A new trend in the Miami's multifamily market is high-rise condo/ hotels and a greater offering of large luxury space. Buyers are also combining two and three apartments to make larger units, according to Gil Dezer, developer of Sonesta Ocean Grande. "We are seeing multi-millionaires and second home buyers purchasing units here in the $300,000 to $550,000 range," he says.

The majority of the development in Miami is taking place along the waterfront, according to Philip Spiegelman, president of International Sales Group. He says this is what purchasers from around the world are looking for. Tim Burns, vice president of Tarragon Realty Investors, also notes that most of the development is taking place in oceanfront and Intracoastal condominiums and conversions because they are the last few waterfront sites available. There is limited land and a high demand, he adds. Alexander Fraga, principal of FIRC Group, says that the hot spot for development is trending toward the west, specifically the airport west (Doral) area. He says this is because of the availability of land. "There is also a lot of excitement about the downtown area near the river," says Fraga. "People are hustling to see what they can find in Brickell as well, but I believe it is already at full capacity," he adds.

Significant developments in the area include Aqua, Luxury Suites at the Fontainebleau, Grandview and 5600 Collins Avenue. These developments will raise property values in the area, according to Burns. Sonesta Ocean Grande is the first full-service hotel in the Sunny Isles Beach area.

New developers to the Miami market include Turnberry International Realty, Millenium Partners, Boca Developers, Inc., and FIRC. Dezer says that virtually everyone, except for a handful of developers, is new to the area.

Types of projects that are currently being developed include luxury high-rise condominiums, condo/hotels and some townhomes. Due to the cost of land and construction in today's market, developers need to attract the high-end buyers. "Developers are looking to attract South Americans, local Miami-Dade county residents moving east and second home buyers," says Burns. Mixed-use or urban living developments are also popular and feature the top floors as condo/ rental residential, middle floors as office, and bottom floors as retail.

The areas to keep an eye on in the near future, according to Burns, are the local market because of the revival of the downtown area and the South American market.

Other areas to watch are the Aventura and Sunny Isles Beach areas because of their high concentration of activity, as well as the Doral, Brickell, Coconut Grove and Miami River areas.

Burns says that growth in the multifamily market in Miami during the past year has been limited because of the lack of available land to develop. "There has been a surge of condo conversions and condo/hotels," he says, "so conversions may become the new trend due to this lack of land available to build on." However, Dezer says that growth in the area overall has been substantial. "There are a lot of new projects out there as well as tough competition, but there is enough demand to support us all," he says. Spiegelman notes that there are more than 5,000 new apartments currenlty under development.

The consensus is that Miami's multifamily market will continue to grow for years to come based upon international appeal, while the oceanfront market will continue to grow for a short time, until there is no more undeveloped land. "Miami is, and will remain," says Burns, "one of the most desirable places to live."


©2001 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.