Architectural rendering of the District 225 condo tower, which will be the first to offer integrated Airbnb services to owners.
ARX SOLUTIONS
A new condo tower in downtown Miami will have a convenience that no one else can: an integrated partnership with Airbnb.
District 225, a 37-story, 343-unit building to be located at 225 N. Miami Ave., adjacent to the downtown Miami Dade College campus, will offer fully furnished, move-in-ready condos ranging from studios to two bedrooms. and priced from $ 350,000 to $ 700,000.
The $ 170 million project is a joint venture between Miami-based developers The Related Group, ROVR and BH Investment Group. Siegler Suarez Architects will design the exterior of the building. The Brooklyn-based Meshberg Group will take care of the interiors. The building is expected to be completed in 2023.
The District 225 tower is the latest example of “flexible living,” a buzzword real estate term that allows buyers to live in their condos part-time and generate income by renting them out to hotel companies for management when they are. absent.
The addition of rental giant Airbnb, however, sets the building apart from other hotel-branded condo buildings offering the same service, such as the 231-unit Yotelpad Miami, which is due to be completed this fall and is sold out, and the Waldorf. Astoria Hotel and Residences Miami, which recently launched presales.
“We have a licensing agreement with Airbnb, so it will be a transparent process,” said Jon-Paul Pérez, president of The Related Group. “The building was designed to maximize space and is pre-approved by Airbnb. There will be additional staff on site to handle arrivals and departures and cleaning of units. You’ve just signed a one-page deal and you can host your property on Airbnb. Short term rentals with other companies can be laborious.
Airbnb is the world’s most popular short-term rental company. According to its most recent public documents, the company reported a profit of $ 887 million in the first quarter of 2021, a 5% increase year-over-year, and total bookings stood at 64 , 4 million, an increase of 13% year over year. The gross value of the reservation (which includes host revenue, cleaning fees, and taxes) was $ 10.3 billion, up 52% year-over-year.
While there are dozens of existing condominiums in Miami-Dade that allow Airbnb listings, District 225 will be the first to be built with short-term rentals as part of its top-down design.
“We have worked with large-scale developers for a long time and Related was always on the list of those we wanted to work with to enable home sharing in their portfolio,” said Jesse Stein, real estate manager at Airbnb. “What’s great about this project is that you can host there one night a week or live there full time. One of the main details of this building compared to some of Miami’s other offerings is that the host keeps 97% of the listing price. There is nothing but the usual three percent charge [from Airbnb]. I have to admit to Related that they see the opportunity for the resident to make more money.
The building will be managed by Atlantic Pacific, based in Bay Harbor. Its staff will take care of all aspects of the Airbnb hosting process, from helping with listing and marketing the unit, to maintaining and cleaning the apartment. Short stays can be of any length.
According to Guestable.com, downtown Miami is one of the six most popular areas in the county for Airbnb, alongside Brickell, Wynwood, South Beach, Little Havana, and the Upper East Side. But these lists are maintained by the individual owners. District 225 will be the first in Miami-Dade County to incorporate service into its foundation.
Experts say the Airbnb brand will make District 225 different from other downtown condominiums with short-term rentals. According to a report released in April by Condo Vultures founder Peter Zalewski, there are currently 538 active listings in the Miami-Dade / Broward / Palm Beach area for condo-hotel units (condos that can be rented 365 days per year using short term rental contracts) with an average price per unit of $ 685,722.
This equates to a 41-month supply of housing stock (a healthy supply, i.e. the time it would take for all units to sell, is six months).
But because of the Airbnb brand and its international popularity, District 225 should be a slam dunk, Zalewski said.
“This could be a good strategy for Airbnb,” Zalewski said. “Miami is a condo lab. You determine what works here and then you implement it nationally. It could become a thing where Airbnb starts [contracting] buildings across the country. Condominium hotels have always been a challenge. Airbnb gives it new life because you have the option of renting it yourself. ”
Booming condos
Median prices of existing condos in Miami-Dade jumped 25% year-over-year in April, from $ 260,000 to $ 325,000, an indicator that potential buyers are considering living in condominiums after being excluded from the booming single-family home market, where the median price is now half a million dollars.
According to the Downtown Development’s Authority (DDA) May 2021 report “The Future of Downtown Miami,” there are currently 18 high-rise condos or apartments under construction in the DDA area, which includes Brickell, the Arts & Entertainment district and the Central Business District. 19 other projects are under development.
The total population of the downtown metropolitan area, which includes Midtown Miami and Wynwood, was 115,528 in December 2020, up from 40,466 from 2000, an increase of 185%.
“Downtown Miami is one of the busiest areas in the world for tourism, business and everyday life,” said Christina Crepi, executive director of DDA. “As Miami’s center of gravity has shifted to downtown, demand has brought 18 new hotels to downtown Miami over the past decade, bringing the total to 46 and many more are in the pipeline. Classes. As domestic tourism continues to rebound and international travel picks up again, we anticipate even greater demand for our hotels, restaurants and cultural and entertainment establishments. “
Pérez of the related group is also optimistic about the future potential of the city center.
“The Miami WorldCenter was a dream 10 years ago and now it’s become a reality. Paramount is built, ”he said, referring to the Miami WorldCenter condo developed by Paramount Ventures. “All retail businesses will be open by early 2022. All Brightline businesses have been leased. CitizenM is opening soon. This region will have more than 5,000 condos and apartments. Retail will be open by 2022.
“In five years, you’re going to have people walking around and hanging out in the streets. This fits our timing perfectly, as the demand outside of Florida continues to grow. “
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