Miami Commercial Real Estate News July 21, 2021: Brickell Four Seasons Trades for $130 Million; Wynwood Mega Developments; Office Market Updates; More…

Fort Partners buys Four Seasons Brickell hotel for $130M

The developer of the ultra-luxury Four Seasons at the Surf Club in Surfside acquired the Four Seasons Miami hotel in Brickell for about $130 million, The Real Deal has learned. The acquisition gives Fort Partners control of all four Four Seasons properties in South Florida, including in Palm Beach and Fort Lauderdale. The 221-key hotel at 1435 Brickell Avenue in Miami is…

Madison Realty Capital Provides $105M Acquisition Loan for Four Seasons Hotel Miami

Madison Realty Capital, a New York City-based private real estate equity firm, has provided a $105 million loan to Miami-based developer Fort Partners for the acquisition and renovation of the Four Seasons Hotel Miami located in the city’s Brickell district. Located at 1435 Brickell Ave., Four Seasons Hotel Miami is a 221-room hotel that anchors a 70-story…

Video: Costar Director of Market Analytics David Kahn Discusses Office Forecast

David Kahn, Director of Market Analytics with CoStar, a leading provider of information, analytics and marketing services to the commercial property industry, joins America’s Commercial Real Estate Show to discuss the office market. Included in the discussion are rent growth, performance, vacancy, cap rates, trends and opportunities. Much of the conversation…

One of the largest Wynwood projects to bring 523 residences

One of the largest mixed-use residential and office projects ever proposed for the Wynwood Arts District will bring 12- and 8-story buildings with 523 residences to the neighborhood and more than 950,000 square feet of floor uses. L&L Carpe Wynwood Holdings LLC is the owner-developer of the project called 29N Wynwood, to rise at 95 NW 29th St. The project…

AMLI Wynwood, 550,000-sf mixed-use residential development, breaks ground

AMLI Residential recently broke ground on its 550,000-square-foot, mixed-use Wynwood development at 70 NW 25 St. The eight-story building is designed by Arquitectonica, an award-winning global architecture firm based in Miami, which also is the design team behind innovative building projects such as the Brickell City Centre, FTX Arena and the South…

Miami Market Update: Office Vacancy Slides

Despite constantly expanding its development pipeline since the onset of the year, Miami’s office vacancy has been contracting during 2021, CommercialEdge data shows. The metro’s business-friendly environment and favorable tax climate continues to attract investor interest from other parts of the country. As of May, the market’s vacancy rate hit 14.8 percent…

Beach Towing buys Sunset Harbour property for $7M

Beach Towing paid $6.5 million for the Miami Beach property where it has been based for 35 years. The car storage and towing company bought the building and parking lot at 1349 Dade Boulevard in Sunset Harbour from the Festa Family Trust, according to a news release. Mika Mattingly and Cecilia Estevez of Colliers represented the seller. Attorney Eric Gonzalez..

Rotem Rosen scores legal win against Alex Sapir

Rotem Rosen just scored a legal victory in an ongoing lawsuit with Alex Sapir, his former brother-in-law. Rosen asserts he is owed $102.9 million from the estate of Sapir Organization founder Tamir Sapir, who died in 2014. Last week, a judge ruled that Alex Sapir, a son of Tamir, must put $55.5 million in escrow while the dispute is being decided, according…

Four landlords allegedly pushed out 5,000 renters during moratorium

A House select subcommittee is hot on the trail of four landlords allegedly responsible for forcing out 5,000 renters during the CDC’s eviction moratorium. The subcommittee is asking for documents from Invitation Homes, Pretium Partners, Ventron Management and the Siegel Group about their recent eviction practices. Letters to the companies were sent…

CareRite Centers buys south Miami-Dade nursing facility for $35M

CareRite Centers bought a nursing home and rehabilitation facility in south Miami-Dade County for $35 million. Englewood Cliffs, New Jersey-based CareRite, through an affiliate, bought the property at 9869 Southwest 152nd Street, records show. The buyer borrowed $30.1 million from VNB New York. Seller Del Sol Realty Holding is managed by Michael Silberberg.

Inside the tug-of-war over the Surfside condo site’s future

Steve Rosenthal loved living along the beach, chatting with his neighbors by his condominium’s pool, having everything he needed just a short walk or drive away. That was his life at Champlain Towers South in Surfside. Rosenthal lost many of his friends when the majority of the 12-story condominium collapsed last month, killing at least 97 people. He was…

Democrats look to curtail tax break for “pass-through” businesses

A tax break beneficial to “pass through” businesses — including real estate trusts — is in the crosshairs of congressional Democrats. On Tuesday, Democrats on the Senate Finance Committee, led by chairman Ron Wyden, will unveil a measure that targets the 20 percent deduction granted to such businesses, which also include law firms and family farms, according to…

Kite Realty to acquire Retail Properties of America for nearly $3B

Kite Realty Group has agreed to pay $2.79 billion to add rival Retail Properties of America to its open-air shopping center portfolio, making the real estate investment trust the nation’s fifth-largest and giving it cheaper access to capital for expansion. If shareholders approve the deal, Oak Brook, Illinois-based Retail Properties of America will become a…

Miami Hotel Rebound: ‘We’re Blowing 2019 Out Of The Water’

The recovery of South Florida’s hotel industry is stronger than anyone could have imagined in March 2020 when the coronavirus pandemic was bearing down on the world. Nationwide, Miami had the largest growth in average daily room rates (up 44.7% to $225.14) and revenue per available room, or RevPAR, (up 30.7% to $152.45), hotel data collector STR said in a report…

Employees revolt against return-to-office edicts

Momentum for a broad return to the workplace this summer is fizzling in the face of uprisings from employees reluctant to assume the risks of office life — or surrender the perks of working from home. More than seven in 10 office workers were still working remotely as of May, according to a Gallup study, and two-thirds of them want it to stay that way. In what some…

Setai Miami Beach owners and condo association sue city over Bulgari hotel height increase

The Setai Miami Beach’s owners and condominium association are seeking to upend the redevelopment of a neighboring property that is slated to become Bulgari’s first hotel on U.S. soil. Setai Hotel Acquisition LLC, an entity owned by the Nakash family of Jordache Jeans fame, and the Setai Resort and Residences Condominium Association on July 6 sued the city…

Apparel company Exist inks 142K sf lease in Miami Gardens, other leasing news

Gateway Commerce Park in Miami Gardens Apparel and fashion company Exist Inc. signed a long-term, 142,191-square-foot lease at Gateway Commerce Park, at 1722 Northwest 215th Street in Miami Gardens. Brian Smith, Audley Bosch and Matt Maciag with JLL represented the landlord, EastGroup Properties, in the deal, while CBRE’s Larry Genet and Tom…

Contract killers: Construction disputes spell disaster for projects

Days before the opening of New York City’s second-tallest building, workers in Navillus T-shirts scurried around the construction site. Their presence at SL Green’s trophy project, One Vanderbilt, raised eyebrows: Two months earlier, the concrete contractor’s CEO had been arrested on fraud charges. And before that, SL Green had fired Navillus, fearing it was going bankrupt.

Work may finally restore Irma-battered Dinner Key Marina

It’s been nearly four years since Hurricane Irma ravaged Dinner Key Marina in Coconut Grove, walloping the state’s largest municipal marina. A final round of repairs is still needed to bring Dinner Key back to its former glory. Today (7/22), Miami commissioners are to consider approval of a final contract with Kearns Construction Co. to repair the city-owned marina.

Miami-Dade office vacancies highest in 8 years

Florida’s economy is fourth-best in the nation in bouncing back from the plunge during the pandemic, but Miami-Dade’s office vacancy rates are also the highest they have been in eight years, at 16.9%. Even though vacancy has grown, so have newly signed leasing rates, by 8.6% since mid-year of 2020 and by 13.3% since the beginning of the pandemic. Although there…

Berkadia arranges $52 million recapitalization for Neology Life’s Pier 19 Residences & Marina in Miami River District

Berkadia announces it has secured a $52 million bridge loan to refinance Pier 19 Residences & Marina, a 199-unit luxury apartment community along the Miami River in downtown Miami. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia Miami secured the financing on behalf of sponsor Neology Life Development…

Miami Industrial Real Estate Quarterly Market Report 2nd Quarter 2021

The Miami industrial market’s Q1 vacancy rate was 4.6% at the close of the quarter with a $13.16 per sq. ft. average (gross) lease rate. Industrial The Miami industrial market’s Q2 vacancy rate was 3.9% at the close of the quarter with a $13.78 per sq. ft. average (gross) lease rate. Industrial vacancies have compressed after reaching higher levels in 2020.

Experts Believe a Retail Property Surge Is Coming

The latest forecast for the U.S. retail property market over the next few years is looking bullish, with the industry buoyed by a strong and fast-growing economy, pent-up consumer demand because of the pandemic, and the desire for shoppers to connect with a human. A panel of executives from brokerage JLL presented their first webinar update on retail…

PMG pays nearly $60M for Johnson & Wales North Miami campus

The Johnson and Wales campus and PMG principals Kevin Maloney and Ryan Shear (PMG) Property Markets Group closed on its purchase of Johnson and Wales’ North Miami campus. CBRE’s David Wigoda, which marketed and sold the 25-acre site, said PMG paid just under $60 million for the campus. “It was in the high 50s,” Wigoda said. Spokespersons for…

Surfside condo developer faced legal trouble in Canada, found clean slate in South Florida

As Nathan Reiber faced tax evasion charges and possible disbarment in Canada in the 1980s, he was already basking in a life of luxury in Miami Beach. A few years earlier, Reiber started a new chapter as a prominent real estate investor and benefactor to the Jewish community and the arts, rubbing shoulders at posh fundraisers with the likes of Elizabeth Taylor.

Gordon Ramsay to open first South Florida restaurant in Miami Beach

Gordon Ramsay is taking his talents to South Beach. The celebrity chef, known for his reality show “Hell’s Kitchen,” signed a lease for a restaurant in the South-of-Fifth neighborhood, The Real Deal has learned. He will be opening a Lucky Cat restaurant at the Yukon building, at 119 Washington Avenue, according to sources. Lucky Cat is taking a 9,000-square-foot…

“Too much money and no guardrails:” WeWork book authors on the collapse

Whenever Eliot Brown heard another wild Adam Neumann anecdote, he’d tell his editor. And the response would be: “Why are you not working on a profile of him again?” So Brown, armed with a perma-smirk and a background in real estate reporting, started gathering string. There was plenty to go around. Even in an era of Silicon Valley excess, Neumann…

The last mile-high club: Brokers adapt to a booming industrial market

Brian Thene was looking to break into commercial brokerage at the beginning of 2020. After spending a few years working in sustainability and corporate solutions at Cushman & Wakefield, he wanted to be a dealmaker. He cast a wide net, trying his luck in several aspects of commercial brokerage, from office to retail to multifamily. In February…

Terreno Realty Corporation Acquires Property In Hialeah For $39.4 Million

Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property in Hialeah on July 14 for a purchase price of approximately $39.4 million… at 4151 West 108th Street, immediately adjacent to Terreno Realty Corporation’s buildings at 4021-4071 West 108th Street and adjacent to…

Sovereign wealth funds are hunting for resi & industrial real estate

Sovereign wealth funds and central banks are looking to capitalize on post-pandemic real estate investment opportunities, following a brief pullback last year. Nearly three quarters of industry respondents to an Invesco survey believe the pandemic-fueled price fall in valuations will drive property purchases, according to IPE Real Assets. Participants in the…

Oceanfront Miami Beach condo La Costa ordered evacuated following bulk buyout deal

An oceanfront Miami Beach condo building that recently sold in a bulk buyout deal to developer Mast Capital is declared unsafe by the city and ordered evacuated by mid-August, The Real Deal has learned. Residents of the 124-unit La Costa building at 5333 Collins Avenue have until Aug. 16 to vacate the property, according to a photo of a notice obtained by TRD…

Here’s what Mast Capital plans for La Costa’s evacuated, oceanfront Miami Beach site

Renderings of 5333 Collins Avenue with Mast Capital’s Camilo Miguel Jr Developer Mast Capital wants to build a 100-unit luxury tower on the site of an oceanfront condo building that was ordered evacuated by the city of Miami Beach, The Real Deal has learned. An affiliate of Mast Capital purchased nearly 90 percent of the condos at La Costa at 5333 Collins…

Lightstone pays $20M for Miami Gardens warehouse leased to Moishe Mana

Real estate investor Lightstone paid $20 million for a Miami Gardens warehouse leased to one of Moishe Mana’s companies. Records show Lightstone, based in New York City, bought the property at 15801 Northwest 49th Avenue from Warehomes Precision. Mana, best known for his Wynwood property and long-planned downtown Miami project, houses…

Blackstone buys $5.1B in affordable housing from AIG

Blackstone and AIG have agreed to a massive deal involving the sale of $5.1 billion in affordable housing assets. AIG sold the assets to Blackstone as part of a “long-term strategic asset management relationship” between the two companies, Bloomberg News reported. Blackstone has been pursuing lower-cost rentals to boost its real estate arm, according to the publication.

Foundry Commercial Acquires Doral Industrial Park

Berkadia has arranged $14.1 million in acquisition financing on behalf of Foundry Commercial for the acquisition of America’s International Center, a 147,000-square-foot industrial park in Doral. Managing Directors Michael Weinberg and Rebecca Van Reken along with Associate Director Alec Fox of Berkadia Orlando secured the non-recourse…

The Fed: Though Easing, COVID Still Exerts Force on Region’s Economy

Pandemic-related forces continued to shape the southeastern economy in late May and June, as firms scrambled to fill job openings and competition for talent pushed up wages, according to the new Beige Book report on regional economic activity from the Federal Reserve Bank of Atlanta. As some companies reported offering more flexible schedules and wage…

Yacht Haven Park & Marina in Fort Lauderdale sells for $58M

The 20-acre Yacht Haven Park & Marina in Fort Lauderdale is poised for a makeover and additional storage after selling for $58.1 million, with the buyers scoring an $81.7 million purchase and renovation loan. Fort Lauderdale Motorcoach Resort and Yacht Club, with operating sponsors Gary Cioffi and Christopher Hein of Long Island, New York, bought…

Frankforter Group buys Pompano Beach apartments for $43M

Frankforter Group bought a Pompano Beach apartment building for $42.9 million. The Montreal-based real estate investor and asset manager bought Avery Pompano Beach at 275 North Federal Highway from an affiliate of Aventura-based Meyers Group, records show. The buyer borrowed $35.4 million from Arbor Realty SR, an affiliate of Uniondale, New…

Pebb Enterprises buys Boca Raton office building for $15M

Pebb Enterprises bought a Boca Raton office building for $14.52 million and fully leased it, as it continues to invest in the area. Pebb bought the property at 5900 Northwest Broken Sound Parkway at the Park at Broken Sound business park, according to a news release. Seller 5900 Broken Sound LLC is managed by Dennis Lynde, records show. It bought the property for…

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July 21, 2021

Video: Costar Director of Market Analytics David Kahn Discusses Office Forecast

David Kahn, Director of Market Analytics with CoStar, a leading provider of information, analytics and marketing services to the commercial property industry, joins America’s Commercial Real Estate Show to discuss the office market. Included in the discussion are rent growth, performance, vacancy, cap rates, trends and opportunities. Much of the conversation concentrates on the effects of COVID, the increase then recent slowing of the pace of increase of sublet availability. He notes that nationally vacancy is at 12.5%, up about 300 basis points since pre-pandemic levels but still lower than the great financial crisis and dotcom bubble. One chart that is striking is leasing activity, with total square feet leased up from pandemic lows, but still 30-40% (eyeballing it, chart at 4:02, look for yourself) below pre-covid levels.

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July 15, 2021

Miami Commercial Real Estate News July 14, 2021: Doral Office Property Trades for $96 Million; Palmetto Bay Multifamily Sells for $58 Million; More…

MG3 Group buys Doral offices for $96 million

MG3 REIT bought the Doral Concourse office building for $96 million. The real estate investment trust bought the property at 8400 Northwest 36th Street from a fund managed by DRA Advisors, according to a news release from the seller’s broker. Christian Lee and José Lobón of CBRE represented the DRA Advisors-managed fund. The six-story, 240,669-square-foot…

Miami Multifamily Report – Summer 2021

South Florida’s rental market showed strong signs of recovery in the first four months of the year, steadily rebounding from the pandemic. Miami led gateway markets with 0.8 percent rent growth on a trailing three-month basis through April, with Chicago (0.5 percent) and Boston (0.4 percent) also showing solid gains. Miami’s unemployment rate has improved steadily…

Dental clinic buys distressed Coral Gables office building for $7M

Elvis Mons must be smiling: His cosmetic dental clinic bought a distressed Coral Gables office building for $6.6 million. Dental Design Smile bought the nearly vacant property at 3195 Ponce De Leon Boulevard, with plans to renovate it and consolidate all of its current locations there, according to the clinic’s brokers. Leste Group, an alternative investment platform…

Related Companies, CareMax to open 75 senior health centers

A new partnership between Related Companies and CareMax promises to shape the future of senior health care in underserved communities — and, they hope, make some money in the process. Related is acquiring a 9 percent stake in CareMax as the companies work together to develop about 75 senior health centers over three years across urban communities…

Top 5 Office Projects Under Construction in Miami

More than 3.5 million square feet of office space was under construction in the Miami metro as of May, according to CommercialEdge data. Development activity was concentrated in the Miami North submarket, where nearly one million square feet of office space was underway. Some of the largest buildings include new headquarters or corporate expansions…

Inside Wynwood’s Burgeoning Office Market

The former industrial district’s rezoning unlocked its full potential, making it a Miami household name that attracts companies from all over the U.S. But the district’s revitalization seems to have been set off in 2005 by the groundbreaking of a large-scale mixed-use development dubbed Midtown Miami. Situated across the Edgewater and Wynwood neighborhoo…d

Altman Cos. Tops Off Miami Luxury Apartments Altis Ludlum Trail

Altís Ludlam Trail, a 312-unit luxury community in Miami, has topped off. The Altman Cos. is developing the project in a partnership with MV Real Estate Holdings and The Mattoni Group. The joint venture secured financing for the project in June 2020 when Comerica Bank provided a $55.4 million construction loan. According to Yardi Matrix, completion…

Mill Creek Residential Begins Construction of Downtown Miami Community

Mill Creek Residential has started construction on a 97-unit apartment community in downtown Miami that will go along with a 166-unit community that the company acquired in 2018. Modera Skylar Phase II, which broke ground in February, will offer one-, two- and three-bedroom units with den layouts available. The units will be built with private…

Starwood bailing on the mall business

Barry Sternlicht’s Starwood Capital Group is moving away from its mall portfolio as values on the properties continue to plunge. The investment firm has been selling off shopping centers at a loss across the United States, Bloomberg News reported. While Starwood owned 30 malls before the pandemic, it is now down to eight — and those are being run by…

Estate Companies sells Palmetto Bay apartment complex for $58M

The Estate Companies sold its Palmetto Bay apartment complex for $58.2 million. The South Miami-based developer, though an affiliate, sold Soleste Bay Village at 18301 South Dixie Highway to Westdale Real Estate Investment and Management, according to Neyda Bravo, a broker on the deal. Bravo worked with Luis Gonzalez, both of Bravo & Partners…

Bulk warehouse rent surges 13% in a year as industrial boom powers on

While commercial real estate vacancies persist, the warehouse boom is still going strong. A CBRE analysis found that from January through May, first-year base rents on leases of a year or more rose by 9.7 percent year-over-year, CNBC reported. Large warehouses have seen even sharper rent growth — 13.2 percent for leases of 500,000 square feet or more…

Miami Beach sees pedestrian future for Ocean Drive

Miami Beach has applied for a county permit to keep Ocean Drive pedestrianized, but the short-term future of the iconic road is still up for debate. In May 2020 the county approved temporary closure of Ocean Drive to vehicular traffic, Miami Today reported, and a final configuration will be explored as part of the Art Deco Cultural District preliminary concept…

Voters to rule on Virginia Key marina lease without bids

Miami City Commissioners have asked the legal department to prepare wording for a ballot question that would ask voters if the long-time tenant for Virginia Key should have its lease extended. The 3-2 vote, with Manolo Reyes and Alex Diaz de la Portilla opposed, came after a long and sometimes contentious discussion on the steps taken so far for the…

Wynwood OKs unique public-private deal

A unique public-private partnership has assembled and will bring an apartment building to Wynwood’s southeastern corner devoted entirely to affordable rental units, atop ground floor retail. Wynwood Works…. to redevelop the property at 2035, 2037 and 2043 N Miami Avenue. The project was approved Monday by the Wynwood Design Review Committee…

North Beach apartment building deemed unsafe, ordered evacuated

Miami Beach deemed Devon Apartments at 6881 Indian Creek Drive unsafe and issued an order to evacuate on Monday, according to an attorney representing the building’s landlords and the city’s spokesperson. Manny J. Vadillo, the attorney representing 6881 Indian Creek LLC, told The Real Deal that the 14 residents who remain will be given a week to find alternative…

Surfside condo collapse prompts industry changes

The rest of Champlain Towers South is demolished in Surfside, Florida,north of Miami Beach, late on July 4. Raysa Rodriguez, 59, described the moment she was awakened by the collapsing northeast portion of her Surfside condo building, home to more than 50 units. The tower “swayed like a sheet of paper,” Rodriguez said, according to a lawsuit filed on…

Mexican firm Zentrix Industries buys former Related Group downtown Miami HQ for $24 million

Related CEO Jorge Pérez, President Jon Paul Pérez and the waterfront property (Related, CBRE) The Related Group sold its former downtown Miami headquarters for $24.1 million. Jorge Pérez’s Related, known as the most prolific South Florida condo developer, sold the building at 315 South Biscayne Boulevard to Mexican apparel group Zentrix Industries…

Doral Vice Mayor Calls For Review Of Projects Tied To Former Surfside Building Official

There is increased scrutiny on a building official who concluded the Surfside condo was sound years before it came down, and now, other projects tied to that official are under review. Vice Mayor Pete Cabrera wants a special meeting to review any project Ross Prieto was involved with in the City of Doral. Prieto used…

Notable Retail Leases Signed in South Florida Q1 2021

South Florida Retail Real Estate Leases 2020 – 2021 We’ve compiled a comprehensive list of the top retail leases signed by square footage in South Florida during Q1 2021. This quarter was busy overall, especially considering the current pandemic, and saw several big box leases signed and sealed. Despite the sentiment that the traditional retail…

Wynwood apartment tower in an Opportunity Zone scores $38 million construction loan

TSG, Lineare Group and Bridge Investment Group scored a nearly $38 million construction loan for a multifamily project in an Opportunity Zone in Wynwood. Bank OZK is the lender for Wynwood Haus, a 224-unit building under construction at 1765 North Miami Avenue, according to the development group and property record…

Stephen Bittel’s Terranova buys former Miracle Mile California Pizza Kitchen location in Coral Gables

Stephen Bittel of Terranova and 300 Miracle Mile Terranova expanded its holdings on Coral Gables’ Miracle Mile. The Miami Beach-based real estate firm, led by Stephen Bittel, paid $6 million for the corner property at 300 Miracle Mile, previously home to California Pizza Kitchen, Bittel said. It marks the 12th property Terranova owns on the retail street and the…

KKR shatters CRE lending record as construction, borrower demand pick up

The year’s only half over, but KKR & Co. has already broken a personal record. The private equity giant has committed to $8 billion in commercial property loans so far this year, Bloomberg reported, more than doubling its previous full-year record of $3.1 billion, set in 2019. Such gains come at a time when construction is picking back up and so is demand for new…

Why residential rent will rise by 2.8% this year

The white-hot housing market is now heating up the rental market too. Nationally, the average effective rent is expected to increase 2.8 percent this year to $1,451, according to a Marcus & Millichap report. Experts say as high home prices have made ownership inaccessible for many Americans, more have resorted to renting. In turn, the increased demand has led…

All About 40 Year Recertification Inspections for Commercial Properties

If you own any South Florida real estate, there’s something important that you need to know about commercial properties: the 40-year recertification requirement. In Miami-Dade and Broward Counties, all buildings which are 40 years old from the date of the original Certification of Occupancy must be recertified by the Building Official every 10 years to ensure they are…

Developer Proposes 850K Square Feet Of Warehouses Outside Miami-Dade Urban Development Boundary

Developers want to expand the urban development boundary in western Miami-Dade County by 41.2 acres to build an industrial park. Terra137 LLC, owned by German Blanco Romero and Eva Maritza Blanco, and Boca Raton resident Ana Bigott filed a comprehensive development master plan (CDMP) application to expand the UDB and create an industrial district…

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July 14, 2021

Chart – Inflation Watch June 2021: Inflation Expectations Remain Elevated 75-ish BP Over Pre-Pandemic Levels

Federal Reserve Bank of St. Louis, 5-Year Breakeven Inflation Rate, commonly referred to as the TIPS Spread, a measure of expected inflation derived from 5-Year Treasury Constant Maturity Securities and 5-Year Treasury Inflation-Indexed Constant Maturity Securities, for the 5 years ending 6/30/21

As one can see in these charts, the 5-year TIPS spread continues to sit around the 2.5% range, closing at 2.46% on June 29th, the last trading day of the month. Eyeballing this chart, if one calls the pre-pandemic level 1.75%, which is debatable (thus the “ish” in the title), then the TIPS spread, and thus inflation expectations, are running about 75 basis points higher than they were before anyone had heard of COVID-19.

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

~Sam Ewing

Real Money at Stake

Real money is at stake with these spreads. TIPS pay interest every six months, based on a fixed rate that is calculated by multiplying the adjusted principal by one-half the calculated interest rate (i.e. half a year’s worth of inflation at that rate). Thus, a “bet” that an investor makes in with these bonds has real financial implications. If actual inflation is higher than priced in the markets, a TIPS buyer will make more that a straight treasury buyer. If it is lower, that TIPS buyer will make less. How much money is at stake? In 2017 Morningstar pegged the market at $1.2 trillion. Thus, every 1/10% difference is a $1.2 billion swing. That is real money by my count.

Generally on Inflation and Commercial Real Estate

What is the impact of inflation on commercial real estate? In the near term, higher inflation tends to bring higher interest rates. Higher interest rates are a negative for commercial real estate. Higher rates means larger debt service payments, reducing the buying power of purchasers, and negatively impacting deal economics. It also means makes fixed income investments a more competitive investment, likely pulling capitalization rates (cap rates) up, and thus prices down. Over a longer period, however, the prospect of inflation leads to a principal benefit of commercial property investment, that of its potential as a hedge against inflation. After all, more inflation should lead to higher rent, at least in time.

MIT published an excellent whitepaper on real estate’s ability to keep pace with inflation with data to 2016. They looked at then tendency of retail, multifamily, industrial, and office income and values to keep pace with inflation. The best at keeping pace income-wise was retail, with rent growth of 102% of inflation. Office was the worst performing at a quite dismal 18%. Values across the property types were more consistently kept pace, with retail again doing the best appreciating at 107% of inflation, office again the worst at 74% of inflation. I’ll speculate that the fairly drastic difference between income and value keeping pace with inflation is driven by vacancy. If you’re interested in the topic, read the paper.

Expectations for inflation also come into play with lease structure and due diligence. A lease structure with a fixed rent increase becomes less attractive for a landlord with higher inflation expectations. Similarly, a commercial property being acquired with existing leasing in place that have fixed or capped rent increases looks less attractive as inflation expectations increase. Also, a property being purchased with fixed rate financing will look increasingly attractive if a buyer anticipates inflation fueled increases in income. Inflation, in short, is very important to commercial property investors.

~

Considering commercial real estate for its inflation hedging possibilities? Check out Miami area listings in this HawkinsCRE.com site. You can view all the properties listed on the commercial MLS in Miami-Dade county, or view only certain types: industrial ; multifamily ; office ; retail ; vacant land . You can also view properties filtered for their municipal zoning code or view properties by zip code or by their general location/region in Miami-Dade. Also available are office condo listings by building and multifamily properties displaying and sorted by price per unit. Even better, contact us to help you find the right property to acquire. With our other subscription resources, our proprietary database of off-market properties.



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July 10, 2021

Chart: Miami Commercial Real Estate Sales to List Price Ratio June 2021

January 2011 to June 2021 Sales to List Price Ratio for Commercial/Industrial Property within Miami-Dade County, Florida and Priced from $1 Million to $10 Million as Recorded in Miami MLS

The chart herein displays the sales price to list price ratio as reported by the Miami MLS for improved commercial real estate (MLS classification: commercial/industrial) within Miami-Dade county in the state of Florida priced from $1 million to $10 million that closed from January 2011 to June 2021. This ratio has spiked up to 95.5%, about as high as this has registered but for the (seemingly) anomalous 100% number in February 2017.

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July 9, 2021

Chart: Miami-Dade Commercial Real Estate Sales June 2021

Miami MLS Number of Sales from July 2019 to June 2021 for a) Commercial, Industrial or b) Commercial, Business, Agricultural, or Industrial Vacant Land within Miami-Dade County, Florida

This chart illustrate the quantify of closed sales of commercial properties in Miami-Dade county, including both improved commercial property and vacant commercial land, that were booked in the Miami MLS for the two years ending June 2021. The number for last month, June 2021, remained elevated as sales have remained strong post-pandemic. It is not the blistering pace of March, but it is a strong number, regardless. Note that this is only for sales booked in the Miami Multiple Listing Service (MLS), which does not record all commercial property sales. It does, however, record many of them.

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July 8, 2021

Miami Commercial Real Estate News July 7, 2021: Plan for WorldCenter Marriot Marquis Nixed, Land Trades; Mana Expands Downtown Assemblage; More…

Moishe Mana expands downtown Miami assemblage with $12 million purchase

Downtown Miami’s largest private property owner is still adding to his assemblage. Mana, who has envisioned transforming his real estate into the Mana Common tech and cultural hub, bought the half-acre parking lot at 49 Northwest First Street for $12.4 million, according to a news release. Miami Beach investor Andrew Mirmelli, manager of M&M Parking, sold…

Witkoff, Monroe pay $94 million for site of canceled Marriott hotel at Miami Worldcenter

New York-based Witkoff and a partner swooped in to buy the site of MDM Group’s long-hyped — but now-canceled — Marriott Marquis Miami Worldcenter Hotel for $94 million. Witkoff, led by Chair and CEO Steven Witkoff, and Chicago-based Monroe Capital bought the 4.7-acre site at 700 North Miami Avenue, according to a news release. It is not yet clear…

Chart: Miami-Dade Commercial Property Estimated Turnover 2016 to 2020

The question comes up as to how frequent a commercial property trades in the Miami area. Many take a guess at this, but which I’ve never heard of anyone else really making an effort to truly quantify it. I’ve taken a swing at it here. The Methodology. The value of what trades as a percentage as the numerator (selling prices) is not disclosed for many trades and in any…

Brazil’s Biggest Homebuilder Expanding Quickly In U.S. Multifamily

The biggest homebuilder in Brazil has entered the U.S. multifamily market and is expanding quickly through a South Florida developer and landlord. Miami-based AHS Residential controls and operates 11 communities and over 2,500 apartment units in Florida. In South Florida specifically, AHS Residential has five new apartment communities…

Related Group Seals $73 Million Loan From Cerberus for Wynwood 29 Project

The Related Group has locked in $72.8 million in construction debt from Cerberus Capital Management for a planned mixed-use residential and retail development, Wynwood 29, in the Wynwood section of Miami, Commercial Observer has learned. The financing will allow Related and its partner Metro 1, a Miami-based real estate firm with a history in…

“The Cult of We” review: “Emperor’s New Clothes” of the Silicon Valley age

Jamie Dimon, billionaire banker, adviser to presidents, leonine master of the financial universe, had FOMO. Mohammed bin Salman, the brash upstart who had come out on top in a ruthless Game of Thobes at the House of Saud, was eager to announce his primacy on the world stage. Masayoshi Son, whose early bet on Alibaba had made him one of the world’s…

Here’s what tenants pay at Downtown Miami’s Citigroup Center

The following is a preview of one of the hundreds of data sets that will be available on TRD Pro – the one stop… The priciest Miami office tower to trade hands in the past two years is a bit of a fixer-upper. As of March, the 810,000-square-foot Citigroup Center at 201 S Biscayne Boulevard in Downtown Miami was only 62 percent leased….

Pandemic fueled record business openings wave in Miami

The Covid-19 pandemic fueled the greatest wave of business openings in Miami-Dade County history, a new report from the US Census Bureau reveals. As the pandemic developed last year, the number of new business applications in the county rose nearly 25% above the level of 2019, which was the record at that time for Miami, a community that has…

Downtown Miami Office Vacancy at 24% in Q2, Up Slightly From Q1

Vacancy rates for office and retail properties remain high, but brokers and businesses are betting on a booming Miami market for business transplants. Direct vacancy for Downtown Miami office buildings was at 23 percent on average in the second quarter, according to a report from Colliers. Vacancies for all Miami-Dade County office properties stood…

Miami may forgive millions in Jungle Island debt

The Miami City Commission plans to consider amending a development agreement with ESJ JI Leasehold LLC to pay a portion of a loan given by the city to the original lessee for construction and operation of a hotel at Jungle Island on Watson Island in exchange for the project being completed by 2026. That would require ESJ to show a certificate of occupancy for…

Venetian, Rickenbacker Causeway redevelopment sought

Miami-Dade County received an unsolicited proposal from a consortium of firms, identified as the Plan Z Consortium, for a project to improve the Venetian and Rickenbacker causeways and Bear Cut Bridge. Now, county commissioners are today (7/8) to discuss the proposal and authorize the mayor to open a solicitation to others for the same project purpose. 

Research Points To E-Commerce-Driven Need For Another 330 Million Square Feet By 2025

Even though the most-dire days of the COVID-19 pandemic may be in the past, that, by no means, has pumped the brakes on the frenetic pace of e-commerce activity, driven by the steady drum beat of consumer demand. That was evident in the findings of a report recently issued by Los Angeles-based industrial real estate […]…

Restaurant aid runs dry, leaving most applicants with nothing

The federal pandemic relief fund for struggling restaurants fell short, helping less than a third of eateries that sought assistance. The $28.6 billion Restaurant Revitalization Fund, which was established as part of the federal $1.9 trillion coronavirus relief package, closed on Wednesday because it ran out of money, the New York Times reported.

CP Group Acquires One Biscayne Tower in Downtown Miami for $225M

CP Group, formerly Crocker Partners, has acquired One Biscayne Tower, a 38-story office tower in downtown Miami, in a joint venture with funds managed by Rialto Capital Management and Sabal Capital Partners. Dow Chemical sold the asset for $225 million, according to the Daily Miami News. L&B Realty has managed One Biscayne Tower on behalf of Dow…

CP Group JV Buys 1 Million Square Feet Miami Tower

A joint venture of CP Group, formerly known as Crocker Partners, along with funds managed by Rialto Capital Management and Sabal Capital Partners, has acquired the downtown Miami office building One Biscayne Tower, CP Group announced. The purchase price was $225 million, according to The Real Deal, which first reported the purchase. The…

$4.8M Sale of Coral Way Medical Office Property Brokered

Marcus & Millichap has brokered the $4.8 million sale of a three-story, 15,250-square-foot medical office property located at 1790 Coral Way in Miami. Douglas Mandel and Adam Klein of Marcus & Millichap represented the seller. Miami-based L2 Partners, a limited liability company, was the seller. The seller will occupy about 30 percent of the building. The…

Edgewater’s Bay Park Condo Towers in $130M Bulk Buyout Deal

If Beach Hill Capital Partners has their way, Edgewater will be seeing another luxury, waterfront condo tower be built. The Miami-based investment firm has offered $130 million to buy out the 1960s waterfront condo complex at 3301 NE 5th Avenue. The 14-story, 254-unit building was built in 1961 and has one of the largest surface parking lots in…

Chetrit’s lender alleges it stole $2M insurance payout for South Beach hotel damage

Chetrit Group’s new lender alleges that the New York real estate firm stole $2 million in insurance money tied to damages at the long-shuttered Tides South Beach hotel at 1220 Ocean Drive, court filings show. The latest allegations are part of a $45 million foreclosure lawsuit filed earlier this year by Safe Harbor Equity affiliate SHEDDF3 VNB LLC against CG Tides…

Lumber prices are splintering, futures drop 40% in June

Someone yell timber. June was the worst month on record for the lumber futures as prices for the homebuilding commodity are falling fast after an unprecedented run-up. The lumber bubble has finally popped because demand eased and supply grew, CNBC reported. Lumber futures tanked by more than 40 percent in June, the biggest monthly drop in data kept…

Zom wants to sell two South Florida apartment buildings for nearly $500M

Zom Living CEO Greg West with the properties Apartment developer Zom is ready to part ways with two high-end rental projects it recently completed. The company hopes that the South Florida properties will sell for more than $460 million… Orlando-based Zom listed the 438-unit, 50-story Solitair tower at 86 Southwest Eighth Street in Miami’s Brickell neighborhood…

Ronny Finvarb buys Deerfield Beach mixed-use property for $9M

Real estate investor Ronny Finvarb bought another property in Deerfield Beach. Finvarb, through his Sandcastle 1 affiliate, bought the office-retail building with restaurants at 233-249 Northeast 21st Avenue for $9.3 million, he said. The seller is Atlantic Pavilion, managed by James Nizzo and Ellen Spiros, according to corporate records. The three-story, 51,662-square…

FBE buys Lauderhill apartment complex for $95M

FBE Limited bought a Lauderhill apartment complex for $94.6 million. Records show 4200 Cypress Owner, tied to New York-based FBE, bought the complex at 4200 Northwest 19th Street from an affiliate of Code Capital Partners, also based in New York. The buyer took out an $80.4 million loan from MF1 Capital to finance the purchase. The 814-unit complex was…

Crow Holdings buys Delray Beach apartments for $112M

Dallas-based Crow Holdings bought a Delray Beach apartment complex for $111.75 million, marking one of the highest-priced multifamily deals in South Florida this year. Records show a limited partnership of CH Realty IX/MF Boca Raton Congress, in the care of Crow Holdings, bought the 369-unit Alta Congress at 250 Congress Park Drive. The deal breaks down…

Pebb Enterprises buys Boca Raton office building for $18M

Real estate investment firm Pebb Enterprises bought a Boca Raton office building for $18.4 million in an off-market deal, The Real Deal has learned. Boca Raton-based Pebb, led by president and CEO Ian Weiner, purchased the building at 1801 North Military Trail, according to a press release. Property records show the seller is North Circular Boca Raton LP. 

Tricera Capital, partners buy West Palm Beach office tower for $61M

Tricera Capital and three other partners bought One Clearlake office tower in West Palm Beach for $60.7 million. Tricera, NDT Development, New England Development and Rockpoint Group purchased the property at 250 South Australian Avenue, according to a news release. The seller, a joint venture between Dallas-based private equity real estate fund manager…

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July 7, 2021

Chart: Miami-Dade Commercial Property Estimated Turnover 2016 to 2020

Miami-Dade Property Appraiser 2021 Value of Hawkins Commercial Realty Identified Commercial Folios Traded in a Year Divided by Miami-Dade Property Appraiser 2021 Value of All Such Folios

The question comes up as to how frequent a commercial property trades in the Miami area. Many take a guess at this, but which I’ve never heard of anyone else really making an effort to truly quantify it. I’ve taken a swing at it here.

The Methodology

The value of what trades as a percentage as the numerator (selling prices) is not disclosed for many trades and in any case it is a different measure than any accessible denominator. What is accessible, however, is the Miami-Dade property appraiser’s (MDPA) value today for folios (parcels) that have traded in the past. By comparing 2021 MDPA values for traded commercial folios in prior years with total 2021 MDPA values for all commercial folios, it can give us a fairly accurate idea of turnover in those years. Note here I’m using county-wide numbers to represent the greater Miami area. Obviously, some areas will have had more turnover than others.

One fault in this is that the Miami area is growing, thus the square footage of improvements would have been less in prior years. However, these improvements will be reflected in the 2021 MDPA values. Thus, using MDPA 2020 values seems reasonably apples to apples, though perhaps Granny Smith to Gaia. Also, there will be properties that have gone in or out of a commercial classification. Those that have traded, however, will not be reflected at all, and thus should have no significant effect on the percentages. What is being counted here is properties that we’re identifying as commercial now that have traded in the past 5 years. Take into account the variances and you’re left with apples to pears, not perfect, but better than apples to unicycles (just a random choice there), and far better than any other calculation of which I’m aware.

It seems to be reasonable to assume that this is a pretty good way to gauge turnover or the past few years. Using such a method to go back farther, however, would surely result in less valid percentages for the years farther back, eventually excessively so.

“Four out of three people struggle with math.”

~Anonymous*

It is also worth noting that the drop-off in 2020 is greater than I would have guessed. Prior to 2020 turnover seems to run about 5-6%, which I’ll guess is a normal run rate. I would assume the 2021 drop is attributable to COVID, and further expect (this is a guess) that this is disproportionately attributable to larger trades. I’ll further guess that turnover for 2021 will be considerably higher than any of these prior years. I’ll play oddsmaker for a moment and call the over-under 8.5%.

* That’s my story and I’m sticking to it.

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July 1, 2021

Miami Commercial Real Estate News June 30, 2021: Condo Disaster Updates; One Biscayne Tower Sells for $225M, “Burdines” Dev Site for $46M; More…

Surfside condo “a time bomb:” Survivor’s lawsuit cites falling concrete, cracks and standing seawater in garage

Raysa Rodriguez recounts a harrowing escape from her unit at the collapsed Surfside condominium, and lays out mounting warning signs in a newly filed lawsuit. Among them: a concrete chunk that had fallen from the garage ceiling and a “wide crack” above her parking space. In her suit, which seeks class action status, Rodriguez also cites flooding in the…

Champlain Towers South carried a $5M policy, insurers gear up for legal claims

As lawsuits mount against the Champlain Towers South condominium association, the building’s and unit owners’ insurers will play key roles in footing the bill for any payouts arising from legal claims, according to local property insurance experts. Since the deadliest building catastrophe in South Florida history last Thursday, three residents have filed lawsuits…

Fire Official Says Six Floors of Surfside Condo Are Believed to Be Underground

The giant pile of debris in Surfside rises more than two stories above the earth and has proven to be a huge challenge for teams searching for victims of the Champlain Towers South building collapse. But that’s only what can be seen. Officials believe there is nearly as much of the building below ground level. Miami-Dade Assistant Fire Chief Ray Jadallah said…

State attorney’s office plans grand jury investigation into cause of Surfside collapse

State Attorney Katherine Fernandez Rundle will empanel a grand jury investigation to determine the cause of the fatal condo collapse in Surfside, as President Joe Biden plans a visit to the site. Miami-Dade County Mayor Daniella Levine Cava announced on Tuesday that Fernandez Rundle will ask a grand jury to look into the partial Champlain Towers South…

Surfside condo president’s April letter warned of more repairs required

The condo board sent a letter to unit owners of the Champlain Towers South in April cautioning the importance of major repairs, mere months before the oceanfront portion of the Surfside condo tower collapsed, trapping more than 150 people. The letter, signed by condo board president Jean Wodnicki, detailed extensive work the Champlain Towers South…

Dire Warnings Arose In Months Before Miami-Area Condo Tower Collapse

Although the images produced by the collapse of the Champlain Towers South complex in the Miami suburb of Surfside were shocking, the collapse itself wasn’t out of the blue. The president of the building’s condo association sent a letter to residents in April asking them to contribute for $15M in assessed repairs to the tower’s concrete structure, The Wall…

County, cities rush to inspect older buildings in wake of Surfside collapse

Miami-Dade County, Miami and Miami Beach are reviewing older buildings in the wake of the Surfside condo collapse that left residents concerned for their safety. Champlain Towers South, a 12-story, 136-unit oceanfront condo, partially collapsed last week, killing at least 11 people and trapping more than 150. The building was in the midst…

Emails, condo meeting minutes show Surfside official turned a blind eye to structural issues

An ex-Surfside building official who was emailed a report about the Champlain Towers’ structural damage told residents the building was in good condition in 2018. Residents of the collapsed Surfside condominium were told in 2018 that their building was in good condition. The town’s main building official at that time offered them the assurance even…

Engineer raised red flags more than 2 years before Surfside condo collapsed

A 2018 report raised major red flags about the structural integrity of the Champlain Towers South, the Surfside condo building that partially collapsed this week, killing at least five and trapping another 156. The engineer tasked to survey the building for its 40-year recertification found “abundant concrete cracking and spalling” as well as failed…

Details emerge in search for cause of fatal Surfside condo collapse

In the search for a cause of the Surfside condo collapse, more details are emerging about re-construction work needed at the building, as 159 remain missing and four are confirmed dead. Champlain Towers South’s condo association had put out bids for concrete restoration work, as part of the required 40-year recertification, the association’s lawyer, Donna…

159 still missing: Surfside rescue mission frustrates condo victims’ loved ones

As heavy rains complicated the search and rescue operation for possible survivors of the Champlain Towers South collapse, family and friends of people believed to be trapped beneath the rubble stood by at a reunification site in Surfside on Thursday. Maurice Waxman, whose friend Harry Rosenberg is among the 159 people still missing, said…

Photos: Devastation at Champlain Tower South

Police tape blocks access to the partially collapsed Champlain Tower South in Surfside on June 24. As of Friday, four people were confirmed dead and 159 missing at the 12-story building. (Photo by CHANDAN KHANNA/AFP via Getty Images) Police stand guard near the badly damaged building. (Photo by CHANDAN KHANNA/AFP via Getty Images) Rubble hangs from…

‘Walls Were Crumbling’ At 12-Story Florida Condo Building Before Deadly Collapse

A 12-story beachfront condominium building in Surfside, Florida, just north of Miami Beach, collapsed around 2 a.m. Thursday, killing at least one and leaving dozens more unaccounted for. The Champlain Towers South Condo building has 130 units and was completed in 1981, according to the Miami Herald. A massive search and rescue operation is underway after…

First lawsuit filed in deadly Surfside condo collapse

The first known lawsuit has been filed in the aftermath of the Surfside condominium building collapse that left 159 missing and at least four dead. Unit owner and resident Manuel Drezner sued the Champlain Tower South Condominium Association, seeking class action status and more than $5 million in damages. Drezner, who owns unit 1009…

After Miami Collapse: How to Prevent the Unthinkable

The deadly partial collapse of the 12-story Champlain Towers South condominium in Surfside, Fla., has left multifamily property owners and operators with many questions: How could this have happened? How can it be prevented from occurring again? What role may climate change play in placing buildings like this one in jeopardy? Jonathan Weislow, vice…

Miami CRE On What Condo Collapse Means For The Market

People in South Florida commercial real estate are saddened, confused and concerned about the collapse of Champlain Tower South in Surfside. “Our community, and the entire nation, is in shock and grieving over the collapse,” said Mike Pappas, president and CEO of The Keyes Co./Illustrated Properties. They are also thinking ahead to how the collapse is likely…

Supreme Court declines to lift CDC eviction ban

The CDC-imposed federal eviction moratorium will live on — at least for another month. In a 5-to-4 ruling late Tuesday, the Supreme Court rejected an emergency request to vacate the ban, which President Joe Biden extended last week for a fourth and likely final time. It is set to expire July 31. Opponents of the ban, including the Alabama Association of…

JV buys One Biscayne Tower in downtown Miami for $225M

A joint venture paid $225 million for One Biscayne Tower, an office building in downtown Miami, The Real Deal has learned. CP Group, which until recently was called Crocker Partners, along with funds managed by Rialto Capital Management and Sabal Capital Partners, bought the high-rise at 2 South Biscayne Boulevard, according to a news release. The seller was…

JV Acquires Downtown Miami Office Tower

A joint venture of CP Group, formerly known as Crocker Partners, along with funds managed by Rialto Capital Management and Sabal Capital Partners has acquired the downtown Miami office building One Biscayne Tower, CP Group announced. The purchase price was $225 million, according to The Real Deal, which first reported the purchase. The…

Developer Jeff Berkowitz cancels plans for SkyRise Miami observation tower

Rendering of SkyRise Miami and Jeff Berkowitz SkyRise Miami, the controversial tie clip-shaped observation tower that has been in the works for roughly a decade, will no longer be built. Developer Jeff Berkowitz canceled plans for the downtown Miami tower, expected to rise 1,000 feet next to Bayside Marketplace, according to the Next Miami. The…

Partnership Breaks Ground on 224-Unit Wynwood Haus Apartments in Miami

A partnership between TSG, Lineaire Group and Bridge Investment Group has broken ground on Wynwood Haus, a 224-unit multifamily property located at 1765 N Miami Avenue in the Wynwood submarket of Miami. The project is slated for completion by the first quarter of 2023. Wynwood Haus will be a 20-story project and will include studio, one- and two…

Swerdlow Group Breaks Ground on $300M Sawyer’s Walk Mixed-Use Development in Miami

Swerdlow Group has broken ground on Sawyer’s Walk, a 1.4 million-square-foot mixed-use development in Miami’s Overtown neighborhood that will include 250,000 square feet of retail space below 578 apartments designated for low-income seniors. Swerdlow Group is collaborating with the Southeast Overtown/Park West Community Redevelopment…

Opening of Jackson West in Doral finally firm

Jackson West Medical Center will open its doors to patients Aug. 2, while staff will be in the building starting July 12 according to CEO Eddie Borrego. The opening of the facility, which Mr. Borrego said will be the first acute-care hospital in Doral, has been delayed several times.  In 2019, Miami Today reported, Jackson Health System announced its plan to open…

Wix Is ​​Actively Seeking To Double Its Office Space In Miami – Commercial Observer

Wix, a leading web development company, is looking to expand its presence in Miami, Commercial Observer has learned. The technology company is currently based in The Lincoln, a mixed-use Class A building one block from South Beach’s famous one Lincoln Road, covering an area of ​​approximately 25,000 square meters. Wix aims to expand and…

Monarch Alternative Capital Acquires Majority Interest in Miami’s Citigroup Center

Monarch Alternative Capital LP, a leading investment firm with approximately $9 billion of assets under management, today announced that it has acquired a majority interest in the Citigroup Center office building located at 201 S Biscayne Boulevard in downtown Miami. The Citigroup Center purchase is Monarch’s fifth office building investment…

UBS Group going hybrid as workers return

Not every bank is giving love to office landlords: UBS Group AG plans to deploy a hybrid work model. The Swiss multinational investment bank said about two-thirds of its employees will have flexibility to work at home for part of the week after they return to their workplace, according to an internal memo reviewed by Bloomberg News. The date for a return…

Driveshack at Wynwood Walk, GoPuff in Coral Gables, other notable leases inked

Driveshack chose Wynwood Walk as its first Florida location. The entertainment and golf simulator concept signed a 10-year lease for 17,616 square feet at Wynwood Walk, a Thor Equities property. Michael Sullivan from Koniver Stern Group, and Jeremy Zidell and Tripp Russ from Rue represented Driveshack. It’s expected to open next year. State…

Trouble in EB-5 land: Congress at impasse on extension

Last week was a roller coaster for the cash-for-visas EB-5 program. Its backers celebrated Tuesday when a federal judge struck down a Trump administration rule that experts say nearly killed the program. The judge’s ruling reduced the minimum investment amount to $500,000 from $900,000, although it also reduced the number of areas that qualified…

Edgewater investor shells out $46M for downtown Miami development “Burdines” site

Enrique Manhard and his partners, who recently sold land in Edgewater to the Kushner Companies, have reinvested in downtown Miami. The investors paid $46 million to buy the “Burdines” site, a 2.2-acre block at 16 Southeast Second Street, from Wharton Equity Partners and Cross Lake Partners The development site is zoned for a 2.2-million-square-foot…

Wharton Equity Partners, Cross Lake Partners Sell Development Site in Downtown Miami for $46M

Wharton Equity Partners and Cross Lake Partners LP have sold a 92,972-square-foot development site located at 16 SE 2nd St. in downtown Miami. Colliers International’s Urban Core Division facilitated the $46 million sale of the full city block, known as Miami Center. The property is currently home to a parking lot. Mika Mattingly of Colliers and Robert Given…

Downtown Miami Mixed-Use Development Site Commands $46M

A New York-based venture of Wharton Equity Partners and Cross Lake Partners has sold one of the largest undeveloped parcels in downtown Miami, zoned for a 2 million-square-foot mixed-use development. According to South Florida Business Journal, South American businessman Enrique Manhard picked up the 2.2-acre site for $46 million. Zoned…

Fifty former Sears stores go to market

The owner of the defunct Sears franchise is looking to unload a chunk of properties. Andrea Olshan, chief executive officer of the real estate investment trust Seritage Growth Properties that bankrupt Sears formed five years ago, wants to sell 40 to 50 former stores to generate cash, Bloomberg News reported. The sales will also allow Seritage to…

Biden extends CDC eviction moratorium one more time

The Biden administration Thursday extended the federal ban on evictions for a fourth and likely final time, pushing a moratorium set to sunset at the end of the month until July 31. Landlord groups like the National Multifamily Housing Council criticized the extension, calling the move “out of step with the significant progress made in…

Brookfield pays $26M for Doral warehouse

Brookfield Asset Management bought the Bristol Logistics Center in Doral for $26.3 million. The Toronto-based alternative asset manager purchased the building at 1900 Northwest 92nd Avenue from an affiliate of San Francisco-based Bristol Group, according to a news release. Larry Genet and Tom O’Loughlin were part of the CBRE team that represented…

Travel Tech Company Amadeus Downsizing in Doral, Puts 85K SF on the Market

As high-profile newcomers snatch up Miami leases, Amadeus, a leading travel software company, is downsizing its footprint in the city, Commercial Observer has learned. The tech company is vacating its entire North American headquarters at One Park Square in Doral, Fla., placing the entire 84,110 square feet on the market. The global firm is looking for a new…

Doral Bans Gambling Amid Trump-Owned Casino Prospects

The Doral city council earlier this month voted 4-0 to ban gambling and casinos from the city unless approved by residents in a referendum, weeks after Gov. Ron DeSantis negotiated a $500 million gaming deal with the Seminole Tribe of Florida, reports the Miami Herald. Critics believe the compact was tailored to allow casinos at properties such as the Trump…

Landlords in peril, tenants in distress: Expiring eviction bans foreshadow national reckoning

In Connecticut, real estate attorney Ori Spiegel hadn’t heard much from landlords as the end of his state’s eviction ban approached. He expects that to change, starting today. “There are many who I’ve asked to call me back on June 30,” Spiegel said. “The governor has often waited until the last minute to extend the moratorium…”

BTI Partners buys Hollywood Bread Building for $11M, plans multifamily tower

BTI Partners plans a 25-story multifamily project on the site of the Hollywood Bread Building, after buying the property for $11 million. Fort Lauderdale-based BTI Partners and its equity partner Bridge Investment Group bought the Bread Building at 1747 Van Buren Street, according to a news release. Steve Kohn and Chris Moyer were part of the Cushman…

KPC Properties buys Plantation apartment complex for $46M

KPC Properties bought a Plantation apartment complex for $46 million. The Fort Lauderdale-based group bought Axis at One Pine at 1 South Pine Island Road from Pensam Capital, according to Tal Frydman, one of the brokers on the deal. Frydman worked with Avery Klann, both of Newmark, to close the sale. The five-story complex totals 209 units and more than 228,275 sf…

Batmasians buy Deerfield Beach multifamily complex for $46M

James and Marta Batmasian’s investment firm bought a Deerfield Beach apartment complex for $46 million. Their firm, Investments Limited, bought the 212-unit Lakes at Deerfield at 1100 South Military Trail from GFI Capital Resources Group, according to a news release from the brokers involved. The deal breaks down to $216,981 per unit. Tal Frydman…

Avanti buys Boynton Beach apartments for $105M

LeCesse Development Corporation sold a 341-unit apartment complex in Boynton Beach for $105 million. Skye at Boynton Beach LLC, tied to LeCesse, sold 500 Ocean Apartments at 101 South Federal Highway to four Delaware entities. Three are tied to Denver-based Avanti Residential and one is linked to a real estate investment trust, records show. The deal equates to…

Downtown West Palm Beach office building, parking lot sell for $20M

The Galleria International, an office building in West Palm Beach, sold for $20 million, in a deal that included a parking lot, The Real Deal has learned. Galleria International LLC sold the 42,263-square-foot office building at 301 Clematis Street to Clematis Banyan Investors LP, according to a press release. Safe Parking LLC sold the 30,000-square-foot parking lot adjacent…

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June 30, 2021

Chart: Miami Commercial Real Estate Sales to List Price Ratio May 2021

January 2011 to May 2021 Sales to List Price Ratio for Commercial/Industrial Property within Miami-Dade County, Florida and Priced from $1 Million to $10 Million as Recorded in Miami MLS

The chart in this post displays the sales price to list price ratio as reported by the Miami MLS for improved commercial real estate (MLS classification: commercial/industrial) within Miami-Dade county in Florida for such properties priced from $1 million to $10 million that closed from January 2011 to May 2021. This ratio moved up a touch to 94.6% versus the prior month, in the upper end of a 5-7% band over prior years.

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June 28, 2021

Miami Commercial Real Estate News June 23, 2021: Pembroke Pines MF Sells for $223 Mil, Bay Harbor Islands Dev Site for $31 Mil; Margaritaville Selling for $270 Mil; More…

Berkadia Arranges $31M Sale of Mixed-Use Bay Harbor Islands Development Site

Berkadia has arranged the $31 million sale of a 1.8-acre development site in Miami’s Bay Harbor Islands known as 1177 Kane Concourse. Located just west of Bal Harbour Shops, the site includes 300 feet of frontage on Kane Concourse and is permitted for a mixed-use residential, retail and office development. Jaret Turkell, Roberto Pesant, Scott Wadler, Omar Morales…

Billionaire Teaming Up With Sidewalk Labs On Miami Development

Billionaire developer Moishe Mana, through his company Mana Common, has engaged Alphabet’s Sidewalk Labs to plan sustainable infrastructure for a swath of property he owns in Miami’s trendy Wynwood neighborhood. Sidewalk Labs, dubbed an urban innovation company, will design energy, waste and parking systems across 24 acres. It is one of the first projects…

Forget Silicon Valley: Commissioner Wants to Attract Big Pharma to Miami-Dade

When it comes to the future of Miami, the buzz for the past six months has pretty much focused on Mayor Francis Suarez’s push to make the city a hub for tech companies and startups. That’s been the narrative ever since December, when the mayor responded to a throwaway suggestion on Twitter (“ok guys hear me out, what if we move silicon valley to…”)

Miami Market Update: Office Transaction Activity Picks Up Pace

In April, six properties totaling 575,367 square feet changed hands in Miami, at a combined price of $265 million and an average of $461.1 per square foot, according to CommercialEdge data. The office market has picked up momentum in the first quarter of the year, and the growing interest in the Southern Florida market doesn’t seem to be slowing…

Kleber Discusses Miami’s Office Boom

Miami is having a moment. Name a premier financial or tech company and chances are it’s scoping out Miami offices. These include industry giants Citadel, Millennium Management, Apollo Global Management, Apple, Bitcoin.com, and the list goes on. The Magic City is an appealing alternative to New York and San Francisco. Why not settle some place where the…

Related, Dezer report nearly $1 billion sellout at Residences by Armani/Casa

A new benchmark for post-pandemic condo sales in South Florida was set with the nearly $1 billion sellout of the Related Group and Dezer Development’s Residences by Armani/Casa. The developers are among the latest to report a sellout or near sellout in recent months as demand remains high for luxury condos in South Florida. E11even Hotel…

Rilea Group plans multifamily project on Wynwood site purchased for $22 million

Miami’s Wynwood continues to grow as an apartment rental market, with a developer planning a multifamily project on a site it purchased for $22 million. Rilea Group bought the property at 56 Northeast 29th Street from 29th Street Warehouse LLC, managed by Lombardi Properties, in an off-market deal, according to a news release. Alfred…

Hamilton on the Bay’s owner Aimco adds more land to its Edgewater war chest

Multifamily real estate investment trust Aimco, owner of the waterfront Hamilton on the Bay apartment tower, is expanding its land assemblage in Miami’s Edgewater neighborhood. Aimco has closed on or is in contract to buy nearly the entire block of 34th Street, across from the Hamilton, sources told The Real Deal. The Denver-based REIT was rumored to…

Office investors Tishman Speyer, Brookfield put money where mouth is

Since early in the pandemic, office landlords have maintained that work-from-home would not cripple their big-city portfolios. But talk is cheap. Who backed up their bluster with billions of dollars in office investments? Tishman Speyer and Brookfield did, their executives said Wednesday at a forum in Qatar. Rob Speyer said that since March, his firm had…

Estate Companies sells Soleste Alameda apartments in West Miami for $83M

The Estate Companies sold its fifth West Miami multifamily project for $82.9 million. Estate, based in South Miami, sold the 306-unit Soleste Alameda at 6320 and 6290 Southwest Eighth Street to Dallas-based Westdale Real Estate Investment and Management, according to Neyda Bravo, a broker on the deal. The sale breaks down to $270,971 per unit. Bravo work…

Mall landlords turn to pop-up stores to boost revenue

Retailers aren’t the only ones working their way back from the ravages of the pandemic. Mall landlords have been decimated, and many are now courting temporary tenants, pushing the pop-up stores to boost revenue and fill space. Mall operators on Long Island and across the nation are trying to entice retailers with cheaper rents — sometimes a few months…

Global Horizons buys Buena Vista and Little Haiti portfolio for $13M

Global Horizons Group bought a 35-property portfolio of single-family homes and apartment buildings in Miami’s Buena Vista and Little Haiti neighborhoods for $12.85 million. The North Miami Beach-based investor bought the properties from Miami-based Bowery Properties, led by Thomas Neary, according to Global Horizons’ co-founder and co-managing…

County cuts $4 billion West Dade development deal with developer Terra

Miami-Dade and developer Terra have agreed to early terms of a project near Dolphin Station that is expected to yield the county more than $4 billion over a century. Commissioners June 15 approved a 97-year contract with the Miami firm for construction of Upland Park, a mixed development to span 33 county acres where the Dolphin Expressway and Florida…

Major Mexico investment firm to open in Miami

Banorte Securities International (BSI), an investment management and brokerage service company based in Houston, announced it will open offices in the Brickell financial district to attend to its clients from Mexico and the Latin American region in South Florida.  The company is a subsidiary of Mexican financial institution Grupo Financiero Banorte…

Economists agree inflation may hit 5.5% this year

Inflation is here already. Prices of goods are increasing and consumers are starting to notice it. The federal response due to the coronavirus health crisis caused an extra liquidity in the system and the monetary base is expanding at record levels. As a consequence, economists agree that inflation may rise up to 5.5% at the end of 2021 but are still uncertain…

The pandemic’s boost to online sales: A one-time event or a new normal?

The FRED graph above shows online retail sales. It’s no surprise these sales have been steadily increasing, even if there are a few rough patches during recessions. And it’s also completely expected that the pandemic provided a large boost to e-commerce over on-site retail. The question is whether this is a temporary boost that will subside once the world returns to…

PMG buying shuttered Johnson and Wales North Miami campus, planning redevelopment

The Johnson and Wales campus and PMG principals Kevin Maloney and Ryan Shear (PMG) Property Markets Group is making a big play in North Miami. The New York-based luxury condo and apartment developer is buying the shuttered, 25-acre Johnson and Wales campus, with plans for partial redevelopment, according to city documents and a commercial…

Neighbor sues to short-circuit Jimmy Tate and Sergio Rok’s no-bid North Miami project

An aerial of the proposed development site and warehouse with Sergio Rok and Jimmy Tate The city of North Miami’s plan allowing developers Jimmy Tate and Sergio Rok to build a mixed-use project on two city-owned parking lots has hit a legal snag. The owner of a warehouse next door to the proposed development and its tenant are suing North Miami and TR…

AMS Hospitality, Black Salmon buy Circa 39 hotel in Miami Beach

A joint venture between The Allen Morris Company and Stormont Hospitality partnered with Black Salmon to buy a boutique hotel in Miami Beach, the second in a series of planned purchases together. AMS Hospitality Group and Black Salmon paid $25.5 million for Circa 39, a 97-key hotel at 3900 Collins Avenue, according to a press release. The Art…

Terra paid $32M for Bay Harbor Islands development site

Terra closed on a mixed-use development site along Bay Harbor Islands’ Kane Concourse for $31.5 million. David Martin’s Coconut Grove-based Terra had been under contract to purchase the property at 1177 Kane Concourse and closed on Wednesday, according to a news release from one of the sellers. The purchase comes on the heels of the Bay Harbor…

Investment firm makes $130M offer for 60-year-old Edgewater condo complex

Edgewater, a bayfront Miami neighborhood north of downtown, continues to attract big spenders. The latest, Beach Hill Capital Partners — a Miami-based investment firm led by Daniel Rotenberg — is offering $130 million for an older waterfront condo complex called Bay Park, The Real Deal has learned. The company submitted a letter of intent in mid-May for the…

Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties

So long, Bay Area: Adam Neumann is headed to South Florida. The WeWork co-founder and ex-CEO inked an off-market deal for two properties on the Bal Harbour Marina, just north of Miami Beach, for $44 million, the Wall Street Journal reported. The purchase comes roughly two months after Neumann sold his northern California estate for $22.4 million. Local…

The grand reopening: As restrictions lift, CRE markets race toward recovery

It wasn’t the pan-roasted halibut that drew a small crowd to Blu Mar on a recent Thursday afternoon. One after another, guests on the splashy Southampton seafood spot’s outdoor patio removed the face coverings they had been wearing for the better part of a year and tossed them into a fire pit, which was then doused with fuel and set ablaze to the tune…

Chart: Miami-Dade Commercial Real Estate Sales May 2021

The above chart shows the number of closed sales of Miami-Dade commercial properties, including both improved commercial property and vacant commercial land, that were booked in the Miami MLS for the two years ending May 2021. Last month, May 2021, was the second highest month over the prior two years, though still off somewhat from the…

Software firm Chetu buys Sunrise office property for $25M

Software provider Chetu paid $25 million for its new headquarters in Sunrise in Broward County. Chetu, now based in Plantation, bought the office property at 1500 Concord Terrace at the Sawgrass International Corporate Park, according to a news release. Chetu will move its headquarters there in the fall. The seller, 1500 Concord Terrace LLC…

Des Moines investment firm pays $26M for T-Mobile data center in Sunrise

A group tied to Principal Real Estate Investors picked up a T-Mobile data center in Sunrise for $26 million. Property records show an affiliate of Des Moines, Iowa-based Principal Real Estate Investors bought the property at 4850 Northwest 103rd Avenue from LPCH Florida Equities, tied to Dallas-based Lincoln Property Company. Lincoln Property’s data center division…

Harbor Group Sells Pembroke Pines Apartment Community for $223M

Harbor Group International LLC has sold a 700-unit apartment community in the Miami-Fort Lauderdale suburb of Pembroke Pines, Fla., for nearly $222.7 million, marking the metro’s largest recorded multifamily sale this year. The Class A property, City Center on 7th, spans 40 buildings near the intersection of Pines Boulevard and Palm Avenue. Harbor Group….

Pebblebrook Buying Florida Margaritaville Resort For $270M

Bethesda, Maryland-based Pebblebrook Hotel Trust, a publicly traded REIT that owns 51 hotels in the U.S., announced Wednesday that it will acquire the 18-story, 369-room Margaritaville Hollywood Beach Resort in Hollywood, Florida, for $270M. The sale price amounts to more than $731K per room. The seller, Denver-based KSL Capital Partners, bought the…

Pebblebrook buying Margaritaville Hollywood Beach for $270M

Pebblebrook Hotel Trust is buying Margaritaville Hollywood Beach Resort for $270 million, which would be the biggest South Florida hotel sale this year. The real estate investment trust is in contract to acquire the 369-key Jimmy Buffett-inspired resort at 1111 North Ocean Drive in Hollywood, according to the company. Pebblebrook, one of the country’s largest…

Aimco spinoff buys Harbor Group’s Pembroke Pines apartments for $223M, marking largest South Florida multifamily sale this year

Harbor Group International sold a 700-unit apartment complex in Pembroke Pines for nearly $223 million, marking the largest multifamily deal in South Florida this year. Norfolk, Virginia-based Harbor Group sold City Center on 7th to Air Communities, an entity linked to the real estate investment trust Aimco, The Real Deal has learned. AIR Communities…

Furniture wholesaler pays $9 million for Hollywood distribution facility

A California home furniture wholesaler bought a Hollywood industrial building to serve as a distribution facility for $9.1 million. Records show Los Angeles-based VIG Furniture bought the property at 3600 North 29th Avenue from TMS Hollywood Properties, which is tied to RS Trading Company. The 75,988-square-foot building was constructed in 1969…

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June 23, 2021

Chart: Miami-Dade Commercial Real Estate Sales May 2021

Miami MLS Number of Sales from June 2019 to May 2021 for a) Commercial, Industrial or b) Commercial, Business, Agricultural, or Industrial Vacant Land within Miami-Dade County, Florida

The above chart shows the number of closed sales of Miami-Dade commercial properties, including both improved commercial property and vacant commercial land, that were booked in the Miami MLS for the two years ending May 2021. Last month, May 2021, was the second highest month over the prior two years, though still off somewhat from the prior blistering pace of March, but was nonetheless in the upper end of a fairly range of sales in the past 24 months. Note that this is only for sales booked in the Miami Multiple Listing Service (MLS), which does not record all commercial property sales. It does, however, record many of them.

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June 21, 2021

Miami Commercial Real Estate News June 16, 2021: Edgewater Developments Aplenty; Miami Shores MXU Breaks Ground as Multifamily Trades; More…

Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach

Fuse Group Investment acquired the storied Security Building in downtown Miami and plans to sue WeWork over allegedly vacating its offices in violation of the lease, The Real Deal has learned. The 17-story, historic building at 117 Northeast First Avenue was under a foreclosure action against the previous owner, Security Building AR Owner LLC. Fuse Group…

All in on Miami: Kushner pays $21 million for Edgewater site of planned apartment tower

Kushner Companies paid $20.5 million for a slice of an assemblage in Miami’s Edgewater neighborhood, more than two years after going into contract on the property, The Real Deal has learned. Investor Enrique Manhard and his partners sold the 0.75-acre piece of a larger assemblage, at 2000 Biscayne Boulevard, to New York-based Kushner, led by Charles…

Melo joins Miami condo craze with two-tower Edgewater project

Melo Group is launching condo sales of one of two towers on a site it has been assembling for more than a decade in Miami’s Edgewater, The Real Deal has learned. The Melo family, which has largely focused on building rental towers in recent years, released information to brokers on its next project, Aria Reserve Miami. The two-tower, roughly 800-unit…

Arch, Infinity JV to build mixed-use multifamily tower in Miami’s Edgewater

Arch Companies and Infinity Real Estate are partnering to build a mixed-use multifamily project in Miami’s Edgewater, across the street from their 2500 Biscayne tower. The two New York firms plan to develop the more than 1-acre assemblage at 2501 Biscayne Boulevard, most recently home to Latin Cafe 2000. The property sold for $13 million in 2017 to an entity…

Investor buys multifamily complex near Miami Shores for $15M

Investor Leon Ojalvo bought the lakefront Blue Lake Village Apartments near Miami Shores for $15 million. Ojalvo, of Miami-based investment firm Liberty Base Investments, bought the 106-unit community at 1205 Northwest 103 Lane from an entity tied to investor Fidel Yero, according to the seller’s broker. The deal breaks down to $141,509 per unit. Jacob…

State Attorney moving to River Landing in what could be $108 million lease

Leaky bathrooms, malfunctioning air conditioning, faulty elevators, and a flooded parking garage. Those are some things that staff at State Attorney Katherine Fernandez Rundle’s office will say goodbye to in about six months, when they move into new space at River Landing Shops & Residences. The arrangement will benefit both tenant and landlord…

FPL is Offering Commercial Property Owners EV Fast Charger Stations at No Cost

Florida Power and Light (FPL) recently reached out to me to inquire as to who I might know that could be interested in having FPL install a few electric vehicle (EV) fast charging stations at no cost. FPL will provide the EV chargers and cover the installation and maintenance. There also note that there would be no net impact on electricity costs. They are looking…

Air urban mobility set to take off in Miami; passenger drones coming soon that you think

The Miami Parking Authority and the Miami-Dade County Department of Transportation and Public Works are already thinking about how to integrate emerging urban air mobility into the transportation ecosystem in Miami.  Air mobility of passengers is closer than we might think, “it is something that would be here within the next two to three years,” said…

CIP Miami Springs, LV Lending Break Ground on 120,225 SF Mixed-Use Project

CIP Miami Springs and LV Lending have broken ground on Miami Springs Town Center, a 120,225-square-foot mixed-use project located at 1 Curtiss Parkway in Miami Springs, about 10 miles outside of downtown Miami. The project is scheduled to be complete in the second quarter of 2022. Designed by Cabrera Ramos Architects, Miami Springs Town Center will feature…

Miami Office Market Update: Rising Demand, Falling Vacancy Rates

Miami has been reaping the benefits of migration trends for quite some time, becoming one of the nation’s fastest-rising cities. According to CommercialEdge data, the market encompassed some 7.7 million square feet of vacant office space as of May and a vacancy rate of 14.6 percent, falling below the 15.3 percent national average. Miami is dealing with…

Related Group, Starwood Team Up With Baccarat-Branded Condo Project In Miami

Jorge Pérez’s Related Group and Barry Sternlicht’s SH Hotels & Resorts will be working together on a project for the first time with a Baccarat-branded residential project in Miami’s Brickell neighborhood. Baccarat makes crystal and has been in existence since 1764. A Baccarat Hotel & Residences at 53rd Street and Fifth Avenue in New York opened in 2015 with…

Allapattah Residents Fight For A Seat At The Table As City Makes Development Decisions

Allapattah is a primarily Latino, working-class neighborhood in Miami, with one section called Little Santo Domingo for its influx of residents from the Dominican Republic. In the past few years, as land prices in trendier neighborhoods like Wynwood and Brickell shot up, Miami developers have turned their attention there. A funky project with units on stilts, designed…

Despite big gaps, Miami tourism passes pre-covid levels

Miami-Dade’s tourism industry is surpassing many comparable 2019 statistics despite a glaring lack of international, convention and cruise travel. At the Greater Miami Convention & Visitors Bureau’s State of the Tourism and Hospitality Industry’s May breakfast, experts predicted summer hotel occupancy highs would approach summer 2019 lows.

EB-5 program set to expire at the end of June

A U.S. visa program that gave green cards to investors and was popular among real estate developers, is set to expire, with no clear plan for an extension. As it stands, the EB-5 program allows foreign investors in the U.S. who put at least $900,000 into a business that creates 10 or more jobs to apply for permanent residence. It’s now due to expire at the end of June.

Canadian finance firm to relocate headquarters, 450 jobs to Miami

A Canadian firm seeking to relocate its global headquarters to Miami and create 450 high-paying jobs got a go-ahead Tuesday to receive $167,500 through a Miami-Dade incentives program. Dallas was competing for the headquarters. The global wealth and asset management firm has vowed to spend $5 million on a 45,000-square-foot office and by 2028 create the…

Nuveen Nears Completion of $55M Renovation at Three Office Properties in Miami

Nuveen Real Estate is nearing completion of renovations at three of its office properties in Miami. The assets are located at 801 Brickell and 701 Brickell in the city’s Brickell financial district and at Waterford Business District, a 250-acre office hub that Nuveen co-owns with Allianz Real Estate. The capital improvements total $55 million in value and include digital…

Chart – Inflation Watch May 2021: Rise in Inflation Expectations Pauses at Elevated Levels; 5-Year TIPS Spread Indicating 2.57%

Federal Reserve Bank of St. Louis, 5-Year Breakeven Inflation Rate, commonly referred to as the TIPS Spread, a measure of expected inflation derived from 5-Year Treasury Constant Maturity Securities and 5-Year Treasury Inflation-Indexed Constant Maturity Securities, for the 5 years ending 5/31/21 Above is the chart for the 5-Year breakeven inflation…

Dear Mr. President: Landlords urge Biden to let eviction ban expire

Throughout the pandemic, landlords and real estate trade groups have filed lawsuits seeking to end the federal eviction ban. So far, none has succeeded. Now, with the moratorium set to end on June 30, property owners are asking the Biden administration not to issue another extension. Twelve organizations representing landlords, brokers and developers sent a…

Miami’s First Large-Scale Opportunity Zone Project Begins Leasing

Miami-based multifamily developer The Estate Cos. and PTM Partners, a real estate investment and development firm with a focus on qualified opportunity zones, announced Monday that they have launched leasing at Soleste Grand Central in Overtown, which they described as Downtown Miami’s first large-scale opportunity zone project. Scott Meyer, chief…

Mall REIT Washington Prime Group files for Chapter 11 bankruptcy

In November, with mall owners getting crushed, Washington Prime Group CEO Lou Conforti said that bankruptcy was off the table. But in March, it was reported that the mall REIT was preparing for the filing. Now it has done the deed. Washington Prime Group filed for Chapter 11 bankruptcy Sunday. The company has secured $100 million of funding for day-to-day…

Related Group’s condo kings expand their realm

Getting burned twice in Las Vegas didn’t kill Related Group’s dream of national expansion. But it taught the megadeveloper the importance of boots on the ground. Miami condo king Jorge Pérez and his son Jon Paul are expanding their Related Group with a $13 billion pipeline of projects throughout the Americas, their boldest move beyond Florida since…

HFZ Capital off the hook for $6M in failed Shore Club South Beach deal

HFZ Capital Group is off the hook from paying $6 million to the planned operator of the Shore Club in South Beach, following litigation tied to the companies’ failed deal. HFZ Capital Group wanted to redevelop the property at 1901 Collins Avenue in Miami Beach into a condo-hotel, and signed luxury Brazilian hospitality brand Fasano to manage the revived…

TPG nabs Miami AC Marriott, Hampton Inn in Edgewater for $61M

TPG Real Estate Partners bought two hotels in Miami’s Edgewater neighborhood for $61 million. Investor TPG, through an affiliate, bought the AC Hotel Miami Midtown at 3400 Biscayne Boulevard and the next-door Hampton Inn & Suites at 3450 Biscayne Boulevard, records show. TPG bought the properties through its national…

Drive Shack bringing Puttery socializing and golf entertainment concept to Wynwood

Drive Shack Inc. (NYSE: DS), a leading owner and operator of golf-related leisure and entertainment businesses, announced today that it will bring Puttery, its newest competitive socializing and entertainment golf experience to Wynwood, an eclectic neighborhood in the core of Miami, Florida. Located approximately two miles from downtown Miami…

Moishe Mana expands downtown Miami assemblage with $27M purchase

Moishe Mana, the biggest private real estate owner in downtown Miami, bought two more buildings for $27.2 million. The properties add to his massive assemblage aimed at creating a tech hub. Records show 41 Flagler Realty, which is linked to Mana’s Wynwood convention center, bought the properties at 62 Northeast First Street and 41 East Flagler Street from…

Grove Isle legal battle ending, as developer rebrands planned waterfront condo project

After winning an appeals court decision that caps a lengthy legal battle, the developer of The Markers Grove Isle is moving forward with construction, and rebranding the planned waterfront condominium project as Vita. Construction is expected to begin in early 2022 after design tweaks, said John Shubin, the attorney for the developer, Grove Isle Associates, LLP.

North Miami studios, home to “Miami Vice” and “The Birdcage,” sells to developer that plans mixed-use project

North Miami Studios and two productions, “The Birdcage” and “Miami Vice” (Getty) The production studios, once home to “The Birdcage,” “Miami Vice,” “Something About Mary” and a number of other films and television shows, sold to a developer that plans a mixed-use project… paid $10.5 million for the 2.8-acre property at 12100 Northeast 16th Avenue in…

The share of US companies planning to slash their office space is plummeting

US companies that planned to downsize their office real estate during the pandemic are now rethinking their plans. Only 9% of large US companies, defined as 10,000 employees or more, anticipate their office portfolios will get “significantly smaller” over the next three years, according to a new report from CBRE, a commercial real estate company. That’s down from…

The Top 10 Tallest Buildings in Miami (You Can Live In)

If you’ve been visiting Miami over the years, one thing you’ve probably noticed is the buildings keep getting taller, and the skyline keeps growing. Ever since the FAA relaxed its height restrictions more than six years ago, Miami’s skyline has continued to elevate itself with glimmering designs of glass and light. The tallest residential building in Miami as of this post…

Seattle investors buy Fort Lauderdale, Oakland Park apartment buildings for $7M

Seattle-based investors bought three multifamily buildings with 48 units in Broward County for $7.25 million. Schulman Properties, based in Las Vegas, Nevada, sold the two buildings at 999 West Prospect Road in Oakland Park and the building across the street at 1007 West Prospect Road in Fort Lauderdale to Delaware-registered Jass 2 LLC, records show. The deal…

Cortland buys Deerfield Beach multifamily complex for $66M

Cortland bought a 226-unit Deerfield Beach multifamily complex for $66 million. Atlanta-based Cortland bought the 226-unit Indigo Station at 67 Southwest 12th Avenue from Palm Beach Gardens-based Ram Realty Advisors, records show. The deal breaks down to $291,814 per unit. Ram Realty, led by Casey Cummings, buys, renovates, manages and develops…

Hudson Capital, Barron Commercial tycoons buy Oakland Park shopping center for $10M

Real estate honchos Steven Hudson and Charles Ladd Jr. bought the Primavera Plaza in Oakland Park for $10 million, their second retail purchase in the city in as many weeks. Hudson, of Hudson Capital Group, and Ladd, of Barron Commercial Development, bought the property at 830 and 840 East Oakland Park Boulevard from ATID Investments, managed…

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June 16, 2021

FPL is Offering Commercial Property Owners EV Fast Charger Stations at No Cost

FPL EVolution EV Fast Charging Stations

Florida Power and Light (FPL) recently reached out to me to inquire as to who I might know that could be interested in having FPL install a few electric vehicle (EV) fast charging stations at no cost. FPL will provide the EV chargers and cover the installation and maintenance. There also note that there would be no net impact on electricity costs.

They are looking for commercial property owner partners that can dedicate four to six parking spaces that own locations located in close proximity to the highway and local amenities. They reference a number of potential advantages. A property and its tenants can attract new customers as EV usage grows. It can offer more value to its customers and employees. There also is the Prius effect, also referred to as “conspicuous consumption,” that of publicly representing a commitment to sustainability, enhancing a brand’s image and building customer loyalty. Also, FPL has an app, FPL EVolution, that would promote the location as an EF fast charging station.

This call came within a couple of weeks of newly stated aggressive goals by the Biden administration and the announcement by General Motors that they would be 100% EV by 2030. Clean transportation in Florida appears to be on the fast track.

EV. It is coming. Tesla is increasingly not alone, and now fast charging stations are being aggressively rolled out. One has to wonder what this EV push implies for gas station economics.

Interested for your property? View their brochure for more info. Don’t hesitate to reach out to me for an introduction to my contact at FPL for their EVolution Urban Charging initiative. I’m more than happy to help with such efforts.

June 16, 2021

Chart – Inflation Watch May 2021: Rise in Inflation Expectations Pauses at Elevated Levels; 5-Year TIPS Spread Indicating 2.57%

Federal Reserve Bank of St. Louis, 5-Year Breakeven Inflation Rate, commonly referred to as the TIPS Spread, a measure of expected inflation derived from 5-Year Treasury Constant Maturity Securities and 5-Year Treasury Inflation-Indexed Constant Maturity Securities, for the 5 years ending 5/31/21

Above is the chart for the 5-Year breakeven inflation rate, commonly referred to as the TIPS spread, for the five years ending May 31, 2021.A calculation of the difference in the yields, i.e. the spread, between United States Treasury bonds and Treasury Inflation-Protected Securities (TIPS) of the same maturity, this spread is a useful and oft-quoted measure of expectations for (CPI) inflation in the financial markets. The spread indicates expected inflation, of interest to investors in commercial real estate – more on that below – and for that matter any asset class.

As one can see in these charts, the 5-year TIPS spread has leveled off at about 2.7% after peaking at 2.72% during the month of May. Further, eyeballing it, May continues a period of leveling off in the 2.5-2.7% range that began in March following an ascnet from near 0% as the pandemic broke in early 2020 and from the 1.5%-ish level it hovered at in the couple of years before COVID-19. Thus, investors are putting their money on just over a 2.5% inflation rate for the next five years.

“Inflation is the crabgrass in your savings.”

~Robert Orben

Not Just Opinions, Real Money is on the Line

Real money is at stake with these spreads. TIPS pay interest every six months, based on a fixed rate that is calculated by multiplying the adjusted principal by one-half the calculated interest rate (i.e. half a year’s worth of inflation at that rate). Thus, a “bet” that an investor makes in with these bonds has real financial implications. If actual inflation is higher than priced in the markets, a TIPS buyer will make more that a straight treasury buyer. If it is lower, that TIPS buyer will make less. How much money is at stake? In 2017 Morningstar pegged the market at $1.2 trillion. Thus, every 1/10% difference is a $1.2 billion swing. That is real money by my count.

Generally on Inflation and Commercial Real Estate

What is the impact of inflation on commercial real estate? In the near term, higher inflation tends to bring higher interest rates. Higher interest rates are a negative for commercial real estate. Higher rates means larger debt service payments, reducing the buying power of purchasers, and negatively impacting deal economics. It also means makes fixed income investments a more competitive investment, likely pulling capitalization rates (cap rates) up, and thus prices down. Over a longer period, however, the prospect of inflation leads to a principal benefit of commercial property investment, that of its potential as a hedge against inflation. After all, more inflation should lead to higher rent, at least in time.

MIT published an excellent whitepaper on real estate’s ability to keep pace with inflation with data to 2016. They looked at then tendency of retail, multifamily, industrial, and office income and values to keep pace with inflation. The best at keeping pace income-wise was retail, with rent growth of 102% of inflation. Office was the worst performing at a quite dismal 18%. Values across the property types were more consistently kept pace, with retail again doing the best appreciating at 107% of inflation, office again the worst at 74% of inflation. I’ll speculate that the fairly drastic difference between income and value keeping pace with inflation is driven by vacancy. If you’re interested in the topic, read the paper.

Expectations for inflation also come into play with lease structure and due diligence. A lease structure with a fixed rent increase becomes less attractive for a landlord with higher inflation expectations. Similarly, a commercial property being acquired with existing leasing in place that have fixed or capped rent increases looks less attractive as inflation expectations increase. Also, a property being purchased with fixed rate financing will look increasingly attractive if a buyer anticipates inflation fueled increases in income. Inflation, in short, is very important to commercial property investors.

~

Considering commercial real estate for its inflation hedging possibilities? Check out Miami area listings in this HawkinsCRE.com site. You can view all the properties listed on the commercial MLS in Miami-Dade county, or view only certain types: industrial ; multifamily ; office ; retail ; vacant land . You can also view properties filtered for their municipal zoning code or view properties by zip code or by their general location/region in Miami-Dade. Also available are office condo listings by building and multifamily properties displaying and sorted by price per unit. Even better, contact us to help you find the right property to acquire. With our other subscription resources, our proprietary database of off-market properties.

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June 15, 2021

Miami Commercial Real Estate News June 9, 2021: Shopping Center Near FIU Sells for $19 Million, Aventura Office Complex for $93 Million; More…

Core pays $19M for shopping center near FIU

Core paid $19 million for a shopping plaza near Florida International University’s Modesto A. Maidique Campus in west Miami-Dade County. The Miami-based real estate investor, through an affiliate, bought the retail property at 9720 Southwest Eighth Street from two sellers tied to Miami-based Orion Real Estate Group, records show. The seller bought the…

‘We Can’t Raise Rents Fast Enough’: South Florida Multifamily Market Soars (But So Do Costs)

In South Florida, where the population is booming and homeownership is out of reach for many, multifamily developers have been able to command high rents in their fully leased apartment complexes. But building new projects is challenging because land is only available between the ocean and the Everglades, and savvy sellers are not letting go of their…

Lynd pays $40M for Miami Gardens apartments

Lynd bought a Miami Gardens apartment complex for $40.1 million, marking the group’s second South Florida multifamily purchase this year. San Antonio, Texas-based Lynd purchased the 234-unit Parc Place Apartments at 17600 Northwest Fifth Avenue in an off-market deal, according to a news release. The price breaks down to $171,282 per unit.

Biden ends talks with GOP on infrastructure, turns to Plan B

Following a week of fruitless negotiations with Senate Republicans to fund a $1 trillion infrastructure plan, President Joe Biden ended the talks without a deal. The failed bargaining efforts concluded with a Tuesday call with Sen. Shelley Moore Capito of West Virginia, the lead Republican negotiator, the New York Times and other outlets reported. Republicans had long been…

Clevelander wins lawsuit against Miami Beach over alcohol rollback

Miami Beach’s attempt at curbing late-night partying by ending alcohol sales earlier was overturned in court. The decision is a win for businesses that opposed the rollback but bad news for developers who say the city needs to reinvent its image in the entertainment district. The Clevelander South Beach, a hotel with a restaurant and bar known for its all-day…

Miami Condo Building To Install World’s Largest, Tallest Automated Parking System

A New Jersey-based company has been contracted to install a robotic parking system in a 46-story condo building in Miami. It will be the largest and tallest automated guided vehicle, or AGV, parking system in the world, according to a May 26 announcement from Park Plus, which is taking over the job after a different parking provider allegedly installed a faulty…

Terra puts Bay Harbor Islands mixed-use dev site under contract

Terra has a development site along Bay Harbor Islands’ Kane Concourse under contract, with plans for a residential, office and retail project. Coconut Grove-based Terra, led by David Martin, intends to purchase the 2-acre vacant property at 1177 Kane Concourse from NR/Wharton Kane Concourse Property Owner, according to a letter filed with the town.

PMG Developing Condo Project With Miami ‘Ultraclub’

The $40M venue E11even Miami has been described as a strip club, “technically not a strip club,” a club where dancers just happen not to have tops on and “an R-rated version of the alien bar in the opening sequence of Star Wars, but add in a great sound system with strippers.” Its website defines it as an “ultraclub.” Whatever the definition, it is popular.

Black Lion doubles down on Miami with purchase of Wynwood Arcade, Amara at Paraiso

Robert Rivani’s Black Lion Investment Group purchased the Wynwood Arcade and the nearby Amara at Paraiso property in Miami’s Edgewater for more than $25 million combined, as the firm doubles down on South Florida. The two sales mark another sign of rising demand for retail and restaurant properties in Miami. East End Capital sold the Wynwood…

Daniel Sundheim’s D1 Capital Partners inks 10-year Coconut Grove office lease

Daniel Sundheim’s D1 Capital Partners is the latest investment firm to plant a flag in Miami. The New York City-based hedge fund signed a 10-year, 25,000-square-foot office lease at Related Group’s new building in Coconut Grove, where the developer is now based. The building, at 2850 Tigertail Avenue, is now fully leased, according to a release. D1 lost $4 billion, or…

Miami-Dade gets rent check from casino giant Genting for $10 million

Miami-Dade got a big check in the mail last week: $10 million from the Genting Group as part of the Malaysian casino giant’s nearly century-long rental of space above an Omni bus station north of downtown Miami. The one-time payment precedes planned construction of a 36-story hotel and retail center on Northeast 14th Terrace. The county and Genting…

Coral Gables turning up the volume at downtown eateries

A Coral Gables ordinance to allow outdoor live amplified music on private ground level for private establishments in the Central Business District has gotten a preliminary go-ahead.  During Tuesday’s city commission meeting, city officials voted 4-1 to move forward with an ordinance that would create an additional exemption to the city’s noise ordinance allowing…

Property Appraiser lists Miami-Dade taxable values as up 3.6% countywide

Countywide taxable property values in Miami-Dade rose 3.6% last year, according to an estimate by Property Appraiser Pedro Garcia. The estimate includes both new and old construction. Properties that existed a year ago as a group rose 1.9% over the period, an increase of $6.28 billion in value, Mr. Garcia’s estimate shows. The rest of the increase was attributed…

Battle for their apartments: Hamilton on the Bay tenants in Miami’s Edgewater fight Aimco’s lease terminations

Hamilton on the Bay Tenants of a prized multifamily property in Miami’s Edgewater are fighting back after their landlord notified them that their leases are being terminated, The Real Deal has learned. Tenants of the Hamilton on the Bay apartment building are being asked to leave by July 16, according to a lease termination letter obtained by TRD. Aimco…

Miami Beach board approves pharmacy for North Beach project

Developer Aria Mehrabi’s future 12-story mixed-use project will now include a pharmacy, in spite of a recommendation from Miami Beach’s planning department to reject the request, due to its proximity to another drugstore. By a vote of 6 to 0, Miami Beach’s Zoning Board of Adjustments on Friday approved variances that will enable a CVS pharmacy to…

Ubiica, Maven buy Coral Gables office building, parking lot for $9 million

Ubiica and Maven Real Estate bought a Coral Gables office building and parking lot for $8.7 million. The partners bought the two-story property at 1533 Sunset Drive and the 10,000-square-foot parking north across San Ignacio Avenue, said Alejandro Salazar, Ubiica’s manager. The seller is Winter Garden, Florida-based Windsor Investments, managed by…

Miami among cities where the most self-storage space was built in the past decade

The self-storage sector added about 300 million square feet of new supply over the last decade, as the number of apartments grew and the size of each unit fell. People in the self-storage industry often talk about the “four Ds” that drive demand for their business: death, divorce, dislocation, and downsizing (or disaster, or density, depending on who you ask). The past…

Miami Makes List of Top 10 Markets for Self Storage Rent Growth

The self storage sector has established itself as a strong performer, despite troublesome market conditions over the past year. Thanks to its countercyclical nature and low sensitivity to changes in the economy, the sector could capitalize on the demand fueled by the pandemic-induced relocations and displacements across the country, leading to…

8.5-Acre Medley Development Site In Booming South Florida Industrial Market Purchased

Hilco Redevelopment Partners (HRP), a unit of Hilco Global, just announced the purchase of an industrial development site located at 11002 Northwest South River Drive in Medley. The 8.5-acre property is part of a larger 25-acre Superfund site which has previously undergone corrective action. HRP has current plans to develop the site into a state-of-the-art…

What Joe Biden’s infrastructure plan holds for real estate

President Joe Biden offered a series of concessions to Senate Republicans this week, the White House said, as he negotiates passage of his $1 trillion infrastructure deal — a plan that would have huge implications for the real estate industry. In an Oval Office meeting, Biden proposed that a new corporate version of the alternative minimum tax would be imposed…

Economic recovery quickens from crawling to merely slow

The economic recovery can’t get here fast enough. Employers added back 559,000 jobs to the U.S. economy in May, more than double the number in the previous month. While that is confirmation that the economy is recovering from the pandemic, it’s coming back at a slower pace than economists had predicted. The gains were “lower than anticipated…”

Restoration Hardware to open Miami Design District store

Restoration Hardware, now known as RH, is planting a flag in the Miami Design District, The Real Deal has learned. The high-end furnishings retailer inked a lease at Apollo Commercial Real Estate Finance and the Comras Company’s buildings on the west end of the Design District, according to sources. Michael Comras confirmed that Restoration Hardware…

Retail Real Estate Leases – Q2 2021

The South Florida retail real estate market is witnessing quite a bit of activity despite the influence and presence of the pandemic, and it seems it is turning the page. There are several factors for this, but two primary reasons are: 1) Florida is back in business and has been open earlier compared to other…

The Fed: A V-shaped recovery : Tracking GDP in the G-7 through COVID-19

The pandemic-driven recession started in the first quarter of 2020. After a  year, it appears the recession is nearly at an end. The FRED graph above tracks this downturn in GDP for countries in the G-7, all indexed to 100 in Q4 2019. The full legend is large, so we’ve removed it from this graph. Simply mouse over the graph to read the series titles and identify…

The Fed: Beige Book Contacts Figure Labor Shortages Will Improve by Fall

Some Atlanta Fed business contacts expect worker shortages, particularly for lower-wage jobs, to become less troublesome by the fall. Already, pressure to increase wages across the Southeast picked up from April through the middle of May, most notably for low-skilled positions, according to the new Beige Book report of regional economic conditions…

Miami board delays vote on revised Little Haiti mixed-use project

The development team of Sabal Palm Village aims to replace low-rise Design Place with a high-rise community with public spaces and bike paths. For the ninth time, the city of Miami’s Planning Zoning and Appeals Board deferred voting on a controversial mixed-use, high-rise project that would exceed 5 million square feet. It’s slated to replace the 512-unit Design…

Despite Shutdown, Brightline Still Drives South Florida’s ‘Rail Estate’ Market

A pandemic-driven suspension of the Brightline train service has endured for more than a year, yet it hasn’t derailed real estate investment near its South Florida stations. Brightline, which launched its passenger rail service in 2018, currently connects Miami to Fort Lauderdale and West Palm Beach, at downtown train stations in each city. Service, which was suspended…

Blackstone, Starwood up bid for Extended Stay America

Blackstone Group and Starwood Capital Group are once again trying to woo Extended Stay America’s shareholders. The two firms announced Tuesday that they would increase their offer to buy the hotel operator to $20.50 per share, Bloomberg News reported. In March, they agreed to buy the company at $19.50 per share. But some of Extended Stay’s shareholders…

Investors pour $10B into life sciences real estate this year

The future of the office sector remains largely uncertain at this point post-pandemic, but there’s one segment that continues to see huge gains. Investors have spent more than $10 billion on buying life sciences buildings this year, Bloomberg News reported, citing data from Real Capital Analytics. That’s about 4 percent of all global commercial real estate transactions…

This startup creates community to help landlords retain tenants

A property tech startup is betting that New Yorkers, after a year spent huddled inside, could use a little help meeting and mingling with their neighbors. The firm, Venn, just raised $60 million in venture capital — funds earmarked, in part, to build out its New York footprint. The company launched its eponymous app in 2017 as a hyperlocal social network…

South Florida’s Outlying Markets, From Belle Glade To Treasure Coast, Heat Up

For years, economic developers in Palm Beach County pitched the rural Glades region as an up-and-coming area for industrial development. And for years, splashy deals failed to materialize. That recently changed, when Apopka-based Finfrock, a maker of precast concrete buildings, bought 94 acres on the site of a former state prison in Belle Glade, located just off…

Miami commissioners approve West Grove bed-and-breakfast

A bed-and-breakfast complex planned for the West Grove is moving forward, despite neighboring homeowners’ objections to rezoning the development site due to fears of gentrification. The Miami City Commission last week voted in favor of changing the zoning for six lots near 3227 Charles Avenue in Miami’s Coconut Grove from single-family residentia…

Aventura office complex trades for $93M

Real estate investor and motivational speaker Grant Cardone bought the Harbour Centre at Aventura office complex for $93 million, The Real Deal has learned. Cardone bought the offices at 18851 Northeast 29th Avenue next door to his 10X headquarters. He envisions merging the two properties into a walkable mixed-use campus with affordable housing, he said.

Michael Swerdlow’s Block 55 in Overtown lands nearly $8 million affordable housing grant

A Michael Swerdlow-led mixed-use project in Miami’s Overtown neighborhood at 249 NW 6th Street is getting local government financial assistance for its affordable housing component. Miami city commissioners on Thursday unanimously approved awarding an additional $2.5 million grant to Block 55, after previously giving the project $5 million last year.

Miami-Dade looks to a Center for Genetics of the Americas

While Miami-Dade is already working to attract genetics-focused organizations and businesses, more can still be done, including the possible creation of a Center for Genetics of the Americas, Mayor Daniella Levine Cava’s administration says. The genetics industry – which encompasses life science, healthcare, agriculture and genomic research, among others…

Mixed-income housing across from Marlins Park wins OK

A plan for new construction of an attainable mixed-income residential development called Paseo del Rio earned the praise of a City of Miami review board. The seven-story, 182-unit building is planned for county-owned property at 1401 NW Seventh St., across from Marlins ballpark. The Urban Development Review Board unanimously recommended approval…

Underdeck connector to follow vast signature bridge/I-395 project

As Downtown Miami approaches another busy summer abuzz in construction, steady progress continues on the I-395/SR 836/I-95 Design-Build Project. An added benefit to improved freeway surfaces is the plan to reconnect areas to downtown, including Overtown, Edgewater and the Omni neighborhood. Miami commissioners approved the first step…

Micro-mobility infrastructure plan targets downtown Miami

A micro-mobility infrastructure project half funded by electric scooter fees could be coming to downtown Miami, adding about three miles of protected bicycle and scooter lanes and laying the groundwork for more lanes in the future. The green-patterned pavement lanes, which would come with concrete barriers separating them from traffic, would run from…

Lack Of Land Has Industrial Developers Looking To Take Over Florida’s Golf Courses, Lakes And The Everglades

As senior vice president for Duke Realty, Stephanie Rodriguez oversees a portfolio of industrial properties in South and Central Florida, a geography with limited space and shrinking new development options. “We’re all fighting over the same pieces of dirt,” Rodriguez said during a May 12 Bisnow South Florida Industrial Update event. “Industrial is the…”

Chart: Miami Commercial Real Estate Sales to List Price Ratio April 2021

January 2011 to April 2021 Sales to List Price Ratio for Commercial/Industrial Property within Miami-Dade County, Florida and Priced from $1 Million to $10 Million as Recorded in Miami MLS The chart above shows the sales to list price ratio as reported by the Miami MLS for improved commercial real estate (MLS classification: commercial…)

Ugo Colombo’s The Collection nabs $65M construction loan for second Coral Gables dealership

Ugo Colombo’s The Collection luxury dealership scored a $64.5 million construction loan for a second Coral Gables location. The Collection, led by Colombo and president and CEO Ken Gorin, is building the Jaguar and Land Rover dealership on about 2 acres at 125, 155 and 163 South Dixie Highway. JP Morgan Chase Bank is the lender, records show. Jaguar sales will be transferred to the new location from The Col…

Mila Group, partners plan hotel and restaurants on Miami River site

A boutique hotel, beach club and two restaurants are planned for a Miami River site, four years after plans for a Sushi Samba eatery fell through. Miami Beach restaurateur Gregory Galy’s Mila Group, in partnership with developer Pacific Star Capital and a Spanish investor, bought the property at 40 Southwest North River Drive from an affiliate of the Melo Group…

LeFrak buys Normandy Isle apartments in Miami Beach for $25M

LeFrak bought the Marina Del Rey apartments in Miami Beach’s Normandy Isle for $24.5 million. The Finvarb family sold the 108-unit waterfront complex at 1006 and 1022 Bay Drive. The sale breaks down to 226,852 per unit. Calum Weaver and Garrett Pordes of Cushman & Wakefield represented the seller in the deal. Marina Del Rey, which varies in…

$24.5M Sale Arranged of Marina Del Rey Apartments in Miami Beach

Cushman & Wakefield has arranged the $24.5 million sale of Marina Del Rey, a 108-unit waterfront apartment community in Miami Beach. Calum Weaver, Garrett Pordes, Robert Given, Zach Sackley and Troy Ballard of Cushman & Wakefield represented the seller, Finvarb Group, in the transaction. An entity doing business as 1006 Bay Drive LLC was the…

Anatomy Opens New 15,000 SF Location at Regatta Harbour in Coconut Grove

Anatomy has opened a new location at Regatta Harbour, a 9.5-acre mixed-use development underway in Miami. Anatomy is a progressive fitness community that integrates exercise programing with wellness and beauty. The Regatta Harbour location will be Anatomy’s fourth location in South Florida… Regatta Harbour’s first tenant… at 3385 Pan American Drive

Black Lion Investment Group Acquires Amara at Paraiso Restaurant Property in Miami for $12.1M

Los Angeles-based Black Lion Investment Group has acquired a restaurant building in Miami known as Amara at Paraiso. The seller, Related Group, sold the property to Black Lion for $12.1 million. Fabio Faerman and Sebastian Faerman of Miami-based FA Commercial represented both parties in the transaction. Amara at Paraiso is a 12,300-square-foot…

Starved for relief: Restaurants seek $76B, far more than budgeted

The Small Business Administration is dishing out rent relief to restaurants, but many figure to go hungry. The demand for federal pandemic relief has far exceeded the amount of money available, so some restaurants, bars and other food businesses might not receive it, the New York Times reported. Restaurants could apply for relief starting May 3, and applications closed…

Miami Market Update: Development Pipeline Holds Steady

Miami’s under construction office stock has expanded to 2.4 million square feet by the end of April, registering a slight spike compared to March, according to CommercialEdge data, with most projects poised for completion by the end of the year. Under construction and planned stock amounted to 8.1 percent of the market’s total office footprint, down…

Flurry of Lease Deals Totals 70 KSF at Miami Tower

Three law firms and a federal government agency have signed a flurry of lease commitments totaling more than 70,000 square feet at Miami Tower located at 100 SE 2nd Street, Sumitomo Corp. of Americas’ landmark, 47-story office asset in downtown Miami. Gordon Rees Scully Mansukhani LLP inked a new, 9,726-square-foot lease at the I.M. Pei-designed skyscraper…

An Update on the South Florida Hotel Industry’s Post-COVID Recovery

COVID-19 caused a massive downturn in South Florida’s hotel industry, but an uneven recovery is underway  It goes without saying that COVID-related lockdowns and panic caused a significant slowdown in South Florida’s service economy. Tourism, conventions, and general business travel are vital to the region’s financial stability, given the money they bring in…

Brookfield buys Comcast-leased Miramar building for $29 million

Brookfield Property Group paid $29 million for a Miramar building that is fully leased to Comcast. Brookfield, through an affiliate, bought the property at 15800 Southwest 25th Street from 15800 Building LLC, managed by Arturo Alvarez Demalde of AD4 private equity firm in South Florida, records show. Steve Medwin and Nick Wigoda of Newmark were the…

Feldman Equities buys Fort Lauderdale office complex for $59 million

Feldman Equities bought the Pinnacle Corporate Park office complex in Fort Lauderdale for $58.9 million. The Tampa-based investor bought the two buildings at 500 and 550 West Cypress Creek Road from a fund managed by DRA Advisors in joint venture with Banyan Street Capital, according to a news release. The deal breaks down to $226 per square foot. Brokers for…

Hudson Capital, Barron Commercial honchos buy Oakland Park shopping center for $23M

Longtime South Florida developers Steven Hudson and Charles Ladd Jr. bought an Oakland Park shopping center for $23.4 million. Records show Hudson and Ladd, through an affiliate, bought the Festival Centre at 3400-3570 North Andrews Avenue from Sela LLC, managed by investor Amos Chess. The buyers secured a $12 million loan from Starwood Mortgage…

ShareMD buys Boynton Beach medical office building for nearly $7M

ShareMD bought a Boynton Beach medical office building for $6.5 million, as it continues to invest in healthcare space. Alpharetta, Georgia-based ShareMD bought the building at 2828 South Seacrest Boulevard from Delray Beach-based Redfearn Capital, according to a news release. Elliot LaBreche and Abbe Kind of Easton & Associates represented ShareMD. The 31,747…

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June 9, 2021