No Comments

Miami Beach South Of Fifth Projects Could Score More Density

In Miami Beach’s South of Fifth neighborhood, more density is the carrot. And three hotel owners are the rabbits.

And at least one of those hospitality landlords, an affiliate of Miami-based Key International, is eyeing that carrot.

The Miami Beach City Commission on Wednesday approved a measure that would encourage South of Fifth hotel owners to redevelop their properties into condominiums or multifamily projects. By agreeing to convert their land from transient uses such as hotels, hostels and short-term rentals to residential use, the owners would get an increase in the allowable floor area ratio, or FAR, to 2.75 from 2.0, according to a city memo.

Key International owns the Marriott Stanton South Beach at 161 Ocean Drive, through its affiliate Komar Investments, records show. The Key International affiliate is interested in exploring possible redevelopment of the 224-room hotel and taking advantage of the density bonus, said Christopher Penelas, an attorney for the hotel owner.

The legislation, sponsored by Miami Beach city commissioner Alex Fernandez, was mandated by Miami Beach residents. In November, 66 percent of voters approved a referendum directing the city to enact the legislation.

In order to receive the density bonus, property owners must pledge that any new projects will not allow rentals shorter than six months.

 

Source:  The Real Deal

1 Comment

Miami Beach Imposes Regulations For Fractional Ownership Homes

Companies offering fractional ownership of luxury properties in Miami Beach will have to follow new city regulations.

The Miami Beach City Commission on Friday unanimously approved an ordinance that requires condominiums and single-family homes that are owned by investors that buy shares of a property to abide by the city’s law that bans short-term rentals in some neighborhoods.

The fractional ownership ordinance largely targets Pacaso, a San Francisco-based tech company that allows investors to purchase as little as a one-eighth interest in second homes.

In Miami Beach, Pacaso is offering investment opportunities in a condominium and two single-family homes on the Venetian Islands and on Alton Road, according to the company’s website. The minimum investment for the three properties ranges from $385,000 to $867,000.

The new ordinance requires Pacaso and similar firms to have a local manager, available 24 hours a day, for each fractional ownership property in Miami Beach, as well as to comply with a code of conduct. Fractional ownership property managers will also be required to sign affidavits that condos and houses will not be rented on a short-term basis.

City staff worked with the fractional ownership industry to draft the ordinance, Miami Beach commissioner Alex Fernandez said at the commission meeting. Fernandez sponsored the measure.

“We can’t prohibit [fractional ownership,]” Fernandez said. “But this is what we can do.”

In a statement, Pacaso CEO Austin Allison said his company will adhere to the new ordinance.

Pacaso expanded into South Florida in 2021. The company sets up limited liability companies for joint ownership and collects maintenance fees from clients. Pacaso manages more than $200 million of real estate and has annualized revenue of $330 million, according to a press release.

Miami Beach has some of the toughest short-term rental restrictions in South Florida that come with hefty fines for owners who violate the city’s regulations. Sometimes, the city’s crackdown has led to favorable outcomes for property owners. In 2021, the city settled a lawsuit brought by an affiliate of Miami-based Safe Harbor Equity, which owns a four-bedroom house at 3098 Alton Road. Safe Harbor sued the city over short-term rental fines assessed on the property.

Miami Beach agreed to pay Safe Harbor $250,000, as well as waive about $200,000 in fines.

 

Source:  The Real Deal

 

© 2023 FIP Commercial. All rights reserved. | Site Designed by CRE-sources, Inc.