Miami Beach: the new NYC?August, 2014
Is South Beach becoming the new NYC?
As more New York-based development organizations and a multi-market luxury brokers head south, South Beach emerges as New Yorkers’ favorite settling alternative.
Since 1930s, New Yorkers have elected the Magic City as their to-go place for beaches, sunshine and nightlife. But in the past two years, a new wave of New York buyers and developers have hit Miami with the goal of actually settling here: or at least sticking around a little longer.
“For New Yorkers, it’s all about convenience. Buying in Miami Beach means not having to drive, easy access to everything and plenty of amenities. That’s why, people when come here, their natural attention is to the Beach”, says Michael Tillman, director of Florida development and acquisitions at LeFrak, a privately held group of real estate companies. “Most heads of the companies know the Beach. It’s a proven entity, and even in the cyclicality, it has remained relatively stable and is the first to grow again. There is more and more interest from New York developers who want to start platforms down here”.
It’s an important indication when developers such as LeFrak start showing up, because it signals the presence of those infrastructures that are expected by developers to take Miami Beach to the next level.
Typical buyers coming down are targeting mainly properties on the beach. The most popular names are the Continuum, W South Beach, Il Villaggio and Paradiso at Gansevoort, but also medium sized condos like Capri, Cosmopolitan and Courts at South Beach, more reminiscent of South Beach historic Art Deco past.
New Yorkers have always been a huge presence, even before the rest of the World realized the potential of this city, but with taxes and real estate prices rising in the Empire State, and Florida having no Income tax, they are now seeing real opportunities. Not many people in other States would agree that $2,500 a square foot is a real deal but, compared to prices in Manhattan, It definitely looks like bargain, and one right on the sand.
If you add to the vibrancy of South Beach and its pedestrian nature, the fact that the biggest chefs in New York have started popping up everywhere, that Broadway shows have increased their presence down South, that the cultural scene is no longer just Art Basel but also the Arscht Centre, the New Opera, the Perez Museum, etc, then you have a city New Yorkers can really start to love.
Here lies the big difference with Europeans and South Americans. It’s not necessarily capital that’s looking to get into the safety of the shore of the United States. This is a second house, a third, fifth, sixth.
Looks like the long-lasting love story between NYC and Miami Beach has entered an exciting whole new chapter.