Little-Known Islands Off Miami Beach Are Poised To Explode As Investors Rush In
The two small islands sitting in Biscayne Bay a stone’s throw from Miami Beach are about to change dramatically as brand name investors rush into what some experts say is still an “unrecognized” area.
Treasure Island and North Bay Island—collectively known as North Bay Village—are sandwiched between Miami’s Upper East Side to the west and Miami Beach to the east.
Until recently, the small islands with a population of about 8,000 were used as a way back and forth from the better known destinations. But now, North Bay Village is in its own right and will be transformed into a high-end luxury resort.
“It was coming off the beaten track, and we were always lagging behind,” Chris Wands of Douglas Elliman, who not only sells in North Bay Village but lives there, too, tells Realtor.com®.
But the nearly 5-mile-long islands are changing rapidly as home buyers price out of Miami and big-name investors begin looking for value. In a decade, median prices in the metro rose from $229 per square foot to $362, according to Realtor.com data.
About $2 billion in real estate and sales is pouring into North Bay Village, estimates luxury retailer ISG World.
“North Bay Village is in the perfect transition to Miami’s luxury market,” Wands said. “But there is still an opportunity. There is a time to enter, but that time is now.”
Who’s Who in North Bay Village
Some bold names that have recently staked their claim on the islands include a soccer legend Lionel Messiwho supports the new sports center on Treasure Island through the Argentina Football Association. The building, which will be demolished in 2024, has football fields, a new community center, offices, sports facilities and a park.
In 2023, North Bay Village saw its first luxury waterfront building by Pacific & Orient Properties break ground at 7918 West Drive. The 21-story Tula Residences features 54 service-filled residences with sweeping views of the Intracoastal Waterway. Condos range from $2 million to $7 million.
Nearby, at 7940 West Drive, luxury brand Pagani is planning a 28-story building with 70 residences, to open in 2029, with prices ranging from $3.7 million to $10 million, and two penthouses in the $30 million range.
The Related Group and Macklowe Properties are planning two 43-story waterfront towers called the Ritz-Carlton with 364 condos on Harbor Island, located in northern North Bay Island. The plans include a private marina and a 9,000-square-foot public park, according to The Real Deal.
Sunbeam Realty, owned by longtime locals Ansin family, is planning a 2.72-acre waterfront property at 1400 79th Street Causeway, which will feature a luxury residential tower called Isle of Dreams with 246 units, three waterfront restaurants, walking trails, green spaces, and a dog park.
Locals say there’s more to the islands than their proximity to Miami and comparable prices.
“The biggest thing in North Bay Village is the ideas,” Wands asserts. “It’s without a doubt some of the best views in Miami. You’re in the middle of the bay, so you have water views to the north, south, east, and west.”
“What surprised me the most after I moved here was how unbeatable this place is,” Alexandra Peters and ONE Sotheby’s International Realty, which is also selling and occupying the property, tells Realtor.com.
“Locals call it the ‘heart of the bay,’ and that really feels like it once you’re there, surrounded by Biscayne Bay, marinas, small islands with birding areas, and extraordinary panoramic views of Miami and the water.”
The downside to this area is that “walkability is still a work in progress,” and given all the money pouring into the area, it’s no wonder construction is everywhere.
Early check-in
Wands moved to North Bay Village in 2021, when he and his family moved from Miami Shores to the gated community of Treasure Island. He bought a four-bedroom, three-bathroom “fixer-upper” for $1 million, but says the home would have cost at least twice as much as the one across the bay in Miami Beach.
He’s watched top names like Palm Tree Club Miami and Daniel’s Steakhouse move into the area.
But the brand he’s looking forward to embracing is Publix, a South Florida staple. A beloved brand name—such as Whole Foods, Trader Joe’s, and Starbucks—quickly signals an area’s gentrification (some would say gentrification).
“This is going to be the first great supermarket in North Bay Village,” Wands enthuses. “It’s a big deal.”
And this won’t be a Publix supermarket. Set to open later this year, it will have a rooftop lounge and host events such as beer tastings. The store will be part of Shoma Bay, a mixed-use tower with 333 residential units and a number of retail and dining areas.
Wands estimates that domestic ratings will see a 5% to 10% bump if the good supermarket moves in. It also creates a leverage effect with other traders, giving them the green light to take risks in an underserved area.
While luxury prices on the islands are still a steal compared to Miami, that’s bound to change in the next few years, Wands said.
Currently, the average price tag is $450,000, but Wands says a large, single-family home will cost you about $1.2 million. The most expensive listing on the islands is a $14 million six-bedroom, six-bathroom condo that was built in 2022 and “features spectacular skyline views of Biscayne Bay and Miami.”
Another smart investor who uses relatively low rates is the entrepreneur Pawan Singhwhich has amassed 11 waterfront properties with at least 2.5 acres and 500 feet of waterfront, starting in 2022, down $61.5 million, according to The Real Deal. (Realtor.com has contacted his company, Virginia-based NavX Consulting, a management and technology firm, for comment.)
“That would have cost him at least $100 million in Miami,” Wands said.
Actually, it’s a spec developer Todd Michael Glaser (who bought Jeffrey EpsteinPalm Beach Properties) and the Posner Group plunked down $105 million for the 2.3-acre site at 5940 North Bay Road in Miami Beach just across the bay.
Wands is soon listing a newly constructed home at 7701 Coquina Drive. In late 2023, the vacant property sold for $1,025,000, but a new, white-washed, modern five-bedroom, 5.5-bathroom property will be listed for $5.9 million.
“In Miami Beach, that would be over $10 million,” Wands said. “But there is still value here.”
