How COVID-19 caused a new wave of migration to South Florida
The COVID-19 outbreak is not only transforming how we live, but also changing where we want to live our post-coronavirus life. For many people, South Florida with its year-round sun, cultural diversity, fabulous beaches, golf courses, and tax benefits has become their primary choice.
The coronavirus crisis has accelerated the new movements of affluent Americans to the Sunshine State. Cities in South Florida, including Fort Lauderdale, West Palm Beach, and, of course, Miami, were the most popular destinations in recent weeks. Florida’s governing officials reported an uptick of flights heading to Miami from New York in March. Real estate agents have also noticed a growing flow of potential wealthy buyers using their lockdown time to secure properties in Florida.
“South Florida continues to spark investors’ interest to move from high-tax states and find more desirable ‘quarantine’ destinations. Taking into consideration social and cultural shifts, I think that people are truly recognizing the value of the home where we are eating, sleeping, studying, playing, and working right now. Miami’s low relative density, world-class healthcare system, and focus on healthy living are attracting buyers more than ever before,” says Daniel Kodsi, CEO of Participant Capital and RPC, a leading private equity fund and large-scale real estate development firm.
Overall, more than 63,000 people moved from New York to Florida in 2017 alone, according to the U.S. Census Bureau. Miami is the number one fastest-growing luxury real estate market in the U.S. and the fifth in the world, booming with Latin American, Asian, Russian, and other foreign buyers looking for a safe haven for their money post-recession and a healthier, more stable, experienced-based lifestyle.
Daniel Kodsi calls this new standard “ROL” or Return on Life. RPC’s latest project – Legacy Hotel & Residences – includes the city’s first-of-its-kind medical and wellness center, designed to be “crisis-resistant” by utilizing touchless and keyless technologies like “voiceprints” and optical recognition to minimize co-mingled surface contact.
“Air purification, cleaning protocols, aromatherapies, lighting, and water filtration have been becoming brand standards for us for a while, and we’re continuing to innovate in this area,” said Daniel Kodsi in his recent interview to Forbes. “We’re even convinced that what we are doing with this facility during a pandemic like COVID-19 would remain open and be deemed ‘essential’ for the community. Health is now the new wealth.”
As the U.S. federal government and businesses turn their attention to restarting the economy and lifting stay-at-home restrictions, companies are deploying a range of tactics to defend their workforces from COVID-19 and safely reopen their offices. Several states have already begun this process.READ more
The U.S. banks have much stronger balance sheets than they did during the 2008 financial crisis. The Federal Government has responded to the COVID-19 impact quickly and with incredible measures giving financial institutions a significant cash reserve to be deployed and assist in the overall recovery of the country.
Here are the key messages that Daniel Kodsi, CEO of Participant Capital and RPC, addressed during his exclusive online presentation for Financial Advisors on April 2, 2020. His development company RPC has weathered multiple economic cycles over its 40-year history and in his view, the overall impact the Coronavirus is having on markets is not the same as the 2008 financial crisis.READ MORE
The mounting economic toll of the COVID-19 (coronavirus) outbreak increases the importance of finding a source for alternative investments to avoid further declines and reduce exposure to market fluctuations. We are pleased to report that our Net Asset Value (“NAV”) continues to stay stable and increase during these challenging times.Read more
Like so many of you, we are closely monitoring the global situation surrounding COVID-19. Through our relationships with government senior officials we have confirmed that a vast majority of people contracting the illness are not suffering serious health consequences when infected with the virus and that more drastic countermeasures are being put in place to secure the more elderly and at risk patients with pre-existing medical conditions. The goal of the U.S. government is to set strict quarantines so that we do not overwhelm our healthcare system and have the required staff and caregivers to manage and help those in need.
Participant Capital held its first Miami Investment Forum that convened over 200 financial advisors, CEOs, real estate experts from the U.S., Latin America, and beyond
Miami, FL, March 6, 2020. “We brought together the true disruptors of the financial industry to ask them to share their vision of the market,” said Claudio Izquierdo, Chief Operating Officer of Participant Capital, in his opening remarks at the Miami Investment Forum. This one-day closed event convened over 200 financial advisors, politicians, attorneys, real estate experts from the U.S., and Latin America at the PARAMOUNT Miami Worldcenter, the second largest development in the U.S.Read more
Younger, wealthier, and coming from Asia. The profile of typical buyers in the premium second home resort market is dramatically changing. According to the latest Luxury Portfolio International research, while the baby boomers are traditionally buying second homes more often, the new group under 40 is fueling the premium market, creating a spotlight opportunity for sellers. That younger crowd accounts for almost half of interested buyers or at least half of those looking.Read more
Participant Capital Advisors, LLC, a Miami-based real estate investment firm, with over US$3B in projects under development, has announced today that it operates now as a Registered Investment Adviser in the State of Florida.Read more
Real Estate Investment Trusts (REITs) are a diversified pool of assets that distribute quarterly dividends and have the potential to realize long-term capital appreciation making them appealing for an investment portfolio. But like most vehicles with high returns, they still carry additional risks that need to be considered. For some, investments in private real estate funds continue to be a good alternative investment strategy; here is why.Read more
This document does not constitute an offer to sell or solicitation of an offer to buy securities. Any such offer will be made only by means of the Private Placement Memorandum (“PPM”) of the Participant Capital Fund I, L.P. (the “Partnership”), and will be subject to the terms and conditions contained therein. Please refer to the PPM for a detailed discussion of the fees, terms and risks associated with an investment in the Partner- ship. Interests in the Partnership are offered only pursuant to the terms of the PPM.
Investing in the Partnership involves significant risks not associated with other investment vehicles and is suitable only for persons of adequate financial means who have no need for liquidity. There can be no assurances or guarantees that: (i) the Partnership’s investment strategy will prove successful, or (ii) investors will not lose all or a portion of their investment in the Partnership.
There is no secondary market in Interests and none is expected to develop. Interests may not be transferred or resold and an investor does not have a right to redeem Interests except as permitted only with the written consent of the General Partner and under applicable federal and state securities laws. Investors should be aware that they will be required to bear the financial risks of this investment for the entire term of the Partnership, which is a minimum of five years with the option to renew twice for 1yr intervals.
An investor should consider the Partnership as a supplement to an overall investment program and should only invest if willing to undertake the risks involved. Investors who are subject to income tax should be aware that an investment in the Partnership is likely (if the Partnership is successful) to create taxable income or tax liabilities in excess of cash distributions to pay such liabilities.
There is no guarantee of future performance. The Partnership has no previous operating history and will be entirely dependent on the abilities of the General Partner and Manager. There can be no assurance that either investment-level or Partnership-level targeted returns will be realized or that periodic distributions will be made.
The Fund’s Investments will be subject to the risks inherent in investments in and / or ownership in real estate assets. These risks include, but are not limited to, the burdens of ownership of real property, adverse changes to general and local economic conditions, the supply and demand for properties, fluctuations in occupancy and rates, the financial resources of tenants, changes in environmental and other laws and other variables as outlined in the PPM. The Partnership’s investments may also be adversely affected if the property managers employed by the Partnership perform inadequately or are not adequately supervised by the Partnership.
Because the Partnership may participate in a limited number of Investments, the aggregate Partnership returns may be adversely affected by the unfavorable performance of even a single Investment. In addition, the diversification of the Partnership’s Investments could be even further limited to the extent the Partnership invests a significant portion of its capital in a transaction and is unsuccessful in selling of that Investment. The real estate market can be relatively illiquid at times, which may limit the ability of the Partnership to sell of an asset.