Sep 01, 2021 - 0 Comments - Top Stories -

Miami Commercial Real Estate News September 1, 2021: MF Near Zoo Sells for $107M; Collapsed Condo Site Hits Market; Developments at Hialeah Park; More…

Milestone Group pays $107M for Emerald Palms apartments near Zoo Miami

The Milestone Group paid $107 million for the 505-unit Emerald Palms apartment complex near Zoo Miami in southwest Miami-Dade County. The multifamily investment firm bought the community at 12325 Southwest 151st Street from an affiliate of Denver-based Grand Peaks Properties, records show. Milestone Group took out a $70.2 million mortgage, which…

U.S. construction spending is on the rise — for now

The U.S. construction industry can thank residential projects for an increase in spending. Yet, the uptick may prove short-lived. U.S. construction spending rose 9 percent in July from the prior year to $1.57 trillion on a seasonally adjusted basis, according to the Commerce Department’s most recent report. The bulk came in residential construction spending…

RAM buys Lago Mar apartments in Hialeah for $18M

Lago Mar apartments in Hialeah Rental Asset Management bought the Lago Mar multifamily complex in Hialeah for $17.5 million. The Fort Lauderdale-based firm, which also manages apartment properties, bought the 112-unit complex at 1035-1055 West 71st Street. The seller is Lago Mar Apartments, led by Steven Levy and Amir Hayun, records show. Ram borrowed $10.7…

Miami Among Top 5 Markets for Multifamily Development

The pandemic made this Florida market even more attractive to companies looking to relocate from both New York City and California, and this has spurred robust demand for multifamily projects. Through July, 7,173 units came online in the metro, with more than 6,625 units delivered during the same period last year. The construction pipeline is second only to…

Land swap to create memorial on Surfside collapse site becomes a viable option

A proposed land swap with the town of Surfside to create a memorial on the Champlain Towers South site, where 98 people died, is emerging as a possibility. The option, discussed during a court conference on Wednesday, would involve swapping the oceanfront lot where the majority of the 12-story Champlain Towers South toppled, with a nearby, similarly sized…

Collapsed Surfside Condo Site Officially Hits The Market

Avison Young on Monday officially began marketing the site where the Champlain Towers South once stood in Surfside, Florida. The condominium collapsed June 24, killing 98, and a judge has ordered the site to be sold to compensate survivors and families. A live bidding process will ultimately be held in a Miami courtroom, the firm announced Monday.

Biden to change rules to boost affordable housing

With housing in short supply and affordable housing hard to find, the Biden administration aims to make technical changes to ease construction and financing for homes and rental properties. The potential moves could be announced by the White House as soon as Wednesday, according to the Wall Street Journal. One change: Fannie Mae and Freddie Mac would…

Miami Beach investor buys apartment complex in Overtown Opportunity Zone for $12M

A Miami Beach-based multifamily investor paid $11.7 million for a three-building apartment complex in Miami’s Overtown neighborhood, The Real Deal has learned. Paul J. Neary’s purchase of the 92-unit Citywalk Apartments at 415 and 423 Northwest Ninth Street breaks down to about $127,717 per unit. The property, built in 1950, is located in an Opportunity…

Beckham’s Inter Miami, Jeter’s Marlins Haven’t Delivered On Development Promises

South Florida sports teams led by soccer star David Beckham and baseball legend Derek Jeter have both failed to deliver on promises made to the public when they pushed to build stadiums, critics say. Beckham United, a partnership including Beckham and Jorge Mas, head of infrastructure firm MasTec, owns the Major League Soccer team Inter Miami. The group…

Greenstone pays $41M for North Beach apartments along Tatum Waterway

Greenstone Property Group paid $41 million for a multifamily complex in North Beach, completing its $119 million purchase of an apartment portfolio in South Florida, The Real Deal has learned. The New York-based investment firm acquired Ocean House NoBe, a 186-unit property at 7745 to 7790 Tatum Waterway, from Ytech. Ytech put Ocean House up for sale a…

Office building by Lincoln Road in Miami Beach trades for nearly $50M

A renovated office building by Lincoln Road in Miami Beach traded for $49.5 million. 1688 Property Owner LLC, an entity managed by Ophira Cukierman, bought the Class A office property at 1688 Meridian Avenue, which is across the street from the Macy’s off Lincoln Road. Cukierman is the founder and principal of Greenacres Management, a Scarsdale…

Melo Group pays $17M for assemblage north of downtown Miami

The Melo Group is continuing to invest in Greater Downtown Miami, likely with plans for another rental development. The Miami-based company, led by Jose Luis Ferreira de Melo, Martin Melo and Carlos Melo, paid $16.5 million for an assemblage near Melo’s Art Plaza and Square Station apartment towers in Miami’s Arts & Entertainment District, The Real…

Goldman: 750K households face eviction this year if rent relief isn’t sped up

With the federal ban on evictions nullified, economists are painting a grim picture for millions of Americans behind on rent. A new report from Goldman Sachs estimates that 750,000 rental households could face eviction this year if the slow rollout of rent relief persists in the absence of another moratorium. Analysts at the banking giant estimate that 2.5 to 3.5 million…

Three firms deal to build hotel at Miami International Airport

Three local firms shortlisted to develop a hotel at Miami International Airport are at individual negotiations with the county prior to the second phase of the request of proposals (RFP) that ultimately would award the project to only one firm.  “The end of the individual negotiations phase will lead right into issuance of Phase 2 of the RFP. The expected timeframe…

HighBrook Pays $70M for Florida Industrial Portfolio

HighBrook Investors has acquired a four-property industrial portfolio—three in Miami and one in Tampa, Fla.—totaling 740,400 square feet from Seaboard Warehouse Terminals. Americas Commercial Real Estate facilitated the sale and represented the buyer, while The Katsikos Group represented the seller. The portfolio traded for nearly $70.4 million…

Shrinking apartment inventory sends rents soaring

The multi-family apartment rental market is currently facing a shortage in Miami-Dade, with less than a month’s worth of inventory, according to local residential real estate experts.  There’s about a month of inventory in rentals, which are historical lows, according to Christina Pappas, vice president of the Keyes Co. Anything below six months of inventory is…

Underline linear park starts next phase, with traffic detours

Miami-Dade County’s signature linear park and urban trail project, the Underline, is on its way to deliver the second phase of its development, with the construction of a 2.14-mile segment connecting Southwest 13th Street to 19th Avenue. The project, which is now estimated to cost around $141.2 million, came to life with the public-private partnership of the…

Work to begin on luxury auto track Drivers Club Miami

A luxury auto track and commercial development planned near Miami Gardens is scheduled to begin construction in November after a delay in early phases pushed the completion date back almost two years.  Drivers Club Miami, a more than $100 million project being developed by 13 Pista LLC, would include a two-mile private driving track, club, hotel, retail…

County readies pact for Miami-Miami Beach monorail

Miami-Dade County is finishing pre-development and preparing an agreement for a monorail and rapid mass transit line that would cross the MacArthur Causeway, connecting Downtown Miami to Miami Beach.  The Department of Transportation and Public Works is working with MBM Partners LLC in an interim agreement to finish pre-development work…

Upland Park plans for nearly 2,000 units at county transit hub

A 44-acre development near and over the county’s Dolphin Station is set to begin construction of its first phase on county-owned land in February 2022, according to documents delivered by an affiliate of developer Terra Group to the county’s Internal Services Department. Plans include an amendment to Chapter 33 of the county’s code and a new zoning district.

Emirati wealth fund launches $1B U.S. industrial real estate venture

An Abu Dhabi-based sovereign wealth fund is betting big to capitalize on the hot industrial real estate market in the U.S. Mubadala Investment Co. has partnered with Dallas-based real estate investment firm Crow Holdings to develop $1 billion of Class A industrial properties across the country, according to Pensions & Investments. “Mubadala is seeking to invest…”

South Florida by the numbers: Record rents go through the roof

“South Florida by the numbers” is a web feature that catalogs the most notable, quirky and surprising real estate statistics. For local renters, a perfect storm of challenges has made South Florida living dramatically more expensive in 2021. A surge in demand (primarily driven by out-of-staters unburdened by their previous home’s state income taxes)…

Lease roundup: Blue Zones to run Legacy Hotel & Residences health and wellness hub at Miami Worldcenter & more

Blue Legacy Ventures I Legacy Hotel & Residences at Miami Worldcenter Blue Zones – which identified the healthiest places in the world with the aim to put the research toward improving community wellbeing – will run the 10-story medical and wellness center at the Legacy Hotel & Residences planned for Miami Worldcenter. The commercial lease marks the…

REEF Technology and Archer Aviation to run air taxis from parking garages

REEF Technology has unused flat rooftops. Archer Aviation has electric mini-helicopters. Together, they might have something. The two firms are partnering to run Archer’s proposed air taxis from REEF’s parking garages in Miami and Los Angeles. The partners aim to launch air taxi service from REEF garage rooftops by 2024, according to the Commercial Observer.

“Hardest project in my career to capitalize”: Diversity fund proves tough test for Peebles

More than two years after Don Peebles launched a $500 million fund to support minority and women developers, he has had little success so far garnering support from investors. The developer launched a fund in June 2019, aimed at projects ranging from $10 million to $70 million throughout the country. The fund intends to help established developers as well…

KKR plans $3B triple-net-lease portfolio

Global investment firm KKR is diving deeper into real estate, launching a platform designed for triple-net lease investments. The company announced the formation of Strategic Lease Partners this week. KKR has plans for a portfolio that will exceed $3 billion with diversified assets, according to Commercial Property Executive. The platform intends to…

Brazilian real estate giant JHSF buys oceanfront Miami Beach hotel, plans first Fasano

An affiliate of Brazilian developer JHSF bought the Como Metropolitan Miami Beach hotel, with plans to renovate and brand the property a Fasano, The Real Deal has learned. The purchase marks the developer’s first acquisition in South Florida. A Como Hotels and Resorts affiliate sold the oceanfront 74-key property at 2445 Collins Avenue for $70 million to…

Lender acquires Variety Hotel in Miami Beach following foreclosure suit

One of the first South Florida hotels to be on the receiving end of a foreclosure suit during the pandemic was seized by its lender. An affiliate of BridgeInvest obtained the title to the Variety Hotel in Miami Beach through an auction, more than a year after it filed to foreclose on the 68-key renovated hotel at 1700 Alton Road. The borrower is an entity led by…

Hotel Greystone to reopen in September amid partnership break-up

The Hotel Greystone at 1920 Collins Ave will reopen after a Miami-Dade judge reversed a previous ruling appointing a receiver to take over the Art Deco hotel. The Miami Beach property is set to start receiving guests on Sept. 16. Former college pals and ex-business partners Branden Muhl and James Vosotas are locked in a bitter legal battle in New York and…

Rolling the dice: Charter school, apartments planned for Hialeah Park racetrack and casino property

A public charter school and low-rise apartments are planned next to the Hialeah Park racetrack and casino, as the first phase of a long-term development of the 200-acre property. The Brunetti family, which owns Hialeah Park, is developing the projects in partnership with Miami Lakes-based developer Prestige Companies and Mater Academy, which…

The rent is finally due: Supreme Court ends moratorium

The Supreme Court dropped the hammer on nonpaying tenants Thursday, ruling President Joe Biden’s latest eviction ban unconstitutional. The decision frees landlords to move forward with eviction proceedings, except in the few places where local moratoriums remain in place. New York’s ban, which was severely weakened by the high court this month, is due to…

Miami Beach bans new apartment hotels in parts of South-of-Fifth — for now

The 5-to-0 vote last week will prevent property owners in a large chunk of residential South-of-Fifth from converting their buildings into apartment hotels. After more than a dozen residents described public sex acts, defecation and the need to carry a gun when going outside, the Miami Beach Planning Board backed a proposed ordinance to ban new…

Investors put waterfront Normandy Isle apartment complex on the market for $15M

Two years after picking up two apartment buildings in Miami Beach’s Normandy Isle for $7.3 milion, an investment group led by Jonathan Politano is looking to sell the Pierre on the Bay complex for double the price. The 70-unit waterfront complex, at 2050, 2070 and 2095 Bay Drive, is listed for $15 million. The pair of two-story buildings were built in 1951.

Landlords are their own worst enemy: report

Listen up, landlords: The culprit behind tenant churn has been unmasked, and it was you all along. A report by resident-experience firm Zego found that tenants were twice as likely to turn down a lease renewal because of a factor under their landlord’s control than for personal reasons. Citing a survey of 372,000 renters by the National Multifamily Housing Council…

Peebles loses $15M claim tied to allegations he was duped out of Miami Overtown project

Eight years ago, Don Peebles was poised to build a commercial project in Miami’s Overtown neighborhood. Now, as a different developer is building on the same site, Peebles has suffered another defeat in his legal battle over the property. Miami-Dade Circuit Judge Michael Hanzman this week struck Peebles’ affiliate Overtown Gateway Partners’ claim for a…

Video: NAREIT’s Midyear Outlook; Robust Recovery, Growth

Economist Calvin Schnure from the National Association of REITs, more commonly referred to as NAREIT, appears on America’s Commercial Real Estate Show with its Michael Bull to share an update on REITs (real estate investment trusts) and how the economy, trends in work from home, and the recovery will impact the interest rate environment, various…

Circle Capital Partners buys Davie apartments for $35M

Coral Gables-based Circle Capital Partners paid $34.7 million for the Vue on 67th apartment complex in Davie. Records show Circle Capital, through an affiliate, bought the community at 4199 Southwest 67th Avenue from an entity led by executives at Boca-Raton based Park Partners Residential. Circle Capital took out a… Rick Giles and Rosemurgy Properties…

JV buys Hollywood office campus for $50M

Two Broward County real estate investment firms teamed up with New York City-based TFK Real Estate Investment to acquire a three-building office campus in Hollywood for $50 million. The joint venture among TFK, Fort Lauderdale-based Fox Ridge Capital and Pompano Beach-based Jax Capital Investments paid about…

Tamarac city manager charged with conspiracy against developer Arnaud Karsenti

Tamarac City Manager Michael Cernech was arrested and charged with conspiracy to commit racketeering for his alleged role in attempting to extort $3.4 million from Miami-based development firm 13th Floor Investments. In a press release, Florida Attorney General Ashley Moody said a Florida Department of Law Enforcement investigation…

Amazon pays $85M for Sunrise fulfillment center site

Amazon paid $84.5 million for a 133-acre tract in Sunrise where it plans to build a fulfillment center. Jeff Bezos’ e-commerce giant, which has grown as consumers increasingly turn to online shopping, bought the land on the northwest corner of 44th Street and Hiatus Road, records show. The sellers are Section 18, managed by Curtis Deem; and the Trust Indenture of…

Deepak Khosa buys West Palm Beach apartments for $8M

Real estate investor Deepak Khosa paid $7.9 million for the Lake Arjaro Apartments complex in West Palm Beach, The Real Deal has learned. DME Trust, an affiliate of Port St. Lucie-based DME Group managed by Maria Garcia and George Hartley, sold the seven buildings at 4885 Lake Arjaro Drive. Khosa, owner of Palm Beach Gardens-based Atlantic Property…

Acquest Development buys Royal Palm Beach offices for $23M

Acquest Development paid $23 million for a pair of office buildings that are part of South University’s Royal Palm Beach campus. The New York-based real estate investor bought the properties at 9801 and 9901 Belvedere Road from affiliates of Rendina Real Estate Development, according to records. The purchase closed in two deals, with Acquest Development paying…

Home Depot buys former Sam’s Club site near Lake Worth Beach for $26M

Home Depot bought the former site of a Sam’s Club store near Lake Worth Beach for $26 million. Records show the home improvement and building materials retailer bought the building at 7233 Seacrest Boulevard from an affiliate of Alliance HP, which has offices in Fort Lauderdale and Bryn Mawr, Pennsylvania. The 135,268-square-foot building, constructed…