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According to the Miami Association of Realtors, luxury home sales in Miami posted double-digit gains while existing condominium transactions surged year-over-year in December 2017.

Luxury ($1 million-and-above) existing Miami condo sales jumped 47.6 percent year-over-year, from 42 to 62. Luxury Miami single-family home sales rose 16.7 percent, from 60 to 70. Existing Miami condo sales increased 6.5 percent year-over-year in December, while single-family transactions stayed effectively even (down 0.7 percent).

“Strong pent-up demand for Miami luxury single-family and condominiums fueled December’s strong home sales,” said George Jalil, a Miami broker and the 2018 MIAMI chairman of the board. “Luxury sellers are becoming more realistic with their asking prices, and buyers are coming off the sidelines. Federal tax reform is also starting to have an impact as more Northeastern buyers are opting to purchase in Miami to escape the higher taxes they could face in states like New York and New Jersey.”

Federal tax reform, which was signed into law Dec. 22, 2017, sets a deductions cap for income, sales and property taxes at $10,000. The new cap could lead more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.

Total Miami Home Sales, Dollar Volume Increase in December

Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — increased 2.9 percent year-over-year from 2,156 to 2,219.

Miami existing condo sales — which are competing with one of the most robust new construction markets in the country — increased 6.5 percent year-over-year, from 1,084 to 1,154. Single-family home sales decreased 0.7 percent, from 1,072 to 1,065.

Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.

Total sales volume for all properties accounted for $983.5 million last month, up 23.2% from $797.9 million a year ago. Sales don’t include Miami’s multi-billion dollar new construction condo market.    Click Here to Read More on World Property Journal

Many Brazilians are buying at such condo developments as One Thousand Museum, Three Hundred Collins and Turnberry Ocean Club.

Many wealthy Brazilians are buying real estate in the Miami area again after a retreat during the last two years.

Fernando de Nuñez y Lugones, executive vice president of ONE Sotheby’s International Realty, told Mansion Global that Brazilians are starting to buy more U.S. properties after many of them canceled purchases last year.

De Nuñez cited a recent increase in Brazilian interest in units at Turnberry Ocean Club, a 54-story condominium in Sunny Isles Beach, where 21 percent of the international buyers have been Brazilians.

At Three Hundred Collins in Miami Beach, Brazilians have bought four of the 16 luxury condos sold so far during the construction phase of the 19-unit development, which has units priced from $1.7 million to $9 million. Three Hundred Collins is expected to be completed in October.

Louis Birdman, co-developer of One Thousand Museum, a 62-story condominium in Miami designed by Zaha Hadid Architects, said 40 percent to 45 percent of the preconstruction buyers are Latin Americans, and more than half of the Latin buyers are Brazilians.

Many wealthy Brazilians are buying real estate in the Miami area again after a retreat during the last two years. Fernando de Nuñez y Lugones, executive vice president of ONE Sotheby’s International Realty, told Mansion Global that Brazilians are starting to buy more U.S. properties after many of them canceled purchases last year. De Nuñez cited a recent increase in Brazilian interest in units at Turnberry Ocean Club, a 54-story condominium in Sunny Isles Beach, where 21 percent of the international buyers have been Brazilians. At Three Hundred Collins in Miami Beach, Brazilians have bought four of the 16 luxury condos sold so far during the construction phase of the 19-unit development, which has units priced from $1.7 million to $9 million. Three Hundred Collins is expected to be completed in October. Louis Birdman, co-developer of One Thousand Museum, a 62-story condominium in Miami designed by Zaha Hadid Architects, said 40 percent to 45 percent of the preconstruction buyers are Latin Americans, and more than half of the Latin buyers are Brazilians. Click Here to Read More on The Real Deal

As new condo units continue to come online in 2017, resale pricing in Miami’s urban core is reporting a drop for the first time in eight years.

Greater Downtown Miami’s condo inventory will grow by 3,456 new units this year, the largest surge of new product expected over the next three years, according to the latest Miami Downtown Development Authority report authored by Integra Realty Resources.

That annual growth is expected to fall after 2017: 2,846 units will be delivered in 2018 and 1,960 units in 2019. Between 2014 and 2019, 12,257 new units will be completed. While that number is high, it’s still significantly less than the more than 21,000 condos that flooded the market between 2004 and 2009, according to the report, which focused on July 2016 to January 2017.

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Mexican developer Grupo Eco is going all commercial on its two-phased Hallandale Beach project.

Construction is slated to be completed on Atlantic Village I by the fall, developer Elias Benaim told The Real Deal. The 32,000-square-foot retail and office development, at 801 Federal Highway, signed on new tenants La Estancia Argentina, Doggis Arepa Bar and Flippo’s Kids Playground.

Asking rents continue to be in the same $25 per square foot to $35 per square foot range, triple net, for the second floor and about $10 more per square foot for the ground floor. La Estancia, an Argentinian restaurant, signed a 15-year lease for 3,000 square feet and Doggis signed a 10-year lease also for 3,000 square feet. Flippo’s is leasing about 8,000 square feet on the second floor, bring the project up to about 50 percent leased.

Grupo Eco originally planned to have a residential component for the second phase, Atlantic Village II, but is instead focusing on more commercial space based on market conditions. “ArtSquare has 350 units coming two blocks away so we feel we’re going to succeed in filling the need for commercial space,” Benaim told TRD

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When completed in October, building will pass Four Seasons Miami tower as the tallest in Florida.

At 85 stories and 830 feet tall, Florida East Coast Realty’s Panorama Tower will add new heights to Miami’s skyline when the skyscraper tops out.

Even at its current height of 735 feet, Panorama towers above most other buildings in Miami. The developer released new photos of the view from the 76th floor, which shows buildings like the Mandarin Oriental hotel on Brickell Key below the clouds, and other Miami towers peaking through.

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The Miami Beach Commission is moving forward with a new bidding process for the Collins Park garage, a project that gained attention for a failed bid by the late architect Zaha Hadid.

The commission will vote on Wednesday whether to adopt a resolution ranking proposals for the new request for proposals (RFP). The city received seven proposals for the garage after it issued the new RFP in September: Burke Construction Group, Finfrock Construction Inc., Kaufman Lynn Construction, KVC Constructors Inc., Munilla Construction Management, Plaza Construction Group and Stiles Construction.

Of those, the evaluation committee narrowed it down to four, with KVC Constructors as the top bidder, Plaza Construction as No. 2, Finfrock as the third ranked and Kaufman Lynn as the fourth. KVC has worked on five major garages in Miami-Dade, including the Braman Motors Parking Garage, City View Parking Garage, Museum Parking Garage, the Palms Parking Garage and Wynwood Parking Garage, according to city documents.

In Miami Beach, KVC built the Pennsylvania Avenue garage. The second-ranked bidder, Plaza Construction, cited its experience building 3.4 million square feet blocks away from Collins Park. And the third-ranked bidder, Finfrock, is partnering with Arquitectonica, ArquitectonicaGeo and Kimley Horn. They completed the 720-car Venture garage in Aventura.

 

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From South Beach to Fort Lauderdale, hotel properties were hot tickets in South Florida’s commercial real estate market this year, often fetching top dollar from investors looking to grow their foothold in the region.

Even with news of a possible oversupply in some cities and the Zika virus hurting tourism, the hospitality industry was the grounds for many of South Florida’s priciest real estate deals in 2016. The Real Deal compiled the five most-expensive hotel trades that closed this year for your reading pleasure.

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Cooling residential market or not, South Florida is riding a now years-long trend of falling foreclosures rates.

A newly released report shows that November marked yet another month of evaporating foreclosure activity in the region, bringing down South Florida’s rank to 10th in the nation among major metropolitan areas.

The report, compiled by real estate research company ATTOM Data Solutions, said one of every 786 housing units in South Florida was in some stage of foreclosure last month. While that rate is still relatively high, it’s fallen nearly 18 percent compared to the November 2015.

Of South Florida’s three counties, Miami-Dade had the largest share of distressed properties with 1,479 homes in the foreclosure pipeline last month. Broward came in second with 1,012 housing units, followed by Palm Beach with 657.

Miami was once one of the worst hit in the nation for foreclosures during the housing crash, in no small part because of loose mortgage restrictions and a surplus of condo projects.

As home prices recovered and buyers adopted all-cash purchases, however, the region’s foreclosure rate has steadily fallen over the past few years.

The nation’s top ranked location for foreclosures in November was Harrisburg, Pennsylvania, where one in every 341 homes was distressed.

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UPDATED Dec. 12, 3:30 p.m.: Downtown Miami, traffic-clogged by day and deserted at night, could soon be transformed into a pedestrian-friendly urban dining and entertainment hub, say planners, brokers and local business owners.

Sandwiched between Northeast Sixth Street to the north, Biscayne Bay to the east, and the Miami River to the south and west, downtown Miami has lagged as development has boomed in nearby Brickell, Wynwood and Edgewater.

But participants at a seminar last week, sponsored by the Urban Land Institute and Akerman LLP said a mix of public and private development is about to bring about big changes to downtown Miami.

Mika Mattingly, executive vice president of Colliers International said, “downtown is finally going to move.” Over the past two years there have been $1.8 billion in transactions in the downtown area with prices per square foot increasing from $82 to $500, she said.

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