A luxury property on Miami Beach’s prestigious Hibiscus Island is set for demolition after being sold for a staggering $15 million. The 3,646-square-foot home, built in 1952, sits on a prime 21,000-square-foot waterfront lot. The sale price reflects the growing demand for land in this high-end neighborhood, where wealthy buyers often prefer to build new mansions rather than renovate older homes.
This transaction highlights a broader trend in Miami Beach real estate, where investors and high-net-worth individuals are willing to pay top dollar for land, even if it means tearing down existing homes. Let’s take a closer look at the details of this sale and what it signifies for Miami Beach's real estate market.
Details of the Sale
The property, located at 345 N. Hibiscus Drive, was sold by the Mary J. Simcox Revocable Trust to 345 Palm Island Miami LLC, a company managed by Riyadh Swedaan, based in Coral Gables, and Hashim Abdul Kareem Suwaidan, from Bayonne, New Jersey. The transaction was brokered by Allan Kleer and Fabian Garcia Diaz from One Sotheby’s International Realty, who represented the seller, while May Shekouri with Bespoke Miami Realty Group worked with the buyer.
The sale price equated to approximately $714 per square foot for the land alone, underscoring the high value placed on waterfront lots in Miami Beach. While the home itself may soon be gone, the true asset here is the expansive lot, which offers stunning views and direct access to the water.
A Massive Gain for the Simcox Family
The Simcox family had owned the property for nearly 45 years, purchasing it in 1979 for just $300,000. Over time, the value of real estate in Miami Beach skyrocketed, resulting in a significant return on investment for the family. Following the passing of Mary Simcox, who was a long-time resident and local businesswoman, the property became part of her estate. Her passing in 2022 at the age of 94 paved the way for this record-breaking sale.
This type of long-term investment is not uncommon in Miami Beach, where properties passed down through generations have appreciated substantially. The Simcox family’s gain is a prime example of how holding onto valuable real estate in prime locations can yield significant rewards over time.
The Buyers and Their Plans
The new owners of the property, Riyadh Swedaan and Hashim Abdul Kareem Suwaidan, are connected to the Albatul Group, a cosmetics company with global operations in Iraq, Dubai, and Canada. While the specifics of their plans for the lot haven’t been fully disclosed, it’s clear that the existing home will be torn down to make way for a modern luxury mansion.
This is a common trend in Miami Beach, where there is a limited supply of new, luxury homes available. Many buyers seeking to build their dream homes have to purchase older properties, demolish them, and construct new, state-of-the-art residences. This teardown-and-rebuild strategy allows wealthy buyers to customize homes that match their vision and modern standards of luxury.
The Rising Demand for Land in Miami Beach
Miami Beach’s Hibiscus Island is one of the most sought-after neighborhoods for high-net-worth individuals, thanks to its prime location, exclusive waterfront properties, and proximity to the best that Miami has to offer. As Miami continues to grow as a global hub for business and luxury living, the demand for waterfront properties like this one remains high.
However, there’s a limited supply of available land, and many of the existing homes were built decades ago, like the 1952 home on Hibiscus Drive. For investors and buyers seeking modern mansions with the latest amenities, purchasing older homes and tearing them down is often the only viable option.
In addition to the allure of new construction, Miami Beach’s real estate market has been buoyed by an influx of wealthy buyers from across the country and around the world, particularly during and after the pandemic. People are drawn to Miami not only for its tropical climate and lifestyle but also for its favorable tax environment and burgeoning business opportunities.
Teardown Trend Continues
The sale and planned teardown of this Hibiscus Island home is just one of many similar transactions happening across Miami Beach. In fact, this trend has reshaped the landscape of luxury real estate in South Florida, as more and more older homes are replaced with custom-built mansions.
For buyers, this means an opportunity to create a home tailored to their exact specifications, from ultra-modern designs to cutting-edge technology and sustainability features. For sellers, it represents a chance to capitalize on the growing demand for land in prime locations, where properties can command multi-million-dollar price tags even without the value of the existing home.
What This Means for the Miami Beach Real Estate Market
As Miami Beach continues to attract global buyers, the demand for land in exclusive neighborhoods like Hibiscus Island will only increase. Properties with direct waterfront access and ample lot sizes, like the one at 345 N. Hibiscus Drive, are becoming rarer, driving up prices for the few that remain available.
While the real estate market in South Florida has seen its ups and downs, the luxury segment, particularly for land and custom-built homes, remains strong. Investors and high-net-worth individuals looking to make a mark in Miami Beach are willing to pay premium prices for the chance to create their dream homes in this iconic destination..
If you're looking to buy, sell, or invest in the South Florida housing market, the Mastropieri Group is here to help. Contact us at 561-544-7000 for expert guidance on all your real estate needs. Let us help you navigate South Florida’s dynamic market with confidence.
The Mastropieri Group is having three big open houses this weekend, Saturday, 9.28.2024 at 1:00 - 3:00 PM. Don't miss out on the chance to find your dream home with the help of our expert realtors. We look forward to seeing you there.
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