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
Miami's Real Estate Renaissance: All-Cash Trends, Major Developments, and Future Growth
Is South Florida's real estate market truly in bubble territory, or is there more to the story? We'll shatter the prevailing myths and provide insights that defy the doom-and-gloom narrative. Discover how today's surge in property values is anchored by cash deals and not debt, offering a stark contrast to the 2008 crisis. With detailed stats on all-cash transactions, particularly in the luxury sector, we'll show how this trend is creating a solid backbone for the market. Plus, we'll discuss how low interest rates might alleviate some pressure on the affordable housing segment, painting a comprehensive picture of South Florida's unique real estate dynamics.
From major transactions and luxurious developments to evolving infrastructure and new connectivity options, Miami is bursting with optimism and growth. We'll take you through the exciting projects around Sixth Street—like Atlantic Station and the Hub Residences Miami—and discuss the city's ambitious redevelopment plans. Hear about the transformative impact of Brightline's expanded services and the influx of new airline routes, all contributing to Miami's booming growth. Join us as we share our excitement for Miami's future, and as a bonus, catch a glimpse of our personal schedules, including the Miami ADCC Open and the Pan American Championships.
We are ready, number 27.
Speaker 2:Are we live?
Speaker 1:We are live, oh, already live. Look at that, we're already live.
Speaker 2:You've got to warn me about this, Ryan, before I start saying things that can get me in trouble Before you start spilling all the tea. If people only heard what we say before it starts recording.
Speaker 1:Yeah, 30 seconds before that, we would have been in.
Speaker 2:That's good stuff. Well, hello everyone. So we're going to start off with wait. What episode is?
Speaker 1:this 27.
Speaker 2:27. I like that number.
Speaker 1:Yeah, it's a good number.
Speaker 2:It is a good number. So we're going to talk about cash today. Well, we keep also talking about recurring, click-baiting, negative articles in the press about Miami and South Florida. Yeah, and there's one that I saw recently. It was the Wall Street Journal, again of all things, talking about froth and bubbles. They used the word froth, froth, froth, bubbles. And the question arises how does one define a bubble and what causes bubbles to inflate? And it's important to keep in mind that bubbles are almost always the result of irresponsible usage of easy credit. They're built on debt and then, when the asset class pops, it's because the underlying asset can no longer sustain the debt load and we get this sort of apocalyptic steep decline in values 2008.
Speaker 1:Right yeah.
Speaker 2:And then, in retrospect, we define said phenomena as a bubble, after it popped.
Speaker 1:Yes.
Speaker 2:But you need these conditions. The pop, the descent needs to be possible. It's a house of cards that folds, basically. So I see these headlines about froth bubbles and so forth and I find them a bit irresponsible because all they do is they mention rising values.
Speaker 1:Yes.
Speaker 2:But they don't actually dig into the underlying fundamentals of the market, and if they were to do so, they would see that they in no way resemble that last cycle, because this market was built upon cash to a shocking degree.
Speaker 1:I think Miami has been built on cash since the last cycle.
Speaker 2:Correct, correct, absolutely, absolutely. And then also, I'm going to point out that nationwide there's a very low percentage of people using adjustable rate mortgages, which is also the reverse setup to the previous cycle.
Speaker 1:I think that's good.
Speaker 2:Correct and also nationwide. There has been all this data coming out showing that something like 39 almost 40 percent of houses are owned outright with no mortgage nationwide. Yeah, so there's a real floor on this market, a national level, and then on a local level. It is not, um, some crazy debt fueled thing nationally or here, but when we dig into here, the numbers are really quite shocking. I mean, I I broke them up most recently in a report that I did. Everybody could find an analyticsmiami. I did it by county and then I also did it by it, by price points and by prices per square foot. Okay, and prices per square foot is where it gets interesting because, as I keep pointing out, the higher you go in price per square foot, the shockingly more all cash it is. But even starting at very normal levels. So below $500,000, this is South Florida, so aggregate Palm Beach County, broward County and Miami-Dade County. Below $500,000, single-family homes are 31% cash and condos are 51% cash.
Speaker 2:And then that trends up when we get to $1 million to $5 million. Single-family was 51% cash condos 77% cash. $5 million plus single-family 84% condos, 88% all cash.
Speaker 1:Wow.
Speaker 2:Yep. And now if we go on a price-per-squ. Per square foot basis, it gets even more interesting. Looking at condos, so for all of South Florida, again Tri-County, $2,000 and up per square foot is 84%, all cash. One to two is 83%. Single family 88% and 76%. Same thing. Palm Beach is leading the way. Palm Beach condos past 2,000 square foot 94% all cash and one to 2,000 square foot 94% all cash and 1 to 2,000 square foot 91% all cash. So the market is heavily, heavily cash the whole way through and the higher up you get, the shockingly higher it is in terms of all cash buying percentages.
Speaker 1:I think there might be some bias in there from outsiders that because Miami was so front and center, the last thing that you know, and it was the big short, you know it had it in there.
Speaker 2:All of that cocaine cowboys, yeah.
Speaker 1:So I think that you know the whole, like you know everyone that did ninja loans and all of that, like I think that was very front and center in Miami. So I think they still think that exists.
Speaker 2:They want to think there's still a boom bust phenomenon going on. Yeah, and I get it. It's a past association, but that's not it. And then in meanwhile, in addition to these high all-cash levels, we have inventory levels that are below pre-COVID across the board, to varying degrees depending how you segment, but across the board below COVID.
Speaker 2:So this is not a bubble setup at all. And now, if anything, because the segments of the market that had the lowest all-cash usage were single family below a million dollars. So, if anything, this decrease in the interest rates will help that segment of the market because that segment saw the rapid disappearance of inventory Single family below the median price point. Inventory is down well over 80% tri-county. So if anything, it'll free up some much needed inventory because the single family home market is extremely tight. So it might actually help that market segment.
Speaker 1:Yeah, and also with the fact cutting, starting to cut rates. That'll probably help as well.
Speaker 2:That's what I mean. Yeah, correct, yeah yeah, yeah. Exactly so. It's a good thing, it's a great thing. And again, the high end 80%, 90%, all cash. This rise in our market was fueled by cash, not debt. That is the very, very important distinction to make from this time and last time, up with the increases of demand.
Speaker 1:And I think it's interesting because the cash financing thing sort of goes both on the developer side and on the purchaser side. Because if you remember 2008, Related Group lost Icon Brickle to the lenders. They gave it back before it was even completed, and I think there was a couple other ones along those lines too, and you just don't see that anymore.
Speaker 2:No, no, it's been tighter on everybody.
Speaker 1:Yeah.
Speaker 2:Correct, it's a whole different setup.
Speaker 1:I think there might be I won't say a bubble, but there might be some slight issues still coming forward with commercial real estate. That might be. There might be some bumps along the road there. There's been some foreclosures and that.
Speaker 2:Loans resetting all sorts of things.
Speaker 1:Yeah, yeah, but I think a lot of that just has to do with the fact that money was free and then it wasn't anymore Correct and people made some poor decisions with structuring and financing Correct. So I think it's just less drama all around which is great.
Speaker 2:And again, the high end is just what else. I keep talking about single-family prime parcels having inherent scarcity built in.
Speaker 2:Yeah, Now I think that's really such a great buy for the next five to 10 years as the region grows. There was an article, it was in the news this week a parcel, the most expensive sale now in Miami-Dade County so far this year. It was two lots on LaGorce for $100 million, or was it two or three lots? Wow, and then the one. There's a fourth lot that's under contract. That might think it's an affiliated entity for $24 million. So it keeps continuing.
Speaker 1:Well, also, I don't remember the names, but I keep reading stories in the Real Deal because they love covering those things of just people buying lots and buildings in my beach and the Venetian Islands and Star and Palm Island. That are just completely insane numbers, like, I mean, $20 million, $30 million plus for waterfront land and it's just yeah, there's no signs of uh, of it slowing down nope, you can't build more vertically, as I keep saying on that segment I feel like you need to get that on a t-shirt I know you can't build more vertically and then to that end of the people buying second homes.
Speaker 2:There's there's a report this week from uh henley and partners. I found they're, they're, um, they're, they're, industry leader in residence and citizenship investments, right. So they help people with a lot of money, I think find other places to reside or get passports or something to that effect, and they keep track of the movement of ultra high net worth individuals.
Speaker 2:Our favorite people, our favorite people, and they have a report in centi-millionaires people with over $100 million, and they found that Miami is the top destination for them, for second third homeowners. And they had these great charts showing actually aggregates sorry, not aggregates listing what's it called Top destinations for ultra-high net worth people. Sorry, we were among the top. I think we were one, two, three, four, five, and then in this list of the top 12, whatever it was we have Palm Beach is number two, naples is in there, palm Beach is in there. There are four or five places in Florida within the top 15. Correct, that's crazy, exactly, and we're projected to be one of the leaders for growth moving forward for the next 10 years of destination points for centi-millionaires. So word got out. That's the trend I keep talking about. It's the global wealth polarization, national wealth polarization and then people relocating themselves and their money.
Speaker 1:Yeah, I mean, I think Miami has the same sort of effect in the US, it does in Latin America. Whenever there is less than optimal environments, people take the money out of where there is less optimal and put it in an optimal environment. And because of Miami's generalized setup, we just tend to be optimal all the time, correct. Correct, we have our own problems, but it tends to be a very safe place for money, correct. And even with all the crises, the old condos, the insurance, whatever it's like when you're that cash rich, none of that really matters.
Speaker 2:It doesn't matter. It's like the interest rate didn't matter it. When you're that cash rich, none of that really matters.
Speaker 1:It doesn't matter.
Speaker 2:It's like the interest rate didn't matter. It was fueled by cash. Yeah, the buying at the high end was cash-driven and those crazy spikes we had in transaction volume past high prices per square foot happened during a period of very high interest rates. Because they're paying cash.
Speaker 1:Yeah, and at that point you're that rich and the insurance and H-Wit doesn't really matter.
Speaker 2:It's less relevant.
Speaker 1:Yeah, much less. So I don't know. It's just there's still things. I was pulling up some stuff here. There's a story to go. Just yesterday they sold the shops at Midtown Miami, which is like the target and everything in Midtown. Wait, where is it? It doesn't say Well, it doesn't say what the amount of money was, but it was a lot. And Midtown Miami, that part of it is literally just the part along North Miami Ave, that is like the shops and retail, nothing else. And it sold for a couple hundred million dollars. Yep, in a time when malls and retail places are not doing very well, correct, yep, it's good stuff. And then there was something. There was another story in there. That was where'd it go? Oh, just like. This thing is interesting, like Emirates bringing new business class seats to Miami.
Speaker 2:See.
Speaker 1:Talk about wealth.
Speaker 2:Correct.
Speaker 1:Real, real, real wealth. Exactly, and yeah, it's just, you know I was. I did a. I did a video series you guys may have seen it after our last podcast about the mega products that are happening in Miami-Dade, from Aventura down to down to very far south, and the sheer amount of them is just like wild, it's a whole lot of capital to put in. It's a whole lot of capital and these are huge projects, like I mean billion dollars. Some of them are over a billion dollars.
Speaker 2:Yep. It's all very optimistic for the future of the region.
Speaker 1:Yeah.
Speaker 2:It's really what I see is numbers about wealth, migration and these top ten lists, and again they list the Palm Beach area and they list Miami separately.
Speaker 1:Yeah.
Speaker 2:If we think of it as one aggregate region, add it up, it basically surpasses any other individual place. It's kind of this aggregate region that's just attracting wealth. Yeah, some people prefer Palm Beach, some people prefer Miami-Dade, but it's like a regional attraction.
Speaker 1:Yeah, we're definitely. What do you call it? A mega region, and I think there's been so many changes recently that have helped that with Brightline, I was just going to say yeah. Brightline and West Palm Beach becoming a center for hedge funds and all of that. I mean, if you look at it and I've said this since 2017, is that the tri-county area really has the potential to be the San Francisco to San Jose of the South. Yep.
Speaker 2:Correct.
Speaker 1:In the same setup where, like you know, mine would be San Francisco without the insaneness, and then West Palm Beach Without the opening of drug markets. Yes, that's what.
Speaker 2:I was trying to say yeah. And then West Palm Beach. That's the opening of drug markets.
Speaker 1:Yes, that's what I was trying to say. Yeah, and then West Palm Beach would be San Jose and it's a perfect setup for that. It is, and we're also very yimby here. So we want to build. We have improving transportation Not perfect, but improving and so you know you can very easily live in Miami or West Palm Beach and super commute between them on Brightline.
Speaker 2:It's not that far at all and Brightline's quite nice.
Speaker 1:And then you know when you get to, you know Miami or West Palm Beach. There's connections there that can take you all the places. So it's like the region has gotten bigger, but it's also really shrunk at the same time in a good way.
Speaker 2:We're increasing connectivity as we grow.
Speaker 1:Yeah. So to me that's a good thing. You know, every day there's new airlines are coming in, they're creating new routes, Like it's just the overall growth. And I don't say that because I'm just an insane booster for Miami, which I am but it's also like but it's also true.
Speaker 2:It's true. Yeah, like the data points are there, it does. It does the airport's growing.
Speaker 1:Yeah.
Speaker 2:Correct, absolutely.
Speaker 1:So it's like you know, I may be a little enthusiastic about it, but the data points are there.
Speaker 2:Correct, correct, I mean you're drinking your own Kool-Aid, you like it here I do.
Speaker 1:I was standing in Bayfront Park last night because it was nice out after it was nice last night.
Speaker 1:It was so hot during the day but it was very nice at night. And I was sitting in Bayfront Park and I've been here for just about eight years now and I was sitting there and I was like I don't like Miami any less. After eight years, even after everything I've done and stuff that I've been through, I don't like it any less. I like it more. Yeah, me too Like and that someone who has ADD and gets bored very easily, like when I'm bored, I think I move on very quickly. So the fact that I still like the city and everything about it eight years later- I think it gets better all the time.
Speaker 1:Yeah, and you know it's my famous saying I need to get this on a t-shirt In all sort of there's an optimism, I would say. An optimism and I always want to preface because you know, I know we have our problems and there's issues, but, like in general, I think it's that feeling when people know that the best days of the city are ahead of them and they're not behind them.
Speaker 2:Yes, I think that's the difference.
Speaker 1:And it's not like you know, the superstar cities like New York and LA and San Francisco, they're still going to be doing things forever. Of course yeah, but the peak best days of it are behind it. That's a different feeling. Yeah.
Speaker 2:That's a very different feeling.
Speaker 1:Yeah.
Speaker 2:I saw a funny snippet. Who was it? No-transcript, but I remember New York in the 90s and there there was this feeling, a very distinct feeling, that that was the place yes in a way that was. That was like peak New York. It really really was. Yeah, and that feeling again not to disparage things will always happen there. It's like what I've been saying Things will always happen in London, but it's no longer the capital of the world.
Speaker 1:Yeah.
Speaker 2:There's this passing of that feeling that it's peak.
Speaker 1:For me, like I said, I definitely I'm very futurist, very optimistic, and one of the things that just I have to feel in order to like something is I have to feel like something is happening, like it's something good is going to happen in the future. That's what I have to, it's a non-negotiable. If I'm somewhere that feels like it's cycling down, that very much affects me. Yep, just in my life in general. And Miami feels like it's cycling up.
Speaker 2:A hundred percent.
Speaker 1:So to me, that's how I feel about the city. That's why I'm very passionate about it, because I want to be a part of that.
Speaker 2:That's kind of what we mean by Long Miami, because it's a bet on the future.
Speaker 1:Yeah.
Speaker 2:That something has upside.
Speaker 1:And I think people get distracted by these mini cycles or mini busts and booms crypto and I don't know, ai, what now? But like there will always be, like micro, I don't want to call them bubbles- Trends, trends. Like there'll be micro trends in any city. It's the same thing when people you know they say, oh, san Francisco's back and they're talking about AI, we're talking about like four blocks, four blocks of it yeah, like where our open AI is.
Speaker 2:I'm happy for them. It's great it is.
Speaker 1:But as I said before, in podcasts it's like that'd be, like you know, if Wynwood was doing fabulous and the rest of the place was Was an open air drug market? Yes, Not to drape it. And that's Wherever I go in Miami, at least in the areas that I'm in the beach and greater downtown and Brickell, and all that everywhere, everywhere feels like it's on the upswing. It's not getting worse, it's getting better.
Speaker 2:I agree. I agree, that's a real feeling in the air.
Speaker 1:Yes, Yep, and you know, I do my scooter tours around and I did one last night and I was just looking and everywhere was just on the upswing. There was cranes, everywhere, Stuff was being developed.
Speaker 2:It's not normal to see that many cranes in a city today in America.
Speaker 1:Yeah.
Speaker 2:Like at all. We've normalized it here. We walk around everywhere. There's cranes, cranes, cranes, cranes, cranes. I sent Ryan this video a few weeks ago. What was it? I was looking out of the residences and I'm like, this corner, this two blocks, has something like 4,000 units coming the next few like really truly in the next few years. That's not a typical experience in an American downtown today.
Speaker 1:Yeah, no at all.
Speaker 2:One of them, let alone the collection of five on that corner.
Speaker 1:I know it's. I mean, I would bet you that that piece of Sixth Street probably has more units out of construction than most major cities in the entire.
Speaker 2:United States. In total In the United States yes.
Speaker 1:Just one segment.
Speaker 2:It's incredible.
Speaker 1:And you know it's helping. You know we, as you always say, we had some of the highest rent increases in the country, in the nation, in history over like a two-year period and it's not good for anyone over like a two-year period and it's not good for anyone. So it's like the fact that we are developing, like it's going out of style is great.
Speaker 2:It's great and it's helping. It is helping.
Speaker 1:Yeah, and you know we've said this before, but you know, miami is developing every level of product. I saw one of my friends sent me a thing last week that they finished demolishing 1809 Brickle Half so they can start building St Regis now. Correct.
Speaker 2:That's right.
Speaker 1:And you know, I think it's interesting because Miami is in this interesting super cycle sort of thing where we're still building stuff from the last cycle and then we're getting ready to launch into the next one. I'm not sure it's ever happened, because Miami before was a boom and bust.
Speaker 2:Yeah, there was no reset of any sort.
Speaker 1:Yeah, it like everything finished and then there was like six years of downtime. We are like going into, we're delivering products and they're setting up the next cycle like now, Correct.
Speaker 2:A hundred percent.
Speaker 1:So, like you had the St Regis, you have Santander that's going to be building their thing. They're demolishing that. You have Santander that's going to be building their thing. They're demolishing that. You have Citadel coming in. So it's like the next cycle is like happening before our eyes, even before we're totally out of the last one.
Speaker 2:It's on top of it.
Speaker 1:Yeah.
Speaker 2:It's the next layer.
Speaker 1:It's the next layer, mm-hmm, and like I, said that is new.
Speaker 2:I think it is sort of rising in stature and the layers are going on top of each other.
Speaker 1:Because I mean, if you look at the last really big cycle like you know, 2008, like you could see where it ended. You know they built Marina Blue and Marquise and oh, there was a distinct end.
Speaker 2:There was an end, there was like an end, and then nothing got built until 2015 or so. Yes, it needed time.
Speaker 1:It needed time. Here we're just sort of skipping over the downturn part and we're just going for it.
Speaker 2:It's kind of amazing.
Speaker 1:Yeah.
Speaker 2:It makes me happy.
Speaker 1:I am and I'm proud of the city and you know, listen, I know people think, like I said, I'm just some insane fanboy of my man. That is true, but I do call out the things that I see that are failing. Infrastructure or whatever Developers you don't like, you don't like, but anyways, I was looking at Bayfront Park that's where I was and they're redoing the fountain there. That fountain has not worked since like 2005. Which is a total failure on its own, but it's in progress. Now they're doing the concrete work.
Speaker 2:That's a great thing.
Speaker 1:Yeah, they're actually doing it and I think that makes me happy.
Speaker 2:The footbridge in South Beach is actually happening across the causeway. Oh really, the ramp is done.
Speaker 1:Okay, it's coming. Yeah, is there any sort of timeline on that?
Speaker 2:Soon Very soon.
Speaker 1:Okay, yeah, that'd be great Cause, cause you know West Ave has been sort of cut off.
Speaker 2:It's going to connect those two areas, yep.
Speaker 1:Been cut off. And then, you know, I was back in my scooter tour. I was going on Edgewater. There's so many projects that my brain I can live with, like the prestige ones ones that are like there's so many, there's so many. And I was looking at one on Edgewater. It was called Sense Edgewater. I've not heard of this. Yeah, it's like a random multifamily right there in 27th or 28th.
Speaker 2:And it's just happening.
Speaker 1:It's like just, it's not. You know, I think it's like 15 stories or something, nothing insane, but it's happening. And then next door you have Villa Miami and Cove Miami, and there's just. Anyways, it's just.
Speaker 2:Have you heard of this? This topic of things that I didn't know were happening? 7,500 units.
Speaker 1:Wow, oh, is that in West Little River, West Little?
Speaker 2:River West, Little River Developer plans for 7,500 mixed-use development unit project and a new tri-rail station in Miami's Little River District. Swardlow Group A better developer, Michael Swardlow I mean over 63 acres will include 7,500 residential units combining affordable workforce and market rate housing.
Speaker 1:Yeah, and just so you're aware, like I looked at that and that is like West Little River.
Speaker 2:It is far west, far. I looked on the map.
Speaker 1:I know To me, West Little River is by 95. No, this is like out there.
Speaker 2:And they cite a study that actually I've read in the past that sort of calculates that we're short 90,000 units for renters.
Speaker 1:That makes sense, mm-hmm, yeah, and also that's not including the other product out in the generalized area, the one that wants to do like 6,000 units.
Speaker 2:Pablo Castro.
Speaker 1:Yeah, correct, that's there too.
Speaker 2:6,000, yeah, yeah, 6,000 units it's going to be almost 14,000 units there. It's fantastic.
Speaker 1:I feel like me and you, because we're immersed in that, we sort of just like forget, like you know, when you're it's like what you did with a lot of money. You just sort of numbers just stop making sense when you stop and look at it and sort of by itself you're just like that is, that's a lot of units, that's know.
Speaker 2:Looking at sixth street, like every time I look at it I'm like, oh my god, did you go there this week? I was there this week, correct, I'm not sure if it's the exact window again, but I had breakfast there this week nice, yeah, it's um.
Speaker 1:and then also, if you go um west on sixth street, they're about to deliver the target um, and the aldi and the burlington coat factory and then all the affordable, uh, senior residences. The target is like this close to opening. I'm like, yes, but I'm more excited about Aldi over there.
Speaker 2:Oh yeah, that's, exciting.
Speaker 1:It's exciting, but it's there. And then, across the street, there's Atlantic Station, which is a mixed income. It's both workforce and market rate. This is great. And then, across the street from there, there's the hub or hub residences Miami. That's B&H and it's a short-term rental project. Someone else. And it's just crazy, Like it's.
Speaker 2:It's good stuff everyone.
Speaker 1:Yeah, it really is. There was something else. What else was there?
Speaker 2:Oh, and today the quarter closes out today, so I'm going to put it in my Q1 report in about a week, we're going to see what's happening and I'm speaking at the Real Estate Congress. Oh my God, I'm going to mess up the name of the event. Hold on everyone. I'm going to get in trouble. Now. It's November 1st through 3rd. No Hold on. Yes, I'm speaking at the Miami Global Real Estate Congress November 3rd through 5th.
Speaker 1:Okay.
Speaker 2:I'm listed as a keynote speaker. That's pretty cool. Yep, Craig Stradinke will be there. Astrid Report Mera Suarez it's going to be a good time. Nice, I do have Penn American Championships right before that. You're going to be tired, and then I have them, yeah, so I don't know which day I'm competing. They haven't announced it yet.
Speaker 2:Okay, but I have to be in Dallas, texas. Like these are weekdays, so the weekend right before I have to be in Dallas Texas for the Pan American Championships, then I have this, and then the following weekend, so like three or four days after this, I have the Miami ADCC Open competition. Nice, where is that, I don't know? Somewhere in Miami, who cares? It's local, the address doesn't matter, I'll be there, but that's going to be an interesting week and I want people to eat because I have to make weight for ADCC.
Speaker 1:I could never. I could never. So two other interesting things here. The Brightline is going to be massively increasing their capacity. Okay, because they're at capacity.
Speaker 2:Which is amazing yeah.
Speaker 1:And, like I said, for a train to be at capacity. So far in 2024, around 30% of trains have been completely full on weekends and holidays and the company regularly sees 75% of trains at capacity.
Speaker 2:That's amazing.
Speaker 1:For a train in a place that doesn't do transit very well.
Speaker 2:In 2024. And then?
Speaker 1:on that same note there is a separate project, so you got to remember TriRail, which runs on the western tracks of 95. They run from here to West Palm Beach. It's just sort of out of the way. So they're working on building a coastal link that will go from Miami Central along Brightline's tracks. But it's going to be a cheaper, more economic service for commuters and they are in progress of getting it. It just entered the engineering phase so that will be a big deal because Brightline is sort of like an express. This will be a commuter rail, same track but just like a cheaper service. It's really crazy Filling in.
Speaker 2:See everyone, I don't drive. I was ahead of my time Between Uber and all this connectivity. Yeah Ha ha, oh, uber and all this connectivity.
Speaker 1:Yeah, ha ha. Oh. And then just another interesting project. So South Miami is doing another mega project, also separately to Sunset Place. They're redeveloping their city hall and governmental and they're going to do oh, where does it go? Yeah, it's going to have 670 apartments, 70,000 square feet of civic space and then a bunch of other retail, but that's separate to the Sunset Place redevelopment, which is like three blocks north, wow. So it's not just even the urban core.
Speaker 2:It's spreading.
Speaker 1:It's the whole. Thing.
Speaker 2:It has to spread.
Speaker 1:Oh, I was tweeting about this. I don't know if you saw it, but I had a spicy take on what I think I need to do in the future and I was saying, if I was in politics but I do, but I'm not going to politics, no one has to worry about it Is that they need to split?
Speaker 2:They'd really want our B-rolls then. And what we say before it goes live yeah, I would be canceling before I ever got into the office that would be epic.
Speaker 1:But I was saying Miami City needs to split Brickell, downtown and Edgewater into three different districts.
Speaker 2:Okay.
Speaker 1:Because right now there's two District 2. That goes everywhere, from Coconut Grove up to almost to Mimo District.
Speaker 2:Oh, that's right, it's a huge district. It is huge. It starts at Coconut Grove, yeah.
Speaker 1:And it's one commissioner, he's new Damien and he's great, I've met him but it's too big, especially because Brickell and downtown have very different needs, as does Edgewater. So my controversial take was to split it into three and do that, or incorporate brickle downtown edgewater as a new city. Oh like, I'm not sure what it would even be called, but like, the city of miami is so large and so there's, so there's so many different types of people and different setups that, like it's hard to really get anything done because the city is so large. It's like a new, like urban core city maybe.
Speaker 1:I don't know how that works that'd be extra controversial and it would never pass any sort of thing. But but we do need to expand the city commission for sure. Like give, like it'd be pretty easy you split the river and split it at 395 and you have three districts inside $3.95.
Speaker 2:Makes sense, so that was my. We need to give Ryan a magic wand.
Speaker 1:Decree If I was playing SimCity that's how it's. I'll speak against SimCity. Watch things rise. I don't know if you saw, but I started a live cam of Casa Bella. That's happening over here.
Speaker 2:Oh, yes, yes.
Speaker 1:Yeah, so I do it on YouTube on my personal channel, and you can just watch Casa Bella Rise, you can watch the weather. It's a fun thing. That's pretty cool. Yeah, I've got a bunch of people watching it. Was there anything else? Anything?
Speaker 2:else.
Speaker 1:Oh, my World Center. I was there yesterday and the Museum of Ice Cream opened. We still need to go.
Speaker 2:Yes, I just heard someone else. Yes, we have to go. I love ice cream. We've got to go soon because again I have competitions coming and I'm going to be in like no eating mode for now.
Speaker 1:So they have it, but I went there and the line was like around the block and also there's a lot more. There's actually a lot popping around Mummy World Center right now. You have that. You have Gem Residences coming up, that's right they started site work. The other one next was coming up Mummy World Towers is about to open. Finally I saw them. I was like, oh, this is taking forever.
Speaker 2:The Apple Store in the middle is coming. That whole section looks amazing with the Apple Store.
Speaker 1:Starbucks and Ray-Ban and Lululemon is all there, but there's it's like my world's always like one of those like it seems like it's taking absolutely forever, and then all of a sudden it's just like poof, that's a lot, yeah. And then the Club Studio is opening there, which will be a really it's like a sort of like an equinox. And then container store is opening and there's gonna be like a greek yogurt place and just, but they're it's all like popping now and I I feel like people have been watching my world center been built for so long. They're like it's gonna just like up here because everyone's sort of like, everyone's sort of like forgotten about it I agree so, but now it's, uh, like I said, it's exciting.
Speaker 1:I'm I'm very optimistic about it and I just I don't know. I think that this next year is going to be a.
Speaker 2:I think it's going to be a big year.
Speaker 1:A big year. Yep, yeah, and I think, with interest rates starting to come down, you're going to see even more. Well, it's going to help the market 100%.
Speaker 2:This was all done in the face of very high interest rates. I also think with the election over, people will get that out of their minds.
Speaker 1:Yes, yeah, oh also, I was scootering around yesterday and I went to Flagler Street and every Sunday Flagler Street now has this little swap meet mini market. Oh fun, it was just nice. It was nice to go there and see people walking around. It was very clothing-centric, there was a lot of vintage clothing, but it was just good to see anything happening there. And I think that's important as we go forward is that we can't repeat what happened with Brickell and downtown, because when Brickell started, all the businesses left downtown and went to Brickell. So you have to make sure that you take care of each of the individual neighborhoods, make sure they're all rising together and one isn't getting cannibalized by the other. So I think that is important.
Speaker 2:It's looking good. I'm excited with the quarter. The quarter closed out today, so I'm going to have all that information.
Speaker 1:Any other trends that you're just really excited about?
Speaker 2:No, I'm just really wanting to see how this quarter closed out, because I think it's all playing out as I thought it would.
Speaker 1:We'll see here's a question for you have you seen more interest or activity after the rate cuts? It's too early to tell.
Speaker 2:There's no data We'd have to see. What about just the jet?
Speaker 1:cuts.
Speaker 2:It's too early to tell Okay, there's no data We'd have to see. What about just?
Speaker 1:a legit feeling? Are people like okay, we're.
Speaker 2:I try not to even listen to that.
Speaker 1:Okay To be completely honest you like data.
Speaker 2:Well, no, it's because so many times people make things up for their own reasons. Good or bad, I don't care, but they make things up. And the less that I list, because I'll tell you why because there've been many times in the past where what I see unfolding and then what I predict that will unfold is contrary to what some people say or pretend they feel, and so I don't, I don't buy into it at all. The less I hear that, the better it's good.
Speaker 2:Yeah, Cause it's it's noise, it's noise, it's noise. And people, especially in real estate I don't know if you're listening to me especially, but people make a whole lot of stuff up and the proverbial feeling in the air is among such people is not what I would call a primary market force, so I filter it out.
Speaker 1:You know it's funny. I love that developers in Miami all of them I love when they get really creative with renderings. It's like my favorite little pastime.
Speaker 2:I like the renderings of buildings that look like they're on an island but meanwhile like a moated enclave. Meanwhile there's like four towers within 10 feet of them.
Speaker 1:Yeah, it's like huh. There's like parkland around it and like yachts. Open views vistas, and I'm like you do realize there's like a tower like directly in front of you.
Speaker 2:Like not to be built already in existence.
Speaker 1:My favorite developer does that quite a bit, Ah, yes, oh, speaking of Baccarat and Viceroy are. Viceroy is a couple floors from topping off and Baccarat is very much out of the ground, which is exciting because I didn't ever think that project would actually go. Too much drama with archaeologists.
Speaker 2:The mummies and so forth.
Speaker 1:Archaeologists, the lost civilization of something, the lost civilization, the lost civilization of something, the lost civilization. But yeah, I mean, listen, I think my new favorite neighborhood in the next five or ten years is going to be the Miami River area, from the Brickell Bridge to wherever Sherrod is doing their thing, whatever that street is, second or first half. That area has so many projects and so many mega projects in the progress the my River Bridge, one River Point, river District, the Baccarat, whatever replaces Riverside, that big blank spot in front of Brickell City Center. There's just so much happening there because the river didn't really fill in the last cycle. I think in the next 10 years you're going to see that exploding because you have water in front of you, so you're going to have protection. If I had to guess where developers are going to focus in the next five, 10 years, it's going to be, the Miami River.
Speaker 1:There's even more happening farther west by Miami River Landing One of the people there they're building a short-term one. It was just in the next Miami. They were going to make it multifamily but then they switched to short-term rentals and that is far west.
Speaker 2:That is far west. It's spreading.
Speaker 1:So it's good stuff. I'm excited and yeah, how's the stuff going with your new project?
Speaker 2:good good soon it's going to time with the quarter.
Speaker 1:I'm excited. I can't wait. I can't wait to see it.
Speaker 2:I know we'll we'll.
Speaker 1:I'm sure we'll be promoting it when it's when it's time. But, yeah, alright, guys. Well, thanks for watching and hope you like this new format and we'll see you in two weeks. Ciao, ciao, bye, guys.
