Monthly Archives: November 2006
Miami Intent on Reasserting its FTAA Secretariat Bid
With Mercosur drawing Latin American attention away from the FTAA, the whole international trade-bloc idea has stalled. Still, cities like Houston, Dallas, and Atlanta are vying for the secretariat of this proposed trade bloc. The whole idea was concocted in Miami in 1994’s Summit of the Americas in the Biltmore Hotel. Therefore, it seems fitting—given Miami’s unique role in facilitating trade between the north and south part of the western hemisphere, its central geographic location, and huge bilingual population—that the city attains the secretariat, but politics tend to obstruct logic. The 2008 Inter-American Bank conference, which is to be held in the United States is the latest way that Miami is reasserting itself as the best staging point for hemispheric trade talks and negotiations. If the FTAA were to become a reality, and the Secretariat be located in Miami, then not only will the city’s unofficial title as “The Gateway to the Americas” be secured, but the level of economic propulsion for the city would likely be enormous. Continue reading for the BizJournal article on the IDB conference. Continue reading
What’s Goin’ On
Russians invade Miami Real Estate market. Infinity developer partners with Chopard to for special event. Phillip Starck and Jorge Perez will make Art Basel appearance. Artsy Mondrian launches sales center parallel to the Art Basel event. Most important architectural firm in Shanghai makes Miami presentation. Continue reading for more information on all this and more from the Sun Post. Continue reading
Filed under News
Stadium Plans will Propel Development
The proposed downtown Marlins stadium would be a vehicle by which the CBD interior can see more development. Currently, the interior portion of the CBD does not have much major development activity compared to other nearby neighborhoods. The stadium would redefine the interior and propel new interest in the area. It will be interesting to analyze acquisitions in the area as the stadium plan gains momentum. Through a development standpoint, East Overtown will stand to benefit the most from this plan. Continue reading for Miami Today’s report on the matter. Continue reading
Filed under News
The Sarnoff Factor
Now that Sarnoff is the commissioner for Miami’s most densely developed area, it is important to know who he is and what he stands for. According to Sarnoff, he is for smart developments. Critics claim he is anti-development. Sarnoff, an attorney based out of Coconut Grove, considers the Kubik approval to have been a mistake, is opposed to high rise development north of 36th street. Sarnoff’s approach towards development involves having concurrent plans for roads, water, schools, and other infrastructure. This all seems like common sense, but the reality is that without activists like Sarnoff, the City commission might adopt unbalanced development initiatives. Continue reading for this excellent Daily Business Review article concerning the Sarnoff factor in Miami’s development scene. Continue reading
Filed under News
North Bay Village Implements Novel Retail Boosting Ordinance
North Bay Village passed an ordinance which makes it mandatory for new developments to be mixed use with retail components. The island community is seeing an explosion in new developments and is arguably one of the best situated communities in Miami (on the bay, between Miami and Ft. Lauderdale). Regardless, the city is realizing that controls need to be in place in order to prevent the new development from taking on a one-dimensional “condo canyon” appearance. Ultimately, this initiative will benefit residents of this bay front enclave by providing retail outlets that will provide the community with more self sufficiency as well as appeal for visitors and prospective investors. The ordinance will make the city more diverse and economically vibrant. Continue reading for the Sun Post article Continue reading
Filed under News, North Bay Village
Housing Slump Has Broad Ramifications According to Chairman Bernake
The housing slump can have broad ramifications on “aggregate employement” and “consumer spending”. With housing prices falling in some areas, home equities are being adversely affected, and this affects consumer spending. This Washington Post report cites Miami as being one of the major markets being affected by the collective home price drop. Still, there is some encouraging news in terms of home sales, which have, risen slightly over recent months. Continue reading for the Washington Post article. Continue reading
Condominium Hotels are a Tricky Business
Currently, several of Miami’s newest multi-family projects are going to have a hotel component. It is easy to think, as an owner, that you are going to have more advantages by living in a place where there is a hotel due to the added amenities, but this is not necessarily the case. The problem is that a hotel condo will always have two entities with distinct goals. The condominium association and hotel group are often going to be at odds, and in fact, there are several examples of problems resulting in litigation—particularly with hotel/condo conversions in older buildings like almost every Crescent Heights development on Miami Beach. The hotel group or rental program will typically be most concerned with cosmetic issues in the building instead of life safety. Additionally, when there is a hotel in a condominium, security has to be far tighter, which ends up costing the association a pretty penny. The reason is clear: hotel guests party, make messes, and invite others into their hotel units to do the same. They have no vested interest in the community. Often times, the share of the burden of expenses between the hotel and condominium group are not evenly balanced—for example, the hotel restaurant(s) may be the primary consumer of gas but the condo association pay the brunt of the bill. Typically, a hotel group will own several units and facilitate a rental program, but since the group owns several units, it has voting clout. The board of directors can often become a battleground between the condominium association owners and the hotel group owners. This is not to say that condo/hotels are disasters or that they are not a good place to live in, but there are many factors that go into living in a condo/hotel that make it quite different from regular condominiums. Continue reading for a New York Times article addressing the hotel/condo issue. Continue reading
Filed under BoB Articles, News
Lima Approved on Nov. 15th by 5-0 Vote
Lima gets a unanimous approval from the City Planning Advisory Board. Other developments are deferred till later. Read this Sun Post article for more information on Lima’s approval. Continue reading
Filed under News, Uptown: Edgewater
Controversial Venezuelan Elections Will Affect Miami
Within the last decade or so, South American real estate investment in Miami has grown significantly. This is due to several factors but the two most important are: geography and a solid Spanish speaking foundation. As a testament to this fact, the Brickell Village Financial District is dotted with Latin American based banks. It has become apparent to South Americans that Miami is an ideal entry point, and potential place of residence, in the United States. Although investors are coming to Miami from all over Latin America, Venezuela has become one of the primary contributors. This trend, although not recent, has become increasingly apparent with the advent of the Chavez regime. More and more wealthy Venezuelans are looking to Miami’s real estate market as a safe haven for their money. However, this implies transient residency, at best. In other words, these foreign investors have no plans of living in Miami as their primary residence. An election, however, may rapidly change the status quo. The Chavez administration has implemented middle-class corroding land reform and economic policies. The upper-classes of Venezuela, long induced by Miami’s appeal, are now considering it their escape from the Chavez grip. This is not to say that Venezuelans are surrendering their political stability to a leftist Simon Bolivar wanna-be. It is to say that Venezuela’s current election will not likely favor the opposition, which means Chavez stays and becomes more powerful than ever before. Unlike most other U.S. cities, Miami has to have its political radar extended into Latin America, because events such as political uprisings, economic collapses, and unfavorable elections, affect America’s southernmost metropolis. This is another one of Miami’s exceptional socio-economic characteristics. The Venezuela election will affect Miami. Any way you slice the political pie, the results will either lure a wave of Venezuelans to the city or persuade others to return to their country. Already, the anticipated election results are arousing the emotions of Miami’s relatively large Venezuelan population. Regardless, the fact remains: Miamians need to monitor Venezuela’s December election closely. Continue reading for a BBCnews.com report on this controversial election. Continue reading
Filed under News
Collapsed Projects Are Transitioning
This Miami Herald report uncovers a bit of the reality behind deals that seemingly go sour. The article makes the claim that even if a project gets cancelled, it doesn’t necessarily constitute a business failure. The reality is that some developers are profiting the same when they sell their permits, lots, and project plans, than if they would have gone through with their construction plans. Others are settling for a comfortable flip of the property. On the other end, the buyers of these well placed lots and building plans and permits will find it much easier to attain financing and start construction. Edie Laquer is provided as an inside source. With Laquer’s plethora of “For Sale” signs having the Laquer name, it is interesting to get Laquer’s views, which of course one should take with a grain of salt, because of the conflict of interest that comes from selling. One of the most critical points that the article makes is the potential adaptation of more office/commercial developments sue to the residential market glut. This observation is extremely important as it is likely true and may denote a switching of the development momentum in favor of office versus residential space. Importantly, the notion of staying power of owners is mentioned as vital in fostering market stability. Continue reading
Filed under News
