Raanan Katz RK Centers Miami

Raanan Katz on Miami Commercial Real Estate

Natural Sights to Visit in Florida

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Natural Sights in the Miami Area - Raanan Katz (2)

 

There’s no denying that Florida is filled with nightlife and excitement, but there’s a different side to the this area that few rarely think about: the natural sights of Florida. Florida offers tourists and residents the chance to take in the beautiful wildlife and plant life that is unique to the area. The following places are not necessarily sought after by tourists, but they do offer visitors the chance to get in touch with nature.

 

The Florida Keys

Located at the tip of Florida, the Florida Keys are on many people’s checklist when it comes to visiting the area, and it’s no surprise why. The 120 mile stretch of the Florida Keys offer crystal clear waters, a chance to see sea life like manatees and dolphins. Take a swim or, f you’re feeling adventurous, try snorkeling in the water to truly experience the serene setting.

 

Timucuan Ecological & Historic Preserve

Located in Jacksonville, the Timucuan Ecological and Historic Preserve gives visitors a history lesson in addition to a beautiful area to look at. Before Europeans came to America, this area was ruled by Timucuan Native Americans and for 6,000 years this area was preoccupied. Learn the ways that humans were able to take advantage of the land throughout the centuries and what species of animals also live in the area.

 

Gulf Islands National Seashore

The Gulf Islands National Seashore stretches across the beaches of Mississippi and Florida, with many different spots along the way to visit. Along the shores, you can take in the natural beaches, hiking areas, wildlife, and even historic sites. For example, the Fort Pickens Area is home to Fort Pickens, one of 4 forts that were built to defend the nation. It was used throughout the Civil War and was even modernized years following the war. Tours are available daily on the fort.

 

The Everglades

The American Everglades is a huge reserve in the south of Florida that covers 1.5 million miles. Within the reserve lives hundreds of species of protected wildlife, hiking, canoeing, and events throughout the year. Be a part of a tour group and learn about the endangered species that live in the area, or learn about the effects of climate change and unique ecosystems that thrive in the Everglades.

Neighborhoods of Miami

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Miami is home to many unique and interesting neighborhoods and each one has its own personality. Some areas are better for families while others are great for college students and young adults who enjoy the nightlife. Miami offers a wide variety of different vibes from calm and tranquil areas to active business districts. No matter what you’re looking for in a neighborhood, Miami is sure to have a spot for you.

Miami_neighborhoods_map

 

South Beach

I have mentioned South Beach many times in my articles because it has so many interesting Art Deco designed buildings in it. It’s a great place for active young adults that want a neighborhood that feels alive all the time. If you are a lover of the beach, Miami is always going to be a great place to live, but South Beach is the best location to get the most of living close to the ocean. For those with families, South Beach might not be the best option because there’s little room to move around because it is so crowded, but for those looking for a great nightlife spot and gorgeous places to walk, check out this neighborhood.

 

Coral Gables

If you’d rather have more room to move around then Coral Gables is a great spot to look. This area is more residential than South Beach but is just as beautiful. They have a great art culture, offering events every first Friday of the month. According to the website for the city of Coral Gables, this area has 11 places that are listed on the National Register of Historic Places. For families, Coral Gables seems like the perfect place to live with it’s great selection of private and public schools, as well as lovely gardens and interesting museums for the whole family.

 

Brickell

This neighborhood has seen tremendous growth in recent years and has become one of the up and coming areas of Miami. Located in the Financial District, Brickell is easy to navigate with readily available transportation options to other parts of Miami and is easily walkable. This neighborhood is a great choice for young professionals that want to be close to their jobs downtown and also have sophisticated shopping areas and an array of restaurants to pick from each night.

 

Skyscrapers to Change Miami’s Skyline

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miami skyline

At present time, the Four Seasons Hotel is the tallest building in all of Florida at 789 feet high, and until recently no other buildings were allowed to be taller than it because of regulations with the Federal Aviation Administration (FAA). According to the FAA, skyscrapers could not be taller than 800 feet but have recently lifted this ban in May of 2015 and plans for new tall buildings have been popping up. In this race to the top new construction plans are underway and the skyline of Miami will soon look very differently.

 

One Bayfront Plaza

One of the most impressive future skyscrapers, One Bayfront Plaza, is currently being constructed and is going to be the tallest building in the southeastern United States. Upon completion, the building will stand 1,005 tall and have a plethora of amenities within the space including offices, a hotel, a mall, and condominiums. Florida East Coast Realty is in charge of constructing the 80 floor skyscraper will dwarf the rest of the buildings in the Miami skyline. The plans are just below the FAA’s new height regulation that is put in place for the safety of aircrafts flying over the city.

 

Echo Brickell

Another skyscraper approved for construction is the Echo Brickell, which is expected to be completed sometime this year. The Echo Brickell building is located in Brickell, the financial hub of Miami, close to downtown and easily navigable to other parts of Miami. This building will be the home to professionals of Miami who want to experience the ultimate in luxurious living. These penthouses will not only offer exceptional views of the ocean and downtown, they are equipped with the best technology available.

 

SkyRise Miami

Another skyscraper currently under construction is the SkyRise Miami Observation tower. Located in Biscayne Bay, this skyscraper will be a major entertainment attraction for tourists and residents alike. Daredevils will be able to bungee jump inside the tower or ride a free fall ride called SkyDrop. They are also planning on having this tower be a shopping destination with a variety of dining options and live music.

 

Celebrities That Own Real Estate in Miami

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The Miami area is home to beautiful sunsets, a lively nightlife, and miles of gorgeous beaches. It’s no wonder that because there are so many excellent parts of Miami there are also many celebrities that flock to this area. Unlike most of the country, Miami hosts mild winters and warm ocean water almost all year round. The following celebrities own real estate in Miami and they enjoy the many perks to living in this area.

 

Anna Kournikova

This former world-renowned professional tennis player originally lived in Russia until her and her family emigrated to the United States. Back in 1998, Anna played in Miami at a tournament, creating a name for herself in the tennis world. She now lives with musician, Enrique Iglesias in the beautiful bay area of Miami.

 

Julia Roberts

The Pretty Woman star owns real estate around the world, and Miami is no exception. Julia Roberts is a resident of Fisher Island, Florida. Fisher Island is a barrier island that is a part of the Miami metropolitan area.

 

Barry Gibb

This 1970’s singer from the Bee Gees has lived in Miami for years in his mansion that is estimated to be worth $4 million. Barry also lives at Nashville when he’s not living it up in Miami.

 

Phil Collins

In 2015, Phil Collins bought a mansion neighboring Barry Gibb’s residence. The musician bought his $33 million dollar home that had originally belonged to other singer, Jennifer Lopez. The home was originally built in 1929 but has had major renovations since then.

 

Michael Bay

Film Director, Michael Bay, bought Hulk Hogan’s former residence that is perched high above the Intercoastal Waterway. When Michael originally bought this home, he asked the architect that designed the mansion for help with designing the interior. Michael took on huge renovation projects to create a space of his own.

More Miami Luxury Real Estate: Aston Martin and The WorldCenter

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Miami has long been known as a prime market for luxury real estate. Despite the most recent turmoil in the city’s luxury market, the general trend is an increase in Miami real estate valuations. This is by in large due to the market’s adapatation to a new wave of buyers. Two new additions to the skyline are set to make their appearance in the coming years. Here’s a look at them.

The Aston Martin Residences

Aston Martin designs cars and yachts, did you know that they are also in the architecture game?

In 2014, the Coto family of Argentina purchased a small site of land off of the Miami River. At the time and still to this day, the land is regarded as the highest price per sq. ft. of undeveloped land in South Florida. Now on that land a new luxury property is set to be built; one that will join the ranks of Porsche, Armani, Fendi, and Missoni-backed properties in the city; one that will be built in partnership with Aston Martin.

You might know of Aston Martin as the producer of James Bond’s cars in every Bond movie since Goldfinger or maybe you already own one yourself?  In partnership with Coto, Aston Martin will be building the Aston Martin Residences—a 66-story condo tower replete with fitness centers, multiple lobbies, and a spa. It’s part of the companies initiative to be present “in all of the cities where it’s important to be,” says Katia Bassi, vice president of the company.

Signifying the city’s inextricable ties to the ocean, the skyscraper’s sail-shaped form was conceived by local firm Revuelta Architecture in collaboration with Argentina-based Bodas Miani Anger.

via Forbse.com

The Coto family, the Argentinian backer of the project is banking on three things working in the developments favor: brand appeal, an excellent location right on the Miami River and Biscayne Bay, and the ability of the Coto family to finance the project without a construction loan.

Although pricing is yet to be determined, buyers should expect roughly $1,000 per sq. ft., in line with Miami’s most competitive luxury real estate properties. Sales are set to start in March of 2016 and construction is to commence shortly thereafter, with a completion date set for 2021. The hope is that by that time, the luxury climate will again return to a setting that is favorable for investors.

Where other big local developers like the Related Group and Alan Frena have opted to delay luxury development amidst the untoward state of the market, the Cotos and Aston Martin are braving forward with what may very well be a new staple to the Miami skyline. And it looks like they won’t be the only new addition.

Miami WorldCenter

Little more than a year ago, an expanse of abandoned warehouses dotted Miami’s Northside. Recently, the foundation was poured for Paramount Miami Worldcenter, one of several large structures that will make up America’s second-biggest urban development. The Paramount Miami Worldcenter will clock in at $500 million, 700 ft. tall, and will host 60 floors of residential real estate. Alongside the Paramount will be an expanding array of residential, dining, entertainment, hotel, convention center, and transportation structures—all of which will be contained within a six-block retail and residential promenade. Additionally, the center will serve as the epicenter of the MetroMover and MetroRail elevated transit systems.

via ParamountMiami.com

The Paramount Miami Worldcenter will offer 512 units with 10-foot ceilings and outdoor “living room-style” terraces. Penthouses start at $4 million and one-room residences start at $700,000.

Art Falcone and Nitin Motwani are the Founding and Managing Principals of the project, respectively. They will be partner with The Forbes Company and Taubman for retail development, MDM Group for Convention Development, and Elkus Manfredi Architects for Master Planning. This impressive entourage aims to make something that will truly revolutionize what it means to be in downtown Miami.

One feature that will set the Paramount Miami Worldcenter apart is its private amenity deck—planned to be the largest in the world—that will be located 90 ft. above street level. On the deck, residents will be able to access pools, bungalows, tennis courts, soccer fields, and more. Then, on the 60th floor, residents can visit an astronomy observatory and a plunge pool from which they can take in panoramic views of the Miami and its environs. This level of verticality, of capitalizing on the sky will be a huge game-changer in Miami real estate and luxury real estate as a whole.

Thanks for reading.

Raanan Katz

Miami: A Billionaire’s Market

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Miami is a hot market. Whether it’s the trendy Design District or the bustling Ocean Drive, real estate is one of the most attractive elements of the Floridian city. The city’s glamor is quantified in its subsequent real estate trades: everyone wants to own a part of Miami.

Last month, one of the richest people in the world purchased an entire block of the city in one of the largest real estate deals in Miami-Dade history According to an article from The Real Deal, an entire block of Miami Beach’s Lincoln Road traded hands for $370 million to the 79-year-old self-made Spanish billionaire Amancio Ortega.

zaraOrtega, whose fashion empire includes the well-known Zara brand is currently ranked by Forbes as the world’s fourth richest person, pegging his wealth at $70.2 billion.

In 2012, Forbes wrote that Ortega “seems to be using more of his free time to invest in real estate. He has pulled money from Spanish investment funds and poured it into buildings through his Ponte Gadea real estate investment firm.”

Investors started leasing the property in 1999, paying a total of $12 million for spaces that now go for $300 per square foot. Michael Comras was one of these investors who sold the property, saying, “It’s a project that we started 16 years ago, and Jonathan and I felt that we had really created one of the most incredible retail blocks on a High Street around the world,” The timing was right, and “it made sense to sell the asset.”

The sale to Amancio Ortego occurred this August. The Real Deal scoured the Ponte Gadea buyer until they traced the address to Amancio Ortega, who keeps a low-profile in Spain and abroad.

This is a great development in the Miami market. People notice where influential buyers such as Amancio Ortega put their money. And if that’s in Miami, then we are moving in a great direction.

The Current State of Miami Real Estate

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Raanan Katz Miami Real EstateLocal real estate industry leaders recently gathered in Miami to discuss the real estate market in South Florida. Interest in South Florida real estate from both the United States and abroad has made the real estate market attractive for developers. Due to the increased interest in real estate development in Miami, the luxury market has followed suite and thrived along with the increasing real estate costs. Commercial real estate prices have skyrocketed, as they have doubled over these last six years.

Although the real estate market is looking great in Miami, as buyers are making 50% down payments on condos, experts still believe that there will be volatility. As Miami is becoming a hot bed for real estate, and prices are soaring, developers are turning their focus on under developed neighborhoods with potential expansion. Developer’s favorite so far is the Biscayne Boulevard corridor. The area is right on the bay, close to the beach, has a major road, and there is plenty of empty land for real estate development.

There have also been discussions to create public green spaces in the Miami-Dade area.  One potential project in the rumor mill is a 10-mile bike path under the Metrorail line that goes from Dadeland to Brickell Station. There is plenty of unused space in the area, and public officials are interested in re-purposing that land to give back to their community and increase the allure of living in South Florida. Other proposals have been put forth to convert unused railway tracks into lush pedestrian walkways as seen from the skyline in New York City.

Traffic is an issue in Miami, so city officials and real estate professionals agree that some major additions need to take place in the transportation sector if Miami wants to compete on an international level. To read more about the foreign interest in the real estate market in Miami, please refer to this  blogpost from Raanan Katz.

 

Renting Property in Miami is More Expensive Than Buying

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Raanan Katz Miami Real Estate HomeRenters in South Florida should expect to pay 44.5% of their income to rent each month. Comparing this to homebuyers, renters are paying about 25% more of their monthly income than if they were a homeowner. Homeowners are estimated to spend about 20% of their monthly income towards their mortgages. Renting property in South Florida is currently 67.6% more expensive than the historical average after the housing crisis in 2008.

The national average spending on rent is about 30% of someone’s monthly income, whereas the national average spending on a mortgage is 15% of the average American’s monthly income.

Renting is usually more expensive than buying because the time-span associated with renting is typically shorter than purchasing a property. People normally start out their careers renting, but once they are able to afford to purchase either a property or a car, they jump right on it because of the costs associated with renting vs. buying.

Interest rates are at a historic low, but young Americans seem to still be hesitant on purchasing property. Factors that might contribute to this are the following: 1) Rent prices are slowing down. 2) Young adults are typically choosing to live in places where rent prices are stabilizing and property is expensive. They typically choose to live in big cities with large markets.

Young Adults are looking in cities like Texas, Honolulu, Austin, San Diego, and New York as potential places to purchase a home. Less than 30% of these homes are considered affordable for the typical average young adult in the United States. These are all cities where the average wages are considerably lower than the average monthly income it would take to pay a mortgage on a property.

Foreign Interest in Miami Real Estate

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Raanan Katz Real Estate Miami, FloridaNovember 3 marked the 20th anniversary for the Miami International Real Estate Congress, which drew over three hundred real estate agents and foreign professionals who focus on foreign markets, including 70 delegates from foreign countries.

The conference was a big success: speakers addressed hot-topic issues, industry experts shed light on current trends, and all attendees enjoyed a number of marketing sessions and gala receptions. But if there is one conclusion to draw from the event, it’s that the Miami-Dade and Broward real estate market is once again being heavily influenced by international real estate transactions.

These international deals actually comprise just under a third of all real estate transactions in the area. And that astounding number doesn’t even meet last year’s high of 35%. The foreign demand for Miami real estate is one of the most vibrant pieces of that market that has put Miami-Dade on track to break another record for residential sales this year.

Difficult economic conditions abroad have not stopped foreign buyers from spending big bucks in southern Florida. Florida home sales average $245,000 but international buyers spent an average of $444,052 on their Miami homes. Brazilians topped that international list with a mean payment of almost $500,000 per property, about two times the state’s average.

The tendency for foreigners to lean towards an upscale Miami market has made them an attractive target for realtors looking to cash in on a profitable trend. Alicia Cervera La Madrid, the managing partner of Miami’s Cervera Real Estate, explained, “We’re probably paying some of the highest commissions in the world — between 5 percent and 7 percent.”

Most of the real estate agents in the South Florida area either hail from a foreign country themselves or are at least multilingual and have a deep understanding of the language and culture of their clients. One of those cultural habits is the propensity toward cash purchases — a full 81% of foreign buyers in the area paid in cash, according to a recent NAR study.

Raanan Katz on Miami after the crash:

After the 2008 market crash, internationally-focused agents are palpably excited by this recent foreign interest in Miami soil. The assumption is that Miami is a great place for foreigners to invest their money, but only time will tell whether that trend will hold up in the coming years.

All Cash Home Sales in Florida – Miami Real Estate

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Raanan Katz Florida Real Estate51 percent of all of Florida’s real estate sales are cash home sales. This makes Florida the leader in the United States for cash home sales. On average, national home cash sales are around 33% which is higher than last years rate of around 20%. After the recession, there was a shortage of houses for sale as well as more strict regulations put on mortgage lending. Cash offers are a lot more attractive to sellers as they know that they will have the money right after the papers are signed. It surpasses much of the financing needed in a non-cash agreement, making someone paying cash a way to help them win a bidding war. This makes it very difficult for first0time buyers relying on financing. It it a lot more difficult to qualify for financing these days, and with the high demand and higher supply of cash buyers, young homebuyers are finding it more difficult to purchase homes.

The housing crisis was caused by poor mortgage lending tactics to buyers that were not able to reach their mortgage agreements. This was the era of sub-prime mortgage lending. In the wake of the 2008 housing crisis, banks were forced to put more strict regulations on mortgage lending, making it more difficult for people to buy homes who were on the fringe. Less and less people were then applying for mortgages because they were cut from being qualified. This lead towards a decrease in the supply of houses being built. This lack of supply made it even more difficult for people on the fringe since buying houses using cash became much more attractive to sellers and easier for buyers.

Purchasing a home in Miami (and essentially everywhere else in the United States) is much less expensive than renting. Take a look at Raanan Katz’s blog post on renting vs. purchasing homes by clicking here.