Perez, compact and fit at 52, may be Florida's busiest developer. In addition to Murano at Portofino, Perez's privately held development firm, The Related Group of Florida, will open four high-end luxury residential projects in 2002. Construction also is under way on four other projects, among them a piece of West Palm Beach's massive mixed-use development, CityPlace. Also in the works are at least 16 other projects, including permitting and site planning for One Miami -- the first luxury residential high-rise in downtown Miami.
"You either love real estate or you don't make it in this business," says Perez, nodding at the maxim, his hand kneading his graying beard. "I've always said that real estate is half art and half science. The science part you can learn, but the art is something you're born with."
Raised in Argentina and Colombia by Cuban exile parents, Perez came to the U.S. for college, intent on a career as an urban planner. After he finished graduate school at the University of Michigan, a professor helped him land a job with the city of Miami's community development department. Three years later, itching to create rather than merely conceptualize, he launched The Related Cos. of Florida, a development firm specializing in low-income rental properties. The company often leveraged federal tax credits for such projects, keeping capital and credit needs low, and in less than a decade, Related was the largest developer of affordable housing in the state.
The company took an unexpected turn in 1993, when German-born developer Thomas Kramer faltered early in construction on a high-end condo tower in South Beach, Portofino. The banks agreed to bail him out, recalls Miami real estate analyst Michael Y. Cannon of Integra Realty Resources-AREEA, but only if Perez stepped in to complete the project. "Jorge didn't know much about luxury condos," says Cannon, "but he had credibility. The bankers loved him." The success of Portofino prompted Related's shift away from affordable housing, and today the company says it is the state's largest developer of high-end apartments and condominiums by sales volume. In all, the company has built or managed more than 40,000 residential units totaling $4 billion in value. Revenues reached $547 million last year, up from $297 million in 1998.
His secret? Copious market research coupled with moderate pricing. Perez says he typically spends between $3 million and $5 million on marketing and sales before breaking ground. If pre-construction sales don't hit his targets, he'll scrap the project and eat the loss, something he's done "a few times." The company also sets prices slightly below the market. "We might leave money on the table," he says. "But our goal is to sell quickly -- get in and get out."
Point of view
Perez, who holds more than a 75% stake in the company, believes his background in urban planning sets him apart from the pack. While others envision buildings, he envisions neighborhoods -- he tends to cluster his projects in close proximity, as in South Beach and in Miami's Brickell area. And while others measure unit sales, he measures the social interactions of tenants and other property users. "Most developers come from business backgrounds where profitability is the goal," he says. "Our goal is to change the urban environment."
That philosophy, says Cannon, has made Perez the ideal developer for West Palm Beach's $600-million downtown urban zone, CityPlace. Although CityPlace officially opened in 2000, construction will continue at least through 2004. Perez is building most of the residential component.
A similar vision -- meshing work, play and living environments -- underlies Perez's much-anticipated One Miami project in downtown Miami. Although the central business district is largely deserted after dark, Perez believes the seeds of a vibrant residential community lie in the city's gritty urban core. Three years ago he surprised many by converting downtown's historic Congress Building to low- to moderate-income housing. The response has been phenomenal. When complete in 2005, One Miami will add 900,000 square feet of high-rise housing for the professional class, who now commute from the suburbs.
"There is no great city in the world that does not have a 24-hour downtown district," insists Perez, ever the urbanist. "Miami has to change. It will."
That belief drives Perez's civic pursuits. He is spearheading efforts to build a new home for the Miami Art Museum in downtown's Bicentennial Park. An avid art collector, Perez has pledged a "substantial portion" of the $175 million price tag.
During the Clinton years he also gave generously to Democratic candidates and causes. He proudly tells of spending the night in the White House, where he discussed U.S./Cuba relations with President Bill Clinton into the wee hours. He says he turned down the plum post of U.S. ambassador to Colombia to remain close to his three children. He still speaks on occasion with Clinton and with Al Gore, whom he will support should he again run for president. But politics are on the back burner. "Maybe I work too hard," Perez suggests, as if speaking to himself. "But right now I'm really too busy to think about it."