A European artisanal food market has secured a three-story, 38,000-square-foot space within Brickell City Centre‘s 500,000-square-foot shopping center, developers of the soon-to-open project announced this week.

Swire Properties, along with retail co-developers Whitman Family Development and Simon Property Group said the indoor Italian food hall will anchor the $1.05 billion project’s open-air shopping center being built in Miami’s Brickell financial district.

“We want to bring the tradition and energy of the old world Italian streets and town centers, or piazza, to Miami’s urban core, creating a vibrant central destination for the Brickell community and beyond,” said the companies in a joint statement. “A food market is the heart and soul of most major Italian cities; now the same will be true here in Miami.”

Click the Image to view a SFBJ Slideshow of the Brickell City Centre

Click the Image to view a SFBJ Slideshow of the Brickell City Centre

The food market will open within the north block of the shopping center and feature a variety of eateries selling Italian cuisine. Their wares will include produce, home-meal replacements and imported artisanal cheeses and meats. There will also be live cooking demonstrations, classes by Italian chefs and educational programs on wine and food pairing at the food hall.

“Despite Miami’s immense cultural growth and its rich culinary scene, we have yet to see a food concept quite as extensive as what our food hall partners are introducing at Brickell City Centre,” said Debora Overholt, vice president at Swire Properties, in a statement.

Other restaurants Brickell City Centre has confirmed to open in its shopping center include Pubbelly Sushi, Haagen Dazs, Pasion del Cielo, Taco Chic, American Harvest and others. More food options are available at Brickell City Centre on Sundays, when its weekly, year-round farmers market takes place along the landscaped pathway that runs between Seventh Street and Eighth Street, directly underneath the Metromover track. Its first event was last weekend.

Brickell City Centre encompasses 5.4 million square feet of commercial, residential, office and hotel space, slated to open later this year. In addition to its 500,000-square-foot shopping center, the project includes two condo towers, the 352-room East, Miami hotel and several office buildings.

 

Source: SFBJ

As South Florida condo and townhouse prices rise during this current residential real estate cycle, value-oriented buyers who are being priced out of the coastal Miami-Dade County market are increasingly searching for alternative areas in which to purchase.

Much like Fort Lauderdale to the north, the city of Homestead in the southern part of Miami-Dade County is benefiting from rapidly appreciating prices in places like Greater Downtown Miami, Coconut Grove and Miami Beach where developers are putting up thousands of new luxury condo units.

Record-high rents are also contributing to the need for cash-crunched residents to find cheaper alternative locations. In the first three months of this year, Homestead enjoyed double-digit percentage increases in both the number of unit resales and the average deal prices transacted between January and March.

In Homestead, sellers of condo and townhouse units are currently seeking about an 18 percent premium of $109 per square foot compared to the average resale transaction price of $92 per square achieved in the first quarter of this year, according to data from the Southeast Florida MLXchange.

By comparison in Miami-Dade County, the number of resales and the average transaction price both decreased in the first quarter of the year as the gap between the average asking price of $505 per square foot and the average transaction price of $269 per square foot for a condo or townhouse unit grew to nearly 90 percent, according to the data.

The bigger the difference in the asking price compared to the transaction price, the longer the units are likely to sit on the resale market available for purchase as buyers and sellers struggle to reach an agreement. To this point, the Homestead condo and townhouse market currently has about a four-month supply of units available for purchase compared to more than 12 months of unit supply for all of Miami-Dade County.

A balanced market is typically considered to have about six months of units available for purchase. More months of units available for purchase suggests a buyer’s advantage and less months of properties indicates a seller’s advantage.

In Homestead, buyers purchased about 175 condo and townhouse units in the first quarter of this year at an average price of $92 per square foot. A year earlier, less than 160 condo and townhouse units transacted at an average price of $75 per square foot, according to the data.

This year’s average resale transaction price in Homestead is at its highest level since 2008 when condos and townhouses traded for $100 per square foot. At the peak of the last cycle in 2006, the average transaction price for a Homestead condo or townhouse unit was $163 per square foot. In simple terms, this year’s condo and townhouse resale prices in Homestead are still nearly 44 percent below the levels reached a decade ago.

In Miami-Dade County, buyers purchased fewer than 3,415 condo and townhouse units at an average price of $269 per square foot in the first quarter. A year earlier in 2015, buyers acquired more than 4,090 units at an average price of $275 per square foot, according to the data.

Back in the first quarter of 2006, the average transaction price for a condo or townhouse unit in Miami-Dade County was $300 per square foot, according to the data. This year’s condo and townhouse resale prices in Miami-Dade County are down about 10 percent from the highs of a decade ago.

Another aspect of the rising real estate prices of this current cycle is the recent impact on the county’s demographics and travel patterns. Consider that the population of Homestead jumped by 8.3 percent to more than 65,500 in 2014 from about 60,500 in 2010. By comparison, Miami-Dade County’s population increased by 6.6 percent to 2.66 million from 2.50 million during that same period, according to U.S. Census Bureau data.

As part of this, the median household income stands at $40,250 in Homestead compared to nearly $43,100 in Miami-Dade County.

As for the impact on traffic, the “mean travel time to work” is now more than 32 minutes for residents of Homestead versus an average of 29 minutes in Miami-Dade County, according to the data.

The unanswered question going forward is whether the current South Florida real estate cycle will continue long enough to create permanent demographic change — or temporary moves for price relief — in alternative markets such as Homestead.

Homestead Condo-Townhouse Market Surges In 2016

The resale activity for condo and townhouse units in Homestead is on the rise as prices in coastal Miami-Dade prompt value-oriented buyers to search for alternative locations.

Year (Jan.-March) Condo-townhouse unit resale transactions Yr.-over-yr. chge. Avg. resale transaction price per sq. ft. Yr.-over-yr. chge.
2016 175 11% $92 23%
2015 158 -2% $75 9%
2014 162 -8% $69 19%
2013 176 -11% $58 26%
2012 197 -27% $46 18%
2011 269 74% $39 -3%
2010 155 -12% $40 -9%
2009 176 577% $44 -56%
2008 26 -66% $100 -35%
2007 76 0% $154 -6%
2006 76 $163

Source: CraneSpotters.com compiled this chart using data from the Southeast Florida MLXchange.

Miami-Dade Condo-Townhouse Market Slows In 2016

The resale activity for condo and townhouse units in Miami-Dade is slowing as property prices rise

Year (Jan.-March) Condo-townhouse unit resale transactions Yr.-over-yr. chge. Avg. resale transaction price per sq. ft. Yr.-over-yr. chge.
2016 3,414 -17% $269 -2%
2015 4,091 -3% $275 5%
2014 4,200 0% $261 14%
2013 4,213 1% $229 24%
2012 4,187 -14% $184 24%
2011 4,856 55% $148 -11%
2010 3,126 39% $167 -5%
2009 2,250 69% $175 -42%
2008 1,333 -47% $304 0%
2007 2,503 28% $305 2%
2006 1,954 $300

Source: CraneSpotters.com compiled this chart using data from the Southeast Florida MLXchange

 

Source: Miami Herald

Rising Sea Levels

Parts of Miami Beach could be inundated with flood waters in as little as 15 years, and property values may slide amid the rising tide, according to nearly two dozen university heads and climate change experts who were on hand to answer questions on the effects of sea-level rise on South Florida during a Miami Beach Chamber of Commerce event at the W Hotel.

Flooding in Miami Beach

Flooding in Miami Beach

The purpose of the recent event, organized by land use and environmental attorney Wayne Pathman, was to warn business owners, developers, and contractors that the effects of sea-level rise will be impacting the property values fairly soon. Already, media around the globe are publicizing the fact that South Florida is “ground zero” for the adverse economic impact of sea-level rise, Pathman argued. Unfortunately, the region is still behind in preparing its infrastructure for the future.

“All eyes are upon us and South Florida isn’t ready,” said Pathman, co-founder of the Downtown Miami-based law firm of Pathman Lewis LLP and future chairman of the Miami Beach Chamber of Commerce.

Thanks to a slowing gulfstream, warming oceans, and ice flows submerging beneath the ocean from Greenland and Antarctica, the oceans are rising faster than ever, said Keren Bolter, research coordinator for Florida Atlantic University Center for the Environmental Studies. This has caused an increase in flooding events in recent years and it will only get worse. By 2100, the oceans are projected to increase by seven feet, Bolter added. At that level, The Keys, along with large chunks of Miami-Dade and Broward counties, will be inundated with sea water at high tide, destroying fresh water reserves, compromising underground sewage lines and septic tanks, and creating a host of other problems.

But you don’t have to wait 84-years to see the adverse effects of sea-level rise. Bolter said that in as little as 15 years, flooding in Belle Isle will grow much worse, especially at Island Terrace, a 16-story condo built in 1967. “It’s coming up not just at the sides,” she said while showing Lidar maps depicting future sea-level rise at Island Terrace and Belle Isle.

“It comes up from underground. That’s partly because the limestone that South Florida land is predominately made of us is extremely porous. Because of this, not even sea walls will stop the flow of water,” Bolter said.  “By 2060 the oceans are projected to rise by two feet. At that level, “the western half of Miami Beach is under water.”

“As the oceans rise, the cost of insurance will skyrocket,” Pathman said.  “Meanwhile, in an attempt to cope with the new reality, community leaders will raise taxes while property taxes are declining. As for the infrastructure of future residential and commercial projects, Miami Mayor Tomas Regalado recently declared on a radio show that the financial burden will fall on developers. However, at least some of the negative impacts of sea level rise can be mitigated if the business community takes a leadership role now. Many places around the world have already started adapting.”

Among the invited guests at the chamber event were Florida International University President Mark Rosenberg, Florida Atlantic University President John Kelly, and University of Miami’s Rosenstiel School of Marine and Atmospheric Science Dean Roni Avissar. They argued that their respective colleges are already training scientists and engineers who are not only studying the future effects of climate change, but also figuring out solutions on how communities like South Florida can adapt.

“We are very fortunate that we have a strong university system and a strong system of public education,” argued Matthew Welker, principal of MAST Academy at Florida International University’s Biscayne Bay campus. “That’s a very valuable resource.”

Josh Sawislak, global director of resilience for the Los Angeles-based engineering firm AECOM, said Miami could even replace Amsterdam as the true innovator of anti-flooding solutions.

“The brand can be, ‘This is a resilient city… Don’t go to Amsterdam to see how to prevent from being cut off by the sea, although they’ve got tasty cheeses. Come to Miami and see how to live with water,’” Sawislak declared.

One innovative idea has already been hatched in Miami. Rather than fight sea level rise, Bolter of FAU pointed out that “one student from the University of Miami” came up with the idea of simply making western Miami Beach “floodable” with the creation of new bays and living shorelines along with new boardwalks and flood-adapted buildings. (The UM student in question who developed that plan is Isaac Stein, who now works for the urban planning and landscape firm West 8.)

Besides speeches from experts, the event included an hour-long breakout session where business leaders sat at tables and asked questions to the assembled experts, some of whom flew in from other parts of the country to be there. The media, however, was ushered away from the session. Upon hearing that reporters were even present at the event, Donald Kipnis, founder and CEO of Brickell-based Development Service Solutions, walked out. Dozens of other chamber members left before the session even ended.

Harold Wanless, chair of the Department of Geological Sciences at the University of Miami, didn’t think the breakout session was long enough. Experts barely had 10 minutes to answer business leaders’ questions or lay out what needs to be done.

“We need to be planning, that is the bottom line,” said Wanless, who has long studied past sea-level rise events in Florida.

Following the breakout session, Jessica Goldman Srebnick, CEO of Goldman Properties, applauded the panel’s efforts. She also urged some restraint. Showing slides that show Miami Beach being submerged is what “gets picked up by the news.”

“We have to be very… strategic about how we discuss the reality of sea level rise,” Goldman said.

Pathman said the purpose of the event was just to “whet everyone’s appetite.” On September 14, the chamber plans to hold a roundtable discussion with “leading political and civic leaders about current and future strategies for sea level rise in South Florida” at a location to be announced.

 

Source: The Real Deal

Paseo-de-la-Riviera-Site

The site of the Paseo de la Riviera, a mixed-use redevelopment project in Coral Gables, was acquired for $44 million.

Coral Park Inn LLC, an affiliate of InterAmerican Hotels Corp., sold what’s currently a 54-year-old Holiday Inn across from the University of Miami to 1350 S Dixie LLC, a subsidiary of NP International, led by President Brent ReynoldsTotalBank funded the deal with a $21.5 million loan.

Paseo de la Riviera will have a hotel and an apartment building.

Paseo de la Riviera will have a hotel and an apartment building.

NP International plans to build Paseo de la Riviera with 252 hotel rooms, 224 apartments, 4,380 square feet of restaurants, 14,094 square feet of retail, and a parking deck. The project would include a pathway, called a paseo, between the two buildings from U.S. 1 to the public park behind the structure.

Many members of the Riviera Neighborhood behind the project voiced their opposition to it. When the city commission approved it in late 2015, they told the developer to reduce its height to no more than 126 feet. However, two residents of the city filed a lawsuit in March against the city and NP International seeking to declare that the project should not have been approved because it violates the city’s comprehensive plan.

 

Source: SFBJ