Developments International News

12 Star Capital and Rainmaker Marketing secure rights to launch $312m South Florida development

CIRC Residences Hollywood.

12 Star Capital and Rainmaker Marketing have partnered to secure the rights to launch CIRC Residences Hollywood, an offshore real estate investment opportunity for South Africans.

The R6 billion property launch is situated between Miami and Fort Lauderdale in South Florida, and it is spearheaded by internationally recognised developers, GCF Development. The project will be one of the largest sectional title developments to have launched in greater Miami over recent years.

Together, 12 Star Capital and Rainmaker Marketing have pooled significant resources to explore and understand the dynamics of the greater Miami property market.

Stuart Ferguson (Director of 12 Star Capital) and I initiated the launch of CIRC Residences as an EB-5 project and have worked closely with ISG World to package this product specifically for the Sub-Saharan market to introduce a financing solution for South Africans.  CIRC is a successfully completed and tenanted building. Condos are now available for purchase for the first time ever, allowing local South African investors the perfect opportunity to tap into the booming Miami property market and the benefits that this offers,” comments Stefan Botha, Director of Rainmaker Marketing.

Botha reiterates that by investing in CIRC Residences, savvy investors will benefit from three key advantages, namely leveraging currency fluctuations (dollar hedge), dollar-based capital appreciation, and earning rental income in dollars. “The existing rental demand for CIRC is enormous, based on its location, facilities and therefore provides a powerful yield for investors. For instance, a one-bed, one-bath unit starts with a monthly repayment from $1 530,55, while rental income ranges for that unit from $2 272,44. There are also US-based mortgages available for non-residential investors.”

The South Florida property market has been on an upward trajectory since 2020.According to the ISG World 2023 Annual Miami Report, an article published in the Financial Times, Miami is among the top three performing cities globally since the 2020 pandemic alongside Dubai and Singapore. The report also indicates that Florida is the state that has seen the highest population growth.

In recent years, South Florida has emerged as a powerhouse in the global real estate market. The 2023 Profile of International Home Buyers of the MIAMI Association of Realtors (MIAMI) has revealed a significant increase in South Florida’s foreign buyer share. In 2022, foreign buyer residential purchases accounted for 18% of total dollar closed sales in the region – a figure nine times larger than the United States’ national average of 2%.

South Florida has consistently been in the top 5 performing property markets in the world annually and offers a winning combination of perfect weather, beautiful beaches, rich culture, and a booming economy, making it a magnet for those in search of great jobs and high quality of life. Additionally, the absence of income or social security taxes coupled with early payment discounts available on property taxes in Florida means big savings for investors. All these factors put together have made this city a highly sought-after destination,” notes Stuart Ferguson, Director of 12 Star Capital and Founder and CEO of American Dream.

According to the Wealth Report 2024, a new dynamic has emerged since the Covid-19 pandemic, which involves large companies and wealthy individuals relocating from Los Angeles and New York to Florida in increasing numbers. This is largely due to attractive tax rates, low crime rates, political and economic stability, and the success of remote working. To prove this even further, the report also states that Avenues, one of New York City’s most elite schools, is set to open in Miami in 2025 with placement likely to cost US$50,000 a term.

CIRC Residences offers investors modern living with its 25-storey move-in ready condominium, comprising 386 units available for sale that will be launched to South Africans in early May. Featuring versatile one, two, and three-bedrooms starting from $386 500, these units are characterised by spacious, light-filled floor plans and the choice of captivating ocean views or panoramic cityscapes. Occupants within the development are treated to a wealth of amenities tailored to a lavish lifestyle, including poolside cabanas, an outdoor kitchen equipped with grills, and a state-of-the-art fitness centre.