Arnaud Karsenti now betting on new development

When the South Florida market was in the tank, Arnaud Karsenti got serious about investing in distressed real estate. Now with the market back on its feet, Karsenti‘s 13th Floor Investments is focusing on new development.

Karsenti told the Miami Herald that his company’s strategy is value investing — purchasing at a disciplined price with an eye to finding an opportunity to add value.

“If you look at our team now compared to five years ago, you can see how we have evolved to adapt to a rapidly changing real estate market,” Karsenti told the newspaper. “Every team member brings a specific set of skills to help 13th Floor stay relevant and ahead of the market.”

Karsenti’s 13th Floor has raised capital and begun to jointly develop properties with Key International Realty. Those recent projects include 400 Sunny Isles and 1010 Brickell, both high-rise condominium projects, and The Harbour, two 26-story condo towers planned for North Miami Beach.

And in August, 13th Floor and Key International formed a partnership with the Related Group to acquire a 2.4-acre parcel at 4000 South Ocean Drive in Hollywood at a foreclosure auction. The group is planning a mixed-use condominium-hotel for the site, with construction starting in the second half of next year.

“Sunny weather, net positive population growth and an action-packed, volatile market are great ingredients for building a real estate investment and development business,” Karsenti said. “Volatility creates ‘ups’ and ‘downs’ that translate to market dislocations and opportunities for groups like us.” [Miami Herald] – Christopher Cameron