Million-dollar homes are selling faster than ever.
So fast, in fact, that 156 sell per month, on average, in Miami-Dade and one in every five sales of single-family houses is for a property costing at least $1 million.
As for million-dollar-plus condominiums, they account for one in every eight sales countywide.
At Esslinger-Wooten-Maxwell Realtors, a million-dollar home sold every 17 hours in the past year, with brokers moving more than 500 such properties between November 2012 and November 2013.
“And we don’t have December’s numbers yet,” said Valaree Byrne, an EWM broker and member of the Commercial Industrial Association of South Florida.
Countywide each month, brokers trade 71 single-family houses and 85 condos in the million-dollar range.
And these units are changing hands faster, spending about 30 days less on the market in the last quarter of 2013 than they did around the same time in 2012, according to data from Avatar Real Estate Services.
“This means there are so many people out there looking for luxury properties that there’s a huge uptick in the luxury market,” said Ms. Byrne.
And with demand outstripping inventory, brokers say it’s a sellers’ market.
“A million dollars doesn’t buy you very much any more, unfortunately,” said Rob Feland, a top producer with Avatar Real Estate Services.
So what can $1 million buy in Miami-Dade’s real estate market? Here’s a snapshot:
-“Old Miami”: “There’s a well-kept secret in this town about some condos that are so reasonably priced that a million dollars buys you a really deluxe unit,” Mr. Feland said.
Take Palm Bay Towers and Palm Bay Condominiums, at 720 and 770 NE 69th St., in the historic Bayside district, in Northeast Miami between Morningside and Belle Meade. The towers are the only ones in Miami-Dade built in Biscayne Bay.
Two of the plush $1.1 million listings offer about 3,000 square feet each with three bedrooms, 3.5 bathrooms and double exposures looking east toward Miami Beach and south toward downtown’s high-rises.
The development offers open floor plans, kitchens with high-end appliances, bathrooms with stem showers, new impact glass, Olympic-size pool, full marina, 74 apartments on multiple acres, plus easy access to downtown and the financial district.
“You just don’t find amenities like these. It’s a paradise,” Mr. Feland said. “There are an awful lot of buildings on the market that have very high-end finishes and very high-end prices, but the square footage is much smaller. When a building owner goes through the trouble of putting in the best of the best, then you get the best of both worlds – location and finishes.”
The landmark condo development boasts a list of current and former residents that reads like a who’s-who of Miami and international business circles, including Wolfsonian Museum founder Mitchell “Micky” Wolfson Jr. and industrialist Roy Carver.
“There’s a tremendous amount of old Miami history there,” Mr. Feland said. “A lot of Hollywood types used to come here and stay there. It was party central for yacht owners and the horse racing set.”
-Brickell Key: At the 40-floor Carbonell tower, a 1,500-square-foot condo commands an asking price of $920,000. For just under $1 million, buyers get a two-bedroom, two-bath unit with two parking spaces, storage, marble or wood floors, a state-of-the-art kitchen with Sub-Zero refrigerator and high-end appliances by Miele, a 114-year-old German manufacturer of luxury household and commercial products.
They also get an address on Brickell Key, an island east of Brickell in Biscayne Bay.
“That represents more or less what you can get for $1 million,” said Jose Roman Sosa, a former top producer at Swire Realty and now head of JR Sosa Properties. “With a million, a million two, you can buy two bedrooms in Asia [condos], but it’s a smaller space.”
At Asia, at 900 Brickell Key Drive, units start around $1.1 million and reach the $9 million mark. In the luxury condo market, starting prices around $1,000 per square foot buy 12-foot-high ceilings, space designed to show off art collections, infinity pools, gyms with racquet ball and multiple tennis courts, concierge service, valets and private elevators.
“That’s what you find in today’s buildings,” Mr. Sosa said. “It’s all about the services and amenities.”
It’s also all about height, with about $3,000 to $5,000 separating the price of similar units on higher floors. “If you’re on the 30th floor compared to the 10th floor, that’s a 20-floor difference, so we’re talking about $60,000,” Mr. Sosa said.
And in properties where elevation determines whether buyers get water views, several thousand dollars separate those with that perk from those without.
-Miami Shores: In the kind of neighborhood realtors describe as “park-like” and a “tranquil oasis,” slightly more than $1 million buys a four-bedroom, three-bath house with a pool and 20,000-square-foot triple lot.
“Everybody is always talking about Miami Beach, but Miami Shores is like Miami’s Mayberry – kind of idyllic,” said Nancy Batchelor, a broker at EWM Realty International.
For about $1.1 million, buyers can get a nearly 3,400-square-foot home in the neighborhood where children’s strollers and dog walkers line the ample sidewalks. With a private country club and private schools, the neighborhood attracts buyers looking for security and exclusivity.
Ms. Batchelor’s million-dollar listing is a walled and gated house designed for privacy and entertaining. It features landscaped gardens, mature trees, cypress ceilings, original mosaic clay tiles, a dark-bottom lagoon pool with cascading waterfalls, spacious eat-in kitchen and covered porch.
“In Miami Beach it’s hard to find listings for $1 million,” she said. “If you need four bedrooms it’s definitely hard. As the market went up, a lot of people who had their heart set on Miami Beach are now looking in different areas – Morningside, Miami Shores – because they can buy more for the money. They’re discovering some of the communities that you know about, if you’re a local.”
-High Pines: In the picturesque and tiny community between South Miami and Ponce Davis, $1 million can buy an older but charming home. Renovated houses in that community fetch more than $1 million, but a recent listing – a four-bedroom at 7655 SW 52nd Court built in the 1960s – sold for $875,000.
“It’s really a little gem,” said broker Toni Schrager, a founder of Avatar Real Estate Services. Large oaks in the front yard, abundant natural foliage and a pool invite outdoor living. But the house needed a new kitchen and bathrooms, as well as impact windows and doors.
“You could have moved in and lived there if you wanted to, but most people would have renovated it,” Ms. Schrager said. “The buyers fixed it up, and when they were done they were probably in for about $1.1 million.”
But regardless of listing details, brokers say the best million-dollar buys all have a few things in common, including finer finishings and the right zip codes.
“They say the most important things in real estate are location, location and location,” Ms. Schrager said. “No one’s been able to disprove that.”
Source:
Written by Samantha Joseph on December 31, 2013
http://www.miamitodaynews.com/2013/12/31/one-5-home-sales-1-million/
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
Showing posts with label miami beach. Show all posts
Showing posts with label miami beach. Show all posts
Sunday, January 19, 2014
Thursday, November 14, 2013
Miami cracks Top 10 luxury residential markets
Miami’s in with the in-crowd, tastemakers say, debuting on Christie’s International Real Estate’s list of top 10 luxury residential markets.
The real estate arm of the iconic auction house publishes a global research report of trends across the world’s prime real estate markets, tracking spending patterns among wealthy buyers.
And this year for the first time it named Miami as one of the cities where the rich not only play but also stay.
“Miami is on everybody’s radar across the world,” said Ron Shuffield, president and CEO of Esslinger-Wooten-Maxwell Realtors, an affiliate of Christie’s International Real Estate. “We have a lot of people coming here to spend their money and enjoy what we have.”
In naming the choicest markets, Christie’s selection criteria included cities’ gross domestic product; number of billionaire residents; their tally of Fortune 500 company headquarters; performance on S&P/Case-Shiller Home Price indices; position on the AT Kearny Global Cities Index; ranking on Swiss bank UBS’ list of most expensive cities; Globalization and World Cities Research Network rankings; and the presence of a Christie’s affiliate.
Emerging as the most attractive cities for the rich: Dallas, Hong Kong, London, Los Angeles, Miami, New York, Paris, San Francisco and Toronto. Côte d’Azur, also called the French Riviera, even though not a city, also made the list, “added to this elite survey group for being one of Europe’s most highly prized second-home destinations for more than a century.”
“As the only real estate network owned by a fine-art auction house, Christie’s International Real Estate has unparalleled access to the [high-net-worth individuals] around the globe who procure assets such as art, wine, jewelry and, of course, luxury real estate,” said Bonnie Stone Sellers, Christie’s International Real Estate CEO. “Together with the collective knowledge of its 125 affiliated real estate brokerages in 41 countries… Christie’s International Real Estate is uniquely qualified to understand the characteristics and trends associated with the prestige real estate market.”
And observers say Miami has cultivated the cachet to draw these buyers.
Helping its appealing: An emerging cultural offering that now includes the internationally renowned Miami City Ballet, the Miami Symphony Orchestra, major art museums and world-class food, art and cultural festivals.
Add to that plans to draw boaters, coupled with the area’s luxury retail outlets, daily flights to major world centers and a growing financial services sector, and it’s clear Miami allows wealthy homebuyers access to choice recreation and international business centers, Mr. Shuffield said.
“And as trite as it sounds,” he said, “the weather is still a big draw.”
Source: http://www.miamitodaynews.com/2013/11/13/miami-cracks-top-10-luxury-residential-markets/
Written by Samantha Joseph on November 13, 2013
The real estate arm of the iconic auction house publishes a global research report of trends across the world’s prime real estate markets, tracking spending patterns among wealthy buyers.
And this year for the first time it named Miami as one of the cities where the rich not only play but also stay.
“Miami is on everybody’s radar across the world,” said Ron Shuffield, president and CEO of Esslinger-Wooten-Maxwell Realtors, an affiliate of Christie’s International Real Estate. “We have a lot of people coming here to spend their money and enjoy what we have.”
In naming the choicest markets, Christie’s selection criteria included cities’ gross domestic product; number of billionaire residents; their tally of Fortune 500 company headquarters; performance on S&P/Case-Shiller Home Price indices; position on the AT Kearny Global Cities Index; ranking on Swiss bank UBS’ list of most expensive cities; Globalization and World Cities Research Network rankings; and the presence of a Christie’s affiliate.
Emerging as the most attractive cities for the rich: Dallas, Hong Kong, London, Los Angeles, Miami, New York, Paris, San Francisco and Toronto. Côte d’Azur, also called the French Riviera, even though not a city, also made the list, “added to this elite survey group for being one of Europe’s most highly prized second-home destinations for more than a century.”
“As the only real estate network owned by a fine-art auction house, Christie’s International Real Estate has unparalleled access to the [high-net-worth individuals] around the globe who procure assets such as art, wine, jewelry and, of course, luxury real estate,” said Bonnie Stone Sellers, Christie’s International Real Estate CEO. “Together with the collective knowledge of its 125 affiliated real estate brokerages in 41 countries… Christie’s International Real Estate is uniquely qualified to understand the characteristics and trends associated with the prestige real estate market.”
And observers say Miami has cultivated the cachet to draw these buyers.
Helping its appealing: An emerging cultural offering that now includes the internationally renowned Miami City Ballet, the Miami Symphony Orchestra, major art museums and world-class food, art and cultural festivals.
Add to that plans to draw boaters, coupled with the area’s luxury retail outlets, daily flights to major world centers and a growing financial services sector, and it’s clear Miami allows wealthy homebuyers access to choice recreation and international business centers, Mr. Shuffield said.
“And as trite as it sounds,” he said, “the weather is still a big draw.”
Source: http://www.miamitodaynews.com/2013/11/13/miami-cracks-top-10-luxury-residential-markets/
Written by Samantha Joseph on November 13, 2013
Saturday, February 2, 2013
Foreclosure rate falls in metropolitan Miami
The foreclosure rate – the percentage of mortgages in some stage of foreclosure – fell to 14.59 percent in Greater Miami in November 2012, down 3.13 percentage points from a year earlier, continuing a long downward trend, CoreLogic said.
The percentage of delinquent mortgage loans in the Miami-Miami Beach-Kendall area fell 3.87 percentage points in November to 21.24 percent from 25.11 percent a year earlier, the Irvine, Calif.-based data firm reported.
The delinquency rate is the percentage of loans more than 90-days delinquent, including foreclosures and mortgages in which a lender has taken title to a property.
While metro Miami’s trends show continued solid improvement, its rates of foreclosure and mortgage delinquency remain far above national and state levels.
In November, the foreclosure rate was 10.41 percent across Florida and 2.97 percent nationwide. The delinquency rate was 15.45 percent in Florida and 6.45 percent nationally, CoreLogic reported.
Source:
By Martha Brannigan
mbrannigan@MiamiHerald.com
http://www.miamiherald.com/2013/01/29/3206736/foreclosure-rate-fell-in-metropolitan.html
Saturday, January 19, 2013
Prices for Miami Beach luxury condos soar to records
Ultra-luxury condominiums on South Beach are fetching nosebleed prices.
On Tuesday, a penthouse at the Setai Resort at 2001 Collins Avenue closed for $27 million — the highest price ever for a South Florida condominium, according to real estate agents.
“We’re definitely seeing the market turning upward,” said Jeff Miller, of Zilbert International Realty in Miami, who represented the buyer in the sale of the palatial 7,100-square-foot condominium. “We’re seeing buyers come in from all over the globe.”
Just a few weeks ago, Ohio coal mining businessman Wayne Boich Jr. completed the sale of his Icon South Beach penthouse at 450 Alton Road in the uber-trendy South of Fifth neighborhood for just under $21 million.
The 6-bedroom, 7 1/2-bath Icon condo sparked a bidding war that drove the sale $2 million above the listing price — a level that is three times the $7 million Boich paid in July 2007 in the depths of the bust. It was a record price for a Miami Beach bayside condo.
“The luxury market is on fire in South Beach — especially the South of Fifth neighborhood,” said Dora Puig, principal of PuigWerner Real Estate Services, who was the listing broker for the Icon unit. “It’s moving Miami to totally different pricing points.”
The Setai’s record may not reign for long.
Penthouse 2 in the decade-old Continuum South tower at 100 South Pointe Drive in the South of Fifth neighborhood is on the market for $39 million.
That is a record listing price for a Miami-Dade condominium, according to Puig, who also snagged that listing.
Amid the market sizzle, Puig bumped up the asking price late last summer from $35 million.
The penthouse, which has 11,000 square feet of interior space, belongs to Manhattan real estate developer Ian Bruce Eichner, who built the Continuum project at the tip of South Beach and kept the trophy for himself.
The Continuum penthouse, which has 6,000 square feet of deck and a rooftop heated pool, boasts sweeping 13 1/2-foot ceilings that give the feel of a single-family home. The floor-to-ceiling glass walls offer a 360-degree view of the Atlantic Ocean, Biscayne Bay, downtown Miami and Miami Beach from 40 stories up.
“It looks down on Fisher Island, way down,” Puig said with a smile.
The unit has a private interior elevator, of course, and stretches over two indoor levels and two largely exterior levels.
One big plus: It has a gated entrance and sits on an expansive enclave of rolling lawns and gardens adjacent to a city park at the tip of the island.
The unit comes with an additional 874-square-foot guest quarters that would delight most mortals. “The guest unit is intended for professional quarters: the maid, the nanny, the chef, the pilot,” Puig explained.
Also included is a snazzy cabana on the beach.
Eichner has used it as a vacation home and once rented it to Tom Cruise for a couple of months while he was in Miami to film Rock of Ages.
On Thursday, Puig hosted Miami’s power brokers for a look at the Continuum penthouse over champagne and hors d’oeuvres. Next week, she plans to spend three days in New York touting the property to high-end brokers.
Such palatial properties typically are paid for in cash. But what would a monthly payment be?
With a 20 percent down payment of $7.8 million, the buyer would have to finance $31.2 million.
“I don’t know that I’d be able to find anybody willing to go that high on one unit,” warned Steve Schneider, a mortgage broker who is owner and president of Abacus Lending Group in South Miami.
If a buyer could line up a 15-year fixed rate mortgage at 3.5 percent, the monthly payment for principal and interest would be $223,043.35.
“I’d hate to see the tax bill,” said Schneider.
According to Miami-Dade County Property Appraiser records, the 2012 property tax bill on the Continuum penthouse was $264,896.17. That was based on an assessed value of just $9.5 million, less than half what the Property Appraiser listed as the market value of $19.3 million. The tax break came as a result of the state law that caps increases in assessed values on non-homesteaded property at 10 percent a year.
The condo maintenance fee for Eichner’s unit runs $7,624 a month. “I think that’s low for what you get,” said Puig.
Source
http://www.miamiherald.com/2013/01/17/3187969/prices-for-miami-beach-luxury.html
By Martha Brannigan
mbrannigan@MiamiHerald.com
Friday, April 15, 2011
Sellers still reducing their asking price for homes
With the homebuying market still struggling, real estate agencies are trying to lure potential homeowners into moving to their area by slashing home prices.
In a soon to be released report from the real estate website Trulia.com, home sellers have cut more than $24 billion in potential home equity over the past year and trimmed the cost of properties approximately 79 days after posting the initial asking price. What's more, according to the website, 35 percent of sellers will cut their prices again.
Trulia.com reports that the average home seller dropped their asking price by an average of 8 percent, but that rate is even higher in certain parts of the country, such as Detroit and Cleveland, where the average first-time price cut is 19 percent and 11 percent, respectively.
In a statement obtained by the Miami Herald, Tara-Nicholle Nelson of Trulia.com said home sellers often need to make a second cut to lure buyers, and this usually happens to people who underestimate how deeply they should cut their asking price the first time around.
In a soon to be released report from the real estate website Trulia.com, home sellers have cut more than $24 billion in potential home equity over the past year and trimmed the cost of properties approximately 79 days after posting the initial asking price. What's more, according to the website, 35 percent of sellers will cut their prices again.
Trulia.com reports that the average home seller dropped their asking price by an average of 8 percent, but that rate is even higher in certain parts of the country, such as Detroit and Cleveland, where the average first-time price cut is 19 percent and 11 percent, respectively.
In a statement obtained by the Miami Herald, Tara-Nicholle Nelson of Trulia.com said home sellers often need to make a second cut to lure buyers, and this usually happens to people who underestimate how deeply they should cut their asking price the first time around.
Tuesday, March 8, 2011
Miami New-Condo Sales Revive As Biggest Markets Fall
The new-condo boom struck louder in Miami than it did in other markets and fell hardest there when the thunder stopped.
Now the area stands out again. Its new-condo market is coming back stronger in sales and pricing, though it's a fraction of its old self.
Thank all-cash buyers from Venezuela, Argentina, Brazil, Canada, Europe and other locales. They see Miami's luxury condos at discounted prices as safe havens for investment money.
Positive sales trends continue.
"These people are parking their cash," said Peter Zalewski, principal of real estate consultancy Condo Vultures. "In Venezuela, they're fearful they're going to lose it (under President Hugo Chavez's strong-arm rule). Canadians are saying their currency is on par with the U.S. dollar, so in their minds they are getting a 25% discount."
Of the top eight U.S. metro areas, Miami was the only one in 2010 to show volume gains in attached-home closings, mainly condos, according to data gathered by Hanley Wood Market Intelligence.
The other seven fell 5% to 37% as Miami rose 8%. New York dropped 13%, Los Angeles 20% and San Francisco 37%. Unit sales totaled 4,120 in Miami — above L.A.'s 3,935 — but that still pales vs. pre-crash years 2005-07, when 20,000 to 30,000 units sold each year.
The Miami metro figures cited by Hanley Wood include Miami-Dade, Broward and Palm Beach counties. Miami-Dade is almost 70% of the total, at 2,842 closings.
"Miami is a happening place; it's really become a dynamic marketplace," said Jay Massirman, managing director of Asentus Real Estate, a real estate investment and merchant banking firm in Miami Beach.
All About Inventory
L.A. and other spots that dropped off in new-condo sales hadn't seen as big a spike in construction as the Miami area. Some 85,000 new condo units were built in the area from 2003-10, with 49,000 in coastal areas east of I-95, says Condo Vultures. Greater downtown Miami accounted for 22,250 units.
Bulk sales have figured in Miami's condo recovery, as investors bet that South Florida's cachet will continue. Last year 3,700 units in downtown Miami sold, up 57% from 2,300 in 2009, says Condo Vultures. Some 1,600 units sold in 10 bulk deals, Zalewski says. The rest were to individual all-cash buyers, mostly from overseas.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year, says Hanley Wood. The median price was higher than the peak year of 2006, when 17,400 closings were recorded. But many low-price condos have been converted to rentals, skewing inventory to luxury units.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year from 2009, says Hanley Wood. Both years showed higher median prices than the peak year of 2006, when 17,400 closings were recorded.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
Source: http://www.investors.com/NewsAndAnalysis/Article/564849/201103031443/Miami-New-Condo-Sales-Revive-As-Biggest-Markets-Fall.aspx
By MARILYN ALVA, INVESTOR'S BUSINESS DAILY
Now the area stands out again. Its new-condo market is coming back stronger in sales and pricing, though it's a fraction of its old self.
Thank all-cash buyers from Venezuela, Argentina, Brazil, Canada, Europe and other locales. They see Miami's luxury condos at discounted prices as safe havens for investment money.
Positive sales trends continue.
"These people are parking their cash," said Peter Zalewski, principal of real estate consultancy Condo Vultures. "In Venezuela, they're fearful they're going to lose it (under President Hugo Chavez's strong-arm rule). Canadians are saying their currency is on par with the U.S. dollar, so in their minds they are getting a 25% discount."
Of the top eight U.S. metro areas, Miami was the only one in 2010 to show volume gains in attached-home closings, mainly condos, according to data gathered by Hanley Wood Market Intelligence.
The other seven fell 5% to 37% as Miami rose 8%. New York dropped 13%, Los Angeles 20% and San Francisco 37%. Unit sales totaled 4,120 in Miami — above L.A.'s 3,935 — but that still pales vs. pre-crash years 2005-07, when 20,000 to 30,000 units sold each year.
The Miami metro figures cited by Hanley Wood include Miami-Dade, Broward and Palm Beach counties. Miami-Dade is almost 70% of the total, at 2,842 closings.
"Miami is a happening place; it's really become a dynamic marketplace," said Jay Massirman, managing director of Asentus Real Estate, a real estate investment and merchant banking firm in Miami Beach.
All About Inventory
L.A. and other spots that dropped off in new-condo sales hadn't seen as big a spike in construction as the Miami area. Some 85,000 new condo units were built in the area from 2003-10, with 49,000 in coastal areas east of I-95, says Condo Vultures. Greater downtown Miami accounted for 22,250 units.
Bulk sales have figured in Miami's condo recovery, as investors bet that South Florida's cachet will continue. Last year 3,700 units in downtown Miami sold, up 57% from 2,300 in 2009, says Condo Vultures. Some 1,600 units sold in 10 bulk deals, Zalewski says. The rest were to individual all-cash buyers, mostly from overseas.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year, says Hanley Wood. The median price was higher than the peak year of 2006, when 17,400 closings were recorded. But many low-price condos have been converted to rentals, skewing inventory to luxury units.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
New construction has virtually halted as the market works through new inventory from prior years that hasn't sold yet. As prices rise, the pace of bulk buying seems to be slowing, at least in the coastal and downtown urban cores, leaving those markets to all-cash individual buyers, local watchers say.
Meanwhile, in Miami-Dade County the median price of an attached home — a condo, for the most part — rose 11% to $288,614 last year from 2009, says Hanley Wood. Both years showed higher median prices than the peak year of 2006, when 17,400 closings were recorded.
"A lot of the inventory has been absorbed fairly rapidly and it is continuing to be absorbed," Massirman said. Where blocks of brand-new condo towers on Brickell Avenue near downtown stood dark, "lights are on, people are jogging on the street and dining in restaurants."
Buying In Landlord Land
Most new occupants are renters.
"The number of buyers we see who are end users is a very tiny minority," Zalewski said. "The family of four with a dog doesn't have a chance in this (new-construction) market because there's no financing. If you can find a lender, you have to put down 50%."
Even so, the sales rebound is welcome relief to condo associations that have struggled to keep up services at empty or half-empty buildings. At least new owners pay monthly association fees, as their tenants live the high life, enjoying amenities such as sleek kitchens and rooftop pools.
"A lot of these association issues are working themselves out," Massirman said.
Falling prices had a lot to do with the rebound. "In 2009, prices started to bottom," Massirman said, noting that new condos on Brickell fell to as low as $200 a square foot from $600 three years earlier. In late 2009, investors "started piling in."
Bulk buyers and other investors are starting to turn their sights to suburban neighborhoods away from the coast, where prices are still falling, observers say.
"East of I-95 is well past the bottom," Zalewski said. "West of I-95 is a market that doesn't have any kind of safety stop. The 10% local unemployment rate has a drastic effect on the suburban market."
The median price of an existing single-family home in the Miami metro area, which includes condos, fell 18.3% in January from a year ago, to $165,800, says the National Association of Realtors. As prices fell, sales rose 32.9%.
Investors scouting the western suburbs of Miami are looking to pick up multiple units in garden-style condo conversions for $25,000 to $50,000 each, Zalewski says.
"The new-condo market is starting to slow. The resale condo market is starting to heat up," he said.
Source: http://www.investors.com/NewsAndAnalysis/Article/564849/201103031443/Miami-New-Condo-Sales-Revive-As-Biggest-Markets-Fall.aspx
By MARILYN ALVA, INVESTOR'S BUSINESS DAILY
Tuesday, March 1, 2011
Pending home sales up in Miami-Dade, Broward
Pending home sales in Miami-Dade and Broward counties rose in February, according to the Miami Association of Realtors.
Miami-Dade saw the biggest boost, with total pending sales – including single-family homes and condominiums – rising 22 percent, year-over-year, in February – to 11,182 from 9,164.
An increase in pending sales is an indication of future market conditions. A sale is listed as pending when a contract is signed, but the transaction has not closed.
Pending condo deals in Miami-Dade County saw the biggest year-over-year gains in February, increasing 26.9 percent to 6,497 from 5,122.
Sales of single-family homes in Miami-Dade rose 16 percent, to 4,685 from 4,042.
In Broward County, total pending sales increased 7.7 percent in February, to 8,391 from 7,791 contracts signed.
The county’s pending condo sales outperformed single-family home selling, rising 12.3 percent, year-over-year, to 4,878 from 4,343 contracts.
Pending sales of single-family homes increased 2 percent, to 3,513 from 3,448.
“Current statistics for pending sales reflect the positive performance of the South Florida real estate market over the last few months,” said Jack H. Levine, chairman of the Miami Association of Realtors. “We have seen year-over-year increase for pending sales for nearly one year. Pending sales have also increased month-over-month 10 out of the last 13 months.”
Nationwide, pending home sales decreased in January for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator, declined 2.8 percent from December to January, and is down 1.5 percent from its January 2010 level.
Source: http://www.bizjournals.com/southflorida/news/2011/02/28/pending-home-sales-up-in-miami-dade.html
Miami-Dade saw the biggest boost, with total pending sales – including single-family homes and condominiums – rising 22 percent, year-over-year, in February – to 11,182 from 9,164.
An increase in pending sales is an indication of future market conditions. A sale is listed as pending when a contract is signed, but the transaction has not closed.
Pending condo deals in Miami-Dade County saw the biggest year-over-year gains in February, increasing 26.9 percent to 6,497 from 5,122.
Sales of single-family homes in Miami-Dade rose 16 percent, to 4,685 from 4,042.
In Broward County, total pending sales increased 7.7 percent in February, to 8,391 from 7,791 contracts signed.
The county’s pending condo sales outperformed single-family home selling, rising 12.3 percent, year-over-year, to 4,878 from 4,343 contracts.
Pending sales of single-family homes increased 2 percent, to 3,513 from 3,448.
“Current statistics for pending sales reflect the positive performance of the South Florida real estate market over the last few months,” said Jack H. Levine, chairman of the Miami Association of Realtors. “We have seen year-over-year increase for pending sales for nearly one year. Pending sales have also increased month-over-month 10 out of the last 13 months.”
Nationwide, pending home sales decreased in January for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator, declined 2.8 percent from December to January, and is down 1.5 percent from its January 2010 level.
Source: http://www.bizjournals.com/southflorida/news/2011/02/28/pending-home-sales-up-in-miami-dade.html
Tuesday, February 22, 2011
Cash is King as New Wave of Home Buyers Shuns Loans and Pays Small Bucks for Bargains
It's a new beginning in America's home-buying market. More and more buyers are saying no to expensive and convoluted bank loans and paying cash instead for bargain properties.
The Wall Street Journal reports scores of bargain-basement deals being closed by cash-bidding buyers who feel the bottom has been reached in the market.
Where are they getting the cash from? They are selling other investments like paintings, cars and jewelry.
For example, In Atlanta, 62-year-old piano teacher Virginia Hall-Busch paid cash for a 93-year-old three-bedroom, one-bath bungalow in scenic Stone Mountain, GA.
The property initially listed for $159,000, then dropped to $129,000 and then to $79,900. The piano teacher didn't think her bid of $52,500 would be taken seriously. It was. She is the new owner.
In Miami Beach, Richard Stoker, a 73-year-old retired sales executive, paid cash for two condominiums and soon plans to close on a third. He is paying $1.8 million, $1.2 million and $1 million for properties that were initially listed for double those amounts.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Stoker doesn't plan to rent out any of his new properties. He tells the WSJ he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com.
In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010--more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The Federal Reserve reports that Americans increased their use of credit cards in December 2010 for the first time since August 2008.
Henry Schlangen
"Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing," reports the WSJ.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, CA.
Schlangen tells the WSJ, "They (lenders) hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'Refi' later."
Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years.
"The deals that are consummating, these are buyers who feel they got a great deal," he said. He notes the number of buyers from China are increasing.
Mohammed Siddiq
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, Mohammed Siddiq, a real-estate professional in Fort Lauderdale, FL, tells the WSJ.
Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind, he says.
Nationally, it isn't clear whether prices have bottomed.
The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward.
But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick, reports the WSJ.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/raymond-james-zillowcom-national-association-of-realtors-henry-schlangen-pacific-union-international-mohammed-siddiq-stone-mountain-ga-miami-beach-skyline-3915.php
Posted by Alex Finkelstein
The Wall Street Journal reports scores of bargain-basement deals being closed by cash-bidding buyers who feel the bottom has been reached in the market.
Where are they getting the cash from? They are selling other investments like paintings, cars and jewelry.
For example, In Atlanta, 62-year-old piano teacher Virginia Hall-Busch paid cash for a 93-year-old three-bedroom, one-bath bungalow in scenic Stone Mountain, GA.
The property initially listed for $159,000, then dropped to $129,000 and then to $79,900. The piano teacher didn't think her bid of $52,500 would be taken seriously. It was. She is the new owner.
In Miami Beach, Richard Stoker, a 73-year-old retired sales executive, paid cash for two condominiums and soon plans to close on a third. He is paying $1.8 million, $1.2 million and $1 million for properties that were initially listed for double those amounts.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Stoker doesn't plan to rent out any of his new properties. He tells the WSJ he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com.
In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010--more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The Federal Reserve reports that Americans increased their use of credit cards in December 2010 for the first time since August 2008.
Henry Schlangen
"Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing," reports the WSJ.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, CA.
Schlangen tells the WSJ, "They (lenders) hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'Refi' later."
Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years.
"The deals that are consummating, these are buyers who feel they got a great deal," he said. He notes the number of buyers from China are increasing.
Mohammed Siddiq
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, Mohammed Siddiq, a real-estate professional in Fort Lauderdale, FL, tells the WSJ.
Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind, he says.
Nationally, it isn't clear whether prices have bottomed.
The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward.
But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick, reports the WSJ.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/raymond-james-zillowcom-national-association-of-realtors-henry-schlangen-pacific-union-international-mohammed-siddiq-stone-mountain-ga-miami-beach-skyline-3915.php
Posted by Alex Finkelstein
Tuesday, February 15, 2011
Brazilians making an economic mark
President Barack Obama will visit Brazil during his first South American trip in March and Brazil is Florida’s top trading partner. But Brazilians are also snapping up beachfront luxury properties and downtown Miami condos, investing in everything from real estate to Burger King, and shopping voraciously.
It’s as if a “swarm of grasshoppers” has descended on South Florida, chomping through bargains from Dadeland to Sawgrass Mills, one tour operator says.
“The trend now is everybody comes to shop, shop, shop,’’ said Claudia Menezes, of Pegasus Transportation, which operates a fleet of buses for conventional tours as well as the shopping excursions that are so popular with Brazilians. “They’re buying up everything from $10 creams at Victoria’s Secret to Luis Vuitton and Prada.’’
Testimony to Brazilian consumerism: When Pegasus buses return Brazilians to the airport for their flights home, Menezes says, they have to put on extra trailers behind to haul the loot.
To keep the Brazilian visitors coming, American Airlines now offers 52 flights a week to Brazil from Miami International Airport.
“Brazil is breaking all sorts of records,’’ said Rolando Aedo, senior vice president of marketing for the Greater Miami Convention and Visitors Bureau. “It has been our rock-star market.’’
When all the numbers are tallied for 2010, Miami-Dade expects to have rolled out the welcome mat for more than 500,000 Brazilian visitors who spent more than $1 billion.
That would move Brazil into the top spot for international visitors, dethroning Canada, the perennial leader.
During the oil boom years, Venezuelans were legendary for their dame-dos (give me two) ways and Latin Americans have long loved South Florida shopping. But what sets the Brazilians apart is there are so many more of them and they’re really big spenders.
To cater to the Brazilian crowd, the tourism bureau has published shopping guides, maps and other materials in Portuguese.
Even though Fort Lauderdale Hollywood International Airport has no direct Brazilian flights, the number of Brazilian visitors to Broward County has increased by 50 percent to 300,000 annually in the past year. Brazil now ranks as Broward’s second most important foreign market after Canada.
“They may enter though Miami, but they go to Sawgrass Mills,’’ said Francine Mason, a spokeswoman for the Greater Fort Lauderdale Convention & Visitors Bureau.
And they also visit their relatives. Broward County, especially the Pompano Beach/Lighthouse Point area, is home to the largest contingent of resident Brazilians in the state.
The Brazilian Consulate in Miami estimates that there are 250,000 to 300,000 Brazilians living in Florida with the largest populations in Broward and Miami-Dade counties and Orlando.
What’s spurring the Brazilian stampede?
Brazil’s economy is booming and expected to become the world’s fifth largest by 2016. Unemployment is at record lows. And perhaps most important, Brazil’s currency — the real — is extremely strong against the dollar, making Florida trips and shopping sprees affordable for Brazilians.
Coming to South Florida for a week is often cheaper for a Sao Paulo resident than a vacation in Northeast Brazil.
“Real estate is extremely high in Brazil right now — untouchable for many people,’’ said Claudia Bacelar, a Brazilian who works as a Realtor at the Esslinger-Wooten office in Coral Gables.
Edgardo Defortuna, president and chief executive of Fortune International, says, for example, that an apartment equivalent to a three-bedroom unit at Jade Ocean in Sunny Isles Beach that goes for $1.6 million might cost $2.5 million in Belo Horizonte, a state capital in southeastern Brazil.
And there’s another reason so many Brazilians are visiting: They just like it here.
“Florida has always been a favorite – the warm tropical weather and the beaches with the benefit of the shopping and now, of course, it’s so much more affordable,’’ Bacelar said. “When Brazilians come here and I see how they shop, I’m in shock.’’
At Dolphin Mall near Miami International Airport, for example, Brazilians are the top international tourists, urging past Venezuelans for the first time last year, said Madelyn Bello Calvar, director of sponsorship and marketing.
And they typically spend about three times what local customers do, she said.
At Sawgrass Mills, Marcos Freire, the assistant general manager, has watched with satisfaction as shoppers speaking Portuguese flood the mall and buses full of Brazilian tourists in matching T-shirts pull in.
Mall surveys show that Brazilians are the most numerous international shoppers, followed by Colombians and Canadians. But Freire says, “The Brazilians are way ahead.’’
As shoppers, he says, they are extremely brand-conscious, loading down their carts with Nike, Adidas and Tommy Hilfiger plus high fashion, televisions, video games, and the latest technology.
They know their way around American retail, said Freire, who is originally from Rio de Janeiro. “They’ve done their homework and they know where they’re going.’’
Menezes, whose company often runs shopping tours that stop at Sawgrass, said the trend used to be that Brazilian groups would ask for some time at the beach, Orlando or the Everglades and maybe a day of shopping.
“Now we have some groups that are coming four or five days just to shop,’’ she said. “This year for the first time we even had shopping tours for Black Friday.’’
It’s not just hotels and stores that are benefiting from Brazilians planting their green and yellow flag around South Florida.
• Real Estate — Real estate sales to Brazilians also are booming.
“Today, they’re the most important foreign sector of the South Florida market,’’ Defortuna said. “During the past 12 months, they have come in very strongly.’’
So strongly that late last year, Fortune International opened an office in Sao Paulo to market its own luxury developments such as Jade Ocean as well as other projects it handles such as Icon Brickell and Trump Hollywood .
“I have never seen anything like this — such demand. I get calls and e-mails every single day with a new Brazilian contact or lead,’’ said Fabiana Pimenta, a top Brazilian Realtor at Fortune.
About a quarter of all new Fortune sales are now to Brazilians, Defortuna said.
They basically fall into two categories, he says: high-end buyers who are buying for themselves — although it may be their second, third or fourth home — and investors who tend to gravitate toward properties in the Brickell and downtown Miami areas.
If they’re buying for themselves, they like beachfront properties in Miami Beach and the Sunny Isles Beach area, real estate agents say.
The apartment-buying spree also is having a positive impact on other businesses.
Five years ago, Ornare, a high-end Brazilian kitchen, bath and closet store, opened its first U.S. branch in Miami’s Design District. And while the local housing market has slumped, Ornare’s business hasn’t.
Its closets with leather doors, sculpted bath fixtures and sleek, sophisticated kitchens have found a ready market here. Increasingly, it’s Brazilians who are doing the buying.
Sales are up nearly 40 percent since last year and now Ornare is planning showrooms in five other U.S. cities, says Claudio Faria, director of Ornare Miami, which imports nearly everything in its showroom from Sao Paulo.
In 2009, Brazilians accounted for just 5 percent of Ornare’s local sales. Now, it’s about 25 percent, Faria said.
Brazilian interior designer Mirtha Arriaran, who has run a Miami interior design business since 1995, says that one of her jet-setting clients recently purchased a Miami apartment as a 12th residence.
“These Brazilians are very, very rich,’’ she said. “They are not looking for bargains. They are the type of people who will pick out an apartment they like and then ask the price.’’
About 85 percent of Arriaran’s clients are Brazilians, and these days with all their new condo purchases, she’s so busy that her firm, MAS Interior Design, is not taking on new business.
But not all the Brazilian real estate buyers fall into the ultra-rich category.
“Now Brickell is very affordable for the middle class,’’ says Bacelar. She recently sold several smaller apartments there for just under $200,000 — with low maintenance fees, too.
• Airlines — Two years ago, American Airlines served just two Brazilian cities – Rio and Sao Paulo – from Miami. Now it’s added four more: Brasilia, Belo Horizonte and Salvador with continuing service to Recife.
“This is huge for us — to be in six cities in one country,’’ said Martha Pantin, an American spokeswoman. “American Airlines is very bullish on Brazil.’’
TAM , a Brazilian airline, also recently added direct service several times a week from MIA to Brasilia and Belo Horizonte to complement its daily flights to Sao Paulo, Rio and Manaus.
But the best may be yet to come. With the 2014 World Cup in Brazil and the 2016 Olympics in Rio de Janeiro, American is now negotiating to add extra flights to Brazil before and after the World Cup.
American believes Miami will be a transit point for many people from around the world as they head to the sporting events, says Pantin. “The World Cup,’’ she said, “also will introduce Americans to new destinations in Brazil.’’
• The Florida/Brazil trade and business connection — Brazil ranks as South Florida’s top trading partner as well as the Sunshine State’s top trading partner. Florida’s merchandise trade with Brazil during the first 11 months of 2010, the most recent statistics available, topped $14.4 billion, a 27 percent increase over 2009 figures.
Enterprise Florida recently reopened an office in Brazil. Its purpose is to not only promote Florida products and services but also to attract Brazilian investors to Florida.
Brazilian companies Embraer, an aircraft manufacturer, and Odebrecht, a construction firm, already have extensive operations in South Florida, and last fall 3G Capital, a private investment firm with Brazilian backing, acquired Burger King in a $4 billion deal.
“We think with the emergence of Brazil as a world economic power, it will become very fertile ground to recruit companies to Florida,’’ said Manny Mencia., vice president of international development for Enterprise Florida. “There’s no market going forward that offers Florida the opportunities that Brazil does.’’
Source: http://www.miamiherald.com/2011/02/13/v-fullstory/2065059/the-brazilian-stampede.html
By MIMI WHITEFIELD
mwhitefield@MiamiHerald.com
It’s as if a “swarm of grasshoppers” has descended on South Florida, chomping through bargains from Dadeland to Sawgrass Mills, one tour operator says.
“The trend now is everybody comes to shop, shop, shop,’’ said Claudia Menezes, of Pegasus Transportation, which operates a fleet of buses for conventional tours as well as the shopping excursions that are so popular with Brazilians. “They’re buying up everything from $10 creams at Victoria’s Secret to Luis Vuitton and Prada.’’
Testimony to Brazilian consumerism: When Pegasus buses return Brazilians to the airport for their flights home, Menezes says, they have to put on extra trailers behind to haul the loot.
To keep the Brazilian visitors coming, American Airlines now offers 52 flights a week to Brazil from Miami International Airport.
“Brazil is breaking all sorts of records,’’ said Rolando Aedo, senior vice president of marketing for the Greater Miami Convention and Visitors Bureau. “It has been our rock-star market.’’
When all the numbers are tallied for 2010, Miami-Dade expects to have rolled out the welcome mat for more than 500,000 Brazilian visitors who spent more than $1 billion.
That would move Brazil into the top spot for international visitors, dethroning Canada, the perennial leader.
During the oil boom years, Venezuelans were legendary for their dame-dos (give me two) ways and Latin Americans have long loved South Florida shopping. But what sets the Brazilians apart is there are so many more of them and they’re really big spenders.
To cater to the Brazilian crowd, the tourism bureau has published shopping guides, maps and other materials in Portuguese.
Even though Fort Lauderdale Hollywood International Airport has no direct Brazilian flights, the number of Brazilian visitors to Broward County has increased by 50 percent to 300,000 annually in the past year. Brazil now ranks as Broward’s second most important foreign market after Canada.
“They may enter though Miami, but they go to Sawgrass Mills,’’ said Francine Mason, a spokeswoman for the Greater Fort Lauderdale Convention & Visitors Bureau.
And they also visit their relatives. Broward County, especially the Pompano Beach/Lighthouse Point area, is home to the largest contingent of resident Brazilians in the state.
The Brazilian Consulate in Miami estimates that there are 250,000 to 300,000 Brazilians living in Florida with the largest populations in Broward and Miami-Dade counties and Orlando.
What’s spurring the Brazilian stampede?
Brazil’s economy is booming and expected to become the world’s fifth largest by 2016. Unemployment is at record lows. And perhaps most important, Brazil’s currency — the real — is extremely strong against the dollar, making Florida trips and shopping sprees affordable for Brazilians.
Coming to South Florida for a week is often cheaper for a Sao Paulo resident than a vacation in Northeast Brazil.
“Real estate is extremely high in Brazil right now — untouchable for many people,’’ said Claudia Bacelar, a Brazilian who works as a Realtor at the Esslinger-Wooten office in Coral Gables.
Edgardo Defortuna, president and chief executive of Fortune International, says, for example, that an apartment equivalent to a three-bedroom unit at Jade Ocean in Sunny Isles Beach that goes for $1.6 million might cost $2.5 million in Belo Horizonte, a state capital in southeastern Brazil.
And there’s another reason so many Brazilians are visiting: They just like it here.
“Florida has always been a favorite – the warm tropical weather and the beaches with the benefit of the shopping and now, of course, it’s so much more affordable,’’ Bacelar said. “When Brazilians come here and I see how they shop, I’m in shock.’’
At Dolphin Mall near Miami International Airport, for example, Brazilians are the top international tourists, urging past Venezuelans for the first time last year, said Madelyn Bello Calvar, director of sponsorship and marketing.
And they typically spend about three times what local customers do, she said.
At Sawgrass Mills, Marcos Freire, the assistant general manager, has watched with satisfaction as shoppers speaking Portuguese flood the mall and buses full of Brazilian tourists in matching T-shirts pull in.
Mall surveys show that Brazilians are the most numerous international shoppers, followed by Colombians and Canadians. But Freire says, “The Brazilians are way ahead.’’
As shoppers, he says, they are extremely brand-conscious, loading down their carts with Nike, Adidas and Tommy Hilfiger plus high fashion, televisions, video games, and the latest technology.
They know their way around American retail, said Freire, who is originally from Rio de Janeiro. “They’ve done their homework and they know where they’re going.’’
Menezes, whose company often runs shopping tours that stop at Sawgrass, said the trend used to be that Brazilian groups would ask for some time at the beach, Orlando or the Everglades and maybe a day of shopping.
“Now we have some groups that are coming four or five days just to shop,’’ she said. “This year for the first time we even had shopping tours for Black Friday.’’
It’s not just hotels and stores that are benefiting from Brazilians planting their green and yellow flag around South Florida.
• Real Estate — Real estate sales to Brazilians also are booming.
“Today, they’re the most important foreign sector of the South Florida market,’’ Defortuna said. “During the past 12 months, they have come in very strongly.’’
So strongly that late last year, Fortune International opened an office in Sao Paulo to market its own luxury developments such as Jade Ocean as well as other projects it handles such as Icon Brickell and Trump Hollywood .
“I have never seen anything like this — such demand. I get calls and e-mails every single day with a new Brazilian contact or lead,’’ said Fabiana Pimenta, a top Brazilian Realtor at Fortune.
About a quarter of all new Fortune sales are now to Brazilians, Defortuna said.
They basically fall into two categories, he says: high-end buyers who are buying for themselves — although it may be their second, third or fourth home — and investors who tend to gravitate toward properties in the Brickell and downtown Miami areas.
If they’re buying for themselves, they like beachfront properties in Miami Beach and the Sunny Isles Beach area, real estate agents say.
The apartment-buying spree also is having a positive impact on other businesses.
Five years ago, Ornare, a high-end Brazilian kitchen, bath and closet store, opened its first U.S. branch in Miami’s Design District. And while the local housing market has slumped, Ornare’s business hasn’t.
Its closets with leather doors, sculpted bath fixtures and sleek, sophisticated kitchens have found a ready market here. Increasingly, it’s Brazilians who are doing the buying.
Sales are up nearly 40 percent since last year and now Ornare is planning showrooms in five other U.S. cities, says Claudio Faria, director of Ornare Miami, which imports nearly everything in its showroom from Sao Paulo.
In 2009, Brazilians accounted for just 5 percent of Ornare’s local sales. Now, it’s about 25 percent, Faria said.
Brazilian interior designer Mirtha Arriaran, who has run a Miami interior design business since 1995, says that one of her jet-setting clients recently purchased a Miami apartment as a 12th residence.
“These Brazilians are very, very rich,’’ she said. “They are not looking for bargains. They are the type of people who will pick out an apartment they like and then ask the price.’’
About 85 percent of Arriaran’s clients are Brazilians, and these days with all their new condo purchases, she’s so busy that her firm, MAS Interior Design, is not taking on new business.
But not all the Brazilian real estate buyers fall into the ultra-rich category.
“Now Brickell is very affordable for the middle class,’’ says Bacelar. She recently sold several smaller apartments there for just under $200,000 — with low maintenance fees, too.
• Airlines — Two years ago, American Airlines served just two Brazilian cities – Rio and Sao Paulo – from Miami. Now it’s added four more: Brasilia, Belo Horizonte and Salvador with continuing service to Recife.
“This is huge for us — to be in six cities in one country,’’ said Martha Pantin, an American spokeswoman. “American Airlines is very bullish on Brazil.’’
TAM , a Brazilian airline, also recently added direct service several times a week from MIA to Brasilia and Belo Horizonte to complement its daily flights to Sao Paulo, Rio and Manaus.
But the best may be yet to come. With the 2014 World Cup in Brazil and the 2016 Olympics in Rio de Janeiro, American is now negotiating to add extra flights to Brazil before and after the World Cup.
American believes Miami will be a transit point for many people from around the world as they head to the sporting events, says Pantin. “The World Cup,’’ she said, “also will introduce Americans to new destinations in Brazil.’’
• The Florida/Brazil trade and business connection — Brazil ranks as South Florida’s top trading partner as well as the Sunshine State’s top trading partner. Florida’s merchandise trade with Brazil during the first 11 months of 2010, the most recent statistics available, topped $14.4 billion, a 27 percent increase over 2009 figures.
Enterprise Florida recently reopened an office in Brazil. Its purpose is to not only promote Florida products and services but also to attract Brazilian investors to Florida.
Brazilian companies Embraer, an aircraft manufacturer, and Odebrecht, a construction firm, already have extensive operations in South Florida, and last fall 3G Capital, a private investment firm with Brazilian backing, acquired Burger King in a $4 billion deal.
“We think with the emergence of Brazil as a world economic power, it will become very fertile ground to recruit companies to Florida,’’ said Manny Mencia., vice president of international development for Enterprise Florida. “There’s no market going forward that offers Florida the opportunities that Brazil does.’’
Source: http://www.miamiherald.com/2011/02/13/v-fullstory/2065059/the-brazilian-stampede.html
By MIMI WHITEFIELD
mwhitefield@MiamiHerald.com
Tuesday, February 8, 2011
Cash Buyers Lift Housing
Buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation's most battered housing markets.
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010—more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.
The Dow Jones Industrial Average rose 69.48 points Monday, or 0.6%, to 12161.63, and the Standard & Poor's 500-stock index rose 8.18 points, or 0.6%, to 1319.05.
Monday's announcements of $13 billion in acquisitions lifted stocks on hopes of more deals, share buybacks and dividends as companies regain momentum in an improving economy.
The two stock indexes have soared more than 80% since early March 2009.
The Federal Reserve reported that Americans increased their use of credit cards in December for the first time since August 2008, showing that consumers are getting less skittish about opening their wallets. Investors also were soothed Monday by encouraging signs in Egypt, including last weekend's reopening of banks.
Residential real estate has been slower to bounce back than stocks, but the presence of apparent bargains is luring in newly confident buyers.
Richard Stoker, a retired sales executive, recently plunked down cash for two condominiums in Miami Beach, and plans to close on one more in coming days. He loves the complex's ocean views, four swimming pools and activities such as yoga and Pilates.
But what also motivated the purchase, said the 73-year-old, was that "the prices were just irresistible. Florida's been hit pretty hard." To pay the $1.8 million, $1.2 million and $1 million prices on the condos, Mr. Stoker and his wife, Jane, cashed out of some financial investments and sold a Roy Lichtenstein painting and an Alexander Calder mobile.
Mr. Stoker could have taken out mortgages, but decided to pay cash. "It was a good time to lighten up in the art market and take on real estate at a favorable price," he said.
The harder a market has been hit, say economists, the higher the percentage of cash deals. Last summer, piano teacher Virginia Hall-Busch told a real-estate agent she met through the Rotary Club to keep her posted on deals on historic houses in Stone Mountain, Ga.
A few days later, Ms. Hall-Busch, 62, got a call about a 1918 bungalow with three bedrooms and one bathroom listed for "short sale," which in the real-estate world means at a price lower than what's owed on it. The home had been on the market for $159,000, then dropped to $129,000 and then to $79,900.
"I offered them 50," she said. "I figured, it wasn't like I needed a place to live. I can afford to be a little cocky here."
Ms. Hall-Busch closed in October for $52,500 and began renovations within weeks.
"When you have a bad economy, it's hard on lots of people," she said. "But right now if you've got the money to put down on a house, long term it's going to be good thing."
Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, Calif.
"They hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'refi' later."
Mr. Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years. "The deals that are consummating, these are buyers who feel they got a great deal," he said, noting a surge of buyers from China.
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, said Mohammed Siddiq, a real-estate professional in Fort Lauderdale, Fla. Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind.
And while many buyers making low-ball offers dig their heels, Mr. Siddiq said he has started to see bidding wars and slightly increasing prices.
Nationally, it isn't clear whether prices have bottomed. The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward. But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick.
Since mid-October, Canyon Ranch in Miami Beach, the development Mr. Stoker bought into, has sold 35 units, with a third of the buyers from overseas and many others retiring from the Northeast.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Mr. Stoker doesn't plan to rent out any of his new properties, saying he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Source: http://online.wsj.com/article/SB10001424052748704570104576124502975117950.html#articleTabs%3Darticle
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.
The percentage of buyers in Phoenix paying cash hit 42% in 2010—more than triple the rate in 2008, according to Raymond James's equity research division.
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.
The Dow Jones Industrial Average rose 69.48 points Monday, or 0.6%, to 12161.63, and the Standard & Poor's 500-stock index rose 8.18 points, or 0.6%, to 1319.05.
Monday's announcements of $13 billion in acquisitions lifted stocks on hopes of more deals, share buybacks and dividends as companies regain momentum in an improving economy.
The two stock indexes have soared more than 80% since early March 2009.
The Federal Reserve reported that Americans increased their use of credit cards in December for the first time since August 2008, showing that consumers are getting less skittish about opening their wallets. Investors also were soothed Monday by encouraging signs in Egypt, including last weekend's reopening of banks.
Residential real estate has been slower to bounce back than stocks, but the presence of apparent bargains is luring in newly confident buyers.
Richard Stoker, a retired sales executive, recently plunked down cash for two condominiums in Miami Beach, and plans to close on one more in coming days. He loves the complex's ocean views, four swimming pools and activities such as yoga and Pilates.
But what also motivated the purchase, said the 73-year-old, was that "the prices were just irresistible. Florida's been hit pretty hard." To pay the $1.8 million, $1.2 million and $1 million prices on the condos, Mr. Stoker and his wife, Jane, cashed out of some financial investments and sold a Roy Lichtenstein painting and an Alexander Calder mobile.
Mr. Stoker could have taken out mortgages, but decided to pay cash. "It was a good time to lighten up in the art market and take on real estate at a favorable price," he said.
The harder a market has been hit, say economists, the higher the percentage of cash deals. Last summer, piano teacher Virginia Hall-Busch told a real-estate agent she met through the Rotary Club to keep her posted on deals on historic houses in Stone Mountain, Ga.
A few days later, Ms. Hall-Busch, 62, got a call about a 1918 bungalow with three bedrooms and one bathroom listed for "short sale," which in the real-estate world means at a price lower than what's owed on it. The home had been on the market for $159,000, then dropped to $129,000 and then to $79,900.
"I offered them 50," she said. "I figured, it wasn't like I needed a place to live. I can afford to be a little cocky here."
Ms. Hall-Busch closed in October for $52,500 and began renovations within weeks.
"When you have a bad economy, it's hard on lots of people," she said. "But right now if you've got the money to put down on a house, long term it's going to be good thing."
Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing.
"The rates are great but the underwriting is brutal," said Henry Schlangen, an agent with real-estate firm Pacific Union International who buys and sells for clients, mainly in Napa Valley, Calif.
"They hang these people upside down and shake them till they see what falls out of their pockets. So people are buying with cash and maybe they'll 'refi' later."
Mr. Schlangen, who deals in higher-end properties such as vineyard estates, estimated that 95% of his deals last year were all-cash, up from about half in previous years. "The deals that are consummating, these are buyers who feel they got a great deal," he said, noting a surge of buyers from China.
Cash buyers can often command 5% to 10% more off the asking price than a potential buyer using a mortgage, said Mohammed Siddiq, a real-estate professional in Fort Lauderdale, Fla. Sellers prefer cash deals since they close more quickly and avoid risks such as a buyer's job loss or a bank's changing its mind.
And while many buyers making low-ball offers dig their heels, Mr. Siddiq said he has started to see bidding wars and slightly increasing prices.
Nationally, it isn't clear whether prices have bottomed. The Case-Shiller index of housing prices in 20 cities showed a steep decline in prices until 2009, when they appeared to bottom and began to trend upward. But in the second half of last year, prices began falling again. A Zillow index, meanwhile, never noted the uptick.
Since mid-October, Canyon Ranch in Miami Beach, the development Mr. Stoker bought into, has sold 35 units, with a third of the buyers from overseas and many others retiring from the Northeast.
The Stokers have a home in Potomac, Md., but spend most of the year in Florida. Mr. Stoker doesn't plan to rent out any of his new properties, saying he and his wife will live in one with two dogs, his son might live in another and the third will house an older dog and guests.
Source: http://online.wsj.com/article/SB10001424052748704570104576124502975117950.html#articleTabs%3Darticle
Tuesday, February 1, 2011
Metro-Miami's Pending Home Sales Rise 28% Year-over-year
(MIAMI, FL ) -- According to the Miami Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS), total cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 28 percent in January compared to a year earlier, from 8,388 to 10,698, and 2.5 percent, from 10,437, compared to the previous month.
"Over the last few months, we have seen pending and closed sales gain momentum while inventory levels continue to drop, said Jack H. Levine, 2010 chairman of the board of the Miami Association of Realtors. "This trend in rising sales, particularly for condominiums, coupled with significant reductions in housing inventory, is a very positive sign for the local market. We expect this trend to continue as the job market, economy, and consumer confidence improve."
Pending Condominium Contract Activity on the Rise
Pending sales of condominiums in Miami-Dade County continue to outperform that of single-family homes. In January, condominium pending sales increased a significant 37.2 percent compared to a year ago, from 4,647 to 6,376 and increased 3.3 percent from 6,173 the previous month. Pending sales of single-family homes in January increased 15.531 percent from the previous year, from 3,741 to 4,322, and 1.4 percent from the previous month, when pending single-family home sales totaled 4,264.
Significant Reduction in Housing Inventory
The Miami-Dade real estate market continues to experience drops in housing inventory. Inventory for all housing types has dropped 47 percent since mid-2008 and eight percent compared to a year ago. Just over the last month, inventory in the county dropped six percent, pointing to increased demand for local properties.
"Local buyers are taking advantage of the many opportunities the local market offers, including high affordability that continues to boost contract activity," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino. "International buyers continue to continue to have a significant impact in rising sales and declining inventory in the local market."
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/miami-pending-home-sales-dade-county-home-sales-miami-association-of-realtors-southeast-florida-multiple-listing-service-sefmls-miami-condo-foreclosures-3826.php
Posted by Michael Gerrity
"Over the last few months, we have seen pending and closed sales gain momentum while inventory levels continue to drop, said Jack H. Levine, 2010 chairman of the board of the Miami Association of Realtors. "This trend in rising sales, particularly for condominiums, coupled with significant reductions in housing inventory, is a very positive sign for the local market. We expect this trend to continue as the job market, economy, and consumer confidence improve."
Pending Condominium Contract Activity on the Rise
Pending sales of condominiums in Miami-Dade County continue to outperform that of single-family homes. In January, condominium pending sales increased a significant 37.2 percent compared to a year ago, from 4,647 to 6,376 and increased 3.3 percent from 6,173 the previous month. Pending sales of single-family homes in January increased 15.531 percent from the previous year, from 3,741 to 4,322, and 1.4 percent from the previous month, when pending single-family home sales totaled 4,264.
Significant Reduction in Housing Inventory
The Miami-Dade real estate market continues to experience drops in housing inventory. Inventory for all housing types has dropped 47 percent since mid-2008 and eight percent compared to a year ago. Just over the last month, inventory in the county dropped six percent, pointing to increased demand for local properties.
"Local buyers are taking advantage of the many opportunities the local market offers, including high affordability that continues to boost contract activity," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino. "International buyers continue to continue to have a significant impact in rising sales and declining inventory in the local market."
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/miami-pending-home-sales-dade-county-home-sales-miami-association-of-realtors-southeast-florida-multiple-listing-service-sefmls-miami-condo-foreclosures-3826.php
Posted by Michael Gerrity
Tuesday, January 25, 2011
Trulia: It’s cheaper to buy than rent in Miami
Miami tops the list of places in the country where it’s cheaper to own than rent a home, according to Trulia.com’s latest Rent vs. Buy Index.
The San Francisco-based real estate website noted that the foreclosure crisis has pushed many homeowners to become renters, thus jacking up the cost of rentals.
“Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” Trulia CEO and co-founder Pete Flint said in a news release.
In fact, Trulia found that it is more affordable to buy than rent a two-bedroom home in 72 percent of America’s 50 largest cities.
Trulia said it calculates the price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent price on two-bedroom apartments, condos and townhomes listed on its website.
The median sales price for homes in Miami was $185,000. The average list price for homes for sale in Miami on Trulia is $402,603. The median sales price decreased 38.3 percent compared to the prior year based on 4,142 sales, which is up 20.1 percent compared to the prior year.
Other cities where it’s cheaper to buy than rent are:
Las Vegas
Arlington, Texas
Mesa, Ariz.
Phoenix
Jacksonville
Sacramento, Calif.
San Antonio
Fresno, Calif.
El Paso, Texas
On the flip side, Trulia found that renting is only less expensive than buying in four cities: New York, Seattle, Kansas City and San Francisco.
Source: http://www.bizjournals.com/southflorida/news/2011/01/25/trulia-its-cheaper-to-buy-than-rent.html
The San Francisco-based real estate website noted that the foreclosure crisis has pushed many homeowners to become renters, thus jacking up the cost of rentals.
“Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” Trulia CEO and co-founder Pete Flint said in a news release.
In fact, Trulia found that it is more affordable to buy than rent a two-bedroom home in 72 percent of America’s 50 largest cities.
Trulia said it calculates the price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent price on two-bedroom apartments, condos and townhomes listed on its website.
The median sales price for homes in Miami was $185,000. The average list price for homes for sale in Miami on Trulia is $402,603. The median sales price decreased 38.3 percent compared to the prior year based on 4,142 sales, which is up 20.1 percent compared to the prior year.
Other cities where it’s cheaper to buy than rent are:
Las Vegas
Arlington, Texas
Mesa, Ariz.
Phoenix
Jacksonville
Sacramento, Calif.
San Antonio
Fresno, Calif.
El Paso, Texas
On the flip side, Trulia found that renting is only less expensive than buying in four cities: New York, Seattle, Kansas City and San Francisco.
Source: http://www.bizjournals.com/southflorida/news/2011/01/25/trulia-its-cheaper-to-buy-than-rent.html
Thursday, December 16, 2010
Foreigners flock to Florida for real estate bargains
MIAMI -- Foreign tourists who for years have crowded Florida’s shopping malls to buy clothes and electronics, are now flocking to real estate offices to snatch up apartments and homes at bargain-basement prices.
The investors, mainly from Europe and Latin America, are jostling over apartments in Miami’s trendy South Beach neighborhood selling for $70,000-$100,000, and in less exclusive areas to the north where they start at around $50,000.
“The buying opportunities are maybe the best ever. Who knows if we’ll see prices again like today’s in Miami Beach,” Keys Real Estate agent Michelle Iglesias told AFP.
Property prices in Miami have fallen by almost half (47%) since the real estate bubble peaked in 2006, according to Standard & Poor’s Case-Shiller 20-City Home Price index.
Analysts predict that real estate market prices will not increase until the banks get rid of all their foreclosed properties and there are more jobs in the region.
“Unemployment is still high. People are afraid of losing their homes and credit is hard to get,” said Standard & Poor’s vice-president Maureen Maitland.
In and around Miami, banks each month repossess about 5,000 properties, including apartments and commercial real estate, for delinquent mortgage payments, according to real estate brokerage Codovultures Realty, which has 250,000 such properties on its books across southern Florida.
But foreign investors have kept prices from plunging even further, the Miami Association of Realtors said in its November report. “The international buyers continue to fuel market strengthening, we continue to observe positive signs,” said association president Oliver Ruiz.
Beatriz Lamanda from Venezuela bought two apartments north of Miami Beach for a reduced price of $80,000.
“I’d rather put my money in real estate than leave it in the bank. In a few years I’ll make a nice bundle because the prices are going to go up, no question,” she told AFP.
In the “Icon,” a three-building apartment complex by French designer Philippe Stark in Brickell, Miami’s newest financial district, apartments are selling for $250,000, down from $370,000 two years ago.
“We’ve sold 350 units in the last few months. Most of the buyers are international,” Fortune International’s Alejandra Castillo told AFP. -- AFP
Source: http://www.bworldonline.com/main/content.php?id=22914
The investors, mainly from Europe and Latin America, are jostling over apartments in Miami’s trendy South Beach neighborhood selling for $70,000-$100,000, and in less exclusive areas to the north where they start at around $50,000.
“The buying opportunities are maybe the best ever. Who knows if we’ll see prices again like today’s in Miami Beach,” Keys Real Estate agent Michelle Iglesias told AFP.
Property prices in Miami have fallen by almost half (47%) since the real estate bubble peaked in 2006, according to Standard & Poor’s Case-Shiller 20-City Home Price index.
Analysts predict that real estate market prices will not increase until the banks get rid of all their foreclosed properties and there are more jobs in the region.
“Unemployment is still high. People are afraid of losing their homes and credit is hard to get,” said Standard & Poor’s vice-president Maureen Maitland.
In and around Miami, banks each month repossess about 5,000 properties, including apartments and commercial real estate, for delinquent mortgage payments, according to real estate brokerage Codovultures Realty, which has 250,000 such properties on its books across southern Florida.
But foreign investors have kept prices from plunging even further, the Miami Association of Realtors said in its November report. “The international buyers continue to fuel market strengthening, we continue to observe positive signs,” said association president Oliver Ruiz.
Beatriz Lamanda from Venezuela bought two apartments north of Miami Beach for a reduced price of $80,000.
“I’d rather put my money in real estate than leave it in the bank. In a few years I’ll make a nice bundle because the prices are going to go up, no question,” she told AFP.
In the “Icon,” a three-building apartment complex by French designer Philippe Stark in Brickell, Miami’s newest financial district, apartments are selling for $250,000, down from $370,000 two years ago.
“We’ve sold 350 units in the last few months. Most of the buyers are international,” Fortune International’s Alejandra Castillo told AFP. -- AFP
Source: http://www.bworldonline.com/main/content.php?id=22914
Wednesday, December 15, 2010
3 hotels sold in South Beach
A trio of historic buildings in Miami Beach has been purchased by South American real estate and hotel group Lennox Miami Corp.
The $14.7 million sale included the 62-room Peter Miller Hotel at 1900 Collins Ave.; the 12-unit Miller Apartments at 229 19th St. and the 12-unit Peter Miller Apartments at 1915 Liberty Ave.
All of the buildings were designed in the 1930s by architect Russell Pancoast.
The seller was Kabo Realty Corp., based in Miami. M1 Hospitality Group, a division of real estate brokerage and investment firm Metro 1 Properties in Miami, represented both parties.
Plans for the properties have not been announced, but the broker said the new owners could potentially add more rooms as well as a pool and spa to the hotel.
-- HANNAH SAMPSON
• Ex-UBS banker enters plea: A former banker at Switzerland's UBS pleaded not guilty Tuesday in Miami to a tax fraud conspiracy charge that accuses him of helping a wealthy U.S. client hide assets from the Internal Revenue Service.
Renzo Gadola, 44, entered his plea at a brief hearing after court documents were unsealed charging him with the crime.
The documents claim Gadola and an unnamed second Swiss banker helped an unidentified Mississippi man hide an account at UBS and open another secret account at a second Swiss bank.
Prosecutors say he and the other banker tried to prevent the client from disclosing his secret accounts to the IRS. During a November meeting at a Miami hotel, according to court documents, Gadola told the client the likelihood that his new accounts would be discovered was ``practically zero percent.''
• Sheraton hangs shingle: A former Wyndham hotel will open under a new brand Wednesday: Sheraton Miami Airport Hotel & Executive Meeting Center.
The first Sheraton in Miami-Dade, the hotel at 3900 NW 21st St. has undergone $2 million in upgrades over the last four months in preparation for the change. The hotel, with 405 guest rooms and a 20,000-square-foot meeting center, is owned by Maryland-based Thayer Lodging Group.
Sheraton adds the Miami hotel as part of an expansion that will bring 50 new hotels to the brand's portfolio over the next three years.
• Mandarin Oriental shines in guide: Just one spa in Florida received the top rating from Forbes Travel Guide -- and it's in Miami.
The Spa at Mandarin Oriental, Miami was one of only 20 spas worldwide to receive five stars from the guide, formerly Mobil Travel Guide. This was the third year in a row that The Spa received the award.
Forbes Travel Guide rates hotels, restaurants and spas throughout the U.S., Canada, Beijing, Hong Kong and Macau. This year, 54 hotels, 23 restaurants and 20 spas received five stars.
Only three Florida hotels received the five-star award: Four Seasons Resort Palm Beach, The Ritz-Carlton, Palm Beach and The Ritz-Carlton, Naples
Source: http://www.miamiherald.com/2010/12/15/1973903/3-hotels-sold-in-south-beach.html
The $14.7 million sale included the 62-room Peter Miller Hotel at 1900 Collins Ave.; the 12-unit Miller Apartments at 229 19th St. and the 12-unit Peter Miller Apartments at 1915 Liberty Ave.
All of the buildings were designed in the 1930s by architect Russell Pancoast.
The seller was Kabo Realty Corp., based in Miami. M1 Hospitality Group, a division of real estate brokerage and investment firm Metro 1 Properties in Miami, represented both parties.
Plans for the properties have not been announced, but the broker said the new owners could potentially add more rooms as well as a pool and spa to the hotel.
-- HANNAH SAMPSON
• Ex-UBS banker enters plea: A former banker at Switzerland's UBS pleaded not guilty Tuesday in Miami to a tax fraud conspiracy charge that accuses him of helping a wealthy U.S. client hide assets from the Internal Revenue Service.
Renzo Gadola, 44, entered his plea at a brief hearing after court documents were unsealed charging him with the crime.
The documents claim Gadola and an unnamed second Swiss banker helped an unidentified Mississippi man hide an account at UBS and open another secret account at a second Swiss bank.
Prosecutors say he and the other banker tried to prevent the client from disclosing his secret accounts to the IRS. During a November meeting at a Miami hotel, according to court documents, Gadola told the client the likelihood that his new accounts would be discovered was ``practically zero percent.''
• Sheraton hangs shingle: A former Wyndham hotel will open under a new brand Wednesday: Sheraton Miami Airport Hotel & Executive Meeting Center.
The first Sheraton in Miami-Dade, the hotel at 3900 NW 21st St. has undergone $2 million in upgrades over the last four months in preparation for the change. The hotel, with 405 guest rooms and a 20,000-square-foot meeting center, is owned by Maryland-based Thayer Lodging Group.
Sheraton adds the Miami hotel as part of an expansion that will bring 50 new hotels to the brand's portfolio over the next three years.
• Mandarin Oriental shines in guide: Just one spa in Florida received the top rating from Forbes Travel Guide -- and it's in Miami.
The Spa at Mandarin Oriental, Miami was one of only 20 spas worldwide to receive five stars from the guide, formerly Mobil Travel Guide. This was the third year in a row that The Spa received the award.
Forbes Travel Guide rates hotels, restaurants and spas throughout the U.S., Canada, Beijing, Hong Kong and Macau. This year, 54 hotels, 23 restaurants and 20 spas received five stars.
Only three Florida hotels received the five-star award: Four Seasons Resort Palm Beach, The Ritz-Carlton, Palm Beach and The Ritz-Carlton, Naples
Source: http://www.miamiherald.com/2010/12/15/1973903/3-hotels-sold-in-south-beach.html
Friday, December 10, 2010
Documentations For Purchasing Miami Real Estate Buildings
After the long period of waiting, when you finally get to accumulate the funds to afford a Property, you start looking for prospective homes. After some days of consideration, you produce up your mind to purchase a specific Home. Regardless of the fact that that you are experienced or not, the mile long list of essentials for Buying a Property will surely bewilder you. Property sellers, bucks lenders and Miami Real Estate agents have every Correct to stipulate for relevant documents so that they might rightly evaluate your ability to pay them back. When you fail to submit even one of these documents, your preferrred Dwelling will stay a ideal forever. to prevent such a situation, you should be mindful beforehand, of the essentials, so which you may instantly produce them when needed.
Listed here are some of the documents You’ll need before closing the Miami Real Estate deal. The first records you need to show are of income tax, IRS W-2 form, asset statement and other fiscal documents. The lending institute or entity will desire a promissory note to be able to pull out your credit record. If they feel that you might be financially instable, then you might face potential difficulty in sanctioning the loan. Next, you have to show your bank statement, which will establish your ability to pay off the mortgage.
An insurance policy is also very necessary. Your lender will request for this as an assurance, in case of events of damage or deficit of Asset. This guarantees escape from the risk of losing the dollars they lent you. Preparing your payment stubs is an additional compulsory point. this could reflect the payment you receive per payday and your status as a full time employee. If, you have a spouse’s stub to add to, You’ll stand a much better chance to connect up the requirements of the lending company. Apart from a cashier’s check, you should prepare one of your own. Ensure that your Miami Real Estate lawyer or agent updates you about it.
The last, but not the least is your identification card. Carry two such cars along with your a career forms. The HR team of the company you work for will fill it up and authenticate it for you. Before you buy the Property, you can also ask your Miami Real Estate agent to assist you Through.
To purchase Miami Real Estate homes at Excellent price, contact us. Our agents will instruct you Through all the formalities. In case you are searching for Miami Realtors in your location please take a look at our web site today by simply clicking the link.
Source: http://www.favstocks.com/documentations-for-purchasing-miami-real-estate-buildings/0329173/
By Chandler Man
Listed here are some of the documents You’ll need before closing the Miami Real Estate deal. The first records you need to show are of income tax, IRS W-2 form, asset statement and other fiscal documents. The lending institute or entity will desire a promissory note to be able to pull out your credit record. If they feel that you might be financially instable, then you might face potential difficulty in sanctioning the loan. Next, you have to show your bank statement, which will establish your ability to pay off the mortgage.
An insurance policy is also very necessary. Your lender will request for this as an assurance, in case of events of damage or deficit of Asset. This guarantees escape from the risk of losing the dollars they lent you. Preparing your payment stubs is an additional compulsory point. this could reflect the payment you receive per payday and your status as a full time employee. If, you have a spouse’s stub to add to, You’ll stand a much better chance to connect up the requirements of the lending company. Apart from a cashier’s check, you should prepare one of your own. Ensure that your Miami Real Estate lawyer or agent updates you about it.
The last, but not the least is your identification card. Carry two such cars along with your a career forms. The HR team of the company you work for will fill it up and authenticate it for you. Before you buy the Property, you can also ask your Miami Real Estate agent to assist you Through.
To purchase Miami Real Estate homes at Excellent price, contact us. Our agents will instruct you Through all the formalities. In case you are searching for Miami Realtors in your location please take a look at our web site today by simply clicking the link.
Source: http://www.favstocks.com/documentations-for-purchasing-miami-real-estate-buildings/0329173/
By Chandler Man
Thursday, December 9, 2010
Selling A Miami Real Estate Asset: Behind The Scenes
Selling a Miami Real Estate Asset is no mean feat as there is loads of work which needs to be performed in order to produce it a good results. What goes on behind the scenes before the actual selling process is what matters most. Unlike Buying a Property, selling is a very much more difficult job as their needs to be a lot of deliberation and Organizing before one could actually be confident about selling a Property. usually estate sellers employ experienced agents to represent their Property and its advertising campaigns along with all the Dwelling showings. These agents specialize themselves as Asset sellers and are pretty adept at their job.
With the Miami Real Estate market being so saturated, were you can effortlessly locate several Units at the exact rate, one needs to keep his/her Asset in pristine situation to stand a chance of selling it. For which, you need to have to renovate your estate in way which it looks and feels Brand new. This includes all key and insignificant repairs along with the expected cosmetic changes. Most consumers just really don’t look at Property prices; in fact the condition of the estate is what matters most to them. Although preparing the estate to an immaculate condition does involve a lot of Expenditures, but its well worth the gamble.
When selling a Property be it Brand new or old, what purchasers observe at first is the predicament of the landscape just outside your estate. In case the surroundings are messed up then this might easily act against you and sway off Asset buyers. Small little things like maintanence the gutters, preserving the garden, care the pool etc will present a cleaner look besides attracting consumers towards your Miami Real Estate.
Most Miami Real Estate buyers tend to be emotional whilst making their decision. Knowing the preferences and tastes of the buyer can support you sell the Property quite simply. This is where a quality agent may help you out. Deliberating the likes and dislikes of the buyer demands the agent to perform a little bit of study before he/she could prepare the estate accordingly. Although selling an estate is never straightforward, with the Appropriate agent on hand you could readily sell your Asset and times even double up on your earnings margins.
searching for a Miami Real Estate Asset in a posh location, to open a store or organization outlet, then, communication us. The premises we sell are in appropriate locations to fit the purpose.
Source: http://www.favstocks.com/selling-a-miami-real-estate-asset-behind-the-scenes/0529238/
By Chandler Man
With the Miami Real Estate market being so saturated, were you can effortlessly locate several Units at the exact rate, one needs to keep his/her Asset in pristine situation to stand a chance of selling it. For which, you need to have to renovate your estate in way which it looks and feels Brand new. This includes all key and insignificant repairs along with the expected cosmetic changes. Most consumers just really don’t look at Property prices; in fact the condition of the estate is what matters most to them. Although preparing the estate to an immaculate condition does involve a lot of Expenditures, but its well worth the gamble.
When selling a Property be it Brand new or old, what purchasers observe at first is the predicament of the landscape just outside your estate. In case the surroundings are messed up then this might easily act against you and sway off Asset buyers. Small little things like maintanence the gutters, preserving the garden, care the pool etc will present a cleaner look besides attracting consumers towards your Miami Real Estate.
Most Miami Real Estate buyers tend to be emotional whilst making their decision. Knowing the preferences and tastes of the buyer can support you sell the Property quite simply. This is where a quality agent may help you out. Deliberating the likes and dislikes of the buyer demands the agent to perform a little bit of study before he/she could prepare the estate accordingly. Although selling an estate is never straightforward, with the Appropriate agent on hand you could readily sell your Asset and times even double up on your earnings margins.
searching for a Miami Real Estate Asset in a posh location, to open a store or organization outlet, then, communication us. The premises we sell are in appropriate locations to fit the purpose.
Source: http://www.favstocks.com/selling-a-miami-real-estate-asset-behind-the-scenes/0529238/
By Chandler Man
Friday, December 3, 2010
Miami Pending Home Sales Up 26% in November
Miami, FL - Total cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 26 percent in November compared to a year earlier, from 8,288 to 10,495, and increased 2.3 percent, up from 10,264, compared to the previous month according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
November marks the fourth consecutive month of increased pending home sales in Miami-Dade County. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. "As an indication of future sales, consistently increasing pending sales is a very positive sign for the South Florida real estate market," said Jack H. Levine, 2010 chairman of the board of the MIAMI Association of REALTORS.
Pending sales of condominiums in Miami-Dade County continue to perform stronger than that of single-family homes. In November, condominium pending sales increased 38 percent compared to the previous year, from 4,414 to 6,094 and increased 3.68 percent, up from 5,878 the previous month.
Pending sales of single-family homes in November increased 14 percent from the previous year, from 3,874 to 4,401, and increased .34 percent from the previous month, when pending single-family home sales totaled 4,386. "The current strengthening Miami real estate market is motivating all types of buyers to act now," said Oliver Ruiz, 2010 residential president of the MIAMI Association of REALTORS.
Source: http://www.thestreet.com/story/10937134/1/miami-pending-home-sales-up-26-in-november.html
By DQNews.com 12/02/10 - 12:12 PM EST
November marks the fourth consecutive month of increased pending home sales in Miami-Dade County. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. "As an indication of future sales, consistently increasing pending sales is a very positive sign for the South Florida real estate market," said Jack H. Levine, 2010 chairman of the board of the MIAMI Association of REALTORS.
Pending sales of condominiums in Miami-Dade County continue to perform stronger than that of single-family homes. In November, condominium pending sales increased 38 percent compared to the previous year, from 4,414 to 6,094 and increased 3.68 percent, up from 5,878 the previous month.
Pending sales of single-family homes in November increased 14 percent from the previous year, from 3,874 to 4,401, and increased .34 percent from the previous month, when pending single-family home sales totaled 4,386. "The current strengthening Miami real estate market is motivating all types of buyers to act now," said Oliver Ruiz, 2010 residential president of the MIAMI Association of REALTORS.
Source: http://www.thestreet.com/story/10937134/1/miami-pending-home-sales-up-26-in-november.html
By DQNews.com 12/02/10 - 12:12 PM EST
Thursday, December 2, 2010
Art of the deal
New Yorkers who regularly visit Miami often talk about how hard it is to get any work done there — how the city's lazy, beautiful people just bounce around to beaches, restaurants, hotel lounges, nightclubs, house parties and boat parties.
But the reality is more complicated. There’s no other American city that works this hard at partying and is full of so many people hustling for business while they’re partying. And this is especially true when it comes to selling real estate during the Miami social season, which kicks off with a big splash this week as Art Basel and dozens of satellite events take over South Beach and beyond.
Miami is always a place where out-of-towners can show up to a random apartment party, mention that they might want to buy a vacation home and find themselves talking to a broker and a salesperson of furniture packages while they’re still drinking their first glass of champagne. And with thousands of New Yorkers and rich foreigners in Miami for Art Basel, developers and brokers all over the city know that this week is an especially good time for marketing their real estate.
“Out of all the different festivals in Miami, Art Basel is the one that brings in the kind of demographic that is really prime for our properties,” says local broker Mark Zilbert, who specializes in luxury condos. “We’re working seven days a week. And people come into town with no intentions of buying, but they get caught up in the moment.”
In October, we visited the site of 3 Indian Creek, a new, listed-for-$60-million house that’s part of a private, extremely exclusive 300-acre community whose homeowners include Carl Icahn, Julio Iglesias and Art Basel chairperson Norman Braman. Designer and co-owner Felix Cohen greeted us wearing frayed jeans and a white shirt with paint stains. He offered a quick tour of the 30,000-square-foot mansion while contractors were hard at work all around us.
There was no time to waste, Cohen said, because he had a serious deadline. The house, which had already been visited by potential buyers, among them Alex Rodriguez, had to be ready for Art Basel week. Cohen admitted that he was “nervous” about the timing, but 3 Indian Creek (which is being marketed in New York by Prudential Douglas Elliman’s Oren Alexander) was indeed unveiled with a party on Tuesday.
That was the same evening the W South Beach Hotel & Residences held the official Art Basel opening party. The W, like many Miami spots, is hosting events all week and hoping that some art collectors also turn into homebuyers.
Other highlights of the week include:
The Icon Brickell condo building downtown has a Scope Art Show film premiere on Friday and just unveiled its new iPhone/iPad app, which offers neighborhood information, floor plans and event locations. In addition, the Fortune International brokerage is having open houses at Icon Brickell and Jade Ocean in Sunny Isles Beach, where brokers and potential buyers can pick up “VIP Basel” bags with passes to various art events.
The $2.3 billion Midtown Miami mixed-use project is hosting several fairs, including Art Miami, Red Dot Fair, Scope and Art Asia, and offering an exhibit from London artist Willard Wigan, who creates ultra-tiny sculptures that can only be seen through a microscope.
The new JW Marriott Marquis, part of the billion-dollar Metropolitan Miami mixed-use project downtown, has partnered with Christie’s on an exhibit with pieces by Andy Warhol, Damien Hirst, Keith Haring, Eduardo Chillida and others.
The tony Golden Beach community (where Ricky Martin has put his mansion on the market and where Basel-participating artist Bruce Weber lives) is offering tours with Mayor Glenn Singer to show off the town’s $30 million renovation.
In Wynwood, an emerging area near the Design District, the Bakehouse Art Complex is offering a tour of local studios while also showcasing its two galleries (the Audrey Love Gallery has an exhibit inspired by the seven deadly sins, while the Swenson Gallery is selling budget-friendly $100 5-by-7-inch pieces) and 33,000 square feet of exhibition space
But the reality is more complicated. There’s no other American city that works this hard at partying and is full of so many people hustling for business while they’re partying. And this is especially true when it comes to selling real estate during the Miami social season, which kicks off with a big splash this week as Art Basel and dozens of satellite events take over South Beach and beyond.
Miami is always a place where out-of-towners can show up to a random apartment party, mention that they might want to buy a vacation home and find themselves talking to a broker and a salesperson of furniture packages while they’re still drinking their first glass of champagne. And with thousands of New Yorkers and rich foreigners in Miami for Art Basel, developers and brokers all over the city know that this week is an especially good time for marketing their real estate.
“Out of all the different festivals in Miami, Art Basel is the one that brings in the kind of demographic that is really prime for our properties,” says local broker Mark Zilbert, who specializes in luxury condos. “We’re working seven days a week. And people come into town with no intentions of buying, but they get caught up in the moment.”
In October, we visited the site of 3 Indian Creek, a new, listed-for-$60-million house that’s part of a private, extremely exclusive 300-acre community whose homeowners include Carl Icahn, Julio Iglesias and Art Basel chairperson Norman Braman. Designer and co-owner Felix Cohen greeted us wearing frayed jeans and a white shirt with paint stains. He offered a quick tour of the 30,000-square-foot mansion while contractors were hard at work all around us.
There was no time to waste, Cohen said, because he had a serious deadline. The house, which had already been visited by potential buyers, among them Alex Rodriguez, had to be ready for Art Basel week. Cohen admitted that he was “nervous” about the timing, but 3 Indian Creek (which is being marketed in New York by Prudential Douglas Elliman’s Oren Alexander) was indeed unveiled with a party on Tuesday.
That was the same evening the W South Beach Hotel & Residences held the official Art Basel opening party. The W, like many Miami spots, is hosting events all week and hoping that some art collectors also turn into homebuyers.
Other highlights of the week include:
The Icon Brickell condo building downtown has a Scope Art Show film premiere on Friday and just unveiled its new iPhone/iPad app, which offers neighborhood information, floor plans and event locations. In addition, the Fortune International brokerage is having open houses at Icon Brickell and Jade Ocean in Sunny Isles Beach, where brokers and potential buyers can pick up “VIP Basel” bags with passes to various art events.
The $2.3 billion Midtown Miami mixed-use project is hosting several fairs, including Art Miami, Red Dot Fair, Scope and Art Asia, and offering an exhibit from London artist Willard Wigan, who creates ultra-tiny sculptures that can only be seen through a microscope.
The new JW Marriott Marquis, part of the billion-dollar Metropolitan Miami mixed-use project downtown, has partnered with Christie’s on an exhibit with pieces by Andy Warhol, Damien Hirst, Keith Haring, Eduardo Chillida and others.
The tony Golden Beach community (where Ricky Martin has put his mansion on the market and where Basel-participating artist Bruce Weber lives) is offering tours with Mayor Glenn Singer to show off the town’s $30 million renovation.
In Wynwood, an emerging area near the Design District, the Bakehouse Art Complex is offering a tour of local studios while also showcasing its two galleries (the Audrey Love Gallery has an exhibit inspired by the seven deadly sins, while the Swenson Gallery is selling budget-friendly $100 5-by-7-inch pieces) and 33,000 square feet of exhibition space
Wednesday, December 1, 2010
Visa deal funding realty, investors get homeland
At a time international investors are drawn to Miami's real estate bargains, the government's EB-5 visa program is an attractive vehicle for them to invest here in exchange for US residency.
Exclusive Visas, an EB-5 consulting firm based in Weston, is advising developers of several projects that would boost the local economy and create jobs while offering participating investors permanent residency for them and their families.
These projects include the University of Miami's Life Science and Technology Park, rising in Miami's health district, and the planned construction of 50 Sonic fast-food restaurants throughout Miami-Dade and Broward counties.
Fred Burgess, president of Exclusive Visas, has been a practicing attorney for 20 years and got involved in the EB-5 program in 2007.
His firm advises clients on how to apply for a regional center and demonstrate the creation of a certain number of jobs to get the federal government to approve the projects.
The EB-5 visa program was created by the government to provide employment-based visas. The government basically requires a foreign national to invest $500,000 to $1 million into a venture that would create 10 sustainable jobs and in exchange, receive a green card.
If the project is in a geographic area of high unemployment, the investor is only required to put in $500,000.
Basically, Mr. Burgess said, "we need to make sure their funds come from credible sources and that they don't have a criminal background."
One project Mr. Burgess has been working on is UM's Life Science and Technology Park.
Under the EB-5 program, developer Wexford Miami is raising $20 million capital from 40 participating investors.
"They are close to selling off," he said. "That EB-5 project will be filled by the end of this year."
He is also advising Miami-based QueensFort Capital Corp., which bought exclusive development rights to build 50 Sonic restaurants in Miami-Dade and Broward in the next four years.
The development firm is acquiring the land where it plans to build the restaurants at discounted prices, which benefits the investors involved. It is seeking six to eight investors per package of two to four restaurants.
Carolina Oliva, QueensFort Capital's senior vice president, said right now most interest in the Sonic project is coming from China, Latin America — particularly Venezuela and Mexico — and the Middle East.
Mr. Burgess and his team travel globally with clients to market their projects, making frequent trips to countries such as China, Korea and Venezuela.
"We travel throughout the world regularly, so we know what the market is looking for and we can advise companies raising capital how to structure their project so it's attractive to the investor," he explained.
Some internationals are drawn to invest in these ventures because they want to come to the US for social, political and even climate reasons.
"We have a big push from Mexico and Venezuela for safety and political reasons," respectively, he said.
More than half of EB-5 visas come from China and Korea, Mr. Burgess noted, adding that when the program first took off it became popular in the United Kingdom.
Although this government-backed visa program has been in place since the 1990s, he said, it got little use until the regional center model was added in 2003.
But the model kept sunsetting every six months, until in October 2009 President Obama extended it three years with a push to make it permanent.
Today, he said, more than 120 projects nationwide are participating under the regional center model.
Source: http://www.miamitodaynews.com/news/101202/story4.shtml
By Yudislaidy Fernandez
Exclusive Visas, an EB-5 consulting firm based in Weston, is advising developers of several projects that would boost the local economy and create jobs while offering participating investors permanent residency for them and their families.
These projects include the University of Miami's Life Science and Technology Park, rising in Miami's health district, and the planned construction of 50 Sonic fast-food restaurants throughout Miami-Dade and Broward counties.
Fred Burgess, president of Exclusive Visas, has been a practicing attorney for 20 years and got involved in the EB-5 program in 2007.
His firm advises clients on how to apply for a regional center and demonstrate the creation of a certain number of jobs to get the federal government to approve the projects.
The EB-5 visa program was created by the government to provide employment-based visas. The government basically requires a foreign national to invest $500,000 to $1 million into a venture that would create 10 sustainable jobs and in exchange, receive a green card.
If the project is in a geographic area of high unemployment, the investor is only required to put in $500,000.
Basically, Mr. Burgess said, "we need to make sure their funds come from credible sources and that they don't have a criminal background."
One project Mr. Burgess has been working on is UM's Life Science and Technology Park.
Under the EB-5 program, developer Wexford Miami is raising $20 million capital from 40 participating investors.
"They are close to selling off," he said. "That EB-5 project will be filled by the end of this year."
He is also advising Miami-based QueensFort Capital Corp., which bought exclusive development rights to build 50 Sonic restaurants in Miami-Dade and Broward in the next four years.
The development firm is acquiring the land where it plans to build the restaurants at discounted prices, which benefits the investors involved. It is seeking six to eight investors per package of two to four restaurants.
Carolina Oliva, QueensFort Capital's senior vice president, said right now most interest in the Sonic project is coming from China, Latin America — particularly Venezuela and Mexico — and the Middle East.
Mr. Burgess and his team travel globally with clients to market their projects, making frequent trips to countries such as China, Korea and Venezuela.
"We travel throughout the world regularly, so we know what the market is looking for and we can advise companies raising capital how to structure their project so it's attractive to the investor," he explained.
Some internationals are drawn to invest in these ventures because they want to come to the US for social, political and even climate reasons.
"We have a big push from Mexico and Venezuela for safety and political reasons," respectively, he said.
More than half of EB-5 visas come from China and Korea, Mr. Burgess noted, adding that when the program first took off it became popular in the United Kingdom.
Although this government-backed visa program has been in place since the 1990s, he said, it got little use until the regional center model was added in 2003.
But the model kept sunsetting every six months, until in October 2009 President Obama extended it three years with a push to make it permanent.
Today, he said, more than 120 projects nationwide are participating under the regional center model.
Source: http://www.miamitodaynews.com/news/101202/story4.shtml
By Yudislaidy Fernandez
Monday, November 29, 2010
NAR predicts commercial vacancies to fall in 2011 as market stabilizes
Commercial real estate markets are stabilizing nationwide and will modestly improve in 2011, according to the latest National Association of Realtors economic outlook released Monday.
The outlook cited a recent commercial real estate index by The Society of Industrial and Office Realtors, which reported a 1.6% increase in the third quarter, to 42.6 on the index. This is the fourth consecutive quarter of improvement in the index, however, it still remains well below normal.
The index is measured on a scale to 100. An index of 100 represents equilibrium in the commercial marketplace.
NAR's chief economist, Lawrence Yun, said that signs of stabilization in the market are due primarily to an increase in demand for commercial space, which "means overall vacancy rates have already peaked or will soon top out."
The current vacancy rate for office space nationally stands at 16.7%, but NAR predicts that rate to drop to 16.4% by the fourth quarter of 2011. New York City and Honolulu are the cities with the lowest vacancy rates, both near 9%, according to NAR. All other office markets monitored by NAR — which monitors a range of 50 to 60 markets for each commercial category — reported an office vacancy rate more than 10%.
NAR expects vacancy rates in the industrial and multifamily sectors to decline as well. Industrial vacancies are projected to fall to 13.2% by the fourth quarter of 2011, down from the current 13.9%.
Multifamily properties are also predicted to improve, according to NAR's outlook. Vacancy rates will drop to 5.8% by the end of 2011, down from the current 6.4%.
As of the report's release, San Jose, Calif, Miami, Boston and Portland, Ore., had the lowest multifamily vacancies rates, around 4%.
Lower vacancy rates suggest and increase in property rent, according to Yun; however, only rent in the multifamily sector is expected to rise, up 0.2% in the fourth quarter of 2010 and up 1.6% in 2011.
Rent in the retail sector is expected to drop 3.4% from the fourth quarter of 2010 to the same period 2011, while rent for industrial property is predicted to fall 7.4%. NAR said rent for office space will drop 3.4% by the end of 2011.
Source: http://www.housingwire.com/2010/11/29/nar-predicts-commercial-vacancies-to-fall-in-2011-as-market-stabilizes
http://www.housingwire.com/2010/11/29/nar-predicts-commercial-vacancies-to-fall-in-2011-as-market-stabilizes
by CHRISTINE RICCIARDI
The outlook cited a recent commercial real estate index by The Society of Industrial and Office Realtors, which reported a 1.6% increase in the third quarter, to 42.6 on the index. This is the fourth consecutive quarter of improvement in the index, however, it still remains well below normal.
The index is measured on a scale to 100. An index of 100 represents equilibrium in the commercial marketplace.
NAR's chief economist, Lawrence Yun, said that signs of stabilization in the market are due primarily to an increase in demand for commercial space, which "means overall vacancy rates have already peaked or will soon top out."
The current vacancy rate for office space nationally stands at 16.7%, but NAR predicts that rate to drop to 16.4% by the fourth quarter of 2011. New York City and Honolulu are the cities with the lowest vacancy rates, both near 9%, according to NAR. All other office markets monitored by NAR — which monitors a range of 50 to 60 markets for each commercial category — reported an office vacancy rate more than 10%.
NAR expects vacancy rates in the industrial and multifamily sectors to decline as well. Industrial vacancies are projected to fall to 13.2% by the fourth quarter of 2011, down from the current 13.9%.
Multifamily properties are also predicted to improve, according to NAR's outlook. Vacancy rates will drop to 5.8% by the end of 2011, down from the current 6.4%.
As of the report's release, San Jose, Calif, Miami, Boston and Portland, Ore., had the lowest multifamily vacancies rates, around 4%.
Lower vacancy rates suggest and increase in property rent, according to Yun; however, only rent in the multifamily sector is expected to rise, up 0.2% in the fourth quarter of 2010 and up 1.6% in 2011.
Rent in the retail sector is expected to drop 3.4% from the fourth quarter of 2010 to the same period 2011, while rent for industrial property is predicted to fall 7.4%. NAR said rent for office space will drop 3.4% by the end of 2011.
Source: http://www.housingwire.com/2010/11/29/nar-predicts-commercial-vacancies-to-fall-in-2011-as-market-stabilizes
http://www.housingwire.com/2010/11/29/nar-predicts-commercial-vacancies-to-fall-in-2011-as-market-stabilizes
by CHRISTINE RICCIARDI
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