MIAMI—Ezra Katz sees opportunity in South Florida. His company, Mayan Properties, is working on key projects in the region—and has his eyes on the next big thing.
GlobeSt.com caught up with Katz to continue our discussion on capital markets. We asked him about his hospitality industry projects and which sectors of the Florida market show the most investment promise. Be sure to read part one, “Capital Markets Pro Reports 'Surge of Activity' that ran in this morning's exclusive interview.
GlobeSt.com: Your Hyatt Place project represents your first ground-up development in Miami. How did you decide now was the right time to develop in your backyard?
Katz: Our hospitality business in the US has been very active, with projects in the Carolinas, Texas, New York and now in Miami. The South Florida market is experiencing record-levels of international tourism and we expect those numbers to remain strong, which led us to break ground on the 135-room hotel in the Miami International Airport area.
The hotel will become the city's first Hyatt Place built from the ground up, and we think this brand will fill a niche in the market by appealing to business and leisure travelers. We partnered with Concord Hospitality and Travelers Hotel Group to finance and build the $21 million hotel, which we expect will open in late 2014.
GlobeSt.com: Which sectors of the Florida market offer the most investment promise right now—and why?
Katz: We are focusing on investing in new developments rather than acquiring existing assets, because we feel many of those properties are priced too aggressively. We expect hospitality market dynamics to remain favorable across the state in the near future.
In South Florida specifically, we are bullish on Miami's urban core, the Miami International Airport area and Miami Beach. These markets are experiencing elevated demand, as the aggressive pricing for existing hotels and newly-announced projects indicate.
GlobeSt.com: Miami's condo market is on fire, but there have been whispers of another bubble. Where does the trajectory of the market stand today and where will it lie this time next year?
Katz: Looking at the Miami market right now, I believe there are enough condo projects rising or planned to supply the market for the next four years—and that's under the premise that no additional projects are launched. If condo buyers continue to put up substantial cash deposits, then lenders will continue originating construction loans. Developers entering the market with new projects should take caution in evaluating future buyer demand.
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