Five years ago, the once hot real estate market boom in Miami went bust. A number of real estate developers were forced out of business because of the meltdown, while others made the decision to simply leave the Miami market altogether. Smart developers and investors, however, saw the opportunity in the adverse conditions they were facing at the time and started to play the 'developer shuffle', purchasing well-located parcels that were out of foreclosure.
This was one of a number of strategies that was adopted by Miami-based real estate development firm Key International, as it began to proactively adjust its business model in the wake of the real estate downturn. It also formed a strategic partnership with real estate private equity firm 13th Floor Investments, which is also based in Miami and is focused on opportunistic value add investments. Working together, the partners tried to make the most of promising development and investment projects across South Florida.
"Key International has been in Miami for more than 40 years, so we've persevered through a few up and down cycles in the market," says the vice-president of Key International, Inigo Ardid. "Our experience and our tenacity means we're better equipped than most other developers to not only adapt for market volatility but also to react to opportunities that may result. Our partnership with 13th Floor only strengthens these capabilities."
The founder of 13th Floor Investments, Arnaud Karsenti, says that during the course of the downturn the firm developed a niche specialty of going about strategically purchasing distressed and value added properties, noting that at the core of the business they are value investors who thrive on their ability to assess risk and reward in complicated situations.
