Columbus International

The 11 best hotels in Miami to book now, according to Shelby Albo, founder of Travel Fit Love. Source: AD

By Columbus International,11 October 2023

Are you looking to book a stay at one of the finest hotels in Miami? Miami is anything but understated, with its showy, celebrity-filled restaurants and clubs that stay open into the early hours, beaches that serve as fashion runways, and soaring real estate prices. The city’s top hotels are no exception. Shelby Albo, a travel consultant and the founder of Travel Fit Love, a site that promotes active travel, says, “Miami’s hotels tend to be glamorous spots that are the ‘It’ places to hang out in town. In fact, people visit Miami just for the hotels.” Here’s Architectural Digest’s list of 11 exceptional properties in the Magic City, spanning from Surfside to South Beach, and not forgetting Mid-Beach in between.

The Goodtime Hotel: A collaboration between Miami nightlife and restaurant entrepreneur David Grutman and singer-songwriter Pharrell Williams, this hotel guarantees a good time. With trendy public spaces adorned with hand-painted murals and Deco plasterwork, and rooms featuring fun elements like leopard-print benches and pink rotary dial phones. The property boasts a 30,000-square-foot pool club called Strawberry Moon, a spacious gym, and a library for guests to socialize over coffee or cocktails.

W South Beach: After a $30 million renovation in 2020, W South Beach re-emerged as a serene getaway on Collins Avenue, shedding its dark tones and shiny finishes. The 357 guest rooms now feature an airy aesthetic with warm oaks and natural light. The hotel also offers new spa facilities and an art collection valued at $100 million, featuring 21 original Andy Warhols. On-site amenities include tennis and basketball courts, beach cabanas, and an outpost of the celebrity-favorite restaurant Mr. Chow.

The Setai, Miami Beach: With its sleek, dark tones and Asian-inspired design, The Setai oozes elegance. As a member of the Leading Hotels of the World, guests can sip fresh coconut juice by the three guest-only swimming pools or indulge in treatments at the Valmont spa. The signature restaurant, Jaya, serves up exceptional Asian cuisine, complete with fire dancers, aerial acrobats, and live jazz performances.

The Betsy, South Beach: This European-inspired, family-owned luxury boutique hotel on Ocean Drive offers a unique combination of an art gallery, live jazz club, and a coffee shop that hosts book talks and poetry readings. The hotel also features a beach-facing outdoor dining terrace and a rooftop pool with panoramic city views.

Faena Hotel Miami Beach: Located in Mid-Beach, Faena Hotel offers some of the widest and most pristine beachfront in Miami. It’s a maximalist’s dream, featuring pieces by renowned artists like Damien Hirst and Jeff Koons. Dining options include Los Fuegos by Francis Mallmann, known for Argentine fare from South America’s celebrated chef. The hotel also hosts live shows, has a bar, and a 22,000-square-foot oceanfront spa.

Four Seasons Hotel and Residences at The Surf Club, Surfside: Originally opened in 1930, the Surf Club has a rich history and a contemporary aesthetic today. Situated on nine oceanfront acres, it offers 77 rooms, three pools with day cabanas, a destination spa, a champagne bar, and an Italian restaurant. The Surf Club is also home to a restaurant by the acclaimed chef Thomas Keller.

The Miami Beach Edition: This luxurious hotel by Ian Schrager and Marriott offers sleek style and ocean views. The bungalow-style rooms come with floor-to-ceiling windows, high-end linens, and marble bathrooms with products by Le Labo. The hotel offers dining by Jean-Georges Vongerichten, wellness options, a beach club, and a mini nightclub with a bowling alley and skating rink.

SLS Brickell: Located on the mainland, SLS Brickell, designed by Philippe Starck, offers easy access to Downtown Miami, Wynwood’s street art, and hip restaurants. Guests can relax poolside, enjoy spa treatments, and savor wood-fired pizzas and Italian fare at Fi’lia.

Mr. C Coconut Grove: Situated in Coconut Grove, this hotel exudes luxe coastal vibes with lacquered wood paneling and a rooftop bar and restaurant, Bellini, serving authentic Italian dishes. Acqualina Resort & Residences on the Beach: If you seek tranquility, this resort, a 30-minute drive north of Miami Beach, is an ideal choice. Inspired by a Mediterranean villa, it features outdoor pools and a 20,000 square-foot spa, making wellness a priority.

Casa Tua: This chic private members club in Miami’s Art Deco District also offers five rooms for overnight stays. The property feels like a dear friend’s home with an eclectic decor sourced from around the world and a restaurant serving simple yet authentic Italian cuisine.

Crackdown on Airbnb Listings Creates “Black Market” for Short-Term Rentals in New York City (Source: WIRED)

By Columbus International,11 October 2023

New York City’s new law banning most short-term Airbnb rentals, which came into effect in early September, has had a significant impact on the market. As few as 2 percent of the city’s previous 22,000 short-term rentals have been registered with the city. Many illegal listings have moved to social media and lesser-known platforms, with some still appearing on Airbnb itself. The number of short-term Airbnb listings in the city has dropped by more than 80 percent, going from 22,434 in August to just 3,227 by October 1, as reported by Inside Airbnb, a watchdog group monitoring the platform. However, only 417 properties have been officially registered with the city, indicating that very few short-term rentals have received permission to continue operating. This crackdown has given rise to a “black market” for short-term rentals in the city, according to Lisa Grossman, a spokesperson for Restore Homeowner Autonomy and Rights (RHOAR), a local group that opposed the law. Grossman notes that since the ban, the short-term rental market has gained traction on platforms like Facebook. She says, “People are going underground.”

The short-term rental landscape in New York has dramatically shifted due to this law. Individuals are turning to platforms like Craigslist, Facebook, Houfy, and others, where they can search for guests or properties without the oversight of Airbnb-like booking platforms. The increase in demand for such rentals is expected to drive hotel prices higher. A search for short-term stays on Airbnb reveals a limited number of listings across the city. Many previous listings have transitioned into stays of 30 days or longer, thus avoiding the need for city registration. AirDNA, a short-term rental intelligence firm, found just 2,300 short-term Airbnb rentals in New York City by late September. AirDNA’s data shows that long-term rentals now make up 94 percent of Airbnb’s listings in the city, reflecting the stricter requirements for short-term rentals. Hosts must meet stringent criteria to be approved for short-term rentals, such as allowing only two guests and the host being present during the stay. However, some hosts are attempting to work around these rules. Many Airbnb listings include an option for hosts to enter a registration number or claim an exemption. Despite these efforts, some entire units still appear to be available for short stays and do not seem to qualify as hotels or exempt units.

Inside Airbnb’s data shows that approximately 2,300 short-term properties have labeled themselves as exempt from registration on Airbnb, with several more not specifying their status. Another 35,000 are designated as long-term rentals. These numbers were not confirmed by Airbnb. The Mayor’s Office of Special Enforcement in New York, responsible for the registration program, has not provided an update on the total number of registered short-term rentals or whether violations have been issued for illegal listings. The law in New York City is just one example of how cities are responding to the growth of short-term rentals. Supporters of the rule argue that it will free up apartments for local residents facing high rents and housing shortages. However, some, including small landlords, believe it will eliminate a flexible source of income without significantly addressing the housing crisis. Smaller landlords are lobbying New York City councilors to revise the rules to allow them to continue renting out their units. RHOAR represents hosts who own and occupy single-family homes or homes with two dwelling units. They argue that they have been unfairly grouped with larger landlords.

Grossman states that RHOAR has met with city councilors in an attempt to change the law to permit smaller hosts to legally offer short-term rentals. Beyond Airbnb, people are posting listings and seeking short-term rentals on Facebook groups. Craigslist advertisements for rentals include weekly or nightly prices. These off-platform rentals pose risks to both guests and hosts who may not have the protection of larger companies like Airbnb. As for Airbnb, it is turning its focus away from New York City, which was once its largest market. Airbnb CEO Brian Chesky has mentioned that the company is exploring longer rentals, as well as car rentals and dining pop-ups. The company is also looking to expand its presence in Paris, its largest market and the host of the 2024 Summer Olympics. “I was always hopeful that New York City would lead the way—that we would find a solution in New York, and people would say, ‘If they can make it in New York, they can make it anywhere,'” Chesky said in September. “I think, unfortunately, New York is no longer leading the way—it’s probably a cautionary tale.”

Source: WIRED

It’s a Good Time to Make a Deal in New York Real Estate, Forbes Reports

By Columbus International,11 October 2023

New York City’s real estate market has responded robustly to the economic uncertainties of the first half of 2023. Many potential buyers in our market initially postponed their plans following the 50 basis point increase in the Federal Reserve rate in December (which came after several 75 basis point increases). As mortgage rates continued to rise and the stock market declined, transaction volume, which had been steadily declining throughout the second half of 2022, remained sluggish in January.

Surprisingly, February saw a turnaround, and March brought further improvements. However, the successful deals were strongly linked to price reductions or setting highly realistic listing prices. There is no room for overly optimistic pricing in 2023. The high-end market (homes priced at $10 million and above) has borne the brunt of this correction year.

During the first two months of the year, few high-end listings found buyers, and the ones that did either possessed unique features or were fortunate to connect with that one buyer whose needs aligned perfectly with the property. Owners who purchased their properties since 2014 or 2015 have had to accept significant losses to make a sale. In the $4 million to $10 million market, the Olshan Luxury Market Report, which tracks contract activity at $4 million and above, saw a notable increase from just over 16 deals per week in January to an average of 25 deals per week in February, and nearly 32 deals per week for the first three weeks of March. Nevertheless, many luxury properties with seven, eight, or nine rooms can still linger on the market for extended periods, primarily due to pricing.

Since January, half of the emails received by New York agents have announced price reductions! Arguably, the most active market in the city is for lower-priced units, especially those priced at $2,500,000 and below. The rental market remains exceedingly strong, currently at its highest point in recent memory (though somewhat weaker than six months ago). Properties in the $2 million and below range tend to favor buying over renting, especially on an after-tax basis. Inventory remains limited at this level. Despite disruptions caused by the collapses of Silicon Valley Bank and Signature Bank, the New York market has experienced increased activity as spring approaches.

The Federal Reserve’s decision to raise its target rate by only 25 basis points, a repeat of its late January decision, suggests a halt to the more substantial increases that took the Fed rate from 0.25% to just under 5% within a year. Although the correlation between the Fed rate and mortgage rates is not perfect (mortgage rates are more influenced by the bond market), it’s clear that the considerable increase in the Fed rates has driven mortgage rates upward, impacting buyer confidence as monthly purchase costs rise.

Especially for younger buyers who’ve grown accustomed to the artificially low rates prevailing since the 2008 recession, a mortgage rate of 5% or 6% remains low by historical standards. The gradual acceptance of this reality by buyers has played a role in the real estate market’s gradual recovery. Several factors make it challenging to predict the second quarter accurately. The stability of regional banks remains uncertain, and the Credit Suisse merger with UBS signals that the banking crisis is not confined to the United States. Meanwhile, inventory remains tight in various segments of the New York market, and even cautious buyers often struggle to find suitable listings. Stock market volatility and inflation may continue, but the worst of the significant price declines seems to be behind us, and property costs have stabilized. Forbes reports that it’s an opportune time to strike a deal!

New York Real Estate Market: Co-ops Struggle, New Developments Forced, Brooklyn Triumphs

By Columbus International,11 October 202311 October 2023

The decline in New York home sales has left virtually no one in the real estate industry unscathed, with particular areas of the city’s market experiencing the most acute pain. Despite the seasonal increase in property listings this fall, the market won’t escape the grip of the low-supply environment that has kept prices high, even as mortgage rates have surged, further dissuading potential buyers. For instance, on Staten Island, new property listings in August saw a 17 percent drop, and inventory plummeted by 37 percent compared to the previous year. Simultaneously, the median price rose by 3 percent, and the days a property spent on the market increased by a staggering 50 percent, as reported by the Staten Island Board of Realtors. “These are challenging times for the real estate market,” stated Sandy Krueger, CEO of the organization. “But challenges also create opportunities for those who remain attentive to the market’s signals.”

Here are three key signals to watch as the fall selling season gets underway:

Co-ops: The Losers
Co-op properties were already facing difficulties before the increase in mortgage rates impacted sales. Cheaper co-ops have been particularly affected by the rising rates. Buyers in recent years had become increasingly discouraged by the antiquated rules and bureaucracy of co-op boards. Now, with higher mortgage rates, homebuyers on the lower end of the income spectrum find themselves priced out due to co-ops’ stringent debt-to-income and post-close liquidity requirements. Just a year earlier, a couple earning $240,000 annually could borrow $600,000 for a co-op valued at $750,000 and successfully pass a board application. However, in today’s market, this is no longer possible. This situation is striking, considering that $240,000 is roughly three times the area’s median income in New York City, and $750,000 often represents the starting point for homes in many neighborhoods. Monthly charges are also rising in many co-op buildings due to Local Law 97, which caps greenhouse gas emissions in larger buildings, and Local Law 11, which mandates facade inspections and repairs for buildings taller than six stories every five years. This, in addition to rising rents, makes it increasingly challenging for lower-end and first-time buyers to enter the market.

New Development: The Losers
Developers who had been waiting for a more favorable economic climate before launching their projects may now be compelled by their loan terms to list properties this fall. Projects with units lingering on the market may be forced to offer price reductions. Developers have pre-payment milestones with their lenders and can no longer delay their projects. While some units were overpriced for the current rate environment, others missed the post-lockdown market boom due to supply and labor shortages. For instance, the last available penthouse at One Clinton Street in Brooklyn Heights recently sold for $8 million, down from the original asking price of $10.2 million. An opportunistic buyer’s broker can search for older properties that may have been overlooked, presenting an excellent investment opportunity in the city.

Brooklyn: The Winner
Brooklyn’s real estate market has remained strong throughout the year, a trend that is expected to continue into the fall. Brooklyn has been outperforming Manhattan in terms of market expediency, primarily due to the demand for more space and outdoor living. Brooklyn has been growing into a primary market for years, a trend that accelerated during the lockdown period of the pandemic. Buyers sought to avoid high-rise elevators, subways, and crowded streets. Although transit use has mostly recovered, the shift towards Brooklyn shows no signs of slowing down. “The trend for Brooklyn has been on fire,” remarked UrbanDigs founder John Walkup.

Source: TRD

Repurposing Office Buildings: American Universities’ Novel Approach to Campus Expansion

By Columbus International,11 October 2023

In an unexpected trend, colleges and universities across the United States have found a unique solution to their campus expansion needs by repurposing vacant office buildings. This innovative approach allows educational institutions to acquire office spaces at attractive prices in a sluggish real estate market and subsequently adapt them for academic use. However, while it effectively addresses their need for additional facilities, it doesn’t alleviate the broader problem of empty office spaces, which has been exacerbated by the shift to remote work during the pandemic.

A New Approach to Campus Expansion
For colleges and universities in the United States, acquiring office buildings has become an increasingly popular means of expanding their campuses. The availability of such spaces at bargain prices, attributed to a sluggish office market, makes this approach particularly appealing. The renovations required to adapt these structures for academic use are typically less costly and time-consuming than constructing new buildings from the ground up.

A Sluggish Office Market
While this creative approach serves the purpose of academic expansion, it doesn’t mitigate the underlying issue of a sluggish office market. The COVID-19 pandemic has drastically reduced the demand for office spaces, with the nationwide office availability rate exceeding 24%. This increase from 17% before the pandemic reflects the reduced demand for leased office space, forcing property owners to grapple with this surplus. Some office buildings have lost so much value that mortgage-holding banks have taken control of them.

Government Initiatives
In light of the current environment, there is growing interest in converting office buildings into residential spaces to address the national housing shortage. However, this transition involves overcoming various regulatory and architectural hurdles, such as rezoning for residential use, kitchen and bathroom installations, and ensuring access to natural light.

College Diversification
Colleges and universities have explored a range of real estate diversification options. In response to the increasing demand for on-campus accommodation and the limited availability of dorm space, some institutions have even ventured into acquiring hotels. However, the low costs of office buildings have proven particularly attractive to many institutions, even when they do not have an immediate use for the space.

Various Case Studies
Several institutions have embarked on this novel approach to acquiring office buildings. For instance, the University of Southern California purchased an office building in Washington, D.C., to serve as an immediate satellite campus. The University of Louisville was even offered an office building for free by Humana, a health insurance company. While these acquisitions benefit the institutions, they can also have implications for towns and cities, as colleges and universities typically do not pay taxes on their academic buildings and dorms, effectively removing these properties from tax rolls.

Overcoming Challenges
Repurposing office buildings for academic use comes with its own set of challenges. For example, buildings designed for office work may not have sufficient ceiling height to accommodate the ductwork required for improved ventilation, and large floor plans can make ensuring natural light in every classroom a challenge. This transformative approach to campus expansion showcases the ability of educational institutions to adapt and evolve within a changing real estate landscape. These creative solutions help universities grow while providing opportunities for towns and cities to revitalize downtown areas and bring life to quiet districts that have suffered due to remote work trends.

Please note that the information provided is based on The New York Times article.

Trump Looks for Information Regarding the Future of His Family’s New York Real Estate Holdings (Wall Street Journal)

By Columbus International,11 October 2023

According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.

Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.

This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.

Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.

Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.

Redefining Luxury Living: Branded Real Estate’s Ascendance in Miami and Beyond (Source: The New York Times)

By Columbus International,11 October 2023

Exploring a 10-mile stretch along the enchanting Miami coastline reveals a plethora of opulent shopping opportunities. However, it’s not haute couture or luxury cars that shoppers are taking home with them; they are securing homes with prestigious labels. The market for branded real estate is experiencing an impressive surge. According to a report by Knight Frank, global real estate consultants, the demand for luxury condominiums bearing renowned names is expected to grow by 12 percent annually until 2026. Just as purveyors of blue jeans and handbags have long recognized the allure of a prominent label, property developers now understand its significance. In virtually every major city, prospective homeowners can peruse residences offered by well-known hospitality brands such as Four Seasons, Aman, and Ritz-Carlton. Surprisingly, more unconventional brands are now venturing into this trend, with luxury car and fashion couture companies eyeing condos as their next frontier. In the tranquil enclave of Sunny Isles Beach, nestled within Miami-Dade County, some of the prominent towers boast illustrious names like Porsche Design Tower, Residences by Armani Casa, and the upcoming Bentley Residences. By 2026, the Bentley Residences will soar into the sky, featuring an exterior adorned with recessed glass in Bentley’s iconic diamond-in-diamond quilted design, instantly recognizable to aficionados of the esteemed British automaker. All of these remarkable developments share a common visionary: Gil Dezer.

For over a decade, he has been quietly placing his bets on this moment, expanding his brand partnerships as Miami’s real estate values continued to climb. “Today’s automobile brands aspire to be more than just cars; they aim to establish themselves as lifestyle brands,” remarks Mr. Dezer, who first joined forces with Porsche in 2012. “This sentiment extends to everything, from golf clubs to sunglasses, and we were fortunate to be at the forefront of this evolution in real estate.” The New York Times reports that Mr. Gil Dezer, the scion of the Dezer Development empire in South Florida, has played a pivotal role in marrying two seemingly disparate worlds: real estate and automobiles. The Dezer Development, owned by his father, Michael Dezer, commands an impressive presence, boasting ownership of nine towering structures sprawled over nearly 30 acres of prime Miami oceanfront real estate. Simultaneously, Michael Dezer is renowned as a zealous car collector, housing a staggering fleet of approximately 1,800 vehicles, many of which are exhibited within his privately owned automotive museum. In contrast, Gil Dezer’s personal collection, totaling 32 cars, is relatively modest. Nonetheless, he wholeheartedly embraced the family business, standing at the intersection of two passionate pursuits: real estate and cars. While the Armani brand may seem a tad unusual in this context, the concept of auto-branded buildings harmonizes seamlessly with Dezer Development’s vision.

The Dezer family has already carved a niche in branded real estate, with Gil Dezer being the first developer to secure a licensing agreement with Donald Trump. This collaboration resulted in the construction of six Trump-branded towers. Notably, Mr. Dezer openly supports the former President, even choosing to hold his wedding ceremony at Mar-a-Lago in 2007. However, the early 2010s marked a change of course for the company when they ventured into a licensing agreement with Porsche, a pioneering move for the company. Mr. Dezer recognized that for the project to thrive, he needed to think beyond conventional boundaries. “Porsche doesn’t exactly correlate with real estate,” he remarked. The Porsche Design Tower, which broke ground in 2014 and welcomed residents in 2017, exudes the same sleek, high-octane masculinity that characterizes the car shows Mr. Dezer frequented as a child with his father. The building itself lacks a dedicated pedestrian entrance. Instead, visitors are greeted by a graphite-hued archway bearing the inscription “Porsche Design” in the iconic Porsche 911 font. Upon arrival, residents can either park and enter the airy lobby adorned with the same bronze, red, and black hues as Porsche’s logo or opt for a more unique experience: driving their vehicles into the building via the patented car elevator known as the “Dezervator.” This innovative elevator, which conveniently deposits cars behind a glass wall in front of each unit, was heralded by Stefan Buescher, the CEO of Porsche Lifestyle Group, as a standout feature. He stated, “It was a natural continuation to transfer our unique design principles to the world of real estate.”

Creating the Porsche Design Tower was a substantial financial investment, with Mr. Dezer allocating $480 million to the project. Of this considerable sum, he estimates that roughly ten percent was dedicated solely to the creation of the Dezervator. Nonetheless, he views this expenditure as entirely justified. Initially, the idea stemmed from the notion of parking a Porsche, Lamborghini, or Bugatti in one’s living room. However, the concept evolved, with buyers increasingly attracted to the privacy that these units offered, circumventing the inconveniences associated with condo living, particularly for prominent individuals. The allure of brand recognition played a pivotal role in attracting buyers like Juan Pablo Verdiquio, a Miami-based real estate developer. In 2017, he acquired a three-bedroom unit in the Porsche Design Tower. His roster of neighbors now includes iconic figures like Lionel Messi, Alicia Keys, and Swizz Beatz.

With a personal penchant for Porsche cars, which extends to his Taycan and his wife’s Panamera Turbo, Mr. Verdiquio viewed this condominium as a symbol of quality in Miami’s competitive real estate market. “There are thousands of new apartments built each year here, so going with a brand I knew felt like a way to preserve the long-term value,” he explained. “From a financial sense, I really liked that it was branded with Porsche.” Carlos Rosso, a luxury Miami developer, observes a growing trend among homebuyers who are increasingly swayed by the logic that brand association elevates the value of their real estate investment. “We are all in the same market for buyers, and we are all trying to differentiate our products,” he noted. “Every residential building needs to tell a story, and branding is a way to not have to explain what a building is all about. You’re associating yourself with a brand that’s already familiar.” As the head of Rosso Development, Mr. Rosso is currently focused on The Standard Residences, Midtown Miami, a 12-story condominium tower that aims to captivate buyers by harnessing the distinctively audacious ambiance of the Standard Hotels. These hotels are perhaps best known for their West Hollywood iteration, where lithe, sun-kissed models lounged in a plexiglass box behind the front desk.

In 2014, Mr. Rosso joined forces with Mr. Dezer on Residences by Armani Casa, a 56-story condominium tower located in close proximity to the Porsche Design Tower. This opulent building, which opened its doors in December 2019, reflects the design sensibilities of the legendary Giorgio Armani himself. From the tapestries and textiles to hand-selected furnishings, every detail exudes an opulent femininity. Muted floral wallpaper, curved furnishings in taupe and gold – it’s a stark contrast to the Porsche Design Tower’s millionaire-meets-man-cave vibe, with its sharp edges and bold primary hues. Turning his focus to the upcoming Bentley Residences Miami, Mr. Dezer anticipates breaking ground later this year on the site of Miami’s Thunderbird Motel, a historic structure from the 1950s that was demolished in June. This 62-story oceanfront building is poised to elevate the luxury experience by featuring four Dezervator elevators, garages capable of accommodating three to four cars, and private outdoor swimming pools attached to each of the 216 units.

Ocean-view residences will also boast outdoor showers. Common areas will include a Macallan Whisky Bar, a restaurant by Todd English, and a cigar lounge. Units are priced between $5.5 million and $35 million, catering to those seeking an exclusive and distinctive living experience. Ian Reisner, Vice President of Dezer Development, emphasizes the unique nature of these offerings. “People are looking for something unique,” he noted. “There’s not a million Porsches up and down the block — there’s only one. Now we’re going to do even better with Bentley.” For serious car collectors desiring to merge their passion for automobiles with luxury housing, Miami presents several alluring options. The Aston Martin Residences, located in downtown Miami, is a prime example. Currently under construction and scheduled for completion by the end of the year, this 391-unit development is nearly entirely sold out. The 66-story tower boasts a distinctive, gleaming curved sail shape, with units starting at $6.5 million and ascending to $59 million for the triplex penthouse, which includes a rare $2.3-million hypercar, the Aston Martin Vulcan.

The development touts itself as “A car made into a skyscraper,” aiming to embody a timeless, James Bond-approved zeitgeist. According to the developer, German Coto, it will be appreciated by those who value a unique luxury lifestyle. This trend is not confined to Miami alone. On Jumeira Bay Island in Dubai, the Bulgari Lighthouse, a 27-story tower with a distinctive undulating facade inspired by coral, is under development by the luxury watchmaker Bulgari. Lamborghini, which previously attempted a branded residential property in Dubai without success, is now making a renewed effort with planned developments in Egypt, Brazil, China, and Spain. Renowned Lebanese fashion designer Elie Saab has lent his design expertise to residences in London and Dubai, while the late Karl Lagerfeld’s iconic design sensibilities are reflected in five villas on Marbella’s Golden Mile. All these developments, according to Clelia Warburg Peters, Managing Partner of Era Ventures, a tech-based real estate venture fund, cater to the wealthy elite and reflect the notion of living in name-brand playgrounds. As the housing market remains competitive, this trend is expected to gain further traction.

“We’re living in a new Gilded Age, and there’s a lot of rich people,” she observed. In the past, prime location was the primary way to differentiate high-end assets. However, with prime locations becoming increasingly limited, developers should not be surprised if more unconventional brands endeavor to carve their niche in the residential real estate arena. “I don’t think anyone wants to live in the Coca-Cola building,” Ms. Peters mused. “But would I be surprised if Restoration Hardware introduced their own line of homes? Absolutely not. This is one of the most significant areas of growth in the real estate industry.”

Florida’s Real Estate Market Thrives Amidst Wealth Migration (Source: New York Post)

By Columbus International,10 October 2023

South Florida is experiencing a period of remarkable growth. In downtown Miami, ground is being broken for what will become Florida’s tallest office tower, boasting 1.5 million square feet of space, yet to be occupied by firms that have no prior presence in the state. Additionally, condo towers with prestigious St. Regis and Waldorf-Astoria branding are in the works for the same area. While their completion is several years away, the units that are yet to be built have already been predominantly reserved with buyer deposits. This phenomenon isn’t limited to Miami alone. Further north in West Palm Beach, the arrival of financial giants such as Goldman Sachs and BlackRock has driven office rents to record highs during the second quarter of this year. New workplaces offering private terraces and access to yacht charters are now rising along the city’s waterfront, while developers plan condos to accommodate the influx of future employees. Nick Bienstock, CEO of New York City office landlord Savanna, commented, “We’ve got four or five thousand people coming to West Palm Beach who have not yet arrived.” In a bid to capture a share of this market, Savanna is making its inaugural investment in Florida – a 275-unit condo development known as Olara – as part of the larger initiative to build 3,000 new homes across West Palm Beach.

More than three years into a massive migration of both money and people to the Sunshine State, Florida’s property market continues to outperform nearly all other regions in the US. What initially began as a warm-weather haven from pandemic restrictions has now evolved into a destination catering not only to the current influx of professionals but also doubling down on the premise that even more are yet to come. According to Ken H. Johnson, a housing economist with Florida Atlantic University’s College of Business, “The old, 1980s Florida is disappearing. We’re just not getting those retirement-community, fixed-income folks we used to. We’re getting people with significant incomes, and they’re usually bringing work and jobs with them.” Indeed, Florida ranks as the No. 1 destination for professionals aged 25 to 36 earning at least $200,000, as per a recent report by financial advisory SmartAsset. Crucially, high-earning individuals relocating to Florida have outnumbered those departing by more than three-to-one in recent years. Along with youth and job opportunities, newcomers are arriving with significant cash reserves, purchasing homes in a state where supply simply can’t keep up with demand.

As a result, the Florida real estate market consistently ranks at the top of various superlative lists. For example, of the 10 most overpriced housing markets in the country, seven are located in Florida, according to a monthly analysis co-published by Prof. Johnson. This means that Florida buyers are paying the highest premiums for their homes nationwide when compared to price averages over the past 27 years. In August, Miami’s median home price rose by 14.6% year-over-year, according to brokerage Redfin, and Fort Lauderdale saw a 5.3% increase – all while downtown Fort Lauderdale’s population has surged by 80% since 2010. These spikes in property values coincide with declines in other much-hyped “boom-towns” of the pandemic era. For instance, home prices in Phoenix fell by 2% in August, Fort Worth dropped by 2.7%, and Austin, which previously ranked at the bottom of Redfin’s price growth list, plunged by 7%. To make matters more concerning, these numbers follow double-digit corrections in both Phoenix and Austin just a few months prior. Eli Beracha, director of the Hollo School of Real Estate at Florida International University, remarked, “Texas is different from Florida even though both are identified as tax-free states. Florida is viewed as a tropical vacation place – where you can also live. People just don’t go on vacation to Dallas.”

During the pandemic, Florida received the largest influx of wealth in the US. In 2021 alone, newcomers boosted the state’s taxable income by $39.3 billion, which is more than three times the amount that second-place Texas saw, according to the Economic Innovation Group, a DC-based think tank. Census data released in September suggests that this growth will continue. Florida’s population grew by 2.13% – the highest jump in the US – between 2021 and 2022. Jonathan Miller, president of real estate appraisal firm Miller Samuel, stated, “Florida is being reset and restructured in a way that no one else is.” What sets this current cycle apart is that it’s happening without the massive international demand that fueled previous Florida housing and population booms. So, what is driving it instead? “New Yorkers are the new foreign buyers,” Miller noted, referencing the nearly 130,000 Empire State residents who relocated to the Sunshine State in 2021 and 2022 alone. Many of these new residents split their time between cities while making Florida, a no-income-tax state, their primary residence. Consequently, there’s a boom in furnished Miami condos designed for owners to easily rent out while they’re away. Florida’s appeal to northerners is evident. Frustrated with big-city crime and quality-of-life issues, and enticed by tax benefits and the prospect of beachfront home offices, the state provides a ready-made solution to many of urban America’s most pressing problems. Nitin Motwani, managing partner of Miami Worldcenter Associates, the master developer of the 27-acre Miami Worldcenter district, a $6 billion project spanning 10 city blocks, remarked, “It’s just a different way people are choosing to live, and Miami is a big beneficiary of that.” Motwani shared that he regularly receives calls from executives seeking logistical assistance for their move south. “Sometimes it’s just questions like ‘Where should we look?'” Motwani said. “Other times, it’s discussions about talent, or ‘Can you connect me with another C-suite executive who has made the move?'”

This guidance is in high demand. According to media reports this year, top Miami-area schools have become so crowded that billionaire newcomers are literally writing multimillion-dollar “charity” checks to secure placements for their children. From every angle, Florida’s real estate market is outperforming expectations. While this may benefit investors, the lack of affordable housing has become a concern for policymakers, who are striving to incentivize the development of more reasonably priced apartments. A recent report by the Florida Policy Project reveals that over 1 million residents statewide are spending more than 50% of their income on housing. Rising homeowners’ insurance premiums are only exacerbating the problem. According to a recent study by the Florida Apartment Association, Florida will need approximately 500,000 new housing units by 2030 to alleviate costs and meet future demand. Not surprisingly, Florida’s housing shortage has translated into some of the highest price increases in the nation. Miami’s median home and condo prices have climbed by 64% since mid-2019, according to Miller Samuel. In comparison, Los Angeles saw a 14% increase during the same period, and Manhattan even experienced a 1.2% decline. Price gains were robust outside Miami as well, with a 62% increase in Boca Raton and a 59% jump in Delray Beach. In finance-focused Palm Beach, residential property has been turbocharged by the pandemic, rising 141% since the second quarter of 2019, according to Miller Samuel. While prices are beginning to stabilize, this year has already seen at least five homes trade for over $50 million, including a $155 million compound sold by the widow of Rush Limbaugh. “Forty years ago, Palm Beach was a place where old people went for their last few years, and that’s absolutely not the case now,” noted Savanna’s Bienstock.

Similar to residential developers, commercial property investors are also helping South Florida maintain its real estate edge, pouring more than $63 billion into the three regional counties in 2021 and 2022, according to data by MSCI Real Assets. In Miami, New York’s Related Cos and Swire Properties are making the highest-profile bet yet that Miami’s ongoing influx of human and economic capital is both permanent and continuous. The developers are currently constructing Florida’s tallest commercial tower, the 1.5 million-square-foot, 1,000-foot-tall One Brickell City Centre in downtown Miami. Developments like One Brickell are crucial for Miami’s continued growth. Corporate relocations surged by 33% last year, and the total assets managed by financial firms in Miami reached $390 billion in August 2022, up from $75 billion in 2019, according to the city’s Downtown Development Authority. “The missing link is quality office space, and that’s the gap we’re aiming to fill,” said David Martin, senior vice president of retail and commercial leasing for Swire’s US operation. Office vacancies stood at just 10.4% in the second quarter of this year in Miami-Dade County, according to Colliers, compared to a record high of 17.8% in Manhattan and over 30% in San Francisco.

Miami’s Downtown is now also more easily accessible to Boca Raton and Palm Beach thanks to the new $6.2 billion Brightline high-speed rail service. Other New York-based developers, including real estate titan Harry Macklowe, Chrysler Building owner Aby Rosen, and the Naftali Group, are all planning their debuts in Florida. “There is still a migration of people,” says billionaire developer Richard LeFrak, who has more than doubled his South Florida staff since the pandemic. “It’s not as dramatic as it was during COVID, but it’s still a steady stream.” For the time being, signs indicate that newcomers will continue to arrive both in the short and long term. Miami’s current metropolitan area population of 6.26 million is expected to grow an additional seven percent by 2030. This could help Florida withstand the housing downturn that many experts fear, given the soaring mortgage rates and ongoing inflation in the US. According to a recent study by the University of Florida’s GeoPlan Center, the state’s population could surge to 33 million from its current 21.7 million by 2070.

“Our economy here in Florida is where California was circa the late 1960s when it really started to expand,” Prof. Johnson said. “There was always the weather and the saltwater, but now the professional opportunities are here as well. This expansion is going to go on for quite some time, and we’re going to be talking about housing for quite some time.”

Source: New York Post (By Oshrat Carmiel, Publisher of Highest & Best)

Agenzia investimenti immobiliari | Chianti

Tuscany: The Ultimate Real Estate Dream for Foreign Buyers. Discover the Latest Trends and Insights!

By Columbus International,9 October 2023

Foreign buyers are making waves in the Tuscan real estate scene, ready to splash out an average of over 500,000 euros. Hailing mainly from the United States and Germany, they’re dreaming of homes, and if there’s a garden, even better!

Lucca province is their prime pick, accounting for the lion’s share of requests, with Pisa, Massa-Carrara, and Siena following suit. This captivating real estate portrait comes courtesy of Gate-away. Americans lead the charge, snapping up 29% of the real estate pie, followed by Germany at 14%, and the UK at 7.6%. Even Canada is joining the party, showing a 5.2% increase in interest. While apartments still hold the crown with 23.7% of the demand, villas are gaining ground at 12.7%.

A pool, garden, or some land to call their own isn’t a deal-breaker, but gardens take the gold with a whopping 69% preference rate. In the first four months of 2023, investments are hot in the sub-100,000 euro range, representing 33.9% of total requests. The 100-250,000 euro bracket is next in line at 23.5%, followed by 250-500,000 euros (18.3%), 500,000-1 million euros (14.6%), and over 1 million euros (9.5%). The average property sought? A cool 516,865 euros.

Italian Real Estate Market in September 2023: Milan Takes the Lead with Over €5,300 per Square Meter (Immobiliare.it)

By Columbus International,3 October 2023

In September 2023, the average cost per square meter to purchase a house in Italy stands at €2,122. However, if we consider Milan, prices soar to over €5,300 per square meter.

These figures have been revealed by the monthly Observatory of the Italian real estate market by Immobiliare.it Insights, pertaining to property transactions in September 2023. There are no significant variations in house sale prices across the entire national territory.

The national difference is 0.2% compared to the previous month (3.2% compared to the same period last year), with a slight variation between the Northern regions (0.6%) and the Central-Islands area (-0.2% and -0.1%). The average price per square meter on a national level reflects vastly different scenarios. While in the Central-Northern regions, prices comfortably exceed €2,000 per square meter, in the South and Islands, they stabilize between €1,300 and €1,500.

In August, there was a nearly 9% drop in real estate supply in all regions, particularly in the Northwest and Center with a -10%. In September, the situation changed drastically, with a national average growth of over 9.1%. The areas that had experienced a significant decline the previous month are the ones that show the most recovery: Northwest (+10.5%) and Center (+10.1%), followed by the South (+8.1%), Northeast (+6.9%), and Islands (+6.5%). A similar trend is observed in demand: in August, due to seasonality, there was a sharp decline, while in September, there is a recovery, with peaks of 25.2% in the Northwest. The national average surpasses 20%, precisely 21.3%.

Demand is growing everywhere, albeit less markedly in the Islands, where it stands at 8.2%. Average rental prices show a trend towards stability, with slight increases in both major cities (+0.4%, at €3,250 per square meter) and smaller centers (+0.2%, at €1,797 per square meter) – the latter being those with fewer than 250,000 inhabitants. The most noticeable aspect emerges when analyzing demand and supply: there is a clear difference between major cities and smaller centers. In cities, there has been a rush in sales contracts, with a demand growth of 33.4% compared to August, although there is a decline of -4.1% compared to the same period last year. In smaller centers, there is an increase of 11.6% (-0.3% compared to September 2022). Simultaneously, supply has also expanded: +20.8% in centers with over 250,000 inhabitants and +6.4% in those below this threshold.

Milan reaffirms itself as the most expensive city in Italy. To purchase a property, one would need €5,301 per square meter. This is the first time that the €5,300 threshold has been surpassed, given that in August, the price was €5,271 per square meter. Bolzano secures the second spot with €4,657 per square meter, slightly lower than the €4,684 per square meter in August, followed by Florence with €4,125 per square meter (compared to €4,130 in August). Among provincial capitals, Catanzaro is the least expensive, at €988 per square meter.

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Tuscany: The Ultimate Real Estate Dream for Foreign Buyers. Discover the Latest Trends and Insights!

Italian Real Estate Market in September 2023: Milan Takes the Lead with Over €5,300 per Square Meter (Immobiliare.it)

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