The cycle of new multifamily construction in South Florida is coming to a close, with many owners now seeking to sell their development sites. This shift follows a period of rapid expansion during the pandemic, which was later met with rising costs for land, financing, and construction.
Developers are increasingly offering concessions to tenants as they try to lease up newly completed buildings. The surge in projects delivered in 2023 and 2024 has led to slower rent growth and even declining rents in some neighborhoods. Despite these trends, developers say high costs are not the main reason for listing their properties.
“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 sites but remain open to selling if offered an acceptable price. According to Sebastian Faerman, a commercial broker at Fortune Christie’s, those who have not started construction recently will likely not move forward this cycle.
Some property owners are land-bankers who never intended to build but instead aim to buy, entitle, and flip properties. These include those using Florida’s Live Local Act workforce housing law to increase site density and height allowances.
In Wynwood, Clara Homes listed its former Austin Burke menswear store site for nearly $11 million after purchasing it for $7.7 million and securing approval for a 22-story project under the Live Local Act. Clara Homes’ James Curnin explained the decision: “I just want to move to bigger and better things.” He also pointed out delays in site plan approvals as a factor—a common complaint among developers.
Meanwhile, billionaire Adam Neumann’s Flow and partners acquired a majority stake in Chetrit Group’s Miami River development—an ongoing project tracked by industry observers for years.
In recent residential transactions, Patrick K. Willis sold his Fort Lauderdale mansion for $27.4 million to Michael Andretti, a former race car driver and racing company owner. Willis had purchased the property for $12.5 million in 2021.
On the commercial side, Favo Capital paid $190 million for a 22-story apartment tower at 1818 Hollywood Boulevard in Hollywood. GCF Development’s Charles “Chip” Abele secured a long-term equity stake in Favo through an all-stock deal involving assumption of liabilities.
Spec home developer Todd Michael Glaser and the Posner Group are marketing their Miami Beach estate—purchased last month for $105 million—for sale at $169 million or rent at $495,000 per month. Nelson Gonzalez of Berkshire Hathaway HomeServices EWM Realty holds the listings. Glaser is also considering developing a spec mansion on the site that could list for as much as $300 million.
Florida’s population reached 23 million last year and is projected to surpass 24 million by 2027 according to estimates from the Demographic Estimating Conference; however, growth is expected to slow over the next few years.
