South Florida Report
Miami-Dade and Palm Beach counties are hot

By Debra Wood

From trendy South Beach in Miami to redeveloping downtown West Palm Beach, plenty of ongoing multifamily residential, commercial and public projects are keeping the construction outlook bright.

"Right now our contractors are not complaining," said Dan Shaw, president and CEO of ABC-Florida East Coast Chapter in Coconut Creek. "Everyone is busy."

Shaw said companies are better prepared for new work than they were two years ago because personnel are more seasoned and have had time for additional training.

"It's really working at the right pace," he added. "Things are moving well for the industry."

Much of the construction is high-rise residential, but Shaw expects commercial will follow. Retail, health care, schools and other projects will come online to meet the increased demand. Funding is in place for numerous multiyear projects, such as Miami International Airport's expansion.

The heated real estate market has moved north, with multiple high-rise projects under way or planned in Palm Beach County, as well as potential development related to California's Scripps Research Institute's planned campus in Florida.

"It's absolutely wonderful for the construction community," said Brian L. Kelley, executive director of the East Coast Chapter of Associated General Contractors in West Palm Beach. "The growth is explosive, and it's high-quality growth even without Scripps. You add Scripps as a catalyst, and it's unbelievable."

Residential

While South Beach remains a trendy hot spot, much of the high-end residential development in South Florida is taking place in downtowns. Miami's Biscayne Boulevard area is booming. The Waverly at Las Olas and other luxury complexes are changing the face of Fort Lauderdale, and city dwelling has become all the rage in West Palm.

"Florida never had residential downtowns, and that is changing," Shaw said. "People want to live in nice metropolitan, downtown areas. Florida is finally beginning to blossom."

John Moriarty & Associates of Fort Lauderdale is building two projects for Miami's The Related Group of Florida - One Miami in the heart of the city, and ICON, a two-tiered, 35- and 40-story condominium at South Beach.

GS2 Corp. of Miami has the Trump Palace under construction at Sunny Isles Beach. The units include 10-ft. ceilings and outdoor terraces with ocean or Intracoastal views. The Palace, the second phase of the Trump Grande Ocean Resort & Residences, is scheduled to wrap up next year, and the third phase, Trump Royale, is slated for completion in December 2006.

A 25-story, M Resort Residence is also under way at Sunny Isles Beach.

And, luxury residential-hotel combination projects are being built in Broward County. AMEC of Fort Lauderdale is working on the $80 million St. Regis Hotel and Condo in Fort Lauderdale. And a planned 23-story W Hotel and Residences has been announced for the city's beach area.

Providing another boost to Broward County tourism, Perini/Suitt recently completed construction of the Seminole Hard Rock Resort & Casino Hollywood. Perini/Suitt is a joint venture formed by the Perini Building Co., a wholly owned subsidiary of Perini Corp. of Framingham, Mass., and Suitt Construction Co. of Greenville, S.C. "Perini looks forward to continuing its work for Native American tribes," said John Page, director of business development.

Moriarty is building the Beach Club condominium in Hallandale and the Port Condominium and Marina in Fort Lauderdale, both in Broward County. Suffolk Construction of West Palm Beach has the $48 million, 14-story Waverly at Las Olas under way in Broward County for ZOM Development of Fort Lauderdale and recently was awarded the contract for the $67 million, twin, 22-story The Symphony, also in Fort Lauderdale.

Construction of about 5,000 residential units is wrapping up in Fort Lauderdale, where Shaw said local officials believe the market is overheated and would like it to cool a little. Still, interest remains high, about 500 more units are permitted and space exists for more projects.

Public Works

Infrastructure improvements will help government keep up with the influx of new residents. Shaw said school construction is lagging enrollment growth in all three counties, but the school systems are responding with many projects coming out of the ground.

A state-appointed oversight board released $44 million on hold since 2001 for new construction for Miami-Dade Public Schools. The board continues to hold $50 million.

The Weitz Co. of West Palm Beach is heading for a late 2004 completion of a four-story government center and parking structure it is building for the town of Sunny Isles Beach. With all the growth, "the city is coming out at the seams," said Taras Diakiwski, Weitz business acquisition manager.

Miami International Airport is spending about $2 million daily and nearing the most active construction phase of its 10-year Capital Improvement Program. The airport is adding a $799 million, 1.5 million-sq.-ft. South Terminal, which includes 15 gates able to handle wider aircraft. Parsons-Odebrecht Joint Venture is the prime contractor. The project should finish in 2005.

"The revised program invests more than $100 million in security infrastructure, more than $300 million in environmental mitigation and improvements, $50 million in noise and safety projects and more than $200 million to maintain existing infrastructure," said Angela Gittens, Miami-Dade Aviation Department director.

The fifth and final stage of the $230 million Tri-Rail Double-Track Corridor Improvement program continues, adding a second mainline track along 44 mi., including new bridges, a station and numerous upgrades. When finished, the double track will run through the entire 72-mi.-long tri-county corridor.

Dick Corp. of Pittsburgh has completed more than half of the $120 million Miami Federal Courthouse and is currently working on curtain wall, internal studs and the roof. The 14-story facility topped out in January. Project manager Wayne Schrader expects an on-time completion in 2005.

These projects represent a mere sampling of the work taking place in South Florida, which continues to witness phenomenal growth.

"The South Florida market is doing well, but it really depends on what type of projects your firm does," said Diakiwski, indicating that Weitz's revenues have increased 60 percent during the last four years. "We're growing like crazy. Most of it is because of the expansion going on in the area."