The American real estate market, despite the fluctuations, is a colossus of business opportunities. Foreign buyers invested US$59 billion in residential properties in the United States between April 2021 and March 2022. Data from the National Association of Realtors reflects an increase of 8.5% in the comparison. to the previous interval and put an end to the sequence of three years of decline. And Sagewood Corporation keeps an eye on this vein, mainly because it has among its clients 80% of Brazilians and Latinos who live or who see an investment opportunity in Uncle Sam’s land. “The company grew, in large part, due to word of mouth recommendation. But the intention is to balance more and more,” Douglas Strabelli, the founder, told MONEY.
Buyers from Brazil occupy the fifth place among the main customers in the period in the American market, with an investment of US$ 1.6 billion. The ranking is led by Canadians ($5.5 billion), followed by Mexicans ($2.9 billion), Chinese ($6.1 billion) and Indians ($3.6 billion). In addition to being a construction company, Sagewood acts as a developer and is currently developing projects totaling US$ 230 million. The company has in its portfolio projects such as the Hotel Fasano, in New York, worth US$45 million, and the mansion in the Hamptons, worth US$35 million. In just over two decades, there were more than 360 projects designed, with about 52 thousand m² built.
However, anyone who thinks that the company created in 2001 by the man from Maringá from Paraná had an easy path in the United States is wrong. In addition to the natural competition in the segment, the administrator faced the challenge common to many foreigners who arrive in the country: the language. Strabelli could not speak English, and yet he managed to build the structure to leverage the business over the years.
Today, the company’s operations are 100% focused on the states of Florida and New York. The reason? High demand and resource availability presented by these markets. But now the limits will be extended. “We are considering expanding projects in the state of Florida itself, in cities like Orlando and Tampa,” said Strabelli. And even other markets have already entered the crosshairs. “We are also preparing to invest in other American states, such as Georgia, North and South Carolina, and even in Brazil.”
The diversified portfolio is one of Sagewood’s highlights. It ranges from multi-family developments (average prices of US$60 million) to mid-sized buildings, luxury single-family homes (average prices of US$3 million to US$5 million), condominiums and hotels. “Currently, the majority of projects in our pipeline consist of multi-family commercial developments with an average lead time of five to seven years,” he said. “However, our portfolio is composed of projects that serve end buyers, renters and companies (retail/hospitality).” The type of client and their preferences vary by project. According to the developer, private clients looking for a home prefer high-end finishes to luxury, while the end-user base in multifamily projects is more attentive to convenience factors such as location and amenities.
Strabelli predicts a 14% year-on-year increase in construction costs by the end of the year (labor and material). The lack of raw materials resulting from the pandemic and the war between Russia and Ukraine is among the main reasons. “And we expect prices to stabilize in the range of 2% to 4% in 2023/2024,” said the man from Paraná. The situation has influenced property prices, which in Miami, for example, have increased by 15% year on year for single-family homes and 28% for condominiums. “Rents have experienced a 13% year-over-year increase.”
The housing deficit in the North American market is 3 million units. And Sagewood is experiencing a moment of full expansion and acquisitions. In 2022, it acquired eight plots of land that will be combined into six buildings. “This acquisition has as its main focus the multifamily.” The works are expected to start between February and July 2023, with completion and start-up in the first months of 2025.
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