As summer in the Hamptons begins to cool down, the Palm Beach market is starting to heat back up. With a flurry of activity in the ultra-high-end market this spring, Florida’s Gold Coast may have never really been put on ice.
No one knows better than Margit Brandt, one of Palm Beach’s busiest agents who has been a part of the biggest deals so far in 2024, including the record-setting sale of the private Tarpon Isle, a 2.3-acre compound that sold in May for $152 million.
“Palm Beach’s ultra-luxury market has seen a flurry of sales above $30 million so far this year, by our tally about $1 billion of total sales volume spread across only 15 transactions on our small little island, representing an average trade price in the waterfront market of $65 million,” explains Brandt, a Senior Luxury Real Estate Advisor at Premier Estate Properties, the exclusive Christie’s International Real Estate affiliate for Palm Beach Island.
“In a broader real estate climate plagued by high interest rates and uncertainty about the upcoming election, this strong show of force at the highest end of our market proves that some of the most sophisticated investors in the world are choosing to make their largest real estate purchases in Palm Beach — betting that regardless of potential geo-political shifts, Palm Beach will be well-positioned long-term,” she says.
According to a new report released by Brandt on her website, she has a very impressive market share for the Palm Beach Island waterfront, where homes are priced $30 million and up. In this ultra-luxury sector of the market, Margit can be credited for nearly 1/3 (30%) of all sales activity year-to-date 2024.
Out of $919.36 million of waterfront Palm Beach assets that are either sold or pending as of August 1, $276 million of that activity can be traced directly back to Brandt. This dominant presence in the market has helped her reach a total volume of $300 million in sold transactions so far in 2024.
To reach that number, Brandt has participated in just 7 transactions, which means that her average transaction size is a jaw-dropping $42M. In addition to the sale of Tarpon Island, some of her top deals in 2024 have been the pre-construction sale of 1140 S. Ocean Blvd. in Manalapan, the $39 million sale of 10 Via Vizcaya, and a $31 million trade for 584 Island Drive on Everglades Island.
Her team has also participated in nearly 20% of sales volume nationally transacting over $100 million.
“We have only our team and our clients to thank for this feat, and we are really excited to see what the rest of 2024 has in store.”
in sales so far in 2024.Sonya Revell
Buyers Are More Selective
Buyers have raised their standards since the post-pandemic bump in 2021-2022, Brandt says. They have become more patient and proven they are more comfortable making aggressive — and less competitive— bids. They are also more selective about what construction work they are willing to take on.
“Overall, we’ve seen a trend that instant gratification and turn-key properties continue to demand a significant premium, saving buyers from having to spend two years dealing with architectural reviews, construction permitting and overall lead times — not to mention $1,000-$2,000 price per square foot to build new or renovate,” she notes. “This has made it more difficult for properties which require significant construction to be sold at top dollar.”
“Waterfront and trophy assets (in the $30 million-$300 million range) have performed better than the entry-level ($10 million-$12 million) and the mid-market ($12 million-$25 million), but overall the big differentiator has been less about price point and more about value and how turn-key a property is,” she says. “If a property requires work, sellers who have accommodated the price accordingly have been successful. And for the turn-key properties, aspirational pricing hasn’t landed the same way it once did. Buyers have become more arduous about the comps, and less willing to just blindly pay ‘the make me move’ prices.”
She continues, “Pricing and quality, like in any market, have separated what has sold from what hasn’t. Still, the top end of the market has performed best.”
In an attempt to get the inside scoop, Behind The Hedges asked where is the greatest opportunity in the Palm Beach market. But, Brandt plays it close to the vest: “You’d have to call me for that one!” she says with a laugh.
In all seriousness, she doesn’t believe there is a particular area of the greater Palm Beach market that presents a better opportunity over another for a good deal.
“Each individual transaction has its own value proposition and different buyers love different parts of the market,” she says.
“Palm Beach is a small, effectively 10-mile-long barrier island that is a quarter-to-a-half-mile wide at most parts. The North End, Midtown, and the Estate Section (South End) all offer unique benefits and each micro-market has seen some historic highs, while other transactions have shown that great value still exists,” she explains.
“You have to remember that Palm Beach was under-valued before 2020, so while the escalation in prices marginally over the past four years seems very high from afar, in the grand scheme of things we are still priced at $2,500-$4,000 per square foot for interior, and $3,000-$10,000 per square foot for waterfront, which is still a very reasonable place to be in a global luxury market in which many destinations regularly ask $5,000-$10,000 price per foot for inferior lifestyle experiences.”
Brandt touts the way of life the area affords its residents.
“Palm Beach offers one of the best lifestyles in the world, as can be seen by the incredible roster of clientele who have chosen to either make it their primary residence or purchase a second home. Fifty-eight members of the Forbes Billionaire’s List live in Palm Beach, representing about $500 billion of wealth. That kind of endorsement and deployment of capital, not to mention the new calls we are getting asking about Palm Beach, implies that there is still a lot of value, momentum, and runway on the horizon for the entire Palm Beach market.”
An Innate Understanding and Young Energy
Her deep knowledge and understanding of the market are impressive, but we wondered what it is that she thinks sets her apart from other agents.
“Well, for one, we have the relationships in the market to provide our clients with unique access. Two, we have a proven track record and a significant market share in Palm Beach, which gives our clients the confidence to perform with us. Being data-driven also gives both our buyers and sellers the analytics and information they need to make smart decisions. In an era where a lot of agents are popping in from out of state to try and capitalize on the growth in Palm Beach, it helps that we are full-time locals (my husband is a born and bred Palm Beacher) who are naturally rooted in the community, with an ear to the streets and a pulse of the market,” she says.
“When you’re selling Palm Beach, people want to know they are dealing with someone who is organically versed on not just the market, but every aspect of the community. As the prices in Palm Beach have escalated, clients have become even more selective about ensuring that they are working with an expert who lives and breathes the market, as opposed to a part-time or out-of-town agent,” she continues.
Brandt also adds that the clients she works with understand that her team is investing in marketing their properties “above and beyond the normal Palm Beach standard,” she says. “We’re coupling intensive local exposure with the global reach of Christie’s International Real Estate, reaching art and real estate connoisseurs the world over.”
She and her team are “doubling down on a new age of digital, video, and social media content in a place where brokers have traditionally focused on print advertising, handshake deals, and relying on the power of the Multiple Listing Service,” she notes.
“We are in a customer service business, a sentiment that gets lost too often in this industry. We create an ambiance and an environment of saying ‘yes,’ of being aspirational in making deals happen. When others might call a client’s request delusional, we’ve tried to be positive and massage transactions to the right meeting of the minds. We have consistently provided extraordinary results and that is what has created loyalty and enthusiasm from our customers. We are extremely grateful for our incredible clientele who make it possible, and truly being thankful to our patrons has gone a long way in building legitimate relationships where clients become part of an extended family rather than just participating in a transaction.”
At just 36 years old, she has achieved success in real estate few ever will. Interestingly, she touts her former residency as having something to do with it.
“Having lived in New York prior to Palm Beach has certainly been a unique asset since many of the relocations to South Florida are coming from the tri-state area. Having an innate understanding of where our clients are coming from and what they may expect going forward, we are able to welcome and introduce people properly to the community when they arrive and also highly curate the home search,” she says. “Certainly, having a lot of good energy, enthusiasm, and genuine passion for what we are doing has helped too. Lastly, having a positive mindset and time management skills, especially as a mother, has been really important.” Does she have any advice for young women, either in or out of real estate?
“Focus on finding something you love to do and that you are really good at because everything is so competitive. If you don’t enjoy it and have a natural knack for it, you’ll be facing an uphill battle every day,” she says. ”Also, don’t let anyone tell you that you can’t do something. Everything is possible, and don’t hesitate to think big.”
So far in her career, she says she is most proud of her recently achieved milestone, selling the most expensive property in the United States. “Having been in the industry for over 11 years now, I’m most proud of how we have continued to earn the respect of our colleagues and the trust of our clientele. And, as a woman under 40, I am proud to have experienced this unique growth over the past few years. We’re very fortunate to live in one of the best places on the planet, and love what we do.”
As summer wanes, she is looking forward to the amazing winter weather ahead in Palm Beach.
As for the upcoming real estate season, time will tell. “No one has a crystal ball,” she says. “Palm Beach is, however, uniquely well-positioned for any market reaction to the election in November. If the market is more pessimistic about the election outcome, Palm Beach will continue to be a haven and escape for people where they can enjoy a great lifestyle, continued tax advantages, proximity to a rapidly growing business hub downtown, and strong supply and demand fundamentals for their assets.”
She concludes, “If the economy gets a post-election bump, Palm Beach will have dozens upon dozens of buyers in the $10 million – $250 million market, who we already know from communications are just waiting for the right time to get off the sidelines and deploy capital into the market in 2025. Either way, we do expect strong activity this winter.”
PARTNER CONTENT
This article was the cover story for the August 16, 2024, issue of Behind The Hedges inside Dan’s Papers. Read the full digital version of the magazine here.
