Lofty ambitions: from downtown Miami to Delray Beach, a new wave of loft condominiums has entered the South Florida real estate market. But just what is a loft? these non-traditional spaces are as varied as their neighborhoods—and prices

South Florida CEO, June, 2004 by Catherine Mcelrath

Loft living--the revamping of rundown industrial or commercial buildings for use as homes and workspaces--is a long-time favorite in older cities, such as New York and Chicago. Think of the cavernous brick spaces in the movies "Ghost" or "Big." Think of Soho or Tribecca.

[ILLUSTRATION OMITTED]

In youthful South Florida, where everything is freshly created, there is a decided lack of older buildings for such purposes. But that has not stopped local developers from bringing the trend here. With few existing industrial structures appropriate for residential conversion, developers are designing a new breed of housing--call it tropical lofts--and building it from scratch.

"Lofts here in South Florida are a new, hip, raw space, rather than a chopped-up one that is defined by interior walls," says architect Kobi Karp, the designer of such loft projects as Uptown Marina Lofts in Aventura and Absolut on South Beach. "Designing a loft means different things to different people--to me it is an opportunity to design a space with volume that people can use and developers can sell."

But are these true lofts, or just condos with attitude and higher-than-average ceilings? Purists may be at odds on the definition of the word "loft," but from a pragmatic point of view, most agree it includes high ceilings and an open floor plan. Whether South Florida's crop is the real thing or merely fashionable faux is up for debate. But one thing is clear: South Florida's loft buildings are routinely meeting pre-sale expectations and satisfying buyers seeking real estate's next big thing.

"Not all loft development concepts are for everyone," says Miami-based real estate analyst Michael Cannon. managing director of Integra Realty Resources-South Florida. "There are those developers who have identified their product as being lofts, but they may not be. It's a marketing gimmick that some people have used to attract the marketplace, to make the designs of their unit marketable."

And they are selling: from downtown Miami to Fort Lauderdale to Delray Beach, savvy real estate speculators are betting that discerning buyers will flock to lofts as an edgy alternative to the more structured high-rise condos.

"Lofts--the moniker seems to be kind of the rage right now," says City of Miami Commissioner Johnny Winton, whose district includes downtown Miami. "There seems to be a lot more designs out there now, and whether they are true lofts or not isn't really important. As far as I'm concerned, the more options open to people to move downtown, the better. Lofts are just one of the elements that are bringing people in."

One of the purest of loft designs, in terms of the traditional red-brick appearance, is ParcLofts, a 72-unit, high-end building in Miami's Performing Arts District that is expected to open in the next 12 to 14 months. "We sold out the majority very quickly. We didn't have to do much advertising--the way to sell them is just to build them," says ParcLofts developer Henry Harper. "People here in South Florida know lofts from movies, but they've never been in one. And I think the success of the loft depends also on the energy of the neighborhood--people like something and someplace different, they like to be pioneers."

[ILLUSTRATION OMITTED]

Although ParcLofts is new construction. Harper wanted to stay true to the raw loft concept, even though (ironically) building lofts like his--with unfinished walls, exposed beams, bricks and ductwork--is actually more costly than a "finished" product, since the raw materials must also be high-quality and pleasing to the eye. Floor plans with up to 5,200 square feet and 20-foot high ceilings add to ParcLofts' true-loft credibility, while features such as a pool, sundeck and designer upgrades for the interiors add a touch of luxury.

[ILLUSTRATION OMITTED]

"In many cities, developers have run into the same thing," explains Harper. "Aesthetics draw people to lofts, but they're not for everyone. Some people see the exposed structure and they might not like it--this isn't my grandmother's condo on Brickell. There's something edgy and rebellious about spending lots of money for a place without a doorman. Lofts are super sexy."

Other downtown projects are rapidly drawing in prospective buyers, as the advent of true in-city living may soon be changing the face of urban South Florida, especially Miami. The Related Group of Florida, successful developers in South Florida's luxury condo market, recently broke ground on The Loft Downtown, a 23-story, 196-unit building smack in the middle of downtown Miami. According to the Downtown Development Authority, it is the first new residential development built west of Biscayne Boulevard in almost sixty years.

"We believe very strongly in a central business district here in Miami, where working-class people can live and work downtown." says Oscar Rodriguez. The Related Group's vice president of development. "Until now, if you were very wealthy, there were plenty of places on Brickell, but if you were middle-class, it was hard for you. We're targeting [the middle class], making them a high priority. We worked with the city and came up with incentives to get people to move downtown, like offering parking right across the street and pricing them affordably."