Land grab in once-seedy Miami neighborhood

Miami /
Apr.April 23, 2013 10:00 AM

Land values in Miami’s Edgewater neighborhood are appreciating quickly as developers gobble up parcels, the Daily Business Review reported.

Miami-based Related Group, led by real estate powerbroker Jorge Pérez, paid $29 million for a waterfront site that was sold last year for $11 million, according to the newspaper.

As inventories dwindle in downtown Miami and Brickell, the strip of low-rise housing on Biscayne Bay between two interstate highways that lead to Miami Beach, has seen values rise precipitously, from an average $50 per square foot to $300 per square foot, the Business Review said.

Highly leveraged speculators drove up prices for Edgewater real estate during the last boom, but after the 2007 crash, condo units in the projects that didn’t fail were sold at large discounts.

This time, developers are emulating the financing structures of their South American buyers’ home countries, requiring a down payment equivalent to 50 percent of the sales price, according to the paper.

Jorge Luis Melo and his sons, Carlos and Martin, migrated from Argentina in 2001 and built their first condo project, a 96-unit tower in Edgewater, during the recession. They closed on the project last year, when units were selling for $260 to $300 per square foot, and are using the profits to build as many as 2,500 more units in the neighborhood.

Melo figured that the waterfront area so close to downtown, once a haven for prostitutes and homeless people, would eventually become valuable real estate.

“Now, there is no way back,” he told the paper. [Daily Business Review] –Emily Schmall


Related Articles

arrow_forward_ios
South Florida by the numbers: Miami developers stay nimble
South Florida by the numbers: Miami developers stay nimble
South Florida by the numbers: Miami developers stay nimble
Jorge Pérez vs Stephen and Louise Kornfeld with a rendering of Icon Marina Village (Related Group, Getty, Wikipedia)
Related Group allegedly jilted investors in waterfront West Palm resi project: lawsuit
Related Group allegedly jilted investors in waterfront West Palm resi project: lawsuit
Tricap's David Edelstein, Related's Nick Perez and a rendering of NoMad Residences Wynwood (Getty, Related)
Related, Tricap launch sales of NoMad-branded condos in Wynwood with Casa Tua
Related, Tricap launch sales of NoMad-branded condos in Wynwood with Casa Tua
Rishi Kapoor, Eric Fordin, Suzanne Amaducci-Adams with The Crosby and Urbin
Investors flock to short-term rental condo projects in Miami
Investors flock to short-term rental condo projects in Miami
Jorge and Jon Paul Pere with Arnaud Karsenti and  Castle Beach (Colliers South Florida, University of Miami, Wikipedia, )
Related, 13th Floor offer $500M for aging, oceanfront Miami Beach condo building
Related, 13th Floor offer $500M for aging, oceanfront Miami Beach condo building
Related Group's Steve Patterson (Related Group, Eddy Martinez Roland Ortiz at One Sotheby’s with Lux Hunters)
Related Group Development’s CEO buys flipped Miami Beach condo
Related Group Development’s CEO buys flipped Miami Beach condo
Related Group's Jorge Pérez and Jon Paul Pérez (Related Group, iStock)
Related to build condo tower on city-owned beachfront site in Hollywood
Related to build condo tower on city-owned beachfront site in Hollywood
Related Group begins sales of Casamar in Pompano Beach
Related Group begins sales of Casamar in Pompano Beach
Related Group begins sales of Casamar in Pompano Beach
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...