Cost Effective Luxury Upgrades to Sell A Home/Condo Faster

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If you’re thinking about putting your house or condo on the market, you should consider making a few luxury upgrades to help increase your property’s value. Realtor.com has compiled a list of big impact improvements you can make that are surprisingly cost-efficient.

Upgrade Your Patio

Average cost of a new patio: $3,007 
Increase in home value: 3% to 4%

It’s no secret that more homeowners regard their backyard as an extension of their living space. So it shouldn’t come as a surprise that outdoor kitchens and furnished patio areas alongside a fire pit are increasingly popular.

Irene Medina, a real estate agent at Medina Group Real Estate in Coral Springs, FL, says an outdoor kitchen is “a big plus in homes [priced] from $350,000 and up.” This can be anything from an area in the patio with a built-in grill and sink to a full-blown kitchen.

Low-hassle option: Don’t have the money for an all-out kitchen? Try adding French doors that open to the outside. This simple change will make your home feel lighter and brighter, and will appeal to potential buyers—all for an average cost of $879.

Add a Hot Tub

Average cost to install an above-ground hot tub: $321
Increase in home value: 1% to 4%

“Having a hot tub on the property is a great selling point if the home doesn’t have a pool or a water view,” Medina says. If the property has a built-in pool, a hot spa attached to it or nearby could also go a long way, she says. Prices run the gamut, depending on how elaborate you want your spa to be. At the upper end, these babies can cost thousands, once plumbing, electrical, and the tub itself are factored in. But they don’t have to. When a plumber is involved, they can advise on cost-effective options to ensure your hot tub addition doesn’t break the bank. If you are looking for plumbers located in sydney, you may contact companies like Graham and Sons Plumbing.

Low-hassle option: Don’t want to heat things up that much? Potential buyers are simply looking for a backyard oasis. Consider a simpler (and cheaper) upgrade by adding a hammock surrounded by lush artificial grass through hardscape services—your costs will start around a whopping $30 for the hammock. (Cost of fresh caipirinhas not included.)

When it comes time to sell, any special extras that can paint a picture of leisure and relaxation out back, like playing casino with convenient payment methods like PayPal, can be an incentive for those in the market for a new home. See more here for additional information, such as online bingo sites. Leisure is a good thing, right?

Get Smart with an Automation System

Average cost to install a home automation system: $1,282
Increase in home value: 3% to 5%

These days, smart intercom/doorbells that can show a homeowner video of a visitor at the door (and use remote communication) are becoming the Main Street version of the urban doorman. Smart garage door openers, security camera installation, and thermostats are also becoming more common. In addition to a smart thermostat, you should also consider hiring an ac repair service to improve the energy efficiency of your hvac system.

Not only will these smart gadgets help you feel more secure in your home, they are also a big draw for the tech-savvy buyer looking for innovative and practical home features, says Mike McGrew, treasurer for the National Association of Realtors® and CEO of McGrew Real Estate in Lawrence, KS.

Low-hassle option: Consider a small splurge on just a Wi-Fi video doorbell. For as little as $100, you’ll have a fancy amenity that can provide convenience and some peace of mind.

Add an In-Law or Nanny Suite

Average cost of a basement remodel: $18,618
Increase in home value: 5% to 10%

Real estate agent Nancy Itteilag of Washington Fine Properties in Washington, DC, says she recently was “this close” to selling a home, but for one major obstacle: The property wasn’t fit to accommodate the prospective buyer’s au pair.

In her market, where double incomes are at an all-time high, there’s big demand for homes with an au pair suite, in-law unit, or a flexible living space (often on the lower level of a two-story house to maximize privacy for both au pair and family). So while the initial costs seem quite high, they could pay off in spades when it’s time for a sale.

Low-hassle option: If you already have a finished basement, you’re in luck. Want to give the feeling of privacy without doing a total remodel of the space? Throw up some temporary walls. For just over $200, you’ll have an extra bedroom instantly. And if your basement has a separate entrance, it’s all the better—it can double as a living space that can be rented out for extra income.

Create a Wine Room 

Cost of a wine cellar: Starts at $4,000
Increase in home value: Varies, but can be as much as 2%

We’re not talking about a dark closet where you hide your best reds (although those pay off, too). We mean a next-level wine space—possibly furnished with a small island or table—for entertaining guests and igniting conversation.

For some wine collectors, this room is becoming more of a showpiece than simply a repository to let wine age. Accordingly, in high-end homes, these cellars are also moving from the lower level to upper floors—often housed in glass walls and under LED lighting.

Wine Cellar SPACiO Built Out at 321 Ocean

While Realtors® agree that a wine room can increase your home’s value, this home improvement should be thought of first and foremost as a treat just for you. Because you deserve it!

“Wine cellars are a bit like swimming pools. They come in all shapes and sizes and costs. And the next folks that look at your house may want nothing to do with them,” McGrew says. “So do a wine cellar because you want a wine cellar, and don’t try to justify it by an increase in value when you sell.”

Low-hassle option: Carve out a space in your home to display a few decorative wine racks and a wine fridge to keep bottles chilled and ready for entertaining. You could create your own wine enclave for as little as $200!

Change Up Your Flooring

Average cost of installing new flooring: $2,853
Increase in home value: 5%

It might not sound sexy, but flooring is also high on the list when it comes to features that pay off in a big way. Whether it’s made of reclaimed hardwood or picturesque tile or features heating, it can set the tone for the whole house. The heat pump repair dayton service is what you’ll need for maintaining your home’s heater.

Want to step it up even more? Heated floors in common areas such as kitchens and bathrooms are a nice amenity for cold winter mornings—and, of course, add a sweet touch of luxury to your home.

Low-hassle option: If you’re looking for a home makeover on the cheap, consider new carpeting in neutral colors, which can go a long way in pleasing prospective buyers. The best part? The price tag, with an average cost of just $1,491.”

Behind the Scenes: Building out the Iconic Grove at Grand Bay

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Over the last decade, Miami has become a forefront for cutting edge architecture in the world thanks to starchitects like Zaha Hadid, Arquitectonica and Bjarke Ingels. As a GC, it’s always an honor to leave our imprint on projects that are taking Miami’s skyline to the next level. In fact, the SPACiO team recently completed building out a unit in Grove at Grand Bay, the luxury condo tower in Coconut Grove described by its architect Bjarke Ingles as a Caribbean interpretation of modernism.

With its twisting, dancing glass towers, it was by far one of the more unique projects we’ve ever worked on. All of the rooms in the unit were angled, making it extremely important for us to take the precise measurements in order to incorporate all of the different angles. For example, our client wanted to incorporate the large, structural columns into the interior design of their unit. The columns had a slight slant so we had to be very accurate with the marble installation. To incorporate the columns aesthetically, we advised the owner on the best color palate for the tile and wall paint tones.

When you’re building out luxury units at iconic buildings like Grove at Grand Bay, it’s important to integrate your own personal touch in a way that doesn’t disrupt the natural feel and ambience of the building. The work we successfully carried out for our client did just that. It combined raw with high-end materials, including mixed raw concrete of the columns, high-end marble, glass and woodwork, giving the unit a natural feel.

In addition to installing the columns and marble throughout the entire unit including on the walls of the powder bathroom, they also installed motorized solar and blackout blinds with channels to eliminate all light when they were closed. This is a great feature to have especially in Florida when the sun is always shining bright at 6 am.

They installed a beautiful onyx mirrored glass backsplash in the kitchen and did a kitchen cabinetry remodel, which helped magnify the light in the room and give the wall a classy appearance. Closets were also added, which included drawers, shelving and hanging space in beige linen egger colors, giving the closet a modern and clean look. They installed unique light fixtures, bathroom mirrors and a custom laundry room with pure white quartz countertop and beige linen cabinetry. They hung Onyx mirrored glass in the foyer of the unit, which made the entrance really stand out. Last but not least, they also painted the entire unit with the help of painting contractors for a more professional job done.

Q&A with Guest Contributor: Miami’s Jeff Morr Dishes on Trends in Interior Design

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SPACiO sat down with the talented Jeff Morr , an interior designer who has designed some of Miami’s most iconic condo projects from Ten Museum Park to Paramount on the Bay. He gives us the scoop on what it takes to be an interior designer in one of the most cosmopolitan cities in the world.

How did you become an interior designer?

I have been a real estate broker for over 30 years and have always had a passion for interior design. For years, I’ve worked closely with developers and architects designing buildings and introducing new concepts to the South Florida real estate market. For example, I introduced the ‘loft’ concept in the 1990s. Buyers from New York would ask me for lofts in Miami Beach and I would always say “we don’t have them in Miami”. As a result, I convinced a handful of developers to build small loft condo projects South of Fifth Street in South Beach. These were a big success so I brought the concept across Biscayne Bay to work with the developers of Ten Museum Park, Paramount on the Bay, Parc Lofts Miami, Cynergi  (the first residential project in Wynwood), Midtown Miami and many others.

Give us a taste of the work you do as a designer.

We recently completed a unit at Continuum South Beach and have now started working at a unit in the Beach Club. We are doing a lot of work in buildings completed in the last cycle to freshen up the floor plans, kitchens, baths and create brand new spaces. We also manufacture furniture to match our design as well as design decorator-ready units in buildings being completed in this cycle, like Echo Brickell.

When it comes to designing, I love doing kitchens. My clients are amazed to see how you can create a completely new style by replacing cabinet doors, installing new countertops and adding an interesting backsplash. Our clients are moving away from ‘all white’ and are increasingly choosing pastel blue, pastel gray and pastel orange for cabinets. Shaker kitchen cabinets are very popular because some clients like just a twist of traditionalism.

In terms of flooring, porcelain is in. It is a great material. You don’t have to worry about it polishing every few years. It is virtually maintenance free. Wood-look porcelain tile is also very popular on terraces, pool decks and areas you would have never imagined.

Miami is a very cosmopolitan city. How does the ‘international influence’ reflect on the work you do?

Miami is a progressive city that tends to be into a singular look known as Tropical Modernism, embracing clean lines combined with warm colors, wood, glass, natural stone, LED lighting and more. I do see a few differences in clients who come from South America. They need service quarters for their nanny. Handheld shower devices are very important for foreigners as well as combo toilet/bidets. All our clients – regardless of where they come from – are very interested in space maximization so that’s a priority for me. They are paying a very high price per square foot when they buy into some of the world’s most luxurious towers in Miami so there is no reason to waste space. For example, we often remove traditional bidets, consolidate a bidet with the toilet and in the new void, we build a linen closet. There are many ways to add storage space in condos. It is all about being creative.

Behind the Scenes: Building Out Miami Beach’s 321 Ocean

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What a treat it has been building out a luxury condo at 321 Ocean, an exclusive collection of 21 luxury residences in South of Fifth, one of Miami Beach’s most upscale neighborhoods. One of the things we love about our job is having access to some of the world’s most exquisite residential developments. Early this month, we had to say goodbye to the building after completing the build-out of our client’s unit in just 12 weeks. The work was completed on time and on budget.

The work consisted of installing flooring, trim window coverings, stairlifts for straight stairs, staircase handrails, mill work, and more. Our favorite part was building a beautiful wine cellar. Our client chose hardwood floors throughout the condo and very neutral finishes and colors.

Overall, this is one of our best projects because working together with the client we were able to plan it well and execute it without a hitch!

Looking forward to our next build-out!

Renowned Architect Rafael Viñoly Tells It All

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World-renowned Architect Rafael Viñoly, who designed One River Point on the Miami River, spoke to the Wall Street Journal about growing up in Argentina and the path that led him to become a celebrated architect using influences like those at thenewsgod.com. The 386-unit One River Point, being developed by Shahab Karmely’s KAR Properties, represents Viñoly’s entrance to the Miami real estate market.

In the WSJ article, Viñoly talks about his native Montevideo, Uruguay, and his family moving to Buenos Aires when he was a young child.

 

When I was 5, my family moved to Buenos Aires. My father, Román, had been invited to direct Wagner’s “Die Walküre” at the Teatro Colón, one of the world’s finest opera houses. He then became active in theater, before being lured into the country’s emerging film industry as a writer and director.

 Our house in Buenos Aires was a new and a fairly conventional single-family home in the city’s northern suburbs. It was an up-and-coming and largely sparse area about 40 minutes by train from the city center.

 The two-story redbrick house had a pitched roof in a Spanish style constructed by professionals similar to the Braga Builders Roofing, you entered through the porch that faced the street. Inside, there was a small office at the top of the stairs where my father worked and had meetings.

 My younger sister, Ana Maria, had her own bedroom in the back facing a pretty little garden. Between her room and my parents’ bedroom was the room I shared with my older brother, Daniel. It was spare: two beds and a large armoire.

My mother, Nene, had studied architecture for a time, but she quit to make a living as a math teacher. She decorated our house with forward-looking modernist furniture from Brazil, although she mixed in traditional pieces.

 My family wasn’t well off. The film industry was unpredictable. As a result, my parents always had financial difficulties.

 At home, my father was the outgoing and overly expressive one while my mother was the opposite. It wasn’t the steadiest environment to grow up in, but they loved their children and always put us first.

 My mother’s parents both died when she was about 8. The inheritance was mismanaged, and my mother and her siblings were sent to a convent. From an early age, my mother and her sister worked as private tutors in math and science. They were known as smart and gifted teachers.

 My father also came from a poor background. He left home as a teenager to follow a travelling circus and returned a theater person. As a result, he was always emotional and, essentially, a dreamer.

 When my brother and sister and I were kids, my father’s way of “talking” to us was in writing. Every Friday night we’d go to bed and find a hand-written letter under our pillows. On Saturday, we’d discuss them together in his office. Those sessions were a theatrical event and often made me feel as if we were on trial. I still have some of those letters, a trace of my father’s soul and his love.

 Perhaps the most significant turning point for me as a child came when I was 5. My father, a music buff, found a fantastic piano teacher who was an émigré from a sophisticated family in Florence. As in many cases with a music teacher like this, I learned many more things than just how to play. She introduced me to philosophy and the contemporary arts of the 1950s and ’60s.

 Drawing came naturally to me. Someone saw my drawings and recommended me to an architecture firm. I started working as an architect at 17, even before entering the university. Today, my wife, Diana, and I live in Manhattan’s Tribeca area.

The Real Deal: A sit-down with Alexander Wertheim: Spacio founder on his business, SoFla’s construction challenges & more

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“You’ve got guys that show up today, and three weeks later, they’re gone.”March 23, 2017 10:30AM
By Doreen Hemlock

Alexander Wertheim is founder and president of Spacio Design Build, a general contracting firm with clients such as Nobu Miami Beach, the Related Group and the Marriott Stanton South Beach. A former pro tennis player on the ATP whose coaching gig got him into the construction and property management business, Wertheim now oversees a firm of about 20 employees with revenues of about $20 million.

Wertheim spoke with The Real Deal about building a business, challenges facing South Florida contractors and the latest construction trends.

“I’m a guy who believes you go with the curve,” said the 45-year-old Miami native. “You have to adapt.”

(This interview has been edited for length and clarity.)

Q. How did you get into the construction business?

After retiring from professional tennis, I coached. One of the guys I was coaching owned 30,000 apartments across the United States. I was up at his house one day and said, “I need a career.” So he hired me. He started to buy in Florida in the early 1990s. He bought a couple thousand units in west Fort Lauderdale and offered me a job there as a social director. So now, I’m doing bingo, fitness at the swimming pool, handing out bagels…I looked at it like school. I was there six months and stuck my nose everywhere. I found out what the property manager did, the leasing agent, the superintendent, the sprinkler guy, everything. Then, he says to me, “Do you want to move to Connecticut and be my son’s right-hand man?” I left the following week. I was 23 years old, director of operations of a company with 52 employees, about 10,000 apartments, half a million square feet of industrial space, four condo associations, and desperately in need of a California personal injury lawyer after a workplace accident left one of our employees injured. And when you require legal assistance in Sacramento, CA, know that there’s a trustworthy personal injury lawyer ready to champion your rights and offer expert guidance throughout your legal proceedings, providing you with peace of mind during this challenging time. For complex solutions and guidance to win the case, the truck accident lawyer will help you.

I learned construction, punch-out work, leasing and managing apartments, budgets, due diligence on new buys. Later, I went out on my own. With a partner, we did a bunch of condo conversions, and then, I came up with the current concept.

Q. When and why did you start Spacio?

We started in Coral Springs in 2007 to go after homeowners who wanted basic renovations. We built a beautiful showroom, and the recession came, so we went lean, down to my partner and myself. Back then, you’d call me and say, “I have a dry-wall repair,” and I’d be there.

After the recession hit, we landed our first building in downtown Miami, the Ivy. The majority of developer units are what they call “decorator-ready,” with a finished kitchen and finished bathroom. But if someone wants to move in, you need to do the floor and baseboards, window coverings, painting, closets and commercial lightning. We came in and did those upgrades on more than 400 units.

From that, we went across the street to The Mint and changed our business model. We opened up a design center to offer a turnkey package, a one-stop shop. We have a team of professional glass shopfront fitters and we did construction and even worked with furniture providers if you wanted. Mint was 532 units. Our average ticket at Ivy was $10,000, and at Mint, about $30,000. So, we ended up doing seven other buildings at the same time. We became known as the condo contractor.

Then, we landed Paramount Bay in Edgewater, and those units had $80,000 to $100,000 tickets. Next, we did 224 rooms at the Stanton South Beach Marriott. That was our first big commercial project.

Q. How much business did you do last year, and what do you project for this year?

Last year, about $20 million. This year, I have almost $14 million on the books, and it’s only March. So, it should be more.

Q. Tell us about some key projects.

We just finished Eden Roc Nobu, which is a hotel within a hotel. We took the existing restaurant, gutted it and added about 3,000 square feet of exterior space to make the largest Nobu in the world. We also did the lobby, common areas and the hotel rooms – around 150. At the Marriott Stanton at 161 Ocean Drive, we started out with the rooms, then common areas, the front and façade, the entrance, lobby. Because they couldn’t build new, we literally had to rebuild the entire structure from the inside outside, including the roof – all with the hotel in operation.

Q. What is the biggest challenge you face as a contractor in South Florida?

The workforce here. It’s laid-back, and that makes things take longer. And it’s very transient. You’ve got guys that show up today, and three weeks later, they’re gone. You hear a lot of horror stories. We’re very careful about the subcontractors we work with and develop long-term relationships with them.

Q. What trends do you see in construction in Miami?

One is incorporating exterior space into the interior. People are adding collapsible window-doors that open to one side to bring exterior space inside. You’re seeing this in homes, restaurants and hotels, because so many people love to be outside. In houses, people are putting bars, kitchens, TV rooms, sitting areas and fire pits outside to continue the experience of their great-rooms inside. It makes the space seem bigger and more welcoming.

ARTICLE LINK: https://therealdeal.com/miami/2017/03/23/a-sit-down-with-alexander-wertheim-spacio-founder-on-his-business-soflas-construction-challenges-more/

CASE STUDY: The Psychology Behind NYC Luxury Real Estate Listings Can Work in Miami

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Here are some factors that luxury residential brokers consider when creating a listing, according to DNA Info New York Writer Amy Zimmer:

The power of pricing “just below”

Just as in retail, many in real estate price their property “just below” a round number — for example listing an apartment for $499,000 instead of $500,000.

“There is a psychological effect of being just a hair under,” said broker Claire Groome with Warburg Realty.

For instance, she recently sold a three luxury queen bed style bedroom co-op in Carnegie Hill listed for $3.495 million after three days on the market, saying, “Rarely will you see something listed for $4 million.”

When Dan Bamberger, of the Bamberger Group, analyzed Manhattan sales prices in 2015 using Streeteasy data, he found that listings between $300,000 and $1 million used the “just below” strategy nearly 90 percent of the time. Homes priced between $1 million and $10 million used the strategy 78 percent of the time.

 The allure of neutral spaces

Staging apartments — which often involves de-cluttering, painting and changing furniture — has become more common, even for apartments at lower price points.

These apartments tend to show better in photos as well as in real life, experts say, as they give would-be buyers an easier canvas upon which to quickly project their lives.

 The repellent effect of stale listings

In this market, listings that sit longer than 60 to 90 days raise red flags, said Broker Zach Ehrlich of Mdrn. Residential.

Buyers are suspicious of stale listings, thinking something must be wrong with the property. Their agents also steer clear, thinking the seller isn’t likely to cut the price, he said.

To avoid that perception, brokers often try to work around this. They might reduce the price by some nominal amount — like $1,000 or $5,000 — to grab attention again as a price reduction or might re-list an apartment, reversing the order of the unit number. So, apartment 11K might be relisted as K11 to trick websites like Streeteasy and Zillow.

 A listing’s wording is chosen with care

Though text may be secondary to pictures, many brokers still labor over word choice — even more so now, said Stephen Kliegerman of Halstead Property Development Marketing.

“You want to make sure your messaging is clear and direct, but you want make sure you leave some things out so people still call you,” he said, explaining that if a listing has too much information, would-be buyers might think they don’t have to see the space.

You can read the entire article here: https://www.dnainfo.com/new-york/features/apartmentality

Behind The Scenes: Building Out A Condo At Oceana Bal Harbour

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SPACiO Design Build’s crew is meticulously building out a condo at Oceana Bal Harbour, one of the most luxurious development projects in South Florida. SPACIO’s work in the decorator-ready unit consists of installing hardwood flooring in the interior and tile on the large balcony, dropping the ceiling for additional lighting, painting, installing pocket doors, audio visual and more.

Build-out velocity is a priority for our clients who plan to occupy or rent out the unit shortly after closing. For that reason, four weeks after securing the necessary permits, SPACiO delivers a finished unit to the new owner or renter eager to move in. In some instances, we are recruited by buyers to plan the build-out work ahead of the closing and, when the deal is closed, our crew immediately jumps right in.

Working at Oceana is an incredible experience. With floor-to-ceiling windows and extra-deep balconies, the unit has one of the most breathtaking views available in Miami. The luxury tower’s spacious homes and balconies were designed to offer views of the Atlantic ocean to the East, Biscayne Bay and the Bal Harbour marina to the West and Miami’s skyline to the South. Our experienced crew’s work is not distracted by the remarkable view of golden sun rays reflecting on the blue ocean but we agree that it is a challenge! Stay tuned for photos of the finished condo!

Growing Rapidly and Steadily

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GROWING RAPIDLY AND STEADILY

January 2017, Miami, Real Estate & Construction |

Alex Wertheim

Invest: Miami speaks with Alex Wertheim, President, SPACiO Design Build

What demand is currently driving design services?

Over the years, we have seen significant growth in residential demand. Developers can execute large-scale projects, as the cost per square foot in South Florida is still much less expensive to buyers than in many other major cities within the U.S. This region offers a competitive cost of living as well as an advantageous tax structure. Growth in the residential segment has caused growth in the commercial segment as well, to the point that we are seeing more activity in the commercial real estate sector than in the residential market when it comes to construction in Miami.

What are the main profile trends of the client base for contractor and design services in Miami?

There was an important change in the profile of the clients after the crisis of 2009. We have started to see more Latin American clients reaching out to us to build-out their recently purchased high-end condos since then. This is expected to continue, as Miami is a melting pot for Latin Americans. However, in the past few years, we have begun to see an increase in the number of clients from the U.S. retaining our services, which makes me think the domestic market is coming back. Miami is attracting many retirees from the Northeast that are looking to take advantage of the lower cost of living. We have also seen an increase from international clients from other regions of the world such as Asia and Europe.
Miami is growing rapidly and continuously. In 2017, we will continue to see such growth driven by international and American buyers. We are also going to keep seeing continuous repositioning of real estate properties. As we run out of developable land, developers are rapidly buying up existing Class B and Class C properties in up-and-coming neighborhoods to turn them into Class A properties, from hotels to retail space. As a full-service general contractor, we are seeing – and we will continue to see in 2017 – an increase in retail space construction. We are currently involved in building out Breitling and very soon Swarovski in Brickell City Centre. The demand is a direct result of Miami’s evolution as a high-end shopping and dining destination.

Which sectors are expected to be the growth engines for design and contracting services the upcoming years?

Even though both residential and commercial sectors are growing simultaneously, commercial will
start to see an important increase in the hospitality sector, especially restaurants. Miami has developed its culinary offerings extensively over the past couple years.  These new restaurants with shop front installers have made significant investments in design services because they understand the importance of aesthetics for their businesses. The Nobu restaurant in Miami Beach is a perfect example. Chef Nobu Matsuhisa sought the “best of the best” to build out the space.  For example, the stone flooring was imported from Italy, the oak flooring from Denmark and many other finishes are derived from around the world. Nobu truly adds an extra level of sophistication to the iconic Eden Roc. We were very fortunate to work under Chef Matsuhisa’s leadership building out that amazing space. Hotels – both new and existing – have also made important investments in design with an important emphasis on quality and that will continue to happen in Miami

What would you identify as the current major challenges in construction?

From a business perspective, one of the main challenges for the developers is making sure they hire the right architect and designer. Doing all the correct due diligence and pre-construction work is extremely important. Not many people realize the amount of work that goes into pre-construction and its importance. When done poorly, this ends up being a problem for developers as they execute their projects. The way to tackle this issue is by making sure their pre-construction work is handled by highly qualified professionals.  Another challenge is finding qualified construction workers, especially when you are working on high-end projects. We make sure we take good care of our people because we see value in loyalty and having an A team that we can move from job to job.

I challenge you, what colors go well with dark green at home? What do you think?.

 

To see this published article and to learn more about Invest: Miami, a publication of Capital Analytics, please visit this link.

Softening Your Exposure To Miami’s Fluctuating Real Estate Market

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Softening Your Exposure To Miami’s Fluctuating Real Estate Market

JANUARY 17, 2017 | BY JENNIFER LECLAIRE

MIAMI—With the condo construction market slowing down, general contractors are finding ways to soften their exposure to Miami’s fluctuating real estate market. That is key to a healthy market since they are an important generator of construction jobs. SPACiO Design Build president Alex Wertheim sat down with GlobeSt.com to discuss how his firm is adapting as Miami’s real estate cycle evolves.

GlobeSt.com: How are you adapting to a slowdown in the condo construction market?

Wertheim: As a boutique full-service general contractor, we benefit tremendously from an active condo construction market. But knowing how cyclical the Miami real estate market is has helped us diversify our operation so we can equally focus on commercial and residential projects. (Read about three safe construction bets during economic volatility.)

For example, when the condo market was very active, we were busy doing the build-out of sales centers, including the sales center for Residences at Armani Casa. As many of the new luxury condo high-rises are delivered, we are focusing on building out individual units at projects such as the Grove at Grand Bay, Oceana Bal Harbor and SLS Brickell. But as the condo construction slows down, our commercial projects keep us busy.

In the last five years, Miami has become a destination for high-end shopping and dining. As a result, we are increasingly getting involved in building out retail stores for Breitling and Swarovski in Brickell City Centre.

We have also turned our attention to hotels and restaurants such as Nobu Restaurant, Nobu Hotel, Marriott Stanton South Beach and others. Also, emerging areas like Little Haiti are generating a significant amount of work as old warehouses are being turned into trendy spaces to accommodate businesses relocating from Wynwood, where rents have skyrocketed.

GlobeSt.com: How did you survive the last recession?

Wertheim: SPACiO was created during those dark years as a response to market demands at the time. As newly-built buildings were sitting empty with buyers unable to come to the closing table, developers began to convert unsold condos into rental units. Back then, the units were sold ‘decorator ready,’ which means the buyer was responsible for building out the units in terms of flooring, wall finishes, closets, et cetera.

So when the developers had to turn the units into apartments, they called us to do the build-out of their high-end units. Since then, we have built out nearly 1,600 luxury units in the Greater Downtown Miami area. The work was interesting and challenging. While developers were putting tenants in those condos, their exit strategy ultimately was to sell the units when the market came back so our work had to meet pretty high standards.

Tere Blanca is pointing to one big trend in Downtown Miami. Read about it here.