Jul 17, 2024 - 0 Comments - Top Stories -

Miami Commercial Real Estate News July 17, 2024: Office Vacancy Drops, Rent Increases; Doral Warehouse Trades for $17M; 1,000-Unit MF Near Miami River Up for Review; More…

Revised Plans & Renderings Submitted For Brickell’s Massive 1 Southside Park

The developer building Brickell’s massive 1 Southside Park has filed revised plans and renderings with the county. The under-construction project includes a residential component known as Mercedes Benz Places. A foundation pour was recently completed for the first phase. The proposed changes include an increase in open space, increase in lot coverage (6%), reduction…

Unmasking the developers of South Florida’s biggest Live Local Act project

In South Florida real estate, self-promotion comes in hearty doses. For developers, generating buzz for themselves and their planned projects is as vital as scoring approvals and construction financing. Not so for Pablo Castro and Laura Tauber. The duo proposes a 3,233-unit apartment complex with six towers, ranging from 26 stories to 37 stories, in Miami-Dade County’s…

1,000-Unit Residential Project on Near Miami River Submitted To UDRB Review

Miami’s Urban Development Review Board is scheduled to hold a hearing today on a large residential complex. The multi-family development is proposed to be built in three phases on Delaware Parkway, about a block away from the Miami River. The buildings will rise 12 stories, and include a combined: 1,000 residential units 1,318 parking spaces The first two phases…

Sergio Pino dies by suicide during FBI home raid

Prominent South Florida homebuilder Sergio Pino was found dead from suicide at his Coral Gables home on Tuesday morning. Pino was being investigated by the Federal Bureau of Investigation amid a contentious divorce with his wife, who accused the developer of poisoning her. Pino, founder and president of Century Homebuilders Group and a major Republican donor…

Sergio Pino allegedly hired two crews to murder his estranged wife, law enforcement reveals

Before committing suicide on Tuesday, Sergio Pino allegedly hired a second team of hitmen to murder his estranged wife after the first crew failed to do the job, according to South Florida’s top federal law enforcement officials. The second group was also unsuccessful in killing Tatiana Pino, whose messy divorce from the deceased homebuilder was at the crux of Pino’s alleged…

345-Unit Downtown Miami Tower Advances With Site Work, Vertical Permit Filings

Plans for a 345-unit apartment tower in downtown Miami are advancing with multiple new construction permit filings. On July 3, applications were filed for both a site work permit and phased vertical permit at the Nexus Riverside Phase 1B site. Southern General Builders LLC is listed as the contractor on both permits. David Adler is listed as the qualifier for the contractor.

40-Story Flow Miami Worldcenter 2 Nearing Completion

The second tower at Flow Miami Worldcenter is now nearing completion. The first 43-story Flow tower opened at Worldcenter in 2019, with 444 apartments (previously named Caoba). The second tower began construction in late 2021 or early 2022, with a foundation pour in June 2022. Top off took place in Summer 2023. The new tower is 40 stories, and will have 411 residential units.

Plans Filed for 20-Story ‘Gamla Health District’ Residential Tower with Distinctive Geometric Facade in Miami

Development plans for a 20-story residential tower have been filed for 1355 Northwest 15th Street in Miami’s Health District. The project, named Gamla Health District, is designed by Behar Font & Partners and developed by Gamla Cedron HD, LLC, an affiliate of Miami-based Gamla Cedron Group led by Shaoul Mishal. Envisioned to rise approximately 232 feet, the building…

Plans Submitted For Gamla Health District With 224 Residential Units

Miami planners have received an application to build a residential project called Gamla Health District. The 20-story structure is proposed to include: 224 residential units (mostly 1-bedrooms, with some studios and 2-bedr0oms) Leasing office, co-working spaces, and other amenities 257 parking spaces, in a 7-level garage mostly hidden by residential units The top of…

55-Story Edgewater Tower Scheduled For UDRB Hearing

Plans have been resubmitted to Miami’s Urban Development Review Board for a 55-story multifamily tower in Edgewater following a redesign. The proposal had been filed with the UDRB last year, but withdrawn. According to The Real Deal, some residents of the neighboring Cite complex are opposed to a deal to build the tower. An demolition permit for an older condo…

Looser ban on subsidies for vast American Dream Mall advances

The county should loosen a 2018 ban on subsidies to develop multi-billion-dollar American Dream Mall in Northwest Miami-Dade to allow two forms of aid, a committee voted last week. The mayor’s office opposed loosening restrictions until developers meet requirements as the county asks exactly what is planned for the 82 acres that they got from the state…

Major Watson Island developments’ leases advance

Miami is drafting ballot language to put the future development of Watson Island to a public vote in November after commissioners were assured two deals will include an enhanced, city-wide benefits package. On July 11, the city commission unanimously authorized that two charter amendments be drafted and possibly proposed to voters this fall. If a majority of residents approve…

Providers jockey to offer Miami urban air taxi service

The race to introduce air taxis to Miami’s skyline is speeding up as one provider is targeting a 2026 launch and plans to buy 20 all-electric jets to make the futuristic vision a reality. Recent start-up and Miami-based advance air mobility operator UrbanLink announced plans in May to acquire the German-made Lilium electric vertical take-off and land aircraft, or eVTOL. The eVTOL…

New Deliveries Begin To Test Miami’s Office Success Story

Developers rushed to meet demand for trophy office space in Miami during the pandemic, with nearly 2M SF of space under construction at the end of 2023. The first of those projects are starting to come online, and they show that the surge in companies opening hubs in South Florida has meant uneven success for developers building new offices. Two of the three buildings delivering…

Miami International Airport, PortMiami plan cutting-edge trade amenity

PortMiami and Miami International Airport are partnering to increase trade and products that arrive in the US through South Florida by creating a state-of-the-art facility to sanitize incoming goods and provide cold storage for them. “We are expecting it to be highly innovative with technology and really be able to increase the products that come through here based…

Michael Lewis: Ignorance of the facts is no excuse to alter mall subsidy ban

County commissioners debated 90 minutes last week while dancing around key questions crucial to a final vote on an impactful decision – and they don’t seem to know the answers. They say they don’t know why predecessors six years earlier banned subsidies for American Dream Mall, which had been pitched as a $4 billion investment, later raised to $5 billion. If built as publicized…

Planned residences across from Douglas Park get thumbs down

A developer has proposed bringing 130 dwellings to a Miami neighborhood adjacent to one of the city’s most popular parks, and a city board turned thumbs down. The applicant is 2814/16 SW 37 LLC, owner-developer of a site at 3700 SW 28th St., across the street from Douglas Park. The project, Mosaic at Douglas, is designed as an eight-story multi-family building with 257,923…

UDRB to Review Plans for 39-Story Residential Tower at 2534 North Miami Avenue in Wynwood

Miami’s Urban Development Review Board has received an application for a 39-story multifamily residential tower at 2534 North Miami Avenue in Wynwood. The approximately 437-foot-tall building, proposed by 2534 N Miami Associates, LLC, an affiliate of New York-based Hidrock Properties led by Abraham J. Hidary, is designed by Arquitectonica and will feature landscape…

‘Sleek, Modern’ 39-Story Wynwood Tower Proposed Under Live Local Act

Plans have been filed for a new tower at 2534 North Miami Avenue in Wynwood. The project is being proposed under Florida’s new Live Local act, allowing developers to bypass some local zoning restrictions if they commit to build certain amounts of workforce housing. The proposed height is 39 stories, taller than other buildings in the area, thanks to Live Local. 2534 North Miami…

454-Unit Little River Tower Proposed Under Live Local Act

Plans have been filed for a new tower in Little River under Florida’s Live Local act. The recently passed law allows developers to bypass certain local zoning restrictions, including height and density, if they commit to building a percentage of units dedicated to workforce housing. The newly submitted tower is proposed to top off at 28 stories, or 321 feet above ground, and include…

California Firm Sells Doral Warehouse For $17 Million

The Goodman North America warehouse in Doral sold for $17.26 million. Goodman Doral 88th Court LLC, an affiliate of Irvine, California-based industrial firm Goodman North America, sold the 111,529-square-foot warehouse at 2100 N.W. 88th Court to Century Properties 2100 Doral LLC, managed by Ariel Chavez in Doral. Citibank provided a $17 million mortgage…

Proposed 55-Story Tower at 419 Northeast 19th Street in Miami Returns to UDRB for Review

Miami’s Urban Development Review Board has received another application for a 55-story tower at 419 Northeast 19th Street in Edgewater. The project, initially filed in October 2023, is scheduled for review on July 20 and has undergone several updates and modifications. The development team for this project includes architectural design by Fogarty Finger Architecture…

New Industrial Supply Attracts Steady Demand In Miami

More than 3.3M SF of new industrial space was delivered in the Miami market in Q2 2024, a wave of new speculative inventory that now totals 4.5M SF since the beginning of this year—an amount approaching last year’s total of more than 5M in new supply. This flood of warehouse space has been met by steady demand for new facilities fueled by positive demographic growth…

Construction to Start on 14 Roc Condo in 2025 at 125 NE 14th Street in Miami

GFO Investments through affiliate 14th Street Miami Investments LLC has filed plans for a 32-story tower in Miami-Dade County. The 14 Roc condo would offer 283 fully furnished condos, ranging from 410 to 964 square feet each, according to the South Florida Business Journal. Per BRG International, floorplans span from “sleek studios to spacious two-bedroom units…”

Mega-Project Planned on City-Owned Land in North Miami

Mega-projects are proliferating in the North Miami area. A joint venture known as Redwood is planning eight 18-story buildings that will encompass 2,193 residential units, 121,500 SF of commercial space and parking for 4,100 vehicles. The project would be built on about 39 acres of city-owned land in North Miami that includes 15-acre Claude Pepper Park, a community center…

South Florida retail rents, vacancies remain stable in second quarter

Retail landlords across South Florida had a steady ride for the first six months of this year, with vacancy rates in the low single digits amid some rent growth, according to a new report. Institutional investors also pumped up the tri-county retail market by going on a shopping center buying spree since the spring. Second quarter buyers included Pine Tree, a Northbrook, Illinois-based…

‘Naranja Grand’ Affordable Housing Community Tops Off In Southern Miami-Dade County

Housing Trust Group (HTG) recently celebrated a significant milestone with the topping off of Naranja Grand, a 320-unit affordable housing community in southern Miami-Dade County. In partnership with Miami Lakes-based Elite Equity Development, Naranja Grand will serve income-qualifying seniors and families across two eight-story buildings. The design and construction…

Demolition Permit Issued for 1401 Brickell Avenue, Paving Way for 40-Story ‘Santander Tower’

A demolition permit has been issued for the 1401 Brickell property in Miami, signaling the beginning of redevelopment for the site. Although plans for a new tower are in place, a new construction permit has yet to be filed. The issued permit outlines the total demolition of 236,877 square feet at an estimated cost of $5,890,000. The BG Group is listed as the contractor responsible…

SB, Hazelton revive controversial 55-story Edgewater resi tower

SB Development and Hazelton Capital Group have revived a controversial proposal to build a 55-story residential tower on a 0.3-acre lot in Edgewater. The Miami Urban Development Review Board will consider the project for a second time at its meeting on Wednesday. SB and Hazelton, both based in New York, first went in front of the board in October and withdrew their application…

Office asking rents rose across South Florida in second quarter

In South Florida, the median rent for office space rose in the second quarter, even as vacancies hovered above 10 percent, according to a new report. The office market was propped up by the high-octane performance of submarkets in Miami’s Brickell neighborhood and downtown West Palm Beach, where a concentration of new trophy buildings got the most attention from…

Office Vacancy Drops as Rents Increase in Miami

The national outlook for the U.S. office sector does not look bright, with the grim reality setting in that a nationwide vacancy rate of 20%—or worse—is likely to prevail for the foreseeable future. According to Moody’s, the 20.1% office vacancy rate notched in the U.S. in Q2 2024 is the overture of a swan dive that will see office availability continue rise through the end of 2026.

Brightline Details How It Will Increase Seat Capacity 75% To Meet Demand

Brightline has revealed further details on a plan to dramatically increase capacity, in a recent report to investors. A total of 30 new train cars will be put into service over the next year, increasing seat capacity by 75%. The 30 cars will be split into three separate deliveries of ten cars each. Each set of ten additional train cars increases monthly seating capacity by approximately 75,000…

Developer Launches 32-Story Downtown Miami Condo 14 ROC, Completion 2027

GFO Investments is launching sales for a new condo tower called 14 ROC. The 32-story development will include 283 units allowing flexible rentals. Units will range from 410 to 964 square feet, with prices starting at $495,000. RSP Architects is designing the tower. Interiors are by March and White Design. Landscape is by Urban Robot Associates. Cervera Real Estate…

Demolition Permit Issued At 1401 Brickell Site Where 765-Foot Tower Planned

A demolition permit has been issued for the 1401 Brickell property. A new tower is planned on the property, but there doesn’t appear to be a new construction permit filed for it yet. According to the newly issued permit, total demolition of 236,877 square feet is planned, at an estimated cost of $5,890,000. The BG Group is listed as the contractor. The demolition permit was first applied…

North Miami approves Redwood’s 2,200-unit apartment project at Claude Pepper Park, adjacent land

Redwood Dev Co scored approval for its 2,193-unit apartment complex in North Miami, marking one of the largest projects on tap in the western side of the city. The North Miami City Council voted 4-0 to approve the development of eight 18-story buildings, as well as 121,500 square feet of commercial space and 4,114 parking spaces. The project would rise on a 27.7-acre site…

Dryrun Demolition Permit Filed At Brickell Site Where 90-Story 1,049′ Tower Planned

A dry run total demolition permit was filed this morning for the Brickell site where a 90-story supertall condo hotel is planned. Since it is just a dry run, there is no contractor attached. A permit expediter is listed as a contact. There is also a separate permit pending to install a fence at the property. In April, JDS Development Group completed the purchase of the property for $61.2M…

Fortune scores $36M predevelopment loan for Casa Tua condo tower

Edgardo Defortuna’s Fortune International Group closed on the development site of its planned Ora by Casa Tua mixed-use condo tower and secured financing for the project. Brickell-based Fortune acquired the garage and land at 1210 Brickell Avenue in Miami in a deal that values the site at about $70 million. The firm already owned the air rights, so it paid about $30 million for the land…

Miami Has Become One Of Commercial Real Estate’s Most Important Job Markets

The days of lockdowns and Zoom happy hours may be over, but the pandemic’s long tail has created permanent shifts in real estate demand, boosting Miami’s profile as the firms that opened offices in Miami begin to settle in and expand. The arrival of those out-of-state businesses has helped push Miami into a new echelon of American real estate job markets. The city captured 5.3%…

Industrial asking rents soar in Miami-Dade and Broward, stay flat in Palm Beach County

Warehouse landlords are still in the driver’s seat, as median asking rents soared for most of South Florida’s industrial market in the second quarter. Industrial landlords in Miami-Dade and Broward counties experienced rent growth of 9 percent and 17 percent, respectively, in the second quarter, compared to the same period of last year, according to a recent JLL report.

$69.9 Million Refinancing Secured for 4000 Ponce/The Collection in Coral Gables

Miami-based real estate development firm CMC Group has obtained a $69.9 million loan from City National Bank of Florida (CNB) for the refinancing of 4000 Ponce/The Collection, a nine-story Class-A mixed-use office and retail development in Coral Gables. Developed by CMC Group Founder Ugo Colombo in 2002, the Mediterranean-style building is also home to The Collection…

CMC Group Lands $70M Refi for Coral Gables Office Building

The 190,000-square-foot building also features The Collection, a luxury car dealership, along with 32,000 square feet of retail space. Image courtesy of CommercialEdge CMC Group has obtained $69.9 million in refinancing for 4000 Ponce, a 190,000-square-foot office building in Coral Gables, Fla., a Miami submarket, according to REBusinessOnline. City National Bank of Florida…

Ugo Colombo’s CMC scores $70M refinancing for Coral Gables mixed-use complex

Ugo Colombo’s CMC Group landed a $69.9 million refinancing for a Coral Gables mixed-use complex anchored by The Collection exotic car dealership. City National Bank of Florida provided the five-year, floating-rate loan to the CMC affiliate that owns 4000 Ponce at 200 Bird Road, a press release states. A JLL team led by Paul Stasaitis and Paul Adams arranged the loan on…

Lease roundup: Medical spa on tap at River Landing, a sun-protective clothing company moves HQ from Minneapolis to Wynwood

River Landing Shops & Residences, one of the largest completed projects on the Miami River, scored two new tenants. Famous Footwear will open in the third quarter in a 5,100-square-foot space, according to a River Landing news release and a spokesperson. ProsperIV, which offers IV therapy, vitamin injections and other health and wellness services, leased 1,000 square feet…

Structure Capital drops $19M for Cooper City plaza, as South Florida retail deals flow

Diversified Realty Development sold the majority of the retail space at the Shoppes at Monterra Commons in Cooper City for $18.5 million, as South Florida retail deals continue to flow. An entity led by Job and Rocio de Ojeda of Fort Lauderdale-based Structure Capital bought the buildings at 3500, 3700, 3800 and 3900 North University Drive from Deerfield Beach-based…

What’s Behind Miami’s Hot Studio Condo Market?

In recent years, the Miami condo market has seen a dramatic rise in studio apartments. Once a rarity, these compact living spaces are now one of the most sought-after commodities. As starting prices for new construction condos in the city continue to soar and units under $1 million are increasingly scarce, studio condos are becoming an attractive and affordable alternative. Maria Elena…

Wills, partners buy Frisbie’s Islamorada resort for $72M

Frisbie Group sold a resort in Islamorada in the Florida Keys to the Wills Companies and its partners for $72 million. The buyers plan to sell the 22 villas included within the oceanfront resort, called Islands of Islamorada, as single-family homes and maintain the eight-key hotel, according to a press release. The Wills Companies and its partners will continue to manage the individually…

Nuveen sells 197-unit apartment complex in Plantation for $49M –– a 5% discount from a decade ago

Nuveen Real Estate sold a 197-unit apartment complex in Plantation for $49.4 million, marking a 5 percent discount from the firm’s purchase price a decade ago. New York-based Clarion Partners bought The Manor in Plantation from New York-based Nuveen Real Estate, according to records and real estate database Vizzda. The deal breaks down to $250,508 per unit.

Pompano Beach Development Review Committee to Consider Plans for 303-Unit ‘Atlantic One’

Gainesville-based Collier Cos. has plans for a residential housing complex in Pompano Beach. If approved by the city’s Development Review Committee on Wednesday, Atlantic One would comprise three five-story buildings, along with a one-story building and standalone clubhouse. In total, the venture requires just over 357,000 square feet of new construction.

Supplements mogul Darielle Singerman cashes out of industrial building at Boca Raton’s Park of Broken Sound

Supplements mogul Darielle Singerman sold an industrial building at Boca Raton’s Park of Broken Sound for $18.7 million. An entity managed by Serge Abecassis in Boca Raton bought the 78,024-square-foot warehouse at 701 Park of Commerce Boulevard completed in 2001, records and real estate database Vizzda show. The buyer also obtained a $11.5 million mortgage…

399-Unit ‘Oculina’ Calls for 1.34 Million Square Feet of New Construction at 3700 Broadway in Riviera Beach

A long-closed Winn-Dixie in Riviera Beach could soon be replaced with two 25-story towers connected by a six-story podium. Oculina would comprise 1.34 million square feet of new construction, offering nearly 400 condos ranging from studio to three-bedroom condos. According to the South Florida Business Journal, the homes’ square footage would measure 1,550…

Ronny Finvarb sells 128-key Courtyard hotel in Jupiter for $21M

Developer Ronny Finvarb sold the Courtyard Palm Beach Jupiter hotel for $20.9 million, marking a continuing flow of hospitality deals in South Florida. An entity tied to JW Marriott Family Enterprises bought the four-story, 128-key hotel at 4800 Main Street from Miami-based Finvarb Group, according to records and real estate database Vizzda. The purchasing entity is led…

Steve Ross launches firm focused on West Palm investments, steps back from Related

Billionaire Steve Ross is now fully committed to South Florida. Following four years of hefty investments and development in Palm Beach County, mostly in West Palm Beach, Ross stepped back from New York-based Related Companies and carved out the firm’s Related Southeast division into a separate firm that he will lead. Related Southeast is now rebranded as Related Ross…

Brian Tuttle hit with $38M foreclosure on his Main Street mixed-use project in Royal Palm Beach

Developer Brian Tuttle was hit with a foreclosure tied to $38.4 million in loans for his planned Main Street mixed-use project in Royal Palm Beach. The lender of three loans issued in 2021 claims that Tuttle and his affiliates, through which he owns the Main Street development site, failed to pay the full principal and interest due when the mortgages matured in December…

Investors more positive about CRE market nationally environment than last quarter

Real estate investor sentiment is up by 16% quarter over quarter, according to a new report from RCN Capital. The nationwide lender, which specializes in investor loans, maintains an Investor Sentiment Index (ISI) jointly with CJ Patrick Company, tracking market outlook based on four questions in a quarterly survey. According to respondents to the summer iteration…

Yardi: Apartment performance nationally subdued but ‘encouraging’ in first half

Apartment performance was solid in June, contributing to a moderately positive first half of 2024 that Yardi Matrix described as “encouraging” given present market conditions. Average advertised asking rents nationwide grew to $1,739 in June, up a steady but unexceptional 0.6% year over year. Those yearly gains have been receding since March, when that figure…

Retail Real Estate Buyers Vie To Thaw ‘Frozen’ U.S. Sales Market

The U.S. retail market is currently on a long stretch of rock-solid performance at the property level. The national vacancy rate is at a healthy 4.1 percent, according to first-quarter 2024 research from CoStar Group. This comes one quarter after a stellar 4 percent vacancy rate at year-end 2023. What’s more is net store openings are on pace to be positive for the third consecutive year…

United State Office Sector Awaits Rate Relief on Heels of Positive CPI Report

Highlights: June’s Consumer Price Index signaled further disinflationary progress with the odds for a 25-bps September rate cut increasing to over 85%, according the CME FedWatch Tool. Shelter inflation which has been stubbornly sticky on the downside rose at its slowest monthly pace since August 2021. Interest rate cuts can’t come soon enough for the office sector…

GenAI powers new early warning alert as risks and uncertainty surround commercial real estate

Moody’s introduces capability to determine when breaking news may impact lender and investor portfolios What if news broke that a major retail or office tenant – one that occupied a massive amount of space across several buildings in your portfolio – suddenly shuttered all of its locations? After the initial shock, the next step would be to assess the impacts. Before, this was an…

Video: PwC Real Estate Deals Leader Tim Bodner Discusses US Deals 2024 Midyear Outlook

The latest episode of America’s Commercial Real Estate Show  provides an in-depth look at the current state and future outlook of the commercial real estate market. This episode features Tim Bodner, a partner at PWC and its Real Estate Deals Team Leder, who offers expert insights from the US Deals 2024 Midyear Report. Note that this discussion is national in scope…

Demand for Green Buildings Outpaces Supply

Energy efficiency continues to be on the mind for many, as air conditioners and operating costs rise simultaneously during ongoing summer heat waves. I’ve written before about the integration of emissions reductions law information into Moody’s CRE platform to help clients track the evolving regulatory landscape, various incentives and financing programs for energy…

The Fed: Recent Trends in Banks’ Commercial Real Estate Exposure

Due to societal and economic changes triggered by the COVID-19 pandemic, segments of the commercial real estate (CRE) sector have increasingly become the focus of policymakers and analysts concerned with financial stability. More specifically, the shift to work from home has challenged the office segment, while changes in retail trade—such as a ramp up in e-commerce…

Commercial real estate succession planning guide

It’s never too early for multifamily investors to start real estate succession planning. In fact, “you can’t do it early enough,” said David Diggs, Senior Regional Sales Manager at Chase. So whether you’re close to transferring your business to family or just want to be well-prepared to one day transition leadership of your family real estate business, it’s a good time to take steps…

Podcast: Investment Trends in Focus; Quarterly Roundtable Q3 2024

Our panel of experts, led by chief research officer, Ashley Lester, takes stock of global markets as we enter the back half of 2024. Ashley and team examine the short- and long-term issues affecting investors, including the ever changing geopolitical landscape, the continued impact of AI and the role of private markets in the carbon transition.

The Fed’s Beige Book: Economic Activity Mostly Unchanged

Economic activity across the Southeast was largely unchanged during late May and June compared to the previous six-week period, according to the Federal Reserve Bank of Atlanta’s new Beige Book of anecdotal reports from business contacts. Patterns at work for the past couple of months continued: Labor markets and wage pressures eased further, and worker availability…