Biggest South Florida Real Estate News of 2024

This year saw record prices for waterfront homes and new projects launched by developers, buoyed by enduring demand.

On the flip side, South Florida’s office market slowed down. High interest rates stifled multifamily. And residential brokerages adapted to changes brought by a landmark settlement in the class action lawsuit filed against the National Association of Realtors and a handful of firms.

But the stories that really dominated South Florida real estate headlines in 2024 were the scandals that brought down once-prominent brokers and developers.

Brothers Oren and Tal Alexander, accused of rape in civil lawsuits first reported by The Real Deal this summer, were arrested by the FBI on federal sex trafficking charges in December.

In July, Sergio Pino, who led the largest Hispanic-owned homebuilding firm in the country, died by suicide when the FBI showed up to his home to arrest him for allegedly trying to murder his estranged wife multiple times.

Here’s a look at some of the top stories of the year:

Miami Beach luxury broker Oren Alexander and his brothers charged with sex trafficking

Oren, Alon and Tal were all accused of rape and sexual assault in civil lawsuits, prompting an FBI investigation into the brothers. Oren and Tal led Official Partners, a Side-backed brokerage, while their brother Alon was an executive at the family’s private security firm, Kent Security. Oren and Tal became brokers to the 1 percent of buyers and sellers over the course of their decade-long career at Douglas Elliman, before they left the brokerage in 2022.

In the months after the rape accusations became public, the Alexanders took full control of Official. The agency lost its new development business and most of its agents, and appears to have shut down.

In December, the FBI arrested Oren and Alon on state sexual battery charges. The three brothers were also indicted on federal sex trafficking charges and are being held at the Miami federal detention center. Prosecutors allege they drugged and raped women dating back to when the brothers’ high school days in North Miami Beach. If convicted, they face a minimum of 15 years or up to life in prison.

Sergio Pino, accused of ordering multiple hits on his estranged wife, dies by suicide

The late Pino, who founded Century Homebuilders Group, was about to be arrested by the FBI in mid-July when he shot himself to death at his Coral Gables home. The FBI alleged that Pino hired hitmen to murder Tatiana Pino. The couple was in the middle of a nasty divorce: Tatiana had claimed in court that Sergio tried to kill her by poisoning her with fentanyl and bath salts.

Tatiana Pino became president of Century Homebuilders following his death, but Sergio’s brother, Carlos Pino, levied a court fight for a stake in the company.

High interest rates suppress commercial real estate

Office leasing slowed down, in part due to fewer companies relocating to the region and elevated interest rates. Some companies that leased office space during the pandemic-fueled boom backed out of their leases. Investment sales of office buildings also declined.

Multifamily developers and landlords also suffered at the hands of high interest rates. Pricing fell, and no single-asset purchase reached $200 million.

Some commercial landlords faltered, including Raoul Thomas of CGI Merchant Group. Thomas lost two of his hotels to lenders and has other loans that are delinquent or in special servicing. Foreclosures in general ticked up.

Condo market forced to face new legislation, condo buyouts stutter + crackdown on HOAs

It was a turbulent year for existing condo communities and homeowners associations as a result of new statewide legislation. More unit owners and former and current board members are speaking out over alleged election meddling, the misappropriations of funds and alleged insider deals. The Miami-Dade State Attorney’s office continues to charge people in the massive fraud at the Hammocks, one of Florida’s largest HOAs. The scheme was first uncovered in 2022.

Also, it’s become more expensive to live in condo communities because associations are forced to fund repairs and cover the increased cost of insurance, prompting some owners to sell. Older buildings or those that are short of funding or in need of repairs are less desirable to prospective buyers.

This should, in theory, propel developers to complete buyouts of condo buildings that are in prime locations with desirable zoning. But few, if any, large-scale buyouts closed.

An appeals court ruling entered in March put some deals in limbo, and the future of a planned luxury condo project in Miami’s Edgewater in jeopardy. The ruling found that for any condominium association where a termination requires 100 percent buy-in by the unit owners, a developer likely can’t buy the majority of units and vote to change the rules without 100 percent support. Some developers would take this route as a “back-door” way to push terminations forward.

Retail remains strong, but restaurant industry sees record turnover

South Florida’s retail market performed well, spurring a number of institutional trades of grocery-anchored shopping centers.

Restaurants, on the other hand, were the victims of record turnover during one of the most challenging years for the food and beverage industry. Mom-and-pop operators and big chain restaurants alike had to close their doors after suffering a particularly slow summer. Still, many spaces were quickly filled by prospective operators willing to pay six- and seven-figure sums, on top of their monthly rent.

Condo developers keep launching projects, many with brand names or short-term rental flexibility

Dozens of condo projects moved forward across South Florida. The trend of branded condos expanded further into Palm Beach and Broward counties. Developers teamed up with brands that include Viceroy, Standard, Armani/Casa and Pagani.

Many secured large construction loans despite a challenging financing environment. Because developers can tap into buyers’ deposits, lenders view these developments as less risky than others. Most of the projects in the pipeline across South Florida are now branded, and some offer owners short-term rental flexibility.

PMG and its partners secured the largest construction financing package: $668 million for the planned Waldorf Astoria Hotel & Residences supertall in downtown Miami, in June. Bank OZK, the most active construction lender in the region, and Related Fund Management are the lenders.

Despite the condo market’s strength, some projects faltered and stalled and/or are facing lawsuits. A handful of buyers at the long-delayed Mandarin Oriental in Boca Raton sued the developer, Penn-Florida Companies. The project, which includes a planned 164-room Mandarin Oriental hotel and a 86-unit condo, was originally expected to be completed in 2020. (Penn-Florida has other troubles, as well.)