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The recent rezoning of the Christ Episcopal Church's properties to T4-O opens up even greater possibilities when combined with Florida's Live Local Act. This legislation, designed to promote affordable housing, provides significant incentives for developments that meet specific criteria, further enhancing the potential of properties. Under the Live Local Act, if a project dedicates at least 40% of its residential units as affordable housing—defined as affordable to those earning up to 120% of the Area Median Income (AMI)—it becomes eligible for substantial tax benefits and allowances for increased density and height. This means that developments can include more units than typically permitted under standard zoning regulations. Case Study: From 35 to 150 Units - Standard Zoning Potential: Under the regular Miami 21 zoning code, the church's property could accommodate approximately 35 units. - Live Local Act Potential: The provisions of the Live Local Act dramatically increase the development potential, allowing for the construction of 150 units or more on the same property. This increase is possible because the Act grants qualifying projects the highest density allowed in the jurisdiction—up to 1,000 dwelling units per acre—and permits greater building heights based on the tallest existing structures within a one-mile radius. In modeling the potential development, careful consideration was given to maintain the existing church structure, preserving its historical and community significance. An analysis identified an eight-story building as the tallest within a one-mile radius, making it a suitable benchmark for the new development's height. This approach ensures the project integrates with the surrounding residential area of Coconut Grove. Significant Impact on Housing Supply and Affordability The ability to increase the number of units from 35 to 150 has profound implications: - Enhanced Housing Supply: Introducing up to 150 units can significantly alleviate housing shortages in Coconut Grove, accommodating more residents in a desirable neighborhood. - Promoting Affordability: With a minimum of 40% of units designated as affordable, the development supports middle-income households, contributing to a more economically diverse community. - Community Benefits: The influx of residents can stimulate local businesses, enrich the cultural fabric, and enhance the vibrancy of the neighborhood. The church's property is part of a broader movement within Coconut Grove: - Rezoned Properties: A total of 48 properties in Coconut Grove have been rezoned from T3 to qualifying T4 zones, potentially unlocking similar development opportunities. - Future Developments: The success of these zoning changes may encourage further rezoning efforts, amplifying the impact on housing availability and affordability.

Recent zoning changes in South-West Coconut Grove, Miami, have dramatically increased the development potential of properties in the neighborhood. Our Zoning Signal algorithm has identified a cluster of properties that stand to benefit significantly from these changes, highlighting new opportunities for growth and investment in the area. Historically, much of South-West Coconut Grove was zoned under the T3-R and T3-O designations, which imposed strict limitations on building density and height. These zones typically allowed for low-density residential development, restricting the number of units that could be built on a given parcel of land. However, a recent rezoning initiative has transformed two clusters of the neighborhood into T4-L and T4-O districts. This shift permits higher density and mixed-use developments, effectively doubling—or in some cases tripling—the number of units allowed on certain properties. Impact of Zoning District Changes from T3 to T4 An analysis of several properties in the area illustrates the significant impact of the rezoning: - Property with 5,350 SF Land Area: Previously zoned T3-O, allowing approximately 2.2 units. Under the new T4-L zoning, it can now accommodate about 4.4 units. - Property with 7,564 SF Land Area: Changed from T3-R zoning with 1.6 units allowed to T4-O zoning permitting around 6.3 units. - Property with 14,880 SF Land Area: Saw a significant jump from 3.1 units under T3-R zoning to about 12.3 units under T4-O zoning. These examples demonstrate how the number of units allowed on these parcels has increased substantially, offering property owners the chance to capitalize on the enhanced development potential. The Church's Vision: A Case Study One of the most striking examples of this transformation involves a cluster of adjacent properties owned by Christ Episcopal Church Inc. The church owns multiple parcels in the neighborhood, and the recent zoning changes have collectively increased their allowable units to approximately 59 units, up from a significantly lower number under the previous zoning. The church's proactive efforts to get this city block rezoned from T3-R and T3-O to T4-L and T4-O demonstrate a strategic move to maximize the utility and value of their properties. This area was previously part of a large expanse of T3-R zoning, which significantly limited development options. The successful rezoning of the church's properties sets a precedent for neighboring blocks. Properties adjacent to the church's holdings could be next in line for rezoning, potentially unlocking similar or even greater development opportunities. For property owners and investors, this possibility enhances the attractiveness and value of these parcels. The rezoning in South-West Coconut Grove signifies more than just a change in building codes; it represents a shift toward higher-density, mixed-use development in a historically low-density area.

Our new algorithm, Zoning Signal, found intriguing insights into Miami's zoning changes between 2023 and 2024. Among the most significant findings are properties that underwent district name changes, signaling comprehensive transformations in their development potential and influencing surrounding areas to follow suit. A total of 68 properties were affected by these district name changes. Key Zoning Transitions: T6-8 to T6-12 Upgrades: Properties shifting from T6-8 to T6-12 can now build up to 12 stories by right, instead of the previous 8 stories. With bonus provisions, these developments can reach up to 20 stories, a substantial increase from the former maximum. T5 to T6-8 Enhancements: Transitions from T5 to T6-8 zoning elevate the allowable stories from 5 to 8 and significantly increase unit density from 65 to 150 units per acre. T3 to T4 Transformations: Primarily affecting single-family homes, this change allows for developments of up to 36 units per acre, introducing more diverse housing options in previously low-density areas. D1 to T6-8 and T6-12 Conversions: Properties moving from D1 (industrial use) to T6-8 or T6-12 now support mixed-use multifamily developments with densities of 150 units per acre, reshaping former industrial zones into vibrant residential and commercial hubs. Case Study: Allapattah's Re-Zoning Our algorithm spotlighted a cluster of zoning changes in Allapattah, where several properties transitioned from T6-8 to T6-12. Notably, these properties are all owned by a Mr. William Riley. This cluster is particularly interesting because it is surrounded by T6-8 zones, creating an island of higher-volume potential in an area not immediately adjacent to existing T6-12 zones. Implications and Observations: Precedent for Surrounding Properties: The rezoning of Mr. Riley's properties sets a strong precedent for neighboring T6-8 properties to seek similar upgrades, potentially transforming the area's skyline and density. Surrounding properties might now consider transitioning to T6-12, leveraging the opportunity to build up to 12 stories by right and up to 20 stories with bonuses. Strategic Assemblage: Large property assemblages, like Mr. Riley's, benefit significantly from such zoning changes, enabling ambitious development projects that smaller sites might not structurally support. This strategic move indicates potential large-scale developments that could stimulate economic growth and urban revitalization in Allapattah. Looking Ahead: The zoning changes in Allapattah signal a wave of transformation that could reshape the neighborhood's character and economic landscape. The proactive rezoning efforts suggest that significant development plans are on the horizon. We will closely monitor this area for investment opportunities and urban development trends.

We are automatically tracking zoning changes and their impact on real estate investments. Between 2023 and 2024, 5,627 properties in the City of Miami experienced zoning changes that affected their potential buildable area. I'm excited to introduce Zoning Signal, an algorithm we've developed to analyze zoning yields before and after municipal zoning changes. Cities update their zoning regulations at least twice a year, which can significantly impact what can be built on a property—and, ultimately, its value. What Does Zoning Signal Track? We focus on five key metrics that influence buildable area: - District Name Change: A change in zoning classification that can redefine development possibilities. - Building Height: Adjustments to the maximum allowable height of buildings. Number of Floors: Changes in the permitted number of stories. - Lot Coverage: Modifications to the percentage of a lot that can be built upon. - Floor Area Ratio (FAR): Alterations in the ratio of a building's total floor area to the size of its lot. By embedding zoning logic into every property, Zoning Signal detects when municipal rule changes affect buildable areas and identifies which metric is responsible. Understanding which properties are impacted by zoning changes offers a significant market advantage. Early awareness allows investors and developers to capitalize on opportunities before the broader market catches on. Neighborhoods undergoing zoning changes often see an increase in property values as new development potentials emerge. This post kicks off a series where we'll dive deeper into each type of change detected. We'll explore the consequences and potential effects on property values, helping you stay ahead in the ever-evolving real estate landscape. Accompanying Image: A visual map highlighting all properties affected by zoning changes in Miami between 2023 and 2024.

“We're thrilled to deploy our technologies across the Christie’s International Real Estate network and even more excited to collaborate on new ventures that promise to significantly enhance brokerage productivity,” said Olivia Ramos, founder and CEO of Deepblocks. “Our joint team will start work immediately and we are expecting our first new products within the next couple of months." “We are always looking how to deliver the next level of service to our clients and to create continuous growth opportunities for our agents,” said Ilija Pavlovic, President and CEO of Christie’s International Real Estate Group. “AI has definitely entered our lives, bringing exciting unlimited opportunities. From the first moment that I met Olivia and learned about Deepblocks’ seven-year pioneering work in creating a very unique database specific to the real estate industry, I had no doubts that we found the right partner with whom to enter into this new AI universe." Contact us today to learn more. #expansion #ai #growth