By Sunny Isles Real Estate Expert on February 19th, 2013
may have heard of the name Jorge Perez before. Once one of the most unstoppable developers in Miami, Mr. Perez lost more than $1 billion in the economic downturn in the mid-2000’s. Despite losing this staggering sum, he is currently plotting his comeback for 2013, many are waiting with baited breath to see just how it will turn out. A member of Related Groups, Perez once again plans to turn his attention toward developments in South Florida, while CEO Jeff Blau and Chairmen Steven Ross turn their attentions towards large scale New York projects, like Hudson Yards.
Perez believes that the housing market in Miami will shortly be back in full force. For example, one of his most devastating losses during the downturn was the Icon Brickell development. Some of his projects even had to be returned to their lenders, and because he had borrowed heavily to finance these projects, his downfall was even steeper. However, today, it is 100% sold. In a recent statement to Reuters Impact Players, Perez said:
“Everyone used to say that there are three important things in real estate: location, location, location. Now I say timing, timing, timing. Meaning that as a developer, I need to have a crystal ball, so I can try to invest based on what I see in the market.”
Based on his own keen sense of tuition, Perez predicts that 2013 is going to be Miami’s strongest year of recovery yet. Because many rely on his guidance, it will be interesting to see if his predictions come true. “My gut tells me that 2013, to the surprise of many, is going to be a much better year than people are expecting. I think that we are going to have, particularly in the real estate market, a much better year.”
Jorge Perez and Related Groups have been at the forefront of some of Miami’s most ambitious projects. For example, Perez was at the helm of Trump Hollywood when it opened in South Florida in 2009. Related Groups was the developer, and the entire structure cost a staggering $355 million to complete. With 40 stories of units facing the ocean, it offers one of the most comprehensive listings of services and amenities for Tower residents.
It is certainly true that Jorge Perez’s past projects have created a forest of condo towers throughout Miami over the last several decades. Some of these projects have permanently altered the appearance of Miami’s skyline. However, it yet remains to be seen whether investors and home buyers are going to trust his once infallible instincts. Will the success of the former kingpin be assured, or will he fail? Construction funding is more difficult than ever to come by, even for heavyweights like Perez, and it will be interesting to see if lenders decide whether or not to take a chance and bet on this titan again.
Regardless of the outcome, the name Jorge Perez will be heard again in 2013.