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.

Chart: Miami-Dade MLS Commercial Property Sales Nearly 3 Months into the COVID-19 Pandemic ~ Down but Not Out

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…

Le Parc at Brickell condo association sues Alta Developers and partner for alleged construction defects

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…

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…”

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…

“There’s a lot of concern about going back to an office”: how companies are returning to work in South Florida

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…

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…

“There’s a lot of concern about going back to an office”: how companies are returning to work in South Florida

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…

636-Unit Self-Storage Property in Miami Trades

JLL has arranged the sale of 21st Century Self Storage, a 636-unit facility in Miami. The 37,242-square-foot asset features climate-controlled units and 26 parking spaces. The building was originally constructed in the 1950s and was converted to self-storage in 2003. The building is located at 200 NW 79th Street eight miles north of downtown Miami. Steve Mellon…

Compass Self Storage Expands Miami Footprint

Self storage company 21st Century has finalized the disposition of a 37,242-square-foot property in Miami. Amsdell Cos., operating under its Compass Self Storage brand, acquired the property for $7.2 million, according to Yardi Matrix. JLL Capital Markets negotiated the transaction on behalf of the seller. As part of the deal, the new owner assumed an existing $5.2…

Miami Developers Tweaking Plans To Include Less Retail, Bigger Offices

Businesses and individuals have started to see some relief to get them through the coronavirus, but “there’s only so much the government can do,” said Deco Capital founder Bradley Colmer during a Bisnow webinar Wednesday. “There’s going to be sectors that are going to be [an] absolute bloodbath.” “Thankfully, we sold some of our retail holdings,” Colmer…

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…

Report: Industrial Looks Like a Smart Play in the Current Environment

As national stay-at-home orders have shifted much of the economy toward a delivery model, the negative implications have been broadly felt, extending in the commercial real estate arena. However, Marcus & Millichap says industrial appears to be an exception to the rule. “Offices, restaurants, hotels and most other retailers have been forced to close…

Wynwood Site Claimed, Mixed Use Development Envisioned

A former medical manufacturing facility on a combined 2.27-acre assemblage in Miami’s vibrant Wynwood Arts District traded hands for $18.5 million… T6-8 and allows for higher density mixed-use development. The… sites included in the sale are at 2141–2127–2115 N Miami Avenue, 2150–2160 N Miami Avenue, 38 NW 22nd Street, and 2155 NW Miami Court.

Related Group pays $19M for Wynwood development site

The Related Group closed on a development site in Wynwood for $18.5 million. PRH Investments LLC, an affiliate of Miami-based Related, acquired a 2.27-acre assemblage of land at North Miami Avenue and Northwest 22nd Street, according to a press release from Cushman & Wakefield. The site is zoned T6-8, which allows for eight stories of mixed-use development.

Miami-Dade outlines proposed reopening plan to start Monday, but it’s far from a return to normal

Miami-Dade County Mayor Carlos Gimenez released a 184-page guide for reopening, with the first businesses opening their doors on Monday, pending approval from the governor’s office. The color-coded guide outlines proposed rules for retail, office buildings, shopping centers, trade and logistics, restaurants and hotels, as well as other businesses. The county’s…

Turbulence ahead as Covid-19 stimulus aid keeps rents afloat in SoFla CRE

Stimulus aid to small businesses has kept commercial landlords afloat since the coronavirus pandemic shut down most aspects of everyday life in South Florida. Yet, the future landscape remains uncertain amid an impending recession, according to brokers, bankers and lawyers. “So much stimulus money is backing up tenants,” said Lloyd Berger, president of Fort…

Miami’s Trendy Wynwood District Thrives On Small Business. How Can It Survive Coronavirus?

Daniel Levine stepped outside of his Wynwood ice cream shop, Dasher & Crank, this week to look at the neighborhood. “It’s an absolute ghost town,” he said. “I don’t see a single person around.” Sweet Spot, a candy shop that had opened just a few months ago, was gone. There was brown paper covering the windows at Laid Fresh. A gelato place was dark, as was every…

Rieber Developments Breaks Ground on 10-Story Mixed-Use Project in Aventura

Rieber Developments has broken ground on 12|12 Aventura, a 10-story mixed-use project featuring medical office, luxury senior residences and a food hall. The property is situated in Aventura, approximately 20 miles north of Miami. Arquitectonica designed the development, which will include a 30,000-square-foot gourmet marketplace and food hall, 25,000…

Project in Aventura Health District Breaks Ground During Pandemic

The developer of a 10-story mixed-use project in Aventura is breaking ground despite the coronavirus pandemic. 12|12 Aventura will include a 30K SF food hall, 25K SF of mostly medical offices and 160 luxury residential units for seniors. The offices are broken into 30 condos, 40% of which are already sold, developer Rieber Developments said. The…

Triarch Capital scores $35M refinancing for One Turnberry Place

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 Mackenzie Fry represented Triarch Capital Group in the deal, according to…

Here’s when Miami Beach is proposing to reopen non-essential businesses

The city of Miami Beach is proposing to allow non-essential businesses to reopen on Wednesday, May 20, two days after Miami-Dade County is considering entering the first phase of reopening. In the proposed phase 1A, 761 Miami Beach businesses could reopen in one week. That would include 602 retail stores, 18 museums, and 141 hair and nail salons and barber…

Small landlords call for rent relief package, fearing Wall Street takeover

Small landlords, such as Jan Lee, a New York landlord who owns two buildings, say Wall Street players will take their place unless rent relief comes soon. Calls for the government to bail out the rental housing market are getting louder, and they’re not just coming from tenants. As financial…

PortMiami working to redrawn agreements with multi-billion impact

Two months after cruise lines ceased operations worldwide, the “Cruise Capital of the World” and its industry partners are in talks to redraw details in their long-term agreements to adjust to post-coronavirus expectations. How those talks will affect four massive terminal deals PortMiami struck with Carnival Cruise Line, MSC Cruises, Norwegian Cruise Line and…

Coconut Grove Playhouse case heads to June hearing

The future of the Coconut Grove Playhouse remains in the hands of the Appellate Division of the 11th Judicial Circuit Court with a hearing set for June 16 – if the pandemic permits.  With building permits and drawings set to begin construction at the playhouse property at 3500 Main Hwy., Miami-Dade County Department of Cultural Affairs Director Michael Spring…

Rolando Aedo: Preparing new Miami Shines campaign to rebuild tourism

South Florida was still reeling from Hurricane Andrew when Rolando Aedo began working with the Greater Miami Convention & Visitors Bureau, the region’s nonprofit promotional arm for hospitality and tourism. His role, developing a recovery marketing campaign to reattract interest here, was meant to be temporary. Twenty-six years later, he’s served in several…

Miami-Dade, Broward reopening expected May 18

Broward County is expected to start reopening May 18, along with Miami-Dade County, according to multiple news reports. Broward Mayor Dale Holness had a conference call on Monday with city mayors and there seemed to be consensus that May 18 would be targeted. “The sentiment is that, whether or not Miami goes on the 18th, we will go on the 18th…”

Mall free fall: Macerich collects just 26% of April rent payments

We know it is a bad time to own malls, but retail landlord Macerich’s Tuesday earnings call highlighted how dire matters are. Tom O’Hern, CEO of the Santa Monica retail real estate investment trust, reported that the company “collected about 26 percent of rent” from tenants at the 47 shopping centers Macerich owns throughout the country, malls replete…

WATCH: Sandeep Mathrani says WeWork paid 80% of its rent

As WeWork makes headlines for rental woes, disputes with members and co-founder Adam Neumann’s SoftBank feud, Sandeep Mathrani sought to assuage concerns in his first TV appearance since becoming CEO. The office-space giant paid rent at 80 percent of its locations in April and May and collected rent from 70 percent of its members, Mathrani said on CNBC’s…

North Miami Beach apartment project nabs $71M refinancing

A development group led by Eden Multifamily scored $71.3 million in refinancing for an apartment building in North Miami Beach. North MB Owner, consisting of Eden Multifamily, Florida Value Partners, and Hunt Companies, secured the loan for the 356-unit Lazul Apartments at 2145 Northeast 164th Street. Hunt Real Estate Capital provided the financing…

Hunt Real Estate Capital Provides $71.3M Refinancing Loan for New Multifamily Property in Metro Miami

Hunt Real Estate Capital has provided a $71.3 million Freddie Mac refinancing loan for Lazul Apartments, a 365-unit multifamily community in North Miami Beach. The 11-year, nonrecourse loan features a fixed interest rate in the 3 to 3.5 percent range, a 30-year amortization schedule and interest-only payments for the full term. The borrower, a limited…

Hunt Real Estate Capital Provides $71M Refi for Miami Beach Rental Property

A joint venture partnership between EDEN Multifamily, Hunt Companies and Florida Value Partners has nabbed $71.3 million in Freddie Mac-backed debt from Hunt Real Estate Capital to refinance the Lazul Apartments in North Miami Beach, Fla., according to information released by Hunt. The 11-year, fixed-rate and interest-only loan from Freddie’s pre-stabilization…

JV Secures $71M Refi for Miami Beach Property

A partnership including borrower North MB Owner LLC, EDEN Multifamily, Hunt Cos. Inc. and Florida Value Partners has secured a $71.3 million Freddie Mac conventional loan via the pre-stabilization program, for Lazul Apartments, a Class A, 356-unit, mid-rise community in North Miami Beach, Fla. The LLC arranged for modified zoning to allow retail to become…

Simon says malls will reopen but some states say otherwise

Simon Property Group’s plan to reopen several dozen malls across the U.S. has not gone as smoothly as expected. While more than three dozen states have partially reopened to business — or will be soon — some cities within those states remain under quarantine. Simon has postponed the opening of at least seven malls in New…

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 in Miami Beach, property records show. Blavatnik and fellow billionaire Vlad Doronin plan to build a two-tower hotel and…

Does COVID-18 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…

Jimmy Resnick sells Alton Road retail building for $9 million

Miami Beach investor Jimmy Resnick sold a retail building on Alton Road for $9.25 million. Hibiscus Alton Inc. sold the 16,441-square-foot building at 955 Alton Road in South Beach to 955 Alton Road MIA LLC, property records show. The building was previously home to Coco Bambu, a Brazilian seafood restaurant that closed more than a year ago. Resnick bought…

WeWork’s rental woes slam CMBS market

WeWork’s efforts to renegotiate several of its leases and skip rent payments is causing the price of bonds backed by payments from the company to plummet. Many WeWork tenants have requested rent relief or the termination of their contracts since the onset of the coronavirus pandemic, which has hurt the commercial mortgage-backed securities that rely on…

Coronavirus could set back the pro-density movement

The movement toward dense, transit-adjacent development picked up steam over the last few years, but the coronavirus pandemic might prove to be a big setback. The pandemic has forced a quick national pivot toward telecommuting, which some think could undercut the utility of living near transit, according to the New York Times. If you don’t need to go into…

Bars and music venues across America worry they’ll never reopen

The coronavirus pandemic has forced scores of small bars and clubs across the country to shut their doors and some owners fear they won’t open back up. Entertainment operators, both corporate-backed large companies like Live Nation and small independent proprietors, are feeling the crunch of the coronavirus pandemic. But many smaller outfits don’t have the…

Will insurers cover coronavirus-related business losses? We may soon find out

CNA Financial CEO Dino Robusto A business insurer’s position that it isn’t required to cover coronavirus-related losses is set to face a legal litmus test. A Las Vegas-based company with a CNA Financial’s subsidiary’s policy filed a class-action lawsuit against the company in a Chicago federal court on Monday, according to Crain’s. The company, Vegas Image, owns a…

Brookfield Property’s Q1 losses come as retail tenants miss payments

Brookfield Property Partners is now negotiating with 2,400 of its retail tenants across the country who have been unable to come up with the rent. That inability to pay has cut deeply into Brookfield’s bottom line. Its first quarter was dismal. The real estate wing of the Canadian giant Brookfield Asset Management had a net loss of $373 million from January through…

What April’s record-high unemployment means for real estate

Following an unprecedented 20.5 million drop in payroll last month, the April unemployment rate reached a record 14.7 percent, the U.S. Bureau of Labor Statistics reported Friday. That figure is the highest unemployment percentage on record, since seasonally adjusted data became available in 1948. The unemployment rate is estimated to have reached about 25…

“Unlawful” and “hypocritical”: WeWork members threaten legal action over fees

A group of WeWork members is threatening the co-working giant with legal action if it continues to collect fees even though the coronavirus has prevented them from using the space. In a letter to WeWork’s general counsel on Thursday, an attorney for the members said WeWork’s collection of fees was “unlawful” because state and local authorities have directed…

Virus will leave lasting impact on retailers and their landlords, industry pros say

The near-total shutdown of New York City shops and restaurants during the coronavirus crisis will likely be felt for years to come in the retail real estate world. In the short-term, landlords and tenants will have to come up with creative solutions to help commercial tenants back on their feet, according to some of the city’s top retail brokers who discussed the state of the…

Gov. DeSantis discussing next steps for South Florida

Gov. Ron DeSantis is in discussions with South Florida officials about the next step for the three counties, which were left out of the first phase of statewide reopening. At a press conference on Wednesday, the governor said officials were monitoring an easing last week that saw parks, marinas and golf courses reopen—“they want to see how that’s going.” There has…

Mana saves McArthur Dairy

After submitting a winning bid in bankruptcy court, investor Moishe Mana has closed on the $16.5 million sale of two McArthur dairy sites, including prime property in Little Haiti. The McArthur Dairy plant in Little Haiti Mana plans to build and expand the McArthur brand to have both dairy and non-dairy milk products, saving the company from total liquidation…

Russell Galbut’s Crescent Heights wants a rooftop movie theater at 1212 Lincoln project

Rendering of Rooftop Cinema Club at 1212 Lincoln and Russell Galbut Russell Galbut’s Crescent Heights wants to open an outdoor rooftop movie theater at its 1212 Lincoln Road project on Alton Road in Miami Beach. Miami Beach’s Land Use and Sustainability Committee on Wednesday moved to have the Miami Beach City Commission vote on a proposal…

What Sam Zell is offering renters to keep occupancy rates high

Sam Zell’s Equity Residential had a collection rate of about 97 percent for April despite widespread concerns that tenants would be unable or unwilling to pay their rent amid the pandemic, the company reported on its first quarter earnings call. Equity Residential held its call on Wednesday morning, and CEO Mark Parrell maintained that the company was…

Florida restarts plans for bridge at FIU, two years after deadly collapse

The Florida Department of Transportation will begin the design process for a pedestrian bridge at Florida International University, more than two years after the bridge’s fatal collapse. FDOT announced it would manage and oversee the new project for the intersection at Southwest Eighth Street and Southwest 109th Avenue in Sweetwater, connecting the city to FIU’s…

Resort-town hotels bounce back in reopening states, providing industry with hope of a return

Hotels bounced back last week at tourist destinations in states like Florida and Texas which have begun reopening — a sign that the industry could rebound once more states relax pandemic restrictions. Texas cities like Galveston and Corpus Christie led the boost in occupancy last week, alongside Florida destinations…

Even Sam Zell isn’t ready to dance on graves

The investor has made a fortune playing the distressed game. But even he’s on the sidelines for now. When the markets begin to melt, people usually look to see what Sam Zell is up to. The billionaire real estate investor made his fortune and reputation by acquiring distressed assets on the cheap and disposing of properties at the zenith of the market. He sold Blackstone…

The days of long-term retail leases may be over

As retailers and other businesses seek relief from landlords, one potential long-term fix to rent woes is on the horizon. Michael Phillips, who leads real estate investment manager Jamestown, told the Wall Street Journal that the days of reliance on standard long-term leases with fixed payments in retail are done.

Welcome back to your post-corona office. You probably won’t recognize it

Thermal cameras, bacteria-fighting HVAC systems and contactless coffee machines. Welcome back to the office – you may not recognize it. As New Yorkers gear up to go back to work, landlords are scrambling to cater to a totally different set of priorities. Over the past few years, office spaces have been designed to maximize social interaction. Now, however, minimizing…

Neiman Marcus Files For ‘Prepack’ Bankruptcy, Joining J Crew

Just three days ago, we reported that Neiman Marcus – aka “Needless Markups” – was on the cusp of striking a deal with creditors for financing that would help tide it over through bankruptcy. Well, it looks like the big day has finally arrived. Bloomberg reports that Neiman Marcus Group has officially entered into a Restructuring Support Agreement with a…

Hotels Are Being Impacted by COVID-19. What Can Owners and Lenders Do to Limit the Fallout?

COVID-19 is causing tangible disruption throughout the hotel industry. Daily decreases in travel and cancellations of meetings lead to quick drops in occupancy, followed by hotel pricing decreases (often irrational) that further exacerbate market jitters. A hotel market rate and occupancy shopping app, MSight, estimated downtown Los Angeles hotels had a…

Fortune and Château score $119 million refi for Sunny Isles condo project

Fortune International Group and Château Group scored $119 million in refinancing from Bank OZK for their planned La Playa de Varadero condo development in Sunny Isles Beach. The developers are planning to build two 56-story condo towers on the vacant site at 18801 Collins Avenue. The site is approved for 490 residential units and 1.15 million square feet…

Moishe Mana closes on acquisition of McArthur Dairy

Developer and investor Moishe Mana closed on his acquisition of McArthur Dairy for $16.5 million, expanding his business empire into milk production. Mana is partnering with Jay and Robert Schneier, owners of Florence, New Jersey-based Cream-O-Land, to operate the processing plant and delivery aspect of the business, said Mana’s attorney, Bruce Fischman.

Self-storage facility in Little River sells for $7 million

In both good times and bad times, self-storage remains one of South Florida’s hottest asset classes. Mitsukoshi Miami LLC, tied to 21st Century Storage, sold a self-storage facility and parking lot at 200 Northwest 79th Street and 7751 Northwest Second Avenue in Miami to Amsdell Companies for $7.23 million, records show. The two properties total 48,435 square…

Chart: Commercial Sales Transaction Metric Declines in April as Sales to List Price Ratio Holds

Miami Association of Realtor’s MLS commercial sales, charted above, may not be representative of all commercial sales, but they are representative of a level of sales such that one period can be compared to another. In the accompanying chart, one can see that closed transactions declined by 2/3 in April 2020, to 40, from a run rate of about 120. Obviously, this is COVID-19…

How to restart retail

On today’s episode of TRD Talks Live, associate publisher Hiten Samtani will discuss the future of retail with TSCG and SCG Retail’s David Firestein,  Newmark Knight Frank’s Jeffrey Roseman and Meridien Retail Leasing’s James Famularo. Long before coronavirus kept shoppers off the streets, retail was struggling to adapt…

Cresting Wave of Job Losses Upends Miami Multifamily Sector

How will the COVID-19 fallout impact the Miami multifamily market? Although many investors are approaching markets known for leisure travel and cruise industries with caution these days, RED Mortgage Capital research posted last week indicates Fort Lauderdale/Broward County may offer a more attractive risk and reward profile than is commonly…

“The relationship between landlord and tenant needs to change”: Fifth Wall’s Brendan Wallace on the need for a retail bailout

The head of the largest real estate-focused venture capital fund is advocating for a $30 billion government bailout of the retail industry, warning that it is on the brink of systemic collapse. Brendan Wallace, managing partner and co-founder of Fifth Wall Ventures, has a proposal: Get the five biggest retail landlords in a room with the federal government…

Fortune International, Château Receive $119 Million Refinancing for Oceanfront Condo Development in Sunny Isles

Fortune International Group and Château Group have received a $119 million loan for the refinancing of La Playa de Varadero, an oceanfront condominium development site in Sunny Isles Beach, a barrier island about 20 miles north of Miami. Located at 18801 Collins Avenue, the 4.7-acre site boasts beach frontage of 435 feet directly on the Atlantic Ocean. Plans…

The Pandemic Is Changing How The Next Wave Of Apartment Amenities Will Be Designed

Some social distancing built into the design is going to need to be an option, though the exact nature of changes isn’t clear yet. “The open-plan hospitality vibe has been central to marketing to a millennial demographic,” The Architectural Team principal Michael Liu said. “But in the present pandemic, it may also be ideal for communicating disease.” Meshberg…

Commercial Borrowing Cost: Rate Watch for April 30, 2019

At the end of April of 2019, intermediate yields remain at lows reached in recent weeks. This has, of course, been driven by reduced economic activity due to the COVID-19 pandemic. As can be seen in the accompanying chart, five year rates, which are most closely tracked for commercial property borrowing cost, found themselves under 0.5%, flirting with negative rates.

Related Group honored for bevy of awards

Last year executives and projects of The Related Group, a leading developer of metropolitan living in Florida as well as one of the country’s largest real estate conglomerates, won several accolades. Based on these recognitions, Miami Today’s Gold Medal Awards judges chose the company as one of this year’s winners for an institution. The specific award level – bronze, silver…

Yardi Matrix April National Office Report: So Far, It’s a Waiting Game

COVID-19 has drastically reshaped life and the economy, but the pandemic’s full effects on the U.S. office market have yet to come to light in the data. The latest Yardi Matrix office report shows that national full-service equivalent listing rates held steady through March. Moreover, in terms of sales, Q1 2020 was on par with the first quarters of the two previous years…

Della Heiman: Shifting from former Wynwood Yard to a new Doral Yard

Fresh out of Harvard Business School in 2014, Della Heiman was whittling down her list of where to launch her healthy, plant-based culinary concept, Della Bowls. She wanted to start in a city where demand and awareness of such an offering was high but supply was limited. It ultimately came down to two cities, Chicago and Miami. Weather was the pivotal factor at first…

Unfortunately, new rail transit likely to be Covid-19 victim

There are a number of reasons to carefully heed Miami-Dade Commission Chairwoman Audrey Edmonson’s concerns about planning a Metrorail extension from downtown Miami to the Broward County line. Just look around and you’ll see them. As she noted at a recent transportation planning meeting, Metrorail is the most expensive transit we could get…

Video: Ian Lis of Tripp Scott Law Firm Discusses Navigating the PPP

On Monday, May 4th, South Florida Business & Wealth hosted a live Virtual Connect webinar “Navigating the PPP.” Our moderator, CEO and Chairman Gary Press, interviewed Ian Lis of Tripp Scott Law Firm on the Paycheck Protection Program, a loan from the SBA designed to provide a direct incentive for small businesses to keep their workers on the payroll. View…

JLL predicts coronavirus’ impact to extend past 2020

As the coronavirus crisis cripples property sales and leasing, JLL’s latest financials may offer a glimpse of what’s ahead for the first-quarter earnings season. The commercial brokerage reported a net operating income of $5.3 million during the first three months of 2020, compared to $21.3 million a year ago, Crain’s reported. JLL said global leasing fell 22 percent year…

Retail fallout: Victoria’s Secret sale scrapped, Neiman Marcus nears restructuring deal

Victoria’s Secret’s parent company has canceled its deal with private equity firm Sycamore Partners, while Neiman Marcus is nearing a restructuring deal with a Pimco-led group. (Andrew Chin/Getty Images; Noam Galai/Getty Images) With their stores still closed, these struggling retailers are pursuing new plans. L Brands, the parent company of lingerie retailer Victoria’s…

J. Crew Files for Bankruptcy Protection

J. Crew Group Inc. filed for bankruptcy with plans to hand control to its lenders, unable to revive its preppy clothing line amid the pandemic and crushed by debt rooted in a long-ago leveraged buyout. While J. Crew’s struggles pre-dated the coronavirus outbreak, it’s the first major retailer to go bankrupt during the ensuing economic shutdown, which has pushed…

Sam Zell’s office REIT won’t commit to a specific coronavirus strategy just yet

Sam Zell’s Equity Commonwealth has not had many problems collecting rent so far, but the company was very light on details about the pandemic’s impact apart from that in its first quarter earnings call on Tuesday morning. The office real estate investment trust had 98 percent of its contractual rents paid for the month of April, and just 3 percent of that…

Investments Limited scores $67M loan for 13 SoFla properties

Investments Limited nabbed a $67 million loan to refinance 13 of its commercial properties in South Florida. The Boca Raton-based commercial real estate firm secured the loan from Miami-based Ocean Bank for office and retail properties in Boca Raton, Deerfield Beach, and Plantation, according to a press release. The law firm Holland & Knight’s Josias…

Warren Buffett questions the need for office space

The Oracle of Omaha foretells an existential challenge for office space. At Berkshire Hathaway’s annual meeting on Saturday — held this year via live stream from an empty arena — CEO Warren Buffett quipped that it had been more than seven weeks since he had put on a tie. And the extended period of remote work may affect more than just clothing choices.

57 Ocean in Miami Beach scores $59M construction loan

Multiplan Real Estate Asset Management closed on a $58.5 million construction loan for 57 Ocean, a luxury condo project in Miami Beach. The developer, led by Brazilian billionaire José Isaac Peres, secured the loan from Bank OZK. The Little Rock, Arkansas-based bank is still lending in South Florida during the pandemic, and recently received the final…

St. Louis Fed: How will COVID-19 Affect Financial Assets, Delinquency and Bankruptcy?

There will be economic losses from the COVID-19 pandemic, and knowing how those losses are distributed across the population is just as important as the overall amount.1 Our previous posts in this series have uncovered a troubling pattern. Communities with the highest financial distress—which are the least able to weather economic losses—both: Tend to rely more…

Key COVID-19 metrics improve in South Florida

South Florida was cut off from the rest of the state in a phase one reopening on Monday, but key health metrics show progress. Florida Department of Health charts show a steady downward trend in Broward, Miami-Dade and Palm Beach counties for emergency room visits for people with COVID-19 and flu-like symptoms. The trend line is similar to statewide figures.

Landlords Sue Ross Stores, Other Commercial Tenants

In the past 24 hours, landlords have filed at least two lawsuits against major retailers over nonpayment of rent. And South Florida lawyers say these are just the start as brick-and-mortar retail faces a new and unexpected hurdle: the coronavirus. The lawsuits follow the Florida governor’s executive order requiring store closures and mandating social distancing restrictions.

CMBS debt relief inquiries fall in late April, but worst is yet to come, new report says

After facing a tidal wave of relief requests in the first half of April, loan servicers saw a dip in inquiries during the last two weeks of the month. But that probably won’t last. Over the two-week period ending April 26, the four largest commercial mortgage-backed securities master servicers (Wells Fargo, Midland, Keybank and Berkadia) received a total of 1,301 inquiries…

Miami-Dade judge tosses Avra Jain’s $15M lawsuit against former attorneys

Miami-Dade Circuit Judge Michael Hanzman has derailed developer Avra Jain’s efforts to collect $15 million from a law firm that represented her in an unsuccessful court case. Hanzman dismissed Jain’s complaint on March 13 by granting summary judgment for Buchanan Ingersoll & Rooney and its shareholder Richard A. Morgan. The firm had represented the Vagabond…

Private clubs like Soho House keep collecting dues, add perks to keep members happy

Private clubs including Soho House continue to collect steep dues from members, even though many have had to close up shop because of the pandemic. Soho House is offering only in-house credits for the months the club is inaccessible as it tries to keep cash flowing to cover expenses, according to Bloomberg. Not everyone is happy, but other members say…

Half of mall-anchored department stores could close within a year

If you’re looking for some post-lockdown retail therapy, your choices may be limited. More than 50 percent of department stores anchoring shopping malls could permanently close within the next 12 months, according to a Green Street Advisors report cited by CNBC. Anchor department stores are themselves key to the financial viability of mall properties, but closures…

Who are the tenants of today and tomorrow?

With another monthly rent payment coming due, both commercial tenants and landlords are evaluating their prospective futures.  A potential surge of bankruptcies raises an important question: who will be the tenants of today and tomorrow?  Some recent developments in pending bankruptcy cases and likely filings provide some insight into the possibilities and how both…

Small businesses in high-rent cities balk at PPP loans

Small business owners in high-rent cities like New York and Los Angeles are balking at PPP loan money, and calling for more flexibility in how they may distribute the funding. (Photo by John Nacion/NurPhoto via Getty Images) Small business owners in high-rent cities like New York, Los Angeles and Chicago are finding the federal government’s $660 billion Paycheck…

South Florida deli chain TooJay’s files for bankruptcy

The popular Florida deli chain TooJay’s declared bankruptcy as a result of the impacts of coronavirus. TooJay’s Management, which opened its first restaurant in Palm Beach in 1981, filed for Chapter 11 bankruptcy earlier this week in federal court in the Southern District of Florida. The company owns and operates 28 locations in Florida, including in Hallandale Beach…

J. Crew nears bankruptcy, Brooks Brothers seeks buyer

J. Crew and Brooks Brothers are among the latest retailers on the brink of bankruptcy. J. Crew, which has 322 stores, is seeking $400 million in financing to fund operations during bankruptcy, CNBC reported. And Brooks Brothers is seeking to sell itself, a deal that could potentially be part of a bankruptcy filing, according to…

Macy’s prepares to unlock the doors

In the latest sign of a post-coronavirus retail world, Macy’s will reopen all its 775 locations by the end of June. The company will begin on Monday with 68 stores in Georgia, South Carolina, Tennessee and Texas, according to the New York Times. CEO Jeff Gennette said in a presentation that the retailer expects to only bring in about 20 percent of its typical business…

Investors who shorted malls stand to make out big

The coronavirus pandemic may be the final nail in the coffin for some retailers and shopping malls. For certain investors, that’s a good thing. Those who shorted the mall-heavy CMBX 6 index are seeing their bets pay off faster than they thought as tenants come up short on rent and mall owners miss mortgage payments, according to Bloomberg. MP Securitized…

Miami commission approves rent, utility assistance for low-income households

Miami low-income residents who recently lost their jobs can start applying for rent and utility assistance at noon on Monday. But private contractors, or those who already are receiving rental subsidies, or are behind on their payments are not eligible. The Miami City Commission on Thursday unanimously approved allocating $6.9 million in COVID-19-related…

Hotel occupancy rises as essential workers, homeless fill rooms

The hotel market is improving across the country but that comes with a caveat. The uptick is likely a result of coronavirus-related response measures cities have undertaken throughout the U.S. Nationally, hotel occupancy inched up to 26 percent for the week ending April 25, from about 23 percent the week before, according to data from hospitality…

SoftBank anticipates $6.6B loss on WeWork investment

SoftBank’s bet on WeWork is causing more pain for the conglomerate. The group said this week that it is expecting a $6.6 billion loss for the year ending March on a portion of its investment in WeWork held outside SoftBank’s Vision Fund. The announcement comes two weeks after SoftBank told investors that its annual operating losses would reach…

Real estate is waking up to pandemic insurance. But is it too late?

Hotel owners nationwide have likely deployed teams of lawyers to scour their insurance policies, hoping to find a clause that covers a portion of the monumental damages inflicted as a result of Covid-19. Most of them have been sorely disappointed. But a very small number may be holding a trump card. In New York City, Rotem Rosen’s Hotel Indigo Lower East Side…

Video: Miami’s COVID-19 Recovery Plan Reviewed in Brickell Alliance Virtual Town Hall

This video is a recording of theApril 30th Brickell Alliance’s virtual town hall conversation with Miami City Commissioner Ken Russell on the City of Miami’s Recovery Roadmap. Reviewed are various phases of recovery and the orders to be issued within them, the expected timelines for such, and criteria for deciding when milestones are met. This is a must view video…

Business as Unusual – Habitus Furniture, Javier Malik, owner

Business backstory: The contemporary furniture store, launched in 2003, works with designers and manufacturers in Europe, Asia and South America to develop its own unique furniture collections. Habitus has locations in Aventura and Doral. (habitusfurniture.com) The impact: “Our showrooms in Aventura and Doral closed to the public due to…