Iragorri says clients who get in at the first 40% of a project's sales cycle capture the best pricing, and brokers who know that have an edge
South Florida's real estate market has a reputation for being expensive, and in most of Miami that reputation is well earned. However, that doesn’t mean the entire Miami market is out of reach for investor clients looking to break in.
North Miami Beach sits between two of the most established real estate corridors in South Florida, and both are trying to expand into the area. The public and private investment following that dynamic is significant, including a $2.5 billion infrastructure investment on 163rd Street at the Golden Glades interchange.
For brokers looking to help investor clients move into this rapidly growing area, one area sales director says there are a few important things to know to gain an upper hand.
Gilberto Iragorri (pictured top), sales director at The William Residences in North Miami Beach, said his project's summer sales activity tells a different story than most of the broader Miami market, largely because the area is more affordable than other parts of Miami.
"Before, in July, sales galleries were selling two, maximum three units," Iragorri told Mortgage Professional America. "Now you're seeing reports of 8, 10, 12 sold. It's just incredible. And happy to be here in North Miami Beach because it's an easy sell. The numbers work because the mortgage and HOAs and everything — your rent can actually pay for it. In other locations it's so expensive that the numbers don't work as well."
Who is buying and why
The World Cup's presence in South Florida earlier this year brought an additional wave of international visitors who converted into buyers, and Iragorri said the summer selling season, typically dry in Florida, has been unusually active.
He said demand at the project is coming from two distinct directions, with Latin American buyers historically the backbone of the South Florida market now joined by a growing domestic contingent.
Argentina and Colombia are both producing strong buyer pools, with the Colombian peso recently hitting a record 3,000 pesos per dollar, pushing Colombian investors toward dollar-denominated assets like Miami condominiums.
Domestic buyers from New York and New Jersey are a growing share of the mix, with many paying cash.
"The people from New York and New Jersey, paying cash — they don't need a mortgage," he said. "The prices in New York are crazy. And everybody's coming to Miami, and they see that they can buy a three-bedroom apartment with a nice view for less than $1.5 million in our case. So they buy two or they buy three."
What brokers need to understand
Iragorri said one of the most important things a broker can communicate to an investor client considering a pre-construction project is the pricing structure and how it rewards early entry.
"The prices are increased every 20 or 30 units that you sell," he said. "So if they come at the beginning — at the first 40% of the selling of the building — they'll get the better price. And the brokers are ready for those projects to come. When those projects come, they just come with the investors. And it doesn't matter if the investor already invested in two other condominiums. They'll just continue to invest because they understand that the price is incredible at the beginning."
For brokers advising clients on where in the Miami market to focus, Iragorri said North Miami Beach's development trajectory appears strong, with new rental condominiums, government infrastructure investment, and the presence of well-known developers signaling where the market is headed.
"If they get a little bit more educated and they're on top of the news, especially of what's happening in North Miami Beach now — you can talk to the commissioners, you can see everything changing," he said. "If you have a lot of rental condominiums coming, that means that people want to live there.
“In the end, the investor wants a rent that can pay their mortgage. So I would say to brokers, look at North Miami Beach and just put your investors there. They will get a good return. They will be happy.”
He said The William, designed by world-renowned architect Carlos Ott, is currently priced below $900 per square foot, which he described as rare for a luxury project in the Miami market, and five minutes from the beach. When architects of that caliber put their name on a project in a neighborhood, Iragorri said, it is worth paying attention.
"That tells you a story," he said. "When the top architects in the world are designing a building in North Miami Beach, things happen fast. It's like magic. Everything happens in Miami like magic."
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