Check Out This Stunning DOMO-Designed Pine Tree Drive Waterfront Estate Which Just Sold For $19.25 Million

A stunning waterfront estate designed by DOMO Architecture + Design and located on the ultra-luxe Pine Tree Drive at 4395 Pine Tree Drive, has sold for $19.25 million. The estate, which was built in 2015, is designed to fuse indoor and outdoor living with disappearing, sliding glass pocket doors. In all the home spans 9,583 SF and offers 8 bedrooms and 9 bathrooms. The estate features a 1,000 bottle wine vault, home gym, media room, guest suite, koi pond, 4-car garage. Outside features lush landscaping, an infinity pool with planters and 100' of waterfront. The home had listed with the Jills Coldwell Banker Residential Real Estate for $23 million.  

Photos via The Jills & Zachary Balber

Crescent Heights Strikes Deal With The City Of Miami Beach To Build A 42-Story Tower On Alton Road

According to new reports Crescent Heights has finally struck a deal with the city of Miami Beach to redevelop the former South Shore Hospital site, the three-block lot between Alton and West Avenue from 5th to 7th streets, into a 42-story tower. The tower, which will be located on 5th Street, is designed by Arquitectonica and will feature a 13,900 SF floor-plate. Crescent Heights has agreed with the city to limit the residential unit count to 400 as well as reduce the commercial intensity by 50%. The proposal includes a single story commercial plaza on the Alton Road side of the 6th street parcel which would feature retail, cafes, etc., as well as parking. The commercial structure would buffer the park which in exchange to build a high-rise, Crescent Heights will donate a 2.5-acre street-grade park to the city. Original proposals included parking to be located under the park. The developer will also give an easement on 5th Street for the city to build a pedestrian walkway over 5th Street as well as build an extra turning lane.

The currently approved project on the site rises 5-7 stories and features 510 apartments. Mayor Dan Gelber worries about congestion due to an influx of new residences in addition to a "wall effect" that is created by the low-rise buildings. With a high-rise condos, a selection of owner-occupants will not live in Miami full-time while apartment rentals would be operating at near 100% occupancy.   

The terms are still under negotiation and the plans have not yet been approved by the city. Mayor Gelber plans to ask the City Commission to pursue a development agreement and draw up a term sheet for Crescent Heights's proposal. Should the proposal be approved the timeframe of the project is expected to be 2 years. 

Perkins + Will Reveals New Contemporary Baptist Health Facility At 709 Alton Road

The Miami office of global architecture and design firm, Perkins+Will, has announced the opening of the recently completed Baptist Health facility at 709 Alton Road. The four-story outpatient care center was developed by Crescent Heights and features 120,000 SF of total development. The contemporary structure designed to focus on community well-being, bringing a new level of service to Miami Beach while capitalizing on the neighborhoods walkability. The Baptist Health outpatient facility encourages health and well-being by connecting everyday urban amenities such as like retail, food, and beverage, with active public spaces, walking paths, roof gardens, and state-of-the-art wellness care for the mind and body.

“Our aligned mission with Baptist Health was to create and sustain an effective hospital-community partnership in Miami Beach,” said Pat Bosch, Design Director of the Miami office of Perkins+Will. “Improving patient experience and encouraging social engagement through strategic design was paramount.”

The design of the building blends indoor-outdoor spaces and an abundance of natural light, to meet the unique healing needs of all patients. While traditional medical office buildings internalize circulation, Perkins+Will designed an interior public promenade along Alton Road, effectively extending the sidewalk activity through the glass storefront and inviting the community inside. In terms of functional design, primary care and urgent care services are located on the same level as physician’s offices and community resource rooms to streamline patient visits. All parking and services for the building are located on the upper interior floors to maximize access to and from the active building components, street and sidewalk. The top floor of the building is transparent with circulation and activity focused along the commercial corridor and the roof terrace which will be used for physical therapy and exercise classes.

709 Alton Road houses primary care, urgent care, diagnostic imaging, endoscopy and other services. Imaging components includes X-ray, ultrasound, mammography, bone densitometry, CT and MRI. The facility is now open daily from 11 a.m. to 11 p.m. The project marks the Miami studio’s second project on the Alton Road corridor with Crescent Heights, the other being the mixed-use 1212 Lincoln Road, and their fifth completed on Miami Beach. 

Inside The Building Collapse At The Future Site Of Brazillian Billionaire Jose Isaac Peres' 5775 Collins Ave In Miami Beach

Miami is never short of real estate drama, but what happened yesterday in Miami Beach is a true rarity as the shell of the former Marlborough House, located at 5775 Collins Avenue has come crashing to the ground. The accidental collapse shut down a large portion of Collins Avenue and has left a project manager hospitalized in critical condition. The demolition was supposed to take 2 weeks and was being overseen by subcontractor AlliedBean. Winmar Construction, the contractor for the project applied for a demolition permit in August 27, which was denied before reapplying and being issued a conventional demolition permit in May 2018. Wimnar has since stated that AlliedBean Demolition Contractors was responsible for all demolition work. 

The project has not been without its other share of drama, as neighbors opposed the project when first revealed, complaining about a "Condo Canyon" effect which is caused by newer building taking up the entire lots they are built on in terms of width. This would block partial views of the ocean as well as limit public access to the beach. The proposal was later approved by the Miami Beach Design Review Board in December 2017. 

The new building at 5775 Collins, which is being developed by Jose Isaac Peres' Multiplan Real Estate Asset Management and is being designed by Arquitectonica. The luxury residential tower will rise 17 stories and feature 89 units. The building would also feature 2 levels of semi-subterranean parking. The proposed tower is outfitted with white stucco-tipped slabs with a glazed glass skin on the units. The balconies will be finished with with a warm brown wood, with planks oriented and glass rails. There will also be 2 penthouses with private pools. Amenities will include a beachfront pool and lounge areas. No new adjusted timeline has been released following the collapse. 

Check out the video of the collapse below:

Photos via Sun Sentinel & Arquitectonica 

Douglas Elliman Releases Q2 Market Reports For South Florida As Pricing Continues To Rise

Douglas Elliman has released their Q2 Market Reports for South Florida, produced in conjunction with Miller Samuel, a leading independent appraisal firm. Despite the constant rumblings of a bubble or a crash, the South Florida market continued to show strength and prices continuing to push higher in both the luxury and overall markets across nearly all markets including Miami Beach, Miami coastal mainland, Fort Lauderdale, Boca Raton, Delray Beach and Jupiter. The quarter also reflected the most sales in 3 years in both Miami Beach and Delray Beach. The general health of the market should remain strong as South Florida continues to be a haven for flight capital and population growth, matched with fast-growing world-class cities, a high quality of life and no state income tax. 

Miami Beach & Barrier Islands

• Price trend indicators posted strong gains across the overall and luxury markets
• Number of sales and pending sales moved up from year ago levels
• Although listing inventory has been rising for more than four years the rate of growth has eased considerably in past year
• Overall days on market and listing discount expanded as older listing inventory was cleared from the market
• Most second quarter sales in three years
• Luxury condo average sales size surged and pending sales posted strong gains
• Luxury listing inventory slipped

Key Trend Metrics (Year Over Year)

Overall:

• Median sales price rose 7% to $438,000
• Average sales price increased 15.8% to $1,098,024
• Number of sales increased 10.7% to 1,025
• Days on market was 148, up from 139
• Listing discount was 11%, up from 9.7%
• Listing inventory increased 3.9% to 6,319

Luxury Condo:

• Median sales price surged 47.6% to $3,370,000
• Days on market was 196, up from 194
• Listing discount was 12.7%, up from 11.4%
• Listing inventory fell 20.3% to 959 units
• Entry threshold began at $1,900,000

Luxury Single Family:

• Median sales price jumped 34.5% to $10,760,000
• Days on market was 262, down from 292
• Listing discount was 16.5%, up from 14.5%
• Listing inventory jumped 32.3% to 209 units
• Entry threshold began at $4,950,000

Miami Coastal Mainland

• Overall conditions reflect rising prices, stable sales and modest inventory gains
• Median sales price increased year over year for the 15th consecutive quarter
• Highest market share of conventional financing in more than five years of recording
• One in four single family sales and half of  condo sales were purchased with cash
• Number of sales well above the 5-year quarterly average
• Listing inventory edged higher for second quarter after six consecutive quarters of year over year declines

Key Trend Metrics (Year Over Year)

Overall:

• Median sales price increased 6.7% to $320,000
• Average sales price rose 8.8% to $456,591
• Number of sales fell 0.3% to 4,191
• Days on market was 86 up from 79
• Listing discount was 5.6%, up from 5.5%
• Listing inventory rose 2.7% to 11,184 units

Luxury Condo:

• Median sales price rose 6.4% to $814,951
• Days on market was 176 days, up from 169
• Listing discount was 8.1%, up from 7.7%
• Listing inventory declined 6.3% to 2,537
• Entry threshold began at $580,000

Luxury Single Family:

• Median sales price rose 6.7% to $1,600,000
• Days on market was 125 days down from 133
• Listing discount was 7.9%, up from 7.7%
• Listing inventory slipped 1.1% to 1,012 units
• Entry threshold began at $960,000

Fort Lauderdale

• Sharp price gains in the overall condo and single family markets
• All condo price indicators set new records
• Overall condo market showed a large burst in year over year sales in last two quarters
• Large gain in conventional financial market share for both property types
• Luxury listing inventory fell sharply across property types

Key Trend Metrics (Year over Year)

Luxury Condo:

• Median sales price increased 9.8% to $1,281,600
• Days on market was 81, up from 68
• Listing discount was 6.8%, up from 5.6%
• Listing inventory fell 31.8% to 255 units
• Entry threshold began at $975,000

Luxury Single Family:

• Median sales price rose 35% to $2,265,000
• Days on market was 167, up from 155
• Listing discount was 9.2%, up from 8.2%
• Listing inventory declined 15.6% to 298 units
• Entry threshold began at $1,500,000

Boca Raton

• Overall price trends for both condos and single families increased year over year
• Sales slipped an inventory edged higher for both property types from the year ago quarter
• Share rise in average sales size and price trend indicators for luxury condos
• Unlike overall market, listing inventory for luxury properties declined
• Luxury pending sales are up year over year

Key Trend Metrics (Year Over Year)

Luxury Condo:

• Median sales price rose 24.8% to $1,051,250
• Average sales price surged 31.3% to $1,394,111
• Days on market was 128 days, up 14.3%
• Listing discount was 8.3%, unchanged
• Listing inventory fell 21.1% to 243
• Entry threshold began at $645,000

Luxury Single Family:

• Median sales price declined 4.8% to $1,900,000
• Average sales price rose 1.8% to $2,605,203
• Days on market was 142 days, down from 165
• Listing discount was 9.6%, up from 9.5%
• Listing inventory declined 25.8% to 419
• Entry threshold began at $1,250,000

Delray Beach

• Most price trend indicators for the overall market by condo and single family moved higher
• The number of sales for condos and single families market wide increased
• Marketing time fell across the overall market
• The negotiability of luxury single family and condos tightened

Key Trend Metrics (Year Over Year)

Luxury Single Family:

• Median sales price surged 12.3% to $1,737,500
• Days on market was 148, up from 118
• Listing discount was 8.7%, down from 11%
• Entry threshold began at $1,260,000

Luxury Condo:

• Median sales price declined 10% to $575,750
• Days on market was 80, down from 116
• Listing discount was 5.5%, down from 5.8%
• Entry threshold began at $390,000

Wellington

• Overall market price trend indicators moved higher over both property types
• Listing inventory and sales were up slightly across most segments of the market
• Luxury single family prices and sales size were up sharply
• Smaller luxury condo sales size skewed most price indicators lower

Key Trend Metrics (Year Over Year)

Luxury Condo:

• Median sales price fell 23.2% to $437,500
• Average square footage fell 11.9% to 2,034
• Days on market was 182, up from 160
• Listing discount was 5.9%, unchanged
• Listing inventory rose 8.3% to 52
• Entry threshold began at $350,000

Luxury Single Family:

• Median sales price jumped 34.4% to $2,150,000
• Average square footage rose 17.3% to 4,877
• Days on market was 176, up from 167
• Listing discount was 14.9%, up from 14.4%
• Listing inventory rose 4.3% to 218
• Entry threshold began at $845,000

Palm Beach

• Highest combined number of condo and single family sales in three years
• Listing inventory fell across the market by property type
• Condo price trends declined, skewed by shift to smaller sized sales
• Luxury inventory and days on market expanded

Key Trend Metrics (Year Over Year)

Luxury Condo & Single Family:

• Median sales price declined 20.8% to $12,537,970
• Days on market was 148, down from 140
• Listing discount was 17.7%, up from 15.3%
• Listing inventory rose 30.2% to 69
• Entry threshold began at $6,786,250

Jupiter/ Palm Beach Gardens

Jupiter:

• Single family price trend indicators increased as sales and inventory declined
• Condo price trend indicators rose sharply as sales declined

Palm Beach Gardens:

• Single family price trend indicators were mixed as sales and inventory declined
• Condo price trend indicators for the overall markets continued to rise

Key Trend Metrics (Year Over Year)

Jupiter Single Family:

• Median sales price increased 7.3% to $515,000
• Days on market was 60, down from 69
• Listing discount was 5.2%, down from 6.5%
• Listing inventory declined 8% to 402

Jupiter Condo:

• Median sales price rose 12.9% to $315,000
• Days on market was 65, up from 62
• Listing discount was 4.6%, down from 4.9%
• Listing inventory rose 11.7% to 277

Palm Beach Gardens Single Family:

• Median sales price increased 4.8% to $492,500
• Days on market was 77, down from 86
• Listing discount was 6.9%, down from 7.6%
• Listing inventory declined 2.5% to 516

Palm Beach Gardens Condo:

• Median sales price rose 3% to $242,000
• Days on market was 52, down from 62
• Listing discount was 4.4%, down from 4.6%
• Listing inventory jumped 21% to 236

Fashion Designer Anthony Thomas Melillo of ATM Lists Miami Beach Condo

Fashion designer Anthony Thomas Melillo of the clothing brand ATM, has listed his Miami Beach condo for $625,000. The condo is located in Montclair Lofts, which is walking distance from Lincoln Road, and features custom design and minimalistic décor. The residence is 2 bedrooms and 2 bathrooms and no expense spared finishes include dramatic white oak ceilings, custom floor-to-ceiling pocket doors, Kitchen millwork designed by Henry Built with Miele appliances and cement counters, and baths by Kraus and Toto. The condo also features 2 terraces with custom Ipe wood decking and privacy louvers. 1700 Collins Ave. Miami Beach is currently listed for $625,000 with Dina Goldentayer and Joseph Schafer of Douglas Elliman Real Estate. 

46 Star Island, Previously The Most Expensive Home For Sale In Miami and Originally Built By Carl Fisher, Drops Price To $48 Million

The legendary cul-du-sac, located at 46 Star Island, which was originally built by the "founder" of Miami Beach Carl Fisher, has dropped its price from a city high $65 million to $48 million. The mansion also previously listed via auction without reserve on January 31 with Concierge Auctions in December but did not sell. 

46 Star Island features 10 bedrooms, 12 bathrooms with over 18,356 SF of living area. The estate was completely renovated in 2016 keeping the classic Mediterranean design with modern features such as a new kitchen and updated living areas. Luxurious features and finishes cover every inch of the property such as a large, ornate living room with vaulted ceiling; clerestory and arched casement windows, 3,000-bottle wine cellar, billiard room with wet bar, gym, office, staff quarters, sun room, formal dining room, guest quarters, and a massive chef's kitchen. Outside features over 250' of waterfront complete with lounge areas, exotic landscaping, resort style pool with cabana, and 2 private docks on of which with has a boat lift, all offering stunning views of Biscayne Bay and Monument Island. 

46 Star Island is currently listed for $48 million with listing agents Alexa Iacovelli and Mirce Curkoski of ONE Sotheby's International Realty. 

Photos by Alex Tarajano Photo

Italian Fashion Designer Renato Balestra Lists South-Of-Fifth Condo At Murano Grande For $4.7 Million

Italian Fashion icon, Renato Balestra, who has designed clothes for the likes of the Queen of Thailand and the Empress Farah Diba, has listed his condo in Murano Grande for $4.7 million. Murano Grande is located in South Beach's exclusive South-of-Fifth neighborhood. The residence offers 3 bedrooms and 3.5 bathrooms spread over 3,000 SF. The split level pad has a large living/dining room for entertaining, an eat in kitchen, and finishes including marble and wood flooring with Miele appliances. Amenities at Murano Grande include a gym, spa, restaurant, pool and tennis court. 400 Alton Road Unit 2904 is currently listed for $4,700,000 with Paolo Coniglio of Douglas Elliman Real Estate.

Photos via Douglas Elliman

PROFILE Exclusive: Inside Developing The Renzo Piano & RDAI-Designed Eighty Seven Park With Terra's David Martin

PROFILEmiami had the exclusive opportunity to sit down with David Martin, President and co-founder of Terra, and the mastermind behind some of Miami's most architecturally significant condos of this cycle include Bjarke Ingels-designed Grove at Grand Bay, the Rem Koolhaas-designed Park Grove, and Rene Gonzalez-designed Glass. Now, he has set his sights on Miami Beach with an all-star team including Renzo Piano and RDAI to build Eighty Seven Park, a beachfront luxury tower complete with a private residents' park. Get the inside scoop on the exclusive tower, and how David Martin builds, develops, and cultivates neighborhoods on Miami Beach.

PM (KD): What did you hope to accomplish by bringing in Renzo Piano? Did you think he was the right person to marry the indoor/outdoor lifestyle you wanted to provide or did it have more to do with his global presence?

DM: I always was an admirer of his work and when I met him I was really inspired. Part of that process had to do with the fact that I’m making a decision whether we were going to keep the existing building and build next to it, or whether we were just going to build one building and his recommendation was to do one. I think that’s what happens sometimes, you meet people and you connect. 

PM (KD): So bringing in a designer/architect name wasn’t something that was at the top of your list?

DM: For me it's more about the design process than the name. It's about what we could create together, rather than what his name is. Because you could have somebody with a great name, but creates something that doesn’t work. I think its always about trying to find the person that can speak to the clientele through their work and that fits in that audience. I think his language of design and architecture fits exactly with what our goals and objectives were. 

PM (DD): Did Renzo Piano do the interiors too?

DM: Renzo works on the lobby; he really controls that experience. He created an orangery which is the space where the public park and private park meet. RDAI helped on all the floor plans, all the units, and a lot of the finishes. RDAI is from Paris and they’re really amazing. Locally, they did the Hermès store in Design District. 

PM (DD): And the DBOX Rendering? 

DM: So those were done by boundary. But the park is a big piece of what makes it so special. Every project we do, we figure out: What are the environmental qualities of that neighborhood? Where are the best schools? Where are the safest places? Right now, the Urban Land Institute has this brief on what a healthy and sustainable neighborhood is and park space is one of the most critical pieces. So that park was a huge differentiator and game changer for what this project meant and it formed a lot of the decisions that were made here.

PM (DD): This is North Beach, not Surfside, right?

DM: Right, so we’re the most northern part of Miami Beach. Miami Beach goes from 1st to 87th Street, and from 87th to 95th is Surfside, and then 95th Street and up is Bal Harbor. What’s interesting is that we get a flavor of Miami Beach, but we also have access to Bal Harbor. It’s different in that North Beach is much less dense, it’s more open. It’s a little more peaceful, a little more residential, and has a lot of space. It is a unique special place that I think is now growing an identity. 

PM (DD): So the school district here isn’t the same one as Surfside?

DM: There is good public schools, but also great private schools. You have an interesting residential stock of single families like in Biscayne Point and even Surfside, so it’s an interesting community. The green space and park space give it an environmental quality that is unique to other parts of Miami that are more urban and dense, and create a noise. In a way, this property is kind of very peaceful. We have different types of properties; we have properties in the urban, dense core that have a certain strategy. In this property, being where it is, we accounted into all our decisions. From the selection of the architects, to positioning of the building, to the type of product that we created here, is truly special. 

PM (DD): Why do you think that in Surfside, Bal Harbor, and Sunny Isles there is a ton of development, but in Miami Beach there isn’t as much as the other neighborhoods?

DM: Miami Beach has a very restrictive zoning. 

PM (KD): What inspired the need for a private residence park in Miami?

DM: At most of the ocean-front developments that you see in South Florida along the coast, people are trying to maximize their development rights and by doing so they use up the entire green space of the building. One of the design decisions here at Eighty Seven Park was to have the building perpendicular to the ocean, rather than parallel. Traditionally, parallel would have been a more selfish approach to the site. From the perspective of quality of life factors, such as sunlight and view and proximity to the water, having the building positioned perpendicular to the ocean was a better thing for the community, but it also then allowed us to create this private park that we developed. So again, the fact that this property is 500 ft on this 35-acre park, that informed us to kind of grab that park and Renzo’s idea was “David, how does this building belong to the park?” He really had all these trees invade the entire property and lobby, and then created this so it goes from a private park to a public park.  

PM (KD): So, despite the fact that the park is the defining feature of the building you still adapted to the area and molded the building to better feature what it has to offer. How did you acquire the land?

DM: We paid. It was a competitive process and we won, which sometimes is good and sometimes its not. When you win it means you paid the most, most of the time, but on the flip side we also had a very aggressive timeline. We took a lot of time to think about where we want to buy and what’s the strategy for the neighborhood. We try to strategize and look at opportunities differently. 

PM (DD): When did you acquire this land?

DM: This was in 2015 or 2016, a few years ago. 

PM (KD): With the new focus on lifestyle in Miami’s condos, how is Eighty Seven Park different from the other buildings? What amenities does it offer that other residences don’t? What sets it apart?

DM: At the end of the day, condos are homes. What we’re doing is we’re creating homes that have access to amenities in a more convenient way. There is a whole convenience factor with these types of buildings and efficiency of time. Technology today is all about innovating and making your life more efficient, so buildings should be able to do that as well. That’s why this interesting psychology where traditionally, South Floridians were buying homes, now you are seeing people buying their homes in buildings. What the buildings then have to offer is the kind of health and wellness situation that we have; RDAI designed our spa and gym, and that’s an important component. This whole food and beverage thing - we created a lounge/bar/outdoor area in the park that is going to serve as that.

PM (KD): Do you see people revolving their daily lives more around where they live?

DM: I think that’s the secret. I think more and more buildings can offer what a hotel offers without allowing for a transient nature of the building and that’s the goal. Whatever experience you can have at a hotel we wanted to make sure you can have as good or a better experience here, but at the same time do it at a place that is more of a private and exclusive sanctuary, like a compound, rather than allowing just any individual to come in and become a guest of the hotel. That was also a big decision for us and is the reason why we didn’t bring in a hotel component to this property. 

PM (KD): So what does private investment mean in public spaces for the rest of the community?

DM: We need to look at how we can hack capitalism to solve society’s problems. Any time you have a public deed or an infrastructure project that is going to improve the neighborhood and potentially improve the assessment values and the tax revenues to the city, I think that nexus needs to be created and I think in this project, we made a voluntary contribution of $10.5 million to the park and it made sense. We need to think more creatively how we can solve problems: whether its transit or affordability or infrastructure (flood mitigation). We need to think about what resources are needed and how the private sector can help and contribute.  

PM (DD): When it comes to building on the ocean does the strategy in terms of materials used change based on salinity?

DM: Lighting for instance for the sea turtles. You have to have a certain kind of a light system and color. And then on the ocean there is also the dune restoration and beach restoration, so we are shipping in all brand new beautiful sand for the beach. Traditionally, other developments have reused the sand that they dug up from other properties but we move that offsite and brought in all new sand.

PM (KD): Is that also for environmental reasons? And also, aesthetics? 

DM: I would say both because the sand I bring is whiter and the sand that comes from here is a little dirtier looking. But also, where you are building on the water line is also important so there is a consistency of how far buildings are positioned from the ocean. And what you can do in your pools and those types of things. This property is only 66 units. The property that used to be here was a 250 room hotel. Now, there will be less traffic and less water/sewer capacity. That hotel was assessed at $20 million and this property will be assessed at $400 million. So that’s 20x more tax revenue with a reduction of traffic and reduction of water/sewer capacity. These types of projects are needed for workforce housing and things like that. So we need to create a mix of housing typologies in order to have a solid economy. 

PM (DD): Why do you think right now we have mostly condos here as opposed to co-ops in the luxury market? And do you think over time in Brickell you’ll start to see that de-condo move? 

DM: What happens is there’s a commodity product and then there’s a special residential product. So there’s commodity-residential and then there’s kind of unique and special residential. So what you traditionally have seen is a lot of buildings and a lot of developments, even though they are a condo and people own them individually, people rent them out. So at the end of the day there’s always a rental component to a lot of these condo buildings. In Chicago, there may be reasons why they convert them, because for instance in Coconut Grove, there was an office condo that somebody bought all the office condos and then converted it, so there could’ve been situations where people are looking at it as investment opportunities and feel that they could buy up a building, remove the condo component, maybe the real estate tax comes down and improves the ROI and then they have now a cash-flowing asset that they control the whole building. I think also there is limited land, so investments are doing that. I think it’s a form of ownership. I always feel like the buildings we’re doing in the luxury sector are very unique, special and generational. That’s the mood and the types of families that have purchased from us are people that are looking at these residences as generational, and not so much at the current cash flow of the home.

PM (DD): Do you see a large demand of buyers being from high-tax northern states that are trying to shed their residency up there and this project is coming on at the right time to match it?

DM: I think all these trends happen; there’s so many different situations happening all over the country and all over the world that impact where Miami's buyers come from. We have an amazing, diverse group from London to Italy to CT and Manhattan to LA to Brazil. 

We have a very interesting mix and it's not so much about where they’re from, but the types of individuals they are: intelligent, not looking for extravagance, but looking for simplicity. Typically, they’re collectors. At the end of the day, that team or collaboration that we create, what we end up doing is informing the public of the DNA of the building which I think attracts certain types of people. 

PM (DD) What do you want Eighty Seven Park to mean to this neighborhood? 

DM: I think it’s going to be a symbol of hope of what’s to come for the future of Miami Beach. What types of developments are possible that can create the tax revenues needed for the basic needs and services that we need to provide. I think it’s going to be a very smart design that will raise the bar a little bit, even for me, of what to do next and how to do it. Every project I do, I learn more and more so this building has a symbolism to the neighborhood and also to the industry. 

About David Martin & Terra:

Terra is an integrated development firm in South Florida focused on creating sustainable, design-oriented communities that enhance neighborhoods and bring people together. Founded in 2001 by father and son, Pedro and David Martin, it has played a significant role in the transformation of South Florida. Terra's portfolio includes luxury high-rises, single family homes, townhouses, retail shopping centers, office space and multifamily apartments, both in urban and suburban areas. Each development is a strategic investment in the region, with the impact on individual communities always carefully considered. Terra has had a recent push in the Coconut Grove, Miami Beach, Doral and Weston neighborhoods. It developed two new luxury condos that helped revitalize Coconut Grove, the Bjarke Ingels-designed Grove at Grand Bay and the Rem Koolhaas-designed Park Grove. Terra also built Glass, a 10-unit condo designed by Rene Gonzalez, in Miami Beach's South-of-Fifth neighborhood.  

Interview by Demetri Demascus & Katya Demina | Photos via luxhunters

Inside Look: How Flood Insurance Companies Are Gaming the System in South Florida

It is indisputable that the Earth’s climate is changing, just as it always has throughout history. Most of these climate changes are attributed to small variations in Earth’s orbit that change the amount of solar energy the planet receives, but experts argue that the current warming trend might have been accelerated by human activity. Regardless of the driving force, scientists have observed shrinking ice sheets, extreme weather patterns, an increase in global temperatures, and sea levels rising.

Notorious for being risk-averse, the insurance industry has taken the lead in researching climate change and the risks it poses to their business. In particular, flood insurance companies are re-evaluating what kind of coverage they can provide to coastal areas with greater threat of flooding, storm surge, and unpredictable weather. Peter Höppe, who heads Geo Risks Research at the reinsurance giant Munich Re, said “The rise in sea level caused by climate change will further increase the risk of storm surge.”

Since insurers bear the ultimate risk, they are comfortable with the scientific literature and consensus on climate change, which right-wing circles like Florida’s Governor, Rick Scott, deny. Insurance coverage, however, is based on scientific thought and is therefore less sensitive to politicized debate. Last year alone, natural disasters in the United States generated $35 billion in privately insured property losses, $11 billion more than the average over the last decade. Low-lying coastal areas like Miami-Dade, Broward, and Palm Beach counties are most susceptible to greater damages from flooding, which could double the average annual losses from excess water by 2030.

Miami Beach is a barrier island that lies a few feet above sea level. The Federal Emergency Management Agency (FEMA) has classified much of the City of Miami and surrounding areas as a Special Flood Hazard Area (SFHA), which has the highest risk of flooding. Anyone wishing to purchase a home in an SFHA area is required by their lender to purchase flood insurance through the National Flood Insurance Program (NFIP). However, since no flood risk is considered uninsurable by the NFIP, property owners are sheltered from more volatile weather patterns.

NFIP was originally founded in the 1960s when private insurance companies refused to cover flood-prone homes because they were deemed too risky, the assumption being that people wouldn’t stay in these areas permanently. Asking those homeowners to move may seem like a simple solution, but buyers aren’t willing to purchase properties that have a history of flooding and disaster buyout programs are underfunded.

In addition to perpetuating a cycle that hurts the people it was designed to help, NFIP leaves government and federal taxpayers as the ones shouldering the damage caused by flooding. Because the government is responsible for covering any NFIP losses, private flood insurance companies end up making more money when a big storm hits. Along the Gulf Coast in Florida, 1% of the homes insured by the NFIP account for 25% of claims made and these so called “repetitive loss properties” get paid out repeatedly. Many of these properties are second or vacation homes. 

Despite the threat of stronger storms, VICE News reports that Miami’s waterfront real estate market hasn’t slowed down. Without a state income tax, property tax revenues from these properties will be necessary to continue funding the city’s infrastructure improvement efforts like raising streets above sea level and installing water pumps. By denying climate change, Governor Rick Scott has continued to usher in buyers and developers whose projects will be important tax revenue contributors. If people want to live in South Florida, the appropriate infrastructure investments will be pivotal in mitigating the risks posed by natural hazards.

Special thanks to: Ta-Shana Taylor, University of Miami’s Geological Sciences Department

Article by: Katya Demina