On The Beach
"Après moi, le déluge" ...............Attributed to Louis XV or Madame de Pompadour.
MIAMI BEACH – Argentine developer Alan Faena recently listed the most expensive condo in this city’s history at $55 million. The Mid Beach penthouse features a private elevator, an infinity pool, an uninterrupted view of the Atlantic.
The catch: The tower stands on what scientists call one of America’s most vulnerable floodplains.
But Miami Beach needs this penthouse — and many more like it. The more developers build here, the more taxes and fees the city collects to fund a $300-million storm water project to defend the shore against the rising sea. Approval of these luxury homes on what environmentalists warn is global warming quicksand amounts to a high-stakes bet that Miami Beach can, essentially, out-build climate change and protect its $27 billion worth of real estate.
The move makes budgetary sense in a state with no income tax: Much of South Florida’s public infrastructure is supported by property taxes.
Crazy? Well, it depends on your time frame. If you only care about the next ten or twenty years, maybe so. If the US government is silly enough to sell you flood insurance, probably so.
Many buyers come from South America, more concerned by currency instability in their home countries than encroaching saltwater: “They want somewhere safe to park their money,” said Zalewski, whose firm tracks applications. “A lot of buyers here never step foot in the condos. They’ll sell them before the water makes it to the bottom floor of their buildings, anyway.”
Foreign investors fueled nearly one-third of real estate transactions last year in Miami-Dade and Broward counties, according to a National Association of Realtors report. Eighty-one percent paid cash, the report found, and 72 percent bought a condo or townhouse.
The whole story is interesting.