With more than half of its units already sold, Residences by Armani/Casa in Sunny Isles Beach, Florida, is unveiling an $8 million sales gallery. At an invitation-only event this evening, developers will open an 8,500-square-foot oceanfront design center on Collins Avenue featuring textiles and furnishings by Armani/Casa Design Studio. With floor-to-ceiling windows and a terrace, the model unit will also give guests a chance to imagine the ocean views that the 56-story tower will offer. First announced in July 2014, the project by Dezer Development and The Related Group is the latest example of branded luxury residential developments in the U.S., where other high-end names, from Porsche to Fendi, are expanding into premium housing. Architect César Pelli, creator of the Petronas Towers in Malaysia, worked in conjunction with Georgio Armani’s interior design studio to create Residences by Armani/Casa, a glass tower and garden that will span over 3.1 acres with 300 feet of oceanfront. The 308-residence building, whose construction formally began this week, is slated for occupancy in the first quarter of 2018. According to Gil Dezer, president of Dezer Development, over 65% of the project has already been sold to a set of buyers who mirrors those in the general South Florida market: about 60% Latin Americans, 20% Europeans and 20% U.S.-based. Units at Armani/Casa will range from 1,350 square feet to 4,160 square feet and are priced from $2 million to over $9 million. The penthouse, available for $15 million, carries several perks for the buyer, including two first-class, round-trip tickets to Milan, Italy, and a two-night stay at Armani Hotel Milano. Armani/Casa isn’t the only branded luxury real estate coming to South Florida. Dezer and German sports cars manufacturer Porsche joined to develop the $560 million Porsche Design Tower, currently under construction in Sunny Isles Beach. The building will be equipped with a glass car elevator, allowing residents to park in “sky garages” right next to their units. Completion is scheduled for June 2016.
The Porsche Design Tower, under construction in Sunny Isles Beach, will be equipped with a robotic parking system that will allow residents to ascend to their apartments in a glass elevator while still sitting in their cars.
Courtesy of Porsche Design TowerIn neighboring Surfside, Italian fashion house Fendi and Argentine Château Group are developing Fendi Châtea Residences, a boutique 12-story building with 300 lineal feet of oceanfront beach. Pegging a renowned brand to a residential development could give developers an edge. According to a report by real estate consultancy Knight Frank, branding of residences “creates a reflection of luxury and prestige associated with the brand, helping developers to stand out in a competitive market.” In mid-2012, the London-based firm assessed pricing for 26 branded developments in 17 global locations, together with 79 comparable prime non-branded developments. The study found that branded projects are priced, on average, 31% higher than non-branded. The uplift rate ranges widely, though, from 5.7% in Jakarta to over 50% in Berlin, Cape Town, and Dubai. The United Arab Emirates city has been an epicenter for branded developments, from the residences at Armani Hotel Dubai to apartments at the Palazzo Versace. It was, in fact, the Armani development in Dubai which motivated Dezer to partner with the famed Italian designer in South Florida, said the developer. Holding ownership of four more oceanfront sites, Dezer said his company will continue to tap the branding format in South Florida, adding that they are about to sign two more deals with “super high-end brands.” He refused to disclose further details. “We definitely have the land, have the location,” said Dezer. “The market here is great. South Florida is not a local market; it is very global.”
Write to Andrea López Cruzado at andrea.lopez@dowjones.com