Miami Investment Presentation By: Carlos Calabuig
Table of contents Page:2 About Miami Page:3 Miami Economy Page:4 US Housing Bubble History Page:5 Real Estate Definitions Page:6 Foreclosure & REO Statistics/Graph Page:7 Positive Market and Investment Indicators Page:8 Miami Future Projects Page:9 – 12 Investing with National Citi Realty Page: 13 National Citi Realty Services GraphPage: 14 National Citi Realty Services Page:15-16 Contact Information Page: 17 Table of Contents
Miami is a well-known global city due to its importance in finance, commerce, culture, media, fashion, education, film, print media, entertainment, the arts and international trade it is known as “The Gateway to the Americas.” Miami is the most populous city and the center of South Florida metropolitan area. In 2008, the population of the Miami urbanized area had increased to 5,232,342, becoming the fourth-largest urbanized area in the United States, behind New York City, Los Angeles, and Chicago. Downtown Miami is home to the largest concentration of international banks in the United States It is home to several corporate headquarters and television studios the Port of Miami, is the busiest cruise ship passenger port in the world in both passenger traffic and cruise lines Miami Where the World Meets
While Miami’s principle industry is tourism, injecting the city with more than $9.9 billion annually in direct expenses such as hotel rooms, restaurants, shopping, transportation, and attractions. The city’s economy has become more diversified: Its close proximity to Latin America and the Caribbean make it the center of international trade with those areas. Almost $20 billion in total merchandise trade came trough Miami customs in 2002. In 2003, approximately 1,200 multinational corporations were established in the region. Miami International Airport is the nation’s top airport for international freight and 3rd for international passengers with an economic impact of $18.6 billion The Port of Miami ranked 1st in Florida and 9th in the United States and contributes $8 billion to the local economy. It is home to 64 foreign consulates, 25 international trade office, and 32 binational chamber of commerce. There are two free trade zones in Greater Miami, the Homestead Free Zone and the Miami Free Zone one of the worlds largest privately owned and operated zone Miami represents the largest concentration of domestic and international banks on the east coast south of New York with 100 commercial banks representing total deposits of 74.3 billion in 2003. Brazilian , British, Canadian, French, German, Israeli, Japanese, Spanish, and Venezulan banks have offices in Miami-Dade County. Miami Economy
Housing bubbles may occur in local or global real estate markets. In their late stages, they are typically characterized by rapid increases in the valuations of real property until unsustainable levels are reached relative to incomes, price-to-rent ratios, and other economic indicators of affordability. This may be followed by decreases in home prices that result in many owners finding themselves in a position of negative equity—a mortgage debt higher than the value of the property. The underlying causes of the housing bubble are complex. Factors include historically low interest rates, lax lending standards, and a speculative fever. In early 2005 housing prices peaked In 2006 and 2007 housing prices started to decline Increased foreclosure rates in 2006–2007 led to a crisis in August 2008 for the subprime market Year end 2009 a total of 3,957,643 foreclosures were filed Mid year 2010 a total of 1,961, 894 foreclosures were filed United States Housing Bubble History
What is a Foreclosure? Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. What is a short sale ? A short sale occurs when a home is sold for a price that is less than the value of the outstanding mortgage. Banks are now more willing to allow sellers to do short sales. What is an REO? REO is an acronym for real estate owned and is industry jargon for foreclosure property repossessed by banks or lenders. If a lender or bank is the highest bidder a foreclosure auction — or if no third party bids at the auction — the property reverts back to the lender and becomes an REO. REOs are owned by banks. Lenders go to great lengths to sell REOs. For banks, however, bank-owned homes are a liability. Bank-owned properties are usually sold at below-market prices with great terms like low down payments and low interest rates What is an Auction ? A method of selling real estate in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale. All properties are sold "as is" and prospective buyers should inspect the homes prior to the auction, so they know what they are bidding on. Moreover, an owner or tenant living in the house may or may not be cooperative about moving out. Definitions
Foreclosure and REO Trend Foreclosure Status Distribution Miami-Dade County, FL Foreclosures by Estimated Market Value Miami-Dade county, FL Average Sales Price Miami-Dade county, FL Foreclosure Sales Count for - Miami-Dade county, FL
Analysts expect Florida’s economy to grow about 1.5% in 2010 Prices seem to be stabilizing Inventories are shrinking With financing still difficult to obtain, cash buyers and the deep discounts on distressed properties are propping up sales In July pending home sales in Miami-Dade county was up 40.5% from July 2009 60 % of South Florida sales have gone to foreign buyers More than half of recent sales involve short sales and REO’s The number of real estate auctions in 2010 has risen 14 percent so far 6,000 properties in South Fla. under $50K The strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital Positive Market and Investment Indicators
Miami Future Projects Miapolis is a proposed skyscraper planned for construction on Watson Island in Miami, Florida. If approved, constructed, and completed the building would stand at 3,200 ft (980 m), with 160 floors, surpassing the BurjKhalifa in Dubai as the world's tallest skyscraper. Economic Impact: 46,000 construction and 35,000 permanent jobs $940 million annual tax revenues Paying-off Jungle Island $39 million debts to City $4 million annually on lease payments $200 million annual revenues for the airlines $25 million annual revenues for MIA $20 million annual revenues for the Port of Miami Injecting $2.5 billion annually in the local economy Free and constant international exposure for Miami General Information:
Water Park Miami Dolphins owner and real-estate developer Steve Ross intends to turn a 40-acre parking lot next to Sun Life Stadium into a water attraction pegged to a spring 2012 opening. Ecomomic Impact: It is expected to create approximately 600 construction jobs and an additional 400 jobs from the water-park operation and increase tourism stays in the area, according to a company release. The new park would be a unique attraction in South Florida. While the World Waterpark Association says an estimated 1,000 water parks operate in North America, none have existed in this area since Hollywood's Atlantis closed in 1992. The closest comparable park, Rapids Water Park in Palm Beach County, is slightly larger than the planned new project. Miami Future Projects Company estimates forecast nearly 700,000 visitors during the first year and and additional $7 million in local, state and federal taxes.
Miami Future Projects Miami Ballpark is an approved ballpark that is being built less than 2 miles west of Downtown Miami in the Little Havana neighborhood, on the site of the former Miami Orange Bowl. The ballpark will have a retractable roof, a natural grass playing field and 37,000 seats, including approximately 3,000 club seats and 60 private suites. Economic Impact: 5,000 jobs generated over the course of the construction and generated fiscal revenue for state and local governments. Range $50 to $60 million when hosting Jewel Events such as Major League All-Star Game and/or the World Baseball Classic Broke ground July 1, 2009 Opened April 2012 (projected) Owner Miami-Dade County Operator Miami Marlins Surface Grass Construction cost $515 million
Miami Future Projects City Square is a proposed 10-acre project by Maefield Development, located in the heart of Miami’s Entertainment District Miami, Florida. City Square is a three-phase, mixed-use project, which will include retail, an 11-story parking garage, two media structures, and a bay-facing residential tower on ten acres. The two media structures will be draped in a digital mesh. The structures will allow for civic, educational, cultural, informational content to be placed on the digital mesh. It will also allow for advertising and branding, in addition, pedestrians will be able to interact with them thanks to their advanced digital technology. Economic Impact: The City Square project will provide the City of Miami with revenues in excess of $3,040,000 annually after construction is completed inclusive of ad valorem taxes, parking surcharge payments, signage fees and sales tax rebates. Of this amount. $2,360,000 will be attributable to the parking garage, approximately $680,700 to the retail facility. The City Square project will provide employment for 4,900 workers during the construction period and 1,410 permanent jobs once construction has been completed
National Citi Realty is a real estate, investment, and management company headquartered in Miami, Florida. In the last decade, National Citi Realty has helped thousands of buyers, sellers, and investors through the complexities of acquiring, repositioning, and managing of real estate assets in South Florida.
National Citi Realty has the professionals , tools, and support to help investors take advantage of the best real estate market in decades. Interest rates are at their ultimate lows still below 5% and real estate inventory continues to increase with the number of foreclosures and REO properties entering the market daily. This is the best buyers market seen in years and property prices continue to be a bargain!
Investors from Asia, Canada, Europe, Mexico, and South America are all choosing South Florida as their location of choice for their second home, vacation home, or the place to invest. National Citi Realty is ready to help you make the best investment with the best returns. Having a well formed plan and strategy is the key to your success. We are here to help you identify the best course of action for your specific investment needs and identify the type of property you need to acquire , how to acquire it, and when to acquire it. It is no secret to anyone that South Florida is a heaven for investors that want to double, triple or quadruple their assets. It is also National Citi Realty mission to help you accomplish these goals. Investing with National Citi Realty