1858 – Create desirable spaces with Matias Daroch of MIK Architecture

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0:58with us right now matias moroc matias you are the owner of mik architecture your website is mik architecture.com matias thank you so much for joining us thank you so much for having me i'm excited yes i'm on your website and i'd highly recommend to our friend that's listening to us, go ahead and pull up Matthias' website. It's mikarchitecture.com. What we're talking about is visually beautiful. So I'm hoping to our friend that's listening, you won't just listen to our words, you'll actually look at some visuals and follow along, particularly on Matthias, your work, which I'll have you start off and explain what is the work that you do.

1:43Well, I'll just go into it and jump. So we are an architecture firm that works with residential developers and investors building these beautiful homes to later sell to someone who wants to live in it, of course. and the interesting thing about it is that we myself i come from a background of real estate developments so i'm really toned with what that that developer real estate investor wants or needs what information what are they looking for but also on the architectural side what the market is is looking for and what the end user of that house and that's going to end up buying the property is looking for in that specific neighborhood or region or local zones.

2:35So what we basically do is design with you, a real estate investor, these beautiful dream homes for that person to buy and you get a return on investment, of course. Yeah. Tell me about the market or the business plan when dealing with residential properties that are, well, I mean, again, what you design, these are luxury homes. homes. I don't know if you can give us, because this is outside of my world, maybe just kind of give us a 101 of the luxury home investment opportunity and the folks that you work with. Well, in Miami, we have a particular market, which it's a pretty big market. It's a very all-encompassing place where you can have a bunch of different types of products.

3:21So we're talking about, you know, homes that sell from in the high end, you know, market between two million dollars you can find, you know, not so high end, but high end stuff. And it can go all the way up to 40 million dollars. Of course, those don't sell that much. And it's a, you know, it's very, very, very niche market. But you got this whole range. And then you've got waterfront properties. You have one acre lot properties. You've got school district properties, of course, because that's very important. And then all these things you have to put together, and it depends very specific to a site.

4:00And you have to do what we call the pro forma, of course, to actually understand if that project is going to be profitable or not. And put in all the factors of design, time, construction, and of course, the cell. That's like a big summary. I don't know if you want to go deeper into it, but yeah. Well, I'm curious just because, you know, there are investors that may be, you know, investors that participate in commercial real estate. You know, maybe they've done smaller properties. You know, maybe they've done a lot of residential properties, but maybe they haven't touched luxury yet. And, you know, what type of investor invests in luxury residential?

4:47Oh, that's a great question. that right? I'm calling it luxury. I don't know if that's what you call it. I like to call it high-end because it's a bit more open, but the luxury is already, I don't know. I like to call anything that is above$8 million of sell value, luxury. And it's a great question because that investor, and we got a lot of type of investors that come to the luxury market. Some of them come from real estate backgrounds, but in the commercial or more in the multifamily projects, you know, buildings or lots of townhomes, like more in the serial construction. But then they realized that because Miami is this particular market, that the effort for one house is, and to obtain the same profit of that multifamily or lots of townhomes is less.

5:38So then you can, and I'm talking about effort and time, effort in investment. And yeah, it could be a bit more risky. Yes, it is a bit more risky because you have one project versus a lot. But at the same time, you have, when you do it right, and when you get lenders involved and you leverage the banks, you have also that option to have, instead of 100 properties to sell and manage, and the after sale is also complicated, you can do the same with, I don't know, four. So we're talking about investors that are coming from that background, but also newer investors that are not ready to get into that complexity of multifamilies.

6:18But they are professionals that have a lot of bank and they want to keep growing their wealth. We're talking about CEOs. We're talking about professionals. I met like doctors, attorneys, and that sort of stuff. We got CEOs and of course, people that are also have their own businesses. Some in my case, because I'm actually from Chile, my background is from Chile. We got a lot of Latin persons coming to Miami, investing their money from their countries and bringing it here so they can invest in these homes. So I don't know. I would say we got a big range. I mean, and we're all about education. So if you want to just start, give us, you know, just let me know.

7:00Yeah. And so your work or like what delineates or what separates you from other architecture firms that maybe investors or developers would work with? Like I said before, I like to think that my background as also real estate investor and developer, because I also partner with another builder and a developer, and we do our own homes too. But of course, it's a small scale. We're just starting. So we still need a couple of cycles to get fully independent if we ever want to, which we do. But I would say that that specific knowledge of having the other side of the coin also or the other side of the field is something that not all architects have.

7:53And what I mean about that is that we look on efficiencies during construction, efficiencies of the design so that they minimize any risks and mistakes during construction or during the permitting process. And we also look at what the developer is looking for, which is the return on investment, see what is better to pay off and what we can manage around. And then we got the side of the architect, which is I'm going to want to have a nice project, a nice architecture. I don't want to sacrifice. I don't want to do shoeboxes. This is high-end. So how can we combine both without having a super expensive, amazing luxury home that you built it and then you sold it, you earn zero because it's way too expensive to build versus a shoebox.

8:50So we're right in that middle and we're always looking for that balance. And I would say that is one of, I like to think that's one of the biggest things that we can offer against other architects. Yeah. Matias, I know you just simply because you talk about this, looking at your social media, I'm wondering if you could comment on this and that is the environment that we live and work in. why do you believe that that influences or impacts us? And why might we be a little thoughtful about the aesthetic or just the, like I said, you know, the environments, the physical spaces that we reside and work in?

9:29Why is, why do you think that there's value in, in being mindful of that? Wow. Yeah. You, you went directly to my latest blog post. Everything that's around us influences us, either ups us on energy or downs us. and there's a bunch of things like color or light you know that and again all these other luxury items i'm talking about in that blog post but it's it's a well of course everything is balanced so my personal opinion on that is that you get to live the space when you're mindful of that space so to rephrase it if i'm in an amazing you know like very white room that is that has low noise and it's a great place to meditate but i'm there doing anything but meditating of course i'm not going to be mindful of that influence of that space with me but in that blog post and that's one point of view and then the other blog post what i'm talking about is being mindful of the design during the design, you know, during the schematic design of the project or during the transformation of the spaces for you, for what you need specifically.

10:51That is what you want to achieve, of course, for that each spaces. And one thing that we like to do is try to make the spaces as flexible as they can be for the end user. Because you as a developer or as the person selling, You're trying to sell it to, you know, for the best price, of course, but you're trying to open it up because if you niche it too much, it's going to be very hard to find that person to actually buy that property. So you're trying to open it up without, you know, making it massive. And the way to do that is to be very flexible in those spaces. So then the end user can, you know, get that impact of your design the way they need to use it.

11:33I don't know if I answered your question. I think, yeah, I think it's, I think it's relevant, you know, for all business leaders, regardless if you're in this space or not, you know, just thinking about the environment we create. And this could be just as simple as, well, we are already in a space. I just know that, you know, just kind of looking at some of things that you've shared, you know, just around the environment that we live in, like if you are in a cramped, messy, awful working space, or that's what you're providing for your employees, there's cost to that. Like it's, it has an effect on us.

12:09Whereas, you know, you kind of shift your environment and it just feels differently. And I think that we, it gives us the opportunity to me to perform at a different level than when we're encumbered with, you know, just mess. Mess. Yeah, I absolutely agree. And, and well, yeah, that's been in a different business topic, but yeah, we can go way deep there too. And yeah, Yeah, yeah. Just, you know, if you're looking in your crystal ball here, you know, we're recording this, you know, in the early part of 2024. It's, you know, who knows. But on the higher end residential side of things, any feelings in the investor community about, you know, obviously right now we have higher than normal interest.

12:51Well, I shouldn't say normal. I mean, we've higher compared to years, a few years past interest rates. So that's certainly affecting things. But any other things to look out for in the year ahead, just in terms of like the higher end residential? So whenever I get that question, I always ask back, are you talking about just Miami or like the whole country? Well, you tell me. Miami is its own unique ecosystem for sure. Yeah. So that's the thing. Miami, I don't like to call it, it's a bubble because bubbles burst. But like you said, its own ecosystem. And it's still being, you know, feed it with more and more immigration money and policies both from the state and the city.

13:42So I don't think it's going to exponentially grow like it did during after COVID. It's more stable right now. And I'm pretty sure that it's going to stay that way. Stable going up. I'm not going to go down. at least not in the next year. The rest of the country, though, that's a different story. And I'm not prepared to give that answer yet. Yeah, sure. Well, for the meantime, everybody come invest in Miami. How's that? I would say so. Yeah, I would say so. And they come, Matias, they come and work with you. Your website is mikarchitecture.com. When somebody goes there, other than look at all of the beautiful work that you've done, What would you recommend that they do?

14:28They could go by through the blog section. We're trying to put more and more content every month there. There are interesting things that you can find. And then, of course, go and see about us. We're pretty proud of what we try to communicate to the world of what we do and how we feel. And then, of course, our history. But yeah. Well, awesome. Again, Matthias Daruch, thank you so much for joining us. Again, your website, mikarchitecture.com. Thanks, Matthias. Josh, thank you so much for having me and have a great and amazing weekend.

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