Offering safety in the hurricane zone
One developer is fortifying a new Brickell district development to withstand the increasing number of powerful hurricanes rolling through the South Florida region.
Bunker Brickell, at 1750 SW First Avenue, is a cross between a hotel-condo and a hurricane shelter. It is designed with luxury touches and weatherproof features, such as storm shutters, its own power generator and an emergency satellite phone in the lobby, according to the Miami Herald.
The 14-story, 75-unit project is a response to the 2005 hurricane season, when three powerful storms hit Florida, leaving almost a million homes without power and mountains of shattered glass in high-rise towers.
Units range in size from 500 to 1,200 square feet, with prices running from around $300,000 to $500,000. The project is 60 percent sold, and the developers plan to open it in 18 months.
State expects $1 billion shortfall
For the first time in more than 30 years, Florida expects to collect less tax revenue than in the previous year.
According to the Miami Herald, the budget boom, fueled by reconstruction in the wake of recent hurricanes and skyrocketing property values, is over. Lawmakers may be faced with a $1 billion shortfall when the current budget year ends on June 30. That could require the state to dip into its reserve fund of nearly $3 billion to balance the budget.
The tight budget may derail a plan by statehouse Republicans to make cities and counties roll back property taxes by nearly $6 billion. But lawmakers also have the option of balancing the budget by using growth in housing values, rather than state tax money, to fund school districts.
Big projects planned for Little Havana
Developers are planning projects for Little Havana, a working-class neighborhood with the country’s largest Cuban exile population.
Builders like Wood Partners, which has launched sales for three condominiums in Little Havana and plans a fourth, are betting on the area. That bucks a trend that has other developers scaling back as the housing market declines, according to a report in the Miami Herald. Wood Partners is building the El Colonial at 833 SW 13th Court with 45 units; Aqua Briza, located at 637 NW 1st Street, with 57 residences; and Puerto Nuevo at 1144 NW South River Drive, with 98 residences.
Little Havana hasn’t seen big development until now. In addition to Wood Partners’ projects, Canyon-Johnson Urban Funds, a Los Angeles-based real estate investment fund co-chaired by former NBA star Earvin “Magic” Johnson, took a majority stake in Morrison, a 19-story, two-tower mixed-use building on West Flagler Street.
The neighborhood’s proximity to downtown Miami, demand for low- and middle-income housing and lower land prices make it more attractive to developers than other locales. Condo units at Wood Partners’ projects are expected to cost between $190,000 and $250,000.
Hollywood to spruce up beaches
The City of Hollywood will borrow $60 million to spruce up its beaches. The city plans to spend more than $140 million over the next several years on beach improvements, the Sun-Sentinel reported. The funds will pay for renovations and new public infrastructure and provide incentives to developers. Residents criticized the renovation plans, saying too much of the money is going to developers who want to build garages.
Population loss in South Florida
Broward is losing residents because of the high cost of living there. More people are leaving Broward County for other parts of Florida or around the country than are moving in, the Sun-Sentinel reported. According to Census Bureau figures, from 2005 to 2006, Broward lost 18,459 people to other counties and states. Broward’s population still grew by 5,620 people, partly because 15,227 people came to Broward from outside the United States.
Market insiders say increases in home insurance and property taxes are near the top of the list of reasons for the migration out of Broward. Other factors include the stress and inconvenience of new construction and the damages caused by hurricanes. Real estate agents say residents are mostly relocating to Tennessee, the Carolinas and Georgia.
Market softens in Broward County
Broward County’s housing market is trending downward after a slight increase in December. According to the Florida Association of Realtors, the county had 458 sales of existing homes in January, down 17 percent from 552 a year ago. The median price fell 2 percent to $364,500 from $370,500 a year ago, the Sun-Sentinel reported. Condo sales fell 26 percent, to 556 from 753 units the previous year, according to data from the Orlando-based Realtors’ Group. Condominium prices also declined from the previous year. The median condo price in January declined 6 percent to $199,200 from $211,500 a year ago. Broward’s inventory has increased 24 percent from the previous year to nearly 36,000 homes and condominiums for sale, according to the Keyes Co. of Miami.
Homeowners see premiums cut
Homeowners may see a reduction of as much as 50 percent on insurance premiums. South Florida’s home and condominium owners will have their annual property insurance premiums cut by a minimum of 24 percent by private insurers, the Sun-Sentinel reported. Cuts will depend on where homeowners live and which insurer covers them, according to figures provided by Florida’s Office of Insurance Regulation. The Florida State Legislature recently made several changes to Florida’s Hurricane Catastrophe Fund, which allows customers to see cost savings when private insurance gets reinsured, a method of spreading and diluting risk. The savings will range between 24 percent and 52 percent in Miami-Dade, Broward and Palm Beach counties. Florida’s largest home insurer, Citizens Property Insurance Corp., will give policyholders separate refunds based on declining rates.