Jan 24, 2024 - 0 Comments - Top Stories -

Miami Commercial Real Estate News January 24, 2024: MSC Announces Downtown Miami HQ; Evacuated Surfside Condo Bought as Dev Site; Major Live Local Act Reach Testing Lawsuit Filed;

Bal Harbour Shops Owner Files First Major Lawsuit Testing Reach Of Live Local Act

The owner of the Bal Harbour Shops is stepping up its fight with local politicians to add four residential towers to the luxury shopping center. Whitman Family Development, which owns the shops, filed a lawsuit Tuesday asking a judge to compel the village to approve its plan to develop more than 500 apartments on the property under the Live Local Act. The filing marks one…

Bal Harbour Shops sues village over response to its planned expansion

The owner of Bal Harbour Shops is counterattacking the village’s plan to fight a mixed-use expansion of the high-end shopping center under Florida’s new affordable housing law. Bal Harbour Shops, owned by Whitman Family Development, filed a lawsuit against Bal Harbour on Tuesday, two weeks after submitting an application under Florida’s Live Local Act to build up to 275…

Craig Zinn Automotive pays $24M for Kendall dealership dev site

Craig Zinn Automotive Group paid $23.5 million for a development site in Kendall. The Hollywood-based car dealer acquired an 8.3-acre property at 15200 Southwest 136th Street, records and Vizzda show. The site is approved for a two-story auto retail building spanning nearly 76,000 square feet and 580 parking spaces, records and Vizzda show. The seller, an entity managed…

Whole Foods Applies For Permit To Build Store Next To Midtown Miami

Whole Foods is getting ready to begin building a large new supermarket near Midtown Miami. Miami Building Department records show that a construction permit application for the new store was filed on January 22. According to the filing, a total of 50,812 square feet will be built out at an estimated cost of $7 million. C.E. Gleeson Constructors of Troy, Michigan is listed as the contractor.

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

The chart illustrates the dynamic changes in the average selling price of industrial property in Miami-Dade since 2019 Q4, a date just prior to the onset of COVID, with each data point scaled relative to the baseline value of 1.00 at the end of 2019. Several notable trends and patterns emerge from the dataset. In the early stages of the dataset, from 2019 Q4 to 2020 Q3, there seems to be…

South Florida industrial asking rents rise in the fourth quarter

South Florida’s industrial market ended the fourth quarter of last year with a seismic shift in ownership of 1.4 million square feet in Miami-Dade and Broward counties. Boston-based Longpoint Partners acquired 25 industrial buildings in eight cities from Conshohocken, Pennsylvania-based Seagis. Longpoint’s $262 million portfolio purchase clocked in as the priciest industrial…

MG Developer completes assemblage for Metro Parc South apartments in Hialeah

MG Developer completed the assemblage for its planned Metro Parc South multifamily project in Hialeah. The firm paid $16.3 million in three deals for 1.8 acres along East 24th and 25th streets, near Ninth Avenue. In the biggest purchase, MG paid $10.5 million for the sites at 975 East 24th Street, as well as at 934 and 954 East 25th Street, according to records. An entity led by Michael…

Chicago Developer Sterling Bay to Partner On New Brickell Office Tower: ‘Best Office Market In The Country’

Chicago developer Sterling Bay has announced plans to partner on a new Brickell Avenue office tower. The company will team with Miami’s Key International on what is being called Miami’s “most iconic class-A office tower” at 848 Brickell Avenue. Sterling Bay’s Chief Investment Officer Chang Lee told Bloomberg that Brickell has become “the best office market in the country.”

Phased Vertical Construction Permit Issued For 100-Story Waldorf Astoria Miami

Miami’s Building Department has issued a phased vertical construction permit for the Waldorf Astoria Hotel and Residences supertall tower in downtown Miami. The phased vertical permit was approved and issued on January 10. John Moriarty is listed as the contractor. A phased foundation permit for the Waldorf Astoria tower was issued to John Moriarty in July, and construction…

224-Unit Wynwood Haus Gets TCO, Move-Ins Underway

Wynwood Haus is now officially open, with move-ins underway. The 20-story apartment tower, which broke ground in June 2021, received its Temporary Certificate of Occupancy from the City of Miami on January 12. The building includes studios, one- and two-bedroom floor plans, ranging from 394 to 945 square feet, as well as about 5,500 square feet of ground-floor retail and 222…

Demolition Of I-395 Ramps To Make Way For Signature Downtown Miami Bridge Now Underway

Demolition of downtown Miami’s old I-395 bridges are now underway as part of Miami’s Signature Bridge project. Demolition is expected to be complete by summer. Completion date for the overall project remains late 2027, with a budget of $840 million. The completion date has not been changed since last year. The original completion date for the entire project was Fall 2023.

Miami-Dade County Votes To Authorize More Funding For Northeast Corridor Commuter Rail Design Work

Miami-Dade commissioners voted last week to approve additional funding needed for design work for the Northeast Corridor commuter rail line. It is the final design work needed before a possible grant approval, according to Brightline. The new service will include up to five new stations between downtown Miami and Aventura, where it could then continue into Broward County…

Sale Arranged of Nine Big Lots Retail Locations in California & Florida – Including 1 in Miami – for $50.7M

CBRE has brokered the sales of nine individual Big Lots-occupied retail properties, including 2100 SW 27th Avenue in Miami, to two buyers. Alex Kozakov and Patrick Wade of CBRE represented the seller, a large institutional investor, in the transactions. Robhana Group acquired four properties, totaling 117,494 square feet, for $23.6 million. The assets are: Reliable Properties…

Global MSC Group plants its US base in Miami’s Overtown

On Overtown land where the City of Miami once planned 1,050 units of affordable and mid-income housing, a global cargo firm and cruise line will invest $100 million to develop a new US headquarters, uniting its 250 South Florida employees under one roof. Switzerland-based MSC Group announced the new headquarters last week after county commissioners earlier…

Why Retail Rents Have Tripled In Miami’s Glitziest Shopping District

No prime shopping district in the country has seen its star rise faster than Miami’s Design District. Asking rents for Design District retail have risen 200% since 2019, according to a JLL report. The run-up is by far the steepest increase of any North American prime retail corridor over that time period — second place was M Street in Washington, D.C.’s Georgetown neighborhood…

Hotels Rejoice; Miami Area Spring Visitor Numbers Taking Off

Miami-Dade’s domestic and international travel is ramping up. Conventions, sporting events, hotel demand, plus airline and cruise travel are key cogs in this year’s expected growth. The county enjoyed soaring visitor numbers to kick off the year, said Rolando Aedo, chief operating officer at the Greater Miami Convention & Visitors Bureau. “That first week of January, which runs…”

Hotel coming? Harry Gross’ G Holdings buys Edgewater dev site for $29M

New York hotel developer Harry Gross’ G Holdings bought a development site in Miami’s Edgewater neighborhood, The Real Deal has learned. Infinity Real Estate sold the 1.1-acre property at 2501 Biscayne Boulevard for $28.5 million, according to the seller’s news release. The firm had planned to develop the site with a 308-unit apartment project, and was on the cusp of submitting…

Miami may scale back its downtown billboards aims

A year after Miami expanded its outdoor advertising sites, the city commission may reverse the decision and return to just the three places allowed under a 2015 law. Today (1/25), the commission is to hear a resolution to repeal a policy that allows outdoor ad signs at ten government-owned sites. If approved, the measure would reinstate the 2015 law that allows for billboards up…

Evacuated Surfside Condos Slated To Be Replaced With 10-Story Luxury Project

A Miami developer is moving ahead on a luxury beachfront condo project in Surfside that was first proposed more than a year ago. Multiplan, led by Brazilian developer Joe Issac Peres, acquired the property at 9309 and 9317 Collins Ave. from an entity controlled by Vivian Dimond, founder of Bayshore Grove Capital and a broker at Brown Harris Stevens Miami.

Multiplan pays $64M for oceanfront Surfside dev site

Brazilian developer Jose Isaac Peres’ firm bought an oceanfront site in Surfside for $64 million, following a complicated condo buyout and termination. Multiplan Real Estate Asset Management acquired the site at 9309 and 9317 Collins Avenue from R Palace, an entity led by Vivian Dimond. Dimond, principal at Bayshore Grove Capital and broker at Brown Harris Stevens Miami, has…

Omni Building Gets New Tenant Key Point Academy For 62k Square Feet

The Omni building has a new tenant. Key Point Academy signed a lease for 62,349 square feet in the 1501 Omni Building. It was formerly a Jordan Marsh department store. Resorts World Omni is the landlord. “Resorts World Omni is delighted to champion Key Point Academy’s relocation, nurturing educational growth in South Florida,” said Robert DeSalvio, President of Genting Americas East.

Report: Miami Airport Could Be At Risk Of State Takeover

Miami International Airport’s highly publicized maintenance issues could mean Florida legislators may try to take control of the facility, according to the Herald. Commissioner Juan Carlos Bermudez warned at a meeting earlier this month that the county was in a “situation” with the state, and both MIA and PortMiami could be takeover targets, the report said. The county has been…

Updated Plans Filed For ‘Calle 8’ In Brickell, Gets Height Boost To 856 Feet Above Ground Across 65 Stories

Miami-Dade County planners have been presented with updated plans for Calle 8, a mixed-use development proposed for 190 Southwest 8th Street in Brickell, innovatively designed by BMA Architects and developed by Millennium Developments of Brickell LLC, an affiliate of Aston Martin Residences developer G&G Business Developments. The January 17th filing represents a significant…

Sterling Bay partnering with Key International on Brickell office tower

Key International scored Sterling Bay as a partner on its planned 51-story 848 Brickell office tower. The Ardid family’s Brickell-based Key International and Chicago-based Sterling Bay plan to co-develop the building with more than 750,000 square feet of offices, 7,500 square feet of ground-floor retail and a 1,000-plus-space garage at 848 Brickell Avenue in Miami, according to a Key…

Construction Commences on The Addison in Palmetto Bay at 18185 SW 98th Avenue in Palmetto Bay

Coastland Construction, an affiliate of Coastland Residential, has broken ground on The Addison in Palmetto Bay, a residential development in Miami-Dade County. Per the South Florida Business Journal, the rental community will offer 83 units spread across 13 two- and three-story buildings. Floorplans include three-bedroom and four-bedroom options.

Foreclosure Averted For Downtown Miami Building With $27M Sale

The 225K SF retail and office building at 1 NE First St., which Levy rebranded as the Time Century Jewelry Center and poured millions of dollars into as part of a major renovation, sold for $27.5M on Jan. 9, less than a week before it was slated for a foreclosure auction, the South Florida Business Journal reported. The buyer is a joint venture of Miami-based Elysee Investments…

Uncut gem: Avi Dishi, Elysee and Pan Am buy Yair Levy’s downtown Miami building

Yair Levy’s involvement in an attempted takeover of downtown Miami’s jewelry district is kaput. Now, Avi Dishi, Elysee Investments and Pan Am Equities are betting that Levy’s gamble of converting a 1920s, nine-story building into a bedazzling crown will pay off. An affiliate of Levy’s New York-based Time Century Holdings sold the mixed-use property at 1 Northeast 1st Street…

Pérez family’s Related lands $100M construction loan for apartment project in North Miami

Related Group, led by the Pérez family, landed a $100.4 million construction loan for a multifamily project on a portion of a closed university campus in North Miami. The debt comes amid a swell of construction financing in South Florida, as the tri-county region is bucking the national trend of a slowdown due to elevated interest rates. Coconut Grove-based Related plans…

HTG, Elite Equity Break Ground on $44M Affordable Seniors Housing Community in Leisure City

Housing Trust Group (HTG) has begun construction of Naranja Grand, an affordable housing community for seniors in Leisure City, approximately 25 miles southwest of Miami. The $44 million project is a collaborative effort between HTG and Miami Lakes, Fla.-based Elite Equity Development. The eight-story property will feature 120 units (91 one-bedroom, 29 two-bedroom)…

Constellation Group Breaks Ground On Class A+ Office And Retail Development At 4225 Ponce de Leon Blvd In Coral Gables

Constellation Group, a Miami-based commercial real estate investment and development firm, in partnership with The Boschetti Group, recently celebrated the groundbreaking of their Class A+ boutique office and retail project located at 4225 Ponce de Leon Boulevard in Coral Gables, often referred to as South Florida’s “City Beautiful.” This development is set to enhance the Merrick Park…

13th Floor’s Arnaud Karsenti Is Betting Big on Miami

The delicate art of dealmaking is one that several in the commercial real estate industry have mastered over the years. Some grew up in real estate families, absorbing knowledge and hunger for the craft through osmosis at dinner tables. Others came from far-flung lands with no familial connection to real estate, but with the art of the deal firmly embedded in their DNA nevertheless.

The 115th Street Apartments on the Horizon for 1231 NE 115th Street in Miami

New York-based El Special Situations LLC wants to rezone a .98-acre site from two-family district to mixed-use corridor district. The end goal? A mixed-use complex dubbed the 115th Street Apartments. The venture, measuring four stories above grade, would offer 60 apartments, measuring 891 to 1,182 square feet each. Floorplans vary from one-bedroom to two-bedroom…

The Manor Biscayne Slated for 1650 N.E. 124th in North Miami

Miami-based Related Group has secured a $100 million loan for the construction of the Manor Biscayne, a new housing development. Per the City of North Miami, the building will measure eight stories above grade and offer 382 residences, ranging from studios to three-bedroom units. Of the 173 two-bedroom units, 16 will be set aside as townhouses. In March 2022…

Developers Secure $21 Million In Financing For ‘Merrick Parc’, Slated For 3898 Shipping Avenue In Coral Gables

HKS Real Estate Advisors has successfully closed on a substantial $21 million loan for Merrick Parc, a groundbreaking multifamily development in Coral Gables. This significant financial achievement underscores HKS’s expertise in navigating complex real estate transactions and marks a major milestone in the progress of this ambitious project. Designed by the Coral Gables…

MSC Announces Large New Downtown Miami Headquarters Office

A large new headquarters office has just been announced for downtown Miami. MSC Group said it is planning a $100m investment, with a new headquarters in the Block 55 complex under construction in Overtown. The new office will have 130,000 square feet, with around 250 people working from there. Three company divisions, MSC Cargo, MSC Cruises, and newly launched Explora Journeys…

Related nearing buyout of oceanfront Sunny Isles condo building

The Related Group is nearing a deal to acquire the majority of units at an older oceanfront condo building in Sunny Isles Beach where it has a litigious history, The Real Deal has learned. Miami-based Related, led by condo king Jorge Pérez and his sons, Jon Paul and Nick Pérez, is in contract to purchase a majority of the units at Miami Beach Club at 19051 Collins Avenue, sources told…

Brickell Tower Submitted To Zoning Review, Height Increases To 856 Feet

Plans were filed yesterday with Miami-Dade for a Brickell tower with a unique appearance. The newly filed plans showed the tower is now planned to rise 52 stories, or 856 feet above ground and 870 feet above sea level. Plans filed prior to an October pre-application meeting showed a height of 57 stories, or 685 feet above ground and 699 feet above sea level, so the tower is now planned…

Receiver taking over Rishi Kapoor’s firms

A court-appointed receiver, Bernice Lee, is taking control of Rishi Kapoor’s former development firms. Her primary tasks will include investigating the disgraced developer’s alleged misappropriation of $93 million in investor funds, and determining from whom to claw back monies. Last week, Chief U.S. District Judge Cecilia Altonaga appointed Lee to manage Location Ventures…

Office rents up in Miami-Dade, down in Broward and Palm Beach counties in fourth quarter

Elevated interest rates and an overall economic slowdown caught up to South Florida’s office market. Landlords in Broward and Palm Beach counties pushed down average asking rents in the fourth quarter, albeit slightly. Miami-Dade County, however, remained on a high note. Its average asking rents ticked up, according to a recently released report from Colliers. Still, the drop in Broward…

“Office is a dirty word right now”: Buildings outside Brickell, downtown West Palm in trouble, economist says

In downtown West Palm Beach, “they are getting the highest rents in Florida. Some of the highest rents in the country are in Brickell. But that’s the best of [buildings] in the best of submarkets,” said Spencer Levy, a CBRE economist. “Everything that’s one ring outside of that, that’s where the trouble begins.” Even Class A buildings with maturing loans will have a hard time refinancing…

Coral Gables-based KDM launches $350M commercial real estate fund

KDM Financial is launching a $350 million fund to provide bridge loans for recently completed multifamily projects and to purchase distressed properties, The Real Deal has learned. It’s the Coral Gables-based lending firm’s first fund, KDM CEO Holly MacDonald-Korth told TRD. And it joins a swell of real estate funds launched or completed in recent months. “Previously, you would have…”

Lease roundup: Shoma, Related, Turnberry nab tenants

Three law firms leased in Coral Gables. Lott & Fischer renewed its 11,300-square-foot lease at 255 Aragon Avenue, according to the broker’s news release. Milberg, Coleman, Bryson, Phillips, Grossman took 6,900 square feet at 201 Sevilla Avenue; and Maderal, Byrne & Furst took 5,200 square feet at Ponce Circle Tower at 2800 Ponce de Leon Boulevard. An entity led by Raimundo…

ANF Group Celebrates Topping Out Of New Affordable Health & Living Community For Seniors In Pembroke Pines

ANF Group, Inc. recently topped off construction on Douglas Garden Residences in Broward County, a 6-story affordable housing community located at 705 Southwest 88th Avenue in Pembroke Pines. This development will serve as the area’s largest affordable living community for seniors. The project is a collaboration between Miami Jewish Health (MJH), a nonprofit organization…

The Calta Group Commemorates Foundation Pour For 8-Story Multifamily Apartment Project ‘REVV Hollywood’

The Calta Group celebrated the foundation pour for their project, Revv Hollywood, on Thursday, January 18—this event marks progress in constructing the 180-unit multifamily apartment building. Designed by Borges Architects + Associates based in Miami, the eight-story building will offer a mix of studios, live-work units, and one- and two-bedroom apartments. Notable attendees…

Hallandale Beach approves 13th Floor’s 398-unit multifamily project next to casino

Miami-based 13th Floor Investments won approval to develop Ashworth at Hallandale Beach, a low-rise development with 398 apartments, including workforce housing units. The planned project will be along North Federal Highway, next to the Big Easy Casino. “We hope to break ground in a few months,” Rey Melendi, chief operating officer and principal of 13th Floor, said at…

Rishi Kapoor investors win approval for enlarged condo project in Fort Lauderdale

Former Location Ventures investors Alex Kleyner and Diana Ulis won site plan approval for a condo development on a waterfront site in Fort Lauderdale. The Miami Beach couple acquired the 1.5-acre property for $30 million last year from the seller who was previously under contract with Rishi Kapoor, the embattled former CEO of Location Ventures. The Fort Lauderdale City Commission…

Investcorp pays $72M for industrial park in Deerfield Beach

Investcorp scooped up the Powerline Business Park industrial complex in Deerfield Beach for $72.3 million. The Bahrain-based firm bought 14 one-story buildings at 4100 North Powerline Road from the Los Angeles County Employees Retirement Association, according to records and real estate database Vizzda. The buyer took out a $76.6 million loan from MetLife Investment…

Kolter pays $74M for 491 homesites at Avenir in Palm Beach Gardens

Kolter Group bought 491 homesites at the Avenir community in Palm Beach Gardens for $73.6 million. The Delray Beach-based firm, through its Kolter Homes division, bought the 150 acres of land on the northwest corner of Avenir from Landstar Development Group, according to records and real estate database Vizzda. The deal breaks down to $149,825 per 6,500…

Video: AFIRE CEO Gunnar Branson Discusses International Real Estate Investor Survey; Fall 2023 Pulse Report

Gunnar Branson, CEO of AFIRE (Association for International Real Estate Investors), joins America’s Commercial Real Estate Show to discuss the results of their latest international investor survey, the AFIRE Fall 2023 International Investor Survey. The discussion discussed topics related to how international real estate investors assess US market challenges and opportunities. The Discussion…

Video: Janney Montgomery Scott Director or Research Chris Marinac Discusses if Banks Handle Upcoming Loan Maturities

The financial soundness of banks and accessible lending are important for the economy and for commercial real estate. The “if it bleeds it leads” headlines and clickbait like “doom loop” – referring to maturing loans – can lead to a lack of confidence. Chris Marinac joins show host Michael to share the real story with banks, and what to expect moving forward. The discussion covers…

CoStar: US Hotels Posted Record Revenues in 2023

The U.S. hotel sector posted its highest average daily rate (ADR) and revenue per available room (RevPAR) on record, according to 2023 data from CoStar. ADR ended the year at $155.62, a 4.3 percent increase compared to year-end 2022, and RevPAR settled at $97.97, a 4.9 percent hike from 2022. Additionally, the U.S. hotel industry enjoyed its highest occupancy levels since 2019.

Prologis Expects To Buy, Sell More Industrial Property This Year

Executives at the world’s largest industrial developer and landlord expect to ramp up property sales and acquisitions this year as they bet that almost all its warehouse properties will remain leased and rents will keep rising in the face of economic uncertainty. Prologis anticipates raising $800 million to $1.2 billion from selling properties in 2024 as interest rates and property valuations…

Ozempic Could Be The Next Big Curveball For Commercial Real Estate

What does the widespread consumption of a juggernaut drug have to do with commercial real estate? More than meets the eye, and the industry should start preparing for a potential upheaval in the not-too-distant future, a growing number of real estate professionals say. Diabetes drugs being prescribed for weight loss, like Ozempic and Mounjaro, are already altering consumer…

Tips for renovating your multifamily property

Multifamily renovations can help you attract and retain residents, command higher rents and reduce maintenance costs. Renovating an apartment building may even be viewed as a less risky investment than acquiring a new one, particularly during an economic downturn, according to Fannie Mae’s Economic and Strategic Research (ESR) Group. “For example, if fundamentals are…