The Future Role of Virtual Reality in Real Estate

When most people think of virtual reality, they imagine a cool gadget synonymous with video games and sci-fi movies. But as virtual reality technology improves and develops, more industries are finding creative ways to incorporate it into their business. Traditionally, real estate has had a slow pace of tech adoption, but the potential of VR is quickly being realized.

Suffolk Construction, the innovative building contractor, has opened a Smart Lab in its downtown Miami office to “identify, test and scale new technologies intended to transform the construction experience and revolutionize the industry.” Just last year, they opened similar labs in Boston, New York City, and San Francisco, which are physical manifestations of Suffolk’s ‘build smart’ approach that enables its teams to leverage new tools and technologies in order to create more value for their clients. 

“The momentum from our ‘build smart’ approach is unmistakable as we redefine what it means to be a builder and, more importantly, provide significant value and a positive project experience for clients, architects and trade partners,” said Chris Mayer, executive vice president and chief innovation officer at Suffolk. 

One of these interactive technologies is a virtual reality CAVE (Computer Aided Virtual Environment) room, which immerses the user in a realistic 3D model of renderings using an HTC Vive headset. The concept allows teams to identify and address logistical challenges before construction begins by ‘stepping inside’ the building. “The basic concept behind the Smart Lab is that we can build it in pixels before we build it in brick and mortar,” said Joe Fernandez, vice president of operations for Suffolk Construction. “We take real-time decisions and put them in a 3D model so the client can immediately see the finished result. 

Only six percent of construction companies currently implement VR technology, according to a survey by Software Connect, but its benefits have already been recognized. Fortune International Realty Group collaborated with Suffolk in building Jade Signature luxury condo tower in Sunny Isles Beach, whose futuristic structure was designed by prize-winning Swiss architects Herzog & de Meuron. CEO and president of Fortune, Edgardo Defortuna, said “We knew Jade Signature would be an extraordinary undertaking and that a collaboration with Suffolk would be a cornerstone of the project’s development.” During preconstruction in 2016, his sales team shipped virtual reality goggles to prospective Jade buyers. “The result has exceeded every expectation.” 

For virtual reality to take off, it needs competitive pricing and increased computing power in order to run high-end VR simulations. These key variables are present, but the availability of headsets and computers makes distribution of the experience a challenge. As early enthusiasts give way to wider adoption and awareness, VR may become a key technology when it comes to the designing, building, buying and selling of real estate.

Article by Katya Demina

Major Executive Shake Up At Compass As Both CTO & CFO Leave The Tech-Driven Brokerage Firm

Via PROFILEnyc - Two key executives have announced their departure from Compass in a statement released last Friday. The longtime chief technology office, Liming Zhao, and the chief financial officer, Craig Anderson, who had only been with the $2 billion startup for seven months, are both leaving. 

Anderson was hired last August and was formerly the COO and CFO of the cycling chain Flywheel. His hire replaced David Snider, whom the board chose to out after the company began scaling rapidly. Snider administered finance and operations, but later focused on securing venture funds for the firm before he left.   

Compass stated that the decision to part with Anderson was “mutually decided.” “Craig is a really talented person. I know he will go on to do great things,” CEO Robert Reffkin said. After securing an additional $550 million in funding from SoftBank and Fidelity last year, Compass is looking for a new executive whose skill set fits the company’s size. 

The former CTO, Zhao, who joined Compass in 2013, split because he decided to start a company of his own. CEO Reffkin said, “As a company of entrepreneurs… this is something we celebrate at Compass.”

Article by Katya Demina | Photos via Compass

Pordes Residential Tabbed As The Exclusive Onsite Sales & Marketing Firm At 101 Bay Harbor

Pordes Residential has been name the exclusive onsite sales and marketing firm for the new 101 Bay Harbor Islands townhouse development. Developed by The Puder Group, the recently completed boutique property features 12 luxury townhomes located in Bay Harbor Islands. Pordes Residential brings its extensive experience and wide reaching broker network to sellout the remaining residences. Pricing at 101 Bay Harbor start in the mid $900,000s and range up to $1.89 million for a fully-furnished, turnkey townhome which are located at 101 Bay Harbor Terrace.

“Bay Harbor Islands is one of South Florida’s most prestigious locations, and this property truly brings something new and exciting to the neighborhood,” said Mark Pordes, CEO of Pordes Residential. “We are honored to have been selected by The Puder Group to complete sales.”

Residences at 101 Bay Harbor offer 4 bedrooms, 3.5 baths and rooftops for each townhome offering approximately 2,300 SF of interior living space. Residences offer open and spacious plans that include floor-to-ceiling windows and private terraces. Kitchens and bathrooms come equipped with Italian style cabinets, quartz countertops and state-of-the-art appliances. Each residence features a 2 car garage as well as a rooftop terrace with a barbeque, summer kitchen and private Jacuzzi. 

“We are excited to team up with Pordes Residential and are confident in the firm’s capabilities to sell the remaining inventory,” said Jodi Puder, developer of 101 Bay Harbor. “Pordes Residential’s experience working in the Bay Harbor Islands market and proven track record of reaching the appropriate buyer demographic made the firm a natural fit for 101 Bay Harbor.” 

“101 Bay Harbor checks all the right boxes for the most discerning buyer,” said Adam Kaufman, Vice President of Sales and Operations for Pordes Residential. “The quality and design of these residences coupled with the development’s excellent location make it truly a one of a kind. The neighborhood has an abundance of older single-family homes, so we are seeing people looking for something different and new in the Bay Harbor area and are attracted to this property and its unique amenities.” 

Christie’s International Real Estate to Collaborate with Premier Estate Properties in Palm Beach

Christie’s International Real Estate has announced that Premier Estate Properties, a Network Affiliate for more than a decade, is opening its sixth South Florida office on Worth Avenue in Palm Beach, Florida, to extend the reach of our venerable brand (January 2018). The new Premier Estate Properties Palm Beach Office will be represented by established Palm Beach Broker, Jim McCann, whose achievements include sales exceeding $100 million annually since 2007. Jim will be joined by his long-time associates, Maryellen Cantera and Kristina Parker.
 
Premier Estate Properties is a privately held boutique real estate brokerage firm specializing in the sale of properties in excess of $1 million and currently holds a portfolio of $1.2 billion in properties in such luxury markets as Manalapan, Gulf Stream, Delray Beach, Boca Raton, Hillsboro Beach, Fort Lauderdale, and Vero Beach, amongst other markets. Working in conjunction with Christie’s International Real Estate, Premier Estate Properties Palm Beach Office will kick-off their relationship  by co-sponsoring this month’s Palm Beach Modern + Contemporary (PBM+C) Art Fair. For 25 years, Premier Estate Properties, led by Brokers/Owners Carmen N. D’ Angelo Jr., Gerard P. Liguori and Joseph G. Liguori, has dominated the South Florida market with many sales exceeding $20 million. Premier Estate Properties is also noted for exceptional concierge service, utmost discretion, marketing acumen and negotiating expertise and has repeatedly proven itself an industry leader in its own market areas and within the global Christie’s International Real Estate network.  

Carmen N. D’Angelo Jr. views the natural synergy of this collaboration as a unique opportunity for island residents of Palm Beach: “The Christie’s brand, cross-marketed through its auction house and network of high-end real estate firms, delivers a level of global visibility unmatched in this market - attracting the most elite buyers worldwide.”

"I have been associated with Premier Estate Properties for over 20 years, the last 10 managing the network’s Southeast Region where their six brokerages have operated as our valued Affiliate," says Rick Moeser, Executive Director of Christie's International Real Estate, whose office is also located in Palm Beach. "These are proven experts in the marketing and sale of high-value properties, and also in fully leveraging the power of our luxury brand to introduce these finest homes to the world. Premier Estate Properties’ expansion into Palm Beach is a formidable asset for buyers and sellers in both Palm Beach and globally."

EWM's Riley Smith and Maria Loughlin Close Record Sale At Oceana Key Biscayne

Last week EWM Realty International’s Riley Smith and Maria Loughlin of The Riley Smith Group announced the record breaking sale of Oceana Key Biscayne NO. 1101S for $7,350,000, the most expensive condo residence sold on Key Biscayne since 2015 (November 17, 2017). The unit spans 4,080 SF spread over 4 bedrooms, 7 full bathrooms and 1 half-bath. The residence also features 4 2,000 SF of wraparound terraces featuring breathtaking vies of the Atlantic Ocean, Biscayne Bay, Key Biscayne and the Miami skyline. Oceana Key Biscayne is located at 360 Ocean Drive and full-service amenities include 500' of beachfront, restaurant, full-service spa, 2 pools, tennis courts, valet, concierge and a putting green. Riley Smith and Maria Loughlin represented the buyer, while the seller was represented by Monica Defortuna of Fortune International Realty.

“Luxury buyers are out there, waiting on the sidelines, and they appreciate what Miami -- and Key Biscayne, in particular -- have to offer,” said Loughlin. “There’s a great deal of pent-up demand in this market.  High-end buyers are looking for lucrative value as much as they are top-of-the-line features.”

SHOMA Group Celebrates Unveiling of The Sales Gallery at Eleven On Lenox With South Beach Soiree

Sales are officially underway at SHOMA Group's luxurious Eleven on Lenox in South Beach after the developer hosted a swanky South Beach-style Soiree to officially open the on-site sales gallery (November 2, 2017). SHOMA Group is one of South Florida’s most prolific real estate development firms with a nearly three-decade track record of successfully delivering developments. More than 200 of the Miami’s leading real estate brokers and VIPs joined Masoud Shojaee, President and Chairman of SHOMA Group, in commemorating the luxurious coastal retreat, comprised of 11 beach-inspired homes in the heart of South Beach.
 
Guests at the Eleven on Lenox sales gallery premiere enjoyed VIP treatment, which included an exotic, living wall step-and-repeat, champagne bottle service and tunes by resident South Beach DJ YSL. The event also provided a first look at the project’s refined finishes designed by five-time Architectural Digest’s Top 100 Interior Designers, Charles Allem and scale model created by internationally recognized firm, Zyscovich Architects. The developer announced that brokers will receive 50% commission immediately after the rescission period, which was followed by a champagne sparkler parade and confetti shower, which closed the event in true South Beach style.

Compass Raises $100 Million In New Round of Funding Amid Questions By Skeptics

Compass is certainly on a roll after locking in $100 million of additional financing via their new funding round, bringing their valuation to $1.8 billion having raised $325 million from investors to date (November 8, 2017). The latest round of funding was provided by Fidelity Investments, IVP and Welling Management. Since being founded in 2013, Compass has grown to over 2,000 agents in 10 different markets. They plan to add an additional 10 markets by 2020. Compass has a reputation of breaking into new markets quite aggressively, poaching top agents from top firms with huge salary and commission split agreements. While many top firms initially and key players including Douglas Elliman's Howard Lorber expected Compass to fold within years, they have continued to grow.  

Compass reported $180 million in revenue last year (2016) and expects to generate $350 million this year (2017). Revenue includes all income including what Compass would have to pay out to their agents. While typically a brokerage's valuation is based on off multiples of the brokerage's earnings, Compass holds that they are a tech firm, leading to even higher valuations. Real estate brokerage can be an extremely low margin business. For example, Douglas Elliman reported $190.4 million in revenue by the end of Q3 2017 year-over-year which only produces a profit of $4.2 million. That is down from $184.5 million reported at the end of Q3 2016 which produced $8.7 million in 2016. Reology, which owns Coldwell Banker, Century 21 and Sotheby's International, reports a revenue of $5.81 billion but as a publicly traded company, their entire valuation is merely twice that of Compass' with a total equity of $2.469 billion. 

Additionally many have wondered and continue to wonder, what technology does Compass have that no one else has? Compass has produced a new system to produce CMA's and comps as well as a highly-efficient, IDX style a website that allows you to search all public real estate listings across all brokerages and markets that Compass covers. Critics hold that both CMA's and Comps need actual human input and assessment to be accurate. Those in support of Compass claim that the technology is so great that you will not need agents because the internet will take care of everything. How can you run a home inspection of a 30 year old home without being on site then close out a final permit that was left open to make sure that deal closes? What attorneys will be used to hash out each deal? Part of the real estate sales experience is having a trusted broker helping a buyer or seller with what is probably one of the largest financial transactions of their entire life, it cannot easily just be "automized" with VC money. There is so much more that goes into real estate deals than those not in the industry possibly understand. Compass is definitely onto something when it comes to the home search and connection with an agent, but time remains to tell how automated anyone can make the actual buying and selling process. 

A statement by Rob Lehman, Compass' Chief Revenue Officer, to the tune of “every company that’s going to succeed in industries in the future is going to have to be a hybrid. We are both a tech company and a brokerage and we let the market ascribe the value,” essentially throws it out there that the company is not a true tech company and a traditional brokerage that claims their technology is worth more than other brokerages, hence the extreme valuations. While investments into technology do not seem to be making waves throughout the industry, Compass' investments into branding and agent poaching are quite visible.

Where Compass has gone, they have gone with success, including Miami, New York City, Los Angeles, San Francisco, Fort Lauderdale, Palm Beach, the Hamptons, Aspen, Boston, and Washington D.C. They have expanded into 10 different markets and recruited over 2,000 agents who all are backed by some of the industries' cleanest and best branding. In the markets they have expanded to, Compass has acquired some of the finest listings and top agents including Leonard Steinberg, Rick Teed and Butch Haze. For more and more millennials and younger real estate buyers and renters, Compass is becoming a powerhouse go-to name amongst brokerages and websites to browse real estate.  

Additionally, that would lead one to wonder, when will the investors require Compass to show a profit? Will they need to raise more money in the future, if so will they be able to justify an even larger valuation? Compass claims that it is backed by "patient capital," and the firm is expected to go IPO at one point, but how long will Compass test their patience before investors start asking to see a return? Will it even be possible? Bigger companies that are already successful in all the markets Compass is gunning for are valued at less than Compass. Everyone is focusing on will Compass fail, but maybe the question that should be asked, is did Compass fail or mislead their investors, or have they just perfected and modernized the hyper-competitive real estate brokerage industry? 

1 Hotel & Homes Appoints Douglas Elliman's Tracy Galya As New Residential Sales Director

1 Hotel & Homes South Beach, the trailblazing, eco-friendly, LEED-certified oceanfront property inspired by nature and crafted from sustainable materials, announced today (September 27, 2017) that Tracy Galya, a 1 Homes top-producer, has been promoted to Residential Sales Director. As the director of high-end sales for the Miami-based Bill and Bryan Team at Douglas Elliman in 2016, Galya had more than $100M in active listings andthe team was honored by Douglas Elliman as the brokerage’s No. 3 team in the State of Florida.
 
At 1 Hotel & Homes South Beach, Galya will oversee the sales of the final penthouse residences and lead a team of top real estate professionals. 

“We are delighted to welcome Tracy (Galya) as the new sales director of 1 Hotel & Homes South Beach,” said Camille Douglas, Senior Managing Director at LeFrak, the project’s developer. “She was previously our top-producer, and we are delighted to now have her in this well-earned, pivotal role. Tracy is well-equipped with unparalleled, in-depth knowledge of South Florida’s luxury market. Coupled with her relentless work ethic, her connections across the business and philanthropic communities, and resources within Douglas Elliman, her leadership will give our project yet another competitive edge.”
 
1 Hotel & Homes features 155 estate-size residences atop the 425-room luxury oceanfront resort that was the brainchild of Barry Sternlicht, Chairman of Starwood Capital Group and Richard LeFrak, Chairman of LeFrak. 1 Hotel & Homes is now nearly 90% sold with current inventory including Penthouses priced from $4 million, ranging in size from 1,694 SF to 4,207 SF; and select other residences priced from $3.2 million encompassing 1,481 - 2,434 SF. Penthouse units feature interiors by award-winning Brazilian architect Debora Aguiar, as well as top-of-the-line Artefacto furnishings. 1 Hotel & Homes offers a variety of private amenities as well as shared with the hotel, all with a natural approach to wellness and echoing the eco-conscious design of the residences. Amenities include a private residence entry and staff, 4 restaurants with fresh organic food from award-winning chef Tom Colicchio, a Mindfulness Program that offers yoga and meditation, the visionary new Bamford Haybarn Spa from London, 600' of beachfront, 4 oceanfront swimming pools, and a 14,000 SF Spartan Gym. 

PROFILE Exclusive: Exploring W Fort Lauderdale & The Fast Growth of Fort Lauderdale Beach with ISG Principal Craig Studnicky

PROFILEmiami had the exclusive opportunity to sit down with Craig Studnicky, Principal and Co-Founder of ISG Realty and leads sales at The Residences at W Fort Lauderdale. Take a look inside Related Group and Related Companies $60 million renovation of the iconic property and find out how the Fort Lauderdale Beach real estate market is on the move.

PM: Fort Lauderdale and Fort Lauderdale Beach have seen an influx of high-end condo and hotel developments in recent years. What sets The Residences at W Fort Lauderdale apart?

CS: The W Fort Lauderdale was completed in 2009. It was designed and developed as part hotel and part condo, essentially a condo hotel. A lot of the developments on the ocean in Fort Lauderdale, like Auberge and Paramount, are being developed for the end-user. Auberge and Paramount have typical rental restrictions for end-user condominiums. The Residences at W Fort Lauderdale, by contrast, has the ability to be rented short-term. The original developer designed the W as two towers, with the hotel in the east tower, and the condo residences in the west tower. 

What really sets The Residences at W Fort Lauderdale apart is the flexible use of the units. You can buy a unit as a second home and never rent it, buy it as your permanent residence and live there year-round, or you can buy it as a combination second home and rental property. Most of the people who buy at the W use their condo as a combination of a second home and rental property. When owners are not in town, they sign a management contract with Starwood and Starwood manages the unit as a “hotel residence” which generates income for the owner.

W Fort Lauderdale was acquired by Related in 2014. Related has developed more than 80,000 condos over the past thirty years, and are clearly the largest condo developer in the U.S. After taking ownership, Related decided to do a $60 million renovation to the entire property. The W, Starwood and Related agreed to use New York-based design firm Meyer Davis to head up the redesign. Meyer Davis has also been hired by Related for Auberge Beach Residences & Spa, the Paraiso Bay Beach Club in Edgewater, Park Grove in Coconut Grove and 1 Hotel & Homes in South Beach.  

PM: Do you see a need for more hotel branded residences in Fort Lauderdale?

CS: Absolutely. We are welcoming the Four Seasons, just two blocks north of the W, which promised to break ground this fall. The Four Seasons is the most recent addition to the high-end branded residences in the area, including W Fort Lauderdale and Ritz-Carlton.

PM: So, you guys were selling strong when a lot of other projects were slowing down?

CS: We are selling strong because Fort Lauderdale Beach is selling strong. The pricing gap between oceanfront properties in Miami Beach vs. oceanfront properties in Fort Lauderdale Beach has never been greater, and developers and buyers from around the world have noticed. Historically, the price difference from Miami Beach to Fort Lauderdale Beach has been about 25 to 30 percent, with Miami always getting the premium. Today, Miami Beach is about 200 percent more expensive than Fort Lauderdale Beach.  

In the last three years, $1.5 billion in new development has taken place in Fort Lauderdale, 70 percent of which has already been sold. 

PM: Where do you see most of the buyers coming from? Are there a lot of New Englander’s and New Yorkers who want a second home and like the supplemental income and the ability to show up with their golf clubs?

CS: The United States is the number one market for The Residences at W Fort Lauderdale. The overwhelming majority of buyers are from the northeast, including New York, Boston, Philadelphia, Washington D.C., Chicago but also Canada, Toronto and Montreal. The next market after that is Brazil. Brazilians have discovered Fort Lauderdale and the price difference between Miami Beach and Fort Lauderdale is very appealing to them. They love the beach, and the beach in front of the W is the nicest beach in Fort Lauderdale. Even though the dollar is high, they love the idea of buying into a condo hotel because they get their rental income in U.S. dollars, which is valuable for Brazilians. 

PM: So how did you start to connect with Chinese buyers?

CS: I have owned my company for 25 years and we have done lots of work for developers, but I can honestly say, this is the first time I have ever sold to Chinese buyers. About 18 months ago, I started a division called ISG Asia and currently have 20 Mandarin-speaking agents working with me. A majority of China has not been exposed to South Florida and needs a lot of education on what Florida is and the different markets it includes. They are starting to discover South Florida and interest is rising because Florida is a bargain compared to pricing in Los Angeles, New York and San Francisco. The Chinese are only investing so far, mostly looking for income-producing properties. Of all of the properties I show them, The Residences at W Fort Lauderdale is one that they like the most because of its brand. 

When President Xi visited President Donald Trump at Mar-A-Lago in Palm Beach in April, travel websites from China were completely sold out of availability for Florida. The visit was really big for Florida real estate in terms of introducing Florida to the biggest country in the world. By the end of 2017, we are supposed to have a non-stop flight from Tokyo, and by the end of 2018, we are supposed to have non-stop flights from Beijing and Singapore, which will be a real game changer for South Florida real estate. 

PM: Can they move money freely out of China? How easy is it for them to invest their capital in the United States? 

CS: Currently there is a $50,000 restriction per individual on foreign investments annually, which is a challenge. There are ways of getting around it, but it is very challenging. The Chinese government is watching them very closely at the moment. 

PM: What else does Related Group and Related Companies have in store for Fort Lauderdale Beach?

CS: I think you will see Related develop more high-end condos like Auberge Beach Residences & Spa. The value difference between Miami Beach and Fort Lauderdale Beach makes this Fort Lauderdale’s time.

About Craig Studnicky:

Craig Studnicky is a principal of International Sales Group, ISG, and has been a real estate broker for more than 25 years. Studnicky began his career in New York City as a sales associate in residential real estate for JPS Associates. In 1984, he founded Steven Craig Realty in Atlantic City  where his firm became Atlantic City’s leader in real estate, cornering two thirds of the market. In 1992, Studnicky relocated to Florida to work as Director of Sales for Country Club Estates in Aventura from 1992 to 1994. In partnership with Philip J. Spiegelman, he co-founded International Sales Group. Under Studnickys’ leadership, ISG maintains the areas top-producing sales force who have posted record real estate sales. Studnicky is a licensed real estate broker in states of New Jersey and Florida. He holds a degree from Virginia Tech.

Take our tour of Related Group & Related Companies' $60 million renovation of W Fort Lauderdale HERE

Douglas Elliman Honors Top Agents at The Florida Ellie's, Their Annual Awards Show

On April 21, 2017 Douglas Elliman hosted their signature annual awards show at the St. Regis Bal Harbour to recognize the top produces in South Florida. Hosted by Florida CEO Jay Parker and Florida COO Gus Rubio, Douglas Elliman celebrated $2.6 billion in total sales volume in 2016 in Florida, up 8% from 2015. Douglas Elliman oversaw 4,424 sales and lease transactions across the South Florida markets in 2016 as well as the opening of new office locations in Jupiter, Delray Beach and Bay Harbor as well as an expansion of their Brickell location. “We have experienced extraordinary growth and expansion in the past year, and we look forward to the exciting opportunities that lie ahead,” said Jay Parker, CEO of Douglass Elliman Florida. Check out the gallery from the event below and read our PROFILE Exclusive interview with Jay Parker here.