Video: PwC Partner Mitch Roschelle Discusses Coronavirus Impact on Economy, Commercial Property

The is significant and growing international concern with regard to the potential human and economic impact of coronavirus, also referred to as COVID-19. Mitch Roschelle, Partner withPricewaterhouseCoopers , joins America’s Commercial Real Estate Show to talk about how markets may react and in turn how commercial real estate might be impacted.

Video: Miami developers Perez, Karmely, Defortuna discuss economy, dealing with coronavirus

In this video prominent MIami area developers Jon Paul Perez of The Related Group, Edgardo Defortuna, and Shahab Karmely of KAR Properties discuss dealing with coronavirus with Amir Korangy of The Real Deal. Among the topics discussed are the things that most keep the awake at night, i.e. their biggest concerns, how they plan to move forward on…

Miami’s Small, Boutique Office Market Could Be Coronavirus-Resistant

The year was off to a sweet start for the Miami office market: 100K SF of positive absorption focused in downtown Miami and Brickell, much of that driven by move-ins of WeWork and Industrious, according to JLL. Icahn Enterprises moved into the penthouse in the new Milton Tower trophy office property at 16690 Collins Avenue in Sunny Isles Beach. The average…

US hotel occupancy inches down to 21%

The hotel industry’s nightmare continued last week as occupancy nationwide dipped to a meager 21 percent. The country’s occupancy rate for the week ending April 11 was one point worse than a week ago and 70 percent lower than a year ago, according to the hospitality data firm STR. Revenues per available room, or RevPAR, declined nearly 84 percent from…

Non-traded real estate investment trusts limit withdrawals amid investor rush to retrieve cash

Fund managers for non-traded REITs are limiting withdrawal amounts to maintain some liquidity and avoid having to sell assets at a loss (Credit: iStock) Thousands of people who poured billions of dollars into non-traded real estate investment trusts are now discovering that taking money out is a little more complicated. Many fund managers are limiting how much cash…

March retail sales plunge is worst on record

Last month saw the largest one-month drop in sales in three decades of record-keeping. March was the worst month for U.S. retailers on record. Sales dropped a stunning 8.7 percent from February as the coronavirus pandemic caused governments to close non-essential businesses, unemployment to skyrocket and millions to hunker down…

‘Pretty Catastrophic’ Month for Retailers, and Now a Race to Survive

“Total sales, which include retail purchases in stores and online as well as money spent at bars and restaurants, fell 8.7 percent from the previous month, the Commerce Department said Wednesday. The decline was by far the largest in the nearly three decades the government has tracked the data. Even that bleak figure doesn’t capture the full impact of the sudden…

Miami bankers work to pull out of economic slide, plan ahead

The effects of Covid-19 have reached far and deep, spanning the globe and impacting individuals and businesses, governments and organizations of all types and sizes. But while the hurt is universal, albeit of varying severity, how successfully localities recover from what many are calling the greatest crisis of our lifetime will depend on a variety of factors. Key to that…

Processing small business loan program should get smoother

While the distribution of government aid to small businesses has been cumbersome in Florida, the process should be running more smoothly in the coming days, said the top executive from Florida Bankers Association. Alex Sanchez, the CEO and president of the organization, said bankers have been working around the clock to serve businesses in need of the loan…

Two key recovery acts

Coronavirus Aid, Relief and Economic Security Act The $2 trillion CARES Act offers help to businesses, individuals, federal agencies, state governments and local governments. Here are some of its provisions: • Paycheck Protection Program: The $350 billion program encourages businesses to keep workers employed by providing government-backed loans from…

“Be very careful what you ask for,” top broker warns borrowers seeking relief

As thousands of commercial real estate borrowers look for help to make their monthly mortgage payments, they should do so cautiously. “We’re advising our borrowers, be very careful what you ask for,” warned Ackman Ziff Real Estate Group president Simon Ziff. “Make sure you can back it up and have a need for it, or you may find yourself in special [servicing]…

Knotel says one-third of members want rent relief

Roughly one-third of Knotel’s members are looking for a break on rent, the flex office space company disclosed Tuesday. As Knotel grapples with its own financial woes, the figure sheds light on the dilemma facing co-working firms: a sudden loss of income from tenants, including many small businesses, as the coronavirus pandemic keeps people home across the…

Starwood Gets $76M Loan For New Miami Beach HQ

When Starwood Capital Group moved its headquarters from Greenwich, Connecticut, to Miami Beach in 2018, it bought prime South Beach property from Avis, the rental car company. It has now secured financing to build a six-story headquarters for itself. A Starwood subsidiary has secured a $76.16M construction loan from Citizens Bank to build a 144K SF building…

Live Nation wants to renegotiate rents

Live Nation Entertainment is live music’s dominant force and among the biggest occupiers of space in the events business. But the company is now looking to make big spending cuts, including renegotiating on $2.3 billion in lease deals. The Beverly Hills-based company said in a Securities and Exchange Commission filing Monday that it hammered out a new…

Retail landlords are creating a blacklist of tenants who aren’t paying rent

While mom-and-pop retailers may be feeling the economic pain of coronavirus the hardest, some bigger companies have decided to forgo rent payments as well. But landlords aren’t buying it. Owners of malls and shopping centers have been putting together a “blacklist” of financially stable tenants that haven’t met their April rent obligations, the Wall Street…

How Will Lenders Respond to COVID-19?

Financial institutions face unprecedented measures in unprecedented times April 1 was a key milestone on everyone’s mind—the first date that many payments would be due in a COVID-19-weary world on lockdown. In the weeks leading up to that date, the Federal government negotiated, passed, and signed a monumental $2 trillion relief package. The post How Will…

Don Peebles: A leader’s role “is to look at things in balance”

Flattening the curve by keeping most of the country at home is what medical experts believe will allow the U.S. to recover from the coronavirus pandemic. But according to developer Don Peebles, doing so “with blinders on” will create an economic disaster that could be riskier than getting people back to work. “There are 17 million new unemployed Americans…

Only 20% of Related Group’s commercial tenants paid rent in April

Only 20 percent of the Related Group’s commercial tenants paid their rent in April, executive Jon Paul Pérez said during The Real Deal’s webinar on Friday. “If you get 20 percent you’re sort of happy and jumping up and down,” he said. About 90 percent of Related’s multifamily tenants paid rent, which Pérez said is much higher than the 50 percent the company…

Q&A – Commercial Real Estate Leasing – Remedies

Q.  If a tenant breaches the lease:  Are there any implied remedies available to the landlord, such as the acceleration of rent? Is there a limitation on the landlord’s ability to exercise self-help? Is there a common form of an eviction proceeding and, if so, what is the typical length of time for the proceeding? Are there specific mechanisms for expedited remedies…

Q&A – Commercial Real Estate Leasing – Rent and Security Deposits

Are there any legal restrictions on:  How much rent the landlord may charge? Whether certain operating expenses (or other additional rent) may be passed through to the tenant? Maximum Rent Under Florida law, there are no restrictions on the rent a landlord may charge on commercial leases. Operating Expenses There is no limit to the operating expenses…

Mounting bills could mean a wave of restaurant closures this summer

Many restaurant owners who’ve been forced to close their businesses because of the coronavirus pandemic wonder if they’ll be able to hold out long enough to re-open. Bills are mounting and many worry they won’t be able to pay up even with support through the federal government’s massive $2 trillion stimulus package, according to Bloomberg. That could mean…

Miami Industrial Real Estate Quarterly Market Report 1st Quarter 2020

The Miami industrial market starts Q1 2020 with a 4.7% vacancy rate and $12.53 per SF average (gross) lease rate. There was 1.4 million SF of positive absorption over the past 12 months, with deliveries totaling 3.7 million SF in the same time. Two significant deals include leases signed by Home Depot with a move-in date of September 2020 with 1.1 million SF in the…

Office Tenants of All Sizes Are Asking for Rent Relief. Some Institutional Owners Are Offering Them Deferrals

With the COVID-19 shutdown interrupting business operations across a large swaths of industries, office tenants have begun seeking rent relief. For example, Kenneth S. Fields, Los Angeles attorney at law firm Greenberg Glusker, says his office tenant clients are asking if they can stop paying rent, and landlord clients are seeking advice on what to do if tenants stop paying.

Money, forbearance, and evictions: Landlords want it all from Washington

Trade groups representing the biggest residential players have asked the federal government for an array of relief measures, while also requesting the right to keep evicting renters. In an April 7 letter addressed to the White House Coronavirus Task Force and Congress, a dozen landlord and developer groups called for the creation of an emergency rental assistance…

South Florida contractors on edge over threats of shutdown

Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images) Construction firms across South Florida are on edge over threats of a shutdown. Earlier this week, Miami Beach shut down construction sites for failing to follow social distancing guidelines, issuing stop work orders for two commercial projects. At the same time, the city of Miami issued an emergency order…

Missed loan payments to approach Great Recession levels: Fitch

Missed loan payments will approach Great Recession highs, a new report finds (Credit: iStock, Getty Images) Missed loan payments are expected to approach Great Recession levels in the third quarter of 2020, part of the continuing fallout from a U.S. economy that remains virtually frozen. The hotel and retail sectors are expected to have the highest delinquency…

South Florida property owners offer free rent in April, May

Some South Florida landlords are going beyond rent deferments and case-by-case deals, as the majority of tenants struggle to make rent this month and next. William Kakon, who owns 14 retail and multifamily properties in Miami-Dade and Broward counties, is forgiving rent for his commercial and residential tenants in April and May, plus creating a fund for families…

These US real estate titans made Forbes’ billionaires list

From left: Donald Trump, Jane Goldman of Solil Management, Jorge Perez of Related Group, Stephen Ross of Related Companies, Jeff Greene, Brian Chesky of Airbnb, Sam Zell of Equity Group Investments, Jeff Sutton of Wharton Properties with Adam Neumann, former WeWork CEO. More than 2,000 people — and hundreds of U.S. real estate titans — cracked Forbes…

Weiss Group scores $21M loan for mixed-use project near MIA

David Eyzenberg and a rendering of Towers at Blue Lagoon Weiss Group of Companies scored $21.3 million in bridge financing to build a mixed-use, multifamily and hotel project at the Blue Lagoon office complex near Miami International Airport. The financing will replace an existing bridge loan and fund predevelopment costs for the Kobi Karp-designed Towers at…

Eyzenberg & Co. Arranges $21.3M Construction Loan for Mixed-Use Development in Miami

Eyzenberg & Co. has arranged a $21.3 million construction loan for the Towers at Blue Lagoon, a planned mixed-use development featuring a multifamily community and hotel space. The borrower and developer, the Weiss Group of Cos., will build Phase I of the project to include 428 multifamily units across two buildings. The property will offer studio…

Fed ramps up lending with new $2.3 trillion program

The Federal Reserve is injecting an additional $2.3 trillion in loans to bolster a frozen economy, which continues to be on lockdown as the spread of the coronavirus accelerates. Thursday’s financing announcement came as the U.S. Department of Labor reported that another 6.6 million Americans filed jobless claims last week. That figure was down from the adjusted prior…

Norman Braman, Jorge Perez and homeowner groups sue to stop Edgewater jai alai facility

Billionaire auto dealer Norman Braman and developer Jorge Perez have teamed up with two Miami homeowner groups to file a lawsuit aimed at short-circuiting a settlement agreement between the city of Miami and the owner of Magic City Casino. It’s their latest effort to derail plans for a jai alai fronton on land in Miami’s Edgewater neighborhood…

Hotels Are Being Impacted by COVID-19. What Can Owners and Lenders Do to Limit the Fallout?

COVID-19 is causing tangible disruption throughout the hotel industry. Daily decreases in travel and cancellations of meetings lead to quick drops in occupancy, followed by hotel pricing decreases (often irrational) that further exacerbate market jitters. A hotel market rate and occupancy shopping app, MSight, estimated downtown Los Angeles hotels had a…

Pandemic may bring the end of the office as we know it

If and when you return to your office after the novel coronavirus pandemic, you’ll probably notice some differences. Upon entering your building, the doors may open automatically so you don’t have to touch the handles. Before you board your elevator, you might tell the elevator where you’d like to go, rather than pressing the many buttons within the elevator.

Procacci sells two office buildings near Dolphin Mall for $29M

Procacci Development Corp. sold two office buildings in Sweetwater for a combined price of $29.3 million. Boca Raton-based Procacci Development sold the buildings at 11430 Northwest 20th Street and 11410 Northwest 20th Street, near Dolphin Mall, to New York-based Innovatus Capital Partners, according to records. Procacci Development sold the 88,484-square-foot…

Innovatus Capital Partners Buys Miami Office Portfolio

Innovatus Capital Partners has acquired Dolphin Corporate Park, a two-building Class A office portfolio in Doral, Fla. Cushman & Wakefield Capital Markets negotiated the deal on behalf of the seller, Procacci Development Corp. The deal comes days after Cushman & Wakefield facilitated the $510 million refinancing of a historical Manhattan skyscraper. The 164,509…

Musician Pitbull, Miami Mayor Use Paramount Miami Worldcenter to Signal 10 p.m. Curfew

With Miami under a citywide curfew since March 27 to limit the spread of the novel coronavirus, musician Pitbull and Miami Mayor Francis Suarez have teamed up to help Miami residents know when 10 p.m. strikes and the city’s curfew goes into effect. The curfew ends at 5 a.m. daily. The side of the recently delivered Paramount Miami Worldcenter, a 700-foot condo…

Video: CCIM Chief Economist K.C. Conway on the Impact of Coronavirus on Economy, Commercial Real Estate

The Federal Reserve reduced rates by 50 basis points, and the stock market is soaring, well, today. The media is scaring everyone about the coronavirus. Numbers of events are being canceled. Companies are lowering their earning expectations. Should we be concerned? In this video from America’s Commercial Real Estate Show, CCIM Senior Economist…

Miami Beach orders 57 Ocean and Hotel 18 construction sites to shut down

5775 Collins Avenue and 1775 James Avenue The city of Miami Beach issued stop work orders at 57 Ocean and Hotel 18’s construction sites, saying they failed to comply with safety regulations during the Covid-19 emergency period. Miami Beach Associates LLC was issued the stop work order for the 57 Ocean project at 5775 Collins Avenue, after an inspection on Monday.

Not so fast, vultures: Multifamily among better “food groups” poised to weather pandemic

Lightstone’s David Lichtenstein would like to make one thing clear: Not all property classes are in immediate peril. “Read my lips: You are not going to see distress in multifamily,” he said during a TRD Talks Live panel discussion on Tuesday. “Everybody listening who thinks ‘this is my opportunity to sharpen my claws. I’m a hedge fund, and I’m going to find…

How the coronavirus could change the office of the future

When the coronavirus crisis subside, offices could do away with hot-desking (Credit: iStock) Most people around the globe have wondered what long-term impacts the coronavirus pandemic could have on their jobs, the economy, and culture. The verdict is very much out on all those fronts, but some in the real estate industry are already planning for a big change…

Mortgage forbearance surged on April 1: report

As tenants struggle to pay rent, homeowners are struggling to make mortgage payments. The rates of mortgages in forbearance surged April 1 to 2.66 percent from 0.25 percent at the start of March, according to Bloomberg. It comes as Moody’s Analytics’ chief economist expects that up to 30 percent of homeowners may stop making mortgage payments.

Hotel occupancy rate across US drops to 22%

The coronavirus pandemic continued to batter the U.S. hotel market in the first week of April. The national hotel occupancy rate plunged to 21.6 percent for the week ending April 4, a nearly 69 percent drop from the same time last year, according to data from hotel research firm STR. The rate for the last week of March was 22.6 percent. For the top…

Troubled RedSky lists Miami Design District portfolio

RedSky Capital’s entire Miami Design District portfolio, encompassing 14 buildings with 125,000 square feet of space, is hitting the market as the troubled Brooklyn-based development group seeks to sell much… The listed properties include 1, 10, 28, 35, 40, 50, and 56 NE 40th Street, 3925 and 3995 N Miami Avenue, and 19, 21, 45, 53, 55, 75, and 81 NE 39th Street.

Early April sees 15% drop in rent-paying nationwide: report

Only 69 percent of tenants paid rent in the first five days of April — a 12-point drop from the same period last month. From March 1-5, some 81 percent of tenants paid at least some rent, and the figure was 82 percent in the initial days of April a year ago over the 13.4 million rental apartments tracked by several data firms, the National…

Starwood scores $76M construction loan for Miami Beach HQ

Starwood Capital Group scored a $76 million loan to build its new headquarters in Miami Beach. The investment firm, led by Barry Sternlicht, secured the loan from Citizens Bank for its planned six-story office building at 2340 Collins Avenue, records show. The company received its notice of commencement from Miami-Dade County in September to start…

Boom’s over, but industrial brokers keep busy

Soon after Gov. Andrew Cuomo put New York’s strict social distancing rules in place, industrial broker Thomas Donovan’s phone stopped ringing. It was a sudden shift in what had been one of real estate’s hottest sectors. But in recent days, Donovan said, folks have begun sniffing around again for space. “We have seen people that we’re speaking to say…

Silicon Valley heads to Wynwood’s office market

Wynwood has changed quickly from the early 2000s, when it was home to a number of galleries that came alive the second Saturday of the month, to an established tourist destination with an active nightlife scene. Today, it has residents and short-term rentals, restaurants, breweries and bars, and hotels on the way. Now, it’s also emerging as a new office submarket in…

Rent In The Time Of Coronavirus: Tips for CRE Landlords and Tenants

Proactive advice for landlords and tenants who are navigating the COVID-19 crisis As soon as the coronavirus began its relentless march around the world, one phrase was repeated by world leaders, experts, local officials, and neighbors: “We’re all in this together.” In many ways, that sentiment applies as we all try to negotiate the economic impacts of the COVID-19…

State accelerates Signature Bridge and related projects

Miami’s notoriously crowded streets have become the road less traveled with the sweeping impact of the Covid-19 pandemic. With most businesses, stores and shops shut down and social distancing being preached and practiced, the highways and byways are seeing meager traffic in comparison with the bumper-to-bumper of not so long ago. The governor…

Miami looks at trolley reorganization after coronavirus siege lifts

The reworking of the countywide transportation network is in its third phase, and the City of Miami administration has weighed in on the proposed realignment of its trolley system, albeit without much force. In an interoffice memo, signed by City Manager Art Noriega and directed to Mayor Francis Suarez and commissioners, the administration makes…

A quarter of Prologis’ tenants request a break on rent. Most won’t get it

Hamid Moghadam Even the booming industrial real estate sector isn’t immune from the effects of the pandemic. Prologis, one of the biggest logistics real estate companies in the world, announced this week that nearly a quarter of its tenants are seeking rent relief. On average, 24 percent of tenants are requesting 69 days of rent relief, Prologis chief…

Congress fixed tax code “retail glitch” and gave real estate a tax windfall

SReal estate owners can thank a fix to the “retail glitch” — rectified in the $2 trillion economic bailout — for a new tax windfall. The economic stimulus package that the federal government passed last month corrected what is widely considered to be a drafting error from President Trump’s 2017 tax cuts, which allowed businesses to write off the costs…

Coronavirus distress is “opportunity of the century” for real estate investors

As the coronavirus crisis sends property values tumbling, funds focused on opportunistic and distressed-asset investments sense a greater opportunity than that seen during the 2008 financial crisis. (Credit: iStock) As the coronavirus crisis sends property values tumbling, real estate investors sense an even greater buying opportunity than the 2008 financial crisis.

WeWork sues SoftBank for scrapping $3B bailout

It’s official — WeWork is suing its biggest backer. And this probably won’t be the last time. The embattled co-working giant is alleging that SoftBank wrongfully pulled out of an agreement to buy $3 billion worth of WeWork shares. That infusion would have helped stabilize WeWork as it worked to rebound from its failed IPO, as it faces a wave…

Must do’s and need-to-knows for SBA stimulus loans

The coronavirus pandemic has thrown a wrench in the world’s economy, specifically impacting small businesses, where day-to-day operations have been stunted, if not completely halted.  The Coronavirus Aid, Relief, and Economic Security (CARES) Act, is an economic aid stimulus package which was formulated by the federal government and signed into law to…

Related’s Blau on tenants with cash: “It’s their obligation to pay”

With a $97 billion real estate portfolio, Related Companies faced a reckoning this month. But after bracing for a major loss of rental income, Related CEO Jeff Blau said “the results have been pretty good so far.” Read more Landlords brace for impact of pandemic With curfews and public assembly restrictions, what will happen to malls? For US retailers…

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

With hundreds of Floridians losing their jobs on a daily basis and the economy on crutches, Florida Gov. Ron DeSantis suspended evictions and foreclosures for a period of 45 days. But experts say it is far from enough. The move, announced on Thursday, allows homeowners and renters to stay in their homes if they can’t pay their mortgages or rent due to Covid-19.

Peebles Files $585M Suit Calling ‘Shenanigans’ On Miami Project That Slipped Away

Developer Don Peebles is suing a business rival, accusing him of conspiring with Miami city officials to ice Peebles out of a project in Miami’s historically black neighborhood, Overtown. His lawsuit hints at backroom dealing and alleges criminal activity by one city Community Redevelopment Agency. But the defendants say Peebles backed out of the deal voluntarily…

Real estate and retail shutdowns drive economic slump

The economic slowdown that is throttling the U.S. has seen economic output drop by three-quarters in some industries, including food services and arts and entertainment. In the tri-state area of New York, New Jersey and Connecticut, the coronavirus-caused slowdown is most acute in the real estate and retail sectors, according to the Wall Street Journal, citing a…

How will hotels and retailers survive until their customers come back?

Most stores throughout the state, such as Bergdorf Goodman, are closed indefinitely by executive order as the coronavirus pandemic ravages New York City. By early March, Terminal 1 of John F. Kennedy Airport, one of the busiest airports in the country, was nearly a ghost town. The novel coronavirus was sweeping East Asia and spreading around the world…

Bernie Sanders calls for rent, mortgage freeze

Presidential candidate Bernie Sanders is calling for a freeze on rent and mortgage payments as part of the next federal relief package. Sanders urged Congress on Friday to suspend monthly expenses, including rent, mortgage payments, medical debt and consumer debt collection, for four months, as part of a list of priorities he believes legislators should include…

Nation’s biggest department stores could run out of funds in a month: Goldman Sachs

While experts debate how long the economy will be shut down, some major department stores and apparel retailers have as little as one month’s worth of funds to tough it out. Major department stores like Kohl’s, Nordstrom and Macy’s could run out of capital within a month, according to a liquidity “stress…

Tenants Should Be Fully Transparent With Financials To Get Fairest Deal When Renegotiating Leases

This week, the No. 1 topic among real estate professionals everywhere is how rents will play out this month and beyond. “The goal here is sum zero,” said Vagabond Group CEO Avra Jain, known for trendy, adaptive reuse projects and affordable housing initiatives. If a landlord gets paid by tenants, then he or she should in turn pay mortgage obligations, she…

AvalonBay partners with Mast Capital on mixed-use project near Coral Gables

AvalonBay Communities purchased a stake in a mixed-use apartment project near the Collection luxury car dealership in Coral Gables. Property records show an affiliate of AvalonBay paid $12.9 million for the property at 3811 Shipping Avenue in Miami. Mast Capital is a joint venture partner with AvalonBay, according to a source. Coconut Grove-based Mast Capital…

Flex office startup Industrious slashes a third of its workforce

Industrious is the latest flexible-office startup to make significant cuts to its workforce. The company laid off 90 employees, or 20 percent of its total staff, in addition to reducing hours and imposing furloughs on another 10 percent, Commercial Observer reported. Most of the cuts were in the company’s design, real estate development and finance departments.

Florida governor freezes evictions and foreclosures for 45 days

Gov. Ron DeSantis suspended evictions and foreclosures for a period of 45 days in Florida in an emergency order issued late Thursday. DeSantis is providing the relief to single-family homeowners throughout the state, as people struggle to pay their bills during the pandemic. The state’s unemployment system has become overwhelmed with filings from…

Thousands of CRE borrowers call on banks for debt relief

The number of commercial real estate borrowers who requested debt relief during the escalation of the coronavirus outbreak in the U.S. has lurched to 2,600, with borrowers against hotel and retail assets among the most asking for help, one ratings agency found. The borrowers represent some $49.1 billion of mortgage loans, according to new findings from Fitch Ratings…

What the $2 trillion stimulus does for real estate

“In moments of crisis,” the legendary developer Big Bill Zeckendorf was fond of saying, “one’s world tends to become simplified.” Even those with big dreams (pretty much every successful real estate professional) get down to the basics: survival. This is a crisis unlike any we’ve ever seen. The world has stopped. “It’s the first time ever that we’ve had a chain of supply…

WeWork asks landlords to cut rent bill as SoftBank abandons bailout

SoftBank is abandoning plans to buy $3 billion of WeWork shares from investors, a major blow to the company as it struggles to stabilize during the pandemic. The announcement was made to a board committee Wednesday evening, according to The New York Times. WeWork’s former CEO, Adam Neumann, is among the shareholders who will no…

Developer Moishe Mana is getting into the dairy business

Real estate investor and developer Moishe Mana is adding a new business to his portfolio: dairy production. Mana’s Mana Saves McArthur was named the winning bidder of Dean Foods’ South Florida facilities, including the McArthur Dairy plant at 6821 Northeast Second Avenue in Miami’s Little Haiti neighborhood, and distribution centers in West Palm Beach and…

Pelosi proposes SALT rollback in next stimulus

Ahead of another stimulus package to address the coronavirus pandemic, House Speaker Nancy Pelosi is reportedly considering a retroactive rollback of the state and local tax (SALT) deduction cap. The $10,000 cap went into effect in 2018 as part of President Donald Trump’s 2017 sweeping tax overhaul. A Democrat-led effort to repeal it in 2019 was unsuccessful.

“They don’t deserve rent”: Tenants weigh rent strikes as landlords plan for the worst

Tenants and landlords are preparing for what to do when tenants do not pay rent this month. (Credit: iStock) April rent checks are due today, but tenants in cities across the U.S. say they won’t pay, either due to economic hardship or to increase leverage for political demands. In California, Illinois, New York and Missouri, organizers are urging tenants to pay…

Miami hotels see 60% drop in room rates

Hotels across the country — including the Plaza Hotel in New York and Chateau Marmont in LA — have shuttered and laid off and furloughed staffers. (Credit: Keith Birmingham/MediaNews Group/Pasadena Star-News via Getty Images; iStock) The picture for the country’s hotels continued to grow ever worse last week, as more than three quarters of the nation’s…

Sergio Pino re-opens construction site after workers test positive for Covid-19

Days after shutting down his construction site after workers tested positive for Covid-19, developer Sergio Pino said the project is open again. Pino, who has been pushing for a shutdown of construction in South Florida, said there is a limited crew on the site at 850 LeJeune Road, near Miami International Airport. About 40 workers are on site out of about 220…

Carlos Mattos’ family buys Hialeah assemblage for $8M

The family of Colombian businessman Carlos Mattos bought an assemblage in Hialeah for $8 million. Nisa Navarro LLC, controlled by Isabella and Nicolas Mattos, purchased seven parcels at 802 East 25th Street from 4th Avenue Developer LLC, led by Daniel Abreu, records show. The property totals 58,362 square feet, equating to a price of $137 per square foot…

Related, Shoma, PGIM sell Doral apartments for $100 million amid coronavirus pandemic

The Related Group, Shoma Group and PGIM Real Estate Investors sold The Flats Apartments at CityPlace Doral for $100 million, marking the largest deal to close in South Florida during the coronavirus pandemic. Harbor Group International paid $330,000 per unit for the two-tower, 303-unit multifamily development at 3555 Northwest 83rd Avenue in Doral.

Strategic Storage Acquires Miami-Area Asset

Strategic Storage Growth Trust II, a private trust affiliated with SmartShop Self Storage REIT, has acquired a 91,400-net-rentable-square-foot facility in Homestead, Fla. A joint venture between Angelo Gordon and Andover Properties sold the asset, according to public records. The seller… Located on 3 acres at 1235 NE 12th Avenue in Homestead, the 970-unit property…

WeWork offers rent discounts as incentive to secure long-term leases

WeWork has reportedly offered some customers generous discounts on their rent if they agree to sign long-term lease agreements. The co-working giant made the offers to reduce the number of cancellations during the pandemic, according to Bloomberg, which cited sources familiar with the matter. WeWork regularly uses price adjustments as incentives for its…

AMLI launches leasing of massive Midtown Miami project during pandemic

Apartment developer AMLI is launching pre-leasing of its massive Midtown Miami project, offering virtual tours due to the coronavirus outbreak. The Chicago-based multifamily giant is completing construction of AMLI Midtown Miami, a 719-unit complex at 3000 Northeast Second Avenue, near Miami’s Edgewater neighborhood. Monthly asking rents for studio…

North Miami offers grants to business owners hurt by coronavirus

Struggling small business owners in North Miami who are severely impacted by the coronavirus outbreak may be able get some help. The North Miami Community Redevelopment Agency (NMCRA) has created two emergency relief grant programs for North Miami businesses. In one grant initiative, the city is offering 25 North Miami businesses grants up to…

Brightline reborn a Virgin: Some key numbers ahead of the train’s rebranding

Brightline passenger train in West Palm Beach Brightline completed its first full year of express rail passenger service linking Miami, Fort Lauderdale and West Palm Beach in 2019. Enjoying growth in revenue over that time, the company is moving ahead with development of commercial and residential properties along the railroad’s route. Brightline launched…

$5 billion Miami International Airport upgrade bonds head to vote

Miami International Airport’s (MIA) $5 billion capital improvement work is already underway, and after several delays, OK of bonds to fund the 15-year job may finally take flight Tuesday. Whether the airline industry’s massive coronavirus hit factors into the decision remains to be seen. Lawmakers last year OK’d the program to overhaul Miami-Dade’s greatest economic…

More major retailers furlough employees, withhold rent

The retail bloodbath continued Tuesday as more major chain retailers said they would furlough employees, suspend rent and institute executive-level pay cuts to get through the coronavirus crisis. The parent company of Urban Outfitters, for instance, said in a Securities and Exchange Commission filing that it was furloughing a “substantial number of store…”

The Cheesecake Factory Tells Landlords Across the Country It Won’t Be Able to Pay Rent on April 1

The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis. The Calabasas Hills-based company informed all of its landlords in a letter dated March 18 (reproduced below) that a severe…

Airbnb announces relief package. Some hosts say it’s not enough

Once again, Airbnb is in damage control. After facing backlash from hosts for changing its cancellation policy in response to Covid-19 — offering guests full refunds without penalties — the startup’s CEO has announced a relief package and issued an apology. “I’m sorry that we communicated this decision to guests without consulting you—like partners should,” Brian…

Retail rout continues as Simon furloughs a third of employees

Simon Property Group, the nation’s largest mall owner, is furloughing 30 percent of its workforce, the latest in a wave of coronavirus-related layoffs and furloughs in the battered retail industry. Among those furloughed are employees at Simon’s Indianapolis headquarters and at malls and outlet centers across the country, according to CNBC, which first reported the…

Homeland Security says real estate is “essential business”

As the real estate industry remains split on whether the services it provides are “essential” during a pandemic, one federal agency has weighed in with an emphatic “yes.” Workers in both residential and commercial real estate, including settlement services and government workers who facilitate mortgage and real estate deals, were included in a “Essential Critical…”

Evictions put on hold in South Florida

All three South Florida counties have put evictions on hold amid the pandemic as Gov. Ron DeSantis consider a move statewide. The move could provide some comfort to renters as April 1 arrives on Wednesday, which is when rental payments are typically due. The Miami-Dade Police Department, Broward Sheriff’s Department and Palm Beach Sheriff’s…

Major shopping center owner offers relief for tenants

Publix has purchased a lot of the shopping center real estate it occupies, which is turning in to a major bonus for its tenants these days. Publix announced it is offering rent relief to businesses operating in Publix-owned shopping centers that have closed due to the coronavirus pandemic. The relief package includes waiving rent for two months, as well as waiving…

Publix Is Offering Rent Relief To Tenants In Its Plazas

One of the South’s most prominent grocers, Lakeland, Florida-based Publix, is offering rent relief to tenants in the 282 shopping plazas that it owns of its 1,243 locations across seven states. “Rent relief assistance is being offered as we understand that these are unprecedented times, and smaller businesses, who are tenants to Publix, may need additional assistance as…

Miami Attorney Executes ‘Funky’ Air Rights Deal for Downtown Apartments

Downtown Miami has very little available land, but that’s not stopping developers from getting creative by planning towers above existing low-rise buildings under air right deals. That’s how Grand Station Partners LLC found room for its 31-story multifamily project on a coveted location on the southwest corner of Miami Avenue and Northeast Third Street south of….

Retail Along Miami’s 36th Street Trades for More Than $2 Million

An 8,978-square-foot, two-story retail property at 3410 Northwest 36th Street and 3450 Northwest 36th Street. in Miami with several buildings constructed in 1948 and 1955, according to the Miami-Dade County Property Appraiser’s office. The entire property is roughly three-quarters of an acre, including a 13,500-square-foot parking lot.

EB-5 is back in the doghouse

EB-5 was left out of Congress’ $2 trillion federal stimulus package bill, crushing developers’ hopes of getting cheap financing as real estate deals come to a halt. The federal program that allows foreign investors the ability to obtain a U.S. green card in exchange for an investment in a U.S. business was not mentioned in the stimulus package that passed Congress on Friday.

Miami-Dade, city of Miami suspend permitting and inspections

Miami-Dade suspended the county’s building code functions in unincorporated areas, including plan review, permitting, inspections and completions, as more employees have tested positive for Covid-19. The city of Miami followed the county on Monday, announcing it was suspending building inspections for existing properties effective Tuesday. The county…

Publix to offer rent relief to retail tenants

Publix has become the latest landlord to offer rent relief to its retail tenants due to the impacts of Covid-19. The Lakeland-based grocery store giant is waiving rent for two months for businesses operating at Publix-owned shopping centers, according to a press release. Publix is also waiving two months of payments for common area maintenance fees and taxes.

Berger Commercial Realty Sells Cypress Creek Corporate Corridor Building

The Cypress Creek Center, among the most desirable buildings in the popular Cypress Creek corporate corridor, was sold for $4.8 million on March 11. Berger Commercial Realty/CORFAC Senior Vice President Steve Hyatt and Vice President Brian Batchelder represented the seller, Bright Angel, Inc. Previously, Berger Commercial Realty represented the seller…

Coronavirus casts shadow over commercial real estate

Trade war hangovers, election year jitters and the COVID-19 coronavirus outbreak that sent shockwaves through the equity markets and predictions of an ugly global slowdown: Welcome to 2020. The verdict is still out on how bad and deep this first-quarter macro pummeling will be, but South Florida’s office market is still boiling with leasing, sales and development…

Government office closures stop commercial deals in their tracks

Physical copies of paperwork is needed for most commercial real estate deals Broad economic anxiety isn’t all that’s tamping down on commercial real estate deals these days. States and municipalities across the country are shuttering document recording offices to contain the spread of COVID-19 and that means parties can’t close deals, according to Commercial Observer.

11 Reasons to Invest in Florida Commercial Real Estate

Disclaimer: This is a post from 2018 that has been updated to reflect Florida’s current economic and demographic data. Some of the figures (such as current unemployment rates) will surely change in the coming weeks / months due to the effect of Covid-19 on the global and local economy.  Florida is not just a sunny paradise…

Michael Shvo on the Bible, Batman and why NYC will bounce back

After seven months of due diligence, developer Michael Shvo bet on New York real estate emerging from the coronavirus pandemic last week — by making an offer to buy a building on Fifth Avenue. “What we’re facing now — we don’t know the end of this, but we know eventually there will be an end,” he said. With the global economy in limbo, Shvo spoke with The…

South Florida lenders and landlords battle new coronavirus reality

As businesses shutter across South Florida and unemployment skyrockets to record highs, landlords are facing a difficult dilemma: How to offer rent deferrals to tenants and at the same time pay their mortgages? Landlord Shane Neman said he has offered deferrals to commercial tenants, but claims two of his lenders have yet to give him final guidance on whether…

WeWork to miss 2020 targets because of coronavirus

WeWork says it won’t be hitting its targets this year because of the coronavirus. In a letter to bondholders, CEO Sandeep Mathrani and Executive Chairman Marcelo Claure wrote they no longer expect to meet their 2020 targets, Bloomberg reported. The co-working firm’s gloomy outlook came in a lengthy footnote to the letter. “We are in the process…”

Fed to mall and hotel owners: Drop dead

The central bank’s multi-trillion-dollar intervention to help companies facing a credit crunch leaves struggling malls, hotels and other properties out in the cold. Earlier this week the Federal Reserve announced it would launch an unprecedented program to buy up corporate bonds so companies hurt by the coronavirus pandemic will have money to borrow. But the…

House passes $2 trillion stimulus package

After a brief procedural hiccup, Congress’ $2 trillion economic stimulus package is on its way to the desk of President Trump. U.S. Representatives raced back to Washington on Friday to pass the coronavirus response measure by voice vote after Republican Rep. Thomas Massie threatened to hold up the bill by a…

Lennar scores $45M construction loan for Wynwood apartment project

A subsidiary of Lennar scored a $44.8 million construction loan for an apartment project on the former site of Wynwood Yard. The Miami-based company secured the loan from Santander Bank to construct the 11-story, 189-unit apartment… The property is at 48, 56, 64, 70, 82, 90 and 98 Northwest 29th Street, as well as 63 Northwest 28th Street, i Wynwood…

Video: Discussing COVID-19 Implications with Michael Shvo, Developer with Big Plans for Miami Beach’s Raleigh Hotel

In this COVID-19 social distancing policy compliant remote interview done by TRD’s Amir Korangy, Michael Shvo, CEO of SHVO, a real estate development company based in New York City with additional offices in London and Dubai, and highly active in Miami, discusses the implications of COVID-19 on commercial real estate and lifestyles overall. The core of…

Real estate investors will get $170B windfall from bailout package

Tucked inside the federal government’s massive economic rescue package is a $170 billion windfall for real estate investors. Washington’s $2 trillion bill is a provision that allows investors to write down the depreciation on properties beyond the previous limit of $500,000 a year, the New York Times reported. According to a draft congressional analysis, it’s the…

Stay home, folks: Miami-Dade joins Broward with safer at home order

Miami-Dade County Mayor Carlos Gimenez issued a safer at home order, urging residents and visitors to stay home, as officials try to contain the spread of Covid-19. The order comes hours after Broward County put out a similar one. In Miami-Dade and Broward, residents and visitors can only travel to essential businesses, including grocery stores and pharmacies.

Sergio Pino shuts down construction site near MIA after workers test positive for Covid-19

Sergio Pino and rendering of 850 LeJeune Developer Sergio Pino shut down his construction site near Miami International Airport after two workers tested positive for Covid-19. Pino’s Century Homebuilders Group informed its general contractors, Wechsler Construction and Conconcreto, to stop work on the 850 LeJeune mixed-use project this morning, Pino said.

Shoma nabs $18M construction loan for condos near Lincoln Road

Shoma Group closed on a construction loan for Ten30 South Beach, a condo project near Lincoln Road with units starting in the $400,000s. Shoma, led by CEO Masoud Shojaee, secured a $17.6 million loan from Acres Capital Corp., a New York-based balance sheet lender. The financing closed on Wednesday, amid the coronavirus pandemic. The developer launched…

Shoma Group Closes $17.6 Million Construction Loan for Condominium Development in Miami’s South Beach Market

South Florida developer Shoma Group announced today that they have closed on a $17.6 million construction loan for Ten30 South Beach. New York-based ACRES Capital Corp. served as the lender. “We are very proud to secure construction financing with ACRES Capital for Ten30 South Beach as we step closer to delivering this compelling project to Miami Beach…”

Centennial Bank Issues $33M for South Miami Student Housing

A South Miami student housing project rising near the University of Miami just got a $33.25 million boost. Developer Treo Group LLC secured the senior construction loan from Centennial Bank for VOX Miami, a transit-oriented development with student housing and a separate office building.
Centennial Southeast Florida division president J.C. de Ona and senior…

Virgin Trains USA’s Impact On SoFlo CRE

For developers, it’s all aboard. When it comes to commercial real estate, railroads have long been considered a development incubator. Capable of moving people and goods across all distances, rail is a big reason why East Coast cities boomed, why the west was won, and why Henry Flagler was able to attract tourists and developers to South Florida. Wherever a…

Video: Costar Director of U.S. Office Analytics Michael Roessle Discusses Office Property Performance

In this two part video series, Michael Roessle, Director of United States Office Analytics with CoStar, a leading provider of information, analytics and marketing services to the commercial property industry, appears on America’s Commercial Real Estate Show to talk about office property market performance. Among the topics discussed are absorption, growth…

Del Valle Brands Inks New 126,000-SF Industrial Lease In Medley

TRE represented the landlord, Seagis Property Group, in a new, long-term industrial lease totaling 125,976 square feet with Del Valle Brands at 8150 NW 76th Avenue in Medley. Del Valle Brands, a brand development and distribution company, will occupy the entire building. Transwestern’s South Florida industrial team comprised of Managing Director Thomas Kresse…

Massive stimulus package has limited upside for real estate

U.S. markets started Wednesday with a burst of optimism, as a $2 trillion stimulus deal had been reached between the White House and Congress. But as the day went on, the proposed legislation became mired in new disputes about unemployment benefits and assistance to corporations. In any case, this historic legislation — the largest stimulus package in U.S….

Mac Papers inks deal, sells warehouse near MIA for $15M

A major paper supplier sold its warehouse near Miami International Airport for $14.6 million. Jacksonville-based Mac Papers sold the 137,872-square-foot warehouse at 5900 Northwest 176th Street in Miami for $105 per square foot, records show. Spirit Master Funding X LLC, tied to Dallas-based Spirit Realty Capital, purchased the property. The warehouse is on…

Sam Zell’s Equity Residential halts evictions, rent hikes on 80K-unit portfolio

Sam Zell’s Equity Residential said it will halt evictions and rent increases for 90 days on its thousands of apartments across the country in response to the coronavirus emergency. The move, first reported by Crain’s, comes after several states like California, New York, and Illinois have called for or have suspended eviction proceedings and rent hikes. The real estate…

South Florida commercial real estate closings face delays and cancellations due to coronavirus economic meltdown

Jay Sakalo and Jaime Sturgis A month before the closing date, commercial broker Jaime Sturgis just had to kiss goodbye a nearly $1 million multifamily deal. Sturgis, founder and CEO of Fort Lauderdale-based Native Realty, said he represented the seller of an eight-unit apartment building in Miramar who canceled the sale after the buyer requested “unreasonable…”

Seagis Property Group Inks Full-Building Lease in Miami-Dade

Del Valle Brands, a Miami-based brand development and distribution company specializing in Caribbean markets, has leased an entire 125,976-square-foot building owned by Seagis Property Group in Medley, Fla., a Miami-Dade submarket. The building has Palmetto Expressway frontage and is located at the southeast quadrant of… at 8150 NW 76th Avenue…

“It is catastrophic:” Sam Nazarian, Kobi Karp talk coronavirus toll

Last week, The Real Deal publisher Amir Korangy sat down for another episode of Coffee Talk with luxury hospitality group SBE’s Sam Nazarian and leading architect Kobi Karp. This time, though, coffees were kept at home, with Karp and Nazarian joining TRD for a virtual conversation. Nazarian detailed the difficulty in maintaining his large workforce…

Hotels get pummeled as demand nosedives for a second week

The hotel industry suffered another devastating week, as cities like New York and San Francisco saw more than eight out of every 10 hotel rooms sit empty. Occupancy levels in those two cities plunged more than 80 percent last week as the Covid-19 pandemic obliterated demand for hotel stays, new figures released Wednesday by the…

TRD Talks: How developers are contending with coronavirus

One called for a total shutdown of business. Another advised startups to plan for zero revenue for six months. And a third had harsh words for impatient lenders. All three New York developers, Miki Naftali, Ryan Freedman and Steve Witkoff, made their views known about how they would deal with the deepening coronavirus pandemic. The trio spoke…

Back-of-the-Envelope Estimates of Next Quarter’s Unemployment Rate

As state and local governments implement social-distancing measures to suppress and contain the spread of COVID-19, many businesses are faced with a large decrease in sales and revenue. This slowdown of economic activity could inevitably lead to solvency and liquidity problems that result in workers being laid off. This negative shock does not equally affect all…

Target store signs for planned Overtown block

Retail giant Target has signed a letter of intent to open a store inside a planned mixed-use retail and residential development in Overtown called Block 55, according to the developer of the expansive project. The developer, in concert with the board of directors of the Southeast Overtown/Park West Community Redevelopment Agency (CRA), plans…

Transit hub to feature University of Miami student housing

New student housing is a key component of a major mixed-use project in South Miami destined to become a transportation hub for the region, according to the developers. The TREO group, in collaboration with Miami-Dade County, is building the mixed-use, transit-oriented student housing development to be called VOX Miami. Officials from The TREO Group…

New blueprints are coming for hospitality industry’s future

Miami-Dade’s hospitality sector is under economic siege from the coronavirus. How it recovers is crucial to the future for us all. Of course, whatever industry we look at is struggling while society battles a peril with no track record to indicate when the siege might ease up.  Hospitality is in the same boat – but hospitality has been what Miami was built on…

Edgewater condo tower’s retail space sells for $15M

The commercial space in an Edgewater condo tower sold for $15.45 million. Biscayne Plaza II LLC, led by Javier Cevera, sold the 11 commercial condos at 1800 Biscayne Plaza to Delorean Holdings LLC, led by Daniel Serber, a lawyer in Aventura, records show. The commercial… The space at 295 18th Street is occupied by a Chase bank branch and restaurants 3 Chefs…

CenterPoint buys an industrial property near MIA for $30M

CenterPoint Properties CEO Bob Chapman and South Florida Logistics Center CenterPoint Properties Trust bought an industrial property near Miami International Airport for $29.5 million. Oak Brook, Illinois-based CenterPoint Properties purchased the 42.5-acre property at 3200 Northwest 67th Avenue for $694,117 per acre, records show. FDG Hialeah, tied to…

Expected U.S. Macroeconomic Performance during the Pandemic Adjustment Period

The coronavirus has the potential to create catastrophic health outcomes in the U.S.2 In order to mitigate this, public health officials have recommended a variety of social-distancing policies to slow the spread of the virus. In addition, social interaction has declined dramatically due to voluntary withdrawal by individuals, corporate work-from-home policies and…

Miami condo tower shuts down amenities due to confirmed coronavirus case

A downtown Miami condo tower has shut down its amenities deck, pools and barbecue, and asked visitors to stay away after a resident was confirmed to have tested positive for Covid-19, The Real Deal has learned. The condo association of Marinablue, the 57-story, 516-unit tower at 888 Biscayne Boulevard, sent an email blast alerting residents of the…

Tom Barrack predicts commercial mortgage market crisis

Colony Capital chairman and CEO Tom Barrack thinks the commercial mortgage market in the United States is on the verge of collapsing. Barrack wrote in a white paper, posted to Medium late Sunday, that the coronavirus pandemic and subsequent shutdown of sectors of the U.S. economy could lead to margin calls, foreclosures, evictions and potential bank failures.

Fannie, Freddie offer multifamily landlords a break — strings attached

Some relief from the federal government is on the way for multifamily landlords, but it comes with strings attached. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, announced that the two mortgage insurers will give multifamily landlords a break on their loans on the condition that they do not evict any renters impacted by…

CFH Group picks up Allapattah bank branch

Even in the midst of the coronavirus pandemic some deals are closing. Truist sold a bank branch in Miami’s Allapattah neighborhood for $6.9 million to a company tied to CFH Group, records show. The branch, at 1400 Northwest 20th Street, is on a 19,604-square-foot lot, equating to a price of $349 per square foot, according to records. Truist is the bank holding…

Bankruptcy, restructuring lawyer outlines strategies

By Adam Marshall The impact of the coronavirus will result in a lot of tough financial and legal decisions for many business. These are topics  I know intimately as a veteran bankruptcy and restructuring lawyer. For some stressed businesses, negotiating with creditors and lenders could be imminent while restructurings, bankruptcy filings and liquidations are…

Feds looking to lease warehouses for coronavirus triage, testing centers

The federal government is reaching out to commercial property owners and brokers to lease empty warehouse space for temporary triage centers, as the number of confirmed coronavirus cases nationwide continues to grow. As of Friday afternoon, more than 15,000 people had tested positive for the virus in the U.S., with more cases expected as the number of…

All hotels, short-term rentals in Miami-Dade ordered to shut down due to coronavirus

Miami-Dade County and the city of Miami Beach ordered all hotels, motels and short-term rentals shut down effective Monday, March 23, in an effort to curb the spread of Covid-19. Guests and renters must be out of all commercial lodging establishments by midnight on Monday night, according to the city of Miami Beach’s or…

Diplomat, Acqualina, Biltmore hotels closing amid coronavirus

Major hotels across South Florida are closing voluntarily amid the coronavirus pandemic. Acqualina Resort in Sunny Isles Beach, the Diplomat Beach Resort in Hollywood, and the Biltmore in Coral Gables are all closing by this weekend, as Covid-19 sends shock waves through South Florida’s economy. Miami-Dade Mayor Carlos Gimenez issued an executive order…

Coronavirus And The Future Of SoFlo CRE

There’s no easy way to begin. As you all are very much aware, coronavirus is taking an incredible toll on lives and livelihoods. Anxiety is high, nerves are frayed, and because the situation is rapidly changing, there is no way to predict the short- and long-term outcomes accurately. It wasn’t so long ago, in fact, that investors were excited because the Federal Reserve had…

Treo Group scores loan for mixed-use student housing project in South Miami

Rendering of Vox Miami The Treo Group closed on a $33.25 million construction loan for Vox Miami, a mixed-use project under construction next to the South Miami Metrorail station. Centennial Bank is providing the senior construction loan to Treo. It closed on Wednesday, amid the crisis caused by the coronavirus pandemic. J.C. de Onda, division president…

Miami-Dade orders all non-essential businesses closed due to coronavirus

Miami-Dade Mayor Carlos Gimenez has expanded his order of businesses that must close — and those that can remain open — during the coronavirus pandemic. All malls and casinos will have to shut down. Construction sites, hotels and banks can remain open. Medical facilities, grocery stores, gas stations and restaurant kitchens can…

Coronavirus COVID-19 Real Estate Task Force | Jordan + Lawyers Provides Tactical Step by Step Guide

As mentioned in our previous post, the number of COVID-19 coronavirus (“Coronavirus”) cases continues to increase, and with the World Health Organization raising its threat assessment of Coronavirus to its highest level, businesses in Miami-Dade and Broward Counties are becoming increasingly aware of the many challenges that are ahead. At Jordan…

SoFla landlords, retailers brace for coronavirus impacts

FroCommercial landlord Scott Sherman is trying to get ahead of potential losses and hardship South Florida retail tenants are facing. His Miami-based Tricera Capital is giving them the ability to defer rent payments for the near future, as bars and restaurants are forced to close and the fallout from the coronavirus pandemic unfolds. Across South Florida, from…

Barry Sternlicht calls coronavirus “World War III for 90 days”

Barry Sternlicht has voiced worries of the next “calamitous recession,” but now he is optimistic that the epic disruption of the global coronavirus pandemic will be over in three months. “I don’t think in the history of the world have you ever had this many labs, this many people focused on a cure or a vaccine with technology that didn’t…

Insight into the coronavirus impact on commercial real estate

There’s a lot of economic comparisons between the Great Recession and the coronavirus, but there are a couple of key differences this time when it comes to commercial real estate, says Marc Shuster, a partner at the Berger Singerman law firm. Shuster brings a lot of insight from representing family offices, high net worth individuals and private equity funds. Those…

Social distancing? Coronavirus not stopping South Florida construction projects — for now

The concrete will continue pouring at South Florida construction sites. As other aspects of everyday life are shut down due to the coronavirus pandemic, the building industry is still forging ahead — for now, according to general contractors, trade association representatives and government officials. Peter Dyga, president and CEO of Associated Builders and…

Starbucks transitioning to temporary “To-Go” model

In light of recent public health concerns, all company-owned Starbucks stores in the U.S. will be open for to-go and delivery orders only. This decision was made public on March 15th and, according to Starbucks representatives, will remain in effect for at least two weeks. Though the high-traffic chain has shut down all indoor and outdoor seating…

International Council of Shopping Centers requests federal help amid massive shutdowns

The International Council of Shopping Centers is requesting aid from the Trump administration amid a host of restaurants, retailers and entertainment operators shutting down. ICSC wants the federal government to directly pay for or guarantee business interruption coverage for retailers, restaurants and other impacted businesses, according to the Wall Street…

Trump suspends HUD evictions, foreclosures amid coronavirus pandemic

President Donald Trump announced Tuesday that the Department of Housing and Urban Development will suspend all foreclosures and evictions through April in response to the coronavirus pandemic. The moratorium would apply to mortgages insured by the department’s Federal Housing Administration, or around 8.1 million households, according to…

“We are not close to the bottom in the US”: Hotels suffer declining revenues, mass layoffs

By every conventional measure, the hotel industry took a beating last week as the country went further into lockdown to contain the spread of the coronavirus. Occupancies, average daily room rates and revenues per available room fell drastically last week, according to new figures from the hospitality research firm STR. “Through comparative analysis of the…”

Miami Self Storage Portfolio Commands $44M Refi

Two of the properties are situated in Miami, at 490 NW 36th Street and 1100 NE 76th Street, while the third one is located at 812 NW First St., in Fort Lauderdale, Fla. CubeSmart manages the Miami facilities, while Public Storage operates the one in Fort Lauderdale. The portfolio encompasses 1,836 units spread across three multi-story buildings, which came online…

Airbnb calls for federal aid as hosts voice anger over policy changes

Airbnb’s business model relies on making both hosts and guests happy, but the startup is facing pushback from both sides as it flip-flops over who should cover the cost of cancellations. With demand for short-term rentals falling amid a global coronavirus pandemic, the company is now seeking government support for its hosts. But many of them have voiced anger…

Miami lacks appetite for new food truck regulations

Legislation that would add additional food trucks regulations in the City of Miami has stalled, as the discussion among commissioners centered on the ways food trucks operate in the city among brick-and-mortar businesses. Last week, city commissioners deferred an item sponsored by Commissioner Ken Russell that would address food trucks operating…

Property insurance costs likely to soar

There may be bright spots on the commercial insurance horizon – workers’ compensation among them – but property insurance won’t be one of them, said Mark Schwartz, CEO of Corporate Insurance Advisors. “In general, we are a cat-exposed state,” he said, meaning frequent hurricanes dampen the profitability of insurers and re-insurers in Florida, causing many to leave…

Allapattah midrise plans 47 micro-unit apartments

A developer plans to build a midrise building in Allapattah that will include smaller micro unit apartments. 2323 Pointe Group LLC is asking the City of Miami to approve its plan to construct an 8-story mixed-use residential building at 2323 NW 36th Street. The city’s Urban Development Review Board recommended approval. The project’s working name is 2323…

State to order bars shut for 30 days

The normally festive St. Patrick’s Day took on a very somber note Tuesday as Florida Gov. Ron DeSantis planned a 5 p.m. press conference to issue an order for bars to close for 30 days, multiple media outlets were reporting. Bars are being defined as establishments where more than 50 percent of sales are from alcoholic beverages. Restaurants will be told to reduce…

Real estate pros weigh in Fed and Trump’s moves to bolster economy from COVID-19 pains

The Trump administration’s effort to work with Congress on an $850 billion stimulus package to bolster the economy may be getting a positive response from investors, but it may not be enough to ultimately calm markets and those same investors. As the U.S. fights to contain the coronavirus epidemic, the Federal Reserve on Tuesday resurrected a program…

SoftBank may bail on WeWork bailout: report

SoftBank no longer plans to proceed with all of its bailout of WeWork, justifying its decision to back out of its $3 billion pledge to buy shares back from investors by citing several regulatory investigations of the troubled shared office–space giant. According to the Wall Street Journal, WeWork’s shareholders were sent a notice Tuesday stating that SoftBank believes…

Eric the Jeweler blames Mondrian South Beach owners for $2M heist: lawsuit

Eric the Jeweler suing Mondrian South Beach owners Eric Mavachev, a New York City jeweler who counts Sean “Diddy” Combs and Drake among his A-list clientele, is blaming the owners and two employees of the Mondrian South Beach Hotel for the theft of nearly $2 million in baubles from his hotel room last month, according to a recently filed lawsuit. Mavachev…

Restaurants, bars, gyms and theaters ordered to close in Miami-Dade

Miami-Dade County ordered all restaurant dining rooms, bars, gyms, movie theaters, bowling alleys and other businesses closed due to coronavirus, or COVID-19. Deputy Mayor Jennifer Moon made the announcement along with Miami Beach Mayor Dan Gelber on Tuesday morning at a press conference at Joe’s Stone Crab in South Beach. The order will go into…

CenterPoint Properties Acquires Airport-Adjacent Land Site In Miami-Dade County

CenterPoint Properties has announced the acquisition of a 17.14-acre land site in the Miami-Dade County submarket. Located at 3200 NW 67th Avenue in Miami, this site is currently 100% leased to a leading e-commerce retailer. Located in the highly coveted “Airport West” submarket of Miami-Dade County, the property is directly adjacent to Miami International…

With curfews and public assembly restrictions, what will happen to malls?

As cities around the country curtail large public gatherings, institute curfews and shut down schools to prevent the spread of the coronavirus, questions hang over the fate of malls — which have already been on a knife’s edge thanks to retailer bankruptcies and store closures. Some industry watchers have said retail will be among the first industries to…

Coronavirus closures hit South Florida restaurants and stores

Popular Miami restaurants like Mandolin Aegean Bistro and Cafe La Trova are temporarily closing their doors amid the coronavirus crisis. National retailers are announcing closures by the hour. In Miami-Dade County, all bars and clubs must close by 10 p.m., and all restaurants by 11 p.m. The wave of closures is expected to continue locally and throughout the county…

Starwood snags Homestead apartment complex for $28M

An affiliate of Starwood Capital Group bought the Villa Biscayne Apartments in Homestead for $28.3 million, reflecting growing demand for multifamily properties in south Miami-Dade County. A company tied to Michael J. Hornbrook, president of Lakeside Capital, sold the 180-unit complex at 15350 Southwest 284th Street for $157,222 per unit to…

Building towers with stone could be the future, architects say

A group of architects wants to bring their practice back to the stone age. Groupwork and structural engineering firm Webb Yates collaboratively designed a 30-story office tower built of stone they say could be cheaper and more sustainable than a similar tower built with steel or concrete, according to Dezeen. The project was an investigation of how tall one…

Miami Beach orders all restaurants with occupancy over 250 to close or reduce capacity due to coronavirus

The city of Miami Beach late Friday ordered all restaurants and nightclubs with occupancy of over 250 people to cease operations due to the coronavirus pandemic. Restaurants and nightclubs can remain open if they maintain a capacity of fewer than 250 people, according to the city’s announcement. Miami Beach’s mayor and commission extended the…

Carl Icahn’s biggest short? Commercial real estate

The U.S. commercial real estate market is ripe for a meltdown, according to activist investor and notorious corporate raider Carl Icahn. And he’s putting a lot of money where his mouth is. “You’re going to have this blow up, too, and nobody’s even looking at it,” Icahn said on CNBC. The investor revealed that he’s shorting the commercial mortgage bond market, noting that it…

Miami-Dade suspends evictions due to coronavirus

Miami-Dade suspended all eviction activities amid the coronavirus pandemic. The county’s police department announced it would not assist with evictions now that Miami-Dade County is under a state of emergency. Mayor Carlos Gimenez, who self-isolated after a meeting with Brazilian President Jair Bolsonaro’s aide, declared the state of emergency on…

Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report

CEO Andrew Miller and clockwise from top left: JW Marriott Essex House in New York, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole Anbang Insurance Group’s pending deal to sell a $5.8 billion portfolio of 15 U.S. hotels to a South Korean money manager could be in doubt. A group of lenders led by Goldman Sachs failed to receive enough…

Edgewater condo building hits market as dev site

An older condo building on a 3.4-acre waterfront site in Miami’s Edgewater neighborhood is hitting the market and could be redeveloped into a 60-story tower. The older condo building, called Biscayne 21, at 2121 North Bayshore Drive, could be sold in a bulk deal. It represents one of the last remaining waterfront development opportunities in Miami’s Edgewater…

Developer breaks ground on mixed-income rentals in Little Havana

Rendering of Bonsai I with Ivanna Jimenez, Fernando Murzi and Jesus Luongo A Miami developer is taking advantage of the city’s mixed-income housing program to build a rental development in Little Havana. Forth Development, founded by Ivanna Jimenez, Fernando Murzi and Jesus Luongo, broke ground on Bonsai I, an eight-unit building at 519…

Wynwood BID proposes to allow outdoor music until 3 a.m.

If they agree to keep the volume down, Wynwood nightclub and bar owners could get a reprieve for playing outdoor music into the wee hours of the night. On Wednesday, a Wynwood Business Improvement District committee proposed legislation that would carve out an exemption for the trendy neighborhood from adhering to a Miami ordinance that prohibits…

How Quickly Does Fiscal Policy Get Implemented?

There are recent calls for fiscal policy intervention to mitigate the economic impact of the COVID-19 virus outbreak. It is worth recognizing that fiscal and other stabilization policies exhibit “long and variable lags,” as noted by Nobel-prize winning economist Milton Friedman.1 These lags involve moving from (i) the initial proposals to conduct a stimulus policy to (ii) the…

Complex Miami Riverside plan criticized but advances

The ambitious plan to provide the City of Miami with a new government administrative building near the current Miami Riverside Center on the Miami River has taken a step forward. But not before a city review board criticized the proposal for its lack of a grand or distinctive public entrance to the city’s new structure. The project, with a working title of Riverside…

As Miami Worldcenter rises, deals to sell its land continue

Even as the giant Miami Worldcenter builds up and out, deals continue to take place. Recently, Miami Worldcenter Associates sold a 1-acre parcel for $27 million, and Miami’s Urban Development Review Board voted unanimously to recommend approval of the 52-story Miami World Tower, which will house 560 residential units and about 3,000 square feet…

Multifamily Execs On Coronavirus: Keep Calm And Nab Those Low Mortgage Rates

Faisal Ashraf woke up Monday morning ready to work on $200M worth of deals in London hotels when fears about the coronavirus rippled through the world and caused the largest single-day stock market drop since the Great Recession. Ashraf, who, as founder and CEO of advisory firm Lotus Capital Partners, connects lenders and borrowers, didn’t sweat it. The…

US hotels report plunging occupancy rate on coronavirus fears

It’s official: the coronavirus outbreak has hit the fundamentals of U.S. hotels. The occupancy rate nationwide plunged 7.3 percent from this time last year to 61.8 percent, according to data released Wednesday by hotel research firm STR. Figures reflect changes from March 3-9, 2019, compared to March 1-7, 2020. Revenue per available room also sank, 11.6 percent…

Coronavirus spurs refinancing spree as rates sink to 50-year lows

Homeowners are rushing to refinance amid historically low mortgage rates. The volume of refinance applications grew 79 percent in the first week of March — the highest since the post-recession period, Yahoo Finance reported, citing data from real estate finance trade group the Mortgage Bankers Association. The increase was the largest week-over-week since…

Airbnb settles litigation with Miami development group alleging fraud

Harvey Herndandez Two months ago, Airbnb alleged Miami developer Harvey Hernandez’s NGD Homesharing defrauded the short-term rental company in a partnership and stole $1 million. NGD struck back a few days later alleging Airbnb engaged in bad faith and breached its contract. Now the two sides have settled and voluntarily dismissed both lawsuits…

East End Capital launches co-living platform with first project in Wynwood

Rendering of East End Capital East End Capital scored initial approval to build two mixed-use projects in Wynwood that will include the company’s first branded co-living development. New York City-based East End is launching its co-living brand, called Foyer. The developer plans to build Foyer-branded, operated and managed buildings nationwide and is…

Coronavirus could expose US hotel owners with high debt

Hotel owners who seized on low interest rates and took on big loans are facing greater exposure as the coronavirus pandemic puts a dark cloud over the industry. At the end of the third quarter of 2019, the U.S. hotel industry had $300 billion of mortgage debt, the Wall Street Journal reported. That figure is a 7.8 percent jump from the same time in 2018…

Industrial e-commerce plays by the numbers

Prologis CEO Hamid Moghadam and Blackstone’s Jonathan Gray In industrial real estate, it’s a close race to the top. Blackstone and Prologis are going head to head to be crowned the firm that holds the most industrial space on the planet. But the logistics real estate investment trust has bested the private equity giant, at least for now. Prologis has ownership stakes…

Connect Capital Miami, Miami’s Affordable Housing Plan, and CRE

The affordable housing crisis hits close to home Let’s cut right to the chase. Across the country, there is an affordable housing crisis. And in Miami, despite robust development and investment opportunities, the city is a high-rent/low-income region, making it one of the least affordable cities in the country. One study reports that 71% of the households in the City…

$5 billion Miami International Airport upgrade ready for takeoff

Miami-Dade lawmakers are days from authorizing $5 billion in bond debt to fund a long list of overhauls aimed at the county’s greatest economic engine, Miami International Airport. The county Aviation Department’s 15-year capital improvement program, approved last year, is focused on growing airport capacity and efficiency. Unlike prior MIA improvement…

Ex-manager quickly becomes architect for Palmetto Bay showcase work

Two major players once thought to be finished with Palmetto Bay’s lengthy effort to transform its downtown area are back in the game, and their return could further delay progress on a new village square. Real estate firm NAI Miami, the second-ranked respondent to Palmetto Bay’s request for bids to redevelop 4.6 acres off US 1 encompassing Village Hall, did…

Vast Plaza Coral Gables rising in segments

At The Plaza Coral Gables, the largest multi-purpose complex ever to rise in that city, progress continues apace. “Our first temporary certificate of occupancy is within reach,” said a release by the developer, Agave Holdings, a group that includes Jose Cuervo spirits. “The office and residential buildings currently under construction in the north parcel are slated…

Moishe Mana land swap deal for Puerto Rican center marches ahead

Developer Moishe Mana has thus far delivered on his commitments in a land swap and construction deal with Miami-Dade for a long-planned Puerto Rican Community Center and Chamber of Commerce, a county official says. The billionaire businessman was by Jan. 31 to have given the county and City of Miami final designs and documents for the $8.36…

Omni mixed-use project to have 42 micro dwellings

A developer is planning a mixed-use residential project for the Omni neighborhood that would include more than 40 micro dwelling units. Wynwood Haus LLC plans to build a 20-story building at 1765 N Miami Avenue with 224 residential units, 5,204 square feet of commercial-retail, a 540-square-foot office, and a parking pedestal with space for up to 222…

Joseph Corradino: Brings urban planning mindset to Pinecrest mayor’s office

For Pinecrest Mayor Joseph Corradino, 2020 represents a triplet of anniversaries and, if he is elected to a second term in November, yet another. Twenty-five years ago to the day of his interview last week, March 4, he married his wife, Mia. That same year, he joined his family’s civil engineering firm, The Corradino Group, for which he today serves as…

Terra, partners pay off Eighty Seven Park’s $155M construction loan

Eighty Seven Park, David Martin of Terra Terra and its partners, developers of Eighty Seven Park, paid off the $155 million construction loan for the recently completed luxury condominium tower in Miami Beach. The 18-story, luxury tower at 8701 Collins Avenue is architect Renzo Piano’s first residential building in the Western Hemisphere. It was developed by…

“The coffee break room, actually, is more contaminated than the restroom”: Open floor offices add to coronavirus concerns

With tech companies and co-working firms leading the way, more office tenants have gravitated toward open floor plans, both to cut costs and encourage the sharing of ideas. But there’s something else the setups could encourage: the spread of a virus or disease. That possibility has increased as the coronavirus continues to spread across the…

Melo Group launches preleasing for latest Arts & Entertainment District rental tower

Renderings of Miami Plaza and Carlos and Martin Melo The Melo Group is getting ready to open its latest rental project in Miami’s Arts & Entertainment District. Melo launched preleasing of Miami Plaza, a 36-story, 425-unit apartment tower at 1500 Northeast Miami Place, next to the Miami-Dade Metromover School Board Station, according to a press…

Latin American investors allegedly lost $250M in Miami real estate Ponzi scheme: lawsuit

For nearly a decade, a trio of Ecuadorian businessmen allegedly ran a real estate Ponzi scheme that defrauded more than $250 million from mostly South American investors, according to a recently filed lawsuit in Miami-Dade Circuit Court that seeks class action status. Last month, 162 of those investors sued Juan Carlos Cortes, Roberto Cortez, Ernest…

Investors Say They Lost $250M In Ponzi Scheme With Nonexistent Real Estate Projects

The members-only Ocean Reef Club in Key Largo, just south of Miami, is one of Florida’s most exclusive communities. Formerly home to Frank and Kathie Lee Gifford, it has its own airstrip, a 175-slip marina, golf courses and a croquet lawn. Now, a complex and globe-spanning lawsuit filed by 162 investors claims they were lured into a Ponzi scheme based on the…

New Retailers Flowing To Lincoln Road After Price Correction

Lincoln Road stretches across the barrier island of Miami Beach, from the Atlantic Ocean on one side to Biscayne Bay on the other. Dotted with a koi pond, and Art Deco architectural elements, it is one of the country’s premier retail high streets. But as rents boomed over the past decade, independent shops gave way to huge brands. Nike, Apple, H&M and J. Crew all have…

Modell’s Sporting Goods prepares to file for bankruptcy

Modell’s Sporting Goods appears poised to become the latest major retailer to file for bankruptcy. The 130-year-old athletic gear company has stopped looking for an investor to help it renegotiate its leases and is no longer seeking better terms from its vendors, according to the New York Post. CEO Mitch…

Small Business Reorganization Act Levels the Chapter 11 Playing Field

By Jacqueline Calderín and Robert Charbonneau In the past, Chapter 11 bankruptcy has been cost-prohibitive for small businesses and often entirely barred their access to the bankruptcy courts. But this year, with the advent of the Small Business Reorganization Act of 2019, the landscape is dramatically changing for small businesses, some high net worth…

Co-working operator NeueHouse expands to Miami

Mauricio Zapata, Lyle Chariff, and Luis Guevara, with a rendering of NeueHouse Miami Co-working operator NeueHouse signed a lease for its first Miami location. NeueHouse is partnering with Casa Tua to open its fifth location in the U.S., the company announced on Friday. It will open at 78 Northwest 37th Street in Miami, near the Shops at Midtown Miami.

For US retailers, coronavirus concerns come home. What are their options?

“Community spread” of the coronavirus in the U.S. has led to a growing fear among retailers. Already grappling with supply-chain uncertainty due to the spreading epidemic, retailers are now contending with the prospect of a decline in sales as consumers opt to avoid public spaces. While American cities have yet to witness the…

Judge’s panel rules over Beach Towing and Deco Capital Group’s fight over Sunset Harbour project

As Deco Capital Group and Beach Towing battle over the development of a retail and residential project in Miami Beach’s Sunset Harbour neighborhood, a panel of judges has issued new rulings. In the latest move, the panel of three Miami-Dade Circuit Court judges last week rejected a petition to overturn decisions by Miami Beach officials allowing…

The economic impact of a pandemic : Wages during the Spanish Influenza

How does a pandemic affect an economy? Obviously, it’s a multilayered topic and FRED has limits to what it can reveal. The good news, of course, is that large-scale pandemics are rare. So the economic effects for most of these outbreaks are hard to see by graphing data. But we can take two of the most extreme examples, which will have visible effects in the data…

Chanel to open store in Miami Design District

Chanel signed a lease for a space in the Miami Design District, The Real Deal has learned. The luxury French fashion company will open a store across from Gucci at the entrance to Paradise Plaza on 41st Street in Miami, sources said. Gucci is on the west side, and Chanel will open on the east side. Dacra, led by CEO Craig Robins, declined to comment. Dacra…

Kushner lands $18M loan for Wynwood projects

Rendering of Wynwood 28 and Laurent Morali Kushner Companies closed on a $17.55 million loan for its properties in Wynwood, records show. Wynwood 2 Owner LLC, an affiliate of the New York-based real estate firm, secured the financing from CIT Bank for the properties at 108 and 127 Northwest 27th Street in Miami, where Wynwood 27 and Wynwood 28…

Grand Station tower project in downtown Miami scores $53M loan

Grand Station Partners closed on a $53 million loan for a high-rise rental tower in downtown Miami that counts retired baseball superstar Alex Rodriguez among its investors. The developer, led by Rovr Development principals Oscar Rodriguez and Ricardo Vadia, is building the project as a public-private partnership with the Miami Parking Authority. Kayne…

Video | Integra’s Viewpoint 2020 Report: Macro Factors and the Economy; Office, Retail, and Industrial; Multifamily and Hospitality

Video 1 of 3: Macro Factors and the Economy Video 2 of 3: Office, Retail, and Industrial Properties Video 3 of 3: Multifamily and Hospitality Properties Anthony Graziano, CEO and Chairman of Integra Realty Resources, a provider of commercial real estate market research, valuation, counseling, and consulting services, joins America’s Commercial Real Estate Show…

Toronto REIT to buy Cypress Creek office building for $46M

Slate Office REIT is planning to buy Cypress Financial Center in Fort Lauderdale for $45.5 million. The Toronto-based REIT announced it will buy the 201,305-square-foot office building at 5900 North Andrews Avenue for $226 per square foot. Steelbridge CFC LLC, tied to Miami-based Steelbridge Capital, is the seller. The acquisition is expected to be completed in the…