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Boardwalk Properties Sells Off South Beach Multifamily Portfolio For $96.5 Million

Cushman & Wakefield has arranged the sale of a portfolio of 452 apartment units and a 2,669 square foot office building located in Miami’s South Beach and Bay Harbor Island.

The final sale price was $96.5 million.

Calum Weaver, Robert Given, Zach Sackley, and Troy Ballard of Cushman & Wakefield represented the seller, Boardwalk Properties, in the transaction. Sentinel Corp., an independently owned real estate investment management firm which currently has $7.4 billion of institutional quality real estate assets under management on behalf of 105 domestic and international clients, acquired the property.

“Given the uniqueness of the portfolio, the largest number of apartment units ever sold in South Beach, there was an unprecedented amount of investment interest in the properties,” Weaver said. “Out-of-state and foreign capital were extremely bullish on the generational opportunity to acquire a significant number of units in South Beach.”

The apartment units are within walking distance to South Beach’s attractions, including Lincoln Road, Ocean Drive, Collins and Washington Avenue. Over the past four years, Boardwalk Properties has invested $7 million to improve the properties, including gut renovating 61 units at 1600-1606 West Avenue and 1567 Meridian. The remaining 261 units have the potential to increase income with value-add improvements focused on interior upgrades.

The properties are located at:

  • 705 Lenox
  • 710 Meridian
  • 715 Michigan
  • 760-762 Lenox
  • 844-860 Euclid
  • 850 15th St.
  • 1135 8th St. 1600 West Ave.
  • 1606 West Ave.
  • 825 Alton
  • 948-952 Meridian
  • 951 Jefferson
  • 1017 Jefferson
  • 1025 Meridian
  • 1567 Meridian
  • 1110 Penn
  • 1226 Drexel
  • 1251 Euclid
  • 1326 Penn
  • 1336 Penn
  • 1348 Drexel
  • 1440 Euclid
  • 1455 Euclid
  • 700 Euclid
  • a two-story 2,669-square-foot office building located at 1211 Alton Rd.
  • 9200 E Bay Harbor Dr.
  • 9270 E Bay Harbor Dr.
  • 10150-10190 E Bay Harbor Dr.
  • and 1075 101 St. in Bay Harbor Island

 

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Lissette Calderon Delivers First Multifamily Project In Allapattah

Developer Lissette Calderon has completed the first of her three apartment projects in Miami’s Allapattah neighborhood.

Nearly two and a half years after buying the land, Calderon’s Neology Life Development Group received a temporary certificate of occupancy for the 192-unit No. 17 Residences, a 13-story building at 1569 Northwest 17th Avenue.

Calderon said it’s “the perfect time” to build in Allapattah, which she said is Miami’s “last authentic urban core neighborhood.” The area has attracted major real estate players, including the Related Group’s Jorge Pérez and 1111 Lincoln Road developer Robert Wennett.

Pre-leasing, including virtual tours, launched earlier this year. Calderon said monthly rents start at about $1,200 for a studio apartment. The building offers “attainable luxury” that was lacking in Allapattah, she added. Studios start at 740 square feet, and one-bedroom apartments start at 600 square feet. Units go up to 1,125 square feet for a three-bedroom, according to the development’s website.

The building is west of the Miami Health District and northeast of her Pier 19 Residences & Marina apartment building on the Miami River. It’s south of the Rubell Museum and the popular Hometown Barbecue restaurant.

Amenities include an 8,000-square-foot park for residents, which was added during the pandemic due to increased demand for outdoor space, a pool deck with cabanas, rooftop garden, fitness center, co-working spaces, and package rooms.

Calderon said she plans to break ground on her next two projects, 16 Allapattah and 14 Allapattah, this summer, and deliver those buildings about 16 months from groundbreaking. 16 Allapattah is planned as a 323-unit rental building with 9,000 square feet of office space and ground-floor retail, and 14 Allapattah, a two-tower project on an Opportunity Zone site, is expected to have 237 apartments and ground-floor retail.

Wennett, who tapped Bjarke Ingels to design his major mixed-use development nearby, secured approval from the Miami City Commission about two years ago for his Miami Produce Center special area plan. The planned 1.4 million-square-foot development could have as many as 2,400 co-living units and 637 traditional residential units, nearly 231,000 square feet of office space, 129,000 square feet of retail space, about 22,000 square feet for “educational uses,” as well as more than 1,000 parking spaces.

Calderon said she has been welcomed by the community in Allapattah, and that she is not displacing residents.

“I go into neighborhoods where I’m wanted,” she said, noting that her firm purchased existing warehouses and shuttered buildings.

 

 

Source:  The Real Deal

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Banking Experts Forecasting A Strong Miami-Dade Recovery In 2021

Banking experts are forecasting a strong Miami-Dade recovery in 2021 spurred by the area’s strong real estate market and a diverse economy. While some industries may bounce back slower than others, they said, the financial outlook for the county and South Florida as a whole is encouraging.

Business has already picked up significantly in the first quarter, US Century Bank CFO Rob Anderson said, boosted by a still “booming” real estate ecosystem and resilient small- to medium-sized commercial and industrial businesses in the area.

“Certain business types are very busy, and in our first quarter our loans were up 6% versus the fourth quarter of last year – a 24% annualized growth rate,” he said. “Business in Miami-Dade and the South Florida market are rebounding quite nicely, [and] we see just general commercial real estate lending picking up across the board.”

As the nation nears the 12th anniversary of the Great Recession, the longest American recession since World War II, the lessons learned from that period are evident in how banks, businesses and governments responded to the current economic climate.

Because they leveraged themselves less in response to the pandemic, Mr. Anderson said, many companies are flush with liquidity. And many operated throughout last year, though most at lower volumes than before Covid-19 struck.

“We have government stimulus programs being put to work, and the banks are the conduits to get [the] money out to clients. That gives us an opportunity to be fast and responsive, and we’ve picked up new clients,” he said. “By all senses from the numbers I’ve seen on my desk, business is back, and US Century Bank is probably going to have one of the strongest quarters we’ve had in a while when we report on the first quarter. It’s trending in the right direction.”

Not all real estate types are doing equally as well, said Agostinho Alfonso Macedo, CEO of Ocean Bank. Residential real estate remains the healthiest part of the bank’s portfolio, he said, as the pre-pandemic trend of people relocating to Miami for its favorable weather and comparatively low taxes has continued.

Similarly, warehouse and industrial real estate will remain strong in a county known worldwide as the “gateway to the Americas.” But office, retail and hospitality space will be slower to make a comeback due a huge shift from in-person to remote work, an acceleration of the “Amazon effect” of customers preferring to shop online rather than in person for many goods and services, and safety worries tied to the pandemic linger.

Recovery by business-oriented hotels is likely to be the slowest among hospitality companies, Mr. Macedo said. But for recreation, while average daily rates aren’t yet back to where they were in 2019 and early 2020, when Miami-Dade hosted a slew of events culminating in the Super Bowl, numbers are on the upswing.

“The great news is they’re going up little by little, and very encouraging is the occupancy,” he said. “These hotels are packed. They’re full, and everything is related to the huge amount of stimulus. People have a lot of money and are traveling more, and when they do, they don’t want to go to the Caribbean or Europe. They want to come here to Florida, to Miami, and we’re seeing the effects of that.”

The economy remains “somewhat stressed,” but despite a massive amount of debt being placed on the nation’s balance sheet, America in general and Miami-Dade specifically are on course for a strong year, said Robert Muñoz, president and CEO of The Global Financial Group and a past chairman of World Trade Center Miami.

The pandemic dampened the economy, but not all industries equally. To what degree a combination of increased debt, a surge for demands of products and services and some material shortages causes inflation is unknown, he said.

“It’s yet to be seen if our debt is downgraded, but worse would have been economic calamity, so this is the better way out,” he said. “We’ve learned since the [Great Depression of the 1930s] not to pull back but to ride through these large cycles. The Great Recession was a great example of riding through a massive amount of turmoil, where the federal reserve put trillions of assets onto the balance sheet in the form of a rescue.”

Among the good news, he said, is that most American corporations that operate internationally, including many headquartered in Miami-Dade, aren’t overly leveraged. Altogether, they have about $3 trillion in offshore balances, revenues and income that, if needed, could in part return to further bolster economic recovery.

“Generally speaking, our economic turmoil has been properly measured in the [stimulus] programming that’s out there,” Mr. Muñoz said. “Of course, there are some abusers – those who maybe take advantage of things they shouldn’t – but the overwhelming majority of people using it have been helped correctly.”

As a “first-rate city within the tiering of US cities” and a top global commercial and recreational destination, he said, Miami and its two primary economic engines in Miami International Airport and PortMiami stand to gain much from President Biden’s forthcoming $2 trillion infrastructure improvement plan, which some have compared to President Franklin Roosevelt’s New Deal that helped bring America out of the Great Depression.

“Miami and South Florida would benefit significantly with monies that would flow into the state helping all 19 major airports in the state and the roadways, which we’ve constantly upgraded and have been building because of population growth,” Mr. Muñoz said. “It would also help in hiring people from rural areas who can now work from home if they get the latest 5G connectivity. It’s great overall, and while I don’t know if it’s enough money, $2 trillion is better than zero, and it’s a direct stimulus because the money will be spent, unlike some of the prior stimulus that’s really being held, not being spent, by people because they’re still worried about the future.”

For those with an entrepreneurial bent, now is the time to invest in that future, Mr. Macedo said. The pandemic and the trillions in stimulus dollars being spent to offset its effects present “a unique opportunity” to existing and potential businesspeople as the country undergoes an explosion of pent-up consumer demand.

“This is the right moment,” he said. “We’re starting to see shortages in some areas because we cannot catch up with the demands all this consumption is creating. You saw this happen with [semiconductor] chips and automakers, for example. You have low-cost money and demand, so it’s the right time to go out and do that project. The most difficult thing is to find the money to do it and to sell your product. Those conditions are right there, right now.”

 

Source:  Miami Today

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Ironstate Pays $16M For Wynwood Site, Marking First Property In Miami

Ironstate Development Group purchased a property in Wynwood for $15.6 million, marking its first South Florida site.

The Hoboken, New Jersey-based development firm, led by brothers David and Michael Barry, acquired the Art by God assemblage at 60 Northeast 27th Street. The buyer is 26-60 NE 27th Street LLC, according to brokers involved in the deal.

Ironstate’s portfolio includes properties in New Jersey and New York, and the company has been considered a key player in Jersey City’s evolution. It is unclear what the firm’s plans are for the Wynwood site.

Art by God, led by Gene Harris and his family, was in contract to sell the land at 26 Northeast 27th Street, 25 Northeast 26th Street, and 61 Northeast 26th Street since October 2019. The previous buyer, Miami Beach-based Lucky Shepherd, assigned the contract to Ironstate, which acquired the property on Wednesday, according to the brokers.

Lucky Shepherd, led by Christine Menedis and Naveen Trehan, had planned to build a 150-key hotel with 48 rental apartments.

Andy Charry of Metro 1 represented the seller, while Colliers International South Florida brokers Mika Mattingly and Cecilia Estevez represented Lucky Shepherd.

Mattingly called it a “prime example of a Covid-ravished deal” that emerged “triumphantly.” Charry said the pandemic threw a monkey wrench through the original timeline. The closing was initially scheduled for early 2020.

“They had a great property located on a great street, and it became even better because of the proposed Brightline station,” Charry said, referring to the sellers. The family owns the gift shop that offers minerals, fossils and other natural resources.

Developers including the Related Group, Property Markets Group, Kushner Companies, East End Capital and others have flocked to Wynwood in recent years, developing mixed-use, multifamily projects.

 

Source:  The Real Deal

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The Collective Unveils Plans For ‘Co-Living’ Building In Wynwood

The Collective has unveiled plans for its first co-living project in South Florida within a mixed-use building in Miami’s Wynwood Art District.

The city’s Wynwood Design Review Committee will consider the project at 2825 N.W. Second Ave. during its April 14 meeting. The 41,750-square-foot lot is owned by Wynwood Gateway II LLC, an affiliate of the Collective, a co-living operator based in New York, London and Berlin. The project would replace an auto showroom currently on the site.

The Collective first announced its intention to develop the site in 2019, but it hadn’t put forth a specific description of the project until now.

The building would total 351,443 square feet, with 12 stories along 29th Street and eight stories on 28th Street. It would have 108 apartments, 70 hotel rooms, 9,508 square feet of commercial space, and 163 below-grade parking spaces. As for the units, the hotel rooms range from 330 to 1,049 square feet. The apartments would range from 1,083 square feet with four bedrooms to 2,395 square feet with six bedrooms.

 

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Brickell Dev Site Hits Market, Broker Expects To Fetch More Than $25M

A developable assemblage in Miami’s Brickell neighborhood hit the market, with zoning that allows for two 48-story towers. The listing broker said he expects it to sell for more than $25 million.

Owner Progesti Corp. listed the 1.3 acres at 180 Southwest Ninth Street, 244 Southwest Ninth Street, and 901 Southwest Third Avenue. Progesti, whose president is Jose Nunez, bought the properties, which currently house two small multifamily buildings, in 1999 for $2.85 million, a deed shows.

ColliersVirgilio Fernandez and Gerard Yetming are lead brokers on the listing.

Up to 531,258 square feet can be built on the two parcels, with a mix of hotel, condominiums, office and retail. The parcels are walking distance from each other, but aren’t contiguous.

The property at 901 Southwest Third Avenue and 244 Southwest Ninth Street has a three-story, 68-unit multifamily building that was constructed in 1962, according to property records. The other, at 180 Southwest Ninth Street, has a three-story, 24-unit multifamily building constructed in 1964.

Fernandez said he has seen interest so far for the assemblage, particularly from New York investors. He said he expects the sale price to far exceed $25 million.

The listing comes on the heels of another swath of land hitting the market. A Biscayne development site spanning 3.2 acres at 11240 Biscayne Boulevard near North Miami has an asking price of $10.5 million.

 

Source:  The Real Deal

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Rilea Group Taps Crowdfunding Platform RealtyMogul For Project In Wynwood

Rilea Group launched a crowdfunding effort to capitalize a mixed-use project near the Wynwood Art District neighborhood of Miami.

The Miami-based developer has qualified its Mohawk at Wynwood project for the crowdfunding platform run by RealtyMogul. RealtyMogul has more than 200,000 qualified investors.

The developer has 1.5 acres at 56 N.E. 29th St. under contract. The property is currently owned by 29th Street Warehouses LLC and has an old warehouse.

Rilea Group President Diego Ojeda said the campaign, which launched April 5, aims to raise $10 million through crowdfunding towards the $103 million project. There will probably be a second round of crowdfunding, and it would be combined with equity from high-net-worth investors and debt.

 

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Which Retail Tenants Are Still Struggling to Pay Rent?

February brought some welcome relief for the country’s retail landlords, as multiple tenants managed to pay all of their rent for the month and the number of those able to pay less than half of what they owed dropped, according to the most recent report from data firm Datex.

According to Datex, between the end of 2020 and February, total rent collections rose 514 basis points, to 90.81 percent. The increase affected both national and non-national retail tenants, with the non-nationals showing a somewhat stronger improvement and paying up to 87.70 percent of the rent they owed in February in contrast to just 81.64 percent in December of 2020.

As of February, here are the retail tenants that paid the most and the least of their rent.

 

 

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Two Venture Capital Funds And StartUp Ink Leases in Miami’s Wynwood

Venture capital funds Founders Fund and Atomic, as well as the start-up OpenStore, signed three office leases totaling 22,000 sq. ft. in Miami’s Wynwood Arts District, at Wynwood Annex, a creative office building developed by Related Group and East End Capital.

Founders Fund is a major Silicon Valley venture capital firm with billions of dollars in capital under management. Co-founder Peter Thiel, who also co-founded PayPal, showed interest in Miami last year when he signed a short-term lease for office space before selecting Wynwood as home to its permanent Miami office.

Already home to popular tech companies Spotify and Live Nation and start-ups like the CodelittWyncodeASOFTIO Software, and now, OpenStore, some are beginning to refer to Wynwood as the epicenter of Miami’s urban core.

According to a release, the following recent announcements are also helping to solidify Wynwood as the creative hub of Miami:

  • Microsoft and SoftBank Group, one of the world’s largest tech investors, announced they are looking for 100,000+ sq. ft. of space;
  • Announced last week, Wynwood will host the world’s largest Bitcoin Conference in June 2021 where Twitter CEO Jack Dorsey will speak at Mana Convention Center.  The conference was previously held in Los Angeles, California; and
  • Miami Mayor Francis Suarez announced the City’s first-ever Chief Technology Officer and is currently considering a contract for employees to receive all or part of their salaries in Bitcoin, and for the public to have a Bitcoin option while paying for city services.    

 

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Miami Residential Rents Up 20% Year-Over-Year

Angelique Brunner, EB5 Capital founder and CEO, joins Yahoo Finance’s Alexis Christoforous to discuss the impact of the pandemic on commercial real estate.

Video Transcript

ALEXIS CHRISTOFOROUS: One thing is clear over this past year. COVID-19 has fundamentally changed the way real estate business is being conducted. The demand for space has been impacted by social distancing, shutdowns, quarantines, remote work. Here to talk about the changing landscape of commercial real estate is Angel Brunner. She is founder and CEO of EB5 Capital, which is a commercial real estate investment firm.

Angel, it’s good to see you. What have you been seeing in your business, in terms of demand for commercial real estate and also the prices for that real estate?

ANGELIQUE BRUNNER: Thank you for that question. Well, the prices for commercial real estate are not where they were in 2019 because prices are set by the operating income of the asset. So we really have a falloff, and the buyers are the winners. The folks that are selling are really in a forced sale situation. It’s not the ideal time to sell. We– our office, we closed it immediately in March, and we have not been open, and we don’t know when we’re going to open.

But as a microcosm of the issue, we have decided to take more space because, when we return to the office, we need to socially distance, and then we need more space to socialize. So I think as we see businesses return to offices, it’s going to be interesting to see what they do in terms of the commercial space that they held previously and how they use the commercial space they have and if they expand.

ALEXIS CHRISTOFOROUS: Where are you focusing your real estate investments right now, and in terms of even geography? You know, what states, what cities are you looking at?

ANGELIQUE BRUNNER: Well, that’s a great question. So for the very first time, we’re at 10 years operations, about 30 deals, and we’re looking at one of our first suburban deals right now. And part of that is because we’re seeing an expansion of people staying in the suburbs. And the inner– the center city is going to come back maybe at not the same space– not the same pace. So we’re definitely watching how the center city returns, and we’re starting marketing in the suburbs.

ALEXIS CHRISTOFOROUS: What about– you know, a lot of people said that New York was going to be down and out, unable to recover. You know, what are you seeing in the New York commercial real estate market right now?

ANGELIQUE BRUNNER: Yes. Well, I have some– I have a large project in New York, and I would say I would never bet against New York. I’m in that group that I just don’t bet against New York. So I think New York is going to come back. It’s going to come back as fast as it can. I think a lot of people miss New York. I, for one, miss New York. I miss Broadway. I’m not alone, I’m sure.

And New York’s going to come back in waves. You’re going to have to get people coming back to the office, you’re going to have to get people coming back to their apartments, and you’re going to have to get people coming back for tourism. And so New York is going to come back in waves, and it might take a while, as one of our largest cities.

ALEXIS CHRISTOFOROUS: I’m with you on that. As a native New Yorker, I never bet against New York, either.

ANGELIQUE BRUNNER: I never.

ALEXIS CHRISTOFOROUS: I, too, miss– I, too, miss Broadway. But what about– I mean, we have so much commercial real estate in this city, in New York, and skyscrapers that are just sitting with, you know, 20% occupancy, if not less, right now. Is it ever really going to return to pre-pandemic levels, or is that landscape here, in a city like New York, just changed forever?

ANGELIQUE BRUNNER: Well, I do think that we will find a new normal, that we’ve found some efficiencies in the pandemic that we won’t let go of. I think that we all have to accept that there are certain meetings that we’re going to attend on screen, and that we’re not actually going to get on a plane to attend them. And that will be part of the new normal.

But I also think that people miss their co-workers. I know I have this at my company, where my coworkers actually enjoy each other. My team enjoys each other, and they miss each other. And so they want to socialize, they want to be in the same space, but they want to do it safely. And so as an employer, you have to ask yourself, how are you going to make that possible. And for us, that answer is with more space not, with less.

ALEXIS CHRISTOFOROUS: Yeah, not everybody can do the more space because more space is more square footage, presumably, and more– more rent. Where are you seeing the best deals right now, in terms of commercial real estate? What are some up-and-coming areas that people might want to look at?

ANGELIQUE BRUNNER: Well, your last guest mentioned spring break in Miami, and the leisure markets are coming back faster. I’m even seeing hotel deals shopped to me in the Florida area, in the Miami area. People are looking at acquisitions. They’re looking at building. They’re looking at being in that market long-term. You have to remember, all the demand that places like Miami are seeing is independent of international demand because of the existing travel restrictions.

So you’re going to see even more demand. And places where people can enjoy a lifestyle are really booming right now, where they can enjoy living and working. And that’s a new equation. It used to be that you could tell talent where they had to move for a job. And I think you’re going to see a lot of pushback on that, and you’re going to see a lot of growth in places where people can enjoy a lifestyle.

ALEXIS CHRISTOFOROUS: Yeah, I think you’re right on that one. Angel Brunner, CEO and founder of EB5 Capital, thanks so much for being with us today.

 

Source:  yahoo!finance

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