Latest news with #RelatedGroup
Yahoo
05-07-2025
- Business
- Yahoo
$40 billion real estate tycoon made his son get an MBA, work elsewhere, and climb the ranks for 13 years to prove he's not a nepotism hire
Billionaire real estate tycoon Jorge Pérez put his two millennial sons through a nearly 20-year-long succession plan before handing over the reins as Related Group's CEO in March. Jon Paul and Nick—now leading the empire managing a $40 billion development portfolio—had to get an MBA, work for a competitor for five years, and work their way up the ranks. By making his kids cut their teeth on the industry, they skirted nepotism criticism and family drama. Miami has a diverse real estate landscape, from the gleaming high-rises in Paraíso Bay, to mixed-income communities in Marti Park. But many of these buildings have one thing in common: They were built by real estate mogul Jorge M. Pérez, who just handed down his empire to his sons. The Argentine-American entrepreneur first launched Related Group in 1979, erecting everything from affordable housing to luxury skyscrapers in cities including Miami, Fort Lauderdale, Las Vegas, and Puerto Vallarta, Mexico. The real estate empire with a $40 billion development portfolio has built more than 120,000 residences during the past four decades, with over $50 billion in property sold so far. Pérez has been instrumental in changing the Florida landscape—dubbed the 'Condo King of Miami'—by building housing projects integrated with art and culture. After 46 years at the helm, Pérez was ready to pass the torch to his sons, Jon Paul and Nick—but he didn't make it easy for them. To make sure his company was in good hands and to sidestep nepotism claims, the 75-year-old billionaire sent his kids on a quest: get an MBA, work for a competitor for five years, and spend over a decade rising the ranks. The succession process stretched around 18 years. 'When I felt particularly—beginning with Jon Paul—that they could come to work in the company, what I didn't want is for people in the company to feel that they were entitled, that the reason that I gave them a position is because they were just my sons,' Jorge tells Fortune. Jon Paul became CEO of the company in March, while Nick is president of Related Group's condominium division. Jorge now sits as founding executive chairman, providing wisdom to his sons, but stepping aside for them to lead the company. The plan was perfectly curated to make the transition as smooth, drama-free, and advantageous as possible, Jorge says. 'What I try to do very consciously is let the world know that my two sons were ready for those jobs. That the company was not going to suffer one iota in the transition, but it was actually going to become better,' Jorge says. 'They still have me with the 45, 50 years of experience in real estate, plus now they have the new blood that has new ideas, that knows how the younger market thinks better than a 75-year-old.' Most children in successful families may expect to be handed the keys to the company—but Jorge wanted Jon Paul and Nick to cut their teeth in the real estate world. 'I required each of them to work five years outside the company in something they liked, and they both went to New York,' Jorge says. 'In addition to that, because I wanted them to be well-prepared educationally, I made them do an extra two years getting an MBA.' Jon Paul set out on his journey to CEO by starting in 2007 as an analyst at Related Companies, a New York-based real estate firm owned by family friend Stephen Ross. Until 2022, Ross also owned a minority stake in Pérez's business. During Jon Paul's five-year stint, he worked on luxury rentals and condos from Hudson Yards and the Time Warner Center. In 2008 when development had slowed, he worked on the purchasing and finishing of hundreds of projects. The president of Related Companies, Bruce Beal Jr., became a mentor for Jon Paul. 'I was put into an environment that was very high strung—12 to 14 hours a day. A lot of technical finance, financial underwriting,' Jon Paul says. 'The time there was really good for me, as far as understanding the economic side of the business, which helped me when I came down here.' By 2012, Jon Paul finally had a foot in the door at Related Group; starting off in the rental group, he spent the next 13 years rising through the ranks, learning the ins-and-outs of the business. While working at the family business, he earned an MBA in 2015 from Northwestern University's Kellogg School of Management, one of the top business programs in the U.S. When COVID-19 hit and teams were sequestered to their home offices, Jon Paul assumed an executive role as president, finally stepping into leadership in 2020. 'Even when they came here, they first became an assistant manager to a project, then a project manager, so they would see both sides of the company,' Jorge says. 'Then he started running the day-to-day of the business. I felt that I no longer needed to be the CEO, in which there was a greater amount of decision making.' Jorge says through this rigorous and gradual succession plan, Jon Paul earned his stripes, and the senior team felt his sons proved they can lead Related Group. The real estate founder also tracked public sentiment, ensuring the transition would be made without hurting the business. 'People always ask, 'Are you nervous? You have such big shoes to fill.' I tried not to think about that, and just show my worth with my results,' Jon Paul says. 'It was never, 'You come here and you automatically get that.' It was step by step, allowing me to grow and at the same time earn the respect of the people within the company.' When planning a family succession, it's one thing to try and quell public and board room tension—but it can be a whole other battle at home. Jorge says he's seen other businesses get caught up in family drama, but he made sure there would be no bickering over Related Group. 'You talk to a lot of friends that had issues. Many of them, the succession has turned [family members] into enemies, as opposed to friends, and families that split up over it. I'm very hard headed, so if I told you it's an easy process, it's not right,' Jorge says. Jorge notes 'some people can never let go'—especially if they built the company from the ground-up, like he did with Related Group. And as a father, it's natural for children to want to disregard the advice of their parents to pave their own way. He says succession is a give-and-take; his younger sons may have never lived through market downturns or company crises, but it's still time for them to lead. Maintaining that balance has been key to the Pérez family keeping a healthy family dynamic. 'Those tensions happen. We've been very lucky that we've been able to work around all of those,' Jorge says. 'It takes part of them saying, 'Wow, he's got 45 years experience.' And for me to say, 'Hey, this has got to be a cooperative effort, in which you guys are becoming more and more the decision makers. We're still very close, all of us, as a family.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
City buries the news as Brickell dig unearths 3,500-year-old burial and settlement site
Two years after the discovery of a major, long-buried indigenous village on a Brickell redevelopment site prompted a major preservation battle, archaeologists excavating at a separate bayfront site owned by the same developer just blocks away have uncovered yet another significant Native American settlement and cemetery that's several thousand years old. But exactly what's been going on behind the construction fence at 1809 Brickell Avenue for the past year and a half appears to have been largely kept under wraps by the city of Miami. A preliminary archaeological report from last October, which the city took two months to release in response to a records request from the Miami Herald, summarizes initial but tantalizing finds on the site, owned by developers Related Group and Integra Investments, that date as far back as 3,500 years ago Starting in December of 2023, the report says, an archaeological team found traces of fire pits and artifacts such as pottery shards, tools and spearheads, as well as bones and shells from animals hunted, fished or consumed by the indigenous people, probably Tequesta, who occupied the site. The report also details the discovery of ancient human remains, including that of an infant, that had been buried in formal fashion, suggesting the site served as an indigenous cemetery. But the full extent of the find to date, and what's being done about the artifacts, is all but impossible to publicly ascertain even as construction cranes have been erected on the site and cement mixers pour concrete for a high-end high-rise condo. Miami's preservation laws require developers building in archaeological zones that cover much of Brickell and downtown to conduct careful excavations under city supervision and submit public reports before getting clearance to build. Related and its project partners Integra Investments say they have fully complied with all legal requirements, including 'regular reporting' to regulatory agencies. A statement released by a spokesman also says excavation continues, but does not specify whether that's in a particular portion of the property. A visit to the site suggests extensive foundation work for the new tower is now underway. 'We understand the importance of carefully preserving any findings, and plan to adhere to the applicable regulations for such preservation,' the statement reads, without further elaboration. Related declined requests for an interview. In a response to a followup question, Related said 'recovered artifacts are carefully stored under the supervision and control of our archaeological team in spaces which meet specific guidelines to their interim care.' City of Miami officials, however, appear to have kept the findings — important enough that the archaeologists working for the developers on the dig say the site should be partially preserved and merits listing on the National Register of Historic Sites — hidden from scrutiny by the public and preservation experts. They have not presented the discovery to the city's historic preservation board, typically a routine action, or, until the Herald engaged a First Amendment attorney at the Holland & Knight firm, failed to release archaeological reports on the prehistoric finds. Such reports, required under city preservation laws, are public records meant to be readily available to anyone who asks. The city says the October report, by noted archaeologist Bob Carr and his South Florida Archaeological and Historical Conservancy, is the only one Related has submitted. Neither city historic preservation officer Kenneth Kalmis nor city media relations officials responded to requests for interviews on the handling of the excavation. That means there has been no publicly available update since October on what's been found on the site, how it's been handled or the precise status of the excavation — typically a lengthy and exhaustive process required under city preservation laws. The apparent lapse comes two years after the city and Related came under withering criticism from the public and independent experts for the handling of the discovery of extensive remnants of a 2,000-year-old Tequesta village on the Miami River just off Brickell Avenue. The preservation board, whose members said briefings by city preservation officials had not made the site's importance clear, took action to require partial preservation and exhibition of the finds after pleas by independent archaeologists prompted worldwide attention and a public uproar. Related has since consistently denied media requests to visit the site and to this day won't provide interviews on the find or its handling of it. Even as the board and Related reached an agreement on the Miami River site, it turns out the developer's archaeological team was ready to start exploratory excavation on a second site some 15 blocks to the south on Brickell Avenue — a dig that promptly began yielding evidence of indigenous settlement much older than the river site. But no one from the city apparently bothered to tell the board, which has legal jurisdiction over archaeological sites and discoveries and has the power to order preservation measures.. Two members of the preservation board recently told the Miami Herald they were unaware of the 1809 Brickell discovery and confirmed that neither city preservation officer Kalmis nor his staff have presented it to or discussed it with the board. Given previous discoveries of ancient and extensive indigenous burial and settlement sites in the immediate vicinity of 1809 Brickell during condo construction in the 1990s, independent archaeologists say, it's long been presumed that the Related site likely contained similar remnants — a theory that appears to be confirmed by the new excavation. The entire Brickell shoreline along Biscayne Bay has long been designated an archaeological zone by the city because previous finds suggested extensive occupation by prehistoric tribes or groups. Traci Ardren, a University of Miami archaeology professor who helped publicize the Miami River discoveries, said she has no details on the 1809 excavation but that the site is believed to be one of two extensive Late Archaic cemeteries in the area. At 1809 Brickell, Related and their partners in the project, Integra, bought and demolished a 17-story residential tower, built in the 1960s as affordable housing for teachers, for construction of a luxury St. Regis Residences condo. Construction of the earlier tower had mostly destroyed traces of ancient occupation along the eastern portion of the lot, but Carr's team of archaeologists found intact remnants in solution holes in the limestone bedrock under the parking lot and in a green space adjacent to the property entrance on Brickell, the October report notes. According to Carr's October report, preliminary excavation at the 3.23-acre site uncovered 'well preserved' middens — mounds of earth that contain refuse, animal bones and artifacts such as pottery shards, tools and spear or projectile points. The materials date back to between 1,000 and 3,500 years ago, which spans a period from the Late Archaic and to more recent Glades II periods, the report says. Mixed in with the ancient finds are some later artifacts, likely from European and later U.S. settlers, that date from the 19th or early 20th centuries, including a pewter cross of unknown origins. In his report, Carr recommends that some of the better-preserved sections of the site be saved. 'It is recommended that intact portions of the site be avoided if feasible,' the report says. 'This will include the green space abutting Brickell Avenue. Any areas of intact midden that can be preserved should be identified by the developer.' The report also promises an 'archaeological management plan,' but Related said in its statement that it's not ready because the excavation continues. Related and Integra did not provide details on the status of the excavation. The city, meanwhile, took two months to comply with a public records request from the Herald and, then, in an unusual move, initially released a version of Carr's October report with passages redacted that the city attorney's office acknowledged describe finds of human remains. That's something that archaeological reports released by the city in the past have routinely included without censoring. After the Herald's attorney notified the city that Florida public records laws contain no exemptions for those descriptions, the city removed the redactions from the publicly available report. The city attorney's office said the redactions were done at the request of the state archaeology division. The state archaeologist, Kathryn Miyar, referred a request for an interview to the Florida department of state's media office. That office did not address the interview request in an emailed response that asked if a reporter wants to send a records request to the state. The fact that the site could be an ancient cemetery is key to its historic and archaeological importance, archaeologists say. In their emailed statement, the 1809 Brickell developers suggest that Carr's team has been reporting in to government agencies regularly, but doesn't name the agencies or specify in what form those updates have come. 'Any and all findings are timely reported by our professional archaeological team to the appropriate governing agencies in accordance with applicable guidelines,' it says, adding that public agency representatives have conducted site visits and a 'thorough review of all activities onsite.' The statement does not specify whether that includes city and state officials, both of whom have jurisdiction over aspects of the excavation. The state, in particular, is charged with ensuring proper reburial of human remains at a confidential location in accordance with directives of officially recognized state Native American tribal groups. The previous find on the river, confirmed to be a extensive and remarkably well preserved remnants of what had been a large Tequesta town spanning both banks of the river, prompted a heated and lengthy showdown between the preservation board and Related. After the backlash, Related relented and has been working on a plan to preserve and exhibit some of the findings on the site, where two towers are now well under construction. Because Related had obtained development permits before the preservation board intervened, board members had little power to block or alter those designs. However, under an agreement with Related, the board designated as historic a third abutting site, 444 Brickell, a partially occupied office and commercial building that the developer eventually plans to demolish for a third tower. When that happens, Related must carry out another excavation that''s expected to uncover more remnants of the Tequesta village, and the preservation board could have a significant say in the design and approval of the project as well as the plan for exhibits and preservation now in the works.
Yahoo
30-06-2025
- Business
- Yahoo
Zohran Mamdani's win could mean more wealthy New York transplants to Florida, developer says
South Florida experienced a wave of new residents from the Northeast during the pandemic as people fled strict lockdowns, school closures and the shuttering of businesses. But will there be another surge out of New York City with democratic socialist Zohran Mamdani poised to become the Democratic nominee for mayor? Mamdani, 33, who declared victory in the party's primary June 24, campaigned on promises that some business owners and affluent residents oppose. Those include freezing rental costs, offering free childcare, eliminating city bus fares, creating city-owned grocery stores, and hiking the taxes on the wealthiest New Yorkers and biggest corporations. "Just when you thought Palm Beach real estate couldn't go any higher … ," Gov. Ron DeSantis said in a social media post with a link to a poll that put Mamdani ahead of opponent and former Gov. Andrew Cuomo before the primary results were released. One day after the election, at least one South Florida developer said he and his properties had gotten calls from people in New Jersey, Manhattan and Connecticut who are interested in moving to Florida. "Obviously, what they see happening makes them nervous and they want to plan their future and have peace of mind," said Isaac Toledano, CEO and co-founder of BH Group, which is working with the Miami-based Related Group to build the Ritz Carlton Residences in West Palm Beach. "I think the rush is going to start now because the unknown is something people don't like." Realtors who deal in high-end properties said their phones are also ringing with people surprised about the result of the primary election and interested in potentially buying in Florida. "Local politics matter, almost more than national politics, and if local is going to a more socialist form of government, you could lose some of your really wealthy taxpayers," said Nathan Zeder, co-founder of the Jills Zeder Group in Miami. "The calls and texts, the response yesterday, was way more than what I anticipated." Celebrity real estate agent Ryan Serhant, who has a Netflix show called "Owning Manhattan", told the New York Post that his "number one job will be moving people from New York to Florida. Again." 'Based on the results, clients are going to hold off on making any kind of investment in New York City," Serhant said in the New York Post story. Serhant specializes in New York real estate but has recently made a push into Palm Beach County with $100-plus million sales in the town of Palm Beach and offices in Delray Beach and Jupiter. He was previously on Bravo TV's "Million Dollar Listing New York." Florida got a boost in New York transplants during COVID-19. According to the U.S. Census Bureau, 254,097 New York state residents moved to the Sunshine State between 2021 and 2023. The number of people who traded in their New York driver's licenses in 2022 for ones with a Palm Beach County address totaled 8,059, which was a 38% increase from the average over the previous six years. "Today is a great day for the state and we welcome businesses who want to grow jobs and families who want to live in safe communities!" Florida U.S. Sen Rick Scott wrote in a June 25 social media comment. Scott linked to a post from the National Republican Congressional Committee that called Mamdani an "antisemitic socialist radical." Mamdani has declined to condemn the phrase "globalize the intifada," which is widely considered by the Jewish community as a call to violence. He has also referred to Israel's war in Gaza against Hamas after the Oct. 7, 2023 attacks as a genocide. Mamdani has also said he would have Benjamin Netanyahu arrested if the prime minister of Israel came to New York. Other Palm Beach County Realtors said they have not fielded calls yet from New Yorkers antsy about what Mamdani's agenda may bring, but they don't doubt they will come. "We had the pandemic, then we had the Trump bump and this is another reason why folks may want to move here," said Elizabeth DeWoody, founding principal of real estate firm Compass Palm Beach. "We are an incredible, pro-business, forward-thinking community." The nonprofit Citizens Budget Commission, which tracks New York's economy and business finances, found New York City lost $3.1 billion in adjusted gross income from 19,540 New Yorkers who moved to Palm Beach County between 2018 and 2022. It lost an estimated $809.3 million from people who moved to Broward County during the same time period, and $6.1 billion from people who moved to Miami-Dade County. More: West Palm Beach feels growing pains amid wealth influx as neighborhoods navigate change "It was all New York until recently, or the Northeast," DeWoody said. "Now it's California, and I think we will see New York again. Sometimes it's just one thing after another that seals the deal for people." Billionaire John Catsimatidis, whose Red Apple Group has real estate investments in Florida, said he would close or sell his Manhattan-based chain of grocery stores if Mamdani wins November's general election, according to a New York Post story. Mamdani's competitors for the mayor's seat include current Mayor Eric Adams, Guardian Angels founder Curtis Sliwa, former federal prosecutor Jim Walden and possibly Cuomo. Stay up to date on South Florida's sizzling real estate market and sign up for The Dirt weekly newsletter, delivered every Tuesday! Exclusively for Palm Beach Post subscribers. 'We can't compete with Mamdani opening city-run supermarkets for free,' Catsimatidis said in the New York Post story. In an interview with The Free Press, he said he'd spend more time in Florida. Christian Prakas, a founding partner of Ryan Serhant's real estate office in Delray Beach, said he's already been in touch with his boss about the possible increase in New-York-to-Palm-Beach-County moves. "He thinks it's going to be bad up there," Prakas said. Kimberly Miller is a journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate, weather, and the environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to kmiller@ Help support our local journalism, subscribe today. This article originally appeared on Palm Beach Post: DeSantis muses about palm beach real estate after Zohran Mamdani won
Forbes
17-06-2025
- Business
- Forbes
This Miami Billionaire Is Fighting Trump Tariffs, Immigration Crackdown
In late February, two weeks after President Donald Trump announced tariffs on imported steel and aluminum, Jorge Pérez cut an uncertain tone. 'I used to be very good friends with Donald Trump before he went into politics. Then we realized we have very different views,' the 75-year-old billionaire condo developer told Forbes in a video interview from the Miami headquarters of his firm, the Related Group. 'One of the things that worries us is the uncertainty. We're going through a bit of a roller coaster.' Since those tariffs were announced, new building permits for housing units in the Miami area have collapsed by 29%, according to the Federal Reserve Bank of St. Louis. Total condo and townhome sales in Miami and neighboring Broward county fell by 17% over the past year to $1.3 billion for the month of April, per the Miami Association of Realtors. For Related, those tariffs had already led to fears that construction costs could rise as much as 20% in March. Then on June 3, Trump doubled the steel and aluminum tariffs to 50%. 'The tariffs increase costs and you can't always necessarily raise prices to pass it on to customers, because depending on where you are on the market it's not an acceptable thing to do,' said Jon Paul Pérez, Jorge's 40-year-old son and Related's president and CEO. 'That decreases our margins on some of our jobs.' Trump's crackdown on immigration is another huge concern. Roughly one in four construction workers in the U.S. are immigrants, and Trump's policies have dealt a blow to developers like Related. 'Immigration affects the labor costs that we have,' Pérez added. 'In Jacksonville, we're building a condominium [complex], and [Governor Ron DeSantis] announced that they're really going to crack down on illegal workers. The next day, half of the workers had left for Georgia.' Many of Related Group's customers are also Latin American, at one point making up 80% of the firm's buyers. 'If Latin Americans are afraid of coming here or don't want to come here because they feel the attitude is wrong through tariffs and immigration, of course it affects our real estate business,' Pérez said. Immigration is also a personal issue for Pérez. Born in 1949 to Cuban parents in Argentina, his family became exiles in 1959 when the Cuban government nationalized businesses after Fidel Castro's revolution, eventually landing in Colombia. In 1968, at age 19, Pérez headed to Miami where he worked in a pizza restaurant and sold encyclopedias door-to-door. He got a scholarship to attend C.W. Post College in Long Island, earning a degree in economics before going to the University of Michigan for a master's in urban planning. He then returned to Miami to work as an urban planner focused on low-income communities and became a U.S. citizen in 1976. Three years later, he launched Related Group in partnership with New York real estate billionaire Stephen Ross and his developer Related Companies. (Pérez bought out Ross' 25% stake in Related Group for an undisclosed sum in 2022.) In March, he stepped down as CEO and handed day-to-day management of the business to his sons Jon Paul and Nick. But Pérez, who is now worth an estimated $2.6 billion mostly from his 100% stake in Related as well as his extensive art collection of more than 7,000 works, is not giving up on the American dream. Especially his own. After all, he's been in this business for more than four decades and claims to have built and managed more than 100,000 units. 'We are part of the very lucky people that this country has allowed to make more money than I ever thought was possible,' he added. Yes, labor and material costs will go up, but his company will adjust. 'We've always been skilled at adapting to market shifts,' he said, noting that the firm has worked to improve its supply chain and construction methods and has only seen minimal cost increases due to tariffs. So far, the market seems to be proving Pérez right. 'There was a four-week pause in the marketplace where everyone was really panicked about the tariffs, and then the clouds parted and we're entering June as busy as it was in January,' said Dina Goldentayer, a real estate agent at Douglas Elliman who specializes in ultra-luxury condos. On the impact of higher labor and tariff costs, she likened it to insurance premiums going up. 'Buyers are not walking away from buying a house because insurance is expensive. They use it as a leverage point in negotiations to get a slightly better deal, but it's not a reason not to buy.' Pérez also considers the slowdown to be somewhat expected, and not necessarily driven by presidential policies. 'For the last three years we've had a demand that I don't think is natural,' he said, referring to the period right after the Covid-19 pandemic when a wave of wealthy buyers moved to the area. 'People are continuing to come to Miami. It isn't at the same rate as the exodus that happened, but we continue to have very strong demand. Our money is in south Florida, this is where we invest, and I think there's no better place over the next 10 years.' Related launched pre-sales at the W Pompano Beach Hotel & Residences, a planned 77-unit luxury condo building with a 296-room W Hotel on the waterfront north of Fort Lauderdale, in January. Construction is set to begin in 2027. To prove his point, he notes the robust sales at some of Related's priciest projects, including Six Fisher Island, a luxury 10-story development with 50 units plus a marina, golf course and beach club; units start at $15 million. Related has already made more than $500 million in sales there, and properties are selling well above the median price of $1,000 per square foot in the Miami area in the first four months of 2025. 'The top projects with good developers such as Related are still selling well and are getting really good prices per square foot,' said Marko Gojanovic, a real estate agent at MR Luxury Group and ONE Sotheby's. Even on the lower end, which has been much harder hit—prices for condos built three decades ago or older declined 21% over the past year, compared to an 8% increase for newer properties, according to luxury real estate firm ISG World—Pérez sees a buying opportunity. After a 40-year-old, 12-story condo building in the Miami suburb of Surfside collapsed and killed 98 people in 2021, Florida passed a law requiring inspections of high-rise condo towers when they hit 30 years of age and again every 10 years, with a deadline of December 31, 2024 for the first inspection. The approaching deadline pushed many owners of units in older buildings to put their properties on the market last year to avoid paying higher inspection costs. While Related has little interest in old buildings, it is happy to pick them up at bargain prices and demolish them. In April, it partnered with two other firms to buy an oceanfront condo building in the suburb of Sunny Isles Beach for $140 million, with plans to knock it down and build an 820-foot 'ultra-luxury' condo tower. Related also has another 10,000 units in the pipeline on land already approved for development, set to begin construction in the next two and a half years. And Pérez has always been pragmatic: While half of his business comes from selling to the luxe set, the other 50% comes from rental apartments and affordable housing. 'When market-rate [rentals] and condos go down, we always have that stable affordable arm that is constantly producing for the company,' added Nick Pérez, age 37, another of Jorge's sons, who leads Related Group's condo division. Even if Miami continues to soften, he has luxury condos and rental apartments not only throughout Florida but also in Arizona, Georgia and North Carolina and further afield in Brazil and Mexico. 'We believe in the future of south Florida and this country. The areas that we're in are very high-growth areas,' said Pérez. 'We're ready to pounce whenever we feel the market is correct.' He also knows when to cash out. In June, Pérez sold a recently completed, 259-unit luxury apartment tower in Fort Lauderdale to Spanish fast fashion billionaire Amancio Ortega for $165 million—28% less than its initial asking price but still one of the largest deals of its kind this year. Related had planned on selling it after it was fully leased to take advantage of growing interest from institutional investors in Miami apartment buildings. While Pérez is concerned about the direction of the country in Trump's second term, he's far more optimistic about his home state: 'From a long-term perspective, I see nothing but clear blue skies for south Florida.'
Yahoo
09-04-2025
- Business
- Yahoo
Condo developers are bracing for construction costs to surge — as high as 20% because of Trump's tariffs
Construction costs started surging in anticipation of tariffs — and they could get worse amid the latest round of tariff announcements. That translates into higher costs for new condos and homes. 'We're seeing [subcontractors] throw an additional cushion into their numbers anticipating tariffs,' Related Group CEO Jon Paul Pérez told CNBC. 'It could be as much as 20%, depending on what material they're getting from another country.' The billionaire developer told CNBC that contractors bidding on seven of its projects are raising their prices, driven by the anticipation of higher costs. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? A tariff on imported goods — in this case, construction supplies like softwood lumber sourced from Canada and gypsum (for drywall) sourced from Mexico, means higher costs that are either absorbed by builders or passed onto consumers. The cost of housing has been on the rise — and it's not just because of tariffs. Supply chain issues and previous tariffs have had a negative impact on the construction industry for several years. 'The cost of building materials has already risen by 34% since December 2020, which is far higher than the rate of inflation,' notes the National Association of Home Builders (NAHB). In a March 2025 survey, it estimates that recent tariff actions could increase the price of a typical home by $9,200. On April 2, President Donald Trump announced sweeping tariffs, including a baseline of 10% for all trading partners and 25% on all imported cars. He also announced 'reciprocal' tariffs on trading partners with large trade imbalances, which includes the European Union (at a rate of 20%) and China (at a rate of 34%). There were no additional tariffs on Canada and Mexico, but tariffs of 25% remain on goods that aren't covered by the Canada-United-States-Mexico Agreement (CUSMA). Contractors reacted by raising their prices in anticipation of those tariffs. 'Proposed new tariffs on China, Canada and Mexico are projected to raise the cost of imported construction materials by more than $3 billion,' according to NAHB, and some critical supplies could see dramatic increases that 'could substantially impact builders' ability to deliver new projects.' Another factor to consider is the crackdown on immigration, which could have an inflationary effect on the construction industry — which relies heavily on foreign-born workers. So, what can condo buyers do in today's market? Here are 3 smart financial moves. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP Mortgage rates fluctuate for a number of reasons, from supply and demand to economic pressures (a downturn, for example, could result in lower rates to spur growth). The mortgage market also tends to follow movements in the Federal Reserve's key borrowing rate. If you're worried that rates will rise between the time you make an offer and closing, an option is to lock in financing with a mortgage rate lock. This provides a fixed rate for a set period of time (typically between 30 to 60 days, but possibly longer). Some lenders will offer this for free, but others may charge a fee. The flipside is if interest rates drop, then you're stuck with the higher locked-in rate. Some lenders may offer a 'float-down provision' so you can secure the lower rate if it drops by a certain amount, but there's usually a fee for this. Another option is to consider buying a pre-construction condo, which means it's still being built. Homebuilders may offer incentives to attract potential buyers and to persuade them to sign a contract — and it's possible we could see more of these types of incentives if the market slows. In 2022, for example, when the market rapidly slowed during the height of the COVID-19 pandemic, builders used sales incentives to boost sales and limit cancellations. According to NAHB, 59% of builders offered some kind of incentive, such as paying closing costs or fees, offering options or upgrades at low or no extra cost and offering mortgage rate buydowns. If you're looking at new construction, it's always worth asking about incentives. You also have options beyond a traditional mortgage. For example, there are a number of government-backed loans available if you meet certain criteria. These include: FHA loans: Offered by certain banks, these loans usually require a smaller down payment than a traditional loan, and they're insured by the Federal Housing Administration (FHA). If your credit score is preventing you from a traditional loan, this may be an option. VA loans: If you're a vet, active-duty service member or eligible spouse, a VA loan can provide perks such as no down payment and no private mortgage insurance requirements. USDA loans: If you're looking to buy a home in a rural area and you meet income requirements (for low to moderate-income homebuyers), a USDA loan may offer more competitive interest rates than a traditional rate and options for no down payment. There's also down payment assistance (DPA) programs offered by state and local governments, which are low-interest or deferred-payment loans to help first-time homeowners cover down payments. Other options include owner financing (where you buy direct from the seller and pay the seller back in installments rather than going through a bank) and rent-to-own (where you rent the property before buying it at the end of the lease). These types of arrangements can be complex, so you'll want to consult with a real estate attorney before proceeding. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
