Feature: Looking Up
November 1, 2007
The 25-block boardwalk that runs along Miami Beach offers strollers a glimpse into this city’s soul. The white-powder beach and rhythmic ocean waves have long seduced vacationers to this sliver of land bound by the Atlantic Ocean and Biscayne Bay. An international city of 93,535, Miami Beach keeps visitors entertained with an endless barrage of shops, cafes and restaurants, while dozens of nightclubs ensure sleep deprivation.
To see the real action in this town, however, one must simply look skyward. Miami and its environs are besieged with construction cranes, with nearly every other building near the ocean and downtown in some state of pre- or mid-construction unrest. Along the beach, landmark hotels such as the Fontainebleau are being restored, while others are being demolished to make way for the new. The big names, from Ritz-Carlton to Four Seasons, are establishing residences in the area, as are a bevy of boutique hotels, such as the Setai and the Tides.
As of May 2007, there were 4,300 condos on the market in Miami Beach, compared to 2,900 the previous year. Rising inventories have had a sobering effect on sellers, causing them to rethink listing prices, while buyers continue to invest when price and the development’s formula suits their lifestyle. "You hear about the negatives, and there are some negatives," says Paul Boomsma, executive vice president of the luxury portfolio for Leading Real Estate Companies of the World. "Miami is a market that has had more than its share of new construction, but not every developer’s dream and vision is in sync with what buyers want."
Successful developments combine location, design and lifestyle, says Boomsma. "Each new building is more architectural and sculptural than the last, and that’s important to buyers," he says. Having the right name also helps. "Names are the new amenity," says Kevin Tomlinson, a Realtor with Esslinger-Wooten-Maxwell. "Branded projects are outperforming the market." One such undertaking, Canyon Ranch Living mixes its famous name with a beachfront locale and an atmosphere that embraces health and healing. The property will hold 430 condos (priced from $1.4 million to $6 million) and 150 condo hotel suites (priced from $500,000 to $1.2 million). The development also offers a 70,000-square-foot spa, a health and healing center, three swimming pools with personal cabanas, and a restaurant that serves wholesome cuisine.
The technology-savvy will gravitate to Apogee. "Apogee will be the first Park Avenue–quality building in Miami," says Tomlinson. Located at the southern tip of South Beach, the 27-story project offers 67 residences on 22 floors (priced from $2 million to $15 million). Interior spaces, ranging in size from 3,100 to 4,100 square feet, are paired with terraces that add another 1,000 to 2,400 square feet. Crestron smart panels provide one-touch access to valet and spa. Homes are further tailored with Lutron wireless systems for lighting, automated blinds and custom audio/visual systems. Customization also extends to the kitchens—terraces can be fitted with summer kitchens, bedrooms are primed for midnight kitchens, and the main kitchen can be equipped to match the buyer’s lifestyle with three configurations (gourmet, entertainer or connoisseur). Both Canyon Ranch and Apogee also have location on their side. "The majority of negative press about the Miami condo market relates to downtown Miami," says Tomlinson. "Comparing downtown Miami to Miami Beach is like comparing SoHo to Brooklyn—you can’t do it."
In New York, having a Park Avenue address used to be a must for high-end buyers, but that is changing. "The trend away from location in this area started about three years ago mainly due to tightening inventory," says Stan Ponte, president of Coldwell Banker Previews International New York. At the same time, developers were bringing service, security and amenities to other parts of the city. "We had people moving from Park Avenue to Chambers and Broadway," he says. "The city had become more mobile—neighborhoods such as Tribeca now had doormen."
Today’s New York, which saw a 13 percent rise in sales in the second quarter of 2007 (according to Miller Samuel), offers a diverse supply of buildings, and that has kept the market stable, says Ponte. "When a developer is able to choose a couple of lifestyle amenities that appeal to a certain demographic, you have a win-win situation," he says. An example is One Jackson Square in the West Village. The project tempts the environmentally conscious with its registration for LEED certification, low E glass, low-VOC paint, and locally manufactured building materials comprised of recycled components.
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