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Developer Receives $76 Million in Funding for Airbnb Branded Condos in Miami
July 18, 2022

Developer Receives $76 Million in Funding for Airbnb Branded Condos in Miami

by The CE Shop Team

Developer Wins Big with Funding for Airbnb Condos 

A new condo development, District 225, has secured a $76 million loan from Madison Realty Group, to begin construction on an Airbnb-branded project in downtown Miami.  

Madison Realty Group, a New York-based lender, has agreed to loan the money to ROVR Development and BH Group for the 37-story 343-unit condo building. Units in the building have already been fully presold months before construction even began.  

District 225 Project Details 

These luxury condo units will range in price from $300,000 to $800,000, from studios to two-bedroom designs. Units will be complete with fully furnished and finished interiors. This is intended to allow owners to rent out the units easily. Atlantic & Pacific, a real estate and property management company, will manage all short-term rentals, which will be listed on Airbnb’s rental platform.  

Amenities for owners and renters will include indoor racquetball and basketball courts, along with a rock-climbing wall and rooftop pool deck.  

Demand for condos with the intent of short-term rentals has remained strong, especially in a heavy tourist market like Miami. This demand has prompted builders to develop more projects like this in similar markets.  

District 225 is projected to be completed in 2024, according to ROVR Development’s Oscar Rodgriguez. 

Rodriguez also told The Real Deal that the company plans to do more short-term rental condo projects in urban markets that are expected to meet demand. In fact, this isn’t District 225’s first condo project in Miami. The company also has the Grand Station Apartments, just east of District 225, as well as a new project in the fold called the College Station project.

Developer Receives $76 Million in Funding for Airbnb Branded Condos in Miami 

Demand for Short-Term Rentals in Florida 

Florida has always been a hotspot for tourists and snowbirds, but the rise of remote work has created a new tourist who’s able to vacation long-term. Allowing them to stay in their favorite place for more than a week or two.  

Factor in the rise of Airbnb and similar short-term rental companies, and it’s a match made in heaven. The demand for Airbnb rentals in Florida is strong, especially now post-pandemic. Florida’s regulations on Airbnb are relatively lax, making it almost impossible for any city in the Sunshine State to not allow short-term rental properties.  

The current occupancy rate for short-term rentals in Miami is high at 71%, with a seasonal peak of 82%. There are over 15,000 active rental units in Miami as of Q2 2022, with Airbnb having a major market share of 65%. In the U.S., Florida holds four of the top ten most popular destinations for Airbnb users

  1. Kissimmee, Florida 
  2. New York City, New York 
  3. Los Angeles, California 
  4. Davenport, Florida 
  5. San Diego, California 
  6. Atlanta, Georgia 
  7. Miami, Florida 
  8. Panama Beach, Florida 
  9. Austin, Texas 
  10. Las Vegas, Nevada 

To rent the average unit, you’re looking at $233 for the going daily rate, but when you consider ROVR’s District 225 condo tower, the daily rate will likely be much higher.  

Florida had over 30 million tourists visit in Q4 of 2021, higher than the number of tourists visiting pre-pandemic. Estimates show that 122.4 million tourists visited the Sunshine State in 2021, compared to 131 million in 2019, according to Visit Florida. 

To say that this condo project is a good investment is an understatement. Demand for short-term rentals in Miami will not falter, despite seasonal fluctuations, but over the long term the investment is sure to pay ten-fold.  

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