The W South Beach Residences Miami Beach

So we got away from Atlanta a few weeks back.    A few of my New York friends prompted a trip to South Beach.    Naturally, out of an interest for my business (and an interest to expense the trip) I suggested we stay at the W South Beach Residences.        For this long weekend I was able to stay in a nice  suite with a nearly 200 sq ft ocean view terrace.     The picture below shows the lap pool which was really quite nice.

The Condo/Hotel has a very nice pool, prime dining at Mr Chow and The Dutch (both originally from New York) in the building.  It also has The Wall nightclub.   Overall I this is the 4th W Hotel I have stayed at, and although I am usually not a huge fan of many of their outposts, I have to say THIS outpost is top-notch.    Being on 21st and Collins it is VERY well located to hit the classic South Beach establishments (think Joe’s Stone Crabs, Lincoln Road, ect. ect) as well as Further enough North to skip out on some of that congestion should one be more inclined to venture to some of the other newer developments of Miami Beach further North of 40th Street.

As many of you may know Miami’s condo market had sunk deeper than Atlanta’s.   But it has also bounced back stronger.   The market there began moving up in the winter of 2010, about 6-9 months prior to Atlanta’s start of our current rise.    I have some friends of friends who had purchased a new 2 bedroom at The Viceroy last Spring and sold it just barely a year later (avoid full capital gains) for over $300k more than what they paid!   Even after the selling commission that was a 30% return!

In any case the unit I stayed in at The W was around 600 square feet with a nearly 200 square foot private terrace.   This unit with an Ocean/City view like I stayed in lists for $670k-$980k.     Yes, not going to lie, that is a lot of money, over $1000 a square foot.     But then you have to remember what Miami has turned into.   Here is a picture of the terrace -

When I first started coming down to Miami about 10 years ago it was still at least somewhat, hmm shall we say Versace, flaming, and gay.   That whole scene it seems has moved to Fort Lauderdale.   What has moved in to South Beach are the Europeans.   One of the last time I was in town I had a couple of French Models by my side (ex-girlfriend’s friends) and they toured us through many of the more common Up-scale Euro hang outs.   Even since then this building and the landscape of South Beach shows this trend has continued and grown.
In speaking to the sales center at The W South Beach Residences the particular Suite I stayed three nights in has been leasing for $7000-8500 per month.  The vast majority of both the Buyers and Renters in the building are European.  I would have expected more Latin Americans, and I was told that there are some, but the vast majority are Euros.
This building is now 60% sold.   As an owner who buys one of these units for investment purposes, there are two options.  One is that you can place them in the Hotels stock.    This Hotel is still one of the two or three hottest properties in South Beach after opening last year.     It is more often than not sold out.   The room goes for $500-$660 a night and has a max rental rate listed with the city of over $1400.    Obviously the Hotel has a Management and Service fee that comes out of that rental rate, but if leased out 15-20 days a month an investor should still net $7000-9000 of “nightly” rents.   The other option as listed above is the yearly lease at a rate of $7000-8000.    Given the amount of Euro money flowing into Miami this rate is on par with similar luxurious properties.


In any case, I just figured I would mention this investment option.  As I type this I am in the process of negotiating two deals for two separate sets of foreign nationals seeking better properties in Atlanta that will lease for $3000-4000 per month.      If you are considering Miami then this building is one I would love to introduce you to.

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One Response to “The W South Beach Residences Miami Beach”
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