Developers Plan to Maximize Available Beachfront Space in Miami Beach
Oceanfront views are coveted in part because they’re so limited. But according to Mansion Global, Miami Beach developers believe there’s ample room for beachfront development — through recycling existing buildings.
Real estate consultant Peter Zalewski told Mansion Global that recycling has “been going on for decades and will go on for decades more,” pointing to existing empty oceanfront space that will eventually house new buildings.
Specifically, there’s L’Atelier Residences, now under construction at 6901 Collins Ave. on the site where a Golden Sands Hotel once stood. While developers retained the former hotel’s facade, the inside (to be completed in 2018) will boast 20 different multi-million dollar condominium units, including a six-bedroom penthouse that recently sold for $21 million.
Another example is 321 Ocean, which was built in 2015. The modern condo tower, now in place at 321 Ocean Drive, was previously home to a small apartment building.
Former Miami Association of Realtors President Carlos Gutierrez says old properties outnumber new ones on the water. To succeed with new beachfront offerings, Gutierrez told Mansion Global that developers need to “buy expensive, build expensive, and sell expensive.”
However, buying existing buildings to demolish and rebuild can be cost prohibitive: Beachfront buildings can cost as much as double or triple non-beachfront property. Similarly, refurbishing an existing residential building comes with its own set of problems: The process is slow, and sometimes owners in the existing building are unwilling to sell.
In addition to cost concerns, some developers say they do not want to further bolster the current condo glut. Per Mansion Global, Cranespotters.com shows that of a total of 70 residential projects, 44 (7,185 units) have been revised to either become rental units, be put on hold, or be canceled completely; just 26 projects have been completed as originally planned.
That trend may be changing as reports show gains in selling prices this year: according to real estate company Douglas Elliman, the average sale price for a luxury condo in Miami Beach and on the Barrier Islands was up 9.3 percent.