Jorge Perez Plots His Comeback In 2013 For Miami Real Estate

By Sunny Isles Real Estate Expert on February 19th, 2013

Miami Homes For Sale

Luxury Homes For Sale In Miami Beach

Home buyers in Miami

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.

Once Near Empty Downtown Miami condos reach 93 percent occupancy

By Sunny Isles Real Estate Expert on March 10th, 2012

Miami Downtown Condos For Sale

Downtown Miami Condos

The latest report on downtown Miami’s condo market

shows almost all of the units built during the housing boom are full. That’s thanks to renters, who would be priced out if not for all of the cash purchase deals.

Here is the latest article by DOUGLAS HANKS from Miami Herald. You can read it below or click the link to read it at Miami Herald site:

Downtown Miami condo

canyon is almost full, thanks largely to a steady flow of cash from Latin America.

The latest survey of Miami downtown high-rises built during the housing boom shows more than 90 percent of the condos are occupied. After Latin American investors snapped up condos at distressed prices amid a wave of bankrupt high-rises, they turned to local renters to fill them. Four years into the buying spree, vacant units have almost disappeared.

“I always encourage my clients to bring their checkbook for the first month’s rent,’’ said an agent with downtown Realty who specializes in rental units. “There is a lot more demand than there is supply.”

The study by Miami’s Downtown Development Authority found 93 percent of the nearly 23,000 condominiums built in downtown Miami after 2002 are occupied. Of that, only about a third are occupied by full-time by owners, with the majority serving as rental apartments.

Behind the statistics are a fundamental shift in real estate math allowing for downtown Miami to become one of South Florida’s hottest rental markets.

The boom prices, where top condos were selling for $600 or more a square foot, would require rents too pricey for all but the most affluent residents. Instead, investors who bought then hoped to flip their units for even more money to future buyers.

Even at the sharply discounted $200-a-foot purchase prices in the depths of the housing bust, many of the condos would be too expensive to generate enough rent to cover association fees and mortgages on the units. But with the vast majority of investors paying cash for their downtown condos, they require far less rental revenue each month to make the deals “pencil out” as reasonable investments.

“Traditional financing wouldn’t have made these rentals viable,’’ said Werley, who conducted the study in a partnership with Goodkin Consulting. “If you had a mortgage on a half-million-dollar condo, the monthly costs would be way out of line with any reasonable rent you could generate.”

/Not all condos being rented in Miami’s urban core depend on cash investments, and the DDA study only covers units built during the last decade. Other indicators point to a downtown that is an increasingly popular place to be. The bust didn’t stop a wave of new retail complexes from opening, including the Midtown Miami mall on northern side of downtown and the Mary Brickell Village mall to the south. Restaurant taxes have surged 77 percent within Miami city limits since 2005 compared to a 35 percent gain countywide.

Tyler Tejeda commutes almost an hour each way in order to spend weekends in Miami. The 24-year-old recruiter for a Fort Lauderdale firm moved into a Brickell Avenue apartment in August, despite having a job nearly an hour away. “I could move to Fort Lauderdale if I really wanted to,’’ Tejeda said. “But I’d rather be in Brickell on the weekends. It bothers me less to have to commute on weekdays than have to come down to Miami on the weekends.”

Paul Riemer could afford to buy a condo of his own, but the young insurance executive instead pays upwards of $2,000 a month for a one-bedroom apartment at the Icon Brickell, a posh condo complex on Brickell Avenue.

“I’m not ready to make a big purchase yet,’’ the 23-year-old said. He cites a gap in what he can afford to rent and what he can afford to buy. Why move out of a luxury apartment to purchase his own condo somewhere else with a large mortgage?

“I have the money to comfortably rent,’’ Riemer said. “I don’t know if I’d be able to comfortably buy.”

The 93 percent occupancy rate in the latest DDA condo survey identifies little more than 1,000 vacants units in a condo market that came to symbolize the excess of Florida real estate. And it marks a big improvement over the 65 percent occupancy rate in the first DDA survey taken four years ago — a number that at the time seemed surprisingly high.

That was in 2008, at a time when South Florida real estate sales were just beginning to show a rebound. But prices were heading the other way, accelerating into a decline that has so far last five years, according to the Case-Shiller housing index. At the time, the DDA wasn’t sure it wanted to know how many people were living downtown.

“We were hearing from everybody driving down the road: Hey the condos are empty,’’ said DDA director Alyce Robertson. “You never know what the numbers are going to say. What if they really were all empty?”

With a hot rental market, downtown Miami has become a more expensive place to live. Mark McCann, owner of the Miami Apartment Locators brokerage, said a one-bedroom apartment in the downtown area went for about $1,300 a month several years ago. “Now that’s almost impossible,’’ he said. “Now it’s closer to $1,500 or $1,600. There is a lot of competition for the units. There was more supply before the recession.”

The rental market has helped usher in a new crop of condo projects downtown, a revival many thought might have to wait at least a decade after the big crash. Harvey Hernandez runs the company selling units in Brickell House, a 46-story building planned for 1300 Brickell Bay Drive. His sales staff runs weekly reports on the rental market — statistics that can help close a sale for a $400-per-square-foot unit at Brickell House.

“The rental market influences the buyer a lot. It is a great option,’’ Hernandez said. Miami “has about half the inventory available for rent we had four months ago. And four months ago, it was at least half of what it was four months prior.”

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It Is Not Too Late To Own Luxury Condo at the Icon Brickell

By Sunny Isles Real Estate Expert on February 6th, 2012

Icon Brickell Miami

Icon Brickell Condo

The Icon Brickell Miami

is certainly one of the premier names in luxury in the Miami area, and you could be the proud new owner easier than you think. It’s unfortunate to note that some luxury condominium properties have suffered from lack of sales in recent years. After all, when the economy is in crisis, people are more likely to put off luxury purchases, and that means homes in a prestigious area such as this one will languish on the market for several months. There isn’t a lot of good about this situation, except that it does force prices lower, which is beneficial to buyers.

Miami Real Estate Prices Are Going Up

In a buyers’ market, such as the one we are currently experiencing, it’s possible for buyers to seek lower prices from sellers, negotiating the prices down until they get a great deal on their new home. Those who have purchased homes in the last few years have most certainly benefitted from this reality. The same is true for Icon Brickell Condos, though the trend is slowly turning. If you take a look at the asking prices and sale prices from 2011, you’ll see that the gap between them is slowly closing. Property values are going back up, and that’s because the recession is coming to a close, at least here in Miami.

Icon Brickell Sales Have Increased Dramatically

This massive project offered more than 1000 units for sale. However, more than 96% of the project is now sold out, thanks to foreign buyers from all over the world. These condo residences were priced anywhere from $300,000 to over $2,000,000, depending on the size of the unit and the layout. However, any unit offers plenty of luxury and elegance. The views from each room are astounding, the pools are crystal clear, and the fitness centers provide great service. In addition, the residences are some of the most beautiful you’ll see in the Miami area, with upgraded flooring and countertops, beautiful lighting and fixtures, top of the line appliances, gourmet kitchens, and bathroom retreats. Everything is stunning, and no detail is left out.

You can still own a bit of this and take advantage of the lingering buyers’ market. If ever there was a time to buy, it’s right now, because the prices will continue to rise in the near future. You can get a great deal on a luxury Brickell condo before the prices are too high again. In fact, prices are so certain to rise that you can consider your home an investment. You’ll be able to see an amazing price appreciation in just a few years.

If you’re ready to own one of these beautiful residences, just give me a call – 1-954-336-1016. We’re knowledgeable and experienced in the sale of Miami condominiums, so you can be sure we’ll know what’s going on at all times. We’ll make the process easy for you, walking you through the negotiations to get the best price and then helping you through the closing process. It’s not hard to purchase a Miami home at a great price right now, especially when you have experts in Miami real estate on your side.