If there is one thing that Daniel Kodsi, CEO of Royal Palm Companies, a diversified real estate development company, knows, it’s Miami real estate. That’s because he has spent the last 30 years in Florida, raising money for real estate funds and developing real estate projects. Kodsi is bullish on the Miami region in particular and has a variety of projects underway in the Sunshine State.
“Miami is unique to the extent that we are seeing both domestic and international immigration from every country in the world,” Kodsi said. “Every country has recognized Miami as a key gateway city into the U.S. Recently, Miami has been second only to New York, so you are seeing a lot of traffic, a lot of people moving to Miami, buying second homes in Miami, opening up businesses, especially with the new tax laws in New York. You also have hedge funds opening up their businesses here to avoid state taxes in New York,” he said. “So, there is just a tremendous amount of activity.”
Kodski said he has seen Miami go from being a small city to a major world city. “The growth has been exponential,” he said. “It gets named a lot of times with cities like London, Paris and New York. But Miami is still a young city. If you look at the demographics, the future of the city, it has a lot of, potential,” he said.
That said, cities within the state of Florida differ from one another. “Within Florida, if I told you I’m building in Tampa and Miami, those are two completely different markets, the demographics, everything about them is different,” Kodsi explained. “So it wouldn’t matter if I said Texas, all the markets are different. Still, Florida stands out as one of the highest growth states in terms of net migration in the country.”
Miami is not without its problems, which include an affordable housing crisis. But Kodski contends that’s no different for any other major, growing city, and that “we have just about everything you can imagine on the Eastern side of the country. I’ve seen people move from California because of taxes, although they are a little taken aback by the humidity,” he chuckled.
Royal Palm focuses primarily on mixed-use developments—which include hotel and residential properties as well as condominium developments for sale and residential properties for rent. “Those are our three primary businesses, but because it’s mixed-use in urban location, we often have a retail component, or an office or commercial component as well,” Kodski said. “We have a diversified portfolio, by product and by region.”