MIAMI—Condos are going up left and right in Greater Downtown Miami—and in other parts of South Florida. But is multifamily a better bet? At least one developer thinks so.
GlobeSt.com caught up with Andrew Hellinger, CEO of River Landing Development, to find out why he's building market-rate rental units in the Miami Health District instead of condos in part three of this exclusive interview. You can still read part one: Is Miami 's Health District Next Big Thing? and part two: The Evolution of the Miami River District.
GlobeSt.com: Why are you building market-rate residential rentals instead of condos like most contemporary developers?
Hellinger: The reason is simple. We want to provide housing for the professionals and medical students who work and study in the area. If we were to build condos, we would have to require high deposits, probably about 50% of the purchase price, and financing for condominium remains limited. That creates a high barrier for Miami's residents.
Due to these conditions, most of the condominiums being built in Miami in this cycle are being sold to foreign buyers buying in cash. We want River Landing to cater to members of our community who want to live in a luxury apartment two blocks away from work and in a vibrant community rather than driving more than an hour to get to their suburban home. We believe the needs and demands for residential in the Health District is best served via luxury apartments than another condominium project.
GlobeSt.com: What kind of feedback are you getting from the retail community?
Hellinger: The retail community has been supportive of River Landing and interested in being part of River Landing success. Retailers understand our vision and understand River Landing's strategic location within the City of Miami and Miami-Dade County and its future as a destination retail center for locals and tourists.
Urban centers are driving retail growth across the nation, placing River Landing in high demand. Also, let's not forget Miami-Dade County's retail market is one of the strongest in the Southeast region, with Florida having the lowest retail space per capita.
Recently, I was discussing River Landing with Warren Weiser, co-founder of CREC and one of the region's most respected retail experts, and he said he had been ambivalent about River Landing going to the Health District when it was first announced a few years ago. But now, knowing River Landing plans and its roster of tenants, Warren considers River Landing to be a game-changer for the district and a transformative force for an area that has so much potential for commercial development.
Mark Gilbert, head of Cushman & Wakefield's national retail investment group in Miami, also endorses the development. He believes there is a clear demand for retail in that area, especially as the Health District becomes connected to the downtown market through new developments along the Miami River.
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