Six months later: 1200 Brickell office condo-conversion

Discussion is over and the Island Gardens project (on a reincarnated Watson Island) is shaping up as an interesting waterfront development bringing another upscale name to Miami. The Shangri-La Residences will be integrated with two hotel towers, Shangri-La and Westin; the Super Yacht Harbor; Chi, The Spa at Shangri-La; high-end retail shops; world-class dining; a waterfront promenade; leisure gardens; and a maritime gallery. Incongruous as it sounds, a fish market is also on the drawing board, intended to revive a long-standing Watson Island tradition.

The Shangri-La Residences at Island Gardens, located on the upper floors of the Shangri-La Hotel, will offer the eponymous high service standards to residents of nearly 100 one- to four-bedroom luxury residences ranging from about 850 to 3,700 square feet with oversized terraces. Each residence will be fully furnished by Piero Lissoni, a leading Italian interior designer.

The Shangri-La Residences are following a growing trend: fractional ownership. Buyers will have an interest basis with eight fractions per residence so they can use the property for much longer periods than in a conventional condo-hotel situation. The expected Shangri-La Residences services include a chauffeur for airport pick-up and return, as well as in-town on call; pre-arrival shopping and custom-catered meals on request; delivery, unpacking and set-up of personal belongings prior to arrival; packing up and storage of personal belongings in a secure, climate-controlled environment after departure; and a full butler service and round-the-clock concierge. Among the amenities: a swimming pool, a poolside grill restaurant, a fitness center, a residents’ lounge and a library. No word on unit prices, but Island Gardens is scheduled to break ground this fall.

The Other Kind of Condo

Office condominiums are hot real estate news these days as professionals and businesses consider owning instead of renting in a rising market. Office rents in Miami-Dade are up more than 7 percent on strong demand with rising costs and declining vacancy rates — down 3.5 percentage points since the first quarter of 2006, reports the CB Richard Ellis real estate group.

In Latin America and Europe, office ownership is a well-established concept, compared to the United States where the industry is still young but growing rapidly. Condo office owners like the prospect of hedging against rent increases while building equity and the benefits of tax deductions of mortgage interest, real estate taxes and depreciation. A number of investors, too, find merit in holding the product long-term. (Note the preconstruction frenzy seen in residential condos is noticeably absent from office condos.)

In the six months since sales were launched at 1200 Brickell, a 20-story office condominium conversion at Brickell Avenue and Coral Way, 50 percent of the offices have been sold. Fortune International reports that this sales milestone follows their sellout of 1110 Brickell, the first office condominium conversion on Brickell, and indicates the strength of the office condo market. The building’s amenities, address and views of the Brickell skyline, Biscayne Bay and beyond have brought in law firms, media companies, financial institutions, an asset management group and an insurance company, among others. The sleek black-glass building features a newly renovated marble lobby housing a café, doorman service, limousine service with preferred rates and round-the-clock security. Morton’s, the Steakhouse, on the ground level is a popular power lunch destination. Office suites at 1200 Brickell range from 1,400 to 38,000 square feet, with prices averaging $425 per square foot. Ample parking, rare in the area, is available in the seven-level, 570-space parking garage. Reserved spaces are also available for purchase.

In downtown Coral Gables, Florida East Coast Realty, headed by veteran real estate developer Tibor Hollo and his sons Jerome and Wayne, has started construction of the 14-story, 2020 Ponce on the corner of Ponce de Leon and Minorca avenues. The Mediterranean-style, 130,000-square-foot office condominium with wraparound terraces on some floors, is 80 percent sold. Only two floors of units are still for sale, including two 12,900-square-foot penthouses offering 360-degree views. The building features the latest technology, security systems, concierge and valet. Designer-ready layouts range from $600 to $750 per square foot. Parking is four spaces per 1,000 square feet of office space.

Farther north, in the city of Miami Gardens, the sales center for Park Centre is now open on-site at 1111 Park Centre Blvd. Developers Nir Shoshani and Ron Gottesmann of NR Investments Inc. are converting Park Centre to office condos with environmentally friendly features incorporated into the renovation and design scheme. Office condos ranging from 500 to 7,000 square feet, some with private balconies and kitchens, are priced from $260 to $295 per square foot. Parking is four spaces per 1,000 square feet of office space. NRI is offering buyers up to 90 percent financing.

More Topping Off

The Magic City may be suffering from a case of less-than-spellbound attention (from a top Macy’s executive), but a few blocks north of the downtown core in the Biscayne corridor, Miami continues to shape up with new, mixed-use towers. Developers Terra Group recently topped off Quantum on the Bay at 1900 N. Bayshore Drive, close to the Carnival Center for the Performing Arts. Designed by architectural firm Nichols Brosch Wurst Wolfe & Associates, Quantum’s 51-story and 44-story towers — conventional condo units, lofts and penthouse, and 9,307 square feet of ground floor retail space — are scheduled for completion later this year. Building amenities will include a pool and sauna overlooking the bay, sports and fitness center, theater, art studio, and clubroom with billiard table, among others.

Kudos

Not quite Hollywood, but a Miami Oscar did take home the top number of awards for his company at the recent Florida BEST competition (sponsored by the Builders Association of South Florida). Oscar Barbara, the CEO of Coral Gables-based developer Quantum (no connection with the development described above), snagged a record 75 awards (including 20 first-place Platinum Awards). Categories included architecture, overall community, land planning, kitchen and bath, among others, for projects in Miami-Dade and Broward counties. Venetian Parc, a 672-residence community in Miami, and Altos del Mar, a luxury custom home community in Miami Beach, were among the big winners.

Coming Up

Tuesday, June 19, 9 a.m. – noon. The Westin Hotel, Fort Lauderdale (I-95 and Cypress Creek Road). Selling Seminar for real estate agents presented by Florida Direct Marketing Association (FDMA). Lois Geller, author of the best seller Sold!, will speak to real estate professionals about using the direct marketing tools that lead to more Sold! signs. Geller has been president of four direct marketing agencies, is a professor at New York University and author of four books on marketing. Info www.fdma.org or 1-646-723-3235.

Tuesday, June 26, networking 11:30 a.m., lunch program noon. Country Club of Coral Gables, 997 N. Greenway Drive, Coral Gables. CREW-Miami (Commercial Real Estate Women) presents a panel discussion, “Dollars and SENSE: Making Housing in Florida Affordable.” Members $35, others $45, walk-ins $55. Register at www.crewmiami.org.

Tuesday, June 26, cocktails 6 p.m., dinner 7 p.m. Arturo Sandoval Jazz Club, 6701 Collins Ave., Miami Beach. North Beach Development Corporation presents the 2007 Henri Levy Award Gala honoring BSG Development Corp.; Pablo Corazzini ~ Roberto Romagnoli; D/Weintraub Developers: MERCO Group. Henri Levy, 1883 - 1938, was a pioneer developer of North Beach who created Normandy Isle and built other significant properties in Miami Beach. Info: 305-865-4147, nbdc@gonorthbeach.com http://gonorthbeach.com.

Helen Hill is a freelance writer specializing in real estate and lifestyle topics. Please send news items on Miami-Dade real estate to hhill@miamisunpost.com.

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