The South Florida multifamily construction cycle is coming to an end, with many developers now seeking to sell their development sites after a period of rapid expansion during the pandemic. Rising costs for land, financing, and construction have contributed to this shift in the market.
Developers are also offering more concessions to tenants as a large number of completed projects in 2023 and 2024 have put downward pressure on rent growth. In some neighborhoods, rents are beginning to fall. Despite these trends, some developers insist that high costs are not the main reason for listing their sites.
“Some of these guys bought at the top of the market. They were overleveraged, and they thought everything ws going to keep being peachy, that the rents would be peachy, that with Trump being in power, interest rates would have dropped,” said Miguel Pinto of Apex Capital Realty. “None of that has happened.”
Not all developers are publicly listing their properties but remain open to selling if offered a suitable price. According to Sebastian Faerman of Fortune Christie’s, those who have not started construction by now are unlikely to proceed with new projects during this cycle.
Some property owners never intended to build but instead planned to buy land, secure entitlements, and resell—sometimes using incentives from Florida’s Live Local Act designed to increase density and height allowances for workforce housing.
In Wynwood, Clara Homes listed its site—formerly home to Austin Burke menswear—for nearly $11 million after purchasing it for $7.7 million and securing approval for a 22-story tower under Live Local Act provisions. James Curnin of Clara Homes explained his decision: “I just want to move to bigger and better things.” He acknowledged high inventory in Wynwood but cited delays in site plan approvals as another factor.
Other notable transactions include Patrick K. Willis selling a Fort Lauderdale mansion for $27.4 million and Favo Capital acquiring a Hollywood apartment tower through an all-stock deal valued at $190 million.
On the luxury end of the market, Todd Michael Glaser and the Posner Group aim to flip a Miami Beach estate they recently purchased for $105 million; it is now listed at $169 million or available for rent at $495,000 per month.
Florida’s population reached 23 million last year and is projected by state analysts (Demographic Estimating Conference) [https://www.bebr.ufl.edu/population/florida-population-estimates-and-projections/] to surpass 24 million by 2027. However, overall growth rates are expected to slow over the next few years.
