Aug 01, 2018 - 0 Comments - Top Stories -

Miami Commercial Real Estate News August 1, 2018: 100-Units Proposed for Little Havana; More Projects Going to a Vote; More…

Fed keeps interest rates steady, stresses “strong economy and job market”

The Federal Reserve, led by Chairman Jerome Powell, decided not to raise interest rates on Wednesday, stressing that the economy and job market remain strong. Many expect the central bank to raise rates next month. The Fed also highlighted the low unemployment rate, and noted that household spending and businesses investment have grown strongly according to the Wall Street Journal. The comments…

Crowley Inks 286,000 SF Of Lease Transactions In Miami-Dade’s Tight Industrial Market

Miami-Dade County reports a 4.8 percent vacancy rate, and Medley and Doral continue to be two of the most in-demand and active industrial submarkets. A South Florida industrial team announced it negotiated 285,985 square feet of transactions on behalf of Crowley Maritime Corp., a marine solutions, energy, and logistics services company operating in domestic and international markets.

Eastern Atlantic plans affordable housing project in Little Havana

Eastern Atlantic Companies is proposing to build an affordable housing apartment project in Little Havana. The Miami-based firm wants to develop First & Sixth, a 100-unit rental building at 35 Southwest Sixth Avenue, according to a permit filed with the city of Miami. The development would add to a slew of apartment buildings underway in the area, which lies near the Miami River. The 13-story tower wil…

Developer Offers Renters Who Surrender Their Cars Lower Rent at New Miami Apartment Project

Would you be willing to live without a car if it meant a break on your monthly rent? One apartment developer in downtown Miami is betting more prospective tenants will say yes. Melo Group is handing out $100 monthly rent discounts at a new apartment project for people who surrender a set of wheels, though some analysts are skeptical the perk will work in such a spread out region as South Florida.

Miami Takes Steps To Become A Truly International City

Johanna and Juha Mikkola personify Miami’s emerging economy: entrepreneurial, creative and shaped by cultures ranging from the Americas and the Caribbean, to Europe and Asia. In less than five years, the Finnish couple has scaled up their tech education business with a little help from some new friends. They’ve completed a first capital raise – $1 million from…

Don’t let Dolphins’ bonanza reopen business bidding war

Miami opens purses for sports so freely and so often that it was no surprise when the county last week granted the Miami Dolphins up to $71 million to build a practice site that could cost $70 million beside the team-owned stadium in Miami Gardens on what is now a parking lot. That move 10 miles south from Broward County was smart: it would have made business sense for the team without the county…

Carlos Giménez: Mayor sees county taking lead on new mobility modes

Shortly after Carlos A. Giménez was elected Miami-Dade County mayor in June 2011, the former county commissioner and Miami city manager told Miami Today that transitioning to his new role was easier than expected. Now halfway through his second and final four-year mayoral term, Mr. Giménez says that while his prior experience informed his administrative work early on, his confidence as a public…

The city’s Urban Development Review Board recommends Little Havana apartments/retail plan

A developer plans to transform a corner block in Little Havana into a mixed-use apartment building lined by retail shops. Altman Development Corp. is proposing to construct a project called Altis Little Havana at 2100 SW Eighth Street. Plans call for about 224 residences, 9,500 square feet of commercial-retail, and parking for about 351 vehicles. The city’s Urban Development Review Board has…

No doldrums: new jobs spurt up in manufacturing, construction giving Miami-Dade County’s economy a boost

Growing jobs are giving Miami-Dade County’s economy a solid boost in the heat of summer months that decades ago were known only for the off-season doldrums. Both the US Bureau of Labor Statistics and the One Community One Goal targeted job creation program here produced figures last week that showed a stronger labor situation than Miami has ever seen – at least in the total number of…

For the first time in seven years, City of Miami doesn’t lower overall millage rate

The proposed overall millage rate in the City of Miami, used to calculate property tax bills, will remain unchanged for the fiscal year that begins Oct. 1. The city commission on July 26 set the proposed overall millage rate for fiscal year 2018-19 at 8.0300 mills. It includes general operating millage of 7.5865, and debt service of 0.4435, reflecting slight adjustments from the current fiscal year. The city’s…

County OKs funding most of study for dredging to add PortMiami capabilities

Miami-Dade commissioners have approved paying both the remainder of the county’s investment in a $3 million feasibility study of improvements to PortMiami as well as the portion the US Army Corps of Engineers would be responsible for paying. Commissioners last week OK’d spending a total $2,443,750 to fund the study – a combination of $556,250 the county spent to start the study in June plus…

Moishe Mana picks up corner property in downtown Miami

Moishe Mana just picked up another piece of downtown Miami real estate to add to his assemblage, and is under contract to purchase two more for $40 million, according to a spokesperson. Mana’s Jersey Art Holdings LLC paid $3.5 million, or about $440 per square foot, for the 8,000-square-foot corner lot at 100 South Miami Avenue, about one block north of the entrance to I-95. Donald J. Robinson…

Sen. Rubio wants to thwart real estate-targeted money laundering

Florida Republican Sen. Marco Rubio is seeking more transparency of shell companies’ purchases of U.S. real estate in an attempt to thwart money laundering. Rubio is proposing an amendment in an unrelated spending bill that would require shell companies across the country to disclose their owners for real estate purchases of more than $300,000 or more in cash, according to the Miami Herald.

What Industrial Tenants Want

Ask any industrial broker about the most important feature to industrial tenants looking for a new facility and they’ll say “location.” After that, it’s probably going to be clear height, with at least 32 feet, but preferably 36 or 40 feet, especially for large users (those taking 500 to 1,000 sq. ft. or more). But according to Blaine Kelley, Atlanta-based senior vice president of the global supply chain practice with real…

City votes yes on ‘solar halo’ for Bayfront Amphitheater

The urban installation will be one of the largest of its kind in the country Miami city commissioners have backed a move to construct a retractable, ring-like roof covered in solar panels atop the Klipsch Amphitheater at Bayfront Park. The officials waived the city’s competitive bidding requirements to fast-track the project—which they hope will be completed in 18 months and in time for Miami’s…

Melo Group closes on downtown Miami church site next to Okan Tower

The Melo Group just added to its assemblage in downtown Miami near Miami Dade College, property records show. Melo’s 6 Plaza LLC paid $10.75 million for a portion of the property at 500 Northeast First Avenue. The seller is Christ Fellowship Baptist Church, which has sold pieces of its properties downtown to Melo and the Okan Group. Okan is planning Okan Tower, a 70-story hotel and condo tower…

Class A office rents rise in Q2 across much of South Florida: report

Class A office rents across most of South Florida rose in the second quarter due to a strong economy and new construction, according to a new report by Cushman & Wakefield. The exception was Miami-Dade County, where asking rents declined 2.7 percent year-over-year to $44.96 per square foot. But Cushman & Wakefield’s Florida research director Chris Owen said this drop does not appear to be a trend or…

Mears Group, Florida Vocational secure leases in SoFla: lease roundup

Florida Vocational Institute moves into Miramar Park of Commerce. Florida Vocational Institute has inked a 30,000-square-foot lease at the Miramar Park of Commerce. The 5 million-square-foot business park is located at 3502-3560 Enterprise Way. The school offers training for students interested in entry-level careers in healthcare and information technology. In addition to the new Miramar campus, FVI…

No End in Sight to Industrial Demand in Miami-Dade County, Brokers Say

In the latest sign of strength for the Miami-Dade County industrial market, Crowley Maritime Corp. has expanded and combined most of its South Florida operations into 179,672 square feet at Flagler Station Phase II in Medley, FL, a small town on the northwestern edge of Miami-Dade. The shipping company extended its lease and signed on for more space, taking a full building at 10205 NW 108th Avenue.

Food halls proliferate as the dining format finds more fans in Florida

Food halls have popped up across Central Florida as well as South Florida amid the spreading popularity of  common dining rooms with multiple meal vendors. Just north of downtown Fort Lauderdale, for example, Sistrunk Market and Brewery, a 40,000-square-foot development with a 12-stall food hall, is scheduled to open in November. In Central Florida, a new hotel called Aventura is scheduled to…

Interactive entertainment center spanning 250,000 square feet opens in North Miami

Real estate developer Michael Dezer quietly has opened an interactive entertainment center in North Miami that spans 250,000 square feet. The official grand opening of Dezerland Park in January 2019 will feature the introduction of bumper cars, go-karts, an outdoor paintball facility, a miniature golf course and an indoor skydiving attraction. The North Miami property at 14401 Northeast 19th Avenue…

Half way between an Airbnb and hotel, meet the boutique apart-hotel

A new cadre of hoteliers are championing the concept of apart-hotels, properties set up for longer-term stays, and they credit Airbnb with helping them see the light. Because of the short-term rental giant, the idea “that there could be some advantages to a residence versus a room,” has proliferated and sparked inspiration in the minds of people like Larry Korman, president of apart-hotel brand AKA, according…

Wells Fargo mulls sale of Eastdil Secured

Wells Fargo is considering selling Eastdil Secured as the bank disposes of its non-core businesses. The San Francisco-based financial institution has been gauging interest for the commercial real estate brokerage from private equity firms, the Wall Street Journal reported. It wasn’t clear what price Eastdil might fetch. Wells Fargo bought the company for an undisclosed amount in 1999. However, banks are…

Comras, partners sell Sephora building in South Beach to Cosentino subsidiary

A group of investors led by Michael Comras sold a Miami Beach building leased to Sephora Cosmetics for $7.5 million. CLB Associates Ltd., controlled by Comras, sold the 5,400-square foot building at 721 Collins Avenue to Prisma Properties LLC, a subsidiary of Cosentino North America. Marcus & Millichap’s Kirk Olson and Drew Kristol represented the seller, whom they declined to identify. Steven O’Hara…

Voters to decide on Miami Riverside Center redevelopment

The $1 billion soccer stadium and commercial development proposed by David Beckham and his partners is going to have some company on Miami’s Nov. 4 ballot. The Miami City Commission voted unanimously on Thursday to let residents approve or reject a deal with the Adler Group to build a four-tower mixed-use project on the city-owned site of the Miami Riverside Center in downtown Miami. But…

Moishe Mana nabs $20M loan for Mana Wynwood trade hub

Developer Moishe Mana just financed a handful of properties in Wynwood for a massive trade hub he’s planning next to Mana Wynwood. Mana’s Malux Realty, Malka Realty and Mizrachi Holdings closed on the $20.13 million mortgage from Centennial Bank for the properties at 2337 Northwest Fifth Avenue, 375 Northwest 23rd Street, 394 Northwest 24th Street and 382 Northwest 24th Street. The land includes…

Firm Arranges $180 Million Sale of 1 MSF Industrial Portfolio Near Miami

Duke Realty Corp. acquired the assets for $180 million, according to local media reports. At full build-out, Countyline Corporate Park will include 8 million square feet of space on approximately 500 acres. The three buildings were fully leased at the time of sale to KLX Aerospace, CGI Windows & Doors and Hyde Shipping, among others.

Gambling in Miami? Not so fast. Potential jai alai in Edgewater may prompt new zoning rules

In response to a controversial proposal by the owners of Magic City Casino to open a jai alai fronton and poker room in Miami’s Edgewater neighborhood, city officials want to draft new zoning regulations that would require gambling facilities to go through a public hearing process and obtain a super-majority vote from the Miami City Commission. City commissioners voted 4-0 on Thursday to…

Porsche Design Tower unit tied to $1B Venezuelan money laundering scheme: feds

Federal prosecutors charged eight people on Wednesday in an alleged scheme to launder more than $1 billion embezzled from the Venezuelan state-owned oil company PDVSA, using Miami real estate and fake investments. The criminal complaint further alleges that the former legal counsel to the Venezuelan Ministry of Oil and Mining used a condo at the Porsche Design Tower in Sunny Isles Beach…

South Florida June resi construction starts up, but commercial down

Construction starts in South Florida were up in June on a year-over-year basis, but a sharp drop in commercial construction slowed down the overall growth, according to Dodge Data & Analytics. Residential construction in South Florida leapt by 66 percent to $974 million from $586 million in June compared to June 2017. Commercial, on the other hand, plummeted 44 percent to $616 million from $1.1…

Most big cities across US show signs of housing market cool-down: report

South Florida’s once booming housing market appears to be cooling down along with a majority of other metro areas in the United States, as median annual home prices slowed in the second quarter. The Miami metro area’s annual median home prices rose 6.4 percent to $266,000 from April to June, compared to an 8.7 percent gain from January to March, according to a new report by Attom Data…

Chinese buyers’ retreat could hurt US property values

For the first time in a decade, Chinese insurers, conglomerates and other investors have become net sellers of U.S. commercial real estate. Following Beijing’s tightening of capital controls, Chinese investors sold $1.29 billion worth of U.S. commercial real estate in the second quarter, while purchasing only $126.2 million, the Wall Street Journal reported. The pullback could slow down growth in the U.S. real…

Geoffrey has left the building: Toys “R” Us hires advisory firm to sell US properties

Toys “R” Us is bringing in Raider Hill Advisors to help sell off 284 stores, distribution centers and other properties around the country. The move comes four months after the once mighty toy retailer announced it would shutter all of its stores following its bankruptcy. The company announced that New York-based Raider Hill, a private real estate investment and advisory firm, would lead “efforts to…

Miami-Dade approves plan to lure Miami Dolphins training facility to Miami Gardens

Miami-Dade County has devised a plan to bring a roughly $70 million training facility for the Miami Dolphins to the city of Miami Gardens, approving the plan on Tuesday. In a 10-1 vote, commissioners rubber-stamped an incentive package and land deal that would put the Miami Dolphins’ training facility and headquarters offices right next to the Hard Rock Stadium, according to the Miami Herald.

Video: Equus Capital Partners SVP Joe Nahas on the Top 5 Long Term Issues Affecting Real Estate

The Counselors of Real Estate release an annual report that breaks down the top issues (10) affecting commercial real estate. This year, the publication is broken into the 5 current and 5 long term issues that are facing the industry. This video covers the 5 long term issues affecting commercial property fundamentals. The 5 more current issues can be found in a prior video.

Video: Equus Capital Partners SVP Joe Nahas on the Top 5 Current Issues Affecting Real Estate

The Counselors of Real Estate release an annual report that breaks down the top issues (10) affecting commercial real estate. This year, the publication is broken into the 5 current and 5 long term issues that are facing the industry. This video covers the 5 more current issues affecting commercial property fundamentals. The 5 longer term issues can be found in a subsequent video.

Multiple multi-million dollar office sales last month in Florida

Some companies in Florida own the real estate they do business on. Other companies prefer to rent their premises. This can be very lucrative for the landlord, particularly when the real estate can be portioned out for use by multiple commercial tenants. However, just like real estate in general, the commercial real estate market fluctuates and buildings are sometimes worth more than at other times.

Final PriceSmart Sublease Transactions Totaling 70,000 SF Closed

A South Florida industrial team announced it facilitated two sublease transactions totaling 70,471 square feet at Flagler Station Phase II in Medley for PriceSmart Inc., the largest operator of membership warehouse clubs in Central America and the Caribbean. The transactions consumed what remained of the 262,382-square-foot block that PriceSmart listed for sublease upon migrating the majority of its…

Baptist Health under contract to buy Coral Gables development site at center of litigation

Baptist Health is under contract to pay $41.5 million for the development site of the Collection Residences in Coral Gables — a property at the center of contentious litigation between developers Masoud Shojaee and Ugo Colombo, court documents reveal. The Baptist deal could close within two months. Shojaee and Colombo had planned to jointly develop the Collection Residences, a mixed-use project…

Century Homebuilders scores $20M loan for new home communities in west Miami-Dade

Century Homebuilders just scored a $20 million loan to build four single-family home communities in western Miami-Dade County, property records show. The Coral Gables-based developer will use the financing to construct 92 new homes, including a community with 59 single-family homes in West Kendall. It’s also planning build two smaller communities in Westchester and an 18-home development…

Across US, new home sales and prices drop

The nation’s housing market is showing signs of a slowing down. New home sales reached an eight-month low, according to new government data released Wednesday, dropping 5.3 percent from May. The numbers came out to an annualized pace of 631,000 new homes, according to the data, which Bloomberg reported first. The median home prices was also down last month, to $302,100, which…

Developer of the Fairchild condo project in Coconut Grove closes on $27M construction loan

The developer behind the Fairchild Coconut Grove just closed on a $27 million construction loan for the luxury condo project, marking one of a few new condo projects to secure construction financing in recent months. ROVR Development, led by Oscar Rodriguez and Ricardo Vadia, broke ground on the 26-unit bayfront building at 3581 East Glencoe Street in April and plans to deliver the project in…

What Office Downturn? South Florida Investment Firm Owner Describes Hunt, Competition To Buy Class-A Buildings

Accesso Partners is a South Florida-based investment firm that owns and manages Class-A office space in fast-growing cities and premier suburbs — currently, 40 properties in 12 states. Despite recent reports of a softening office market, the company is hungry to expand. Flickr Creative Commons / Sharon Mollerus The IDS Center in Minneapolis has distinctive architecture and a large open indoor space…

Miami Beach residents to vote on Jackie Soffer and David Martin’s convention center hotel

For the second time in two years, Miami Beach voters will again decide if the city gets a convention center hotel. On Wednesday, the city commission voted unanimously to place a referendum on the Nov. 4 ballot asking residents whether the city should enter into a 99-year lease with a star-studded development team, headlined by Jackie Soffer of Turnberry Associates and David Martin of Terra Group. The…

Avra Jain and David Martin buy site across from Miami Northwestern High School, plan sports entertainment facility

A partnership between Avra Jain and David Martin of Terra closed on a property and financing for a new project in the Liberty City neighborhood of Miami, just west of Little River. Jain and her business partner Joe Del Vecchio are partnering with Martin to build a 95,000-square-foot flex warehouse development on the 4.7-acre site at 1010 Northwest 72nd Street, Jain said. David Avan’s 1010 NW…

American Landmark, Electra America on a Spending Spree in South Florida

A multifamily investment partnership picked up its fourth South Florida property this year with the acquisition of the Park Colony Apartments in Hollywood, FL for $56 million… Tampa-based American Landmark and Electra America of North Palm Beach have already this year acquired High Ridge Landing in Boynton Beach, Beach Walk at Sheridan in Dania Beach and the Lago Paradiso in Miami.

These New Hotels – Coming to Miami – Can Actually Compete With Airbnb

Locke Hotels’ pipeline includes 22 projects in the next few years, including locations in Dublin, Paris, and Berlin. “The intention is to cover every major European city and get the company to $2 or $2.5 billion [in valuation]—then we’ll look at the U.S. and Australasia markets,” says Jafari. AKA, meanwhile, intends to grow from 12 to 36 properties in the next five years, covering Paris, Rome, Austin, Miami…

Developer Bets That, In Miami, You ‘Really Can Live Downtown Without A Car’

Melo Group’s new apartment complex, Square Station, opened in June at 1424 Northeast Miami Place, right in downtown Miami, adjacent to a Metromover stop. Rents at the two towers’ 710 units range from $1,650 for one-bedrooms to $2,500 for three-bedrooms. Units come with a complimentary parking space, but the developer is offering renters a $100-a-month discount for the entirety of their leases if they…

Florida’s Brand-New Private Train Is Close To Running Out Of Money

The privately funded Brightline train debuted in South Florida in January, to great fanfare that included Miami Heat dancers and a mojito bar. So far, Brightline trains have killed half a dozen people who were crossing its tracks — but that is probably not the service’s biggest problem. The deaths were chalked up to careless or suicidal people crossing the tracks and addressed with a public safety campaign.