Real estate values double in Edgewater Miami
From $11 million last year, a waterfront real estate at downtown Miami sold for $29 million this year, more than doubling its value. The buyers, Miami-based Related Group, also purchased another site in the same neighborhood of Edgewater with New York-based GTIS Partners Lt. for $28.1 million.
Another land in Biscayne Bay sold for $5.32 million, more than half of what the seller paid for in debt in 2010. The buyers were the Miami-based Melo Group.
Yet another waterfront parcel was sold for twice the $9.1 million price tag the seller shelled out in 2011.
This trend in the city’s housing market reveals astonishing recoveries. New condo developments are sprouting everywhere and prices are more than doubling up, showing that the bubble burst was all part of the past.
The neighborhood of Edgewater experienced development boom during the previous burst. Months before the collapse, land values skyrocketed. During those times, it wasn’t wise to invest in the housing market. But that sad tune is slowly becoming livelier as more and more developers are buying parcels at the area. This might be partly due to the slowly decreasing number of potential development sites in the Brickell area and downtown Miami.
Right now, though, most of the projects are at pre-sale stages. Prices, however, are still going up from $400 per square foot. To wit, Icon Bay from Related Group has just recently sold its last units for $500 per square foot.
Right back at Edgewater, Melo Group has starting to pave the way for more developers to try and dabble in the neighborhood’s housing market. Founded by Jose Luis Melo and his sons, the group started their first condo in the city during the recession. They pre-sold more than 90 units at 23 Biscayne Bay to willing foreign buyers.
The neighborhood of Edgewater has shown excellent maturity in real estate development especially for South Americans, who are some of the top buyers. This upturn in condo appreciation was certainly common in downtown Miami and Brickell. Nevertheless, Melo Group has stood ground and firmly believed in the capacity of Edgewater to attract buyers.
Edgewater’s close proximity to three key districts might be its major selling point. Design District, home to high class retail, Wynwood, a major site for art galleries, and Midtown, another dining and shopping center, are conveniently close to Edgewater.
In the past, Edgewater saw a development boom in its housing market as values reached new levels. Buyers were mostly composed of those who plan to strike gold. Still, foreclosures plagued the neighborhood and many properties were sold at significantly lower prices in 2010 and 2012.
This new trend in Edgewater is spearheaded by seasoned developers who know what to look for. Furthermore, this sudden increase in price of real estate in Edgewater is bringing some nervous vibes towards other developers, specifically Stephan Gietl, co-founder of Mckafka Development Group LLC of Aventura. According to Gietl, developers who are paying too high a price for real estate when the country’s economy is still under recovery may see themselves in a wary situation as the country is not recovering as fast as the local market. And with South American countries also facing uncertainties, many buyers may not be able to close once construction has finished.