New Yorkers have long had a love affair with Miami. Recently, however, high-net-worth individuals and families from New York and other high-tax states like New Jersey, California, Illinois and Connecticut are committing to Miami for the long haul.

Why? Tax Migration. Recent federal tax law changes have effectively made owning a primary home in New York much more expensive almost overnight. The most damaging tax change is the $10,000 cap on State and Local Tax (SALT) deductibility. Now under the new law, according to Crain’s, a New Yorker who makes $10 million a year and owns a $10 million home would save almost $1.2 million in taxes by relocating to Florida.

That’s a huge tax savings. One that can not be ignored and one that is destined to accelerate the migration of Wall Street executives and other high earners from New York (and other high tax states) to Florida. According to the U.S. Census Bureau, Florida received more movers than any other state last year, with New York having the most outflows to Florida at 63,772 people.

What does all of this mean for Miami? Growth! In its economy and in its home prices, especially at the high end.

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For this newsletter, below we are presenting two new development projects (Monad Terrace and Natiivo) and two case studies (Four Seasons at The Surf Club condo hotel and 900 Biscayne Blvd.).

NEW PROJECT:
MONAD TERRACE – SOUTH BEACH

Designed by Pritzker Prize winning French architect Jean Nouvel and developed by New York developer the JDS Development Group, Monad Terrace will have 59 individually designed waterfront residences on Biscayne Bay in South Beach at 13th Street, a few blocks south of Lincoln Road.

Monad Terrace is designed as a pair of buildings wrapped around an infinity-edge lagoon and vertical gardens of native bougainvillea and passion vines. Units at Monad Terrace will be delivered completely finished with luxurious teak and marble floors, museum quality walls, a Jean Nouvel exclusively designed kitchen and unique honeycombed screens that diffuse sunlight and provide residents with privacy while maintaining water views.

Our agent Christian Kawas just secured an amazing deal for our buyer at just under $1,000 per square foot at Monad Terrace! Christian notes that “…there are no developer finished residences in Miami that have the same level of sophisticated finishes that are being delivered at Monad. And, some of these units are trading close to $1,000 per square foot, which is an excellent value!”

Perhaps that is because NYC developer, JDS Development Group, has an excellent track record in delivering some of the best projects around. Take the record breaking Walker Tower conversion of the historic Verizon building in Chelsea. Or, the supertall 111 West 57th Street on Billionaire’s Row, which will soon be the second tallest residential building in New York and the skinniest skyscraper in the world! They elevated NYC new development with the stunning Roman and Williams finishes at The Fitzroy along the High Line. Even their rental project, the American Copper Buildings along the East River, was finished beautifully!

While all of these projects couldn’t be more different from each other, the common denominator is that JDS always delivers the most gorgeous projects around. And, they are the reason why we know that Monad Terrace is going to be a big hit!

CASE STUDY:
FOUR SEASONS HOTEL AT THE SURF CLUB CONDO HOTEL

Want to get into the most spectacular 5-star hotel property in Miami, but still want to make a decent return from that investment, all while using the property yourself any time you want? Then take a look at this case study regarding unit N-811 that our agent Wendy Mendoza has for sale at the Four Seasons at The Surf Club in Surfside, Miami Beach.

An oceanfront 2-bedroom / 2.5 bath turnkey residential suite with 2,031 sq. ft., unit N-811 is listed at $6,250,000. The suite sits in the condo hotel portion of the project, allowing owners to put the property into the hotel program if so desired. It is the only residential suite with an assigned parking spot and the comps support the list price.

Over the last 12 months, the owner earned net $190K (after taxes and common charges), a 3% yield on $6.25 million. All while the apartment was occupied only 46% of the time. A 3% yield at less than a 50% occupancy rate is impossible to earn in a regular condo unit. This could be a great apartment for someone who can fly down to Miami whenever the apartment is free and enjoy all the things the hotel has to offer.

And, this isn’t just any hotel. It’s The Four Seasons at The Surf Club, which has the longest ocean frontage in Miami, 5-star everything, including The Surf Club Restaurant by Thomas Keller and the lovely Le Sirenuse Restaurant from Positano, where the essence of the Amalfi Coast is brought to Miami Beach!

The Four Seasons at The SurfClub opened in 2017 and has been a huge success. South Beach is only 15 minutes away, Bal Harbour Shops is 5 minutes away. Or, just never leave the The Surf Club, now that’s something worth considering…

NEW PROJECT:
NATIIVO POWERED BY AIRBNB – DOWNTOWN MIAMI

Natiivo is a new 50-story pre-construction project that is coming to the Downtown Miami area. Natiivo will be the first purposely designed, built and licensed Airbnb building in the heart of Downtown Miami. Offering fully finished and furnished turnkey residences, the property will feature studios, 1, 2, and 3 bedroom residences, and prices ranging from the mid $300,000 to the mid $900,000. This full amenity building will have 24-hour concierge, spa-inspired fitness center and pool, and an owners closet in every residence (a must for Airbnb’ers).

Some of the main reasons why we think this is a slam dunk:

• This is the perfect solution for investors that want to use their investment when they visiting Miami.
• Full time residents are encouraged to rent out their apartments when they are out of town and can’t get in trouble for doing so.
• Most Airbnb rentals in Miami are illegal, as condo buildings are not zoned for nightly or weekly rental. Authorities are cracking down and issuing fines of thousands of dollars.
• Natiivo is specifically zoned for nightly/weekly/monthly rentals.
• Prime Downtown location near the Miami Worldcenter.
• Pricing is great.

We can help you manage it! Hands-free and worry-free ownership.

If you are interested in this project, now would be the time to reserve a unit, as pricing is in its Friends and Family stage. As they sell some of the units, the developer will increase pricing. Every day we are receiving requests for “Airbnb legal properties”, however, there really are very few in the Miami market. With the lack of inventory of this type of unit in the Miami market, we think this project will sell very well to both locals, New Yorkers, and foreigners. While Natiivo won’t be for everyone, we believe that there is a high demand for this type of housing, especially in Miami.

CASE STUDY:
900 BISCAYNE

Downtown Miami is becoming more and more relevant as a place to purchase a primary home or investment property. Last November our client purchased a 3 bedroom / 3.5 bath condo at 900 Biscayne Blvd. on a high floor. This 01 line has protected 270 Degree views of Miami Beach, Biscayne Bay, and Downtown Miami. This was a very smart purchase for a number of reasons:

• Buyer paid only $835,000, or $491 psf, which is “below replacement cost”. Meaning that if you purchased prime land in Miami now and build a new condo building, you couldn’t build it for under $500 psf and make a profit – especially one with protected views of Biscayne Bay.
• Miami Worldcenter, which lies adjacent and directly West of the subject property, will begin opening in stages by the end of this year, vastly improving the area. Paramount Miami Worldcenter is selling units for over $800 psf and the views there are not protected like those of 900 Biscayne.
• The next door neighbor to 900 Biscayne is 1000 Museum by Zaha Hadid. This project, which just opened its doors for occupancy, has been selling for over $1,400 psf. Although it is not a comparable property, much higher prices at 1000 Museum and Paramount Miami Worldcenter are good indicators that prices will be going up in this neighborhood in due course.
• The buyer purchased the unit in off-season, which likely contributed to us obtaining a price at $200,000 below comparable sales. When the market is slow, savvy investors strike the best deals.
• The unit makes sense as an investment property. After expenses the buyer will net out around 3% on the purchase price per year. That is better than returns one would get from the bank and, as the area improves, we expect both the yield and value to substantially increase.

None of these projects interest you? Well, the good thing about Miami is there is something for everyone, no matter what your budget. We suggest starting with our showcase of Miami luxury properties, which focuses on the most recent new development projects on the market and some tried and true Miami residences.

If you would like for us to personally curate a selection of properties, just fill out our Miami Tailored Search form and provide us with some of your needs and wants. With a better understanding of your requirements (in terms of price, location and size), we can quickly find the right property for you.

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About Manhattan Miami Real Estate

A full-service boutique brokerage, Manhattan Miami Real Estate LLC serves buyers and sellers in New York City and South Florida. Meet with one of our Miami partners in NYC or Miami or both. Meet up with our Miami partner Christian Kawas in NYC on August 14th or September 19th. You can call or email Christian at: 305-608-6681 or christian@manhattanmiami.com.

Over the last 20 years, our agents at Manhattan Miami Real Estate LLC have seen first hand Miami’s ups and downs and its transition from sleepy retirement community to a high-growth economy with 24/7 lifestyle. We have helped buyers get into the hottest projects at the right time as well as helping sellers get out of their investments at crucial times in the real estate cycle. Whether you are interested in a single-family home, condo or an investment property, we have the experience and the right track record to help you.

Interested in NYC real estate instead? We’ve got you covered, just give us a shout at 646-376-8752 or email aguerriero@manhattanmiami.com. We’re here to help! ​​
Manhattan Miami Real Estate
157 Columbus Avenue, 4th Floor
New York, NY 10023
www.manhattanmiami.com

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