On Saturday night, South Beach parties with a high-octane intensity rivaling New Orleans’ French Quarter.
Music drifts in the balmy air as crowds of young people surge along Ocean Drive, which is packed with bars, clubs and sidewalk cafes. The people-watching is as much of an attraction as the food.
By day, South Beach is just as colorful, but in a different way.
Basking in the semi-tropical sun is the largest concentration of Art Deco buildings in the nation, painted in a palette of pastels.
These rehabbed relics from the 1930s are at the center of one of Miami’s hottest residential neighborhoods. A magnet for celebrities, the fashion and film industries and just plain vacationers, South Beach occupies less than 2 square miles at the tip of Miami Beach.
Suddenly, property prices are zooming.
“Real estate in the Art Deco District costs a fortune,” said high-rise developer Howard Shapiro.
How times have changed.
“In the mid-’80s, people were afraid to drive in some parts of South Beach, but now it is one of the most expensive and desirable places to live,” he added.
The town made famous by “Miami Vice” may be turning into “Miami Nice.”
Shapiro believes that the historic preservation of the Art Deco hotels in South Beach has been a catalyst for new developments. Based in Hollywood, Fla., he also is developer in residence at the University of Miami School of Law.
South Florida’s new lease on life, powered by a Latin beat and the good economy, has produced a fresh wave of condo-mania. But this time the accent is primarily on luxury waterfront living.
Cranes are rising over South Beach, Brickell Avenue in downtown Miami, out on Key Biscayne and elsewhere.
Chicago residential developer Daniel McLean, who is building condos on Fisher Island, just south of South Beach, explains Miami’s new appeal this way: “A younger group of buyers is coming to Miami and Fisher Island. All the exciting urban things that are luring buyers to downtown Chicago–the restaurants, the nightlife–also are attracting people to Miami, which has experienced a resurgence in the last five years.”
McLean, president of MCL Cos., also noted another trend: Midwesterners, who used to flock mainly to Florida’s West Coast resorts, now also are checking out the East Coast. Oprah Winfrey is one of the buyers at Fisher Island, where prices are definitely in the celebrity class–$1 million to $4.5 million. Planned for construction by Fisher Island Holdings LLC are 315 units in 6- to 8-story towers and golf villas.
“More Chicagoans are buying in Miami now,” said Lance Chody, who is purchasing a condo at the Ocean Club on Key Biscayne.
Chody, a Chicago area real estate developer, said that South Florida was not as well thought of 8 to 10 years ago: “Many people wondered about the South American and Cuban influences. But we find the multi-culturalism refreshing.”
An avid tennis player, he originally visited Key Biscayne to attend a tennis tournament. He and his wife, Megan, and their two daughters will use their unit as a vacation home. Chody believes the South Florida condo boom will continue, even if there is a slump in the economy, because of the many buyers from South America and Europe.
This frequently heard jest describes Miami’s foreign flavor: “It’s a great city–and very close to the U.S.”
While prices for vacation homes in South Florida have risen, they are still considered to be bargains by buyers from Latin America, the Caribbean and Europe.
Buyers from abroad account for about half of all new luxury residences sold in Miami-Dade County. The appeal to foreigners can be attributed to Miami’s burgeoning role as an international business center, as well as its world-class resorts.
Instead of aging, Miami seems to have discovered the fountain of youth. “Now people come here to live, not to die,” said Shapiro.
The town that used to be part of what was called “God’s waiting room” now has a median age of 45, according to Shapiro.
That observation is borne out by the youth culture on South Beach, where even the Art Deco buildings along Ocean Drive, the center of activity, continue to undergo redevelopment.
A new high-profile project at South Beach is the Murano at Portofino, a 38-story high-rise overlooking a yacht harbor and the Intercoastal Waterway , which is plied by cruise ships entering and leaving the Port of Miami.
Being developed by the Related Group of Florida, it will offer 189 waterfront condos ranging from $500,000 to $2 million. The two- and three-bedroom units will have 1,791 to 3,382 square feet of living area. Construction at the 4.5-acre site is scheduled to begin this summer with completion in two years.
Amenities will include a saltwater pool, fitness center, lighted tennis courts, 24-hour security, concierge and valet services.
Prices of new residences in South Florida have been driven up by increased land costs, especially near the water, as well as by new hurricane codes, said Shapiro.
“All windows are required to have very expensive glazed glass, which is almost bulletproof,” he said.
McLean estimated that the lowest prices for luxury condos in Miami are comparable to the highest prices in Chicago.
Another new condo tower is under construction on Brickell Avenue in downtown Miami. Overlooking Biscayne Bay, The Mark on Brickell will have 359 units. The 36-story tower is being built on a 1.8-acre site with 270 feet of bay frontage.
First occupancies are scheduled for March 2001. The one- to three-bedroom units range in size from 885 to 1,708 square feet and in price from $167,900 to $475,500.
Being developed by the Yacht Club at Brickell Bay Associates Ltd., it will have a pool on the fifth floor, lighted tennis court, racquetball court, fitness center, clubhouse, business center, concierge and valet parking.
Out on Key Biscayne, a unique hotel/condo complex is under construction. The Ritz-Carlton Resort at Grand Bay is planned for 300 hotel rooms, a spa and 188 condo units.
All of the condos have been sold. Prices ranged from the $100,000s to the high $200,000s for studios, from the $300,000s to mid $500,000s for one bedroom and more than $700,000 for three bedrooms.
Manny Corral of the Ritz-Carlton said the prestige of the hotel’s brand name helped sell the condos.
In addition, two styles of single-family homes (over 80 percent sold) will be built. The 49 homes are priced between $950,000 and $1.9 million. The 44-acre site originally was occupied by a hotel that was damaged by Hurricane Andrew.
Amenities include 1,200 feet of beach, two heated swimming pools, croquet lawn, 12 lighted tennis courts, on-site grocery and youth activities playground.
Completion of the condos is expected in one year.
Also on Key Biscayne is the Ocean Club, the best-selling condo project in Miami-Dade County. With 1,000 feet of Atlantic Ocean beach, the 52-acre property is planned for 11 residential buildings of 4 to 18 stories with a total of 802 units.
The last four buildings are slated to open next year. One of them, Lake Villa One, offers 38 units priced from $525,000 to $675,000. Units in the mid-rise Lake Tower are $375,000 to $795,000.
John Hinson, president of Ocean Club Development Co., said 75 percent of the project has been sold.
Amenities of the property include a 20,000-square-foot beach club, nine swimming pools, eight lighted tennis courts, fitness center and a five-acre lake.
Owners at the Ocean Club who want the ultimate status symbol may consider buying one of the beach cabanas. Priced at $285,000, the 300-square-foot cabanas provide a comfortable place for relaxing at the beach.
The Miami-Chicago connection also includes a new hotel here. Constructa U.S., a Miami-based firm, is involved in the development of the 415-room Sofitel hotel in Chicago’s Gold Coast. The 30-story structure is expected to open in early 2002.
