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

Miami Commercial Real Estate News May 29, 2024: Wynwood Tallest Ever Planned Under Live Local Act; Elle-Branded Tower Launched in Edgewater; More…

Terreno Realty Completes 186 KSF Industrial Facility in Hialeah

Among Terreno Realty Corp.’s recent additions to its industrial portfolio is this 112,000-square-foot facility in Redondo Beach, Calif., which it acquired last year for $45.7 million. Image courtesy of CommercialEdge Terreno Realty Corp. has completed Countyline Corporate Park Phase IV Building 40, a 186,000-square-foot facility in Hialeah, Fla., a Miami submarket.

Art + Tec, partner pick up Edgewater assemblage, as South Florida dev site purchases continue

Developers picked up a 0.7-acre assemblage in Miami’s Edgewater, as South Florida development site purchases continue, despite elevated interest rates and macroeconomic headwinds. Bay Harbor Islands-based Art + Tec Development, led by Gabriel Boano, and partner Silvio Caprino bought the five adjacent lots at 2650 Biscayne Boulevard and 250 Northeast 27th Street…

‘Century Park Villas Place’ to Yield Homes by Year’s End at SW 332nd Street and Krome Avenue in Homestead

Construction has started on Century Park Villas Place, a townhome development in Miami-Dade County. Our sources indicate that the venture will comprise 45 three-bedroom and four-bedroom townhomes, with square footage ranging from 1,351 to 1,610 square feet each. There are four floorplans named Gabriela, Alexa, Karina, and Isabella. Costing $394,990 to $420,990…

Miami Multifamily Market Holds Steady Despite Challenging Market Conditions

Miami’s multifamily sector was on fire from the end of 2020 through the beginning of 2023 as the market received a wave of newcomers, primarily from affluent Northeastern and Western states. During the height of the pandemic, roughly $1 out of every $6 in income that moved nationwide relocated to Florida, more than any other state. And Miami-Dade County saw the…

Wynwood’s Tallest Ever Tower Planned Under Live Local Act

Plan’s for Wynwood’s tallest-ever tower have been filed with Miami’s Planning & Zoning reviewers. For now, the development is known by its address, 2101 NW Miami Ct. It is proposed to rise 48 stories, or 490 feet above ground and 506 feet above sea level, and include: 544 residential units two floors of amenities on levels 9 and 10 19,292 square feet of ground floor retail 621 on-site…

Bazbaz proposes 48-story Wynwood project –– area’s tallest –– under Live Local Act

Bazbaz Development wants to build a 48-story apartment tower in Wynwood under the Live Local Act, marking the tallest project proposed for the Miami neighborhood. The firm filed an application for a 544-unit project on a 1.5-acre assemblage at 2110, 2118 and 2134 North Miami Avenue, as well as 2101, 2129 and 2135 Northwest Miami Court, according to city records.

Developers launch Elle-branded condo tower in Miami’s Edgewater

Elle Residences Miami would be built on the half-acre site at 3618 Northeast Fifth Avenue, which also fronts Northeast 36th Street and I-195. Urban Network is led by CEO Robert Thorne and Vertical is led by CEO Fernando de Nuñez y Lugones, a former development sales executive at One Sotheby’s International Realty and Fortune International Group. The 25-story, 180-unit…

Biscayne Boulevard hotel-residential tower advances

A new hotel and residential tower, along with office and commercial space, is proposed for busy Biscayne Boulevard in Miami’s Edgewater neighborhood. Owner-developer Green Circle Development LLC plans the new building at 3200 NE Biscayne Blvd. The overall project will have 523,318 square feet of floor area and include 108 lodging units, 110 residential units, about 5,000 sf…

Miami Beach hunts for ways to resurrect Roosevelt Theater

Miami Beach commissioners want the city’s administration to reach out to help resurrect the long-shuttered Roosevelt Theater that opened 75 years ago, either for a movie house or some other use that will spur 41st Street activity. Commissioners have voted unanimously to have a conversation with the property owner of the Roosevelt at 770 Arthur Godfrey Road…

Coastline-Nakash Capital Group Revises Plans for ‘the Eden’ at 3550 NW S River Drive in Miami

A Miami developer has revised plans for a mixed-use venture east of Miami International Airport (MIA). Florida YIMBY first reported on this project in October 2023. Previously, the multi-building “Eden” was to host 720 apartments, along with 7,851 square feet of retail and 821 parking spots. However, after receiving feedback from city officials, the project has been scaled back.

Coral Gables City Commission Approves Ponce Park Residences At 3000 Ponce De Leon Boulevard

The Allen Morris Company, led by Allen and Spencer Morris, has received commission approval for their luxury condominium project, Ponce Park Residences, slated for development in Coral Gables. Located at 3000 Ponce de Leon Boulevard, at the intersection with University Drive, this development is poised to become a significant architectural addition to the city.

Miami An Appealing Apartment Market Despite Challenges

As an apartment investment market, Miami has its pros and cons. Strict building codes, high insurance premiums, and the threat of natural disasters are among the latter. However, a new report from Freddie Mac on the area concludes that many residents and investors believe that the potential after-effects of climate-related disasters are well mitigated to justify that uncertainty…

Taurus Development Proposes 15-Story ‘Valencia Tower’ for 11888 SW 220th St in SW Miami-Dade’s Goulds Neighborhood

Our sources point to a 321,330-square-foot mixed-use venture in Miami’s Goulds neighborhood. The proposed Valencia Tower would measure 15 stories above grade, featuring 159 apartments, with 25 percent (about 40) reserved as workforce housing. The Real Deal reports that to qualify as workforce housing in Miami-Dade County, homes would be targeted at those…

Miami Worldcenter scores $120M refi, as South Florida still bucks nationwide lending slump

Miami Worldcenter landed a $120 million refinancing, showing South Florida continues to buck the nationwide lending slump. Entities tied to the project’s master developer, Miami Worldcenter Associates, obtained the refinancing for six lots at the 10-block development, with Deutsche Bank serving as administrative agent for itself and other lenders, according to records.

60-Story ‘Summit Brickell’ Gets FAA Clearance To Rise 765 Feet Above Ground

Summit Brickell, a planned mixed-use development at 1015 Southwest 1st Avenue in Miami’s Brickell neighborhood, has recently secured Federal Aviation Administration (FAA) approval. Filed on April 5 and swiftly approved on May 21, the tower is approved to rise 765 feet above ground or 769 feet above sea level at its highest point. Designed by Corwil Architects and developed…

Lease roundup: West Palm’s Nora District scores tenants, Coral Gables’ Zucca restaurant moving

Developers of the mixed-use Nora District in downtown West Palm Beach scored four tenants. Cameron Mitchell Restaurants’ Del Mar, which offers Mediterranean cuisine, leased nearly 10,000 square feet of indoor space and a 2,000-square-foot patio; and Sana Skin Studio leased 1,800 square feet, according to the developers’ spokesperson. Women’s clothing and accessories store…

CGI Merchant’s Gabriel hotels in Miami, South Beach head to UCC foreclosure sales

CGI Merchant Group faces a double whammy in Miami-Dade County, with both of its Gabriel-branded hotels headed to foreclosure auctions. The two planned Uniform Commercial Code, or UCC, sales come as the South Florida real estate market is feeling the sting from elevated interest rates and skyrocketing insurance premiums. Yet, CGI Merchant, a Coconut Grove-based…

Blue Suede kicks it up, buys second Miami Beach hotel this month

For the second time this month, Blue Suede Hospitality picked up a small Miami Beach hotel, quadrupling its Art Deco portfolio in the city. An affiliate of New York-based Blue Suede, led by CEO Kenneth Lipschutz, paid $16.6 million for Blue Moon Hotel, a 75-key Art Deco property at 944 Collins Avenue, records and real estate database Vizzda show. The deal breaks down to $221,667…

31-Story Midtown Miami Apartment Tower Gets FAA Approval, Advances In Permitting

The Midtown 7 building planned in Midtown Miami has received height approval from the Federal Aviation Administration while making new advances in the permitting process. According to a May 22 determination letter, the tower is permitted to reach a maximum height of 352 feet above ground, or 367 feet above sea level. The developer is listed on the FAA letter as PPF AMLI…

Census: City Of Miami Population Grew Last Year By 1.3%

Miami’s population grew last year, according to newly released Census Bureau data. As of July 1, 2023, the City of Miami’s estimated population stood at 455,924. That is an increase from the estimate of 450,014 residents on the same date in 2022. According to an Axios analysis, Miami’s 1.31% growth rate in 2023 was one of the top ten for large cities in the U.S. last year.

Manoucheri Brothers boosts South Florida multifamily portfolio

Manoucheri Brothers bulked up its South Florida multifamily portfolio by adding a 153-unit apartment complex in Sunrise. An affiliate of the Los Angeles and Aventura-based family office paid $30.4 million for Summerfield Apartments at 3200 Northwest 84th Avenue, records and real estate database Vizzda show. The buyer also assumed a nine-year $18.3 million Fannie Mae…

Downtown Miami could use more businesses. $1 million in grant money is up for grabs

The Miami Downtown Development Authority wants to make downtown Miami an area where people can live, work and play — and it has one million ways it hopes to do that. With its new $1.1 million business incentive program, the Miami DDA will provide businesses with funding to develop and grow downtown. “We want to help mom-and-pop retailers open their businesses,” said…

Can South Florida Condo Demand Endure? Related Group’s Nick Pérez Weighs In

Condo demand across South Florida remains robust thanks to favorable tax policies, the influx of high-income households and a business-friendly environment. The limited single-family stock available is also pushing buyers toward condominiums, especially in waterfront and urban settings, according to Nick Pérez, president of the condominium division at The Related Group.

Self-checkout: Publix expands South Florida portfolio with $59M purchase of retail site anchored by its store

Publix pumped up its South Florida retail holdings by acquiring a shopping center anchored by one of its supermarkets. The Lakeland, Florida-based grocery chain paid $58.5 million for Ramblewood Square Shopping Center at 1201-1327 North University Drive in Coral Springs, records and real estate database Vizzda show. The seller, an affiliate of New York-based…

Margate solicits bids for downtown-style development with new city hall

Margate is soliciting offers to build a municipal mixed-use development that would include a new city hall and serve as the city’s “downtown” area. The development, called Margate City Center, would unfold on 51.4 acres on the east and west sides of U.S. 441 between Royal Palm Boulevard and Atlantic Boulevard. The developer would lease the largely vacant land, which was…

Joint Venture Plans Mixed-Use Redevelopment of The Quay Shopping Center in Fort Lauderdale

A joint venture between BH Group, PEBB Enterprises and Related Group is set to begin the mixed-use redevelopment of The Quay shopping center in the Harbordale neighborhood of Fort Lauderdale.  The joint venture recently acquired the 73,000-square-foot center for $48.5 million. Located at 1515 SE 17th St., the property currently features restaurants, retail space, a marina…

Related, BH, Pebb continue South Florida commercial shopping spree with Fort Lauderdale Waterfront  MXU Purchase

Continuing their commercial shopping spree that began last year, a partnership between three South Florida firms acquired a waterfront mixed-use property in Fort Lauderdale that is primed for redevelopment. Coconut Grove-based Related Group, Aventura-based BH Group and Boca Raton-based Pebb Enterprises paid $48.5 million for The Quay at 17th Street, a 7-acre site…

Plans Filed For Low-Rise Mixed-Use Development At 1102 NW 6th Street In Dorsey Riverbend, Fort Lauderdale

Fort Lauderdale’s Development Review Committee is scheduled to review a new proposal by ILFC Corp, led by Gonzalo Sanchez, for a mixed-use development named DL-Design, located at 1102 NW 6th Street in the Dorsey Riverbend area, on May 28. The project, designed to rise four stories to a height of 49 feet, aims to transform a currently vacant 6,342-square-foot lot into…

Broward City Courts Developers To Remake 50 Acres Of Its Downtown

Cale Curtis left tropical Florida this week to head to the Las Vegas desert. The Margate city manager is on official business, showing up with a pitch to developers at the ICSC conference: remake the downtown core of the city of 58,712 people. Local officials in Margate, located in central Broward County, have put out a request for proposals to redevelop as many as 50…

New York Developer Proposes Cantilevering 22-Story Condo Tower At 2317 N Ocean Boulevard In Fort Lauderdale

Fort Lauderdale’s Development Review Committee is set to review a Site Plan Level III application for The Amalfi, a 22-story luxury condominium tower designed by Kobi Karp Architecture and proposed by Baldwin, New York-based Moore Group Corporation. Located at 2317 North Ocean Boulevard, the project will offer 38 residential units and amenities within a 0.84-acre…

Erickson pays $54M for senior living dev site at Ag Reserve, amid nationwide expansion

Erickson Senior Living paid $53.5 million for a development site at the Agricultural Reserve, where it plans to build a large facility amid the firm’s nationwide expansion. The Baltimore, Maryland-based firm bought the 92.5-acre tract at 8344 Boynton Beach Boulevard in unincorporated Palm Beach County from the William Mazzoni Revocable Trust, led by Patricia Mazzoni…

Office Submarkets Around the Country Bucking the Trend

Highlights: As of the first quarter of 2024, our top 82 primary office markets were evaluated based on their year-to-date change in effective revenue.Among our five regions, while the Northeast was the top ranked region for the multifamily sector, its office sector performance ranked last given its effective revenue declined by 87-bps during the quarter. Similarly, while…

Survey finds tighter credit policies, weaker loan demand among banks

Banks reported tighter standards and a downtick in demand for real estate loans over the past three months in the Federal Reserve’s April 2024 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices. Participating institutions generally indicated a reduced tolerance for risk across the board, broadly impacting both residential and commercial real estate lending…

April figures point to return of sustainable apartment rent growth nationally

April marked the second straight month of solid apartment rent gains, Yardi Matrix’s latest Multifamily National Report revealed. Per the real estate analytics company’s data, the average asking rent nationwide grew 0.3%, or $6, to $1,725 month over month in April. The increase moved rents just $2 below the all-time high set last summer. Year-over-year growth was flat from…

The hospitality industry’s new normal with business travelers

It’s no secret that hotels as an asset class have had a bumpy recovery post-COVID. A large part of the lag has been due to the uneven return of business travel, which has long been a lifeblood of the hospitality sector. The post-pandemic evolution of interactions within and among workplaces, including the universalization of video calls and virtual meetings, has reduced in-person…

New Data and Regulation Show an Insurance Industry in Flux

The Latest Data on Rising Insurance Premiums Insurance premiums have been on the rise in recent years, presenting challenges for borrowers and lenders alike. We assessed rising insurance premiums in detail in a report last summer and have been updating the analysis as 2023 expense data was finalized. Figure 1 shows that average premiums for multifamily…

Is the Distribution Bubble About to Burst? Or Will Industrial Price Gains Nationally Endure?

Industrial property prices and rental rates have experienced substantial increases over the last decade. The onset of the pandemic, which propelled the world into lockdown, shifted consumer habits towards increased online shopping and strained supply chains, thereby elevating the demand for warehousing and, in turn, boosting industrial property and rental values.

Not So Roaring Inflation

Highlights: Tuesday’s PPI report seemed like what would be a continuation of the hotter-than-expected economic trend from the first quarter of the year and while the report did come in above consensus, markets overlooked the report buoyed by downward revisions from the previous month and perhaps along with some help from posterchild meme investor, Roaring Kitty.

Video: Moody’s Analytics Senior Economist Ermengarde Jabir Provides Self-Storage Real Estate Update

A Deep-Dive Discussion into the Resilient Self-Storage Market In a recent episode of America’s Commercial Real Estate Show the spotlight was on the self-storage sector. The discussion featured Ermengarde Jabir from Moody’s Analytics, who provided valuable insights into the current trends, challenges, and future projections for the self-storage industry.

Video: Head of Real Estate Strategy & Research at Cohen & Steers Rich Hill on Current State of Commercial Real Estate

The Discussion: Real Estate Trust’s Signal; The Worst Behind in the US? In a recent interview with Bloomberg Television, Rich Hill, Head of Real Estate Strategy & Research at Cohen & Steers, discussed the current state of commercial real estate and the future of office buildings nationally (observations can apply less in Miami). This conversation took place as the Dow Jones…

Video: Morgan Stanley’s Real Estate Investing Co-CEO Lauren Hochfelder discusses firm’s top real estate investing ‘megatrends’

The Discussion: Morgan Stanley’s Real Estate Investing Megatrends; Insights from Co-CEO Lauren Hochfelder The recent Yahoo Finance episode of “Wealth!” featured Morgan Stanley Real Estate Investing Co-CEO, Lauren Hochfelder, who provided an in-depth analysis of current real estate investing trends amidst a volatile market. With shelter prices rising by 5.5% year over year…

Video: RealPage Director of Research & Analysis, Market Analytics Presents Multifamily Market Updates & Insights

The Discussion: Navigating the Dynamics of America’s Multifamily Real Estate Market In the realm of real estate, few sectors have captured investor interest and market attention quite like multifamily properties. Offering a blend of stability, demand, and potential for growth, multifamily real estate has been a favored asset class for many investors, particularly in the…

Top 3 commercial real estate valuation methods

Cost, sales comparison and income are the three main commercial real estate valuation approaches. Find out more about these methods and other helpful tools for the valuation of commercial properties. 1. Cost approach. The cost approach is a type of commercial property valuation method that involves separating the cost of the building from the land it’s on. The process looks…

Amazon Plans To Sublet Up To 30 MSF Of Warehouse Space After Over-Expanding

fix link https://ca.movies.yahoo.com/news/amazon-plans-sublet-30-million-072126688.html Amazon plans to sublet between 10 million to 30 million square feet of warehouse space, reports say. It’s also thinking of ending or renegotiating some warehouse leases. The e-commerce giant ramped up capacity during COVID-19, but now has to cope with over-expanding.

“We have to live in the real world”: Lawmaker, experts debate Florida’s condo crisis, looming association deadlines

Attorney Roberto Blanch says Dec. 31, 2024 will be “a date that lives in infamy.” It’s one of the key deadlines for condo associations to comply with new condo safety laws that could upend the market for older buildings across Florida. The Miami-based lawyer, a shareholder at Siegfried Rivera, was among six experts who spoke last week at a condo symposium about…

Citi analyst slams stock of leading new construction lender Bank OZK with double downgrade

Major real estate lender Bank OZK is having an awful day on the stock market after an analyst hit the institution hard over two projects it financed. Citi analyst Benjamin Gerlinger downgraded his recommendation on the Bank OZK stock from buy to sell, a double downgrade that skipped over the hold option, Bloomberg reported. Gerlinger also dropped his price target…

As Lending Lags, Residential Developers Add More Layers To The Capital Stack

Not even South Florida’s reputation as a beacon of pandemic-era growth and booming population can keep residential development bustling in the region. Developers searching for financing in South Florida today are facing a decline in institutional lending as market fundamentals soften, pushing down new construction starts. That has sent builders in search of creative solutions…

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May 29, 2024

Video: Moody’s Analytics Senior Economist Ermengarde Jabir Provides Self-Storage Real Estate Update

A Deep-Dive Discussion into the Resilient Self-Storage Market

In a recent episode of America’s Commercial Real Estate Show the spotlight was on the self-storage sector. The discussion featured Ermengarde Jabir from Moody’s Analytics, who provided valuable insights into the current trends, challenges, and future projections for the self-storage industry. Moody’s Analytics provides financial intelligence and analytical tools, including for commercial real estate.

Self-Storage: A Sector in Transition

The self-storage industry has shown remarkable resilience, particularly during the early 2020s. It was one of the few property types that thrived during the COVID-19 pandemic, maintaining high occupancy rates and strong demand. However, as the market adjusts to post-pandemic realities, some shifts are becoming evident.

Occupancy Trends: Historically, self-storage exhibits significant seasonality. The first and fourth quarters typically see higher vacancy rates due to lower moving activity during these periods. In the first quarter of 2024, the national vacancy rate for self-storage stood at 13.3%. While this is slightly elevated, it is expected to stabilize around 12.7% by the end of the year, aligning with 2023 figures. Looking ahead, vacancy rates are projected to decrease to the low 12s and high 11s by 2025 and 2026, respectively.

Rental Rates: Both climate-controlled and non-climate-controlled units have experienced a decline in rental rates. The trend started in 2023, with a 3.4% drop in climate-controlled unit rents. This decline continued into the first quarter of 2024 but at a slower pace, indicating that the worst of the rate drops may be behind us. Projections suggest a slight decline of 6% for climate-controlled units by the end of 2024, followed by modest growth in subsequent years.

Supply and Demand Dynamics

One of the critical factors influencing the self-storage market is the supply pipeline. Jabir highlighted a noticeable slowdown in new supply, driven by higher construction costs, labor shortages, and rising interest rates. The number of new units coming online has decreased significantly from previous years. For instance, while 125,000 units were completed in 2023, only 20,000 units were added in the first quarter of 2024. This trend is expected to continue, with completions slowing down to just over 100,000 units by 2025.

Self-Storage Investment and Cap Rates

Despite the challenges, investor demand for self-storage remains robust. Cap rates, although slightly elevated, continue to be attractive, particularly for high-performing properties. The sector’s ability to maintain comparatively low cap rates underscores its perceived stability and long-term viability.

Future Outlook

The future of the self-storage industry appears positive, albeit with moderated growth. As new supply diminishes and demand stabilizes, both occupancy rates and rental rates are expected to improve gradually. The industry’s performance will also benefit from ongoing domestic migration trends, particularly to the Sun Belt regions, and a steady influx of foreign immigrants.

Conclusion

The self-storage sector has demonstrated its resilience and adaptability in the face of economic fluctuations. While the market is currently experiencing a period of recalibration, the long-term outlook remains optimistic. Investors and stakeholders can expect steady, sustainable growth as the sector continues to adapt to changing market conditions.

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May 24, 2024

Video: Head of Real Estate Strategy & Research at Cohen & Steers Rich Hill on Current State of Commercial Real Estate

The Discussion: Real Estate Trust’s Signal; The Worst Behind in the US?

In a recent interview with Bloomberg Television, Rich Hill, Head of Real Estate Strategy & Research at Cohen & Steers, discussed the current state of commercial real estate and the future of office buildings nationally (observations can apply less in Miami). This conversation took place as the Dow Jones historically surpassed 40,000.

Current State of Office Spaces

Nationwide office vacancies are at a staggering 20%, with expectations of further increases. Hill noted a disparity in performance among different office categories. New, clean, and green office spaces, especially in prime locations like New York City, are doing exceptionally well. For instance, Hudson Yards and One Vanderbilt have seen high occupancy rates. In contrast, Class B and C properties, typically built in the 1970s and 1980s and lacking significant capital expenditure, are struggling. Hill emphasized that while office spaces are facing challenges, they only constitute 20% of the commercial real estate market and 3% of the US listed real estate market.

Lending Environment and Property Valuations

The lending environment for real estate investors is a critical issue. Commercial real estate is a heavily leveraged asset class, with most properties purchased with substantial debt. This leverage has led to significant pressure on property valuations. Hill pointed out that property valuations have generally declined by around 20%, with office valuations down by about 35%. This decline is driven not by poor fundamentals but by higher financing costs and reduced availability of debt.

The Role of Lenders and Borrowers

Hill explained the complex dynamics between lenders and borrowers, likening it to a “prisoner’s dilemma.” Banks are not keen on owning office spaces, as regulatory capital charges for owning property on balance sheets are higher than modifying loans at a high loan-to-value (LTV) ratio. This has led to modifications and extensions of loans, a practice some might see as “kicking the can down the road,” but Hill views it as a necessary adjustment in a challenging environment.

Private Credit in Real Estate

The growth of private credit in the real estate market has been notable. In 2015, private credit accounted for about 10% of total lending, peaking at around 20%. Although this market share has slightly decreased, private credit remains a significant player. Hill noted that private credit can fill gaps left by traditional banks, particularly in underwriting and working out loans.

Future Outlook

Despite the challenges, Hill suggested that the feared collapse in commercial real estate lending has not materialized. Instead, the market is experiencing a slow adjustment. While property valuations are expected to drop further, reaching a peak-to-trough decline of 25-30%, this might signal a bottoming out. Sellers capitulating and buyers stepping in could indicate a healthy contrarian signal for the market.

In conclusion, while the commercial real estate market, particularly office spaces, faces significant hurdles, there are signs of stabilization. The strategic modifications in lending practices and the role of private credit provide a framework for navigating these challenges. The market’s slow adjustment, rather than a sudden collapse, offers a cautiously optimistic outlook for the future.

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May 24, 2024

Miami Commercial Real Estate News May 22, 2024: Live Local Act Amended; 1,219-Unit 1.8M sf Overtown Development Approved; $200M+ Fisher Island Dev Site Hits Market; More…

Co-Living Community ‘i5 Wynwood’ Reaches Completion At 51 NW 28th Street In Wynwood

i5 Wynwood, a newly completed co-living community in Miami’s Wynwood neighborhood, is now welcoming its first residents. Located at 51 Northwest 28th Street, between North Miami Avenue and Northwest 1st Avenue, this 9-story residential building was designed by Arquitectonica and has interiors by Michael Wolk. Developed by Related Group and W5 Group, i5 Wynwood…

i5 Wynwood Co-Living Community Reaches Completion With 215 Suites

Hundreds of new residents are about to begin moving into a newly completed co-living building known as i5 Wynwood. Leasing and move-ins for i5 Wynwood have now begun, according to a press release. Residents will have their own private bedroom and ensuite bathroom, inside a 3 or 4 bedroom apartment. The living area and kitchen will be shared. Prices start at…

35-Story Domus Brickell Center Announced, With Sales Now Underway

Developers have announced plans and launched sales for a new 35-story tower called Domus Brickell Center. Domus Brickell Center is planned to include 579 fully finished and furnished units allowing short term rentals. Prices range from the $500,000’s to $1.5 million. Brickell’s Metrorail and Metromover stations are a block away from the project site. The Domus concept…

Ricardo Dunin, Peruvian partner launch sales of second Domus-branded Brickell condo project

Ricardo Dunin and his Peruvian partner, Juan Carlos Tassara, are launching sales of their second Domus-branded short-term rental-friendly condo tower in Miami’s Brickell neighborhood. Dunin, CEO of Miami-Based Oak Capital and co-founder of North Development, his joint venture with Tassara, said his aim for Domus Brickell Center, as the project is named, is affordability…

Three Proposers Shortlisted For Downtown Miami 24-Hour Metrocenter Project

Downtown Miami’s Metrocenter development is advancing. The county has now shortlisted three prequalified proposers for the project, according to a memo to commissioners dated last week. Multiple county properties are planned to be redeveloped to make way for Metrocenter. Plans call for around 27 acres in the downtown government center area be redeveloped into…

51-Story Downtown Miami Tower Gale Miami Hotel & Residences Opens Next Week, After 3 Years Of Construction

The Gale Miami Hotel & Residences will open on June 1, according to the Herald. The 51-story tower, formerly known as Natiivo, broke ground in February 2021, so construction took a little over three years. The 160 hotel rooms at The Gale will be offered for both short and long-term stays. The building also includes restaurants (one of which will open in July), 125,000 square feet…

Refinancing for 352-Room EAST Miami Hotel Arranged

Colliers’ Hospitality Practice Group has arranged the refinancing for EAST Miami Hotel, a 352-room hotel located in Miami’s Brickell district. The property is part of Swire Properties’ $1 billion Brickell City Centre development, which features more than 500,000 square feet of shops and restaurants. EAST Miami Hotel opened in 2016 and features meeting rooms, a fitness center…

Wynwood’s tech office boom hits a short circuit

New York-based R&B Realty wrapped a large vinyl sign around the ground-floor windows of Gateway at Wynwood recently. The advertisement is meant to draw the attention of prospective tenants to the 13-story mixed-use building’s 3,500 square feet to 30,000 square feet spaces that are available for lease. Some suites are move-in ready, and an entire floor is available…

Integral Group Breaks Ground on 99-Unit Affordable Seniors Housing Community in Opa-Locka

The Integral Group has broken ground on Wellspring Apartments, an affordable seniors housing community in the Miami suburb of Opa-Locka. Wellspring Apartments will feature 99 units, 67 of which are reserved for residents earning below 50 percent of the area median income (AMI), and the remaining 32 units are for residents earning below 60 percent AMI. The 81,350-square…

Resia nabs $71M construction loan for Golden Glades apartments, as South Florida defies financing slump

Resia scored a $71 million construction loan for a 420-unit apartment complex in Golden Glades, as South Florida continues to defy the nationwide financing slump. The development firm plans four five-story buildings and a 705-space garage on a 7.1-acre site between Northwest 159th Street and Northwest 161st Street, immediately east of I-95 in unincorporated Miami-Dade County…

PortMiami Increases Economic Impact

PortMiami’s economic impact has increased by 48% to US$61.4bn in eight years, according to a study conducted by Martin Associates, which accounts for 4% of the state of Florida’s US$1.6tn Gross Domestic Product (GDP). The study used the same methodology that was carried out in the 2016 report and measured PortMiami’s impact in terms of jobs, business revenue…

Fisher Island potential dev site hits market, bids starting at $200M

Just when it seemed like Fisher Island was tapped out of development sites, a nearly 10-acre fuel depot on the exclusive enclave is now in play. TransMontaigne Partners, a Denver-based energy company that operates fossil fuel storage terminals, is putting its facility at 1 Fisher Island Drive on the market, according to an offering memorandum obtained by The Real Deal. The asking…

MetroCenter development of 17 downtown acres advancing

Miami-Dade County’s $10 billion downtown utopian vision, MetroCenter, had a little more money thrown at it last week. The project, Mayor Daniella Levine Cava said in a presentation last August, is a “transformative redevelopment of the … government center campus.” The county’s Infrastructure, Operations and Innovations Committee voted unanimously to send a resolution…

Miami Downtown Development Authority adds to expansion incentives

Miami’s Downtown Development Authority (DDA) is offering $1.1 million in incentives for businesses to expand operations in the area, stimulate the economy and attract high-quality jobs for local talent. The grant program expands previous incentives and includes funding for ground floor retail, start-up operations and mid-size businesses seeking to move or grow in downtown’s…

South Florida price rises slowing, but still outpace nation

South Florida’s cost of living as measured by the Consumer Price Index is still rising faster than in the nation’s urban areas as a whole, but that pace continues to decline from the soaring inflation of recent years, new federal data reveal. While urban inflation across the nation was 3.4% in April, South Florida inflation grew faster, a 4.5% annual pace, data from the US Bureau of Labor…

FAA Approves Summit at Brickell Tower To be Built At 765 Feet Above Ground

The Federal Aviation Administration has approved construction of the Summit At Brickell tower after a relatively short review process. The project height was filed with the FAA on April 5, with an approval letter issued this morning. Summit At Brickell is planned to rise 765 feet above ground, or 769 feet above sea level at its highest point, according to the approval letter. The 60-story…

Photo: Nearly Completed Arch At Downtown Miami’s Signature Bridge

A photo shows a nearly completed arch at the Signature Bridge under construction in Downtown Miami. The Florida Department of Transportation is spending $840m on a rebuild of the I-95 highway interchange, where it crosses I-395 and the 836 expressway. As part of the project, six arches are being built as a design feature next to the overpasses passing through Miami’s…

Urban Development Review Board Votes In Favor Of Massive 1.8M sf Mixed-Use Development In Overtown

The Urban Development Review Board (UDRB) has voted in favor of a mixed-use development project at 650 Northwest 8th Street and 678 Northwest 7th Street in Overtown, Miami. The planned project, a collaboration between 0101 Miami Properties, LLC, led by Jorge and Jose Mas, and 8th Street Connections Holdings, LLC, an affiliate of Terra, will encompass over 1.8…

1,219-Unit Overtown Development Approved, Construction Timeline Announced

Miami’s Urban Development Review Board has voted in favor of a massive Overtown development, and a construction timeline has been announced by the developer. The UDRB vote 4-0 last week to recommend approval as presented. Developer Terra is working in partnership with an entity controlled by the Mas family on the new community. Three phases are planned.

Miami board green-lights plans for Overtown, Midtown and downtown Miami towers

Developers David Martin, the Más family, Michael Simkins and Gil Blutrich received the green light from Miami’s Urban Development Review Board last week for planned residential projects from Overtown to Midtown Miami. Board members called the three projects “beautiful.” The UDRB unanimously recommended approval of all three developments at its meeting last…

Space Availability in Large Industrial Properties Continues To Rise in South Florida

The slump in industrial leasing continues into 2024, with all South Florida markets seeing slight upticks in vacancy and slowing rent gains. Annual leasing activity has dropped between roughly 20% and 35% below levels achieved during the peak of the pandemic, and except for Fort Lauderdale, leasing activity also remains depressed relative to pre-pandemic average trends.

Vantage Capital pays $21M for 108-unit Hialeah rental complex amid investment sales slowdown

Vantage Capital Partners scooped up a 108-unit apartment complex in Hialeah for $20.6 million, marking one of the few multifamily investment sales this year. Coconut Grove-based Vantage bought the San Sherri Apartments at 13101345 West 29th Street from a pair of affiliates tied to Brooklyn-based Freshwater Group, according to records and real estate database Vizzda..

Miami A Launch Market For Uber’s New Shuttle Service

Uber has announced plans for a new shuttle service, and Miami will be the first to experience the new service. Uber said it is partnering with Hard Rock Stadium to launch the new service for concerts this summer. Miami is one of four launch cities named for Uber Shuttle, and the only one with a confirmed destination announced. Exact routes to and from the stadium haven’t…

28-Story Kendall Apartment Tower Shoma 88 Announced Under Live Local Act

Miami-based developer Shoma Group is planning a 28-story apartment tower in Kendall, thanks to Florida’s Live Local Act. The Live Local Act overrides many local zoning rules statewide, if developers commit to building 40% of units as workforce housing. The new Kendall project is known as Shoma 88. “Kendall holds a special place in our hearts,” says Masoud Shojaee…

Construction Progress: Airstream Trailer Amenity Installed At Wynhouse Miami

Construction continues progressing on Wynhouse Miami, an 8-story mixed-use building at 2200 Northwest 1st Avenue in the heart of Miami’s Wynwood neighborhood. Designed by Nichols Architects with interiors by ID & Design International (IDDI) and developed by Fisher Brothers, the recently topped-off, approximately 115-foot-tall structure will deliver 308 rental residences…

Tenant rumble at Robert Rivani’s Wynwood Jungle in Miami

Robert Rivani’s Black Lion is in a legal tussle with a tenant that allegedly backed out of opening a restaurant at Wynwood Jungle in Miami. An affiliate of Columbus, Ohio-based restaurateur Brian Swanson last week sued an affiliate of Miami-based Black Lion Investment Group that owns the 23,000-square-foot retail and restaurant building at 50 Northwest 24th…

Atlantic Pacific, nonprofit partner plan 124-unit apartment project for disabled adults in Kendall

Atlantic Pacific Companies and nonprofit Casa Familia will develop a 124-unit apartment complex in Kendall for tenants with intellectual and developmental disabilities. The Village at Casa Familia will be developed in three phases on 9 acres at 11025 Southwest 84th Street in unincorporated Miami-Dade County, according to a project filing submitted to the county last week. The first phase…

Alta Development Plans ‘SoMi Walk’ for 5959 SW 71st Street in Miami

Alta Development, led by Henry Pino, has plans for a 15-story complex. Upon completion, the proposed SoMi Walk condo would feature 310 units, measuring 490 to 800 square feet each, with prices from $500,000 to $860,000. The development, designed by Miami-based Architecture Form Group, includes a host of communal amenities, such as indoor pickleball courts…

Retail Rents Rise in South Florida as Demand Continues to Outpace Supply

The retail sector in South Florida is undergoing adjustments that reflect the region’s dynamic economic landscape and evolving consumer preferences. One notable trend is evident in the restaurant sector, where owners increasingly aim to expand by opening new locations and entering lucrative markets.  This trend is primarily driven by consumer spending, particularly the continual…

Plans Filed For 8-Story Mediterranean-Style Mixed-Use Development At 33 Alhambra Circle In Coral Gables

33 Alhambra ProCo, LLC, an affiliate of a joint venture partnership between local developer MG Developer and Peru-based VYV, has submitted plans for an 8-story mixed-use development known as Alhambra Parc, also referred to as 33 Alhambra, in Coral Gables. The project aims to develop the 1.12-acre site at 33 Alhambra Circle, which was acquired in 2022 for $19,250,000.

CP Group, DRA Advisors Execute 40,000 SF of Office Leases at Miami Tower

CP Group and DRA Advisors have executed nearly 40,000 square feet of office lease transactions at Miami Tower, a 47-story, Class A office tower located at 100 S.E. 2nd St. in downtown Miami. The executed deals include two lease renewals (H&R Block and Transwestern), one expansion (law firm Assouline & Berlowe) and seven new leases, all of which were for Miami…

850-Foot Residences At Mandarin Oriental on Brickell Key To Break Ground In 2025

Swire Properties has launched sales for The Residences at Mandarin Oriental, Miami and released additional details on the development. Two towers are planned, connected by a landscaped podium. The South Tower will rise 66 stories, or 850 feet, while the North Tower will rise 426 feet. Both are being designed by Kohn Pedersen Fox. The South Tower will have 228 condos…

1,000-Foot Cranes Approved At Cipriani Construction Site In Brickell

The Federal Aviation Administration has approved the heights of several tower cranes planned at the 80-story Cipriani Residences construction site in Brickell. The first crane is now approved to reach a height of 1000 feet above ground, or 1003 feet above sea level. The second crane is approved to reach a height of 980 feet above ground, or 983 feet above sea level. The permanent…

Deal For Brightline To Build Commuter Rail System Nearly Ready

Negotiations on a deal for Brightline to build a commuter rail system on its tracks are “advancing very nicely,” according to a recent report on the SFBJ. Miami-Dade commissioners will probably vote on the deal in June or July, the report said. While Brightline will build the system, it will likely be operated by the South Florida Regional Transportation Agency, which operates Tri-Rail.

Construction Dates & Additional Details Released For Midtown Miami’s Tallest Tower Ever

The developers planning the Midtown 1 tower have announced an expected construction start date and additional details. The tower is proposed to rise 48 stories, or 596 feet above ground, making it the tallest ever in Midtown Miami. There will be 329 luxury condominium units, according to a statement released by the developers. Arquitectonica is designing the building…

New York Hotel Operator Proposes Two New Hotels At 5101 Blue Lagoon Drive Near Miami Airport

New York-based hotel owner MCR, under the M2 Miami Airport Blue Lagoon, LLC, has unveiled plans for two new hotels adjacent to its Hilton Miami Airport Blue Lagoon. The proposal filed as a pre-application with Miami-Dade County officials concerns the 20.6-acre property at 5101 Blue Lagoon Drive, which currently hosts the 14-story, 508-room hotel developed…

WeWork holds onto leases for most of its South Florida portfolio – still unclear on Miami, South Beach outposts

WeWork will hold onto its leases for most of its South Florida co-working spaces, while the future of its South Beach and downtown Miami outposts remains in doubt. The firm, which filed for Chapter 11 reorganization in November, is working to emerge from bankruptcy by the end of May, most recently filing a plan to keep 89 co-working spaces in the U.S. and Canada.

3 firms to relocate to recently renovated Doral building

Three companies secured a total of 14,201 square feet in a Doral office building that recently underwent a multimillion dollar renovation. Grupo Eulen, Vanderweil Engineers, and Trust Lending have signed leases and will relocate to the Offices at Doral Square, a 141,246-square-foot building at 8600 N.W. 36th Street. Grupo Eulen will move its Miami office into a 6,026-square-foot…

Developer plans 245-unit senior living facility in Weston

South Florida developer Terry Salzman won site plan approval for the development of a six-story, 245-unit senior living facility in Weston. Fort Lauderdale architecture firm Synalovski Romanik Saye LLC designed the 325,808-square-foot building with 113 units for independent living, 108 for assisted living, and 24 for memory care. A resident of Weston for the last 25 years…

286-Apartment ‘Cypress Crossing’ Could Replace Park-and-Ride in Fort Lauderdale

Oakland Park’s Development Review Committee will review a proposal for Cypress Crossing tomorrow, May 23rd. The mixed-use venture would replace a park-and-ride lot, comprising three buildings: one eight-story building and two 7,500-square-foot retail buildings. According to the South Florida Business Journal, the mid-rise building would offer 286 apartments…

Mixed-Use, 71-Apartment ‘1435 ArtXchange’ Set for 1429 to 1435 Sistrunk Boulevard in Fort Lauderdale

Sirrom Commercial hopes to move one step closer to accomplishing 1435 ArtXchange, a mixed-use project in Fort Lauderdale. The city’s Community Development Agency (CRA) board will consider a $6 million forgivable loan for the workforce housing development which, upon completion would deliver 71 apartments, 5,844 square feet of commercial bays (five total), and a 218…

NRIA’s successor proposes 48-story apartment tower in Fort Lauderdale

The successor to the formerly embattled National Realty Investment Advisors proposed a 48-story, 429-unit apartment tower in Fort Lauderdale’s Flagler Village area. A city review panel told a subsidiary of AIRN Holding Company on Tuesday to consider redesigning the ­proposed multifamily tower to address excessive podium height and add visual drama to the roofline.

Former funeral home site in Wilton Manors to be redeveloped as boutique hotel with 123 rooms

The owners of a former funeral home in Wilton Manors won city approval to redevelop the property as a 123-room boutique hotel called the Wilton Hotel. The Wilton Manors City Council unanimously approved a rezoning of the hotel development site during the council’s meeting Tuesday night, along with a developer’s agreement and deed restrictions on the development site.

New Renderings Of Broward Elevated Light Rail That Could Eventually Reach Sawgrass

The Sun Sentinel has published new renderings of a people mover system and an elevated light rail system to be built in Broward County. The light rail system is planned to be elevated. It will run 3.5 miles in a first phase, from an intermodal center at Fort Lauderdale airport to the Broward County Convention Center and Port Everglades. Eventually, it could be extended to Sawgrass Mills.

Pompano Beach senior rental project lands $28M in construction loans, as affordable apartments defy financing slump

A low-income apartment project for senior residents in Pompano Beach landed a $27.5 million construction loan package, as affordable housing remains immune to the multifamily financing slump. The Housing Authority of Pompano Beach and Jacksonville-based apartment developer Vestcor are building the 100-unit Provident Place with a pair of three-story buildings…

Ares drops $140M for Boca Raton apartments in biggest South Florida multifamily sale this year

Ares Management bought a 284-unit apartment building in Boca Raton for $139.7 million, marking the biggest multifamily sale in South Florida so far this year. Los Angeles-based Ares scooped up the eight-story Ceru property at 5205 Congress Avenue from Fort Lauderdale-based Mainstreet Capital Partners, according to records and real estate database Vizzda. The sale defies the…

Brookfield buying big US multifamily portfolio including properties in Coral Springs, West Palm Beach

Brookfield has agreed to pay US$1.55bn for a 7,300-unit apartment portfolio concentrated in Florida and Texas, Green Street News can reveal. The investment behemoth is buying the 23-property package from Starwood Capital, which evidently pieced the portfolio together over the last five years. The deal values each apartment at US$212,000. It’s not clear if Miami Beach-based…

Lease roundup: Financial firms lease at Steve Ross’ West Palm towers, Pura Vida is in expansion mode

Steve Ross’ Related Companies signed six new tenants in downtown West Palm Beach, amid the developer’s hefty bet on the area’s office market. JPMorgan Chase leased space at the 20-story 360 Rosemary building at 360 South Rosemary Avenue, which Related completed in 2021, Bloomberg reported. Also, billionaire hedge funder John Paulson’s Paulson Capital and private equity…

What’s Trending In Industrial Space? Automation In Towering Cold Storage Boxes

Many in the cold storage space are using ASRS to more strategically manage their inventories. In one instance, an occupant called AmeriCold constructs their new buildings around such a system, and in many cases, they stretch 150 feet in height. To put this in context, that is approximately 12 stories high, and roughly four times the height of the modern concrete…

The Supermarket Rental Sweep: Analyzing Multifamily Rent Premiums Generated by Grocery Store Anchors

Across the country, both urban centers and established suburbs have contended with a mismatch between the desire to densify with contemporary mixed-use development and their existing land use patterns of single-use, low-density development. In particular, many grocery stores were built as sprawling, low-density stores in central locations that today present an inefficient…

Multifamily Distress Rate Nearly Doubles Nationally In April

The worst isn’t over for the distress-riddled multifamily industry, according to new monthly financial indicators. The overall distress rate set a new record of 8.35% in April, according to real estate data firm CRED iQ, with multifamily leading the increase. Multifamily’s distress rate increased from 3.7% in March to 7.2% in April, CRED iQ reported. The jump was led by a loan…

DeSantis Signs Live Local Amendments, Boosting Tax Breaks For Developers

Florida Gov. Ron DeSantis signed into law changes to the Live Local Act that are meant to clarify its rules while providing a boost for developers looking to build affordable and workforce housing. The amendments were one of 11 bills DeSantis signed into law Thursday. Among the changes, which are seen as largely favorable to developers, are increased tax breaks for affordable…

Live Local changes could propel workforce housing boom in South Florida

A “coming soon” sign posted at the construction site of an affordable housing development in Hollywood, a market brimming with new projects, prompted an unexpected response. More than 21,000 people applied to live in the 113-unit future development, called Pinnacle 441. Pinnacle opened a lottery for the units March 15 and closed it 10 days later. It’s no secret that South Florida…

The Weekly Dirt: It’s go time for Live Local projects

Gov. Ron DeSantis signed long-awaited amendments to the Live Local Act into law last week, a relief for developers banking on the changes. Senate Bill 328 generally boosts and clarifies developer incentives under the workforce housing law that the Florida Legislature passed in 2023. It took more than two months for the latest bill to make it to DeSantis’ desk in early May.

Video: Morgan Stanley’s Real Estate Investing Co-CEO Lauren Hochfelder discusses firm’s top real estate investing ‘megatrends’

The recent Yahoo Finance episode of “Wealth!” featured Morgan Stanley Real Estate Investing Co-CEO, Lauren Hochfelder, who provided an in-depth analysis of current real estate investing trends amidst a volatile market. With shelter prices rising by 5.5% year over year and high mortgage rates coupled with low housing inventory, investors face a challenging landscape. Hochfelder…

How to use the debt service coverage ratio in real estate

The debt service coverage ratio, or DSCR, is a useful metric for assessing a borrower’s ability to cover debt obligations. In real estate, it can measure how easily the net income a property generates can cover its mortgage. The DSCR is one tool real estate investors often use when evaluating potential investment properties. It’s also an important factor lenders consider when investors…

Innovative financing for workforce housing

Half of all U.S. renter households spent more than 30% of their income on rent in 2022, according to the Harvard Joint Center for Housing Studies. In many markets, families are spending the majority of their income on housing costs, leaving limited resources for other needs. When cost burdens are that widespread, low-income renters aren’t the only ones struggling…

U.S. Apartment Transactions Nationally Slump to Lowest Level Since Pandemic

Investments in U.S. apartments continued to decline in 2024’s 1st quarter amid the high cost of borrowing and economic uncertainty. Though the asset class remains an attractive commercial real estate investment, sales have fallen well below pre-pandemic levels. Nearly 1,040 apartment properties changed hands at a value of $20.6 billion during 1st quarter 2024, according…

Bank OZK Has Dominated Construction Lending. Its CEO Has No Plans To Slow Down

No one has handed out more U.S. construction loans over the past year and a half than a midsized bank in Little Rock, Arkansas. In fact, no entity is even close. Bank OZK handed out more than $3B in real estate construction loans in 2023, while its closest competition, JPMorgan Chase and Wells Fargo, each originated less than $2B, according to MSCI. As most banks are pulling…

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May 22, 2024

Video: Morgan Stanley’s Real Estate Investing Co-CEO Lauren Hochfelder discusses firm’s top real estate investing ‘megatrends’

The Discussion: Morgan Stanley’s Real Estate Investing Megatrends; Insights from Co-CEO Lauren Hochfelder

The recent Yahoo Finance episode of “Wealth!” featured Morgan Stanley Real Estate Investing Co-CEO, Lauren Hochfelder, who provided an in-depth analysis of current real estate investing trends amidst a volatile market. With shelter prices rising by 5.5% year over year and high mortgage rates coupled with low housing inventory, investors face a challenging landscape. Hochfelder, however, sees this as an opportune time to invest, driven by several megatrends reshaping the sector. Note that this discussion is about commercial property throughout the United States. Thus, observations can apply less to Miami area property.

Real Estate Market Overview

The real estate market is undergoing a significant correction, with broad repricing across various asset classes. Hochfelder pointed out that some assets are distressed for valid reasons, but many are performing well in terms of income growth yet are priced 20-30% lower. This, she argues, presents a unique entry point for investors.

Key Megatrends Driving Real Estate Investment

Hochfelder highlighted several key megatrends that are creating substantial investment opportunities:

1. Growth in E-commerce: The continued expansion of e-commerce is driving demand for warehouses. This trend is expected to persist as more consumers shop online, necessitating efficient supply chain logistics to deliver goods quickly.

2. Realignment of the Global Supply Chain: Globalization is undergoing a U-turn, with event-driven supply shocks prompting companies to rebuild their infrastructure. This shift is increasing the demand for warehouses as businesses adapt to the new supply chain dynamics.

3. Aging Demographics: The aging population is changing housing preferences and needs. As people live longer and seek different living arrangements, there is a growing demand for varied housing options, including senior living facilities.

Impact of Interest Rates on Commercial Real Estate

Real estate, being a levered asset class, is significantly impacted by interest rates. Hochfelder noted that many asset owners are currently under pressure due to high interest rates, which make refinancing difficult. However, Morgan Stanley focuses on maintaining durable capital stacks that can withstand any interest rate environment. They invest in properties where income growth can outpace rate expansions, ensuring resilience across economic cycles.

Location Versus Dislocation

Traditionally, real estate investment was guided by the principle of “location, location, location.” However, Hochfelder emphasized that today’s strategy should also consider “dislocation, dislocation, dislocation.” This involves understanding changes in where people live and work. For example, the COVID-19 pandemic led to significant shifts, with people moving from traditional hubs like New York City to emerging markets such as Miami and Dallas. These migrations are influencing where investors should place their bets.

Conclusion

In summary, Lauren Hochfelder’s insights underscore that while the current real estate market presents challenges, it also offers substantial opportunities driven by transformative megatrends. Investors need to consider these broader shifts, focus on durable investment strategies, and be mindful of evolving location dynamics to successfully navigate the real estate landscape.

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May 21, 2024

Video: Developer Don Peebles Discusses Real Estate, Lists Miami Among Cities of Opportunity

The Discussion: The Future of the Housing Market and Commercial Real Estate; Insights from Industry Leader Don Peebles

Introduction:
Recent data indicate that the housing market is beginning to cool, as evidenced by an increase in “For Sale” signs and a rise in new mortgage applications. The market is experiencing a complex interplay of factors that are shaping its trajectory. To provide a deeper understanding, Don Peebles, Chair and CEO of Peebles Corporation, shared his expert insights into the current state of the housing and commercial real estate markets during a recent interview.

Housing Market Dynamics:
Peebles highlighted a noticeable shift in the housing market. Despite a rise in new mortgage demands and an increase in single and multifamily housing starts, the market remains supply-constrained. This limitation in supply continues to drive up prices in most major metropolitan areas across the United States. Peebles noted that 93% of the top 50 metropolitan markets are seeing price increases in both rents and home prices.

However, specific regions like Florida, which has seen significant price appreciation since 2018, are starting to experience a pullback. This moderation is a natural consequence of the rapid price increases over the past few years. Despite this, the overall housing market remains robust due to the persistent supply constraints and high demand.

Challenges in Commercial Real Estate:
Turning to the commercial real estate sector, Peebles pointed out the challenges posed by the lending environment. Regional and local banks, which have significant exposure to commercial office buildings, are facing difficulties as many of these properties are struggling, particularly in major markets. The pandemic has exacerbated these issues, leading to a cautious approach from banks regarding new loans.

At 2:34 in this video, Miami, along with Boston, San Francisco, and Charlotte, is displayed among a list of  “cities of opportunity.”

Opportunities in Private Credit:
Amid these challenges, Peebles identified private credit as a significant opportunity in the commercial real estate market. Since regulatory changes discouraged banks from making high-volatility commercial real estate loans, private credit has stepped in to fill the gap. With banks now hesitant to issue new loans due to rising interest rates, private credit lenders can capitalize on the opportunity to secure high-quality loans without facing as much competition.

Peebles explained that private credit underwriting is more individualized compared to the formulaic approach of banks, allowing for better decision-making and potentially more secure investments. This adaptability and focused approach make private credit a promising avenue in the current market environment.

Regional Market Insights:
Peebles highlighted specific markets such as Boston and the Bay Area as having significant opportunities due to their supply-constrained nature. These regions, known for their high demand and limited supply, continue to perform well. He also mentioned that despite the general trend of a cooling market, some areas still offer attractive investment opportunities due to their unique supply and demand dynamics.

Future Outlook:
Looking ahead, Peebles provided a cautionary outlook for the commercial real estate market. He described the current situation as a “calm before the storm,” with many local and regional banks holding substantial commercial real estate loans that have not yet faced foreclosure actions. As these foreclosures begin to increase, there could be a ripple effect leading to job declines and significant losses in the commercial banking sector by 2025.

Conclusion:
Don Peebles’ insights offer a nuanced perspective on the housing and commercial real estate markets. While the housing market shows signs of cooling, it remains resilient due to supply constraints. In contrast, the commercial real estate sector faces significant challenges, but opportunities in private credit offer a silver lining. Investors and stakeholders should prepare for potential turbulence ahead, especially in the commercial sector, while remaining vigilant for emerging opportunities.

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May 17, 2024

Miami Commercial Real Estate News May 15, 2024: 1,200 Units Proposed for Overtown; 276-Unit Hamilton to Hit Market; 108-Unit Hialeah MF Trades for $21M; More…

Aimco plans to list waterfront Hamilton apartment tower, its second major Miami asset to hit market

Aimco’s waterfront Hamilton apartment tower in Edgewater will hit the market, marking its second major Miami property to list for sale this year. The real estate investment trust will put the 28-story, 276-unit Hamilton at 555 Northeast 34th Street on the market this quarter, according to Aimco’s filings to the Securities and Exchange Commission. An asking price was not…

David Martin, partners propose 1,200 resi units in Overtown, luxury condo tower in Midtown Miami

Developer David Martin is teaming up with partners on two separate projects: a 1,215-unit residential complex in Miami’s Overtown and a 400-unit condo in Midtown Miami. The developers will go before the city’s Urban Development Review Board on Wednesday, as will a Canadian firm seeking approval of its proposed residential tower in downtown Miami. Martin’s Coconut…

World’s Largest Cruise Terminal – MSC’s $450M Facility – Nearing Completion At PortMiami

PortMiami has seen a number of giant cruise terminal’s completed in recent years, but none are bigger than the new MSC Terminal that is now moving closer to completion. MSC’s $450m PortMiami facility will be the world’s largest cruise terminal when it opens later this year. It will have capacity for 36,000 guests each day, with 3 cruise berths. A parking garage for 2,400 cars…

Legal battle escalates at Spanish billionaire Amancio Ortega’s Epic condo-hotel

Condo owners at downtown Miami’s Epic Hotel & Residences are escalating a legal standoff with the global real estate titan who owns the hotel portion. Epic West Condominium Association sued an affiliate of Grupo Ponte Gadea, the real estate investment arm of Spanish billionaire Amancio Ortega, on May 6 in Miami-Dade Circuit Court. The complaint alleges that Ponte Gadea’s…

Photo: Construction Progress At Wynhouse Miami, Where 308 Apartments Being Built

Wynhouse Miami now has nearly all its glass installed, a new photo shows. Construction on the 8-story building began last summer. A top off ceremony was held in March. A $117.5 million loan provided by JP Morgan Chase and affiliates of Canyon Partners is financing construction. Wynhouse is planned to include: 308 rental residences approximately 26,000 square feet…

LA-Based Cigar Company Tatuaje Opens New Distribution Center In Doral

While Tatuaje might be known as a Los Angeles-based cigar company, it now has a new distribution center in the Miami, Fla. suburb of Doral. Adding a Miami-area warehouse gives the company the opportunity to fulfill orders and optimize shipping costs and times for its retailers. The company says that the goal is to ship products to the eastern part of the country from Miami…

Construction Starts on 99-Unit ‘Wellspring Apartments’ at 14701 NW 27th Avenue in Opa-locka

Construction has started on Wellspring Apartments, a senior housing development in Opa-locka. The six-story building will offer 99 residences: seven studios, 81 one-bedroom units, and 11 two-bedroom units. According to Multi-Housing News, 67 units will be reserved for residents making 50 percent or below of the area median income (AMI). The remaining 32 will be available…

Kayak Miami Beach hotel sale results in loss for Varde

Varde Partners wasted no time unloading a Miami Beach hotel, even taking a loss on the quick sale of the Kayak-branded property. An affiliate of Varde, a Minneapolis-based global alternative investment firm, sold the two-story, 51-unit hotel at 2216 Park Avenue for $12.8 million to New York-based Blue Suede Hospitality Group, records and real estate database Vizzda show.

Cranes Now In Place For 100-Story Waldorf Astoria Miami

Two tower cranes are now in place at the construction site of the 100-story Waldorf Astoria Hotel and Residences Miami tower. The Waldorf Astoria Miami is planned to rise to a supertall height of 100 stories, or 1,038 feet above ground and 1,049 feet above sea level. That is taller than any building ever built in Miami, by far. The building is planned to include 360 residential…

NoMad Residences Wynwood Gets Construction Financing, Cranes Installed

NoMad Residences Wynwood now has its cranes in place, and a construction loan for the project has been issued. The developers of the project announced earlier this month they has been issued $141.5 million in construction financing. The financing includes a $51.5 million mezzanine loan from Related Fund Management, the investment management arm of New York’s Related…

Berkadia Arranges $54.5M Refinancing for Downtown Miami Apartment Tower Pier 19 Residences & Marina

Berkadia has arranged a $54.5 million loan for the refinancing of Pier 19 Residences & Marina, a 199-unit apartment tower located along the Miami River in downtown Miami. Charles Foschini, Christopher Apone and Shannon Wilson of Berkadia’s Miami office secured the five-year, fixed-rate loan through Apollo on behalf of the borrower, Neology Development. Located at 1951…

County selling 17 acres it needs to Costco at big discount

A split Miami-Dade commission last week voted to sell water and sewer land to developer Michael Swerdlow to build a Costco at far below appraised value and without a viable alternative to fill county needs. The county didn’t seek to sell, but Mr. Swerdlow made unsolicited offers, $4.5 million last year and about $9 million last week as the deal evolved. Under the 8-5 vote…

Miami luxury rentals’ development outpaces demand

Even though the desire to live in luxury residential buildings is high, the supply is currently outweighing that strong demand, according to high-end luxury residential developers. There’s no question that South Florida is the place where many Americans want to live and demand is high but recently supply is higher, said Asi Cymbal, chairman of Cymbal DLT. “We believe this…”

Henry Pino’s Alta buying South Miami hotel, plans short-term rental condo

Developer Henry Pino is buying a development site in South Miami for $17 million to $19 million, with plans for a 310-unit short-term rental-friendly condo project, The Real Deal has learned. Pino’s Kendall-based Alta Development is under contract for the Rodeway Inn South Miami-Coral Gables hotel at 5959 Southwest 71st Street, Pino said. The plan is for a 15-story building…

Golden Glades getting $17 million bike-pedestrian bridge

Six major highways converge at an interchange in northern Miami-Dade County. The Golden Glades Interchange, however, isn’t known only for its complicated design and heavy traffic. In March 2023, a tractor-trailer rig’s cargo struck a bridge at the interchange, prompting four nights of road closings to make repairs. Major traffic jams occurred last August near the interchange…

LatAm Airlines to expand its MIA VIP club; New Lease Proposed

A new lease proposed for the VIP club for Latam Airlines Group at Miami International Airport would add substantially to the club’s space, the club’s use, and the airport’s revenues. The group would spend $4 million to $5 million to build out its new space, growing the current 10,264-square-foot space of the club on the third floor of Concourse J to 17,884 square feet.

Miami International Airport seeks Zzzzz payoff at sleep centers

Awakening to a global trend, Miami International Airport plans to contract with a Boynton Beach company to offer sleep center amenities to waiting passengers who aren’t looking for the full overnight amenities of the airport’s internal hotel. After advertising for bidders and getting just one that met airport specifications, the Airport and Economic Development Committee this…

South Florida Leads U.S. In Office Attendance Recovery

People come to South Florida for the sunshine, palm trees and beaches, but the region’s workforce is more likely than any other U.S. city’s employees to be in the office. South Florida leads the nation in office attendance compared to pre-pandemic levels, according to new data from Placer.ai, which tracks mobile phone data. Office visits are just 14% off from April 2019 in the Miami metro…

Joe Rasco: Key Biscayne mayor targeting flooding, shoreline, traffic

Joe Rasco is a senior management executive with over 30 years of leadership in local government and large businesses. After moving to Key Biscayne in 1978, he fought alongside other residents to incorporate the town and establish the first village council as well as the village’s independent fire and police departments. In 1998, the community elected Mr. Rasco to his first term…

Developers Close On $141.5 Million In Financing For NoMad Residences Wynwood

Related Group and Tricap have secured $141.5 million in financing for NoMad Residences Wynwood. The project, underway in Miami’s Wynwood Arts District, received a $51.5 million mezzanine loan from Related Fund Management and a $90 million senior construction loan from Kennedy Wilson. The nine-story condominium tower commenced construction in October 2023…

Related, Macklowe buy more units at North Bay Village condo deemed unsafe

The Pérez family’s Related Group and New York developer Harry Macklowe acquired more units at a waterfront condo building in North Bay Village, where they plan a luxury residential development on a larger assemblage of land. The partnership paid $7.9 million for 14 units at Majestic Isle, at 7946 East Drive. It now controls just over half of the building, or 20 of 56 units…

First Renderings Released For Midtown Miami’s Tallest Tower Ever

The Midtown 1 tower which has been in planning for several years has been sent to review by Miami’s Urban Development Review Board, with renderings of the tower publicly released for the first time Midtown 1 is planned to become the tallest tower ever in Midtown Miami, at 48 stories and 596 feet above ground. The new building is planned to include: 400 residential units 27,658…

Revealed: 60-Story Clear Residences Planned In Downtown Miami

Plans and renderings for a new downtown Miami tower called Clear Residences have been made public for the first time, after being in planning since at least 2022. Clear Residences is planned as a 60-story tower, rising 690 feet above ground. The new building is planned to include: 544 residential units 3,680 square feet of commercial 157 parking spaces on five levels…

“Largest affordability crisis” in US: Miami-Dade is short 90K housing units

Miami-Dade County is short more than 90,000 affordable units, as residents struggle to find and keep attainable housing across South Florida. The county is lacking 90,181 units for households earning below 80 percent of the area median income, which comes out to about $75,000 a year, according to a report released by the nonprofit Miami Homes For All. Miami-Dade is facing…

1,219 Residential Units Planned At Former Beckham Stadium Site In Overtown

Plans and renderings for a residential project on the former David Beckham stadium site in Overtown have just been revealed for the first time. The new buildings and parking garages are planned to rise between 3 and 12 stories. Plans for the development include: 1,219 residential units 16,337 square feet of commercial 1,798 parking spaces Arquitectonica is the architect.

Ken Griffin, Orlando Bravo Join Developers, CEOs With Plan To Supercharge Miami

A group of South Florida’s heavy-hitting business leaders has banded together to put forward a plan they say will help Miami capitalize on pandemic-era momentum, overcome its growing infrastructure challenges and solidify its position as a global destination for business and talent. The Partnership for Miami launched this week with a 118-page report outlining Miami’s shortcomings…

Photo: Nameplates Installed At Brickell’s Tallest Office Tower, Opening Soon

830 Brickell is nearing completion as Brickell’s tallest ever office tower, with nameplates now installed at the front entrance. The 55-story tower stands at 724 feet. The building was nearly 100% leased long before completion. Pricing per square foot reached record-breaking levels for Miami. Tenants will include Microsoft, Citadel, Kirkland & Ellis, Sidley Austin, Winston & Strawn…

EIG, Midtown Group Acquire 20.8-Acre Mixed-Use Development Site in Homestead

The Estate Cos. (EIG) and Midtown Group have acquired a 20.8-acre development site located in Homestead, approximately 40 miles southwest of Miami, for $14 million. The companies received approval last September to develop Soleste Midtown, a mixed-use project, at the site. Upon completion, the development will comprise 354 residential units, as well as 43,000 square feet…

Maersk Launches Air Freight Gateway In Miami

A.P. Moller-Maersk (Maersk) extended its air freight operations footprint in April with the launch of a full-service, in-transit gateway solution in Miami, Florida. According to Maersk, the Miami gateway will act as a critical node in the company’s worldwide air freight network. John Wetherell, Global Head of Air Freight Forwarding at Maersk, said: “Our Miami expansion…”

Developers Plan 48-Story Condo Tower With 400 Units At 3501 NE 1st Avenue In Midtown Miami

Terra and Lion Development Group have unveiled plans for Midtown 1, a 48-story residential building located at 3501 Northeast 1st Avenue in Midtown Miami. Scheduled to be reviewed by Miami’s Urban Development Review Board on May 15, this 598-foot-tall structure will offer 606,856 square feet of space, encompassing 400 condominium units, 27,658 square feet…

Terra Plans 48-Story Condo Tower With Healing, Sculpture, Rainforest Gardens

Terra Group and Lion Development Group have unveiled a plan for a 606-foot-tall tower with a trifecta of themed gardens, bringing greenery to the edge of Midtown and the Miami Design District. Midtown 1, planned for a 1.6-acre parcel at 3501 NE First Ave., is an Arquitectonica-designed tower set to rise 48 stories from a now-vacant site. Its 400 condos would sit…

UDRB Filing Reveals 1.8-Million-Square-Foot Mixed-Use Development Proposed In Miami’s Overtown Neighborhood

Plans have been filed for a massive mixed-use development at 650 Northwest 8th Street and 678 Northwest 7th Street in Overtown, Miami. The project is a collaborative effort between 0101 Miami Properties, LLC, led by brothers Jorge and Jose Mas, and 8th Street Connections Holdings, LLC, an affiliate of Terra. The proposed development would yield 1,827,392 sf…

The Weekly Dirt: Will developers’ Brickell office bet pay off?

Planned office towers in Brickell are devoid of preleasing. Will they get built? Miami’s financial district’s success since the pandemic has made headlines across the country. It’s the site of billionaire hedge fund manager Ken Griffin planned mixed-use office tower on the bay, where his firms Citadel and Citadel Securities will have their headquarters. So, developers are doing what developers…

RCLCO takes big hit offloading Miami Design District buildings

In a perplexing move, RCLCO Fund Advisors offloaded two retail buildings in Miami’s Design District, one of the nation’s top retail real estate submarkets, at a steep $17.9 million discount. In one deal, Bethesda, Maryland-based RCLCO sold a two-story, 23,645-square-foot building at 3800 Northeast Miami Court to an affiliate of Miami Beach-based Comras Company, records show.

Developer Files Plans For Clear Residences, A 60-Story Tower At 130 SE 1st Street in Downtown Miami

Toronto-based Blutrich Holdings, led by Israeli-Canadian real estate investor Gil Blutrich, has filed plans for Clear Residences, a 60-story mixed-use building at 130 Southeast 1st Street in Downtown Miami. Designed by Kobi Karp Architecture & Interior Design with KEITH as the landscape architect, the nearly 690-foot-tall structure would yield approximately 666,432 square feet…

ROVR lands $66M construction loan for 300-unit apartment project amid Miami River development boom

ROVR Development scored a $66 million construction loan for a 300-unit apartment project on the Miami River. Coral Gables-based ROVR will start construction this month on the eight-story Tides building with a 444-space garage at 2750 Northwest South River Drive in Miami, according to the development firm’s news release. Los Angeles-based alternative investment manager…

Chick-fil-A to Open Four New Restaurants in Metro Miami

Atlanta-based fast-casual brand Chick-fil-A will open four new restaurants in metro Miami. Chick-fil-A has broken ground on the first of the units, a Cutler Bay restaurant that will span 4,800 square feet. Dustin Griffiths of Chick-fil-A and David Emihovich of Katz & Associates represented Chick-fil-A in the lease negotiations. Michael Berkowitz of Berkowitz Development…

Chetrit scores appeals court win against lender in foreclosure case of Miami Beach hotel

The Chetrit Group scored a win in the legal battle against its lender over the Tides hotel in South Beach. This week, the Third District Court of Appeals reversed a motion for summary judgment issued in a lower court in late 2022 over the $45 million loan backing Tides, a 45-key hotel at 1220 Ocean Drive in Miami Beach. An affiliate of Miami Beach-based Safe Harbor Equity…

FAA Permits Issued For 39-Story Mixed-Use Tower At 128 SW 7th Street In Miami’s Brickell Area

The Federal Aviation Administration (FAA) has issued permits for a 39-story mixed-use building planned at 128 Southwest 7th Street in Miami’s Brickell financial district. Designed by Gensler, developed by Focus Development Inc (Focus) and tentatively dubbed Miami Starlite, the development is projected to yield 685,710 square feet of space. This includes 517 residential units…

Vantage Capital pays $21M for 108-unit Hialeah rental complex amid investment sales slowdown

Vantage Capital Partners scooped up a 108-unit apartment complex in Hialeah for $20.6 million, marking one of the few multifamily investment sales this year. Coconut Grove-based Vantage bought the San Sherri Apartments at 13101345 West 29th Street from a pair of affiliates tied to Brooklyn-based Freshwater Group, according to records and real estate database Vizzda.

Lissette Calderon’s Miami River apartment project scores refi amid multifamily distress

As multifamily landlords and developers face a distressed market, Lissette Calderon scored fixed-rate refinancing for a Miami River apartment building. New York-based Apollo Asset Management provided the $54.5 million loan to Calderon’s Miami-based Neology Development Group, a press release states. The fixed-rate mortgage is for five years and is secured by Pier 19…

Lease roundup: Macchialina’s owners plan new restaurant in Miami’s Little River

The hospitality group that owns Macchialina in South Beach will open a new restaurant in Miami’s Little River. Pirolo Hospitality leased 3,600 square feet at 7220 North Miami Avenue for its Bar Bucce, an Italian pizzeria, wine shop and market, according to a news release from the tenant and landlords. Bar Bucce is expected to open this year. Pirolo Hospitality is led by chef Michael…

‘Alexan Kendall’ Makes Headway at 9030 Southwest 158th Avenue in the Hammocks

An affiliate of Dallas-based Trammell Crow Residential has filed a pre-application for the second phase of Alexan Kendall, the first phase of which is still under construction in West Kendall. The expansion would require 278,076 square feet of new construction, offering 224 studio and three-bedroom apartments in three six-story buildings. The homes’ square footage would span…

Miami Airport Moving Forward With South Terminal Expansion

Miami Dade’s Aviation Department is moving forward with the construction of Concourse K, as part of an expansion of the South Terminal. A public notice was issued this week requesting design-build services. Miami Today first reported on the notice. The new building will have three levels that match the finish of the existing South Terminal. It is planned to accommodate…

Photo: Construction At Multiple 65-Story Towers In Park West

Construction of multiple towers in Park West is continuing to progress, a new photo shows. The 65-story E11even Hotel & Residences is rising in the foreground. It will have 449 condos, 36,852 square feet of commercial space, 2,049 square feet of office space, and four floors of parking garage. Foundation equipment can be seen doing piling work at the site of the second 65-story tower…

Partial Demolition At Former Omni Mall Approved

A permit for partial demolition at the former Omni Mall has been approved. The demolition permit was applied for in November 2022, and approved last week. Most of the wait time was for the applicant to make corrections to plans, a permit tracker shows. According to notes attached to the permit, partial demolition is planned at the former JCPenney space, along with work…

Is the new Liberty Square delivering on its promises to public housing residents?

Within a decade, Liberty City will look totally different. That is by design. A 2016 partnership between Miami-Dade County and Related Urban, the affordable housing arm of Related Group, aimed to redevelop Liberty Square, the first public housing project in the southeastern United States, in order to transform the community. Gone will be the pre-World War II row…

James Curnin sets sights on multifamily projects as he sells unfinished Venetian Islands spec house for $23M

James Curnin’s Clara Homes sold an unfinished waterfront spec house in Miami Beach’s Venetian Islands for $23.1 million. Records show Curnin’s Clara Homes sold the house at 416 West San Marino Drive to Justin Korsant, after asking as much as $29 million for the property. Korsant, CEO of Miami-based family office Long Light Capital, plans to spend another $5 million…

Day in the life of: Erik Rutter of Oak Row Equities

Count Erik Rutter, 31, among the New York developers betting big on South Florida. Rutter is the co-founder of Oak Row Equities, formerly known as Carpe Real Estate, a private equity and development firm with six mixed-use projects in Miami and 4 million gross square feet under development. He launched the company in 2018 alongside his partner, David Weitz…

Jockey Club unit owners hit with $347K judgment in suit tied to common areas

A Jockey Club condo association was hit with a $347,000 judgment tied to its lawsuit. against the owner of the common areas, marking the latest chapter in the nearly decade-long legal saga. The waterfront Jockey Club consists of three condo towers on 22 acres at 11111 Biscayne Boulevard in unincorporated Miami-Dade County, near North Miami. The towers sit on a total of 8 acres.

“Financially devastating”: Receiver takes over embattled Pembroke Pines condo complex

A receiver took over an embattled Pembroke Pines condo association that residents allege was long mismanaged by former board members, The Real Deal has learned. The lakefront Heron Pond complex, consisting of 19 two-story beige buildings, has been repeatedly slammed by the city over structural safety issues. Since last summer, Pembroke Pines officials ordered the…

Developer Proposes 48-Story Apartment Tower At 203 NE 3rd Street In Fort Lauderdale

Secaucus, New Jersey-based National Realty Investment Advisors (NRIA) has filed plans for a 48-story apartment tower with ground-floor retail space at 203 Northeast 3rd Street in Fort Lauderdale. Proposed to rise on a 0.66-acre site comprising four vacant land parcels west of NE 3rd Avenue and east of North Andrews Avenue within the Downtown Regional Activity Center…

Developer Proposes 19-Story Intracoastal-Facing Condo Tower At 3000 East Oakland Park Boulevard in Fort Lauderdale

Claridge Homes, based in Ottawa, Canada, and led by Bill Malhotra, has proposed a new condominium development along the Intracoastal Waterway in Fort Lauderdale. The city’s Development Review Committee will review plans for 3000 Waterside at 3000 East Oakland Park Boulevard today. Claridge Homes 3000 Waterside, an affiliate of the Canadian developer…

Bankrupt Developer Forges Ahead With 48-Story Project In Fort Lauderdale

A New Jersey-based development firm that operated as a Ponzi scheme isn’t letting its ongoing bankruptcy stopping it from advancing a proposal for a soaring apartment tower in Fort Lauderdale. An affiliate of National Realty Investment Advisors, which has been in Chapter 11 bankruptcy restructuring since June 2022, wants to build a 48-story tower at 203 NE Third Street…

Miami’s real estate ‘king’ tells Key Biscayne Village Council of purchase and big plans for the Sands Beach Resort

It’s one of Key Biscayne’s last connections to “yesteryear.” Now, Terra Group CEO David Martin, the proclaimed “King of Miami” when it comes to real estate development, plans to turn the Silver Sands Beach Resort, a quaint motel built in 1956 at 301 Ocean Drive, into a modern 56-residential, climate-resilient condo with a floating beach bar. The Village Manager, Steve…

Green Mills Group Proposes ‘Peace Village’ for 5088 Summit Boulevard in West Palm Beach

Fort Lauderdale-based Green Mills Group hopes to move forward with Peace Village, a four-story affordable housing development for residents 55-plus. The community would offer 104 apartments aimed at those making 70 percent of the area median income (AMI). Palm Beach County reports that a one-person household earning 80 percent of the AMI would make $51,500 a year.

US Sugar scoops up 1,300 acres in Palm Beach County for $27M

U.S. Sugar Corp. scooped up a 1,346-acre agricultural tract in west Palm Beach County for $27.2 million, marking sugar cane producers’ continued appetite for South Florida land. Clewiston-based U.S. Sugar bought the tract east of Brown’s Farm Road and north of Dairy Road in an unincorporated area of the county from an entity tied to Costa Rica-based sugar and honey…

Bank branches vanishing with acquisitions, tech changes

Technology and bank acquisitions continue to guide the conversation in the financial world as banks decide on leasing sites. “I think there are a number of reasons that the number of primary bank offices and branches have been declining, and perhaps one of the major reasons is that … community banks are consolidating, and as they consolidate, they have branches frequently in…

Video: RealPage Director of Research & Analysis, Market Analytics Presents Multifamily Market Updates & Insights

The Discussion: Navigating the Dynamics of America’s Multifamily Real Estate Market In the realm of real estate, few sectors have captured investor interest and market attention quite like multifamily properties. Offering a blend of stability, demand, and potential for growth, multifamily real estate has been a favored asset class for many investors, particularly in the…

CRE Sales Nationally Are Ticking Back Up Despite Stagnant Interest Rates

Commercial real estate sales transaction data is starting to show signs of recovery, though numbers are still well below the low-interest-rate days of the early pandemic. The number of CRE sales still dropped 8% in the first quarter of 2024 compared to a year earlier, according to an analysis from Moody’s. But that is substantially less of a drop than the last quarter of 2023…

Starwood CEO Barry Sternlicht Warns Of Commercial Real Estate’s Balance Sheet Crisis

Starwood Capital Group CEO Barry Sternlicht said commercial real estate is facing a balance sheet crisis, even though the underlying assets are performing. Borrowers will have trouble refinancing debt because interest rates have risen 500 basis points, Sternlicht said, during a May 8 interview with Bloomberg at the Milken Institute Global Conference in Beverly Hills, California.

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May 15, 2024

Video: RealPage Director of Research & Analysis, Market Analytics Presents Multifamily Market Updates & Insights

The Discussion: Navigating the Dynamics of America’s Multifamily Real Estate Market

In the realm of real estate, few sectors have captured investor interest and market attention quite like multifamily properties. Offering a blend of stability, demand, and potential for growth, multifamily real estate has been a favored asset class for many investors, particularly in the Southeastern United States. However, as with any investment landscape, understanding the nuanced dynamics of the market is paramount to making informed decisions and maximizing returns.

A recent conversation between the host of America’s Commercial Real Estate Show and Carl Whitaker, Director of Research and Analysis at RealPage, shed light on the current state of the multifamily sector nationally, touching upon key trends, challenges, and opportunities. The discussion is national in scope, thus observations can apply less to Miami and other South Florida markets.

The Current Landscape of Multifamily Property: Balancing Supply and Demand

Multifamily properties have experienced a significant rise in demand over the past several years, buoyed by factors such as population growth, urbanization trends, and shifting preferences towards renting. However, this surge in demand has been met with a corresponding increase in supply, with more multifamily units being added to the market than at any point since the mid-1980s.

Carl Whitaker notes that while demand remains robust, evidenced by record absorption rates, the sheer volume of new supply entering the market has tempered rental growth and occupancy rates in many areas. This dichotomy underscores the fundamental principle of supply and demand dynamics, where an imbalance can impact performance metrics despite strong underlying demand.

Regional Variances: Identifying Performance Hotspots

Within the multifamily landscape, certain markets stand out for their resilience and performance. Locations such as Austin, Jacksonville, and Dallas-Fort Worth have experienced above-average absorption rates, fueled by demographic trends and economic vitality. Conversely, smaller coastal Florida markets have witnessed rent cuts due to an influx of supply outpacing demand.

Atlanta, a major hub in the Southeast, reflects both the broader trends and unique challenges within the multifamily market. While demand remains strong, concerns arise regarding rent collections and occupancy levels, particularly in submarkets with a higher concentration of workforce housing.

Navigating Financing and Investment Considerations

Financing trends, including the increasing prominence of agency financing through entities like Fannie Mae and Freddie Mac, underscore the attractiveness of multifamily assets to investors. However, evolving cap rates and pricing dynamics necessitate a nuanced approach to valuation and investment strategy.

Whitaker highlights the importance of recognizing the uniqueness of each property and market, cautioning against broad generalizations when assessing investment opportunities. Moreover, while interest rates have risen from historic lows, they remain within a range conducive to investment activity, albeit with some headwinds.

Emerging Trends and Future Outlook

The conversation delves into emerging trends such as office-to-residential conversions, reflecting adaptive responses to evolving market conditions. While not yet widespread, such conversions could present viable opportunities in select markets, particularly those experiencing housing shortages.

Looking ahead, Whitaker identifies supply as the primary headwind facing the multifamily sector, with ongoing challenges related to lease-up properties, concessions, and pricing dynamics. However, he remains optimistic about the long-term prospects of markets in the Sun Belt and Southeast, driven by demographic shifts and sustained demand for rental housing.

Key Takeaways:

1. Supply-Demand Dynamics: Understanding the interplay between supply and demand is crucial for gauging market performance and investment potential.

2. Regional Variations: Market performance varies across regions, influenced by factors such as population growth, economic conditions, and housing supply.

3. Financing Considerations: Agency financing, evolving cap rates, and interest rate trends shape investment decisions, necessitating a comprehensive approach to valuation and risk assessment.

4. Emerging Trends: Monitoring emerging trends, such as property conversions and demographic shifts, can uncover new investment opportunities and market niches.

In conclusion, while the multifamily real estate market faces near-term challenges related to supply dynamics, long-term fundamentals remain robust. Astute investors who adapt to evolving market conditions, leverage regional insights, and maintain a disciplined investment approach stand poised to capitalize on the enduring appeal of multifamily properties in the years to come.

May 13, 2024

Miami Commercial Real Estate News May 8, 2024: 523-Foot Racquet Club Planned for Brickell; Medley Industrial Portfolio Trades for $18M; More…

Construction Begins At 41-Story Biscayne Boulevard Tower

Developers held a groundbreaking event last month for a 41-story tower on Biscayne Boulevard, and photos show that work is now underway. The tower, known as 2600 Biscayne, will span an entire city block, one block away from a planned Northeast Corridor rail stop. When complete, it will have 187,000 square feet of office and retail space on the lower levels, with 399 rental…

East Capital adds to industrial portfolio with $18M complex near Medley

East Capital Partners expanded its portfolio near Medley, acquiring an industrial complex for $17.5 million. An affiliate of Darien, Connecticut-based East Capital acquired eight warehouses totaling 85,138 square feet and a storage yard at 7401 Northwest 68th Street, records show. The buildings on the nearly 4-acre site were completed in 1973. The seller, an entity managed…

Society Wynwood Reaches Completion, Adding 348 New Apartments

One of Wynwood’s biggest ever apartment complexes is now open. Society Wynwood, with 318 apartment units, recently reached completion with the first tenants moving in. Most of the apartments are traditional units, with some rent-by-the-bedroom units also available. Residents have access to over 82,000 square feet of amenities. There’s also 50,210 square feet…

Formula 1’s Miami Grand Prix Shatters Record For TV Audience

U.S. TV viewership of the Formula 1’s Miami Grand Prix this past weekend has broken records. An average of 3.1 million viewers in the U.S. watched the event, ABC said. That is 48% higher than last year’s 2.1 million viewers, and also above the previous record of 2.6 million U.S. viewers for the inaugural Miami Grand Prix in 2022, which held the previous U.S. TV viewership record.

Short-term rental-friendly projects now represent half of South Florida’s new condo pipeline

Developers have increasingly tailored their condo projects toward investors, and a new report shows how strong that trend is: More than half South Florida’s planned condo development pipeline is for short-term rental-friendly buildings. Of 20,613 condos in the works from Miami’s Coconut Grove to Hillsboro Beach in Broward County, 10,335 units in 31 buildings allow buyers to rent…

Short-term rental-friendly condos eating up more of Miami’s housing pie

The ISG report, which tracks new projects from Miami’s Coconut Grove to Hillsboro Beach that are east of I-95, stated that of the more than 20,600 condos in the works, 50.1 percent of those units will be able to be rented out with few to no restrictions, like an Airbnb-type of condo. We have said this before, but it’s true. Developers are flocking to this trend because of strong buyer…

Atlantic Sapphire salmon farm near Homestead seeks $250 million public loan

A Norwegian fish-farming complex that plans to produce at build-out 1 billion servings of salmon a year near Homestead at what would be the world’s largest aquaculture facility is to get a $250 million loan boost via industrial revenue bonds up for approval by county commissioners this week. The commission already approved the loan package in April 2023, but under…

Awaited ultra-luxury office tower 830 Brickell vows 2024 finish

Brickell’s much-anticipated Class-A-plus office tower, 830 Brickell, prepares for its completion in the second half of the year. “The construction is progressing,” said Andrew Trench, executive managing director at Cushman & Wakefield. “What we call sort of a super superstructure, it’s complete.” Final touches are being made on the glass curtain wall and amenity spaces.

Construction materials costs in Miami-Dade stay level

Construction costs in Miami-Dade remain flat without any signs of escalation, according to those involved. Some of the commodities like concrete and steel have leveled off to the point that they are holding their prices throughout the duration of the project, which was not the case in 2022 and 2023, said Al Fernandez, the CEO of ANF Group. “But of course, that has a lot to do with…

Miami International Airport moving to add new concourse, gates

Miami International Airport will add six passenger gates in a new Concourse K beside the South Terminal under a four-year, $621 million contract with a firm that is to design and build the project within four years, according to a just-released call for services. The project is part of a sweeping $6.8 billion plan for airport-wide modernization in the next five to 15 years, paving…

Miami administration building at Freedom Park wins OK

The City of Miami’s latest design for its new government administration building, as part of the rising Miami Freedom Park, has earned praise and a recommendation for approval. The proposed facility is eight stories with government offices spread out over 235,000 square feet, with an attached parking garage for up to 903 vehicles, at a site at 1822 NW 37th Ave. The new city building…

Tricera, Lndmrk and Simkins team up for $23M Society Wynwood retail investment in mixed-use project

Ben Mandell, Alex Karakhanian and Michael Simkins joined forces to buy the ground-floor retail space of Society Wynwood, an almost completed mixed-use project, The Real Deal has learned. A joint venture between Mandell’s Tricera Capital, Karakhanian’s Lndmrk Development and Simkins’ Lion Development Group paid $22.5 million for 32,000 square feet at the base…

New Images Of Brickell’s Mercedes Tower; 100 Units Sold In Just 4 Days

New renderings of the 67-story Mercedes Benz Places tower under construction in Brickell were unveiled at an event last week. The building “has already set a sales record,” with 100 units sold in just the first four days of marketing. The image reveal event took place last week at The Concours Club ahead of the Formula 1 Miami Grand Prix weekend. It was attended by Toto Wolff…

Site Work, Phased Vertical Permits Applied For At Former Miami Arena Site

Construction of a massive apartment project at the former Miami Arena site continues to move closer with new permits filed in recent days. On April 8, a site work permit was applied for with Miami’s Building Department. Coastal Construction is listed as the contractor, and the plan was accepted for review on April 25 (it isn’t yet approved). On May 6, a phased vertical permit…

Brickell City Centre Retail At 100% Occupancy, Again

Brickell City Centre’s shopping area continues to be fully occupied, according to developer Swire Properties. Swire’s earning reports released yesterday showed that 100% of the retail space at the shopping center was occupied as of the company’s quarter end on March 31. The retail space was also 100% occupied at the end of the previous quarter ending December 31. Retail sales…

Miami-Dade County Reviewing Proposal For 23-Story Babylon Racquet Club At 240 SE 14th Street In Brickell, Miami

Bay Racket Club, LLC has submitted a pre-application for developing the Babylon Racquet Club, a 23-story mixed-use building planned at 240 Southeast 14th Street in Brickell. Positioned on a pie-shaped lot approximately 19,164 square feet (0.439 acres) in size, where SE 14th Street meets Brickell Bay Drive along Biscayne Bay, the project is designed to become downtown Miami’s…

523-Foot Babylon Racquet Club Planned In Brickell

A mixed-use tower called the Babylon Racquet Club is now moving through the approval process in Brickell. The Babylon Racquet Club intends to serve as downtown Miami’s “premier racket sports health/wellness center,” according to a Letter of Intent submitted to Miami-Dade planners. The area continues to add new population and business activity but is severely lacking in…

Estate, partner plan mixed-use project with 354 apartments in Homestead

Estate Companies and a partner plan a mixed-use project with 354 apartments and commercial space in Homestead, marking developers’ continued bet on south Miami-Dade County. Estate and Midtown Group, led by principal Jon Samuel, bought the 20.8-acre vacant development site on the southeast corner of Campbell Drive and Northeast 30th Avenue for $14 million…

Brickell office slump? Nearly 3M sf planned, zero preleased

As Miami’s Brickell became the epicenter of South Florida’s office leasing flurry during the past four years, developers jumped into the area with plans for three towers that would add 2.8 million square feet to the market. But the influx of out-of-state companies signing major leases for big blocks of space in the tri-county region has ended, data shows. The dearth of leases from…

66-Story Aston Martin Tower Reaches Completion, 99% Sold

They said it couldn’t be done. Now, downtown Miami’s Aston Martin Residences tower has opened, with almost all of the residential units already sold. Developer G&G Business Developments held a ribbon cutting ceremony on April 30, during Miami’s race week. The event was also attended by Aston Martin executives and Miami Mayor Francis Suarez. The tower includes 391 luxury…

Miami Developer Tibor Hollo Dies At 96

Developer Tibor Hollo has died, according to the Herald. The Hungarian-born Hollo was one of the first to develop Miami’s urban core in a big way, with projects including the Omni mall and multiple surrounding towers. Brickell’s 85-story Panorama Tower, which is currently the tallest building in Miami, was built by Hollo’s Florida East Coast Realty when he was in his late 80s.

South Florida developer Tibor Hollo dies at 96

South Florida developer Tibor Hollo, who helped shape Miami’s skyline, died at the age of 96. Hollo, a Holocaust survivor, founded his family owned Florida East Coast Realty after moving to Miami in 1956, and served as chairman and president. The residential, commercial and mixed-use developer most recently built Panorama Tower in Brickell, one of the tallest…

First Glass Installed At Miami Worldcenter’s Rumored New Apple Store

The first glass has been installed at an under-construction Miami Worldcenter building reported to be an Apple Store. According to a construction permit filing, a 1-story building is being built with 16,629 square feet of retail, adjacent to Worldcenter’s World Square. A recent report said a lease agreement between Apple and Worldcenter has been filed with Miami-Dade.

North American Industrial Big Box Leasing Is On A Tear

2024 could be the third-highest year for industrial big-box leasing, CBRE projects. Even though a spate of new construction in 2023 brought a record 413 million SF to market, it expects that abundant supply to be short-lived. “Investor sentiment has significantly improved from last year as industrial operating fundamentals remain solid and the credit market has stabilized,” said C…

Aston Martin Residences Completes Construction At 300 Biscayne Boulevard Way In Downtown Miami

Construction is complete on Aston Martin Residences, a 66-story residential building at 300 Biscayne Boulevard Way in downtown Miami. Located at the mouth of the Miami River, this milestone was celebrated with a ribbon-cutting ceremony attended by the Coto family, Aston Martin executives, Buenos Aires-based architect Rodolfo Miani from Bodas Miani Anger…

New Detailed Renderings Unveiled for 116-Room Hotel Development at 160 NW 28th Street in Wynwood

Updated renderings have been revealed via a warrant and waiver application for a proposed 10-story hotel at 160 Northwest 28th Street in Wynwood, Miami. Designed by MKDA and developed by a joint venture between Robert Finvarb Companies and Hidrock Realty, the 121-foot-tall structure would yield a total floor area of 74,498 square feet. This includes 38,096 square feet…

Developer Seeks Design Review Approval For 4-Story Commercial Building At 1901 Alton Road In Miami Beach

Crescent Heights, under the 1901 Alton Property LLC, and Wells Fargo Bank, the property owner, have submitted an application for Design Review Approval for a new 4-story commercial building at 1901 Alton Road in the Bayshore neighborhood of Miami Beach. The proposed 54-foot-tall structure, designed by Studio MC+G Architecture with facade architecture…

Pérez family’s Related, partners score $141.5M financing for NoMad Wynwood condos

A partnership led by the Pérez family’s Related Group and David Edelstein’s Tricap scored $141.5 million in financing for their planned NoMad Residences Wynwood. Related Fund Management, the investment management arm of New York-based Related Companies, provided the developers with a $51.5 million mezzanine loan, according to a press release. Beverly Hills…

Application Seeking Design Review Approval Filed For Planned Office Building At 1100 5th Street In Miami Beach

An application has been filed seeking design review approval for a new 5-story commercial office building at 1100 5th Street in the South of Fifth neighborhood of Miami Beach. Designed by Eduardo Souta de Moura with Zyscovich Architects serving as the executive architect, and developed by Sumaida + Khurana in partnership with property owners Roslyn and Norton Nesis…

Lease roundup: Assurant moving to Waterford, Buccan restaurant opening in Coral Gables

Global insurance company Assurant will move its Miami-Dade County office to the Waterford Business District. Atlanta-based Assurant took 78,000 square feet at 701 Waterford Way, where it will open in June, according to a spokesperson for the landlords and their broker. The 250-acre Waterford Business District, with 1.7 million square feet of office space, is in an unincorporated…

GL Homes loses suit over contentious 550-home project on Calusa golf course

GL Homes lost a lawsuit over its controversial plan to develop a 550-home complex on the Calusa golf course near Kendall. The Florida Supreme Court on Wednesday denied GL Homes’ request for review of a lower court’s decision that had effectively nixed the project. The decision marks the latest in the nearly three-year saga over the redevelopment of the 159-acre Calusa golf…

Miami Mayor Francis Suarez testifies in SEC case against Rishi Kapoor

Miami Mayor Francis Suarez detailed his role as a private consultant for Rishi Kapoor’s real estate companies in a sworn statement to the U.S. Securities and Exchange Commission. Last month, Suarez provided his testimony under subpoena about the business arrangement with Urbin, a subsidiary of Location Ventures, Miami Herald reported. Kapoor founded both firms…

Plans Filed For 200-Unit Multifamily Development At 1830-1844 Jackson Street In Hollywood

Plans have been filed for Jackson Street Apartments, a 13-story apartment building proposed for 1830 – 1844 Jackson Street in Hollywood. Designed by Joseph B. Kaller of Kaller Architecture with Gabriela Fojt of The Mirror of Paradise as the landscape architect and developed by Menachem Trietel of Brooklyn-based Capitall Group in partnership with Isaac Khabie…

Blackstone subsidiary expands industrial portfolio in Pompano Beach with $21M purchase

Blackstone’s Link Logistics expanded its Pompano Beach industrial portfolio with its recent $20.7 million purchase of a manufacturing and distribution facility. An affiliate of Link, a New York-based industrial real estate firm led by CEO Luke Petherbridge, acquired a 93,873-square-foot warehouse at 3141 Southwest 10th Street, records show. The deal breaks down…

Pompano Beach industrial market heats up with Invesco acquisition

Pompano Beach’s industrial submarket is garnering attention from institutional investors. Invesco Real Estate picked up two warehouses on the heels of Blackstone subsidiary Link Logistics buying an industrial facility in the same city. An affiliate of Dallas-based Invesco, led by CEO Scott Dennis, paid $23.8 million for two facilities spanning nearly 105,000 square feet at 1280-1300…

‘Ocean One’ to Offer 371 Homes in 8 Stories at 114-222 N. Federal Highway in Boynton Beach

Hyperion Development Group is one step closer to realizing Ocean One, an eight-story residential development in Boynton Beach. The Miami-based firm purchased the 3.71-acre parcel for $12 million in 2022, and now, it’s hoping to get up to $9.9 million in tax rebates to make the venture possible. The Boynton Beach Community Redevelopment Agency (CRA) will discuss the…

Foundation Work Progresses On Alba Palm Beach At 4714 N Flagler Drive In West Palm Beach

Foundation work progresses on Alba Palm Beach, a 22-story waterfront residential condominium development located at 4714 North Flagler Drive in West Palm Beach. Designed by locally-based Spina O’Rourke + Partners with Schmidt Nichols as the landscape architect and developed by BGI Companies and Blue Road Group, the 262-foot-tall structure will deliver a collection…

‘Elan Palm Reserve’ Ends Construction at 4350 Peregrine Way in Lake Worth

Elan Palm Reserve is set to welcome its first residents the third week of May. The $90 million project, developed by Greystar, started construction in October 2022. The first phase will offer more than 300 apartments that, according to sources, feature “resort style living.” The venture’s website reports that homes span from one-bedroom to three-bedroom layouts, measuring 749 sf…

Coal Capital’s Lake Worth Beach rehab complex faces foreclosure

Coal Capital Group could lose a medical rehab facility in Lake Worth Beach to foreclosure. Denver-based Lapis Advisers, as agent for a fund that acquired a mortgage from Santander Bank in 2020, filed a foreclosure complaint against Brooklyn-based Coal Capital and two affiliates, court records and real estate database Vizzda show. The lawsuit, filed in Palm Beach Circuit Court…

Tzadik co-founder sues CEO Adam Hendry for $8M tied to multifamily deals

A Tzadik Management co-founder is suing the company and CEO Adam Hendry for $8 million tied to sales of a massive multifamily portfolio. Alex Arguelles alleges that Hendry and Tzadik affiliates failed to pay him “a single dime from the sale” of the properties, in violation of a settlement agreement, according to Arguelles’ lawsuit filed in March. The portfolio spans nearly…

“I take every opportunity to gloat”: Francis Suarez talks Miami’s growth, challenges at The Real Deal’s New York Forum

Miami Mayor Francis Suarez challenged New York City Mayor Eric Adams to a showdown at The Real Deal’s New York Real Estate Forum. Adams didn’t appear, but Suarez took the stage to promote Miami’s growth, publicly proclaim its support of Israel, and offer potential solutions to traffic and infrastructure concerns. Suarez spoke with TRD Founder and Publisher Amir…

Brightline Increases Prices Over Seat Shortage, Some Customers ‘Outraged’

Some longtime Brightline customers are “outraged” over a recently announced price increase, according to NBC6. The company is raising prices on packages that it sells to commuters. One person said they had purchased a home near a Brightline station to be able to use the train service. Brightline recently told investors that it is dealing with a shortage of capacity on some of its…

Video: RealPage Director of Research & Analysis, Market Analytics Carl Whitaker Provide Student Housing Updates & Strategies

The Discussion: Unveiling the Trends and Insights of Student Housing In the realm of real estate, few sectors offer as intriguing a landscape as student housing. On a recent episode of “America’s Commercial Real Estate Show,” the show’s host sat down with Carl Whitaker, Director of Research and Analysis at RealPage, to delve into the nuances of this dynamic market.

Video: Lisa McCracken, Head of Research & Analytics at the National Investment Center for Seniors Housing & Care (NIC) Discusses Senior Housing 2024

A Discussion About Navigating the Landscape of Senior Housing In the realm of real estate, certain sectors hold unique significance, not just in terms of investment potential, but also as indicators of societal shifts and demographic trends. One such sector is senior housing, which has been subject to intense scrutiny and adaptation, especially in recent years. A conversation between…

Video: Trepp Chief Product Officer Lonnie Hendry Provided Update on Real Estate Financing And Distressed Loans

Navigating the Currents of Commercial Real Estate: Insights from a Conversation In the dynamic world of commercial real estate, staying ahead requires not only understanding the current market trends but also engaging in insightful conversations with industry experts. Recently, a conversation on America’s Commercial Real Estate Show with Lonnie Hendry, Chief Product…

45,000 Retail Stores Could Shutter In The Next 5 Years: UBS

Roughly 45,000 retail stores could close their doors in the next few years, a new retail report by UBS estimates. UBS modeled out the share of e-commerce shoppers in the U.S. growing from 21% to 26% and retail growing overall by 4% and said that would lead to mass closures by 2028, Retail Dive reports. The growth of online shopping, capital constraints, cost of store operations…

Cannabis Reclassification Would Likely Boost Cash Flow, Opening Doors For CRE Moves

This week’s announcement that the Department of Justice recommended cannabis be reclassified as a lower-risk substance is a long-awaited move toward legitimacy coveted by thousands of marijuana businesses in states where recreational use is legal. The decision could bring big changes for cannabis-related real estate as a result of loosened lending restrictions…

Who Is Yardi — And What Does It Want With WeWork?

Yardi Systems spent the past 40 years quietly growing into a giant in the real estate software industry, but it’s far from a household name. It’s about to own one. When WeWork’s attorneys revealed in court on Monday that Yardi would become the majority owner of the beleaguered coworking company after providing it most of the money it needs to exit bankruptcy, the arrangement…

AI Has Quietly Become Part Of Industrial Real Estate Development

Artificial intelligence has become a subtle but increasingly important partner for the industrial development sector in the Northeast, local leaders say. AI has reached a fever pitch across real estate, fueling data center demand and pushing the government to issue guidance this week related to its use for fair housing. In industrial real estate, AI tools are integrating into the site selection…

J.P. Morgan 2024 commercial real estate midyear outlook

The commercial real estate outlook for the second half of 2024 is largely positive—multifamily continues to perform, as do industrial and retail. But challenges could lie ahead. The higher interest rate environment appears to be here to stay, and office vacancies continue to climb. “On the income side, drivers like rents and vacancies will likely be flat to stable for most property types…

Pairing bank capital with agency execution for multifamily properties

Bank and agency loans are important sources of financing for multifamily properties and can be good solutions depending on the property and the owner’s goals. Finding the right financing solutions requires a team that understands conventional bank loans and agency loans and can help determine which option—or combination of options—is the right fit. “Both agency and bank…”

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May 8, 2024

Video: RealPage Director of Research & Analysis, Market Analytics Carl Whitaker Provides Student Housing Updates & Strategies

The Discussion: Unveiling the Trends and Insights of Student Housing

In the realm of real estate, few sectors offer as intriguing a landscape as student housing. On a recent episode of “America’s Commercial Real Estate Show,” the show’s host sat down with Carl Whitaker, Director of Research and Analysis at RealPage, to delve into the nuances of this dynamic market. From occupancy rates to rent growth, from new supply to investment strategies, their conversation provided a comprehensive overview of the state of student housing. The primary focus of this conversation discussed student housing property investment throughout the United States. Thus, a caveat for this discussion is that its observations may have varying degrees of applicability, perhaps even no applicability, to such investment in Miami.

The Resilience of Student Housing

The dialogue kicked off by addressing the prevailing trends in the student housing sector. Whitaker noted that while the sector had seen record-breaking rent growth in recent years, it was still performing remarkably well by historical standards. Despite a slight dip from the peak, student housing rent growth was holding steady at around 6%, outpacing the averages of the previous decade.

Supply and Demand Dynamics

A key factor contributing to this robust performance was the equilibrium between supply and demand. Whitaker highlighted that while demand had stabilized post-pandemic, the supply side had witnessed a notable decrease. This reduction in supply pressure, coupled with a modest increase in demand, had created a conducive environment for strong rent growth.

Occupancy Rates and Future Projections

Occupancy rates, another vital metric in the student housing landscape, were discussed next. Whitaker pointed out that while occupancy rates had dipped slightly, they remained robust, hovering around 93.5% to 94%. Looking ahead, he forecasted a gradual normalization in rent growth and occupancy rates, with figures expected to stabilize at around 2% to 3%.

Market Insights and Investment Strategies

The conversation then turned towards market insights and investment strategies. Whitaker emphasized the importance of institutional quality and brand recognition in determining the strength of a market. While population growth was a significant predictor of demand, he cautioned against oversimplifying the correlation, citing examples of non-growth states with thriving student housing markets.

Cap Rates and Sector Resilience

Addressing cap rates, Whitaker noted that while they remained slightly higher in the student housing sector compared to conventional multifamily, they had compressed over the past few years. He attributed this trend to increased institutional investor interest in the sector, predicting a potential narrowing of the gap between student and conventional cap rates in the future.

Evolution of Amenities and Resident Preferences

The discussion concluded with an exploration of amenities and resident preferences in student housing. Whitaker highlighted the sector’s role as a testing ground for property technology trends, noting that today’s student renters often foreshadowed the preferences of tomorrow’s conventional renters. From Lazy River floating pools to high-tech amenities, the evolution of student housing reflected changing consumer demands and market dynamics.

Conclusion: A Sector of Resilience and Opportunity

As the conversation drew to a close, it became evident that student housing was not just a niche market but a sector ripe with resilience and opportunity. Despite challenges and uncertainties, its ability to weather economic storms and adapt to evolving trends made it an attractive investment option for those seeking portfolio diversification.

In summary, the dialogue between the host and Carl Whitaker provided invaluable insights into the multifaceted world of student housing. From market fundamentals to investment strategies, their exchange illuminated the dynamics shaping this dynamic sector and underscored its significance within the broader real estate landscape. As the market continues to evolve, one thing remains clear: student housing stands as a testament to resilience, innovation, and opportunity in the realm of commercial real estate.

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May 7, 2024

Video: Lisa McCracken, Head of Research & Analytics at the National Investment Center for Seniors Housing & Care (NIC) Discusses Senior Housing 2024

A Discussion About Navigating the Landscape of Senior Housing

In the realm of real estate, certain sectors hold unique significance, not just in terms of investment potential, but also as indicators of societal shifts and demographic trends. One such sector is senior housing, which has been subject to intense scrutiny and adaptation, especially in recent years. A conversation between the host of America’s Commercial Real Estate Show, and Lisa McCracken, Head of Research and Analytics at the National Investment Center for Seniors Housing and Care (NIC), sheds light on the current state and future prospects of senior housing in the United States. Note that this discussion is national and scope, thus observations may apply less to South Florida.

The State of Operations

At the outset, McCracken provides a comprehensive overview of the industry’s operational performance. Despite challenges posed by the COVID-19 pandemic and fluctuations in market conditions, senior housing properties have shown resilience. McCracken highlights key performance indicators such as occupancy rates and absorption levels, indicating a gradual recovery trajectory. Notably, she mentions a resurgence in demand, propelled by demographic shifts as the Baby Boomer generation ages.

Market Dynamics and Trends

The conversation delves into the intricacies of market dynamics and trends shaping the senior housing landscape. McCracken discusses the interplay between supply and demand, noting a decline in new construction starts and a lengthening of the construction cycle. This trend, coupled with the imminent surge in demand, underscores the potential for a significant supply-demand gap in the coming years.

Challenges and Opportunities

Addressing challenges facing the industry, McCracken emphasizes the critical role of labor and wages. The discussion underscores the importance of workforce recruitment and retention strategies amidst labor shortages and wage pressures. Furthermore, McCracken highlights the nuanced nature of distress situations in senior housing, categorizing them into financial distress, operational distress, and property-level stress.

Strategies for Success

McCracken offers insights into strategies for operators to navigate the evolving landscape successfully. She advocates for collaborative owner-operator relationships, emphasizing shared goals and outcomes. Additionally, she underscores the importance of proactive marketing and technological innovation in reaching and engaging potential residents and their families.

Looking Ahead

The conversation concludes with a glimpse into the future of senior housing and the role of industry events such as NIC’s annual fall conference in driving innovation and collaboration. McCracken reiterates the sector’s resilience and potential for growth, tempered by the need for proactive adaptation to changing market dynamics.

Final Thoughts

The dialogue between the host and Lisa McCracken provides a comprehensive understanding of the senior housing sector’s current challenges and future prospects. Amidst demographic shifts, labor shortages, and evolving consumer preferences, senior housing operators and investors must remain agile and innovative to capitalize on emerging opportunities and navigate potential obstacles effectively. As the industry continues to evolve, collaboration, data-driven decision-making, and a focus on resident-centric care will be instrumental in shaping its trajectory.

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May 7, 2024

Video: Professor of Real Estate at the University of Florida David Ling Discusses (UF’s) Real Estate Degree Programs

The Conversation: Exploring the Foundation of Real Estate Education

In the vast landscape of commercial real estate, education stands as a cornerstone for success. The conversation between the host of America’s Commercial Real Estate Show and David Ling, Professor of Real Estate at the University of Florida, delves deep into the significance of education and training in the realm of commercial real estate.

The University of Florida boasts a rich history in real estate education, dating back to 1945. Their flagship program, the Nathan S. Collier Master of Science in Real Estate, was established in 1980 to address the growing need for specialized training in the field. David Ling, in his discussion with Michael, sheds light on the structure and offerings of their real estate programs.

At the University of Florida, students have access to both undergraduate and graduate programs. The undergraduate real estate minor caters to around 150 students annually, while the master’s program offers two tiers: the traditional program and the combined program. The combined program, a unique offering, allows undergraduates to seamlessly transition into the master’s program, providing a head start in their real estate education.

A key aspect of the University of Florida’s real estate education is its immersive, full-time in-residence program. Students devote themselves entirely to the program for ten months, gaining comprehensive knowledge and practical skills under the guidance of experienced faculty.

When it comes to career paths, the real estate industry offers a diverse range of opportunities, from development and brokerage to mortgage lending and private equity. While development often garners initial interest due to its visibility, students frequently explore various avenues within the field, guided by their experiences and exposure during the program.

David emphasizes the importance of adaptability and openness to different career paths, especially in today’s dynamic job market. While traditionally high-demand roles may face uncertainty, exploring alternative options can lead to rewarding opportunities.

In terms of job placement, the University of Florida has maintained a stellar record, typically securing positions for all students upon graduation. However, David acknowledges the challenges posed by the current market conditions, with some students experiencing delays in securing employment. Despite this, the university’s strong industry connections and dedicated support services ensure that students are well-equipped to navigate the job market.

The conversation also touches upon the recognition and accolades received by the University of Florida’s real estate program. From high rankings in specialized master’s programs to widespread acclaim for textbooks authored by faculty members, the program continues to uphold its reputation for excellence.

As the discussion draws to a close, David highlights the program’s value proposition, emphasizing the opportunities for networking, mentorship, and lifelong learning that extend far beyond graduation. The University of Florida’s real estate education not only equips students with essential knowledge and skills but also fosters a supportive community that nurtures their professional growth.

In conclusion, the conversation between Michael and David Ling underscores the pivotal role of education in shaping successful careers in commercial real estate. With a steadfast commitment to excellence and innovation, the University of Florida’s real estate program continues to empower students to thrive in a dynamic and competitive industry.

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May 5, 2024

Miami Commercial Real Estate News May 1, 2024: Brickell Office Tower Hits Market at $500M; Hialeah MXU Project Approved; $1B Aston Martin Tower Completed; More…

Nuveen’s 701 Brickell office tower hits the market for over $500M

Nuveen Real Estate listed its 701 Brickell office tower in Miami for more than $500 million, marking at least the fourth property in the financial district to hit the market since the fall. New York-based Nuveen’s 33-story bayfront tower, named for its address at 701 Brickell Avenue, is more than 90 percent leased, according to a source. Tenants include law firm Holland & Knight…

Nuveen Seeking More Than $500M For Brickell Office Tower

Nuveen Real Estate is looking to sell 701 Brickell Ave. less than a year after it offloaded another nearby office building in Miami’s financial district. Nuveen, the real estate investment arm of the Teachers Insurance and Annuity Association of America, is looking for more than $500M for the 685K SF office tower in the heart of Brickell. The property is around 92% occupied by high…

Foundation Work Progresses On The Site Of Miami’s First Supertall Skyscraper

Foundation work at 300 Biscayne Boulevard, the site of the forthcoming Waldorf Astoria Hotel & Residences, has reached a significant milestone. This 100-story supertall tower, designed by Sieger Suarez Architects in collaboration with Carlos Ott, is poised to transform the downtown Miami skyline. Developed by Property Markets Group in partnership with Greybrook Realty Partners…

Codina-led JV scores approval for Hialeah mixed-use project

A Codina Partners-led joint venture nabbed the initial green light for a planned transformation of a former Sears store, an outparcel and a parking lot in Hialeah into a mixed-use project. The Hialeah City Council voted unanimously on first reading last week to approve Westland Plaza, a planned complex of 815 apartments, 15 townhomes, roughly 32,624 square feet of commercial…

Major developers are converting South Florida malls into mixed-use projects

Electra America and BH Group plan to tear down a big box store on an outparcel of Cutler Bay’s Southland Mall later this year, after the current tenant, Ross Dress For Less, moves into a space in the indoor shopping center. The move will jumpstart the first phase of the joint venture’s $1 billion makeover of Southland Mall into Southplace City Center, a mixed-use project that will…

The Weekly Dirt: South Florida developers go shopping at the mall

At least seven redevelopments of indoor malls are in the works, fueled by the demand for housing. Electra America, BH Group, Aimco, Codina Partners, Midtown Equities, Jericho and Kimco Realty are all playing in the space, Francisco Alvarado reports. It’s a win-win for struggling malls and developers looking to cash in on opportunities to fill the need for housing — a need that was…

Miami Worldcenter to get 53-story condos-and-hotel tower

A developer is bringing a new mixed-use residential tower that will include a hotel and outdoor dining to Miami Worldcenter. Miami A/I Parcel 3 Subsidiary LLC has presented a plan for Miami Worldcenter Block C East at 155 NE 10th St., in the northern edge of the booming Miami Worldcenter District. This latest project will be a 53-story mixed-use tower with a 280-key hotel…

Henry Pino’s Alta lands $68M construction loan for short-term rental condo near Miami River

Alta Development scored a $68 million construction loan for a 283-unit short-term rental-friendly condo near the Miami River. The Kendall-based firm plans the 16-story River District 14 on the 1.3-acre site at 1451 Northwest 14th Street in Miami, according to Alta principal Henry Pino. Boynton Beach-based Forman Capital is the lender. River District 14 is more than 70…

Allen Morris scores approval for once-controversial Ponce Park Residences

After a number of rejections and opposition from neighbors, the Allen Morris Company secured approval for a downsized version of its plans for Ponce Park Residences in Coral Gables that’s been years in the making. The latest version of its plans call for a nine-story building with 57 luxury condos at 3000 Ponce de Leon Boulevard, across from the major mixed-use Plaza Coral…

Fuse sells pair of unfinished Coconut Grove buildings seized from developers

Lender Fuse Group sold a pair of unfinished Coconut Grove buildings tied to defaulted loans from two developers. Fort Lauderdale-based Fuse sold the building shells at 2961 and 2967 Bird Avenue in Miami to an entity led by Patrizio De Brasi for $8.1 million, according to records. De Brasi took out an $8.2 million loan from Fuse. The deal comes after the properties were tied…

Homestead Will See Construction of 1,100 Unit Mixed-Use Development

The Homestead Commission is discussing a large development which will be known as Sandero Landing. This is set to have 1,100 units, along with restaurants and stores. The development will be located on 90 acres of land. The project in question will be built on 90 acres on South 328th Street. The goal is to create a place where many people can live, work and play. There will be office…

Wynwood Arcade being redesigned as Wynwood Jungle

An old established building in the booming Wynwood Arts District is being reborn – again. The City of Miami’s Wynwood neighborhood continues its evolution from industrial warehouse district to a new and vibrant mixed-use neighborhood peppered with street art. The former warehouse at 50 NW 24th St., first reborn as the Wynwood Arcade, is being repurposed once more…

Coto family, Aston Martin complete $1B branded condo tower in downtown Miami

A marching band began playing “Celebration” by Kool & the Gang at the ribbon-cutting ceremony marking the opening of Aston Martin Residences, a waterfront luxury condo tower just completed in downtown Miami. The Coto family, executives from Aston Martin, architect Rodolfo Miani of Buenos Aires-based Bodas Miani Anger, Cervera Real Estate leaders and Miami Mayor…

‘It was heaven. It’s gone.’ Grove Isle residents say Miami broke laws to let tower rise

One of the serene pleasures of Wendy Gordon’s daily routine was sitting on her Grove Isle balcony and watching the sun rise over Biscayne Bay, framed by Key Biscayne and the downtown skyline. No more. The sun is blotted out by a new 91-foot tall, stadium-like condominium that curves around the north end of the island and shrouds Gordon’s Building 3 in shadow…

174-Unit ‘Cassia’ Planned for 4011 Salzedo Street in Coral Gables

Cassia, a 12-story upscale housing complex, is slated for Coral Gables. Our sources indicate that the building will host 174 condos, with homes measuring 662 square feet to 1,439 square feet each. The furnished residences will span one-bedroom to three-bedroom floorplans, with the cost of ownership starting in the $700,000s. The most expensive units hover around $1.8M…

New Renderings Revealed For Okan Tower At 555 North Miami Avenue In Downtown Miami

New renderings have been revealed for Okan Tower, a 70-story mixed-use building under construction at 555 North Miami Avenue in Downtown Miami. Designed by Behar Font & Partners and developed by Okan Group, the 902-foot-tall, 914,124-square-foot structure will yield 399 residences, a 316-key hotel, along with 64,000 square feet of ‘Class A’ office space…

Miami Worldcenter Was Almost A ‘Dinosaur.’ Now It’s A $6B Juggernaut

The Miami Worldcenter team had just broken ground on its debut tower when its plans began to fall apart. Macy’s and Bloomingdale’s were set to anchor the first phase of the 27-acre, $6B development in the heart of Miami, but in mid-2015, the company’s stock was cratering as Americans shifted to shopping online. The 60-story Paramount Miami Worldcenter condo…

Crunch Fitness founderDoug Levine sells three Wynwood buildings for $24M

Crunch Fitness founder Doug Levine sold a trio of commercial buildings in Miami’s Wynwood for $23.5 million, roughly $6 million below his asking price, The Real Deal has learned. Wynwood 126 acquired the 0.7-acre portfolio that can be redeveloped into a mixed-use project with a hotel or multifamily component, according to Tony Arellano and Devlin Marinoff with Dwntwn…

Gucci opens at Dadeland Mall & Other South Florida Leasing News

Gucci opened a boutique in Dadeland Mall. The luxury fashion brand’s 6,000-square-foot store features handbags and accessories, including items from the Gucci Valigeria collection, according to the tenant’s news release. Simon Property Group owns Dadeland Mall at 7535 Southwest 88th Street in the Kendall neighborhood of unincorporated Miami-Dade County.

FAA Permits Issued For 33-Story Residential Tower At 2411 Laguna Circle In North Miami

The Federal Aviation Administration (FAA) has issued permits for One Park Tower by Turnberry, an imminent 33-story residential building located at 2411 Laguna Circle within the 184-acre master-planned community of SoLé Mia in North Miami. Conceived by Arquitectonica and developed by the Aventura-based Turnberry, the 370-foot-tall structure will sit south…

Developers propose 44-unit multifamily project in Goulds

A trio of developers want to build a 44-unit multifamily building with workforce apartments in Goulds, marking continued interest in south Miami-Dade County’s residential market.Javier Sanchez, Marianna Parra Villegas and Adriana Ortega, through an affiliate, propose the six-story Horseshoe Cay Apartments on a 0.3-acre site at 21839 Southwest 118th Court in an unincorporated…

44-Unit ‘The Horseshoe Cay Apartments’ Proposed for 21839 SW 118th Court in Miami

Horseshoe Cay LLC secured a .34-acre parcel for $1.5 million in 2023. Now, it has filed a pre-application with Miami city officials for a six-story apartment complex. The Horseshoe Cay Apartments would offer 44 apartments: 17 one-bedroom units and 27 two-bedroom units. Homes would measure about 545 square feet to 870 square feet each. The South Florida Business…

Developer proposes 23-story mixed-use tower with racket sports courts in Brickell

A developer wants to build a 23-story mixed-use tower with racket sports courts on the former Babylon Apartments site in Miami’s Brickell. The plan comes five years after a contentious proposal for a 24-story building on the property fizzled amid neighbors’ opposition. Yet, the zoning has changed since then. In February, Miami-Dade County included the development site…

First Standalone Four Seasons Condo Planned for 2699 S Bayshore Drive in Coconut Grove

Four Seasons Private Residences Coconut Grove is slated to be the luxury brand’s first standalone venture in the state, offering “legendary service and experiences outside of a hotel or resort.” The 20-story tower will offer 70 homes, four of which are penthouses. Our sources indicate that standard floorplans range from one-bedroom to two-bedroom models, measuring 2,000 to 3,980 sf…

Miami commissioners reduce fines for Château Group’s downtown Miami dev site

Château Group is getting an $800,000 reduction in fines accrued at a downtown Miami development site where a tenant operated an illegal parking lot. The Miami City Commission voted on Thursday to slash $1.1 million in daily accrued fines to $300,000 stemming from a former tenant at 666 Biscayne Boulevard operating a parking lot without a certificate of use from the city.

‘In a holding pattern’: South Florida apartment developers pause projects

Developer Dan Kodsi isn’t rushing to build multifamily projects in South Florida. Two years ago, he jumped into the market with proposals for an apartment tower in Aventura and another in Miami. Now, he’s reevaluating the developments and tweaking both. “It’s too expensive to build [high-rise] apartments today,” Kodsi said. “The margins are very razor tight…

Prologis Expects Lower Average Occupancy Nationally in The Year Ahead

Skittish customers determined to keep a tight rein on costs are holding back on leasing additional logistics space, executives of Prologis reported in their 1Q 2024 earnings conference call. “While operating conditions are healthy in the majority of our markets, customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing,” Prologis…

MisterO1 Extraordinary Pizza Signs 10-Year Retail Lease in Pinecrest

MMG Equity Partners’ retail shopping center in Pinecrest, Pinecrest Shoppes, will be the new home of MisterO1 Extraordinary Pizza. The 2,730-square-foot, newly renovated space (formerly occupied by Mayweather Fit) required a full build-out. Pinecrest Shoppes is located in Miami-Dade’s busiest retail corridor. Its affluent and densely populated trade area includes some…

Preserve or Tear Down: The dilemma of old vs. new plagues Belle Meade residents

Belle Meade is at a turning point in its long-winding history, but as is the case with most evolutions, it’s being preceded by a war. There are two camps developing in the Upper East Side neighborhood: those who want to preserve the eclectic character of the community, and those who want to preserve their rights as property owners to remodel and rebuild as they wish. Surely, there…

Pharmaceuticals take off as a top Miami export

As Miami International Airport continues to grow its cargo, pharmaceuticals fly high among its top commodities. “Over the last, I want to say three, four years, we’ve had… [about] four straight record-breaking years in just cargo overall,” said Ralph Cutié, director of the Miami-Dade Aviation Department. “Back during the pandemic we had, I think it was a little bit over 2.3 million…

Assurant To Relocate In One Of Miami’s Largest Leases Of 2024 So Far

Assurant is moving its Miami offices from the sprawling 79-acre campus it owns to a 78K SF lease that marks the second-largest office deal in the city so far this year. The insurance giant is slated to move into three floors at 701 Waterford Way in the Waterford Business District in June 2025 after listing its campus west of Cutler Bay for sale nearly a year ago. The Waterford…

Tri-Rail chugging toward tri-county express trips

Tri-Rail is closing in on an express service with limited stops between downtown Miami and West Palm Beach, the first Tri-Rail into downtown where passengers won’t have to change trains. The request for a single express train morning and night was on track for South Florida Regional Transportation Authority board action, executive director David Dech told the Citizens…

Miami Beach’s oldest structure, Collins Canal, may get historic label

Miami Beach’s oldest manmade structure, the Collins Canal, is flowing slowly toward historic designation. The flow of state grants could follow. The Miami Beach City Commission referred historic branding to a May 1 meeting of the Land Use and Sustainability Committee. The Historic Preservation Board initiated the designation talks, said Deborah Tacket…

City of Miami Sides with Arts Groups in Billboards Vote

City of Miami commissioners voted 3-2 April 25 to ban future construction of oversized, digital billboards in the municipality. But to be clear, residents will still stumble upon these very structures during their downtown walks or drives. The vote puts the city one step closer to rescinding an ordinance passed in 2023 that allows 100-foot LED billboards spanning 1,800 square feet…

46-Story Tower Designed By FSMY Architects + Planners Proposed For 100 NW 7th Avenue In Fort Lauderdale

On April 23, the Development Review Committee in Fort Lauderdale began reviewing plans for a new 46-story multi-family development at 100 Northwest 7th Avenue, situated just a few blocks east of Brightline’s Fort Lauderdale Station. The project, designed by Josh Bailey of the local architecture firm FSMY Architects & Planners and developed by Miller Property Invest…

Steve Ross’ Related sells W Fort Lauderdale to Blackstone for $98M

After holding onto the W Fort Lauderdale for more than a decade, Steve Ross’ Related Companies sold the 346-key oceanfront hotel for $97.7 million. An affiliate of New York-based Blackstone, led by CEO Stephen Schwarzman, acquired the hotel portion of the 3.8-acre property at 401 North Fort Lauderdale Beach Boulevard, records show. The investment giant paid $282,225…

Proposal Unveiled for Redevelopment of West Palm Beach Family Church Site Featuring Two Condo Towers and New Church Facilities

Related Companies, headed by Stephen M. Ross, and Frisbie Group have partnered with the Family Church to envision a transformative redevelopment project in downtown West Palm Beach. Designed by New York’s Kohn Pedersen Fox Associates, the project calls for two condominium towers of 28 and 32 stories on the church’s expansive 9.6-acre site at 1101 South Flagler Drive…

Steve Ross’ Related, Frisbie propose 190-unit condo project on West Palm church site

Steve Ross’ Related Companies and a partner propose a pair of condo towers with a total of 190 units on a church site near downtown West Palm Beach. New York-based Related and Palm Beach-based Frisbie Group want to build a 28-story building and a 32-story tower on the Family Church property at 1101 South Flagler Drive, while preserving the main worship hall and…

Forté on Flagler Tops Off At 1309 South Flagler Drive in West Palm Beach

Construction has topped off on Forté on Flagler, a 25-story residential building at 1309 South Flagler Drive in West Palm Beach. Designed by Bernardo Fort-Brescia of Arquitectonica with interiors by Jean-Louis Deniot and developed by a joint venture between Two Roads Development and Alpha Blue Ventures, the approximately 300-foot-tall structure will yield 41 residences…

South Florida’s branded condo boom arrives in West Palm Beach

Behind the hedges in Palm Beach hide meticulously maintained architectural samples of old-world opulence. Regency, Mediterranean and Georgian-style estates, many of them built for the heirs to America’s early industrial fortunes, blend into palm trees and lush tropical landscaping. They’re understated, but commanding. The condominiums that sprang from the sand in the…

Burger King to Invest $300M to Remodel 1,100 US Restaurants by 2028

Burger King plans to invest $300 million to modernize 1,100 U.S. restaurants by 2028, according to parent company Restaurant Brands International Inc. (NYSE: QSR). Each restaurant will be renovated in a new layout, called Sizzle, that emphasizes flexibility as well as the digital, pick-up and drive-thru experiences. In addition to the planned renovations, the investment will also…

How Dollar Strength Can Affect Industrial Commercial Real Estate

Reshoring manufacturing has become a trend since the pandemic, as reported by outlets like CNBC, and it all comes down to supply chains. But those in industrial CRE who could benefit from it are learning that keeping up with foreign exchange issues and the current strength of the dollar can be as important as monitoring interest rates. During the pandemic, supply chains broke.

Video: Hessam Nadji discusses bright spots and challenges in commercial real estate

The Discussion: Navigating Storm Clouds and Bright Spots: Insights on Commercial Real Estate As the economic landscape continually shifts, discussions surrounding the commercial real estate market are more pertinent than ever. Recently, on a segment dedicated to real estate, Hessam Nadji, CEO of a large brokerage, provided invaluable insights into the sector’s current state…

Report: Red Lobster Wants To Reel In A Buyer Amid Debt Restructuring And Potential Bankruptcy

Red Lobster has reportedly been fishing for a potential buyer as it considers debt restructuring options that include possible Chapter 11 bankruptcy. The struggling seafood chain sought a buyer in recent months, people familiar with the matter told CNBC. A potential buyer was lined up but the deal fell through, the outlet reported. Red Lobster has been trying to break some contracts…

Amazon Logistics Manager Says EVs Are ‘Past The Tipping Point’ And Industrial CRE Needs To Take Notice

Amazon has been building out infrastructure for electric vehicle fleets over the last two years, and it has reached a turning point that industrial real estate developers and owners should take note of, one of the firm’s senior managers said Tuesday. “The [electric] vans are coming … I believe we’re past the tipping point,” Mark Purcell, a senior construction manager with Amazon…

Self-Storage Slide Continues With Declining Rents, Projects Abandoned

Self-storage, an early pandemic wunderkind in commercial real estate, continued its steady decline in March, with rents dropping 4.5% annually, according to Yardi Matrix. Rents hit $16.25 per SF, showing declines for both climate-controlled and non-climate-controlled properties, the company found. REITs dropped their rates to attract new customers and smaller operators…

CRE Industry Nationally Less Optimistic About Cap Rates, Interest Rate Cuts

Optimism levels about the impact of mortgage and cap rates on commercial real estate are mixed, according to a new survey from CRE Finance Council, with 31% expecting a positive impact and 37% foreseeing a negative one. This marks a shift from the previous quarter’s more optimistic 48% reading, according to the 1Q 2024 Board of Governors Sentiment Index survey.

Republic First Bank Seized With $1.7B Of CRE Loans On Its Books

Republic First Bank, which had $1.7B in commercial real estate and construction loans on its books, was taken over by regulators and sold this weekend. The Philadelphia-based bank was shut down by the Pennsylvania Department of Banking and Securities on Friday, the first regional bank failure this year. It had $6B in total assets. Fulton Financial bought its deposits and assets…

Yardi To Become WeWork’s Majority Owner In $450M Bankruptcy Exit Plan

Attorneys for WeWork revealed in a Monday morning bankruptcy hearing that under its plan to exit bankruptcy, property management software provider Yardi Systems would become the majority owner of the coworking titan. Under the terms of WeWork’s proposed financing deal to exit bankruptcy, the company’s senior lenders agreed to inject WeWork with $50M to keep…

Video: Trepp Chief Product Officer Lonnie Hendry Provided Update on Real Estate Financing And Distressed Loans

In the dynamic world of commercial real estate, staying ahead requires not only understanding the current market trends but also engaging in insightful conversations with industry experts. Recently, a conversation on America’s Commercial Real Estate Show with Lonnie Hendry, Chief Product Officer at Trepp, provided a deep dive into the current state of commercial…

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May 1, 2024

Video: Developer Bruce Ratner says the real problem with commercial real estate nationally is people not coming to work

The Conversation: Navigating Real Estate and Cancer Detection: A Conversation with an Expert

In a recent interview on CNBC’s Squawk Box, the conversation veered from the challenges facing commercial real estate nationally, and perhaps particularly in New York, to the critical importance of early cancer detection. The dialogue between the host and Bruce Ratner, a New York City real estate developer and former minority owner of the Brooklyn Nets that is deeply involved in cancer advocacy, shed light on two vastly different but equally significant realms.

The discussion kicked off with an assessment of the commercial real estate landscape, where the guest wasted no time in painting a grim picture. He highlighted staggering vacancy rates, signaling a fundamental shift in the nature of work, with remote and hybrid models becoming the norm rather than the exception. Despite optimistic murmurs from some quarters, he firmly asserted that the sector was far from recovery.

As the conversation flowed, the focus shifted to potential investment strategies in the face of this downturn. The guest’s insights into the slow adjustment of interest rates and the gradual decline of commercial real estate values offered a sobering perspective for investors considering their next move.

Transitioning from the world of brick and mortar to matters of health, the dialogue took an unexpected turn toward cancer detection. The guest’s personal connection to the cause, fueled by the loss of his brother to cancer, gave depth to his advocacy for early detection initiatives and led to him co-authoring the book, Early Detection: Catching Cancer When It’s Curable. Drawing from his experiences and expertise, he emphasized the stark contrast in survival rates between early and advanced stages of cancer.

The conversation delved into the various methods of cancer screening, from colonoscopies to low-dose CT scans, highlighting the critical importance of early intervention. The guest’s mention of a revolutionary blood test capable of detecting multiple cancers at early stages hinted at a promising future in cancer diagnostics.

In weaving together discussions on real estate and healthcare, the interview provided a nuanced exploration of two spheres deeply intertwined with human lives and livelihoods. It underscored the necessity of adaptability and foresight in navigating both the ever-evolving real estate market and the relentless battle against cancer. As the conversation concluded, it left viewers with a renewed sense of urgency to address these pressing issues and explore avenues for positive change.

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April 30, 2024

Video: Trepp Chief Product Officer Lonnie Hendry Provided Update on Real Estate Financing And Distressed Loans

Navigating the Currents of Commercial Real Estate: Insights from a Conversation

In the dynamic world of commercial real estate, staying ahead requires not only understanding the current market trends but also engaging in insightful conversations with industry experts. Recently, a conversation on America’s Commercial Real Estate Show with Lonnie Hendry, Chief Product Officer at Trepp, provided a deep dive into the current state of commercial real estate financing and distress market movements, covering such topics as delinquencies, new loan issuance, transaction volume, interest rates, and strategies working for commercial real estate lenders and borrowers. Note that this discussion is national in scope, thus some observations may apple little or not at all to Miami area commercial real estate. Let’s unpack some key takeaways from the discussion.

1. Shifting Trends in Distress Market:
Lonnie Hendry noted a notable inflection point in the distress narrative within the commercial real estate market. While distress had been a prevailing theme in recent times, there’s now a pushback against this narrative. Transaction velocity is picking up, and new origination loan issues are on the rise. Despite challenges in sectors like office and some multifamily properties, there’s a sense that certain markets have bottomed out, signaling a readiness for recovery.

2. Delinquency Rates and Market Activity:
Surprisingly, March saw a slight decrease in CMBS delinquency rates, reversing the trend of increasing delinquencies. This decline, albeit modest, hints at a potential shift in market dynamics. While distressed assets still exist, there’s optimism that the worst may be over. The market is showing resilience, with lenders becoming more proactive in addressing their exposure to distressed assets.

3. Lender Strategies and Relationship Building:
Amid market uncertainties, lenders are adopting strategies focused on proactive risk management. They’re evaluating distressed loans and working with borrowers to find viable solutions, including workouts, note sales, or short sales. Building strong relationships with borrowers during challenging times can be crucial for lenders. Engaging in transparent communication and understanding the unique needs of each party can lead to mutually beneficial outcomes.

4. Interest Rate Environment:
There’s a cautious outlook regarding interest rates. While some anticipate potential rate reductions, others believe that rates may remain relatively stable. Regardless of interest rate movements, it’s essential for investors to focus on the broader market fundamentals and not solely base investment decisions on rate projections. Real estate investments are long-term endeavors, and factors beyond interest rates should be considered.

5. Resilience of Commercial Real Estate:
The conversation highlighted the resilience of the commercial real estate market. Despite challenges, opportunities abound for savvy investors and lenders. Understanding local market dynamics, fostering relationships, and adapting to changing conditions are key strategies for navigating through uncertain times.

In essence, the conversation underscored the importance of staying informed, adaptable, and proactive in the ever-evolving landscape of commercial real estate. By leveraging insights from industry experts and maintaining a forward-thinking approach, stakeholders can position themselves for success amidst market fluctuations.

Regarding Trepp

Trepp asserts its position as the industry’s largest commercially available database of securitized mortgages, representing just one facet of their value proposition to clients today. They maintain that only Trepp provides the timeliness, accuracy, and breadth of specialized information necessary for clients to make informed decisions across diverse business lines. Trepp claims that their institutional-grade analytics platform offers a complete picture, featuring multiple reference points for debt, equity, operating, and market performance analysis.

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April 29, 2024

Video: Hessam Nadji discusses bright spots and challenges in commercial real estate

The Discussion: Navigating Storm Clouds and Bright Spots: Insights on Commercial Real Estate

As the economic landscape continually shifts, discussions surrounding the commercial real estate market are more pertinent than ever. Recently, on a segment dedicated to real estate, Hessam Nadji, CEO of a large brokerage, provided invaluable insights into the sector’s current state, highlighting both challenges and areas of resilience. The discussion is about commercial real estate in the United States at large, thus observations can apply less or even not at all to South Florida commercial property.

The conversation began with a broad question about the sector’s overall health and resilience. Naji emphasized the importance of separating property fundamentals from capital market dynamics. Despite concerns about tightening spreads and debt worries, Naji underscored that property fundamentals remain robust. Across most sectors, occupancy rates are high, with only the office sector facing notable challenges, particularly in urban areas where vacancy rates are elevated due to evolving work trends.

Nadji identified pockets of overbuilding in certain segments such as apartments and warehouse distribution facilities, driven largely by the growth of e-commerce. However, these concerns are not indicative of broader performance issues across the industry. He noted that the primary drag on performance comes from older urban office spaces, where vacancy rates are highest due to shifts towards hybrid work models.

Moving to the capital markets, Nadji pointed out the lingering gap between buyers and sellers, coupled with reticence from lending institutions to actively engage in the market. This hesitancy contributes to ongoing challenges, particularly in terms of valuation and sentiment within the sector. Nadji acknowledged that market sentiment is closely tied to Federal Reserve expectations and interest rate movements, with fluctuations in these factors directly impacting stock prices and overall market sentiment. “There’s a direct correlation between the groups, the entire sector’s valuation movement, and Fed sentiment. We saw a big run-up in the sector’s valuations late last year when interest rates were coming in. The 10-year Treasury had peaked around 5% and then boom, all the way back down to 4% and you saw the stock prices go up accordingly and when the Fed basically changed its mind again given the inflation readings of the last couple of weeks coming in hotter than expected and now the notion of delaying the easing cycle you see the stocks are under pressure again so there’s a direct correlation between Fed expectations and interest rates.”

In response to questions about client priorities, Nadji highlighted a noteworthy shift in investor behavior. While there is anticipation for a potential easing cycle from the Federal Reserve, investors are not solely reliant on this event. Instead, they are increasingly drawn to properties that offer competitive pricing relative to replacement costs. This shift indicates a growing recognition of the intrinsic value within the market, independent of monetary policy shifts.

Ultimately, Nadji’s insights provide a nuanced understanding of the current commercial real estate landscape. While challenges persist, particularly in segments like urban office spaces, there are bright spots emerging, fueled by resilient property fundamentals and evolving investor strategies. As the market continues to adapt to changing economic conditions, navigating storm clouds while capitalizing on opportunities will be crucial for industry stakeholders.

In conclusion, the conversation with Hessam Nadji serves as a valuable resource for anyone seeking to understand the complexities of the commercial real estate market in today’s dynamic environment.

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April 25, 2024