Little Havana, the "Hole in the Donut"

Little Havana, the "Hole in the Donut"

Like the “Hole in the Donut” Little Havana has long been forgotten as real estate investors and developers sought opportunity in the socioeconomic expansion of Miami. While for many years, great recession aside, Downtown Miami to the east, Doral to the west, Overtown to the north and Coral Gables to the South has seen tremendous development activity, Little Havana has been lost on the map of those who have targeted the Miami area to capture the benefits of its growing population and rising economy. 

Perhaps this lack of interest in Little Havana, is attributed to the fact that much of the development in Miami has been funded by international investors looking for a safe haven for their investment capital. These investors have flooded the local market for years in search of one particular product, high-end condominiums. While these condominiums are being built at an astounding pace, along with the complimentary high-end retail in the surrounding submarkets, Little Havana continues to be overlooked because of its inability to support this type of development.

            Despite the vitality that resounds even at the mention of “Little Havana” with its strong Cuban roots and Latin influence, there are a number of economic, social and political challenges that exists, which has deterred even the most daring and willing developers. These challenges, along with the obvious income demographic change from downtown Miami and the surrounding areas, has made Little Havana a forgotten town that has stood by and watched helplessly for years as its neighbors have benefited from the economic revitalization that takes place with new development. Even while insiders have passionately pushed for change there has been little in the way of new development necessary to jump start the economy.

While there is no apparent answer, hope still exists, as Mauricio, the presenter referred to. The introduction of the new zoning code, Miami 21, was introduced to shape new development into more sustainable projects and provide financial incentives for developers who share this optimism. However, the complexity of the code could scare the impatient and make it more difficult, at least in the planning and approval stages. Even after successfully navigating the code, other obstacles in the community, like crime, poverty and a weak and unwilling local government make any new development project, substantially riskier than an investment in a neighboring city.

 One thing is clear, that any investment approach in Little Havana must encompass a more macro view that will address many of the aforementioned challenges that exists. Even in the face of these challenges, those who dare to bet on this forgotten city may realize great gains from the hidden opportunities that exists in the “Hole in the Donut” that is Little Havana.