Russian billionaires living in Florida's “Little Moscow” fear that their luxury properties will be seized because of the invasion of Ukraine

In Sunny Isles Beach, Florida, wealthy Russians are awaiting possible sanctions from the US government for the invasion of Ukraine.

The island's 1.5-mile strip, located just north of Miami, was nicknamed “Little Moscow” thanks to the Russian immigrants who settled there decades ago and the many wealthy Russians who have placed their money in luxury properties, according to Business Insider.

In fact, he stressed, “in recent years, Florida has been the place where most Russian properties have been purchased in the United States.” However, sanctions “imposed on the Russian elite due to President Vladimir Putin's invasion of Ukraine threaten to jeopardize their lifestyle in this piece of paradise.”

In this regard, it was noted that “some are concerned that their money in Russian banks may be blacklisted if they want to buy real estate in the United States. But in Little Moscow, the Russian elite are still evaluating their options.”

Journalist Hillary Hoffower from Business Insider toured the area, where “two realtors told me that the market was on hold while some buyers or sellers figure out how sanctions will affect them, if at all.”

In particular, “Ramon Rodriguez, sales director of a Miami-based real estate team at Compass, said he has been receiving requests from 'opportunistic' buyers looking for Russian sellers and added that he has not seen a change in the activity of Russian buyers - he had recently shown the $7.5 million penthouse that we were visiting one at that time.”

Rodriguez said that “the number of new U.S. buyers looking for in Sunny Isles and the rest of South Florida far outweighs any drop in Russian buyer activity.”

“While he has sporadically seen “super-rich” Russian buyers in the area during his real estate career, he said, most are not in the top 1%.”

For her part, Alexandra Peters of ONE Sotheby's International Realty, “whose most recent listings include mansions in Sunny Isles for $11.5 and 8.1 million dollars, also said she hasn't seen any rushing sales from the nervous Russian owners.

“Everyone is waiting,” he said. “I think many are hoping that things will be resolved sooner rather than later.”

In this regard, he expressed doubts that there will be a sudden influx or a mass exodus in the area. “It will be quiet and unnoticed,” he said. “It's too early to see new buying and selling trends.”

It should be recalled that Sunny Isles Beach “was originally a place of freedom for those fleeing communism in the former Soviet Union,” Peters said. But “it also became an opportunity for those who have money to spend it,” he said.

“Not many questions are asked about where the money comes from.”

He added: “When you are rich and live in a state of fear, you feel very free here. You can enjoy life and go shopping.”

For this reason, life in Sunny Isles seems to be proceeding normally. “When I ventured into the area, I saw a lot of Lamborghini on the street and Louis Vuitton bags on my arm: people are still premiering spring in this American center of Russian wealth,” the journalist said.

Daniel Gielchinsky, attorney at DGIM Law, PLLC, in nearby Aventura (Florida), which deals with many real estate litigation and bankruptcy cases in the area, explained that when a geographical area is considered unsafe, the people who live there go elsewhere by default. “For some Russian businessmen, that place turns out to be South Florida, particularly in Sunny Isles.”

“Maybe that's why you've noticed more activity in the area. He noted that in a single day he saw three luxury car carriers leaving Bentleys and Rolls Royces in front of the luxury condos. For comparison, he said he usually sees one a year there.”

“There's a lot of talk, a lot of people are worried about how it's going to affect them,” Gielchinsky said. “But when something like this happens, people come here and put their money elsewhere. They invest, they buy a place. Traditionally, those condos have been considered a wise place to put the currency, which eventually becomes dollars.”

Buyers are anxious, but there is no reason to sell right now

In this regard, it was noted that “owners may not be in a hurry to sell, considering that the seizure of assets in the United States could be a huge legal headache for the government.”

“Gielchinsky said that sanctions against individuals are difficult to enforce, especially in a country like the US where there are presumptions of privacy. Wealthy buyers are often able to hide true ownership of a property when they want to move their money, stratifying it through limited liability companies and trusts.

“What are you going to do with it, put a condo in the back of a truck?” , he said. “You can start legal proceedings, but some lawyer will appear and say, 'There are no oligarchs here, move on. '”

Liz Hogan, real estate agent for Compass, told Pandy: “They are really too afraid to do one thing or another. They think that if they sell, the government will confiscate their property, and it is easier and safer to keep the property than to have cash in the bank.”

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