Mar 11, 2020 - 0 Comments - Top Stories -

Miami Commercial Real Estate News March 11, 2020: COVID-19 CRE Effects; Worldcenter Land Deals Apace; More…

Complex Miami Riverside plan criticized but advances

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

As Miami Worldcenter rises, deals to sell its land continue

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

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

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

US hotels report plunging occupancy rate on coronavirus fears

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

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

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

Airbnb settles litigation with Miami development group alleging fraud

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

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

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

Coronavirus could expose US hotel owners with high debt

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

Industrial e-commerce plays by the numbers

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

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

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

$5 billion Miami International Airport upgrade ready for takeoff

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

Ex-manager quickly becomes architect for Palmetto Bay showcase work

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

Vast Plaza Coral Gables rising in segments

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

Moishe Mana land swap deal for Puerto Rican center marches ahead

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

Omni mixed-use project to have 42 micro dwellings

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

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

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

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

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

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

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

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

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

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

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

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

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

New Retailers Flowing To Lincoln Road After Price Correction

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

Modell’s Sporting Goods prepares to file for bankruptcy

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

Small Business Reorganization Act Levels the Chapter 11 Playing Field

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

Co-working operator NeueHouse expands to Miami

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

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

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

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

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

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

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

Chanel to open store in Miami Design District

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

Kushner lands $18M loan for Wynwood projects

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

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

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

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

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

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

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