Land grab in once-seedy Miami neighborhood

TRD MIAMI /
Apr.April 23, 2013 10:00 AM

Edgewater

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
Daily Digest Miami

54-story Turnberry Ocean Club tops off, Flagler streetscape project to break ground: Daily digest

From left: Jon Paul Perez, Alex Karakhanian, Tony Arellano and Devlin Marinoff over the site (Credit: Google Maps)

Related Group, Alex Karakhanian and partners drop $32M on Wynwood site

Jon Paul Pérez, Jorge Pérez and the downtown Miami skyline (Credit: iStock)

Miami’s biggest condo developer is going micro

Jorge Pérez with renderings of the projects

Related Group, Atlantic Pacific seek approvals for mixed-use apartment projects

233 North Miami Avenue and Jorge Perez

Related Group picks up two lots next to Miami Dade College for $9M

The Gallery on the River and Jorge Perez of Related Group (Credit: Wikipedia)

Related Group moves forward with Gallery on the River project

(Credit: Getty Images)

All eyes on cranes during Hurricane Dorian

Daily Digest Miami

Ben Carson dismisses concerns about Opportunity Zones, private equity landlord pays $10M for Palm Beach Gardens properties: Daily digest

arrow_forward_ios