Certainly these could be characterized as the “duh charts” in this environment. Business is obviously down, and uncertainty is up. That is not news. It is nonetheless interesting to see this all graphically represented. It also serves to remind one that that uncertainty means only what it means, not certain. Put differently, it simply means the there is a wider than normal range of potential outcomes, and half of those are better than the median of them.
In this two part video series, CCIM Chief Economist K.C. Conway, CCIM, MAI, CRE, joins the host of America’s Commercial Real Estate Show to discuss what to expect move forward. Among the discussions expectations for jobs, property values, and economic recovery timing. He notes he is particularly concerned about leisure and travel, which he notes is 10% of global GDP…
The Developer Behind Some Of Manhattan’s Biggest Projects Plans First Miami Project In Wynwood
Two New York developers have formed a joint venture to redevelop a 3-acre assemblage in Miami’s Wynwood Arts District, they announced Wednesday. L&L Holding Co. and Carpe Real Estate Partners envision a mixed-use development with a Class-A office tower, indoor-outdoor retail space, a luxury residential apartment building and large public and private outdoor open spaces. The assemblage, at the northeast corner of NW…
$1 Billion Miami Soccer Stadium Project Takes Step Forward, But More Challenges Lie Ahead
Seven years into their quest to establish Major League Soccer in Miami, David Beckham and his business partners finally launched their team, Inter Miami CF, this year. But because of holdups building a stadium in Miami, the team was ready to begin play in Fort Lauderdale, 34 miles north. It was about to host its first game against the LA Galaxy in March when the…
164,432 SF Lease Renewal in Miami Negotiated for Logistics Company
Colliers International has negotiated ECU Worldwide’s 164,432-square-foot industrial lease renewal in Miami. The space at 2401 NW 69th Street has been ECU’s long-term home. The new lease is for a period of a little more than eight years and is valued at more than $10 million. ECU specializes in global multi-modal transport and warehousing services. The property is…
$4.9 Million Medley Storage Asset Sale Arranged
CBRE has completed the $4.9 million sale of A Storage Place, a 56,000-square-foot property at 7450 NW 74th Avenue in Medley, Florida. Senior Vice Presidents Tom O’Loughlin and Larry Genet and Senior Associate Jake Zebede represented both the seller and buyer, two private investors. The new owner financed the purchase with a $3.9 million acquisition loan…
164K SF Lease Signals Resiliency Of Miami Industrial Market
ECU Worldwide’s lease renewal with landlord Realterm and institutional investors advised by J.P. Morgan Asset Management at 2401 NW 69th Street in Miami signals the resiliency of the South Florida industrial market. Colliers International Florida’s Executive Managing Director Jonathan Kingsley and Director of Industrial leasing Ryan Goggins…
Industrial Real Estate Sees Promising Future As Sector Benefits from E-Commerce During Pandemic
COVID-19 pandemic? Oil price crash? During this unprecedented time with unprecedented events, DFW industrial real estate—if you can believe it—is cruising into a promising future with even more upside potential. Coming into March, our market was as strong as ever, highlighted by “peak” rental rates, building values, occupancy, absorption, and 30 million square feet…
Blackstone’s Stephen Schwarzman forecasts “big V” recovery
Will the economy’s recovery from the pandemic resemble a U, V or W-shape? Blackstone Group CEO Stephen Schwarzman is firmly in the V camp, according to his statements at Bloomberg Invest Global’s virtual event. “You’ll see a big V in terms of the economy going up for the next few months because it’s been closed,” he said, though he noted that the…
For future pandemics, Miami Worldcenter plans $60M health center
Dan Kodsi and Legacy Hotel & Residences To attract guests, hotels have long bragged about pools, spas and banquet space. But in the age of the coronavirus pandemic, one Miami developer is including a medical center with ventilators as part of its marketing pitch. Dan Kodsi’s Royal Palm Companies announced plans to develop a 100,000-square-foot health…
Luxury office, resi project planned for former Rubell museum in Wynwood
L&L Holding Company is expanding outside of Manhattan for the first time, partnering with Carpe Real Estate Partners in Miami to build a mixed-use project in Wynwood. The two firms are under contract to buy a 3-acre assemblage anchored by the former Rubell Family Collection property on Northwest 29th Street and First Avenue, according to Erik Rutter and…
Simon Property Group, Brookfield might bid on J.C. Penney
Two of J.C. Penney’s landlords are trying to buy their way out of trouble. Mall owners Simon Property Group and Brookfield Property Partners are said to be considering a joint bid to buy the beleaguered department store chain, the Wall Street Journal reported. Talks were first reported last week, and at the time, brand management company Authentic Brands Group…
Here’s how much tenants pay for space at Blackstone’s massive industrial portfolio
Blackstone’s Jonathan Gray When Blackstone Group shelled out $18.7 billion last year for 179 million square feet of industrial space, it was one of the largest real estate deals in history. So it’s not surprising that when Blackstone tapped the securitized debt market to finance a large chunk of that portfolio it acquired from Singapore’s GLP, it ended up being one…
Near-zero fed interest rate offers opportunities
The near-zero fed rate can present a special opportunity to some, but it comes at a time of uncertainty, according to one local banker. Bert Lopez, chief financial officer at US Century Bank, said the federal reserve rate is extremely important to how the bank, as well as the rest of the world, does business. The fed rate cut is especially impactful on short-term rates…
Florida Grand Opera shares home with aviation company
Florida Grand Opera’s search for a new headquarters has been temporary stalled due to the coronavirus pandemic shutdown. The opera sold its 35,000-square-foot Doral Center building at 8390 NW 25th Street for $7 million back in October 2019, according to Cushman & Wakefield real estate services, which represented the opera company in the sale. The opera…
Three-judge panel weighs Coconut Grove Playhouse future
A panel of three judges from the Appellate Division of the 11th Circuit Court will determine the fate of the Coconut Grove Playhouse, which is considered one of the Miami-Dade’s historic landmarks. At a June 16 hearing held through Zoom, the three-judge panel consisting of Lisa Walsh, Daryl Trawick and Angelica Zayas heard oral arguments about…
Property values, Covid-19 cut vast hole in Miami Beach budget
The City of Miami Beach has held its first budget meeting for the next fiscal year and the financial outlook is dismal – and not just because of Covid-19. Nearly all commissioners and the mayor participated in the meeting last week, in which Chief Financial Officer John Woodruff walked the elected officials through the outlook for the 2021 fiscal year. While the impact…
Main Street Lending Program downsizes targets
Recent changes to the Main Street Lending Program will make the Federal Reserve-backed loans more appealing to small and mid-sized businesses that were relatively stable before the pandemic took its toll, local experts say. The Fed announced June 8 that the Main Street Lending Program would cover loans as low as $250,000 (down from $500,000) and extend the…
Presidential election may turn spotlight back to Opportunity Zones
November’s presidential election may turn the spotlight back on the Opportunity Zone program, which has faded from view after the initial rush to invest capital into properties and projects ahead of a key deadline late last year. And Steve Glickman, the former Obama administration adviser who helped map out the federal tax break program, thinks…
Alex Karakhanian sells Wynwood property for $17M
Developer Alex Karakhanian sold a Wynwood building leased to Revlon and Scripps Network for $17 million. Karakhanian’s 3704 NE 2nd Ave LLC, a 90.1 percent owner, and Chaim Cahane’s FCM 48 NW 25 LLC, a 9.9 percent owner, sold the 20,730-square-foot office and retail building at 48 Northwest 25th Street in Miami. Property records show the buyer is 3 CI…
Rent Control in Florida? Exploring the Issue
Rent control is one mechanism proposed to address affordable housing issues. Here are some pros, cons, and compromises Long before COVID-19, countries around the world were facing a common crisis: affordable housing. The post Rent Control in Florida? Exploring the Issue appeared first on Commercial Real Estate South Florida….
Church near Flagler Village to be redeveloped into mixed-use project
A Miami developer bought the Fourth Avenue Church of God near Fort Lauderdale’s Flagler Village, with plans for a mixed-use project that will have a food hall. Eduardo Pelaez’s Wellmeaning Investments acquired the 1.2-acre site at 1219 and 1239 Northeast Fourth Avenue for $2.4 million. The property includes a 6,721-square-foot building and a 12,508-square-foot…
Foundry Commercial scores construction loan on Hialeah Gardens industrial complex
Foundry Commercial scored a $26.3 million construction loan to build two industrial warehouses in Hialeah Gardens. Wells Fargo provided the debt for the development at Northwest 146th Street and Northwest 107th Avenue. Orlando-based Foundry recently secured approval from Miami-Dade County for the project. The warehouses will be 164,567 square feet…
By the numbers: Viral and volatile times for business
Businesses and individuals are taking stock of their losses stemming from the coronavirus pandemic, as reopenings begin in major cities across the country. The full impact has yet to be seen, as office buildings, stores and hotels open back up at reduced capacities and people slowly adjust to new routines. But for the first time since the pandemic hit, the U.S reported…
Care Resource buys Little Havana office building
Miranda Health care nonprofit Care Resource paid $5.4 million for an office building in Little Havana, as the neighborhood continues to attract medical providers. Mohammad Siddiq Khan and Ghazala Bilqees sold the 32,408-square-foot building at 1800 Southwest First Street to Care Resource Community Health Centers, property records show. The four-story…
Unemployment filings stabilize — but at record highs
Another 1.5 million Americans filed for unemployment benefits last week, about one-third fewer than the week prior. The number suggests that the rate of job loss in America has stabilized, even though businesses continue to hemorrhage employees at unprecedented levels. The Department of Labor’s unemployment report for the week ending June 13 showed 20.5…
The breakdown: Inside Virgin Hotels’ $330M vision for South Beach and how it vanished
Virgin Hotels had been looking for the right redevelopment opportunity in South Beach for years, and appeared to have found it a few months ago in HFZ Capital Group’s Shore Club. An offshoot of Richard Branson’s Virgin Group, Virgin Hotels created a proposal to purchase the 309-key beachfront hotel for $235 million, The Real Deal has learned. It put together a…
Half of deadbeat chains start paying rent again
As retailers reopen for business, their landlords can take a breath of fresh air. Their tenants are starting to pay rent. At this time last month, 18 major retail chains had not paid May rent in any of their locations. This month, only nine out of the 127 retailers in a mid-month Datex report were total deadbeats. H&M made one of the largest…
Miami Developer Harvey Hernandez’s firm alleges RealPage stole trade secrets, poached employees
Fresh off of a settlement with Airbnb, Miami real estate developer Harvey Hernandez’s NGD Homesharing is suing RealPage, alleging the popular property management software company stole trade secrets and employees from Hernandez’s firm. NGD Homesharing is suing RealPage, an affiliate and three of Hernandez’s employees for allegedly misappropriating…
Taubman claims Simon scuttled $3.6 billion merger due to buyer’s remorse
Simon Property Group called off its $3.6 billion merger with Taubman Centers due to a classic case of buyer’s remorse, the spurned seller claims. Taubman submitted a new legal filing in the mall landlords’ court battle that claims the larger rival Simon tried to renegotiate the terms of their deal once the coronavirus pandemic hit, Bloomberg reported. Simon had…
Brian Kingston on Brookfield’s long game
It’s been an especially busy few months for Canadian investment giant Brookfield, which is upping its bets on everything from struggling chain stores to distressed real estate. Brian Kingston, CEO of Brookfield Property Partners, spoke to The Real Deal in June about the company’s rent negotiations with mall tenants, its plans to launch a $5 billion retail…
US hotel occupancy surpasses 40%. And prices are rising
National hotel occupancy crept back up above the 40 percent mark last week as leisure travelers continued to head to tourism spots in states that are reopening. Occupancy hit 41.7 percent for the week ending June 13, according to STR. With more people staying in hotels in these tourist destinations, operators are beginning to feel confident they can start…
Crescent Heights hits a snag with plan to develop high-rise Edgewater project
A city of Miami board narrowly rejected Crescent Heights’ application to close 10-foot-wide alleyways for a future 3-acre development site in Edgewater. Though rejected by the city’s Planning Zoning & Appeals Board during a virtual meeting held Wednesday evening, the decision to close the alleyways will ultimately be up to the Miami City Commission. The…
HTG scores financing for Hollywood affordable housing project
Housing Trust Group secured the financing for an affordable housing development in Hollywood. HTG also broke ground on Hudson Village, an eight-story, 96-unit project planned for 901 South Federal Highway. It will have both affordable and workforce housing apartments. HTG expects to complete the building by August 2021. The Miami-based developer…
The Executive Committee guides the Miami DDA’s efforts to fulfill its mission to grow, strengthen, and promote the economic health and vitality of Downtown Miami, which of course benefits area commercial real estate investors. This is a video recording of its Executive Committee virtual meeting held on June 18, 2020.
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In this two part video series, CCIM Chief Economist K.C. Conway, CCIM, MAI, CRE, joins the host of America’s Commercial Real Estate Show to discuss what to expect move forward. Among the discussions expectations for jobs, property values, and economic recovery timing. He notes he is particularly concerned about leisure and travel, which he notes is 10% of global GDP, believing there is more pain in this sector to come. He believes unemployment will remain at 10.5% in the first half of next year as structural damage hinders a full recovery to pre-coronavirus levels.
Triple Five “inching closer” to construction on American Dream Miami
Triple Five Group is still planning to move forward with its American Dream mega mall in Miami-Dade, even as the Canadian development group is staring down billions of dollars of debt payments for its other malls. Triple Five, led by the Ghermezian family, completed a land swap with the Graham Companies for 40 acres near the site of the American Dream Mall…
Wells Fargo says mismanagement by Southland Mall owner contributed to downfall
As it moves ahead with its foreclosure lawsuit against the owner of Southland Mall, Wells Fargo is now alleging the company had for years been mismanaging the struggling retail center in Cutler Bay. In a recent filing related to the foreclosure suit, the bank says the owner owes over $160,000 in code violations and citations to Cutler Bay and Miami-Dade…
Miami Herald To Move Out Of Doral Location
The Miami Herald has decided to move out of their Doral offices in August. In a letter to their readers, they state that the current pandemic has accelerated the organization’s ability to work remotely. The paper went on to say that they are investing in people over place to ensure their coverage remains the same. Employees will remain working from home through…
Baywood scores $31M loan to build hotel near Miami International Airport
Baywood Hotels scored a $31.3 million construction loan for the site of a building shell that has sat empty near Miami International Airport for years. Two companies tied to Columbia, Maryland-based Baywood secured the loan from Banesco USA to build a 218-room hotel at 1101 Northwest 57th Avenue, records show. Baywood secured a notice of commencement…
Pandemic transportation changes could become permanent
Miami-Dade’s transportation picture has been in flux since the onset of the coronavirus pandemic, and many changes – including new safety strictures, increased telecommuting and a rise in non-motorized mobility – could prove permanent, experts say. “This is a lifetime event that’s really going to change a lot of things, including transportation, how people work and…
Swire Properties to Welcome Five Retailers to Brickell City Centre in Miami
Hong Kong-based Swire Properties, along with co-developers Whitman Family Development and Simon Property Group, has announced that five retailers are joining the tenant lineup at Brickell City Centre in Miami. Marabu, which recently opened its doors, is a Cuban-inspired restaurant headed by Cuban-American chef Alberto Cabrera. Opening in July are…
PortMiami, cruise lines huddle as new sailings near
All eyes at the “Cruise Capital of the World” are on July 24, when cruise lines could again begin operations following a 100-day no-sail order from the Centers for Disease Control and Prevention (CDC). In the meantime, PortMiami Director Juan Kuryla said Tuesday, the port is continuing talks with its industry partners to ensure that once that date – or any new one…
As freight demand grows, truck parking shortage serious
Around this time last year, when Amazon outpaced Walmart as the world’s largest retailer on Forbes’ annual Global 2000 list, it marked a sea change in commerce. For the first time in human history, a retail company that – aside from its Whole Foods supermarket chains – only sells its products online topped every brick-and-mortar seller on the planet. Now in the wake of…
Inside the “legacy” hotel assets Colony Capital is pivoting away from
Thomas Barrack and (from top) Sheraton San Jose Hotel in Milpitas, CA; The Westin Governor Morris in Morristown, NJ; Four Points by Sheraton Destin in Fort Walton Beach, FL (Barrack by Jared Siskin/Patrick McMullan via Getty, Google Maps, Westin, Marriott) Tom Barrack’s Colony Capital has spent the last several years pivoting away from “legacy” real estate assets…
Berkadia Arranges $97M Construction Loan for Apartment Complex in Sunny Isles Beach
Berkadia has arranged a $97 million construction loan for Las Marinas Apartments, a planned two-building, 256-unit complex in Sunny Isles Beach. An undisclosed life insurance company provided the 15-year, fixed-rate loan with five years of interest-only payments. Each building will stand 17 stories and offer 128 units. The borrower and developer, The Brunetti…
New York Life Provides $97M Construction Loan on Miami Resi Towers
New York Life has provided $97 million in construction financing to The Brunetti Organization to help facilitate the firm’s development of a planned, two-building multifamily project outside of Miami called Las Marinas Apartments, according to information from real estate firm Berkadia, which arranged the financing. The 15-year, permanent construction loan…
Developer Lissette Calderon Makes Moves In Allapattah
Just two weeks ago, Miami developer Lissette Calderon was topping off a building in Allapattah. This week, she’s announcing a new one. On the heels of topping off a 192-unit project called No. 17 Residences, and being in the permitting process for a 323-unit project called Allapattah 16, Calderon has acquired a development site at 1470 Northwest 36th Street, where she…
The Fed on the Impact of its Response to COVID-19 So Far
As part of the measures undertaken to alleviate the economic impact of the COVID-19 pandemic, the Federal Reserve lowered its policy rate back to zero and opened a series of credit facilities designed to support the functioning of financial markets.1 In addition, the Fed announced actions aimed at relieving cash-flow stress for small and medium-sized businesses…
Quest for an airport convention hotel should go on standby
Miami-Dade commissioners who rushed to quickly cut a deal for a new Miami International Airport convention center hotel should have listened to Mayor Carlos Giménez, who assessed today’s world and counseled a go-slow approach. After seven commissioners had urged a highly expedited selection of a hotel developer on airport land, the mayor said this isn’t…
Alternative Lenders On Bank Slowdown: ‘This Is Our Super Bowl’
Bank lending to commercial real estate is still moving at a snail’s pace, so, it will fall to private lenders to come up with creative financing solutions as the coronavirus continues to wreak havoc on the economy. “Banks are not known to innovate, that’s not what they do,” Dan Palmier, the founder and CEO of Boston-based alternative lender UC Funds, said on a Bisnow…
Buyer’s Remorse or Force Majeure? Contract Amended Mid-Pandemic Leads to Lawsuit in Miami-Dade
Can a party to a contract invoke force majeure forgiveness if the COVID-19 outbreak had already started when they signed on the dotted line? A Miami-Dade lawsuit seeks to find out. David B. Rosemberg of Rosemberg Law in Aventura represents real estate holdings company Trumpeter International LLC, which sued after its deal with Spanish citizen Anastasio…
Beckham soccer stadium complex developers propose major rezoning
The developers of Miami Freedom Park, a proposed $1 billion mixed-use project anchored by a soccer complex, submitted a Special Area Plan for the Melreese site. Miami Freedom Park, a group that’s led by managing owner Jorge Mas and includes soccer superstar David Beckham, submitted the SAP along with the city of Miami, which owns the Melreese Country Club…
How One South Florida Real Estate Company Has Been Helping Tenants Through the Shutdown
Philip Leitman, General Manager of Suchman Retail Group (SRG), realized at the beginning of March that COVID-19 was a significant risk to health, the community, and business. Meeting with staff, he said, “This is coming, we need to be prepared. We need to be proactive to help our tenants and all staff need to be safe. Personal health comes first.” Suchman Group began…
Brunetti scores $97M loan for apartment towers in Sunny Isles
Las Marinas Apartments A company tied to the Brunetti Organization scored a $97 million construction-to-permanent loan for two new apartment towers in Sunny Isles Beach. Brunetti Organization, led by John Brunetti Jr., secured the loan from the New York Life Insurance Company to build Las Marinas Apartments, two 17-story, 128-unit towers, according…
Knotel lost $223M before the pandemic struck
Flexible-office provider Knotel lost $223 million last year — even before coronavirus flipped the office market on its head. Company financials, obtained by Business Insider, reveal the startup lost $49 million during the first quarter, ending the period with $36 million in cash on hand. At the time, it reported total assets of $110 million, less than half its total…
The pandemic has brought a silver lining for Lennar
Stuart Miller Lennar Corp., seen as a bellwether for the U.S. housing market, is actually seeing some benefits from the pandemic. The Miami-based homebuilder’s executive chairman Stuart Miller said on its earnings call on Tuesday some buyers from the urban core are seeking out Lennar’s suburban homes. During a conversation with Lennar’s Southeast Florida…
U.S. retail sales follow largest drop on record with largest increase
A month after recording the worst single-month drop on record in April, retail sales in the U.S. rose by a record 17.7 percent in May. (iStock) A month after recording the worst single-month drop on record in April, retail sales in the U.S. rose by a record 17.7 percent in May, according to statistics released Tuesday by the Department of Commerce. The total value of…
The pandemic killed the sale of Rail 71. It’s back on the market for $32M
Rail 71, Tony Arellano and Devlin Marinoff After a deal to sell the Rail 71 property in Miami’s Little River fell through due to the pandemic, owner Morgan Reed Group is looking for a new buyer. Brokers Tony Arellano and Devlin Marinoff of Dwntwn Realty Advisors are relisting the office and retail development at 7205 Northeast Fourth Avenue for $32 million…
Simon, Brookfield and Authentic Brands in talks to buy J.C. Penney
Authentic Brands Group CEO Jamie Salter, Simon Property Group CEO David Simon, J.C. Penney CEO Jill Soltau and Brookfield Property Partners CEO Brian Kingston (Getty) J.C. Penney could be the next bankrupt retailer to get scooped up by Authentic Brands Group and the country’s largest mall owners. The brand management company, along with Simon Property…
Does COVID-19 Provide an Excuse for Non-Performance of a Contract?
The question of almost every party to a contract that remains to be fully performed is whether Covid-19 is an act of God that will excuse performance by the party who has yet to complete performance. The starting point in any such inquiry is the written agreement between the parties—assuming there is a written agreement. If there is no written…
Legal Marijuana Poses Policy Questions for States
In recent years, more states have legalized marijuana for medical or recreational use. This raises economic questions for policymakers as they decide how to regulate cannabis, according to a recent article in the Regional Economist. Regional Economist Charles S. Gascon examined how states treat legal marijuana differently and whether states’ policies are…
Another one bites the dust: 24 Hour Fitness files for bankruptcy
The national gym chain 24 Hour Fitness has become the latest company to file for bankruptcy in the wake of the coronavirus pandemic. The firm said in its filing that it has landed $250 million to help reopen some of its locations and expects most to be open by the end of June, according to CNN. However, it will reopen as a smaller chain after permanently closing 100…
Miami Beach parking lot mogul Mirmelli sells retail center in Lauderhill for $13M
Miami Beach parking lot owner Andrew Mirmelli sold a retail center in Lauderhill for $12.75 million, a year after buying it. Mirmelli and Miami Beach attorney Mark Alhadeff sold the 143,430-square-foot Promenade at Inverrary at 4402-4678 North University Drive for $88 per square foot, records show. A company tied to Hollywood, Florida-based Current…
Hotels are reopening. Will anyone come?
Hotels across the country are starting to reopen for business, but guests who show up will face a very different environment. General managers need to persuade guests that they will be safe staying at their hotels thanks to measures like social-distancing guidelines, checking employees’ temperatures and more intense cleanings, according to the Wall Street…
Books & Books closes its chapter on Lincoln Road
Books & Books, Miami’s most well-known independent bookstore, closed its Lincoln Road store for good after more than 30 years on the iconic Miami Beach street. Books & Books owner Mitchell Kaplan confirmed to The Real Deal that the store at 927 Lincoln Road is not reopening. “It’s been really a wonderful 30 years of being there, having this kind of front row seat there…
Coral Gables apartment building sells for $11 million
A Coral Gables apartment building that is still under construction sold for $11.1 million. Adar Galiano 1091 LLC, tied to Jonatan Sredni of Aventura, bought the property at 1091 Galiano Street for $11.1 million, according to a press release. 1091 Galiano Investments LLC, led by Daniela Carozzi, sold it. The property totals 18,710 square feet…
Is Brooks Brothers the next retail bankruptcy?
Brooks Brothers might be the next major retailer to go through bankruptcy. Authentic Brands Group and Simon Property Group are in talks to buy the chain if it files for Chapter 11, according to Bloomberg. Simon, the biggest mall landlord in the country, has a strong interest in keeping its major tenants alive, while Authentic has a history of buying established brands…
Apeiron at the Jockey Club developer wins key ruling from appeals court
The Apeiron at the Jockey Club developer appears to have snuffed out a long-running fight with two property owners’ associations that sought to stop the 120-unit tower in North Miami-Dade from being built. The Third District Court of Appeals earlier this month dismissed a petition by the Jockey Club I and Jockey Club II associations, which represents unit…
The Prospects For CRE In a COVID-19 World
How will recovery look, and when will it happen? It’s interesting to look back at the early predictions on how COVID-19 would impact the CRE industry. Many analysts, either hopeful or looking at something unprecedented, only offered confident short-term calculations. The post The Prospects For CRE In a COVID-19 World appeared first on…
Starbucks puts the lid on 400 stores
Starbucks will shutter 400 stores across the country as it transitions to to-go orders while adjusting to the coronavirus pandemic. The closures were disclosed in a Securities and Exchange Commission filing. It was not clear which of the java giant’s locations will close, but Commercial Observer reported that some New York City locations are being considered. In April…
Lender files to foreclose on new South Beach Variety hotel
A lender filed a foreclosure lawsuit on a hotel in South Beach, in a possible sign of things to come. A company tied to BridgeInvest sued the owner of the 70-key Variety Hotel, which is yet to open at 1700 Alton Road in Miami Beach. The suit alleges the hotel owner failed to make payments on a $25 million loan since April. BridgeInvest alleges the loan is in default and is…
Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit
Miami Beach real estate investor Sam Herzberg wants to kick out two national retailers from the Sterling Building on Lincoln Road. The historic property’s owner recently filed eviction lawsuits in Miami-Dade Circuit Court against Diesel USA and Perry Ellis for failing to pay rent in April and May. Herzberg joins developer Jeff Berkowitz as the latest South Florida…
Bank OZK still making condo construction loans despite pandemic
Bank OZK CEO George Gleason had some things to get off his chest. First, one of the most active condo construction lenders in Miami, New York and Los Angeles is still writing loans despite the pandemic, he said. Second, Gleason maintains the bank only originates low leverage loans to the best sponsors, and to borrowers whose projects are in growing markets.
ICSC’s layoffs paint dark picture for retailers it represents
Retailers were already suffering in the hands of the coronavirus pandemic. Now, even their trade association is struggling. The International Council of Shopping Centers is laying off 65 employees today, according to a filing with the New York Department of Labor. The group checked the “unforeseeable business circumstances prompted by Covid-19” box that so many…
Czech billionaire cashes Macy’s shares after less than a month
Daniel Kretinsky was in it for a good time not a long time. After the Czech billionaire’s firm purchased a 5 percent stake in Macy’s last month, the company said this week that its stake was down to 0.7 percent. The exit was lucrative, according to Bloomberg, which reports that Kretinsky made some $36 million. Vesa Equity Investment’s bet on Macy’s aligned with a 65…
Simon and Taubman gear up for legal throwdown
Nearly two decades ago, the Taubman family ferociously fended off a hostile takeover of their mall company from Simon Property Group. Now the roles are reversed: The Taubmans are gearing up to force Simon to complete the $3.6 billion acquisition it abandoned. Hours after Simon announced it had scuttled the deal Wednesday, Michigan-based Taubman…
These 25,000 retail dinosaurs will meet the meteor this year
As many as 25,000 retail stores may close this year due to the coronavirus pandemic, with a majority closing in shopping malls, further hastening the industry’s decline. That number would dwarf the prior record of 9,800 retail closures set in 2019, according to a new report from the retail data firm Coresight Research. First issued in March, the report estimated that…
Brookfield pays $27 million for Medley warehouses
Brookfield Property Partners is increasing its presence in South Florida’s booming industrial market. The real estate arm of the Toronto-based asset manager purchased two industrial warehouses at 10800 Northwest 92nd Terrace in Medley for $26.9 million, records show. Oviedo, Florida-based A. Duda & Sons sold the warehouses. The property includes three separate…
Marginal gain in hotel occupancy as unrest hit some cities
Demand for hotel rooms continued to rise in many markets across the country last week. The civil unrest of the last two weeks may have dampened demand in some cities. (iStock) U.S. hotels last week continued their slow recovery from the depths of the coronavirus pandemic. National occupancy crept up to 36.4 percent from 35.3 percent the week prior….
Urbanica scores approval for new hotel in North Beach
Urbanica Management has the green light to build a new hotel on one of the last vacant oceanfront parcels in Miami Beach. The Miami Beach Historic Preservation Board on Tuesday unanimously approved Urbanica Management’s plans to construct an 11-story, 209-room hotel with a 104-seat restaurant and a 91-space garage at 6747 Collins Avenue. The future…
Macy’s CEO says sales down 50%, less than expected, as stores reopen
As Macy’s reopens its stores, sales are down 50 percent — better than the retailer’s grim expectations of an 85 percent decline. So CEO Jeff Gennette is calling it a win. Gennette said during a virtual conference Tuesday that Macy’s sales since beginning to open stores indicate that the steep decline in retail sales is only temporary, the Wall Street Journal reported. “The lure…”
AMC may close some theaters in an effort to stay in business
AMC is pressed to get eyes back in front of their screens starting in July — but not without some cuts ahead. (Getty) AMC is pressed to get eyes back in front of their screens — but not without some cuts ahead. The world’s largest movie theater chain recently announced that it was facing billions of dollars in losses and was concerned about the company’s ability to…
CC Residential scores $30M loan for “active adult” rentals in Cooper City
CC Residential scored a $30.8 million construction loan to begin construction of an “active adult” rental community in Cooper City. CC Residential, led by longtime South Florida developers Armando Codina and James Carr, is planning to build the 175-unit development on Monterra Boulevard in central Broward County. The group secured the loan from…
Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Billionaire developer Vladislav Doronin assembled and closed on three blocks of land in Fort Lauderdale for nearly $63 million, marking his first plan to develop in Broward County. Doronin’s OKO Group, through a land trust, closed on 6.7 acres south of the New River and Las Olas Boulevard, an area that has attracted a group of developers, property records show.
Simon Property Group axes $3.6 billion Taubman Centers acquisition
In the latest mega deal to fall apart due to the coronavirus, mall operator Simon Property Group is axing its $3.6 billion deal to buy Taubman Centers. Simon executives on Wednesday said Taubman breached the contract by failing to take measures to mitigate the impact of the pandemic. “The merger agreement specifically gave Simon the right to terminate the…”
Altman scores $55M construction loan for Ludlam Trail project
The Altman Companies closed on a $55.4 million construction loan for a Ludlam Trail apartment project. Altman Companies secured the loan from Comerica Bank and IberiaBank to build the 312-unit apartment complex at 7004 Bird Road near the Ludlam Trail Corridor District, according to a press release. The six-story building will be on about 2.74 acres of land.
Bids final step to raise Tamiami Trail, flow water to Everglades
Contractors have until the beginning of next month to bid on a project to raise a 6.5-mile segment of the Tamiami Trail, the final step in infrastructure to increase the flow of fresh water to the Everglades and Florida Bay. “The deadline for bids is early July,” said Alecia Collins, deputy communications director for the Florida Department of Transportation…
Enterprise Florida grants spur trade shows, business matchmaking
Enterprise Florida Inc., the state’s economic development arm, has continued to support Florida’s small and mid-sized businesses throughout the pandemic by introducing two new grant programs and maintaining existing initiatives such as offering certificates of free trade and website customization services. Manny Mencia, the senior vice president of the…
Downtown Miami filled with cautious optimism as recovery begins
Downtown Miami has not been Teflon during Covid-19. Still, there is cautious optimism the urban core could be seeing a return to normal, and some economic development opportunities could emerge from the pandemic. The City of Miami has begun its reopening, and by extension, downtown Miami is starting to liven up again. Shopping hubs like…
Christina Crespi: Leading Downtown Development Authority into recovery
Since she came back home from college, Christina Crespi has been involved in government. A Miami Beach native, her fondness for Miami Beach’s parks and recreation led her to her hometown city’s government, where she worked as a case worker in homeless services. Her boss at the time then recommended she apply for a former county management training…
Landlords sue Big Retail as missed rent payments pile up
A growing number of retail landlords are suing to get unpaid rent from “credit tenants” like H&M, Urban Outfitters, and Gap that have been battered by the coronavirus. (Getty) Before the coronavirus, retailers like H&M and Urban Outfitters were the kinds of companies that landlords targeted. Owners laid out pricey incentive packages and heavily courted…
Retailers take stock of insurance coverage after looting
Looting and vandalism in cities across the country, which arose alongside peaceful protests for racial justice, have posed another setback for retailers already struggling with the fallout of the coronavirus pandemic. But damages from civil unrest may prove more manageable than the unprecedented public health crisis in one respect: insurance coverage.
The chart above shows the number of commercial property sales in Miami-Dade county, frequently considered as the general Miami, Florida metro area, for both improved and vacant land that were recorded in the Miami Realtors MLS from January 2018 to May 2020. Though MLS only picks up a portion of commercial property sales, and thus is not fully representative…
Chart: Miami Commercial Real Estate Sales to List Price Ratio Continues to Hold Up in May ~ MLS
Miami Association of Realtors January 2015 to May 2020 Property Types Land-Commercial/Business/Agricultural/Industrial, Commercial/Industrial Miami-Dade County Calculated from 8,338 commercial proeprty listings Last month we noted that though one month does not say much it was worth noting that commercial properties traded at a somewhat normal…
Dezer’s plans to remake Intracoastal Mall face opposition
Dezer Development’s plans to transform Intracoastal Mall in North Miami Beach into a high-rise, mixed-use project are facing opposition. The North Miami Beach Planning & Zoning Board on Monday delayed its review of the developer’s plans to turn Intracoastal Mall into a 2.8 million-square-foot project with retail, office, residential and hotel until at least July 13.
Trends That Will Redefine Industrial Architecture, Design
Distribution centers are among the fastest-growing class in the industrial sector, particularly due to e-commerce irreversibly impacting the way people shop. The coronavirus crisis, coupled with consumer preference and demand for high-speed shipping service, has boosted demand for last-mile delivery. As a result, design flexibility has become of paramount…
Easton Group to Develop 266,000 SF Warehouse in Hialeah Gardens
Easton Group will develop a 266,000-square-foot warehouse in Hialeah Gardens near Miami. An affiliate of Easton acquired an 8.5-acre site for $8.2 million. In September, a different Easton affiliate bought an adjacent 8.5-acre site for $5.6 million. Easton will develop the 266,000-square-foot property across the entire 17-acre site, which is located on NW 107th…
Nearly 80% of renters have made payments in June: report
One survey of 11.5 million apartments shows that 80 percent of renters paid at least some rent in June. (iStock) Rent collections continue to appear stronger than initially expected despite financial stress brought on by the coronavirus. Roughly 80 percent of residential tenants paid at least some rent during the first week of June. That’s a slight increase from rent…
Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay
Even as malls reopened in South Florida, those that are struggling could wind up under new ownership in coming months. Wells Fargo, representing a trust of commercial mortgage backed securities investors, filed a foreclosure lawsuit against the owner of Southland Mall in Cutler Bay at 20505 S Dixie Highway, claiming the borrower is in default on…
Amazon to open store on Lincoln Road
Amazon will open a store on Lincoln Road, as brick-and-mortar retailers nationwide struggle to pay rent during the pandemic. Amazon is leasing 5,000 square feet at 700 Lincoln Road in Miami Beach for a 4-Star location, which means it will sell products rated four stars and above by Amazon customers, as well as new and trending products, according to a…
Small investors swarm crowdfunding real estate deals
While the amount of crowdfunded real estate deals on offer has declined substantially in recent months, demand is strong for those investment opportunities that remain, such as the Renaissance Harborplace Hotel in Baltimore (iStock, Google Maps) It’s not just large investment funds that are seeking out buying opportunities during the coronavirus crisis.
Men’s Wearhouse parent company considering bankruptcy
Men’s Wearhouse and Jos. A. Bank may soon join the growing list of retailers that have declared bankruptcy in recent months. Tailored Brands, the retailers’ Houston-based parent company, has been reaching out to interested parties in an effort to restructure more than $1 billion in debt, according to Bloomberg. The plans are still in the early stages and the…
South Florida Retail Summary: Leases, Sales & Construction Projects
Market Snapshot for South Florida Retail A summary of the highlights, trends, and current market activity for South Florida commercial real estate focusing on Miami-Dade County: Analysis derived and compiled from leasing data and transaction reports in order to better understand the overall health of the CRE market in Miami-Dade County.
Mall Of America Owner, Developer of American Dream Miami, Staring Down Billions In Debt
Triple Five Group, the developer of the Mall of America outside Minneapolis and the American Dream mall in New Jersey, with another one planned for Miami, is facing acute financial troubles because of the coronavirus. Wikimedia Commons/Brad Miller The American Dream mall, when it was under construction, at the Meadowlands in New Jersey…
“This is a tsunami”: These big retailers stiffed their landlords in May
About 40 percent of national retail chains once again skimped on their rent in May, according to the latest monthly report on collection rates. Among those are 24 Hour Fitness, AMC Theaters and Pier One, all of which have either announced potential bankruptcy or plans to liquidate assets. Overall, national retailers paid 60.1 percent of rent, a small increase from April’s…
Domestic travel gives Airbnb a boost
The travel industry is beginning to show signs of life again, with city residents heading to nearby vacation rentals in droves. Airbnb saw more nights booked for its U.S. listings between May 17 and June 3 than it did during the same period a year ago, according to Bloomberg. Similarly, Germany, Portugal, South Korea and New Zealand are also seeing a surge…
Steve Madden vacates Lincoln Road lease
Miami Beach’s Lincoln Road could be in for a rough time as coronavirus hits the retail industry particularly hard. Steve Madden vacated its lease at 663 Lincoln Road, according to the data provider Trepp. The shoe retailer notified the property owner, Thor Equities, that it would not be renewing its 2,269-square-foot lease on April 30. The space accounted for 45…
Miami After 90 Days Of Coronavirus: ‘The Distress Is Definitely Coming’
Three months ago Friday, Miami-Dade Mayor Carlos Giménez issued an executive order declaring a state of emergency due to the coronavirus. Shutdowns of restaurants, hotels, beaches, trains and parks all followed. David Beckham’s brand-new soccer team, InterMiami, stopped playing after just its second match. Richard Branson’s Virgin Cruises, which was about…
Long-Dreamed Train To Miami Beach Could Be A Monorail
For decades, Miami officials have tangled over whether and how to connect downtown Miami, which is on the mainland, with Miami Beach, which is on a barrier island on the other side of Biscayne Bay, via mass transit. Courtesy of Meridiam A monorail is proposed to connect Downtown Miami and Miami Beach. In recent years, officials have decided that the route should…
Alta Developers CEO Raimundo Onetto and Le Parc at Brickell rendering Three years after turning over Le Parc at Brickell to its condo association, the developer still hasn’t fixed a litany of design and construction defects at the mid-rise luxury tower, according to a recently filed lawsuit. The condo association sued Parc Brickell One, a joint venture between Alta…
State opens applications for hemp industry
State regulators on April 27 opened the door for applications to cultivate hemp in Florida. Hemp cultivation was enabled by federal legislation in 2018 and a state bill authorized pilot projects in 2017. The Florida Department of Agriculture and Consumer Services has been creating rules and regulations for growers. The University of Florida and Florida…
Coral Gables approves Belmont, Baptist Health senior living project
Belmont Village Senior Living and Baptist Health South Florida have received unanimous approval from the Coral Gables City Commission to build Belmont Village Coral Gables, a premier mixed-use senior living community. Belmont Village Coral Gables will offer residents luxury senior living, wellness, and first-class elder care within an urban, amenity…
Assignment for benefit of creditors provides bankruptcy alternative
The COVID-19 pandemic has not only taken its toll on human lives, but also on our local and national economies. Thousands of businesses are facing a severe cash crunch and doing what they can to keep their doors open by applying for relief loans, tapping into credit lines or borrowing from friends to stay afloat, reducing staff and cutting expenses. The unpleasant…
Opportunity Zones investors get a Covid-19 lifeline
Opportunity Zone investors received an extension from federal government because of Covid-19 The federal government has extended the deadline for Opportunity Zone investors and developers to deploy capital and begin construction on projects, citing the pandemic as the reason. The rules had required that twice a year the government check to ensure Opportunity…
Seritage terminates leases on most of its Sears, Kmart locations
The real estate company that Sears spun off five years ago to shore up cash is cutting ties with most of the struggling retailer’s remaining stores. Seritage Growth Properties is terminating the master lease covering 12 of the remaining Sears and Kmart stores in its portfolio, the company announced Thursday. The real estate investment trust will collect a $5.3 million termination fee from Sears’ parent company, Transformco, as…
The Fed: How fast can the U.S. economy recover? V-shape vs. “swoosh”
How fast can the economy recover from a recession? A faster recovery would look like a V-shaped bounce. A slower recovery would look like a “swoosh.” The path depends on the economic sectors and time series data you look at. Here are some FRED Blog examples that study past episodes. Slow recoveries: Mortgage, credit card, and commercial real estate…
The Future Of Office Space ‘Will Be Different On The Other Side’ Of The Coronavirus Pandemic
Are you working from home during the coronavirus pandemic? Pretty soon, “working from home” could become simply “working”. That’s because the future of the traditional office space is evolving as many companies begin to rethink what their offices will look like upon reopening. The ‘new normal’ for companies may be downsizing office size and office…
Remy Jacobson allegedly in default on Design District loan: lawsuit
Cryptocurrency enthusiasts Remy Jacobson and his brother Jean-Marc Jacobson turned to an Arkansas community bank last year to finance the redevelopment of a historic building in the Miami Design District. But now, the Jacobsons are facing a lawsuit from Conway, Arkansas-based Centennial Bank, alleging that Remy Jacobson, Vanessa Jacobson and Jean-Marc…
Short-term rentals, gyms, fitness studios can operate again in Miami-Dade
First came hotels reopening. Now, short-term rentals can again operate in Miami-Dade County, effective immediately, and in Broward County. In Miami-Dade, gyms, fitness studios, and summer camps can also reopen beginning June 8, according to Mayor Carlos Gimenez. Florida’s Department of Business & Professional Regulation approved Miami-Dade and…
Simon Property Group sues Gap for $66M in unpaid rent
David Simon with the Roosevelt Field Mall in New York, and the University Park Mall in Indiana, The gloves are off between the biggest mall operator in the country and one of its most important tenants. Simon Property Group is suing Gap Inc. for its alleged “failure to pay more than $65.9 million in rent and other charges due,” according to a lawsuit filed Tuesday that…
The Marriage Between CRE & Infrastructure
A rocky road means a rocky relationship It’s time to take a break from COVID-19—somewhat of a break, that is. When the lockdowns started in March, area roadways were mostly absent of traffic. The post The Marriage Between CRE & Infrastructure appeared first on Commercial Real Estate South Florida….
Construction starts in SoFla continue to plummet
Construction in South Florida is feeling the brunt of coronavirus. South Florida’s total construction starts fell significantly for the second straight month, dropping 33 percent in April to $684.4 million, down from $1.03 billion in April 2019, according to a report by Dodge Data & Analytics. Residential construction fell 35 percent to $390.4 million, a…
Design experts: These office solutions will slow Covid’s spread
With businesses beginning to reopen following a decline in Covid-19 cases, restrictions on the use of shared spaces will remain necessary to limit spread of the coronavirus. But they will also have to evolve as our knowledge of the virus does, design experts say. Common-sense practices and good design can help restore activity to public spaces, whether…
Developer of nixed Sunny Isles Beach project seeks return of $5M advance: lawsuit
A proposal to build Infinity, a 15-story mixed-use project on the west side of Sunny Isles Beach is dead. As a result, developer GPI Real Estate Group wants to kill a $20 million deal that has been pending since 2015 to buy the land. The developer’s affiliate, GPI Sunny Isles LLC, is suing TNG Holdings and its owner Robert Cornfeld in Miami-Dade Circuit Court to force the…
The chart above shows the number of commercial property sales in Miami-Dade county, frequently considered as the general Miami, Florida metro area, for both improved and vacant land that were recorded in the Miami Realtors MLS from January 2018 to May 2020. Though MLS only picks up a portion of commercial property sales, and thus is not fully representative, it nonetheless can be utilized to view trends, particularly where significant. In this chart, one can see that closed transactions declined by about two-thirds in April, then essentially stayed the same in May 2020, increasing ever so slightly.
This surely reflects the continuing effect of COVID-19, which was declared a pandemic on March 11, 2020. This drop in sales is not a surprise to anyone, I would think. The pandemic has had a stun gun type effect on various sectors of the economy; commercial property is no exception.
In April, I noted that the slowing might not be the worst of it given that it remained early. I commented then that anecdotally speaking general transaction related activity dropped nearly 100% for about a one month period, but seemed to be recovering as I was writing that. This leads me to a couple of might-be-light-at-the-end-of-the-tunnel observations.
Commercial property inquiries, a crude metric I personally track, but a metric nonetheless, have rebounded completely from their precipitous drop. Inquiries are not transactions, but they are the feeder for them, thus this is good. Also, a big part of the rebound may be personal, as this metric was in a strong uptrend prior to the coronavirus.
That closed sales in May did not fall further from April levels, in fact even increased, though by “hanging chad” margin (anyone in Florida in 2000 gets it), is further encouraging for anyone wanting valuations to hold up.
Finally, that the ratio of closing price to list price still has not significantly declined is also somewhat encouraging for this cause. In fact, it was down a touch versus the month of April, but remained in its range of 95-ish to 98-ish percent. A technical stock trader might look at this and say it is testing resistance at 95%. A practical person might simply expect this average to be affected by sellers that want to sell and of a sudden find their pool of buyers more limited. In any case, that it remains in a range is notable.
Last month we noted that though one month does not say much it was worth noting that commercial properties traded at a somewhat normal price in relation to listing price in the COVID-19 affected month of April. Now we have, as can be seen in the chart above, another month with this ratio holding fairly steady. It is slightly lower that the prior month, only slightly, and remains still well above lows set in prior years. Note this is for all sales in MLS entered as improved or commercial land, dubbed Commercial, Industrial or Commercial, Business, Agricultural, Industrial Land in Miami-Dade county in that system. The prior month was not isolated the Miami-Dade, thus there may be a slight difference.
Surely much of the effect of coronavirus is felt in reduced sales volume, not in sales price versus list price, thus there is only so much water to add to that proverbial half-empty/half-full glass of water. What this continues to represent, however, is that sellers are not slashing prices.
Easton Group to Develop 266,000 SF Warehouse In Hialeah Gardens
Easton Group will develop a 266,000-square-foot warehouse in Hialeah Gardens near Miami. An affiliate of Easton acquired an 8.5-acre site for $8.2 million. In September, a different Easton affiliate bought an adjacent 8.5-acre site for $5.6 million. Easton will develop the 266,000-square-foot property across the entire 17-acre site, which is located on NW 107th…
Video: Federal Reserve’s Brian Bailey Discusses Commercial Real Estate in Times of Coronavirus
In this timely video, Brian Bailey, Real Estate Subject Matter Expert at the United States Federal Reserve Bank in Atlanta, discusses his views on commercial real estate in these COVID-19 affected times. As we continue our coverage on what’s next for the real estate industry, this show is certainly enlightening. He discusses what is going on in the banking…
Is it The End for AMC Theaters?
As moviegoers continue to Netflix and chill during the pandemic, movie theaters have been dark. Now, AMC Theaters has disclosed it may have trouble staying in business, according to the New York Times, citing a recent Securities and Exchange Commission filing. AMC is the largest theater company in the world, with over 600 locations in the U.S. and 1,000 total.
Developers Gil Dezer, Jon Paul Perez: Problems Everywhere Else Will Benefit South Florida
Billionaire investor Carl Icahn just moved his office to Sunny Isles. Starwood Capital is building a new headquarters on Miami Beach. Over the past year or so, there has been something of an exodus of financial pros and hedge funders moving to South Florida. Even Barstool Sports founder and burgeoning day trader Dave Portnoy has been operating out of Fort…
WeWork rethinking one in five leases
WeWork may exit or rethink one in five of its leases as the troubled co-working firm slashes expenses and chases profitability. In a call with Citigroup analysts last month, CEO Sandeep Mathrani detailed the steps WeWork is taking to review its global portfolio, which had 828 locations as of March. According to the Financial Times, the troubled co-working firm…
US hotel occupancy climbs for the seventh-straight week
U.S. hotel fundamentals climbed for the seventh week in a row as the country comes out of the depths of the coronavirus pandemic. National occupancy for the last week of May was 36.6 percent, up from 35.4 percent the week prior, according to the latest figures from hotel data firm STR. Occupancy rates were below 30 percent for all of April. Revenue per…
A-Rod Faces Punitive Damages Over Real Estate Venture With Ex-In-Law
New York Yankees great Alex ”A-Rod” Rodriguez is facing punitive damage claims stemming from a six-year legal battle with his ex-brother-in-law over a national multifamily partnership that went awry. Constantine Scurtis claimed Rodriguez—who was married to Scurtis’ sister, Cynthia Scurtis, from 2002 to 2008—pushed him out of their real estate venture, denying…
Retail sales are bleak, unless you’re selling pot
Though many retailers saw sales nosedive through the pandemic, marijuana product sales remained steady — and even saw gains in some states. As a result, landlords of cannabis production facilities and dispensaries are outperforming the market, in spite of legislative hurdles at the federal level, the Wall Street Journal reported. Innovative Industrial…
Sapir Corp goes private as shareholders approve buyout
Sapir Corp.’s Israeli shareholders have approved Alex Sapir’s proposal to take his real estate investment firm private — at a somewhat higher price than originally planned. The deal is a victory for the company’s namesake, after his attempt three years ago failed. Holders of a little less than 10 percent of the company’s outstanding shares accepted…
5 Ways Industrial Real Estate Changed From 2010 to 2020
The start of a new decade is an excellent time to look back and reflect on how real estate markets, industries, and returns have changed over the past 10 years. Seeing what new technologies, businesses, and policies altered the market can help investors gain insight into changes that could come in 2020 and beyond. As of late, industrial real estate has been one of the top…
Construction starts in SoFla continue to plummet
Construction in South Florida is feeling the brunt of coronavirus. South Florida’s total construction starts fell significantly for the second straight month, dropping 33 percent in April to $684.4 million, down from $1.03 billion in April 2019, according to a report by Dodge Data & Analytics. Residential construction fell 35 percent to $390.4 million, a year-over…
New Miami International Airport hotel on the runway
Miami-Dade has launched a process that by November could see a deal for the first new hotel at Miami International Airport (MIA) in 60-plus years take flight, but without the mayor’s endorsement. Commissioners directed staff to start a three-month bid request process, followed by a 30-day review to conclude in September. The expedited timeline would leave the county…
Property insurance prices soaring, pandemic gets some blame
Experts say South Florida residents can expect to see an increase in prices as the market for property insurance “hardens” nationwide. A hard market, said David Josefsberg, partner with Century Risk Advisors, occurs when some insurance companies drop out of the market due to unprofitability while others increase their premiums to remain competitive. For the…
Despite virus challenge, Miami advances Allapattah project
The City of Miami’s planning and zoning department staff has adjusted to Covid-19 and not been prevented in needed reviews for the many development projects in the pipeline. A good example is the proposed mixed-use residential building planned for Allapattah to be called 2323 Apartments. The project is moving forward despite the challenges…
County urges state funding of Miami River Commission
The Miami River Commission, the clearinghouse of the 5½-mile river that winds through the City of Miami to Biscayne Bay, hasn’t received funding from the state in recent years. Because of that, Miami-Dade County commissioners passed a resolution Tuesday urging the Florida Legislature to appropriate funding for the commission. Eileen Higgins sponsored…
Ethics report should derail tainted Baylink bid negotiations
Just when our column on a Baylink railway deal went to press last week, ethics officials released a formal report that goes back two years into highly questionable ties between county officials and the rail bidders. The probe behind the scenes by the Miami-Dade Commission on Ethics and Public Trust added a new dimension that shows why the rail proposal…
All aboard? Miami-Dade to start discussions with Virgin Trains over major expansion
Miami-Dade moved forward with a proposal that could allow for a major expansion of Virgin Trains — but the funding is not yet on track. The Miami-Dade County Commission passed an amended resolution on Tuesday that gives Miami-Dade County Mayor Carlos Gimenez the authority to negotiate a proposal for the expansion and report back in 90 days. But…
Related switches gears on Terminal Island project, now plans low-rise offices
Miami’s condo king is backing away from a proposal to build a luxury condo tower on Miami Beach’s Terminal Island. Jorge Pérez’s Related Group is now proposing a 160,000-square-foot Class A office project for a site it owns on Terminal Island. The change comes a year after the Coast Guard warned that Related’s condo proposal could compromise the Coast Guard…
Florida extends freeze on evictions and foreclosures to July
Florida Gov. Ron DeSantis extended the state’s freeze on residential evictions and foreclosures until July 1. The executive order, which was set to expire June 2, was renewed Monday night by the governor. It gives homeowners and renters more time in their homes if they can’t make their mortgage or rent payments due to the pandemic, but it does not provide…
Data Security for Owners – Protecting Your Construction Investment From Catastrophic Loss
Even before the COVID-19 global pandemic, the construction industry has been “going global” using available technology and Cloud-based data storage and file sharing on all phases of projects. For example, an owner might hire a London-based architect to design a transportation hub in the United States. The London architect might delegate its Building…
Get your electrostatic disinfectant sprayers ready: Hotels begin reopening in South Florida
Ronny Finvarb, Sheldon Suga, and Phil Goldfarb Guests staying at the Fontainebleau Miami Beach will now be greeted with a new reality: Plexiglas at check-in, a temperature check, 24/7 access to a doctor, and a kit with masks, hand sanitizer and Clorox wipes. The beachfront resort, Miami-Dade’s largest, is among hotels reopening on Monday, more than two…
The Fed on What Can We Learn from the Spanish Flu Pandemic of 1918-19 for COVID-19
The COVID-19 pandemic has spurred intense efforts among researchers to estimate the likely course of the pandemic and its economic effects. Several studies have sought insights from global pandemics of the past, including the Spanish flu pandemic of 1918-19, which is thought to have infected some 500 million persons, or about one-third of the world’s population…
The Fed on Changes in Retail Sales Patterns
The FRED Blog has previously discussed the impact of social distancing on retail sales for food and beverages. In today’s post, the pie graphs break down retail sales for items other than food and beverages. The first graph shows consumer shopping habits in February 2020, before social distancing was mandated or encouraged across the U.S. At that time, the largest…
24 Hour Fitness prepares for potential bankruptcy
24 Hour Fitness is preparing for a possible bankruptcy filing even as it begins reopening locations. (Getty) Gym operator 24 Hour Fitness Worldwide planning for a potential bankruptcy even has it begins reopening its locations. The fitness company, which has more than 430 mid-tier gyms, has been talking with investors about the terms of a loan…
Retailers consider store closures as protests sweep the country
Some U.S. retailers are closing stores in anticipation of potential property damage resulting from the George Floyd protests (Getty) Some retailers, hit hard by the coronavirus pandemic, are now contending with looting and vandalism in the wake of protests sparked by the death of George Floyd. Major companies like Target, Walmart and Nike, along with small family…
The Fed on How to Achieve a V-Shaped Recovery amid the COVID-19 Pandemic
The COVID-19 pandemic could result in an economic decline that rivals the Great Depression. The Federal Reserve has already set the federal funds rate to close to zero and commenced purchasing massive amounts of securities, and the U.S. government has sent out stimulus checks and implemented emergency lending programs totaling over $2 trillion…
TPG RE Finance gets $325M infusion from Starwood
Facing a cash crunch, TPG Real Estate Finance Trust has secured a major infusion a little over two weeks after it sold off nearly $1 billion of its commercial real estate debt. The real estate investment trust announced that Starwood Capital is taking a stake in the company, providing it with up to $325 million in new capital. Greta Guggenheim, TPG RE Finance CEO…
Inside South Florida’s mall, retail and restaurant reopenings
Masks, one-way signs, spread-out open-air dining. Malls, stores and restaurants are reopening in South Florida, and changes are evident amid the pandemic. The Real Deal’s South Florida Managing Editor Ina Cordle toured the Miami Design District with Craig Robins, Bal Harbour Shops with Carolyn Travis and Aventura Mall with Jackie Soffer on Saturday, May 23.
Elvis Dumervil’s company fined in death of construction worker in North Miami
Elvis Dumervil’s real estate firm was fined by the U.S. Department of Labor’s Occupational Safety and Health Administration for failing to protect employees at a construction site in North Miami. The fines come six months after a worker fell from an aerial lift 20 feet above the ground that led to the employee’s death at 12501 Northeast 13th Avenue in November.
Le Pain Quotidien freed from 59 leases in bankruptcy
Upscale bakery chain Le Pain Quotidien will be allowed to break 59 of its leases, in a decision the judge acknowledged is “unusual.” The company filed for Chapter 11 bankruptcy protection, which allowed it to pare down debt and complete a $3 million sale to Aurify Brands pending court approval, Bloomberg reported. “The relief requested is unusual, but…”
CDC recommendations would drastically alter offices
The Centers for Disease Control released new guidelines for offices as they reopen amid the coronavirus. (Getty) Sweeping new recommendations from the nation’s health protection agency would drastically alter how people work in offices. The Centers for Disease Control and Prevention guidelines range from technical — increasing air circulation and…
Robert Finvarb, Aria Mehrabi seek approval of mixed-use projects in North Beach
Two Miami Beach developers are seeking design review approval for mixed-use projects in North Beach. Robert Finvarb will go before the Miami Beach Design Review Board at a later date for a two-phased residential and retail project on 71st and 72nd streets, Abbott Avenue and Byron Avenue. Tuesday’s meeting was canceled. The developer is seeking waivers and…
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Hypergrowth has been the mantra of flex-office-space players for years. WeWork became the largest private tenant in New York City by signing leases at an astonishing rate, and venture-backed rivals from Knotel to Industrious were similarly ravenous. But when you’re a flex-space player bankrolled by the world’s largest commercial real estate services firm…
Berkowitz sues to evict PetSmart from Dadeland Station and Aventura Commons
Jeff Berkowitz, developer of Dadeland Station and Aventura Commons PetSmart could get the heave-ho from two Miami-Dade shopping centers for allegedly owing $62,269 in rent. Berkowitz Development Group, through two related entities, filed a pair of eviction lawsuits against the national pet retailer in Miami-Dade Circuit Court last week. The Coconut Grove…
Wynwood business group supports commuter rail proposal
The Wynwood Business Improvement District is throwing its weight behind a proposal for Brightline/Virgin Trains USA to build five commuter rail stations along the Florida East Coast Railway tracks near Biscayne Boulevard. Because the Metrorail tracks curve to the northwest after leaving downtown Miami, the neighborhood has long lacked rail…
Pandemic takes a Toll: Builder’s profits drop 42%
As coronavirus battered the residential market, Toll Brothers said its second-quarter profits dropped nearly 42 percent from a year ago, to $75.7 million. The luxury home builder reported that signed contracts dipped 22 percent as buyers complied with stay-home orders. Home sale revenue was $1.52 billion, down 11 percent from $1.71 billion in the second quarter…
Not stopping for the pandemic: Fortune, Château could launch Sunny Isles project by year-end
Edgardo Defortuna and a rendering of La Playa de Varadero Developer Edgardo Defortuna could launch sales of an oceanfront project in Sunny Isles Beach by the end of 2020, despite the pandemic. Defortuna, president and CEO of Fortune International Group, is partnering with Château Group on the La Playa de Varadero condo development at 18801 Collins Avenue…
Industrious adds first female board member and eyes IPO
Flexible-office startup Industrious is moving closer to an initial public offering despite the perils of the coronavirus, which led the company to slash 20 percent of its workforce in early April. The Brooklyn-based firm has added real estate veteran Mary Hogan Preusse to its board of directors and has been interviewing investment banks ahead of a potential spring…
Prism Multifamily Group buys apartments in Tamarac, Plantation for $54M
Prism Multifamily Group, a Toronto-based firm that invests in apartment communities in the U.S., closed on two multifamily complexes in Broward County. Prism paid $53.5 million for the Hamlet Plantation apartments at 4401 Northwest 10th Court in Plantation and The Continental Apartments at 1861 Northwest 46th Avenue in Lauderhill, according to a press release.
Hotel occupancy hovers around 35% after Memorial Day boost
Hotels are slowly clawing their way back from pandemic purgatory. National occupancy rates climbed to 35.4 percent between May 17 and 23, according to weekly data released by STR. That’s up from 32.4 percent the week prior, and it marks the sixth consecutive week that rates have improved. Occupancy hit a low of roughly 21 percent in early April…
“Large pools of talent”: Mark Zuckerberg touts remote-work plan, less office space
After announcing that Facebook will move toward more working from home, Mark Zuckerberg has detailed why the plan will work in his company’s favor. “The biggest advantages I think are access to large pools of talent who don’t live around the big cities and aren’t willing to move there,” the CEO told Andrew Ross Sorkin during a segment of CNBC’s…
Barrington Brothers plans mid-rise apartment project in El Portal
Rendering of The Kavista El Portal, a village composed of mostly single-family homes north of Miami’s Upper Eastside, is opening the door to commercial development after approving a mid-rise apartment project with ground-floor workspaces near Biscayne Boulevard and Northeast 83rd Street. The village council voted last month for a development…
Charts: Commercial Property Inquiries Rebounding from COVID-19 Decline
Almost to the minute I posted about how commercial property inquiries had gone over a cliff, noting it as worthy of duh-chuckle categorization, inquiries began to rebound. This one could go in the category of “Whuuut?” As I mentioned in that prior post, if you know me, you know I’m a data hound. I collect and manipulate data, including various types…
Chart: April 1 Miami-Dade Unemployment Level Displays COVID-19 Effect
Miami-Dade County, Florida Unemployment Levels January 1, 1990 to April 1, 2020 The effects of coronavirus are clearly evident in the April unemployment rate spike in Miami-Dade as of April 1, 2020. At 11.95, the level of unemployment has yet to reach the 12.4% level reached in August 2009. Given the effects of coronavirus on commerce, however, the…
Largest Co-Living Project In The U.S. Debuts In Fort Lauderdale
Last week, move-ins began at Society Las Olas, a 34-story, 639-unit development on the Fort Lauderdale Riverfront that has taken the title of the largest co-living development in the country. Property Markets Group Brand and Marketing Director Brian Koles said 20% of its units are rent-by-the-bedroom. Koles downplayed the buzz around the word “co-living…”
In this timely video, Brian Bailey, Real Estate Subject Matter Expert at the United States Federal Reserve Bank in Atlanta, discusses his views on commercial real estate in these COVID-19 affected times. As we continue our coverage on what’s next for the real estate industry, this show is certainly enlightening. He discusses what is going on in the banking system with regard to workouts and lending, then goes on to compare this economic environment and potential of it to the recession of 2009. He talks about temporarily relaxed guidelines for troubled debt restructurings, seemingly allowing more room for restructuring loans troubled momentarily.
The effects of coronavirus are clearly evident in the April unemployment rate spike in Miami-Dade as of April 1, 2020. At 11.95, the level of unemployment has yet to reach the 12.4% level reached in August 2009. Given the effects of coronavirus on commerce, however, the May 1 numbers, once released, will surely exceed that 2009 number.
Almost to the minute I posted about how commercial property inquiries had gone over a cliff, noting it as worthy of duh-chuckle categorization, inquiries began to rebound. This one could go in the category of “Whuuut?”
As I mentioned in that prior post, if you know me, you know I’m a data hound. I collect and manipulate data, including various types of selling activity, manually logged as a matter of habit, consistently imperfect. One is commercial property inquiries. These dropped off to near zero with COVID-19, no huge surprise. What is somewhat surprising, however, is that they’ve, at least for the moment, seemingly completely rebounded. To be sure, an inquiry isn’t a transaction, but is isn’t nothing either. Thus, this development is welcome.
The chart above shows the 20-day moving average of new commercial property inquiries. This is the sum of various kinds of new inquiries, which in actuality I track more specifically. The year had started off with a bang, as can be seen, which is more a culmination of my efforts over time than a statement of market conditions. Once coronavirus hit, however, this metric went into a dive, with the 20-day average dropping to about 10% of what it was pre-COVID. Since then, however, it has recovered to about the same as the average for the prior year. Go figure.
This second chart is exactly the same data, but with 2020 plotted over 2019 to compare period versus period. The red is 2020, which one can clearly see has of a sudden exceeded levels in 2019. The year of 2020 had been considerably stronger for me in this area, thus this isn’t really a fair comparison for 2019, but with coronavirus having such a negative effect otherwise it is nonetheless a welcome sight.
What do I make of this? I’d mentioned in the prior post that it seems safe to assume there will be some post-pandemic increase in inquires. I’m reasonably certain that is not what this is. Instead, this is likely a rebound to half or so of what this would have looked like absent COVID-19. Regardless, hey, I’ll take it at this point. As this very moment, it likely doesn’t mean much. It does mean there is room for optimism. I only hope that extends to everyone and all things. Here’s hoping.
Virgin Trains seeks $350M to build five stations in Miami-Dade
Virgin Trains is proposing a major expansion of the commuter rail service, funded mostly by Miami-Dade County. Virgin Trains USA is seeking $350 million from the county to build up to five train platforms between downtown Miami and Aventura, as well as related infrastructure that would be required, according to a county memo. The proposed stations…
AJP Ventures, Mas Group to Develop 37,000 SF Medical Office Building in Miami
A joint venture between AJP Ventures and Mas Group will develop MedSquare Place, a planned 37,000-square-foot medical office building in Miami’s Westchester neighborhood. The developers plan to break ground this summer at the property, which is situated at 9101 SW 24th Street, 11 miles west of downtown Miami and five miles north of Baptist Hospital of Miami. WellMed Medical Management, a healthcare delivery company…
Tri-Rail locked out of downtown while Brightline is shut
Several steps remain before Tri-Rail can run on Brightline tracks to MiamiCentral Station downtown, which at earliest will happen next year but could take longer due to coronavirus-related complications, Tri-Rail spokesperson Victor Garcia said. Still not completed, he said, is the certification of both services’ positive train control (PTC) system, a…
Lockdown let state accelerate massive I-395 project
The dramatic drop in traffic on Miami’s streets and freeways resulting from the health crisis has allowed the state transportation department to accelerate the progress on the I-395/SR 836/I-95 Design-Build Project. Two months ago, on a directive of the governor, the Florida Department of Transportation (FDOT) announced the speeding up of several critical…
Olympia Theater program puts preservation ahead of profit
The Olympia Theater’s (future has been uncertain for some time now, with several ventures bringing forth plans for the historic building at 174 E Flagler Street – only to fall to the wayside. Now a new vision is being put forth by the Flagler District Business Improvement District (BID) and the Downtown Neighbors Alliance (DNA). And while past developers have proposed projects that focus on…
Coral Gables Art Cinema readies expansion plans
Movie theaters might not be physically open in Miami-Dade yet, but that hasn’t stopped 10-year-old Coral Gables Art Cinema from providing a plethora of virtual programming for patrons and eying an ambitious city-backed expansion that is to include adding a second auditorium. An update and discussion of the project was planned for the May 26 Coral Gables…
County climbs aboard trip toward Casinoland transit stop
When county commissioners voted 11-1 last week to evaluate and negotiate a monorail linking Miami Beach to a Miami site ticketed for a mega-casino, they wrestled with what their vote could mean to other transit plans. But other issues may be key to a deal with the sole bidder. The biggest is where funds would come from, because government would fully pay casino…
Fort Lauderdale International Boat Show has $1.3 billion economic impact
The 2019 Fort Lauderdale International Boat Show generated $1.3 billion in statewide economic output, up 51 percent from a 2015 study that found $857 million in output. Thomas J. Murray and Associates Inc. conducted the study of the world’s largest in-water boat show, which was released this week by The Marine Industries Association of South Florida, owners of…
South Florida lenders and landlords battle new coronavirus reality
As businesses shutter across South Florida and unemployment skyrockets to record highs, landlords are facing a difficult dilemma: How to offer rent deferrals to tenants and at the same time pay their mortgages? Landlord Shane Neman said he has offered deferrals to commercial tenants, but claims two of his lenders have yet to give him final guidance on whether he can modify his loans and delay his mortgage payments. “Most mortgages…”
Could Bob Zangrillo’s legal troubles imperil Magic City?
Bob Zangrillo walked out of federal court on a rainy day in Boston in late March 2019 wearing a black heavy coat, a charcoal suit and a blue tie. His face was drawn, forehead furrowed. The gloomy scene was a far cry from Zangrillo’s carefree days as a playboy in Los Angeles just a few years ago, when he roamed shirtless at Burning Man-themed birthday parties and…
Video: May 20th Miami DDA Small Businesses Getting Back to Business Webinar
The Miami Downtown Development Authority (Miami DDA) held a webinar on May 20th, 2020, entitled Small Businesses Getting Back to Business. This was a presentation a video conference to allow professionals, entrepreneurs, and area residents to come together to network and to expand their knowledge of the best #HowToDWNTWN practices from…
Facing the music: Entertainment venues, restaurants weigh reopening options
Bars, restaurants and live entertainment venues around the world are now weighing their reopening options. Some owners say they can’t cover the cost of operating at reduced capacity. (Getty) As the U.S. and countries across the globe begin easing some restrictions on nonessential businesses, bars, restaurants and live entertainment venues face tough decisions.
Miami Beach votes to reopen beach, hotels
One of the biggest tourism engines in South Florida, Miami Beach, is planning to let its beach and hotels reopen on June 1, pending county approval. The commission approved the move in a meeting on Friday morning. City officials indicated that they have been in touch with county officials and a countywide reopening of beaches and hotels is likely to…
Here’s what the office industry is up to as lockdowns lift
As lockdowns lift and the work-from-home debate ranges on, office landlords are eager to get back to leasing and building out their spaces. “We have various construction projects we want to get back to,” said Grant Greenspan, senior vice president of leasing at the Kaufman Organization. In New York, all nonessential construction work and in-person real estate…
Revenge of the hoodies: Big Tech may be breaking up with Big Office for good
On Thursday, Mark Zuckerberg took direct aim at real estate’s holiest of holies: The L word. “Over time, location will hopefully be less of a factor in how many people work,” he said in a note on Facebook, the $659 billion social media giant he built and leads. “And we’ll have the technology to feel truly present no matter where we are.” Zuckerberg was announcing the…
Mixed-use Le Jeune Road dev site heads to market for $17M
Ocean Bank is listing a 3-acre site near Le Jeune Road in Miami by its headquarters that could be developed into a mixed-use project. The bank is listing the 10-parcel site at 4238/4250/4262/4276 Northwest 7th Street for $16.5 million, according to a spokesperson for Avison Young. The Le Jeune Station site allows for eight stories and 260 residences…
Empty office buildings may give rise to other health risks
Workers abandoned their office buildings in mid-March to heed stay-at-home orders. But their absence may allow for the accumulation of other health risks. A new study, conducted by Purdue University researchers Dr. Caitlin Proctor and Dr. Andrew Whelton, argues that standing water — and bacteria — may proliferate in unused office buildings, the New York Times…
Bed Bath & Beyond to reopen 600 US stores
Bed Bath & Beyond is planning to reopen 600 stores across the country, the latest chain retailer to unlock its doors as states wind down shelter-in-place orders. The home-goods company estimates about half its stores will be open by June 13 — subject to local regulations — and it will roll out curbside delivery at an additional 600 stores. Curbside pickup will…
How the pandemic is shaking up property taxes in Miami and other major markets
With property tax deadlines quickly approaching — or having already passed — many state and local governments are in a bind. Taxes from real estate bring in huge chunks of revenue to cover essential services for municipalities, which are at a high need during the pandemic. And without that money, some cities may have to float bonds or file for bankruptcy.
Whole Foods-anchored retail in Coral Gables sells for $47M
A fund managed by Zurich Alternative Asset Management purchased the Whole Foods-anchored retail portion of a building in Coral Gables, as demand for South Florida’s grocery-anchored shopping centers continues to be strong. The Zurich-managed fund paid $46.75 million for the nearly 60,000-square-foot retail share of Plaza San Remo, The Real Deal has…
$46.8M Sale of Whole Foods-Anchored Property in Metro Miami Negotiated
JLL has negotiated the $46.8 million sale of Plaza San Remo, a 59,694-square-foot mixed-use property in Coral Gables. Whole Foods Market occupies the ground floor of the seven-story property. Built in 2007, the building was fully leased at the time of sale to tenants including Pediatric Associates and OXXO Care Cleaners and also features a seven-story…
Stephen Ross to retailers: Brace yourself for bankruptcies
Stephen Ross predicts the coronavirus pandemic will result in a “flood of cases going to the bankruptcy court.” The chairman of Related Companies appeared on CNBC’s “Squawk Box” Tuesday to discuss the impact of the virus, and said he’s especially concerned about the effect on retailers and small businesses. “Many of them probably don’t have the wherewithal,,,
Stephen Ross-owned Miami Dolphins plan drive-in theater at Hard Rock Stadium
As Miami Dolphins owner Stephen Ross forges ahead with plans to host fans for the upcoming NFL season, he’s also planning to offer open-air and drive-in theaters at Hard Rock Stadium. The drive-in theater will play Miami Dolphins footage and games, classic movies and will host commencement ceremonies and other events, all viewable from the…
CIM Group Tops Out Miami Mixed-Use Development
CIM Group has topped out Wynwood Square, its mixed-use development in Miami’s Wynwood Arts District, and is on track for completion in mid-2021. CIM is co-developing the project with One Real Estate Investment. The project, which features two eight-story towers, will have about 60,000 square feet of office space, 27,000 square feet of street-level retail and…
Facebook, Mastercard rethink office footprint
Facebook and Mastercard are the latest major employers to rethink their office needs as remote work grows in appeal. Mark Zuckerberg informed Facebook’s 45,000 workers on Thursday that the tech giant would shift toward more working from home, the Wall Street Journal reported. Over the next decade, the Facebook chief expects that nearly half of the…
HTG scores financing for senior affordable housing in Overtown
Housing Trust Group closed on financing for a senior affordable housing development in Miami’s Overtown neighborhood. HTG broke ground on the project, called Father Marquess-Barry Apartments, at 301 Northwest 17th Street. The 60-unit development is named after the late Rev. Canon Richard Marquess-Barry, the former pastor of The Historic St. Agnes Episcopal…
Housing Trust Group Breaks Ground on 60-Unit Seniors Housing Community in Downtown Miami
The Housing Trust Group (HTG) has broken ground on Father Marquess-Barry Apartments, a planned 60-unit seniors housing community in downtown Miami. The units are reserved for residents 62 years of age and older earning between 28 and 60 percent of the area median income (AMI). Rents will range from $372 to $1,200 a month for qualifying residents.
Goldman Sachs to juice cash-strapped RE owners with $3B fund
Big money will be deployed into cash-deprived real estate funds that have been hit by the coronavirus pandemic. Goldman Sachs announced it closed a $2.75 billion fund, known as Vintage Real Estate Partners II, vastly exceeding the investment firm’s $1.25 billion target. The fund will target the real estate secondaries market, such as limited partnerships and other…
At Zyscovich Architects’ headquarters in downtown Miami, returning to work will be a little different. Guided by arrows, employees and guests will enter the office one way, and exit another. Packages will be rerouted to a room on a separate floor to be unpacked and disinfected. And workers will be encouraged to eat their lunches at their desks. Like going to a…
An Industrial Developer’s Insights on the Pandemic’s Impact
Although there are some rising uncertainties, the industrial sector appears to be weathering the current crisis caused by the coronavirus outbreak better than other industries. Despite nationwide shutdowns of construction sites, warehouse developments were deemed essential in most states. In 16 of the current top 20 markets for industrial space construction, workers…
The Miami Downtown Development Authority (Miami DDA) held a webinar on May 20th, 2020, entitled Small Businesses Getting Back to Business. This was a presentation a video conference to allow professionals, entrepreneurs, and area residents to come together to network and to expand their knowledge of the best #HowToDWNTWN practices from some of the most successful business leaders and residents of Miami. The accompanying slides may be accessed at dropbox.
Miami-Dade County’s Industrial Market Sees Healthy Activity Amid COVID-19 Headwinds
The Miami-Dade industrial market saw a prolific year in 2019, followed by a healthy, yet slower first quarter in 2020. PortMiami’s record-shattering fiscal year 2019, with cargo operations posting 1.1 million twenty-foot equivalent units (TEUs) and cruise passengers totaling a world’s best 6.8 million passenger total, correlated with the robust warehouse and…
Could COVID-19 Benefit the Industrial Real Estate Market?
There is no doubt COVID-19 will negatively affect many sectors of the real estate market, but not all industries will be impacted in the same way. Industrial real estate, in particular, may actually benefit from the current crisis. CBRE Group (NYSE: CBRE) published a market update on April 8, 2020, specifically relating to the impact of COVID-19 on the industrial…
Warehouse Prices Jump 5%, Supply Expected to Exceed Demand Post-COVID-19 [Report]
The CBRE 2020 Real Estate Market Outlook Report examines the current state of U.S. commercial real estate, outlining the many possible challenges and opportunities the industry could face throughout 2020. Authored in late 2019 before the economic impacts of the COVID-19 crisis began to bite, the report predicts an increased focus on outsourcing and significant growth…
Construction industry looks for solid ground
In the best of times, construction is a complicated business. Labor problems, demanding developers, financing issues, bad weather — any number of things can disrupt a project. Now add a global pandemic, government-ordered shutdowns and a collapsing economy. In New York, the epicenter of the coronavirus pandemic in the U.S., changes to…
At Zyscovich Architects’ headquarters in downtown Miami, returning to work will be a little different. Guided by arrows, employees and guests will enter the office one way, and exit another. Packages will be rerouted to a room on a separate floor to be unpacked and disinfected. And workers will be encouraged to eat their lunches at their desks. Like going to a restaurant or entering a residential building, going to work after two months of…
Czech billionaire who bought Macy’s stake just acquired 6% of Foot Locker
Daniel Kretinsky’s shopping spree continues, this time at Foot Locker. Earlier this month, the Czech investor bought a 5-percent stake in Macy’s department store and now he’s added a 6-percent stake in Foot Locker, Bloomberg reported. Kretinsky’s bet on the shoe company is valued at about $169 million. The 44-year-old billionaire — known as the “Czech sphinx” because of his inscrutable demeanor &md…
Hotel occupancy is up for fifth week in a row
Hotel occupancy increased for the fifth week in a row, though the industry remains in a deep rut. U.S. hotels saw nearly 11 million room nights during the week ending May 16, bringing occupancy up a little more than two percentage points from 32.4 percent the week prior, according to the latest figures from hospitality data firm STR. Still, occupancy was down roughly 54 percent from the same time last year. STR senior vice president Jan Freitag called the improving weekly number…
How Blackstone plans to keep its upper hand in the downturn
Seated in the New York State Capitol’s Red Room, Gov. Andrew Cuomo introduced the team that would restart the state’s economy. He knew them well. “In some ways it’s like putting the band back together,” Cuomo said in late March, introducing Bill Mulrow, a senior executive at the Blackstone Group, and Steve Cohen, executive vic…
Major housing development on US 1 advances
The vastly changed area of Bird Road and US 1 in Miami is getting another major mixed-use residential development. Called Shoma Douglas, the multi-family rental project was reviewed May 12 during a special virtual meeting of the city’s Urban Development Review Board, with board members and city staff participating through video conferencing. The board recommended approval with a few recommendations. Masmar Investments LLC is the applicant and plans the large project on property at 3650 Bir…
Paycheck Protection Program loans require smart steps by recipients
Banks issuing loans to businesses in need of aid during the pandemic are still awaiting more details on forgiveness. In the meantime, they’re taking smart steps to make matters easy once those Paycheck Protection Program (PPP) loans come due and are encouraging borrowers to do the same. That starts with tidy bookkeeping, said Chris Cruzpino, market executive for the Miami-Dade market for Regions, who recommends borrowers maintain a thorough paper trail. “Keep detailed records on how …
SeaVee Boats build new factory at right time
SeaVee Boats’ move to a new 220,000-square-foot production hub in Medley in December is helping the custom boat maker navigate the Covid-19 crisis, says Sales and Marketing Director John Caballero. The new site, which replaces three smaller South Florida facilities that SeaVee had previously operated, was built by T.A. Builders in just under 18 months. Mr. Caballero said the new hub’s increased functionality has been essential in getting…
Alex Sapir wants to take his firm private. This could be the right time
Alex Sapir has another chance to do something he failed to pull off three years ago — seize greater control of his eponymous real estate investment firm by buying out its outstanding shares and going private. In the middle of a pandemic that has slammed stock prices on the Tel Aviv Stock Exchange, where the firm is listed, may be just the right time. An LLC controlled by Alex Sapir is offering to buy up about 5 million share…
Game point: Lacoste USA is restructuring, renegotiating retail leases
A nearly 90-year-old French sportswear label is calling the game for its American retail business. Earlier this month, Lacoste USA’s chief financial officer Karine Sansot-Vincent sent a letter to its landlords announcing that it would seek to renegotiate leases as reducing costs would be “vital” to its “ability to be a viable company in the future.” The letter, seen by The Real…
Major restaurants and cafes seek rent cuts, irking landlords
Even as the economy begins to reopen, many restaurant and cafe tenants like Chipotle and Starbucks are requesting rent reductions amid projected declines in revenue. (Photos by Roy Rochlin/Getty Images and Alex Tai/SOPA Images/LightRocket via Getty Images) As coronavirus closed stores across the country in March and April, many landlords proved willing to work with tenants and defer rent payments to a later date. Reducing rent outright, however, is another story. According to accounting rules, d…
Cast away: Pier 1 to liquidate assets, shutter business
Pier 1 Imports’ plan to sell the home decor company has turned into a plan to shut down, becoming the latest retail casualty of the coronavirus pandemic. The chain has filed a motion seeking approval from a bankruptcy court to start winding down its retail operations as soon as possible once its 540 remaining stores nationwide are allowed to reopen.
Pier 1 wants to close all its stores for good
The final nail is being driven in Pier 1’s wicker casket: It’s on the verge of completely shutting down three months after it filed for bankruptcy. Pier 1 announced Tuesday that it’s asking the bankruptcy court to cease its retail operations “as soon as reasonably possible.” It blames temporary store closures caused by coronavirus and failing to find a buyer for the drastic…
Zaragon pays $8 mil for industrial property near Hialeah
Zaragon purchased an industrial facility near Hialeah leased to RAM Steel Framing for $7.55 million, as industrial demand remains strong even during the coronavirus pandemic. The Chicago-based real estate firm bought the 105,000-square-foot industrial building at 7400 Northwest 37th Avenue in Miami for $71.90 per square foot…
Video: COVID-19 Effects on Downtown Miami Discussed in DDA Executive Committee ZOOM Meeting
In this Miami DDA Executive Committee meeting of May 15th, 2020, as one might imagine the talk is COVID-19 this and coronavirus that, and how it is expected effects on downtown Miami and the Miami DDA organization itself. The Executive Committee of the Miami DDA (Downtown Development Authority) guides the Miami DDA’s efforts to fulfill its mission to grow…
Report: Warehouse Prices Jump 5%, Supply Expected To Exceed Demand Post-COVID-19
The CBRE 2020 Real Estate Market Outlook Report examines the current state of U.S. commercial real estate, outlining the many possible challenges and opportunities the industry could face throughout 2020. Authored in late 2019 before the economic impacts of the COVID-19 crisis began to bite, the report predicts an increased focus on outsourcing and significant growth…
Reservations only: Salons, restaurants adapt to new normal in South Florida
When The Spot Barbershop restarted online reservations Friday night, more than 500 people tried to book appointments, crashing the site. The local barbershop chain with 15 locations in Miami-Dade and Broward counties is among thousands of businesses reopening their doors beginning on Monday, after being closed for roughly two months due to the…
Jeffrey Soffer’s $800M Diplomat resort purchase called off
Jeffrey Soffer’s planned purchase of Brookfield Property Partners’ 1,000-room Diplomat Beach Resort Hollywood is called off, as hoteliers nationwide reel from the impact of the coronavirus pandemic. Brookfield reported in its first quarter earnings filing that its sale agreement was “terminated by the third-party purchaser.” Soffer’s Aventura-based…
J.C. Penney to close 242 stores in bankruptcy restructuring
Department store J.C. Penney announced Monday it plans to close 242 stores across the country as part of its bankruptcy restructuring. The 118-year-old company filed for bankruptcy Friday. The stores to be closed comprise about 30 percent of J.C. Penney locations and will leave it with just over 600 stores nationwide, according to the New York Times. While the…
Mystery investor dumps big stake in real estate fund
As stocks tumbled last week, an unknown institution sold more than 10.5 million shares of an exchanged-traded fund that tracks the S&P 500’s real estate sector. The $333 million securities dump represented 7.4 percent of outstanding shares of the Real Estate Select Sector SPDR Fund, a macro indicator of the industry’s largest…
April’s 16.4% drop in retail sales is worst on record
The numbers are in for last month’s retail sales and they aren’t pretty. Despite an increase in online purchases, total sales fell 16.4 percent in April — the largest monthly drop ever recorded, the New York Times reported, citing the latest report from the U.S. Department of Commerce. The amount of money spent was the lowest it’d been since 2012, even without…
Harvey Hernandez sued over delinquent loan for downtown Miami condo project
Harvey Hernandez, Centro Condo Miami developer Harvey Hernandez is facing another lawsuit — this time alleging his company is delinquent in payments on his downtown Miami condo tower. The lender is suing Hernandez, after his company allegedly defaulted on a $2 million loan for the Centro tower. The owner of the loan is now seeking to foreclose on…
Almost 90% of renters have made payments in May: report
A new study found that almost nine in 10 households have paid at least some rent in May (Credit: iStock) Nearly 9 in 10 apartment households had paid at least some May rent as of Wednesday, according to the National Multifamily Housing Council. Through May 13, the organization said, 88 percent of the 11.4 million market-rate rental properties it tracks had…
Realterm Logistics Buys Cold Storage Warehouse in Miami
In the midst of the current pandemic, cold storage buildings totaling 157,000 square feet at 12401, 12701, 12725 NW 38 Avenue on 12.5 Acres in Opa-Locka, Florida have sold for $26,000,000. Stephen M. Greene, seller, held the single member LLCs of the parcels. The buyer was Realterm Logistics. In 1966, Don Greene and son Stephen Greene formed Don…
Notable Retail Leases Signed in South Florida Q1 2020
South Florida Retail Leases 2020: We’ve compiled a comprehensive list of the top retail leases signed by square footage in South Florida during Q1 2020. This quarter was busy overall, especially considering the current pandemic, and saw several big box leases signed and sealed. Despite the sentiment that the traditional retail market is suffering due…
Pandemic kills some retailers, but others could reboot
E-commerce has been gobbling up market share from brick-and-mortar retailers for years and the coronavirus pandemic is accelerating it. UBS estimates that 100,000 stores will close in the next five years and that e-commerce will grow to 25 percent of sales this year from 15 percent in 2019, according to the Wall Street Journal. Meanwhile, the U.S. gov…
Mast Capital wants to build a 290-foot tall Miami Beach condo tower
Mast Capital CEO Camilo Miguel Jr. wants to build a 290-foot tall condo project near the Julia Tuttle Causeway in mid-Miami Beach. And despite apprehension from some city officials, the proposal is moving forward. The Miami Beach City Commission on Wednesday agreed to transmit Mast Capital’s request for additional height and other zoning variances to…
Holding pattern: Unemployment claims dip to eight-week “low”
The number of weekly unemployment claims dipped below 3 million last week, for the first time since the beginning of the current economic crisis. Unemployment claims totaled 2.98 million last week. That’s the good news. It was the first dip below 3 million since mid-March, when claims numbered a mere 282,000 (and represented a jump at the time from…
Hotel occupancy inches up in major US cities
It may not be saying much, but hotel fundamentals are up in some major U.S. cities. Overall, hotel occupancy in the U.S. has been improving since early April and last week hit 30.1 percent, up from 28.6 percent the week prior, according to the latest data from STR. STR’s Jan Freitag said that Transportation Security Administration checkpoint counts show that…
Triarch Capital scores $35M refinancing for One Turnberry Place
9495 Biscayne Boulevard, CBRE’s Paul Ahmed and Mackenzie Fry Triarch Capital Group scored a $35 million loan to refinance One Turnberry Place in Aventura. Triarch Capital secured the loan for the office building at 19495 Biscayne Boulevard, in front of Aventura Mall from Nationwide Life Insurance, according to a spokesperson for CBRE. CBRE’s Paul Ahmed and…
Triarch Capital Lands $35M Refi for Aventura Asset
Triarch Capital Group has received $35 million in refinancing for One Turnberry Place, a 137,000-square-foot office building in Aventura, Fla. According to Yardi Matrix data, Nationwide provided the 10-year loan that retires a previous $35 million mortgage from Column Financial Bank. Triarch Capital purchased the Class A asset for $53 million in 2011.
Developer of Aman-branded towers in Miami Beach scores $35M loan
Billionaire Len Blavatnik’s Access Industries closed on a loan for the first Aman-branded development in South Florida. The developer, 3425 Collins LLC, secured $34.8 million in financing from Bank OZK for the site of the former Versailles Hotel… and fellow billionaire Vlad Doronin plan to build a two-tower hotel and branded condo project at 3425 Collins Avenue…
“Czech sphinx” makes big bet on Macy’s
Czech billionaire Daniel Kretinsky has acquired a 5-percent stake in Macy’s, with plans to work with management to turn around the struggling retailer as it prepares to reopen its stores. Kretinsky, who has a net worth of about $3.4 billion and recovered from a coronavirus infection in March, is known as “Czech sphinx” for…
Retail rent collection plunges to 58% in April
If retail landlords opened a Tenant Hall of Shame right now, they might begin by inducting Supercuts, Barnes & Noble, Red Robin, General Nutrition Centers, Gap, H&M, Foot Locker and Men’s Warehouse. Those big names were among the 21 percent of the 135 major chains paying no rent or a small fraction of it in April, according to a new report. Overall, national…
Marc Shulman sells Normandy Isles multifamily to French family office
Investor Marc Shulman sold a Miami Beach apartment building in Normandy Isles to a family office from France for $9.25 million, according to agents involved in the deal. Shulman’s Duval Apartments LLC sold the 49-unit building at 2101 Normandy Drive to Alston LLC, a company led by Riad Belarbi. The deal closed last week, said Samuel Heskiel of Beachfront…
Miami Industrial Sale-Leaseback Spearheaded
The buyer financed the purchase with a $5.7 million loan from CIBC Bank, according to public records. The note matures in 2027 and carries two one-year extension options. RAM Steel Framing will continue to occupy its headquarters on a long-term, absolute triple-net lease. Located on 3 acres at 7400 NW 37th Avenue, the single-story warehouse was completed in 1955…
Florida, Tribes Among The Latest To Get Federal OK For Hemp Production
The Miccosukee Tribe of Indians, which controls more than 270,000 acres in and around the Florida Everglades, has won a key approval from the U.S. Department of Agriculture that opens the door to hemp production on tribal lands.Hemp was traditionally used to make rope, sails, flags, oils and foods. But it is derived from cannabis, the same plant as marijuana, and…
Coral Gables developer Masoud Shojaee and daughters locked in dispute over rock mining rent
Masoud Shojaee Father’s Day could be awkward for Masoud Shojaee, as he finds himself in a legal tussle with a trust benefiting his daughters. M&M Life Insurance Trust is suing the Coral Gables-based developer over a lucrative family business that leases land in the western fringes of Miami-Dade County to rock miners and farmers, according to a recently filed…
Trust CEO: Hotel Operators Not ‘Receiving Any Income For The Remainder Of Year Of Any Kind’
Trust Hospitality CEO Richard Millard said the coronavirus has eliminated his company’s revenue. Trust operates 31 boutique hotels, and as an operator, he said 2021 might be the next time his company takes in revenue. “I don’t see most of us that operate hotels, certainly as a pure operator, are receiving any income for the remainder of the year of any kind,” he said…
Miami Commercial Real Estate Sales to List Price Ratio Holds Up in April ~ MLS Chart
Miami Association of Realtors Jan 2015 to Apr 2020 Property Types ‘Commercial, Industrial’ and ‘Land-Commercial, Business, Agricultural, Industrial’, Sales to List Price Ration Calculated from 15,543 Listings. Granted, one month does not a recession make. However it is worth noting that commercial properties traded at…
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Hawkins Commercial Realty is an entrepreneurial boutique commercial real estate brokerage helping business owners and investors in the Miami, Florida area navigate the processes of buying, selling, and leasing property, and providing M&A/business brokerage services. The company’s guiding principles are to always be responsive, to be effectively, steadily assertive, to continuously develop and utilize competency, to be sensibly creative, and to seek to add value to the process. The company was founded and is owned by a seasoned entrepreneur with more than 25 years of experience in commercial real estate as a broker or principal… (more)
James Hawkins lic. Real Estate Broker
Within these pages, you will find infomation related to Miami area commercial real estate, Miami-Dade County commercial property. Most specifically, you will find information about retail, multifamily, office, and industrial property in the Miami, Florida area. This will include information about lease rates, price trends, closed transactions, rumored transactions, economic statistics, capitalization rates, vacancy rates, rental rates, and development related to commercial real estate in the Miami area.
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