Apr 18, 2018 - 0 Comments - Top Stories -

Miami Commercial Real Estate News April 18, 2018: $380 Million Development on Riverfront; Bayside Evicting; More…

View of downtown Miami from Key Biscayne Bridge

$380 Million Development Bringing Rentals, Retail to Miami Riverfront

The banks along the Miami River are mostly closed off to the public. Developer Andrew Hellinger is determined to fix that. “It’s not as inviting as it ought to be,” Hellinger told CoStar News. “What we’re trying to do is open up the river and invite the people of Miami-Dade County to come hang out with us.” His $380 million River Landing Shops and Residences is under construction along the north bank of…

There’s plenty wrong with Miami Beach’s sea level rise mitigation: property owners

Miami Beach’s $400 million effort to address rising seas and chronic flooding is having a negative effect on commercial and residential properties, according to residents who aired their grievances during a public hearing on Tuesday tied to an Urban Land Institute panel’s study of the city’s projects. Among the issues, Miami Beach Historic Preservation Board member Scott Needleman said Miami Beach…

U.S. Mortgage Bankers Closed Record $530 Billion In Commercial, Multifamily Loans In 2017

According to the Mortgage Bankers Association’s 2017 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, U.S. commercial and multifamily mortgage bankers closed a record $530.1 billion of loans in 2017. “2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates, and a ready supply of mortgage capital all…

As Malls Get Crushed, Commercial Real Estate Prices Fall to Lowest in Nearly Two Years

Commercial real estate loans at banks in the US reached a record of $4.3 trillion. This amount is now 11% higher than it had been during the crazy peak of the prior commercial real estate bubble before it imploded during the Financial Crisis. In CRE, leverage is everything. Banks, particularly smaller regional banks that specialize in it, are on the hook. Fed governors have pointed at CRE as one of the places…

Commercial Borrowing Cost Quarterly – 2018 Q1

On a quarterly basis we publish a yield curve update, showing the shift is the U.S. Treasury Yield Curve at the end of a quarter over the prior quarter. What is more directly of interest to commercial real estate investors, however, is the 5 year U.S. Treasury yield, given its relationship both to commercial borrowing costs, with many if not most commercial lenders tying rates to this yield, and cap rates…

Yield Curve Quarterly Snapshot – 2018 Q1

At the end of the 1st quarter of 2018, U.S. Treasury yields, on a nominal basis at all maturities from around 30 to 50 basis point. It was essentially the same situation on a real basis, with real rates up around 20 to near 40 basis points at all maturities. The interest rate environment has the ability to affect commercial property economics in a number of different ways (see this, this, and this). Borrowing…

Congress Group launches sales of new Bay Harbor Islands condo project

More than two years after buying waterfront land in Bay Harbor Islands, Congress Group is launching sales of a boutique condo project, the second of two developments it’s planning in the bayfront town. Congress hired Compass to handle sales of Opus Bay Harbor, a seven-unit, eight-story building planned for 10301 East Bay Harbor Drive, said Philip Freedman, managing director of Compass Florida’s…

Multifamily development drives March increase in housing starts

Construction starts exceeded expectations in March on the back of strong multifamily development. A federal report released Tuesday show that residential new construction rose by 1.9 percent to a 1.32 million annualized rate, around 50,000 more than the 1.27 million earlier predicted, according to Bloomberg. The typically volatile multifamily sector saw starts rise by 14.4 percent, reversing the 10.2…

Miami downtown riverfront targeted for three towers

In August Miami voters may be asked to OK redevelopment of 4.2 acres of downtown riverfront that would add city revenue and improve access to the growing waterfront after razing the city-owned James L. Knight Convention Center and attached Hyatt hotel at 400 SE Second Avenue. CBRE, a commercial real estate services firm, has been negotiating on behalf of the city with Hyatt Equities LLC about… the…

Courthouse consultant KPMG leaks confidential proposal, ousted

Less than a month before a decision on how to move forward on a new Miami-Dade courthouse, consultants last week leaked a confidential unsolicited proposal to a potential competitor. As a result, KPMG is no longer advising on the project and the county is seeking new consultants to remain on schedule. The courthouse at 73 W Flagler Street, built almost 100 years ago, needs immediate…

Luxury condo Brickell Flatiron is 75 percent sold, still has over 100 units available

The developer has completed 32 floors of the proposed 64-story benchmark Developer CMC Group has sold about 75 percent of its 549 units at Brickell Flatiron, a luxury condominium tower in Downtown Miami. The luxury sky rise—that will measure 736 feet tall once its finished—has nearly 138 units that are still available. Ugo Colombo, developer and CEO of CMC Group, also completed 32 floors of the…

Confidential downtown Miami courthouse plans leaked to rival developer

Details of Brightline’s parent company’s plans for a new courthouse in downtown Miami were leaked to a competing real estate developer by the county’s consultant, according to a memo from Miami-Dade Mayor Carlos Gimenez. That throws a new wrench into the already controversial development plans for the new courthouse. KPMG LLP, the county’s financial adviser on public-private projects, will no…

Related and Dezer sell Hyde Midtown hotel for $22M

The Related Group and Dezer Development sold the hotel component of Hyde Midtown for $21.8 million, property records show. Midtown Hotel Investment LLC, led by Haim Yehezkel, bought the yet-to-open 60-room hotel at 4101 Northeast First Avenue in Miami. Yehezkel heads Elysee Investments, a commercial investment firm in Miami Beach and New York. The buyer financed the deal with a…

Miami Industrial Real Estate Market Report First Quarter 2018

For the first time, the average asking gross lease rate for warehouse spaces in Miami is now above the $10.00 per sq. ft. mark (but, just barely). Strong market forces and new construction have helped make this happen. Landlords will continue to push rates even higher, however this first quarter shows a slight increase of the average vacancy rate to 4.3% and the positive absorption was only 10,422 sf…

Resorts World Denied Bid To Move Gaming Permit From Gulfstream

Genting may not transfer a racing license from Gulfstream Park to Resorts World Miami, the State of Florida has ruled. The company had filed a Petition for a Declaratory Statement with the state’s Department of Business and Professional Regulation on whether a permit could transferred to the Omni property in downtown Miami. At issue was whether the permit could be moved from Gulfstream, which…

Panorama Tower adds tech-focused fitness center in Miami

Residents will also have access to Virtual Fitness Concierge, an app that tracks your fitness goals Panorama Tower, a 821-unit property in Miami, offers residents access to a tech-friendly fitness center that includes a concierge app that helps manage exercising. The Brickell Avenue residency released renderings of its amenities. The 15,000-square-foot fitness center includes an app by Fit Solutions called…

Luxury condo X Miami adds dog park and outdoor cinema as new amenities

The 464-unit property features other amenities such as a courtyard and fitness studio X Miami—an apartment community that’s big on residents engaging—released renderings of its amenities that includes a dog park and outdoor cinema. The luxury condo also shared renderings of its other perks that includes a pool deck. Residents of the 464-unit property in Downtown Miami won’t need to leave…

Bayside alleges four stores haven’t paid rent, sues to evict Claire’s and Envy

The owner of Bayside Marketplace filed four separate lawsuits against Claire’s and three other retailers, alleging unpaid rent. In some cases, it is seeking to evict the tenants. Bayside Marketplace LLC wants to evict Claire’s and Envy from the waterfront mall at 401 Biscayne Boulevard. It’s also suing Splash Perfumes and I Luv Miami for allegedly not paying rent. A spokesperson for the mall declined to…

Norman Sturner merges MHP with Miami’s Banyan Street Capital

Norman Sturner’s MHP Real Estate Services sold a stake in the company for an undisclosed figure to Miami-based firm Banyan Street Capital, forming a joint venture with a combined portfolio valued at more than $3 billion. Sturner, MHP’s president and CEO, will hold the position of chairman of the combined companies, the Commercial Observer reported. He will focus on sourcing deals and…

Midtown 29 awarded LEED Silver certification by U.S. Green Building Council

The LEED Silver certification is given to buildings with sustainable design and a focus on saving energy The U.S. Green Building Council awarded architecture and design firm, Stantec with a LEED Silver certificate for its green-friendly residential building, Midtown 29. USGBC is a non-profit organization that gives a framework to create efficient and cost-saving buildings. LEED, or Leadership in Energy and…

Despite failed crowdfunding effort, billionaire continuing with Toys “R” Us bid

From TRD NYC: Who wouldn’t donate to a billionaire’s GoFundMe campaign to save a bankrupt toy retailer? Most people, evidently, but the poor response to Isaac Larian’s crowdfunding campaign — it was supposed to bring in $1 billion and only raised $59,000 so far — is not slowing him down. Larian, the founder of MGA Entertainment which makes toys like Bratz dolls, told the…

CC Residential lands $43.3 milion construction loan for Doral apartments

CC Residential, led by developers Armando Codina and James Carr, landed a $43.3 million bank loan to finance construction of an apartment building in Doral. A company affiliated with Coral Gables-based CC Residential got the construction loan from PNC Bank. The loan will finance construction of Doral 4200, a 250-unit apartment building on a 9.6-acre site at 4200 Northwest 107th Avenue in Doral.

Sprouts Farmers Market plans to open its first grocery stores in South Florida

Organic grocery store chain Sprouts Farmers Market plans to open its first two South Florida locations in Broward County and Palm Beach County. The Phoenix, Arizona-based company announced plans to open stores in Deerfield Beach and Wellington, but didn’t specify when. The new stores will be located at Federal Highway and Southeast 10th Street in Deerfield Beach, and at State Road 7 and Old…

$1.8M sky lounge designed by Koko Architecture + Design debuts in Miami

A $1.8 million sky lounge was unveiled Tuesday on the eleventh floor of the Miami Tower at 100 SE 2nd Street in Miami. The reveal was by Transwestern, which manages the floor-to-ceiling glass property for Sumitomo Corporation of Americas. The sky lounge is part of the 5,500-square-foot sky lobby. Amenities include three bars, a banquet…

Lucky’s plans to open three more grocery stores in South Florida

Lucky’s Market plans to expand its chain of grocery stores to multiple markets in Florida including Boca Raton, Cooper City and Dania Beach. Boulder, Colorado-based Lucky’s will open the new grocery stores in South Florida and elsewhere in the state within two years.
Lucky’s already has three South Florida locations in Coral Springs, Oakland Park and Plantation and plans two open three more in Boca…

Turnberry Associates and LeFrak buy Costco store next to SoLē Mia

Turnberry Associates and LeFrak just picked up a Costco site to add to their $4 billion SoLē Mia mixed-use project. Property records show an affiliate of Turnberry Associates and LeFrak paid $16.94 million to buy the Costco at 14585 Biscayne Boulevard in North Miami Beach. The property sits on 11.5 acres of land. Costco Wholesale Corp. sold the 143,550-square-foot…

Threefold Cafe to open new concept in Allapattah & other restaurant moves

Threefold Cafe and Relentless Roasters are joining forces to launch a new concept in Allapattah. Threefold, which has two locations in Coral Gables, and Relentless Roasters, a craft coffee roasting company based in Miami, will open Deco Coffee Co. at 2829 Northwest 13th Avenue in Allapattah, according to broker Luis Guevara. Guevara, Lyle Chariff and Mauricio Zapata of Chariff Realty Group brokered the…

AVR proposes 82-story tower in downtown Miami

The owner of a downtown Miami Courtyard Marriott is proposing redeveloping the site into an 82-story mixed-use tower. A proposal filed with the city of Miami’s Urban Development Review Board reveals AVR Realty Co.’s plans to build a 1.5-million-square-foot residential and hotel high-rise at 200 Southeast Second Avenue. The development would include 637 residential units, 266 hotel rooms, about 9,200…

Tax increment financing could fund sea level rise mitigation projects: David Martin

The panel on development in a sea level rise environment: Architect Lisa Anne Couture, Harvard professor Jesse M. Keenan, developer David Martin, U.S. Congressman Patrick Murphy and Adler Group executive Jonathan Raiffe. To entice developers into combating sea level rise, local governments should consider leveraging property tax revenues from a designated area to finance infrastructure projects that…

Changes at Lennar: Stuart Miller steps down as CEO, replaced by Rick Beckwitt

Stuart Miller stepped down as CEO of Lennar Corp. and will be replaced in that role by Rick Beckwitt, the company announced on Thursday. Miller is now executive chairman of the Miami-based homebuilding company. He was previously chairman and CEO. Lennar was co-founded by Miller’s father, Leonard Miller, in the 1950s and has grown to become the biggest home builder in the country. Stuart…

Walmart’s $200M Plan in Florida

Walmart says it’s investing $200 million in Florida to build and improve 43 stores while also testing new technologies and innovations across the state. The retailing giant plans to open five of its smaller-formet Neighborhood Market grocery stores statewide in 2018, including three in Miami-Dade and Broward counties. A sixth grand opening will be a Supercenter in Jacksonville. Meanwhile, 37 stores…

Aventura Mall just installed charging stations for electric cars

Aventura Mall recently added charging stations near two anchor stores Now you can extend your shopping time at Aventura Mall. The Miami mall’s latest addition are charging stations for electric cars. “As the number of electric vehicles increase, so does the need for Blink EV charging stations in retail locations across the country,” says Blink Charging’s chief executive offcer, Mike Calise. “We are ecstatic to…”

Data: Fisher Island holds the wealthiest zip code in America

A report by Bloomberg shows that Fisher Island is the most exclusive neighborhood in the US When it comes to money, the people of Fisher Island have loads to spare—so much that it’s considered the richest zip code in America. This accomplishment is a huge jump from its fourth place slot two years ago. In 2015, zip code 33109 boasts an average income of $2.5 million per person, says Bloomberg data.

Sneak peek at Miami Design District’s new Museum Garage

A new garage with an array of whimsical facades is set to open in Miami’s Design District by the end of the month. Featuring designs by five high-profile architects, the seven-story Museum Garage on 41st Street and Northeast First Avenue will house ground-level retail and space for 800 cars. The Miami Design District is majority owned and operated by Miami Design District Associates, a partnership…

Axiom Construction scores financing for downtown Homestead Station project

The city of Homestead is one step closer to completing its public/private transit-oriented project, which will include a ShowBiz Cinema, more than 30,000 square feet of retail and a new parking garage. Property records show developer Axiom Construction scored a $13.7 million construction loan for Homestead Station, a 150,000-square-foot development planned by the city in…

The richest ZIP code in the US was once owned by a Vanderbilt

Where in the U.S. do locals take in an average of $2.5 million a year? Somewhere in Silicon Valley, Manhattan, or Los Angeles? It’s actually on a man-made barrier island in Miami, Florida named after South Florida’s first African-American millionaire and once owned by the Vanderbilt family. Fisher Island’s 33109 ZIP code is the country’s richest, according to an analysis of 2015 tax data by Bloomberg.

Self-Storage: A Lucrative But ‘Get-Rich-Slow Business’

Jay Massirman’s specialty is self-storage, one of the more humdrum – but potentially lucrative – niches in commercial real estate. Massirman’s Miami City Self Storage (MCSS) recently opened a 1,000-unit facility at 490 NW 36th St. in Miami, close to the emerging neighborhoods of Wynwood and the Design District. MCSS and other developers saw opportunity following the housing…

The Miami Beach Surf Club, Other Great Robber Baron Getaways Are Being Reborn as Top Hotels

The History: The Surf Club opened with a debauched New Year’s Eve gala in 1930—in the middle of Prohibition—and never stopped partying. Elizabeth Arden would throw Champagne-fueled fashion shows by the pool. Winston Churchill took two poolside cabanas: one for painting and one for sleeping off hangovers. Frank Sinatra and other members of the Rat Pack saw it as a place to do whatever they…

In Miami, Even The Parking Garages Are Sexy

Miami is serious about its parking garages. On Miami Beach, one such structure designed by Herzog & De Meuron is so fancy that people hold weddings atop it. When South Beach needed a garage at Collins Park, famed architect Zaha Hadid, who died in 2016, went to work designing it (although it won’t get built due to costs). At Porsche Design Tower, residents can take their cars up the elevator and drive…

Coconut Grove Park Homeowners Assn Protests Density in Proposed NCD Changes

The Coconut Grove Park Homeowners Assn. (CGPHA)sent this mailing out yesterday, regarding the upcoming PZAB board hearing on the proposed new Coconut Grove NCD changes. It appears to many that it supports too much density in the Grove. We are a small village, it makes no sense to add so much density to the village. From the CGPHA: This Wednesday at 6:30 pm there will be a PZAB hearing to…

Coconut Grove’s Florentine Plaza to become “The Grove MIA?”

Florentine Plaza has plans for a make-over, but it’s not finalized, yet they are already scouting for tenants. The current plans for the complex to be called “The Grove MIA” doesn’t appear to be adding a high rise. The current Mediterranean style of the building will be preserved, but modernized. At the rear of the complex, where the parking lot is now, will be Phase II, which will consist of retail shops.

Video: German Startup Volocopter Developing “Air Taxi” System for Cities

Germany based Volocopter aims to be taken seriously in the “flying car” business with its well considered infrastructure plan. They propose a system of landing pads, charging stations, and passenger loading and unloading areas around an urban area. In this video, the company is promoting its vision for a network of rooftop based “Volo-ports” where the company claims as many as a thousand…