No Comments

Five Class A Office Projects In The Development Pipeline For Miami Beach

Intent on diversifying its economy beyond tourism and nightlife, officials have heavily incentivized the construction of Class A office buildings in Miami Beach. The hope is that the new projects will lure tenants from the many technology, financial and venture capital businesses flocking to the area.

Those incentives include height increases in certain corridors, an office-friendly overlay district in Sunset Harbour, and a request for proposals for developers interested in building new offices on three city-owned parking lots by Lincoln Road. (The deadline for that RFP is Dec. 17).

As demand rises for workspaces on the multibillion-dollar sandbar, these are five Class A office projects in the pipeline to know about, according to a capital market list compiled by the Miami Beach-based commercial brokerage Koniver Stern:

Starwood Global Headquarters, 2340 Collins Ave.: A limited liability company connected to Starwood Capital Group took out a $76.2 million construction loan to build a six-story, 144,430-square-foot building that will serve as the headquarters for a real estate firm led by Barry Sternlicht. The firm has $100 billion worth of assets under management, employs 4,000 people in 16 offices worldwide, and controls the publicly traded mortgage investment company Starwood Property Trust (NYSE: STWD). Around 55% of the Starwood Global Headquarters office space will be used as the base of operations for 300 Starwood employees. The rest of the office building, which was co-developed by Miami-based Integra Investments, will be leased to third parties. The building will also have 8,000 square feet of retail, a 277-space parking garage, and “an array of outdoor wood-clad ‘cabanas’ on each floor,” according to a press statement issued by Starwood. Topped off in December 2020, the Starwood Global Headquarters is due to be completed by the end of the year.

The Bancroft, 1501 Collins Ave.: This hotel circa 1939 is being converted into Class A office space by Boca Raton-based Pebb Capital, Maxwelle Real Estate Group in downtown Miami, and Crescent Heights headquartered in Miami’s Edgewater. When the project is completed, The Bancroft will have 50,000 square feet of offices, four restaurants, and a 210-space underground parking garage.

One Island Park, 120 MacArthur Causeway: The Related Group scrapped its previous plans to construct a 90-unit condo at Terminal Island. Instead, the Coconut Grove real estate development company, headed by Jorge Pérez, will build an office complex totaling around 162,000 square feet in size with a rooftop restaurant, a four-level parking garage, a guard gate, and infrastructure to fuel up and service megayachts docked at the facility.

Eighteen Sunset, 1733 Purdy Ave.: This past November, developer Bradley Colmer of Deco Capital Group broke ground on the first brand new office building to be constructed within the Sunset Harbour Overlay District. The five-story project will include 40,000 square feet of offices, 17,000 square feet of retail, and a private penthouse residence with amenities that include an outdoor pool and hot tub.

944 Fifth St.: Two New York development firms, Sumaida + Khurana and Bizzi & Partners, are teaming up to build a 56,177-square-foot, Class A office building with high interior ceilings and a white façade. As previously reported by the South Florida Business Journal, this office building will also be the first to be designed by famed Spanish architect Alberto Campo Baeza. This project has yet to be named. It also has yet to obtain the 75-foot height limit it needs to move forward. Nevertheless, the development team aims to have the project completed by the summer of 2022.


Source:  SFBJ

No Comments

With JPMorgan And Goldman Sachs, Miami Could Become ‘Wall Street South’

Elon Musk just moved to Texas, but guess who’s (reportedly) moving to South Florida? Jared Kushner, Ivanka Trump, Tom Brady, Gisele Bundchen and the asset management division of Goldman Sachs. Those are the boldface names announced in news reports last week alone.

The New York Post recently reported that JPMorgan Chase CEO Jamie Dimon is open to moving his bank to Florida, too, a move he formerly resisted because he said the schools weren’t good enough.

Miami has been dubbed “Wall Street South” since at least 1990.

In the past year or three, the migration of high-profile business to Miami, and to Florida more broadly, has gained steam. There’s no income tax and the politics are perceived as business-friendly. But the state struggles to fund education, environmental protections and mass transit. There’s also climate change, sea-level rise and saltwater intrusion to consider.

Starwood Property Trust is building a new headquarters at 2340 Collins Ave. in Miami Beach and CEO Barry Sternlicht settled in as a city resident in 2018. Billionaire investor Carl Icahn this summer moved Icahn Enterprises from New York City to the Milton Tower, located at 16690 Collins Ave. in Sunny Isles Beach, just north of Miami Beach. Chicago’s Ken Griffin just dropped $37M for property on exclusive Star Island and there are rumors that his firm, Citadel, will relocate nearby.

By publicly bragging about leaving “dead” New York for Miami, entrepreneur James Altucher sparked a fight over the Big Apple that put Jerry Seinfeld on the defensive. Miami is also becoming a hub for Black startup entrepreneurs: tech investor and Founders Fund partner Keith Rabois recently said he would move to Miami, with the fund opening a small office there.

Further north, hedge funds have been migrating to Palm Beach County. Tennis superstar Serena Williams has lived in Palm Beach Gardens for years, and her husband, Reddit co-founder Alexis Ohanian Sr., recently bragged on Twitter that people were following him.

Further upstate, Fisher Investments opened an office in Tampa, a city that billionaire Jeff Vinik has been championing for years. He’s building a massive development there with Bill Gates’ Cascade Investments.

According to Bloomberg, 20 bankers with Moelis & Co. told boss Ken Moelis they wanted to move to Florida, and he is allowing it. Moelis & Co. is saving about $30M a year since the company pivoted to Zoom meetings over in-person ones during the coronavirus pandemic.

Business development groups like the Downtown Development Authority and Beacon Council in Miami and the Business Development Board of Palm Beach County have helped grease such moves by identifying and bundling incentives.

There’s one billionaire, however, willing to put the kibosh on the hype: real estate investor Jeff Greene.

“This whole idea that financial services, like hedge funds, are going to be this huge jobs creator is ridiculous,” Greene told the Palm Beach Post. “You’ve got hedge funds that come down with six people and they make a big deal that we need all these office towers for them, and we don’t.”

For instance, Miami Beach recently called for office developers to put new Class-A buildings on city-owned surface parking lots. This angered some residents who feel that the city caters to wealthy developers and newcomers while ignoring the needs of the middle class.

Greene has tempered real estate hype in the past. Speaking on a Bisnow panel in 2018, Greene cautioned that low interest rates and an abundance of capital were leading to overbuilding, while Florida workers were largely low-paid.

Greene told the Post last week that Goldman Sachs CEO David Solomon told him the company may move outside of New York, but no location is decided.

“I think some will come down here, they will try it out, move a few people and see if more people come, but I think the idea that every hedge fund is leaving New York City and moving to Palm Beach is just silly,” Greene said. “We will always be a service economy and there is nothing wrong with that.”


Source:  Bisnow

© 2023 FIP Commercial. All rights reserved. | Site Designed by CRE-sources, Inc.