Over the course of the last couple of years, things have been changing in Miami. While it has had a good reputation for being a strong real estate market for residential buyers, some investors, particularly foreign investors, were shy about putting too much investment into the city, as they weren’t sure it was a good idea for the long-term. That’s changing though, as the city has been showing that it is a serious contender when it comes to solid investments that can appreciate in value.
Purchase of the Viceroy Hotel
One of the most recent signs that foreign investment is picking up in the city is the purchase of the former Viceroy Miami hotel by Al Rayyan Tourism Investment Company, a business out of Qatar. They paid $64.5 million for the 148-room hotel. They consider this to be a good purchase, and they believe that Miami is going to keep growing, which will help the value of the building, and their business, grow.
Massive Sale to Sumitomo
Miami is growing considerably. Consider the recent purchase of Miami Tower in the downtown area by Sumitomo Corporation. This Japanese company does not make investments lightly, and they have only a few real estate investments in the United States. Miami Tower was one of those investments, and they paid $220 million. This shows their belief that the city is going to continue to grow and that their investment will pay off.
Another massive purchase comes from ARTIC. In 2014, they bought the St. Regis Bal Harbour for $213 million, which is more than a million per room. This is not their only investment though. They also bought the Brickell Hotel and paid $436,000 per room for the property. They then renamed the property W Miami.
What Are the Companies Looking for When They Buy?
The managing director of ARTIC, Tarek M. El Sayed has said that his company looks for three specific things when they are deciding whether or not they will make an investment. They look at the quality, the location, and the architectural design. It’s quite likely that this is what most other investment companies are looking for as well, and it actually correlates quite well to what individuals are looking for when they buy property.
One of the great things about the designs in Miami is that you don’t have a lot of cookie cutter buildings. There are some truly stunning concepts and building designs throughout the city. Paired with their great location, and the quality of the buildings, it is easy to see why so many investors have been looking toward this city in recent years.
Other Cities Are on the Rise Too
Miami isn’t the only city in the country that is finding more foreign investment opportunities though. The Pebblebrook Hotel Trust, the same company that sold the Viceroy, sold the Redbury Hotel in Los Angeles for $40.9 million and land in Boston for $6 million. They sold everything on the same day and announced the transactions at the same time.