What do you do if you have more money than you can ever spend, and own residences in most major metropolises around the world. You invest in the most exclusive "third" (or fourth, or fifth) vacation "house" that can be purchased by people for whom money is no object, such as the $1 billion Faena Miami Beach, which has lined up as buyers none other than the creme of the (bailed out courtesy of a multi-trillion ongoing taxpayer bailout) Wall Street crop including Apollo's Leon Black, and of course Goldman's very own resident of a duplex in 15 CPW, Lloyd Blankfein. The Faena oceanfront development for the megarich is financed by another billionaire, chairman of Access Industries, Len Blavatnik, whose $16.1 billion net worth puts him 49th in the Bloomberg Billionaires index.
What is it? Bloomberg covers the bases:
The project will feature an 18-story tower with 47 residences priced at $3 million to $50 million, two luxury hotels and an arts center designed by Pritzker Architecture Prize winner Rem Koolhaas.
Faena’s residential tower, designed by Norman Foster’s Foster + Partners, also has attracted New York dealer Larry Gagosian among the buyers, according to the people.
Some residences will have 20-foot ceilings to accommodate large artworks, and many buyers requested to install special film in the windows to protect the art from direct sunlight, he said.
Anchored by the historic Surf Club, where Winston Churchill came to paint and Frank Sinatra and Elizabeth Taylor came to play, it will include a five-star hotel and two 12-story residential buildings designed by another Pritzker winner, Richard Meier. The Surf Club Hotel & Residences will be Meier’s first project in Miami, he said at a Dec. 5 poolside brunch celebrating the development.
The 8-acre (3.2 hectare) project includes more than 800 feet (244 meters) of beach, according to developer Nadim Achi. The 150 units will include nine penthouses, each with a private garden and a swimming pool. Three of the penthouses have sold for prices from $20 million to $25 million, he said.
“The mega-wealthy are looking for exclusivity, service and design,” Achi said, drinking bottled water at a cabana overlooking the ocean and a giant construction pit. “A lot of buyers who are deciding to make Miami their second or third residence came through Art Basel.”
“Miami real estate is on steroids,” said Mera Rubell, a local art collector who attended the Faena dinner. “The fantasy is about the community. But what are the chances all these billionaires will show up at the same time?”
From the building's website:
- Architecture and interiors designed by Foster+Partners
- Porte-cochère entrance with travertine paved drive
- Dramatic 27’ triple height lobby defined by polished black concrete fin walls
- Floor-to-ceiling window wall systems with wide, custom designed and engineered sliding panels
- Lobby walls in polished architectural concrete with blackened steel finish on all lobby doors
- Tranquil pools through the lobby area into the surrounding landscape
- Lobby and elevator flooring in polished stone
- Three passenger elevators with interiors in Bendheim glass and Japanese silk paper running at 500 feet per minute
- Dedicated service elevator running at 350 feet per minute
- Atlantic Ocean, bay and city panoramas through floor-to-ceiling glass
- Private or semi-private elevator vestibules
- Service entrances in 2 to 5 bedroom homes
- 10?-6? Ceiling Heights, 11? or 13? in Penthouses
- Entry foyers with stone flooring and teak entry doors
- Master bathrooms with double sink vanities, separate bathtubs and glass showers
- Morning Kitchens in master bedrooms of all penthouses
- Laundry Rooms with full sized side-by-side washer and dryers in most residences
- Choice of flooring: White Venetian Terrazzo or 8? Light White Oak
- Fan coil system with multiple zones to maintain better temperature and humidity control
- Integrated motorized blinds in dual tone fabric throughout residences
- Trapex door handles designed by Foster+Partners
- Trufig flush-mounted electric fixtures
- Optional Staff Quarters
- Interiors range from 1,307 to 4,730 sq ft (121.4 to 439.4 sq m)
- Aleros range from 420 to 1,516 sq ft (39.0 to 140.8 sq m)
- Half floor Penthouses range from 4,243 to 6,399 sq ft (394.2 to 594.5 sq m)
- Half floor Aleros range from 2,727 to 3,887 sq ft (253 to 361 sq m)
- Total Living 18,253 sq ft (1695.8 sq m)
- Indoor 8,273 sq ft (768.6 sq m)
- Alero 7,299 sq ft (678.1 sq m)
- Private Rooftop with pool 2,681 sq ft (249.1 sq m)
And the punchline from none other than Blavatnik, wearing his best salesman outfit:
“I remind you, there are very few apartments left,” he told the crowd from a stage. “Hurry.”
Hurry indeed, before the music stops, the Fed's liquidity tide recedes, and people start asking questions.
In the meantime, this is what Lloyd and company will buy with the Fed's "wealth effect."