Luxury homeowners in Florida flip their properties during boom
South Florida’s luxury real estate market has seen a huge increase in sales over the past year as the wealthiest continue to leave high-tax states. In turn, inventory has gone down and owners are cashing in.
Seasoned veterans like Steve Wynn and Todd Michael Glaser have dominated recent headlines by flipping properties, but âa new breed of buyersâ in South Florida has also emerged. Some buyers, including athletes, executives and celebrities like Tommy Hilfiger, are not just trading homes, but cities, moving to other parts of the tri-county area.
Ed Rabin, former president of Hyatt Hotels, has moved from a condo in Miami Beach’s Apogee to a house in Palm Beach. Serena Williams moved to Jupiter after selling a home in Palm Beach Gardens for $ 2.8 million in January.
Likewise, fashion icon Tommy Hilfiger and his wife, handbag designer Dee Ocleppo Hilfiger, sold their waterfront mansion in Golden Beach for $ 27.5 million in May and then went bought a waterfront home in Palm Beach for $ 21 million soon after.
Yet some buyers even stay in the same building, such as Pierre Brondeau, who has moved up a few floors to Palazzo Del Sol on Fisher Island. Former tennis No.1 Caroline Wozniacki and former NBA player David Lee have done the same.
âI see three, four, five transactions with the same clients,â said Stacy Robbins of Stacy Robins Companies. âIt’s a new generation of buyers in Miami. “
Robins, who helped Rabin sell his Miami Beach condo, said one of the main factors in his clients’ decisions to relocate was his lifestyle. For those who enjoy the nightlife and culture of South Florida, Miami Beach may meet their needs, while those who prefer a quieter life might find Palm Beach to be the right gear.
Longtime film and television producer Douglas Cramer has moved to Biscayne Bay. Cramer and her husband traded their La Gorce Island property in Miami Beach for a house in Miami’s Morningside, while Richard Wackenhut uprooted from Palm Beach to Boca Raton.
Robins compared the real estate market to the stock market, with some buyers expanding their portfolios. More is to come, she said.
Nutritional power couple Roger and Sloan Barnett have put together a collection of South Florida homes this year. In April, the couple bought a Coconut Grove mansion for almost $ 46 million and a Star Island mansion for $ 38 million. They sold their unit on Fisher Island for $ 23 million in May, four months after buying it.
“Some [buyers] want to be close to the action, âsaid Joanna Jimenez of Compass. “For others, waterfront property is more important.”
Robins also attributes the constant flow of transactions to out-of-town buyers who may be used to owning properties across the country. “New Yorkers are used to getting out of town” and enjoying beach getaways in the Hamptons or other nearby places, while still enjoying everyday life in the city, Robins said.
Faced with a limited inventory, some buyers opt for demolitions or lots, in order to build the house of their dreams. While they are waiting, they will buy a smaller house or a condo.
Music director Tommy Mottola and his wife, singer and actress ThalÃa, bought a teardown on the island of La Gorce about two weeks after they knocked down their Surfside condo, having lived there for less than a year.
Financier Gary Siegler also marked a renovation project after he bought a Miami Beach teardown for $ 8.3 million. Days earlier, he had sold a house in Indian Creek for $ 27.9 million.
Out-of-town buyers drive up prices, in some cases leaving sellers with few options for getting around.
In the first quarter of 2021, residential sales volume in Miami-Dade, Broward and Palm Beach counties totaled $ 15.8 billion, according to the Miami Association of Realtors.
âLocals take advantage of the market by selling and moving,â said Danny Hertzberg, of the Jills Zeder group at Coldwell Banker. Hertzberg represented a vendor who knocked over a waterfront house in the Venetian Islands in February.
Gary Pohrer, one of Palm Beach’s top agents, said he now had to find homes for his sellers before getting their listings, due to the huge drop in inventory. Off-market offerings also abound.
Prime 112 restaurateur Myles Chefetz sold his waterfront home in the Venetian Islands on 17,000 square feet of land as part of an off-market deal in April and bought a non-waterfront home. water in Miami Beach on nearly 9,000 square feet of land in May.
Former professional golfer Greg Norman has also downsized with the recent sale of his 32,000 square foot estate in Palm Beach Gardens. He and his wife Kiki bought an 11,837 square foot mansion in Jupiter.
âWe are seeing a reshuffle in the markets,â Hertzberg said. âIf I had to guess, I think in 12 to 16 months a lot of people who have come will be selling their homes to find more suitable neighborhoods.