full-floor penthouse residences and a duplex sky villa with private pool deck.
The large flow-through residences will feature 10-foot ceilings and private elevator landings, and extensive Atlantic Ocean and Intracoastal Waterway views through floor-to-ceiling windows.
All of the residences are exclusively designed by Minotti with custom kitchens by Minotti Cucine and Gaggenau appliances. Dornbracht bathroom fixtures and accessories will be in all of the bathrooms. Monterrey Marble flooring will be included throughout the residences, including terraces.
Services include a 24-hour dedicated valet, 24-hour security and a concierge director.
Number Of Units: 64
Price Range: Starting at $2.8 million
Developer/Architect: KAR Properties/TEN Arquitectos
Interior Design: Enrique Norten Minotti
Apartment Sizes: Half-floor residences have three bedrooms, three full bathrooms and one half bath, and private dining rooms, with 2,913 square feet of interior space and expansive east and west terraces. Full-floor residences have five bedrooms, six full baths and one half bath, and staff quarters, with 5,832- square-feet of interior space and expansive east and west terraces.
Amenities: Two swimming pools: an elevated oceanfront pool with direct views of the Atlantic Ocean and pool with lounges, cabanas and private outdoor dining overlooking the Intracoastal Waterway and surrounded by lush landscaping; private beach amenities, including cabanas, chaise lounges, beach umbrellas and a fireplace; freestanding spa pavilion with treatment rooms, hammam (steam bath), ice room, and yoga room nestled within the elevated landscape and opening onto the contemplative bamboo garden; curated gardens by Landscape Architect Sasaki Associates and a Tranquility garden with lemon trees; oceanfront library with garden views; oceanside cafe and juice bar managed by The Wright Fit catering kitchen; state-of-the-art fitness center overlooking the gardens; and private function room facing the Atlantic Ocean.
111 First Delray, Delray Beach, Florida
The 70-unit development known as 111 First Delray will bring new condos to downtown Delray Beach for the first time in nearly a decade. It is set to break ground this summer.
The boutique condominium development is in the heart of Delray Beach, offering modern resort-style living just one block off Atlantic Avenue.
Many different floor plans are available for the one-, two- and three-bedroom condos. All of the residences have balconies, with select penthouses offering sky-deck terraces. The kitchens will feature Bosch appliances.
The building is in the up-and-coming SofA (South of Atlantic) district. The district includes arts and entertainment offerings interspersed with fine dining establishments, cafés and bars, all within a comfortable walk or free trolley ride to Delray Beach.
Number Of Units: 70
Price Range: Up to to $1,015,000
Developer/Architect: Richard Jones
Interior Designer: Carrie Leigh Designs
Apartment Sizes: One-, two- and three-bedroom units ranging from 705 to 1,614 square feet
Amenities: Heated salt-water swimming pool, poolside cabanas, summer kitchen, bar, TVs, and lounge chairs; covered open-air lounge area; state-of-the-art fitness room overlooking the pool; ultra-high-speed Internet and smart home technology; abundant resident and guest parking.
Ocean 20, Deerfield Beach, Florida
This new boutique building with eight units will be in the heart of Deerfield Beach and its many shops and restaurants. The project is expected to break ground this summer.
The apartments will feature wraparound balconies and 9-foot-plus ceilings, and extra storage will be available outside for beach chairs and umbrellas. There is ample parking for each unit and a pet-friendly area on site.
Number Of Units: 8
Price Range: $700,000 to $1.2 million
Developer/Architect: Sawgrass Builders/Jack Hawk
Apartment Sizes: All units are two bedrooms; four units are 1,346 square feet and four units are 1,512 square feet
Amenities: Rooftop pool terrace with direct panoramic ocean view; exercise/workout room; lush tropical landscaping; underground covered parking.
Source: Mansion Global