Miami Commercial Real Estate News July 7, 2022: Soleste Grand Central Sells for $181M, First Apartments for $94M, Miami Tower for $164M; Office Vacancy Drops; More…

Jimmy Resnick joins South Florida shopping center buying spree with $32M Kendall purchase

A Miami Beach investor is the latest retail player to catch South Florida’s shopping center wave with a $32 million purchase in Kendall. An entity with ties to Jimmy Resnick bought Kendall Marketplace at 11531-11631 Southwest 88th Street, records show. The buyer obtained an $18 million loan from Professional Bank. The seller, El Tablon Investments, led…

SHVO to Develop 250,000 SF Office Building in Miami Beach

SHVO, a New York City-based development and investment firm, plans to develop a 250,000-square-foot office building in Miami Beach. The firm, along with finance partner Deutsche Finance America, recently acquired an assemblage at 1656-1680 Alton Road and 1677 West Ave. near Lincoln Road for $39.3 million. Designed by Foster + Partners, the new office building…

Change of plans: Developer switches to condos from rentals at downtown Miami tower

A new downtown Miami rental tower will be sold as condos due to continued demand from buyers, The Real Deal has learned. Property Markets Group, led by Ryan Shear, Kevin Maloney and Dan Kaplan, and its partner Greybrook, plan to launch sales soon of The Elser Hotel & Residences at 398 Northeast Fifth Street, Shear said.

Omega scores $100M construction loan for North Miami apartments

Omega Real Estate Management scored a $100 million construction loan for the multifamily portion of its planned mixed-use The Gardens District project in North Miami. The nine-story apartment building, called The Gardens Residence, will have 358 units and 1,100 square feet of ground-floor retail at 1155 Northeast 126th Street, according to a…

Miami self-storage firm buys Medley industrial site for $38M

Looking to capitalize on demand from small warehouse tenants, a Miami-based firm specializing in self-storage facilities is expanding into industrial buildings with its recent $37.5 million purchase in Medley. An affiliate of Basis Industrial, formerly… Miami City Self-Storage, bought… 180,000-square-foot mixed-use site at 8600 Northwest South River Drive, Basis…

Northlink scores approval for condo project on Denny’s site in North Beach

New York real estate firm Northlink Capital plans to build a condo project with co-living on a Denny’s-anchored property in Miami Beach, where the previous developer had planned a mixed-use hotel. Northlink, led by Robert Rosenthal, secured approval from the Miami Beach Design Review Board on Tuesday for the proposed project at 7140 Collins Avenue in North Beach.

Avanti pays $181M for apartment building near Brightline’s MiamiCentral

The Estate Companies sold the Soleste Grand Central apartment building it developed near Brightline’s downtown Miami station for $181 million. Avanti Residential, a Denver-based investor and owner-operator of multifamily real estate, bought the 18-story, 360-unit building at 218 Northwest Eighth Street, according to the buyer…

Avanti Residential Buys Miami Apartments for $181M

Investor and lifestyle multifamily owner-operator Avanti Residential has acquired Downtown Miami’s Soleste Grand Central from seller The Estate Cos. The newly-built, luxury apartment community commanded a purchase price of $181 million. The acquisition marks Avanti’s fourth South Florida investment in the last 12 months, following its acquisitions in…

Avanti Residential Acquires Soleste Grand Central Apartment Complex in Miami for $181M

Avanti Residential has acquired Soleste Grand Central, a 360-unit luxury apartment complex in downtown Miami, for $181 million. The seller was The Estate Cos., which developed the property in 2021. Located at 218 NW 8th St., Soleste Grand Central is walkable to various retail and dining options and features immediate access to I-95. Floor plans range from…

Lloyd Jones drops $92M for Little Havana apartments

Lloyd Jones expanded its South Florida multifamily portfolio with a $92 million acquisition in Miami’s Little Havana. Miami-based Premium Development sold First Apartments, a 194-unit building at 701 Southwest First Street, to Lloyd Jones, a multifamily and senior living-focused real estate firm also based in Miami, according to a press release…

Movers & Shakers: Self-storage giant SROA names new COO

From left: SROA Capital’s Kenneth Speegle, PropertyForce’s Charles Grau, and Katz & Associates’ Allan Carlisle: SROA Capital, a West Palm Beach-based private equity firm that invests in self-storage facilities under the brand Storage Rentals of America, appointed Kenneth Speegle as its new chief operating officer. Speegle joins the firm from Extra Space…

Location Ventures completes Villa Valencia condo project in Coral Gables

Developer Rishi Kapoor’s Location Ventures completed Villa Valencia, a luxury Coral Gables condo project that’s been four years in the making. Villa Valencia, a 13-story, 39-unit building at 501 to 525 Valencia Avenue is 95 percent sold with $100 million in closings so far. Three units are left, including a $14.9 million penthouse and two units averaging about…

City board tells Freedom Park to break up vast 4,900-car garage

Miami Freedom Park, which will rise next door to Miami International Airport and be home to the Inter Miami CF soccer team, has earned its first of many needed City of Miami approvals from the Urban Development Review Board. The board was presented the first site plans and new renderings for Miami Freedom Park, which when completed is to…

Industrial Real-Estate Developers Are Hot On Cold-Storage Warehouses

Industrial real-estate developers have been stepping up building cold-storage warehouses in the U.S. without tenants lined up for the space, betting that pandemic-driven changes in the way consumers buy groceries and meals are here to stay. Nearly 3.3 million square feet of refrigerated warehouse space was under construction through the second quarter…

CP Group, DRA Advisors buy Miami Tower for $164M

CP Group and DRA Advisors teamed up to buy Miami Tower, a landmark downtown office skyscraper at 100 SE 2nd Street known for its color-changing LED exterior, for $60 million less than its owner paid six years ago in a bet that the recent rush of major employers to South Florida will continue. A source close to the deal said the joint venture paid $163 mil…

CP Group, DRA Advisors Acquire 47-Story Office Tower in Downtown Miami

A joint venture between CP Group and DRA Advisors has purchased Miami Tower, a 47-story office tower located at 100 SE Second St. in downtown Miami. The seller is USPO Miami LLC, an entity established by Sumitomo Corp. of America, which purchased Miami Tower in 2016. The sales price was not disclosed, but South Florida Business Journal reports the tower…

CP Group, DRA Advisors Buy Miami Tower

CP Group has partnered with DRA Advisors to acquire one of the most recognizable office buildings in downtown Miami. The joint venture purchased the 636,000-square-foot Miami Tower from Sumitomo Corp. for $163.5 million, according to CommercialEdge information. Cushman & Wakefield’s Dominic Montazemi represented the seller.

Oak Row Equities plans 400-unit apartment, office tower in Edgewater

Oak Row Equities, the developer and private equity firm that until recently was known as Carpe Real Estate Partners, is planning a roughly 40-story apartment and office tower in Miami’s booming Edgewater neighborhood. The newly renamed firm, led by founders Erik Rutter and David Weitz, purchased the 2-acre site between Northeast Second Avenue and…

Mortgage rates falling back toward 5%

Suddenly, a 5.3 percent mortgage seems low. That was the average rate on a 30-year, fixed-rate mortgage this week, the Wall Street Journal reported. The average rate was a significant drop from last week, when Freddie Mac had the average rate at 5.7 percent, and mid June, when it surpassed 6 percent. Still, it is much higher than at the beginning of the year…

Sunrise investors buy South Miami retail building for $19M

A trio of Sunrise-based investors paid $18.5 million for a South Miami retail property, three months after selling a downtown Miami office building to Aby Rosen’s RFR Realty. An entity managed by Robert Balogh, Cara Balogh and Orli Teitelbaum bought The Crossroads, a 34,901-square foot building at 5700 Sunset Drive that was completed in 1955, records show. The deal…

Miami Development – The Gardens Residence – Lands $100M in Financing

Omega Real Estate Management has secured $100 million in financing for the development of The Gardens Residence, a 358-unit community in Miami. Churchill Real Estate provided the construction loan and North Miami CRA provided $15 million in subsidies. Berkadia arranged the financing. The project is set to break ground this month. Ten percent…

Miami Office Development on the Right Track

As of May, Miami’s office development pipeline reached 5.6 million square feet, according to CommercialEdge data. Month-over-month, the pipeline expanded by roughly 200,000 square feet. The Magic City’s office market has seen been expanding during the last 12 month. In May 2021, the metro’s pipeline reached merely 2.6 million square feet, representing 3.8 percent…

Miami’s Office Vacancy Drops 2.8% Year-Over-Year

As of May, Miami’s office vacancy hit 13.1 percent, down 280 basis point year-over-year, according to CommercialEdge data. The national average vacancy rate clocked in at 15.4 percent that month, virtually unchanged year-over-year. The Florida metro registered one of the largest drops in vacancy on a year-over-year basis across all markets and the largest…

Doronin’s OKO, Cain score $97M construction loan for downtown Fort Lauderdale rental tower

OKO Group’s Vlad Doronin and Cain International’s Jonathan Goldstein along with the development site at 629 Southeast Fifth Avenue in Fort Lauderdale, Vladislav Doronin’s OKO Group and partner Cain International scored a $97.2 million construction loan for an apartment tower planned south of the New River in quickly redeveloping downtown Fort Lauderdale.

SobelCo wins approval for 67-unit townhouse project in Dania Beach

Dania Preserve SobelCo won rezoning and site plan approval for Dania Preserve, a 67-unit townhouse development in Dania Beach on a 12-acre site just west of I-95. The Dania Beach City Commission voted Tuesday to rezone the development site, which currently has one house, at Southwest 31st Avenue and Griffin Road, from “estate residential” (E-1) to…

Newgard Lands $170M for Miami Condo Project

Newgard Development Group has secured $170 million in financing for Lofty Brickell, a luxury condominium community in Miami. 3650 REIT provided the construction loan and also originated one for the land acquisition last year. Eighty percent of the property’s inventory is under contract and construction is set to break ground in the fourth quarter…

Festival Flea Market Mall in Pompano Beach to be replaced with warehouses

A developer and warehouse operator won approval from the Pompano Beach City Commission to replace the Festival Flea Market Mall with about 470,000 square feet of warehouse space. North Miami-based IMC Equity, led by owner and CEO Yorham Izhak, is working with Atlanta-based IDI Logistics to demolish the Festival Flea Market Mall on the southeast…

River Oaks picks up Delray Beach shopping center for $26M

Count River Oaks Properties among the retail real estate investors feasting on grocery store-anchored shopping centers in South Florida. The El Paso-based firm, led by founder and Chairman Gerald Rubin, paid $25.5 million for Shop Delray at 8918 Atlantic Avenue in Delray Beach, according to a press release. Anchored by Joseph’s Classic Market, the 33,000-square…

Kaufman Lynn sells Delray Beach HQ for $10M, but firm won’t relocate

Kaufman Lynn Construction sold its Palm Beach County headquarters for $10.3 million, but is staying put. An entity managed by Kaufman President and CEO Michael Kaufman sold the 22,000-square-foot, single-tenant office building at 3185 South Congress Avenue in Delray Beach, records show. The buyer, J.J.D. Associates of Palm Beach, an entity tied to Westmount…

Pebb JV buys Boca Raton office complex for $30M

Pebb Enterprises tripled its office holdings in a Boca Raton business park with a $29.8 million joint venture acquisition. The Boca Raton-based private equity real estate firm, led by CEO Ian Weiner, and Greenwich, Connecticut-based Contrarian Capital Management acquired Meridian Office Center at 6551 and 6601 Park of Commerce Boulevard, according to…

Tortoise Properties nabs $89M construction loan for downtown West Palm apartments

Tortoise Properties scored an $88.5 million construction loan for a multifamily project in downtown West Palm Beach. The real estate investment firm plans a pair of eight-story buildings with 264 units at 740 and 840 North Dixie Highway, according to Tortoise’s news release. Larkspur, California-based Acore Capital is…

Arnaud Karsenti’s 13th Floor, Wexford propose 25-story apartment tower in downtown West Palm

13th Floor’s Arnaud Karsenti and Wexford’s Joseph Jacobs and Philip Braunstein with rendering of The Residences of Palm Beach West: Arnaud Karsenti’s 13th Floor Investments and Wexford Real Estate Investors want to build a 25-story apartment building with a grocery store in downtown West Palm Beach. The 372-unit Residences of Palm Beach West project…

Forest Development, Royal Palm nab $269M condo construction loan

A joint venture between Forest Development and Dan Kodsi’s Royal Palm Companies scored a $269 million construction loan for a waterfront condo project in Palm Beach County’s Lake Park. Boca Raton-based Forest Development recently partnered with Miami-based Royal Palm on the two 24-story…

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July 7, 2022

Miami Commercial Real Estate News June 29, 2022: Citadel Moving to Miami, Seen Behind $363M Land Purchase; Calder’s Horse Track Sold for $287M; More…

Griffin’s Citadel seen behind record $363 million Miami land purchase

Ken Griffin’s plans to shift Citadel’s headquarters to Miami from Chicago gained momentum months ago with a record-breaking acquisition on the South Florida waterfront. Griffin and his company were behind the $363 million purchase of a 2.5-acre vacant site at 1201 Brickell Bay Drive, according to people familiar with the matter, who asked not to be…

Coral Gables OKs Armando Codina’s rental tower, Location Ventures’ condos

Location Ventures founder and CEO Rishi Kapoor with a rendering of the Location Ventures proposed project on the left and a rendering of Codina Partners’ Regency Tower project on the right (Hamed Rodriguez Architect, Nichols Brosch Wurst Wolfe & Associates and Codina Partners, Location Ventures) Coral Gables is poised to get more development. Codina…

Lenders dole out $320M in construction financing for Brickell, Miami Worldcenter condo towers

Newgard’s Harvey Hernandez, Lalezarian Properties’ Kevin Lalezarian and the Lofty Brickell and Miami World Tower projects: Developers for a pair of condo projects in Brickell and downtown Miami nabbed construction financing totaling $320 million. Coconut Grove-based 3650 REIT lent $170 million for the construction of Lofty Brickell, a 44-story condo tower…

A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis

Marcia Fudge, U.S. Secretary for Housing and Urban Development, swooped into Miami on Tuesday, and declared the city ground zero of the nation’s housing crisis. Local residential real estate experts somewhat agreed. “I decided I was going to Miami, to the epicenter of the housing crisis in this country,” Fudge said during a tour of Related Group’s Liberty Square…

Fruchtlanders pay $61.5M for apartment complex near Zoo Miami

The Fruchtlanders’ FBE Limited bought an apartment community near Zoo Miami for $61.5 million, marking the family’s expansion in South Florida’s multifamily market. New York-based FBE Limited bought the 316-unit The Park at Sheffield at 15601 Southwest 137th Avenue in unincorporated Miami-Dade County, near Kendall, according to broker Tal…

Competition For Industrial Real Estate Around Ports Heats Up. Leading the Port Markets Is Miami.

Industrial real estate has been the one of the most sought-after property types nationally, leading to record low vacancies and increased competition among investors and tenants. When it comes to selecting a market for industrial investment, port markets are emerging as the safe bet for investors to park capital due to the positive rental growth…

Miami the medical pot mecca? Michael Comras, Marc Roberts seek to open dispensaries

Michael Comras and Marc Roberts with Google Street View of the properties at 60 Northeast 11th Street, 6901 Biscayne Boulevard, 2222 Northwest Fifth Avenue and 172 West Flagler Street all in Miami: South Florida real estate investors and developers Marc Roberts and Michael Comras are the first to push for medical marijuana stores in Miami, after the city’s de-facto ban…

Arrival of Tri-Rail in downtown Miami stalled, leader spreads blame

Arrival of Tri-Rail in downtown Miami remains delayed from a previously announced November date as the South Florida Regional Authority (SFRTA), Brightline and FEC Railway seek agreement on the need for a new dispatch desk and begin training staff to run the trains. Steven Abrams, executive director of SFRTA, said FEC Railway, which owns the tracks, is requiring…

As imports rise, PortMiami expects 3% cargo increase

PortMiami cargo has been growing after Covid-19 slowdowns and is expecting a conservative increase rate of 3% year-over-year as demand for all types of imported commodities continue to increase and new trends leverage closer manufacturing regions and avoid international conflict. Last year, PortMiami recorded a cargo performance high of 1,254,062 TEUs…

Lehman Dealership group sold to national Lithia and Driveway

Lehman Dealership Enterprises, a family-owned business with over 80 years in South Florida’s market, just sold its automotive business to Lithia & Driveway, one of the largest automotive retailers in the nation, headquartered in Oregon. “We’re very eager to expand [and] to serve customers in Florida, and within Florida, the Lehman group is regarded…

Vizcaya restoration dooms former science museum

Say goodbye to the former Miami Science Museum. In another step toward restoration of county-owned Vizcaya Museum and Gardens set to begin next month, the former science museum and planetarium building will fall. The first phase consists of tearing down the non-historic buildings on the site of Vizcaya’s farm village west of Bayshore Drive and building an…

Russell Galbut buys dev site near Five Park in South Beach, plans hotel

Russell Galbut’s GFO Investments picked up a hotel development site in South Beach, steps away from the Five Park condo tower the firm is co-developing with Terra. An affiliate managed by executives of Miami-based GFO paid $5.7 million for the two-story, 12-unit apartment complex at 1030 and 1050 Sixth Street, records show. The city of Miami Beach last year…

Location Ventures proposes 16-story Coral Gables condo building, puts Tibor Hollo-owned site under contract

Location Ventures founder and CEO Rishi Kapoor along with a rendering of the planned 16-story condominium at 1505 Ponce De Leon Boulevard in Coral Gables (Location Ventures, Hamed Rodriguez Architect) Rishi Kapoor’s Location Ventures proposes a 16-story condominium in Coral Gables, marking continued redevelopment in the city. Location…

Rockpoint sells 1221 Brickell office tower for $287M, marking a six-year record price

Rockpoint sold a Brickell office tower for $286.5 million, marking a record for South Florida office deals since 2016. Boston-based Rockpoint sold the 28-story building at 1221 Brickell Avenue in Miami to a Delaware-registered entity led by Randall Davis and listing a Palm Beach address, according to records. The deal follows another mystery entity…

Rising rents: Miami’s industrial market leads nation with highest annual rate hike: report

Miami’s industrial market, which includes all of Miami-Dade County, is the nation’s top performer for annual rent growth, according to a JLL report. Year-over-year, the Miami industrial market experienced a 53 percent jump in rent, more than Los Angeles, which had the second highest rent hike at 45 percent, and New York/New Jersey, which had the fourth highest…

Year since deadly collapse marked by condo reforms, new development in Surfside

Susie Rodriguez has difficulty accepting that a new building will soon stand in place of her former home, Champlain Towers South, which collapsed a year ago, killing her friends and neighbors. “It will be very strange to see another building there,” said Rodriguez, who was not in her condo during the tragic event last summer. “I don’t think I can ever…

OKO Group, Cain Top Off 55-Story 830 Brickell Office Tower in Miami

OKO Group and Cain International have topped off construction at 830 Brickell, a 55-story office tower underway in Miami’s Brickell Financial District. The 724-foot building is the first standalone office tower to break ground in Brickell in over a decade, according to the developers. Project partners include general contractor Civic Construction, architectural…

Miami’s 830 Brickell Tops Out

OKO Group and Cain International are developing the first Class A office tower in the city’s urban core in more than a decade. Civic Construction has topped off 830 Brickell, Miami’s first Class A office tower to be built in the urban core in more than a decade, at 55 stories and 724 feet as it nears completion later this year. Developed by OKO Group and Cain…

Spot On Ventures buys Miami Beach Hilton-branded hotel for $44M

Pebb Capital and LeaseFlorida sold a renovated, historic hotel in Miami Beach for $43.9 million, a month after selling an adjacent retail space for nearly $18 million. An affiliate of Spot On Ventures, an Osterville, Massachusetts-based real estate firm specializing in hotels and restaurants, acquired the Hampton by Hilton at The Continental at 4000 Collins Avenue

Blackstone’s Link Logistics pays $291M for Calder’s horse racing track

Blackstone’s subsidiary Link Logistics paid $291 million for Calder’s former horse racing track and surrounding property, with plans for an industrial complex and movie studios in Miami Gardens. The New York-based company purchased the 115.7-acre site at 21001 Northwest 27th Avenue from an affiliate of Calder Casino’s parent company, Louisville…

EverWest buys Hialeah Gardens industrial building for $43M

EverWest Real Estate Investors’ Rick Stone and Tyler Williams; rendering of the newly built industrial property at 10900 Northwest 146th Street in Hialeah Gardens: EverWest Real Estate Investors bought a newly built warehouse in Hialeah Gardens for $43.2 million, continuing its buying spree in South Florida. Denver-based EverWest bought the 164,298…

Miami nabs another big name as Citadel’s Griffin shifts HQ

Miami nabbed another deep-pocketed hedge fund billionaire – and his business. Citadel founder Ken Griffin, the wealthiest resident of Illinois, is moving his family and corporate headquarters to Miami from Chicago, multiple news outlets reported, citing a letter to employees. Griffin has long criticized Illinois Gov. J.B. Pritzker, a Democrat, and lashed out at…

Miami Beach gives green light to controversial Peebles, Sternlicht office projects near Lincoln Road

Controversial proposals to build offices in Miami Beach near the city’s famous Lincoln Road passed another hurdle on Wednesday. The Miami Beach City Commission voted 5-1 to approve a slew of items needed for the proposals to proceed. Vice Mayor Kristen Rosen Gonzalez cast the sole dissenting vote after hours of heated debate with the rest of the…

Steve Ross’ plan to redevelop historic Deauville resort in Miami Beach advances

Billionaire developer Steve Ross is one step closer to achieving his goal of buying and redeveloping the historic Deauville Beach Resort property in Miami Beach. Ross, founder and chairman of the Related Companies and owner of the Miami Dolphins, has an agreement with the Meruelos, the controversial owners of the Deauville, to buy the hotel for an…

Miami leads nation in rent hikes — again

If rising rents were a race, Miami would be crushing the competition. Miami rents climbed 45.8 percent in May compared to last May, according to a newly released report from Realtor.com. Miami’s annual rent growth was a stand-out; its closest rival was Orlando at 28.4 percent. Nationwide, rents increased an average of 15.5 percent. The latest data on Miami…

Developers plan Lauderhill mixed-use, multifamily development with 245 units

Developers plan a Lauderhill rental project that may include affordable housing. The Lauderhill City Commission on Monday approved 441 Arthouse, a mixed-use development on U.S. 441 with 245 units and 10,000 square feet of commercial space. Hollywood-based developer Matthew Jacocks said the units will include at least four two-story townhouses…

Celsius energy drink investor Carl DeSantis pays $25M for Delray Beach offices

Google Street View of the properties at551 Southeast Eighth Street and 551 Southeast Fifth Avenue in Delray Beach with CDS International Holdings founder Carl DeSantis (Google Maps, CDS Holdings) Billionaire Carl DeSantis’s CDS International Holdings bought a Bank of America-leased property in Delray Beach for $25 million. CDS International, based…

Cottonwood buys Pompano Beach apartment complex for $95.5M

From left: Harbor Group International’s Jordan E. Slone and T. Richard Litton Jr. (sellers); Cottonwood Residential’s Daniel Shaeffer and Chad Christensen; 4411 North Federal Highway in Pompano Beach: Cottonwood Residential bought a Pompano Beach apartment community for $95.5 million, marking unceasing investment appetite for South Florida…

Estate Companies’ Pompano Beach, Hollywood apartment projects advance

From left: The Estate Companies’ managing principal Robert Suris and principal Jeffrey Ardizon along with a rendering of Soleste Pompano Beach and a sitemap for Soleste Hollywood Boulevard: The Estate Companies is moving forward with two Broward County multifamily projects. The South Miami-based company scored final approval for a 253-unit Pompano…

Saddled with $260M debt, Pembroke Lakes Mall could be in trouble: Morningstar

An exodus of tenants and diminished net cash flow could spell trouble for the owner of Pembroke Lakes Mall, which is saddled with a $260 million interest-only loan that is due in two years, according to a recent Morningstar report. New York-based Brookfield Properties acquired Pembroke Lakes Mall in 2018 when the firm bought shopping mall…

First Industrial picks up Pompano Beach manufacturing facility for $25M

First Industrial Realty Trust scooped up a Pompano Beach manufacturing building for $25 million, marking continued investor appetite for South Florida’s industrial market. Chicago-based First Industrial purchased the 113,610-square-foot building on 8.4 acres at 1801 North Andrews Avenue, and leased it back to the seller, according to a news release from the sell…

Starwood sells UM-leased medical office building in Plantation for $46M

Starwood Capital Group sold a Plantation medical office building fully leased to the University of Miami Health System for $45.5 million. An affiliate of Anchor Medical Properties, a Charlottesville, Virginia-based real estate investment firm, bought Crossroads III, a 101,851-square-foot Class A medical office building at 8100 Southwest 10th Street, records…

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June 29, 2022

Applying the Black & Scholes Option Pricing Model to Commercial Real Estate Option Pricing

In the financial markets, option theoretical values are most often calculated using the Black-Scholes model. Developed in 1973 by economists Myron Scholes and Robert C. Merton, this model was introduced to the world in their seminal academic paper, The Pricing of Options and Corporate Liabilities. In my time at Morgan Stanley, where I held the titles of SVP – Investments and Senior Portfolio Manager, I worked closely with a group of hedge funds actively trading derivatives (options) on individual stocks and various equity indexes. In that role, I utilized the Black-Sholes pricing model and related calculations of delta, gamma, theta, and vega, generally referred to as “the Greeks.” The Black and Sholes model is tested with real money every second of every day, all around the world. It’s valid. It works.

This pricing model is a function of an options relationship to its strike price, the volatility, defined as annualized standard deviation (SD), of the underlying asset itself, and the risk free interest rate. It seems to me valid that fair value of options on commercial real estate could be calculated using this formula. However, an important input of the formula, namely volatility (standard deviation), is not so easy to pin down.

Fortunately, others have considered real estate volatility. In 2003 three University of North Carolina finance professors, Brian A. Ciochetti, Jeffrey D. Fisher, and Bin Gao, calculated in a paper the SD for returns for institutional grade real estate from 1978 to 2002 to be 5.87%. They go on to identify the SD of specific sectors of real estate, with a higher SD generally for these (sectors of real estate). Then, in a 2012 paper by published by S&P Down Indices, the annualized SD of returns for residential real estate – not commercial but at least it is real property – from 1988 to 2011 was calculated as 6.57%. Considering these, 6.5% feels like a number one can use.

To gut check this, I roughly consider this 6.5% SD assumption using the empirical rule, also referred to as the three-sigma rule or 68-95-99.7 rule. This rule states that 68% of returns should be within 1 SD, 95% within 2, and 99.7% within 3. Thus, I ask myself a set of questions. Do 68% of price moves seem to be 6.5% higher or lower (1 SD assuming 6.5% annualized SD) than the average? Would I expect that 19 out of 20 years, i.e. 95% of the time, returns would be 13% higher or lower (2 SD) than the average? Finally, would I consider a return more than 19.5% higher or lower (3 SD) than the average to be something that might or might not happen in my lifetime? This gut check leads me to believe the SD is not lower than 6.5%. If it is higher, it is not considerably so. I’ve settled on 6.5% as the annualized SD assumption I personally use, but “personally” is operative here; it isn’t set in stone. Thus, I don’t have the exact answer, but at least I’ve thought about it.

As an aside, my inner geek regularly considers the empiral rule to back into estimating SD, kind of a gut-meets-statistics method to arrive at an estimation of SD. In fact, before I found the aforementioned white papers, I used this to “guesstimate” the SD for commercial real estate as about the same level as I later found in the white papers.

With all that out of the way, let’s move on to pricing options on commercial property.

First, let me get relationship of underlying asset, in this case commercial real estate, to strike price out of the way. With stock options, the strike price, the price at which the option can be exercised, and the stock price (underlying asset) are seldom exactly the same. With commercial real estate, however, in most cases the idea is that an option to buy is for some period at the current market value. Thus, the strike price and underlying asset price are presumed to the the same. That’s what I’ll assume for this article.

One-Year Black-Sholes Option Value at Various Time Periods to Expiration Assuming 6.5% Annualized Standard Deviation, 2.75% Risk Free Interest Rate, Strike and Underlying Prices at 100%
Calculated Option Value Price Increases Given Higher Standard Deviation Assumption

The chart above illustrates the price of a one year option at various SD assumptions. Here one can see that with the previously decided upon SD assumption of 6.5% annualized SD, a one year option would be just over 4% (4.14% to be exact), holding for other assumptions as noted. Thus, a one year option by this calculation should be $41,400 per million. Note how different assumptions affect this calculation, however. A higher SD assumption results in a higher price, a lower SD in a lower price.

With an option, the underlying asset may move in your favor or against. The ratio of the probability for or against is fixed at even odds. What is variable is the degree of the move. With move volatility, the potential for a larger move in your favor (or against) is higher. A larger potential move times a 50% probability of a move in favor of an option is greater than a smaller potential move times a 50% probability of a move in favor, thus the higher calculated value of the option.

Calculated Option Value Price Increases Increased Time to Expiration

Time to expiration also, of course, affects the price. In the above chart, the other variables of SD and risk free interest rate are held constant as time to expiration is increased. This one is intuitive; more time costs more.

Calculated Option Value Price Increases with Risk Free Interest Rate

Finally, the is the input of risk free interest rates. As can be seen in the chart above, higher rates result in a higher calculated option price.

When one considers that an option buyer is participating in price movement of an asset that has not been purchased, then the time value of money on that preserved capital comes into play as a debit to the option buyer (offset by the credit of cost of money by not having to buy the asset). And, of course, as interest rates increase, so does the cost of money. Thus, the calculated value of an option increases as rates increase.

But Then the Norms…

Commercial property is commonly put under contract with a closing date two or three months in the future, sometimes more. These dates follow a due diligence period and sometimes financing or other contingency periods. While a property is under contract, and certainly while the owner has the contractual right to walk by way of the due diligence period language or otherwise, a contract is essentially an option on a property. Importantly, however, I’ve not seen this period considered as an option, and thus have not seen a option premium paid on any type of normal period. Thus, the norm is that this “option” is granted by sellers in return of undergoing a due diligence process.

On longer contracts the topic does not typically arise either. It is generally understood that for a seller to get his or her price, one is going to have to allow time for a buyer to get through one’s due diligence and other efforts and close. I believe a case can be made, however, that an option component should come into play as that period becomes particularly long. An option, after all, is a calculated fair value of the financial benefit of that option. To give it away in contract language without compensation is akin to allowing people to occupy rental property without (egads!) paying rent.

I have indeed seen a premium “paid” in the form of a price increased by the amount of calculated premium with that calculated premium being non-refundable. If you’ve read to this point, you might guess where I’ve seen this. If you guessed that it was a transaction I structured, you’re right. Doing it this way resulted in the same outcomes and allowed the structure to be put in place easily utilizing the standard FAR/BAR commercial contract.

So What’s the Bottom Line?

The bottom line is that a seller should be sure that he or she gets what is desired when entering into a contract to sell a property. If one is getting the price desired, and particularly if one is getting more, and is confident the buyer will close, that may be enough. However, as the length of time to closing and particularly the length of time for contingency periods to expires gets excessive, as one is less thrilled about the sales price, and/or as one is less confident that a buyer will close, collecting an option premium in the form of an amount above the price that is immediately non-refundable could be in order. As a rule of thumb, I use 4% of market value as the number, per year. That may be less than I calculated herein, but it is something in a world where most brokers give it no thought.

Perhaps move relevantly, when considering that one is essentially granting an option to a buyer in a contract with a due diligence period, it is important to know that a buyer is undergoing due diligence efforts to get to a close. Sussing out buyers that are not real is usually obvious to an experienced broker, but not to many sellers and frankly not to some brokers. This may be the most practical application of all this. In the bargain of executing a contract where a seller essentially grants an option and a buyer undergoes a due diligence process and otherwise moves toward a closing, a seller should make sure a buyer keeps up his or her side of the bargain.

Don’t rely on the above for investment related decisions. Instead consult with your accountant and other professional advisors.

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June 26, 2022

Miami Commercial Real Estate News June 22, 2022: 60-Story Edgewater Dev Rejected; Wennett Sells Warehouse Near Miami Produce Center; MB Hampton Inn Trades; More…

Pebb Capital, LeaseFlorida Sell Hampton by Hilton Hotel in Miami Beach for $43.9M

A partnership between investors Pebb Capital and LeaseFlorida has sold Hampton by Hilton at The Continental, a historic hotel located at 4000 Collins Avenue in Miami Beach. The undisclosed buyer, a privately held limited liability company, purchased the 100-room hotel for $43.9 million. According to the sellers, the transaction marks the second-highest price…

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Robert Wennett sells warehouse complex near Miami Produce Center for $11M

Robert Wennett sold a warehouse complex near his Miami Produce Center redevelopment site in Miami’s Allapattah for $10.5 million. An affiliate of Accesso Partners bought the 35,908-square-foot, multi-tenant industrial warehouse at 1335 Northwest 21st Terrace, according to a press release. The deal breaks down to $292 per square foot…

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Miami-Dade urges feds to push down loan interest on farmland

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Okan Group Breaks Ground on 70-Story Mixed-Use Tower in Downtown Miami

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JDS Development Group Receives Construction Financing for 64-Story Southside Park Mixed-Use Tower in Miami

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Preservation board approves NY developers’ South Beach office project

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Miami board OK’s Beckham stadium design, complex master plan

David Beckham’s proposed Major League Soccer stadium and surrounding mixed-use development just cleared another hurdle. The Miami Urban Development Review Board on Wednesday approved designs for the 25,000-seat stadium and nearly 5,000-car parking garage, as well as the master plan for the broader project, which includes a hotel, offices and a public…

Miami board rejects Aimco’s proposal for waterfront Edgewater tower

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Swire, Stephen Ross’ Related plan Florida’s tallest commercial tower in Miami’s Brickell

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Ugo Colombo’s CMC and Morabito land $65M construction loan for Bay Harbor condos

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Ares Management Pays $62M for 2 Miami Industrial Assets

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Developer switches office park plan in Pembroke Pines to mixed-use apartment project

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Investor drops $31M for North Lauderdale shopping center

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Goodbye Park ‘N Fly: Bridge Industrial pays $20M for site of planned logistics facility near Port Everglades

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June 22, 2022

Miami Commercial Real Estate News June 15, 2022: Trion Snags First Area Multifamily for $87M; Mana Sells NMB Office Building for $20M; Miami Office Construction Increasing; More…

Trion enters Miami-Dade with $87M multifamily purchase

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Boymelgreens score construction loan for condo project in Mid-Miami Beach

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Block Capital sells two Wynwood buildings for $19M

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Cymbal DLT nabs $102.5M loan for site purchase, construction of Miami Gardens apartments

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$26B Prologis-Duke deal ends cold war

Everything has a price. For Duke Realty, the industrial powerhouse that had fended off a takeover by Prologis for months, it was $26 billion. San Francisco’s Prologis will acquire Indianapolis-based Duke, which controls some 153 million square feet in 19 markets, in an all-stock deal expected to close in the fourth quarter, according to a Monday announcement.

Lease roundup: Nuveen nabs fintech tenant in Miami, Brookfield scores 20 leases at Boca’s Mizner Park

Finsight Group I Waterford Business District I Miami-Dade County New York City-based Finsight Group leased an office at the TIAA-owned portion of the Waterford Business District near Miami International Airport, marking continued influx of Northeastern fintech firms to South Florida. Finsight signed for 3,122 square feet at…

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Moishe Mana unloads North Miami Beach office building for $20M

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Goldman Properties, JV of Scott Robins and Philip Levine propose Wynwood projects

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Builders have high hopes for 3D-printed housing

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Amazon Slowdown Sends Shivers Through Red-Hot Warehouse Sector

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Walker & Dunlop Structures $61 Million in Financing for Miami Opportunity Zone Development

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Charles “Chip” Abele sells Hollywood mixed-use project for $66M tied to $84M refi

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Movie studio complex may rise on former incinerator site in Fort Lauderdale

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June 15, 2022

Miami Commercial Real Estate News June 8, 2022: Knight Center Redevelopment Plans Gain Ground; Edgewater MF Trades for $211M; Former Epicure Site Sold; More…

Hyatt, Gencom advance three-tower project planned for Knight Center site

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Michael Shvo along with an aerial view of his newly-acquired retail properties between 16th and 17th Streets along Alton Road in Miami Beach: Michael Shvo is betting big on Miami Beach. The New York developer, who made his debut in South Florida with the purchase of three South Beach hotels in 2019, bought a commercial strip on Alton Road — including…

Lease roundup: Fintech firm moves HQ to Aby Rosen’s 100 Biscayne in Miami

FundKite I 100 Biscayne I downtown Miami FundKite is the latest firm in the financial and tech fields to shun New York and opt for Miami. The fintech firm is moving its headquarters into Aby Rosen’s 100 Biscayne office tower in downtown Miami. FundKite took 5,302 square feet at the 30-story office building at 100 Biscayne Boulevard, according to a news release…

Here are the residential projects planned for Miami’s Wynwood

Developers seem to agree: Wynwood is a winning bet. Similar to other areas of Miami, developers are descending into the neighborhood and have over a dozen projects at various stages in the pipeline. An analysis by The Real Deal found that over 2,200 apartments and condos are coming to Wynwood. That number will likely rise as developers reveal unit…

Alta reels in multifamily dev site near Miami River for $15M

Alta Development picked up an assemblage near the Miami River for $14.6 million, with plans to build a multifamily project. An affiliate of Miami-based Alta Development, led by Principal Henry Pino, bought six properties at 1410, 1420 and 1428 Northwest 14th Avenue; 1420 and 1430 Northwest 14th Terrace; and 1451 Northwest 14th Street, according to records.

Wynwood BID Façade Improvement Grant Program- Inaugural Release

On behalf of the Wynwood Business Improvement District (“BID”) Board of Directors (“Board”), we are pleased to announce the inaugural Façade Improvements Grant Program for our District Members. The Grant is aimed at encouraging and assisting businesses and property owners within the district to restore and improve the appearance of their storefront and…

Robert Rivani’s Black Lion sells Brickell restaurant space for $13M

Black Lion Investment Group’s Miami commercial condo portfolio is a little lighter after selling a waterfront restaurant space for $13 million. An entity managed by Robert Rivani, president of Los Angeles-based Black Lion, sold the 10,700-square-foot space in the mezzanine level of Tower 4 at the Four Ambassadors Condominiums at 801 Brickell Bay Drive, according to…

Here are the resi projects planned for Miami’s Edgewater

More than a dozen projects will bring nearly 6,000 apartments and condos to Miami’s Edgewater, as developers bet big on the Miami housing market. Developers spent about $500 million on property acquisitions in Edgewater alone since late 2020, an analysis by The Real Deal found. Edgewater is hardly alone — other neighborhoods, like Brickell, also have many…

Richard LeFrak On South Florida, New York Affordability and Succession

Richard LeFrak could well be considered the elder statesman of New York’s real estate scene — the scion of a rental empire, the LeFrak Organization, which built and owns tens of millions of square feet there and across the country as well as being a longtime friend of former President Donald Trump. Richard LeFrak’s grandfather, Harry, founded the eponymous…

The Fed’s Beige Book: Growth Chugs On amid Signs of Inflation’s Impact

The Federal Reserve Bank of Atlanta’s new Beige Book compilation of on-the-ground reports shows that economic activity kept growing modestly from April through mid-May, with ongoing tightness in labor markets and rising costs. By and large, business contacts continued to report record profit margins, though several noted a “slight dampening of demand…”

Brooklyn developer plans 1,100-unit Fort Lauderdale project

Brooklyn-based developer Dependable Equities is moving forward with its plans for an 1,100-unit luxury rental project in Fort Lauderdale, the latest multifamily proposal in the Broward County city where thousands of apartments are already in the pipeline. The firm, led by Isaac Schlesinger and Rabsky Group co-owner Simon Dushinksy, went before the city’s…

Grocery store-anchored shopping center sales ignite South Florida’s retail market

Barron Real Estate principal Charles Ladd with JBL Asset ManagementManaging Partner Jacob Khotoveli and Plantation Marketplace at 7023 West Broward Boulevard in Plantation and Rivertowne Square at 1015 South Federal Highway in Deerfield Beach: A flurry of grocery store-anchored shopping center deals is setting South Florida’s retail…

Aimco drops $64M for mixed-use dev site in Fort Lauderdale’s Flagler Village

Aimco acquired a redevelopment site in Fort Lauderdale’s Flagler Village for $64 million that is part of an assemblage for a new mixed-use project An entity managed by executives of the Denver-based real estate development and investment firm bought the former Searstown Plaza at 901-927 North Federal Highway, according to records. The 5.6-acre site has a 155,760…

Nuveen buys Sunrise apartment complex for $44M

Nuveen Real Estate bought the Oasis at Springtree apartment complex in Sunrise for $43.7 million, marking continued investor interest in South Florida multifamily properties. Chicago-based Nuveen Real Estate, through an affiliate, bought the 276-unit, garden-style complex at 3551 Northwest 85th Way from an entity that lists Nancy Kodsi…

Ferreira family buys grocery-anchored North Palm Beach shopping center for $36M

Investors tied to the Ferreira construction and utility companies scooped up the Shoppes at City Centre retail plaza in North Palm Beach for $36 million. Brothers Antonio and Nelson Ferreira, through an affiliate, bought the property at 11201-11261 U.S. Highway 1 from an entity tied to Martin and Irving Osher, according to the broker’s release and state…

From tenant to owner: CTS Engines buys 44-acre industrial facility in northern Palm Beach County

CTS Engines paid $16 million for the northern Palm Beach County industrial facility it has been leasing for jet engine testing. CTS, a Fort Lauderdale-based turbine engine maintenance and repair company, purchased the 44.4-arce property at 18855 Bee Line Highway from Apogee Investment Partners, according to the broker’s news release. The property is in…

Publix pays $57M for shopping center it anchors in West Palm Beach

Publix boosted its South Florida retail real estate holdings with a $56.5 million acquisition of a West Palm Beach shopping center anchored by one of its stores. The Lakeland-based grocery chain, led by CEO Todd Jones, bought River Bridge Centre, a 229,781-square-foot retail plaza and nine outparcels at 6714-6868 Forest Hill Boulevard, according to a press…

Personal injury lawyers drop $9M for Palm Beach Gardens office building

A trio of Phoenix-based personal injury law partners paid $8.6 million for an office building in Palm Beach County. An entity managed by Sean Greene, Michael Steinger and Michael Feiner bought the two-story building at 11360 North Jog Road 101 in Palm Beach Gardens, records show. The three lawyers head Greene, Steinger & Feiner, a personal injury law…

Bainbridge and TPG team up for $161M purchase of a Jupiter apartment complex

Bainbridge Companies and TPG Real Estate Partners teamed up to buy a Jupiter apartment complex for $161.1 million. Through an affiliate, the joint venture acquired Allure at Abacoa, a 304-unit rental community at 1456 Cades Bay Avenue and 4515 Main Street, according to records. Wellington-based Bainbridge and Fort Worth, Texas-based TPG Real Estate paid…

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June 8, 2022

Self Storage’s Surprising Performance

Tom LaSalvia, Senior Economist with Moody’s Analytics, joins America’s Commercial Real Estate Show to discuss rent growth, cap rates, and a forecast for self-storage properties. He notes how self-storage has become a popular asset for institutional investors, discusses expectations following strong returns in recent years, and then closes on an optimistic note for the asset.

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June 2, 2022

Miami Commercial Real Estate News June 1, 2022: A&E District Dev Site Sells for $49M, Lincoln Road Building for $94M, Downtown Assemblage for $58M; Office Vacancy Steady; More…

Developer pays $49M for Arts & Entertainment District dev site with plans for 540-unit rental tower

LCOR is making its South Florida development debut with plans for a 540-unit apartment tower in Miami’s growing Arts & Entertainment District. Berwyn, Pennsylvania-based LCOR, through an affiliate, bought 1.1 acres of land at 1775 Biscayne Boulevard from an entity led by Aventura orthopedic surgeon Barry Silverman and his wife, Judy Silverman, according to…

AMAC, ROVR score $67M construction loan for Aventura Park multifamily project

AMAC and ROVR got a jump start on their planned multifamily project near Aventura in the form of a $67 million construction loan. New York-based AMAC and Coral Gables-based ROVR are developing the eight-story Aventura Park building with 290 units at 17990 West Dixie Highway, according to a news release from the lender, Ocean…

Mast Capital sells South Beach Walgreens for $9M

Mast Capital cashed out of a prime retail property in South Beach, selling a Walgreens store for $9.4 million. An entity managed by Rodolfo Fuentes of Miami bought the 15,020-square-foot retail building at 524 Jefferson Avenue, near Washington Avenue, according to a press release. Scott Sandelin and Alejandro D’Alba led a Marcus & Millichap team that…

Here’s the pipeline of resi projects in Miami’s Brickell Area

With at least a dozen projects in the works, Brickell stands to gain over 6,000 apartments and condos over the next few years, as developers bet on continuing demand for new housing. Leaflet map created by Adam Farence | Data by © OpenStreetMap, under ODbl. This year alone, Michael Stern’s JDS Development Group and New York-based Major Food Group expect…

Supply chain struggle costs South Dade Transitway year’s delay

The South Dade Transitway, one of the six corridors of the Strategic Miami Area Rapid Transit (SMART) Plan, is now expecting a one-year delay to begin operations as the Miami-Dade Department of Transportation and Public Works is having severe supply chain difficulties in finding fiber strands necessary for the communications and technology systems…

Miami looks to up the ante on Riverside Wharf lease

Miami city commissioners on Tuesday approved the ballot wording for a special election Aug. 23 at which city voters will get a second chance to weigh in on a vast mixed-use downtown project that would add a luxury hotel and a site lease up to a century. The new lease, if voters approve, would also mean more money to the city by increasing the base rent…

IT firm Kaseya adds signage atop its third Brickell building

Amid an influx of tech-centric innovations in Miami, IT powerhouse Kaseya has expanded its headquarters by leasing three floors of office space at 800 Brickell. Kaseya, which is a provider, designer and developer of unified IT management and security software for managed service providers and small to mid-size businesses, is expanding its Miami presence. It also…

Video: AFIRE CEO Gunnar Branson Discusses his Org’s Institutional CRE Investor Survey

For thirty years, AFIRE (Association for International Real Estate Investors) has conducted a survey each year in order to understand the goals, challenges and long-term views of international investors in United States based real estate. A chart on deployment, funds invested and allocation changes along with anticipated volume in the coming year, starts…

Insight: Fragile hotel industry needs involvement, Blumberg says

Growth in hotel developments and added rooms, triggered by the City of Miami Beach putting bed tax money into construction of the Loews Hotel in the late ’90s, made Miami-Dade third in the nation in hotels. Now, with about 11 hotels and 2,220 rooms projected to open between March and December, retired founder of the Greater Miami and the Beaches…

Tri-Rail arrival in downtown Miami misses another schedule

A Nov. 1 start of Tri-Rail passenger trips at MiamiCentral Station is no longer feasible, Executive Director Steven Abrams told the South Florida Transportation Regional Authority Friday, another setback in long efforts to bring the rail line downtown. Mr. Abrams argued that Tri-Rail hasn’t been able to complete needed training for its staff to run the service because…

Surfside collapse $1B settlement breakdown revealed

The $1 billion-plus Surfside collapse settlement was filed late Friday, revealing more than two dozen contributors to the victims of the tragedy. The settlement comes nearly a year after the devastating collapse of Champlain Towers South on June 24, which killed 98 people. The largest sum, $517.5 million, will come from Securitas…

Finvarb JV scores $45M in financing for Miami Beach Thompson Hotel-anchored project

A Finvarb Group joint venture can rev up construction on its Thompson Hotel-anchored mixed-use project in South Beach after obtaining $44.6 million in financing. Banesco USA provided a $22.3 million construction loan to the Finvarb Group affiliate that owns the vacant redevelopment site at 1685 Washington Avenue, records show. The 0.6-acre property is…

Damac plans Cavalli-branded luxury condos on Surfside collapse site

Hussain Sajwani’s Damac Properties will develop a Cavalli-branded condominium on the Surfside collapse site. As the winning bidder, the Dubai-based company will pay $120 million for the almost 2-acre oceanfront property at 8777 Collins Avenue. The development will mark Damac’s first project in the U.S. Damac has been looking for sites in…

“Terrible precedent:” Commissioner leads fight over Steve Ross’ plan to buy and redevelop the historic Deauville

Two days after Miami Beach Mayor Dan Gelber announced that Stephen Ross is proposing to redevelop the historic Deauville resort — which would require a voter referendum — commissioners moved to advance the plan. After a heated debate mostly between Gelber and Miami Beach Commissioner Kris…

Steve Roth’s Vornado sells Lincoln Road building for $94M, nearly 30 percent less than it paid a decade ago

Steve Roth’s Vornado Realty Trust sold the Regal Cinemas-anchored retail building on Lincoln Road in South Beach at a discount for $93.6 million. New York-based Vornado sold the property at 1100 Lincoln Road to an affiliate of Steve Gozini’s BH Properties, based in Los Angeles, according to records. The price is 29 percent less than the $132 million Vornado…

BH Properties Acquires Lincoln Center Retail Property in Miami Beach for $93.6M

BH Properties, a private real estate investment firm based in Los Angeles, has purchased Lincoln Center, a 129,360-square-foot retail destination in Miami Beach. Vornado Realty Trust sold the asset to BH Properties, marking the firm’s entry to the Miami market. The sales price was not disclosed, but South Florida Business Journal reported the property traded for $93.6…

Déjà vu? Moishe Mana says he is almost done assembling downtown Miami portfolio with new purchase

Moishe Mana is not quite done buying properties for his downtown Miami master plan. The investor and developer paid $7.3 million on Wednesday for the building at 118 Flagler Street, formerly home to The Children’s Place store, he announced. He owns the properties surrounding the site. Mana is reportedly nearly finished assembling his Flagler District portfolio…

Miami’s Office Vacancy Holds Steady

As of April, Miami’s office vacancy reached 13.5 percent, up 70 basis points since March, according to CommercialEdge data. The Magic City had one of the biggest year-over-year decreases in office vacancy nationwide and registered a 200 basis-point drop since April 2021. Markets that have registered larger year-over-year changes than Miami include Phoenix…

Brickman Sells Downtown Miami Office Portfolio for Loss

A pair of aging office buildings in Downtown Miami sold at a loss. Triple Double Real Estate and Stonerock Capital Partners bought the two office buildings in Downtown Miami for a combined $56.7 million, according to Cushman & Wakefield, which brokered the transaction. The larger property, also known as the Courthouse Tower, located at 44 West Flagler Street…

Hotel Astor owner buys Miami Beach apartment building

The Eatontown, New Jersey-based real estate investment firm that acquired Hotel Astor nine months ago picked up its second Miami Beach property for $7 million. Victory Investments Group, led by CEO Anil Monga, bought a 31-unit apartment building at 1770 Meridian Avenue across the street from the Miami Beach Convention Center, according to records.

Aimco plans 60-story apartment tower on waterfront site in Miami’s Edgewater

Aimco’s Wes Powell with Edgewater (Aimco) Multifamily giant Aimco filed plans for a 60-story waterfront rental tower in Edgewater, across the street from its Hamilton on the Bay apartment building. The Denver-based real estate investment trust is proposing a 241-unit mixed-use apartment tower at 555, 560, 600, 610, 620, 630, and 640 Northeast 34th Street, according…

‘Remarkable’ 90-Story Major Supertall Condo-Hotel In Brickell Will Have Miami’s Only Silver & Gold Pool

New over-the-top details of the Major supertall tower planned in Brickell have been released as the developer prepares to launch sales. Here’s a look at some of the key newly released points: Major will have a silver and gold pool. “I want to celebrate this sexy City with an indulgent swim in the only silver and gold pool in Miami,” said tower designer William Sofield…

Publix pays $13M for waterfront Hollywood site approved for supermarket

Publix paid $12.8 million for a waterfront Hollywood development site where it plans to build a new store. Real estate investor Albert Benalloun, through an affiliate, sold the 1.1 acres of land at 3100 South Ocean Drive to an entity tied to Lakeland-based Publix Super Markets, according to a deed. The property faces the Intracoastal Waterway and is a block west from…

Dania Beach approves 231-unit multifamily development with mostly studio apartments

Renderings of Koosh Living (Kaller Architecture of Hollywood) BSD Capital won approval for Koosh Living, a multifamily development in west Dania Beach with 231 units, mostly studio apartments. City commissioners gave unanimous approval Tuesday to a rezoning, a plat amendment, and a site plan for the development on Stirling Road in Dania Beach, near…

All-male Fort Lauderdale resort sold for $11M

A group led by a North Miami-based real estate investor paid $10.5 million for an all-male Fort Lauderdale resort. An entity managed by Lior Raviv and four partners bought The Grand Resort & Spa at 539 North Birch Road, just steps from Fort Lauderdale Beach, according to records. The deal breaks down to $318,182 per key for the 33-unit boutique property…

Galleria Fort Lauderdale owner revives, revamps redevelopment proposal

The owner of the Galleria Fort Lauderdale mall has dusted off a formerly contentious proposal to redevelop the property, this time with a different plan that won’t require a rezoning. New York-based Keystone-Florida Property Holding proposes at least 1,900 multifamily units on parts of the 42-acre Galleria Fort Lauderdale at 2414 East Sunrise Boulevard…

Emerald Empire pays $25M for shopping center near Boca Raton

Emerald Empire bought a shopping center near Boca Raton for $25 million. Emerald Empire, through an affiliate, bought The Shops at Boca Grove at 21077 Powerline Road in unincorporated Palm Beach County from an entity tied to Isram Realty Group, according to records. The buyer signed a ground lease with a limited liability company that is also tied to Emerald Empire…

Geneva JV acquires Royal Palm Beach medical office complex for $15M

A joint venture involving a Deerfield Beach-based real estate investment firm paid $15 million for a Palm Beach County medical office complex. Affiliates of Geneva Group and its partner, Syosset, New York-based VM Petro, acquired Regal Medical Center at 1011-1021 North State Road 7 in Royal Palm Beach, according to records. The price breaks down to…

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June 1, 2022

Video: Carl Whitaker of RealPage Discusses Student Housing Update 2022

In this video, Carl Whitaker with RealPage joins the host to discuss the current market and outlook for student housing investment property.

May 27, 2022

Miami Commercial Real Estate News May 25, 2022: $204M Luxury MF Planned Near Coconut Grove; Surfside Collapse Site to Sell for $120M to Sole Bidder; More…

Hidrock Properties partners with Alex Karakhanian on Miami A&E dev site

Alex Karakhanian sold a development site in Miami’s Arts & Entertainment District to a joint venture between New York-based Hidrock Properties and Karakhanian’s Lndmrk Development, The Real Deal has learned. The joint venture paid $19 million for the 0.9-acre property at 1601 North Miami Avenue, home to Elev8tion Fitness, the partners said.

Video: AFIRE CEO Gunnar Branson Discusses his Org’s Institutional CRE Investor Survey

For thirty years, AFIRE (Association for International Real Estate Investors) has conducted a survey each year in order to understand the goals, challenges and long-term views of international investors in United States based real estate. A chart on deployment, funds invested and allocation changes along with anticipated volume in the coming year, starts of…

Two Roads closes on $150M bulk condo purchase in Edgewater, plans three towers

Two Roads Development closed on a $150 million bulk condo purchase in Miami’s Edgewater, where it plans to develop a multi-tower luxury project. Two Roads, a West Palm Beach and Miami-based developer, gains a 3.5-acre waterfront site with the purchase of Biscayne 21, a 1960s-era condo. The deal is part of a growing trend of developers targeting older properties…

North Miami Beach development site assembled for $14M

A developer assembled a North Miami Beach development site for $14.12 million, with plans to build a 28-story apartment project. In the bigger deal, NMBPlace LLC, managed by Victor F. Dante in North Miami Beach, sold the 1.59-acre site at 1959 NE 164th Street for $12.9 million to NMB Place Owner, in care of Baltimore, Maryland-based JSB Capital Group. The same…

Interdevco pays $16M for Aloft Miami Dadeland hotel

Interdevco paid $16.1 million for a South Florida Aloft hotel that spent more than a year under receivership. The Miami-based real estate development and investment firm acquired the 119-room Aloft Miami Dadeland hotel at 7600 Southwest 88th Street in Kendall, according to records. Interdevco, led by President and CEO Josep Maria Suriol, paid $135,294 per room.

Settlement in Surfside condo collapse now over $1 billion

Families of those who lost loved ones in the Surfside condo collapse are now poised to get $1.004 billion, while the payout to unit owners has also swelled. Condo owners are now in line for a $96 million settlement, up from their original $83 million payout, and the payout to the families of those who died is up over $4 million from the previous nearly $1 billion…

JDS, Major Food Group to launch condo sales of Brickell skyscraper

Michael Stern’s JDS Development Group and Major Food Group are moving forward with their planned Brickell skyscraper. Renderings of the tower (JDS) Condo sales of The Major, a 259-unit tower planned for the site at 888 Brickell Avenue, are expected to begin this summer, with prices ranging from $1.6 million to $11 million, excluding penthouses, a….

Developer says he still can finance Rickenbacker Causeway upgrade

Improve safety for cyclists, replace and enhance Bear Cut Bridge, deal with resiliency and sea level rise, and create a 20-acre park and beach on Virginia Key were improvements the Plan Z Consortium intended to develop as part of an unsolicited proposal for the Venetian and Rickenbacker causeways. First presented to the county last summer…

Archaeologists dig into Miami history at Baccarat tower site

The very first beneficiary of the new Baccarat building at 444 Brickell Avenue is likely to be not tenants of a 75-story luxury residential tower but a museum, as archaeological work at the site uncovers shards of pottery and bones of millennia-old early residents of Miami. The 4-acre property, bought in 2013 by the Related Group, Florida’s largest developers…

Culmer Village to provide 612 affordable housing units

A large affordable housing development is planned for Overtown in the City of Miami. Richman Group of Florida Inc. is developing Culmer Village, two buildings hugging a parking garage proposed for a site at 690 NW 13th Street. The city’s Urban Development Review Board recommended approval, with a few recommendations. The project is described…

Auto Club towers coming to Magic City district

An auto club for motorsport enthusiasts is coming to the new Magic City Innovation District, riding the top floors of a sleek glass structure. Motorsport Tower, planned for 350 NE 60th Street, promises more than 200,000 square feet of offices in the new mixed-use development rising in the Little Haiti area. Miami’s Urban Development Review Board…

Brick & Timber Collective is piling up Wynwood properties, pays $9M for new office/retail building

Brick & Timber Collective doubled its Wynwood portfolio with a $9 million off-market purchase of a recently completed mixed-use project. The San Francisco-based developer and real estate asset manager bought a three-story office and retail building at 2724 and 2734 Northwest First Avenue. Brick & Timber Collective, led by partners Jesse Feldman and Glenn…

Dacar pays $22M for 119 acres outside Miami-Dade’s Urban Development Boundary

Dacar Management scooped up 119 acres outside the Urban Development Boundary in western Miami-Dade County. The Dania Beach-based company bought the property on the southwest corner of Southwest 72nd Street and Southwest 167th Avenue for $22 million, according to a deed. Seller HL Mills Family is managed by Cathy Mills, state corporate records show.

Prestige JV pays $15M for Salvation Army site in Hialeah, plans 112 rentals

Prestige Companies is a big believer in Hialeah. After building several residential projects in the city, it is now targeting a new multifamily development site. A joint venture between Prestige and Florida Value Partners bought the closed Salvation Army at 7450 West Fourth Avenue for $15 million, according to a deed. Seller Hialeah 4.9 QOZB is managed…

National Industrial Real Estate Prices Climb 20 Percent, Sales Nearing $19B in 2022

A backsliding economy and soaring inflation weren’t enough to slow record demand for industrial space nationwide in April. The average national industrial rent hovered around $6.47 per square foot and vacancies remained at 5 percent in April, all while the construction pipeline had over 640 billion square feet of additional space in the works, according to…

Stephen Ross wants to redevelop the Deauville Miami Beach with architect Frank Gehry

New York developer and Miami Dolphins owner Stephen Ross wants to buy the historic Deauville Miami Beach, with plans for a luxury oceanfront development. The 3.8-acre resort at 6701 Collins Avenue is in the midst of demolition, following a yearslong legal saga between the city and the property owner, as the building continued to fall into disrepair. Ross…

Damac to buy Surfside collapse site for $120M — no other bidders for property

Damac Properties is poised to buy and redevelop the Surfside collapse site where 98 people died last summer, after no other developers met the deadline to bid on the property. The Dubai-based developer was the stalking horse bidder, setting the minimum price last year for the property at 8777 Collins Avenue at $120 million. Earlier this month, in a move that…

Lionstone roars into Miami Gardens with $17M office building acquisition

Lionstone Development leapt into the South Florida office feeding frenzy with a $16.8 million acquisition in Miami Gardens. An affiliate of the Bal Harbour-based real estate investment firm acquired Commons Plaza, a newly renovated, three-story office building at 5901 Miami Gardens Drive, according to records. Lionstone, led by CEO Diego Lowenstein, paid $297…

MG plans $204M luxury apartment project near Coconut Grove

MG Developer is teaming up… to build a $204 million luxury apartment project near Coconut Grove and Coral Gables. Coral Gables-based MG and its partner, Baron Property Group, plan to build two towers with 450 apartments with parking, along with shops and restaurants on a 43,785-square-foot redevelopment site at 3898 Shipping Avenue, according…

MG Developer to Bring $204M Project to Miami

MG Developer is looking to expand its multifamily rental presence in Miami and has announced plans for its next luxury rental community. The company partnered with The Baron Property Group to develop Merrick Parc, a $204 million multifamily development. The project already received an initial $24 million tranche with $13 million in equity financing…

Ex-Kushner exec Jenny Bernell picks up A&E District development site in Miami for $20M

Jenny Bernell bought an Arts & Entertainment District property for $19.8 million, her third Miami multifamily development site purchase over the past year. Bernell, through her Clearline Real Estate, acquired the almost 0.9-acre Block E property at 1550 Northeast Miami Place from the Kluger Family Trust, according to a news release from the seller’s broker.

Tricera Capital co-founder Ben Mandell buys out partner Scott Sherman

Tricera Capital’s co-founders are going their separate ways, with Ben Mandell now controlling a majority stake in the Miami investment firm, The Real Deal has learned. Mandell took over as CEO, while Sherman will take a seat on the firm’s new advisory board, according to a statement provided to TRD. Sherman is keeping some control and…

Video: NAR Senior Economist Gay Cororota Discusses Their Economic Outlook 2022

In this 25 minute videos, NAR Senior Economist Gay Cororotan shares their outlook. This discussion includes the impact of inflation, rising interest rates, the infrastructure bill, and the Russian invasion of Ukraine (and knock-on effects). Gay notes that the recent inflation number of 8.5% is the highest in 40 years. The discussion moves on to general economic…

AMAC, ROVR Development Break Ground on Aventura Community

AMAC and ROVR Development are working together yet again for a project in South Florida. The two developers have started construction on a 290-unit community located at 17990 W Dixie Highway in Aventura. The developers also landed a $67 million construction loan from Ocean Bank for the project, which is slated to complete in the first quarter of 2024.

75,000 SF Office Lease Arranged in Miami for Medical Research Firm

JLL has arranged a 75,000-square-foot office lease at Quattro Miami, a four-building office park in the city’s Airport West submarket. The tenant, medical research firm Evolution Research Group (ERG), is relocating its South Florida regional headquarters to Quattro Miami from Hialeah. The move expands ERG’s office footprint by 45,000 square feet, according…

Aimco Says Construction Will Begin In 2023 On 1M SF Mixed-Use Edgewater Project

A major project is expected to begin construction in Edgewater in 2023, developer Aimco told investors. The construction start date was revealed last week in the company’s first quarter financial results. Aimco has a 20% stake in the project, and will serve as the project’s development manager. The company said it contributed an eighth of an acre of land purchased…

42,000 SF Office Lease Arranged at 800 Brickell in Miami

Cushman & Wakefield has arranged a 42,000-square-foot office lease at 800 Brickell, an office tower in Miami’s Brickell district. The tenant, IT management software provider Kaseya, is slated to officially move into the top three floors of the 15-story building next year. The 800 Brickell location will be Kaseya’s third office in Brickell. Tony Jones of Cushman…

Aztec Group Arranges $81M Construction-to-Perm Loan for Metro Miami Mixed-Use Development

Aztec Group has arranged an $81 million construction-to-perm loan for the development of Residences and Shoppes of Highland, a mixed-use development underway in the Miami suburb of Hialeah. The developer/borrower is an affiliate of South Florida-based Dacar Management, a development firm led by Alberto Micha. An affiliate…

Commercial real estate landscape remains in flux, experts say

An unstable economy and its impact on commercial real estate makes institutional investors nervous, South Florida innovator Stephen Bittel recently shared with FIU Business real estate students. “Inflation is a big problem,” said Bittel, chairman of commercial real estate developer Terranova Corp. “We’re set for a repricing on all of our asset classes.”

Lease roundup: Ryder Logistics leases 150K sf at Miramar Centre Business Park

Ryder Logistics I Cabot Miramar I Miramar Centre Business Park Ryder Logistics, which runs transportation, fleet and supply chain operations, moved its third-party logistics space from Pembroke Pines to the Miramar Centre Business Park. Ryder moved into a roughly 152,573-square-foot space at Cabot Miramar, 15501 Southwest 29th Street, from its…

Sterling drops $37M for Coral Springs shopping center anchored by Best Buy

Sterling Organization is sliding into the Broward County retail market with a $37.4 million shopping center acquisition in Coral Springs. An affiliate of the West Palm Beach-based private equity real estate firm acquired Coral Landings III, a 172,526-square-foot retail center at 6166 and 6200 West Sample Road, records show. Sterling, led by Managing…

SROA Capital pays $20M for Hallandale Beach industrial-flex property

SROA Capital picked up a warehouse-flex building in Hallandale Beach for $20 million, amid continuing investment appetite in the robust industrial market. SROA, through an affiliate, bought the property at 1000 Pembroke Road from an affiliate of Patricio Ureta’s Megacenter, according to a deed. The building spans 175,863 square feet and was constructed in 1986 on…

KVR Properties pays $26M for Pompano Beach apartment complex

KVR Properties bulked up its South Florida multifamily portfolio with the $26.3 million purchase of a 124-unit apartment complex in Pompano Beach. An entity managed by Arvind Reddy, founder and president of Coral Springs-based KVR, bought The Boardwalk Apartments at 460 East McNab Road, records show. New York-based The Bancorp provided the buyer…

Moderno nabs $102M construction loan for Fort Lauderdale apartment tower

Moderno Development Group scored a $102 million construction loan for an apartment tower in an emerging Fort Lauderdale district south of the New River. Doron Broman’s Moderno and project partner Robert Mathias of Boca Raton-based NCC Development are set to start building the 29-story Rivr Lofts on the west side of Southwest Third Avenue, and between…

Chetrit scores $94M construction loan for oceanfront condo project in Pompano

The Chetrit Group secured a $94 million construction loan for a planned waterfront luxury condo development in Pompano Beach. New York-based Madison Realty Capital provided the financing for Chetrit’s site at 2629 North Riverside Drive, said Henry Bodek of Galaxy Capital, who arranged the loan. A rendering of 2629 North Riverside Drive The New York…

Sean Conlon pays $18M for historic apartment and retail building in downtown West Palm

Sean Conlon, a merchant bank founder with a soft spot for old buildings, scooped up a historic apartment property in downtown West Palm Beach for $18 million. He bought the six-story, 38-unit Harris Music Lofts at 206 Clematis Street, which includes about 5,000 square feet of ground-floor retail, according to Zachary Baraf of the Stanwich Group, who was the…

Wellington real estate investor pays $16M for shopping center in own backyard

The son of an Andy Warhol muse galloped into Palm Beach County retail real estate, paying $16 million for a shopping center near the Wellington International equestrian center. An entity managed by Charles “Rusty” Holzer, owner and CEO of Wellington-based Worth Capital Holdings, bought the 46,848-square-foot retail site at 13501 South Shore Boulevard…

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May 25, 2022

Video: AFIRE CEO Gunnar Branson Discusses his Org’s Institutional CRE Investor Survey

For thirty years, AFIRE (Association for International Real Estate Investors) has conducted a survey each year in order to understand the goals, challenges and long-term views of international investors in United States based real estate. A chart on deployment, funds invested and allocation changes along with anticipated volume in the coming year, starts of the discussion. This moves on to anticipated changes in exposure to different property types, then on to another showing the top cities in the USA for planned investment.

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May 25, 2022

Miami Commercial Real Estate News May 18, 2022: Wynwood Hotel Gets Miami Board OK; Best Buy Anchored Shopping Center Fetches $18 Million; More…

Dacar scores $81M loan for Publix-anchored mixed-use project in Hialeah

Dacar Management will crank up construction on a Hialeah mixed-use project with 244 apartments and a retail component anchored by Publix, Burlington and HomeGoods. Affiliates of the Dania Beach-based commercial real estate firm scored an $81 million construction loan from New York Life Insurance Company, according to records. The fixed-rate…

David Arditi completes long-delayed YotelPad tower in downtown Miami

David Arditi with YotelPad (Yotel) Aria Development Group completed YotelPad Miami, the first new flexible, short-term rental-friendly condo and hotel project in downtown Miami. Aria, led by principal David Arditi, partnered with the Kuwaiti firm AQARAT to develop the 31-story building at 227 Northeast Second Street. The project has been in the works since…

Developer proposes Urby-branded apartments on former Art by God site in Wynwood

Ironstate Development and partner Brookfield Properties want to build an Urby-branded apartment building on the former Art by God site in Wynwood. Hoboken, New Jersey-based Ironstate, led by brothers David and Michael Barry, proposes the eight-story building on 1.3 acres between Northeast 26th and 27th st…

Mike Zoi’s Motorsport firm proposes offices at Magic City Innovation District

Race car driver and digital media tycoon Mike Zoi wants to develop a mid-rise office building at the Magic City Innovation District in Miami’s Little Haiti neighborhood. Zoi proposes a 13-story building west of Northeast Fourth Avenue and between 59th and 60th streets, according to a letter submitted by a Zoi-led entity to the city. The Miami Urban…

Pebb JV sells CVS-anchored retail space in Miami Beach for $18M

Pebb Capital and LeaseFlorida sold a CVS-anchored retail condo in Miami Beach for $18 million to a Torrance, California-based real estate investment firm. Capital Cove Investments acquired the two-story, 8,896-square-foot space underneath a four-level parking garage at 4000 Collins Avenue, according to a press release. It is adjacent to Pebb Capital and…

Crashing the party: New SPAC rules could slash proptech deals

Taking a proptech firm public will never again be so easy — if regulators have their way. Many feel it would be good if they did. Shares in proptech firms that went public over the last two years in a series of mergers with special-purpose acquisition companies, or SPACs, have continued a long downward slide into 2022, reflecting just how frothy that market…

South Florida inflation dips, still outpaces nation

Inflation in South Florida moderated slightly in the 12 months ended in April but remained far more than a percentage point above the average price rise for the nation as a whole. Inflation in this area as measured by the Consumer Price Index dropped from an annual 9.8% in March to 9.6% in April, according to figures the US Bureau of Labor Statistics…

A Luxury Development Boom Is Reshaping Miami’s Edgewater

Along Biscayne Bay just north of downtown Miami, the Edgewater area has emerged as a sweet spot for real estate investment amid South Florida’s wider migration-driven boom. In the years following the Great Recession, Edgewater received little attention from developers despite its central location between the bayfront and the popular Wynwood area…

Tunnels could speed mass transit under downtown, Kendall

The Miami-Dade Transportation Planning Organization is looking at the possibility of expanding the transit system underground. It just completed a study evaluating emerging technologies to assess the use of tunnel corridors in the county. The study used a tiered level analysis to identify potential projects, and the report only includes tier 1 and tier 2. The 78-page…

Bakehouse Art Complex gets city grant for building upgrade

Miami city commissioners have chosen to give a sizable federal grant to help fund an organization that supports city artists. At their latest meeting, commissioners allocated $2 million to the Bakehouse Art Complex Inc., a Florida not for profit corporation, to help pay for major improvements to its historic building at 561 NW 32nd St. in the Wynwood Arts District.

Surfside collapse unit owners ask court to up their $83M payout

Unit owners of Champlain Towers South in Surfside are asking the court to boost their $83 million payout, following a much larger $997 million settlement reached last week for the families who lost loved ones in the collapse. Roughly 50 unit owners are asking for a reconsideration of their allocation, citing the milestone future payout to the…

David Edelstein, partners buy Midtown Miami dev site, plan office tower

A long vacant piece of land at the entrance to Midtown Miami and the Design District at 3601 N Miami Avenue could finally be developed after a trio of prominent developers bought the assemblage, The Real Deal has learned. David Edelstein’s Tricap, Integra Investments and Alex Karakhanian’s Lndmrk Development paid $23 million for the…

Self storage still rising after pandemic surge

Eased pandemic restrictions mean fewer people are stuck at home with their extra stuff, but the nationwide interest in self storage doesn’t appear to be going anywhere. Rent performance and demand are still on the rise for self storage, according to a report from RentCafe. While the sector formerly relied on business from major life events such as death…

Frontier pays $18M for Best Buy-anchored shopping center in Kendall

Frontier Companies, a Coconut Grove real estate investment firm, paid $17.8 million for a southwest Miami-Dade shopping center. An entity managed by Eric Gordon, principal of Frontier Companies, bought the 49,456-square-foot retail center at 12495 Southwest 88th Street in the unincorporated neighborhood of Kendall, records show. City National…

Lease roundup: Nuveen moving Southeast HQ to 801 Brickell

Nuveen Real Estate, StoicLane I 801 Brickell I Miami Nuveen Real Estate is moving its Southeast headquarters to its 801 Brickell building in Miami’s financial district. Nuveen, the investment arm of TIAA, will relocate in January into a 3,487-square-foot space at the 28-story tower at 801 Brickell Avenue from its current office on Brickell Key. Nuveen also scored…

Developers win approval for downtown Miami medical marijuana dispensary

Miami’s de facto ban on medical marijuana dispensaries went up in smoke after elected officials voted…  On Thursday, the Miami City Commission, by a 3-2 vote, upheld a February 2021 planning and zoning appeals board decision that granted a certificate of use for a medical marijuana dispensary at 90 Northeast 11th Street. The property, which currently…

Boutique South Beach hotels trade amid heightened demand

The Villa Paradiso at 1415 Collins Avenue and The Orchid House Hotel at 1350 Collins Avenue with Randall Smith of Alden Global Capital and Joe Nakash:  Two prominent buyers acquired boutique hotels in South Beach in separate deals, as demand for such properties continues to rise. In the most recent of the two purchases, a company linked to the “vulture” hedge…

Praying for a profit? Developers plan multifamily project on North Miami church site, adjacent property

the Church of God Evangelical at 12830 Northeast Sixth Avenue in North Miami with Daniel Jaramillo and Tomas Sinisterra of Strategic Properties based in Miami: An apartment project with at least 220 units is poised to replace the Church of God Evangelical in North Miami, marking the latest redevelopment of a house of worship in a hot market where no site…

Tucandela Buys Wynwood Building to Open Latin-Themed Nightclub

Tucandela Group bought a Wynwood building for $9.2 million with plans to open an outpost of its Latin-themed nightclub, according to Metro 1, which brokered the deal. There are two Tucandela clubs  The Wynwood club is slated to open the first quarter of next year at 2445 N Miami Avenue on the corner of 25th Street. The 12,404-square-foot site includes a two-story…

Blue Road plans 20-story, 139-unit multifamily project in North Miami

Developer Blue Road won conditional approval to build a 20-story, 139-unit multifamily project in North Miami. Emblem Tower Apartments is planned for a site just west of I-95, along Northwest 7th Avenue, a major north-south artery that doubles as State Road 7. “This project probably will be the first development of any kind on this part of…”

Office Deals Cooled Off in Miami During Q1

In the first quarter of 2022, a total of $209 million in office deals have transacted within the Miami metro, according to CommercialEdge data. The market’s transaction volume has decreased since the same period last year, when it reached $395 million. Office deals seem to have slowed in 2022 compared to 2021 levels, but were still significantly up since 2020…

What Higher Interest Rates Mean for Miami CRE

Earlier this month, the Federal Reserve lifted its benchmark interest rate 50 basis points—its biggest increase in 22 years. The move represented the U.S. central bank’s second interest rate hike in less than two months and had been long anticipated by many. To find out what the recent interest rate hike means for the Miami commercial real estate market…

Brazilian investor Michael Krymchantowski gets Miami board’s OK to build Wynwood hotel

Brazilian businessman Michael Krymchantowski wants to develop a 60-unit hotel and residential building in Miami’s Wynwood. Krymchantowski got the green light from the city’s Wynwood Design Review Committee on Thursday for his planned eight-story Krymwood Hotel at 176 Northwest 28th Street. The committee suggested design tweaks, including…

Soil Testing Underway At Former Miami Arena Site Where Thousands Of Residential Units Planned

Soil testing appears to now be underway at the former Miami Arena site, according to a tweet by Kyle Merville. The biggest residential project in downtown Miami’s history is now moving through the approval process for the property. Developer Witkoff Group submitted preliminary plans to Miami-Dade in January for a development on the site with: 2,351…

Lennar proposes 1,335 homes and revamped golf course in Homestead’s Keys Gate

Lennar is teeing up a 1,335-home and golf course project in Homestead’s Keys Gate development that will be called Altimira. The Miami-based homebuilder recently submitted a proposed site plan and two zoning amendments to the city of Homestead. The city’s development review committee will consider the proposal at a meeting next Tuesday, and…

Surfside collapse lawsuit reaches nearly $1B settlement

The Surfside collapse litigation reached an almost $1 billion settlement, a landmark development in the court battle to bring some justice to the families of the 98 people who died less than a year ago. The milestone agreement follows weeks of mediation between attorneys for the plaintiffs and the slew of parties sued over allegedly contributing to the deadly…

Miami Office Pipeline Doubles Since 2020

As of March, Miami had 5.4 million square feet of office space under construction, according to CommercialEdge data. The pandemic seems to have had a positive impact on the metro’s office sector: at the end of the first quarter the pipeline more than doubled since the same period in 2020, when it reached 2.5 million square feet. The Magic City has been one…

Redevelopment ploy? Chetrit buys 102 condos at aging, oceanfront Hollywood Beach Resort

New York City-based Chetrit Group has acquired 102 condo units over the last six months at the Hollywood Beach Resort, an oceanfront property in Hollywood that the city’s founder built almost a century ago. Chetrit’s move further marks the trend among developers to buy out waterfront condo owners, which has accelerated since the tragic collapse of Champlain…

Philly firm pays $14M for Pompano Beach warehouse

A Philadelphia-based commercial real estate firm picked up a Broward County warehouse for $14.3 million. An affiliate of Alterra Property Group, led by co-founder and Managing Partner Leo Addimando, acquired the 21,306-square-foot industrial building at 1645 Northwest 33rd Street in Pompano Beach, according to records. The seller is an entity managed…

Industrial play: Alliance HP trades one West Palm complex for another

Clay Hamlin III is playing a game of Monopoly with Palm Beach County industrial real estate, replacing one property for another. Affiliates of Hamlin’s Alliance HP bought the Skees Industrial park at 1426 Skees Road just south of West Palm Beach for $15.9 million — shortly after it sold a distribution center at 1100 25th Street in West Palm for $12.2 million…

Benchmark drops $17M for historic Palm Beach apartment building

A New York-based multifamily real estate investment firm bought a historic apartment building in Palm Beach for $17 million. An affiliate of Benchmark Real Estate Group, led by principals Aaron Feldman and Jordan Vogel, acquired the 23-unit property at 184 Sunset Avenue, according to records. The buyer obtained an $8 million loan from Valley National Bank.

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May 18, 2022

Video: NAR Senior Economist Gay Cororota Discusses Their Economic Outlook 2022

In this 25 minute videos, NAR Senior Economist Gay Cororotan shares their outlook. This discussion includes the impact of inflation, rising interest rates, the infrastructure bill, and the Russian invasion of Ukraine (and knock-on effects). Gay notes that the recent inflation number of 8.5% is the highest in 40 years. The discussion moves on to general economic numbers, then further into commercial real estate trends and possible effects for various markets.

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May 17, 2022

Miami Commercial Real Estate News May 11, 2022: Pair of Downtown Miami Buildings Sell for $57M; Miami Beach Hotel Under Contract for $232M; More…

Vertical Cold Storage buys Medley freezer facility for $66M

A North Sioux City, South Dakota-based cold storage real estate firm breezed into South Florida’s industrial market with a $66 million deal in Miami-Dade County. Vertical Cold Storage, led by President and CEO Curt Mastbergen, bought a 274,191-square-foot freezer facility at 11801 Northwest 102 Road in Medley, according to records. The deal worked…

Seagis doubles down in Medley, paying $24M for two industrial facilities

Seagis Property Group is developing a taste for Medley. The Conshohocken, Pennsylvania-based logistics firm picked up a pair of adjacent industrial facilities for $23.7 million… It’s less than a month after purchasing a nearby trailer parking lot for $14.8 million. Seagis bought the property at 11100 Northwest 112th Court and the site at 10900 Northwest 138th Street

Seagis Property Group Completes Acquisition Of Two Prime Industrial Real Estate Properties In Medley

Seagis Property Group LP (“Seagis”), one of South Florida’s most active industrial real estate investors and owners, closed on a two-property industrial real estate portfolio located in Medley. Both properties were sold by Cemex USA, a global building materials company. Located at 10900 NW 138th Street, the first property is a seven-acre site, home to…

Tri-Rail says trains will be in downtown Miami by November

In a more optimistic presentation to the Citizens’ Independent Transportation Trust, Steven Abrams, executive director of the South Florida Regional Transportation Authority, reassured members that the Tri-Rail trains the authority oversees are going to roll into the downtown Miami station in November. “We do anticipate commencement…

Miami Gardens deals for logistics complex

As part of sale plans for 13 City of Miami Gardens-owned properties, city staff is seeking a sale-leaseback agreement with Ambrose Property Group to construct the Miami Gardens Logistics Complex. Following a request for proposals, a project would be developed at 1020 NW 163rd Drive and 1050 NW 163rd Drive, along with a parking lot separating the two properties.

October contract expected for a Miami International Airport hotel

The county has extended the second phase of a request for proposals to build a 4-star, 350-key hotel at Miami International Airport until May 25 at bidders’ request. “The county considered the requests reasonable,” an Aviation Department spokesperson emailed to the newspaper. The second phase is to be followed by the contract award, which is now anticipated…

Office buildings on Miami Beach-owned parking lots advance

As the City of Miami Beach has worked to diversity its economy and growth to reduce dependence on tourism, two major Class A office space developments in Lincoln Lane have been approved to continue contract negotiations with the city administration. The commission approved the land use amendments and term agreements for both projects on what…

Waldorf Astoria name sells residences in 100-story tower

Sales at what will be the tallest residential building south of New York City – Waldorf Astoria Residences Miami – continue to grow at a healthy rate. The 100-story assemblage of glass boxes in downtown Miami is the product of a partnership between New York and Miami-based developer PMG, Toronto-based private equity firm Greybrook Realty Partners and global…

Shoma details residences at Deel Volvo site

Miami-based developer Shoma Group has purchased a 2.5-acre site at 3650 Bird Road, currently home to Deel Volvo, near Coral Gables for $34 million. The property is to become the site for a mixed-use residential project called Shoma One, with 391 apartments and a Shoma Bazaar food hall. The development is expected to cost $220 million to construct, with…

Developers Unveil Plans For The Gardens at Lincoln Lane, Designed By Brandon Haw

Miami Beach commissioners voted last week to move forward with several mixed-use developments to replace surface parking lots serving Lincoln Road in South Beach. One of the development teams also revealed more details of the project they plan to build, to be called The Gardens at Lincoln Lane. The Gardens at Lincoln Lane will be developed by a joint…

Third time’s a charm? Hyatt and Gencom unveil new plan for hotel, apartments on James Knight Miami River site

Hyatt Hotels’ stalled plan to redevelop its downtown Miami River site and adjacent James L. Knight Center is back. Hyatt and Coconut Grove-based Gencom are partnering on a new proposal for three towers with a 615-key hotel and more than 1,500 apartments, and are seeking an extension of Hyatt’s ground lease for the city-owned property, according to the…

Scale Model Of Major Supertall Tower Planned In Brickell: Planning Comments Released

Developer JDS has released a photo of a scale model of their Major supertall tower planned on Brickell Avenue. The 82-story, 1,049-foot project also continues to move through the approval process with Miami-Dade planners. On April 14, Miami-Dade planners released comments to the initial design, with a request for: Wider sidewalks; More landscaping…

Chicago developer buys four waterfront Bay Harbor Islands dev sites for $23M

Regency Development Group is diving into booming Bay Harbor Islands, paying a combined $22.5 million for four waterfront development sites. In the largest of the deals, an entity with ties to Chicago-based Regency, led by Igor Michin and Alex Troyanovsky, acquired two adjacent properties totaling nearly an acre at 9927 and 9955 East Bay Harbor Drive

Prologis offers $24B for Duke Realty in industrial megadeal

Prologis has proposed to buy Duke Realty for $24 billion in an all-stock deal that would add about 160 million square feet to its industrial real estate portfolio. The San Francisco-based logistics specialist offered to buy the REIT for $61.68 per Duke Realty share, Prologis announced on Tuesday. Yesterday, Duke Realty’s share price closed at $47.71. Shares of…

Schulman Properties Lands Equity Financing for Self Storage Project

Schulman Properties has obtained $8.7 million in joint venture equity financing for Dixie Self Storage, a 1,068-unit self storage facility underway in North Miami Beach, Fla. An opportunity zone fund entered the 10-year partnership arranged by Northmarq. In July, the developer acquired the 1.37-acre site for $5.3 million, with the assistance of Lee & Associates.

“WeCrashed” offers few heroes but plenty of reflections for real estate

A V-neck? For a meeting? With an investor? Oh, Adam Neumann. You sweet summer child. Whether comedy or drama, some of the best television centered around the workplace takes a deeper look at the spirit of the times. Behind the three-martini lunches, “Mad Men” showed us ugly truths about American society in the 1960s. “Silicon Valley” satirized tech…

Starwood Capital JV Plans $116M Miami Mixed-Use Project

Miami Beach’s Lincoln Road District is primed for a transformation now that the City Commission is preparing to vote this summer on the approval of Lincoln Road Property Owner LP‘s proposal for The Gardens at Lincoln Lane, an approximately 155,000-square-foot mixed-use development. Lincoln Road Property Owner—a joint venture spearheaded by an…

$57M double play: JV acquires two downtown Miami office buildings

Triple Double Real Estate and Stonerock Capital Partners paid $56.7 million for two office buildings in downtown Miami. The joint venture acquired a 12-story building with a data center and ground-floor retail at 200 Southeast First Street, as well as a 26-story building anchored by First Horizon Bank at 44 West Flagler Street near the Miami…

$56.7M Sale of Two Office Buildings in Downtown Miami Brokered

A partnership between Triple Double Real Estate and Stonerock Capital Partners purchased the portfolio from an undisclosed seller. Mike Davis, Dominic Montazemi, Miguel Alcivar, Adam Spies, Rick Brugge and Rick Colon of Cushman & Wakefield represented both parties in the transaction. The properties include a 12-story building at 200 S.E. 1st St. and a…

Office space up for sublease back on the rise

The office sublease surge showed signs of abating late last year as companies juggled hybrid work plans and signed for space, but the rise in nationwide availability was back on in the first quarter of 2021. Sublease available rose 3.6 percent to 159 million square feet across the country, according to CBRE data reported by the Wall Street Journal. The…

Abbhi Capital, Peter Gardner pay $19M for Coconut Grove apartments dev site

Abbhi Capital is betting on multifamily in an Opportunity Zone in Miami’s Coconut Grove, paying $18.8 million for a development site that spans a full city block. Abbhi and investor Peter Gardner, through an affiliate, bought 2.4 acres in an Opportunity Zone on the southeast corner of Grand Avenue and Plaza Street. The seller is GV Bimini, managed by Gardner and…

Lease roundup: Gateway at Wynwood, Goodtime Hotel score tenants

OpenStore, Baseline, Daliyah and Mizu Rooftop Garden I The Gateway at Wynwood Tech e-commerce firm OpenStore has more than doubled its office space at The Gateway at Wynwood four months after first relocating to the office building. The 13-story property, at 2916 North Miami Avenue in Miami’s Wynwood neighborhood, also scored two new tenants.

Kushner to co-develop multifamily project south of Hard Rock Stadium

Gilbert Benhamou, Charlie Kushner, Laurent Morali and Nicole Kushner Meyer with 19199 Northwest 27th Avenue: Kushner Companies is diving into Miami Gardens real estate, The Real Deal has learned. Sources told TRD that New York-based Kushner is now a 50-50 partner on the multifamily component of Immocorp Capital’s planned mixed-use development…

Jobs report shows more workers returning to office

Hiring at restaurants, bars and hotels slowed in April, falling about 20 percent from March, according to government figures released Friday. Still, leisure and hospitality, the industry most affected by the pandemic, hired more workers than any other last month as the overall economy added a robust 428,000 new jobs. The unemployment rate remained…

Moishe Mana pays $16M for commercial assemblage in Allapattah

Moishe Mana fattened up his Allapattah portfolio with a $16 million acquisition of properties. The parcels include Las Rosas bar and lounge at 2898 Northwest Seventh Avenue, four retail buildings at 2800, 2820, 2840 and 2850 Northwest Seventh Avenue and a former grocery market at 728 Northwest 29th Street. The four other properties are a single-family…

Shoma pays $34M for Miami apartment towers dev site

Masoud Shojaee’s Shoma Group paid $34 million for a Miami auto dealership, with plans to redevelop it into a pair of apartment towers. Shoma bought the 2.5-acre property at 3650 Bird Road, steps from a Metrorail stop, from an affiliate of Deel Volvo, the dealership currently on the site, records show. Michael Fay of Avison Young represented…

The fall and rise of Marc Roberts, Miami nightclub and condo impresario

From the second floor VIP lounge of E11even nightclub in downtown Miami, Marc Roberts gazed down at a parking lot he bought in the city’s Park West neighborhood. It was late in the afternoon on a recent Thursday, hours before hordes of YOLO partygoers were set to pack Roberts’ lucrative nightlife venue for an early start to the weekend. “I don’t do any other…”

Vive la Miami: French developer acquires Edgewater site for $15M for first U.S. project

In two deals totaling $14.8 million… PR Group Florida, a subsidiary of the French development company led by Christophe Petit and Julien Ridon, paid $13.1 million for an assemblage in the city’s booming Edgewater neighborhood… included a low-rise apartment complex and three houses that were combined into one parcel at 423 Northeast 27th Street.

Sunstone puts The Confidante Miami Beach under contract for $232M

California-based Sunstone Hotel Investors put The Confidante Miami Beach under contract for $232 million, marking the real estate investment trust’s debut in South Florida. Sunstone agreed to buy the 339-key oceanfront hotel at 4401 Collins Avenue from an affiliate of Hyatt Hotels Corporation, according to the buyer’s news release. The deal is expected to close…

Land of development opportunity: Builders bet on south Miami-Dade

The South Dade Logistics & Technology District, a largely industrial complex with some offices and retail proposed for 800 acres outside the Urban Development Boundary in south Miami-Dade County: Miami real estate development duo Jose Hevia and Stephen Blumenthal are not afraid of taking risks, let alone catching heat. While developers’ proposals…

Class A Distribution Building In Medley Trades

Medley 104 Industrial Center, a 263,188-square-foot Class A distribution building in Medley, to an Ares Management Fund. CBRE represented the seller, Dallas-based Lincoln Property Company. The terms of the transaction were not disclosed. Located at 9400 NW 104th Street, the building is fully leased to three tenants: USPLY, PGT Industries, and Artefacto. It features…

Surfside investor completes $34M Hollywood bulk condo purchase

A Surfside-based real estate investment firm completed a $33.9 million bulk condo purchase in Hollywood. An affiliate of Infinity BH Corp., led by Ighal Goldfarb, acquired 160 condos at the 192-unit Luna at Hollywood at 3600 Van Buren Street, according to records. Infinity BH paid $212,000 per unit and obtained a $22 million mortgage from First Republic Bank.

Yamato Office Center in Boca Raton trades for $46M

The Yamato Office Center in Boca Raton traded for $45.9 million. A joint venture of MHCommercial Real Estate Fund II and an unidentified New York-based institutional real estate fund bought the two-building complex at 999 and 1001 Yamato Road from Adler Real Estate Partners, according to a news release from MHCommercial Real Estate. This is…

Pebb, Banyan sell Wawa-leased building at Mainstreet at Boynton

An aerial of the Mainstreet at Boynton with Banyan Development principal Jason Sher and Pebb Enterprises CEO Ian Weiner (LinkedIn, Pebb Enterprises, Aerial via Andy Traficante – Atlantic Aerial Imaging) Pebb Enterprises and Banyan Development sold the Wawa-leased outparcel at their Mainstreet at Boynton mixed-use project for $9.5 million. The…

Pebb, Banyan pay $37.5M for Research Park at FAU in Boca Raton

Pebb Enterprises and Banyan Development picked up Florida Atlantic University’s tech and innovation-focused Research Park in Boca Raton for $37.5 million. The joint venture bought the seven-building office portfolio at 3600-3998 FAU Boulevard, although the deal was for the long-term ground leasehold interest, according to…

Starwood, Hyperion and Winter Properties score $96M construction loan for West Palm mixed-use project

The project at 201 Clearwater Drive in West Palm Beach, Starwood Capital CEO Barry Sternlicht, Hyperion Group CEO Rob Vecsler and Winter Properties co-CEO David Winter: A joint venture among Starwood Capital Group, Hyperion Group and Winter Properties is charging ahead with a downtown West Palm Beach mixed-use project after securing a $96.4…

Ex-Neiman Marcus building on Palm Beach’s Worth Avenue trades for $78M

The ex-Neiman Marcus building along Palm Beach’s ritzy Worth Avenue traded for $78 million. Jeffrey Camp, through an affiliate, bought the three-story property at 151 Worth Avenue from an entity tied to New York-based O’Connor Capital Partners, according to a deed. Camp purchased the building through a Delaware-registered limited liability company…

Centaur scores $170M financing package for residential golf community at Avenir

Kyle Asher, managing director, Monroe Capital and Lotus Capital managing partner Faisal Ashraf along with a rendering of Panther National in Palm Beach County: The developer of Panther National, a planned single-family home community with a Jack Nicklaus-designed golf course in the Avenir development in Palm Beach County, secured a $170 million financing…

Pantzer pays $78M for West Palm Beach apartment complex

With its recent purchase of a Palm Beach County apartment complex, Pantzer Properties has dropped $145 million — in a one-month span — on two recently completed multifamily projects. An entity managed by Jordan and Jason Pantzer, co-CEOs of the New York-based multifamily investment firm, paid $78 million for The District Flats, a 178-unit apartment…

Woodmont beefs up Palm Beach Park of Commerce portfolio with $21M warehouse deal

Four months after acquiring a massive development site at Palm Beach Park of Commerce, Woodmont Industrial Partners paid the same seller $21 million for a recently completed warehouse nearby. An affiliate managed by Eric Witmondt, CEO of the Fairfield, New Jersey-based commercial real estate firm, bought the 212,000-square-foot facility at 15501 Park of…

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May 11, 2022

Miami Commercial Real Estate News May 4, 2022: Beckham MLS Stadium Approved; Southland Mall Sells for $100M; Land Secured for $220M Multifamily Development; More…

Miami approves major lease for Beckham soccer stadium mixed-use development

From left: David Beckham, former professional footballer and current president and co-owner of Inter Miami CF; Francis Suarez, mayor of Miami; and Jorge Mas, chairman, MasTec, along with a rendering of Miami Freedom Park: The city of Miami commission chambers erupted into cheers and applause after elected officials approved the long-awaited lease…

Shoma Group Acquires Site for $220M Miami Development

Shoma Group has paid $34 million for a 2.5-acre site for the development of Shoma One, a 391-unit community in Miami. Avison Young represented the seller, Deel Volvo. The $220 million project is slated to break ground in January 2023 and is set for completion in less than 24 months. Shoma One will encompass two 18-story towers with studio, one- and two-bedroom…

Surfside collapse site auction set for May 24

The Surfside collapse site auction is set for later this month, marking a landmark decision in the case and a milestone for unit owners poised to receive sale proceeds. Miami-Dade Circuit Judge Michael Hanzman late Wednesday approved the auction for May 24, less than a year after the oceanfront condo collapsed on June 24, killing nearly 100…

Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road

Developers’ controversial proposals to build offices on city-owned parking lots near Lincoln Road in Miami Beach gained ground on Wednesday. In a 5-to-2 vote, the Miami Beach City Commission gave preliminary approval to two development groups — one that includes Don Peebles and former mayor Philip…

Menachem Kranz buys waterfront Bay Harbor units in bulk deal, plans condo project

Menachem Kranz bought all the units at a waterfront Bay Harbor Islands condominium for $6.5 million, joining the trend of bulk purchases at aging buildings in the wake of the deadly Surfside collapse. Kranz, through an affiliate, bought the 10 units at 9110 West Bay Harbor Drive, with plans to replace the existing two-story building with a boutique condo…

Donald Trump, Don Peebles, Barry Sternlicht among real estate elite at Witkoff wedding

Some are calling it the wedding of the year. Zach Witkoff, president of Witkoff Capital, married model and actress Sophi Knight at the Mar-a-Lago Club in Palm Beach last weekend, and the event attracted real estate’s elite. Zach is also EVP of his father Steve Witkoff’s eponymous New York-based firm, Witkoff. Former President Donald Trump, who owns the private…

Hialeah apartment project scores $67M construction loan

Juan Carlos Gonzalez scored a $67.1 million construction loan for a Hialeah multifamily project that will replace a truck yard, marking continued investor appetite for apartments. Gonzalez, through his J.V.C. Management Corporation affiliate, obtained the financing for the Emerald Bay Apartments development at 4030 West 88th Street from Ocean Bank…

Assemblage complete: Clara Homes pays $18M for third Bay Harbor Islands redevelopment site

With a $17.6 million acquisition of four two-story rental buildings, Clara Homes completed a non-contiguous assemblage for a new luxury apartment complex in Bay Harbor Islands. The Miami-based real estate development firm, led by founder and CEO James Curnin, bought the buildings on 1.3 acres at 10200 and 10290 East Bay Harbor Drive

Rosewood Hotels to brand Michael Shvo’s Raleigh development in Miami Beach

Rosewood Hotels & Resorts will brand Michael Shvo’s Raleigh development in Miami Beach. The brand announcement marks a milestone for the project planned for 1751, 1757 and 1775 Collins Avenue, which has been in the works for years. Rosewood will manage the 60-key oceanfront hotel and brand the 17-story, 44-unit condo tower that Shvo plans to build…

Alta Developers takes over stalled Bay Harbor Islands condo, to relaunch sales with higher prices

Unable to secure financing amid rising construction costs, a Chilean condo developer handed over a stalled project site in Bay Harbor Islands to another firm, The Real Deal has learned. Supply chain issues, escalating costs and labor shortages pose the greatest threats to condo developers in South Florida today, as demand for units…

County plans to offer condo 40-year recertification loans

Condo associations needing financial aid to make emergency structural repairs to pass their 40-year recertification inspection may soon get relief from Miami-Dade County and private financial institutions. Commissioners Tuesday deferred a resolution directing Mayor Daniella Levine Cava to explore creating a loan program alongside financial institutions to…

11 Venetian Causeway bridges to be replaced

County commissioners approved on Tuesday a $10.6 million agreement between EAC Consulting and the Florida Department of Transportation to design plans to replace 11 bridges of the Venetian Causeway from Miami to Miami Beach. Work on the plans is set to start immediately. About four years of construction is expected to begin 2.75 years after a notice…

Freedom Park soccer plan passes touting billions for the city

A more than eight-year quest to establish a Major League Soccer team in the City of Miami culminated in an historic vote April 28, approving a 99-year lease of city property to David Beckham and his partners. What today is Melreese Golf Course, next door to Miami International Airport, will be transformed into Miami Freedom Park, with promises of billions…

MG buys redevelopment site near Coconut Grove for $20M

MG Developer paid $19.5 million for a redevelopment site near Coconut Grove where the seller previously planned a mixed-use project, The Real Deal has learned. In an off-market deal, Coral Gables-based MG’s affiliate, Merrick Parc LLC, acquired the 43,785-square-foot property with a small commercial building at 3898 Shipping Avenue, Jose Canero with The Cane…

JV pays $100M for Southland Mall, eyes mixed-use redevelopment

A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while adding a residential component. North Palm Beach-based Electra America and Miami-based BH Group teamed up to acquire the 808,776-square-foot indoor mall on a nearly 80-acre site at 20505 South Dixie Highway

Dezer sells North Miami Beach properties to Ari Pearl and partners for $31M

Dezer Development sold an assemblage in North Miami Beach for $31.1 million to a partnership led by Ari Pearl. Dezer sold properties anchored by Nova Southeastern University’s former North Miami Beach campus at 1750 Northeast 167th Street to Pearl, Matt Press of EquiShares and Isaac Khabie of ARK Ventures, according to…

Bridge Industrial nabs $154M construction loan for Miami Gardens project

Bridge Industrial got a major boost for its Miami Gardens business park development with a $154 million loan to complete construction of nearly 1.6 million square feet of new warehouse space. The financing is for the development of two Class A industrial buildings, representing the second phase of Bridge Point Commerce Center at 4310 Northwest 215th Street…

South Florida by the numbers: Miami developers stay nimble

Much of Miami’s recent real estate success has been attributed only to the pandemic, and the various shifts in mainstream behavior that resulted from it. But the full reality is much bigger and more complex, and involved many years of careful, patient planning to implement. “Miami is a 10-year overnight success story,” Mayor Francis Suarez…

Insatiable demand and tightening supply pump up South Florida industrial rents

South Florida industrial landlords experienced more bountiful returns on their investments during the first quarter, according to a recently released report. In Miami-Dade, demand consistently outpaced supply, even as industrial developers added about 11 million square feet of new warehouse space in the past three years, the JLL report found. During the same…

Two Roads plans bulk purchase of bayfront Miami condo building, to replace with luxury towers

Two Roads Development is set to close a bulk purchase of condominium units in a mid-rise bayfront building in Miami’s Edgewater, then redevelop the property as a three-tower luxury residential complex. The move follows the trend of unit owners at aging South Florida buildings opting to sell out to a developers…

House to Biden: Seize and sell Russian real estate

The House of Representatives has an idea of what to do with seized Russian real estate: sell it. The House passed nonbinding legislation on Wednesday, urging President Joe Biden’s administration to confiscate and sell the assets, the New York Times reported. Only eight representatives voted against the essentially symbolic bill. The bill calls on Biden’s administration to…

EverWest pays $14M for Fort Lauderdale industrial property

Denver-based EverWest Real Estate Investors bought a fully leased Fort Lauderdale industrial property for $14.1 million. EverWest purchased the warehouse at 635 Northwest Fourth Avenue and a 0.3-acre lot directly south of the building from Dixie Investments IV, according to the buyer’s broker. Jose Sasson and Roberto Susi of Axiom Capital Advisors represented…

Naftali doubles down in South Florida, buys Fort Lauderdale dev site for $20M

Naftali Group is ramping up in South Florida, acquiring its second development site in a little over a month. The New York-based condo and rental developer, led by Chairman and CEO Miki Naftali, paid $20 million for a nearly 1-acre property at 201 North Federal Highway in Fort Lauderdale’s Flagler Village, according to records. The acquisition comes…

Arkadia JV pays $31M for Coral Springs industrial complex

Barings Chairman and CEO Mike Freno, Arkadia managing principals Richard Kilstock and David Aaron and the industrial complex at 3850-3872 Northwest 126 Avenue in Coral Springs: Arkadia Property Group and Barings teamed up to buy a Coral Springs industrial complex for $31 million in an off-market deal. The joint venture acquired the Coral Springs…

Toronto REIT buys Juno Beach rehab center for $25M

A Toronto-based real estate investment trust bought a Palm Beach County rehab center for $25.4 million as part of a $600 million national portfolio deal. An affiliate of NorthWest Healthcare Properties REIT, led by CEO Paul Dalla Lana, is the new owner of the 107-bed Beach House Center for Recovery at 13211 US Highway 1 in Juno Beach, according to records.

Reuben Brothers buys Chesterfield Hotel in Palm Beach

Reuben Brothers bought the Chesterfield Hotel in Palm Beach, a boutique property developed in 1918. A company led by Richard Launder sold the hotel at 363 Cocoanut Row to an affiliate of Reuben Brothers, the private equity and investment firm led by British billionaire brothers David and Simon Reuben, according to property records and a spokesperson…

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May 4, 2022

Miami Commercial Real Estate News April 27, 2022: A $500M Bet on Flagler Street; Miami Rents 3rd Priciest in USA; Miami’s 22 Tallest Towers Under Construction; More…

Moishe Mana spent $500 million on Miami’s Flagler Street. Can he make his vision reality?

On a warm weekday afternoon, billionaire immigrant entrepreneur Moishe Mana, who took control of much of downtown Miami’s tattered Flagler Street district in an eight-year $500 million buying spree, arrives to tour the first of his 70 properties to go into construction — the grandly named Nikola Tesla Innovation Hub — in soft Louis Vuitton loafers, no socks.

The 22 Tallest Towers Under Construction In Miami In 2022

Miami is now enjoying its greatest high-rise construction boom in history, according to our new list of the tallest buildings under construction in the city. There have never been as many 500 foot towers under construction in Miami as there are this year. For the first time ever, all 22 towers on this year’s list of under-construction buildings surpassed the 500 foot mark.

Aby Rosen’s RFR expands downtown Miami portfolio with $26M hotel purchase

In a four-month span, Aby Rosen’s RFR Holding paid nearly $107 million for two adjacent downtown Miami properties, including a recent $25.7 million hotel purchase. An affiliate of New York-based RFR acquired the Yve Hotel Miami at 316 Northeast Second Street, also known as 146 Biscayne Boulevard, according to records. RFR paid $106,846 per key for the 241…

Altman wants to build 370-unit apartment project with grocer near Homestead

Altman Companies wants to build a 366-unit multifamily project with a shopping center near Homestead, amid the ongoing rush to develop rentals in the robust South Florida market. The Boca Raton-based developer is seeking to build Altis Palms on the southeast corner of Southwest 112th Avenue and Southwest 248th Street, and also just west of the Florida…

Miami overtakes Boston as third-priciest city for renters

As U.S. rents hit another new high in April, Miami edged out Boston as the third-most-expensive city to lease an apartment. Nationally, the median rent for a one-bedroom hit $1,410, the thirteenth all-time high in the past 14 months, according to apartment listing site Zumper’s monthly ranking. In Miami, rental prices have been rising at a fierce clip. Only in March, the…

Rental Asset Management buys Little Havana apartments for $30M

Rental Asset Management paid $30.1 million for the First & Sixth apartment building in Miami’s Little Havana neighborhood. The Oakland Park-based firm, through an affiliate, purchased the 13-story building at 35 Southwest Sixth Avenue from the developer, Eastern Atlantic Companies, according to records. The deal for the 100-unit property breaks down to $301,000…

South Florida’s retail market rebounds from pandemic but could face inflation, Russia war challenges: report

South Florida’s retail market rebounded from the pandemic-induced slump in the first quarter, as vacancies fell and rents rose, with Miami-Dade outperforming Broward and Palm Beach counties, according to a recently released report. Miami-Dade County had the lowest vacancy rate and highest asking rent of the three counties in the quarter, according…

Massachusetts investor pays $18M for Miami office building

Valero Capital Partners picked up a Miami office building for $18M, amid an uptick in South Florida sales in the sector. An affiliate of Lowell, Massachusetts-based Valero paid $218 a square foot for the nine-story, 82,298-square-foot building at 5040 Northwest Seventh Street, according to a press release. It is near Miami’s Blue Lagoon business district and…

Northeast Capital Sells Miami Office Building for $18 Million

Valero Capital Partners has acquired 50Forty on 7th, an 82,298-square-foot medical and professional office building in Miami, from Northeast Capital Group, according to CommercialEdge information. The same data provider shows Northeast Capital Group had purchased the building in January 2021 for $14.5 million. During its 14 months of ownership, the firm renovated…

Melreese Major League Soccer stadium impact on airport still unresolved

A new Miami-Dade Aviation Department draft report to the mayor, to which Miami Today got access, points to unresolved potential impacts on Miami International Airport from a proposed soccer stadium, food and beverage stores, offices, a hotel, conference center, and other commercial uses to replace the Melreese golf course next door. The developers, retired…

Fed’s Beige Book: Global Markets Affecting Southeast Energy Producers

Turbulent global energy markets are affecting oil producers and refiners across the Southeast, according to the Federal Reserve Bank of Atlanta’s latest Beige Book survey of business contacts across the Reserve Bank’s six-state region in the Southeast. Generally, business activity across all industries including energy expanded from mid-February through March.

City review narrowly recommends major Wynwood project

A developer plans to construct a major mixed-use residential project that will include new office space and nearly 40,000 square feet of commercial uses in the Wynwood Arts District. LIV WRK Wynwood is proposed for a site at 2400 and 2500 N Miami Ave. The project was considered April 20 by the city’s Urban Development Review Board. In a rare split vote…

University of Miami vast development program speeds up

Changes to the physical plant of the University of Miami that are projected as multimillion-dollar developments continue after a pandemic hiatuses. After the university announced plans to build Centennial Village, a freshmen on-campus housing project on the Hecht Residential College site, in January 2019, work to demolish the property on site is to begin in May.

Three firms paid grants for moving to downtown Miami

Miami’s Downtown Development Authority has approved funding three companies that would relocate to Miami and provide high-paying jobs. Two companies would receive grants from the authority of up to $50,000 yearly over three years under requirements of the Follow the Sun campaign, implemented in the fall of 2020, which incentivizes companies to relocate…

Courthouse repairs cost less, faster than inspection indicated

County courthouse basement repairs were faster than Miami-Dade authorities expected after consultant EXP U.S. Services Inc. determined following an extensive inspection last October that repairs to the 140-plus basement columns for an estimated $3.79 million were no longer necessary, two senior Internal Services Department officials confirmed to Miami…

Giralda Plaza dining experiment in Coral Gables came just in time

For nearly four years, Coral Gables’ Giralda Plaza has been a closed to vehicular traffic since the completion of the Downtown Streetscape Project. The Giralda Plaza Streetscape has worked brilliantly since the beginning and helped to further mitigate the ravages of Covid-19, said Mark Trowbridge, president & CEO for Coral Gables Chamber of Commerce.

Esteban Bovo Jr.: Hialeah mayor looks to streamline development process

Esteban Bovo has a lifetime in public service. He became a Hialeah council member in 1998, was reelected various times and became council president. The accomplishment as a councilman of which he is most proud is legislation that bars sexual predators from a radius of schools and parks; then the county adopted its own legislation, superseding his initiative.

Developer, glorify thy neighborhood: Lissette Calderon launches Allapattah-centric magazine

The AllaWay magazine cover and photos of AllaWay Creative Director Maria Galli, Editorial Director Jenny Starr Perez and Publisher Lissette Calderon: How do developers market their projects and neighborhoods to boost interest? Lissette Calderon is going the literary way. Calderon launched a luxury lifestyle magazine about Allapattah, the once…

Condo insurers exit market and hike rates after lawmakers fail to pass safety reform

Insurers have become increasingly averse to issuing policies for aging condominiums in Florida following the state legislature’s failure to pass safety reforms, despite the deadly Surfside collapse last year. Insurers are either retreating from the high-risk market or jacking up rates, leaving associations in a bind, the Miami Herald reported. The issue has…

Miami Office Property Transaction Volume Decreases YOY

Year-to-date through February, Miami’s office market has seen a total of $100 million in transactions, according to CommercialEdge data. In the same period last year, sales volume reached $129 million, at an average sales price of $154 per square foot. Transactions have been slower in the Magic City than in all other gateway cities, registering the lowest amount…

Beacon nabs Kendall office building for $20M

Beacon Real Estate Group acquired a Kendall office building for $20 million, as the sector rebounds from the pandemic. An affiliate of the Coral Gables-based commercial real estate investment firm bought 117 Professional Arts Center at 11731 Mills Drive in southwest Miami-Dade County, records show. Beacon Real Estate, led by CEO Richard Kulick, paid $316 a square foot…

Harrison LeFrak headed for big-ticket divorce: report

The real estate industry is set to witness another mega-divorce. Harrison LeFrak, the billionaire scion of the LeFrak Organization, is reportedly set to split from his wife, Katherine Embiricos LeFrak, Page Six reported. The couple had a son in 2019 and married within the last five years. One insider told the publication the decision to part ways was Harrison&rs…

Clara Homes wins approval for 28-unit first phase of luxury rentals in Bay Harbor Islands

Miami-based Clara Homes won approval for the 28-unit first phase of a luxury apartment project planned in Bay Harbor Islands. Construction of the six-story, 28-unit Clara Bay Harbor building will start by August, Clara Homes founder James Curnin told The Real Deal. It will be the first of three planned buildings with a total of 150 apartments. The first phase is…

Major Food Group, developer detail plan for Miami skyscraper

JDS Development Group and Major Food Group have filed detailed plans for a Miami condo that could become the tallest building in Florida. It was first announced in December that The Major would rise 1,049 feet with 259 condos and an assortment of restaurants at 888 Brickell Ave. Recently, 888 Brickell Owner LLC, owned by JDS Development’s Michael Stern, filed…

Turnberry, Carlos Rosso to develop condo tower at massive SoLé Mia in North Miami

Developer Carlos Rosso is partnering with Turnberry Development to launch a condo tower at SoLé Mia, a massive $4 billion mixed-use development in North Miami, The Real Deal has learned. The developers will begin accepting reservations for the building, called One Park Tower by Turnberry at SoLé Mia, in May, said Rosso, though brokers have been…

Miami-Dade May Move Its Resources Recovery Facility From Doral

Miami-Dade is looking to replace its Resources Recovery Facility, located in Doral since 1982, with a state-of-the-art waste-to-energy plant on the same or a different site. County commissioners approved a resolution directing the administration to develop and issue a request for information within 60 days for design criteria professionals to create a design criteria package…

Don Peebles on the hook for $800K in legal fees tied to Overtown lawsuit

Michael Swerdlow and Don Peebles along with a rendering of Block 55 in Miami’s Overtown neighborhood: Don Peebles is on the hook for $800,000 for Michael Swerdlow’s legal fees and costs tied to a lawsuit over the development of Block 55 in Miami’s Overtown neighborhood. Miami-Dade Circuit Judge Michael Hanzman on Thursday ordered Peebles…

Investors score $36M loan to renovate Publix-anchored shopping center in Kendall

A Miami Lakes investment duo scored a $35.6 million loan for a major makeover of their Publix-anchored shopping center in Kendall. An entity managed by Michael and Spencer Friedman… CF Properties… owns Crossings Shopping Village, at 12955 Southwest 112th Street. Howard Taft, Charles Penan and Joel Zusman, with Miami-based real estate…

Lender takes control of The Collective’s Wynwood dev site through foreclosure auction

The Collective lost its planned co-living development site in Wynwood to its lender through a foreclosure auction, The Real Deal has learned. New York-based Gamma Real Estate took control of the property at 166 Northwest 29th Street by placing a “credit bid,” or an offer using its existing debt of $27.6 million, to win the UCC foreclosure auction on Wednesday, a…

Waterfront Brickell development site of planned supertalls sells for record $363M

A waterfront development site in Miami’s Brickell traded for a record price of $363 million. An affiliate of Florida East Coast Realty, led by Tibor Hollo and his family, sold the empty lot at 1201 Brickell Bay Drive to a Delaware company. A Florida LLC with the same name as the buyer was created this month and is managed by Randall Davis with a Chicago address. 

Video: Consensus Strategies CEO Patrick Fox Discusses Zoning and Development Trends

Patrick Fox, CEO of Consensus Strategies, a company specializing in specializes in strategic advocacy and survey research services for leading corporate and institutional clients, joins America’s Commercial Real Estate Show to discuss zoning and development trends all around the country for 2022. Discussion topics include strategies for building consensus…

Colombian developers score $55M construction loan for Edgewater apartment project

A duo of Bogotá-based developers scored a $55 million construction loan for a multifamily project in Miami’s Edgewater neighborhood. Grupo Diana and Korner are building the 32-story Metro Edgewater with 279 units at 430 Northeast 31st Street, according to a news release from lender Madison Realty Capital. Melissa Rose and Jesse Wright of…

Miami’s Mayor on the City’s Growing Tech Sector

Miami Mayor Francis Suarez has an interesting perspective on COVID-19, after testing positive for the virus in March 2020. He was the first person in Miami-Dade County and one of the first elected officials to come down with the illness, thrusting him into the national spotlight to talk about the ongoing pandemic and how the city was responding to the crisis.

Demand driver: Grosman family plans to expand Hollywood rental complex

The owner-operator of a Hollywood multifamily complex dusted off its old plan and won renewed approval to expand the property to 277 units, as demand for apartments heats up across South Florida. Nautilus Apartments, a two-building, 193-unit rental complex at 3500 Washington Street, in the Hillcrest area of Hollywood, is set to grow by 84 units.

Lease roundup: Charles Cohen’s DCOTA scores 11 new tenants for 100K sf combined

Medtronic, PropertyForce, Bitty Advance and more I DCOTA | Dania Beach Charles Cohen’s Design Center of the Americas office and showroom complex in Dania Beach scored 11 new office tenants for a combined 100,057 square feet. Cohen owns DCOTA through his New York-based Cohen Brothers Realty Corporation of Florida. Five tenants to…

Italian developer plans 180-unit apartment project in Hollywood

An Italian developer closed on the site of a planned Hollywood apartment project, adding to a growing pipeline of multifamily developments in South Florida. Coral Gables-based Calta Group, led by founders and brothers Ignazio and Gaetano Caltagirone, and Managing Partner Igor Blatnik, paid $9.5 million for the 1.6-acre property at 2215 Hollywood Boulevard…

Catalfumo to launch sales of luxury condos on waterfront site in Palm Beach Gardens

Developer Dan Catalfumo plans to launch sales in June of a waterfront Palm Beach Gardens luxury condo project in Palm Beach Gardens, where units will begin at about $4 million. Palm Beach Gardens-based Catalfumo Companies plans to develop Landing at PGA Waterway on the 11-acre property south of PGA Boulevard along the Intracoastal Waterway…

Montreal investor pays $20.5M for Palm Beach County assisted living facilities

A Montreal-based firm specializing in health care real estate bought a pair of assisted living properties in Palm Beach County for a combined $20.5 million An affiliate of Comprehensive Care Capital (CCC) acquired the 125-unit Banyan Place at 2950 Northwest Fifth Avenue in Boca Raton for $16.4 million, according to records. The buyer, led by Managing Principal…

BGI scores $82M construction loan for luxury condo project in West Palm Beach

BGI Companies’ Kenneth Baboun, a rendering of Alba Palm Beach and Trez Capital’s Ben Jacobson BGI Companies landed an $82 million construction loan for a waterfront condo tower planned for West Palm Beach, as more developers enter that market, The Real Deal has learned. BGI Capital’s Robert Barthelmess Miami-based BGI secured the financing for…

It’s fun to buy the YMCA! Mast Capital JV pays $10M for Palm Springs center as multifamily dev site

A Mast Capital-led joint venture paid $10 million for an 18-acre YMCA property in Palm Beach County with plans to redevelop the site into an apartment complex. Coconut Grove-based Mast Capital, in partnership with Fort-Lauderdale-based The Spear Group and Boston-based Rockpoint Group, wants to build 11 three-story buildings with 264 class A…

Fuller, Pinilla make Palm Beach County debut with shopping center buy

Bill Fuller and Martin Pinilla’s Barlington Group entered Palm Beach County, paying $14.4 million for a shopping plaza. Barlington, through an affiliate, bought The Market Place in an unincorporated part of the county between Wellington and Greenacres, according to the buyer. The seller is J.J.D. Associates of Palm Beach Limited, tied to…

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April 27, 2022