Miami: Where Luxury Real Estate Meets Dirty Money | The Nation


Miami: Where Luxury Real Estate Meets Dirty Money

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If you fly into Miami International Airport and drive east toward the city and north on Interstate 95, you bypass South Beach and midtown and in about thirty minutes reach the 163rd Street exit. Heading east toward the ocean leads you past several miles of strip malls filled with convenience stores, pawn shops, bodegas, gas stations, chain restaurants, nail salons and an occasional yoga center. Then rising unexpectedly in the distance is a row of condominium skyscrapers so baroque and unattractive that they conjure up the name of only one man: Donald Trump.

The Fund for Investigative Journalism provided a grant to research this story. This article was also reported in partnership with the Investigative Fund of the Nation Institute.

About the Author

Ken Silverstein
Ken Silverstein is a Washington, DC–based investigative reporter.

Also by the Author

Here are a few recent buyers of high-end Miami properties.

The former finance minister of a notoriously corrupt regime in Angola is living in high style.

You have arrived in the city of Sunny Isles Beach, or “Florida’s Riviera,” as its political and business leaders have dubbed it. Massive skyscrapers along beachfront Collins Avenue include three Trump Towers and three other Trump-branded properties, including the Trump International Beach Resort, where I stayed—very comfortably, I confess—for eleven days in June.

Other luxury properties on the stretch include the gaudy Acqualina Resort & Spa, where the penthouse recently went on sale for $55 million, and the Jade Ocean, which offers “beach amenities thoughtfully conceived to continue attentive service and lavish appointments all the way to the water’s edge” and a Children’s Room featuring Philippe Starck furnishings and a baby grand piano. Meanwhile, ground was recently broken on the Porsche Design Tower, which its developers describe as “the world’s first condominium complex with elevators that will take residents directly to their units while they are sitting in their cars.”

Until the late 1990s, this Miami neighborhood was populated by retirees and tourists and was dotted with dozens of theme motels, many of them named after Las Vegas properties: the Dunes, the Sands, the Desert Inn and the Aztec. Between the 1920s and ’50s, Sunny Isles catered to visitors like Jack Dempsey, Babe Ruth, Grace Kelly, Burt Lancaster and Guy Lombardo, but later became a destination for tourists of modest means.

Everything changed in 1997, when real estate developers and other business groups succeeded in passing a referendum to incorporate Sunny Isles as a town. From that point on, building, planning and zoning decisions were stripped from the Miami-Dade County Commission and put in the hands of the industry-dominated Sunny Isles City Commission, whose current members consist of a real estate executive, a property lawyer and a former advertising executive. What happened next was the most spectacular neighborhood transformation seen in Miami since cocaine money rebuilt the city’s downtown area beginning in the late 1970s.

The first mayor was David Samson, a parking garage magnate from Chicago who retired to Sunny Isles and helped “remake a sleepy area of low-rise motels built along Collins Avenue in the 1950s into a sparking city of condominium towers,” according to his 2003 obituary. Norman Edelcup, a former banker and real estate executive, succeeded Samson upon the latter’s death, and the city has been a property developer’s wet dream ever since.

For all of its wealth, Sunny Isles, which spans just one square mile and has a population of 20,832, is as bland and boring as its political leadership. “Residents are as pampered as hotel guests,” says the glossy official guidebook, which features photos of the beach, shopping boutiques and, mostly, luxury condos. “World- class spas, unparalleled concierge service, beachside wait staff ready to serve, free city transportation, and dozens of cultural opportunities is why Sunny Isles Beach stands out amongst the rest.”

I interviewed a Siberian-born realtor in the lobby of Beach Club, a luxury condominium on South Ocean Drive in Hallandale, just north of Sunny Isles. “Miami is a brand,” she told me as we sat on a sofa in the building’s huge foyer. “People from all over the world want property here.” Developers were only putting up luxury properties because they “know that the crisis has not affected people with money,” she added. By way of example she pointed to the Regalia, a new Sunny Isles condo with only thirty-nine units, one per floor, with prices starting at $6 million.

Most of her clients are Russian—there are now three direct flights per week between Moscow and Miami—and increasing numbers are moving to Florida after spending a few years in London first. “It’s a money center, and it’s a lot easier to get your money there than directly to the US, because of laws and tax issues,” she said. “But after your money has been in London for a while, you can move it to other places more easily.”

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