Miami Commercial Real Estate News April 24, 2024: Brickell Dolce & Gabbana Dev Site Trades for $60M; Miramar Office Properties Sold at 45% Loss; More…

Michael Stern pays $61M for Brickell site of Dolce & Gabbana supertall

As questions swirl about the future of Michael Stern’s Brooklyn supertall, the developer appears to be all in on Miami. Stern’s JDS Development Group paid $61.2 million for the half-acre site at 888 Brickell Avenue, where the firm plans a Dolce & Gabbana-branded condo-hotel tower, property records show. A company tied to Grupo Mezerhane, led by Mashud Mezzerhane…

New Renderings Revealed For Miami Tower Vying To Be Among Florida’s Tallest

The 70-story Okan Tower, which dwarfs all of Florida’s current skyscrapers, is being built at 542 N. Miami Ave., four blocks from the Kaseya Center. The tower, which is slated to deliver in 2027, will have a 316-key hotel and 236 short-term rental condos both with Hilton branding, 163 traditional condos and 64K SF of office space. The tower is the first U.S. development…

Related Group and GTIS Partners Announce Collaboration with Viceroy on 45-Story Brickell Condo Tower

Real estate leaders Related Group and GTIS Partners, in partnership with the luxury hospitality company Viceroy, have announced the development of Viceroy Brickell – The Residences (Viceroy Brickell). Located at 77 Southeast 5th Street in Miami’s Brickell neighborhood, this 45-story tower, already under construction, was initially envisioned as a rental project but has since…

ASG Equities Sells Retail Property in Miami’s Design District for $14M

New York City-based ASG Equities has sold a 4,500-square-foot retail building located at 7074 N.E. 40th St. in Miami’s Design District. Dacra acquired the property… for $14 million. The transaction marks the final step for ASG’s three-property portfolio that it has sold in recent months, the others being buildings at 80 and 101 N.E. 40th St. The company is actively developing…

Gindi’s ASG sells another Miami Design District building to Craig Robins and partners

A partnership led by Craig Robins continues expanding its market share in the Miami Design District, buying another retail building from the Gindi family’s ASG Equities. An affiliate of Miami Design District Associates acquired 70 and 74 Northeast 40th Street for $14 million, a press release states. The buyer is a joint venture between Robins’ Miami-based Dacra, L Catterton Real Estate…

Apple’s Coral Gables office hub becomes year’s biggest lease deal in Miami-Dade

Coral Gables continues to welcome world-recognized brands as Apple moves in The Plaza Coral Gables. “I think what’s exciting about Apple is that it is an expansion project,” said Mark Trowbridge, president and CEO of the Coral Gables Chamber of Commerce. “This comes on the heels of FIFA bringing their corporate headquarters here, which is a relocation project…

Fleischer Studios for fabled cartoons may be labeled historic

Local preservationists are working to secure historic designations for two 20th century landmarks to showcase and preserve Miami’s history for future generations. Today (4/25), the Miami City Commission is to review resolutions highlighting the historic significance of the Halissee Hall Gates and the Fleischer Studio. If approved, the measures would pave the way for…

Multinationals influx spurs Coral Gables economy

Coral Gables is gearing up for a bustling spring and summer season with events to promote local businesses and the influx of major multinational corporations such as FIFA, Ryder and Apple into the city. Nearing its 100th anniversary next year, Coral Gables is home to over 10,000 businesses and continues expanding as an international business hub. In preparation for…

Grupo Frali buys Edgewater dev site to complete full block assemblage

Grupo Frali purchased a development site in Miami’s Edgewater to complete a full block assemblage, but the firm doesn’t have any immediate plans for a project. An affiliate of Grupo Frali, a private investment firm based in Buenos Aires, Argentina, acquired a 20,240 square-foot vacant lot at 3047 Biscayne Boulevard, a press release states. With its purchase, Grupo Fali now…

Piece by piece, Coral Gables’ historic city hall restored

With an estimated $4 million of Coral Gables city funds allocated this year to restore city hall, next up are to replace windows and seal the exterior walls. Since city hall is a historic building, there is a process for every step and the different phases of renovations, said Vice Mayor Rhonda Anderson. “My last update on this was about three weeks ago when I said it takes four months…

Coral Gables’ mobility hub is immobile

Coral Gables city officials and the administration are still trying to find ways to soften the exterior and allocate the liability costs for the long-planned Coral Gables Mobility Hub. The last item regarding the mobility hub that was brought to the commission focused on its façade, Mayor Vince Lago said. “The mobility hub is expected to enhance our city’s revenue, with commercial…

Oak Row Equities Officially Breaks Ground On 2600 Biscayne Boulevard In Edgewater

Oak Row Equities has broken ground on 2600 Biscayne Boulevard, a 41-story tower in Miami’s Edgewater neighborhood that will offer a mix of multifamily residences and office spaces. Coastal Construction Group is tasked as the project’s general contractor. The design is spearheaded by the internationally acclaimed architecture firm Arquitectonica, with interiors by Portland…

Atlantic Pacific Cos. Breaks Ground on Affordable Housing Complex ‘Culmer Place’ at 800 NW Fifth Avenue in Miami

Atlantic Pacific Cos. has broken ground on Culmer Place, an affordable housing complex in Miami-Dade County. Florida YIMBY first reported on the multi-million-dollar project in March 2022. The seven-story building will offer 239 units, ranging from one-bedroom to five-bedroom layout plans. Residency would be available for those making 30 percent to 80 percent of the area…

After yearslong litigation, former lender wins lawsuit tied to Miami Design District dev site

A former lender of the failed project at the entrance to the Miami Design District and Midtown Miami won in court this week, likely closing the door on years of litigation surrounding previous plans for the property. Miami-based HES Group had planned to develop the site into Triptych Miami, a 475,000-square-foot project with a hotel, retail space, offices and parking…

Tecnoglass plans new Morningside HQ after acquiring dev site

Tecnoglass has big plans for a new headquarters in Miami’s Morningside after acquiring a shovel ready development site. An affiliate of Tecnoglass, an industrial glass manufacturer that last year moved to Miami from Barranquilla, Colombia, acquired a 0.6-acre assemblage at 5101 and 5125 Biscayne Boulevard, according to records and real estate database Vizzda.

Haimov lists Miami Gardens site for $25M, abandoning development plans

Haimov Group is listing a Miami Gardens development site for $24.5 million, after abandoning plans for a $200 million mixed-use project. Miami Beach-based Haimov, led by Igal and Aaron Haimov, is looking to sell a 3.6-acre vacant property at 17300 Northwest Seventh Avenue Road, a listing obtained by The Real Deal shows. Aaron Haimov did not immediately…

UHealth’s Largest Outpatient Medical Facility Tops Off at SoLé Mia In North Miami

UHealth—University of Miami Health System has announced the topping off of its largest outpatient medical facility, UHealth at SoLé Mia. This facility, addressed as 2111 Sole Mia Way, is part of the 184-acre master-planned community in North Miami, developed by Oleta Partners, a joint venture between developers LeFrak and Turnberry. Robins & Morton is the general contractor.

Foundation Pour Is Complete For 70-Story Okan Tower At 555 North Miami Avenue In Downtown Miami

Foundation pouring is complete on the site of Okan Tower, a 70-story mixed-use skyscraper under construction at 555 North Miami Avenue in downtown Miami. International property developer Okan Group recently celebrated this significant milestone for their highly anticipated development, which is set to become the area’s next major mixed-use megaplex. The 36-hour…

‘Palma Miami Beach Residences’ Set for 666 71st Street in Miami Beach

Construction could start on Palma Miami Beach Residences later this year. The 14-story condo would comprise 126 furnished units, with most one-bedroom and two-bedroom floorplans measuring 405 to 886 square feet. The South Florida Business Journal reports that there would also be multiple penthouses––some reaching 1,342 square feet. Communal amenities at Palma Miami…

The Gallery at West Brickell with 465 Apartments Topped Off, Being Painted

The Gallery at West Brickell has topped off and is being painted. Developer Related Group says on its website that the tower will be a “Class-A” mixed-income, mixed-use, and transit-oriented development located in the heart of Brickell. Groundbreaking for the project took place in September 2022. It is the the largest single-phase public/private project in the county…

Evictions surge at Hialeah’s luxury apartment projects Shoma Village, Pura Vida and Manor

Residents in predominantly working-class Hialeah are feeling the squeeze from soaring apartment rents, and some are getting slapped with evictions, following a wave of high-end multifamily construction in the city. The development spree has led to a surge in rent, now ranging from $2,050 for a studio to $3,765 for a three-bedroom unit, pricing out residents in the city where…

$100M The Julia Residences in Allapattah Reaches Completion, Already 35% Leased

The Julia Residences has received its TCO and the first residents have moved in. The $100 million, 14-story residential tower was developed by Lissette Calderon’s Neology Life Development Group. The Allapattah development includes 323 apartments, amenities, and 13,000 square feet of street-level retail space. A total of 25 residents moved in on day 1, and more than 35%…

Office Tower Inspired By The World’s Top Luxury Hotels Launching In Miami

Aman, Rosewood, Oetker and Four Seasons Hotels & Resorts, as many luxury travelers know, are regarded as the top ultra-luxury hotel brands in the world with exquisite rooms, unbending service and amenities that get more over-the-top by the day. Now, a developer in Miami, Robert Rivani, the founder and CEO of the commercial investment firm Black Lion, has plans…

Rishi Kapoor’s Miami Beach co-living project dev site heads to auction

A Miami Beach property where Rishi Kapoor planned a co-living condo project will be sold at auction. Miami Federal Judge Jacqueline Becerra on Monday authorized the hiring of auctioneer Lamar Fisher and his eponymous firm to sell two commercial buildings at 1234 and 1260 Washington Avenue owned by an affiliate of Urbin, a subsidiary of Location Ventures, the Coral Gables…

Tijuana Flats Closes Nine South Florida Locations After Bankruptcy Filing

Central Florida-based restaurant Tijuana Flats has announced it is filing for bankruptcy and has closed 11 of its restaurants, including a whopping nine of them in South Florida. According to a press release, the Tex-Mex brand has brought in new ownership, Flatheads LLC, with a plan of “revitalizing its restaurants and reinvigorating the customer experience.” The release notes…

51-Story Downtown Miami Tower Gale Hotel & Residences Opening Soon

Get ready for hundreds more short and long-term residents in Downtown Miami, with the 51-story 601 Miami tower said to be opening shortly. Stayntouch, which provides hotel property management software, said in a press release yesterday that the 688-room Gale Miami Hotel and Residences is planned open on May 1. As of this morning, rooms are available on Booking.com…

JLL Secures $100M Loan for Warehouse Portfolio in South Florida

JLL has secured a $100 million loan for a nine-property warehouse portfolio spanning 824,546 square feet in South Florida. Jim Cadranell, Gregory Nalbandian, Michael Lachs and Jimmy Calvo of JLL arranged the seven-year, interest-only loan through Nationwide Mutual Insurance Co. on behalf of the borrower, Seagis Property Group LP. The assets in the portfolio include…

Black Lion Pays $63M for Miami Beach Office Building

Black Lion Investment Group has made its first office acquisition in Miami Beach, Fla., purchasing The Lincoln at 1691 Michigan Ave. for $62.5 million, with plans to redevelop the mixed-use property into a luxury office concept it’s calling ‘Class X.’ The seller was Clarion Partners, according to CommercialEdge data. Black Lion Investment Group plans to transform The Lincoln…

Iconic Moore Building in Miami’s Design District Reopens With New Restaurant and Members-Only Club

The iconic Moore building in the Miami Design District, which was built in the 1920s, is officially reopening with a new modern American restaurant, Elastika, a members-only club, a boutique hotel, and more. Helmed by acclaimed Executive Chef Joe Anthony and brought to life by WoodHouse, the modern American restaurant is located on the first floor of the Moore building and…

Privee Capital plans 12-unit waterfront condo in North Beach

Privee Capital plans a 12-unit waterfront condo project in North Beach, marking continued residential development appetite for the neighborhood. The Miami Beach-based development firm will build a five-story building on a 0.8-acre lot at 1940 Bay Drive in Miami Beach, according to Scott Alcus, managing partner at Privee. Designed by Revuelta, the building will include…

Lease roundup: Rosetta Bakery with a speakeasy on tap at Standard-branded condo in Midtown Miami

Rosetta Bakery will open an Italian Bakery Café and cocktail bar at The Standard Residences, Midtown Miami. The restaurant leased 2,500 square feet next to the lobby and 1,200 square feet of outdoor terrace space at the building that’s under construction at 3100 Northeast First Avenue in Miami, according to a news release from the tenant and one of the developers.

Interview: Mandarin Oriental’s Christian Glauser Benz On Expansion Plans And The Rise Of Branded Residences

Christian Glauser Benz has traveled to more than 120 countries in his career managing the strategic growth of some of the best-known luxury hotel brands. He joined Mandarin Oriental Hotel Group in January as the firm’s head of development for the Americas after stints at Hyatt Hotels Corp. and Dream Hotel Group. He saw the pandemic as a transformative moment…

Downtown Miami’s Future Shines Bright with Financing for Parking Garage Redevelopment

Concord Summit Capital LLC recently arranged $20-million in senior financing to refinance the Bayfront Parking Garage, an operating six-story parking garage with 753 spaces located at 255 NE 1st Street, Miami, FL 33131. Concord Summit’s Managing Director Justin Neelis from the firm’s Miami office sourced the loan on behalf of the owners, Artifact Group and Blutrich…

$2.5 Billion Bond Postponed by Mayor Daniella Levine Cava

Alittle more than two months after Miami-Dade County Mayor Daniella Levine Cava floated a $2.5 billion general obligation bond (GOB) referendum during her State of the County address to pay for a series of expansive projects, she’s had a change of heart. The mayor recently announced her decision to postpone those ambitious plans after running into too much opposition…

South Florida industrial vacancies rise in the first quarter

South Florida industrial landlords may see a slowdown on the horizon, as vacancies crept up across the tri-county region in the first quarter, according to a CBRE report. Demand in Miami-Dade County is growing at a slower pace, dropping to 2.1 million square feet in the last 12 months, well below a five-year average annual absorption rate of 4.5 million square feet…

This Week’s South Florida Deal Sheet: Amazon Warehouse Sells For $106M

A 1M SF Amazon fulfillment center near Jupiter was acquired for $106.5M by the investment firm founded by Ross Perot, the late billionaire who ran for president in 1992. Dallas-based Hillwood, the commercial real estate arm of Perot Co., acquired the property through a subsidiary from an entity controlled by Truist Securities, property records from the data intelligence…

Starwood sells four office buildings in Miramar at a loss for $45M

Starwood Capital Group sold an office portfolio in Miramar for $45 million, marking a 45 percent discount off its purchase price nine years ago. YMP Real Estate Management bought the pair of Miramar Centre I and III buildings at 3401 and 3601 Southwest 160th Avenue, as well as the pair of Huntington Centre I and II buildings at 2901 and 2801 Southwest 149th Avenue…

Starwood Sells Miramar Office Buildings At 45% Discount

Starwood Capital Group sold a four-building portfolio of offices outside Fort Lauderdale for $45M, just more than half of what it paid to acquire the buildings nearly a decade ago. Starwood sold two buildings in Miramar Centre, including 3601 SW 160th Ave., and two in another office park. A joint venture between YMP Real Estate Management and three entities tied to Nathan…

Estate wins approval to build 353 apartments in Davie, including affordable housing

South Miami-based Estate Companies advanced its ongoing expansion into Broward County, winning site plan approval in Davie for a 353-unit apartment building with an affordable housing component. The Davie Town Council last week approved the site plan for Soleste Reserve I, as well as a developer agreement with Estate that mandates deed restrictions requiring below-market…

Developer proposes 978-unit apartment complex on Fort Lauderdale mobile home park

A developer wants to build a 978-unit apartment complex at the Pan American Estates Mobile Home Park in Fort Lauderdale. Saulo Perez, a South Florida-based real estate developer, proposes the project on the 22.8-acre mobile home park at 150 Northwest 68th Street in the Cypress Creek neighborhood, according to city records. The Fort Lauderdale Development Review Committee…

Acclaimed Architect Renzo Piano Unveils First Concept Design for The Center for Arts & Innovation In Boca Raton

The Center for Arts & Innovation has unveiled its initial vision for a forthcoming, globally revolutionary creativity and innovation hub in Boca Raton designed by the widely acclaimed Renzo Piano Building Workshop. Renzo Piano, a Pritzker Architecture Prize-winning Laureate, selectively undertakes two to three new commissions worldwide each year, emphasizing the…

Venture One pays $36M for three Boynton Beach warehouses

Venture One Real Estate paid $36.2 million for a trio of Boynton Beach warehouses. Through an acquisition fund, an affiliate of Rosemont, Illinois-based Venture One purchased Boynton Logistics Center, an industrial complex at 1200, 1210 and 1220 Southwest 35th Avenue, records and real estate database Vizzda show. The buyer obtained a $50 million mortgage from…

Related Companies Breaks Ground on South Flagler House At 1355 South Flagler Drive in West Palm Beach

Related Companies held a groundbreaking ceremony on April 17 for South Flagler House, an unparalleled luxury residential development in the Palm Beaches. The development features exquisite design by the renowned Robert A.M. Stern Architects (RAMSA), interiors by the acclaimed firm Pembrooke & Ives, and spectacular waterfront views. Located along the Gold Coast…

Morgans Restaurant Relocates to Allapattah After 14 Years in Wynwood

Beloved modern comfort food restaurant Morgans, known for its brunch, is relocating from its Wynwood location to a restaurant space in Allapattah. The family-owned restaurant, which has been serving brunch staples from its Wynwood patio since 2010, will move from its purple home in Wynwood to a larger location in Allapattah at 2800 NW Seventh Ave. on Wednesday, April 24.

Steve Ross’ Related wins bid to build $300M West Palm convention center hotel

Billionaire Steve Ross’ Related Companies won the bid to build West Palm Beach’s next convention center hotel. New York-based Related will build a $300 million 20-story, 404-key Hilton Signia on the site at 900 South Rosemary Avenue, the Palm Beach Post reported. Related estimated the hotel could be completed in three years, according to the publication. The hotel will add…

The Breakers wins approval for courtyard renovation

The Breakers, Palm Beach’s historic oceanfront resort, won approval for the renovation of a central courtyard, the last site on the property in need of major restoration work. The Town of Palm Beach Landmarks Preservation Commission approved plans to update the 16,000-square-foot Mediterranean Courtyard at its meeting last week. Renovations will include adding a 1,800…

Questions & Answers About Distressed Commercial Properties

Distressed commercial properties are under-performing assets that pose significant challenges to owners from a physical and financial point of view. Whether they’re run down, obsolete properties or they’re simply producing a negative cashflow every month, distressed properties can be great investment opportunities. Having said that, investing in distressed properties…

Video: Foodservice Results CEO Darren Tristano Discusses Restaurants and Real Estate 2024

The Conversation: Navigating the Current Landscape of the Restaurant Industry In a recent episode of *America’s Commercial Real Estate Show*, show host Michael delved into the current state of the restaurant industry with CEO Darren Tristano of Foodservice Results. Their insightful conversation provided valuable perspectives on the trends, challenges, and…

Video: Blackstone Sends ‘Takeoff’ Signal With Big Commercial Property Deal

Blackstone’s $10 Billion Real Estate Deal: A Shift in Market Dynamics In a move signaling confidence in the property market, Blackstone recently closed a significant deal worth approximately $10 billion for another apartment landlord with its purchase of Apartment Income REIT.  This transaction underscores the real estate giant’s strategic decision to deploy capital amid changing…

U.S. Industrial Leasing Plunges Nationally In Q1 As ‘Recalibration’ Continues

Industrial users in the U.S. slammed the brakes on leasing in the first quarter, deepening a slowdown that is likely to continue for the remainder of the year. Net absorption reached 28M SF nationwide in Q1, a roughly 70% drop from a year earlier, driving the vacancy rate up to 6.7% from 4.5% last year. But industrial brokers aren’t worried. In fact, they realize their position…

With $191B To Spend, Blackstone Thinks Real Estate Has Hit Bottom

Blackstone sees a recovery in the commercial real estate market coming and is acting accordingly, making major investments in the sector, most notably in multifamily rentals. But the shift in outlook about when interest rates might begin to come down has somewhat tempered spending of the firm’s $191B of dry powder. “The recovery will not be a straight line, but we’re not…”

Apparel Retailer Express Inc. To Close 100 Stores In Bankruptcy

Fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection, according to a filing with the Securities and Exchange Commission on Monday, and says it will close more than 100 of its 530 locations. The company said it is closing about 95 of its Express locations and all 12 of its UpWest stores, while the remainder of its locations will remain open for normal…

Blackstone Flags Retail Property Investment Opportunity As Big Brands Put Focus Back On Stores

When more than 800 international retailers gathered in Paris last week at the World Retail Congress, their to-do lists were overflowing with a raft of new issues and challenges, many of which barely existed even two years ago. But major investors like Blackstone are buying property again, and that centuries-old route to market, the shop, is seeing a renewed focus. Top of the in-tray…

Optimizing your multifamily portfolio with agency lending

There’s no shortage of multifamily investment strategies, including long-term holds, quick turnarounds and value-add investments. Regardless of the strategy multifamily investors choose, it’s critical that they optimize their portfolios to get the best results. Portfolio optimization, defined. Commercial real estate portfolio optimization is the process of evaluating operations…

How low? LNR buys San Francisco office building for 11% of 2018 price

LNR Partners has snagged a 90,500-square-foot office building in San Francisco with a winning auction bid of $6.56 million — or 10.5 percent of its last traded price. An affiliate of the Miami-based investor took control of the 16-story Hewes Building at 995 Market Street, in Mid-Market, the San Francisco Business Times reported. The seller was Bridgeton Holdings…

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April 24, 2024

Video: Foodservice Results CEO Darren Tristano Discusses Restaurants and Real Estate 2024

The Conversation: Navigating the Current Landscape of the Restaurant Industry

In a recent episode of *America’s Commercial Real Estate Show*, show host Michael delved into the current state of the restaurant industry with CEO Darren Tristano of Foodservice Results. Their insightful conversation provided valuable perspectives on the trends, challenges, and opportunities facing both restaurant operators and landlords in today’s market. Discussions include trends for food service labor, rent-to-revenue ratios, areas for growth in the industry, performance trends, expanding brands, concepts to be cautious of, and tips for both landlords and restaurant operators. This discussion is national in scope, providing insights into the commercial real estate sector nationwide, specifically retail restaurant properties. Given the non-local scope, observations may be less relevant or entirely irrelevant to restaurant properties in Miami or South Florida at large.

Resilience Amidst Economic Shifts

Darren Tristano began by highlighting the resilience of the restaurant industry, noting its ability to weather economic downturns and continue growing. Despite challenges such as inflation and high gas prices affecting disposable income, consumer interest in dining out remains strong. Tristano pointed out that while traffic to restaurants has remained relatively flat, it hasn’t declined significantly, indicating stable demand for dining experiences away from home.

Restaurant Rental Revenue Ratios and Market Trends

Michael and Tristano discussed rental revenue ratios, with Tristano suggesting a likely downward trend due to increased pricing at restaurants. Although nominal sales may rise, real growth remains minimal, making it challenging for landlords to raise rents significantly. Tristano emphasized the importance of understanding market trends and consumer preferences, particularly the growing demand for off-premise dining options such as delivery and drive-through services.

Thriving and Struggling Restaurant Segments

Tristano identified the segments of the restaurant industry that are faring well and those facing challenges. Limited-service restaurants with drive-throughs and efficient delivery options are experiencing growth, while full-service establishments are working hard to adapt and recover. Brands offering value-oriented menus, such as Taco Bell and Dunkin’, are expanding, while mainstream casual dining chains like Red Lobster and Applebee’s are facing closures due to oversaturation and changing consumer preferences.

Opportunities for Landlords and Developers

From a landlord’s perspective, Tristano stressed the importance of understanding the restaurant landscape and partnering with operators for long-term success. He advised landlords to assess the fit of potential tenants with the surrounding market and to consider factors such as traffic patterns and demographics. Building strong relationships with restaurant operators and offering flexible leasing options can lead to mutually beneficial outcomes.

Future Growth and Stability

Looking ahead, Tristano expressed optimism about the industry’s stability, citing a potential easing of inflation and lower gas prices that could boost consumer spending. He highlighted the success of chicken-focused brands like Chick-fil-A and Raising Cane’s, as well as the potential for innovative concepts to thrive in diverse settings such as cruise lines and schools.

Conclusion

As the restaurant industry continues to evolve, collaboration between operators and landlords will be essential for navigating challenges and seizing opportunities. By understanding market dynamics, adapting to changing consumer preferences, and fostering strong partnerships, both parties can thrive in today’s competitive landscape.

The insightful conversation between the show host and Foodservice Results’ CEO provided valuable insights into the nuances of the restaurant industry, offering practical advice for stakeholders looking to succeed in this dynamic market.

About Foodservice Results

Foodservice Results, headquartered in the Chicago market, is a prominent market research and consultancy firm spearheaded by Darren Tristano, former President of Technomic. Leveraging extensive expertise in the foodservice industry, the company specializes in delivering tailored solutions for restaurant operators, foodservice suppliers, distributors, and related organizations.

Utilizing a blend of consumer and market research, Foodservice Results offers clients a data-driven approach to comprehensively grasp industry dynamics and identify growth prospects. With a network of industry professionals spanning various domains, the firm provides unparalleled insights from seasoned experts, ensuring clients benefit from a wealth of knowledge and experience.

Exclusive studies conducted by Foodservice Results include:

1. 2020 Future of Fast Casual: This study offers a five-year forecast for sales and unit growth in the fast-casual segment, furnishing actionable insights crucial for strategic planning and competitive analysis.

2. 2020 Leading Restaurant Chain Industry Report: Providing an in-depth analysis of the top 1,000 chain restaurants in the United States, this report offers invaluable insights into industry trends and performance metrics.

3. 2019 Off-Premise 5-Year Study: Focused on understanding consumer attitudes towards takeout, delivery, and catering, this study provides essential insights into evolving consumer preferences and behaviors in the off-premise dining space.

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April 22, 2024

Video: Blackstone Sends ‘Takeoff’ Signal With Big Commercial Property Deal

Blackstone’s $10 Billion Real Estate Deal: A Shift in Market Dynamics

In a move signaling confidence in the property market, Blackstone recently closed a significant deal worth approximately $10 billion for another apartment landlord with its purchase of Apartment Income REIT.  This transaction underscores the real estate giant’s strategic decision to deploy capital amid changing market conditions and adds to growing investor sentiment that it’s now a good time to jump into the battered US property market. The conversation between Bloomberg’s Patrick Clark, Abigail Doolittle, and Sonali Basak sheds light on Blackstone’s shifting behavior and its broader implications for the real estate sector. Since this conversation is about a national transaction it should be noted that general commercial real estate insights may carry less significance or be inconsequential when it comes to commercial properties in Miami.

Over the past year, Blackstone has demonstrated a willingness to invest actively, aligning its strategy with evolving market dynamics. Patrick Clark highlights Blackstone’s proactive approach, emphasizing the company’s ability to influence the broader real estate market. As interest rates trend downward, there’s a growing anticipation of a surge in capital deployment, potentially driving property prices higher. Blackstone’s early involvement positions it to capitalize on these anticipated market movements.

Abigail Doolittle expands on the ripple effects of Blackstone’s actions, noting the positive impact on various segments beyond multifamily rates. She underscores the broader trend of major players, including KKR and Hines, expressing similar intentions to raise funds for real estate opportunities. This collective movement suggests a significant shift in the industry landscape, prompting discussions about whether this deal could mark a turning point for the market.

The focus on high-end rental markets, as exemplified by the targeted locations of the acquired properties, offers insights into Blackstone’s strategic positioning. Despite challenges in certain markets characterized by oversupply and softer rents, Blackstone remains actively engaged, demonstrating confidence in the long-term viability of these investments.

The conversation also touches upon the implications for publicly traded real estate investment trusts (REITs), such as the acquired REIT, a spin-out from Aimco which went public in December 2020. Blackstone’s involvement may signal renewed investor interest in REITs, potentially stabilizing or boosting their performance in the market.

Moreover, the dialogue underscores Blackstone’s role as a market leader and its significance in setting benchmarks for industry behavior. As the “take out” for many players in the market, Blackstone’s activities often influence investor sentiment and market sentiment overall.

The discussion concludes with reflections on the broader landscape of real estate investment, with mentions of other companies raising funds and launching new investment vehicles. Despite expectations of a market downturn, the influx of capital from various sources acts as a stabilizing force, mitigating the extent of potential declines and creating a floor for asset valuations.

In summary, Blackstone’s $10 billion real estate deal represents more than just a significant transaction; it signifies a strategic shift in market dynamics. As Blackstone and other major players continue to assert their influence, the real estate sector undergoes a period of transformation, characterized by increased activity, strategic positioning, and renewed investor confidence.

April 18, 2024

Miami Commercial Real Estate News April 17, 2024: Black Lion Buys Miami Beach MXU for $62M; Developer David Martin Buys into Deauville; Pair of Hotels Proposed for Blue Lagoon Site; More…

Terra’s David Martin buys stake in Deauville Miami Beach site, plans reconstruction

Developer David Martin acquired a minority stake in the site of the former Deauville Beach Resort, a property that billionaire developer Stephen Ross had under contract two years ago. Deauville Associates, led by the Meruelo family, sold a 25 percent interest in the 3.8-acre oceanfront property at 6701 Collins Avenue in Miami Beach for $12.5 million. TMG 67 Communities LLC…

The Weekly Dirt: A brief history of the iconic Deauville

In the deal that was recorded this week, the Meruelo family retained majority ownership of the oceanfront property, once home to the historic resort that hosted the Beatles’ U.S. debut on “The Ed Sullivan Show” in 1964. For some perspective, let’s look back on the recent history of the iconic Melvin Grossman-designed hotel. Damage from a fire and Hurricane Irma in 2017…

Florida Rock pays $98M for quarry in Miami-Dade County

Florida Rock Industries bought a massive quarry outside of Miami-Dade County’s urban development boundary for $98.1 million. An affiliate of Jacksonville-based Florida Rock acquired a 590-acre mining site in an unincorporated area near Doral, records and Vizzda show. The deal breaks down to $166,271 per acre. The seller, an affiliate of Lutz, Florida-based Preferred…

Lights Now On At Five Park, Miami Beach’s New Tallest Building

The lights have now been turned on at South Beach’s new Five Park tower. The 48-story tower broke ground in 2021 at the entrance to South Beach. It is said to be taller than any other building in the city of Miami Beach, at 519 feet. When complete, it will include 280 luxury residential units, in a tower designed by Arquitectonica. Terra and GFO Investments…

One Of Wynwood’s Biggest Ever Apartment Buildings, AMLI Wynwood, Now Open

Get ready for hundreds more residents in Wynwood. AMLI Wynwood, a property with 316 luxury apartments, is now open, according to the AMLI Residential blog. Units are available now, the property website shows. A cross-block pedestrian passage is also now open, the blog post said. The project also includes 388 parking spaces, and is among the largest to break ground…

Okan Tower: Foundation Pour Photos & Estimated Completion Date Released

Contractors recently completed a foundation pour for the 70-story Okan Tower, which is set to reach a height of 902 feet in the air. It will be one of Miami’s tallest towers when it reaches completion, which is now planned for 2027, the developer said in a statement yesterday. Okan Tower is planned to include 163 residential units, 236 short-term rental residences managed by Hilton…

South Florida Office Rents Continue Torrid Rise Even As Leasing Slows

South Florida office rents continue to rise despite leasing activity failing to keep pace with last year across the region. Asking rates in Miami were up 9.1% year-over-year at the end of March, with tenants leasing 468K SF of office space in the first quarter, according to preliminary data from Cushman & Wakefield. Leasing activity was up 3.2% from the same period last year in Miami…

Miami’s Office Market Continues To Lead U.S.

Miami’s office market remained atop an index measuring foot traffic into office buildings last month. The Placer.ai index analyzes activity in major office buildings nationwide, and compares it to pre-COVID levels. Miami has enjoyed the fastest recovery of any city, the index shows. In March 2024, that growth continued. Office building activity in Miami was up 8% over the same month…

South Florida office market plateaus in first quarter

While South Florida’s office market is faring better than the rest of the nation, landlords are feeling the pinch from tenants with expiring leases looking to downsize space or leave, according to Colliers’ Jonathan Kingsley. “On a macro level in general, the office markets in the tri-county region are a bit challenged compared to prior quarters,” Kingsley told The Real Deal. “We have…

Una Residences Tops Off At 175 Northeast 25th Road In Brickell Area of Miami

Construction on Una Residences, Brickell’s first waterfront residential development in over a decade, has reached its full height, topping off at 47 stories. This 613-foot-tall building, designed by the internationally recognized architectural firm Adrian Smith + Gordon Gill (AS+GG) with Revuelta Architecture International as the architect of record, features 135 spacious…

Una Residences Tops Off At 47 Stories, Completion Early 2025

Miami’s Una Residences has topped off. The 47-story tower was planned to top off at 579 feet, making it one of the tallest in that part of Brickell. Construction for the project began in the fall of 2020, with contractors working to build the deepest and most expensive underground parking garage in Miami’s history. The 236-car garage reaches nearly 50 feet and three stories…

Plans Filed For 28-Story Mixed-Use Tower At 3055 Northeast 4th Avenue In Edgewater Area of Miami

Plans have been submitted for a 28-story mixed-use building at 3055 Northeast 4th Avenue in Edgewater, Miami. Referred to as Metro 2 at Edgewater (Metro 2) in the application, the project is designed by Burgos Lanza & Associates and developed by Metro Tower II LLC. The proposed building is set to rise 320 feet to the upper roof slab or 335 feet, including the highest…

Developer Driftwood Capital Announces Timeframe For ‘Transformative’ Riverside Wharf

An expected groundbreaking timeframe has been announced for downtown Miami’s Riverside Wharf project. Driftwood Capital, which is partnering with MV Real Estate Holdings and Merrimac Ventures, made the announcement. Groundbreaking for Riverside Wharf is now expected in the latter half of 2024. The $267m development is expected to be “transformative,” and will feature…

Palma Miami Beach Residences Announced for North Beach

Plans have just been announced for a new mixed-use condominium tower called Palma Miami Beach Residences in North Beach. It is the third of four planned residential towers in North Beach by New York-based Lefferts. Palma will rise 14 stories, with 126 condos planned. Units will be delivered fully finished and furnished, with short-term rentals permitted. Condo sizes range…

Mast Capital, AvalonBay Complete 254-Unit Avalon Merrick Park Apartment Community in Coral Gables

Mast Capital and Avalon Bay Communities have completed the development of Avalon Merrick Park, a 254-unit apartment community located at 3811 Shipping Ave. in the Coral Gables neighborhood of Miami. The property, which was constructed by general contractor First Florida, features studio, one-, two- and three-bedroom apartments, ranging from 456 to 1,530 square…

A ‘Come To Jesus’ Moment Looms For Owners Of South Florida’s Aging Condos

Changes to the laws governing condo associations and reserves have the potential to reshape the oceanfront skylines across South Florida, but a wide gulf between buyers and sellers is holding back that transformation. “It’s really going to take a come to Jesus time until they realize that there isn’t a pot of gold at the end of the rainbow,” Edgardo Defortuna, one of the region’s most…

Investcorp Acquires $200M South Florida and Denver Industrial Portfolio

Investcorp has acquired a 1.3 million-square-foot, 31-building industrial real estate portfolio in South Florida and Denver for about $200 million. Investcorp purchased Victory Commerce Center in suburban Cleveland in 2020. Image courtesy of JLL With this purchase, Investcorp has about 43 million square feet of U.S. industrial real estate assets, valued at about $5.1 billion.

Spaceport status OK’d for Homestead Air Reserve Base

Cape Canaveral is losing Florida’s corner on space exploration with the designation of Miami-Dade’s Homestead Air Force Base as an official spaceport. After both houses of the state legislature unanimously passed a bill in March expanding Florida’s spaceport territory to include Homestead Air Reserve Base, Gov. Ron DeSantis signed the bill into law this month. It takes effect July 1.

Location Ventures’ former Coral Gables dev site faces foreclosure

Another development site formerly owned by Rishi Kapoor and Coral Gables-based Location Ventures is the target of a foreclosure action. An entity managed by Chandler Halpern in Fort Lauderdale on Thursday sued Kapoor and the entity that owns the 1.6-acre property at 1505 Ponce de Leon Boulevard in Miami-Dade Circuit Court. The complaint alleges that Kapoor and the…

Robert Rivani’s Black Lion pays $63M for Miami Beach mixed-use building

Robert Rivani’s Black Lion hunted down its biggest purchase in South Florida to date, but will have to compete with other heavy hitter developers in Miami Beach’s office market. The Miami-based commercial real estate investment firm paid $62.5 million for a Miami Beach mixed-use building, The Real Deal has learned. Black Lion is paying at a 42 percent discount off the previous…

Investor Promises Luxury ‘Class-X’ Office After $62M Miami Beach Acquisition

Black Lion Investment Group, a real estate investment firm with offices in Miami and Los Angeles, isn’t just looking to upgrade the first office building it ever acquired — it has ambitions of creating an entirely new designation for property type: “Class-X.” The firm paid $62.5M for The Lincoln at 1691 Michigan Avenue in Miami Beach and announced plans for a $50M renovation…

Prime location drives Doral commercial realty boom

Doral’s prime location continues to drive the city’s high demand for commercial real estate. “The demand in Doral has been steady for years,” said Lee & Associates Senior Vice President Conner Milford. “I haven’t seen any sort of real drop, significant drop….” Doral is a premier location due to its proximity to PortMiami and Miami International Airport, Mr. Milford said.

MCR proposes pair of hotels on Hilton Miami Airport Blue Lagoon site

MCR wants to develop two hotels with 400 keys, combined, next to its Hilton-branded property near Miami International Airport. The hotel owner-operator proposes a pair of eight-story hotels, each with 200 units, adjacent to the Hilton Miami Airport Blue Lagoon at 5101 Blue Lagoon Drive in unincorporated Miami-Dade County, according to MCR’s application submitted…

Unlocking Miami-Dade’s Housing Potential: Existing Vacant Land Could Provide Affordable Housing for 192,000 Renters

Miami-Dade County is dealing with an affordable housing challenge: Through a combination of nationwide rising housing costs and a development pace struggling to keep up with the demand for rentals, the area finds itself in urgent need of new ways to bridge the gap. In fact, half of all households here spend more than 30% of their income on housing costs. While the situation… explore

Miami needs $5 billion to fight flooding

Miami’s new stormwater master plan prioritizes $600 million in near-term infrastructure improvements and anticipates over $5 billion will be needed to shore up the city against flooding and achieve long-term resiliency goals. After extensive research evaluating areas subject to extreme flooding, the City of Miami recently updated its stormwater master plan. The new…

New Miami mega-billboards put on 270-day hold

Miami is moving forward with a 270-day moratorium to halt all new applications for outdoor advertising signs as commissioners continue to debate details of a new ordinance. On April 11, the city commission considered two agenda items related to outdoor advertising downtown. The first, which would have repealed a January 2023 measure that updated the city’s outdoor…

Taurus proposes 159-unit workforce housing project in Goulds

Taurus Development proposes a 159-unit workforce housing project in Goulds, marking continuing investor interest in south Miami-Dade County. The Coral Gables-based firm wants to build a 15-story building on an acre of land at 11888 Southwest 220th Street in an unincorporated area of the county, according to a Taurus application submitted to Miami-Dade this month.

Miami Wilds developers countersue Miami-Dade over scuttled water park

The developers of Miami Wilds are accusing Miami-Dade County Mayor Daniela Levine Cava of killing a controversial water park deal to protect her reelection bid, a recent court filing states. Miami Wilds countersued Miami-Dade on Monday, alleging the county breached a 2022 lease agreement allowing the company to build the water park, a 200-room hotel and up to 20,000 sf…

Michael Lewis: Now-or-never pitch for county land for Costco is no bargain

You’ve heard it too often: a last-minute deal appears that the county must make now at giveaway prices or lose a great opportunity. You hear it when a car dealer or stockbroker or realtor tells you a price won’t last if you don’t buy today. The county heard it when owners said they’d move the Marlins to Las Vegas if the public didn’t build a $3 billion baseball stadium now. We also heard…

Pre-Application Filed for 303-Unit Multifamily Development Under Live Local Act in Princeton Area of Miami-Dade County

A Pre-Application for an ASPR review has been filed for a new multifamily development in Princeton, Miami-Dade County, leveraging the Live Local Act to foster community and accessibility. Set to occupy an entire 10.59-acre parcel at the northwest corner of Southwest 236th Street and Southwest 132nd Avenue, the project plans to feature multiple three-story buildings within…

Plans To Build 28-Story Edgewater Tower Filed With Miami Urban Development Review Board

Plans have just been filed with the Urban Development Review Board for Metro Edgewater 2, a 28-story tower. The new tower is planned next door to the first Metro Edgewater tower, which was completed last year with 279 apartments in a 32-story building. According to the new filing, Metro Edgewater 2 is planned to include: 103 multi-family dwelling units, ranging from 748 SF…

City Of Miami Files To Build Office Building Next To New Inter Miami Stadium

The City of Miami has filed plans for a new office building on a former public golf course where the Inter Miami soccer stadium is planned. The City of Miami Administrative Building is planned at 1822 NW 37 Ave. For now, only renderings have been filed, but the project is at least 200,000 square feet and therefore requires a hearing before the city’s Urban Development…

Camino Capital, partners propose 28-story mixed-use apartment tower in Edgewater

Four months after completing a 32-story apartment tower in Edgewater, a development team wants to build an adjacent 28-story mixed-use building with 103 rentals. Camino Capital Management, Lujeni and Building Block Realty propose Metro 2 at Edgewater on 0.7 vacant acres at 3055 Northeast Fourth Avenue in Miami, according to an application submitted to the city this month.

Anchor Health scores $58M construction loan for Baptist rehab center in South Miami

A health care real estate developer scored a $58.4 million construction loan for a Baptist Health rehabilitation center in South Miami. Charlottesville, Virginia-based Anchor Health Properties will develop a 92-bed facility on 2.4 vacant acres at 6201 and 6233 Sunset Drive, as well as at 7150 Southwest 62nd Avenue, according to South Miami records. First Citizens Bank & Trust…

Lease roundup: Apple opening office in Coral Gables; law firm expands at Amancio Ortega’s Southeast Financial Center

Apple will open an office in Coral Gables, marking the continued expansion of tech companies in South Florida. The tech giant took 42,000 square feet at 2811 Ponce de Leon Boulevard, which is the North Tower at The Plaza Coral Gables mixed-use development, according to Cushman & Wakefield’s first quarter office report for Miami-Dade County. Bloomberg first…

Proposed 750-Foot Brickell Tower Submitted To FAA

Building heights for a proposed Brickell tower have been submitted to the Federal Aviation Administration. The filings were submitted to the agency on April 12. According to the filings, a building height of 737 feet above ground or 750 feet above sea level is proposed. The project site is the same as where a striking 65-story tentatively known as Calle 8 is currently moving through…

Photos: Topped Off 36-Story Modera Riverside In Downtown Miami

Photos show the topped off 36-story Modera Riverside tower in Downtown Miami. The building will include 428 apartments when it is complete. Developers have already filed plans to build a second tower at the complex, which is known as Nexus Riverside. That building will also be 36 stories and will have 345 apartments.

South Florida-Based Cymbal DLT Completes Construction of Laguna Gardens Apartments in Miami Gardens

Cymbal DLT Companies (Cymbal DLT) has completed construction on Laguna Gardens, a 341-unit garden-style multifamily community designed by the award-winning international design firm Jo Palma and Partners, located in the City of Miami Gardens. The development is now welcoming its first tenants after successfully issuing the initial Temporary Certificate of Occupancy (TCO).

‘Come To Your Higher Self’: Adam Neumann Officially Launches Flow Apartment Brand at South Florida Apartment Buildings

Adam Neumann finally pulled back the curtain on his foray into multifamily investment Thursday, with the former WeWork CEO launching Flow at two apartment buildings in South Florida. The interview coincided with Flow launching a website with apartment listings for its properties in Miami and Fort Lauderdale, nearly two years after Neumann announced the brand…

WeWork’s Bankruptcy Finally Hits Miami

WeWork’s six Miami locations have so far avoided getting cut from the property roster as the coworking firm navigates Chapter 11 bankruptcy. That could be about to change. WeWork moved to reject its lease at 429 Lenox Ave. in Miami Beach in a Monday court filing. The coworking company is seeking a bankruptcy judge’s approval to exit the property at the end of May…

Developer Proposes 245-Unit Assisted Living Facility for 357 Racquet Club Road in Weston

SREH-357 Racquet Club LLC hopes to move forward with an assisted living facility in Weston, FL. Under the current proposal, the complex would comprise a six-story, 325,808-square-foot building, featuring 245 units and 303 beds. Of the 245 units, there would be 113 independent living units, 108 assisted living units, and 24 memory care units. On-site amenities would include…

Housing Trust Group & Elite Equity Development break ground on Phase 2 of the ‘Naranja Grand’ Affordable Housing Community in Homestead

A joint venture between Housing Trust Group (HTG) and Miami Lakes-based Elite Equity Development, Inc. (EED), has closed on financing and commenced construction on Naranja Grand II, a new $71 million affordable apartment community comprised of 200 residences in Homestead, Southwest Miami-Dade County. Naranja Grand II is the second phase of a…

Developer Proposes ‘Capri Place II’ with 180 Affordable Units for 8001 NW 27th Avenue in Miami

West Palm Beach-based Richman Group has plans for a 2.66-acre site in South Florida. New plans for Capri Place II call for 180 affordable housing units in a 12-story building. Our sources indicate that residences would span one-bedroom to two-bedroom floorplans. Communal amenities include a swimming pool, spa, and two-story, 206-spot parking garage. There would be…

Winmar Construction Begins Foundation Pour For The Avenue Coral Gables Hotel & Residences

Winmar Construction has initiated the foundation pour for The Avenue Hotel & Residences Coral Gables, a project developed by Roger Development Group. This Coral Gables-based, family-owned real estate development and management company is led by President & CEO Oscar Roger, Sr., alongside CFO Oscar Roger, Jr., who joined the company in 2013 and continues…

Naftali Group Breaks Ground On 67-Story JEM Private Residences At Miami Worldcenter

Naftali Group has officially broken ground on JEM Private Residences, a 67-story condominium development located at 1016 Northeast 2nd Avenue in Miami Worldcenter. Designed by the Miami-based architecture firm Arquitectonica and the New York City-based interior design firm Rockwell Group, the building will rise over 700 feet and feature 259 condo units on the upper levels…

New Renderings Of Viceroy Brickell As Sales Begin For 420 Condos

Viceroy Brickell has officially launched sales. The 45-story glass tower is already under construction, with completion projected in early 2026, the developers of the project said today. Viceroy Brickell – The Residences will form part of the One Brickell complex, where three towers are planned. Another tower, Baccarat Residences, is also under construction. The Viceroy Brickell…

Demolition Of Second Building At One Brickell City Centre as 97-Foot Office Tower Project Advances

It appears that demolition of a second building at the One Brickell City Centre site is moving forward Last month, the WSJ reported that Swire Properties and Related Companies were restructuring a deal to build a near-supertall office tower on the site. There are two existing office buildings on the site set for demolition. The first building, 700 Brickell Avenue, has an active demolition…

Overtown Zip Code Has The Most Untapped Development Potential, Report Says

Miami’s 33136 zip code, which includes part of Overtown and Park West, has the most untapped development potential for apartments in the county, according to a new analysis. Rentcafe analyzed Propertyshark data for the study, which looked at vacant land that could be developed into apartments. Miami has an urgent need to build more rentals as prices are expected to surge…

Photo: 2000 Biscayne Apartment Tower Nearing Completion

An apartment tower being built at 2000 Biscayne Boulevard is now nearly complete. The 36-story topped off nearly a year ago. It was planned to rise 408 feet above ground, according to a pre-construction filing. The pre-construction filings showed it would include 393 rental apartments, 455 parking spaces, and 4,569 square feet of retail. It forms part of a three-tower complex…

Carnival Puts Miami Headquarters Up For Sale As Doral Real Estate Soars

Carnival Corp. has listed for sale its sprawling headquarters on the outskirts of Miami, seeking to cash in on real estate the cruise giant has owned for roughly three decades. The company is now looking to downsize to about 300,000 square feet (27,871 square meters) of new office space in the Miami area, according to a person familiar with the matter…

Viceroy reborn: Related launches sales of branded Brickell condo tower

Related Group and its partner converted plans for an apartment tower under construction into a Viceroy-branded condo building along the Miami River. Coconut Grove-based Related and New York-based GTIS Partners launched sales of the 45-story, 420-unit Viceroy Brickell, The Residences, at 77 Southeast Fifth Street, just west of Brickell Avenue in Miami, according…

Calta launches sales of Coral Gables townhome project

Calta Group launched sales of Via Veneto, a planned Coral Gables luxury townhome development. The developer, led by Italian brothers Ignazio and Gaetano Caltagirone, tapped mother-son duo Judy and Nathan Zeder of the Jills Zeder Group at Coldwell Banker Realty to lead sales, according to a press release. Via Veneto will include 10 three-story townhomes, each spanning 5,500…

Chart: Miami-Dade Multifamily Listings Surge

Multifamily properties offered for sale generally go up on one or more listings platforms, one of which is the commercial MLS. It has seemed that there has been a rash of multifamily listings in recent weeks. Conveniently, the commercial MLS allows one to checks such a perception by viewing active listings counts over time, filtered for property type. In the chart above, we’ve…

Doral Central Park phases to open in summer

Since taking on the role as Doral interim city manager in February, Kathie Brooks’ top priority has been to ensure transparency throughout the city for its residents. The next big item on her agenda is targeting the opening of phases two and three of Doral Central Park by summer and completion by the end of the calendar year, Ms. Brooks told Miami Today. Ms. Brooks replaced…

Six Years In The Making, Portion Of Doral Central Park To Open In Summer

Whether you live or work in the city of Doral, you’ve noticed a massive construction site and took note when you started asking questions about when this project might be completed. South Florida residents could get to use at least a portion of Doral Central Park as soon as this summer, but we went to city for answers about the project. “When is it going to be opening…

Efstathios and Nicolas Tsatas acquire second Pompano Beach condo-hotel dev site

Canadian developers Efstathios Tsatas and Nicolas Tsatas are expanding their portfolio in Pompano Beach with plans for their second project, a condo-hotel. An entity managed by the pair acquired a nearly shovel-ready 1-acre site at 330 Southeast First Street, records and Vizzda show. The city of Pompano Beach approved a site plan and a building design development order several…

Maven pays $19M for LA Fitness building in Pompano Beach

Maven Real Estate picked up a standalone retail building leased to L.A. Fitness in Pompano Beach. An affiliate of Coral Gables-based Maven, led by Marc Schwarzberg, paid $18.8 million for the two-story gym at 1000 North Federal Highway, records and Vizzda show. The buyer obtained a $9.4 million mortgage from City National Bank of Florida. The deal breaks down to $330…

Regency Centers Sells Retail Asset Tamarac Town Square

Regency Centers has sold Tamarac Town Square, a 124,585-square-foot Publix-anchored shopping center in Tamarac, Fla., with the assistance of JLL. An affiliate of Jamestown purchased the 83.8 percent-leased asset for $22.5 million, as reported by The Real Deal. The property previously traded in 1998 for $10.2 million, according to CommerciaEdge data. Tamarac Town Square…

Jamestown pays $23M for Publix-anchored shopping center in Tamarac

Jamestown expanded its South Florida portfolio of shopping centers by paying $22.5 million for a Publix-anchored retail site in Tamarac. An affiliate of Atlanta-based Jamestown acquired Tamarac Town Square at 8129-8315 North Pine Island Road, records and Vizzda show. JLL represented the seller, an affiliate of Jacksonville-based Regency Centers. In 1998, Regency…

Moderno, 75Invest plan Live Local tower in Fort Lauderdale

Moderno Development Group and 75Invest Group filed plans for a Live Local Act mixed-income project in Fort Lauderdale. The developers submitted their application for 500 Art Lofts, a 27-story, 290-unit rental building planned for the site at 501 Southwest Second Avenue, south of the New River, said Doron Broman, founder of Miami-based Moderno. Seventy-one units…

Northbridge pays $18M for Deerfield Beach industrial complex

NorthBridge Partners acquired a three-building industrial complex in Deerfield Beach for $18.1 million. An affiliate of Wakefield, Massachusetts-based Northbridge bought Powerline Commerce Park at 1250 South Powerline Road, records and Vizzda show. The 4.5-acre site has 72,919 square feet of industrial space. The park was built in 1989. The deal breaks down to $248 psf.

Venture One Buys Boynton Logistics Center Industrial Park

Boynton Logistics Center features a total of 34 dock-high loading doors, 12 truck wells and four drive-in doors. Image courtesy of Cushman & Wakefield Venture One Real Estate has acquired Boynton Logistics Center, a 197,608-square-foot industrial campus in Boynton Beach, Fla., from Elion Partners. Cushman & Wakefield brokered the transaction. The brokerage firm…

Mutual of America Life Insurance Proposes 288-Unit Complex for 1150 Broken Sound Parkway Northwest in Boca Raton

Mutual of America Life Insurance hopes to get approval for a seven-story apartment complex on its Boca Campus. The unnamed building would comprise close to 345,000 square feet of new construction, offering 288 units. Layout plans would span one-bedroom to three-bedroom floorplans, averaging 844 square feet each. Of those units, 29 would be set aside as affordable…

Workforce Housing ‘Vista Gardens’ Approved for 12450 Central Boulevard in Palm Beach Gardens

Vista Gardens, a 221-unit apartment complex in Palm Beach Gardens, received approval from the City Commission April 4th. The four-story complex will offer homes ranging from one-bedroom to three-bedroom layout plans, with 10 percent (22 units) set aside as workforce housing. One of the biggest draws to the Mediterranean-style complex would be the two pickleball…

Vista Residential scores approval for 221-unit multifamily project in Palm Beach Gardens

Vista Residential Partners scored approval for a 221-unit apartment building with workforce housing in Palm Beach Gardens. Atlanta-based Vista Residential plans the four-story project, called Gardens Vista Apartments, at 12450 Central Boulevard, according to city records. The 16.7-acre vacant site is part of the larger Cimarron Cove master-planned development.

Amazon To Double Same-Day Delivery Hubs Nationally

Amazon is doubling down on the strategy it introduced last year to regionalize its retail distribution network—and run the whole logistics network with AI-driven inventory control—by rapidly expanding its same-day delivery capacity. The online retail giant is focused on speed—it can assemble and ship customer orders at same-day facilities in as little as 11 minutes—and increasing its…

Video: AFIRE CEO Gunnar Branson on International Investors’ View of U.S. Real Estate Expressed in its International Investment Survey 2024

The Conversation: Decoding the Trends in America’s Commercial Real Estate Market In the dynamic world of commercial real estate, understanding the broader perspectives and global trends can offer valuable insights into local markets. Recently, a conversation unfolded on America’s Commercial Real Estate Show, shedding light on the international investor view of commercial…

The Historic Tax Credit program, explained

Historic buildings are part of what make neighborhoods unique, and preserving these buildings can spur economic activity as developers create jobs to revitalize aging properties. Through the Historic Tax Credit (HTC) program, federal tax law provides an income tax credit to developers, who own historic buildings that undergo substantial rehabilitations into income-producing uses…

Urban Core Multifamily No Longer Grossly Underperforming Suburban Counterparts Nationally

In a typical, pre-pandemic world, urban core submarkets generally underperformed their suburban counterparts by a small margin. Urban core occupancy typically fell less than 100 basis points (bps) below suburban occupancy. Likewise, annual effective rent change in urban cores underperformed suburban counterparts by about as much. Then came the pandemic. Arguably no…

The Fed: Beige Book Shows Modest Growth, Continued Easing of Price Pressures

Economic activity in the Southeast grew modestly over the past several weeks as labor market and pricing conditions broadly continued on their paths of recent months, according to the new Beige Book anecdotal report from the Federal Reserve Bank of Atlanta. Most Atlanta Fed contacts said it continued to get easier to fill open jobs. Even so, business leaders across…

Apples and oranges: Florida passes a slew of pro-development laws, contrary to New York

As the New York State Legislature struggles to pass the state’s budget, divided, in part, over how to handle key housing policies, the Florida Legislature has gone in the opposite direction. Last month, Florida lawmakers wrapped up the 2024 session with the approval of a $117.5 billion state budget and the passage of a handful of pro-development bills. In the last two years, lawmakers…

‘No Rest For The Weary’: What Higher Interest Rate Expectations Mean For CRE

The first half of this year was supposed to be when interest rates began coming down, providing a lifeline to struggling commercial real estate owners. But it now appears the Federal Reserve may not be coming to the rescue anytime soon. Following Wednesday’s consumer price index report showing that inflation rose 3.5% year-over-year in March, the expert consensus around…

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April 17, 2024

Video: Vanbarton Groups’ Joey Chilelli discusses the pros and cons of converting commercial real estate to residential housing

A Conversation on Innovative Solutions: Transforming Commercial Spaces into Residential Housing

In the ever-evolving landscape of real estate, adaptation is key. The conversation around repurposing commercial properties into residential spaces is gaining traction, offering innovative solutions to address housing shortages in urban areas. A recent dialogue sheds light on this transformative process.

The setting for this discourse is a former WeWork location undergoing a significant metamorphosis – from office space to 75 residential units. Dani Romero, accompanied by Joey Chilelli, Managing Director of Vanbarton Group, delves into the intricacies of this conversion project.

Romero initiates the discussion by highlighting the progressive shift in the housing market, emphasizing the potential of commercial properties transitioning into residential dwellings. With the demolition phase underway, Chilelli provides insight into the timeline, estimating a twelve-month duration for the complete conversion.

However, such a transition is not without its challenges. Chilelli elucidates on the technical hurdles encountered during the project, particularly in aligning unit walls with existing structural elements to ensure the creation of appealing and functional living spaces. Despite these obstacles, the endeavor is poised to yield approximately 75 apartments, catering to the burgeoning demand for housing in the city.

One notable aspect of the conversation revolves around the financial dynamics of such endeavors. Romero probes into the viability of converting office spaces into residential units, juxtaposing potential costs and returns. Chilelli underscores the significance of market dynamics, pointing out the favorable conditions for residential leasing compared to commercial office spaces, citing a low vacancy rate as a driving factor.

The discourse widens to encompass broader policy considerations. Romero inquires about government incentives and programs aimed at facilitating such conversions. While acknowledging the efficacy of such initiatives in alleviating housing crises, Chilelli emphasizes the multifaceted nature of the issue, suggesting that while incentives play a role, they are not a panacea for systemic challenges.

The conversation concludes with a forward-looking perspective. Romero underscores the ongoing efforts to address housing shortages, framing the project as a tangible step towards mitigating the crisis. As the discussion transitions back to the studio, anticipation mounts for the unveiling of the completed residential complex, marking the culmination of a transformative journey.

In essence, the dialogue between Romero and Chilelli offers a glimpse into the dynamic interplay between innovation, economics, and policy in reshaping urban landscapes. Through strategic repurposing of commercial properties, stakeholders are not only meeting housing needs but also reimagining the possibilities of urban living.

April 16, 2024

Video: AFIRE CEO Gunnar Branson on International Investors’ View of U.S. Real Estate Expressed in its International Investment Survey 2024

The Conversation: Decoding the Trends in America’s Commercial Real Estate Market

In the dynamic world of commercial real estate, understanding the broader perspectives and global trends can offer valuable insights into local markets. Recently, a conversation unfolded on America’s Commercial Real Estate Show, shedding light on the international investor view of commercial real estate in the US.  The show featured Gunnar Branson, CEO of AFIRE, who provided a comprehensive overview of the survey findings, including favored asset classes, sectors, and cities, and their view of future office use trends. In the dynamic world of commercial real estate, understanding the broader perspectives and global trends can offer valuable insights into local markets. Recently, a conversation unfolded on America’s Commercial Real Estate Show, shedding light on the international investor view of commercial real estate in the US. The show featured Gunnar Branson, CEO of the Association of Foreign Investors in Real Estate Investors (AFIRE), who provided a comprehensive overview based on their survey findings. The focus of this discussion is on commercial real estate across the United States. Given this, observations have varying relevance to commercial property in Miami.

AFIRE, an association focused on commercial properties in the US, conducts regular surveys among its members, comprising senior executives, institutional investors, and investment managers from around the globe. Gunnar Branson revealed that their most recent pulse survey, conducted in January, captured the sentiments of nearly 100 members, offering a snapshot of priorities and concerns for the year ahead.

Office spaces, once a cornerstone of commercial real estate investment, have seen a decline in interest over the past decade. Institutional investors have been reallocating their portfolios towards multifamily properties, driven by changing demand dynamics. While newer office buildings in select markets continue to perform well, older assets face challenges in leasing and require significant capital infusion for upkeep.

The uncertainty surrounding the future of office space usage post-pandemic was a key focus of the survey. Interestingly, a majority of respondents expressed ambiguity, indicating that the industry is still in a phase of discovery regarding the new normal for office utilization.

Another significant aspect discussed was the rising insurance costs, which have doubled or tripled in some markets. Gunnar emphasized that insurance companies are now assessing and pricing climate risks, which could have substantial implications for properties located in high-risk areas.

Affordable housing emerged as a pressing concern for investors, reflecting a broader global challenge. The survey underscored the need for increased housing supply, particularly in urban areas, where zoning restrictions and NIMBYism pose significant hurdles.

On the financing front, there’s a notable shift towards debt funds, with traditional bank lenders showing reluctance. Institutional investors are exploring debt as a viable option to gain exposure to assets amid market uncertainties.

While the conversation touched upon various other topics, including geopolitical concerns and the impact of the US election, there was an overarching sense of optimism about the US commercial real estate market’s resilience and growth potential. Despite challenges, the US remains a preferred destination for real estate investment, offering diverse opportunities across different asset classes.

As the industry navigates through evolving trends and challenges, stakeholders are urged to stay vigilant and adaptable. Clearing the path for innovation, addressing affordability issues, and fostering conducive investment environments are key to sustaining the momentum of America’s commercial real estate market.

In conclusion, the insights gleaned from the conversation on America’s Commercial Real Estate Show provide valuable guidance for investors, developers, and industry professionals navigating the complexities of the market landscape. With a forward-looking approach and a keen understanding of global dynamics, stakeholders can capitalize on emerging opportunities and drive sustainable growth in the US commercial real estate sector.

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April 15, 2024

Chart: Miami-Dade Multifamily Listings Surge

Active Multifamily Listings Commercial MLS Jan 2014 to Mar 2024 | Property Type Multi-Family Income, or Commercial/Industrial | Miami-Dade County | Price $5,000,000+ | Type Apartment, Income/MultiFamily, or Multifamily

Active Multifamily Listings Commercial MLS Jan 2014 to Mar 2024 | Property Type Multi-Family Income, or Commercial/Industrial | Miami-Dade County | Price $5,000,000+ | Type Apartment, Income/Multifamily, or Multifamily

Multifamily properties offered for sale generally go up on one or more listings platforms, one of which is the commercial MLS. It has seemed that there has been a rash of multifamily listings in recent weeks. Conveniently, the commercial MLS allows one to checks such a perception by viewing active listings counts over time, filtered for property type. In the chart above, we’ve further filtered the results to only include properties over $5 million. As can be seen in the chart, such listings edged 50% higher in recent months than they’ve been in any month in the past 10 years.

As refinancing options have become less forgiving in today’s higher rate environment and prices have drifted, the multifamily euphoria of recent years has clearly waned. Whether this surge is only a blip of if it represents the beginning of a significant changeover of ownership remains to be seen.

It is important to note that not all multifamily properties that hit the market are listed on the commercial MLS. Trends within commercial MLS data, however, particularly when pronounced, are likely representative of what is happening in the market at large.

April 12, 2024

Establishing Value for a Below Market Rent Long-Term Ground Lease; Real World Scenario

Calculation of Discounted Present Value of Cash Flows for a Below Market Rent Ground Lease with 25 Years Remaining

Calculation of Discounted Present Value of Cash Flows for a Below Market Rent Ground Lease with 25 Years Remaining

We recently had an owner of land on which a 99-year ground lease had been put in place nearly 75 years prior ask us for a broker opinion of value. The lease was at a flat annual rent, plus expenses, with no escalation, and is a fraction of current market rent for the property. Given my Wall Street experience, this seemed very much in my wheelhouse.

Given the length of a ground lease like this, though it is a real estate interest, this would have financial characteristics more like a financial instrument. Each income stream until the end of the else is seemingly highly secured and specifically defined. The rent payments can be discounted back to a present value; it is only a matter of deciding on a discount rate. The value at the end is not known exactly, but can be reasonably projected, which for purposes of selling to another really means “negotiated.” That projected value can then also be discounted back to a present value. There are a few variables to plug in to estimate the present value. Modifying these changes the present value calculation.

The calculations at the top of this post summarize my thoughts. If the property was owned currently, the market value would likely be approaching $13 million. However, what is owned is encumbered by a below market lease. The present value of that income stream and the termination value at the end, the escalated net operating income assumption divided by the assumed exit cap rate, discounted back at 7%, works out to a present value of just over $4 million.

The assumptions can be tweaked, but there was thought put into each of these. The discount rate is a big one, for example. Given the lack of liquidity, inexact termination value, limited buyers for such an asset, etc., a discount rate 235-ish basis points over the 10- or 30-year treasury seems warranted.

In the end, it is of course what a buyer is willing to pay. For a certain type of buyer, however, this would also be a sweet deal. Much of the highly secured return would come from the discount, which as I understand it would be a tax deferred return that would step up in basis on an owner’s death. Thus, perhaps a higher price / lower discount rate deal could indeed be struck. In any case, it will be at a steep discount to the market value of the property if it was free and clear of any lease.

The owners did nothing. I got the feeling that they’d had someone less sophisticated tell them they could get more. Discounted present value of cash flows is a fairly straightforward concept and calculation, but the eyes of many with a real estate license will gloss over at the utterance of those words in sequence. In any case, as soon as I hear the specifics of this, I figured it would go nowhere. As I told the owners in our discussion, if they don’t need the current income – and they do not seem to – why sell it?  It made for an interesting exercise, in any case.

This exercise also brought to mind a couple of owners of undeveloped commercial land that stubbornly only want to execute a 99-year ground lease on their properties. Most developers want to own, they don’t want a ground lease, and banks don’t love financing them. This thus narrows your pool of what I will still call buyers, as a 99-year commitment is more like a purchase than a lease. Also, as evidenced by this situation – an eye roll and chuckle to accompany any reference to “Great Grandpas’ great deal” – a lot can change in 99 years.

In conclusion, the evaluation of a long-term ground lease encompasses a multifaceted analysis that extends beyond mere financial calculations. While the discounted present value of cash flows forms the cornerstone of valuation, it’s crucial to navigate through legal intricacies, anticipate market trends, and meticulously assess associated risks. Moreover, understanding the tax implications and exploring comparative data provide invaluable insights into the lease’s true worth. As we contemplate the future, it’s imperative to consider a spectrum of exit strategies and investment avenues, tailored to the lessor’s objectives and market dynamics. By embracing this comprehensive approach, stakeholders can unlock the full potential of their real estate interests, transcending the boundaries of time and capitalizing on opportunities that endure across generations.

~

The numbers have been modified versus the actual situation in the interest of keeping the owner unidentifiable; I’m a stickler for maintaining confidentiality. Nonetheless, the ratios are similar. If you could have an interest in this, contact me. The owners may or may not be sellers.

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April 10, 2024

Miami Commercial Real Estate News April 10, 2024: Carnival’s 470k sf HQ for Sale; Apple Takes 42k sf in Coral Gables; Surfside Dev Site Trades for $60M; More…

Carnival Lists 470K SF Miami Headquarters For Sale

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Carnival Eyes Real Estate Jackpot: Reportedly Plans To Sell Miami HQ Amid Post-Pandemic Shifts

Carnival Corp is reportedly eyeing the sale of its long-held Miami headquarters to capitalize on real estate gains, seeking a smaller office footprint amid post-pandemic changes. The cruise operator plans to sell its 470,000-square-foot Miami headquarters, aiming to downsize to approximately 300,000 square feet in a new location, reported Bloomberg, citing a person familiar…

Apple Opening Big 42k SF Office in Coral Gables; Miami Worldcenter Retail Store Confirmed

Apple is expanding in Miami with new offices and a large new retail store, according to Bloomberg. The company will open its biggest ever Miami office at The Plaza in Coral Gables. A Cushman & Wakefield report said that the space is around 42,000 square feet. Apple will also open a large new retail store at Miami Worldcenter, the Bloomberg report said…

Apple Signs 42K SF Deal For New Office Space In Coral Gables

Apple is poised to open a new office in Coral Gables nearly three years after the big tech firm began looking for space in Miami. Apple signed a 42K SF lease on the 11th and 12th floors of the north tower of the Plaza Coral Gables, according to a Cushman & Wakefield office market report provided to Bisnow. The deal comes after reports in late April 2021 that the tech firm was…

Report: Apple Chooses Coral Gables as Site of New Florida Office

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First Renderings Filed For 283-Unit Multifamily Tower Near Arsht Center

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Gomez Development, Avenue 4 list Miami River assemblage for $25M

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Related Group Founder Jorge Perez: ‘Serious, Serious Money’ Now Moving To Miami

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Fort Partners pays $60M for oceanfront site next to Surfside Four Seasons

Developer Jason Halpern sold an oceanfront site in Surfside to Nadim Ashi’s Fort Partners, which completed the adjacent Four Seasons Hotel and Residences at the Surf Club. An affiliate of Halpern’s New York-based JMH Development struck a deal with Fort Lauderdale-based Fort Partners in 2021 to sell the 0.6-acre development site at 8995 Collins Avenue and a 0.2-acre parcel…

Under-Construction 45-Story Tower Viceroy Brickell to be Sold as Condos

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Photo: Completed Arch At Downtown Miami’s Signature Bridge

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Miami Beach Housing Authority, Atlantic Pacific Break Ground on 119-Unit Affordable Housing Community for Seniors

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The Estate Cos. Completes 23-Story Soleste NoMi Beach Luxury Apartment Tower in North Miami Beach

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Crescent Heights Proposes 26-Story Tower for 101, 115, 119, 121 and 125 NE 14th Street in Miami

Miami-based Crescent Heights hopes to get approval for a 26-story mixed-used tower west of the Adrienne Arsht Center for the Performing Arts. The unnamed venture would comprise 184,135 square feet of new construction, offering 280 condos with no on-site parking. The community would offer short-term rentals—an emerging trend in the South Florida market.

William Ticona targets Miami’s Edgewater for project pipeline

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Hotel & Residential Tower 130 Biscayne with 104 Floors Submitted to Zoning Review

The developer planning the 130 Biscayne tower in Downtown Miami submitted the project to zoning review yesterday. The tower is planned to top off at 104 stories and 1,049 feet, the maximum permitted by aviation rules in the area, the filing states. It will also include a rooftop pool and amenity area for residents on the 104th floor. For now, the tower is known as 130 Biscayne.

Store Capital pays $27M for Design District office building

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First Aria Reserve Tower Tops Off At 62 Stories

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Midtown Miami’s Tallest-Ever Tower Submitted To FAA

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South Florida office market plateaus in first quarter

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Condo Designed By World-Renowned Architecture Firm Breaks Ground In Miami Beach

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Miami Beach paints new pastel picture of city skyline

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Fortune, Château score $100M financing boost for St. Regis Sunny Isles

Edgardo Defortuna’s Fortune International Group and Manuel Grosskopf’s Château Group secured a financing boost for their under-construction St. Regis Residences in Sunny Isles Beach. Bank OZK increased the $119 million loan it provided in 2020 by $100 million, for a total of $219 million, property records show. Edgardo Defortuna, founder and CEO of Brickell-based…

Crescent Heights’ $40M Whole Foods project in Miami Beach gets green light

Russell Galbut’s plan for a $39.8 million Whole Foods Market-anchored retail building in Miami Beach is getting a kick start after nearly a decade of inactivity. The Miami Beach Design Review Board on Tuesday approved the planned four-story project spanning 199,000 square feet at 1901 Alton Road. Miami-based Crescent Heights, led by Galbut, Sonny Kahn and Bruce Menin…

Trimont acquires Kayak Miami Beach hotel

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Oolite Arts to base 12 artists in Coral Gables office tower

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No ‘away we go’ yet: decision to raze Jackie Gleason Theater deferred

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Forman Capital Funds $54.56 Million Construction Loan for Condominium-Hotel Development in Miami’s Financial District

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$10M Sale of Multifamily Development Site in Miami’s Little Havana Brokered

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ILP Developers Proposes 26-Story Apartment Tower Designed By NMD Nomadas In North Miami Beach

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60-Story Summit At Brickell Submitted To FAA

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First Renderings Released Of 55-Story Edge House Miami

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‘Bold, Visionary’ Plan That Includes Transit Funding Coming, Miami-Dade Mayor Says

Miami-Dade voters will soon be able to vote on whether they want the county to finance an expansion of mass transit. The vote would take place in November 2026. Miami-Dade property owners would pay for the proposal through their property taxes. Miami-Dade Mayor Daniella Levine Cava had previously announced a $2.5b bond proposal that would include $800m in funding…

Peruvian Developer Grupo T&C Announces 55-Story Condo Tower At 1825 NE 4th Avenue In Edgewater

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‘Cloud One Hotel’ Proposed for 1509 Washington Avenue in Miami Beach

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Developers Break Ground On 17-Story ‘The Perigon’ At 5333 Collins Avenue In Miami Beach

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Developer Files New Plans For 60-Story Tower In Edgewater

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Photos: Construction Site Of Brickell’s Tallest Tower Ever

Construction is continuing in Brickell on an 80-story tower called Cipriani Residences, the tallest to ever break ground in the neighborhood. The permanent height of the tower is planned at 940 feet above ground, or 950 feet feet above sea level. A groundbreaking ceremony for the tower took place in February, after developer Mast Capital secured $600m in construction…

KYU founders plan new restaurant in Wynwood Norte

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Is it doomsday for South Florida’s multifamily market?

South Florida has outperformed other major metros, with out-of-state apartment investors and developers flocking to the region during the pandemic boom. That could make the downcycle even worse, Alex Horn of Miami-based lender BridgeInvest tells my colleague Lidia Dinkova. Between the middle of 2022 and 2023, South Florida property repair and maintenance costs…

Turnberry Ocean Club condo association sues Jeffrey Soffer’s firm and development team over alleged construction defects

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Groundbreaking Event Marks Milestone For ‘Pinnacle at La Cabaña’, An Affordable Senior Housing Development At 8911 Miramar Parkway In Miramar

Pinnacle is commencing the construction of its affordable housing project, Pinnacle at La Cabaña, in Miramar. The $41.2 million development aims to provide essential quality affordable housing to seniors amid rising housing costs. Comprising 110 units, Pinnacle at La Cabaña will offer one- and two-bedroom apartments, with amenities designed for aging residents.

Related sells Boynton Beach affordable senior housing complex for $53M

Smith & Henzy Advisory Group bought an affordable senior apartment complex in Boynton Beach for $53 million. The Pérez family’s Coconut Grove-based Related Group sold the 240-unit garden-style Boynton Bay Apartments, which is restricted for residents 55 and older, at 1785 Northeast Fourth Street, according to records and real estate database Vizzda. Delray Beach…

BBX, PCCP land $31M construction loan for Delray Beach industrial project

BBX Capital’s logistics arm and PCCP scored a $31.1 million construction loan for the first phase of a Delray Beach industrial complex. Miami-based City National Bank of Florida provided the financing to Fort Lauderdale-based BBX and Los Angeles-based PCCP, records show. The joint venture plans to break ground soon on a 200,000-square-foot building, representing the first…

Forté on Flagler and City of West Palm Beach Announce West Palm Beach Art Walk, Featuring City’s First All-Female Sculpture Installation”

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Related’s Stephen Ross Raising $300M To Lure Vanderbilt To West Palm Beach

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The Fed on Commercial Real Estate Exposure and Bank Stock Returns

The COVID-19 pandemic induced social and economic changes, such as accelerating the shift to work from home and e-commerce, that have downgraded the future prospects for office buildings and shopping centers. As a result, debt backed by commercial real estate (CRE) has become a financial stability concern.1 In a previous Economic Synopses essay, we showed that at least…

Getting In The Heads Of Industrial Tenants Nationally

An excess of supply in some industrial markets has led to more rentable options and more favorable leasing terms for tenants. With new construction starts taking a more than 70 percent dive since early 2022, however, according to a 2023 Savills report, demand is likely to quickly outpace new deliveries. Until then, tenants have their pick of spaces and landlords. “Looking ahead…”

Blackstone Agrees to Acquire Apartment REIT AIR Communities for $10B, Take Company Private

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WSJ: The Real Estate Nightmare Unfolding in Downtown St. Louis

The Railway Exchange Building was the heart of downtown St. Louis for a century. Every day, locals crowded into the sprawling, ornate 21-story office building to go to work, shop at the department store that filled its lower floors or dine on the famous French onion soup at its restaurant. Today, the building sits empty, with many of its windows boarded up. A fire broke out last year…

Asset Classes, Markets, Operational Concerns: Bisnow Survey Reveals National CRE Focus For 2024

Each year, Bisnow’s Escape and Ascent retreats bring together a hand-selected group of commercial real estate leaders for four days of networking, deal-making and relaxation in Miami Beach. These retreats have led to multimillion-dollar deals and lifelong business connections, due in no small part to the curated attendee list of top owners, operators, developers…

Strapped For Cash, Retailer 99 Cents Store Considers Filing Chapter 11

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Florida Lawmakers Take Aim At Historic Buildings, Affordable Housing, Short-Term Rentals

The 60-day flurry of debate and voting that defines the Florida Legislature’s annual session came to a close last month, and as the dust settles, the impact of an array of bills on the state’s real estate sector is coming into focus. A major theme this session was the state’s effort to claw back control of development and housing. From historic properties to affordable housing…

Quantifying the Effect of Rent/NOI Growth on IRR

Investors often consider commercial property primarily on the cap rate (net operating income divided by price). In most cases there is the expectation of NOI (net operating income) growth and appreciation over time. These expectations are seemingly considered as benefits, with no consideration given to them as incremental return. In this post, we seek to quantify the effects.

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April 10, 2024

Quantifying the Effect of Rent/NOI Growth on IRR

Effect of NOI Growth on IRR is Roughly Calculated as 1.35 Times the Assumed NOI Growth Rate in Typical Commercial Property Investment Scenarios

Investors often consider commercial property primarily on the cap rate (net operating income divided by price). In most cases there is the expectation of NOI (net operating income) growth and appreciation over time. These expectations are seemingly considered as benefits, with no consideration given to them as incremental return. In this post, we seek to quantify the effects.

The example above is a fairly typical situation, a purchase at a 6% cap rate, with anticipated net operating income growth of 3% per year. In this situation, assuming a cap rate the same at sale as at purchase, and setting aside transaction costs for the moment, there would be an IRR on the capital equal to the NOI growth rate, in this example 3%.

There also is incremental return from the increases themselves, i.e. the incremental net operating income as it grows over time. To get at that, as a base return, I’ve calculated an IRR assuming cash flows given the NOI growth rate assumption and a sale 15 years later at the same cap rate. Then, I compare this to an IRR on the cash flows if the NOI never increased but the price increased in line with the NOI growth rate, in order words, with the benefits of the incremental annual NOI removed. This reduced the IRR by 1.11%.

Given this, I would submit that in this example, the IRR would increase by 3% for price movement plus 1.11% for NOI increases themselves, a total of 4.11%, as circled above, in incremental IRR. The ration of this to the NOI growth assumption itself is is 1.37. If one increases or decreases the NOI growth assumption, this ratio moves, but not significantly. Thus, it seems reasonable to me to say that in typical commercial real estate investment scenarios, and assuming the same cap rate at sale as at purchase, IRR increases beyond the cap rate by an amount about 1.35 times the assumed NOI growth rate.

You may notice that the bulk of returns come from the income itself. This touches on a favorite subject of mine, the cost in terms of foregone income of holding vacant land. Undeveloped land has value based on what it could be earning. Fully developed land instead has value on what it is earning. Thus, by keeping the land vacant, an owner is forgoing income that the property’s value could be bringing in, income one could be earning if the property was sold and the proceeds were used to then purchase income generating property.

Astute readers will notice that the combined IRR of the effects beyond the cap rate at to 10.11% yet the IRR calculated as assumed arrives at 9.87%. This is a timing thing. In the interest of simplicity, this only calculated net annual cash flows. The objective of these calculations is in any case only to calculate a base IRR to then compare to the same with the effects of incremental NOI increases removed. What is of interest here is the difference. Indeed, this spreadsheet isn’t perfect, but I believe it is reasonably illustrative of the effects of NOI growth on returns in the form of IRR. If you find any errors in the calculations or logic, contact me.

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April 5, 2024

Miami Commercial Real Estate News April 3, 2024: Baccarat Scores $328M Construction Loan; W Hotel on Brickell Under Contract; $908M Golden Glades Rebuild Begins; More…

BH, Süzer buying W Hotel in Miami’s Brickell

BH Group and Süzer Group are under contract to buy the W Miami hotel in Brickell. Sources familiar with the seller confirmed the pending deal, but could not disclose the sale price. Al Rayyan Tourism Investment Company, or ARTIC, is selling the 50-story, 148-key hotel at 485 Brickell Avenue in Miami. Stefano Santoro with Disruptive Real Estate is representing the buyers…

Map: Miami Worldcenter’s pipeline of 8,400 resi units, 500 hotel keys. 800k sf commercial space

Developers are racing to Miami Worldcenter. The 27-acre master-planned development is partially completed, but much more is on tap. Seventeen towers are proposed, approved or under construction, promising to transform a 10-block stretch in the heart of Miami into a canyon of skyscrapers. In total, the projects would add 8,473 condos and apartments, 499 hotel keys and…

“Day of reckoning”: South Florida multifamily Investors feel sting of rising interest rates, insurance

Shidler Group wasn’t about to miss out on South Florida’s multifamily bonanza. In 2021, amid an influx of out-of-state residents creating unprecedented apartment demand and the biggest rent hikes nationwide, Shidler bought the 433-unit Sealofts at Boynton Village for $153 million. The complex of 20 white and sky blue buildings tucked in suburban Boynton Beach is over 90 percent…

67-Story Miami Worldcenter Tower JEM Private Residences Breaks Ground In Record Time

The developer of the 67-story JEM Private Residences tower at Miami Worldcenter held a groundbreaking ceremony this morning, putting the development on an ultra-fast timeline. The project moved from market entry to construction commencement in under 5 months, a record-breaking development timeframe for South Florida. The building will eventually top off…

Planned Edgewater Apartment Tower Gets FAA Approval for Permanent Height Of 444 Feet

The FAA has issued height approvals for an Edgewater apartment tower that will soon begin construction. The 42-story rental apartment tower is planned at 1775 Biscayne Boulevard. The FAA issued approval on April 1 for a permanent height of 444 feet above ground, of 448 feet above sea level. The agency also approved two tower cranes at a temporary height of 541 feet above ground…

North Bay Village’s Renaissance: New Developments Usher In An Era Of Dynamic Growth

North Bay Village, nestled between Miami and Miami Beach, is undergoing a significant transformation, evolving from a tranquil island community into a bustling hub of residential and commercial growth. This shift is underscored by the development of over 3,000 new residential units and 1 million square feet of commercial and retail space. Adding to the area’s appeal is…

IMC plans to start first phase of 1,000-unit apartment project with workforce housing in West Little River

IMC Equity plans a 244-unit apartment building with workforce housing, marking the first phase of the company’s 1,000-unit complex in West Little River that may use the Live Local Act. North Miami-based IMC wants to build a seven-story building with at least 31 workforce units and 213 market-rate units on 5 acres on the northeast corner of Northwest 79th Street and Northwest 30th Ave…

In Downtown Miami, 43-Story Apartment Tower by Namdar Now Rising

A downtown Miami apartment tower is now about five floors out of the ground, a new photo shows. The 43-story tower is being built by developer Namdar. It wall have 680 apartments upon completion. Namdar is also planning a second tower on the property, bring the total apartment count to 1,394 units. There won’t be much parking in the new buildings. Just 336 spaces are planned…

Eight-Year, $908M Miami Highway Project – Golden Glades Interchange Rebuild – Begins Construction

The Florida Department of Transportation has commenced construction on a $908m highway interchange rebuild in Miami. The Golden Glades Interchange will get new flyover ramps, new on and off ramps, and new and widened lanes as part of the project. Construction will last for around eight years. The start of construction was accelerated by years thanks to Florida legislators…

Vice City Marina in Brickell hits market for $40M

A public marina in Brickell, near billionaire Ken Griffin’s planned Citadel headquarters development site, hit the market, with an asking price between $37 million and $40 million, The Real Deal has learned. Vice City Marina at 809 Brickell Key Drive in Miami, next to the Four Ambassadors condo complex, is a 26-slip public dock facility that can be expanded to 36 slips…

Miami International Airport & Miami Open Tennis Tournament Break New Records

Miami International Airport and the Miami Open tennis tournament announced that they have both broken new records for passengers and visitors. The 2024 Miami Open had attendance of 395,683, compared to 386,000 in 2023. It is currently the second most attended ATP Masters 1000 tournament, seeing far higher numbers since moving from Key Biscayne.

Berkadia Arranges $328M Construction Loan for Baccarat Residences Luxury Condo Tower in Brickell Area of Miami

Berkadia has arranged a $328 million construction loan for Baccarat Residences Miami, a 355-unit luxury condominium tower planned at the gateway of Brickell Avenue in Miami. Scott Wadler, Michael Basinski, Mitch Sinberg, Matt Robbins and Brad Williamson of Berkadia arranged the floating-rate loan through Bank OZK on behalf of the borrowers, Related Group and GTIS Partners.

Related Group And GTIS Partners Secure $328M Construction Loan From Bank OZK For 75-Story Baccarat Residences Miami

Related Group and GTIS Partners have secured a $328 million construction loan for the Baccarat Residences Miami, a 75-story luxury condominium tower at the gateway of Brickell Avenue. The financing, arranged by Berkadia South Florida, supports the development of the 848-foot-tall skyscraper, which is currently under construction at 99 Southeast 5th Street and is expected…

Related, partner score $328M construction loan for Baccarat Miami

Related Group and its partner scored $328 million in construction financing for their planned Baccarat Residences condo tower in Miami’s Brickell neighborhood. Coconut Grove-based Related, led by Jorge Pérez and his sons Jon Paul and Nick Pérez, and New York-based GTIS Partners secured the floating rate loan from Bank OZK, according to a press release.

Battle with developer may slow new Miami-Dade Courthouse

Money issues may strangle a planned October completion of the new county Civil and Probate Courthouse on Flagler Street downtown as Miami-Dade and the builder trade claims. Mediation Feb. 7 “resulted in an impasse,” said Kathy Labrada, chief efficiency and compliance officer for the Internal Services Department. The matter is slated for review in late April. Builder Plenary Justice…

City Approves Height Increases for MiMo

The Miami City Commission has voted unanimously to approve increased height limits in the MiMo Biscayne Boulevard Historic District under certain conditions. The final language adopted last month through the approved ordinance allows 20 feet of additional height for a project on a one-acre lot or larger, if that project includes a public benefit by a public agency “including but not…”

PortMiami expanding to double freight rail

PortMiami is clearing the tracks for a rail expansion to double railway freight capacity from the port by 2027. “The rail as you see it today, the FEC [Florida East Coast Railway] intermodal yard, was opened here in 2014,” said Hydi Webb, PortMiami director and CEO. “We have 9,000 feet of track, and … it goes from the port here, it connects to their rail yard in Hialeah, and then…

Bal Harbour to retake final vote on Live Local Act ordinances next week

Bal Harbour’s Village Council will retake its final vote next week on Live Local Act ordinances addressing unit size, “poor doors,” parking, construction noise and more tied to the proposed expansion of Bal Harbour Shops. Bal Harbour council members voted unanimously to pass the ordinances last week again on first reading. Part of that included the council readopting rules it voted…

First phase of Lincoln Road makeover funded

A project is underway on Miami Beach to improve Lincoln Road’s 100, 200 and 300 block and first-phase funds are lined up. “We started off with a plan for the 100 block, our first phase,” said Peter Kanavos, a partner of the Ritz Carlton Sagamore group. “We’re working subsequently on trying to do the same to revitalize the 200 and the 300 blocks.” The process is in phases…

Downtown Miami I-395 Signature Bridge taking shape

The soaring concrete arches extending high above a new I-395 expressway are already adding to the City of Miami’s ever-changing skyline. The vast highway improvement project downtown is moving steadily forward, reports the Florida Department of Transportation (FDOT), as the new I-395 Signature Bridge takes final form. The I-395/SR 836/I-95 Design-Build Project…

Crescent Heights proposes 280-unit condo tower in Miami’s A&E District

Crescent Heights proposes a 280-unit condo tower in Miami’s Arts & Entertainment District, near the firm’s planned redevelopment of a school board site. The Miami-based firm, led by Russell Galbut, wants to build the roughly 26-story building between Northeast First Court and Northeast First Avenue, north of Northeast 14th Street, according to an application Crescent Heights…

Tri-Rail working to bring one-seat service downtown

Efforts to create a one-seat Tri-Rail express train between West Palm Beach and downtown Miami continue, says Victor Garcia, South Florida Regional Transportation Authority public affairs director. Director David Dech has been reviewing potential Tri-Rail accommodations “with a one-seat express train ride between West Palm Beach and Miami Central,” Mr. Garcia…

Coral Gables expects million trolley rides, Doral up too

Trolley ridership is growing in cities like Coral Gables and Doral. In Coral Gables, the trolley operates daily except Sundays, and weekday ridership is more than 4,000 per day, which is above pre-pandemic levels, according to Kevin Kinney, the city’s parking and mobility services director. Coral Gables’ Saturday trolley service, which launched in October 2021, has performed better…

Woodhill pays $26M for Hialeah industrial assemblage

Woodhill Real Estate paid $26 million for a Hialeah industrial assemblage at the center of a not-so-neighborly dispute between the seller and a next-door developer. An affiliate of New York-based Woodhill acquired six warehouses spanning nearly 159,000 square feet at 215325 West 75th Place and at 75507620 West 2nd Court, records and Vizzda show. Ameritas Life Insurance…

Sumaida + Khurana Announces Plans For Another Office Building In Miami Beach, A First In The Americas By Pritzker Prize-Winning Architect Eduardo Souta de Moura

Internationally recognized real estate development firm Sumaida + Khurana has announced that Pritzker Prize-winning architect Eduardo Souta de Moura will design its new Class A+ office building at the corner of Fifth Street and Alton Road. This is the first building in North and South America for Souta de Moura. Sumaida + Khurana is partnering with property owners Roslyn…

Pritzker Winning Architect Eduardo Souto de Moura Designs First Miami Building

Portugal’s Pritzker Prize-winning architect Eduardo Souto de Moura is designing a Class A office building at the entrance to South Beach. The development will replace multiple existing buildings on the corner of 5th Street and Alton Road, including a Burger King. This is the first building in North and South America for Souto de Moura. The new 5-story building features unique…

Sumaida + Khurana proposes five-story office building in South Beach

Less than a year after starting construction of the Fifth Miami Beach office project, Sumaida + Khurana is proposing a second office building in the city. New York-based Sumaida + Khurana, led by Amit Khurana and Saif Sumaida, wants to develop the 101,400-square-foot building with a ground-floor restaurant on a 0.8-acre lot at 1100 Fifth Street, near the MacArthur Causeway…

Kroger To Close Opa-Locka Distribution Center, End Deliveries In The Region

Kroger is pulling out of South Florida a little over a year after it launched a delivery service in the region.America’s largest grocery chain is closing a 60K SF distribution center in Opa-Locka at 14350 NW 56th Court , along with locations in Austin and San Antonio, and will stop its Boost delivery service across South Florida and Central Texas on May 25. The company said in a statement…

Details, renderings revealed of planned Four Seasons in Coconut Grove

Developers Ugo Colombo and Nadim Ashi are moving forward on their planned Four Seasons-branded luxury condo project in Miami’s Coconut Grove. Sales are already underway, with buyers skipping reservations and signing contracts for units at the planned 20-story, roughly 70-unit building, a source said. Colombo’s CMC Group is partnering with Ashi’s Fort Partners…

Nef hit with lawsuit over stalled Sweetwater mixed-use project

Workforce Housing Partners is suing global real estate firm Nef in an attempt to completely take over a $110 million planned mixed-use project near Florida International University’s campus in Sweetwater. An affiliate of Workforce Housing, a Miami-based company led by Jason Talbot, is suing Amsterdam-based Nef for allegedly breaching an operating agreement to build Cité – FIU…

Photo: Foundation Pour At 70-Story Okan Tower

A massive foundation pour was completed over the weekend at the Okan Tower construction site. The foundation pour began on Friday night and ran continuously through Saturday night. The original plan called for 1,200 concrete trucks to be brought in for the pour. Okan Tower is planned to rise 70 stories, or 902 feet when it reaches completion, which is planned in 2027.

One Park Tower in North Miami by Turnberry Secures $172M Construction Loan Facilitated By Berkadia

Berkadia announced it arranged for $172 million in construction financing for ONE Park Tower by Turnberry, a 33-story, 292-unit condominium tower located at 2411 Laguna Circle in the 184-acre master-planned community of SoLé Mia in North Miami, Florida. Designed by the award-winning architecture firm Arquitectonica, with interiors by the globally acclaimed…

Construction Starts on Origin Residences by Artefacto at 9760 West Bay Harbor Drive in Bay Harbor Islands

Contractors have officially broken ground on Origin Residences by Artefacto, a luxury housing development in the Bay Harbor Islands. The structure will measure seven stories and offer 27 units, with the largest measuring 2,330 square feet and the smallest starting at $1.9 million, according to the venture’s website. They range from two-bedroom to four-bedroom floorplans.

Florida Law Speeds Demolition of Iconic Buildings in Miami Beach

A new law in Florida limits the ability of municipalities to prevent the demolition of aging coastal buildings, including architectural icons that have been granted local historical status. The Resiliency and Safe Structures Act, recently signed into law by Gov. Ron DeSantis, strips local municipalities of their authority to ban, restrict or prevent the demolition of non-conforming…

Berkadia Arranges $172M Construction Financing for Residential Tower in North Miami

Berkadia has arranged a $172 million loan to finance the construction of ONE Park Tower by Turnberry, a residential tower located at 2411 Laguna Circle in North Miami. Scott Wadler, Alec Fox, Mitch Sinberg, Brad Williamson and Matt Robbins of Berkadia secured the financing through Bank OZK on behalf of the developer, Turnberry. Upon completion, the community will…

CREI Holdings Secures $67M Loan for Affordable Housing Development in Sweetwater

CREI Holdings has secured a $67 million construction loan for the development of Li’l Abner III, an affordable and workforce housing community in Sweetwater, roughly 15 miles outside of Miami. Centennial Bank provided the financing. Upon completion, which is scheduled for the second quarter of 2026, the property will feature an eight-story building with 328…

Okan Tower Prepares for Massive 1,200 Truck Concrete Foundation Pour In Downtown Miami

A team of 300 workers, operating in three shifts and utilizing 1,200 concrete trucks, is set to pour the foundation for Okan Tower, a forthcoming 70-story highrise development at 555 North Miami Avenue developed by Okan Group. Positioned to be a new landmark in Downtown Miami’s skyline, the tower is expected to reach 902 feet, making it one of the city’s tallest buildings…

Massive Foundation Pour Planned This Weekend For Okan Tower, One Of Miami’s Tallest Towers

A massive foundation pour is planned this weekend for Okan Tower, which is set to become one of the tallest buildings in Miami. “This marks a significant milestone for the Okan Tower team, and we are filled with pride and excitement as our vision for Miami’s skyline transforms into a reality,” said Bekir Okan, Chairman of developer Okan Group. “Okan Tower represents…”

Lynd buying Miami Worldcenter dev site for $35M, plans 551-unit condo tower

Lynd Group is buying a Miami Worldcenter development site for roughly $35 million, with plans to build a 551-unit condo tower. The San Antonio, Texas-based firm has the half-acre assemblage on the northeast corner of North Miami Avenue and Northeast Ninth Street under contract, according to sources at Lynd. The land is immediately south of another half-acre site that Lynd…

First Look Inside Brickell’s 90-Story Supertall Dolce&Gabbana Condo Hotel

Dolce&Gabbana and developer JDS unveiled new details and renderings yesterday of a 90-story supertall condo hotel they are planning at 888 Brickell. The 1,049-foot building will be the tallest in Miami, the developer said. It will feature ivory travertine and matt black steel beams, along with a gold beaded ‘necklace’ towards street level, with Studio Sofield the architect. Inside the…

Bowlero Opens 30,000 SF Lucky Strike Bowling Alley at Miami Worldcenter

Bowlero Corp. has opened Lucky Strike Miami, a 30,000-square-foot entertainment venue within the $6 billion Miami Worldcenter development. The venue is the second new build for Bowlero using the Lucky Strike brand since it was acquired in September. Lucky Strike Miami features 28 bowling lanes, an arcade, craft cocktail bar, food service and a VIP room with six…

WSJ: How LVMH Helped Turn an Abandoned Miami Warehouse District Into a Luxury Hot Spot

When Miami developer Craig Robins welcomed LVMH Chief Executive Bernard Arnault to his office in the city’s Design District, there was little about the gritty neighborhood to suggest it would ever become a mecca for luxury goods. The dozen blocks consisted of squat, single-story concrete warehouses, furniture showrooms, and empty lots. But the two men shared a vision that the area…

Coral Gables’ Miracle Mile Makes Timeout’s List of 30 coolest streets in the world

Our pick for one of the world’s coolest neighbourhoods in 2023, Coral Gables’ downtown is anchored by Miracle Mile, a palm and oak tree-lined street where you’ll find plenty of independent shops and some of Miami’s best restaurants (including several that recently earned nods from the Michelin Guide). Like the rest of its historic neighbourhood, Miracle Mile and its…

New Fort Lauderdale Police Headquarters Undergoes Construction at 1300 W. Broward Boulevard in Fort Lauderdale

Fort Lauderdale’s getting a $140 million police headquarters. Construction started on the 192,263-square-foot venture in summer 2023. The three-story building will replace the former police headquarters, which was less than half of the size of the new facility. According to the City of Fort Lauderdale, the energy-efficient complex will feature training rooms, an evidence warehouse…

Lurra pays $59M for downtown Fort Lauderdale apartment building

Lurra Capital bought the Queue Apartments in downtown Fort Lauderdale for $59 million, marking the Swiss firm’s continued bet on South Florida’s multifamily market, The Real Deal has learned. Zurich-based Lurra, through its Real Lurra real estate arm, bought the seven-story, 192-unit building at 817 Southeast Second Avenue, according to a Lurra news release. The deal…

New York-Based Time Equities Proposes More Than 900 Apartments at Boynton Beach Town Square

New York-based Time Equities hopes to get approval for more than 900 apartments at Boynton Beach Town Square. The proposal concerns north and south parcels. Here’s what we know. The north parcel, measuring 3.7 acres, could offer an eight-story building with 433 residences, ranging from studios to three-bedroom units. Communal amenities would include a swimming…

Baptist Health sells Boynton Beach medical office campus for $38M

Bethesda Hospital, a subsidiary of Baptist Health South Florida, sold a former medical office campus in Boynton Beach for $37.7 million. A joint venture between Orlando-based Foundry Commercial and Greenwich, Connecticut-based Wheelock Street Capital acquired the vacant 30.7-acre site at 3800 South Congress Avenue, records show. The deal breaks down…

Historic ‘Gulfstream Hotel’ Set for Expansion and Renovation at 1 Lake Avenue in Lake Worth Beach

The Gulfstream Hotel’s renovation and expansion are just one step closer to reality, with construction having already started on the first phase. Our sources indicate that the historic hotel, erected in 1925, was mostly “gutted” for the past few years. Yet, the renovation hopes to transform the multi-level building into a “hipstoric” destination. Developers hope to maintain the historic elements…

Optimism Prevails In Industrial Capital Markets This Year

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Video: Modiv Industrial CEO Aaron Halfacre Discusses Investing in Industrial and Manufacturing Real Estate

The Conversation: Understanding America’s Industrial Real Estate Landscape In a recent episode of “America’s Commercial Real Estate Show,” the show host delved into the complex and evolving world of industrial real estate with his guest, Aaron Halfacre, CEO and President of Modiv Industrial. Modiv Industrial is a Real Estate Investment Trust (REIT) that owns and…

RealPage Details Complexity of Fighting Fake Identities & Documents in Multifamily’s Largest National Fraud Survey to Date

RealPage, a leading global provider of software and data analytics to the real estate industry, today released the findings from its proprietary fraud study, the largest national fraud survey of the multifamily industry conducted to date. With more than 400 property management professionals responding across five major U.S. markets, the study uncovers the drivers behind…

Multifamily Leaders Up In Arms As FCC Mulls Banning Bulk Broadband Billing

A potential ban on bulk WiFi billing for apartments and their tenants has sparked fierce pushback among industry organizations, while tenant advocates and the Federal Communications Commission argue such a ban would allow tenants more choice. The FCC is considering a proposal that would restrict residential landlords and condo boards from providing broadband…

How real estate investors can prepare for an economic rebound

An economic rebound may not be on the immediate horizon, but multifamily investors can still make preparations for the future. Multifamily investors should look at economic indicators, such as housing markets, interest rates, and political and geopolitical dynamics—including the upcoming U.S. election—to get a clearer picture of the economy. Performing market research…

Florida Gov. DeSantis signs anti-squatters bill into law

Gov. Ron DeSantis signed a bill that he promises will “put an end to the squatter scam” in Florida. DeSantis signed House Bill 621, which allows a property owner to ask law enforcement to remove squatters from properties and creates penalties for those who violate the law. The law would not apply to former or current tenants involved in a legal dispute with the landlord.

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April 3, 2024

Video: Modiv Industrial CEO Aaron Halfacre Discusses Investing in Industrial and Manufacturing Real Estate

The Conversation: Understanding America’s Industrial Real Estate Landscape

In a recent episode of “America’s Commercial Real Estate Show,” the show host delved into the complex and evolving world of industrial real estate with his guest, Aaron Halfacre, CEO and President of Modiv Industrial. Modiv Industrial is a Real Estate Investment Trust (REIT) that owns and leases manufacturing facilities across the United States. The conversation provided insights into the resurgence of manufacturing in the U.S., the unique challenges and opportunities within the industrial real estate sector, and the investment potential it offers. The essence of this conversation revolves around industrial and manufacturing real estate throughout the United States. Given this, recognize that some observations may be less pertinent or entirely irrelevant to such in Miami.

The Resurgence of U.S. Manufacturing

The host kicked off the discussion by addressing the buzz around the resurgence of manufacturing in the United States. With global challenges like supply chain disruptions and the COVID-19 pandemic, there has been increasing talk about bringing manufacturing back to U.S. shores. Halfacre confirmed that this trend is indeed a reality. He pointed out that various factors, including supply chain disruptions, geopolitical tensions, and a shift towards just-in-case inventory strategies, have contributed to the revival of domestic manufacturing.

The Importance of Critical Manufacturing

Halfacre emphasized that Modiv Industrial focuses on critical manufacturing sectors such as aerospace, medical, and defense. These industries produce goods that are indispensable and cannot be substituted or outsourced easily. Unlike consumer discretionary items, which can afford longer lead times, critical components require a more immediate and reliable supply chain, making domestic production essential.

Long-Term Leases and Specialized Facilities

One distinguishing feature of industrial real estate in the manufacturing sector is the prevalence of long-term leases, typically spanning 20 to 25 years. These leases reflect the specialized nature of manufacturing facilities, which are often tailored to accommodate specific equipment and production processes. For instance, equipment like heavy presses or specialized machinery necessitates custom-built spaces that aren’t easily interchangeable, contributing to the stability of tenancies.

Investment Dynamics in Industrial Real Estate

The host and Halfacre discussed investment dynamics within the industrial real estate sector, particularly focusing on cap rates and barriers to entry. Unlike traditional industrial properties like warehouses or distribution centers, manufacturing facilities tend to have slightly higher cap rates, reflecting the specialized nature of the assets and the longer lease terms. Moreover, the barrier to entry is higher due to the substantial upfront investment required for specialized manufacturing infrastructure, which often deters individual investors.

Underwriting Manufacturing Facilities

Halfacre shed light on the nuanced process of underwriting manufacturing facilities, emphasizing the importance of understanding the industry, the specific needs of tenants, and the local market dynamics. Unlike retail or office spaces, where metrics like demographics and foot traffic play significant roles, underwriting manufacturing assets requires a deep dive into the operational aspects of the tenant’s business, including supply chain reliability, labor requirements, and industry outlook.

The Human Element in Industrial Real Estate

Throughout the conversation, Halfacre underscored the human aspect of industrial real estate. Despite the focus on tangible assets and financial metrics, successful investment in manufacturing facilities hinges on building relationships with tenants, understanding their operational needs, and aligning investment strategies with long-term economic trends.

Conclusion

The dialogue between the show host and Aaron Halfacre provided valuable insights into the industrial real estate sector’s intricacies, highlighting its resilience, investment potential, and the critical role it plays in supporting domestic manufacturing. As the U.S. continues to navigate global challenges and economic shifts, industrial real estate stands as a cornerstone of economic stability, offering investors opportunities for long-term growth and income generation.

In summary, the conversation illuminated the multifaceted nature of industrial real estate, emphasizing its significance in shaping the future of American manufacturing and its enduring appeal as an investment asset class.

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March 29, 2024

Miami Commercial Real Estate News March 27, 2024: Brickell Assemblage Hits Market for $650M; Elite Private School Scraps $180M Campus Plans; More…

Aimco’s waterfront Brickell office and apartment towers hit the market for $650M: source

Brickell hit the market for roughly $650 million, marketed as a possible redevelopment opportunity, The Real Deal has learned. The Denver-based real estate investment trust wants to sell the 32-story Brickell Bay Office Tower at 1001 Brickell Bay Drive and the 31-story, 357-unit Yacht Club Apartments at 1111 Brickell Bay Drive, according to a news release from the listing brokers…

28-Lane Lucky Strike Opens At Miami Worldcenter As Project’s Next Phase Being Planned

Bowlero’s Lucky Strike opened this week at Miami Worldcenter, while the next phase of the development is being planned. Lucky Strike Miami is located at Worldcenter’s Jewel Box and features 28 lanes, including a VIP room with six private bowling lanes. The 30,000 sq. ft. facility also features an arcade, a craft cocktail bar, and culinary offerings. Bowlero first announced the…

Lucky Strike Returns to Miami After a Decade

After closing a decade ago in Miami Beach, Lucky Strike has returned with bowling, arcade games, and, of course, a food and cocktail menu that screams Miami — this time, in downtown Miami. Over a decade ago, the bowling venue was a popular venue just off of Lincoln Road in South Beach, but it closed down in December of 2014. Years later, in September of 2023, Bowlero…

R&B Realty’s Gateway at Wynwood hit with foreclosure lawsuit

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$113M Foreclosure Suit Filed At New York Developer’s Wynwood Office

The developer of a recently completed Wynwood office building is at risk of losing control of the property after falling behind on mortgage payments, according to a foreclosure suit filed this week. New York-based R&B Realty Group was sued Tuesday, with its lender claiming it hadn’t made a payment since November on two mortgages totaling $113M tied to The Gateway at Wynwood.

New Construction Hotel Proposed In South Beach With 238 Rooms

An application has been filed with Miami Beach planners for a new hotel on Washington Avenue. Renderings show the hotel will be named The Cloud One. The chain has locations in New York, Hamburg and Nuremberg. The new South Beach hotel will rise 7 stories and have 238 hotel keys, with a rooftoop pool deck and lounge with outdoor seating, along with a ground floor…

Miami-Dade Breaks Ground On Dadeland South Intermodal Station

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South Florida MF Rents Rise Dramatically Since COVID, While Bay Area Stagnates

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South Florida and Bay Area Truly a Tale of Two Apartment Markets

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CREI Holdings Secures $67 Million In Construction Financing For ‘ Li’l Abner III’ Affordable Housing Project In Sweetwater

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CREI lands $67M construction loan for Sweetwater apartment building

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Developer Files Pre-Application for 856-Unit Complex at the Earlington Heights Metrorail Station

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Judge Nixes Approval Of Miami-Dade UDB Expansion For Industrial Megaproject

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Design review board approves Art Falcone’s condo-hotel at Miami Worldcenter

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Top Off Ceremony Held For 39-Story Downtown Miami Tower

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Construction Underway On $136M Parking Garage At MIA

A new parking garage is now under construction at Miami International Airport. The new Park 6 garage is being built adjacent to the existing Flamingo Garage, and will have 2,240 spaces. Miami-Dade County says it is spending $136 million on the project. That equates to a cost of around $61,000 per space. Both passenger and employees will use the new 7-story garage, the county…

HTG, AM Affordable Housing Open $44M Tucker Tower Senior Apartments in Miami

Housing Trust Group (HTG), a leading multifamily developer, and AM Affordable Housing, a nonprofit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning, have opened Tucker Tower. The $44 million affordable housing community for seniors age 62 and older is located in the Perrine neighborhood of southern Miami. Tucker Tower, the eighth joint venture…

Japanese drugmaker Noven gets county aid to expand in Miami-Dade

Miami’s pharmaceutical world is gearing up for an expansion of Japanese-owned Noven Pharmaceuticals Inc. as county commissioners last week approved a $709,420 incentive to grow Noven’s South Dade operations. The company plans to add 24,500 square feet to its current operations in 118,600 square feet at 11960 SW 144th St. and increase employment by 10 persons to…

Plans for Avenues elite private school in Miami “indefinitely suspended”

Avenues The World School “indefinitely suspended” its planned development of a $180 million private school campus in Miami, more than five years after acquiring the site. A lack of demand for an elite private school like Avenues wasn’t the issue. Top private schools across South Florida have reported long wait lists for enrollment, with private school acceptance becoming…

Elite Private School Backs Out Of $180M Miami Campus

Wealthy new Miamians who are desperate to place their children in private schools have one less option to hold out hope for. Avenues: The World School has canceled its plans to build a campus in the city’s Little Haiti neighborhood that could have accommodated 2,500 students, the private school confirmed to Bisnow. Avenues had a deal in place to build a $180M, 717K SF facility…

Ronald Wasson: Aventura city manager seeks to develop parks, open spaces

For the past six years, Ronald Joseph Wasson has been running the City of Aventura as the city manager – putting the residents’ quality of life first. Mr. Wasson says he plans to continue to provide beautiful landscaping, open spaces and parks along with negotiations for a new school development and maintaining the most qualified city staff.  With over 35 years of executive-level management…

Housing Trust Group, AM Affordable Housing Celebrate Grand Opening Of ‘Tucker Tower’ in Perrine, Miami-Dade County

Housing Trust Group (HTG), a leading multifamily developer, and AM Affordable Housing, a nonprofit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning, are excited to announce the completion of Tucker Tower, a new $44 million, 120-unit affordable housing community for seniors aged 62 and older at 9910 Hibiscus Street in the Perrine neighborhood…

Turnberry scores $172M construction loan for SoLé Mia condo tower in North Miami

Turnberry secured a $172 million construction loan for One Park Tower at SoLé Mia, a planned luxury condo tower. Bank OZK, one of the largest construction lenders for South Florida projects, is providing the financing for the planned 33-story, 292-unit building at 2411 Laguna Circle in North Miami. A Berkadia team led by Scott Wadler and Alec Fox arranged the loan, which closed…

Photo: Equipment At Miami Freedom Park Stadium Construction Site

Equipment can be seen at the Miami Freedom Park construction site, where a 25,000 seat stadium is planned for Inter Miami. Multiple construction permits are now in process for the site, including phased foundation and vertical permits. According to Miami New Times, Miami-Dade commissioners voted in December to ask for $5 million of state taxpayer funding to clean up…

Short-Term-Rental-Friendly 172-Unit Domus Brickell Park Breaks Ground

A short-term-rental-friendly condo project has broken ground in Brickell and obtained construction financing. Domus Brickell Park is planned to include 172 condo units in a 12-story building. North Development, a joint-venture between Ricardo Dunin’s Oak Capital and Peru-based Edifica, led by Juan Carlos Tassara, held a groundbreaking ceremony at the construction site…

North Development Secures $70 Million Construction Loan, Breaks Ground On Domus Brickell Park

North Development has begun construction on Domus Brickell Park, a new addition to Miami’s Brickell Financial District known for facilitating short-term rentals. The project, a collaborative venture between Oak Capital’s Ricardo Dunin and Peru’s Edifica led by Juan Carlos Tassara, secured a $70 million construction loan from Forman Capital and Core Capital. Designed…

Ricardo Dunin, Peruvian partner score $70M loan for Domus Brickell

Developers Ricardo Dunin and Juan Carlos Tassara secured a $70 million construction loan for Domus Brickell Park, a short-term rental friendly condo development in the works. Forman Capital and Core Capital provided the financing to North Development, a joint venture between Dunin’s Oak Capital and Tassara’s Edifica, for the planned 12-story, 172-unit Brickell-area building…

Beitel lists Edgewater dev site for $75M, but is it really for sale?

An out-of-town developer boasts he’s still committed to building a mega-project in Miami. So why would Ben Beitel go through the trouble of hiring a commercial brokerage to market his entire blocklong site? In a recent phone interview, Beitel insisted his eponymous Brooklyn-based firm is not really interested in selling the nearly 3-acre development site in Edgewater.

Aria Development Group, Largo, and Place Projects Announce Groundbreaking Of 2200 Brickell

Aria Development Group, Largo, and Place Projects have announced the official groundbreaking of 2200 Brickell, a luxury 5-story residential development at 2200 Brickell Avenue in the heart of Miami’s Brickell neighborhood. Designed by Revuelta Architecture International, with interiors by the award-winning team at ODA New York, this building will offer 105…

Craig Robins and partners add retail building to Miami Design District portfolio

Craig Robins and his partners have a new addition to their Miami Design District portfolio, picking up a retail building for $18 million. An affiliate of Miami Design District Associates acquired a 5,668-square-foot store at 80 Northeast 40th Street, records and Vizzda show. Miami Design Center Associates is a partnership between Robins’ Miami-based Dacra, L Catterton Real Estate…

2200 Brickell Development With 105 Luxury Condos Breaks Ground

The developers of 2200 Brickell held a groundbreaking ceremony this morning. The 5-story development includes 105 luxury condos priced from $1.2 million. Aria Development Group, Largo, and Place Projects are the developers. Revuelta is the architect, with interiors by ODA New York. Completion is planned for 2026.

New Tower At Miami Worldcenter’s Block C Approved

Miami’s Urban Development Review Board voted yesterday to recommend approval of a new tower at Miami Worldcenter’s Block C. The board praised the clean and elegant design of the tower, according to architect Nichols. The new tower is planned to rise 53 stories, or 632 feet above sea level at the roof, and include: 280 hotel keys 351 multifamily units with multiple amenity levels bar…

Miller Construction Delivers 143,571 SF Industrial Facility in Medley

Miller Construction Co. has delivered a 143,571-square-foot warehouse located at 7290 N.W. 77th Court in Medley, a town in Miami-Dade County. Woods Grove Capital is the developer of the Class A industrial facility, which features 36-foot clear heights, 42 columns with 54-foot spacing, 37 dock doors and two drive-in ramps. The project team includes IBI Group’s RLC Architects, Puga…

South Florida Retail Real Estate Summary: Leases, Sales & Construction Projects

Here’s our quarterly summary South Florida commercial real estate focusing on Miami retail real estate. The report includes statistical highlights (cap rates, vacancy rates, absorption, etc), the latest retail transactions, signed leases, retail trends, and current market activity. The retail real estate report is updated by our CRE experts who focus on the retail real estate sector. The analysis…

It May Be the End of an Era for Duffy’s Tavern in Miami

Just on the edge of Coral Gables lies Duffy’s Tavern, a quirky, cash-only Irish sports bar that has served beer, loaded sandwiches, soups and chili, fish dip, and burgers to a sports-loving crowd for almost 70 years. It’s been the place to go to when you want to cheer a local team on, especially the Hurricanes or the Dolphins because every inch of wall space is lined with a sports banner…

Lease roundup: Mac & cheese restaurant moving HQ in Boca Raton, Raccoon Coffee opening in Miami

Raccoon Coffee leased 1,800 square feet at 23 Northeast 17th Terrace in Miami, marking the first retail tenant at the development, according to the landlords’ news release. Wynwood Haus is in the Arts & Entertainment District, which is south of Wynwood. Raccoon Coffee will operate a full-service food truck in front of its space until the interior buildout of its new space is finished…

Why there’s confidence South Florida is (mostly) immune to a commercial real estate correction

Whatever the national real estate market experiences, South Florida’s market overdoes it. That’s the usual playbook. But commercial real estate experts here and elsewhere think the region’s commercial real estate market should be largely immune to the difficulty other areas are experiencing. And there are plenty of worries about commercial real estate and the risks it may pose to the…

BTI Partners Tops Off Construction On ‘The Bread Building’ At 1740 S. Young Circle In Downtown Hollywood

Fort Lauderdale-based BTI Partners has reached a significant milestone with the topping-off of The Bread Building, a 25-story apartment tower at 1740 South Young Circle in downtown Hollywood. The redevelopment of the former Hollywood Bread Building site will bring 362 luxury apartments and 16,000 square feet of retail space to the city’s vibrant heart. Modis Architects…

Kushner buying dev sites near Hard Rock Hotel & Casino in Hollywood

Kushner Companies is under contract to buy a land assemblage in Hollywood near the Seminole Hard Rock Hotel & Casino, The Real Deal has learned. New York-based Kushner, led by Charles Kushner, his daughter Nicole Kushner Meyer and Laurent Morali, is buying the two adjacent plots at 4220 and 4231 North 58th Avenue, according to sources. The sites are just south of Stirling…

37-Story ‘Icon Beach’ To Offer 350 Condos At 3724 South Ocean Drive in Hollywood

Sales have launched for a 37-story condo in Hollywood, Florida––despite not breaking ground yet. Icon Beach is set to offer 350 condos, ranging from one-bedroom to three-bedroom floorplans. The Real Deal reports that homes would span 950 to 2,600 square feet, with ownership starting at $825,000. In addition to the residences, Icon Beach would offer 30,000 square feet…

Construction Starts on ‘The Tropic’ at 1744 N. Federal Highway in Hollywood

Construction has started on The Tropic, a 224-unit development in Hollywood, Florida. The 18-story workforce housing project will comprise one-bedroom to three-bedroom homes, with half intended for those making at or above 100 percent of the area median income (AMI). At the time of publication, Broward County Affordable Housing noted that the AMI for 2022 in Broward…

Stiles, PGIM’s new apartment building in Plantation hits market for $150M

Stiles and PGIM Real Estate’s 315-unit Ellsworth apartment building in Plantation hit the market for roughly $150 million, The Real Deal has learned. Fort Lauderdale-based Stiles and Newark, New Jersey-based PGIM want to sell the property, which is 93 percent leased, according to a source, who also confirmed the asking price. Ellsworth offers one-bedroom to three-bedroom units…

Hines, Urban Street Development Celebrate Groundbreaking Of FAT Village In Flagler Village, Fort Lauderdale

The FAT Village master plan, a collaborative effort between Hines and Urban Street Development, has broken ground, setting the stage for vertical growth within the 5.6-acre site in Fort Lauderdale. This expansive urban redevelopment aims to transform the FAT Village district with an influx of new housing, retail options, dining venues, Class AA office spaces, and entertainment…

Developer Proposes 189-Unit Complex for 700 N.W. First Avenue, Fort Lauderdale, Florida

Blue River Realty hopes to get approval for a multi-family housing development in Fort Lauderdale. The unnamed venture would measure 12 stories, requiring 280,972 square feet of new construction. Upon completion, it would offer 189 apartments—offering studios and two-bedroom units. Per the South Florida Business Journal, they would span about 490 square feet to 1,355 square feet…

FAT Village Breaks Ground in Fort Lauderdale, to Have 850 Residential Units

Fort Lauderdale’s FAT Village has broken ground after developers secured $220m in construction financing. The development site spans 5.6 acres over two city blocks, and will include: 850 residential units 200,000 square feet of Class AA office space 80,000+ square feet of food, shopping, entertainment, art studios, and galleries 1,200 parking spaces Completion is planned in 2026.

Trinsic plans 340-unit apartment building in Fort Lauderdale’s Cypress Creek area

Trinsic Residential Group plans to build a 340-unit apartment building with an affordable housing component on a parking lot next to a Westin hotel in the Cypress Creek area of Fort Lauderdale. Trinsic hopes to break ground on the 12-story apartment building by the end of this year and will operate the building under its Aura brand, said Chad Bradshaw, Trinsic’s managing director…

DigitalBridge Signs 79 KSF Delray Beach HQ Lease

Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital…

Related Group & BH Group Unveil The Ritz-Carlton Residences, West Palm Beach

Miami-based real estate developers Related Group (Related) and BH Group have unveiled The Ritz-Carlton Residences, West Palm Beach (The Residences) at 1717 North Flagler Drive. Envisioned by an award-winning team that includes design luminaries Arquitectonica and Rockwell Group, The Residences reflect the highest expression of the brand in a boutique setting – offering…

Tiger Woods-Backed Golf League Rolls Out New Stadium Plans Following Collapse At First Arena

After heavy storms led to the partial collapse of its under-construction arena, a virtual golf league backed by Tiger Woods and Rory McIlroy is taking a mulligan with a more resilient design. The league, called TGL presented by SoFi, revealed design renderings and plans for a new stadium in Palm Beach Gardens, Florida, on the Palm Beach State College campus. The league is expected…

Lotis scores $44M construction loan for Wellington mixed-use project

Lotis Group scored a $44 million construction loan for the first phase of its massive planned Wellington mixed-use project. Lotis, led by John Markey, Adam Freedman and James Gielda, plans The Square & Residences at Lotis Wellington, as the first phase is named, with 372 apartments in garden-style complexes; 60,000 square feet of medical offices and 61,400 square feet…

Trump Plans Office Building at his Jupiter Golf Course as $454M Judgement Looms

With New York’s attorney general preparing to potentially seize Donald Trump’s properties, the former president is planning to build a new office at his golf course in Jupiter, Florida. Plans call for a three-story office building on a parking lot at Trump National, the golf club north of Palm Beach that the former president has owned since 2012. The 45K SF building could cost up to $15M..

Industrial Market Will Resume Expansion In 2025, Experts Say

NAIOP pinpoints 2025 as when the industrial market will start to expand. It estimates that quarterly net absorption of industrial space will average 14 million square feet per quarter over the next two years, or 62.8 and 49.1 million square feet in 2024 and 2025, respectively. This forecast represents a relative “cooling” trend following what had been a protracted period of above-average…

Video: Seyfarth Partner Ron Gart Presents 2024 Real Estate Sentiment Survey

The Discussion: Navigating Commercial Real Estate Trends; Insights from the 2024 Market Sentiment Survey In the ever-evolving landscape of commercial real estate, staying ahead of market trends is paramount for professionals across the industry. To shed light on the current sentiments and expectations within the sector, the 2024 Real Estate Market Sentiment Survey…

How technology can help optimize multifamily operations

“Embracing technology unlocks efficiency and sustainability across all industries, particularly in the multifamily space,” said Witness Yi, Central Region Treasury Services Manager for Commercial Term Lending. “In today’s world of growing competition, operational bottlenecks and rising costs, leveraging technology not only keeps our clients’ costs in check but differentiates…”

DeSantis signs law easing demolitions of aging coastal buildings, creating “massive redevelopment implications”

Florida Gov. Ron DeSantis signed into law a controversial bill that will make it easier to demolish aging coastal properties, another major win for developers from the Florida Legislature. Senate Bill 1526 strips local municipalities of their authority to ban, restrict or prevent the demolition of “nonconforming” and unsafe structures. The exceptions are for buildings individually placed…

“Even more difficult.” Here’s how South Florida’s condo buyout landscape will shift following landmark ruling

The developer of the planned Edition Residences in Miami’s Edgewater is on unforeseen footing after a recent ruling that could cost it millions of dollars, and alter the landscape of future condo buyouts and terminations statewide. Two Roads, a Miami and West Palm Beach-based development firm led by Reid Boren and Taylor Collins, completed a bulk $150 million purchase…

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March 27, 2024

Video: Seyfarth Partner Ron Gart Presents 2024 Real Estate Sentiment Survey

The Discussion: Navigating Commercial Real Estate Trends; Insights from the 2024 Market Sentiment Survey

In the ever-evolving landscape of commercial real estate, staying ahead of market trends is paramount for professionals across the industry. To shed light on the current sentiments and expectations within the sector, the 2024 Real Estate Market Sentiment Survey, conducted by Seyfarth, offers a comprehensive glimpse into the perspectives of industry stakeholders.

Hosted by Michael Bull, the discussion delved into key findings from the survey with Seyfarth Partner Ron Gart, offering insights into market sentiment, emerging trends, and areas of focus for commercial real estate professionals moving forward. The focus of this discussion is on commercial real estate across the United States, with observations that may have varying relevance to commercial properties in Miami.

Optimism Reigns Supreme

One of the notable takeaways from the survey is the surge in optimism among respondents compared to previous years. The sentiment of opportunity outweighing retrenchment rose significantly, with 83% of participants expressing a positive outlook for the commercial real estate landscape in 2024. Factors contributing to this optimism include expectations of interest rate adjustments, the emergence of distressed asset opportunities, and a perceived sense of stability amidst a presidential election year.

The Impact of Political Dynamics

While the survey found that the majority of respondents did not anticipate significant implications on commercial real estate based on the outcome of the presidential election, there was a notable preference among participants for former President Trump over President Biden regarding policies perceived to benefit the industry. This preference was attributed to expectations of tax cuts, deregulation, and potential economic stability under Republican leadership, aligning with industry interests.

Transaction Dynamics and Interest Rate Expectations

Transaction volume and activity in buying and selling remain focal points for industry professionals. The survey indicated a heightened interest in distressed assets, with 74% of respondents expressing intent to explore opportunities in this segment—a notable increase from previous years. Expectations regarding interest rate adjustments were moderated, with realism prevailing among respondents despite earlier speculations of significant rate cuts. The majority anticipated a more conservative approach by the Federal Reserve, aligning with recent market dynamics.

Adapting to Remote Work Trends

The shift towards remote work and its implications for commercial real estate were also examined in the survey. While concerns about remote work persist, particularly regarding its impact on office culture, respondents displayed a growing acceptance of hybrid work models. A significant portion indicated a willingness to embrace remote work arrangements, signaling a shift in traditional office dynamics. However, a majority still anticipated spending four to five days in the office, underscoring the enduring value of physical workspace.

Challenges and Opportunities Ahead

Despite the prevailing optimism, challenges such as interest rates, financing availability, and construction costs remain key considerations for industry professionals. Respondents identified interest rates as the primary concern, followed by debt financing and construction costs. Additionally, the rising prominence of property insurance premiums emerged as a potential area of focus for future surveys, reflecting evolving market dynamics and emerging challenges.

Embracing Technology and Innovation

The survey also highlighted the growing adoption of technology, particularly artificial intelligence (AI), within the commercial real estate sector. While approximately half of respondents reported either implementing or planning to implement AI solutions, there remains considerable room for growth and innovation in this space. From design and development to data analysis and contract administration, AI offers transformative opportunities for streamlining processes and enhancing decision-making in commercial real estate.

Looking Ahead

As commercial real estate professionals navigate the complexities of an evolving market landscape, the insights gleaned from the 2024 Market Sentiment Survey offer valuable guidance for strategic planning and decision-making. By remaining attuned to market dynamics, embracing innovation, and leveraging emerging opportunities, stakeholders can position themselves for success in an increasingly dynamic and competitive environment.

The 2024 Real Estate Market Sentiment Survey serves as a barometer for industry sentiments, providing a roadmap for navigating the opportunities and challenges that lie ahead. By fostering collaboration, innovation, and adaptability, commercial real estate professionals can chart a course towards sustainable growth and prosperity in the years to come.

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March 22, 2024

Miami Commercial Real Estate News March 20, 2024: Condo Termination Ruling Puts Buyouts in Limbo; Adam Neumann’s Plans at Miami Worldcenter; More…

WeDevelop: Here are Adam Neumann’s plans at Miami Worldcenter

Flow, the apartment startup founded by billionaire Adam Neumann and backed by venture capital firm Andreessen Horowitz, has three projects in various stages of development at Miami Worldcenter. The buildings are valued at about $450 million, according to a source. Neumann’s purchases at Miami Worldcenter date back to at least 2021, but additional details about his projects…

Adam Neumann’s Flow Expands Miami Holdings Despite Brand’s Delayed Launch

Adam Neumann’s startup Flow is investing heavily in projects at Miami Worldcenter as it expands its South Florida holdings. The real estate firm started by WeWork’s co-founder is building a 41-story second phase of the Caoba apartments, a 44-story tower it purchased in 2021. Flow also has plans for office and retail space across the street, according to a municipal bond offering…

Fisher Brothers And Suffolk Construction Top Off ‘Wynhouse Miami’ At 2200 NW 1st Avenue In Wynwood

Fisher Brothers has topped off construction on Wynhouse Miami, an 8-story mixed-use development located at 2200 Northwest 1st Avenue in the heart of Miami’s Wynwood neighborhood. This construction milestone, achieved by national contractor Suffolk Construction, brings the project closer to opening its doors in Q1 2025. Designed by Nichols Architects…

Falcone proposes 53-story condo-hotel at Miami Worldcenter

Falcone Group wants to build a 53-story condo-hotel at Miami Worldcenter, marking the latest planned addition to the 27-acre mixed-use complex. The Boca Raton-based firm, led by Art Falcone, proposes a tower with 280 hotel keys, 351 condos, 3,500 square feet of retail and an 8,000-square-foot restaurant on a 0.7-acre site at 155 Northeast 10th Street in Miami, according to a proposal…

Appeals court ruling upending an Edgewater condo termination could put buyouts statewide in limbo

An appeals court ruling this week upending a condo termination in Miami is causing shockwaves among developers, as it will likely put buyouts in legal limbo. The court’s opinion regarding Biscayne 21 in Miami’s Edgewater marks a major win for the condo owners who fought to block the termination of their association. Furthermore, it has huge implications for developers…

‘We Call It Herding Cats’: Sellers Are Slowing The Expected Wave Of Condo Buyouts

Unit owners at the Four Winds condos in Surfside were busy evaluating bids from contractors for repairs to secure the building’s 50-year occupancy recertification in early 2023 when two developers appeared with unsolicited offers to buy the property. Naftali Group sent a letter last January saying it would pay $115M for the 12-story, 144-unit building, a price it said was a 56% premium…

Design Refinements Submitted For 800-Room Grand Hyatt Miami Beach

Developers planning the Grand Hyatt Convention Center hotel in Miami Beach have submitted design refinements to a city board for review. The Miami Beach Design Review Board had requested the changes at a previous meeting, and also requested that the updated designs be submitted for review once they had been made. The developer is additionally requesting the board,,,

Transit-Oriented Luxury Condo Planned Next To Wynwood’s Upcoming Train station

Developer Rilea Group has announced plans to build The Rider at Wynwood, a transit-oriented development. The luxury condominium will have a rock-n-roll theme, and will be built next to Wynwood’s upcoming train station along the Brightline tracks. “The upcoming Brightline station, situated just 85 yards from The Rider at Wynwood site, symbolizes the exciting future ahead…

Miller Construction Completes Medley Industrial Project

Miller Construction Company, a statewide, privately-held construction firm, has delivered the 143,571-square-foot industrial project for Woods Grove Capital in Medley. The Class A warehouse in Medley, Florida, is situated at 7290 NW 77th Court near major highways with easy access to Miami International Airport and Port of Miami, the region’s busiest import-export centers.

PMG Announces 34-Story ‘One Twenty Brickell Residences’ At 120 SW 8th Street In Brickell District

Property Markets Group (PMG) has announced One Twenty Brickell Residences, a 34-story residential tower set to rise in the heart of Brickell, designed by internationally renowned architecture firm Sieger Suarez Architects, with interiors by Cotofana Designs. Located at 120 Southwest 8th Street, One Twenty Brickell Residences will consist of 240 fully finished and furnished residences…

‘301-341 Madeira’ Planned for 301 to 335 Madeira Avenue in Coral Gables

Urban 301 Madeira LLC, an Aventura-based firm, recently secured a $59 million loan for a residential project. Dubbed “301-341 Madeira” by Coral Gables city records, the complex would measure nine stories above grade and offer 145 apartments. The Commercial Observer reports that of those 145 apartments, nine would be ground-floor, live/work units. The 100-foot-tall building,,,

900-Foot Cranes Submitted To FAA For Baccarat Construction Site on Brickell

Plans for two new construction cranes have been submitted to the Federal Aviation Administration for the Baccarat Residences site in Brickell. The filing was made on March 15. One of the cranes is planned to reach a top height of 887 feet above ground and 889 feet above sea level, the filing states. The second crane is planned to reach a top height of 906 feet above ground and 908…

Signage & Crane Installed At 67-Story Mercedes-Benz Tower Construction Site

Signage and a crane have been installed at the Brickell site where a 67-story Mercedes-Benz branded tower is under construction. Construction on the tower has actually been underway for some time, but the Mercedes-Benz branding and technical silver color scheme was only unveiled last month. A total of 791 Mercedes-Benz residences are planned. In addition to the residences…

PMG Announces 34-Story One Twenty Brickell Residences

Developer PMG has announced plans for a 34-story tower called One Twenty Brickell Residences near Brickell City Centre. The project will include 240 condos, delivered fully finished and furnished. Over 60,000 square feet of residential amenities are planned, including a Wellness & Fitness center, pickleball court, kid’s club and gym, sky bar and lounge, and a cafe and juice bar.

Subsidies push stalls for long-awaited American Dream Mall

A legislative bid to potentially offer Miami-Dade County subsidies to get a long-stalled, multi-billion mega-project, the American Dream Mall, under way in Northwest Miami-Dade was swiftly sidetracked by a county committee last week. The legislation aims to remove the county’s self-imposed prohibition on subsidies for design or construction of the project, whose movement has…

Coral Gables Office Park Trades For $76M, A 25% Discount From Last Sale

A Coral Gables office park traded for a nearly 25% discount despite the market’s recent rise as a popular destination for businesses looking for space outside Miami’s urban core. Colonnade Properties paid $76M for the five-building Douglas Entrance office park in the northeast corner of Coral Gables, deed records compiled by property intelligence platform Vizzda confirm.The 475K SF…

Miami-Dade wins vast former Job Corps property near Homestead

Miami-Dade County is in the process of acquiring a former 42-acre Job Corps site near Homestead after winning a federal bid for the land. As Miami Today reported in September, after the US declared it surplus, the county expressed interest in the land to use for an emergency management response center or a park. “There was a surplus process run by the federal government…

Miami hits federal funding jackpot for Underdeck with $60M transportation grant

After the city commission passed a resolution in January urging local, state and federal entities to make funding available to support the Underdeck, Miami has been awarded a $60 million transportation grant for the project. The March 14 commission meeting started with Chairwoman Christine King and Mayor Francis Suarez announcing the massive influx of federal funding for…

Despite opposition, Miami-Dade greenlights an agritourism district in rural Redland

After two failed efforts, Miami-Dade commissioners created a new tourism district that expands amusement operations in the county’s rural Redland farming area despite opposition from residents and agriculture officials. The proposal, passed 10-2 without taking public comment on Tuesday, will allow more buildings and parking — which residents fear will dramatically change…

Michael Lewis: Everybody wants to live in Florida – anywhere but Miami

If we believe our own publicity, Miami-Dade is booming as people from across the nation rush to live here and our population soars. Fortunately or unfortunately, depending on your views, it just ain’t so. The fact is, the county’s population is nearly 15,000 people smaller – yes, smaller – than it was just after the start of the pandemic four years ago. That’s what US census numbers…

Onyx Housing Group Closes On Land For 159-Unit Multifamily ‘Regatta Point’ In Homestead

Today Onyx Housing Group, a multifaceted real estate development firm based in South Florida, announced the closing of six land parcels at 16300 Southwest 296th Street in Homestead, Florida. The 150,201 square foot, 3.45 acre-lot was asking $4.95 million and will be the future home of Regatta Point, a $46.5 million-dollar multi-family project. Current Real Estate Advisors…

Mixed-Use ‘Giller Tower’ Proposed for 976 W. 41st Street on Miami Beach

The Miami Beach Planning Board is scheduled to hear a proposal for a mixed-use project on March 26. Giller Tower would measure seven stories above grade, measuring more than 102,000 square feet. The South Florida Business Journal reports that of that square footage, 25,869 would be office space, 6,681 would be retail, and 4,056 would be restaurants. Sources indicate that…

308-Unit Wynhouse Holds Top-Off Ceremony

Wynhouse Miami has topped off at 8 stories. A ceremony to mark topping off was held on Friday. The project is being built with a $117.5 million construction loan provided by JP Morgan Chase and affiliates of Canyon Partners. Wynhouse is planned to include: 308 rental residences approximately 26,000 square feet of ground floor retail nearly 25,000 square feet of indoor and…

Census: Miami Ranked #1 For International Population Growth In 2023

Miami-Dade’s net international population growth surged in 2023, and was the highest of any county in the U.S., according to new Census data. The number of new Miami-Dade residents coming from outside the U.S. rise almost 40% last year, to 54,457. No other county added as many new international residents. When counting total population growth, including from domestic sources…

Oak Row Equities Closes $181M Construction Loan From Bank OZK For 2600 Biscayne Boulevard In Edgewater

Oak Row Equities has closed on a $181M construction loan from Bank OZK for 2600 Biscayne Boulevard, a 41-story Class AAA office and multifamily tower in Miami’s rapidly-maturing Edgewater submarket. This transaction is one of the largest mixed-used construction loans to close in South Florida in the past year. Newmark’s Dustin Stolly, Jordan Roeschlaub, Chris Kramer…

Construction Progresses On CMC Group’s ‘Vita at Grove Isle’ Condominium In Coconut Grove

Miami’s CMC Group, under the leadership of Ugo Colombo, has reached a significant milestone, advancing past the halfway mark in the construction of Vita at Grove Isle. This seven-story boutique luxury condominium is emerging on Grove Isle, a secluded 20-acre island just off the coast of Miami’s Coconut Grove neighborhood. Located at 5 Grove Isle Drive, the development features…

Developer Proposes 396-Foot-Tall ‘3200 Biscayne’ in Miami

Miami-based Green Circle Development LLC, an affiliate of Urbanica Hotels, has proposed a 35-story mixed-use high-rise in Miami’s Edgewater neighborhood. 3200 Biscayne would comprise 677,813 square feet of new construction, offering both hotels and residences. Arquitectonica designed the 396-foot-tall structure. The South Florida Business Journal reports that plans call…

Privee Capital scores $59M construction loan for 144-unit apartment project in Coral Gables

Privee Capital scored a $59 million construction loan for a 144-unit apartment project in Coral Gables. The Miami Beach-based development firm plans a nine-story building on a 1.4-acre site at 301-341 Madeira Avenue, said Privee’s managing partner Jonatan Sredni. City National Bank of Florida is the lender for the floating-rate debt, according to records and Sredni.

Nichols Architects Reveals Design For 53-Story Mixed-Use Tower In Miami Worldcenter’s Block C, East

The Falcone Group, led by Founder and CEO Art Falcone and in collaboration with Nichols Architects, has unveiled the design for a new 53-story mixed-use tower at Block C, East of Miami Worldcenter. This development is poised to significantly impact the luxury living and hospitality sectors of the expansive Miami Worldcenter complex, encompassing ten blocks and 27 acres.

Ares Management Provides $50M Refinancing for New Apartment Community Soleste Spring Gardens in Miami

Ares Management Real Estate has provided a $50 million loan via one of its funds for the refinancing of Soleste Spring Gardens, a newly delivered apartment community in Miami’s Spring Garden district. The eight-story community is located at 1033 Spring Garden Road, two blocks from the Culmer Metrorail station. Brian Gaswirth, Chris Drew, Jesse Wright and J.J. Hovenden…

Rok family’s mortgage firm seeks to foreclose on Aventura dev site

A Miami developer’s plan to build a seven-story medical office building in Aventura appears to be in jeopardy. Aventura-based Rok Lending last week filed a foreclosure lawsuit in Miami-Dade Circuit Court against the Gomez Development Group entity that owns the 1.6-acre development site at 21291 Northeast 28th Avenue, court records show. Rok Lending, the mortgage…

‘Landmark’ 53-Story Mixed-Use tower Planned At Miami Worldcenter

Miami Worldcenter is slated for yet another tower, according to newly revealed plans. Falcone Group led by founder & CEO Art Falcone is collaborating with Nichols Architects on the new tower. Previously, the One Worldcenter office tower had been proposed on the site by Hines. The new tower at Worldcenter’s Block C East is planned to rise 53 stories, or 632 feet above sea level…

Revealed: 35-Story Hotel & Residential Tower Planned At 3200 Biscayne

Plans have been filed to build a hotel and residential tower in Edgewater. 3200 Biscayne is planned to rise 396 feet and include: 110 residential units; 160 lodging units; 8,443 square feet of commercial area (ground floor restaurant, bar/coffee space, and retail); 6,531 square foot ballroom and 6,567 pre-function space on level 2; 383 parking spaces on five levels – above the 293 parking…

Codina loses appeal in Doral condominium construction dispute

Codina Partners’ legal bill from fighting Grycon keeps rising, now hitting $12 million after losing an appeal. Coral Gables-based Codina, led by Chairman Armando Codina and CEO Ana-Marie Codina Barlick, had contested a lower court’s $7.8 million verdict in favor of Fort Lauderdale-based Grycon. The Third District Court of Appeals last week affirmed Miami-Dade Circuit Court…

Downtown Miami’s $83M The Underdeck Gets Federal Funding

Miami has been awarded a grant from the U.S. Department of Transportation to build The Underdeck underneath the new Signature Bridge. The federal grant is for $60M – the largest in the City of Miami’s history, according to Mayor Francis Suarez. It was awarded under the DOT’s Neighborhood Access and Equity program initiative, which aims to correct mistakes made…

Mandarin Oriental Residences: New Renderings Released As Preview Lounge Opens

Swire Properties has released new renderings and details of the Mandarin Oriental Residences planned in Brickell and opened a Preview Lounge. Two towers are planned. The South Tower will rise over 800 feet, while the North Tower will stand at approximately 400 feet. A total of 228 two-to-four-bedroom in the taller South Tower. Mandarin Oriental will have its flagship North…

Swire Properties Unveils First Preview Of ‘The Residences at Mandarin Oriental, Miami’

Swire Properties today unveiled the first official preview of The Residences at Mandarin Oriental, Miami, ahead of the official launch of sales scheduled for later this spring. The Residences, an exquisite collection of private homes, is part of an unparalleled residential and hospitality destination set within a secluded island sanctuary, only moments away from Miami’s vibrant urban core.

Developers Propose ‘Aventana’ for 19640 Harriet Tubman Highway (formerly West Dixie Highway) in Miami

Ram Realty Services and Pinnacle Communities have filed a pre-application for Aventana, a 16-story residential tower in Miami’s Ojus district. The 354,238-square-foot building would offer 344 apartments––about 34 will be set aside as workforce housing. At least 17 would be designated for those making up to 110 percent of the area median income (AMI). Plans call for a dog…

David and Leila Centner abandon fight for city of Miami park

Fed up with being tied to Miami’s dysfunctional government corruption, David and Leila Centner backed out of their no-bid deal to build a $10 million recreation center at a city-owned park. During public comments at Thursday’s Miami City Commission, David Centner said he and his wife are backing out of a license agreement to develop a youth sports complex with a dome in Biscayne…

Lease roundup: Santander Bank took 4K sf at Miami Worldcenter; more…

Santander Bank leased at Miami Worldcenter. The bank, which is the U.S. subsidiary of Madrid-based Banco Santander, took 4,000 square feet at the Jewel Box at 150 Northeast Eighth Street in Miami, according to a record filed to Miami-Dade County last month. The lease, which is for a 10-year term with two five-year extension options, started on Jan. 31, the record shows…

Condo buildings at sprawling northeast Miami-Dade Jade Winds complex deemed unsafe

Miami-Dade County declared several buildings at a condo complex in Northeast Miami-Dade unsafe, after they failed their 50-year recertification. Residents at buildings in the Jade Winds condominium complex received the notices earlier this week, NBC 6 reported. Jade Winds, at 1720 Northeast 191st Street, was built between the late 1960s and early 1970s. Residents were…

Can a $150 million makeover revive this Miami mall? Shopping is just a part of it

Shopping malls are changing in South Florida. They’re no longer just corridors with store after store. They’re becoming town squares, with fitness centers, residential towers, arcades and amusement centers — alongside the traditional retail. A Northeast Miami-Dade mall, with roots over six decades, is the latest to join the trend in moving from shopping center to lifestyle center.

FundRebel pays $62M for new apartment building in Hollywood

FundRebel completed its first commercial real estate acquisition, purchasing a new apartment building in Hollywood for $62 million. The New York-based crowdfunding real estate start-up bought Nine Hollywood at 809 Jackson Street and 320 South Federal Highway, records show. The 12-story apartment building with 204 units and 7,000 square feet of ground-floor retail…

Ari Pearl advances downsized condo plan for Hollywood golf course

Developer Ari Pearl advanced a downsized plan to redesign and redevelop a Hollywood golf course with 322 condos. Pearl’s company, PPG Development, originally planned to develop 486 rental units, a mix of apartments, townhouses, and villas, along the The Club at Emerald Hills golf course. But rapid home price appreciation in South Florida during the pandemic led Pearl…

Affiliated lands $46M construction loan for 223-unit apartment project in Hollywood

Affiliated Development landed a $45.5 million construction loan for a 223-unit apartment project with a workforce housing component in downtown Hollywood. The Fort Lauderdale-based firm started construction of the 18-story building, called The Tropic, with one-bedroom to three-bedroom apartments at 303 South Federal Highway, according to records and an Affiliated news release.

PMG plans first luxury condo tower in Fort Lauderdale

PMG is moving forward with its first condo tower in Fort Lauderdale that will replace an aging waterfront co-op building on the Intracoastal Waterway. The New York and Miami-based firm is launching Sage Intracoastal Residences, a planned 18-story, 44-unit building at 900 Intracoastal Drive. The luxury project would replace a circa-1957 co-op named…

West Palm Beach Office Project Lands 40K SF HQ Relocation

A boutique office building in Downtown West Palm Beach is now more than 50% pre-leased after a telecommunications firm announced it would relocate its headquarters to the under-construction property. Dycom Industries will relocate from Palm Beach Gardens to 40K SF on the top two floors of 300 Banyan, a 12-story building with 115K SF of offices that is expected to deliver…

Fanjul family scores $56M construction loan for 320-unit rental complex in Royal Palm Beach

The Fanjul family, sugarcane and real estate moguls in Florida, scored a $55.7 million construction loan for a 320-unit apartment complex in Royal Palm Beach. FCI Residential, the Fanjuls’ development company, started building the project with 11 three-story buildings and two two-story townhouse buildings on the 25-acre site on the southeast corner of Acme Road…

Analyst: Eventually Nearshoring Will Impact All Commercial Real Estate

Nearshoring is a significant evolutionary trend driven by geopolitical forces, manufacturing costs, shipping costs, evolving shipping route risks, and logistics trends. For the first time since 2002, the total annual imports from Mexico exceeded the total from China, reiterating the trend toward bringing manufacturing closer to the US. While this trend could significantly affect industrial…

The Fed: Has US-China decoupling energized American manufacturing?

In recent decades, the US has grown increasingly dependent on imports from China to access a vast variety of goods. The FRED graph above shows Chinese import data: From 1990 through 2016, as China became a globally integrated economy, the US import share from China grew steadily, from close to 2% of aggregate US imports in the late 1980s to close to 22% in 2016.

Video: MSCI Researc Executive Director Jim Costello Discusses Retail Property Performance & Expectations

The Conversation: Insights from Jim Costello Regarding Navigating the Real Estate Landscape In the ever-evolving landscape of commercial real estate, understanding the nuances of various property types and market trends is essential for investors, developers, and industry professionals alike. Recently, on America’s Commercial Real Estate Show, show host Michael sat…

Self-Storage Development Hits Pause After Record Year for Spending

Construction spending in the self-storage sector topped $6.9 billion in 2023 as developers moved through a development pipeline that expanded after the COVID-19 pandemic. According to U.S. Census Bureau statistics, last year’s spending marked a 24% increase over 2022, with $5.6 billion spent building or expanding self-storage facilities. The sector spent an average of $4.4 billion…

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March 20, 2024

Video: Stephanie Wright, Clinical Assistant Professor and Program Coordinator for the Masters in Real Estate at NYU’s Shack Institute of Real Estate, Discusses CRE Education Options

The Conversation: Exploring the Dynamics of Real Estate Education with NYU’s Stephanie Wright

In the bustling world of commercial real estate, education and training serve as the cornerstone for success. Recently, show host Michael B. delved into this topic on “America’s Commercial Real Estate Show,” where he engaged in a compelling conversation with Stephanie Wright, Clinical Assistant Professor and Program Coordinator for the Masters in Real Estate at NYU’s Schack Institute of Real Estate. Their dialogue provided valuable insights into the state of real estate education, the current market trends, and the unique opportunities available for aspiring professionals.

Established in 1967 by Larry Silverstein, among other things the developer of the rebuilt World Trade Center, NYU’s Schack Institute of Real Estate boasts the distinction of being the oldest center for real estate education in the United States. With a rich history spanning over six decades, the institute has evolved into a powerhouse of real estate knowledge and expertise. Stephanie highlighted the institute’s commitment to providing a practical and industry-focused education that prepares students for the challenges of tomorrow’s real estate landscape.

The conversation touched upon the size and scope of the program, revealing that NYU Schack hosts approximately 800 students across four distinct degree programs. These programs cover a spectrum of disciplines, including real estate, real estate development, and construction management, catering to both undergraduate and graduate students. Additionally, the institute offers a diverse range of continuing education and executive programs, ensuring accessibility to professionals at every stage of their careers.

A notable aspect of NYU Schack’s approach is its emphasis on practical learning and real-world application. Stephanie underscored the institute’s faculty composition, comprising over a hundred industry practitioners who bring their firsthand experiences into the classroom. This blend of academic rigor and industry insight ensures that students graduate with a comprehensive understanding of real estate dynamics and a robust network of industry contacts.

The conversation also delved into the current state of the real estate market and its implications for aspiring professionals. Despite the challenges posed by market downturns, Stephanie highlighted the unique learning opportunities that arise during such periods. She emphasized the importance of viewing market fluctuations as a chance to gain invaluable experience in navigating complex real estate transactions and identifying investment opportunities.

Furthermore, Stephanie provided valuable insights into emerging trends within the real estate sector, such as the rise of alternative debt lending and the growing demand for affordable housing solutions. By aligning the institute’s curriculum with these evolving market dynamics, NYU Schack ensures that its students remain at the forefront of industry innovation.

In discussing the job market, Stephanie acknowledged the current challenges facing real estate graduates but also highlighted the enduring value of networking and perseverance. She emphasized the importance of proactive engagement with industry professionals and recommended exploring opportunities in sectors such as debt markets and non-traditional real estate asset classes.

Throughout the conversation, Stephanie exuded a palpable enthusiasm for real estate education and its transformative potential. Her insights provided a compelling glimpse into the multifaceted world of commercial real estate and underscored the critical role of education in shaping the industry’s future leaders.

In conclusion, NYU’s Schack Institute of Real Estate stands as a beacon of excellence in real estate education, offering a comprehensive and industry-driven curriculum that equips students with the skills and knowledge needed to thrive in today’s dynamic market. With a commitment to innovation, practical learning, and global engagement, NYU Schack continues to redefine the boundaries of real estate education and inspire the next generation of industry professionals.

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March 20, 2024