Harvey Hernandez, CEO, Newgard Development Group

In an interview with Invest:, Harvey Hernandez, CEO of Newgard Development Group, discussed the company’s key milestones, the state of Florida’s real estate market, trends in flexible ownership models, challenges facing the industry, and goals for expansion.

What have been the key milestones for Newgard Development Group over the past year?

Every quarter is important, but last year we started construction on our biggest project to date. It’s a 1.2-acre site mixed development consisting of 784 residential units and about 1.5 million square feet. It’s located in the heart of Brickell and on the Miami River, across from Brickell City Centre.

This project is a tremendous achievement for us. We’ve been in the business for 25 years, but this development is about double the size of what we typically do on average. It’s a significant milestone for the firm and the team, and we’re very proud of it.

What is your overview of the real estate market in Florida now?

Real estate markets are always driven by sentiment and psychology — consumer energy and confidence shape the market. Florida is in a unique position right now: it’s 100% pro-business, pro-freedom of speech, pro-diversity, and pro-development.

Over the past 15 to 20 years, Florida has enjoyed strong tailwinds, and they’re now stronger than ever, thanks to favorable politics and policies. For the first time, high-profile business leaders from across the country are establishing a presence here. It’s unprecedented.

We’re very optimistic about Florida’s future. We recently launched a $50 million general partner fund exclusively for state investments. Florida is becoming the U.S. epicenter for economic activity.

This growth, however, brings challenges, such as infrastructure not keeping pace with demand. Still, the outlook is extremely positive, with people from California, the Midwest, and the Northeast flocking to Florida. The state’s potential is enormous.

How does the luxury housing market compare with other segments of the housing market?

There isn’t enough supply to meet demand across all segments, and luxury housing is especially desirable. New projects and pre-sales reflect genuine demand, not just speculation.

This demand spans all market levels — luxury, mid-range, and lower-range properties. Coastal developments are thriving, and inland projects like ours are also performing well.

We’ve noticed a significant trend toward pre-construction buying. Buyers realize that waiting until a project is completed means limited options and higher prices. Educating them on the benefits of early purchasing has been key. 

Pre-construction sales have been highly effective, allowing buyers to secure the exact property they want while benefiting from better pricing. It’s a win-win for everyone.

What trends are you seeing in Florida and beyond?

Across Florida and the U.S., there’s growing demand for flexible real estate models. A few years ago, we launched Natiivo, a brand of purpose-built, designed and fully furnished condos licensed for short-term rentals like Airbnb.

This product has become incredibly popular for its flexibility. Owners can use their units when they want and rent them out with no restrictions. For example, someone can live in the unit for three months and monetize it for the other nine, offering both convenience and financial returns.

We believe we pioneered this trend five years ago, and we’re now scaling it across Florida. Natiivo recently launched in downtown Fort Lauderdale, with expansions planned for Tampa, Orlando, and West Palm Beach this year. It’s perfect for Florida, especially for international investors or seasonal residents who don’t want a traditional apartment sitting empty for months.

We’ve completed Natiivo projects in Austin, Texas, and Miami, with another high-end iteration, Natiivo Reserve, currently under construction in Miami. Fort Lauderdale is in pre-construction, with plans to break ground this year. Tampa, West Palm Beach, and possibly Orlando are next. Natiivo and its Reserve brand now make up 80% of our business, and we see tremendous potential in this market segment.

What differentiates the company from other developers?

There are a couple of things that set us apart. First, we own unique brands like Natiivo and Natiivo Reserve. That’s a significant differentiator because it allows us to offer something other developers simply can’t replicate.

Second, we’re a boutique firm with a team of about 20 people. This structure gives us the flexibility to be entrepreneurial and more directly involved in our projects. It’s an advantage in an industry like real estate development, where conditions can change quickly.

Being nimble and hands-on has been a key part of our success. It allows us to adapt to market demands and maintain a high level of involvement in everything we do.

How are you leveraging technology across your projects?

When it comes to pre-construction sales, everything today revolves around data and lead generation. We’ve embraced technology, including AI, to streamline many aspects of what we do. That said, real estate development remains a somewhat archaic industry, especially when you look at how engineers, builders, and sales teams operate.

It’s still a very people-dependent business, which can slow down the pace of technological innovation compared to other industries. However, we’re committed to leveraging technology wherever possible to stay ahead.

How does your organization address environmental challenges and ensure long-term resilience in your developments?

We’ve had a consistent, steady track record, but it’s important to acknowledge that we’re in a geographic area prone to natural phenomena like hurricanes. It’s been that way forever. That said, the way we’re designing and building infrastructure today is far more resilient.

We construct our buildings to withstand catastrophic events, ensuring we minimize damage when disasters strike. Buyers today are much more aware of these risks, but they also understand that with hurricanes, you often have time to prepare. In Florida, our buildings and infrastructure are designed to handle these events far better than in some other areas.

Look at recent events in places like North Carolina and California, where communities weren’t as prepared for natural disasters. When people evaluate where to live, they’re increasingly considering safety, quality of life, and vibrancy. For many, Florida, and South Florida in particular, remains one of the best options.

What challenges does the real estate sector in Florida face, and how are you addressing them?

One of the biggest is infrastructure. We don’t have enough schools or sufficient public transportation to support our growing population. We’re constantly working with municipalities and city officials to encourage improvements in these areas.

Another challenge is the rising cost of living. It’s becoming increasingly difficult for employees to afford to live in cities like Miami. Addressing these issues requires both public and private sector collaboration. While we can contribute from our side, governments need to step up and implement effective policies to make cities more livable.

It’s encouraging to see some alignment between public and private goals, particularly when it comes to improving transportation and creating a more livable, walkable city. Everyone is trying to contribute, but more work is needed.

What are your main goals for growth and expansion this year?

Our primary goals for this year center on expanding the Natiivo brand to new locations. As I mentioned earlier, we launched a $50 million GP fund that we aim to fully capitalize by the end of Q2. This fund is critical for facilitating our planned expansions across Florida, including Tampa, Orlando, and West Palm Beach.

Through this expansion, we plan to develop another $1.5 billion worth of real estate this year. It’s a major undertaking and a significant milestone for us.

Additionally, we’re focused on growing our team by about 10%. Attracting top talent is always a challenge, especially when many applicants are from out of state. This can complicate things since they may lack local knowledge or experience. Still, we’re committed to bringing in the right people to support our growth.