Ryan & Ana On MIA
Ryan and Ana cover all things Miami development and real estate, the good, the bad the drama.
Ryan & Ana On MIA
Beyond the Beaches: The Making of Miami as America's Next Economic Hotspot
As we raise our coffee cups high, celebrating our 20th episode, We can;t help but feel a buzz that's not just from the caffeine. Join us as we analyze the economic tides shifting Miami into the future. We'll look beyond the sunshine and palm trees to understand how 'money in motion' is not just a catchphrase but a reality reshaping the landscape of talent and finance across the nation. The conversation will take us through the magnetic pull of state tax policies, the newfound workplace freedom courtesy of the internet, and how these migrations are injecting vitality into local economies. Miami's emerging status as an entrepreneurial hotspot puts it at the forefront of America's growth story, and we're diving into all the reasons why betting on this city might just mean betting on the future of the country.
But what is Miami without its mosaic of stories, each tile a tale of resilience and aspiration? In this episode, we pay tribute to legends like Tabor Hollow, a Holocaust survivor whose real estate empire is etched into the Miami skyline. His inspiring narrative from starting with nothing to becoming a city icon embodies the spirit of this metropolis. It's a compelling reminder that Miami is a canvas for dreamers and doers alike. And for those of you wondering how you can leave your mark, take heart in knowing that this city celebrates the audacity to redefine one's life, no matter the origins.
Finally, let's talk bricks and mortar as we explore the real estate ventures reshaping Miami's urban core. From the repurposed dreams of David Beckham's Overtown stadium to the architectural musings in Midtown, we critique with humor and honesty. And with an eye on the sobering lessons of the Surfside condo collapse, we discuss the real-world challenges and market dynamics facing residents. So, tune in, get comfortable, and let's embark on a journey that stitches together the vibrant economic and cultural tapestry of Miami.
Hello everyone. Welcome to episode number 20 of Ryan and Anna on Miami. How exciting is that.
Speaker 2:Wow, I feel like that's quite a milestone.
Speaker 1:I'm going to sip my coffee and toast to that, that's fantastic, we took a little break.
Speaker 2:Yes, because you're both busy.
Speaker 1:Yes, you traveled, you went.
Speaker 2:I needed a vacation. I took a seven-day cruise, which was just wonderful.
Speaker 1:And you had a lot of things happening, correct? Most recently this week I spoke at the first Inman Miami Connect Inman Connect's first Miami event. They hold these big real estate events all around the country and their first one took place at the New World Symphony this Tuesday here in Miami and it was a huge success. People flew in from all around the country and it is no accident that Inman's first Miami event is now because they're recognizing where the money is flowing and in fact, the topic of my talk was money in motion.
Speaker 2:Money in motion. Yes, what does that mean?
Speaker 1:That's the topic they gave me, and they give me these topics and see what I come up with is the impression that I get. But to me that means recognizing what the trends are, rather what the main forces driving the shifts of financial polarities within our nation are. What's causing these shifts? And driving the shifts of financial polarities within our nation are what's causing these shifts? And I actually I led with an Einstein quote, and the quote was it's a whole big paragraph, but basically it's saying, if you have an hour to solve a problem, that he would spend the first 55 minutes thinking of the right questions to ask. And once you think of the right questions, the solution will present itself. And so the question that I then came up with was what is driving this wealth and talent migration that we see around us? If we can identify those fundamental drivers, then we can see will this persist?
Speaker 1:And I had three main points I want people to digest. One was that history never goes backwards and there's this fallacy in human nature to think that that is the case. The other thing is that momentum cycles are real, they build upon themselves, and again, one of my favorite themes of politicians not being aligned with long term prosperity and feeding negative ones. And the third is this concept that I call Long Miami equals Long America. This came to me after David Martin asked me. I've been saying Long Miami for quite some time, but really what do I mean by that? I mean that the human desire to create, to innovate, entrepreneurship, that spirit always, that force, always flows somewhere, and it tends to flow towards the places of least resistance.
Speaker 2:And so yeah, I think Miami definitely has been the place of least resistance for the last couple of years, because not only for COVID, but on the political basis as well. We're business friendly, we're immigrant friendly.
Speaker 1:I think you're right, like there's high quality of life on top of that, yeah.
Speaker 2:It's like water. Like water always finds the path of least resistance.
Speaker 1:It's going to flow. And what I did was to show this flow. I used maps, I used census maps that showed how we literally had arrows showing where the flow of population was going. And then I juxtaposed that map next to a map showing top marginal tax rates across our nation. And sometimes the truth is very simple. You look at those two maps side by side and it could not be more clear that the outflow starts at high tax states that tended to be blue states, that tended to be high lockdown states.
Speaker 1:And I preface that by saying that I have no political affiliation. I'm a registered independent. If anything, I'm more libertarian than anything, but I don't like to have my truth be beholden to any other entity. My truth is my objective truth. It's not tainted by affiliation, and so these maps are very simple things. You see where that outflow is going. And then it's also important to recognize that people who make more money are more likely to avail themselves of the internet and the reshaping of their lives. So I had another chart showing the usage of the internet for hybrid work by income bracket, and the higher up you want an income, the more people use the internet to recreate their lives, and these are the people moving.
Speaker 2:The laptop class Correct. And these are the people moving.
Speaker 1:And the top the laptop class Correct and the top 1% of earners account for over 45% of tax revenue at their local jurisdictions. So you lose 10% of them. You've decimated your tax base.
Speaker 2:That's wild.
Speaker 1:Yep and that really resonated with people because they could feel it happening. We had a lot of people from California in the audience, so I felt a little bit bad.
Speaker 2:But actually no, they loved it.
Speaker 1:I had this one lady. She took a picture of the one data point I had from California. I said there's so many data points we could use showing what a disaster California is, but the one I had was how they're spending billions of dollars to supposedly combat homelessness but they've stopped actually auditing or tracking how they spend the money. They've openly said that they have no idea where the money is spent. So she actually took a picture and she tagged Newsom and she posted it. So the Californians liked it because actually they recognize these problems and it's shedding light on them.
Speaker 2:I don't know about California as a whole, but I know recently San Francisco has spent hundreds of millions of dollars, hundreds of millions of dollars, on homelessness. Yep, just San Francisco, yep. And it's always crazy to me because I know San Francisco is a lot bigger than Miami by like population-wise, but the difference in homeless to the capita. I think Miami, by last count, had 600 homeless.
Speaker 1:That's it, yes.
Speaker 2:Okay and that, remember, miami has reached functional zero, homeless, which means everyone who has, who can be helped or wants to be helped, has been helped as functional zero. We have 600, that San Francisco has about 6,000. Wow, and, like I said, san Francisco has more population but it's a much smaller space. Physical space, yes, most of the homeless and transient and unhoused are in like one, they're concentrated.
Speaker 2:They're all concentrated and we have them here in Miami, but you don't notice them because there's only 600 in there. Spread out, they're spread out. Yep, it's just fascinating to me.
Speaker 1:Yep, exactly. But yeah, this point resonated with all of them and everyone could. A number of people came up to me afterwards and they said that I quantified and charted what they could feel is happening, Because they all feel it. They feel this shift. There's a redistribution of opportunity, of wealth, of creation of talent all those things going on in our country. It's early days, and then Ryan this week posted some great new census data that corroborates the ongoing evolution of all of this.
Speaker 2:Yes, I'm going to pull it up here on my computer, because now we have this capability.
Speaker 1:Fancy, look at us.
Speaker 2:So this is from the next Miami, but it's from the Census Bureau, and we grew 1.31%.
Speaker 1:Yeah, and I dug further into this and it turns out this is measuring growth amongst US cities with over a quarter million population, and Florida and Texas accounted for eight of the top 20. And Florida had three in the top 10.
Speaker 2:Wow.
Speaker 1:And the other parts were again, were highly in line with the patterns that we're seeing where the southeast in particular is taking over. Remember we had that flip last year that for the first time since this was measured, the six fastest growing southern states now account for more of the national GDP than the DC, new York, boston quarter, and that is completely aligned with the census findings. New York was number three for highest loss, actually.
Speaker 2:Wow.
Speaker 1:Yep. And now New York, of course, wants to challenge that, because they think migrants should be added to the census numbers. Okay, replacing taxpayers with tax takers Good job, new York.
Speaker 2:Yeah, what I was tweeting about this week was people have been saying that Florida or Miami Daly's lost population.
Speaker 1:That spun off that Wall Street Journal article that started this incorrect thing.
Speaker 2:Yeah, so for me it was like, okay, miami Daly as a whole maybe lost population, but the city of Miami, which is where we are right now incorrect thing, yeah. So for me it was like, okay, miami-dade as a whole maybe lost population, but the city of Miami, which is where we are right now, gained as we saw, yep, yep, fantastic, and we're building. We are building.
Speaker 1:So we can accommodate people yeah.
Speaker 2:Oh, I have a little rant about this and I've ranted about this before, but there's been a lot of articles recently about rents declining, plateauing, occupancy is not going as high and I'm like I was like what do you want? Do you want rents to go up forever?
Speaker 1:They basically doubled in a very short period of time.
Speaker 2:I know, I am very aware of that fact.
Speaker 1:Aren't we all.
Speaker 2:And there's this weird it's not sensation there's this weird vibe that people are like if it's not doubling or tripling in a year, it's bad news. Everything is crashing down and I'm like first of all, we had COVID happen. Everyone that, rather, moved here. It sent rents through the roof and it also caught developers flat footed, because, by all, basically, miami has always had a cyclical market, and it also caught developers flat-footed Because, by all, basically, miami has always had a cyclical market. We have a boom and a bust blah, blah, blah, blah and developers build around that boom and that bust. In 2020, by all accounts, it should have been the end of the last boom so developers were spinning down their products. They weren't starting new ones. Everyone on the other moved here and they're like like, oh shit, like now we have to build, and so we built so much over the past four years. Everything is delivering at once, mainly, and it's putting downward pressure on rent, fantastic Hallelujah.
Speaker 1:They doubled basically in a few years. This goes back to what I keep talking about recency bias. People have this weird thing they forget, people have very short memories and they forget what things were like even two, three years ago and they think that how things were is how things will always be. And this example that's really ridiculous, because rents almost, they basically went vertical, they spiked, yeah, they can't go on, yeah, and this is healthy, like to be able to continue living in Miami.
Speaker 2:I would like to, and I make decent money and yeah, I felt the stretch of it Like I felt it, so I would prefer that we didn't go hyperbolic every 10 seconds in rent. It gets crazy. And then also there's a ton of places developing opening and most of the multifamily ones are now are offering a month, two months, free rent.
Speaker 1:Fantastic, although a stat in that is that we have more multifamily units under construction as a percentage of existing inventory than any city in America.
Speaker 2:Yeah.
Speaker 1:That's great. It's fantastic Like supply and demand yeah.
Speaker 2:I was. It's funny, I I went a little viral. I don't know if I sent it to you, but I took a picture of the Plaza Wynwood. I just took, you know, my normal construction photos that I take and it went like super viral. It got 300,000, 400,000 views oh amazing. And it was very interesting because people, like some certain local personalities, retweeted it and then it went viral and basically everyone was lamenting the gentrification of Wynwood and there was two parts about that gentrification of Wynwood and there was two parts about that. First of all, the plaza is adding probably, I think, 500, 600 units of new housing, which is fantastic. Second of all, with your recency bias thing we're talking about, people forget that Wynwood went from like the hood, like you didn't go there without unless you were strapped up to a sort of grungy arts district, to now a arts plus residential and tech.
Speaker 2:In a pretty short span of time, in a very short period of time and people are acting like I would say, even, maybe even previous to 2005, even back then. That's when we're gentrified, that's when it started.
Speaker 1:It's been a while now. For Winniway it's been a while.
Speaker 2:And this is like the second wave of it, and people were little I can't even touch.
Speaker 1:Professional complainers yeah.
Speaker 2:And I was like, please leave my city. Like talking to the tech bro person and I was just like what my city? I know I was just like. I was like what? What? My city? I know I was just like. This is another thing. People, how long have you been here? 11 years? Okay, I've been here eight years and people literally tell me to go back to where I'm from.
Speaker 1:Really, yes, no one says that to me. After eight years, that's crazy.
Speaker 2:Yeah and listen. I may work in tech or did work in tech, but I've been here for eight years. I'm basically like a local and I experience a lot of the same things. Now that locals who lived their whole life have been here, that's right, so it's just like people tell this to me. That's crazy Miami's a city of immigrants. Yeah, I know, go back to wherever.
Speaker 1:You go, man. Ciao, I was like what I've never gotten that Probably they're scared of my jujitsu.
Speaker 2:Yeah, Speaking of immigrants, I think we should take a moment and really talk about the life achievements of Tabor Hollow. Yes, he died two weeks ago, a month ago at 96. And this guy, we've talked about him before, but this guy had quite the life. He was a Holocaust survivor.
Speaker 1:Came here with nothing.
Speaker 2:Yeah, nothing. And he built some of the most iconic buildings and complexes here in Miami. He did. He built what we're in right now. His East Coast Realty was a partner in building the Omni Mall.
Speaker 1:Oh, that's right. I forgot that, that's right.
Speaker 2:They weren't the main, they were a partner in it. They built the Panorama.
Speaker 1:Tower, the Panorama, the Opera Tower, the Grand, the Venetia, the building in Brickell that has the columns oh, yeah, yeah, yeah, oh, that's right.
Speaker 2:Yeah, yeah, yeah, they built that and they also sold, I think, one of the most expensive waterfront properties to Ken Griffin.
Speaker 1:Okay, that's right, he's building his office building.
Speaker 2:But yeah, he died at 96 and he had quite the life.
Speaker 1:Good for him. I love stories like that.
Speaker 2:Yeah, I mean he had a very full life and he changed Miami skyline forever. That shows you what's possible too, and he came here with literally nothing.
Speaker 1:With literally nothing.
Speaker 2:Yeah.
Speaker 1:Like post-Holocaust with post-World War II with nothing. Yeah, that's remarkable.
Speaker 2:He also had cancer and he was that's right.
Speaker 1:His nose was like missing, that's right.
Speaker 2:Yeah, he looked like red skull, yeah, yeah, but yeah, I mean I love stories like that yeah anyone there sitting at home complaining feeling sorry for themselves.
Speaker 1:Stop it. Yeah, honestly, stop it. It's one of those things. It shows you what, what again, what the human spirit is capable of yeah, yeah it's.
Speaker 2:I just I do wish he he could have lived to see. Um, at least them start on One Bayfront Plaza. That would have been nice. He saw a lot. He saw a lot and I think his kids run the business, so it's all in the family.
Speaker 1:I find people like that so fascinating, because you have to have a very limitless outlook in your mind to be that person.
Speaker 2:And even in Miami he didn't have an easy life. He built the Venetia back in the 70s and 80s and that was around the time that there was the first sort of crash in the economy in South America and he lost it, I think in foreclosure or something whatever. The bank took it. But yeah he. Then he basically would do a project, he'd learn. And then one thing I did remember he said he never would do more than one product at once and he did his own money into it. When he built the Venetia they also built the Grand and this and it overloaded the company and they were overspent, overlevered or something yeah.
Speaker 2:So he only does one product at a time and he then doesn't start another product until that one is sold or almost completed. Okay, worked for him. Yeah, it was really fascinating.
Speaker 1:That's like an end of an era when somebody like that dies. Yeah, that's amazing.
Speaker 2:Yeah, I don't know. I don't know if there's many other. I mean, we have a lot of new developers but I don't know if there's any families like that left in Miami, that sort of did, that sort of, because even related is new to Miami.
Speaker 1:Yeah, paris's kids are involved. The company.
Speaker 2:Yeah.
Speaker 1:But he's not as old as Paris, oh.
Speaker 2:Paris yes.
Speaker 1:Yes, both his sons are involved in the business.
Speaker 2:Yeah, but they got here like in the nineties right, yeah. Tabor Hollow has been here since the sixties.
Speaker 1:Yeah.
Speaker 2:Correct, right. Yeah, the tabor hollow has been here since the 60s. Yeah, correct. Anyways, it was just really fascinating and yeah, so I love this.
Speaker 1:It's fascinating. It's one of those things which really it's like everyone. Stop feeling bad for yourselves, get off your butt, define your life to be what you wanted to be.
Speaker 2:If somebody like that could come here with nothing yeah, and, like I said, not to talk about too much like that, he built the structure that we're in and this was the first mall in miami back when this neighborhood that we were in was literally like one story houses and that's it. That's amazing. Yeah, so it's pretty cool. There are a lot of actual things to talk about. One of my favorite is Nativo is opening finally.
Speaker 1:Yes, I was just in it last week.
Speaker 2:I still need an invite. I never know where I'm going okay.
Speaker 1:So I meet Russell, I get on a bike and I follow him. That's basically how it goes, and I never know where I'm going to end up.
Speaker 2:I'm going to put a GPS on you so that I can just like.
Speaker 1:And you got to put a GPS.
Speaker 2:I'll be like where am I, Ryan? I?
Speaker 1:really don't know, and that's the truth. Like half the time I don't, and you have to keep up with him. He's not going to wait. So it's like we're going like 23 miles an hour somewhere. He's like bicycles, but Antivo is looking great.
Speaker 2:Yeah, it is, and I took some photos. I didn't. I don't have them on here, but I really like this project. They put a lot of thought into this streetscaping, which you really can't tell here yes, they did.
Speaker 1:That's going to be an outdoor. There are a lot of okay, so along the street there they have a lot of like food that you can get off the street, like a window that opens over in that. Yeah.
Speaker 2:Bodega Taco is going over here on the east side and I think his daughter is doing this restaurant. I'm not sure she's involved with Bodega.
Speaker 1:That's a family business, oh it could be that one there on the ground floor has a huge pizza oven. Russell said it's the best pizza oven in Miami. It's like a multi-hundred thousand dollar pizza oven. I was told Wow, yeah, I know, but restaurant spaces are really quite nice at Nativo. I really like them. The first one, the first floor one, is huge. They have the one you can get street access from. They have other ones up on whatever floor it is, it has an outdoor, indoor one. They're really nice. There's a banquet hall. There's all sorts of stuff.
Speaker 2:Nativo.
Speaker 1:Steakhouse also Lots of meeting spaces, yeah.
Speaker 2:For me. I really like the finishes at Nativo. I haven't been in it obviously.
Speaker 1:Yes, the tiles are really pretty too. They did great work with tiles.
Speaker 2:There's. It's like you walk in and it's just like drywall and sheetrock. Yeah, just.
Speaker 1:Yeah.
Speaker 2:I like when developers actually put thought into the textures and the finishes. I'm not saying like this, but I'm saying like they make it feel.
Speaker 1:Yeah, actually, textured is a good word. Nativo has really nice textures. Yes, the wall finishes, the tiles, everything else. All the spaces feel really good. The rooms look great. The color scheme is great. I've been to many of the rooms. They all look fantastic. Just, it's a great project.
Speaker 2:Have you ever been to the Wynn in Vegas?
Speaker 1:No.
Speaker 2:Okay, the Wynn in Vegas is one of my favorites, built by Steve Wynn, obviously. But the cool thing about the Wynn Vegas is every single surface has a different sort of texture. There's no, there's no like drywall walls. Right, there's something on every wall and obviously that's very expensive, but I do appreciate it and that's what Nativo reminds me of it has that nice textury feel everywhere and they're doing like lighting.
Speaker 2:On that restaurant we just showed they have like bulbs, like the string bulbs. It looks so good, it looks really nice. Yeah, I was taking photos of it last night. It just feels good, it just feels good, it feels substantial, it feels nice.
Speaker 1:Lastly, I'm very excited because the pool deck is nice too.
Speaker 2:Yes, I can't wait to go see it Someday.
Speaker 1:I'm being guilted here, can't you tell?
Speaker 2:Someday I'll earn my right to go see it Also. Oh, because it's just south of Miami World Center and it's not a part of it. But they definitely collaborated on, like the sidewalks, because Miami World Center was like a-planned sidewalk-y thing and a street-scaping program, and so it goes well with it. My World Center is on the other side of the tracks and it extends to 6th Street. Speaking of 6th Street, I was walking around and 6th Street is wild. Have you seen all the projects there besides Nativo?
Speaker 2:There are tons Everywhere you look. There's Nativo, there's 600, my World Center, there's Ocon Tower, the Crosby and Mellow's Downtown 6, which isn't broken ground yet, but there's four or five projects in progress on a street, one block in a one block radius.
Speaker 2:This is true, and the other thing that's cool is that all those projects are a little different. You have two or three of them that are condo, short-term rentals, you have Mellow, which is attainable, and you have Ocon, which is ultra luxury plus hotels, so you have almost every level of housing, or accommodation. Like one product. Yeah, you have every level of product in a very small area, which is a good thing. It's a very good thing. So I'm excited about Nativo and I'm excited for the food options there as well.
Speaker 1:Yeah, the food options are great yeah.
Speaker 2:The.
Speaker 1:Amman is like. The spa is very nice too.
Speaker 2:Oh, yes, need to go. Yeah, do you know if they're going to offer? One that I'm excited about is do you? Remember when David Beckham was trying to do his stadium in Overtown. There is a giant piece of land there by the river and this was approved by the county and it is a really cool project 1,200 units county. And it is a really cool project 1200 units, mid-rise. Looks like about 10 to 8 floors. Oh, it's tara. Okay, uh, it's by tara. He's working with tara, but it looks really nice.
Speaker 2:It does look nice and this is like dead center overtown fantastic so I like the fact that it is an overtown, but they actually did put some effort into the design. The scale is nice. The scale is very nice and I like the fact that it looks like it's going to have shops around the edges. It looks pretty nice, that looks great it does. Here's where it is. So the fifth.
Speaker 1:Overtown PMG has a whole micro unit thing planned there too. Yes, they do, yeah.
Speaker 2:Somewhere, yeah, somewhere. Yeah, I think that's in my update list here. But, yeah, I was really excited by that because it's a huge empty lot and I think it would have been cool to have the stadium there. But it's okay, I can survive without it. But that's a very good use of that piece of land, agree, and it's going to be mixed income as well, so it'll be affordable and market rate, so that's very exciting. And then we'll also talk about let's go here and then let's go to Brickell. This is Summit.
Speaker 1:Brickell.
Speaker 2:This is the chicken lot. That's what it's called locally. So the chicken lot is right next to Mary Brickle Village. This is the metro, rail and mover right here and this is going to be a 60-story building right there.
Speaker 1:Wow.
Speaker 2:Oh, this is Access Brickle right here for reference. I think it's a that lot's been vacant for 25 years. It's very exciting.
Speaker 1:That's super. They should put a statue of a chicken in front of it, just to commemorate.
Speaker 2:They have a little Havan like on the corner.
Speaker 1:Exactly.
Speaker 2:It's called Chicken Lot because Miami-Dade has chickens that are survivors of.
Speaker 1:Santeria.
Speaker 2:And then they escape and multiply.
Speaker 1:The lucky survivors.
Speaker 2:Yeah, let's jump over to MidCat.
Speaker 1:I once made a joke a few years ago I saw chickens on the street it's probably eight or nine years ago by Design District Okay, and I made this funny joke. People say bye when there's blood on the street. I said bye while there's still chickens roaming the streets. I was right, I'm dead. I actually made a map I posted on LinkedIn. I made a map showing the spot where I saw the chicken and its distance to the Hermes store. It was really close. I said look, there's still chickens roaming free. Now is the time to buy.
Speaker 2:My mother came a couple months ago and she was my mother loves chickens. We had them growing up and she was just so impressed. I lived, had them, we had them growing up and she was just so impressed. That was I lived in, because to her, miami is basically new york city in her mind. So the fact that I have free roaming chickens fantastic. Just roaming around this urban core is like how cool.
Speaker 1:I like the chickens too.
Speaker 2:I was gonna kick out of them there's chickens at the metrum yeah, I've seen them, yes, and they live, they live on like the palm trees and on the lights.
Speaker 1:They're just, they just chill there All sorts of wildlife here.
Speaker 2:So I was tweeting yesterday because that's what I'm always doing about oops, I can click this. Come on About Midtown. So Midtown is finally starting to fill out. It is this is Midtown 1. This is 36 right here, and then Target is like over here, this is going to be a very large project. This is Terra. I think as well Terra's being quite active, aren't they? Yeah, I think they gave up on the Herald property and put all their money into other things. But it looks nice. It actually looks like a Nativo cousin.
Speaker 1:And Harvey's building Nativo up in Fort Lauderdale too.
Speaker 2:Yeah.
Speaker 1:And he has plans to do it actually around the country.
Speaker 2:Yeah, the other thing is, everyone uses architectonica and they all look Like that, like that. Architectonica only has one.
Speaker 1:Pick a template, modify a little.
Speaker 2:They either look like this or they have like wavy or pointed balconies.
Speaker 1:That's it.
Speaker 2:Those are the only templates that they know how to do and people like always like yell at me because Architectonic is like a local thing, but I'm like they're just so boring and you know who loves using them my favorite developer. They use them like exclusively. Who's your favorite developer?
Speaker 1:Oh, mellow, no Related Related. Oh yes, related Sarcastic related yes. Okay, sarcastic favorite.
Speaker 2:Sorry, that's what I meant Like related and related and. All the things, all of them Architectonica are like this yeah, I swear they have a room in their headquarters. You just walk into. It just has one is like a box with like exterior, not exterior like a. I was like it's like an exoskeleton on the outside, like icon brickle and a pick. You're like I want that one in blue and I want the finishings to be.
Speaker 1:I want the finishings to be. You know what I want? Do we have to say listen, I don't like ragging.
Speaker 2:Anyone but related group does their thing over and over again. They get a brand, whoever it may be SLS or otherwise, they market the hell out of it. They build it to minimal, viable product MVP and that's it Rinse and repeat.
Speaker 2:Yeah, rinse and repeat, and we've talked before. It always ends in lawsuits and fun things like that. So anyways, moving on, the other I want to talk about Midtown also is this is Midtown 7. That is over to the south a bit. Let me scroll down. I wish Next Miami used better maps, but yeah, so it's down south towards 29th Street, but it's nice. It's an AMI project, multifamily, I like it goes with the other one they just announced. I think it's probably Architectonica too. I would guess. It doesn't say it, but I would guess so yeah. However, what I was tweeting about in Midtown was that Midtown and all these projects, it's just it's bad. It's good projects, but Midtown has no transit and it has two entrances, 29th and 36th, because the railroad tracks are there and you're all these places have parking garages. You're adding thousands of cars with no transit. The next probably five to ten years. You're just not going to drive to midtown, I don't, you'll just have to walk, which is not a bad thing.
Speaker 1:It's not a bad thing.
Speaker 2:But it's just. I think there's a Target in Midtown, that's right there. I drive to Dayland or up by Costco in North Miami. It's easier to go that far versus to Midtown, because Midtown is just such a.
Speaker 1:It's a little bit of a concentrated thing there.
Speaker 2:It's so concentrated and just getting in and out of there takes 30 to 40 minutes.
Speaker 1:That's how I feel about Brickell. Yeah, exactly.
Speaker 2:It's why I don't live in Brickell, because it gives me anxiety.
Speaker 1:It has those congestion points that you have to go through. Yeah, you have to, yeah, but at least Brickell has some sort of transit.
Speaker 2:Yes, it's true, is just doesn't Right, so we'll have flying cars.
Speaker 1:One day It'll all be salt, We'll have Jetson style. I want that since I was a little kid Jetson style cars logo zoom.
Speaker 2:Yeah, so all right. Next neighborhood up is going to be downtown slash. Let's talk about this one. This is Clear, which just popped out of nowhere. It's by the Miami Tower, sort of on Flagler.
Speaker 1:What is this? Condos or multifamily I?
Speaker 2:think it's condos.
Speaker 1:Okay.
Speaker 2:It's right by the Miami Tower. Who's building it?
Speaker 1:I've not heard of this?
Speaker 2:Yeah, they just popped out of nowhere.
Speaker 1:Okay.
Speaker 2:Clear. Kobe Carr, blue Rich I don't know who that is. Yeah, I think they're Canadian. Okay.
Speaker 1:When I read.
Speaker 2:But yeah, literally this popped up. This is 60 stories.
Speaker 1:Wow, and where is?
Speaker 2:this, that's the Miami Tower.
Speaker 1:Okay.
Speaker 2:And then it's to the south. Wow, but yeah, look at it. I would presume, with this level of amenities, it's probably condos.
Speaker 1:Probably yeah.
Speaker 2:But yeah, that is. I say this that is the crazy thing to me about Miami is that we still have the lots to do this.
Speaker 1:Lots of them no pun intended.
Speaker 2:Oh, whoops, but yeah, we just have that randomly in the most urban core, correct. Just we can just pop up, which is pretty awesome, because we can just pop up a 60 story.
Speaker 1:We're building for the future. In New York, you have to tear down and repurpose, which is very expensive and hard to do, but we can build for the 21st century.
Speaker 2:Speaking of the future, this is a project I am extremely excited about. This is called Metro Center. Metro Center is a redevelopment of State Center Government Center in downtown, where the library is and it's like on Flagler. That's the Stephen something government building. But anyways, it's a huge amount of land and the government, the miami-dade county, wants to turn it into brickwell city center, but with a public partnership, private partnership, and it's a huge amount of land and they want to put in like a ton of buildings and like civic services, like a school. Let me see if I can scroll up and see where it says the. What it says it's 27 acres, yeah, and they're going to demolish like basically everything around the Stephen Government Center thing.
Speaker 1:Oh wow.
Speaker 2:So it's a huge project. But the cool thing is it'll be mixed income, so you'll have actually affordable housing market rate condos workforce. It's really just for reference. These are just massings, they're not. They've whittled it down to three developers who will be partnering, but they haven't yet chosen, so this is just a massing. Very cool. Yeah, it's pretty neat, and then I think that was it for downtown. Was there anything else? Oh, wynwood, we're talking because we haven't done this in a long time.
Speaker 1:So we lie here. We just want to get. No one is building like we are.
Speaker 2:I know.
Speaker 1:We have a lot of developments to get through. Other cities are not building anything.
Speaker 2:Yeah, let's talk about this. One's pretty cool. I forgot about it. It's called I-5. Okay, and it's co-living, like society, but the bedrooms start at $1,500, I think Okay, which is good, that's not bad at all. Now do I wish you could get an actual one-bedroom flat amount, of course, but we live in reality here. This is perfect for the offices they're building in Wynwood, like the tech offices, just like a single guy, a single girl who doesn't have anything else and they just need, like a bedroom to go.
Speaker 2:So these are apartments with multiple bedrooms and people rent bedrooms and they have some central management systems renting them out and blah, blah, blah. Okay, it's a very nice dorm, yep, but the cool thing I like about it is that if your roommate defaults or doesn't pay the rent, it's not on you.
Speaker 1:Because they keep it separate in their system. They're billing people separately.
Speaker 2:Correct? Oh, if they default, they just kick them out and get a different person.
Speaker 1:That's great. People have done this all throughout history. New York in the 1950s had co-living places not with tech, obviously but, they had these buildings for young single women, for all these things.
Speaker 2:This is a known concept.
Speaker 1:It's not something new, didn't they?
Speaker 2:just call it single room occupancy or something like that.
Speaker 1:Yes, correct, that's right. Seattle has built a lot of them too.
Speaker 2:And I think it's great because you need to build for what the market needs.
Speaker 1:It's a solution. It's fantastic.
Speaker 2:Yeah.
Speaker 1:Yeah, If you're new to a city, you're in your early 20s, you want to get your feet on the ground. You have a new job, whatever it is, that's fantastic. What an easy way to get there and be in a prime spot where you need to be and start your life. It's great.
Speaker 2:Yeah, also, society Wynwood actually is crazy. It's 24th or 25th and on one end you have Society Wynwood, which is huge. It's like 400 some units. On the other end you have AL my Wynwood that just opened and that's 800 units on just. And on that note, if we're talking about, I think, before we started doing this both those places are offering two months free rent.
Speaker 1:Wow that's great, fantastic Pressure off the rental market. Yeah, wonderful.
Speaker 2:Yeah, I am very happy about that. I'm very happy living where I am now. I like my place. But in the off chance that they jack my rent to the roof this November, I will now have options.
Speaker 1:Which probably means they won't jack your rent.
Speaker 2:That's how the market tends to work. I'm hoping I already have a strongly worded letter set up if they try it. Speaking of Wynwood we were talking about this before we started recording, but the office drama in Wynwood I wanted to touch on this is from the Real Deal and they're talking about the gateway, because the gateway at Wynwood just went into foreclosure or the mortgage went into servicing or something, and I was talking about it and it was interesting, because the article is written negatively, as the presses want to do.
Speaker 2:Basically, all they're saying here is there's a correction.
Speaker 1:Okay, that's it.
Speaker 2:That is the drama. Mm-hmm. Okay, that's it. Like that is the drama and, like I was saying, with rents before, all the rents in Miami-Dade residential and commercial went through the roof in the past two to three years. That's right, it went through the roof, that's right. All that's happening here is like we're just getting a little correction, which is good, which is very good Because this is going to allow people who could not afford for to afford it. Correct, because the real, the owners are going to have to adjust what they're charging in rent. It's that simple. So, yeah, I was the article, I read it and I just like rolled my eyes backwards.
Speaker 1:Reporters have a political bias through which they see the world and I think in many ways going back to that map that I used at my Inman presentation showing the outflow from high taxable estates that were heavy lockdown to us. So it existentially bothers them that we're prospering because we're, in their minds, representing a belief system that is negative and contrary to theirs. So we, like, should not be prospering because we did all these things that they think are bad.
Speaker 2:Yeah, and they're like looking for the downfall.
Speaker 1:It bothers them on an existential basis that life is prospering here, because we're not aligned with their political ideologies.
Speaker 2:Yeah, I think it's also going back to what I said before or before we started recording is that people were so used to Miami for a hundred years having this boom and bust, a dramatic boom and bust cycle that it's still there, it's just a little less steep, correct, yeah.
Speaker 1:And one point that I've made is that we want to look at trends and where the country is going. We have these prime examples of people who have made mega fortunes due to their ability to predict trends in the early days, such as Jeff Bezos. Such as Ken Griffin, another one who moved here, that's right, I'm blanking on his name, correct, yeah, yeah, yeah.
Speaker 2:Something. So Another one who moved here.
Speaker 1:That's right, I'm blanking on his name, correct, yeah yeah, yeah.
Speaker 1:Something. So we have these guys who have made fortunes literally predicting the flow of commerce, trends, all those things, and they are choosing to move here. So when I look at what people say like words are cheap, anyone can say anything they want. It's irrelevant, right? So if you're going to take somebody's advice, you shouldn't look at what they've achieved and how they've lived, and that is something that is a good example to you. Then maybe you should listen to what they say, because their lives are a reflection, not their words. And we have these men who have made fortunes at this choosing to move here. Go all in Miami related companies over. Yeah, steve Ross. So all these guys are going all in on South Florida. Meanwhile, we have reporters with socialist leanings trying to cast dispersions.
Speaker 2:We'll bring it up here, but there's always one that I send you and I can just I can see the eye rolling every time I send you an article.
Speaker 1:This is what I mean. So where should ones hook their wagon? What's it called Following or in the wake of people who, again, who've made fortunes in the open markets predicting things, or journalists on salaries with socialist tendencies?
Speaker 2:Yeah. So choice is yours it's. And speaking of negative stories, this one is interesting. This is the one about the condos. It was it's like a recap three years after the Surfside collapse, oh yeah, and how it's affecting condos. This particular one is the Cricket Club Yep In.
Speaker 1:North Miami. This was in the journal?
Speaker 2:right, yeah, it was in the journal and basically they just didn't reserve any money for the past 20 years.
Speaker 2:A lot of buildings are in this For like 20 years and what happened is this building, like a lot of others, has older folks in it, folks that cannot afford. They're on fixed income, fixed income and they cannot afford these. I think this person got like a 50, thousand or thirty thousand assessment, assessment and the whole building needs to be like gutted and redone. That's the basic storyline, but they just didn't do it for the past 20 years and so now they cannot give away their units. Yeah, exactly, they literally can't exactly, they're underwater on these units. Yep, and I think maybe was it you who was sharing or someone else. Was it omar talking about, like, how all the inventory in Miami-Dade is over 30 years old?
Speaker 1:Yeah, it was in the ISG report. Craig put that together in the ISG report.
Speaker 2:Okay.
Speaker 1:Yeah, correct.
Speaker 2:Yeah, it was just because there's no inventory. That's new. Everything is like 30 years older, that's right.
Speaker 1:Actually, I did a lot of press post-Champlain Towers talking about what I thought it would do to the markets and I said that it would actually bifurcate the market even more, because we have the segment of our market that's benefiting from the wealth and talent migration, which tends to be new product, and then the old segments, which are the ones that are feeling the brunt of this rule change, because they had those people on fixed income, blah, blah, blah, and they have this problem with their reserves.
Speaker 1:And that actually is exactly what's happening. So that segment of the market is suffering. They can't give them away Because at that point it's like a boat You're just pouring good money after bad.
Speaker 2:Careful of your cup there.
Speaker 1:Oops, sorry my cup it's empty now.
Speaker 2:Okay, good, I drank all that coffee.
Speaker 1:It was like balancing on the edge, but yeah, our markets are behaving differently the segment that's attracting wealth and talent versus the old segment that's getting hit by this.
Speaker 2:Yeah, People in the cricket club are going to have a choice to make. They can do the whole boat thing throw good money after bad, or they can sell developer.
Speaker 1:That's their best bet.
Speaker 2:Yeah, that's their best bet. And also, they're all going to have to work together. They're going to have to swim together or sink together, because with the way that, probably I bet you that cricket tower I don't know this for a fact, but I bet you they have the 90% H-way termination in the docks Right and, as we saw with Biscayne 21, one person or two people can stop the whole process. That's crazy. So these people are going to have a choice to make and it's not pretty. But this building, I think, will be fine because it's in a very good location and it's basically on the peninsula, so it has preserved views all the way around. So they'll probably be fine. Someone will pick it up, probably a related group.
Speaker 1:The thing is it takes some organization to swim together, whereas sinking together will just happen. Yeah.
Speaker 2:But I think because when does the new thing kick in Next year? It's like January, right?
Speaker 1:Something like that. I'm not sure, but next year yeah.
Speaker 2:They. I'm like I'm not sure, but next year, yeah, it's. They're going to have to choose, because the money they have to have the money. Do you know what happened? They don't have the money, I don't know. I don't know, they just do. They get an unsafe building.
Speaker 1:Or it affects their finance. I don't know. Do they get financing? I don't know.
Speaker 2:It'll be interesting, but anyways, it's just Obviously. The journal thought it was interesting, but you've got the boomers there, so they bought for $490,000. They spent $100,000 on renovations and now they can't sell it. Yep yeah. So it's going to be sad, but I think we don't want another Champlain Towers.
Speaker 1:No, buildings should not fall.
Speaker 2:Yeah, ever. And we know for a fact that unless H-ways are forced to, they're not going to do anything.
Speaker 1:So there were red flags in that building for decades, yeah, decades.
Speaker 2:Yeah, decades, literally, since it was built.
Speaker 1:Yes, and that cricket thing was built at the same time, oh, and so were many.
Speaker 2:The cocaine era of building in Miami was like a giant boom. They built a ton of stuff.
Speaker 1:They had to put that money somewhere. They did.
Speaker 2:But yeah, I thought that was an interesting story and I'm not entirely sure what's going to happen there.
Speaker 1:Yeah, their best bet is a buyout.
Speaker 2:Yeah, yeah, I think that is basically the story that we had for today. Exciting.
Speaker 1:We're back, everyone. Yeah, we're back. Do Exciting, we're back everyone.
Speaker 2:Yeah, we're back. Do you have anything else you want to share?
Speaker 1:No, just that. Again, I spoke at this Inman event the first Miami Inman Connect event and it was really amazing to see and talk to all the people who came in from all around the country and they all, many people, told me that they felt what we were saying and they all feel this shift that's happening in our country. And it goes back to the point that I'm saying that it's early days and that people should be excited about it Because it is an opportunity. What is it? Opportunity is getting redistributed across our nation and we should all recognize that and align ourselves with it.
Speaker 2:Yeah, we are lucky to be here, me and you.
Speaker 1:That's right.
Speaker 2:And it's like I like doing this podcast because I think we don't have, we're not selling anything directly by this podcast. We're talking about Miami and the projects. I do it because I like it. You do it because you like it. I know you're an ex-realtor.
Speaker 1:We like talking it's fun. We like talking about it, we have fun.
Speaker 2:And if Miami-Dade and Florida and Miami wasn't doing something interesting, we would be doing this podcast.
Speaker 1:We don't have anything to talk about, yeah about yeah, exactly, so it's like the fact that we even have a podcast. Talk about whatever the drama is. If we had to talk about New York's pipeline, this episode would have been done.
Speaker 2:A while ago.
Speaker 1:Little Susie's building a tree house over there.
Speaker 2:Oh boy, but yeah, so anyways, we still need to find a guest.
Speaker 1:Yes, we need to book our first guest sometime soon. We will, we'll put him out there.
Speaker 2:Cool, all right. Anyways, guys, thank you for watching and if you have anything you want us to cover or talk about, please let us know in the comments or in the DM. Thanks, guys.
