IF you, like many New
Yorkers, already thought Miami's South Beach was an
extension of Manhattan, check out what's happening
now. Not only is the area chockablock with New
Yorkers and New York-style buildings, we're talking
sky-high New York prices, too.
Take the still-sizzling South of Fifth (SoFi)
area, which already includes high-end projects like
Continuum (where a 277-square-foot cabana famously
sold for $850,000 three years ago) and Apogee (a
sold-out Related Group of Florida development with
67 units, all larger than 3,000 square feet).
It's here, at 455 Ocean Drive, that the Savoy
hotel-condo development is looking to make its mark
as the latest, greatest Miami playground for New
York buyers.
"The difference with this building is that you're
actually on the sand," says New York-based
Prudential Douglas Elliman broker Dolly Lenz. "It's
a very different experience because of location
alone. Not everybody can be right on the beach."
Lenz, who is now spending about half her time in
Miami handling sales for the development, says she
already has more than 400 inquiries for the 111
Savoy units, with expected asking prices in the
$600-to-$2,000-per-square-foot range and a scheduled
completion in late 2008. (Plans call for 30 ocean
residences and 57 hotel-condo units ranging from 563
to 3,700 square feet on Ocean Drive and 24 lofts one
short block away on Collins Avenue.)
Lenz expects the Savoy units will be briskly
snapped up by her core high-end New York and
northeast buyers. (She's buying a unit herself, as
is Prudential Douglas Elliman chairman Howard Lorber.)
"Most of the inquiries have come from New York,"
she says.
Other South Beach properties commanding New York
prices include the Setai on 20th Street and Collins
Avenue, where a 2,500 square-foot, three-bedroom
penthouse sold for $5.8 million ($2,300 per square
foot) last month.
A 1,300-square-foot, two-bedroom bungalow at the
forthcoming Costas Kondylis-designed W South Beach
Hotel & Residences on 22nd Street and Collins just
sold for around $4.5 million, and another is close
to selling for more than $5 million, according to
New York-based developer David Edelstein. That would
be more than $3,750 per square foot, putting it into
the stratosphere of coveted units at 15 Central Park
West and the Time Warner Center.
And, hoping to stretch the boundaries of South
Beach, the Cipriani Ocean Resort and Club Residences
on the 3200 block of Collins Avenue wants $1,250 to
$3,000 per square foot for its units.
"The high end of Miami's market continues to
flourish. It's not surprising to see sales higher
than $2,000 per square foot, but the average sales
are going to be a little less," says Miami broker
Mark Zilbert of Zilbert Realty and condoflip.com,
who points out that resales at the Setai have
"remained relatively modest, at a price point that
has leveled off at about $1,600 per square foot."
Yes, that big number qualifies as "modest" in a
market with such fancy-pants buildings.
"Many high-end buyers are willing to pay a
premium to get the properties they want," Zilbert
says. "The boom is clearly [being caused] by
second-home buyers."
And with many buyers coming from New York City,
it's no surprise that they're getting New York-level
amenities.
A conversion/expansion of an 80-year-old landmark
building that once housed Rolling Stone Ron Wood's
nightclub, the Savoy will have its units and spa
furnished by Fendi Casa. Buyers can expect all the
perks of a white-glove building, as well as a
restaurant with indoor and outdoor dining, private
jet service, Rolls-Royce shuttle service and
personal chefs.
"You have to have the 24-hour room service, the
name spa, the fitness center, the fantastic
restaurant - everything New Yorkers are comfortable
with and know," Lenz says.
A Mr. Chow and a Bliss Spa are coming to W South
Beach. A David Barton Gym + Spa and a Philippe Chow
restaurant will be at the new Hotel Gansevoort
South/Paradiso project (with units from $600,000 to
$12 million) just down the street.
Since NYP Home last wrote about Miami in
December, blockbuster restaurant openings have added
heat to two residential projects.
There's Table 8 at the Regent South Beach hotel
condo on 15th Street and Collins, where
under-500-square-foot, one-bedroom units are on the
market for about $1,500 per square foot. The
restaurant, an outpost of Govind Armstrong's
successful L.A. eatery/celebrity hangout, resembles
a more playful, hipster Union Square Caf�.
And then there's David Bouley Evolution at the
Ritz-Carlton on Lincoln Road. It's mere steps away
from the sales center for the Ritz-Carlton Club and
Residences South Beach, but that project, with units
from around $1 million to $17 million is actually
being built more than 10 blocks north on 29th Street
and Collins Avenue.
"I think Miami has done a 180-degree about-face
in the last 10 years as far as cleanliness, upscale
restaurants, upscale hotels and an unrivaled night
scene," says Andrew Heiberger, founder and CEO of
New York City's Buttonwood Real Estate. "And as
opposed to more country-club style places in
Florida, it's a more youthful place, with more
cultural diversity."
Heiberger personally purchased three
pre-construction units at the Setai, including a
1,350-square-foot two-bedroom he bought for $690,000
and flipped last year for $1.65 million.
"The funny thing is, it's probably worth $2.2
million now," says Heiberger, who adds that "you can
go to any of the pools at hotels like the Shore Club
or the Setai or the Delano and identify many New
Yorkers on lounge chairs. On any given weekend, if
you go to one of the five to 10 top restaurants down
there you're going to bump into five to 15
acquaintances [from New York]."
Last week's South Beach Wine and Food Festival
definitely had a New York feel.
The talk of the town during the festival was
Jeffrey Chodorow's letter-writing skills. The star
of Thursday's Burger Bash was Shake Shack. While
Bobby Flay and Dave Lieberman hung out at the Food
Network Awards, the chefs drawing the biggest crowds
at a Friday tasting event held simultaneously
included Momofuku's David Chang and Aquavit's Marcus
Samuelsson. And the hot ticket Saturday was a
tribute dinner honoring Le Bernadin's Eric Ripert
and Maguy Le Coze with food prepared by Daniel's
Daniel Boulud.
"You're really starting to see all the same
people here in Miami," Lenz says. "You see them in
New York and then in the Hamptons and then here."
Like at December's Art Basel Miami Beach, where
it seemed like half the high-end real-estate brokers
in Manhattan were in attendance. In fact, one of the
biggest Art Basel parties was the launch of Mondrian
South Beach, a hotel-condo project handled by
Corcoran Sunshine Marketing.
When we visited Miami in November during the
Miami Book Fair, 40 Mercer and William Beaver House
developer Andre Balazs, who lives in SoHo, threw a
party at his Raleigh Hotel in South Beach for a book
co-authored by Kurt Andersen, who lives in Brooklyn
Heights.
But perhaps the best example of the eerily close
connection between New York and Miami is this: Lenz
was recently jogging in South Beach when she noticed
a familiar face on the boardwalk. That's not exactly
a remarkable occurrence, but "the last time I saw
the guy was that same day in the elevator in the
Park Imperial," she says, referring to the West 56th
Street building 1,300 miles away from Ocean Drive.
"It's so beyond bizarre. How likely is that to ever
happen in your lifetime?"
The way things are going in South Beach, it soon
might not seem that unlikely at all.