The Argentinian developers who bet in Miami, meet them here
Alan Faena, Eduardo Costantini and the Coto family are some of the local entrepreneurs who landed in Florida’s luxury market; The Reasons Driving Investments and Projects
MIAMI.- On these beaches, Argentines not only stand out for buying properties. Also to build them. Today, many of the skyscrapers and luxury buildings that give the new character to this cosmopolitan city are the product of Argentine investors. Oceana, Jade, Aria on the Bay, the Faena District, the Ritz Carlton, Fendi Chateau, or the future Aston Martin Residences building are just a few examples. “Argentines always loved Miami. They came to buy and from 2008, when local developers saw that prices fell due to the crisis, they landed with their companies. It is positive that figures like Faena, or Costantini, have put a stamp of acceptance on Miami. They attract buyers,” says Carlos Rosso, president of The Related Group, Florida’s largest development company. The firm, created by Jorge Pérez, has built about 100,000 units. In some areas of downtown, they are responsible for one in four departments. Hyde, Icon, or Apogee are some buildings with his brand. Alfredo Lowenstein, founder of Pumper Nic and co-developer of Paseo Alcorta among many of his projects in Argentina, was one of the pioneers when he bought a hotel in South Beach in 1966. Under the command of his son Diego, his firm Lionstone already celebrates 50 years in the market, has put the stamp of two Ritz Carltons (South Beach and Bal Harbour), and expanded to Caribbean countries. Lionstone is an expert in both hotel development and refurbishment, and partnered with British tycoon Richard Branson, founder of Virgin, to make his chain’s hotels. The first opened in Chicago. The plan is to reach Miami by his hand as well.
Another who saw the city grow is Edgardo Defortuna. Defortuna’s career in Miami began almost by chance. “In the mid-eighties when I was doing my MBA at the University of Miami, I began to observe that most real estate sales and brokerage companies did not focus on the international buyer,” he summarizes. Thus, he started as a real estate broker going out to different countries to offer the local product. Today it has more than 1100 people working, including employees and agents. In 1996 it embarked on the development of large projects, with more than one million meters of development under its portfolio. One of its buildings, Jade Signature, with 60 floors, has been recognized as one of the ten best skyscrapers in the world by Deezen, the most respected London architecture magazine in the industry. The Melo family also contributed their brushstrokes to this postcard. In 2001, when José Luis Melo, president of the development company of the same name, traveled from Buenos Aires on business, he did not imagine that his destiny was about to change. The potential of the city led the businessman to buy a piece of land north of downtown for US $ 1.9 million.
Today, it plays a key role in the construction of condominiums. He was a pioneer in spotting urban areas that have become a series of multifamily rental projects and other moderately priced luxury condominiums catering to young professionals working in the area. Already settled in Miami, it has built more than 5000 units, of which 3600 are own for rent. At this point the group developed more units in Miami than it has done in Argentina. “We are with nine new projects, each in different stages: design, obtaining permits, construction, renting,” he says. He leads the company with his sons Martín and Carlos. His most recent project, Aria on the Bay, was completed last year, with 648 units and 53 floors.
Manuel Grosskopf also brought his experience of the luxurious Château towers of Argentina, to position them this time on the beach. With the purchase of a plot of land on the sea steps from the luxurious Bal Harbour neighborhood, he developed Fendi Château, the first luxury condominium that carries the Fendi brand, with 12 floors high and 58 residences.
Eduardo Costantini, for his part, completed in 2016 his first project on American soil: Oceana Key Biscayne was erected on a unique terrain, with incredible views of the water and an avant-garde design. “In 2008 we raised a capital of US$110 million with the idea of diversifying abroad. We started seeing São Paulo, Rio, New York, and ended up in Miami. We were looking for a unique piece of land in its location and specification, which we found on the island of Key Biscayne,” he says. At that time the United States was mired in a major crisis, especially Miami. Without debt, and with cash in hand, his firm Consultatio found the right opportunity to land in these lands. “It was a new experience, and also for the Miami market since we did the first project of the new cycle where we introduced modifications that later others followed. For example, we built the garage underground. There it is complicated because being sandy soil, seawater makes an excessive force. We ventured into that technology, which was then used for other projects,” he says. That building, which in just 60 days managed to sell two-thirds for US $ 400 million, was followed by Oceana Bal Harbour, of 240 units, on a land that paid US $ 220 million and estimated sales at US $ 1300 million setting a new record in South Florida. “Consultatio in Miami has the two best-selling residential projects,” says the founder of Nordelta.
Alan Faena, on the other hand, arrived with everything. With an investment of US $ 1000 million revolutionized South Beach. The Faena District is the new urban epicenter along four blocks distributed on the traditional Collins Avenue. It is the first time that a neighborhood has a name of an Argentine and that converges its art forum of 4000 square meters with the hotel and residences.
The last player who joined the game is the Coto family, which after associating with the British brand Aston Martin, started the construction of a tower of 391 residences on 66 floors high, scheduled to be completed in 2021. G&G Business Developments, the developer of the owners of the supermarket chain, paid for the land -in 2014- US $ 125 million, the maximum value paid at the time for a lot of that size. “With a friendly language and a significant Latino population, the developer here has an easy flight. It’s relatively familiar to us, it’s like a third cousin. In addition, the industry is open and welcomes you, “says Costantini when analyzing why Argentines disembark to do business. On the other hand, the desire to diversify is always latent. In Argentina the opportunities decrease, and the city that attracts tourists for its beaches and shopping malls, is also for developers a very valid alternative. However, Costantini says that you have to be careful when investing. “It has behaved very cyclically. In 2008 there was a giant crisis, and now three years ago there has also been a drop in sales. Although there is no macroeconomic risk in general, it is key to know how to buy with good timing, “he advises. “Miami is attractive to many countries, says Martin Melo. At Aria on the Bay, we have buyers from 44 nationalities. It is seen as a safe city. The market is global, not national or local. Rules help maintain the value of the property. USA. UU It has the same currency 200 years ago, it never had devaluations of taking out zeros or exchanging bills. And it is the only country in the world that did not have de facto governments or dictatorship. All that generates stability,” he says.
Rosso assures that the synergy between Argentina and Miami is very strong, and translates it into the number of flights that unite them. “The exchange is going to continue. People who come after a year see a new city, and that attracts the investor,” he says. Nobody better than him to talk about synergy, given that The Related Group has ventured into the opposite path: it chose Puerto Madero to develop SLS Lux, its first major project in Argentina.
But when making a building in the United States you also have to know that the regulations are many. To approve a project in the municipality you have to go through 20 different departments, from environmental to everything related to construction. “In some ways it is more complex than Argentina but the rules are clear and constant. It’s like playing a difficult game, but if you know how to play it, the rules don’t change halfway,” the Melos explain. The challenge lies not only in regulations, but even in selling.
“In Argentina you have a real estate agency, put up a poster and publish the weekend in the newspaper. Another thing is to go out and sell to more than 50 countries,” he adds. The developer, in turn, has well-recognized rights, and there are even lawyers representing him. For example, the city respects the established deadlines in a timely manner, otherwise the developer has economic penalties before the city, which leaves the two parties in a more equitable situation. When drawing a comparison, you always have to stipulate a point in the past. Although Edgardo Defortuna assures that in the last decade the properties in Miami They have had an increase in prices – “in departments the rise between 2008 and 2018 has been more than 100 percent, while in houses it was approximately 75 percent” he explains – also the numbers would make us think that that streak is over, especially for new constructions. “Markets can’t always be “boom” up and took a breather. Many projects were made, we are waiting for the product to be absorbed but we already have land waiting for the market to finish digesting the inventory of this cycle, “says Rosso. In the same sense Costantini thinks. “In 2015 the market started to reverse. In the super high-end band there is a recessionary cycle. After the expansion, there is a change in trend. We are in a process of digestion of all units,” he says. In Oceana Bal Harbour, of 240 apartments, there are about fifty still for sale. “Now we are in a waiting compass to do a new project in Miami,” he says. The entrepreneur is also interested in New York, where he imagines building a building without excessive luxuries. Census Bureau figures show Florida welcomed more than 300,000 new residents in 2018, with Miami as its most populous city. In addition, it has been chosen by Americans looking for a new home. Since 2010, the state has added 1.5 million people from other parts of the United States. Beyond cycles, Miami continues to attract capital. A fact for the locals is that on April 29 a study tour is being organized to that city in which attendees can attend meetings with leading developers of that market.
Source: https://www.lanacion.com.ar/propiedades/los-desarrolladores-argentinos-apostaron-miami-nid2230880
