High Times on Miami Beach?

On January 2, 2018, in an article entitled “Florida Could Be Close to a Real Estate Reckoning,” the Insurance Journal suggested that “one of the great mysteries of climate change isn’t scientific but psychological: When will the growing risks associated with rising seas and more severe storms begin to affect home values in otherwise desirable coastal markets?”

The article continued: “Nowhere is that question more pressing than South Florida, which has some of the country’s priciest properties—and some of the most vulnerable. A state built on real estate speculation, whose chief attribute was proximity to the water, now faces a whole new problem: There’s not enough land, high enough above the water, for its residents to pull back from the rising seas. By the end of the [21st] century, database company Zillow Group estimates, almost a half-million Miami homes could be—literally—underwater. That’s more than anywhere else in the country.”

Fast forward to December 21, when The Real Deal newsletter reported that home buyers and builders in Miami Beach have seized upon one immediate, if not visionary, solution to rising sea levels and the growing threat of flooding:

Higher stilts.

Elevated living quarters already a building requirement in the Florida Keys and on Key Biscayne, in July last year Miami Beach eased its restrictions on the height limit beneath single-family homes, which was set at seven feet (2.31 m). With approval from the city’s Design Review Board, owners and builders can now use pilings, or stilts, to raise the first floors of their homes up to 15 feet (4.95 m) – as architect Rene Gonzalez is proposing for his own house in the Venetian Islands.

“For now, Miami Beach’s elevated home designs mostly cater to luxury construction because of prohibitively high costs,” The Real Deal article states. “But in the future, industry experts said, those projects will become more common as designs are modified, prices drop and flood insurance rates rise.”

Patrick Dwyer, a wealth advisor with Merrill-Lynch, hired the renowned Miami firm Arquitectonica to design his two-story, $5 million house, which will sit high above Lucerne Avenue. Asked about the elevation he required, Dwyer said, “This seemed like a no-brainer. If you’re in Miami Beach and you’re not thinking about sea level rise, then you don’t really understand what’s to come.”

Difficult subject? Certainly. Can we – owners, buyers, Realtors, the public – close our eyes and make it go away? Most certainly not.

My question to Florida home owners and buyers: does this subject influence your purchase or ownership decisions, and if so how?

Looking forward to hear from you, here in the comment section or at tobias@modernsouthflorida.com.
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Photo: Modern beachfront/waterfront home by architect Toshiki Mori on North Casey Key, Florida, with 7,100+ sf, six bedrooms, nine bathrooms, den and bonus room on the interior, swimming pool and guest house. Off-market.

Preservation or Commerce? Apple or Gap?

In an interesting case of preservation versus commercial interests, Apple Computers ran into resistance in moving its hugely successful Miami Beach store on Lincoln Road Mall into new quarters.

Lincoln Road Mall was one the first pedestrian malls in the US, designed circa 1960 by architect Morris Lapidus, whose credits also include the Fountainebleau and Eden Roc hotels. It has become a major retail corridor in Miami Beach – store rents rocketed up to $200 per square foot, recent sales reached $132m (1100 Lincoln Road, housing Banana Republic) – but is still worth visiting:

Not for the myriad of tourist restaurants or chain retailers – you'll find Victoria's Secret, Gap and Starbucks anywhere – but for its architectural details old and new, such as the striped concrete floors left intact in some places, the concrete "furniture", the pergolas or an acclaimed parking garage:

Photos ©tckaiser

The dispute is (actually, was) over Apples plans to replace a single-story building without architectural significance with a glass cube, prototype for new Apple stores. The non-descript-looking building from 1926 currently houses a Gap store. But that plan caused disputes with the city of Miami Beach’s preservation board over the current building’s historic value.

Architect's rendering of the new Apple store on Lincoln Road, Miami

Short break. At this part of the story, my question to you is: Who is right – preservationists or Apple? And before you continue reading: what would you do if you were to decide?

Made your decision?

Because there's more: facing too much resistance, Apple decided to toss their plans, and guess what happened next?

You guessed correctly. In an interesting twist, the building in question suddenly lost its historical value, Gap is allowed to tear it down and do ground-up construction of a 29,000 sf (!) project:

Architect's rendering of the new Gap store on Lincoln Road, Miami

Now I am really confused – what's good for Gap is not good for Apple? What part (of a payback?) am I missing? Can you explain to me this type of logic?

Property Values: What you pay for New Modern Construction

“A man, who every morning gets five slaps in the face from his grumpy wife, one day gets smacked only twice. For him, it’s a relatively good day.” – my dad, explaining the word “relative” to us when we were kids.

I often get inquiries for brand-new modernist homes, with a budget of, say $300,000 to $550,000. Good time for a reality check.

First off, let’s agree that new is relative and often means newish – say 2007 and younger. It also hints upwards of not-so-new: per square foot, 57% more than the median for all modern homes on the market. You may want to dig a bit deeper in the folds of your sofa if you look at median asking: $3.5m versus $1.3m; more stats below.

Aiming for a teeny tiny house-lette won’t get your wallet off the hook, but you'll have lots of room to roam. New homes are spacious: 5,425 sf or 499 sqm under air (median size; too many outliers to use average. – For new modern townhomes, see this previous post.)

Some of the new modern homes are simply spectacular – thank goodness, it’s all a matter of taste. If you are in the market for a newish modern home, here is a peek at what to expect.

At the upper end: 

Miami Beach waterfront, with 10 bedrooms, 12 bathrooms, 20,000 sf (1,840 sqm), pool, 5-car garage, built in 2008. On 260' of water, two docks, lap pool and spa, elevated guest house/cabana, oversized rooftop terrace, double high-end kitchen appliances, staff house, generator. Asking $19,500,000 ($975/sf).

At the lower end:

Southwest Miami, 4/2 with 2,220 sf (204 sqm), built in 2008. New home on corner lot, by award-winning builder, never lived in. Features high ceilings, porcelain bathrooms, European cabinetry, alarm- and surround sound pre-wired, recessed lighting, stone counter tops, stainless steel appliances, washer & dryer, California closets, wood wall paneling, 8 ft. tall doors, well-ready, has natural gas. Asking $390,000 ($176/sf).

Typical median-priced:

Fort Lauderdale waterfront, 5/6, built in 2009. Located in a cul-de-sac on 206' of water, with top-of-the-line appliances, pool, hot pool, high ceilings, marble and wood floors, audio/visual wiring throughout. All window and doors are commercial grade with impact glass. Asking 3,750,000 ($571/sf).                                                                                                           
Statistics: Modernist Single Family Homes ≤2007

Currently available: 41
Asking prices: $390,000 - $24,000,000, median $3,500,000
Asking per sf: $167 - $2,191, median $658
Size under air: 2,220 sf - 20,000 sf, median 5,425 sf
BR/BA: 3/2.5 - 10/12 with 3 guest bathrooms

Source: own data, compiled from SEF-MLS

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A quick reminder to all prospective buyers: 

HOME BUYERS TAX BREAKS EXPIRE APRIL 30TH

$8,000 First Time Homebuyer Tax Credit, means if you did not own a home in the past three years. And up to $6,500 for existing homeowners looking to buy a different primary residence. Details are here.

– Have a great Superbowl-weekend!

Property Values: What you get in Modern Townhomes

The second installment of the series examining current market values will have a look at available modern townhomes in Southeast Florida. Because of the relatively small number, this post includes all price ranges.

Historically, the term townhouse was coined in the UK, a “house in town” for aristocracy and wealthy country peers. In the US, it used to describe an attached multistory building with a small footprint, including servant’s quarters, located in an urban environment. Owning a townhouse in a metropolitan area such as New York, Chicago, Boston, Philadelphia, Toronto or San Francisco was a sign of wealth.

Today in Florida, a townhouse in a strict sense means an attached multistory building with no neighbours above or below, often with a small garden and community amenities such as a pool or tennis courts. Legally, one differentiates between fee simple (exclusively owned, including the land) and condominium townhouses, where the occupant owns the interior only and part of the common areas.

Forget mid-century modern. In Southeast Florida, there is no such thing as a mid-century modern townhouse (elsewhere?). At least I have never seen or even heard of one in 20 years of practice. The available modern townhouses I know of were constructed 2003 or later, confirming that the first builders became aware of an increasing interest in modern architecture somewhere between 2000 and 2002. 

(Interesting side-note: in 2000, a German architect and I were planning a joint venture to build modern townhomes with dockage in Fort Lauderdale. There was no such property available then, and we were certain we had found an interesting niche. Due to serious health problems my then-partner sadly developed, the project never materialized.)

Given the confines of designing interesting and sellable multifamily structures on sometimes smallish lots, expect a bit of stylistic conformity. The starting point is the sleek white box, often three stories, with a vaguely nautical look, befitting the surroundings. 

Within variations mostly due to the price points, standard are kitchens combining stainless steel with warm woods, lots of glass, as well as open floorplans, often orientated around open interior staircases. If you head uptown, tile floors are replaced by marble or hardwood, private rooftop decks pop up, and period quotes such as eyebrows and corner windows appear.


Geographically, the 55 available modernist townhomes I know of are all over the map between Key Biscayne and South Palm Beach county. The highest concentration however is in Miami, Miami Beach and Fort Lauderdale. Sizes vary from 1256 sf under air  to 6100 sf, with a median size of 3365 sf.

As varied as the size are the prices: from $299,000 to $5,495,000, median $977,000, though the sweet spot seems to be between $590,000 and $900,000. 

What then do you get for your money?

$299,000: Miami, 3 bedrooms, 2.5 bathrooms, ca. 1,800 sf under air (ca. 165 sqm), built 2009. On Miami's Upper East Side, with open floor plan and two story ceilings in the entrance.

$425,000: Fort Lauderdale, 3/3.5, ca. 3230 sf (297 sqm), 2-car garage, built 2007. Two story glass atrium overlooking private garden and pool, 2nd and 3rd floor loft areas, rooftop terrace.

$668,788: Pompano Beach, 3/3.5, ca. 2958 sf (272 sqm), 2-car garage, deepwater dockage, built in  2007. Professionally decorated, below market bank pricing, located not far from the Hillsboro Inlet. 

$799,000: Miami Beach, 3/3.5, ca. 2360 sf (217 sqm), 2-car garage, built in 2006. 4-story townhouse on the Bay, garden rooftop terrace, heated pool and direct water views.

$999,000: Miami Beach, 4/5.5, ca. 3730 sf (343 sqm), 2-car garage, built in 2005. On gated 8.5 acre-island with own fitness center, spa, heated pools, children's play center, conference room etc. 
$1,950,000: Miami Beach, 4/5, ca. 3730 sf (343 sqm), 2-car garage, private 40 foot boat-slip, built in 2005. Same location as above, but with a deepwater (read: no fixed bridges to the ocean) boat-slip.

$5,250,000: Highland Beach, 5/7.5, ca. 6100 sf (561 sqm), oceanfront, 3-car garage, built in 2009. End unit/corner on 200 feet of private beach, completely reinforced concrete exterior walls, floor to ceiling hurricane impact/resistant doors and windows.

Eying the trophy, you will have to decide what is most important to you. 

If it absolutely, positively has to be a newer (year 2000 and up) modernist single family house, prepare to budget at least ca. $780,000 (with exceptions, but not many). A newer modernist townhome – most likely built after 2003 – is a viable alternative and can be found from ca. $300,000 and up. And if that still does not appeal to you, take your pick from the considerably larger selection of mid-century modern homes on the market.