The "mini-boom" in downtown residential development today is being propelled by several trends:
- More of Florida's baby boomers are tiring of suburban living, according to market research. At the same time, the state has more young singles and married couples who have postponed having children and whose living preferences reflect personal style rather than suburban school patterns.
- In addition, for many, the suburban lifestyle is less appealing than it was a decade ago. Suburban lot sizes have shrunk, traffic congestion has increased and crime is no longer a stranger. Downtown Miami's Brickell Avenue neighborhood, for instance, has lower crime rates than most suburbs in Miami-Dade and Broward counties.
- New retail-entertainment centers, museums, libraries, sports arenas and other attractions are making downtowns more intriguing as places to live. Residential developers are also making their projects more appealing with major lifestyle amenities, as well as vastly improved housing. No longer are high-rise condos perceived as "vertical filing cabinets" for people.
- Another major attraction in many Florida downtowns is proximity to water. Study after study has shown water is the No. 1 motivating factor for Florida buyers, especially large numbers of second-home purchasers from other parts of the U.S., Europe and Latin America. From panoramic waterfront views to convenient access to marinas, the new downtown housing offers something that's unavailable in inland suburbs.
In the next few years, the statewide trend to urban living is likely to intensify, especially along the coasts. In south Florida, where land for new development is already becoming scarce, downtown residential redevelopment will strengthen in Miami, Fort Lauderdale, Boca Raton and West Palm Beach. Other waterfront cities, from Tampa and St. Petersburg to Jacksonville, may also be transformed into attractive urban living environments -- especially as more people observe friends and associates enjoying the benefits of urban living.
As Miami architect Bernard Zyscovich, principal, Zyscovich Inc. Architects, says, "In today's new economy, people are mixing up different aspects of their lives without the need to fit everything within a regimented time frame. Life is no longer 9 to 5, and our downtowns are starting to reflect that change."
Brickell Avenue
Nowhere is the move to urban living more pronounced than in Miami's Brickell Avenue neighborhood, across the Miami River from the central business district. Long dominated by high-rise office buildings and bayfront condominiums catering to Latin American buyers, Brickell is seeing a burst of residential and retail activity that promises to transform the look of downtown Miami.
Over the past four years, new shopping centers have brought suburban-oriented retailers such as Publix, Blockbuster Video and Walgreen's to Brickell, serving a market that needed their services. The Brickell Publix is so busy that the store uses a guide to direct traffic in the parking lot.
In addition, new restaurants, cafes and clubs are giving Brickell life after dark. Several residential projects are under way, including Three Tequesta Point in the island neighborhood of Brickell Key, The Mark, The Metropolitan, and Il Villaggio Brickell Bay. Construction is scheduled to begin this summer on Summit Brickell Grand, a $51-million, 15-story apartment tower with 405 upscale rental units, and Point Development plans a 26-floor condo building on Brickell with 359 units.
Even bigger projects are on the drawing board, including several mixed-use developments along the Miami River. On the north side, developer Ned Siegel is moving forward with One Miami, a massive high-rise complex with apartments, condominiums, hotel rooms, parking, shopping and office space. In addition, Harvey Taylor, president of Taylor Development Co., is planning River Renaissance I, an office-retail project, and River Renaissance II, with an all-suite hotel and a rental apartment complex. "The mixed-use concept is ideal for downtowns, where the idea is to work and shop within walking distance of home," says Taylor. "People are fed up with the traffic congestion and commuting from the suburbs. You also have an influx of Europeans and Latins into the Brickell area, and the demand for housing has just been getting better and better."
South of the river, Constructa, a French development company known for its groundbreaking CocoWalk retail entertainment center in Coconut Grove, is seeking approval for a mixed-use project with shopping, restaurants and a 288-room suite hotel. Taylor is planning another retail-office project with 240 apartments in partnership with BVT Coral Station.
Miami-based Terremark, together with Millennium Partners of New York, is developing the Four Seasons Hotel and Tower, a 64-story project with luxury condominiums, as well as offices, shops and hotel rooms. The two partners have also purchased 10 acres for Brickell Village, a $500-million mixed-use project with housing, retail, entertainment and cultural amenities. "Our Four Seasons Tower and Brickell Village are wonderful examples of urban infill," says Michael Katz, president of Terremark Real Estate Group. "They also help to verify the maturity of Miami and reaffirm Miami's status as the gateway to Latin America."
Brickell Residential Projects Under Way:
-- Three Tequesta Point at Brickell Key: 234-unit condominium development
-- The Mark: 359-unit condominium development
-- The Metropolitan: 199-unit condominium development
-- Summit Brickell Grand: 405-unit condominium development
Around the State
-- Gainesville is enjoying a renaissance with new outdoor cafes and shops and a pedestrian-friendly ambiance. Developers Ken and Linda McGurn, who have spearheaded redevelopment efforts in downtown Gainesville for nearly 20 years, are putting the final touches on Union Street Station, a mixed-use project with ground-floor shops and restaurants, second-floor offices and 51 condo units.
"Our buyers are people who want to get out of their cars, walk around and see people they know," says Ken McGurn, president of McGurn Investment Co. in Gainesville. "The number of people living downtown is really going up here."
-- Another urban hot spot is downtown Sarasota, where developer Jay Foley is renovating the historic Orange Blossom building as luxury condos. After selling out Sarabande, a 15-story high-rise with 37 condos, Tangerine Development is building Tessera, a similar project. Other new residential projects include Library Mews and Marina Tower on Sarasota Bay, as well as Renaissance, a 200-unit rental project.
"All this new residential development has certainly added to the allure of downtown Sarasota for commercial and retail companies," says real estate broker Marcia Wood, president of Marcia Wood & Co., and a member of the board of the Sarasota Downtown Development Authority. "There are other developers wanting to build, and finding the right sites is becoming more difficult."
-- Downtown Tampa is enjoying new retail and residential activity, from a new urban Publix to the Channelside entertainment center. Longtime neighborhoods such as Davis Island and Harbour Island remain popular, while the Bayshore area across the Hillsborough River is enjoying a boom in condo and luxury high-rise development. "The water is a big attraction, along with new amenities," says Larry Richey, senior managing director of Cushman & Wakefield. "Downtown Tampa is doing very well these days."
-- In Orlando, three rental apartment complexes are under construction by developers Post Properties, Echelon and Zom, and Lincoln Property has announced a fourth rental project.
In addition, there are several projects in the Thornton Park area east of Lake Eola with condominiums above ground-floor retail. "These are the first rental apartment developments downtown in 20 years," says William Moss, senior managing director of the Orlando office of CB Richard Ellis. "It's a brand new trend, and it may help our downtown retail market, which has been struggling."
-- The CityPlace redevelopment project in West Palm Beach is spurring interest in new residential construction elsewhere around downtown.
-- In downtown Fort Lauderdale, several new condo projects are under construction near the popular Riverwalk and Las Olas Boulevard.
-- In Jacksonville, Harbor Cos. is planning Berkman Plaza on the St. Johns River, the first major high-rise downtown housing development in more than 50 years.
Lewis M. Goodkin is president of Goodkin Consulting, a real estate consulting firm in Miami.