With a plethora of luxury developments and a strong focus on culture and leisure, the Sunshine State is hotter than ever
MIAMI/FORT LAUDERDALE/THE KEYS
Individuals who want to experience the good life away from the hustle and bustle-and cold-of northern cities have been known to get in their cars and head south, not stopping until they see orange groves, coconut-strewn beaches and a sign that reads, "Welcome to Florida, the Sunshine State."
Thanks to the influx of retired (and semi-retired) individuals seeking their place in the sun, Florida has become one of the fastest-growing and sought-after real estate markets in the nation. The waterfront communities, whether on the Atlantic or the Gulf of Mexico, are being transformed from sleepy, quaint little towns to megaluxury resorts with some of the most valuable real estate in the world.
A few places in particular-the Florida Keys, Miami, Fort Lauderdale, and Palm Beach-have been experiencing building booms, especially along their coveted waterfronts. While these markets are very different in terms of the real estate products they offer, all have a common denominator: the height of luxury. Whether an urban condominium or a sprawling oceanfront estate, the units coming online are offering never-before-seen amenities and redefining the concept of gracious living.
In the following section, we visit each of these communities and examine the trends, activities and real estate opportunities that are reshaping Florida's residential landscape.
MIAMI NICE
Miami grows into a sophisticated destination for jetsetters and trendsetters
by Peter Lioubin
It wasn't so long ago that the average residents of Miami were retirees who were more interested in bingo than a vibrant nightlife. Since the revitalization of South Beach, the demographics have been steadily skewing younger-and more affluent. Today, Miami is a white-hot destination for young jetsetters with an international sense of style, an appetite for luxury and lots of disposable income.
These sophisticated twenty-, thirty- and forty-somethings, who hail mostly from South America and Europe, are flocking to Miami in droves. And they are demanding the best of everything-culture, dining, resorts, nightlife, services, shopping and housing. That demand has changed the way high-end developers are building properties.
"In the 1980s, we used to put card rooms in our luxury condominiums," says Joyce Bronson, an executive vice president with The Related Group of Florida, developers of such hyped condo towers as Icon, Apogee, Viceroy and St. Regis Bal Harbour. "Now people are interested in workouts and spa treatments. It's a more active and youthful clientele."
The influx of young buyers is changing the Miami landscape. Downtown, the skyline is dotted with cranes churning out ever-higher, more luxurious condominium towers whose list of amenities reads like that of a five-star resort. Among the most talked-about projects is the Related Group's Icon Brickell, with interior concepts by Philippe Starck. Icon will be located on a 10-acre parcel on Biscayne Bay. The complex will also include the Viceroy Hotel, which will be designed by Kelly Wearstler of Los Angeles-based design firm Kwid.
On the city's north end, the new Canyon Ranch Living-a condominium project offering the wellness lifestyle of the famous Canyon Ranch spa-is being built at the site of the Carillon, an old MiMo (Miami Modern) hotel. The project will include a 150-room hotel and a 25-story, 143-unit condo tower with a 70,000-square-foot spa and fitness facility. A second condo tower is planned during phase two.
Further north, in Bal Harbour, all eyes are on the St. Regis Bal Harbour Hotel and Residences, touted as "the highest-class hotel in South Florida." The $1 billion ultraluxury project, located on a beachfront parcel across from the world-famous Bal Harbour Shops, will include 511 condo-hotel rooms and residential units. Prices were not determined at press time, but are rumored to be in the $1,400-per-square-foot range.
Perhaps the most exciting project, or at least the one raising the most eyebrows, is Island Gardens at Watson Island, an island on Biscayne Bay between Miami and South Beach. The mixed-use development, which is scheduled to break ground this spring and be completed by 2010, will encompass a 350-room Starwood Westin hotel, and one of the first Shangri-La hotels in North America. Shangri-La, an Asian brand, will also offer fractional-ownership residences ranging from 1,800 to 3,500 square feet. The complex will also include 221,000 square feet of retail and dining space. The strictly upscale vendors have been hand-picked from around the world to form an interesting mix of offerings. The centerpiece, however, is a megayacht marina.
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"When planning Island Gardens, we envisioned Marbella, Monaco, Portofino," says Mehmet Bayraktar, chairman of Flagstone Property Group. "These places became famous because megayachts make regular visits."
Bayraktar believes that people with megayachts-or megayacht envy-will flock to Island Gardens, making it the happening place for Miami's affluent population and moneyed visitors. "This project will take Miami to the next level," he says. "Miami is already known globally for the jet set. This project will put more emphasis on that. We are replicating the level of luxury the typical megayacht owner, or charterer paying $100,000 a week, is accustomed to."
The cultural tapestry is also changing. The Miami Performing Arts Center (Carnival Center), which opened in November 2006, is attracting major performers from the Cleveland Orchestra to Willie Nelson. The American Airlines Arena is the site of the MTV Video Music Awards and concerts by A-list artists. And the new Museum Park, which will house a new science museum and museum of modern art, is being built at Bicentennial Park on Biscayne Bay. Miami is also the gateway to Latin America and Europe, only increasing its international flavor.
"Miami is the most international city in the United States," says Bill Talbert, president/CEO of the Greater Miami Convention & Visitors Bureau. "People feel the excitement because of that diversity."
Add to that the nighttime excitement of South Beach, a booming modeling and film industry, and elbow-rubbing with locals like Diddy, Shaq and J. Lo, and it's easy to see why Miami has become such a hotspot, particularly in the areas around the water.
Water, however, is a finite commodity. Most waterfront parcels have been snapped up for new development. "Most waterfront sites are either being developed or regulated," says Related Group's Bronson. "It may be a diminishing commodity, which will add to the value of what we are marketing today."
PREFERRED PORTS OF CALL
From Fort Lauderdale to Palm Beach, the focus is on luxury oceanfront and downtown development
by Peter Lioubin
Fort Lauderdale has a far-reaching reputation as a boater's paradise. Deep-water access, 300 miles of navigable waterways and facilities geared toward supersized yachts attract the crème de la crème of the yachting world.
The numbers speak for themselves. More than 47,000 yachts are registered in Fort Lauderdale. The city is also home to the world's largest and best known boating event, the Fort Lauderdale International Boat Show, which brings hundreds of thousands of enthusiasts and spectators to these shores.
With statistics like that, it's no wonder the luxury real estate market is booming. Most of the building activity is taking place on the waterfront-both ocean and river-and the downtown area. Exclusive towers like Trump Las Olas Beach Resort, on Fort Lauderdale Beach, promise cutting-edge architecture and five-star living. Trump Las Olas offers all the usual luxury-condominium features-marble floors, floor-to-ceiling windows, European kitchens-and services that are more reminiscent of a resort. For example, white-gloved butler service-limousine service, nightly turndown and room service-is available to owners. Fractional-ownership opportunities and a fully managed rental program make the property even more attractive to multiple-home buyers. Residences start at $560,000 for a studio and go to $2.7 million.
The W Hotel and Residences on Fort Lauderdale Beach, projected to open this year, will consist of two 23-story towers with all the privileges of a private club and world-class amenities. While most of the condos are sold, the few remaining units are priced north of $1 million. Less pricey but equally attractive in terms of location is the mid-rise Sapphire, which promises beachfront living, large units and expansive terraces for as little as the mid-$500,000s for a two-bedroom unit or the high $600,000s for a three-bedroom.
Fort Lauderdale's luxury-housing boom continues to the north. WCI Communities is building its OceanSide towers on Pompano Beach, whose oceanfront had been under-utilized until recently. Other luxury developments on Pompano, such as Luna Ocean Residences and Riverside Grande, have sold out, underscoring the demand for high-end residential product here.
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Further north, in the Palm Beach area, development is cropping up around the revitalized downtown area and on neglected oceanfront areas like Singer Island. Downtown, the skyline is changing daily as new condo towers, such as Two City Plaza and The Whitney, come out of the ground. But the biggest story by far is Singer Island. A barrier island north of Palm Beach, Singer Island had lay dormant in terms of new development. In the past few years, however, megaluxury condominiums are dominating the landscape.
Dan Catalfumo, president of Catalfumo Construction & Development, was one of the first developers to get into the act. Catalfumo is building 2700 North Ocean on eight oceanfront acres. The project, he says, will be the only one with unobstructed views of the water and island of Palm Beach. "No one can build on the south side of us and block the view," he says. "It's the only southeast exposure that is uninterrupted." The units are priced up to $6 million and are 60 percent sold.
His isn't the only luxury development. Taylor Woodrow, another big developer, is planning Mirasol Beach Residences, an oceanfront tower with 58 spacious condos with pre-construction prices ranging from $1.5 million to $5 million. Ownership comes with a free membership to the nearby Mirasol Country Club, which offers a host of privileges, including 36 holes of championship golf, a sports and fitness center and a full-service spa.
A bit further along the beachfront, WCI is developing its Resort at Singer Island in partnership with Starwood Luxury Collection. The 20-story tower will include residences and a hotel-the first new hotel to be built in Singer Island in almost 20 years. Prices range from the $400,000s to more than $3 million.
Amrit Resort & Residences, another oceanfront tower, is integrating a wellness lifestyle with a luxury residential setting. An Ayurvedic wellness center will offer owners spa treatments, yoga, tai chi and other services inspired by ancient disciplines. In addition, every residence will include a high-tech home theater system and consoles for communicating with the resort's staff. Prices range from about $900,000 to $1.5 million.
The reason for the resurgence in Singer Island's popularity is twofold. First, it is one of few beaches that keeps growing rather than shrinking, due to its location just north of the Palm Beach Inlet and favorable currents that dump more sand onto the beach. The charmed location gives owners the ability to enjoy beachfront living and deep-water activities while enjoying the relaxed pace of an island lifestyle.
Another reason Singer Island is so hot is the development boom in the north end of Palm Beach County. Palm Beach Gardens has grown into a bona fide destination, with shopping that rivals that of Worth Avenue and a popular new mixed-use project called Downtown at the Gardens. In the coming years, the biotechnology giant Scripps will be relocating to the area, bringing even more growth.
But in Singer Island, the growth that is taking place now may well be the last opportunity to buy a slice of subtropical paradise. "If you don't buy now, it will be gone forever," says Catalfumo. "After this wave, there is no more new development."
THE KEYS TO HAPPINESS
A new wave of luxury development is sweeping over the Florida Keys
by Daphne Lioubin
Mention the Florida Keys, and the picture in most people's minds is one of tranquil waters, a bonanza of fishing and lobster diving, charming turn-of-the-century clapboard cottages, and a relaxed Margaritaville attitude a la Jimmy Buffett. The Keys, a chain of islands on the southern tip of Florida, have always been about casual living and quirky characters. Though the attitude remains, the residential landscape is changing faster than an expert angler can reel in a tarpon.
"In my earlier years, the Keys were casual and funky and fun, with incredible water amenities," says Victor Bubnow, owner of Lime Tree Bay Resort and Residences and a longtime Keys resident. "It still has all that, but it's going very much upscale. Development has taken off toward a luxury market."
Bubnow has been operating Lime Tree since 1990 and is constantly upgrading the property. Still, he could not keep up with the demand. "We spent millions of dollars renovating over the past 10 years, but it became clear that travelers' expectations were growing faster than we could renovate," he says. "We decided to tear down the existing property and build a hotel and residential property with top hospitality and modern conveniences."
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What Bubnow has done-taken an existing property and rebuilt it from the ground up-is becoming a trend in the Keys. Because there is very little buildable land and the county has strict zoning and permitting laws, which prohibit large-scale development, the movement is toward renovating or rebuilding existing properties. "People are recycling the development rights that are on the property, and reusing the site," says Pritam Singh, owner of The Singh Company, the developer of high-end properties such as Tranquility Bay in Marathon Key and Parrot Key in Key West.
Bubnow echoes that sentiment. "Many of the properties have been recently purchased with the goal of redoing them," he notes. "It's kind of like what happened in South Beach. It had gone into disrepair and was modest for many years, but once people recognized it was a beautiful location in a world-recognized city, there was a lot of investment and a rebirth. There is a rebirth in the Keys."
Development in the Keys, whose population is a mere 80,000, is on a much smaller scale than in the rest of the state. Because there is no opportunity for sprawling communities or high-rises, the few units that are coming online are more exclusive-and expensive. The Peebles Corporation, known for such high-end developments as Miami's Residences at the Bath Club, plans to build 72 waterfront villas-Manoir Resort Villas-in Marathon and priced from $1.7 million. Singh's Coral Lagoon Resort, also in Marathon, is offering 25 waterfront townhomes and single-family residences in the $1.1 million to $1.5 million price range. His earlier properties, Tranquility Bay and Indigo Reef, both sold out, underscoring the fact that the demand for luxury real estate is there.
The breed of buyer has changed, too. "Clients are demanding full management of their properties now," says Singh. "They want everything to be taken care of. That's one of the strengths we bring to them."
Buyers also want luxury. Singh's properties are communities, with a full gamut of services and upscale homes that are "reflective of the setting. We use 19th-century architectural styles with high ceilings and large porches, pitched roofs and shutters. It's what was traditionally built in the Keys," only dramatically higher in quality, he notes.
At Lime Tree, the focus is on tropical-modern architecture, a style rarely seen in the Keys. Forty-two of the 45 units have "commanding water views," Bubnow says, and access to a clubhouse, private beach, fitness center, two pools and golf privileges. "The intent is to offer everything expected by people who are used to nice things," he says. Prices at Lime Tree range from $789,000 to $2 million.
Another attractive aspect is the owners' ability to rent out homes when they are not in residence. Both The Singh Company and Lime Tree offer buyers the opportunity to place their properties into a rental program.
Of course, the main attraction is the location itself. "This is barefoot luxury," says Singh. "We don't have the shopping and the nightlife, but people come here looking for a slower pace." He believes the Keys' relaxed lifestyle and water quality is "as good as it gets. Long term, the Keys will be the Riviera of the eastern United States."
