Miami Condo Market and Lifestyle Updates
Edgewater Neighborhood Sees Rising Land Values as Developers Rush to Purchase Parcels

Edgewater Neighborhood Sees Rising Land Values as Developers Rush to Purchase Parcels

by Sep Niakan | August 06, 2013

The previously run-down neighborhood of Edgewater is experiencing a development renaissance as many developers are swooping in to scoop up land parcels at an impressive rate. To wit, Jorge Perez, one of the great American real estate powerbrokers, recently shelled out $29 million for a waterfront site that just last year sold for almost one-third the price. Land values for inventories on Biscayne Bay have skyrocketed from an average of $50 per square foot to $300 per square foot in a very short time period.

The shortages of available properties in Downtown Miami and Brickell are only fueling the desires of developers to purchase a piece of the Edgewater pie. Edgewater has experienced such elevated property values in the past as real-estate speculation drove land values up during the lead up to the 2007 recession. After the crash, Edgewater real estate sold at devastating discounts.

In order to defend against another price freefall, developers are looking to South American financing structures for instruction on how to finance their own properties. Such financing schemes require a down payment of 50 percent of the sales price. Argentinian migrants, Jorge Luis, Carlos, and Martin Melo built their first residential tower in Edgewater during the recession and closed in 2012 when units averaged $260 to $300 per square foot. The profits they have earned from the use of South American financial structures have been used to build approximately 2,500 more units in nearby areas.

Once a seedy district north of Downtown Miami, Edgewater is a poster child for Miami’s housing recovery with its transformation to a trendy, skyscraper-ridden, emerging locations. According to Jaret Turkell, a director with real estate investment firm HFF:

Edgewater has become one of the hippest, most chic places to live, driven by its proximity to the Design District and Midtown. It’s a place people want to be.”

The biggest draw to Edgewater remains its bayfront property where it can provide picturesque views of Biscayne Bay, all at a lower price than in the ever-depleting markets in Brickell and Downtown. The neighborhood’s layout also works well for high-rise condos which also give access to the area’s main thoroughfare Biscayne Boulevard. Permissive zoning laws for high-rise buildings also attract developers looking for special sites to build innovative structures.

Edgewater’s popularity and market resiliency resides in its ability to continually provide unique opportunities for developers looking to invest in an up-and-coming region on the cusp of a real-estate resurgence.

 

The southern of Edgewater (Downtown Miami)
with 1800 Club (Center) and Paramount Bay (Right)


Image Source: Wikipedia.com

Recent posts

Lifestyle

Miami for Wine Lovers Part 1: Top Wine Tastings and Events

by Sep Niakan | July 18, 2017

Who needs Napa Valley when Miami has a flourishing wine culture? This series of blogs is dedicated to all the wine lovers in Miami. In this part, we are covering events and tastings across the city that will acquaint you with wines from around the...

Lifestyle

Editorial: Traffic-Busting Transit-Oriented Development of Condos and Apartments in Miami

by Sep Niakan | July 18, 2017

We are all familiar with the pain of Miami’s current traffic situation. But, our prayers are finally being answered! The long-time need for transit-oriented development is being addressed, with almost nine projects on the drawing board and one...

Real Estate News

Brickell Heights Has Arrived! A Review of the Condo and its Amenities (Photo Blog)

by Sep Niakan | July 18, 2017

Brickell Heights Has Arrived in Style! Brickell heights started closings in June at a rapid pace, and so far I have seen and heard nothing but good things about the building and have had great experience with the staff and management there. That...

Real Estate News

Miami’s New and Pre-Construction Condo Update: June 2017

by Sep Niakan | July 18, 2017

There’s a lot to report on the pre-construction front for the month of June. Residents of Brickell Heights now have possession of their keys, One Thousand Museum is seeking permission to add a helipad, Aria on the Bay requires a lower deposit...