The Real Deal Miami

What top Miami developers are predicting for 2015

On the whole, the take remains upbeat

December 22, 2014 03:45PM
By Katherine Kallergis

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From left: Ron Krongold, Nitin Motwani, Don Peebles, Jacob Roffman, Tom Roth

From left: Ron Krongold, Nitin Motwani, Don Peebles, Jacob Roffman, Tom Roth

We asked top developers in Miami what they see happening in the real estate market in 2015. Here’s what they had to say:

Ronald Krongold, CEO of Gold Krown Financial:

“I think in 2015, [the market] is going to slow down. A six-month supply is normal. When you start to reach seven, eight, nine month supplies, that’s way too long because there are so many units and they’re so high-priced. The economies where most people are buying from are not doing well. Although there won’t be a crash, I think it’s going to level out.”

Nitin Motwani, managing principal with Miami Worldcenter Associates:

“The best-positioned projects heading into 2015 will be those with strong sponsors and an active sales and marketing infrastructure up and running. Properties offering a unique experience or location are also in high demand. We launched sales for Paramount Miami Worldcenter within the past month and have already experienced a flood of buyer interest, thanks largely to our location within a mixed-use development in the heart of downtown Miami.”

Don Peebles, CEO of The Peebles Corporation:

“You’re going to see continued strength and growth on the luxury condo side. You’ll see a significant increase of development projects focused on rental housing on the luxury side and on the workforce side. The gap between the cost of ownership and the cost of rent will become much narrower. The motivation behind purchasing condos before was not for the purpose of a return — it was for the preservation of capital. Now those buyers are becoming more sophisticated. You’ll see Miami evolve from being a one-dimensional real estate market. Once you get off of Miami Beach, the world of development when it comes to rentals gets more crowded.”

Jacob Roffman, principal at 13th Floor Investments:

“Millennials and international investors will continue shaping the Miami residential market in 2015. The desire of young professionals to live in areas with proximity to mass transit has seen investors respond with an unprecedented level of development in and around the urban core. We’ve seen this firsthand at our sold-out 1010 Brickell project, and we expect similar interest in our multifamily development project with the Adler Group, which breaks ground next year and is located directly adjacent to the Dadeland North Metrorail Station. ‘Special’ projects by well-established developers will prevail, as foreign demand for for-sale product moderates due to increased difficulties in moving capital out of foreign countries.”

Tom Roth, principal at Grass River Property:

“We are bullish on the Miami real estate market at Grass River Property. From an investment standpoint, Miami has never been stronger. We are one of a few top U.S. markets that appeals to major onshore institutional investors, private equity and international investors alike. We continue to attract Latin Americans in big numbers looking to find a home for flight capital and a safe place to live. Europeans choose Miami for lower taxes and better climate. Northeasterners are looking to Miami for no state taxes, better climate and an emerging urban lifestyle. South Florida’s suburban audiences are attracted to the city for the variety of residential options and vibrant lifestyle, neither of which were trademarks of Miami in years past. In 2015, this demand will have the greatest impact on our residential, retail and office markets.”

These interviews have been edited and condensed for clarity. 

  • JOSEPH

    haha this is such a joke, the developers that have luxury condos in the pipeline are all saying the same BS that will not scare buyers from purchasing in Miami. the only developer that is honest and has a clue on what is going is Ronal Krongold. Of course the rest of the developers who are panicking will not say the truth, do you really believe that all these luxury expensive condos has the hyper and sales that these developers are speaking about. What, every development has buyers lining up ? Its going to level out and once it does the prices will drop if the developers can afford to even hold on that long with out feeling pressure from their investors and banks. THEY BUILT ON HYPE NOT ECONOMICS. RONAL KRONGOLD HAS THE MOST HONEST ANSWER.

  • Skip Van Cel

    Are these people believable? Isn’t there an interests conflict? What would they be expected to say? “The market is getting saturated with luxury product and anyone that buys into my project is going to lose their shirt.” Oh, I forgot, this time it’s different.

  • aaron peebles

    Skip can cel could not of said it better. Real deal please stop praising these developers as if what they do is for the great of the market. They know how the market slowed down and they will sell their mother just to sell on of their condos. these are the same crooks who brought the market down and are as greedy as Miami politicians. No one is standing outside of their offices begging to buy a property. .

  • Mark

    The Real Deal is more like The Shady Deal. These “interviews” are useless. No wonder The Next Miami website is more popular than these. Love that site. Visit that site at least 5 times a day because of the amount of news coming out. NEWS, not this stuff.

  • REAL DEAL IS GARBAGE NOW

    THE REAL DEAL IS ALREADY A JOKE, THEY CARE MORE ABOUT BEING PART OF EVENTS AND GLORFYING CROOKS AND GREEDY DEVELOPERS THAT DONT KNOW THEIR HEAD FROM THEIR *** . Developers cant predict the Miami market, every one knows all these condos are aiming for a bust, they went on a wave Miami received the last 2 years and took out loans AGAIN FOR 100’S OF MILLIONS, AND BECAUSE THE BANKS ARE SO BUSY GIVING THESE CROOKED DEVELOPERS LOANS THEY ARE TIED UP FOR THE SMALLER LOANS THAT PEOPLE ACTUALLY NEED TO GET THE ECONOMY GOING. THE ECONOMY IN MIAMI IS HORRIBLE JOBS ARE AT A LOW, BUYERS ARE NOT FORM HERE AND ONCE MIAMI STOPS BEING THE HOT SPOT FOR FORIGN BUYERS THEN THATS IT DEVELOPERS ARE SCREWED, AND THATS WHAT IS HAPPENING. OF COURSE EVERY DEVELOPER WILL SAY WE HAVE LINES AND WE ARE SELLING PEOPLE ARE INTERESTED. WHAT DO YOU WANT A SHADY DEVELOPER TO SAY YESSSSS WE SCREWED UP AND BUILDING ON A SHORT SHORT HYPE NOT ECNONOMICS

  • sammy

    Lets just interview NIKE and ask them if they have the best sneaker in the industry. That is what real deal does with developers. Developer are either paying the real deal to be interview or real deal is retarded

  • Mondocondo

    To be fair, Krongold did say he sees a slowdown coming.

  • Laz

    You guys are vicious, relax. Things have been selling very well for a couple of years. Yes, foreign investors are a big part of it because they believe in Miami. Things have slowed down since November & the condo market seems like it might get overly saturated, which will create some struggles. No one can say how long before the expansive inventory will be absorbed. It seems that prices will come down as a result of saturation, although demand is high. Lets watch & hope for the best. On a more positive note, based on many of the projects, it does look like Miami will become an even better city than it already is, which is encouraging to investors.

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