The Discussion: Billionaire Developers From Diverse Backgrounds Bet on Miami’s Luxury Market
In a bold move that defies market trends, billionaire real estate developers, one from Cuba and the other from Iran, are joining forces to unveil a luxury condo and hotel tower in Miami’s bustling heart. CNBC’s Diana Olick, in an exclusive conversation with both visionaries, delved into their risky venture and their shared belief in the resilience of the Miami market, amidst discussions on fellow developer President-elect Donald Trump and the essence of luxury.
Luxury, it seems, is the pervasive theme at Miami’s latest architectural marvel, the SLS Brickell. Boasting 450 opulent condos, adorned with James Beard Award-winning restaurants and a luxurious hotel, all within a vibrant tower, this collaboration marks a significant milestone for Miami’s acclaimed “condo King,” Jorge Perez of Related Group, and the renowned California-based hospitality magnate, Sam Nazarian of SBE Entertainment Group.
Reflecting on their partnership, Perez expressed profound admiration for Nazarian’s ability to shift the gravitational centers of cities with his projects, acknowledging the privilege of being chosen as collaborators. The project’s remarkable success, selling out within a mere 90 days of pre-construction in 2013, is a testament to the allure of their combined vision at a time when Miami’s real estate market was thriving.
However, the narrative has shifted since then. With condo sales plummeting by 25% compared to the previous year and prices experiencing their first decline since the recession, the Miami market appears to be cooling off. Despite these challenges, both developers exude confidence in their investment, emphasizing the project’s appeal to buyers seeking safe havens rather than speculative ventures.
Nazarian pointed out that their buyers were driven by a desire for either a second home or rental properties, tapping into the significant demand for rental accommodations in Miami. This astute understanding of market dynamics underpins their optimism, even as external factors like the emergence of President-elect Donald Trump loom large.
Interestingly, the project’s success was sealed before Donald Trump’s political ascendancy, suggesting that international buyers, who make up a substantial portion of Miami’s condo market, are drawn to the city’s intrinsic charm rather than transient political landscapes. With approximately half of Miami condos sold to international buyers, the immigrant population not only fuels real estate but also forms the backbone of the labor force responsible for building these architectural marvels.
The ethnic backgrounds of Perez and Nazarian, Cuban American and Iranian American respectively, underscore the diverse tapestry that characterizes Miami’s entrepreneurial landscape. Despite their differences, they share a common belief in the promise of the American dream and the pivotal role of immigrants in shaping the nation’s narrative.
In discussing the implications of Donald Trump’s presidency on their industry, both developers strike a diplomatic tone, emphasizing the importance of consistency and inclusivity in policy frameworks. Perez lauds Trump’s international branding prowess but stresses the significance of maintaining a welcoming environment for investors and immigrants, a sentiment echoed by Nazarian.
Ultimately, their venture epitomizes the essence of Miami – a melting pot of cultures, ideas, and aspirations. As they continue to erect towers that redefine the city’s skyline, Perez and Nazarian embody the spirit of resilience and innovation that has come to define Miami’s real estate landscape.
In conclusion, their collaboration serves as a testament to the enduring allure of luxury in Miami and the unwavering belief in the city’s enduring appeal, regardless of transient market fluctuations or political shifts. As the sun sets on Miami’s horizon, it casts a golden glow on the dreams and aspirations of two visionary developers, united in their pursuit of excellence in the Magic City’s ever-evolving skyline.