Shopping center and NYC commercial office space owner, Sam Tawfik, recently shelled out $12 million for 27 apartments off of Miami’s Biscayne Boulevard, with hopes of transforming the up-and-coming neighborhood into a 1990’s version of SoHo.
“This is the time to be a New York seller and a Miami buyer,” said Tawfik. “The upside is better and competition less intense in Miami. Every hedge fund and international investor wants to buy in New York. (Miami’s) Midtown is like a mini-boomtown.”
Dubbing the Miami complex—Midtown, the one and two-bedrooms and penthouse units range between $260,000 and $1 million—no where near coming close to the value of Soho homes worth upwards of $3 million.
“I think to be a mover and shaker in Miami with a New York get-it-done mentality can be very profitable,” Tawfik said. “This area has a cool demographic. It’s chic and sophisticated but not pretentious. You can feel the energy on the streets like it felt in SoHo or Tribeca 20 years ago. Look at those places now.”
Nestled between the Design District and the Wynwood Art District area, Miami’s Midtown has plots of land left to be developed, especially with the rising demographic of young artists who continue seeking lower home prices than their normal area of residency in South Beach.
Senior Vice President of iStar’s Miami developments, Athony J. Burns, proclaims “All of these neighborhoods now have strong infrastructure for residential living. They’re not just barren strips of urban land anymore. South Beach might be the 800 pound with the beach and nightlife, but you can find great value near Midtown.”
“The goal was to buy units that have the highest end user demand and appreciate in value the quickest,” said Chad Carroll, Tawfik’s agent and Douglas Elliman Florida director of luxury sales. “The penthouse market is on fire right now in Miami which is why we included a few of those in our package…. We anticipate Sam making a solid 35% return on his investment within three years.” Chad Carroll had moved from New York City four years ago to take advantage of Miami’s offerings.
As of now, Tawfik has rented out most of his homes, and is collecting a solid $1,700 to $3,000 per unit per month.