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0 mn BEACH RENOVATIONS DOUBLE IN A YEAR 12/26/1987
THE MIAMI NEWS
Copyright (c) 1987, The Miami News
DATE: Saturday, December 26, 1987 EDITION: WEEKENDER
SECTION: INSIDE PAGE: 15A LENGTH: 68 lines
SOURCE/CREDIT LINE: DAVID PHILLIPS Miami News Correspondent
BEACH RENOVATIONS DOUBLE IN A YEAR
SOUTH END REHABILITATIONS LEAD RECOVERY
Calling it a sign of sure recovery, Miami Beach City officials have
announced that $21.9 million has been spent this year to renovate existing
South Beach buildings -- more than double the 1986 total of $10.3 million.
Stuart Rogel, Miami Beach director of economic and community development,
attributed the increase -- at least in part -- to the redevelopment effort in
South Beach, citing the opening of the first tower in the South Pointe
Condominiums project and the success of developer Gerry Sanchez, who has
rehabilitated several South Beach hotels.
"I think we have seen a cycle, " Rogel said. "We saw a period four or five
years ago where not much was happening. Starting two or three years ago, we
started to see people investing in property, and some redevelopment. Now we
are starting to see people take action on the holdings they have."
Sanchez recently sold one rehabilitated hotel -- the Waldorf -- for $1.5
million, more than three times what he paid for it a year before.
Miami Beach building department records show that residential renovation
totaled $10.6, and commercial renovation accounted for $11.2 million in 1987.
The figures do not include the island areas of the city's southern
reaches, which are predominately single family homes, or the Miami Beach
Convention Center, which is being doubled in
size, said Paul Gioia, director of the city's building department.
Gioia said most of the residential property being rehabilitated is
apartment buildings. About half of the renovation is being done by developers,
but the rest is done by longtime beach landlords who feel they must fix up to
compete in a new market of younger tenants.
"We find that people who bought buildings years ago for investment
purposes, and may not have taken very good care of them, are now fixing them
up and holding on to them, " Gioia said. "Especially when the area around them
gets fixed up, it's like a domino effect."
Projects included in the figures for commercial development include
several hotels, a theater, stores, nightclubs and restaurants.
Among commercial developers rehabilitating South Beach property, Sanchez,
president of Polonia Restoration, is leading the way. Early in 1986, Sanchez
began buying and renovating hotels on Ocean Drive, including the Edison, the
Breakwater, the Waldorf and the Betsy Ross.
He also purchased the Cameo Hotel on Espanola Way and Washington Ave.
Sanchez recalled in a recent interview that when he moved to Miami
Beach in 1986, it was to "semi-retire. " But before long he was anything but
semi-retired, he said.
"I saw what was happening and decided not to miss it, " Sanchez said.
Sanchez said he thinks the increase in rehabilitations last year came
about because investors had been holding property, waiting to see what would
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happen to the South Beach area before they put money into renovation.
"People were afraid at first, and now everyone is jumping on the
bandwagon, " he said. Mel Schlesser began renovating buildings in South Beach
in 1985, and has just\co npret-e-d-r'Zhovating the seven-story Alamac Hotel at
Collins Avenue and 13th Street. The building has been partitioned into 45
modern apartments, many two-bedroom, two-bath units with lofts.
"I think there is a new group of people who are buying property to rehab
rather than as a real estate speculation, " Schlesser said. "Also some people
were waiting for financing to do work, and I think the financing is becoming
more available on the beach. "
Schlesser is now working on the Gotham, at 13th Street and Euclid Avenue,
one of several apartment buildings being renovated by landlords and developers
near Flamingo Park just west of the city's Art Deco district.
"In the time that I've been here, I can't believe the speed at which
things are being done, " Schlesser said.
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