Star Island Real Estate

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Star Island, Miami FL. is one of the most prized real estate areas in South Florida. Current residents include Shaquille O'Neal, Julio Inglesias, Sean Combs, Rosie O'Donnel and Gloria Estafan. Past residents were Al Capone, Harvey Firestone, Madonna and Sylvester Stallone, among others.

Exclusive Star Island sits like a floating jewel in the aquamarine waters of Biscayne Bay, between the main land and Miami Beach. The waters surrounding the island are part of the Biscayne Bay Aquatic Preserve. Star Island is not only coveted for its supreme, unspoiled waterfront location and limited amount of residents, but also for its extreme privacy. Accessible by just one bridge, the gated enclave is the home of Miami's wealthy elite.

Star Island Aerial Views

Star Island By Sea

Star Island - Miami's Most Prized Real Estate

Star Island home of Phillip Frost
Star Island in Miami Beach is home to the stars, and is one of the most exclusive communities in Florida. The island consists of only 32 properties, and is coveted for it's location and privacy. Residents of Star Island include celebrities Sean Combs (P Diddy), Gloria Estafan, Rosie O'Donnell, and New York Yankees star Alex Rodriguez (A-Rod). Recently, a home previously owned by NBA basketball star Shaquille O'Neal, was reportedly purchased by Naomi Campbell's billionaire boyfriend, Vladislav Doronin.

Perhaps the single most prized property on Star Island is a 6 acre parcel of land located on the northwest tip of the island, owned by billionaire Phillip Frost and his wife. Mr Frost was the chairman of a large drug company, Ivax, which was sold several years ago. Situated on this amazing waterfront lot, is a 28,000 square feet mansion which was built in 2001. According to the Dade County property records, the property is assessed at a value of slightly more than $58,000,000, and the annual property taxes in 2008 were $730,000.

Shaq's Star Island Sale May Set Price Floor

The following is a reprint of an article published today quoting Alex Shay's view of Star Island real estate.

July 10, 2009

The recent revelation that basketball star Shaquille O’Neal finally sold his mega-manse on swanky Star Island for $16 million — a substantial discount from the $35 million he once sought — might not thrill his neighbors.

They include Rosie O’Donnell, Gloria Estefan, Sean “P. Diddy” Combs, Lenny Kravitz and billionaire Phillip Frost, and it’s a safe bet none would welcome being added to the list of celebrity poster children for the luxury housing crunch.

The sale price of $16 million is a mind-numbing drop of 54 percent from his original list price in 2005 of $35 million.

It was a great deal for the buyer, Vladislav Doronin, the Russian billionaire boyfriend of supermodel Naomi Campbell, but what does that mean for the market value of neighboring houses?

Some real estate experts say that the sale of Shaq’s house and an $8.1 million August 2008 transaction for the mansion next door to Rosie are the latest comparable sales figures for the ultra-luxury enclave, and as such have established a new, drastically dropped floor in pricing for the exclusive man-made island.

“Star Island is down at least 50 percent from two years ago,” said Carlos Justo, a real estate broker to the stars who sold Rosie, Diddy and Estefan their homes. Justo ran into his own troubles investing in high-end homes, and made headlines last spring when he declared bankruptcy and said he was $20 million in debt.

But others dismiss the theory Shaq’s house will sink sales, saying there are only 35 homes on the hyper-exclusive island in Biscayne Bay. Only the very wealthy can afford the rarified luxury of Star Island and there are never more than a few homes on the block at a time.

“It’s simple supply and demand,” said Alex Shay, who sells luxury homes in Miami Beach. “There is only one Star Island; nothing else compares to it.”

Star Island is an oval-shaped, man-made island created in 1922 by Carl Fisher, an automotive parts pioneer and the co-founder of Miami Beach. The U.S Army Corps of Engineers dredged sand to build Star Island and several neighboring islets, including Fisher Island, where homeowners include Julia Roberts, Oprah Winfrey and Mel Brooks.

Although Shay doesn’t think that Shaq’s sale alone will drive prices down, he says Star Island and most of Miami Beach have not seen property values increase since 2003 or 2004, the peak of the market.

Shay and Justo agreed that sellers still insist on asking more than their homes are worth and buyers are just as stubbornly offering at least 20 to 30 percent less than the asking price.

“Greed hasn’t gone anywhere and foolishness is everywhere,” said Shay.

Last August, Dr. Cem Kinay, a physician, luxury resort developer and owner of a 560-acre island in the Turks and Caicos chain, bought 44 Star Island in an estate sale for $8.1 million, a discount of 17 percent from the asking price of $9.75 million.

“Dr. Kinay’s home and Shaq’s will establish a new level,” said Justo in an April interview.

The biggest sale on the island, which also set a record for Miami Beach, was in 2006 when Stuart Miller paid $27 million for three one-acre lots and 300 feet of waterfront. Miller is the president of Miami-based Lennar Homes, which has suffered enormously in the housing bust, with its stock price sinking 80 percent in the past three years. On an island where waterfront is precious currency, Kinay, only two years later, paid $8.1 million for 250 feet of waterfront and a one-acre lot.

Kinay’s next-door neighbor, Rosie, put her Star Island home on the market for $16.7 million in 2003, but changed her mind and didn’t sell. Rosie paid $6.75 million in 1999 for the estate.

In 2008, Shaq’s manse was assessed at $26.4 million, but still sold for $10 million less. Rosie’s house was assessed in 2008 at $11.9 million.

“Star Island has come down 50 percent from two years ago and we still haven’t hit bottom,” said Justo.

Star Island Located in Miami Beach

Star Island is a man-made island located in the city of Miami Beach, Florida. Completed in 1922, Star Island is considered one of the most exclusive areas of Miami Beach, and since 1986 has been home to Gloria Estefan and her record producer husband, Emilio.

The Estefans' multi-million home is actually comprised of two homes, boasting six bedrooms, eleven bathrooms, a swimming pool, tennis court, and 15,547 square feet.

Star Island also falls within The Key Biscayne Aquatic Preserve which is approximately 75,000 acres of state-protected land.

Miami Heat center Shaquille O'Neal is looking to sell his Miami Beach home for $35 million -- $3 million more than when he first listed it in 2005. (NOTE): As of April 2009, Shaquille's house is listed on the market for sale for $22,500,000.

The eight-bedroom, nearly 20,000-square-foot home is on Star Island, a private, artificial island in Biscayne Bay. The Mediterranean-style home, on a 2.5-acre waterfront lot, has an indoor basketball court, gym, steam and sauna room and a two-bedroom guest house, according to the property listing. An outdoor Jacuzzi, swimming pool, tennis court and dock are also on the property.

The home was built in 1992 by another Heat center, Rony Seikaly, who sold it in 1995. Mr. O'Neal, who owns the home through a trust, bought the property for $18.8 million in 2004, shortly after being traded to the Heat by the Los Angeles Lakers. He listed the home for $32 million in 2005, less than a year after he bought it, and reportedly looked at properties in Fort Lauderdale before pulling the Star Island house off the market.

In addition to leading the Heat to their first-ever NBA championship last season, Mr. O'Neal, 34 years old, has also won three championships with the Lakers and an Olympic gold medal in 1996.

By Ben Casselman
From The Wall Street Journal Online