About Hawkins Commercial Realty

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Hawkins Commercial Realty is an entrepreneurial boutique commercial real estate brokerage helping business owners and investors in the Miami, Florida area navigate the processes of buying, selling, and leasing property, and providing M&A/business brokerage services. The company’s guiding principles are to always be responsive, to be effectively, steadily assertive, to continuously develop and utilize competency, to be sensibly creative, and to seek to add value to the process. The company was founded and is owned by a seasoned entrepreneur with more than 25 years of experience in commercial real estate as a broker or principal… (more)

James Hawkins lic. Real Estate Broker

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May 20, 2020

Video: MSCI Researc Executive Director Jim Costello Discusses Retail Property Performance & Expectations

The Conversation: Insights from Jim Costello Regarding Navigating the Real Estate Landscape

In the ever-evolving landscape of commercial real estate, understanding the nuances of various property types and market trends is essential for investors, developers, and industry professionals alike. Recently, on America’s Commercial Real Estate Show, show host Michael sat down with Jim Costello, Executive Director at MSCI Research (Morgan Stanley Capital International Research), to delve into the current state of commercial real estate, with a particular focus on often-misunderstood retail properties.

Discussions include why retail property continues to thrive despite misconceptions and persistent “doom and gloom” headlines, data trends for retail performance, transaction volume, and cap rates, and some tips for investors and property managers in the retail real estate space. The discussion is about the landscape of retail commercial real estate spanning the entire United States. Thus, observations may be less pertinent or even not applicable to such properties in Miami or other South Florida locales.

Changing Perceptions and Market Realities

The conversation kicked off with a discussion about the prevailing perceptions in the commercial real estate sector. Costello addressed the headlines painting a bleak picture, especially concerning office spaces, which historically have been significant components of commercial real estate investment. He highlighted the drastic price declines in CBD (central business district) offices, citing a cumulative 39% decrease from July 2022 to January 2024. However, he cautioned against a blanket assumption that all sectors are experiencing similar challenges.

Costello emphasized the need to recognize the diversity within the commercial real estate market. While CBD offices face fundamental changes in tenant usage patterns, other sectors such as retail and suburban offices present different dynamics. Retail, in particular, has seen milder price declines compared to CBD offices, with a 3% decrease over the past year.

Retail Resilience and Transaction Trends

Despite concerns about the impact of e-commerce and shifting consumer behaviors, Costello highlighted the resilience of retail properties. He noted that while certain retail centers may struggle, those in the right locations with suitable management and tenant profiles continue to thrive. Additionally, he discussed transaction trends, noting a recent uptick in deal activity, particularly driven by private capital investors.

Costello acknowledged that while institutional investors have been cautious, there are indications of potential shifts in the market. As transaction volumes fluctuate and interest rates remain a key consideration, the outlook for retail real estate remains nuanced.

Cap Rate Dynamics and Future Projections

One of the key metrics discussed was capitalization rates (cap rates), which have seen a moderate increase in response to changing market conditions. Costello noted that while cap rates are on the rise, the pace of increase is moderating, indicating a potential stabilization in pricing.

Looking ahead, Costello highlighted the importance of monitoring interest rate movements and their impact on investor sentiment and decision-making. While uncertainty may lead to delays in transactions, there remains optimism regarding the resilience of retail real estate, especially in the context of in-person consumer spending and the gradual return to normalcy post-pandemic.

Key Takeaways and Closing Thoughts

In conclusion, Costello emphasized the importance of a nuanced approach to understanding commercial real estate markets. While certain segments may face challenges, others continue to present opportunities for savvy investors. As the industry navigates through economic uncertainties and evolving consumer trends, staying informed and adaptable remains paramount.

The conversation between the host and Jim Costello provided valuable insights into the current state of commercial real estate, particularly within the retail sector. As stakeholders assess opportunities and risks in the market, Costello’s expertise offers guidance for making informed decisions in an ever-changing landscape.

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March 18, 2024

Miami Commercial Real Estate News March 13, 2024: Miami to Aventura Train Gets Fed Funding Recommendation; North Miami Beach Mall Trades for $46M; More…

Pre-Application Filed For 280-Unit Multifamily Tower Near Arsht Center

A pre-application was filed with Miami-Dade planners yesterday for a downtown Miami residential tower. The building is being proposed under the county’s Rapid Transit Zone zoning code. The new tower is planned to rise 26 stories, and will be a multi-family residential building, according to a letter from the developer’s representative. Plans for the tower include 280 dwelling units…

Developers Plan 2025 Groundbreaking For Downtown Miami Riverbridge Supertall Tower

The developer of the three-tower Miami Riverbridge megaproject has revealed details on when they plan to obtain a construction permit and break ground. The first phase of the project will include an 87-story (1,044 feet) supertall tower and another 62-story (734 feet) tower attached by skybridge. Representatives of the developer told the Miami River Commission that they anticipate…

Here’s How Many Passengers Are Taking Tri-Rail’s New Downtown Miami Train Service

Tri-Rail has released the first ridership numbers for its new train service to MiamiCentral. A total of 300 passengers per day are now using the service, an increase from the 100 per day that were using it following a January 13 launch. A change of train is required for passengers travelling to or from MiamiCentral, since the downtown Miami station has stricter emission standards…

856 Apartments Planned At Earlington Heights Metrorail Station, Designed By Arquitectonica

Plans have just been filed with Miami-Dade County for a large residential complex at the Earlington Heights Metrorail station. In a letter, a representative of the developer said the residences would be workforce multifamily. Two 15-story towers are planned on property currently occupied by bus bays. Earlington Metro, LLC is developing the property in cooperation…

Alirio Torrealba’s MG Developer Tops Off 559-Unit ‘Metro Parc’ Apartments Hialeah

MG Developer, led by CEO and Founder Alirio Torrealba, has officially completed the topping off of Metro Parc, marking MG’s first transit-oriented multifamily community in the City of Hialeah and the tallest residential building in the City of Progress. Located between 955 East 25th Street and 980 East 26th Street, this 10-story building will offer 559 units. As a mixed-use…

MG Developer Tops Off 559-Unit Metro Parc Apartment Development in Hialeah, Florida

MG Developer has completed the vertical construction of Metro Parc, a 559-unit transit-oriented apartment community located in Hialeah, approximately 13 miles outside Miami. Upon completion, the two-tower building will feature residences with two bedrooms and two bathrooms ranging from 500 to 800 square feet. Amenities at the community will include coworking space…

North Miami Beach’s Mall at 163rd Street sells for $46M

Four companies teamed up to buy North Miami Beach’s ailing Mall at 163rd Street for $46 million, The Real Deal has learned. Taillard Capital, Tuesday Properties, Ark Ventures and Strategic Capital Alliance acquired the 24-acre retail site at 1205 Northeast 163rd Street, said Matt Press, a principal with Tuesday Properties. The joint venture “will ultimately redevelop the property…”

Rock on? Rilea launches sales of rock ‘n’ roll-themed condos in Wynwood

Rilea Group is hoping to tap into buyers’ rock ‘n’ roll energy with its latest condo project, where buyers and residents can drive a fleet of Harley-Davidson motorcycles and relax in a vinyl record lounge. The Miami-based firm is launching sales of a short-term rental-friendly project in Wynwood called The Rider at Wynwood, according to Rilea President Diego Ojeda. Ojeda said he even…

Abingdon Square lists Wynwood blocklong dev site for $31M

A 450-foot tall building in Wynwood? Abingdon Square Partners is dangling that possibility to incentivize a buyer for a blocklong development site listed for $31 million. New York-based Abingdon Square is telling prospective buyers that a 0.7-acre assemblage at 2200 and 2230 Northwest Second Avenue and 224 Northwest 22nd Terrace could potentially accommodate a skyscraper…

Icon Padel Aventura Proposed Atop Parking Garage at 18851 NE 29th Avenue

Pickleball isn’t the only popular sport emerging in South Florida. Icon Padel Aventura could soon bring additional padel courts to the region. Proposed by local developer Paddle Park Aventura LLC, the complex would comprise seven courts and a 1,325-square-foot clubhouse. The clubhouse would offer a pro shop, juice bar, warmup area, showers, and lounge. Icon Padel…

Ytech Reaches Sales Milestone For The Residences At 1428 Brickell Project While Securing $104 Million In Financing.

Ytech has surpassed significant financial and sales milestones for The Residences at 1428 Brickell, securing $104 million in financing and exceeding 40% in sales within a year. Designed by Arquitectonica, with interiors by ACPV Architects and landscaping by Arquitectonica GEO, this 70-story, 860-foot-tall development positioned at one of Brickell Avenue’s most coveted locations…

The Residences at 1428 Brickell Passes 40% Sales Mark, Secures Financing

Developer Ytech said it has hit sales and financing milestones at its planned 70-story Brickell tower. More than 40% of The Residences at 1428 Brickell has been sold within a year, according to the announcement. Ytech has now secured $104 million in financing. That includes a $78 million refinancing of a first mortgage at 1428 Brickell Avenue facilitated by Linkvest Capital, replacing…

Ytech Secures $104 Million In Financing For 70-Story ‘The Residences at 1428 Brickell’ In Miami

Miami real estate developer Ytech has secured $104 million in financing for The Residences at 1428 Brickell, a 70-story residential building planned for 1428 Brickell Avenue in the heart of Miami’s Brickell Financial District. Designed by Arquitectonica, with interiors by ACPV Architects and landscaping by Arquitectonica GEO, this 861-foot-tall project has already surpassed…

Ytech scores financing for 1428 Brickell condo tower, historic properties

Developer Yamal Yidios’ Ytech secured $104 million in financing for the planned 1428 Brickell condo tower and adjacent historic properties. The new debt includes a $78 million refinancing from Linkvest Capital of the original $20 million acquisition loan for the property at 1428 Brickell Avenue. It also includes $26 million in first mortgages from Banesco for Ytech’s…

Harry Macklowe wants to sell Miami development site near Dadeland Mall

New York developer Harry Macklowe is looking to sell one of his development sites in Miami, The Real Deal has learned. The 1.7-acre sliver of land, fronting U.S. 1 between Simon Property Group’s Dadeland Mall and Jeff Berkowitz’s Dadeland Station, marked Macklowe’s first major purchase in South Florida when he acquired it about two years ago. The property is approved for 770…

Biden budget $263.7M for Miami-Dade Northeast Corridor Rapid Transit Project

President Joseph Biden has recommended in his 2025 budget $263.7 million to help fund the Northeast Corridor Rapid Transit Project, one of six legs in Miami-Dade County’s vaunted Smart Program to develop new rapid mass transit to relieve traffic congestion. The Northeast Corridor rail line is to provide commuter rail 19 hours a day and seven days a week starting in…

Bal Harbour gives final approval to rules that could hamper Whitman’s Live Local Act project

Bal Harbour gave final approval to development regulations that could foil Whitman Family Development’s proposed Live Local Act project. Village council members unanimously passed the ordinances last week, after they preliminarily approved the regulations last month. The vote marks the latest in the heated battle between the village and Whitman Family Development…

Miami-Aventura Train Service Gets Key Federal Funding Recommendation

The proposed Northeast Corridor commuter rail line received a major boost yesterday when the Biden administration announced it is recommending federal support for the project. The feds would fund $263.7 million. The total budget is $538 million, with Miami-Dade and FDOT already committed to fund the remainder ($171m from the county, and $104m from FDOT).

County may yank Miami’s power to OK mega-billboards downtown

Miami-Dade is moving to yank from the City of Miami the power to erect huge billboards that have been contentious among downtown residents. Meanwhile, the city today (3/14) is to act on its sign ordinance created under powers the county seeks to rescind. The county last week passed 11-0 a preliminary vote to “reassert county jurisdiction over signage within the City of Miami…

Billboards Fight Pits PAMM and Arsht Center Against Residents

For his first major initiative as Miami’s District 2 commissioner, Damian Pardo is on a mission to short-circuit plans by the Pérez Art Museum Miami (PAMM) and the Adrienne Arsht Center of the Performing Arts to erect 10-story LED billboards facing Interstate 395. He’s one step closer to accomplishing his goal. Miami City Commissioner Damian Pardo has made it his…

City seeks funds for Miami Marine Stadium upgrades

Miami is seeking over $2 million from the state to reimburse itself for ongoing improvements at city-owned waterfront properties including Morningside Park and the Miami Marine Stadium. Today (3/14), the Miami City Commission is to vote on resolutions that would authorize the city manager to apply for six grants to the Florida Inland Navigation District (FIND)…

As big banks swallow smaller ones, South Florida choices dwindle

For years, an ongoing cycle has been seen of small banks being acquired or merging with other banks. Today, there seems to be a slowdown. “There are very few small community banks left to be acquired,” said Bowman Brown, a partner at Shutts and Bowen LLP who specializes in banking matters. “The number has diminished very significantly, so that there just aren’t that…

Miami may swap taller MiMo buildings for public amenities

To remedy a parking shortage in the Biscayne Boulevard historic district, the City of Miami is considering increasing building height as an incentive for developers in exchange for infrastructure improvements. The Miami City Commission is to hear the first reading of an ordinance today (3/14) that would permit new building projects an additional 20 feet above the maximum height…

234-Unit ‘Trinity Sierra Bay’ Proposed for 11770 SW 214th Street in Miami

A South Florida-based developer hopes to get approval for Trinity Sierra Bay, an age-restricted housing development in Miami’s Goulds neighborhood. The complex would offer 234 apartments split between two buildings, measuring five and seven stories above grade. Units would span about 600 to 800 square feet, offering one-bedroom and two-bedroom floorplans. The South Florida…

Miami’s Office Market Was Red-Hot. Now Its Tallest Planned Tower One Brickell City Centre Can’t Fill Its Space

The challenges swirling around a skyscraper known as One Brickell City Centre, which at around 1,000-feet high would be Miami’s tallest corporate tower, show how the city’s once-sizzling office market is starting to cool. New York developer Related Cos. and Swire Properties, an international development firm founded by the British Swire family, are struggling to find an anchor tenant…

2600 Biscayne, ‘One Of Most Pre-Leased Office Buildings In Miami’s History,’ Gets $181M Financing

Developer Oak Row Equities has obtained a $181m construction loan to build the 2600 Biscayne tower, with strong pre-leasing activity reported. The developer said in a statement that it is one of the most pre-leased new construction office buildings in Miami’s history. More than 50% of the proposed 187,000 square feet of office and retail was leased before breaking ground.

Oak Row scores $181M construction loan for mixed-use Edgewater tower

Oak Row Equities secured a $181 million construction loan for a planned mixed-use apartment and office project in Miami’s Edgewater neighborhood. The financing, from Bank OZK, adds to the more than $2 billion in construction loans that have closed in recent months in South Florida, despite the challenging lending environment. New York and Miami-based Oak Row…

Report: Swire & Related Restructuring One Brickell City Centre Deal

The deal to build the One Brickell City Centre near-supertall is being restructured, according to the WSJ. A demolition ceremony was held at the site in May 2023, and plans for the 59-story, 977-foot tower were submitted to Miami’s Urban Development Review Board in June. Miami Building Department records show that a demolition permit was issued for one of the older buildings…

Citadel Eyes Luxury Hotel Atop $1B Miami Headquarters

Citadel isn’t planning on just hosting its hedge fund staffers at its planned headquarters on the waters of Biscayne Bay. The company is planning to include a luxury hotel on the upper floors of its upcoming $1B headquarters project, The Wall Street Journal reports. The Ken Griffin-led firm has tapped Foster + Partners to design the tower, which is expected to be one of the tallest…

Hyatt to Renovate, Rebrand 354-Room Hotel in Miami Beach

Hyatt Hotels Corp. plans to renovate The Confidante Miami Beach, a 354-room hotel that comprises three towers overlooking the Atlantic Ocean. The hotel giant is rebranding The Confidante as Andaz Miami Beach and plans to debut the overhauled hotel in the fourth quarter. The hotel’s owner, Sunstone Hotel Investors Inc., will suspend operations from late March through the end of…

Another: Worldcenter Tower With 606 Units Breaks Ground

Construction is now officially underway at 600 Miami Worldcenter. A groundbreaking ceremony for the 32-story tower was held at the project site on Friday, according to social media posts. Merrimac Ventures and Aria Development Group recently obtained a $95 million construction loan for the new tower. The condos are 100% sold, with Merrimac’s Nitin Motwani saying it was…

Colonnade pays $76M for Douglas Entrance in Coral Gables

Colonnade Properties scooped up Douglas Entrance in Coral Gables for $76 million, a nearly 25 percent discount off its previous sale price a decade ago. An affiliate of New York-based Colonnade, led by President Joseph Sambuco, acquired the five-building office park at 800 Douglas Road, records and Vizzda show. The deal breaks down to $160 a square foot for the 474,109-square-foot…

Report: Apple Store Is Coming To Miami Worldcenter

An Apple Store is coming to Miami Worldcenter, according to Commercial Observer. The report said a lease agreement has been filed with Miami-Dade. Two people involved with Worldcenter are also said to have confirmed it. The Worldcenter Apple store will be in a standalone building next to Worldcenter’s Jewel Box building. Renderings of an Apple Store on the site were…

Post-Messi, Global Interest for South Florida Multifamily Is Skyrocketing

The arrival of Argentine soccer sensation Lionel Messi to South Florida last summer isn’t just about more thrilling matches on the field—it’s also stirring up the region’s real estate landscape. The buzz surrounding Messi’s move to Miami continues, and it’s evident that his presence transcends the sports scene. Alongside other major events like Formula 1 and Art Basel, the upcoming…

Brickell’s Tallest Office Building 830 Brickell Nears TCO

830 Brickell is expected to receive its TCO by the end of the first quarter or the beginning of the second quarter, according to Miami Today. Tenants have started to build out their offices inside the building, so you’ll soon be seeing hundreds more office workers in the area around Brickell City Centre The 55-story tower stands at 724 feet, making it the tallest office building in Brickell.

Bye Staples, hello Kia: Johnson Automotive pays $25M for Edgewater dev site

Auto magnate Norman Braman is getting some new competition in his neighborhood. Raleigh, North Carolina-based Johnson Automotive Dealership Group paid $25 million for a development site at 2121 Biscayne Boulevard in Miami’s Edgewater that is currently home to a Staples store, records and Vizzda show. Johnson Automotive plans to convert the property into…

Apple store coming to Miami Worldcenter mixed-use complex

Apple will open at Miami Worldcenter, confirming months of speculation that the tech giant is on tap at the mixed-use megadevelopment. The store leased a one-story, 15,000-square-foot building that is under construction on a 0.4-acre lot at 725 Northeast First Avenue, according to records. An entity tied to Miami Worldcenter developers Nitin Motwani and Art Falcone filed…

Crescent Heights Announces Commencement of ‘Track & Field’ Mural at Edgewater’s Forma Miami

Crescent Heights has announced the commencement of an expansive art project in the heart of Miami’s Edgewater neighborhood. Renowned artist Arturo Herrera was commissioned to create a 9,350-square-foot mural named Track & Field, which will grace the east podium façade of Forma Miami, a 39-story, 588-unit residential tower designed by Arquitectonica with ODP…

First Look: Two Roads Development Unveils Interiors Designed By Studio Munge For EDITION Residences, Miami Edgewater

Two Roads Development has revealed a first look at the interiors and amenity spaces at the EDITION Residences, Miami Edgewater (The Residences) – the global hotel brand’s first independent collection of fully serviced luxury condominium residences, located in Miami’s Edgewater neighborhood. Designed by architect Bernardo Fort-Brescia of Arquitectonica with interiors imagined…

Buyer In Contract For Miami’s Most Expensive Home Ever, a Shore Club Penthouse at Over $120M

A South Beach penthouse is in contract for over $120 million, according to the WSJ. The condo is being built in a new tower at the Shore Club and includes around 10,500 square feet of interior space. Robert A.M. Stern Architects is designing the new 18-story tower, known as the Shoreclub Private Collection. The record price for a Miami condo was set by Ken Griffin, who paid $60m…

Shore Club PH in contract for over $120M, setting a condo price record in Miami-Dade

A penthouse at the planned Shore Club project in Miami Beach is reportedly in contract for more than $120 million, a sale that would set a price record for condos in Miami-Dade County — if and when it closes. Witkoff and Monroe Capital are developing the Shore Club Private Collection, an Auberge Resorts Collection-branded condo and hotel project at 1901 Collins Avenue.

Riviera Horizons And Pagani Team Up For The World’s First ‘Pagani Residences’ in North Bay Village

Miami-based developer Riviera Horizons and Italian Hypercar brand Pagani have announced the world’s first Pagani Residences, a boutique luxury residential building set to be completed in 2027 at 7940 West Drive in Miami’s North Bay Village. Designed by Revuelta Architecture International, with interiors curated by Pagani Arte – the newly established, Made in Italy interior…

Madrid-Based Azora Acquires Greyhound-Leased Industrial Outdoor Storage Facility Near Miami International Airport for $12.8M

Azora, a private equity manager based in Madrid, has purchased an industrial outdoor storage facility located on a 2.6-acre site in Miami. The undisclosed seller sold the property, which features a bus maintenance facility, for $12.8 million. Situated near Miami International Airport, the facility was delivered in 2016 as a build-to-suit for Greyhound Lines, which will continue to use…

Upper East Side Residents Haggle Over MiMo

The city of Miami is addressing community concerns on a proposed height increase in the MiMo Biscayne Boulevard Historic District by proffering somewhat of a compromise, one that’s been met with varying levels of satisfaction. As reported in last month’s Biscayne Times cover story, city manager Art Noriega applied for a resolution to be passed at the Jan. 9 Historic and Environmental…

Renaissance on Main Highway: Coconut Grove Is Evolving, but Isn’t Changing

Locals know Coconut Grove as a historic neighborhood of lush greenery, unique restaurants, and eclectic shops, unlike any other part of Miami-Dade County. It is also the oldest continuously inhabited neighborhood in Miami, having been established in 1873. Although the neighborhood is something of a nexus of the city proper, it has long retained an aura of separateness, thanks to its…

Doral Industrial Space Leased to GSO Aviation

“The versatility and attributes of the property matched well with the needs of the tenant. The building can provide heavy power, fire suppression systems, ample parking, and abundant workspace for employees. This space gives the tenant what they need at a great rental rate of $21.50 PSF, NNN,” said Eckstein, Partner of NAI Miami | Fort Lauderdale. “The landlord, BRE Investment…”

Flatline: North Shore Medical Center on Life Support

Located at 1100 NW 95th St., North Shore Medical Center has been serving the diverse clientele of neighborhoods such as North Miami, Miami Shores, El Portal, Little River and the Upper East Side since 1953. It’s a staple in the community, one where generations of families have been born and sought care, creating somewhat of a legacy on the more than 29-acre lot of land.

Surfside pool deck had “severe distress” weeks before deadly collapse

Surfside found that three weeks before the tragedy, signs of “severe distress” were present in the pool deck. Photos of the pool deck prior to the collapse show cracks in planters, indicating structural issues, according to an update on the National Institute of Standards and Technology’s investigation. NIST found a history of water seepage into the garage, which sat below…

Regency Development launches sales of third Bay Harbor Islands condo project

Regency Development Group is launching sales of its third Bay Harbor Islands condo project, the La Maré Bay Collection. The Chicago-based developer, led by Alex Troyanovsky, Michael Troyanovsky and Igor Michin, announced plans to build an eight-story, nine-unit waterfront condominium at 10301 East Bay Harbor Drive, with prices ranging from $4 million to $9 million…

Rishi Kapoor wants authority to sell Location Ventures HQ himself

Rishi Kapoor believes he can sell Location Ventures’ headquarters for more money than the offer that is currently on the table. Last week, the court-appointed receiver managing Coral Gables-based Location Ventures revealed she had negotiated a settlement to sell the company’s office building at 299 Alhambra Circle to Stephen Bittel’s Terranova Corporation via a pending…

High interest rates, rising costs and missing equity are fueling the rush of new Miami dev site listings

Nearly two dozen development sites across Miami-Dade County have hit the market since December. Though the condo market is still booming*, and apartment builders continue to forge ahead with projects, some are ditching their plans and listing sites for sale as the market begins to correct itself. What’s driving that? It’s a combination of high interest rates, rising construction…

Lease roundup: Jetset Pilates opening at Midtown Doral, Presidente Supermarkets in Cutler Bay

Century Town Center mixed-use complex in Midtown Doral scored two tenants. Jetset Pilates took 2,200 square feet, and Tropical Smoothie Cafe took 1,400 square feet at the development, which opened this year, according to a Century Town Center news release. The project is at 8175 Northwest 107 Avenue in Doral. The leases come on the heels of Rumble Boxing, My Salon Suite…

Video: The NW 54th Street Revival; History of Liberty City ~ Docu-Series, Ep. 1

In a heartfelt conversation that spans generations and experiences, a group of individuals reflects on the past, present, and future of Liberty City, a neighborhood in Miami known for its rich cultural heritage and struggles. Through their words, we see the evolution of a community, the challenges it has faced, and the hope for its revitalization. The dialogue begins with a poignant…

Miami Marine Park Owner Vows To Fight Eviction From County-Owned Site

The Miami Seaquarium has been evicted, but its owner doesn’t plan to leave. The operator of the 38-acre marine park on Virginia Key sent a letter Monday to the county mayor’s office saying it will fight the county’s plan to force it to close by April 21. The nine-page letter also pushes back against allegations of animal mistreatment and poorly maintained structures at the park.

Dogged By ‘Mistakes,’ $1.2M Fine, Lawsuits And A Short Seller, Miami-Based Hotel Chain Shakes Up Leadership

A Miami-based hotel operator was fined $1.2M by New York City last week for illegally operating short-term rentals in New York City for more than three years, but its potential troubles are far from over. LuxUrban Hotels, which bills itself as an “asset-light” hotel chain because it master leases hotel buildings rather than buying them, has been hit with several lawsuits from landlords…

Davie City Officials to Consider Soleste Reserve I and Soleste Reserve II Multifamily Developments

A South Florida-based developer hopes to get approval for two apartment complexes, named Soleste Reserve I and Soleste Reserve II. Combined, the two would bring more than 600 residential units to Davie, Florida. Davie’s Planning & Zoning Board is set to hear the proposal for Soleste Reserve I next week. If approved, the venture would measure eight stories above grade…

The Estate Company plans pair of multifamily projects with 663 units in Davie

Estate Companies plans a pair of multifamily projects with a total of 663 units in Davie, marking developers’ continued bet on South Florida’s rental market. The South Miami-based firm wants to build the eight-story, 353-unit Soleste Reserve I building on 2.5 acres at 5079-5081 Southwest 48th Street, and the eight-story, 310-unit Soleste Reserve II building on an adjacent 2.6 acres…

Stiles pays $28M for Pompano Beach shopping center with future Publix

Stiles Corporation picked up a Pompano Beach shopping center that will soon be anchored by a Publix store. An affiliate of Fort Lauderdale-based Stiles paid $27.5 million for Shopper’s Haven at 3301 and 3371 North Federal Highway, and 3500 Northeast 16th Terrace, records show. Stiles, led by CEO Kenneth Stiles, also obtained a $36.4 million mortgage…

Miami-Based Developer Rez Se Land Proposes the Forest Apartments at 787 S State Rd 7 in Margate

Rez Se Land LLC, a Miami-based developer, has proposed the Forest Apartments, a 300-unit residential complex in Margate, FL. Homes would measure about 740 square feet to 1,160 square feet each, with the residences themselves divided amongst five five-story buildings on a 7.14-acre plot. They would comprise one-bedroom to three-bedroom floorplans. Communal amenities…

Developers Get Approval For Second Tower At Diplomat Landing In Hollywood, FL

Developers Related Group and BH Group have received approval for the second of two planned towers at Diplomat Landing, a mixed-use development planned for to enhance the Hollywood area. Situated at 3451 to 3690 South Ocean Drive, this 42-story tower is designed by Miami Lakes-based Cohen Freedman Encinosa & Associates, with landscape architecture by Witkin Hults + Partners…

Related, BH win approval for 500-key hotel across from Diplomat Beach Resort in Hollywood

Related Group and BH Group won approval to build a 500-key hotel on a site across the street from the Diplomat Beach Resort in Hollywood. Coconut Grove-based Related and Aventura-based BH paid $21.5 million in December to acquire the 4.4-acre site at 3451-3690 South Ocean Drive from the owners of the Diplomat hotel, Honolulu-based Trinity Investments…

Developers advance 22-story condo project in downtown Hollywood

A development group advanced plans for a 22-story, 248-unit condo project called Star Hollywood just north of Young Circle in downtown Hollywood. Prices for the condos would start in the $400,000s, Miami-based developer Alejandro Ensinck told The Real Deal. Ensinck, who owns the 1.2-acre development site on North Federal Highway through a limited liability…

Tie-dye apparel execs scoop up Coral Springs warehouse

Elion Partners sold a warehouse in Coral Springs, as South Florida industrial deals continue despite elevated interest rates. Tie-dye apparel company executives Mordechai and Shlomo Hasson, through an affiliate, bought the building at 11705-11713 Northwest 39th Street from North Miami Beach-based Elion Partners, according to records and real estate database Vizzda.

Pantzer buys 245-unit rental complex in West Palm Beach for $84M

Pantzer Properties bought a 245-unit apartment complex in West Palm Beach for $83.5 million, marking the first major multifamily deal this year in South Florida. The New York-based firm purchased the property at 7130 Okeechobee Boulevard consisting of six four-story apartment buildings, one clubhouse and three one-story garages from Cottonwood Residential, according…

CarMax pays $16M for Jupiter site slated for automobile auction lot

CarMax picked up 24 acres of vacant industrial land in Jupiter for $16 million. An affiliate of CarMax, a Richmond, Virginia-based used automobile dealer led by CEO William Nash, acquired the property at 15920 and 15959 Corporate Road North, records and Vizzda show. The seller, an affiliate of Fairfield, New Jersey-based Woodmont Properties, made a significant gain on its…

Video: RealPage Director of Research and Analysis Provides Multifamily Market Update & Forecast

The Conversation: Navigating the Real Estate Landscape: Insights from Industry Experts In the realm of commercial real estate, staying informed about market trends, performance metrics, and investment opportunities is essential for both seasoned professionals and newcomers alike. Recently, a conversation on “America’s Commercial Real Estate Show” delved into the…”

The Fed: Has the U.S. Economy Transitioned to a Higher Long-run Real Interest Rate Regime?

In a September 2015 speech, then-Minneapolis Fed President Narayana Kocherlakota argued that the long-run financial market real interest rate had declined sharply relative to levels that prevailed from 2004 to 2011. He argued that the decline in the long-run real market interest rate likely reflected both a decline in the long-run neutral real interest rate…

Redfin Reports USA Multifamily Asking Rents Climb 2% in February, Biggest Gain in Over a Year

The median U.S. asking rent rose 2.2% year over year to $1,981 in February, the largest gain since January 2023, and increased 0.9% from a month earlier. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Asking rents hit a low point last February, which is one reason for the sizable year-over-year increase this February.

Industrial Property Nationally Expected to Remain Resilient This Year

Expect continued resilience but on a muted scale for industrial assets in 2024, according to Newmark, which said in a recent report that economic uncertainty continues to exert pressure on consumers, developers, occupiers, and investors. “Unpredictability in the global supply chain will drive long-term demand for industrial space due to the need for diversified sourcing and ports…”

Amazon To Roll Out Smaller-Format Whole Foods Concept

The next locations of the Amazon-owned grocery store Whole Foods will be smaller and have more streamlined offerings in an attempt to capture business from urban shoppers looking to get in and out of the store quickly. Called Whole Foods Daily Shop, the stores will measure just 7K SF to 14K SF and won’t feature self-serve buffets or meat counters. Shoppers will find a…

HUD Secretary Marcia Fudge To Resign

After three years leading the Biden administration’s housing efforts, Marcia Fudge, secretary of the Department of Housing and Urban Development, is stepping down. Fudge announced the resignation, which is to take effect March 22, on Monday, eight months before the 2024 presidential election. She was the first Black woman to lead the department in four decades.

Advantages of digital banking platforms for commercial real estate

While payments and treasury services span multiple industries, commercial real estate has unique considerations, including managing liquidity, sending payments, receiving rent and complex account structures. “Commercial real estate organizations of all sizes can benefit from JPMorgan Chase’s digital banking platforms. We’re focused on industry-specific issues—and solutions—to help…

JP Morgan on serving vulnerable populations in affordable housing

The affordable housing crisis impacts countless families and individuals across the nation—and it disproportionally affects the most vulnerable populations. Many populations face unique, complex challenges related to their health, circumstances or trauma, including: Seniors; Youth transitioning out of foster care; Farmworkers; Individuals with special needs, including disabilities…

MSCI’s Jim Costello: Not Every Bank Is at Risk from CRE Lending

Commercial-property prices are falling, and lenders, investors and especially regulators are fearful of the impact on the broader financial system. The risks in the system today are not the same as those seen during other crisis events, however. Making the assumption that all banks will face the same challenges as in other downturns may lead one down a path to bad decisions. In this paper…

‘You Can Imagine The Pressure’: Commercial Appraisers At The Center of CRE’s Price Reckoning Nationally

Commercial appraisers find their work at the center of one of the largest real estate stories of the moment: the fate of the office market. Their decisions of value will have enormous sway on when properties sell, how and when transaction volume restarts and even who controls key assets. “There’s a lot of money and control rights at stake, all depending upon the appraiser’s…

‘This Is A Big Deal’: Low Income Housing Tax Credit (LIHTC) Could See Most Significant Reform In Decades

If approved as written, the bill would reinstate a 12.5% boost for the 9% version of the LIHTC that was implemented in 2018 but expired in 2021. The bill would allow states to allocate more credits for affordable housing projects, effective for taxable years beginning after Dec. 31, 2022. It would also lower the threshold of 4% state and local tax-exempt bond financing a project has to…

JP Morgan: Global inflation forecast: Will prices come down in 2024?

J.P. Morgan Research forecasts global core inflation will remain sticky at around 3% in 2024. In the U.S., inflation has cooled significantly but still remains above target. Against a challenging growth backdrop, the road to lower inflation also looks bumpy in the U.K. and the Euro zone. In China, deflationary pressures will likely ease in 2024, with headline CPI inflation trending up modestly…

Florida legislature passes bill allowing demo of aging coastal buildings

Florida lawmakers approved a controversial bill that would make it easier to demolish some coastal buildings, many of which are aging, and redevelop the sites. The proposed legislation pitted property owners and developers against preservationists who decried the potential demolition of structures that embody the old-Florida character, including buildings that have…

Newgard hires VP of development, project manager

South Florida real estate firms keep hiring. Harvey Hernandez’s Newgard Development Group hired Ivan Heredia as vice president of development, according to a press release. Heredia will oversee Newgard’s planned Natiivo Fort Lauderdale, a 40-story tower with 384 fully-furnished units designed for short-term rental. Miami-based Newgard also hired Mercedes Egana as…

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March 13, 2024

Video: RealPage Director of Research and Analysis Provides Multifamily Market Update & Forecast

The Conversation: Navigating the Real Estate Landscape: Insights from Industry Experts

In the realm of commercial real estate, staying informed about market trends, performance metrics, and investment opportunities is essential for both seasoned professionals and newcomers alike. Recently, a conversation on “America’s Commercial Real Estate Show” delved into the multifamily and student housing sectors, providing valuable insights into their current status and future prospects. Let’s explore the key points discussed in this enlightening dialogue.

The show host welcomed Carl Whitaker, Director of Research and Analysis at RealPage, to share his expertise on these dynamic real estate segments. The conversation began with a focus on multifamily housing, a sector that has seen considerable growth and attention in recent years. The essence of this conversation revolves around commercial real estate across the United States. Given this, recognize that its observations may be less pertinent or even entirely irrelevant to commercial properties located in Miami.

Reflecting on the performance of multifamily properties in 2023, Carl noted a moderation in rent growth, signaling a correction rather than a drastic decline. Despite challenges, such as a slowdown in transaction volume and fluctuations in occupancy rates, there are positive indicators for the sector. Demand for multifamily housing remains robust, particularly in regions like the Midwest and Northeast, where steady growth has been observed.

One noteworthy trend highlighted by Carl is the resilience of Class A properties in the face of increased supply. Despite facing the brunt of new developments, Class A rents have shown relatively stronger growth compared to other segments. This phenomenon underscores the nuanced dynamics of the multifamily market, where factors like supply levels and demographic trends play significant roles.

Looking ahead, Carl emphasized the importance of monitoring transaction volumes, which are expected to rebound as investor confidence strengthens. While interest rate fluctuations may influence market sentiment, the underlying demand for multifamily assets remains strong, suggesting continued opportunities for investment and growth.

Transitioning to the student housing sector, Carl provided insights into its performance and investment outlook. Contrary to some expectations, student housing has exhibited resilience, with record pre-leasing rates for the upcoming semester. This resilience can be attributed to factors such as strong enrollment at prestigious universities and a slowdown in new supply.

Similar to multifamily housing, student housing is poised for increased investment activity in the coming years. As market conditions stabilize and investor confidence grows, transaction volumes are expected to rise, presenting opportunities for both buyers and sellers.

The conversation continued…

In this short second video, the discussion continued with the following key points made by Carl:

1. Performance and Transaction Volumes: The performance of multifamily properties is stabilizing or potentially increasing. This is leading to increased transaction volumes due to high demand for investing in apartments.

2. Competition and Pricing: With increased liquidity and more investors targeting multifamily properties, there’s also increased competition. This could lead to significant increases in price per unit and may require sweeter deal packages to stay competitive.

3. Long-term Outlook: Despite increased competition, the overall outlook for multifamily properties is positive. The demand curve for multifamily properties looks favorable for the long term.

4. Advice for Sellers: Sellers are encouraged to take advantage of the current market conditions by contacting the speaker’s organization for assistance in getting multiple competing bids. There’s still a lot of capital interested in investing in multifamily properties.

In conclusion, the conversation underscored the importance of staying attuned to market trends and emerging opportunities in the multifamily and student housing sectors. Overall, the speakers seem optimistic about the multifamily sector but acknowledge the challenges posed by increased competition. While challenges exist, such as supply fluctuations and interest rate uncertainties, the overall outlook remains positive. By leveraging insights from industry experts like Carl Whitaker, real estate professionals can navigate the complex landscape with confidence, seizing opportunities for success and growth.

March 11, 2024

Video: The NW 54th Street Revival; History of Liberty City ~ Docu-Series, Ep. 1

Reviving Liberty City: A Conversation on Community, History, and Renewal

In a heartfelt conversation that spans generations and experiences, a group of individuals reflects on the past, present, and future of Liberty City, a neighborhood in Miami known for its rich cultural heritage and struggles. Through their words, we see the evolution of a community, the challenges it has faced, and the hope for its revitalization.

The dialogue begins with a poignant reflection on the significance of timing. One speaker encapsulates the essence by stating, “Timing is always better than time, and nothing happens before it’s time.” This sentiment sets the tone for a discussion that delves into the historical context of Liberty City, from its inception as a vision of promise to its present-day challenges.

One participant shares memories of growing up in Liberty Square during the 1960s, highlighting the initial optimism surrounding the community’s development. Families were relocated from the Overtown area to new housing, symbolizing a fresh start and the pursuit of the American Dream. However, as time passed, disparities emerged, and the community’s vibrancy began to fade.

Another voice chimes in, reminiscing about a time when Liberty City thrived with businesses, schools, and entertainment venues. The neighborhood was a hub of activity, attracting renowned artists like Aretha Franklin and James Brown. It was a self-sustaining community where dollars circulated, fostering economic stability and empowerment.

Yet, amidst this backdrop of resilience and vibrancy, there arose a moment of reckoning. The speaker recalls witnessing the uprising not as a riot but as a rebellion—a response to systemic injustices and inequalities. The aftermath left scars, with stores and homes burned, but it also ignited a call for change, a demand for justice that resonates to this day.

As the conversation shifts to the present, there is a collective recognition of the challenges facing Liberty City. The neighborhood has been marred by misconceptions and neglect, perpetuating a narrative of violence and struggle. However, amidst the adversity, there is a glimmer of hope—a vision for revival.

Enter the Northwest 54th Street Revival project, a testament to the community’s resilience and determination to reclaim its narrative. Spearheaded by passionate individuals committed to making a difference, the project seeks to breathe new life into Liberty City. It’s not just about redevelopment; it’s about reshaping the cultural fabric of the community, reclaiming its identity, and rewriting its future.

The vision for the Northwest 54th Street Revival is ambitious yet deeply rooted in the community’s needs. From addressing housing shortages to creating opportunities for economic empowerment, the project aims to uplift residents of all ages and backgrounds. It’s about building bridges, fostering inclusivity, and celebrating the diversity that defines Liberty City.

At its core, the revival is a renewal of spirit—a collective awakening to the possibilities that lie ahead. It’s a call to action for residents to reclaim ownership of their narrative and shape the destiny of their community. As one participant aptly puts it, “If they can make a Wynwood, why can’t we make a 54th Street Revival?”

In conclusion, the conversation serves as a powerful testament to the resilience of the human spirit and the transformative power of community. Liberty City’s journey is one of struggle, triumph, and hope—a narrative that continues to unfold with each passing day. As the Northwest 54th Street Revival takes shape, it stands as a beacon of possibility—a symbol of what happens when passion, perseverance, and purpose converge in pursuit of a shared vision.

~

Investing in Liberty City Commercial Properties:

Liberty City is a neighborhood that lies principally in the city of Miami, with a small portion in Unincorporated Miami-Dade County. Zoning info for the city of Miami can be found here, and for Miami-Dade here. Liberty City covers an area that includes some or all of zip codes (each linked to its commercial property listings) 33127, 33142, 33147, and 33150. Commercial properties listed within these zip codes can be found here. A good portion of the Liberty City is in an Opportunity Zone, which offers tax benefits for investors.

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March 9, 2024

Miami Commercial Real Estate News March 6, 2024: 67-Story Mercedes-Benz Tower Planned; Brickell’s Tallest Breaks Ground; 112-Unit Live Local Act MF Proposed for Model City; More…

Developers Propose ‘River Haus’ for 123 N.E. 79th Street in Little River

Our sources have revealed an exciting venture proposed for Miami’s Little River neighborhood. River Haus, rising eight stories above grade, would comprise 218,546 square feet of new construction, offering 154 apartments. Homes will measure 505 square feet to 955 square feet each, with studios, one-bedroom, and two-bedroom floorplans available. Communal amenities include…

Miami-Dade dev site listings surge since December

Condo and multifamily development in South Florida is still booming, but signs of a market correction are appearing, as some builders are abandoning planned projects and listing their sites for sale. In the past three months, nearly two dozen development sites across Miami-Dade County have hit the market, as small and mid-tier builders trim their project pipelines. In some cases…

Inigo and Diego Ardid banking on Brickell office tower

Inigo and Diego Ardid sat at a conference table, looked at an aerial photo of their Ivy and Mint towers in Brickell and reflected on the dark days of the Great Recession. By the time Lehman Brothers went bankrupt in 2008, Key International, the Ardids’ family firm, had sold about half of the 504 condos at the completed Ivy and had not finished the interior buildout of the adjacent 530-unit…

Site Work Permit Filed At Robert A.M. Stern Architects’ St. Regis Residences In Brickell

A site work permit was applied for yesterday at the Robert A.M. Stern Architects’ St. Regis Residences tower in Brickell. The St. Regis tower is planned to rise 52 stories. The March 5 site work permit filing lists Coastal Construction as the contractor. A phased permit for full vertical construction of the new tower was applied for in January, with review underway. The master permit..

Dezer, Bentley Motors Break Ground on 62-Story Condo Tower in Sunny Isles Beach

A partnership between Dezer Development and luxury automobile company Bentley Motors has broken ground on Bentley Residences Miami, a 62-story condominium tower. Located at 18401 Collins Ave. in Sunny Isles Beach, the beachfront development will feature 216 condos, each with glass-covered, three- and four-car sky garages all made possible utilizing four car lifts…

Looking Into the Future: Behind Miami’s MIRAI MXU Project

The summer of 2024 will mark the groundbreaking of “the distant future” or MIRAI in Japanese. At 4218 NE Second Ave. in Miami, a mixed-use space comprising boutique luxury retail and office space will soon be taking shape, rising just three stories high. Three developers—Lionheart Capital, Leviathan Development and Well Duo—are working together to materialize…

Foster + Partners Designing ‘One Of The Tallest Towers In Miami’ For Citadel

Citadel’s new $1b headquarters tower in Brickell is being designed by Foster + Partners, according to the WSJ. Foster + Partners previously worked on the same property, designing residential towers for its previous owners before it was purchased by Citadel. The new Citadel tower will have a luxury hotel at the top, renderings show (the renderings have not been published).

Ken Griffin’s planned Citadel HQ tower in Brickell to include luxury hotel

Ken Griffin is advancing plans for a $1 billion headquarters tower for his Citadel and Citadel Securities in Miami’s Brickell. Architecture firm Foster + Partners is designing plans for one of the tallest towers in Miami that will include a high-end hotel on the top floors, while environmental testing on the site has started, The Wall Street Journal reported, citing renderings viewed by…

South Florida’s condo whisperer Edgardo Defortuna

Edgardo Defortuna sells the American dream. The 68-year-old developer and broker, who grew up in Argentina, holds the concept in high esteem, especially after his father was kidnapped for ransom in 1978, during a politically unstable time before Defortuna emigrated. Defortuna’s voice softens more than usual when recounting the ordeal. “It wasn’t a fun time…”

Dade Mayor To Propose $800M In Affordable Housing Bonds, None For Mass Transit

Miami-Dade Mayor Daniella Levine Cava wants to provide $800m in new funding for affordable housing, according to Bloomberg. Priority will be given for projects that increase urban density, the mayor said. The county will also look to redevelop its own properties with housing. A voter referendum on issuing bonds is expected in November. The $800m in funding will be part…

40-story Santander Tower to add Brickell Class A offices

A new 40-story Class A office building is to rise in Brickell offering exclusive tenant amenities including a private club, meeting facilities and fitness facilities. Services and Promotions Miami LLC plans to build the office building, Santander Tower, at 1401 Brickell Ave. The building now is the home of Santander Bank. The tower will have just under 1.5 million square feet of floor area…

Miami board approves Banco Santander’s proposed 40-story office tower in Brickell

Banco Santander scored approval for its planned 40-story office tower in Brickell. The Miami Urban Development Review Board voted on Wednesday in favor of the 1.5 million-square-foot project at 1401 Brickell Avenue in Miami. The project, called Santander Tower, would replace Banco Santander’s existing 14-story, 237,000-square-foot office building on the site. Designed by Handel…

Future of deteriorating Jackie Gleason Theater a tossup

The future of a dark and deteriorating Fillmore Miami Beach at Jackie Gleason Theater remains in doubt many months after the operator called on the city to tear it down and build anew. The venue has a deep-rooted and pivotal history for the city, but its condition has brought forth the possibility of renovating or replacing it. “We need the Jackie Gleason,” said Commissioner…

Polish American Club plans Miami River tower

The Polish American Club is pushing forward a mixed-use development near the Dolphin Expressway with a vote by the Miami City Commission next week as the next step and a search for a developer to follow. The club proposed a mixed-used development on its land at 1250 NW 22nd Ave. (Pulaski Avenue) on the South Fork of the Miami River, Miami Today previously reported.

Three-tower Miami Riverbridge wins river commission backing

After hearing the latest plans from the developer of the Miami Riverbridge, the commission tasked with coordinating projects along the downtown waterway is recommending approval of the project to the city. On March 4, the Miami River Commission reviewed several real estate projects slated for the area, starting with details of the Miami Riverbridge, a massive three-tower…

CL Hotels pays $26M for Circa 39 in Miami Beach

CL Hotels picked up an Art Deco hotel in Miami Beach for $25.55 million. An affiliate of North Miami Beach-based CL acquired Circa 39 Hotel, a three-story building with 97 rooms at 3900 and 3924 Collins Avenue, records and Vizzda show. The deal breaks down to $263,400 per room. The seller, a joint venture between Coral Gables-based Black Salmon and Ashburn…

$50 million gift spurs Sylvester Cancer Center growth

A $50 million donation to Sylvester Comprehensive Cancer Center is expected to enhance patient care, double Sylvester’s research, expand clinical trials and develop new therapies in the new 12-story facility that is to open in 2025. Kenneth C. Griffin, founder and chief executive officer of Citadel and founder of Griffin Catalyst, donated $50 million to Sylvester Comprehensive…

$9.2M Sale of Office Depot-Leased Retail Property in Miami Springs Brokered

Marcus & Millichap has brokered the $9.2 million sale of single-tenant retail property located at 3600 S. Le Jeune Road in Miami Springs. Office Depot occupies the building on a triple-net-lease basis. Scott Sandelin of Marcus & Millichap represented the undisclosed seller, which acquired the property in 2012, in the transaction. Jorge Ruiz of Platinum Properties represented the…

62-Story Bentley Residences Breaks Ground At 18401 Collins Avenue In Sunny Isles Beach

Dezer Development has initiated construction on the Bentley Residences, the first-ever Bentley Motors branded residences worldwide. Situated at 18401 Collins Avenue in Sunny Isles Beach, this 62-story development occupies a 2.37-acre site along the beachfront. Designed by Sieger Suarez Architects with interiors by Michael Wolk Design, the 749-foot-tall tower is set to house 216…

62-Story Bentley Residences Miami – with Dezervator – Begins Construction

A groundbreaking ceremony has been held for the Bentley Residences Miami tower in Sunny Isles. The 62-story Bentley Residences is planned to top off at 749 feet, which would make it the tallest oceanfront building in the US (at least one other tower in Sunny Isles is planned to match that height). Residents will be able to to drive their car into one of four elevators (known as a Dezervator)…

Developer proposes 112-unit Live Local Act rental project in Model City

A developer wants to build a 112-unit apartment building under the Live Local Act in Model City, marking a continued uptick of proposals tied to the affordable housing law. The proposal is for an 11-story building with ground-floor retail on a 0.7-acre vacant site on the northwest corner of Northwest 27th Avenue and Northwest 46th Street in unincorporated Miami-Dade County…

Cranes As Tall As 1000 Feet Planned At Cipriani Construction Site: FAA Filing

A filing with the Federal Aviation Administration last week has revealed the heights of tower cranes planned at the 80-story Cipriani Residences construction site in Brickell. The first crane is planned to reach a height of 1000 feet above ground, or 1003 feet above sea level. The second crane is planned to reach a height of 980 feet above ground, or 983 feet above sea level.

M-Tower Being Redesigned With 90 More Units, Other Improvements

M-Tower’s developer provided a construction update at a recent meeting of the Miami Parking Authority. The tower is being built on a combination of MPA land and private property owned by the developer next door. An MPA garage was recently demolished to make way for the new building. The developer says it has invested a significant amount in value engineering, resulting…

Overtown’s Largest Development In Decades Now Painted, Completion In Summer

Overtown’s largest mixed-use project in decades has its paint, new photos by Phillip Pessar show. Completion is expected this summer, the developer said in January. The project is known as Sawyer’s Walk (previously Block 55). It is planned to include: 578 housing units, predominantly for low income seniors 130,000 square feet of office space 175,000 square feet of retail over…

Here’s When One Bayfront Plaza Demolition Is Estimated To Be Complete

A 1,049 foot mixed-use supertall called One Bayfront Plaza is planned in the heart of downtown Miami, but first an older 19-story office building must be demolished. Now, a contractor has provided an estimated on how long the demolition process is estimated, according to Axios. Miami’s Building Department is currently reviewing a total demolition permit to take down the old tower.

Toll Brothers, CanAm Capital Complete 1,086-Bed Student Housing Community Near Florida International University

A joint venture between Toll Brothers Campus Living and CanAm Capital Partners has completed Lapis, a 1,086-bed student housing development located adjacent to the Florida International University campus in Miami. The 20-story community spans more than 763,500 square feet and offers units in one-, two-, three-, four- and five-bedroom configurations. Shared amenities…

New Renderings And Phased Plans Unveiled For Trio Of Towers At ‘Miami Riverbridge’, Including 87-Story Supertall, in Downtown Miami

Updated renderings and phased plans have been unveiled for Miami Riverbridge, a three-tower mixed-use development designed by Arquitectonica and developed by Hyatt Hotels Corporation and Miami’s Gencom set to redefine the 4-acre site at 400 Southeast 2nd Avenue along the Miami River. With a review by the Miami River Commission scheduled for March 4, this visionary…

Miami Riverbridge: New Renderings & Phasing Plans Filed With Commission

The three-tower Miami Riverbridge megaproject is set for a hearing before the Miami River Commission next week, with new details revealed in filings by the developers. According to the plans filed with the commission, Miami Riverbridge is planned to include: 1,342 multifamily units 264 apartment-hotel units 615 hotel keys 100,000 square feet commercial 1,180 parking…

12-Story Condo Development ‘Domus Brickell Park’ Gears Up To Break Ground Next Month at 1611 SW 2nd Avenue in Miami’s Brickell Financial District

Domus Brickell Park, a 12-story condominium development by North Development—a strategic joint venture between Ricardo Dunin’s Oak Capital and Edifica, one of Peru’s most prominent developers and builders—is gearing up to break ground next month. This milestone follows the successful conversion of reservations to contracts, with over 50% of the 171 residential…

NuRock Proposes 11-Story Affordable Housing Development in Northern Miami-Dade

A Georgia-based developer has submitted a pre-application proposal for the Residences at Westview Landings, a residential development that would take shape east of Opa-Locka. The affordable housing complex would offer 130 apartments in an 11-story building, reserved for residents making up to 50 percent of the area median income. That means that for a single-person household…

New Details On 765-Foot Santander Tower Planned In Brickell

There’s more information about the new Santander Tower being planned on Brickell Avenue. A final decision on building the new tower has not yet been made, according to Forbes, which cited Spain’s Expansión. Meanwhile, Santander Bank signed a lease with Miami Worldcenter for a 4,043 square foot retail space at Block F East, according to documents seen by The Next Miami.

Miami Schedules Meeting To Resolve Rapid Transit Zone Conflict

Miami has issued notice of a scheduled meeting to discuss Miami-Dade’s Rapid Transit Zone. Here’s what is planned, according to the agenda: A discussion, pursuant to the Florida governmental conflict resolution act procedures of chapter 164, Florida statutes, for the purpose of resolving a conflict between the city of Miami and Miami-Dade county regarding Miami-Dade…

ANF Group, Inc. Tops Off Construction On ‘University Station’ in Hollywood

ANF Group, Inc., a full-service construction firm providing construction management, general contracting, development, and design-build services to the South Florida market, celebrated the topping out of University Station, a new $100 million mixed-use development in Hollywood, Florida. A true public-private partnership (P3) with the City of Hollywood, the development is…

Miami Named The Hottest Apartment Market In The U.S. To Start 2024 (Again)

In the early months of 2024, Miami-Dade has once again been named the hottest market for apartments in the nation, according to RentCafe. A total of 139 markets were analyzed for the ranking. Miami scores as the most competitive rental market out of any, RentCafe said. The city’s thriving economy, lifestyle, location and weather puts pressure on apartment supply, the report said.

JDS Development Partners With Mercedes-Benz for Branded 67-Story Condo Tower in Brickell

Merely two months following the grand reveal of its first foray into real estate in Dubai, Mercedes-Benz is now casting its visionary blueprint across the shores of the United States. Miami, a city synonymous with a vibrant tapestry of culture, iconic sandy stretches, and an ever-evolving skyline, is poised to embrace a significant new landmark. In an ambitious leap, Mercedes-Benz…

JDS Development Group Unveils Plans for 67-Story Mixed-Use Tower in Miami

JDS Development Group has unveiled plans for Mercedes-Benz Places, a 67-story mixed-use tower that will be located in Miami’s Brickell neighborhood. Designed by SHoP Architects and developed in partnership with the German automaker, Mercedes-Benz Places will feature 791 condominium units, a 174-room hotel, 200,000 square feet of office space, retail space, restaurant…

67-Story Mercedes-Benz Tower Announced In Brickell, In ‘Technical Silver’ Color

Plans have been announced for a 67-story Mercedes-Benz branded tower in Brickell. The Mercedes-Benz Places tower in Brickell will be the first in the USA. Technical silver will be the dominant color of the tower, complemented by the classic Mercedes-Benz black and white, to create a distinct presence on the Miami skyline. There will be 791 Mercedes-Benz residences in the 1 Southside…

Michael Stern’s JDS launches sales for Mercedes-Benz branded Brickell condo tower

JDS Development Group is launching sales of its planned Brickell tower to be branded Mercedes-Benz, marking the German carmaker’s first North American condo project. The previously un-branded 67-story mixed-use tower at 191 Southwest 12th Street will be called Mercedes-Benz Places in Miami, according to a press release. It comes on the heels of Mercedes-Benz debuting…

445-Foot Tower At Brickell’s Starlite Motel Site Submitted To FAA

FAA height approval is being requested for a tower at the former Starlite Motel site in Brickell. The proposed heights were submitted to the  federal agency last week. According to the filings, the tower is proposed to rise 445 feet above ground, or 452 feet above sea level. In August, Chicago-based developer Focus filed plans with Miami-Dade for a 39-story tower on the site, after the…

Miami Beach Commissioners Unanimously Oppose Metromover Extension

Miami Beach City Commissioners voted last week to unanimously oppose a Metromover extension to South Beach, according to the Herald. Miami-Dade could still build the new Metromover leg without city approval, but the vote sets up the possibility of legal challenges. Homeowner groups representing wealthy residents in the South of Fifth and West Avenue areas have opposed…

High-End Wynwood Apartment Building With 509 Units Tops Off

The Residences at The Wynwood Plaza has topped off. The building “will set a new bar of luxury in Wynwood,” its developers said. A total of 509 luxury apartments are being built, with high-end amenities for residents that will include a sauna, cold plunge, hot tub, multiple outdoor pools, and a glass atrium with co-working spaces. L&L Holding Company and Oak Row Equities, along…

Developers Top Off Construction On 509-Unit ‘Residences at The Wynwood Plaza’

L&L Holding Company and Oak Row Equities, along with project partner Shorenstein Properties and co-investor Claure Group, have topped off construction on the Residences at The Wynwood Plaza (the “Residences”), the luxury apartment community the team is developing as part of a one-million-square-foot mixed-use campus in Miami’s vibrant Wynwood Arts District.

Miami International Airport advances vast Central Terminal revamp

Next steps in the $7 billion redevelopment plan for Miami International Airport (MIA) are underway this week, as the county pursues architectural and engineering services for Phase One of Central Terminal modernizations. All of the projects are in anticipation of MIA reaching a projected 77 million travelers and 4 million tons of freight by the year 2040. MIA is also undergoing…

27-story Edgewater hotel-condo wins backing

A developer plans to construct a 27-story condo-hotel in Miami’s Edgewater neighborhood. Urban Network Capital Group LLC plans to build the mixed-use project at 445 NE 36th St., near Biscayne Bay and the Julia Tuttle Causeway on I-195. The city’s Urban Development Review Board unanimously recommended approval of the project with several conditions. Designed by Kobi Karp…

Michael Lewis: To add Beach transit, the perfect is the enemy of the good

In a letter to the editor, Miami Beach’s city manager notes that Metromover in Downtown Miami “is enjoying increasing ridership and public acceptance” and hopes opponents of Miami Beach transit plans learn “that the system must be efficient, economical, and – most importantly – go where people want to go.” Unfortunately, they didn’t learn.  That letter didn’t follow last week’s…

Brickell’s Tallest Tower, Cipriani Residences Miami, Breaks Ground At 1420 South Miami Avenue

Moss Construction marked a pivotal moment in the transformation of Brickell’s skyline with the groundbreaking of Mast Capital’s Cipriani Residences Miami on February 13. This event heralds the rise of what is set to become Brickell’s tallest edifice, reaching an impressive height of 950 feet above ground level. Designed by the esteemed Arquitectonica with interiors…

In Brickell, Signage Installed For 90-Story Dolce Gabbana Tower

Signage has been installed at the site of an upcoming sales gallery for the Dolce & Gabbana supertall tower, also known as 888 Brickell, according to photos by Phillip Pessar. There’s also now an official website for the development, with new details. The building will top off at 1,049 feet, the website says, which would make it a supertall. Developers said last year that it would have 90 stories.

New Tenants Coming To Downtown Miami’s Brightline MiamiCentral

Brightline MiamiCentral’s latest tenant signings within the downtown transportation hub are the AT&T Store at MiamiCentral. The two retail additions join Brooklyn Dumpling Shop among recently announced additions to the six-block transit-oriented development in the heart of Downtown Miami. All slated for 2024 openings collectively illustrate the continued demand for retail…

Developers Propose Mixed-Use Forum Park for 18820 W Dixie Highway in Miami’s Ojus Neighborhood

Developers hope to get approval for Forum Park, a mixed-use venture in Miami’s Ojus neighborhood. The project would require 302,223 square feet of new construction. The main building would measure 11 stories above grade, with the floorplates measuring 11,600 square feet to 14,500 square feet. Forum Park would offer 120,000 square feet of office space, with the office themselves…

11-Story Mixed-Use Tower ‘Forum Park’ Proposed For 18820 W. Dixie Highway In Ojus, Near Aventura Mall

A transformative mixed-use development is on the horizon in the burgeoning Ojus neighborhood near the bustling Aventura Mall. Aventura Office Center LLC, under the leadership of Yakov Cohen and Cheryl Cohen from Sunny Isles Beach, has propelled forward with plans for an innovative 11-story tower at 18820 West Dixie Highway. This project, known as Forum Park…

Vera Fund 6 LLC Proposes ‘Co-Living Project’ for 2511 NE 192th Street in Miami’s Ojus Neighborhood

Miami-based developer Vera Fund 6 LLC has proposed a new housing development for Miami’s Ojus neighborhood. It hopes to get approval for an eight-story development that would offer 38 apartments, with units measuring 413 to 779 square feet each. Floorplans range from studios to two-bedroom homes, with the unnamed development hosting just over 21,000 square…

Miami-Dade ranks as highest-performing US hotel market

Hotel owners in Miami-Dade County are flying high to start the year. CoStar data shows the county ranks as the best performing market in the nation. Miami-Dade hotels experienced an 88.2 percent occupancy rate for the week ending Feb. 24, a nearly 3 percent increase, year-over-year. That was enough to claim the top spot among 25 other major hotel markets in the…

Best Meridian Insurance seeks to foreclose on South Florida office and religious buildings

Best Meridian Insurance Company is looking to nab a triple-play foreclosure. In separate civil lawsuits filed in Miami-Dade and Broward counties, the Miami-based lender is alleging the owner of a Fort Lauderdale office building, and a church and school owner in Miami, each defaulted on a combined $11.6 million mortgage debt. Mitchell Mandler, Best Meridian’s lawyer, did not…

Lease roundup: Space Invaders and Jetset Pilates coming to downtown Miami

A Miami nightlife company and a Pilates studio leased in downtown Miami. Space Invaders signed a five-year lease with a five-year extension option for 7,800 square feet at the Clear Spaces commercial space within the Centro residential condo tower at 151 Southeast First Street, according to a news release from Clear Spaces’ broker. Space Invaders, a subsidiary of Los Angeles…

Top 15 South Florida Retail Shopping Center Transactions of 2023

In 2023, South Florida witnessed a flurry of significant transactions within its retail real estate sector, cementing its status as a vibrant hub for commercial activity. Among the top shopping center deals, notable acquisitions and developments reshaped the region’s retail landscape. From iconic malls to upscale boutiques, investors and developers eagerly capitalized on the area’s…

Bal Harbour development rules could hinder Whitman’s Live Local Act project

Bal Harbour officials are passing a slew of new development regulations that could bar Whitman Family Development from pursuing its Live Local Act project in the village. Whitman Family Development, owner of the high-end Bal Harbour Shops, wants to add a mixed-use project on the 18-acre mall site, using the Live Local Act. The state law, approved last year, allows developers…

Developers propose 234-unit age-restricted multifamily complex in Goulds

Trinity Housing Partners proposes a 234-unit age-restricted multifamily complex in Goulds, marking continued development appetite in south Miami-Dade County. Trinity, led by attorney Erick Deeb and electrical contractors Roberto Baroniel and Pep Alvarez, wants to build Trinity Sierra Bay, consisting of a seven-story building and a five-story building at 11770 Southwest 214th Street…

Terranova eyes takeover of Location Ventures’ Coral Gables headquarters

The Coral Gables headquarters for Location Ventures could end up in the hands of Stephen Bittel, CEO of Terranova Corporation. An entity managed by Terranova CFO Scott Fitzgerald, which owns a delinquent loan secured by the office building at 299 Alhambra Circle, is negotiating a settlement with the court-appointed receiver managing Location Ventures to acquire the property…

How long can #longmiami last?

At South Florida real estate functions, it’s fairly common to run into brokers who’ll gnaw your ear off about #longmiami. Aside from being a hashtag on X (formerly Twitter) that is used to share anecdotes and data points about the region’s hot real estate market, #longmiami has become a slogan for local boosters eager to convince you that South Florida has entered the global stage.

Vertical Construction Begins on THE WELL Bay Harbor Islands, Miami’s First Wellness-Centric Condo and Office Development

THE WELL Bay Harbor Islands, an 8-story condominium building under construction at 1177 Kane Concourse, has begun its vertical ascent. Spearheaded by Terra, a leading force in Miami’s real estate sector, and the internationally acclaimed wellness brand THE WELL, this development sets a new precedent as the nation’s first combined condo and office wellness lifestyle endeavor.

High times: Miami City Commission approves Midtown Miami cannabis dispensary

A medical marijuana company got the green light to open a store in a Midtown Miami retail building owned by Michael Comras. The Miami City Commission on Thursday voted 3-2 to uphold a certificate of use issued to Miami-based Ayr Wellness by the city’s planning and zoning appeals board in 2022. The city’s zoning office had requested that the elected body overturn…

EQT Exeter Acquires Doral Mixed-Use Building for $14.5M, Expanding Portfolio

EQT Exeter has completed the acquisition of a mixed-use building in Doral, South Florida, marking another significant investment by the Radnor, Pennsylvania-based real estate investment trust (REIT). The property, located at 3605 Northwest 115th Avenue, encompasses 45,970 square feet and is currently leased to Wrk Lab, a prominent office furniture dealer. This move is part of EQT…

EQT Exeter pays $15M for Doral warehouse and office building

EQT Exeter paid $14.5 million for a warehouse and office building in Doral. An affiliate of the Radnor, Pennsylvania-based real estate investment trust acquired the 45,970-square-foot mixed-use building at 3605 Northwest 115th Avenue, records show. Sitting on a 2.1-acre site, the building was completed in 2004. The seller, an entity managed by Harry Aizenberg in Laredo, Texas…

Co-working firm takes over WeWork’s former space in downtown Miami

A co-working firm took WeWork’s former space at the Security Building in downtown Miami. Vast Coworking Group leased 20,300 square feet on the seventh, eighth and ninth floors of the building at 117 Northeast First Avenue, according to a news release from the tenant. An unidentified franchiser signed a 10-year deal to run the space under Vast’s Venture X brand…

Miami’s graffiti landmark is set to be demolished

Transformed by a group of graffiti artists from a downtown eyesore into a social media sensation, the old commercial complex across from Bayfront Park is slated to be demolished soon to build a luxury project. But the art world isn’t exactly mourning its loss. The big picture: By its nature, graffiti is temporary. Pieces regularly get covered up by other artists, painted over by property owners…

RAM, Pinnacle expand planned rental project near Brightline Aventura station to 334 units

RAM Realty Advisors and Pinnacle propose to expand their planned multifamily project near the Brightline Aventura station to 334 units. The developers want to build the 16-story Aventana building with ground-floor commercial space at 19640 West Dixie Highway in the Ojus neighborhood in unincorporated Miami-Dade County, according to an application filed to the county…

Buena Vista Residents Resist Proposed Developments

As South Florida grapples with a housing crisis and developers propose building more high-rises in Miami, BVM Development LLC (BVM), developers and owners of the Upper Buena Vista outdoor mall, and Design District Studios (DDS) have requested rezoning changes for planned multistory residential buildings in the Buena Vista neighborhood. However, residents…

Mode Hopes to Reinvigorate Nightlife in Downtown Miami

Downtown Miami’s core received another jolt to its nightlife scene with the opening of Mode last month. The venue took over the South Miami Avenue space formerly occupied by the jazz bar Le Chat Noir. The 80-year-old building initially served as a fallout shelter during the Cold War, which is why it has one of the very few basement spaces in Miami. Upon entering at ground level…

Raimundo Onetto’s Alta plans 534-unit multifamily complex in Princeton

Alta Developers wants to develop a two-phase multifamily project with a total of 534 units in Princeton, marking the firm’s first bet on the south Miami-Dade County neighborhood. The development firm, led by Raimundo Onetto, plans Princeton Commons roughly on the northwest corner of Southwest 127th Avenue Southwest 248th Street in unincorporated Miami-Dade County…

The Weekly Dirt: Live Local gets key changes, faces early battles

This week state lawmakers approved changes to the Live Local Act, which was signed into law last year and provides incentives for affordable and workforce housing. The Senate approved changes a few weeks ago, and the House did the same on Wednesday, meaning the tweaks await Gov. Ron DeSantis’ signature. Here’s a quick rundown of the changes: The original law allowed…

Riviera Horizons to launch sales of Pagani-branded North Bay Village condos

Mikael Hamaoui’s Riviera Horizons is set to launch sales this spring of a Pagani-branded North Bay Village condo project. The planned 28-story, 70-unit Pagani Residences is the first ever condo development for the Italian hypercar brand, according to a press release. It marks the latest addition to the slew of branded residences in development across South Florida, and the first such…

Citadel exec talks offices, David Martin speaks about climate change at UM conference

Citadel remains steadfast in its belief that companies will bring employees back to the office, despite some firms opting to downsize and certain industries still allowing remote work, an executive with the hedge fund said. “The financial services sector, they have leaned [into] the value of being in the office. And it’s not just a three-day a week conversation. It’s a five-day a week conversation…”

J. Goldman pre-leases at Bizzi+Bilgili, Sumaida + Khurana’s South Beach office project; Asking rents could reach $170 psf at building

A New York-based hedge fund pre-leased at the Fifth Miami Beach office project under construction in South Beach. J. Goldman took about 10,000 square feet, marking the first signed tenant at the roughly 60,000-square-foot project, according to Bloomberg, which cited an unidentified source. Michael Juliano, COO at J. Goldman, said the firm has long had a South Florida office…

Making “mor chikin”? Chick-Fil-A pays $51M for Weston warehouse

Chick-Fil-A is boosting its fowl fast food distribution in South Florida after acquiring a Weston warehouse for $50.5 million. An affiliate of the Atlanta-based chain bought the 207,335-square-foot facility at 3225 Meridian Parkway that was completed in 1995, records show. The deal breaks down to $244 per square foot. The seller, a fund managed by Boston-based Cabot Properties, paid $30 million…

36-Unit Vielix 441 Proposed for 2127 North State Road 7 in Hollywood

A local South Florida developer hopes to get approval for an eight-story housing development that would offer both two-bedroom and three-bedroom floorplans. Vielix Investments has proposed Vielix 441, which would feature 36 units and measure about 900 square feet to 1,230 square feet each. There would be 73 parking spots (about two per unit). The South Florida Business…

Fort Lauderdale Office Tower Moved To Special Servicing Amid Dwindling Cash Flow

The $58.5M loan backing One Financial Plaza in Downtown Fort Lauderdale was moved to special servicing this week after owner Alliance HP failed to secure an extension on the debt. The collateralized loan obligation covering the 274K SF office building at 100 SE Third Ave. is facing issues with a floating interest rate and didn’t achieve stabilized net operating income…

Developer Files Plans for 44-Unit Residential Building At 900 Intracoastal Drive In Fort Lauderdale

900 Intracoastal Drive, Inc. has filed plans for a new 16-story residential building at 900 Intracoastal Drive, located near The Galleria shopping mall in Fort Lauderdale. The 185-foot-tall structure, named 900 Intracoastal, is set to yield 217,652 square feet of space and feature 44 exclusive residences along the city’s picturesque Intracoastal Waterway. The development has…

DWS Inks Long-Term Office Renewal in Fort Lauderdale

Las Olas Centre I was completed in 1997 and is LEED Gold certified. Image courtesy of Stream Realty Partners Las Olas Centre I was completed in 1997 and is LEED Gold certified. Image courtesy of Stream Realty Partners Las Olas Centre I was completed in 1997 and is LEED Gold certified. Image courtesy of Stream Realty Partners DWS has signed a 22,000-square…

Urbane Capital proposes 18-unit townhouse complex in Wilton Manors

A development firm wants to build an 18-unit luxury townhouse complex in Wilton Manors. Urbane Capital, led by Amin Jamal and Nitin Jain, proposes three three-story buildings with six units each on a 1-acre site on the southeast corner of Duval Court and Northeast Ninth Avenue, according to Jamal and project filings to the city. The project, called Wilton Yards, would offer the townhomes…

Developer Aims to Proceed with Eight-Story Venture at 2755 S. Federal Highway, Boynton Beach, Florida

A South Florida developer has purchased 4.27 acres, which could be developed into Boynton Beach’s first complex under the Live Local Act. The Dune apartments would feature 336 residential units in an eight-story building. Of those units, 36 would be townhomes, and the rest apartments. The South Florida Business Journal reports that 60 percent of the units (201) would be…

Kayne Anderson, Remedy pay $21M for Boynton Beach office buildings

Kayne Anderson and Remedy Medical Properties paid $20.5 million for an office complex in Boynton Beach. The joint venture acquired a pair of two-story medical office buildings at 10275 and 10383 Hagen Ranch Road, records and Vizzda show. Kayne Anderson and Remedy Medical also assumed two 99-year ground leases with Ohio-based Welltower, which owns the land underneath…

BH Group JV to Redevelop Former Office Depot Boca Raton HQ Site

The Offices at 6600 N. Military Trail are slated for redevelopment. Rendering courtesy of BH Group and PEBB Enterprises The Offices at 6600 N. Military Trail are slated for redevelopment. Rendering courtesy of BH Group and PEBB Enterprises The Offices at 6600 N. Military Trail are slated for redevelopment. Rendering courtesy of BH Group and PEBB Enterprises…

José Andrés Group Brings First Restaurant Concept to West Palm Beach at Olara

New York-based developer Savanna has announced a new partnership with the José Andrés Group at Olara, a new 26-story luxury residential condominium at 1919 North Flagler Drive on West Palm Beach’s waterfront. Renowned Chef José Andrés will bring his first new restaurant concept in the Palm Beaches to Olara, which will be open to the public. Additionally, residents…

West Palm approves Capstone’s 238-unit apartment project with workforce housing

Capstone Realty Group scored approval for a 238-unit apartment project in West Palm Beach, marking the firm’s development debut in South Florida. The Englewood, New Jersey-based firm plans an eight-story building on 3.7 acres at 1551 Forum Place, according to city records. West Palm commissioners unanimously approved a future land use change from commercial…

Dalfen Inks 101 KSF Lease at West Palm Beach Industrial Facility

Dalfen Industrial has signed a 101,000-square-foot lease at its Turnpike Logistics Center in West Palm Beach, Fla., with National Millwork. The arrangement represents the largest industrial lease signed in Palm Beach County year-to-date, according to CBRE. Turnpike Logistics Center came online in 2020. Image courtesy of CBRE Turnpike Logistics Center came online…

Pérez family’s Related, partners sue Palm Beach County over Transit Village project

The Pérez family’s Related Group and its partners in the Transit Village mixed-use project are suing Palm Beach County, alleging it’s trying to strong-arm the developers into paying nearly 10 times more for the site. The 1.3 million-square-foot Transit Village would consist of four 25-story buildings with 986 residential units, including 42 workforce-priced rentals and 165 micro-units…

Great Gulf pays $29M for West Palm Beach waterfront dev site

Great Gulf paid $28.5 million for a waterfront development site in West Palm Beach that is currently home to a small multifamily project. An affiliate of the Toronto-based condominium and single-family home builder acquired Poinsettia Club Apartments at 5400 North Flagler Drive, records and Vizzda show. The 2.5-acre site is along the Intracoastal Waterway and roughly five miles…

Catalfumo, Richman score approval to add 620 rental units at Palm Beach Gardens project

Catalfumo Companies scored approval to build an additional 620 multifamily units at its Palm Beach Gardens project. Catalfumo, in partnership with The Richman Group of Companies, now will develop a total of 1,016 apartments at Gardens Station. The pair are currently building 396 units at the project at 11025 RCA Center Drive, according to a Catalfumo news release.

JDL, Wanxiang score $160M construction loan for Juno Beach condo project

JDL Development and Wanxiang America Real Estate Group landed a $160 million construction loan for a planned condo project in Juno Beach. Argo RE, Bsafal, and Taconic Capital provided the financing for Caretta, a planned five-story building with 95 units at 1011 U.S. Highway 1, a press release states. Designed by Chicago-based Hartshorne Plunkard Architecture, the project will also…

Video: Costar National Director of US Capital Market Analytics on Cap Rates & Transaction Volume

The Discussion: Analyzing the Trends and Forecasts of America’s Commercial Real Estate Market In the dynamic landscape of commercial real estate, understanding the nuances of market trends and forecasting future trajectories is essential for investors, brokers, and stakeholders alike. The recent conversation between the host of America’s Commercial Real Estate Show…

Reports: Brightline’s Next Train Station Will Be In Stuart

Stuart officials say their city has been selected as the next location for a new Brightline station, according to multiple reports. The new station will be built in the city’s downtown. Stuart, Martin County, and Brightline would contribute to the station’s $60 million cost, according to a proposal submitted to the company. Multiple Treasure Coast cities had been competing for…

JP Morgan: How to raise capital for multifamily properties

Raising capital for real estate can be a challenge, especially amid market conditions that can encourage investors to be cautious. But accessing new capital can also unlock big opportunities—especially for commercial real estate owners with the skills and experience to navigate the market. Fundraising can help you grow, whether that means investing in larger multifamily…

Understanding institutional real estate investing

Institutional real estate investors, such as pension funds, endowments, foundations and sovereign wealth funds are a key source of capital for real estate developers, operating companies, asset managers, investment funds and trusts. Like many investors, these institutions are attracted to real estate’s potential for diversification and solid returns. But their scale and sophisticated approach…

2024 apartment market update for multifamily investors

What’s in store for multifamily investors in 2024? At a national level, multifamily real estate will continue to grapple with slowing growth in the number of new households while apartment supply surges. Rents will likely continue to grow, but more slowly than the long-run average. Meanwhile, vacancy rates are expected to stay at levels slightly above average in the post 2008 recession…

The Fed’s Beige Book: Tourism Roars On as Overall Activity Holds Steady

Economic activity across the Southeast was little changed from the prior six weeks during January through mid-February, according to the new Beige Book anecdotal report of business conditions from the Federal Reserve Bank of Atlanta. Firms reported steady hiring even as finding quality workers remained challenging. Many contacts said they employed various strategies to attract staff.

“Beneficial to developers”: Florida Legislature approves tweaks to Live Local Act

Florida lawmakers approved changes to the Live Local Act that are expected to benefit developers planning affordable housing projects. The state House on Wednesday passed a slew of tweaks with a 112-1 vote, three weeks after the Senate first approved the changes. The legislation won’t be final until Gov. Ron DeSantis signs it into law. The Live Local Act was approved…

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March 6, 2024

Video: Costar National Director of US Capital Market Analytics on Cap Rates & Transaction Volume

The Discussion: Analyzing the Trends and Forecasts of America’s Commercial Real Estate Market

In the dynamic landscape of commercial real estate, understanding the nuances of market trends and forecasting future trajectories is essential for investors, brokers, and stakeholders alike. The recent conversation between the host of America’s Commercial Real Estate Show and Chad Littell, National Director of US Capital Market Analytics with the CoStar Group, provided valuable insights into the state of the market, capital flows, and expectations for 2024. The conversation examined commercial real estate on a nationwide scale; thus, insights may carry less significance or be inconsequential when it comes to commercial properties in Miami.

The dialogue commenced with a reflection on the preceding year, highlighting the notable decline in transaction volumes compared to the peak years of 2021 and 2022. Chad Littell underscored the significance of understanding historical trends to contextualize the market’s performance. While 2023 did not witness a continuation of the downward spiral experienced in 2022, it also lacked the customary surge in transaction volumes seen in previous years.

A pivotal point of discussion centered around the shift in capital allocation among property types. Traditionally, multifamily assets dominated transaction volumes, but 2023 saw a substantial pullback in this segment, with industrial properties emerging as a prominent contender. Chad provided detailed statistics elucidating the decline in transaction volumes across major property categories, shedding light on the evolving dynamics within the commercial real estate landscape.

As the conversation delved deeper, the focus shifted to projections for 2024 and beyond. Chad outlined a nuanced perspective, drawing parallels with historical cycles and emphasizing the potential impact of macroeconomic factors on market dynamics. He highlighted the anticipated uptick in transaction volumes in the latter half of 2024, driven by factors such as maturing loans and investor sentiment.

A key takeaway from the discussion was the importance of scrutinizing sources of future income and recalibrating expectations. Chad emphasized the need to prioritize current yield over speculative growth projections, advocating for a prudent approach to investment decisions amidst evolving market conditions.

Moreover, the conversation underscored the complex interplay between economic indicators and commercial real estate fundamentals. Contrasting signals regarding consumer spending, coupled with divergent trends in delinquencies across property types, underscored the intricacies of market analysis.

In conclusion, the dialogue between the show host and Chad Littell offered a comprehensive overview of the prevailing trends and forecasts shaping America’s commercial real estate market. As stakeholders navigate the uncertainties and opportunities ahead, informed decision-making anchored in robust market intelligence will be paramount in driving success in this dynamic sector.

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March 4, 2024

Miami Commercial Real Estate News February 21, 2024: Santander Plans to Replace its Brickell Tower; Miami International Mall Loan Payoff Missed; More…

Partnership Tops Out 509-Unit Residences at The Wynwood Plaza

Co-developers L&L Holding Co. and Oak Row Equities, along with project partner Shorenstein Properties and capital partner Claure Group, have topped out the Residences at The Wynwood Plaza, a 509-unit apartment development in Miami. The property serves as the multifamily component of Wynwood Plaza, a 1 million-square-foot mixed-use development underway…

Highly touted 830 Brickell office tower opening awaited

Companies from around the globe continue to come to Miami as the city’s most highly touted Class A office building, 830 Brickell, prepares to welcome tenants. “We have tenants that are currently building out their spaces now,” said Ryan Holtzman, executive managing director at Cushman & Wakefield, “but we believe the building will be complete and TCO’d…

Underdeck 33-acre park under signature bridge underfunded

Final negotiations for design of the Underdeck are in progress and the signature I-395 bridge above is on track to be finished in late 2027, but Underdeck costs have risen significantly and the city is still searching for funding. During a virtual information meeting Feb. 13, David Hoot, the City of Miami’s consultant working on the project, provided an update on the 33-acre green space…

Tri-Rail enters downtown Miami using long-planned safety procedures

Even before the South Florida Regional Transportation Authority’s Tri-Rail trains began carrying passengers into downtown Miami in January, safety has been a top priority along the route, Public Affairs Director Victor Garcia told Miami Today this week. The Tri-Rail corridor operates on an advanced Positive Train Control (PTC) safety system, which uses GPS, wireless…

Greystone Provides $419.6M Refinancing for Panorama Tower in Brickell

Greystone has closed a $419.6 million financing package for the refinancing of Panorama Tower, an 85-story mixed-use skyscraper located on Brickell Bay Drive in Miami’s Brickell district. The tower features 821 apartments; 112,731 square feet of Class A offices; 25,219 square feet of retail space; a 2,000-space private parking garage; and an attached 19-story, 208-room Hyatt…

Hollo family scores $420M refi for Panorama Tower in Brickell

Florida East Coast Realty, led by the Hollo family, scored a $419.6 million refinancing for their Panorama Tower in Miami’s Brickell. The deal comes amid a flurry of refinancings across South Florida, showing the tri-county region is defying the national trend of a slowdown in lending due to elevated interest rates. Greystone Commercial Capital provided the refinancing for the 85-story…

Avi Dishi and Elysee pay $48M for Aventura shopping and office plaza

Fresh off buying a downtown Miami commercial building, Avi Dishi and Elysee Investments acquired a grocery store-anchored shopping and office plaza in Aventura for $48 million. Affiliates of New York-based Dishi and Elysee, a Miami-based firm Dishi co-founded, led by CEO Haim Yehezkel, purchased Aventura Plaza at 17985 Biscayne Boulevard, records and Vizzda show.

Alta Developers Requests Administrative Site Plan Review For Second Phase Of Princeton Commons

On February 14, Alta Princeton, LLC, an affiliate of Miami-based Alta Developers led by Felipe Onetto and Juan Ignacio Montes, applied for an Administrative Site Plan Review for Princeton Commons II, a planned residential community within the Princeton Community Urban Center District (PCUCD) in Miami-Dade County. The project, slated for a 10-acre site at 24441 Southwest…

MG Developer proposes 258-unit multifamily project in Princeton

MG Developer proposes a 258-unit multifamily building in Princeton, marking the firm’s first bet on south Miami-Dade County. MG has the 2-acre development site at 13480 Southwest 248 Street in unincorporated Miami-Dade under contract for $5 million, the development firms’ CEO Alirio Torrealba said. Coral Gables-based MG wants to build an 11-story building with 8,300…

23-Story Tech Tower Secures Approval for 10941 SW 7th Street in Miami

Tech Tower has recently secured approval in Miami’s Sweetwater neighborhood. The 23-story apartment building will offer 170 apartments, with 20 percent (34 homes) designated as workforce housing. The building can accommodate up to 678 beds. Communal amenities at Tech Tower include a yoga lawn, fitness studio, and residents’ lounge. There will also be a rooftop…

‘Tal Aventura’ Developer Seeks Approval for Revised Condo Tower with Hotel Addition

The developer behind the approved Tal Aventura condo tower is proposing a significant change to the project by incorporating a hotel component on the lower floors. Initially greenlit by city officials in 2022 for 86 condominiums across 26 stories, the development site, spanning 1.55 acres at 2785 Northeast 183rd Street, has remained untouched, awaiting construction commencement.

Developer Proposes New Plan for Tal Aventura at 2785 N.E. 183rd Street in Aventura

In 2022, Florida YIMBY reported on Tal Aventura, a luxury residential venture slated for Miami-Dade County. Now, our sources have indicated that the developers aim to revise the original plans, adding more condos and hotels. City officials will review the proposal on Feb. 20th. The new Tal Aventura would measure 21 stories and offer 93 condos, 224 hotel rooms, and 453 parking…

Housing Trust Group Commences Construction On Senior Housing Community At 18700 NE 25th Avenue In Aventura

Housing Trust Group (HTG), a leading multifamily developer, has commenced construction on Oasis at Aventura, a new $37 Million affordable senior community with 95 apartments in Miami, Florida. The community is the latest joint venture between HTG and AM Affordable Housing, a non-profit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning….

Miami Urban Development Review Board to Consider Proposal for 5401 NW 7th Avenue in Miami

A 35,966-square-foot parcel in Miami’s Model City neighborhood could soon be home to a high-rise tower. Presently, the site is home a Burger King. Yet, if all goes according to plan, it could be reshaped into Principio. Our sources indicate that the 215,256-square-foot venture would measure eight stories, offering 142 apartments. They would measure 585 to 1,121 square feet.

40-Story ‘Santander Tower’ Planned For 1401 Brickell Avenue In Miami’s Financial District

On February 21, Miami’s Urban Development Review Board is scheduled to review the filed plans for Santander Tower, a visionary project at 1401 Brickell Avenue in the Brickell financial district. This 40-story office building, targeting LEED Platinum certification, is designed to redefine Miami’s skyline and urban experience. The development, designed by Handel Architects from New York…

Banco Santander wants to redevelop its Brickell building with 40-story office tower

Banco Santander proposes to replace its Brickell building with a 40-story office tower, marking at least the fourth planned office project in Miami’s financial district. The Spanish bank proposes to demolish its current 14-story office building at 1401 Brickell Avenue and develop a new tower in its place, according to an application filed to the city late last month. The project, called Santander…

H&M Signs 25,000 SF Retail Lease at Shops at Brickell City Centre

H&M has signed a 25,000-square-foot lease to occupy an anchor space at The Shops at Brickell City Centre (BCC) in Miami. Scheduled to open later this year, the global clothing retailer will occupy two levels at the property, which serves as the primary retail component of BCC, a 4.9 million-square-foot mixed-use development that first opened in 2016. Developed by Swire Properties…

H&M Leases Two Floors At Brickell City Centre, Where Foot Traffic Is Breaking Records

H&M is coming to Brickell City Centre. The new H&M will be located on level two of the mall’s North Block, in the former La Centrale and Luna Park space. H&M Brickell will offer women’s, men’s, and kids’ collections. The storefront will feature upgraded finishes, including tile flooring, special tile detailing, open-air ceilings, a grand staircase, guest lounge areas, and a large-scale screen…

Revealed: 765-Foot Santander Tower Planned In Brickell

Plans have been filed to build a major new office building called Santander Tower on Brickell Avenue. A total demolition permit application has already been filed for an existing 14-story office building on the site. The permit is currently in review. The developer says the new building will reset the standards for the pedestrian experience of the street level of Brickell Avenue buildings.

Shadi Shomar, partners propose 278-unit workforce housing complex near Naranja

Shadi Shomar and his partners propose a 278-unit workforce housing complex near Naranja, marking their continued bet on south Miami-Dade County’s multifamily market. Shomar, Gonzalo De Ramon, brothers Ghassan and Roger Abboud, and Royal American Construction want to develop a pair of eight-story buildings on 4 vacant acres at 23435 Southwest 127th Avenue…

Legacy Residential, partner propose 309-unit townhouse complex near Florida City

Legacy Residential Group and CD Group want to develop a 309-unit workforce townhouse complex near Florida City. The developers propose Legacy Villas at Palm Drive on a 50.5-acre site on the southeast corner of Southwest 344th Street and Southwest 199th Avenue in unincorporated Miami-Dade County, according to an application filed to the county late last month. Legacy Residential…

1000-Foot Cranes Approved At 1428 Brickell

The Federal Aviation Admiration gave the green light  this week to install two very tall construction cranes in Brickell. The approval is for the site where the 71-story solar-powered 1428 Brickell residential tower is planned. Both of the cranes are now approved to rise at the same height – 1,001 feet above ground, or 1,010 feet above sea level. The cranes are temporary and are expected…

‘Villa One Tequila Gardens’ To Occupy 12,294-Square-Foot Rooftop Space At Miami Worldcenter’s ‘Jewel Box’

Miami is poised to further cement its reputation as an international hub for culinary innovation and vibrant nightlife by introducing Villa One Tequila Gardens at Miami Worldcenter, the $6 billion mixed-use behemoth revitalizing the city’s urban core. Co-founded by Nick Jonas and menswear designer John Varvatos, Villa One Tequila promises to bring Mexico’s finest tequila…

Here’s how embattled Rishi Kapoor recruited — and alienated — his biggest investors

By August 2022, a once promising business relationship involving Miami Beach-based real estate investors Alex Kleyner and Diana Ulis and Coral Gables-based developer Rishi Kapoor was quickly unraveling. Kleyner and Ulis, who invested $45 million into Kapoor’s Location Ventures and two of the firm’s planned projects, had discovered Kapoor received $1.3 million in alleged…

Fyre Fest founder uses Gil Dezer’s planned Bentley condo to sell $1M tickets to latest venture

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February 21, 2024

Charts: Federal Reserve Data Tracks Pronounced Drop in Multifamily Prices Nationally

Chart Shows That Multifamily Prices Nationally Have Dipped Nearly 17% from a Year Prior, a Drop Near That of the Great Recession of 2008

Multifamily Prices Nationally Have Dipped Nearly 17% from a Year Prior, a Drop Near That of the Great Recession of 2008

In the chart above of the Federal Reserve’s Multi-Family Real Estate Apartment Price Index,, retrieved from FRED (Federal Reserve Bank of St. Louis) on February 9, 2024, one can see that multifamily prices have recently declined considerably. What also stands out is that this level of decline has only happened one other time since 1996, and that was in the recession of 2008, commonly referred to as the Great Recession.

Chart Shows That the Index has Declined 17.63% from it 2022 Q2 High of $417,220M to $344,116M in 2023 Q3

The Index has Declined 17.63% from it 2022 Q2 High of $417,220 to $344,116 (millions) in 2023 Q3

This second chart shows the index itself with the drop from its high in the second quarter of 2022 to the third quarter of 2023 matching the percentage change in the prior chart. When one considers how leverage will multiply this effect on equity, with 50% loan to value before the drop resulting in a 35.26% decline in equity from the decline, the balance sheet stress for some multifamily investors must be feeling is abundantly apparent.

Chart Shows That Median Home Sales Prices Have Had Their Biggest Decline Ever as Recorded by FRED

Median Home Sales Prices Have Had Their Biggest Decline Ever as Recorded by FRED

The decline in home prices, a competing residence option versus (renting from) multifamily, is greater than in the aforementioned Great Recession, and in fact is the biggest decline in this 60 year dataset, as can be seen in the FRED data.

Median Sales Prices of Houses Sold has Declined 12.88% from it 2022 Q4 High of $449,500 to $417,700 in 2023 Q4

Financing Cost Effects

 

Chart Shows That After Hanging Under 3% for Most of 2020 to 2021, 30-Year Fixed Mortgage Rates Have More Than Doubled to 6.64% in February 2024

After Hanging Under 3% for Most of 2020 to 2021, 30-Year Fixed Mortgage Rates Have More Than Doubled to 6.64% in February 2024

These price moves are surely the result of higher interest rates. An increase of rates from 3% to 6% increases principal and interest payments for a 30 year mortgage by 42.9%. That effect will be felt by any owners that are forced to refinancing in this environment. Buyers are affected by it now as they consider purchases. The borrowing power of a given level of net operating income, using the same change in rates from 3% to 6$ with a 30 year amortization, is reduced by 30%. Also, the spread between the cost of money and the cap rate goes against a buyer unless prices move (and as per the chart, they have). Finally, the amount of leverage that can be used is reduced, reducing the attractiveness for buyers. During the heydays, when rates were at their lowest, I found there was a batch of buyers motivated principally by cash on cash returns, pre-tax (post debt service) cash flow as a percentage of cash/equity invested, kind of the multifamily equivalent of the carry trade. That’s a strategy that works until it doesn’t.

But What of Miami Area Multifamily?

Chart Shows that Miami Multifamily Prices Appear to Have Declined Considerably as Well

Miami Multifamily Prices Appear to Have Declined Considerably as Well

The sample size drops as one starts to look at this locally, resulting in noisier data. To reduce the “noise,” in the chart above average prices per multifamily unit are considered on a weighted moving average basis. The current period is given a weight of 4, the prior 3, then 2 for the one prior to that, and finally 1 for the 3 periods prior. This has some of the smoothing effect of a 4 quarter moving average while allowing moves in a current period to have more impact.

Working with the weighted moving average numbers, prices in Miami-Dade appear to have declined as they have nationally. I wonder, however, if given the incredible rent growth in Miami during that period, the decline is in actuality less, that the drop reflected in the data is due to better classes of buildings trading in the earlier data than in the later data. Prices throughout the county vary widely, after all. Nonetheless, Miami multifamily has clearly not been immune to the price chilling effects of higher financing costs.

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February 19, 2024

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February 14, 2024

Video: BGO Economist Ryan Severino’s Shares View on Commercial and Multifamily Real Estate

The Conversation: Navigating the Future; Insights from BGO Chief Economist on the Economy and Commercial Real Estate Market

In this video, BGO Chief Economist Ryan Severino joins America’s Commercial Real Estate Show to discuss the economy and the U.S. commercial real estate market. Discussions include Severino’s views on the various property sectors moving forward as well as forecasts for interest rates, property values, and opportunities in 2024. This discussion is about commercial real estate across the United States. Given this, it should be noted that some observations may apply less or not at all to Miami commercial real estate.

Fed Policy and Market Sentiment:
The dialogue delves into the Federal Reserve’s role in shaping economic trends, particularly regarding interest rates. Ryan provides insights into how the market reacts to Fed tightening and suggests that a clear signal from the Fed about halting rate hikes could boost market confidence.

2023 Market Recap and 2024 Predictions:
The hosts review transaction volumes from the previous year, noting a decline attributed to uncertainty around Fed policies. Ryan predicts a modest rebound in transaction volume for 2024 as market confidence grows.

Banking and Lending Outlook:
The conversation shifts to the banking sector’s cautious approach, with banks being selective due to full balance sheets and potential risks associated with loan performance. Non-traditional lenders may find opportunities in the market dislocation.

Distressed Asset Market and Capital Raises:
There’s anticipation of distressed asset opportunities as more capital is raised, but the actual market activity hasn’t matched the raised capital yet. Ryan expects more distress in certain property types, creating opportunities for investors.

Office Market Dynamics:
The office market receives detailed attention, with acknowledgment of its diverse performance across different regions and property types. While some segments, like Class A and trophy buildings, thrive, others face challenges, especially in large cities like New York. There’s anticipation of a prolonged recovery period for the office sector.

Opportunities in Other Real Estate Sectors:
The conversation highlights opportunities beyond the office sector, emphasizing the resilience of industrial, residential, and even retail properties. Self-storage properties are particularly praised for their stable income potential once stabilized.

Investment Strategy and Risk Assessment:
There’s a recurring theme of recalibrating investment expectations and risk assessments in light of changing market dynamics. The dialogue emphasizes the importance of understanding market nuances and picking investment spots carefully.

The Transformative Power of AI in Commercial Real Estate:
The conversation took an intriguing turn as the host delved into the topic of artificial intelligence (AI) and its impact on the world, particularly within the realm of commercial real estate (CRE). Ryan Severino shared interesting insights derived from firsthand experience with integrating AI into commercial real estate practices.

Acknowledging Skepticism and Embracing Potential for CRE:
Ryan began by acknowledging his initial skepticism toward AI but quickly transitioned into a fervent endorsement of its potential. As someone deeply immersed in data analysis and market strategies, Ryan’s journey from skeptic to believer speaks volumes about the transformative power of AI. “It’s not just about crunching numbers,” Ryan emphasized. “AI liberates us to engage in higher-order thinking, enabling us to focus on strategic decision-making rather than getting bogged down in mundane tasks.”

Revolutionizing Commercial Real Estate Market Analysis:
He highlighted AI’s capacity for market ranking, targeting, and forecasting rents, emphasizing its ability to process vast amounts of data at speeds unimaginable to humans. This sentiment echoed throughout the conversation as Ryan elaborated on how AI is revolutionizing portfolio strategy and market analysis within the commercial real estate landscape. “What’s truly mind-boggling,” Ryan noted, “is the sheer volume of data and complex mathematical calculations AI can handle effortlessly. It’s like having a supercharged compass guiding us toward optimal decisions.”

Augmenting Human Capabilities for Informed CRE Decisions:
The conversation also touched upon the evolving role of AI in CRE’s human-centric environment. While AI enhances efficiency and provides invaluable insights, Ryan stressed the importance of maintaining human judgment and intuition in decision-making processes. “It’s not about replacing humans,” he clarified. “AI serves as a powerful tool augmenting our capabilities, guiding us toward informed choices while mitigating biases and oversights.”

Addressing Challenges for AI:
The dialogue didn’t shy away from acknowledging the challenges accompanying AI’s proliferation. Ryan and the host explored concerns regarding AI’s energy consumption, particularly in light of the increasing demand for electricity in an era marked by electric vehicles and data centers. “The rise of AI and electric vehicles poses significant challenges for our energy infrastructure,” Ryan admitted. “We need to confront these issues head-on, ensuring sustainable solutions to meet growing energy demands.”

Cautiously Optimistic Outlook for AI in CRE:
Despite these challenges, Ryan Severino remained cautiously optimistic about the future of commercial real estate. He anticipated a shift in market dynamics, driven by improving fundamentals and a more favorable capital markets environment. “As we navigate the uncertainties of today,” Ryan concluded, “I’m confident in the resilience of the CRE industry. While challenges persist, the cyclical nature of our business promises brighter days ahead.”

About BGO:
Based here in South Florida in the city of Miami Beach, Ryan Severino’s firm BentallGreenOak, known and referred to herein by the trade name BGO, stands as a formidable player in the realm of real estate investment. Serving as the real estate investment arm of Sun Life Financial, BGO has solidified its position as one of the premier firms in North America’s commercial real estate landscape. Their offices are in the 555 Washington Avenue building on Miami Beach, which made it to our Miami commercial real estate weekly headlines posts when it was sold to The Davis Companies by East End Capital and BGO for $52M in 2022 after previously making it for trading for $38M in 2018. With a track record of success and innovation, BGO has garnered recognition as one of the largest real estate investment firms in the region. Its strategic approach and commitment to excellence have earned it accolades and respect within the industry. In a testament to its prominence, BGO secured the seventh spot in PERE’s prestigious ranking of Private Equity Real Estate firms in 2022. This recognition, based on total fundraising efforts over the preceding five years, underscores BGO’s ability to navigate and thrive in the competitive world of commercial property investment.

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February 12, 2024

The Potential Implications of Survey Listing Price Questions Following Property Tours According to Behavioral Economics Theory

Daniel Kahneman, Author of Bestselling Books on Behavioral Economics Theory

Daniel Kahneman, Author of Bestselling Book on Behavioral Economics Theory, “Thinking, Fast and Slow;” nrkbeta, CC BY-SA 2.0, via Wikimedia Commons

I was recently exposed to a survey for a buyer following a property tour wherein the buyer and buyer’s broker were asked a few questions, one addressing how they felt about the listing price. This immediately struck me as something that might work against the interests of the seller.

I’ve long been a student of behavioral economics theory. I notice situations all the time in my personal and business life. This provides me a familiarity such that I instantly sense the implications of asking a prospective buyer about the price, that for the seller this could have undesirable anchoring and framing effects.

The impact of this is perhaps more obvious if one imagines a hypothetical. Imagine if instead of this question being posed in an email, the listing broker pulled the buyer aside during a property tour and whispered the question; “Hey, what do you think of the listing price?” If you think this is different if posed in an survey, stop and think how you’ve looked for every opportunity to talk down a price, regardless of how you felt about it (pricing). This question, even if only in a survey question, would seem to be at the cost to the seller of some number of percentage points in price.

I posed this question to the generative artificial intelligence chatbot ChatGPT. This is just the type of topic it can answer well.

Asking buyers and their agents for their opinion on the price after touring a property can have several implications according to behavioral economics theories.

Question Posed to ChatGPT:

A property was listed at a price believed to be at market value given comparable sales in the area. After buyers tour the property, the listing agent sends the buyer’s agent and the buyer a survey. One question is; “what is your (and your client’s) opinion of the price.” What might the implications be of asking this question after a buyer tours a property, according to behavioral economics theories?

ChatGPT’s Answer:

Asking buyers and their agents for their opinion on the price after touring a property can have several implications according to behavioral economics theories:

1. Anchoring Effect: By asking for the buyer’s opinion on the price after they have toured the property, the listing agent may inadvertently anchor the buyer’s perception of the price to the figure they have in mind. If the buyer perceives the property as being overpriced, their response may reinforce this perception, potentially making negotiations more challenging.

2. Reciprocity: According to the principle of reciprocity, when someone is asked for their opinion, they may feel obliged to reciprocate by providing a response. In this case, the buyer may feel obliged to offer their opinion on the price, even if they haven’t fully formed one yet, which could influence their subsequent negotiations.

3. Confirmation Bias: The question about the price may trigger confirmation bias, where individuals are more likely to notice and remember information that confirms their pre-existing beliefs. If the buyer already believes the property is overpriced, they may be more likely to respond with a negative opinion, reinforcing their initial bias.

4. Social Proof: People often look to others’ opinions and behaviors as a guide for their own. By asking for both the buyer’s and their agent’s opinion on the price, the listing agent may be seeking to leverage social proof to reinforce the perceived value of the property. However, if the responses are negative, it could have the opposite effect and undermine the perceived value.

5. Framing Effect: The wording of the question itself can influence the response. If the question is framed in a way that suggests the price is open to negotiation or that the seller is open to feedback, it may encourage the buyer to be more candid in their response. Conversely, if the question is framed in a way that suggests the price is fixed and non-negotiable, the buyer may be less likely to express any concerns they have about the price.

In summary, asking for the buyer’s opinion on the price after they have toured the property can potentially influence their perception of the price and impact negotiations, depending on various psychological factors such as anchoring, reciprocity, confirmation bias, social proof, and framing.

~

Richard Thaler, Author of Bestselling Books on Behavioral Economics Theory "Misbehaving" and "Nudge"

Richard Thaler, Author of Bestselling Books on Behavioral Economics Theory, “Misbehaving” and “Nudge;” Chatham House, CC BY 2.0, via Wikimedia Commons

I thought ChatGPT answered this very well. But of course, this might just be confirmation bias. Chuckle.

In my two decades on Wall Street, I noticed how people tended to sometimes irrationally make financial decisions that I later came to know as falling under behavioral economics theory. As a commercial real estate broker, I also see it all the time, and frequently an amped up version of it. As I did for publicly traded markets investors in my Wall Street days, I have developed methods to help clients make better decisions with their commercial real estate negotiations, principally by making them aware of human tendencies that can put them at a disadvantage.

I communicate on an ongoing basis with prospective buyers and their brokers that have inquired about commercial properties. I do this more than any other commercial broker I know, with quantified positive effects in the form of sales that happened from one of these  follow-ups weeks after an initial inquiry. Thus, I believe in communicating with buyers. What I definitely do not do is ask them how they feel about the price.

Follow Up Question Posed to ChatGPT

What would you estimate the effect, in percentage points of the asking price, of such a question to be on an offering price by the buyer?

ChatGPT’s Answer to the Follow Up Question

It’s challenging to provide a precise estimation of the effect of asking for the buyer’s opinion on the price in percentage points of the asking price, as it depends on numerous factors including the specific market conditions, the buyer’s mindset, the property’s perceived value, and the negotiation strategies of both parties. However, I can offer a broad range of potential effects based on behavioral economics theories and empirical observations:

1. Minimal Effect (0-5%): In some cases, the question may have a minimal effect on the offering price by the buyer. If the buyer’s opinion aligns closely with the asking price and they perceive the property to be fairly priced based on their assessment, they may not adjust their offer significantly.

2. Moderate Effect (5-15%): The question could lead to a moderate adjustment in the offering price by the buyer. If the buyer perceives the property as slightly overpriced or if the question triggers doubts about the value, they may adjust their offer downwards within a moderate range.

3. Substantial Effect (15-30%): In certain situations, the question might result in a more substantial adjustment in the offering price. If the buyer’s opinion is strongly negative regarding the price, or if the question prompts them to reassess the value significantly, they may substantially decrease their offer.

4. Negligible Effect (>30%): In rare cases, the question may have a negligible effect on the offering price if other factors, such as the property’s desirability, location, or unique features, outweigh the buyer’s concerns about the price. Additionally, if the buyer is highly motivated or if there are multiple competing offers, the effect of the question on the offering price may be minimal.

These estimations are speculative and highly variable depending on the specific circumstances of the transaction. The actual effect of asking for the buyer’s opinion on the price will likely vary case by case and may not fit neatly into these categories. Additionally, other factors such as the negotiation skills of both parties and any external market influences will also play a significant role in determining the final offering price.

~

What I gather from this is that ChatGPT, based on behavioral economics theories and empirical observations, estimates that 45-60% of buyers’ offering prices would be moderately to substantially affected by this question. I’d guess –  and I’m pulling this out of the air from my own experiences, a gut feel as much as anything – that the effect on a buyer’s offer would be in the 2-10% range, with a median effect of 4%. That’s not being persnickety; that’s real money. I’ll also guess that the question would have an affect on most buyers, probably 80-90%.

Also consider that 475.278 of the Florida Statutes requires that transaction brokers, among other things, provide limited confidentiality that “will prevent disclosure that the seller will accept a price less than the asking or listed price.” In my opinion, walking up to a buyer to ask how he feels about the price is consistent with the spirit of this, and certainly is not in line with what sellers expect. Doing this via a standard email survey is nearly the same. It is a bad idea, in my opinion.

Hawkins Commercial Realty brokers commercial properties only. Given this, we only consider things in terms of their impact on commercial transactions. The discussion herein could apply equally to commercial or residential real estate. In fact, the survey mentioned herein that I was exposed to and which led to this post was regarding a listed residential property owned by someone close to me. I’ve not seen such a post-tour survey question in the commercial world.

If you are at all intrigued about the topic of behavioral economics, there are several books I’ve read on the topic by Richard Thaler, Daniel Kahneman, and others, each of which I would strongly recommend. Some of my favorites are:

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February 11, 2024

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Construction Permit Now In Review For 25,000 Seat Stadium at Miami Freedom Park

A construction permit is in review for a stadium at Miami Freedom Park. The construction permit application was filed on December 21, with the full plans filed December 27. The new facility will have a 25,000 person occupancy, the permit states. Total hard construction cost is estimated on the permit at $225m. There are also separate filings for phased vertical permits at the site.

UM Gets FAA Approval For 310-Foot Health District Tower

The Federal Aviation Administration has approved the height of an upcoming tower planned by the University of Miami. The new tower is approved at a height of 306 feet above ground, or 310 feet above sea level, according to the February 1 approval letter. The project site is listed as 1099 NW 14th Street. UM is planning to build Project Ignite on the site, which will allow the Miller…

Related Breaks Ground on Miami Mixed-Income Project Gallery at Marti Park

Gallery at Marti Park will include residences for low-income seniors. Rendering courtesy of Related Group Gallery at Marti Park will include residences for low-income seniors. Rendering courtesy of Related Group Gallery at Marti Park will include residences for low-income seniors. Rendering courtesy of Related Group Related Group has broken ground on Gallery at Marti Park…

Developers Wrangle $127M Refi for Miami Community

The 460-unit market-rate rental community is in northwestern Miami-Dade County. Image courtesy of Terra and New Valley Terra and development partner New Valley have landed a major refinancing for their market-rate community in northwestern Miami-Dade County, Fla. The duo secured a $127 million permanent financing for their Natura Gardens development.

Terra Closes On $127 Million Refinancing Loan For ‘Natura Gardens’ At 17351 NW 94th Court In West Hialeah

Terra and New Valley, the development partners behind Natura Gardens, a new multifamily community in Northwest Miami-Dade County, have secured $127 million in permanent financing. The loan, issued by an affiliate of MF1 Capital, will be used to pay off and refinance an existing $65 million construction loan provided in 2021 by Bank OZK. Completed in the Summer…

Jackson Health System Plans $300M Renovation, Expansion at Miami Hospital Campus

Regional healthcare provider Jackson Health System has announced plans for a $300 million renovation and expansion project at its Miami hospital campus. According to the project team, the facility is the busiest emergency department within Miami-Dade County, receiving an average of 120,000 visits per year. The project will expand the campus’ existing emergency…

Nichols Architects-Designed 36-Story ‘Modera Riverside’ Tops Out At 300 SW 2nd Avenue In Downtown Miami

Nichols Architects-designed Modera Riverside has topped off in downtown Miami. As of Friday, January 26th, the 410-foot-tall structure reached its final height of 36 stories, positioning itself at the intersection of Brickell, Downtown Miami, and the burgeoning Miami River District. The residential tower boasts 428 apartments, offering a diverse range of living spaces from cozy studios…

The Calta Group Completes Allapattah Assemblage Acquisition For New Mixed-Use Transit-Oriented Project

The Calta Group… announced it has completed the acquisition of an assemblage of seven parcels in Allapattah from Enis Realty and Grupo Park for $17.2 million. The firm purchased six lots at 1415, 1433, 1435, 1453 Northwest 13th Terrace, and 1410 Northwest 14th Street in December, with the seventh and final 15,000-square-foot parcel at 1469 Northwest 13th Terrace closing…

Mixed-Use Project MidRiverVu with Multifamily, Retail, Dining, & Office Announced for Allapattah, Steps From Civic Center Metrorail Station

A mixed-use, transit-oriented project has just been announced in Allapattah. Developer The Calta Group said it paid $17.2m for an assemblage where it plans the new development. It closed on the final parcel this week. The property is a block from River Landing, and across from the site where another 28-story tower called MidRiverVu is planned with 475 apartments.

Aby Rosen’s Lincoln Road retail building hit with foreclosure lawsuit

Aby Rosen could lose a Lincoln Road retail building to foreclosure — if he doesn’t sell it first. On Jan. 30, Wilmington Trust sued an entity managed by Rosen, principal of New York-based RFR Realty, for allegeding defaulting on a $15.1 million mortgage debt collateralized by the single-story building at 318-334 Lincoln Road. The complaint was filed in Miami-Dade Circuit Court.

Metromover Could Be Expanded West To FIU Under New Proposal

An expansion of Metromover westward to FIU has become a possibility, according to Miami Today. A vote by Miami-Dade’s Transportation Planning Organization last week could eventually lead to the new people mover route. The potential east-west Metromover extension would run along Flagler Street. It would take about 35-40 minutes to get to FIU, compared…

Terra, New Valley Obtain $127M Refinancing for Natura Gardens Multifamily Community in West Hialeah

Terra and New Valley have obtained a $127 million loan for the refinancing of Natura Gardens, a newly built multifamily community located in Miami’s West Hialeah neighborhood. The co-developers are using the loan, which was provided by an affiliate of MF1 Capital, to pay off and refinance a $65 million construction loan that Bank OZK provided in 2021. Keith Kurland…

Developer Who Amassed $10B Condo Portfolio Arrested In Multimillion-Dollar Fraud Scheme

New York developer Nir Meir, who fled to Miami after his company collapsed, was arrested in South Beach Monday on an out-of-state warrant. Meir, a former executive at HFZ Capital Group, was arrested at the 1 Hotel South Beach and faces extradition to New York, where he is expected to be charged in connection to a multimillion-dollar fraud scheme, sources told…

Lease roundup: Padel courts on tap in Wellington, RFB + Fisher Potter Hodas opens Citigroup Center office in Miami’s CBD

Law firm Rottenstreich Farley Bronstein Fisher Potter Hodas opened a downtown Miami office. The firm, founded and led by Richard I. Segal and Zachary Potter, leased 6,900 square feet at Citigroup Center at 201 South Biscayne Boulevard, according to the tenant’s news release. Ryan Rosalsky of Newmark represented the tenant. Steven Hurwitz and Madeline Fine of…

Three Towers Approved in North Miami Beach

The North Miami Beach city commission voted 5-2 last month to approve a large-scale housing development that just weeks prior seemed to have little support. Developer May NMB LLC – a collaboration between New Jersey-based Accurate Builders and Kastel Development – brought forth a series of compromises in response to outcries from both commissioners and residents in December…

1986 Cold Case Murder of North Miami Beach Real Estate Developer Shirley Brant Reopened with Hopeful Advances in DNA Technology

In a chilling unsolved mystery that has haunted North Miami Beach for 37 years, the murder of Shirley Brant, a successful commercial real estate developer, remains a painful chapter in the community’s history. However, there’s newfound hope as police reopen the case, counting on advancements in DNA technology to potentially bring justice to a grieving family and a perplexed…

Apollo, Liberty Base score $56M construction loan for Dania Beach multifamily project

Apollo Companies and Liberty Base Investments secured $55.6 million in construction financing for the first phase of their 101 Dania Beach mixed-use project. Israel Discount Bank provided the loan to the joint venture, records show. 101 Dania Beach’s first phase is a planned 12-story building with 278 apartments, a cafe and 449 parking spaces. In May of last year, Apollo…

High-Rise Olakino House to Offer 83 Condos at 551 Bayshore Drive in Fort Lauderdale

In March 2023, Florida YIMBY reported on the EDITION Residences in Fort Lauderdale, a residential venture that aimed to offer 65 condos between two 11-story towers. Yet, amid various legal battles, the project never came to fruition. Now, 551 Bayshore SPE LLC owns the 1.58-acre site, and it aims to move forward with a project even larger in scope. Meet Olakino House.

Newgard Development Group Unveils Plans For 40-Story, 384-Unit Natiivo Fort Lauderdale

Miami-based Newgard Development Group has unveiled plans for Natiivo Fort Lauderdale, a 40-story resort condominium at 200 West Broward Boulevard. Occupying a prime 1.08-acre site in downtown Fort Lauderdale, the project is designed by the renowned Arquitectonica, with interiors by ID & Design International. It will feature 384 fully finished and furnished residences…

Developer Unveils Plans To Build 40-Story Natiivo Fort Lauderdale

Newgard Development Group has unveiled plans to build a 40-story tower called Natiivo Fort Lauderdale. The developer says it is the first turnkey resort condominium property in Fort Lauderdale purposely designed, built, and licensed for short-term rentals. Natiivo Fort Lauderdale is planned to include 384 condo units which will be delivered fully finished and furnished. Unit sizes…

10-Story Condominium ‘Glass House Boca Raton’ Slated To Break Ground In Q1 Of 2025

Slated to break ground in the first quarter of 2025, Glass House Boca Raton marks a significant addition to downtown Boca Raton’s architectural landscape. This venture, led by 280 E Palmetto Park Road, LLC, with Brandon Chasen and Paul Davis of the Baltimore-based Chasen Companies and Adam Gottbetter of Boca Raton-based ASG Development, will introduce the first…

Glass House Slated for 2025 Groundbreaking at 280 East Palmetto Park Road in Boca Raton

Sales have launched for Glass House, a boutique luxury condo development in Boca Raton. The 10-story building will offer 28 units, measuring 2,550 square feet to 3,900 square feet each. Per the South Florida Business Journal, buyers can have units that span an entire floor or half a floor. In-unit offerings include private terraces with built-in grills, along with various high-end…

Christ Fellowship Church pays $24M for Boca Raton Macy’s store

Christ Fellowship Church acquired a Macy’s Furniture and Mattress Gallery in Boca Raton for $23.5 million. An affiliate of the Palm Beach Gardens-based church acquired the 50,000-square-foot retail store at 9339 Glades Road, records and Vizzda show. The deal expands Christ Fellowship’s real estate portfolio in Palm Beach County, where the church purchased a Jupiter…

Developer Proposes 323-Unit Oasis Tower at 1415 Centrepark Boulevard in West Palm Beach

Index Investment has plans for a 2.2-acre parcel in West Palm Beach. Oasis Tower would measure 12 stories above grade and comprise 323 apartments, with 64 homes designated as workforce housing. Layout plans would span from studios to three-bedroom units. Communal amenities would include a swimming pool, fitness center, work-from-home space, and rooftop terrace…

NYU pays $33M for Langone medical office dev site in downtown West Palm Beach

New York University dropped $33 million for a medical office development site in downtown West Palm Beach, with plans to move its Langone Health to the new building. NYU bought the 0.6-acre property at 324 Datura Street from an affiliate of Boca Raton-based Morning Calm Management, according to records and real estate database Vizzda. The site now houses a four-story…

Video: Buligo Capital CEO Itay Goren Shares Institutional Foreign Investor Views on U.S. Commercial Real Estate Market

The Discussion: Navigating the Landscape of Commercial Real Estate. In a recent episode of “America’s Commercial Real Estate Show,” the show welcomed Itay Goren, founder and CEO of Beluga Capital, a public company based in Israel with investments in various property types across the United States. The conversation delved into the current market conditions, investor…

Video: CoStar Director of Office Analytics Phil Mobley Discusses Office Sector Outlook

The Conversation: Deciphering the Complexities of the 2024 Office Real Estate Market In a comprehensive conversation with Phil Mobley, Director of Office Analytics at CoStar, the world leader in commercial real estate information, invaluable insights into the intricate dynamics shaping the 2024 office real estate market were gained. As we delve into the multifaceted…

Adam Neumann is trying to buy WeWork, but Third Point says financing not committed

Billionaire Adam Neumann is trying to buy back bankrupt real estate company WeWork, which he founded in 2010 and was ousted from in 2019. Neumann’s counsel said it had the support of Dan Loeb’s Third Point, but the hedge fund told CNBC that it had not committed financing and discussions were only “preliminary.” Neumann’s letter, first obtained by DealBook, suggests months…

Adam Neumann Seeks To Buy WeWork, Partners With Hedge Fund Manager Daniel Loeb

WeWork co-founder Adam Neumann is reportedly trying to take back control of the coworking giant. Neumann’s real estate company, Flow Global, and hedge fund manager Daniel Loeb have been pushing for months to buy WeWork out of bankruptcy, The New York Times reports, citing a letter Neumann’s lawyers sent to WeWork on Monday. “We write to express our dismay with…”

JP Morgan on the role of cap rates in real estate

It’s critical to analyze like-kind comparables, such as property type, location, income/expense, quality/condition, durability, when looking at cap rates. Factors such as actual or projected income and expenses can also make a big difference. While they aren’t considered a primary driver of cap rates, interest rate changes can influence cap rates as the cost of borrowing will impact…

Investors Seek To Shut Down CrowdStreet After Nightingale Fiasco

A group of investors who lost their money in Nightingale Properties’ now-infamous offerings on CrowdStreet are looking for payback and focusing their attention on the real estate crowdfunding platform they say let it happen. Attorneys acting on behalf of a dozen investors who collectively had more than $1.5M misappropriated from Nightingale’s failed bid to acquire the Atlanta…

Federal Court Partially Blocks Florida’s Ban On Chinese Landownership

A controversial Florida law that bans Chinese nationals from buying certain land in the state was dealt a significant blow last week, with a federal court signaling it is unlikely to survive legal challenges. The 11th U.S. Circuit Court of Appeals in Atlanta on Thursday blocked the law from being enforced against two Chinese nationals who were in the process of purchasing property, ruling…

Federal appeals court halts enforcement of Florida law targeting Chinese real estate buyers

A federal appeals court has halted the enforcement of a controversial Florida law that restricts Chinese citizens from buying land, siding with two Chinese immigrant plaintiffs represented by the American Civil Liberties Union. The 11th Circuit Court of Appeals in Atlanta ruled that the plaintiffs demonstrated a “substantial likelihood of success” in proving that the law, championed…

International Monetary Fund Sounds Warning Over US Commercial Real Estate Market

If you want a barometer for how dark the storm clouds gathering over America’s commercial real estate market are, look no further than a recent warning by the International Monetary Fund (IMF). In late January, the IMF posted an article on monetary policy expressing deep concern over the impact of two specific threats to commercial real estate: rapidly rising and maturing debt paired…

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February 7, 2024

Video: CoStar Director of Office Analytics Phil Mobley Discusses Office Sector Outlook

The Conversation: Deciphering the Complexities of the 2024 Office Real Estate Market

In a comprehensive conversation with Phil Mobley, Director of Office Analytics at CoStar, the world leader in commercial real estate information, invaluable insights into the intricate dynamics shaping the 2024 office real estate market were gained. As the conversation delves into the multifaceted landscape of office properties nationally, it’s crucial to recognize the nuances and regional variations that define market trends and investment opportunities. Miami office property dynamics in particular can be and are indeed unique. Discussions include office property values, leasing trends, occupancy quality, lender behavior, cap rates for office property, conversions, and opportunities to look for in 2024.

1. Understanding Office Tenant Behavior and Market Dynamics

The conversation illuminated how tenant behavior continues to evolve in response to enduring effects of the COVID-19 pandemic and shifting workplace preferences. Mobley highlighted the resilient demand for office space, particularly in Class A buildings constructed within the last three to five years. These modern, amenity-rich spaces remain in high demand, reflecting companies’ preferences for contemporary work environments.

However, Mobley also noted disparities within the Class A category, distinguishing between newer constructions and “commodity Class A” buildings. While the former enjoys sustained demand, the latter faces challenges, with sublease concentrations impacting absorption rates. This nuanced understanding underscores the importance of assessing asset quality beyond conventional classifications.

Furthermore, Mobley emphasized the significance of regional variations, noting that while nationally, the office market exhibits certain trends, local dynamics may diverge. For instance, the Miami office market showcases resilience, fueled by in-migration and limited supply, contrasting with broader national patterns.

2. Geographic Variations and Market Resilience

Geographic markets play a pivotal role in shaping office real estate trends, each exhibiting unique responses to economic shifts and industry dynamics. Mobley highlighted the contrasting experiences of cities like San Francisco and Miami, illustrating the divergent trajectories influenced by local factors.

San Francisco, heavily dependent on the tech sector, has grappled with employment slowdowns, leading to increased office vacancies. In contrast, the Miami market has demonstrated resilience, driven by population influx and constrained office supply. These regional nuances underscore the importance of localized analysis in understanding market dynamics and investment prospects.

Moreover, Mobley discussed the nuanced differences between suburban and central business district (CBD) markets, highlighting how suburban offices have exhibited greater resilience amidst changing commuting patterns and health concerns. The commercial diversity and accessibility of suburban locations contribute to their attractiveness, presenting opportunities for investors attuned to local market dynamics.

3. Investment Trends in Office Real Estate and Capital Markets

Investment trends in office real estate reflect a complex interplay of factors, influenced by market sentiment, economic conditions, and risk perceptions. Mobley emphasized the divergent trends observed across property sizes and asset classes, noting distinctions between institutional-grade properties and smaller buildings targeted by owner-occupiers.

While larger properties have experienced declines in value, smaller buildings present opportunities at attractive price points, reflecting a nuanced investment landscape. Additionally, Mobley discussed the impact of rising interest rates on cap rates, highlighting the importance of granular analysis in assessing investment opportunities and navigating market uncertainties.

4. Adaptive Strategies and Silver Linings

Amidst challenges, opportunities emerge for investors and landlords willing to embrace adaptive strategies and innovative approaches. Mobley discussed the potential for office space conversions facilitated by government incentives, offering transformative possibilities at the neighborhood level. Additionally, he highlighted the quality of occupancy as a silver lining, characterized by committed tenants and stable lease terms amidst market uncertainties.

5. Looking Ahead: Strategies for Office Property Success

As stakeholders navigate the complexities of the 2024 office real estate market, strategic foresight and flexibility are paramount. By understanding regional nuances, embracing adaptive strategies, and leveraging market insights, investors can position themselves for success amidst evolving market dynamics. The conversation with Phil Mobley underscores the importance of nuanced analysis and localized understanding in navigating the intricacies of the office real estate landscape in 2024 and beyond.

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February 5, 2024

Miami Commercial Real Estate News January 31, 2024: $82M Miami Beach Office Sale Collapses; 806 Unit MF Planned Near Douglas Metrorail; LA Fitness Building Trades for $15M; More…

Nightingale’s $82M Miami Beach Office Sale Collapses In Flurry Of Lawsuits

The planned $82M sale of a Miami Beach office building owned by Nightingale Properties has failed to close, sparking a court battle between the embattled developer and the planned buyers. The dispute rose to the surface just as CEO Elie Schwartz began repaying $53M in funds he misappropriated from two crowdfunding campaigns, including… 1601 Washington Ave

Robert Rivani, Mathieu Massa cancel $82M purchase of Starwood’s former Miami Beach HQ

Robert Rivani’s Black Lion and Mathieu Massa pulled out of their $82 million purchase agreement for Starwood Capital’s former headquarters in Miami Beach. And now the partners are in a legal fight with the seller, New York-based Nightingale Properties, over a $2 million deposit.The cratered deal is the latest setback for Nightingale, which was counting on proceeds from the sale…

806 Apartments Proposed Within Walking Distance Of Douglas Road Metrorail Station

A pre-application has been filed with Miami-Dade planners for a transit-oriented mixed-use development at the Douglas Road Metrorail station. Two 31-story towers are in planning, according to the pre-application filing, with: 806 multifamily units (of which 105 will be workforce) 16,750 +/- square feet of ground floor commercial space approximately 865 parking spaces Merrick Parc…

Developer Proposes 120K SF Office With Studio Apartments In Aventura

Privé Group is planning to build 120K SF of office space in the Ojus neighborhood near the Aventura Mall.The Aventura-based investment and development firm filed a pre-application on Wednesday seeking approval from the county to build an 11-story office building and a small residential building connected by a seven-story parking garage at 18802 and 18820 W. Dixie Highway.

1.5M Square Foot Sawyer’s Walk in Overtown Now 100% Leased, Completion In Summer

The retail and office space at Sawyer’s Walk is now 100% leased, with completion expected this summer. It is the largest mixed-use project in Overtown in decades, with 1.5 million square feet. The development will include 175,000 square feet of retail, including a 50,000-square-foot Target store, a 25,000-square-foot Aldi supermarket, and new locations for Ross Dress for Less…

Plans For New Midtown Miami Building Submitted To FAA

A filing has just been made with the Federal Aviation Administration requesting height approval for a new tower in Midtown Miami. The filing was submitted in January 29, and is for the property where the Midtown 7 building is planned. According to the filing, the new tower is proposed to rise 348 feet above ground, or 363 feet above sea level. That roughly matches a previous filing…

Rock Soffer adds to Wynwood development site

Developer Rock Soffer acquired additional land for a planned project in Wynwood. An entity led by Soffer paid $7.8 million for a third of an acre at 119 Northwest 24th Street in Miami last week, according to Metro 1 broker Juan Andres Nava. Nava and Bernardita Banfi of the same firm brokered the off-market Wynwood deal. A company managed by Elias and Aida Mitrani sold the property.

Related Breaks Ground On 176 Units Next To Brickell; Gallery at Marti Park

Related Urban Development Group and Miami-Dade County held a groundbreaking ceremony this morning for Gallery at Marti Park. The 12-story development is being built a block away from Brickell. Around half of the units will be normal market-rate apartments. The remainder of apartments will be targeted towards low-income seniors under the Rental Assistance Demonstration…

Ram Realty sells LA Fitness building in south Miami-Dade for $15M

Ram Realty Advisors sold a recently completed standalone retail building leased to LA Fitness in south Miami-Dade County for $15.4 million.An affiliate of West Aventura Developers, a Sunny Isles Beach-based firm led by Marina Kessler and Gustavo Lumer, acquired the 5.3-acre retail site at 15400 Southwest 127th Avenue, records show. The buyer obtained a $3.5 million mortgage…

Historic boutique hotel in Miami Beach sold for $8.9M, set to become teacher housing

A historic boutique hotel in Miami Beach has been sold, and it will likely be converted into residences. Collinaire Luxury Suites, located at 221 Collins Ave., was sold for $8.9 million on Jan. 16. The sale was handled by Susan Gale of Miami Beach-based Gale Group International, an affiliate of Coconut Grove-based One Sotheby’s International Realty. The 9,160-square-foot property,,,

Modera Riverside Tops Off In Downtown Miami At 36 Stories

Modera Riverside has officially topped off at 36 stories, according to Nichols Architects. The apartment tower is located in Downtown Miami, just across the bridge from Brickell and the under-construction River District. The $185M Riverside Wharf complex is being built down the block. Modera will include 428 apartments, ranging from studios to three-bedroom units. Nichols is…

Belmont Village, Turnberry Break Ground on 11-Story Seniors Housing Community in Aventura

Belmont Village Senior Living has broken ground on Belmont Village Aventura in Aventura, a coastal city in Miami-Dade County. The 11-story project is being built in partnership with Turnberry and will be Belmont Village’s third location in South Florida. Located at 3510 Yacht Club Way, the property is scheduled to open in early 2026. This venture is Turnberry’s first collaboration…

Jackie Soffer’s Turnberry, Belmont plan Aventura apartments for seniors

Turnberry and Belmont Village Senior Living are planning an 11-story senior living project with 153 apartments in Aventura. Belmont Village Aventura at 3510 Yacht Club Way will mark the third project in South Florida and the first partnership with Turnberry for the Houston-based senior living developer, a press release states. Last month, A Belmont Village affiliate paid $8 million…

Codina turning former Doral offices, part of former Koger Center, into a retail site

Codina Partners is set to redevelop the final remaining older generation office buildings that were part of the former Koger Center along 87th Avenue. The new phase will introduce nearly 25,000 square feet of retail offerings and 929 parking spaces in the garages serving the retail space. The expansion will include 13 customizable units, with a rooftop deck featuring pickleball courts…

Codina Partners to Add 25,000 SF of Retail Space to Downtown Doral

Codina Partners will add 25,000 square feet of retail space to Downtown Doral, the developer’s 250-acre mixed-use community in Miami-Dade County. The new plans for Downtown Doral include the addition of 13 customizable retail units with a rooftop deck featuring amenities including pickleball courts. Plans also include 929 additional parking spaces. Established in 2005…

Codina reveals plans for final phase at Downtown Doral complex

Codina Partners is nearing the finish line at Downtown Doral. The Coral Gables-based firm will develop 25,000 square feet of retail with 13 tenant units and rooftop amenities such as pickleball courts, as well as garages with 929 spaces along Northwest 87th Avenue, according to a Codina news release. Construction of the retail is expected to start this summer and completion…

Developers Increase Size of 5050 Residences at 5050 NW 22nd Avenue in Miami

The 5050 Residences, a proposed housing development in Miami-Dade County, is now larger. Initial plans in 2020 presented a four-story building, offering 40 one-bedroom apartments, measuring about 800 square feet each. Now, revised plans have doubled the available apartments, now offering 82 residences in an eight-story building. Per the South Florida Business Journal…

Miami-Dade East-West rapid transit pivots to two new routes

A long-standing plan for bus rapid transit from downtown Miami to West Dade has been shelved as planners have decided to try two other paths to reach Florida International University. One is rail, the other an elevated Metromover along Flagler Street. The plan agreed upon last week is to try both paths and forget the aim of bus rapid transit down the center of SR 836.

Closure plan coming for Doral solid waste plant

The next major step forward with Miami-Dade County’s waste disposal project, after a fire last February destroyed most of the Doral facility, is to, by March 15, submit a closure plan to the Florida Department of Environmental Protection (FDEP), Mayor Daniella Levine Cava told Miami Today last week. While the resource recovery facility 13 miles west of downtown Miami…

Miami Beach community center a burning issue

Miami Beach’s City Commission this week is to touch on a flaming issue: the future of the South Shore Community Center, where the city’s Fire Station No. 1 now is to be placed. At the commission’s December meeting, discussion arose of an alternate location for the fire station. Many are hoping to save the South Shore Community Center at 833 Sixth St. as an online petition…

1,000-square-foot pedestrian bridge to link Morningside buildings

A pedestrian bridge totaling 1,000 square feet has been approved to rise over Northeast 55th Street off Biscayne Boulevard in Miami’s Morningside neighborhood to facilitate a two-building, mixed-use development. The Miami City Commission passed two resolutions related to Morningside Place, a planned retail and residential project comprised of two three-story buildings…

Doral industrial real estate at top of the Southeast market

Doral’s commercial real estate market continues to expand as the city welcomes new tenants and office spaces are repurposed. On the industrial side, which in Doral is referred to as Miami Airport West, asking rates on market rents are up when comparing December 2023 to December 2022, said Carlos Villanueva, a managing broker with The Keyes Company. “The average asking rent…”

Steven Meiner: Miami Beach mayor targets open government, public safety

In a historic runoff election in November, Steven Meiner was elected the 39th mayor of Miami Beach. His four-year tenure as commissioner was the catalyst for his path to the office of mayor, marked by his passion for promoting the safety and quality of life for residents in Miami Beach. In his new role, Mr. Meiner wants to continue serving his community as an active…

Michael Lewis: Give government a refresher course on why tourism is vital

A government attitude problem could harm taxpayers. The ugly attitude is that tourists are a nuisance and cost us money. Elected officials sometimes say almost that. What if we complained that a mushrooming financial industry that pours money into our economy is filling offices that should be left to other businesses, and that the newcomers are driving up prices of homes and…

Midtown Miami’s 228-Unit The Standard Residences Gets Master Permit, Construction Underway

The Standard Residences in Midtown Miami has been issued its master permit and construction is underway. The project is now 90% pre-sold. A groundbreaking ceremony for the project took place in April 2023, and a $45M construction loan was issued by Bank OZK in October. The Standard Residences in Midtown Miami is planned to include: 228 residential condo units 11,000 sf…

343-Unit Downtown Miami Tower Without Parking Garage Close To Topping Off

A 39-story downtown Miami that is being built without a parking garage is now nearly topped off, according to photos by Phillip Pessar. The photos taken yesterday appear to show the shell of the tower now at about level 34. That is around 13 floors higher than photos showed in mid-October. A total of 343 condos are being built, which will be permitted for rental on a short term…

Prologis Signs Seaboard Marine to 308K SF Lease Renewal at Industrial Park in Medley, Florida

Prologis has signed Seaboard Marine Ltd. to two lease renewals at Prologis Palmetto Tradeport, an 880,000-square-foot industrial park in Medley, a city in Miami-Dade County. The two leases, for facilities located at 7800-7890 NW 80th Street and 8001 NW 79th Avenue, total 308,000 square feet. Brian Smith of JLL represented Prologis in the lease transactions. Jonathan Kingsley…

Five Times The Size Of Titanic, New World’s Largest Cruise Ship Now Based In Miami

Royal Caribbean’s Icon of the Seas set sail on its maiden voyage from PortMiami over the weekend. It is now officialy in service as the world’s largest cruise ship. Inter Miami’s Lionel Messi presided over a naming ceremony for the ship at PortMiami before it set sail. The ship is about five times the size of the Titanic, and cost $2b to build. It can hold nearly 10,000 people…

‘Longest Pile Driver Ever In Florida’ Working At 750-Foot St. Regis Sunny Isles Beach

Contractors working on the foundation for first tower at The St. Regis Residences, Sunny Isles Beach are using the “longest pile driver ever in the state of Florida,” according to a newly released construction update from Fortune International Group, which is overseeing sales. The first tower is planned to rise 62 stories and 750 feet, the tallest ever in Sunny Isles. A second tower…

Abinger Capital files to foreclose on ex-Best Buy store in Pinecrest

After Best Buy said “bye-bye” as a tenant, a retail landlord could lose his big box store in Pinecrest to foreclosure. An affiliate of Abinger Capital, a New York-based real estate investment management firm, is suing an entity managed by Azhar Said in Miami for allegedly defaulting on a $11.5 million mortgage. In the complaint filed this week, Abinger alleges Said’s Maria Investments…

Cranes Coming Back To Royal Caribbean PortMiami HQ Office Complex For 4,000 Employees

It appears that construction cranes will soon return to the Royal Caribbean headquarters office complex at PortMiami. According to a filing with the FAA earlier this month, five cranes are planned to be installed at the site, including four tower cranes and one mobile crane. The cranes will range in height from 212 to 305 feet above ground. The work schedule for the cranes is listed…

Terra And Grass River Secure $245 Million Permanent Loan For 23-Story ‘Grove Central’ Mixed-Use Development in Miami

Miami-based developers Terra and Grass River have secured $245 million in permanent financing for Grove Central, a newly completed mixed-use development at 2800 Southwest 27th Terrace in Miami’s Coconut Grove neighborhood. The loan, issued by JP Morgan Chase & Co., will be used to pay off the development’s existing construction loan, provided in 2021 by Apollo…

Terra, Grass River score $245M refi for Grove Central

Terra and Grass River secured a $245 million refinancing for Grove Central, a mixed-use retail and apartment project they recently completed in Miami’s Coconut Grove. J.P. Morgan provided the permanent debt for Grove Central, replacing a $204.5 million construction loan Apollo Global Management provided in 2021, according to a spokesperson for the developers.

Turnberry Breaks Ground On 33-Story ‘ONE Park Tower by Turnberry’ At SoLé Mia In North Miami

Turnberry, an Aventura-based real estate developer, has broken ground on ONE Park Tower by Turnberry. The 33-story tower, located at 2411 Laguna Circle in North Miami – within the multi-billion dollar, 184-acre master-planned community of SoLé Mia, is slated to offer 299 residences. Over 50% of the units were sold within the first 18 months of sales. The condominium complex…

Groundbreaking Ceremony Held For 33-Story One Park Tower at SoLé Mia

Developer Turnberry held a groundbreaking ceremony for the 33-story One Park Tower At SoLé Mia. A total of 299 residential condo units are planned. Demand has exceeded expectations, with over 50% of residences now sold, the developer said. The tower is being built in front of the Laguna Solé, a crystal clear swimmable lagoon the size of 21 Olympic-sized pools. Residents will have…

Miami-Dade mayor’s $2.5B bond proposal targets affordable housing

Miami-Dade Mayor Daniella Levine Cava proposes a $2.5 billion bond program for county projects, including affordable housing. The “305 Future Ready” borrowing plan would be financed through an existing property tax that already repays county debt, and would require voters’ approval through a referendum, the Miami Herald reported. Levine Cava, who is up for reelection…

Celebrity hotspot Vous Church opens Miami Gardens sanctuary

Vous Church, a celebrity hotspot led by the pastor who officiated Kanye West and Kim Kardashian’s 2014 wedding, expanded to Miami Gardens. Vous bought the 100,000-square-foot sanctuary at 17801 Northwest Second Avenue for $12 million from Trinity Church, according to records. The buyer assumed a mortgage from the seller with a $9.6 million balance maturing in 2041.

Sterling Bay, Key International to Develop Miami Office Tower

Rendering of an 848 Brickell balcony. Image courtesy of Sterling Bay Rendering of an 848 Brickell balcony. Image courtesy of Sterling Bay Rendering of an 848 Brickell balcony. Image courtesy of Sterling Bay Sterling Bay, a national real estate development firm known for building creative office and mixed-use projects, is teaming up with Key International…

Sterling Bay Joins Key International As Co-Developer Of 51-Story 848 Brickell In Miami’s Financial District

Key International, led by Diego and Inigo Ardid, has announced Sterling Bay, a national real estate development firm known for its pioneering approach to developing award-winning creative offices, as the co-development partner of 848 Brickell, a 761-foot-tall Class A creative office and retail tower proposed in Miami’s Brickell neighborhood. Sterling Bay joins Key International…

Sterling Bay, Key International Propose 51-Story Office Tower in Miami’s Brickell District

Sterling Bay has joined Key International as a co-developer for 848 Brickell, a proposed 51-story mixed-use tower in downtown Miami’s Brickell district. Plans for the Class A tower include 750,000 square feet of creative offices, structured parking for 1,000 vehicles and 7,500 square feet of ground-level retail space. The project is pursuant to zooming approval by Miami-Dade County.

Brightline Carries 2M Passengers In 2023, Up 67%

Brightline says it passed 2 million passengers in 2023. A total of 2,053,893 passengers rode Brightline in 2023 (up 67% over 2022), generating revenue of $87.7 million (up 174% over 2022). The company launched service to Orlando in late September, and continues to see strong demand for the new long-haul trains. A total of 115,683 passengers rode Brightline’s long-distance service…

Notable Retail Leases Signed in South Florida Q4 2023

South Florida Retail Real Estate Leases 2023 We’ve compiled a comprehensive list of the top retail leases signed by square footage in South Florida during 2023. This past quarter was busy overall, and there were a few big box leases signed and sealed. Despite the sentiment that the traditional retail market is taking a hit due to several factors, particularly e-commerce and…

The 93 Ocean High-Rise Residential Slated for 9317 Collins Avenue in Surfside

In 2022, Florida YIMBY reported on the 93 Ocean, a high-rise residential tower planned for Surfside, Florida. Now, our sources indicate that the project is one step closer to fruition. Per the South Florida Business Journal, the 12-story tower will replace Regent Palace Condominium, a 34-unit complex erected in 1951. Multiplan Real Estate Asset Management purchased the 37,456 sf…

Trump could claim over $320M in tax deductions thanks to Doral golf course deal

Donald Trump may claim more than $320 million in federal income tax deductions, thanks to an easement that restricts development of the Blue Monster golf course at Trump National Doral Miami. The Trump Organization struck a deal in late 2022 to donate the development rights for the 184-acre course to the city of Doral. The Blue Monster is one of four golf courses at the…

Lease roundup: Morgan Law relocating within Coral Gables, Bondi Sushi opening in Oakland Park

Two law firms and a spa leased at Amerant Bank’s headquarters building in Coral Gables. In the biggest deal, The Morgan Law Group took the entire 20,000-square-foot fifth floor, where it will move in the second quarter from 55 Merrick Way in Coral Gables, according to a news release from the landlord’s broker. Law firm Kelley Kronenberg took 9,000 square feet on the fourth floor…

The Dixiana Apartments Planned for 182 Dixiana Street in Hollywood

Our sources point to an exciting residential venture slated for Hollywood, FL. Neal Development and Guardian Properties have joined forces and founded affiliate GN Dixiana LLC. The pair hope to move forward with a 10-story complex that will replace a smaller, one-story housing development built in 1945. Per the South Florida Business Journal, the mid-rise project…

Lennar Corp. Moves Ahead with Tuscan Springs at 18452 Pines Boulevard in Pembroke Pines

Miami-based Lennar Corp. has purchased a 6.47-acre parcel in west Pembroke Pines. The end goal? A townhouse community named “Tuscan Springs.” Per the South Florida Business Journal, the developer initially proposed the development in 2023, where it wanted a rezoning change for the parcel. Upon full buildout, the residential complex will offer 50 three-bedroom townhomes…

The Era Apartments Could Offer Workforce Housing at 2125 S. Andrews Avenue in Fort Lauderdale

Affiliated Development is moving forward with a residential venture in Broward County. At full buildout, the Era Apartments would offer 400 homes, 3,650 square feet of retail, and 549 parking spots. Presently, the Fort Lauderdale-based developer is requesting $5.5 million from the county to include workforce housing as part of the project…

Kaplan Residential wins approval for 190-unit multifamily development in Wilton Manors

Kaplan Residential won approval for a six-story mixed-use development with 190 apartments in Wilton Manors, marking its first major project in South Florida. The mixed-use multifamily development, to be called Generation at Wilton Manors, will be built on 3.6 acres at 1209 Northeast 24th Street, 1225 Northeast 24th Street, 1401 Northeast 24th Street, 2449 Northeast 13th Avenue…

Grass River plans 252-unit mixed-use redevelopment of Wilton Manors shopping center

Grass River Property won approval to raze part of a shopping center in Wilton Manors to make way for a six-story, mixed-use building with 252 apartments. The Wilton Manors City Commission on Tuesday voted unanimously to approve a development agreement between the city and Miami-based Grass River, along with a public access easement agreement and a plat amendment…

Portopiccolo buys Regents Park assisted living facility in Sunrise

A family office bought the Regents Park of Sunrise for $26.7 million, marking continued investment appetite for assisted living facilities. The Portopiccolo Group purchased the one-story, 120-bed property at 9701-9711 West Oakland Park Boulevard from an affiliate of Healthcare Realty Trust, according to records and real estate database Vizzda. The buyer secured loans for $67.4 million…

Fairstead buys affordable housing complex in Lauderhill, starts renovations

Fairstead bought an affordable housing complex in Lauderhill for $26.5 million, marking continued investment in South Florida’s low-income rental market. The New York-based firm, led by Jeffrey Goldberg, purchased Lauderhill Point at 3144-3146 Northwest 19th Street and started renovating the 177-unit property, according to records and real estate database Vizzda. An affiliate…

GL Homes drops $29M on 120 acres in Westlake

GL Homes dropped $29.4 million on a 120-acre swath of farmland in Westlake, Palm Beach County’s newest municipality. Records show an affiliate of the Sunrise-based homebuilder bought the land between 140th Avenue North and Seminole Pratt Whitney Road from Silver Lake Enterprises, a Florida entity managed by Philomena Liu, Kin Man Tse and Ryan Liang. Liang is a former…

JP Morgan 2024 commercial real estate outlook

Key takeaways: Multifamily and neighborhood retail stay strong, while industrial may be starting to soften. The future of office buildings remains unclear. The future of interest rates is uncertain as the economy begins to slow down. It’s critical that owners, operators and investors across commercial real estate optimize their cash so they can capitalize on opportunities as they…

IBM Tells Employees To Relocate Near a Corporate Hub or ‘Separate’ From Company

IBM employees who don’t live close enough to commute to an office have been asked to relocate or leave the tech giant in a sign of an increasing crackdown on remote work in favor of in-person attendance. The Armonk, New York-based computer hardware maker is immediately requiring most U.S.-based staff to report to an office or corporate hub at least three days weekly…

CRE Transaction Volumes Nationally Plummeted In 2023, But Prices Were More Resilient

Commercial property sales volume sank like a stone in 2023, tallying just $374.1B, a 51% drop from the year before, according to MSCI Real Capital Analytics 2023 Capital Trends report. The conditions were “reminiscent of the worst parts of the Global Financial Crisis,” the report’s authors wrote. Apartments saw the largest decline in sales volume year-over-year, totaling $119B in 2023…

Apartment Defaults Nationally To Double This Year, Fitch Predicts

A major ratings agency is predicting that the U.S. multifamily market is on the verge of a surge in loan defaults. Apartment delinquencies for CMBS loans could hit $1.3B this year, exceeding the losses seen during the height of the pandemic, Multifamily Dive reported, citing a Fitch Ratings report. Apartment landlords are experiencing headwinds due to a record onslaught of new supply…

U.S. Apartment Occupancy Hits Decade Low Nationally

U.S. apartment occupancy hit a 10-year low at the end of 2023, as sizable new supply volumes weighed on market fundamentals. But some markets bucked that trend. After the worst of the COVID-19 pandemic, as the country started to open back up at the end of 2021 and the first few months of 2022, apartment occupancy – and prices – saw a drastic hike. Feeling renewed, developers…

With Capital And Patience Dwindling, Short Sales Begin To Hit The Office Market Around the USA

Investors raised billions of dollars last year as they awaited distressed real estate assets to come to market at steep discounts. However, they found few opportunities as office owners largely found ways to hold on to their properties. That’s now starting to change. Office buildings across the country are starting to trade at significant markdowns, in many cases selling for less than…

The office meltdown will result in $1 trillion of losses, real estate billionaire Barry Sternlicht says

Billionaire Starwood CEO Barry Sternlicht sees losses on office properties hitting $1 trillion, per Bloomberg. The billionaire slammed the Fed for leaving a “serious mess” in the real estate market. Office values have plummeted as remote work proves to be a lasting legacy of the pandemic. The ailing office market is headed for $1 trillion of losses, billionaire and Starwood Capital…

What are the opportunities for commercial real estate in 2024

In 2024, the commercial real estate outlook is optimistic, thanks to lower interest rates, Florida’s robust economy, and a significant capital influx into South Florida. I recently participated in the CCIM Commercial Real Estate Outlook Conference, an event where industry leaders converge on the latest trends and insights within the capital market. The panelists portrayed..

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January 31, 2024

Chart: The Remarkable Post-COVID Run of Industrial Property Prices in Miami-Dade

Miami-Dade Average Industrial Sales Price Since COVID | Scaled to 100 Data from Costar, 1/23/24

The chart illustrates the dynamic changes in the average selling price of industrial property in Miami-Dade since 2019 Q4, a date just prior to the onset of COVID, with each data point scaled relative to the baseline value of 1.00 at the end of 2019. Several notable trends and patterns emerge from the dataset.

In the early stages of the dataset, from 2019 Q4 to 2020 Q3, there seems to be a gradual decline in the average selling price, reaching its lowest point of 0.91 in 2020 Q3. This period likely reflects the initial impacts of the COVID-19 pandemic on the real estate market, with economic uncertainties influencing property prices. At that time, it seemed everyone was anxious about what the shutdown would mean for the economy overall and thus commercial real estate. I had a few calls from buyers asking for any distressed deals that arose, convinced that severe issues were just around the corner, and recall multiple buyers being agitated because my sellers would not respond to their well below asking price offers. The consensus was almost completely “uh-oh;” there was really nobody thinking “here we go” in an optimistic sense. For brokers, the phones stopped ringing.

However, starting from 2020 Q4, there is a noticeable rebound, and the average selling price experiences an upward trajectory. The rebound continues through 2021, with substantial increases in 2021 Q1, reaching 1.37, and 2021 Q4, reaching 1.52. This suggests a recovery and potential resilience in the industrial property market as economic conditions stabilize / heat up.

The year 2022 shows further fluctuations but generally maintains an upward trend. Notably, 2022 Q2 sees a significant spike with a scaled price of 1.75, indicating a notable surge in the average selling price during that quarter. Never underestimate the power of The Fed.

As we move into 2023, the dataset continues to depict volatility, with peaks and troughs in subsequent quarters. The scaled price reaches its highest point of 2.09 in 2023 Q1, underlining a potential period of robust growth. However, by 2023 Q4, there is a slight dip, emphasizing the dynamic nature of the real estate market and perhaps a bit of data noise. Prices appear to be moving around a range approaching double what they were pre-COVID. Higher financing costs have no doubt have slowed the price increases.

In the most recent data point, 2024 Q1 QTD, the scaled price stands at 1.94, perhaps showcasing a continuation of positive momentum in the early days of the year, though more likely only a reflection of limited data that happens to be on the high side. Overall, the full dataset suggests a resilient industrial property market in Miami-Dade, characterized by fluctuations influenced by external factors such as the COVID-19 pandemic and broader economic conditions.

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January 29, 2024

Video: Buligo Capital CEO Itay Goren Shares Institutional Foreign Investor Views on U.S. Commercial Real Estate Market

The Discussion: Navigating the Landscape of Commercial Real Estate

In a recent episode of “America’s Commercial Real Estate Show,” the show welcomed Itay Goren, founder and CEO of Beluga Capital, a public company based in Israel with investments in various property types across the United States. The conversation delved into the current market conditions, investor sentiments, and emerging trends in commercial real estate (CRE) throughout the United States. Goren’s views on debt, equity, and performance of retail, industrial, senior housing, and multifamily properties moving forward were shared in this wide ranging discussion.

Commercial Real Estate Market Dynamics Amidst Global Challenges

The dialogue commenced with a reflection on the challenging times facing Israel, where Beluga Capital is based, with both hosts expressing solidarity with those affected by ongoing crises. Despite the backdrop of global uncertainties, the focus shifted swiftly to the CRE landscape, with Goren highlighting the evolving dynamics of raising capital in the current market.

Shifting Investor Appetites and Market Opportunities

Goren pointed out the noticeable shift in investor appetite compared to previous years, attributing this change to increased interest rates and a broader range of investment alternatives. However, despite the subdued appetite, Beluga Capital managed to secure investments and close deals, indicating pockets of opportunity amidst the market flux.

Impact of Federal Reserve Policies and Financing Landscape

Discussion then turned to the recent Federal Reserve announcements regarding interest rates, with Goren noting a subsequent easing in treasury rates and increased lender flexibility. This shift in financial dynamics hinted at a potentially more active market in the coming year, driven by renewed investor interest and improved liquidity in the debt market.

Projections for Property Performance and Investment Strategies

Looking ahead, Goren outlined a cautiously optimistic outlook for property performance, citing factors such as upcoming property deliveries and the impact of interest rate adjustments. Despite short-term challenges, Beluga Capital remained bullish on sectors such as multifamily, senior housing, and industrial, buoyed by favorable supply-demand dynamics and anticipated rent increases.

Not part of the discussion but notable for this site given that Hawkins Commercial Realty is Miami based is that the performance of Miami industrial and multifamily properties have been very strong. The run up in prices in Miami industrial property were recently highlighted in a post, Charting the Remarkable Post-COVID Run of Industrial Property Prices in Miami-Dade.

Navigating Sectoral Opportunities and Risks

The conversation delved into specific sectors, with insights shared on senior housing, multifamily, industrial, and retail properties. Goren emphasized the resilience of grocery-anchored retail centers and highlighted opportunities in smaller industrial properties, driven by last-mile logistics demand and favorable occupancy trends.

Construction Cost Dynamics and Investment Goals

Addressing construction cost dynamics, Goren acknowledged recent cost escalations but expressed optimism for a potential moderation in the near future. Looking ahead to 2024, the overarching goal for Beluga Capital was to capitalize on market opportunities across diverse property types while maintaining a balanced approach to risk and return.

Global Investment Trends and Foreign Capital Inflows

In response to queries about foreign investment trends, Goren noted an increasing allocation of capital from foreign investors into the U.S. CRE market. He highlighted the U.S. market’s attractiveness due to its transparency, liquidity, and stability, indicating a reservoir of capital poised for deployment in the coming months.

Closing Remarks: The Ever-Evolving Real Estate Landscape

As the conversation drew to a close, Goren underscored the enduring appeal of real estate as an asset class and the resilience of the U.S. market amidst global uncertainties. The dialogue concluded with a nod to the importance of continuous learning, adaptation, and a spirit of optimism as stakeholders navigate the ever-evolving landscape of commercial real estate.

In summary, the discussion between the show host and Itay Goren provided valuable insights into the current state of the commercial real estate market, investor sentiments, and emerging trends. Despite challenges, opportunities abound for astute investors willing to navigate the dynamic terrain of the CRE landscape.

A Bit About Itay Goren & Buligo Capital

Itay Goren stands as a pivotal figure within Buligo, holding the position of Chief Executive Officer. His role encompasses a wide array of responsibilities, ranging from strategic planning and investment analysis to business development and fundraising initiatives. With a wealth of expertise in the realm of private equity real estate, Mr. Goren boasts a distinguished track record in sourcing, negotiating, structuring, financing, and successfully closing high-value transactions, investment programs, and funds.

Before co-founding Buligo, Mr. Goren held a prominent position overseeing a multi-division operation within a prominent Israeli investment firm for over 11 years. During this tenure, he steered substantial equity investments exceeding hundreds of millions of dollars on behalf of major institutional investors and high-net-worth individuals. His academic background is equally impressive, having graduated magna cum laude from Tel Aviv University with a BA in Economics and a Bachelor of Laws. Additionally, he holds a Master of Business Administration from Northwestern University’s esteemed Kellogg School of Management.

Beyond his professional accomplishments, Mr. Goren has also served with distinction as a Major in the Israeli Defense Forces, further exemplifying his leadership capabilities and commitment to service.

Itay Goren’s firm, Buligo Capital, stands out as a prominent player in the global real estate investment sphere, offering investors opportunities to participate in diverse ventures alongside seasoned operators. Boasting a strategic presence with offices in Israel and the United States, coupled with strategic alliances spanning the globe, Buligo Capital provides its clientele with a comprehensive array of investment avenues tailored to varying risk profiles.

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January 28, 2024