Why Miami South Beach?
1) Attractive tourist and resident destination plus close to Brickell & Aventura
2) Growing demand for rental product and diminishing supply
From 2000 -2005 over 40% of rental apartment were taken out of the supply and converted to condominium, this trend continues
Tourist and Miami - Dade workers alike demand Miami South Beach rental apartment for their location and quality of life
3) No more land available for new building in South Beach
4) South Beach is an Island that can not expand (Manhattan effect)
Why condo conversion as opposed to new construction?
5) No risk of the building not being built
6) No speculators who bring prices down before developer's closing
7) Lock in a good interest rate before the rates increase
8) Take advantage of a current active favorable rental market
9) You can enjoy the property before the resale
10) You have the choice to sell property sooner when the market is right
Why the Flamingo South Beach?
11) Resale Value
Unique and very desirable waterfront parcel
Limited inventory for property at the entry price of luxury market
Flamingo, as offered today, is the most affordable 10% of all listed waterfront property in South Beach
Average asking prices in South Beach waterfront Condominiums
South Beach Flamingo
One Bedrooms $576 $515
Two Bedrooms $715 $547
Three Bedrooms $1,068 $520
Refuge property vs. high end product currently in crisis (People always need a place to live and the most affordable properties always resell very well)
$30M renovation will bring an additional $100 per SF value regardless of market conditions.
12) Rental-ability values:
Location 2 blocks from Lincoln Road on the bay - No car necessary
Amenities: Parking, resort size swimming and lap pools, marina, 14,000 square foot David Barton gym, etc
Highest market rental at approximately $3 per square foot, this allows investors to break even or get very close to it where in a comparable building will be impossible
Ability to rent condos for short term in order to maximize income potential.