Over the last few years, the pandemic drove hundreds of thousands of people out of New York City. Some of these individuals were escaping NY rent prices, while others just wanted more space to spread out during the peak of social distancing mandates. Now, there's a new wave of people seeking property across state lines. The Real Deal reports that some of New York's wealthiest are investing millions in South Florida real estate.
Where the Wealthy Real Estate Investors are Buying
According to the article, big investors are spending their money in South Florida, near or in the Miami area. In particular, Harry Macklowe bought a 1.7-acre tract of land situated by the Metrorail tracks for $32 million. Mr. Macklowe isn't new to the elite real estate scene, and until the Great Recession of 2008, he controlled multiple properties in NYC, including the GM Building along the Grand Army Plaza.
There are several elements drawing investors to the Sunshine State, and in part, they're driven by others fleeing to Florida. For various reasons, including political preferences and economic opportunities, the state of Florida has seen an influx of new citizens. Those people need housing, and the elite investors recognize the opportunity.
The Investment Strategy
Like others, Mr. Macklowe plans to build a high-rise to accommodate the housing needs of South Florida residents. Included in his application is a 25-story, 11,455 square foot building. When finished, the building will include 448 units.
Harry Macklowe isn't the only investor banking on Florida real estate opportunities. Jeshayahu Boymelgreen hopes to benefit from the state's thriving tourist industry and intends to build a 200-key hotel room in Surfside, Florida. Notably, Mr. Boymelgreen may find Florida an attractive place to invest his funds since he's barred from certain real estate dealings in the state of New York.
Speak to a New York City Real Estate Lawyer
The dedicated team at the office of Melvin Monachan, Attorney at Law, understands your complex real estate legal needs. If you need help with foreclosure defense or another real estate issue, call (347) 389-1682, or contact us online today.