Tibor Hollo: We’re Starting One Bayfront Plaza In January 2019

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Tibor Hollo will break ground on the 92-story One Bayfront Plaza in January 2019, according to an interview he gave this week with Miami Today.

Completion is estimated within 40 months of starting, he said. The building will top off at 1,049 feet, since that is the maximum permitted by the FAA in the area, Hollo said. He expects other developers will follow him and build at that height.

Most of One Bayfront Plaza will be devoted to apartments, with 1,052 units. The project will also include about 500,000 square feet of office space and 200,000 square feet of retail, along with a 200-room hotel. It will be directly connected to a Metromover station by bridge.

Residences will start on level 22. A sky recreation deck will have two giant pools, including one for hotel guests. A second amenity deck will be located on level 40.

Hollo is 90 years old. He currently has Panorama Tower under construction in Brickell, which is already the tallest structure in Miami. Hollo said that Panorama will top off at 867 feet, surpassing any other building in the area by 100 feet, and the tallest (residential) tower south of New York on the eastern seaboard.

 

Source: The Next Miami

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Ven-American Real Estate Tapped To Manage, Lease Westpoint Retail Plaza

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Westpoint Retail Plaza

Castle Real Estate Enterprises has engaged Ven-American Real Estate, Inc. to exclusively manage and lease Westpoint Retail Plaza, an immaculate 16,655-square foot neighborhood center, located at 10101-10251 W. Commercial Blvd. in Tamarac.

Tenants at the center include Dunkin Donuts, Subway, AT&T, Rotelli Pizza & Pasta, CareSpot Urgent Care, Gentle Dentistry, Brightway Insurance and Liberty Tax.

Under Ven-American Real Estate’s management, Subway held a Grand Re-Opening, unveiling a new mouth-watering store redesign focused on integrating technology into all aspects of the restaurant design.

Only one of every five Subway shops in the entire United States will feature this design, which includes:

 

  • All new décor, equipment and design
  • New self-ordering kiosks, allowing guests to “skip the line” and get in and out quicker
  • New touchscreen fountain beverage machine with flavor-customization capability
  • New digital menu display
  • New coffee and specialty coffee program using freshly-ground coffee beans
  • New Panini sandwich press
  • New sauces and toppings

Subway’s goal with the new design is to create a more welcoming and comfortable environment for “this generation’s consumer” while continuing its dedication to delivering the same delicious, fresh and healthy food products the brand has provided since 1965.

Andrew Kruss

“We are very honored to be a part of this technology-centric Subway store concept,” commented Andrew Kruss, Director of Commercial Services for Ven-American Real Estate, Inc.  “It’s the first one in the entire state of Florida, and being a part of any ‘first’ is always exciting,” he added.

The shopping center has also begun a “redesign” of its own.  The property has recently been freshly painted. In addition, plans call for an upgrade to the lighting throughout property – not only for energy efficiency purposes, but to provide a better quality of light and coverage, as well as reducing maintenance costs.

“Our goal is to continue to make tenants and visitors feel safe and make the property more aesthetically pleasing at night,” said Kruss.

Andrew Kruss is a Ygrene Certified Contractor and has helped many clients improve their energy and water efficiency. Projects include lighting, HVAC, roofing, energy controls and impact windows. At Monarch Commerce Center in Miramar, Florida, another Ven-American Real Estate, Inc.-managed property, Kruss was able to reduce energy consumption by approximately 40% while improving light coverage and quality.

“We have also reduced lighting related maintenance costs by approximately $5,700 per year,” Kruss explained.

Andrew Kruss has owned, managed, leased and sold commercial property for thirty years. He is a practical, solution-oriented, hands-on manager who believes in efficiency in property management and energy sustainability solutions.

Kruss added, “We look forward to working with the tenants and Castle Real Estate Enterprises to make the property more attractive, efficient and productive for the entire community’s benefit.”

The shopping center, conveniently located along the Sunrise/Tamarac city boundary, features 150 parking spaces, AT&T Fiber and Comcast Cable, as well as excellent visibility facing busy Commercial Blvd. cross streets Nob Hill Road & Hiatus Road, with 50,000 vehicles per day traveling between the neighborhood thoroughfares. The property is also located adjacent to heavily-traveled Sawgrass Expressway.

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Commercial Real Estate Indicators Signal Robust 2017 Across South Florida

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Year-end surges in the office, industrial and retail sectors foreshadow robust economic growth across South Florida for 2017, commercial real estate experts say.

A lack of new supply pushed office rents higher, particularly in the downtown corridors, and the optimism displayed by businesses looking to expand is prompting developers to strongly consider shovels in the ground after a decade of inactivity.

West City Partners has proposed a 500,000-square-foot office building in downtown Fort Lauderdale, although the project isn’t expected to break ground until an anchor tenant commits.

The Stiles real estate firm is in talks with Broward College for a ground lease at the two-building site on Las Olas Boulevard. Stiles would tear down the buildings and replace them with a 350,000-square-foot office tower, said Doug Eagon, the developer’s vice chairman.

“It is time to introduce the next generation of office space into the downtown market,” Eagon said.

Last year, Stiles paid $13.1 million for the Bank of America building next to Broward College.

“The firm is considering its options, with retail and residential likely,” Eagon said.

Meanwhile, demand is soaring for warehouse and distribution space as e-commerce suppliers struggle to keep up with online retail sales, according to a report from the Colliers  International real estate firm.

In the fourth quarter of 2016, Broward’s industrial vacancy rate plummetted to 4.4 percent from 6.6 percent in the fourth quarter of 2015, the Colliers data show. Palm Beach County’s vacancy dropped to a nine-year low of 4.2 percent.

Boca Raton and Jupiter had the county’s two lowest industrial vacancy rates, at 1.2 percent and 1.5 percent, respectively. Those two markets also had the two highest rents — $14.53 a square foot in Boca Raton and $11.43 a square foot in Jupiter.

“Palm Beach County has more than 422,000 square feet of industrial space under construction, the majority of it at McCraney Property Co.’s Turpike Business Park adjacent to Florida’s Turnpike at Belvedere Road,” Colliers said.

In Broward, Butters Construction and Development and Bristol Group Inc. are planning a 925,000-square-foot business park at the site of the former Deerfield Country Club off Interstate 95 and Hillsboro Boulevard.

Tom Capocefalo, senior managing director for the Savills Studley commercial real estate brokerage in Miami, said the tri-county region is geographically positioned to easily ship goods domestically or internationally to the end users.

“We’re finding that the South Florida marketplace is one of the top-tier distribution markets in the country,” Capocefalo said. “It’s incredible, the pace of it.”

“Industial developers are moving north into Palm Beach County because the county has more available property than either Broward or Miami-Dade,” said Ken Krasnow, executive managing director for Colliers in South Florida, said

“Land is a scarcity,” Krasnow said. “We’re not making any more of it.”

“Palm Beach County also had a banner year in retail, with more than 1 million square feet of space leased – the highest level since 2006 and nearly double the 515,050 of 2015,” Colliers said.

Broward totaled 1.4 million square feet in new retail leases, its best showing in a decade. The first phase of Dania Pointe, an $800 million shopping and entertainment center, is expected to open this year just east of Interstate 95 at Stirling and Bryan roads in Dania Beach.

Colliers said small blocks of space in the 2,000-square-foot range are most in demand as Broward tenants seek to control costs in an era of rising rents and the growth of e-commerce. With smaller spaces more in vogue, the challenge for retail landlords this year will be to find tenants for the available “big box” spaces across the region, market observers say.

Sports Authority filed for bankruptcy and went out of business, closing 13 stores across South Florida and auctioning 10 others. In January, Macy’s said it would close stores nationwide, including one at CityPlace in West Palm Beach.

“Landlords will first try to find a tenant to take the space in its current configuration,” said Peter Reed, managing principal at Commercial Florida Realty Services in Boca Raton. “When those efforts are exhausted, they’ll have to ask themselves, ‘How do I repurpose this?’ In some cases, they’ll be able to multi-tenant it, but in other cases the best thing may be to scrape it and do something different.”

 

Source: SunSentinel

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Miami’s Little Havana Neighborhood Named A U.S. ‘National Treasure’

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Little Havana, the neighborhood that is the heart and soul of Miami’s Cuban diaspora, was named a US “national treasure” on Friday.

The National Trust for Historic Preservation, a private organization, added the neighborhood to its list of sites it believes should be protected from developers, saying in a statement that it “stands as a testament to the immigrant spirit that built America.”

Little Havana is home to the Versailles, a historic cafe that pulses with Cuban music and sometimes offers free Cuban pastries to exiles who gather there to protest or celebrate events on their home island.

Several blocks away in Domino Park, dozens of retirees play the eponymous game amid sometimes heated political discussions every afternoon. Nearby, the city’s most popular Cuban salsa club is a must-see tourist destination. There’s also a museum of weapons, photos and documents from veterans of the ill-fated 1961 Bay of Pigs invasion.

However, Little Havana‘s residents now worry about being forced out by real estate development and rising prices.

“Little Havana is a symbol of the immigrant experience in America,” the historic trust’s president Stephanie Meeks said. “The National Trust welcomes the urban resurgence that is breathing new life into cities across the country, but we also believe that growth should not come at the expense of the vibrant historic neighborhoods like Little Havana.”

The buildings, some them Art Deco, date back to the 1920s and 1930s. On the commercial hub Calle Ocho, or Eighth Street, many buildings have coral-colored floors. But the burgeoning downtown and Brickell neighborhoods — with their modern 20-story buildings — are expanding toward Little Havana.

“As Miami continues to evolve, preservation will be essential in maintaining Miami’s unique urban neighborhoods,” Miami-Dade County heritage trust director Christine Rupp said. “Our long-term goal is to protect specific historic properties that tell the story of Little Havana and assist with the restoration of those historic buildings.”

Some 1.5 million Cubans live in the United States, 68 percent of them in Florida, according to the Pew Research Center.

 

Source: Yahoo!News

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24-Story Mixed-Use Project With Hotel Coming To Brickell

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Rendering of the 24-story, 250,000-square-foot mixed use project planned for Brickell. (Image Credit: Metro 1 Development)

Real estate developer Tony Cho and hotel developer Robert Finvarb announced Friday they are developing a 250,000-square-foot, 24-story, mixed-use project in the heart of the booming neighborhood.

Located on Southwest First Avenue between Seventh and Eighth Streets, the project aims to attract a “neighborhood style hotel” and retail, as well as possible commercial and residential components. Cho and Finvarb recently acquired the site for $18.4 million.

The building will be adjacent to Metromover and Metrorail stations and a block from the site of the Brickell Backyard segment of the Underline project, an endeavor to transform the 10 miles below the Metrorail along South Dixie Highway into a green thoroughfare of bike paths, trails and street vendors.

Cho, who founded Miami-based Metro 1 Development, has worked on several neighborhood revitalization efforts. He most recently announced plans for the Magic City Innovation District, an area spanning 15 acres just north of Wynwood with a focus on art, entertainment, innovation and sustainability.

Finvarb is the founder of Miami-based Robert Finvarb Companies, which has developed 17 hotels since 2002 in seven states and the District of Columbia.

 

Source: Miami Herald

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How Developers Are Redesigning Miami, Nine Acres At A Time

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For decades, these three large city blocks in a prime location — straddling Miami Avenue and butting up against the Miami River and the Brickell financial district — lay inexplicably vacant.

Now, in the seeming twinkling of an eye, they have been utterly transformed. Brickell City Centre, which opened in November, is an urban animal of a concentrated intensity more evocative of Hong Kong or Tokyo than anything Miami has seen before: five towers connected by a multi-level, open-air shopping center plugged directly into a Metromover station and layered over underground parking tunneled beneath the streets. Pedestrians enter porous breezeways seamlessly from the surrounding streets, while above, shoppers cross bustling pedestrian fly-overs, protected overhead by a “climate ribbon” canopy that snakes across all three blocks like a long strip of origami.

It feels like a real city. And that’s precisely the stated goal of the relatively new, largely untested and increasingly controversial zoning category that produced it, and that now may be paving the way to a redrawing of broad swaths of Miami.

The goal: to create true urban neighborhoods and districts in underdeveloped areas of the city that, far from being self-contained islands, are painstakingly planned, interwoven and compatible with the city fabric around them. Often in exchange for greater height and density, developers must spend millions on new public spaces, streets and amenities — sometimes paying cash into public kitties — while giving city planners and the city commission a significant say in the shape of the final product.

The concept has taken off, to the consternation of some neighborhood activists. SAP was once reserved mostly to the city’s core, but developers building in far-flung, residential neighborhoods are now taking advantage.

“What the SAP does uniquely is, it sets up a table where the city comes in, stakeholders come in, and we can all figure out what the optimal shape this project can take is,” Miami planning director Francisco Garcia, who helped author the Miami 21 code while at the private planning firm Duany Plater-Zyberk, said in an interview. “In Miami, I don’t think there is any area that is not undergoing some degree of change, or redevelopment, or thinking about redevelopment. This is our world today here in Miami. So let’s approach this emphasis to redevelop and reshape the city in a creative way, and have it yield the best results.”

Aside from Brickell City Centre, which has two more planned phases yet to start, the SAP has also led to the lauded, near-total redevelopment of the formerly dormant Miami Design District. The rebirth of the district, about 60 percent complete, has meant new, street-friendly retail buildings and a pedestrian promenade connecting two large public plazas.

Meanwhile, on the north bank of the Miami River, River Landing would bring a multi-story restaurant and retail center with apartments to the site of the demolished Mahi Shrine in the Civic Center area. On the south bank, Chetrit Group’s $1 billion Miami River complex would bring 58- and 60-story towers and three levels of shops to a site formerly occupied by an abandoned restaurant and empty warehouses. Both projects would include new public spaces; Chetrit would underwrite upgrades to Jose Marti Park and contribute millions into an affordable housing trust fund.

If anything, these projects were celebrated. But as SAP applications proliferate across the city for everything from tech villages to mixed-use residential and commercial districts and even school and hospital redesigns, the sheer size and scale of some of the proposals is giving many city residents pause, if not provoking outright alarm.

Entrepreneur Moishe Mana’s massive Mana Wynwood SAP, which would bring shops, a trade center and residential towers rising up to 24 stories to two dozen acres of mostly vacant land, prompted a year of negotiation and public battles with other property owners in the rapidly redeveloping warehouse district. Mana won commission approval after agreeing to spend millions putting utilities under ground and redrawing the original plan to scale back construction facing the heart of Wynwood.

Elsewhere, developer Michael Simkins talked about using the SAP process to design an innovation center in blighted Park West immediately south of Interstate 395, including a controversial observation tower designed to also serve as a digital billboard, although his attorney says he’s currently reassessing whether to pursue an SAP.

And now a flurry of potential new SAPs has raised concerns that the process could become a runaway train barreling through established neighborhoods and dramatically changing their character. In and around the city’s Upper Eastside, three developers and a hospital have submitted applications to the city or are expected to soon, all within a tiny area of roughly 40 square blocks:

  • Legions West, a 1.2-million-square-foot complex abutting Legion Park, to be built on the site of a recently demolished American Legion post and neighboring Art Deco apartment buildings that formerly housed dozens of low-income families. The developer would spend millions on improvements to the park.
  • Eastside Ridge, proposed by the owners of Design Place, who want to turn 22 acres of moderately priced townhouse units into a mass of sky-high residential and office towers with nearly 3,000 condos.
  • Miami Jewish Health Systems, across Second Avenue from Design Place, which is planning an expansion of an existing campus. The hospital wants to open a new dementia-focused assisted living facility, research center and convention hotel, and redesign other aspects of its campus.
  • Magic City, a 15-acre assemblage including industrial buildings and a demolished trailer park straddling Little Haiti and Little River that developers Tony Cho and Bob Zangrillo want to convert into a technology, residential and cultural center.

Legions West and Eastside Ridge are perhaps the most controversial of the SAP submissions to date, in part because they would tower over neighbors and replace low-rise, low-cost rental housing. The Legions project would drop four towers up to 15 stories tall next to two protected historic districts: the MiMo Biscayne district with a 35-foot height limit, and the single-family Bayside Historic District. It would also include part of the adjacent and now-historic Legion Park in order to qualify for the needed nine acres to propose an SAP — an aspect that generated false fears that the developer, who plans to spend millions on upgrades, would privatize the park.

Renderings of the Eastside Ridge plan, which depict what seems to be a massive, gleaming steel-and-glass city-within-a city rising from the modest urban landscape of Little Haiti, has sent residents into a tizzy. Some in the community, already hyper-acute to the pressures of gentrification, believe they are being boxed in and pushed out by new development.

“The more we learn about these mammoth projects, the more concerned we are,” said Marleine Bastien, a Haitian-American activist who has been outspoken about gentrification of the neighborhood and the apparent lack of consideration for community input. “What we resent is for us to be brought in at the 11th hour when everything is cooked and ready to eat, and we get the crumbs.”

Garcia, Miami’s planning director, insists that community input is a central tenet of the Special Area Plan, which requires reams of paperwork, months of debate with city planners and multiple hearings in order to green-light a project. But some critics say there is evidence to the contrary.

“In Wynwood, they up-zoned 45 different properties to as high as 20 and 24 stories, which is a complete violation of the law,” said veteran Morningside activist Elvis Cruz, who argues that the city is flouting a Miami 21 requirement that all new development be compatible with its setting. “But that’s the way it works in the city. They just interpret things as they wish. It’s completely out of scale and character.”

People critical or skeptical of some of the newer SAPs even includes some prominent figures who have strongly backed such projects in the past. Horacio Stuart Aguirre, chairman of the Miami River Commission, which reviews projects along the waterway, said it’s one thing to approve SAPs on undeveloped land long contemplated for dense redevelopment, like the river properties close to downtown Miami, but entirely another to plunk those down amid settled, existing neighborhoods.

Though SAPs must be approved by the city commission, which has been no rubber stamp, Aguirre says he fears the “goodies” promised by developers of SAPs to the city — including new jobs, the creation of new public spaces and payments toward future affordable housing — prove too tempting to turn down. (None has been, yet.)

“Brickell City Centre is a wonderful idea, where it was done. It’s in Brickell, for crying out loud,” Aguirre said. “But should we have 20 of those reiterations all over the city? What happens to the character of individual neighborhoods? What happens to the idea of local communities?”

But Miami 21 designers say the SAP has always encouraged developers to embrace the neighborhoods in which they’re investing, and put in the extra expense, effort and time that sensitive master planning requires. They note that developers, even without SAPs, could always pursue up-zoning without providing anything in return to the community.

“They are a terrific improvement over the prior situation,” said Elizabeth Plater-Zyberk, whose firm authored the Miami 21 code. “It’s an invitation to making a better plan than what is there now.”

Garcia also says the city puts SAP proposals through a grind of an extensive review, and some submissions never make it out of the process because developers drop them after realizing what’s required for approval. He disputes the idea that developers and the city use SAPs in order to super-size projects.

“The perception by some is this is simply a race for the gluttonous,” Garcia said. “But I will tell you there are significant amounts of development capacity and density that are left on the table in each and every one of these SAPs.”

To be sure, height and density are part of the equation, but not the entire picture. What makes SAPs attractive to the city and developers is the flexibility afforded in designing what often are sprawling campuses. Roads can be moved. Buildings can be massed and shifted in ways they otherwise couldn’t. The rigidities of the city’s laws can be unlocked, although not ignored. “If I have the possibility to do that, why wouldn’t I?” asks Garcia.

Noting that the Design District SAP is hardly tall by Miami standards, Magic City’s Cho said he expects to submit an application for an SAP in part because the project he wants to build — the one he says is best for the area — is impermissible under the regular zoning code. For one thing, much of the 15 acres he and Zangrillo own are zoned industrial, and Cho says he’s hoping to include hundreds of low-cost residential units. Likely, that will be done by building “micro” units, tiny apartments made affordable by their size.

“The existing zoning is antiquated and outdated,” said Cho, who began investing years ago in Little Haiti real estate. “That’s not in the best interest of Miami. You don’t want a neighborhood that can’t develop residential.”

For Garcia, whose department hasn’t weighed in on Magic City, and has only begun to look at Eastside Ridge and Legions West, that’s the underlying truth behind Miami’s transformation. The city is evolving, and as downtown and Brickell become entirely built-out, and Wynwood’s land becomes price-prohibitive, developers will begin to invest and rebuild the city’s farther-flung neighborhoods. When that happens, he says, the city needs the tools to map out the right future.

“There has been a great explosion of building in Miami during the last six or seven years. But that’s a data-point. The real question is: Is that good? Is that bad?” he says. “It is a very positive trend and it is getting us closer to what Miami is and should be. Miami will not be in the near future a sleepy town that is a vacation resort for the wealthy. It should be a real city.”

 

Source: Miami Herald

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Little Haiti Will Be South Florida’s Hottest Neighborhood In 2017, Report Says

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The Little Haiti area will be South Florida’s hottest residential neighborhood in 2017, even as the wider region cools down, according to a recent report released by real estate website Zillow.

The company predicts home values in the gentrifying area north of downtown Miami will rise 4.6 percent this year. (Zillow included Little River, Buena Vista and the area around the Design District — together once known as Lemon City — in its analysis.) That’s the fastest rate in Miami-Dade, Broward and Palm Beach counties. But South Florida as a whole will grow at a 1.6 percent clip, Zillow said. Miami’s growth rate puts it at number 90 of the country’s 96 largest metro areas, according to Zillow projections.

Little Haiti, ‘The Next Wynwood’

With Brickell and the Beach overbuilt, developers are now zeroing in on under-valued neighborhoods close to the urban core.

“This could be the next Wynwood” is the mantra of many investors and home flippers crowding into Little Haiti. The average home there is valued at $191,500, up 19.6 percent over the last year, according to Zillow.

Just south of the booming neighborhood, the Archdiocese of Miami wants to sell the 15-acre campus of Archbishop Curley-Notre Dame High School in Buena Vista. Developers have also unveiled plans for large, mixed-use projects. And restaurants and commercial business are moving in, too, most recently Entercom Communications, one of the country’s biggest radio broadcasters, which signed a lease in Little River.

Some business owners and residents are worried they could be forced out by the wave of cash, and that Little Haiti’s unique cultural heritage is under siege. In March, with the support of many Haitian Americans, the city of Miami officially recognized the area roughly between 54th Street and 79th Street, and Northwest Sixth Avenue and Northeast Second Avenue, as Little Haiti.

Zillow predicts the other top neighborhoods in South Florida in 2017 will be the 441 corridor in Hollywood (the residential area south of the Seminole Hard Rock Hotel & Casino); South Middle River in Fort Lauderdale; Highland Garden in Hollywood; and Liberty City in Miami.

South Florida Slowdown

The overall slowdown in South Florida might come as a surprise after years of big gains. Fueled by foreign investment, real estate in Miami Beach, Brickell and other high-rise havens recovered quickly after the housing bubble burst, leaving less fashionable. But now that a strong dollar has cooled the condo market, overall growth is plummeting compared to other major metro areas.

“We’re expecting a drastic slowdown,” said Svenja Gudell, chief economist at Zillow. “Miami was the one market where I was starting to get concerned about a bubble because of the foreign investment flowing in and prices becoming so unaffordable. … A slowdown is actually a good thing because it could allow incomes to catch up.”

The volume of home sales in Miami-Dade fell by double digits in three of the four months leading up to November’s presidential election. Zillow also found that Miami has a higher unemployment rate and slower projected wage growth than other big cities. Recession in Latin America prevented Miami’s economy from booming at the rapid clip experienced in other parts of Florida and the Southeast in 2016.

The metro areas projected to experience the biggest increases in home values this year are Nashville, Tennessee; Seattle; Provo, Utah; Orlando; and Salt Lake City.

 

Source: Miami Herald

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Massive Transformation Proposed In Part Of Miami’s Little Haiti With 28-Story Towers

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A 68-year-old, two-story apartment complex in Miami’s Little Haiti could be transformed with a zoning proposal allowing towers as tall as 28 stories and up to 5.42 million square feet of development.

To view a SFBJ slideshow of the Eastside Ridge in Miami’s Little Haiti, click on the photo

SPV Realty, managed by Sharon Olson in New York, hired Kobi Karp Architecture to craft a redevelopment plan for its 22.5-acre site at 5045 N.E. 2nd Ave. It currently has the walled-in Design Place Apartments totaling 515 units. The company wants to rezone it using a special area plan (SAP) titled Eastside Ridge that would increase its density and height in addition to allowing commercial uses.

On Dec. 21, the city’s Urban Design Review Committee will consider the SPV Realty’s SAP and site plan, with a maximum development potential of 2,798 apartments, 418 hotel rooms, 283,798 square feet of commercial/retail space, 97,103 square feet of office space and 4,636 parking spaces. Building heights would range from eight to 28 stories — higher than other buildings in Little Haiti.

North of downtown Miami and west of Biscayne Boulevard, the Little Haiti neighborhood has been overlooked by developers for years. Its median household income of $27,457 in 2013 was below county-wide income levels, according to U.S. Census data.

However, increasing prices in booming neighborhoods to the south such as Wynwood and the Design District have prompted some businesses and residents to move to Little Haiti. Tony Cho and Dragon Global recently announced plans to redevelop 15 acres at the corner of Northeast 62nd street and Northeast 4th Avenue as Magic City with a mix of entertainment, residential and commercial uses. They have yet to announce development density on that site.

Kobi Karp said SPV Realty hired him a few years ago to develop a plan to make its apartment complex better for its residents and the community. He said the owner would work to keep residents on the property as it’s redeveloped. These apartments would be for everyday working people, Karp said.

“The owner has been here for decades and doesn’t have enough apartments,” Karp said. “They said, ‘I am full and these buildings are falling apart so why don’t I built more?’”

Karp said Eastside Ridge would better integrate the property with the community, including the Jewish Health facility on its west side, where another redevelopment plan is proposed, and Archbishop Curley Notre Dame High School to the south. New internal streets and green spaces would invite the public onto the property.

There would be pocket parks on every corner, a park along Northeast 2nd Avenue and a central ovular park. He also envisioned an outdoor green market operating there on the weekends. Karp said the project was designed around the existing trees on the property.

“We wanted to maintain openness and green tree canopies of the site,” Karp said. “Towards Northeast 2nd Street, we present a plaza and green space so if people feel like they want to walk through our site, they can.”

In case passenger rail is ever extended on the FEC line running along the east side of the property, the site plan calls for a station there. The SAP would allow for a parking reduction of 30 to 50 percent should a train station be placed on the property.

The East Ridge SAP site plan shows 16 buildings, ranging from eight stories closer the the streets, to four buildings of 28 stories each around the park in the center of the property. Each building would have ground-floor retail and two would contain hotels. The office space would be combined with retail and apartments in the same buildings. Each building would contain some parking, with some garages under ground. The buildings would have green roofs with native vegetation and the parking structures would be topped by amenity decks.

Similar projects have been developed and proposed in parts of Miami-Dade County, such as in downtown Miami, Brickell and Aventura, but there’s nothing of this scale and design currently in Little Haiti. Karp pointed out that when he opened his office near Midtown Miami in 2004, that area had only mid-rise buildings and now it’s booming with large-scale development.

“The density that has existed there (the Design Place Apartments) for the past 80 years for it to keep with the new zoning code with the new parking and to introduce the retail and the offices there, the height is necessary, especially if you want to preserve and increase the green spaces,” Karp said.

The site plan calls for 6.8 acres of open space, more than triple what’s currently permitted under the present zoning. Karp said he created that open space by increasing the heights of the buildings so they have a smaller footprint at the ground level.

“The buildings could be shorter but then there would be less green space and open space,” Karp said.

If the Eastside Ridge SAP is approved by the UDRB, it would still need to pass the city’s Planning Board and commission. Kimley Horn is the planning firm on the project and Edward Martos is the developer’s attorney.

 

Source: SFBJ

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Jorge Pérez: Come To Miami In 10 Years And Be Amazed

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Jorge Pérez thinks that Miami will be transformed in the next decade.

Pérez told Local 10 that visitors will be shocked by what they see in Miami in ten years from now.

“People are going to say oh my God, what’s happened here, this has become a world class city,” Perez said.

He also thinks that more Miami residents will be giving up their cars in favor of an urban lifestyle.

“I’ve always wanted to have Miami become an urban center like New York, Paris, London, in which people don’t have such a need for the automobile,” Pérez said.

Pérez said that he send a letter to president-elect and former business partner Donald Trump telling him “I’m here for you,” even though he supported Hilary Clinton during the election.

 

Source: The Next Miami

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What Will Trump’s Presidency Mean For Miami’s Real Estate?

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The king of real estate is set to rule the country, but what will a Donald Trump presidency mean for local real estate, one of South Florida’s biggest industries?

The Miami Herald wanted to gauge response from Realtors, developers, economists, bankers and lawyers about possible impacts of the election, both in the short and long term.

The Miami Herald asked: Will a new president — especially a political unknown like Trump — mean uncertainty for Miami real estate? What will the election’s impact be on sales and developer activity? They also wanted to know their views on whether Latin American investors would hesitate to invest in President Trump’s America after his strong anti-immigration stance. Will his election depress demand from Latin American buyers?

Overall, those who responded are mostly bullish, as you might expect from business people who depend on optimism and consumer confidence for sales. The Miami Herald selected a representative sampling of the views expressed and excerpted comments they made, mostly via email. (Thanks to the team at Bendixen & Amandi, the Miami Herald partners on their annual Real Estate survey, which helped put out the word.)

 

Mekael Teshome, economist at PNC Financial Services Group

Trump’s policies on immigration and trade could have the greatest effect on the South Florida real estate market, Teshome said.

“The president in a sense is using a blunt instrument where you’re dealing with the whole country. Real estate is an industry where it’s very localized. It would be hard for a President Trump to craft a policy that affects the real estate market in South Florida.”

Since the early 2000s, the local real estate industry has relied heavily on foreign investors. But their numbers have thinned because of a strong dollar and weak foreign economies. If Trump’s proposed policies result in higher tariffs, friction over trade and lower confidence in the United States as a stable haven for flight capital, that could scare away foreign investors, Teshome said. “Fewer foreign buyers would weaken demand.”

 

Jeff Morr, broker with Douglas Elliman, chair of Miami Master Brokers Forum

“I think people are just happy that the drawn out, vitriolic election process is over. Interest rates are low, the economy is solid and many prices have adjusted. The timing couldn’t be better for buying in Miami.” Longer term, he said: “I expect continued improvement barring any major catastrophes.”

Morr’s business is about half foreign, half domestic; his domestic business has grown because of the U.S. housing market recovery and a strong dollar.

Will Latin Americans continue to invest in Miami real estate? “The U.S. is still the U.S. — a safe haven for people from around the globe. Miami is the unofficial capital of Latin America and will continue to be the beneficiary of Latin American money.”

 

Jorge Pérez, CEO, Related Group

Pérez recently returned from a sales trip to Mexico and said the biggest fear of potential buyers for real estate is the possible visa status changes that could take place with Trump as president.

“We had to reassure our clients that in our opinion there will be no increased restrictions on visas or ownership requirements for foreign buyers. Trump is a businessman and understands the importance of foreign buyers. We have done four condominium towers with him in Florida, and he was part of the presentations to Latin Americans. … I believe that, if anything, he will try to promote this investment to help our economy grow.

“A very large percentage of our buyers are from South America and also from Europe. They invest not only because they love Miami’s lifestyle but also because it is the most secure country in which to invest. Uncertainty is a big deterrent to investment, and I hope that no policies are developed which in any way affect our standing as the most secure country in which to invest. I am also hoping that, after clear and unbiased reflection, Mr. Trump realizes that trade will lead to greater growth and employment in America, which is the cornerstone of his campaign.”

 

Avra Jain, real estate developer and investor

“Overall, Trump will have a positive effect on the real estate industry. People may pause for a week or two while they digest, but I expect the market to resume its positive course.”

Over the next 12 months, “given he is heavily invested in the real estate space, I would expect him to protect favorable real estate tax laws currently in place and will probably try to create more incentives to encourage investment/development. “Favorable policies will be good for everyone, but the personal tax incentives from the income and capital gains would benefit U.S./resident buyers more.”

Her personal concern: Supreme Court justice appointments and how that will affect her daughter’s generation.

 

Masoud Shojaee, president and chairman of Shoma Group

“We have seen so much unpredictability in the course of this election; we are dealing with a very unpredictable person. That will destabilize our dollar in the short term, which will create opportunities for foreign investors. …The message we are hearing from the new administration is that more jobs will be created, more infrastructures and growing of the economy. If this is truly the case, it will have a positive impact to our market. No matter what the rhetoric was prior to the election, the new administration will focus on reality and hopefully on the positive path this country needed badly.”

 

Marcelo Tenenbaum, co-principal of Blue Road, a Miami developer of residential, hospitality and commercial projects

As to the short-term impact of a Trump presidency on Miami real estate, as well as the impact one year out: “We don’t see any change in that trend. Miami has been a magnet for investors for more than 30 years, regardless of different presidents, political moods and parties — they look at the long term. … As the electoral campaign defuses, people will go back to business as usual. Trump talked about a tax cut, which might help to increase profit for investors. That is music to their ears.”

On Latin American investors in particular, he said, “Investors are pragmatic. They look at numbers and returns; they don’t look at political correctness, values, etc. If Trump reduces capital gains, income-tax rates and eliminates the estate tax (which is huge for foreign investors), they will keep investing in South Florida.”

 

Jack McCabe, a South Florida real estate analyst

The country was likely heading into a recession in 2017 no matter who was elected, but the uncertainty of a Trump presidency will accelerate it, McCabe said.

In South Florida, the implications of a Trump presidency will likely be most hard-felt among foreign buyers, who make up about 60 percent of South Florida real estate sales, he said, because of Trump’s disparaging remarks against Hispanics, Muslims and other minority groups.

“Without a doubt, Mexican buyers that have been a growing segment; I think many will find it difficult to invest.” The threat is particularly badly timed now, when foreign investment has eased due to recessions in other countries and a strong U.S. dollar.

Issues have arisen closer to home, too. Luxury real estate, which is largely bolstered by foreign investors, has been suffering from drops in resales and increasing supply. The uncertainty of Trump’s presidency will likely raise more questions for investors. In the past several months, several developers have put plans on hold due to the slowdown in the market, McCabe said.

“There is a tremendous amount of concern from different countries about how his presidency is going to affect global economics. We are headed for a very volatile period in the future, especially in the luxury real estate section.”

 

Marc Shuster, partner at Berger Singerman

“Generally speaking, I don’t see a connection to any president and his/her election on the one hand, and Miami real estate functionality, on the other. I think if anything we might see some pullback by U.S. investors in the short term who are concerned about yield over the next year or so.

“Conversely, the long-term tailwinds that the U.S. is positioned to inherit or even seize makes for a very rosy picture for Miami real estate in the long run. It is a premier destination, and a low-interest-rate environment creates a long-term play for prosperity.

“It seems dubious to me that his campaign speeches will be easily put into government, [with] the executive branch being checked by the Legislature and judicial. And I think, given the rest of the world has such strong economic dislocations, Miami will continue to be one bright spot on the world stage, almost out of necessity when looking at the entire world and desirous of achieving yield in cash-flowing assets. The weather, lack of state income tax, population growth, low-interest-rate environment will help.”

 

Jay Parker, CEO, Florida Brokerage, Douglas Elliman

Parker doesn’t expect a major impact this year.

“That said, I do believe the world in general has faced uncertainty by pausing on most major decisions, especially as we faced the end of a long and complicated election process. As has been seen in the stock market on the first day since the election, I expect that the world will find confidence in the fact that the U.S. is a strong and safe country to invest in. And as we see the country reunite, I think our real estate market will see a strong boost. I also expect that issues like Zika will subside, which will directly benefit Florida.

“Ultimately, I believe and expect Trump’s tax plan, banking regulations and overall effort to lower taxes will create more income, more spending power, which will lead to a housing industry boom. I expect we will see more impact as we move into the first and second quarters of 2017.”

In Florida, Douglas Elliman has seen slower velocity from foreign markets, but Parker believes that many such markets will resume their focus on the U.S., as he expects the security of investment and overall opportunity will increase under the Trump presidency. “I also believe that states like Florida will remain uniquely appealing due to our tax benefits and the continued maturity of our culture, educational institutions, hospitals and quality of life.”

 

Daniel de la Vega, president, One Sotheby’s International Realty

On a national macroeconomic level, most people will take a wait-and-see approach, de la Vega said. “From a local real estate level, I believe people just wanted to know the definite outcome. Now that they do, they feel more confident making their purchase. Donald started off on a good foot in his acceptance speech by saying he wants to bring America together, thanking everyone around him for his success and verbalizing his admiration for Hillary in a long hard-fought battle.

“Some of his fiscal policies and less regulation could lead to economic growth. Jobs created in states that are most competitive will lead to a healthy more stable U.S. Most foreign investors look for stability and a democratic place to put their money. Overall, this country always finds a way.

“2016 definitely shifted to a more domestic buyer. Financing has eased, and job and wage growth were on the rise. I believe this will continue if we make for a better America. This will not be about who our leader is, this will be about who we are as Americans. Like Deepak Chopra said: ‘Perhaps the future no longer depends on a single leader but on each of us who can quietly dedicate our life to light, love and healing.’”

 

Gil Dezer, Dezer Developments and Trump’s former business partner on several South Florida developments

“I think the overall economy will get a boost as consumer confidence grows due to the results of this election. Unfortunately, I’m sold out of Trump units in my six buildings, but I’m sure my clients will enjoy a nice bump in value. … I presume that a year from now is when we will really start to see the positive economic impacts of Mr. Trump’s presidency.”

Will Latin American investors in particular continue to choose to buy in Miami because the U.S. is a stable political and economic environment? “I think you answered your own question here. Latin American INVESTORS are doing just that. They are investing. There is a small fraction of them that actually leave their businesses and families behind to move here. I don’t believe there will be any changes to tourism policies or tourist visas. Latin Americans looking to emigrate to the U.S.A. will most likely go the EB-5 route. That is a completely separate transaction from a real estate purchase.”

 

Peggy Fucci, CEO, One World Properties

“I think our buyers will continue to see Miami as a safe haven — the U.S. continues to provide that image regardless of who the president is. The situation in all the markets that continue to buy Miami, especially Brazil and Argentina, hasn’t changed. Miami is a great bet. We are talking about a city that is poised to be the Hong Kong of the West with all the characteristics necessary — diversity, financial institutions — and it’s centrally located to South America and Europe.

“Trump has real estate in his blood. He has already said he is interested in boosting home ownership. If he shows that during the upcoming year by continuing to keep interest rates low, our housing market will continue to grow. There is too much international turmoil not to continue to keep our rates down. We will also see the rise of the U.S. buyer.”

She said international markets represent about 60 percent of her companies’ sales among all its projects. “Latin America has always invested in Miami … In addition, Trump’s immigration policy has changed since he started campaigning; immigration reform would be a tough bill to push through, so it’s difficult to determine whether this will have any influence in the real estate market.”

 

Armando Codina, developer and executive chairman, Codina Partners

“We do not believe that a new president equates to an uncertain real estate environment here in Miami. The Miami real estate market will probably react much like the stock market reacted [after the election results were announced] — a pre-market drop and then a quick rebound.

“If Trump is successful at getting his proposed tax plan into effect, we believe it will have a positive impact on the economy in general. Real estate will benefit from lower capital gains, and businesses should benefit from lower corporate rates. “Elections in Latin America have a much greater impact on us. America will continue to be seen as a great safe haven.”

 

Craig Studnicky, broker and principal of ISG World

Trump’s lack of experience in public affairs has international buyers and real estate developers concerned, Studnicky said, but Trump is a real estate developer — it’s in his blood.

“There are many people in Miami and abroad that are hoping Donald Trump will use his power as president to influence policies that are favorable for the real estate industry and build a healthy real estate economy. Time will tell. The real question is, in a year from now, will Donald Trump be perceived as a strong leader for the country and will his presidency be perceived as a benefit by the world? Domestically, he/it may be. It’s very unpredictable at the moment.”

 

Art Falcone, co-founder and managing principal of Encore Capital Management

Like traders in the stock market, real estate buyers may react to gyrations in the market and become skittish, Falcone said. “But as to developers, if you are not thinking long term, you should not be in this business. You can’t invest hundreds of millions of dollars into projects and overreact to short-term market changes.

“We were on the phone with some partners from China [Nov. 9], and there was certainly no overreaction about changing their long-term thinking about Miami. If Trump does half of the economic stimulus policies he has mentioned, versus things the media has hyperbolized as being hurtful to the economy, we would be in good shape. He’s certainly not going to eliminate trade altogether.

“With EB-5 projects, you could see a big push to file new applications because of the uncertainty of what the new administration might do with that program. There could be some very positive long-term benefits here if Trump and the policymakers are successful with the infrastructure investments they hope to facilitate. “In general, consumers don’t cause recessions — policymakers do. We have to keep a careful eye on what policymakers will do in the first year of the administration.”

 

Chris Zoller, broker at EWM Realty International

After an election year of uncertainty, Trump’s presidency ushers in an era of certainty, Zoller said. “Now we know what we have, but don’t forget one important thing: What we have is a system that works so well, that is still the strongest democracy on the planet, is still creating the safest place to be investing in real estate.”

Zoller expects the next few years to be prosperous, largely driven by economics, not politics. “In my experience, the president in the White House has much less to do with economics than the business community or the Treasury or the Federal Reserve System or Wall Street.”

Experts have worried that Latin American investors, who are major players in South Florida’s real estate industry, would be scared away by Trump’s anti-immigration stance. Zoller disagrees. “I don’t think every foreigner is looking to come here to live,” he said. “And I don’t think there is a more attractive place for them to make an investment [than Miami].”

 

Andrés Asion, master broker, founder/broker of Miami Real Estate Group

Asion was in Mexico for a poorly attended real estate expo that started the day after the U.S. election. While the peso was tumbling and the country seemed to be in shock about the news, Asion believes that will be temporary.

“Many Mexicans I spoke to feel that Trump is looking out for the best interest of the American people first and they understand that. [They] also feel that after the initial state of shock, Mexicans will continue to invest in the United States because other areas like Europe are too far and South America does not offer the security of the United States. … They feel people will always want to invest in a country that is doing well, so if Trump’s policies will make the U.S. economy strong, it will in turn make everyone else want to invest into it, regardless… The people I spoke to also understand that Trump wants to have a hard stance on immigration.

“In the short term, the hold from many Latin Americans in ‘wait-and-see mode’ will cause sellers in Miami to possibly lower prices in order to move units quicker as the South Americans slow their buying power for approximately the next six months.”

 

James Shindell, attorney and chair of Bilzin Sumberg’s real estate group

“On the commercial side, Miami will continue to be an attractive destination for Latin American capital. It is still an exciting gateway market on an upward trajectory. It is still Spanish-speaking. It is still safe. The rule of law still applies. Alternative investment choices haven’t suddenly lost their flaws. If that’s not enough, the president-elect is a real estate developer.”

 

Dan Kodsi, developer and CEO of Paramount Ventures

Kodsi said a Trump presidency may create some short-term uncertainty in the Miami real estate market, which may weaken the dollar over the next 60 days and send a buy signal to Miami’s largest market, South America, as a good time to buy.

As Trump begins to build his cabinet with fiscally conservative Republicans combined with private sector ex-CEOs who wouldn’t ordinarily get involved in the public sector, it will create a new confidence in our economy, Kodsi said. “While our largest market the Latin Americans may be offended by Mr. Trump’s rhetoric, they will make investment decisions based on the strength of our economy, not his personality. Continuing the reckless spending of past administrations will continue to weaken us over time and would have created an unforeseen long-term issue.”

About 90 percent of Kodsi’s business is from foreigners — about the same as a year ago, he said. “Most of the Latin Americans that invest in Miami do not come to the country illegally. His anti-immigration stance is against illegal immigration, not overall immigration to the U.S. The type of buyers that invest in Miami real estate are the immigrants that a Trump administration will most likely incentivize to come live and invest in the U.S.”

 

Mike Pappas, Realtor, CEO and president of the Keyes Company

The market likes clarity and consistency. There may be a slight pause until the market understands his economic and immigration plan. Longer term, “If Trump implements a pro-business strategy, then that will lift sales and prices.”

Thirty percent of Keyes’ Miami-Dade market is from foreign buyers. “With the dollar strengthening and turmoil in Venezuela, along with political and economic issues in Brazil, we have seen a slight decrease this past year. We are seeing a rising interest now from Asia, as well as a strengthening of the northeast domestic market toward South Florida. For the long term, there’s no effect. In fact, it may actually be positive. As for the short term, they may sit on the sideline until they are comfortable with the new policies.”

 

Ezra Katz, real estate investor, CEO of Aztec Group

“Donald Trump is a businessman and developer by trade, so I believe his presidency will positively impact our economy — and by extension, real estate development, finance and sales. I think his administration will create jobs, which will stimulate consumer spending, and I believe he will be pro-business. By eliminating many of the bureaucratic regulations that are hurting U.S. companies, we will encourage entrepreneurship and entice companies to relocate to gateway markets like South Florida. The real wild card is whether President-elect Trump will reach across the aisle to work with members of both parties in Congress. If he makes bipartisanship a priority, then the U.S. economy is destined for significant growth.

“The U.S. will be a significantly better-managed country under President Trump, particularly when compared with nations in Latin America and Europe. As people overseas begin to see the U.S. economy thriving, it’s only natural that they will want to join in on the growth and profit themselves by opening businesses here and investing here — as they should. The vast majority of inbound investors in South Florida are migrating and doing business here legally, so President-elect Trump’s stance on immigration is unlikely to have a measurable effect on our regional real estate economy.”

 

Karen Elmir, broker, CEO of the Elmir Group

Elmir believes short-term impact will be minimal. “The long-term projections relative to Miami real estate are positive due to the economic policies of President-elect Donald Trump — lowering of tax rates for individuals and corporations, and the reduction of governmental regulations. These should result in an increase in the GDP from the current lethargic figure of 1 to 1 1/2 percent to a robust projected increase of 2 1/2 to 4 percent GDP projected for mid-2017 through mid-2018. A commensurate increase in property values in part due to the increase in GDP and in part due to these policies will result in a slight increase in the inflation rate, which should create upward pressure on residential prices.”

Foreign nationals find investment in Miami real estate attractive because of proximity to South and Central America and the stability of the United States’ political and economic environment, she said. “The immigration policy should have minimal impact on buyers of luxury real estate in Miami.”

 

Calixto Garcia-Velez, executive vice president of FirstBank Florida

“Sales and developer activity are affected by economic drivers, not necessarily political changes. For example, the Federal Reserve has the potential to have a more effective impact on real estate, as any increase or decrease in interest rates can materially affect someone’s ability to pay a mortgage/loan. Although the new president cannot directly influence the Fed, the movement we’ve seen across America and the new administration’s platform could influence the Fed’s decision-making process moving forward.

“It is premature to predict long-term activity as a result of the election. In any event, it is important to note that change in political arena does not necessarily mean change in the real estate market. More significant drivers are what occurs in the world markets and the countries that directly contribute to our real estate activity. For example, Latin America’s economics and political landscape may have more of an effect than short- or long-term election results.

“Regardless of who is president of the United States, Miami has been, and will continue to be, a safe investment and beacon of strength and stability for Latin American investors.”

 

Ron Shuffield, Realtor, president and CEO of EWM Realty International

Shuffield does not think it means uncertainty for the market because Trump is such a highly recognized entity within Miami’s real estate community. “A president-elect who has frequently stated that one of his main goals in office is to address overregulation by the government would have an immediate positive impact on the market.

“I see it as all the more positive in the long run. While much of the luxury market is driven by cash or mostly cash sales, securing a mortgage, especially at the entry level, has become incredibly cumbersome. The overly stringent credit limits that came to pass as a reaction to the financial issues from the recession have had a very negative influence on specifically, the entry level market. His working to eliminate unnecessary barriers will certainly help keep the market moving forward at a viable growth pace.”

Shuffield also doesn’t see negative fallout in the Latin American market. “The person who is purchasing in South Florida is in the U.S. legally, and they certainly have means. Trump has always said that he has no issue with people who are in the U.S. legally. Will the Latin American buyer be psychologically affected and hence not purchase? For the most part, I really do not think so because we are already seeing a softening of that stance from even 60 days ago. I believe Trump’s pro-business, pro-real estate stance will compensate for any negative feelings they may have.”

 

Alex Zylberglait, broker and senior vice president of investments with Marcus & Millichap

In the short term, uncertainty created by a new administration will most likely mean a pause among some investors until emotions settle down. But Zylberglait doesn’t project a slowdown in deals. “Miami real estate deals in South Florida and especially Miami are, in big part, fueled by foreign capital. Except for Mexico, the impact of the Trump elections hasn’t reflected negatively on the value of their currency against the dollar. On the contrary, from the yen to the euro, currencies around the world gained strength, making U.S. real estate more affordable. Also, many real estate investors feel comfortable having a real estate person calling the shots in the White House.

“Having said that, every new administration brings uncertainty to the market so we may see a rush to close deals before Jan. 20 to take advantage of current rules on the books to play it safe. I would not be surprised if the uncertainty in the stock market will re-direct capital to the real estate market in search for a better return.”

Longer term, it will all depend on how the credit markets respond to the new administration, Zylberglait said. “If banks trust Trump’s ability to govern and support its agenda in terms of lending regulations, lenders will feel comfortable refinancing deals and making acquisition and construction loans. Otherwise, it will negatively impact the future of deals because most domestic investors need financing to close on a deal and developers to finance new construction. Since many foreign investors buy cash, they will have the flexibility to buy assets even when the U.S. credit markets put more restrictions on lending. Miami benefits from cash-buyers from across the globe so a tighter lending environment will have less of an impact in Miami than in other cities.”

Zylberglait doesn’t see a slowdown in foreign investment on commercial real estate in the $1 million to $20 million range. “Having said that, if the Trump administration develops an anti-immigration stance, it will hurt deals. Investors are people and they go where they feel welcome. … It is important to see how governments across LatAm will react to Trump’s unexpected victory.”

 

Edward W. Easton, chairman and CEO of the Easton Group based in Doral

“In my opinion, President Donald Trump will not be harmful to Miami real estate. Because he understands real estate, I’m of the belief that he’ll be pro-growth between South and Central America, and North America — and that will be to our benefit, if in fact it happens. Same for long-term activity: It will take time, but in my opinion, it will be neutral or positive.”

Easton believes there will be a waiting period where people watch and see what kind of people Trump surrounds himself with. “I’m hopeful he will be a pro-business president and will cut back on the regulations that I believe are harming our economy.”

Foreign sales are down, but mainly because of currency, not because who the president is, he said. “What will be helpful is if the Trump presidency will be less regulatory than the Obama presidency. Regulations, especially around the Dodd Frank Act, have caused some worry for potential investors from South and Central America. That basically puts the burden on the investor to supply a lot of the documentation to the government about what they’re doing. And that’s not something investors want to have happen. So, maybe by Trump eliminating a lot of the regulations, that will be very positive for investment in the United States by foreigners.”

Regarding Latin American investment, “I believe it will be a net positive. Their fears of investing are coming from what’s going on in their own countries, more than the fears of what’s going on politically in our country. Real estate is a protective asset for them, and I don’t think that reality changes. They feel safe putting money in America and that will continue. Regulatory behavior will be helpful for that.”

 

Aaron Drucker, managing broker in Miami for national real estate brokerage Redfin

Inventory levels and economics will drive consumer decision-making, not election results. Any uncertainty will be short term as Trump lays out more concrete plans for how he’ll help the housing market, Drucker said.

Some wealthy sellers may delay listing their homes this year, hoping to get a more favorable death tax rate, he said. Trump’s proposed tax plan does include repealing the “Death Tax.” “I don’t believe developers will make any rash decisions or change any current promotions they are advertising. For projects currently on hold, it’s likely some developers will revisit coming to market if they believe GDP growth will improve under a Trump presidency and a Republican-led congress.”

Long term, if Trump can execute his tax plan, business and personal taxes will be cut from current levels, Drucker said. Finance regulations implemented under Dodd-Frank and the CFPB could be repealed or replaced with guidelines that are more business-friendly.

“One of the biggest impacts Trump can have to the housing market long term is a refocus on FHA loans. Those are the federal government’s strongest tools for increasing home ownership and expanding access to housing for low-to-middle income and minority Americans, but the mortgage insurance premium for the life of the home loan under FHA can be a deterrent for some borrowers. If Trump can remove that premium, we could see increased access to home ownership and sales volume in the market.”

Trump can also relax some of the scrutiny appraisers must give to the “condition” of the home required when a veteran obtains a VA loan, Drucker said. “When veterans are trying to buy a home with a VA loan and get into multiple-offer situations, it can be hard to compete with other buyers bringing conventional loans or cash to the table. Trump has talked a lot in the campaign about the importance of taking care of our veterans, so we’ll see if he incorporates their housing needs into his plan.”

 

Jill Hertzberg and Jill Eber, “The Jills” at Coldwell Banker, master brokers

Uncertainty can rattle the stock market, which impacts the high-end luxury market, The Jills said. Election night was difficult for the market, but it rebounded the next day.

Longer term, “It’s hard to have a crystal ball, but the Miami market will really depend on the growth of the economy in the next year, both here in the U.S. and economies around the globe. The world is so interconnected, and we are very dependent on what happens in our feeder markets. We are a primary as well as a second- and third-home market, and we are very attractive [for] our favorable taxation [and] reasonable pricing compared to the Northeast U.S., California, Europe and Brazil, and [the U.S. is] a safe country for capital flight.”

South Americans will continue to invest in Miami, the Jills believe. “They have been coming for years and years, they have relatives and friends here, and they are very comfortable here.”

 

Mark Meland, a partner at Meland, Russin and Budwick

While markets don’t like uncertainty, the transactions scheduled to close before the end of the year likely took political risks into consideration, Meland said. “So, in the short term, we do not see much impact [on] the markets. Certainly, interest rate volatility is more impactful in the short run. In the long term, a Republican president with a Republican House and Senate should provide for similar, or favorable, tax treatment for real estate transactions.”

The maturity and stability of the market and the U.S. dollar are more important factors than immigration policy, he said. “While some foreign buyers may be investing for immigration purposes, i.e. EB-5 investments, most are investing in the U.S. market for the stability of the market, as a hedge against currency fluctuations/devaluations and inflation in native countries. The devaluation of Latin American currencies to the dollar (i.e. Mexico) could have potentially negative effects on the real estate market as U.S. real estate assets will be more expensive for these foreigners.”

 

Paul Shelowitz and Ira Teicher, real estate attorneys at Stroock, Stroock & Lavan

These attorneys think that in the short term, Trump’s victory will temporarily chill sales activity, given how overheated the real estate market is right now. As to developer activity, there will be little or no discernible impact given the long lead time associated with project development, they said.

“Our clients tell us that uncertainty relative to a Trump presidency is expected to create buying opportunities. Of course, with that comes additional risk. Our clients are already acting on the news and putting out feelers for jittery institutions and the like. Our clients have also noted that a positive/negative start to Trump’s administration might bring added/reduced value to properties located in the vicinity of Trump branded assets. The latter point of course remains to be seen.”

They believe Latin American investors will perceive the same opportunities that their domestic clients have noted. “Our experience dictates that shrewd investors — here or abroad — are able to divorce their own political views from their investment decisions. We don’t believe that Trump’s anti-immigration stance will materially impact that analysis.”

 

Ken Krasnow, executive managing director for the South Florida region, Colliers International

The lack of certainty and unpredictable nature of any election affects investor confidence, Krasnow said, but market volatility was short-lived, and, ultimately investors found opportunity.

“While uncertainty levels remain high, we expect the Fed to delay raising interest rates this year, and investors may push investment decisions into Q1 until they understand what a Trump presidency means for them. … Miami is already recognized as a safe haven for investors, and Trump’s promise to lower taxes and reduce capital-gains rates could spur additional investment here. An area to watch would be the industrial market: Trump’s plans to renegotiate trade agreements may pose a level of uncertainty for Miami. Global trade and job growth have been a catalyst for the growth of Miami’s industrial market.”

 

Liza Mendez, Realtor

“Some portions of the market have been at a standstill, waiting the results. Now that we know the direction, the marketplace will start to make decisions on what is best.” But Mendez is most optimistic about “getting our government to actually work on the issues and provide solutions rather than gridlock.”

Source: Miami Herald

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