Faena House, the ultra luxurious xanadu that Argentinian developer Alan Faena is building as the residential portion of his Faena District Miami Beach project, (let’s just call it Faena District for short) has fifty percent of its units under contract,according to a Faena representative.
The 18-story, 47 unit building comes with major starchitecture cred, being designed by Foster + Partners (a.k.a. Pritzker prize winning architect Lord Norman Foster), but that’s just the tip of the iceberg. It will have features and amenities galore, including its signature aleros (don’t take the hallway to get from A to B, take the balcony!), really major pieces of hurricane resistant glass, and humungous sliding hurricane glass doors (12.5 feet in some instances!). There will be a private residential beach club separate from the Faena Hotel next door, pools, men’s and women’s spas, residential lounges of course, and “gardens with both common areas and more intimate spaces” designed by Raymond Jungles.
High-End High Times
Updated 21 hours ago
This South Beach condo recently sold for $25 million. In just the first six months of the year, 400 condos priced at $1 million or more sold.
Is Miami-Dade County already experiencing another condo boom — this time strictly in the luxury market?
During the first half of the year, some 400 condos worth at least $1 million each sold in just the resale market alone, according to CondoVultures.com.
That’s up 7.8% from the same time last year. Even more remarkably, the median per-square-foot price hit $699. Prices in the luxury market haven’t been near that number since 2007.
Eye-catching individual deals have accented the luxury boom, including the recent $25-million sale of a condo on South Beach and three sales of more than $10 million at the St. Regis Bal Harbour Residences.
Many buyers are foreign — from Latin America, Russia and Europe. For most, the units are investment properties or second homes.
“If I’m an investor, I can buy a new unit that was built during the boom … for a cheaper price than new construction,” says Peter Zalewski, principal of CondoVultures.com. He notes that there are 10 condo towers already under construction east of I-95 from Miami to northern Palm Beach County. Developers have proposed another 35, including one in South Beach with prices at about $1,500 per square foot.
Cash is king, too. Although Zalewski doesn’t have updated statistics, he says that a year ago, a CondoVultures study found some 80% of the condo transactions in the county were all cash. Plus, he notes, “there’s typically about a 15% to 20% premium that someone is likely to pay if their offer is based on financing.”
January-June Luxury Condo Resales (Miami-Dade)
|Year||Units Sold||% Change||Median Price Per Sq. Ft.||% Change|
June 08, 2012 03:00PM
Casa Casuarina The late designer Gianni Versace’s former Miami Beach home Casa Casuarina is on the market asking $125 million, according to the Wall Street Journal. The 10-bedroom, 11-bathroom, 19,000-square-foot estate was purchased by Versace in 1992 for close to $10 million. The designer had made $33 million in renovations to the property, adding a 6,100-square-foot south wing, a 54-foot-long mosaic-tiled pool lined with 24-karat gold and a courtyard before he was murdered outside the house in 1997. The mansion, which is located at 1116 Ocean Drive in South Beach, has since been converted to a hotel and restaurant by Peter Loftin, a telecom entrepreneur. It is now called the Villa by Barton G. Loftin purchased the house in 2000 for $20 million. Jill Eber and Jill Hertzberg of Coldwell Banker are marketing the property. [WSJ]
Northeast, Latin American buyers drive 55 condo sales at Canyon Ranch in 2012
March 12, 2012 12:00PM
Canyon Ranch Living
Miami Beach’s Canyon Ranch Living has closed on 55 properties in 2012, following a total of 150 sales in 2011. About 90 percent of those residents are from the Northeast and Latin America, according to Michael Sadov, real estate sales director at the 580-unit property. The central and south towers at the property have sold out, along with half of the units at Canyon Ranch’s North Tower. “There are not that many new residences remaining in the North Tower,” he said. Last year, a wave of Canadian buyers contributed in large part to sales at the property. — Alexander Britell
South Beach condo units set for auction
January 26, 2012 12:00PM
A total of 48 condominium units in South Beach will be heading to auction in the next 30 days, with a number from high-profile projects like the Setai, Portofino and the Murano Grande, according to a report from Condo Vultures. The units hold a total of $14.5 million in final foreclosure judgements. A unit at the Setai is the highest-priced foreclosure judgment set for auction, at $2.5 million. The next-highest foreclosure judgment is on a unit at the Bentley Bay condo complex in South Beach. In December, a unit at the Setai sold for $21.5 million, one of the largest sales of 2011. — Alexander Britell
Posted on Fri, Dec. 16, 2011
Brazil’s economy slows
BY MIMI WHITEFIELD
Brazil still might be the darling of foreign investors and Miami real-estate agents but as the year draws to a close, its once booming economy is slowing.Fueled by a commodities boom, a growing middle class, and mineral wealth, Brazil’s economy hummed along with a 7.5 percent growth rate in 2010. But now most economists are pegging gross domestic product growth at 3 to 3.5 percent this year — and in its most recent forecast, Fitch Ratings said the Brazilian economy would grow only 2.8 percent.“Brazil is slowing down; it’s been slowing down since the second quarter,’’ said Guilherme Da Nobrega, senior economist at Sao Paulo-based Banco Itaú, during a recent visit to Miami. His estimate has been revised down from 3.6 percent to 3 percent growth.
The Brazilian economy, he said, “was growing too fast at the end of last year.’’ Inflation also was rising.
That economic exuberance — coupled with a strong real and depressed local real-estate prices — drove Brazilians to Miami in 2011 to buy everything from ocean-view condominiums to sports gear, iPads, and fashion.
The Brazilian economy also is closely watched in South Florida because Brazil is the region’s top trading partner, and earlier this year a group of nearly 200 Floridians traveled to Brazil on a trade mission led by Gov. Rick Scott.
To cool things down, the Brazilian government adopted tighter economic policies at the beginning of 2011; its central bank also raised rates. The government also held back on public spending for infrastructure projects, such as bridges, said Da Nobrega, who spoke at the Americas Society/Council of the Americas Latin American Predictors Forum in Coral Gables earlier this month.
“That did the trick,’’ said Da Nobrega.
But Brazilian industrial production began to slump in the third quarter and was down 2.2 percent in October compared to the previous year. Twenty out of 27 sectors contracted during the month, according to Barclays Capital.
Though it is still considered strong, the Brazilian currency also began to bounce around this fall — a change that has affected some Miami real-estate purchases. The real has fallen 8.1 percent against the dollar in the past three months.
With the economy weakening, Brazil’s central bank began cutting rates in August.
And to counteract the potential impact of a widening European financial crisis, it took several measures Dec. 1 to stimulate and strengthen the economy. They included tax cuts on financial operations, tax credits of up to 3 percent on 8,500 manufactured products destined for export sales, and increased home-value eligibilityfor developer tax breaks under the My Home My Life program.
To encourage the inflow of long-term foreign investment capital, for example, the taxes on foreign investment in stocks and venture capital were cut from 2 percent to 0.
The tax on so-called white goods — stoves, refrigerators, washing machines, and the like — also was cut to encourage the consumption of durable goods.
Da Nobrega said he anticipates “another couple of months of negative numbers” before the economy begins to pick up again. With the tax cuts, he said, the Brazilian economy should be growing by the second quarter and he predicts growth of about 3.5 percent in 2012.
“We are happy with that number,’’ he said. With current policies, he said, there’s a little more risk for higher inflation but a bit less risk of slow growth.
But Da Nobrega said Brazil will have to continue to watch the European situation closely.
Meanwhile, with the approach of the 2014 World Cup in several Brazilian cities and the 2016 Olympic Games in Rio de Janeiro, Brazil is in the midst of an investment boom. “We don’t run any risk of over-investment in Brazil,’’ Da Nobrega said. “As long as there is financing at all in the world, Brazil is going to take an important chunk of it.’’
Figures released by Brazil’s central bank Thursday showed that the United States wasstill Brazil’s biggest foreign investor with $105 billion in investments, excluding inter-company loans, at the end of 2010. And although China has replaced the United States as Brazil’s top trading partner, Chinese investments totaled just $8 billion, putting it in 16th place among foreign investors in Brazil.
Overall, foreign investment increased from $163 billion in 2005 to $580 billion in 2010, according to the central bank report.
Other analysts also say that 2012 seems to be shaping up as a better year for Latin America’s largest economy.
“The recent depreciation of the Brazilian currency plus the slowdown in inflation and the drop in interest rates will be very helpful for improving the health of the Brazilian economy,” Eugenio J. Aléman, senior economist at Wells Fargo Securities, said in a report released last week.
The sales of single-family homes and condominiums in Miami-Dade County rose by 51 percent in the third quarter, according to a report from the Miami Association of Realtors. It was the 13th consecutive quarter of increasing sales in Miami. The average sales price of single-family homes also rose, jumping 19 percent, and the average sales price of condos jumped by 21 percent. “Strong demand from international buyers is fueling robust sales activity in Miami despite low consumer confidence and high unemployment,” said Jack Levine, chairman of the board of the Miami Association of Realtors. “Local sales are expected to set a record this year that should exceed the height of the boom in 2005.” Total housing inventory in Miami-Dade County fell 38 percent from the same period in 2010, with a 65 percent total drop since August 2008. –Alexander Britell