South of Fifth Street is a unique area in many respects, and is one of the most magnificent locations on earth. It is the southern tip of the island of Miami Beach, meaning that it is surrounded on 3 sides by water. The west side is the Bay of Biscayne, the south side is Government Cut where the huge cruise ships pass by and the east side is the turquoise, warm waters of the Atlantic Ocean. The northern boundary is Fifth Street which is a very wide causeway that is difficult for pedestrians to cross, acting as a natural barrier to the tourists wandering up and down Washington Avenue and Collins Avenue. So just like Manhattan, it’s size is physically restricted.
Within this compact, pleasant enclave are no less than 9 very high end luxury condo buildings which are home to an international population of some of the wealthiest people in the world. Recent zoning law changes now mean that nothing over 75 feet in height can ever be built here. That’s it, the doors have closed, there will be no more luxury high rises being built here ever again. This combined with the restricted physical size and the international population of the world’s ultra affluent makes the real estate market here completely unlike any other area, especially the greater Miami area.
The recession, the housing slump and the drying up of credit hit Florida and Miami’s real estate market particularly hard, creating record numbers of foreclosures, short sales and swamping the local market with massive amounts of inventory. Those people that are willing to buy in Miami are unable to borrow the money to do so and there seems no end to the inventory that is available. But none of these factors are relevant to the luxury condo market South of Fifth.
This meant that when prices in Miami were spiraling down as sellers desperately tried to unload, the owners in SoFi held back, less inclined to join in the panic selling when they could instead afford to ride out the storm. Prices have already stabilized and haven’t seen anything like the severe drops that the rest of Miami have seen.
Everything within SoFi is within walking distance, including white sand beach, world class marina, world class gourmet restaurants, huge landscaped parkland, pedestrian only wide walkways and one of the best elementary schools in Miami. Cross Fifth Street and you have all the shopping, amenities and entertainment that South Beach has to offer. There really is no place quite like South of Fifth Street, and the stability of prices in an otherwise tumultuous real estate market have proven that.
Foreclosures and short sales in SoFi have been almost non existent. The few foreclosures that have happened were caused more by mortgage fraud being discovered than anything else. And the international affluent have been the least affected by the recession or the need to borrow money. Most luxury condos in SoFi are bought with no mortgage and are 2nd, 3rd, 4th or even 5th homes.
In fact, Miami Beach as a whole has been largely untouched by foreclosures compared to the Greater Miami area. Out of over 10,000 foreclosures in Miami, only 100 of them are in the Miami Beach area and also valued at over $500k, and you can count on one hand the number of foreclosures valued at over $500k South of Fifth. It’s important that you compare apples to apples, and the reasons behind Miami’s real estate troubles are largely irrelevant to SoFi.
South of Fifth is a very cosmopolitan area comprised of a high percentage of Europeans and Latin Americans living here part time and full time. There are also Americans from every state represented. SoFi has a much more residential feel than the rest of South Beach and there is a definite feeling of community amongst the full time residents here, despite everyone's varied backgrounds.
For me South of Fifth is a precious little neighborhood where I can’t walk a block without running into someone I know, and never too far from a good restaurant or a place to meet, and the South Pointe Park is my back yard between the beach, and Marina.
Miami Beach is a little urban paradise. I appreciate its diversity and energy. And as a member of the Steering Committee of the Victory Garden where I have my own vegetable patch I'm able to get my hands dirty everyday too!