April 6, 2015 Miami Commercial Real Estate Related News

Brickell Avenue Office Buildings

Brickell Avenue Miami Office Buildings

Senate push to expand lobbyist registration to special districts like Broward Health

A bill to broaden water management district lobbyist registration rules to apply to hospital districts, expressway and port authorities, children’s services districts and other special taxing districts with budgets in excess o…

Railroading: The Tri-Rail station at the Miami Itermodal Center Opened

The Tri-Rail station at the Miami Intermodal Center opened yesterday to a slow trickle of customers, in preparation for the increased number of commuters expected today. After years of planning and construction, the MIC is now almost completely operational, with the only element left being Amtrak.

Development Update: Faena Launches Sales for Versailles Classic and Contemporary

Sales have launched at the Faena District for the two towers coming to the Versailles Hotel property, known as Versailles Classic and Versailles Contemporary. Classic, of course, is the restoration of the art deco Versailles Hotel, which is being converted into 22 units, with bathrooms that look…

Miami ranks fourth in top 10 healthiest cities

Miami was ranked as the fourth in a list of the 10 healthiest cities in the country, according to Livability.
The publication cited Miami’s low obesity rate — 12 percent below the national average — and the city’s plentiful exercise opportunities…

Run Out of Cuba, Americans Cling to Claims for Seized Property

With a change in diplomatic relations, what happens to 6,900 claims filed by Americans over property seized in Cuba?

Judge Sides With Miami Beach Condo Association on Engineer’s Lien

A Miami-Dade circuit judge rules an engineering firm suing a Miami Beach condo association can’t use a single lien to recover for work done under nine contracts, the association’s attorney said.

Views in 1939 of Collins Ave from the roof of the Normandy Plaza Hotel

Looking north on Collins Avenue from the roof of the Normandy Plaza Hotel near 70th Street. (Oct. 1939).  Looking south on Collins Avenue from the roof of the Normandy Plaza Hotel near 70th Street.

Anatomy Of A 90% LTV Office Deal

I think it’s fair to characterize the following transaction as a symbol of our current national office market boom. Gone, gone, gone are the days when lenders’ hands were tied and 30-40% minimum cash on the barrelhead was a necessity to get a deal done for an office building in a…

Sea level rise in Miami: Dr. Harold Wanless on podcast, “This Can’t Be Happening” … by gimleteye

Harold Wanless, a leading climatologist and geologist based at the University of Miami, returns to the “This Can’t Be Happening!” program after a year to revisit his claim that global warming and sea level rise are going to be much more dramatic than the consensus predictions of…

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April 6, 2015

Video of the Miami Skyline in the Not So Distant Future

Miami’s Downtown Development Authority recently released this cool video that represents what the skyline of the city will look like when the current set of commercial real estate construction projects have been completed.  The video helps to visualize the growth of Miami’s ever changing skyline by showing buildings that are both proposed to be built and those actually under construction. Buildings where construction is already underway are in blue, while planned towers are green and proposed towers are purple.

It is not perfect, but interesting nonetheless.

Future Skyline of Miami

Screenshot for Above Video Showing Growth of Miami’s Skyline for Future Development

 

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April 4, 2015

Miami Commercial Property News April 4, 2015

Commercial Property in Coconut Grove, FloridaRevenge of the megaprojects: Coral Gables’ Biggest Development Ever Gets First Approval

The Mediterranean Village, Coral Gables’ biggest development project ever, or since the development of Coral Gables itself (which was originally one big development, so there) has received preliminary approval from the city baring a number of revisions to the design. If it receives second approval…

Check out TRD’s new South Florida Market Report

Once a gritty strip pockmarked by motels where prostitutes and drug dealers plied their trade, the Miami Modern Biscayne Boulevard Historic District is now a burgeoning area with new hotels, restaurants, shops and office space. The Real Deal‘s new South Florida Market Report explores the…

Take A Peek At Downtown Miami’s Future Skyline

Miami’s Downtown Development Authority has released a video that provides a glimpse of what the skyline will look like when the current crop of construction projects have been completed.  The video helps to visualize the massing of Miami’s evolving skyline by showing buildings that are both proposed and under construction.

Sea level rise in Miami: Dr. Harold Wanless on podcast, “This Can’t Be Happening”

Harold Wanless, a leading climatologist and geologist based at the University of Miami, returns to the “This Can’t Be Happening!” program after a year to revisit his claim that global warming and sea level rise are going to be much more dramatic than the consensus predictions of th…

Development Update: Southgate Towers Phase 1, or the North…

Phase 1, or the North Tower, of the $40 million Southgate Towers renovation has completed. The 1960s-era 242 unit apartment building now includes a new facade, restaurant, yoga studio, and retail space. When completed, the South Tower will have another 253 units.

South Florida’s new condo pipeline moves closer to supply levels of last cycle

What was the total number of buildings and units built during the last boom cycle compared to this cycle for Miami-Dade, Broward and Palm Beach counties?  Unlike many of the nation’s largest metropolitan areas, the history of the biggest cities of the tri-county …

Carol City shopping center sells for $7M, developer to raze it

A shopping center in Carol City just traded hands for $7.1 million, and the buyer reportedly plans to redevelop it into a “Class-A” retail center.  The Carol City Shopping Center, on the corner of Northwest 27th Avenue and Miami Gardens…

Russian developers pay $10.5M for Denny’s site in Sunny Isles Beach

The Verzasca Group paid $10.5 million for the Denny’s site it’s planning to develop as a 19-story luxury tower in Sunny Isles Beach.  The planned development will have 76 units priced from below $1 million…

Wynwood property asks $17M, 5x more than in 2011

Amid a flurry of recent Wynwood property sales, a commercial building has been listed for $17 million and is being marketed as a mixed-used development site, The Real Deal has learned.  The 1.1-acre site at 1900 Northeast Miami Court contains a 50,317-square-foot, three-story…

$500M mixed-use Coral Gables development gets first approval

A Coral Gables development is one step closer to becoming a reality after a Thursday city commission meeting reportedly gave the project initial approval.  The Mediterranean Village, a $500 million mixed-use project to be developed by Agave Ponce, passed its first…

Miami investors get caught up in Cuba’s real-estate revolution, report says

Cuban-Americans from Miami are getting caught up in a real-estate revolution that is sweeping Cuba, The Wall Street Journal reported Friday.  Online services connecting foreign buyers and sellers such as Point2Cuba.com are helping some Cubans on the Communist island to accumulate wealth. This is all despite the criminal penalties…

Brickell construction project takes big step forward

A major haul for the 1010 Brickell Condo project as they take a big step in the construction of the soon to be luxury condominium building.  Crews working around the clock to fill 5600 cubic yards of cement into a very tight space, a key part of the overall project. Project Executive for Moss Construction Managers, Stephen Chang…

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April 4, 2015

Miami Commercial Real Estate News April 3, 2015

Keyes Commercial Realty Offices

Keyes Commercial

Phase one of Southgate Towers’ $40M renovation complete

Southgate Towers, a 1960s apartment building in Miami Beach, completed the first phase of its $40 million renovation, ADD Inc. announced recently.  The completed North Tower includes a new facade, 242 redesigned units, a lobby, fitness center with yoga…

Cruise lines seek more Miami berths

More cruise ships aim to come to PortMiami, a Miami-Dade County official revealed.  A number of companies are in talks with the county about bringing their ships to PortMiami, Deputy Mayor Jack Osterholt told Miami Today on Monday.

Torrid housing pace catches up to ’04

Despite four record-breaking years, residential prices are only now regaining their 2004 highs, according to Teresa King Kinney, CEO of the Miami Association of Realtors.  During an address at the Greater Miami Chamber of Commerce South Florida Real Estate Summit last week on Jungle Island, Ms. Kinney shared…

Sabadell Demos Strong CBD Office Demand

Demand for premium office space in Miami’s urban core is rising. The latest sign comes from Sabadell Financial Center…

Getting Inside the Head of Foreign Investors

Foreign investment may be changing because of the strengthening US dollar, but it’s still a strong force in Miami and beyond. What are the smaller investors buying…

North Beach on comeback trail

There’s more to Miami Beach than the epic pool parties of SoBe.  The bundle of barrier islands with a penchant for pastel colors and swaying palms has another neighborhood that doesn’t mind its slower pace and more family-oriented character.

Hialeah Rail Yards Taps Intermodal Trend

Square Mile Capital just invested big in the rail yard and intermodal center. Find out why….

Big Sugar Pays Tea Party Protesters To Stop Everglades Rescue

“Big Sugar supporters hiring actors to pretend to protest is pathetic,” said Progress Florida Executive Director Mark Ferrulo. “Someone should ask who is paying for artificial sweetener to make polluting the Everglades and our drinking water easier to swallow.” Please se…

L’Atelier Residences Launches $33 Million Penthouse

The days of its drama-attracting affiliation with the property across the street formerly known as Canyon Ranch are long gone. The condo tower now being planned for the ‘Golden Sands’ site, called L’Atelier, will have a $33 million penthouse with 8,000 square feet of living space over two levels, …

Terra/Related’s Park Grove Groundbreaking Happening Soon

Ground is being prepped for Park Grove, the joint luxury residential project by Terra Group and the Related Group that was designed by Rem Koolhaas/OMA, with groundbreaking happening soon. The rear portion of the project, including a new building for the Coconut Grove Bank, will be constructed fir…

Hialeah Rail Yards Taps Intermodal Trend

The 228-acre rail yard and intermodal center next to MIA will provide an important link to the Miami seaport to support future shipping growth.

You Won’t Believe How Much This Buyer Spent on Kendall Apartments

Modera Dadeland, two midrise buildings with 350 units, goes for $104.5 million. That’s close to $300,000 a unit…

Religious retirement community approved for construction in Broward

The Casa Sant’Angelo, a Catholic retirement community, received state approval to begin construction in Miramar.

Clocks ticks on Mediterranean Village plan

Developers of the proposed Mediterranean Village on the former Old Spanish Village site asked the Coral Gables Commission not to be afraid of sharing city founder George Merrick’s vision of growth with them and cautioned that time can run out as it did for the developer of City Beautiful.

What a difference in optimism three years have produced

Economic optimism that was squelched by the recession has come roaring back among Miami Today readers, and with good reason: their financial positions have improved markedly.  The average reader’s mean household income has jumped from $219,000 to more than $259,000 since 2012, data from Miami Today’…

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April 3, 2015

Flashback Friday: 2009 ~ Prediction of Miami Commercial Property Implosion

Downtown Miami / Brickell Vacancy Rate 10 years Prior

Vacancy Rates for Downtown Miami and Brickell Avenue

 

McClatchy 2009: Disaster brewing in Miami’s commercial real estate market

The article begins as follows:

It’s a great time to be a commercial tenant in downtown Miami or the Brickell Avenue financial district, thanks to a glut of new office space that will begin flooding the market next year.  But for everyone else in the downtown commercial real estate game — lenders, brokers, bankers, construction workers — there’s a disaster brewing, the likes of which hasn’t been seen since the 1980s…

Considering how hot Miami’s commercial real estate market is today, this seems like a great example of the old wall street adage buy the rumor, sell the news, or in this case, buy the news, given the “news” of an impending implosion.  However, as the chart above shows, vacancy rates did in fact skyrocket, and even recently, for office space, remain higher than they had been in the years prior to this article.

Chart courtesy of Costar.

 

 

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April 3, 2015

Commercial Property Profile: Southeast Financial Center

The Southeast Financial Center in downtown Miami is a 55-story, 1.3 million square foot office complex. It has a separate extension that is home to the celebrated Downtown Athletic Club and contains a wonderful outdoor court between the two building. The principle tower of the Southeast Financial Center is a 55 story Office Tower while the other separate building is a 15 story Annex Building all built on a 2.41 acre site in the lucrative Downtown Miami business district. The main tower boasts 1,158,102 square feet of prime office space while the adjacent annex building has a health club, banking hall, retail shops and 1, 121 parking spaces as well as the building’s Central Plant.

An elevated walkway connects the two towers. A remarkable feature of this development is the 30,000 square foot plaza that is beautifully landscaped with a variety of native plants including the famed royal palm trees. An appended 150′ steel structure creates a beautiful artistic and unique architectural connection between the two towers that make up the Southeast Financial Center.

The tower is easily recognizable thanks to its “saw-tooth” design on the north-east corner. This highlight gives up to 16 corner offices on each floor and an exceedingly productive floor plan averaging 22,000 s.f. The V-notch right at the center of the tower’s west face is highlighted at night and runs the entire length of the tower. The “Qbert style” staggered rooftop is usually lit at night to highlight a downward facing arrow that can be seen from several miles offshore and exactly southeast of the building.

The Southeast Financial Center was developed by the Southeast Bank, Corporate Property Investors and Gerald D. Hines Interests for $180 million. Its unique design was to serve as the headquarters for Southeast Bank which took up half of the building’s space before the bank was liquidated in 1991.

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April 3, 2015

April 22, 2015 Miami Commercial Real Estate News

Downtown Miami Commercial Real Estate Properites

Downtown Miami Commercial Buildings

Arrested Development: Blaming the cancelation on delays…

Blaming the cancellation on delays caused by a legal dispute with a neighboring landowner in which they eventually won, Ion East Edgewater is no longer being built as a condo tower. Its developers, Sakor Development, are instead planning a mixed-use…

Renovations: The Bass Museum Will Lose its Monumental Ramp in Expansion

The Bass Museum of Art has released plans to expand by Arata Isozaki and David Gauld, the same team that designed the museum’s last expansion between 1998 and 2002. The design fills in two of the museum’s exterior spaces—a courtyard often used for parties, and a dramatic patio area under…

Love Boat: Already the busiest cruise ship…

Already the busiest cruise ship port in the world, PortMiami is getting busier and busier with perhaps “three or four” new cruise ships in talks to call it home. Two more terminals may be coming too.

Dig This: The Panama Canal Is About To Get Busy

The 48-mile-long waterway that cuts across “the backbone of the Western Hemisphere” is going through the final year of a $5 billion dollar massive expansion that has also energized ports from Miami to Boston.

Atlantic Pacific Companies to expand SoFla management portfolio

Atlantic | Pacific Companies is expanding its portfolio in South Florida by 2,000 residential units, the company announced on Wednesday.  Atlantic | Pacific’s property leasing and condo association management division added properties in Brickell, the Miami Design District…

Update: Baywood Hotels paid $10.5M for closed Keys resort

The Florida Keys resort that recently traded hands between real estate heavyweight Peebles Corporation and Baywood Hotels was purchased for $10.5 million, according to Monroe County property records.  Peebles had purchased the 80-room hotel in…

Bonjour, Miami: French sister restaurant of Zuma and Coya to open next

Arjun Waney, the London-based co-owner of uber-popular Zuma — and the recently opened Coya — is planning to bring another of his international dining hotspots to the Brickell Corridor, The Real Deal has learned.  La Petite…

Terreno Realty, Fairchild Partners negotiate 300K sf lease

A custom retail fixture manufacturer and distributor signed a lease for more than 300,000 square feet in Hialeah, according to a press release.  Banah International Group was the building’s former tenant. The sugar company declared…

Japanese restaurant to make US debut in Miami Beach

Soho Bay, a Japanese restaurant chain that originated in Brazil, is making Miami Beach the home of its first location in the U.S.  Located at 520 West Avenue, the 12,000-square-foot restaurant will have indoor and outdoor seating for…

Fort Lauderdale-based Stiles announces change in leadership

Real estate development firm Stiles Corp. is changing its leadership succession plan, the company announced on Wednesday.  The roles of chairman and CEO will be separated over the next two years, according to a press release. Ken Stiles will replace his father, current…

Ion East Edgewater developer ditches condo plan, switches to mixed-use

The developer of the Ion East Edgewater has scuttled plans to develop the 36-story condo tower at 2701 Biscayne Boulevard, The Real Deal has confirmed.  In a company statement provided to TRD, Sakor Development said it is reevaluating, due to delays cause…

Miami’s CBC Hires Heavy Hitter

Find out who Coldwell Banker Commercial (CBC) Alliance just hired as an executive managing director and what he sees in Miami’s office market.

New Green Buildings in Miami

Rising sea levels around South Florida are probably the most important issue facing our megalopolis right now. To counter the deluge— literally and metaphorically speaking—and to respond to consumers’ demand for environmentally sensitive enterprises, developers are employing smart, new construction…

How Miami Beach is Fighting Climate Change

“Miami ranks number one in terms of vulnerability to sea-level rise associated with climate change,” says Ben Kirtman, professor of atmospheric sciences at University of Miami’s Rosenstiel School of Marine and Atmospheric Science. The US National Climate Assessment, put together by government agencies such as NASA…

Federal lawsuit calls All Aboard Florida funding “plainly unlawful”

Indian River County filed a federal lawsuit Tuesday challenging the approval of $1.75 billion in tax exempt bonds for All Aboard Florida, calling the award “plainly unlawful.”

Whats in a name?: In 1897 a flyer is…

In 1897 a flyer is sent to farmers in Sweden promoting a development in South Florida known as ‘Halland’, which was being sold by a man named Luther Halland. Some farmers do arrive establishing a Swedish colony, and that’s how Hallandale Beach was born.

 

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April 2, 2015

League Rocked, Cavs Fans Stunned as Lebron to Return to Miami

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April 1, 2015

April 1, 2015 Miami Commercial Real Estate News

Keyes Commercial Real Estate

Keyes Commercial Real Estate

1st Quarter 2014 Industrial Market Report for Miami-Dade County CRE

Total Industrial inventory in the Miami-Dade County market area amounted to 229,374,658 square feet in 8,790 buildings as of the end of the second quarter 2014. The Flex sector consisted of 16,908,307 square feet in 600 projects. The Warehouse sector consisted of…

Sixth new condo tower of this cycle completed in Greater Downtown Miami

The sixth new condo tower of this current South Florida real estate cycle that began in 2011 has been completed in Greater Downtown Miami.  Construction of the new 35-story Nine at Mary Brickell Village (area demographics & economic data, commercial property listings) with…

Raising Money through Real Estate Syndications – Recent Law Changes to the Rule 506 Exemption

The Jumpstart Our Business Startups Act, known as the Jobs Act, has changed the way to raise money from groups of investors to purchase commercial and investment real estate properties.  Many forget that raising money from multiple investors is often viewed as…

Stuck in Traffic: Miami-Dade County Public Transit is…

Miami-Dade County Public Transit is becoming, in the eyes of many, the most obvious solution to Miami’s really bad traffic, but—surprise of the century!—existing transit fares come nowhere close to paying for operation, the half cent sales tax increase that was supposed to save it all…

Investing in NNN Triple Net Leased Commercial Real Estate Properties

Not all real estate investors are created equal. A large number of them simply are looking to place their hard-earned money into a safe haven to avoid the often unpredictable nature of the…

Commercial Real Estate – Terms & Definitions
Commercial Real Estate – Terms & Definitions:  Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.  Available Space: The total amount of space that is…

Partition of Florida Real Estate

Joint property ownership is a partnership at its core. Partnerships are great tools to save money, promote economies of scale, and better utilize resources. However, in situations where more than one party owns property, decision-making may become cumbersome, partners may…

Office Space, Hotel Rooms, And Residential Units Planned At Miami International Centre

Across from the Miami Intermodal Center, investors are eyeing the former Bertram Yacht Facility as the potential site for a megaproject.  Alecta, a Swedish pension fund, bought the 22-acre property in 2011 for $17 million. Soon after, Bertram moved out.

Understanding Florida’s Commercial Real Estate Sales Commission Lien Act

Pursuant to Florida’s Commercial Real Estate Sales Commission Lien Act, a commercial broker has a lien upon the owner’s net proceeds from the sale of commercial real estate for any commission earned by the broker under a written broker’s agreement.

In suburban Doral, developers bank on an urban future

Life in Doral is getting a major update: Prominent local developers are building mixed-use projects they say will help turn this industrial, traffic-clogged suburb in west Miami-Dade into a walkable, shop-able city.

Are You Entitled to Receive a Real Estate Commission?

As the amount of South Florida real estate transactions continue to reach new records, real estate brokers and agents find themselves in more and more commission disagreements.  As such, we thought it would be a good idea to post a new article on the doctrine of proc…

Thor Equities Pays $16M To Complete Miami Design District Assemblage

The New York-based developer acquired a key piece for its upscale retail project in the Miami Design District in a long-delayed deal.

Miami’s Green Spaces Are Prime Assets for Public-Private Partnerships

On March 29, 2015, the Transportation and Infrastructure Committee of the Greater Miami Chamber of Commerce, of which Bilzin Sumberg is a member, hosted an event that discussed infrastructure plans that would increase Miami’s walkability and bikeability. In addition to increasing modes of…

Miami Ranks High in Real Estate’s ‘New Dawn’

Miami was just named among the 12 cities investing and occupying world city real estate by Savills World Research. At a glance, the report calls out Miami for tourism, construction, and Latin American regional headquarters.

Verzasca Group to launch tower on Denny’s site in Sunny Isles Beach

The Verzasca Group plans a 19-story luxury tower at the site of a Denny’s on Collins Avenue in Sunny Isles Beach, on the west side of the street that has seen little in new residential projects, The Real Deal has learn…

Former Sunglass Hut exec sells Brickell home to Miami developer

A former Sunglass Hut owner sold his Brickell mansion — after it spent more than 1,200 days on the market — to Terra Group’s David Martin and his wife Christina.  Dean and Jania Ziff sold the 2-acre estate at 2999 Brickell Avenue for $14 million…

Atlanta firm picks up West Palm Beach community for $112M

An Altanta-based real estate company just purchased the Resort at Laguna Lakes — an 812-unit multifamily community in West Palm Beach — for a total of $112 million.  The development is split into two phases: Arium Laguna Lakes, which was built in…

Photos of 10 brilliant ideas for the skyscraper of tomorrow

A design by Shi Yuqing, Hu Yifei, Zhang Juntong, Sheng Zifeng, He Yanan, China (Credit: eVolo Magazine)
From the New York website: The sky is the limit. Literally.  The winners of the 2015…

Office building near Fort Lauderdale airport sells at $4M loss

An office building across the street from the Fort Lauderdale Executive Airport recently sold for $10.9 million — $4 million less than its last sale price.  The six-story Cypress Executive Center, at 1901 Northwest 62nd Street, was built in…

Privé developers receive building permit from city of Aventura

Privé at Island Estates, a 160-unit luxury development, can begin construction now that developers received their building permit from the city of Aventura.  The twin, 16-story tower development is expected to be completed during the second quarter of 2017….

Miami among top cities with highest gains in home prices: S&P Case-Shiller

Miami reported one of the highest gains in home prices, according to S&P Case-Schiller’s Home Prices Indices for January 2015.  The city reported the second highest year-over-year gains of 8.3 percent over the last 12 months. Denver led the country with 8.4 percent…

Plantation offices fetch $52M in sale

A Plantation office complex recently sold for $52 million to a New York-based trust.  The two-building complex, at 1600 and 1601 Southwest 80th Street, was reportedly sold to the Gramercy Property Trust in New York, which specializes in buying and leasing out…

What Tere Blanca Sees in Miami’s Office Market

“All of this spells opportunity for businesses looking to enter the Miami market and expand here.”

Kelley/Uustal to Get New $10M High-Tech Fort Lauderdale Law Office

The Fort Lauderdale plaintiffs firm will move into a $10 million downtown office with a state-of-the-art mock courtroom.

Brickell Condo Project Bucs Norm of Putting 50% Down

A condo in Brickell City Centre can be bought for 20 percent down at the purchase contract, with an additional 15 percent due 120 days after signing.

Students Criticize Arquitectonica’s Design For New School Of Architecture Building: ‘Looks Like A Bunker’

Arquitectonica’s plan for a new 20,000-square-foot design studio building at the University of Miami’s School of Architecture is drawing criticism from students there.  An article in The Miami Hurricane quotes several students who are dissatisfied with Arquitectonica’s design.

Florida Crystals lands $38M loan to build Kendall apartments

The residential development arm of sugar producer Florida Crystals secured a $37.75 million construction loan for an apartment project in western Kendall.

Palm Beach Gardens condo project to break ground

The Azure condominium project along the Intracoastal Waterway in Palm Beach Gardens has gotten the green light to break ground.

Office Markets in Tech-Heavy Cities Lead 2015 Pack

The U.S. office market continued its slow-and-steady recovery in the first quarter, with technology-heavy markets leading an overall modest growth of rents and occupancies.  U.S. employers added 6.4 million square feet of space in the first quarter, causing the vacancy rate to tick down to 16.6% from 16.7%…

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April 1, 2015

Miami Commercial Real Estate News March 31, 2015

Downtown Miami Skyline Showing Many Commercial Office and Multi-Family BuildingsWhy Miami’s CBD Office Market Delivers

Steady and growing positive net absorption has fueled a rapid recovery of the office market in the last three years. JLL’s Donald Cartwright tells GlobeSt.com’s Jennifer LeClaire what’s attracting tenants…

An Idea To Mitigate Rising Seas In Miami Beach: Lift The Entire City

One way Miami Beach might prepare for the threat of rising sea levels is to elevate the whole city.  “The only tried and true solution to combating rising sea levels is to raise with it,” says Eric Carpenter, public works director for the City of Miami Beach.

Coral Gables: Proposed Development Mediterranean Village and the Mayoral Election

Voters Beware! … in Coral Gables where a 1.2 million square foot “Mediterranean Village” is being proposed that makes the Village of Merrick Park look like a single-family residence. The proposers are the well financed, or better said, the self-financed Agave LLC, an affiliate of…

On the seaman’s market: Boca Chica Key’s Old Submarine Pits Want $21.2 Million

122 acres of the Florida Keys that was a Naval Air Station during the Cuban Missile Crisis, with a vast set of submarine pits, has hit the market for $21.2 million. On Boca Chica Key, the property has more than its fair share of old war stories, “and has a very colorful and distinct history”, no…

Sleeping Around: ‘Resort Fees’ Are an Insufferable Epidemic for Miami Hotels

It’s not exactly news that typical hotel room guest rates in Miami and Miami Beach are sky high. So high, in fact, that the average rate is higher than anywhere else in the U.S., at $249/night, according to a report released by Bloomberg last year. Then there’s the resort fee.  Here’s the real…

Where You Get Your Retail Traffic Numbers Can Be More Important Than What They Say

Keeping an eye on national retail trends is made much easier with a subscription to the excellent RetailCustomerExperience.com, who graces us this morning with an eye-opening piece on the dangers of misinformation lurking in various retail traffic measurement…

Miami Ranks High in Real Estate’s ‘New Dawn’

Savills Research just named Miami among 12 cities that are manifesting the American Dream in the new dawn of real estate…

Developer could redevelop Biscayne Mobile Home Park after $14M purchase

Biscayne Park Acquisition Group, an affiliate of New York-based Madison Realty Capital, sold the 13.86-acre property for $14.25 million to Wealthy Delight, a Coral Gables-based company managed by Leo Wu. The deal covers the mobile home park at 8360 and 8500 Biscayne Blvd., and 8650 N.W. 87th Street, plus,,,

Mayor requests funds to buy back pine rocklands

Mayor of Miami-Dade county Carlos Giménez and Commissioner Dennis Moss asked Gov. Rick Scott for Amendment 1 funding to buy back property containing an endangered pine rockland habitat from RAM Realty Services (RAM). This move would put the land under county control.

Chetrit Preparing Miami River Project For Review By UDRB

Joseph and Meyer Chetrit’s plan to build the Miami River project continues to move through the approval process, and could be ready for review by Miami’s UDRB as soon as next month, according to a city source.

All Aboard Florida closer to getting $1.75 billion in tax exempt bonds

All Aboard Florida is closer to getting the money it needs to finish its Miami-to-Orlando passenger rail after Friday appointments made to a board charged with deciding whether it will receive $1.75 billion in tax exempt bonds.

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March 31, 2015

Suburburbanization: Coining a Term Relevant to Miami Commercial Property

In the spirit of classic and irreplaceable words like “educatamify,” “trainify,” and “splendific,” today I’d like to publicly claim a term I’ve been using, “suburburbinization,” defined as the trend toward the development of urban mini hubs in suburbs surrounding urban centers.  In the Miami area, we have a few of these.  I’m going to use one, Dadeland, as an example.

The charts below tell the story in office space.  Following years, in truth decades, OK eternity, of modest construction of office space, a surge took place in the middle of the first decade of the new millennium.  This coincides with a considerable increase in PSF sales prices, as can be seen in the second chart, as the area becomes it one mini urban hub, i.e. as it “suburburbanifies.”

Downtown Dadeland Area Office Space Deliveries

Downtown Dadeland Area (1 mile radius) Office Space Deliveries

Downtown Dadeland Area Office Space PSF Sales Prices

Downtown Dadeland Area (1 mi. radius) Office Space PSF Sales Prices

A similar story exists with multi-family properties, likewise illustrated with charts of deliveres and prices, in this case per unit prices.  Deliveries skyrocket as high-rise developments come on line.  Sales prices likewise increase dramatically.  To be sure, some of this rise, much perhaps, is due to ever nicer properties being developed.  However, it is the case that the area has become more desirable as it has developed its own “suburburban” flair.

 

Downtown Dadeland Area (1 mi. radius) Multi-Family Deliveries

Downtown Dadeland Area (1 mi. radius) Multi-Family Deliveries

 

Downtown Dadeland Area (1 mi. radius) Multi-Family Sales Price Per Unit

Downtown Dadeland Area (1 mi. radius) Multi-Family Sales Price Per Unit

To find these new “suburburban” areas, just look at the horizon.  Wherever you see a new small skyline, you are likely viewing a developing “suburburban” community.

Charts couresty of Costar.

 

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March 30, 2015

Larger than Life extravaganza planned in Miami is bigger and better (?) than Mall of America

Mall of America is a whopping more than four million and two hundred thousand square feet with over five hundred and twenty stores, and is considered to be the largest destination for shopping in the history of the world. This mall is owned by Alberta- Triple five group, which just announced last week that they are starting a new project in the Miami area that will be even bigger than their Mall of America in every way.


Above: Satellite View of Proposed Location for American Dream Miami Mega Mall and Theme Park / Entertainment Complex

The project is prjected to cost more than four billion dollars total.  Below are some of the features to be included:A water park

  • Ski slope
  • Submarine ride
  • Sea lion show
  • Bowling
  • Miniature golf
  • Tons of different restaurants
  • Cinema
  • Ice rink
  • Performing arts theater
  • Ferris wheel
  • Roller coaster ride
  • Numerous hotels
  • Various condominiums

American Dream Miami, as it is being called, is proposed to be built in an area of Miami-Dade county that is not incorporated and is towards the northwestern corner of the country, near Miami Lakes. These plans may seem like something so extremely vast as to be unlikely, but considering that Triple five is the developer, don’t count it out.

A few (other) examples of plans for retail development in Miami include:

  • By the end of the year of 2015, what is known as Midtown Dural will have an added three hundred thousand square feet to it thanks to Optimus International Developers
  • By the end of the year of 2016, in what is known as Brickell City Centre, also known as the main financial district in Miami, will have an added five hundred and sixty five thousand square feet of space for retail to it thanks to Swire Properties; a developer from Hong Kong as well as Saks Fifth Avenue
  • By the end of the year of 2017, the heart of downtown Miami also known as the Mall at Miami World Center, will have an added seven hundred and sixty five thousand square feet to it that is made up of space for retail, entertainment and restaurants.

Speculation as to whether or not Miami will be able to fully support all of this new retail space is on the minds of many.  Clearly it will have an affect on existing retail centers, which may find it difficult to compete against such an all out assault on the sector.  In any case, tons of jobs will be created, and the stops and businesses in other centers are always free to move into the new center, if so desired.

Triple Five is really going all in on this.  Some of the moves that they are making may be risky, but they are betting that having everything anyone could really want in one area will pay off. Hence they are pursuing this concept, with a places where you can go shopping, eat, sleep and stay as well as places where you can go to be entertained such as a wide variety of activities like movies, parks, rides, arcade games, miniature golf and more. Time will tell.

A development like this does not happen overnight, and may not happen at all, of course.  Consider that Triple Five had similar plans with a mall in New Jersey that was supposed to be done back in the year of 2010.  It is still waiting for necessary approvals.

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March 29, 2015

7 Simple Steps to Owning Your Own Commercial Real Estate Property

Strip Centers are One Type of Commercial Real Estate Property1. Ask Yourself these important up front questions

Knowing yourself, your situation and what you are looking for is the first step to owning your own commercial real estate property. Below are some questions that you should ask yourself:

• What type of commercial real estate property are you looking for?
• What is your intended use for the commercial property, is it house a business, build equity, rent it out or something entirely different?
• What locations do you consider prime for your intended use of the commercial property?
• Are you willing to buy or lease a commercial property?
• Are you willing to get a partner in owning or leasing the property?
• Are you able to finance the property or make an initial down payment?
• To what extent are you willing to take risks?
• What is your time commitment to the property?
• What knowledge and skills do you have?
• Do you need to hire experts with specific a knowledge-base?
• Are you willing to undertake the responsibilities of a landlord?
• Do you need a property manager?
• Are you ready and willing to make such as huge financial investment for a commercial real estate property?

2. Learn Vocabulary Associated with Commercial Real Estate – and appreciate the learning curve

There are plenty of professional terms associated with commercial real estate that you may be unfamiliar with. It is advisable that you get familiar with the real estate industry. Te get you help started, here is a list of common terms that you are likely to encounter:

LTV (Loan to Value) – This is the ratio of how much money you are borrowing verses the total value of what you want to buy.
Debt Service Coverage (DSC) – This is the operating income over the total debt amount. It basically shows how much debt you can cover with each year of income.
Capitalization Rate – This is the property’s income over the value of the commercial property.
Cash on Cash – This is the total annual before-tax cash flow to the total amount of cash invested. The amount invested can sometimes be just the initial down payment.
Vacancy Rate – This is the percentage of the property that is vacant within the given property area.
Usable Verses Rentable Square Feet – Refer to the article on Usable Vs. Rentable Square Feet
Ad Valorem – This is the tax amount that is based on the property value.

3. Do Your Homework on a Number of Properties and Visit Each One of Them

You should consider a number of properties and ensure that you visit each one of them before settling on one. Find out the pros and cons for each of the properties and consider important factors about each of them such as price, condition, location, and allowed uses for each of the properties. We cannot stress this enough, that properties located near hospitals, universities and downtown areas will sell more quickly and have a higher value.

You should research and settle for a property that best fits your needs. Your requirements are unique to you and the property you settle for should fit your intended use, price, location and investment that is required.

The key calculation for a good property should be in the black after deducting the principal amount, interest, tax and insurance (PITI) from the annual rental income.

Here is a list of a number of questions that you should consider for any property that you are interested in:

• What is the property’s current use?
• What can or can’t the property be used for?
• What rental income does the property generate on an annual basis?
• What kind of property taxes does it incur?
• Are there any repairs and replacements pending or will be needed soon on the property?
• Why is the property being sold by its current owner?
• What is the property’s current environment and are there any major changes expected soon?
4. Seek Expert Help
The process of buying commercial property is often a complex process and expert opinion can help in some important steps and make the entire process much easier. The experts to hire and their expertise will largely depend on the type of property that you are going to buy.

You might need to get a commercial real estate lawyer, an accountant, a commercial realtor, as well as a mortgage broker. For complicated properties, you might require the services of a tax expert, lawyers, accountants, appraisers, environmental specialists, engineers and notaries.

There are a number of things that you can research and do on your own , but it does not hurt to get an expert and for the amount of investment you are about to make, it is always advisable to do so.

5. Determine Your Financing

Like most people, you will most likely require some sort of financing for your property. Whether you are seeking help from banks, home mortgage companies or credit unions, you will need to determine what kind of credit you have, what you can get and the interest it accrues.

In a case where these traditional methods of financing do not apply to you, there are always alternative methods of financing or purchasing a property. You should be familiar with terms such as subject-to, seller carry-back, lease options and second mortgages.

6. Upon the Approval of your Lawyer, Make an Offer.

Never sign any documents without the consent of your lawyer. Your lawyer will guide you through signing your letter of intent, and any contracts involved in the entire process. The letter of intent generally highlights the terms of the transactions and it is not normally a binding agreement. Your lawyer should explain in detail the particulars of all written agreements so that you are fully aware of you rights and obligations during, before and after the tenure of the contract.

7. Escrow and Due Diligence

This is where an actual transaction takes place and things get a bit more real. You might require to order an American Land Title Association Order which is used as part of the due diligence. This survey provides vital property information regarding building locations, boundary lines, improvements and easement identifications (These are the access rights by utility and service companies such as telephone, gas, water, railway, etc).

Some transaction use the services of an escrow officer who acts as an unbiased third party to oversee the transaction. An escrow officer ensures all parties and protected during the transaction and helps with the transfer of funds and deeds.

The documents that will be included in the final closing escrow may include the title affidavit, a quitclaim deed, bill of sale, a non-foreign affidavit, assignment and sale of contracts, supplier guarantees and warranties.

As the buyer of a commercial property, you should observe due diligence in due time in ensuring that all property documentation is correct and up to date. Triple check everything about the property including utility and service contracts, environment reports, surveys, rent rolls, restrictions, covenants, etc. In case of any disparity with what the seller initially promised or stated about the contract, you have the right to cancel the transfer of funds.

Following these steps can make the process of buying a commercial real estate property much easier and smoother.

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March 28, 2015

Miami Commercial Property Related News 3/28/2015

CVS Commercial Property Near Downtown Miami

CVS Commercial Property Near Downtown Miami

Despite Lack Of Land, Miami’s Population Growth Ranked Eighth Last Year

The Miami metro area added 66,361 people between July 1, 2013, and July 1, 2014, ranking eighth highest in the nation.  Overall, six of the nation’s 20 fastest growing metropolitan areas were in Florida, with Miami growing more than any other Florida metro. On a percentage basis, Florida’s The Villages grew fastest…

Construction Watch: Gulfstream Park’s 110 Foot Bronze Pegasus is Looking Fierce

It’s been a little while since Curbed last checked in on the construction of Gulfstream Park’s 110 foot tall bronze sculpture of Pegasus, the winged horse of Greek mythology, killing a dragon. Both beasts appear to be nearing completion, while construction workers are…

Latin buyers fueling SoFla real estate boom, China emerging: Chamber summit

The South Florida real estate market experienced its fourth straight year of record-breaking sales, fueled by a continuing surge of wealthy Latin America buyers, according to a report released Friday, conducted by the National Association of Realtors for the Miami Association of…

Work Underway On 70-Unit Island Living Project In Overtown

Another housing project is under construction in Overtown.  Island Living, with 70 units of affordable housing, is being built at 1201 NW 3rd Ave. A groundbreaking ceremony was held last week, although work has been underway for some time.  The ground floor of the eight-story building…

Miami Beach tourism photos from the files of the MIami Beach News Bureau – 1950s and 60s

Pepi Hauseman, beach modeling scene (Feb. 1956).  Cars on Ocean Drive with beach in background. (Feb. 1955)  Loretta Larsen, beach modeling scene (Aug. 1955).  Lummus Park beach scene (Feb. 1960).  Pier Park beach….

Big Sugar, pressing forward to privatize Florida’s water supply

For Big Sugar, the exploitation of Florida taxpayers is a ceaseless enterprise. Its success is measured in hundreds of millions of dollars. However much money Big Sugar makes — dominating Florida — it is never enough.With profits virtually guaranteed by federal farm bill policy, Big Sugar freely…

Comment of the day re Biscayne Green: “The plan does need some amendments,…

“The plan does need some amendments, but over all, it is a very solid initiative. It doesn’t really matter what they put in-between the lanes of traffic as long as it is well landscaped and inviting (the attractions are already on both sides of Biscayne Boulevard) the most important factor is to…

Going Up: Construction at Midtown 5

Construction at Midtown 5 (or is it 5 Midtown? At least they stuck to Midtown’s existing numbering sequence, instead of naming the building something totally different, like Hyde) has (A) begun and (B) gone vertical, with two cranes appearing at the site. When completed, the 24 story tower will…

Infrastructure Watch: It Looks Like Tri-Rail Just Might Get its New Station, After All

Tri-Rail went to yesterday’s Miami City Commission meeting asking for $11 million from the city’s coffers to help fund the commuter rail line’s portion of All Aboard Florida’s MiamiCentral station complex in Downtown Miami. Instead, they got at least $5.5 million in transportation taxes, as well a…

Revenue Reserve: Because Things Go Wrong

This one’s a new one on me: a premium feature documentary film framed squarely on commercial real estate, its promises and pitfalls, complete with stirring music, a well-composed visual sense and heavy hitters from NAR, CCIM, IREM and others sharing hair-raising war stories and sage advice.

Will Rising Dollar Hamper Office Leasing?

We know that the Miami condo market is seeing a healthy correction thanks to, in part, a strengthening US dollar. Is that trickling down to office…

 

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March 28, 2015

Brickell City Centre Rising to Meet Growing City’s Needs

Brickell City Center is a strategically located $1.05 billion mixed-use development at the center of the Brickell financial district. It is Miami’s largest mixed-use urban development, and while it is still under construction, it is shaping Miami’s future. Brickell City Centre boasts an inspiring design and meticulous urban planning that will seamlessly integrate the project into the existing urban fabric and infrastructure. It will link up with every aspect of Miami’s metropolitan and uniquely vibrant lifestyle.

An impressive 565,000 square feet is at the heart of Brickell City Centre’s shopping center. The shopping center creates the perfect mood by combining Miami’s outdoor lifestyle and the beautiful weather. This multi-level experience and impressive sophisticated design is replicated in the world’s greatest shopping capitals. It will offer an elegant and chic climate where consumers can interact with brands and connect.

The Brickell City Centre project is anticipated to bring an entire new concept of sophistication and urban living to Miami. Some of the highlights of the project include:

  • It occupies a total of 9.1 acres between Eight Street and Sixth Street, along South Miami Avenue
  • It will incorporate and integrate Miami’s key transportation centers with the Miami Metromover as well as offer easier access to Interstate 95.
  • An innovative climate control system built into the architectural design will offer an environmentally progressive Climate RibbonTM that will allow shoppers comfort between shopping stores and restaurants.
  • A total of 5.4 million square feet of residential, office, hotel, entertainment and retail space as well as a two level underground parking garage that is as big as 7 acres.

Brickell City Center was proposed as an urban complex consisting of for skyscrapers in downtown Miami. Despite being approved by the Federal Aviation Administration and the City of Miami, it was canceled in 2008 as a result of poor market conditions. Swire Properties revived the Bristol City Center project in June 2011.

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March 28, 2015

Flashback Friday: the Mariel Boatlift

In 1980 there was a sharp downturn in the Cuban economy.  This led to significant internal tensions in the country, and an attempt by up to 10,000 Cubans to gain asylum in the Peruvian embassy.  The government of Cuba soon after announced that anyone who wanted to leave could do so.  A massive exodus by boat began shortly afterward.

The exodus was organized by Cuban-Americans with the consent of Cuban president Fidel Castro. It had negative political implications for the (also otherwise embattled) United States president Jimmy Carter when it came out  that a number of these exiles had been released from Cuban mental health facilities and jails, immortalized in the early scenes of the 1983 movie Scarface.  It is estimated that between April and October of 1980 as many as 125,000 people participated in the Mariel Boatlift, which was named for Mariel Harbor, their departure point in Cuba.  Most ended up in Miami, which rather heroically bore the responsibility of absorbing the immigrants.  The boatlift was ended by the end of 1980 agreement between Cuba and the United States.

Related Resources:

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March 27, 2015