Icon Las Olas and Jorge Pérez

The Related Group is looking to sell Icon Las Olas, a luxury high-rise rental tower in Fort Lauderdale, amid a developer frenzy to sell newly built multifamily projects.

Related hired Cushman & Wakefield to market the development, according to a property memorandum obtained by The Real Deal. A request for offers provides a due date of Nov. 8.

The building, a 44-story, 272-unit tower at 500 East Las Olas Boulevard, was long planned to become a condominium. It was first proposed in 1999, but faced a number of hurdles – including the collapse of the housing market.

Related and Rabina Properties broke ground on the building in 2015, and financed construction with a $105 million construction loan from SunTrust Bank.  It was completed as a rental tower in 2017.

Property records show New York developer John Catsimatidis sold the site to Rabina Properties for $2.5 million in 1998, and a company tied to Related purchased a stake in it in 2006 for $36.15 million.

The property, where units average 1,516 square feet, could eventually be converted to condos. Rents range from about $3,000 to more than $7,500, and the building is 97 percent leased and 92 percent occupied. Icon Las Olas features three restaurants totaling about 21,415 square feet: Etaru Japanese Bar + Grill, Salt Seven Modern Eatery & Lounge, and IT! Italy Café.

Robert Given, Troy Ballard, Zachary Sackley and James Quinn of Cushman are the listing brokers. The brokerage declined to comment, and Related could not immediately be reached for comment.

The high-end development would likely set a per-unit record for Broward County when it sells. In 2017, a joint venture between the Rockefeller Group and Stiles sold Amaray Las Olas in downtown Fort Lauderdale for $133.55 million, or $526,000 per unit.

At that per-door price, Icon Las Olas could sell for more than $143 million.

A handful of recently completed luxury rental towers have recently hit the market, including Broadstone Harbor Beach, a 394-unit waterfront building at 1721 17th Street in Fort Lauderdale. Alliance Residential hired Cushman in September to list the development, and Given said at the time that it could sell for between $160 million and $170 million, based on comparable sales. At that estimate, the price per unit would be $406,000 to $431,000.

Zom hired CBRE, also in September, to sell Monarc at Met in downtown Miami. The 462-unit, 32-story building at 201 Southeast Second Avenue was completed about two years ago. CBRE’s Still Hunter said last month that it could sell for “well over $200 million.”

“September is a season to get institutional fall listings out. We’ve anticipated a pretty heavy amount of offerings during September and October, and we’ll see the next round in January or February,” Given said.

Cushman also recently listed Elan Maison, a 394-unit complex at 6220 Reese Road in Davie. It’s unpriced as well, but Given cited the $306,000 per-door price of Sheridan Village, a comparable property in Pembroke Pines. At that price, Elan Maison could sell for about $121 million.

Peter Mekras, managing director of Aztec Group, said there are more buyers than there are deals. But, “of the shiny new properties, there is a limited buyer pool.”

“Natural forces,” like the rising costs of land and construction financing, are keeping the market in check by slowing the pace of development, Mekras said. Projects being completed now will take months to lease up, but rents are still rising for new buildings.

“I think everybody gets very caught in the number of units and the number of buildings,” he said. “We’re starting to catch up but don’t think we’ve overshot the market in South Florida.”

In a previous interview, Given said he believes there’s a “feverish interest in the suburban markets of Broward.”

Rendering of Modera Biscayne Bay and Soleste Grand Central

UPDATED Oct. 18, 4:30 p.m.: A deal to transform the Unity on the Bay Church in Miami’s Edgewater District into a 29-story mixed-use rental building moved closer to fruition following key approvals by two city of Miami boards.

The Urban Design Review Board on Wednesday granted six waivers for a 541,000-square-foot tower and pedestal with 296 apartments, 11,600 square feet of commercial space and 432 parking spaces proposed by Mill Creek Residential. The waivers included a 30 percent parking reduction and a 10 percent decrease in the side setbacks above the 8th floor of the proposed project, which is called Modera Biscayne Bay.

Last month, the Miami Plat and Street Committee gave tentative approval to the Boca Raton-based developer’s request to replat the church site, including a 100-year-old mansion, located at 412 Northeast 22nd Street and 436 Northeast 22nd Street, into two tracts.

“The really exciting part is what is happening on the ground floor,” said Marissa Neufeld, a Greenberg Traurig associate representing Mill Creek. “We will have two separate significant retail spaces divided into 4,000 square feet and 7,000 square feet. We are also significantly altering the street grid by opening up a dead end on Bayshore Drive and bringing connectivity to the area.”

Mill Creek is under contract to buy the church site, which went on the market two years ago. According to a 2015 South Florida Business Journal article, the asking price was $39.75 million.

Part of the 2-acre lot has a sweeping unobstructed view of Biscayne Bay, and the developer plans to take full advantage of it. According to the plans, the proposed building will have an amenity deck and a pool deck atop the 28th floor. Mill Creek also developed the 297-unit apartment building at 45 Northeast 24th Street called Modera Edgewater.

The board’s green light is the final approval needed by the city.

The Urban Design Review Board also approved a new mixed-use residential tower in Overtown near Brightline’s MiamiCentral project. Estate Investments Group has a pending contract to purchase a development site from Sawyers Walk Limited at 218 Northwest Eighth Street. The developer is planning an 18-story building with a total of 429,000 square feet, of which 6,500 square feet would be commercial space called Soleste Grand Central. The residential component would have 40 units set aside for affordable housing and will have studios, one-bedroom and two-bedroom apartments.

“Everything surrounding us has been a hub for [new development] popping up out of the ground,” said Iris Escarra, a Greenberg Traurig lawyer for Celeste Grand Central. “This area, which for a long time was surface lots, is now coming to fruition.”

The board’s approval is also the final one needed from the city for the project.

Miller Lakes condo

A fractured condo deal near Tropical Park in Miami just sold for $12.45 million.

10th Street Realty, a New York-based real estate investment firm, paid about $160,000 per unit for a controlling interest in the condo complex at 5400 Southwest 77th Court. The deal gives 10th Street Realty 78 of 108 condos, allowing the company to control 72 percent of the association, Deme Mekras of MSP Group said. Mekras and MSP’s Elliott Shainberg represented the buyer in the off-market deal.

Miller Lakes Group LLC, led by Alfonso Martinez, sold the units to the buyer as part of a 1031 exchange, Mekras said. The building was built in 1970.

10th Street Realty is tied to Pyers Property Group in Astoria, according to New York state’s corporate records.

A handful of fractured condo deals have closed in South Florida in recent years. About a year ago, New York-based ESG Kullen paid $17.9 million, or about $151,500 per unit, for a bulk condo deal in Boynton Beach. Axonic Properties, also of New York, picked up 224 units of a 385-unit complex in West Palm Beach for $13.75 million, or about $61,000 per apartment, in 2016.

By purchasing units in bulk, investors can get control of a property’s homeowners association and rent the units out like they would in a typical multifamily deal.

MSP Group recently represented the seller in another fractured condo deal at 5795 West 26th Avenue in Hialeah. The buyer, De La Parte III, bought out 14 out of 22 units in the building for a 64 percent controlling interest in the HOA. The units sold for $2.3 million, or $166,000 per unit.

200 Riverside Boulevard, Marc Kasowitz and President Donald Trump

Upper West Side condominium owners have won their fight against a Trump Organization sign.

The group of residents at 200 Riverside Boulevard is getting a sign reading “TRUMP PLACE” removed from the building, the New York Times reported. It’s joining three neighboring buildings in removing the Trump branding.

The building bought the right to use the Trump name in 2000, according to the report. But many residents haven’t wanted to be associated with the president’s politics, especially when sales at the building have been slumping. According to CityRealty data, units in the building have sold for an average of $1,700 a square foot, about 6.6 percent less than the average Manhattan condominium.

It “makes a very powerful statement,” Eric Chung, whose family owns two units in the building, told the Times.

Trump co-developed the condo building and five others at Trump Place two decades ago. A judge ruled in May that the licensing agreement did not require residents to keep the name in perpetuity.

The Trump Organization’s contract to manage the building at the end of 2019. The board estimates it will cost $23,000 to remove the 20 letters from the building and wash the facade.

Eric Trump declined to comment. [NYT] — Meenal Vamburkar

28-32 West 36th Street and Aron Rosenberg (Credit: Google Maps and LinkedIn)

Real estate executive Aron Rosenberg is facing a $3 million lawsuit from a brother who claims he was cut out on the profits of a Manhattan office portfolio.

Rosenberg, the head of family-run commercial landlord Rose & Berg Realty Group, was sued by his brother Michael, who has stakes in several Rose & Berg-owned entities. His shares in the LLCs range from 20 percent to 50 percent, according to the lawsuit. The entities mentioned in the complaint owns assets such as 28-32 West 36th Street, 22 West 39th Street and 22 West 23rd Street. The largest piece of the package is the West 36th Street property, a 12-story, 58,200-square-foot building that sits between Fifth and Sixth avenues.

“Aron, as managing member of the Companies, has unilaterally decided to no longer treat Michael as a member,” the complaint read.

According to the lawsuit, Michael stopped receiving distributions in 2017. in response, he attempted to gain access to the company’s books, an effort that was blocked by his brother. The dispute escalated to the point that Aron sold a $9 million asset unilaterally and refused to give his brother his 24.2 percent cut from the sale, the lawsuit claims.

Aside from the ownership dispute, Michael is accusing Aron of misappropriating Rose & Berg’s holdings. According to the lawsuit, Aron used family assets as his “personal piggy bank.” He allegedly authorized improper distributions to himself and used company funds to finance his other businesses. Aron was also said to have “acted against the company’s best interest” by giving himself a discount on the space he rented at the West 39th Street property for one of his other companies. Aron did not respond to requests for comment.

Aside from $3 million in compensatory damages, Michael is seeking punitive damages to be determined at trial. He is also requesting an injunction that would prevent his brother from withholding proceeds and access to the company’s books.

Rose & Berg owns properties in New York, New Jersey and South Florida. The company is currently building the Gateway at Wynwood, a 12-story, 464,700-square-foot office project in Miami. The development was one of the largest projects proposed in the area last year.

Morrison Cohen’s Y. David Scharf, the counsel for Michael Rosenberg, did not return requests for comment.

Rendering of Habitat at the Grove and Jill Penman

AGM Builders Group is launching sales of a new luxury townhouse project in Coconut Grove.

The Puerto Rico-based firm is developing Habitat at The Grove, an eight-unit townhome community at 2924 Bird Avenue. The firm hired the Jill Penman Group of One Sotheby’s International Realty to handle sales. Units range from $839,000 to $939,000.

The four-story, 2,381-square-foot townhouses each have three bedrooms, three bathrooms, a rooftop deck and a two-car garage. Two units at the back of the property will include private patios and pools.

The townhouses are under construction and expected to be completed by Spring 2019, said Matt Kujawa, who is part of Penman’s team. Penman said she’s targeting empty nesters from Miami’s suburbs and young couples looking to move from areas like Brickell.

AGM affiliate 2924 Bird Ave Development LLC paid $1.65 million for the 11,500-square-foot site in January, property records show. AGM is led by Armando Muns Sr. and Armando Muns Jr.

Nearby, Metronomic Inc. is building Grovehaus, an apartment community at 3265 Bird Avenue.  Metronomic also recently unveiled plans for a mixed-use office, retail and hotel project at 3280 Grand Avenue in the Grove.

Opportunity Zones map and Bridge Investment Group chairman Robert Morse

A $12 billion real estate investment and management firm is the latest player looking to capitalize on the Opportunity Zones tax incentive development program.

Salt Lake City-based Bridge Investment Group will launch what it’s calling an Opportunity Zones initiative, targeting $500 million in “attractive opportunities” across the U.S.

The Opportunity Zones plan, part of President Trump’s tax overhaul, gives tax incentives to developers and investors for building in low-income areas. There are over 8,700 designated Opportunity Zones across nationwide.

Firms have already set their sights on the possible investment opportunities, and are looking to pour big money into these areas. Arlington, Virginia-based hedge fund EJF Capital as well as the New York-based real estate company RXR Realty have both launched funds seeking to raise at least $500 million toward Opportunity Zones investments. The program could allow them to forgo paying capital gains taxes on their Opportunity Zones investment if it is held for at least 10 years.

Real estate developers believe this could be a boon for new construction, but questions remain about the exact rules and which types of assets would work best under the program’s guidelines. So far, those rules have only been sketched out. But South Carolina Sen. Tim Scott, who is one of architects of the Opportunity Zones measures, said more detailed guidelines are expected at the end of October.

Bridge Investment Group said it could not comment on the structure of its Opportunity Zones program, including whether it is setting up Opportunity Zone funds, until regulations around the program have been released.

The company, which owns more than 30,000 apartment units throughout the country, said it expects many of these Opportunity Zones initiatives will be in new multifamily construction, but the company will consider other options as well such as office properties. The company, which is active in South Florida, bought Fountain Square office complex in Boca Raton for $54.5 million in December. Last fall, it purchased a luxury senior housing development in Lantana for $77.2 million, called the Carlisle Palm Beach.

Inna Khidekel, of Bridge Investment’s capital markets group, said the company first started looking at Opportunity Zones in April, after she attended a private session with U.S. Treasury Secretary Steven Mnuchin. The program made sense for Bridge Investment, she said. The firm has properties throughout the country, with a focus on owner-occupied developments and older, Class B space, which are well suited for the program, Khidekel added.

Jonathan Slager, the company’s co-CEO, said it wants to invest in projects that were a good investment, where the tax incentive would just be an added benefit. But he added that Opportunity Zones investments would be about 300 basis points more attractive than an ordinary investment because of those tax incentives.

The company said it is looking to invest alongside local sponsors and developers in qualified Opportunity Zones throughout the country. Metro areas would likely make more sense rather than rural areas, they said.

If you make extensive energy-conservation and other green improvements to your home, will they earn you a premium price for the entire house when you go to sell?

For years, the easy answer has been, oh yeah, absolutely: Green is good, everybody knows that saving energy is a no-brainer, and buyers will pay more to get it. There’s research to back that up. A study of California sales found that green-certified homes sold for between 2.1 percent and 5.3 percent more than similar homes with minimal or no green features. A 2015 study of renovated homes in Washington D.C. concluded the average price premium was around 3.46 percent. A study last year in Texas found that green-certified homes sold for 8 percent more than comparable properties.

Home builders have told researchers that two-thirds of their customers say they’re willing to pay higher prices for homes with significant green features, such as energy-efficient appliances, heavy-duty insulation, water conservation, healthy indoor air quality and others.

So is that it? Going green always nets you more green — case closed? Not so fast. Two recent studies by appraisers with long experience valuing green homes suggest the answer is more nuanced. Some of the researchers’ findings in brief: Though generally it’s true that green improvements will earn you at least a little higher price, the size of the premium may depend on external factors you hadn’t thought about:

— Does the Realtor you picked to list your home know enough about green improvements to market them effectively? Is the agent competent to market what you’ve got to sell?

— Does the agent have any formal training in this area, evidenced by a green designation in her or his own listing presentation or advertising?

— Does the listing for your home in the local Multiple Listing Service (MLS) contain crucial information about your green improvements, such as a “green addendum” that details the special features that make it energy-efficient?

— Does the local MLS have “green fields” that allow listing brokers to fill in the blanks with appropriate detail so that other agents — the ones who are going to find your buyers — know what your house really offers in terms of green improvements?

— Do Realtors in the area know much or anything about rating systems such as HERS, LEED, ENERGY STAR or others? Do they know where to turn locally to obtain a rating? (HERS stands for Home Energy Rating System; LEED is a globally recognized rating system for residential and commercial green real estate; ENERGY STAR is a federally developed rating for appliances, building materials, entire houses and commercial property.)

If none of these key factors is working for you, your green features may be impressive, but may not earn you much of a premium. Worst case, they might even get you nothing.

Sandra Adomatis, a Florida-based real-estate appraiser and nationally known expert on valuing green improvements, headed the research teams for both of the new studies — one focusing on “paired-sale” transactions of homes in the San Francisco Bay area, the other in Virginia and Maryland. A paired-sale analysis examines price differences in transactions, comparing virtually identical homes, one of which has significant green features. In the California study, green-certified houses sold for an average 2.19 percent premium. In some Virginia locations, where the local certification company, Pearl Home Certification, had marketed its services to realty agents, the average price premium was 5 percent. But in areas where Pearl had not yet reached out to Realtors and provided information on how to market certified properties, some premiums dropped to 1 percent or lower.

Adomatis, author of the Appraisal Institute’s manual “Residential Green Valuation Tools” and developer of training courses on the subject, told me that in interviews, some agents who listed certified green properties in California admitted they “had no clue what they were selling.” A few even said, “I don’t know what makes a house green.”

That’s a direct violation of the code of ethics of the National Association of Realtors, which prohibits members from marketing types of property that are “outside their field of competence” and training. The association offers members in-depth courses on green-home marketing and has urged MLS’s across the country to include “green fields” in their listings.

Bottom line: If you want to reap the maximum return from your green improvements, make sure that your Realtor understands what they are and how best to sell them.

Next week there will be two real estate events in South Florida.

On Oct. 24, the Mortgage Chicks at AnnieMac Home Mortgage are hosting their Woman in Real Estate Safety Course & Happy Hour – Broward from 2 p.m. to 4 p.m. at Cooper’s Hawk Winery & Restaurant, 10310 Pines Boulevard. Round out Realtor Safety Month with a discussion of Clear Boundaries – Every Business Women’s Essential Guide. Learn how to stay safe as a business woman in the real estate industry.

On Oct. 26, Pini Real Estate is hosting its Pre-Halloween Mixer from 6 p.m. to 10 p.m. at its headquarters, 14380 SW 139th Court. Come for a night of spooky fun and networking.

To search for future industry events or browse past ones, click here. And to submit more industry events, please reach out to events@therealdeal.com.

Vacasa CEO Eric Breon and a vacation home (Credit: LinkedIn)

A startup that manages over 10,000 vacation rental properties just raised more than $60 million in a funding round.

Vacasa, a vacation rental management company, closed $64 million in a round led by existing investor Riverwood Capital and others, the company said in a statement. That brings its total capital raise to $207.5 million.

Portland, Oregon-based Vacasa launched in 2009 and has grown to overtake Wyndham Vacation Rentals as the largest vacation rental property manager in North America. The new funding will, in part, go toward the company’s domestic and international expansion.

“Vacasa has consistently grown 60 percent year over year, but we’re still only two percent of the market,” CEO and founder Eric Breon said in the statement. “We see this as an opportunity to strengthen our balance sheet while continuing to expand our geographic reach, adding new and unique programs, and investing in our technology platform.”

The company currently manages 10,600 vacation rental properties in 23 U.S. states and 16 countries. Earlier this month, Vacasa acquired Oasis Collections, which runs a marketplace similar to Airbnb but focused on high-end vacation rentals. It also launched Vacasa Real Estate, a network that connects agents with buyers and sellers of vacation properties.

Vacasa’s other investors include Level Equity, NewSpring Capital and Assurant Growth Investing. Level Equity led the company’s $40 million Series A round in 2016. The company announced a Series B of $103.5 million a year ago.

Vacasa is the latest in a series of real estate companies raking in fresh capital. Last month, SoftBank’s Vision Fund invested $400 million in home-flipping company Opendoor. Meanwhile brokerage giant Compass announced a $400 million Series F led by the Vision Fund and Qatar Investment Authority.

On the investor side, Fifth Wall Ventures launched a $400 million real estate technology fund earlier this year. And Corigin Ventures has raised $22 million, with plans to bring in another $27.9 million by the end of the year.

Bank OZK CEO George Gleason (Credit: iStock)

Bank OZK’s stock tanked almost 24 percent in early morning trading on Friday after it reported two large commercial real estate write-offs in its third quarter earnings. The bank is one of the largest condo construction lenders in South Florida, New York City and Los Angeles.

The Little Rock-based regional bank, with just over $22 billion in assets, also reported that net income declined 23 percent to $74.2 million in its third quarter from the same period of the previous year, due to these write-offs. Bank OZK’s earnings are closely monitored by analysts since it is such an active real estate lender.

Bank OZK reported that the two write-offs during the third quarter were in its Real Estate Specialties Group (“RESG”) portfolio and were related to properties in South Carolina and North Carolina from loans originated in 2007 and 2008.

The bank said in its management comments that accompanied earnings that its South Carolina charge-off was secured by a regional mall, which has suffered from both “declining property performance and increasing interest rates.” The project was further impacted by uncertainty related to anchor tenants Sears and JC Penney, according to the bank.

The North Carolina charge-off was secured by a multi-phase land, residential lot and residential home project, according to the bank. The homes have not sold well, the bank said, in part due to “cheaper pricing on existing homes.”

In total, these properties had allowance allocations totaling $19.1 million as of June 30. But after new appraisals, which were much lower than it initially presumed, the bank said it would have to write down each credit to about 80 percent of its recent appraised value. The combined charge-offs on the two loans in the third quarter came to $45.5 million. Since the bank already had the $19.1 million allowance, it had to make an additional provision expense of $26.4 million. Had it not, its earnings would have slightly surpassed its third quarter 2017 earnings of $96 million.

The bank said “other than these two substandard and one watch credit, the credit quality of the RESG portfolio is excellent.”

Bank of the Ozarks also reported that its net interest margin, or the difference between the interest income banks earn and what they pay out, was down 37 basis points from the third quarter of 2017 to 4.47 percent. The bank said this was due to a lower than expected yield on non-purchased loans.

At 11 am, the bank’s stock was trading at $26.57, down 23.8 percent from its opening price.

Bank OZK recently provided the biggest condo construction loan in the Miami area, $558 million for The Estates at Acqualina in Sunny Isles Beach.

The regional bank provided more than $1.2 billion in construction loans in the Miami metropolitan area from 2013 through 2017, according to its 2017 annual report.

Bank OZK changed its name from Bank of the Ozarks in July in an effort to free itself from “the limitations of a name tied to a specific geographic region,” according to a statement from the bank at that time.

Rendering of FPL’s Palm Beach Gardens facility

If all goes according to plan, FPL’s proposed corporate campus in Palm Beach Gardens will be built to withstand “the big storm.”

Florida Power & Light Co. just submitted plans for a 250,000-square-foot facility designed to withstand Category 5 hurricanes and 500-year flood risks. The building at 11500 RCA Center Drive would hold about 1,000 employees and feature solar panels, according to the Palm Beach Post.

FPL will keep its headquarters in Juno Beach. Property records show the utility company paid $4.9 million for a portion of the 86-acre site in March, but has been assembling the land since 2011.

The company has been busy buying and selling South Florida real estate. Over the summer it purchased nearly 1,300 acres near Royal Palm Beach for $19.3 million. It also recently listed a 69-acre waterfront property in Palmetto Bay, which could fetch about $50 million.  [Palm Beach Post] – Amanda Rabines

Robert Toll (Credit: Getty Images)

Toll Brothers’ co-founder and executive chairman is stepping down at the end of the month.

Robert Toll will remain on the company’s board of directors and serve as a special adviser effective Nov. 1, the homebuilder said in a statement. CEO Douglas Yearley will be chairman of the board.

“Doug Yearley’s appointment to the role of chairman of the Board of Directors represents the culmination of the leadership transition process we began when Doug assumed the position of chief executive officer in 2010,” Toll, 77, said in the statement.

Toll Brothers, one of the country’s largest luxury homebuilders, has seen a profit boost this year. In the third quarter, net income climbed 30 percent thanks to strong new home sales amid housing supply constraints.

Its City Living division, which primarily focuses on the New York City metro area, has been focused on reducing inventory this year. In July, the division offered buyer incentives to spur sales.

44 Star Island Drive, Techrin Hijazi and Lourdes Alatriste

A development site on Miami Beach’s Star Island is back on the market at a reduced price.

Shay Kostiner is relisting the 48,266-square-foot lot at 44 Star Island Drive for $18.4 million, marking a $5.6 million cut from its original asking price of $24 million about two years ago, and about a $1 million reduction from its most recent price of $19.44 million.

Kostiner, who was formerly managing director of Fifth Ave Capital Partners, hired Techrin Hijazi of William Raveis Real Estate and Lourdes Alatriste, a partner at Engel & Völkers, to list the property.

Star Island is home to celebrities and ultra wealthy business people in South Florida, including Gloria and Emilio Estefan, Sean “Diddy” Combs, Phillip and Patricia Frost, Lennar Executive Chairman Stuart Miller, DenTek Oral Care founder John Jansheski, and Gerald and Joan Robins.

Kostiner’s property features 209 feet on the water and comes with approved plans for a 20,000-square-foot mansion with an eight-car garage and pools fronting the water and on the rooftop. Kostiner secured city of Miami Beach approvals for the property, designed by Spanish architect Ricardo Bofill, in 2016. He paid $7.25 million for the 1935 house in 2010 and later knocked it down.

Alatriste said Hijaze, who is based in Naples, will focus on finding a buyer from the Northeastern U.S., while Alatriste will market the property to her clients around the world. The co-listing agents will host an event on Star Island next week to launch the property.

The Opportunity Zones Map (Credit: NCRC)

UPDATED, 3:02 p.m., Oct. 19, 2018: Real estate developers and fund managers with questions about how to invest in the Opportunity Zones program are beginning to get more detailed answers. The U.S. Treasury Department today released more guidelines.

The program, enacted late last year as part of the Trump administration’s tax overhaul, provides tax deferments and tax breaks for developers who invest in projects in designated low-income neighborhoods across the country.

Among the new guidelines is a definition of a 70-30 rule. It specifies that a business will qualify for the program if 70 percent of the company’s property is located within a designated zone, according to the Wall Street Journal.

Treasury officials told the paper the initial set of rules will assist investors in making decisions to start projects.

Developers will also be granted an additional 30 months to hold working capital for residential and retail construction projects, easing a concern among developers.

Recently, investment firms and real estate developers have rushed to set up Opportunity funds to invest in these zones, as a looming deadline to take full advantage of a 15-percent tax break will expire at the end of 2019. Among the firms are Fundrise, EJF Capital and a joint venture of Youngwoo & Associates and EquityMultiple, which have each announced plans to raise $500 million funds. RXR Realty is also reported to be in discussions to set up a fund. [WSJ] — David Jeans

East End Capital showcases newly renovated 100 Biscayne

East End Capital recently showcased its $10 million makeover of 100 Biscayne in downtown Miami.

Built in 1965, the 30-story tower at 100 Biscayne Boulevard, formerly known as the New World Tower, was acquired by East End Capital in 2016 for $84 million. Tenants include Bulgari, Luxottica, LVMH and Zyscovich Architects. In addition to inking a lease at the tower, the architecture firm also designed its renovations.

Swire unveils Steven G. designed collection at Rise

Swire Properties and interior designer Steven Gurowitz recently unveiled 10 newly designed condo units at Rise at Brickell City Centre.

Rise, a 380-unit, 43-story condo tower within the mixed-use development at 701 South Miami Avenue, consists of one-to-three-bedroom condos starting in the mid $600’s.

OKO Group sponsors exhibit at PAMM

As part of its partnership with the Pérez Art Museum Miami, OKO Group sponsored an exhibition celebrating the 35th anniversary of Christo and Jeanne-Claude’s Surrounded Islands art installation, which bordered Miami Beach’s barrier islands with large pink fabrics.

Park Plaza Apartments

A joint venture between Coastline Management and Tower Capital Group paid $33.2 million for an apartment complex in Miami Gardens.

EB Real Estate Group, an investment firm in New York, sold the 234-unit Park Plaza Apartments for about $142,000 per unit, according to a press release. Berkadia’s Tal Frydman, Yoav Yuhjtman and Nicholas Perrone represented the buyer and seller.

Freddie Mac provided a $25.4 million loan.

Property records show EB Park Plaza LP paid $22.7 million for the 8-acre complex in 2016. It is next to a new Topgolf facility.

The development was completed in 1972 and includes a fitness center, laundry facilities, a grill/picnic area, and business center. The buyer plans to renovate the remaining units and add a swimming pool over the next 18 months, according to Isadore Cohen of Tower Capital.

Rents range from about $1,200 a month to $1,650 a month, and Cohen plans to raise rents as they renovate the complex. It is currently 96.5 percent leased, he said.

Eyal Mehaber, president of Coastline Management, said in a statement that he hopes to capitalize on the shortage of more affordable apartments in eastern Miami-Dade County. “We believe that the natural progression will be for working families to push westward within the county,” he said.

Miami Gardens is also home to Hard Rock Stadium, where the Miami Dolphins play. The county recently approved plans for a $70 million training facility next to the stadium.

Gil Dezer and land previously owned and/or currently owned by Publix, marked in yellow, while Dezer’s long-time owned properties are marked in red

Gil Dezer’s Dezer Development just closed on another piece of Sunny Isles Beach real estate – indicating the Porsche Design Tower developer may be embarking on yet another condo project in the area.

Property records show an entity tied to Dezer Development bought nearly an acre of waterfront land at 18320 Collins Avenue from Publix Super Markets for $31.7 million. Publix will retain ownership of the adjacent site of its recently renovated supermarket.

Since Dezer Development also owns land immediately to the north, the company now controls roughly 4.5 acres of land with significant frontage on the Intracoastal Waterway. Documents filed with Miami-Dade County indicate that Dezer Development may be planning a condo tower with a marina component on the parcel.

Dezer said in a statement that plans for new buildings are still under consideration. “We are still finding out the best use of the newly acquired property and the adjacent property that we have owned for about 20 years,” he said.

Records show Publix bought the land for $1.36 million in 1998.

Dezer previously told The Real Deal that the property features 13 acres of submerged land, which could be developed into a marina. He also mentioned a strong demand for product in the $500,000 to $1 million range in the western side of Sunny Isles Beach.

More and more multimillion-dollar condos are flooding Sunny Isles Beach. There is currently a 17-year supply of condos priced at $5 million or more in Sunny Isles, according to a recent report by EWM Realty International.

Joel Altman, Seth Wise

BBX Capital’s real estate arm announced on Friday that it plans to purchase a 50 percent interest in the Altman Companies for $22.7 million, expanding the company’s luxury multifamily portfolio.

The deal gives BBX Capital a big stake in a company that owns and manages more than 24,000 apartment units across the country with a strong focus on South Florida.

Fort Lauderdale-based BBX Capital Real Estate will acquire a stake in Altman Companies’ entire platform, which includes Altman Development Company, Altman-Glenewinkel Construction and Altman Management Company. The deal is expected to close at the end of the year, according to a release.

BBX Capital Real Estate also announced that in four years it will acquire an additional 40 percent of the Altman Companies for $9.4 million, giving it a 90 percent interest in the company. Joel Altman will continue to remain as CEO of the company, according to the press release.

Altman said the deal will give the Boca Raton company more scale and the ability to do bigger projects in markets across the country.

For BBX Capital, the deal was attractive, in part, because of Altman Companies’ expansive platform in development, construction and management, which gives the company new ways to generate revenue, according to Seth Wise, president of BBX Capital Real Estate.

BBX Capital Real Estate’s parent company, BBX Capital, is a diversified portfolio company led by Alan Levan. The company owns a 90 percent interest in Bluegreen Vacations, a timeshare vacation rental company.Altman Companies is best known for its rental communities branded as Altís. In South Florida, Altman recently completed Altis Boca Raton in the Park of Broken Sound. 

Clockwise from top left: Softbank share prices sink as Saudi Arabia is implicated in Jamal Khashoggi’s death, Sears files for bankruptcy protection, Microsoft co-founder Paul Allen dies at 65, and Americans find renting a home to be more affordable than buying one, report says.

SoftBank share prices sink as Saudi Arabia is implicated in Jamal Khashoggi’s death
SoftBank Group’s shares saw their steepest price drop in two years this week after Turkey’s government claimed disappeared journalist Jamal Khashoggi was tortured, murdered and dismembered by Saudi Arabian authorities, Bloomberg reported. The country is “the biggest outside investor” in SoftBank’s $100 billion Vision Fund — a factor that could deter investors from getting involved with the group. “If the Saudis are implicated in the murder, you might find a lot of investors not willing to take their money,” Sanford Bernstein analyst Chris Lane told the outlet. “This could start to freeze the Vision fund out of future deals.” It’s not yet clear how the price drop will affect SoftBank’s talks with WeWork, in which it’s interested in buying a majority stake. [TRD]

Sears files for bankruptcy protection, plans to close 142 stores
Last week, Sears Holdings hired bankruptcy advisers ahead a possible bankruptcy filing, and on Monday, the company officially filed for bankruptcy protection. Sears had already announced plans to close 46 stores, and on Monday said it would close an additional 142 stores. The company tried to bandage its financial wounds with the closings, having lost more than $11 billion since 2011, but its efforts weren’t enough to stave off bankruptcy. The company’s CEO Edward Lampert, who has tried to help Sears avoid its current fate, will be stepping down from the position. The news comes with vacancy rates at malls across the country at a seven-year high in the third quarter. [TRD]

Microsoft co-founder Paul Allen dies at 65, leaving behind expansive real estate portfolio
Paul Allen is best known as the co-founder of Microsoft, but the billionaire — who passed away on Monday at the age of 65 due to complications of non-Hodgkin’s lymphoma — was also a major real estate player. Allen’s portfolio included a 120-acre site in Beverly Hills that he listed for $150 million earlier this year, a 13,000-square-foot mansion in Beverly Hills, two apartments in Manhattan, 11 mansions in Seattle, a hilltop mansion in the French Riviera and a house in London. He also had a significant impact on Seattle’s real estate landscape, developing one neighborhood into Amazon’s home, and millions of dollars into an affordable housing initiative, as well as efforts to combat homelessness in the city. Allen reportedly had a net worth of around $20 billion, and gave more than $2 billion to philanthropic causes. [TRD]

Americans find renting a home to be more affordable than buying one, report says
A majority of Americans believe that paying rent for a home is more affordable than shelling out money to buy a home, the Wall Street Journal reported. Freddie Mac data shows that 78 percent of Americans consider renting the less expensive option, compared to 67 percent half a year ago — although many still struggle to pay their rents, according to the outlet. Fifty-eight percent of people who currently rent a home, meanwhile, said they don’t have any plans to buy an abode. The outlet attributed this to high mortgage rates, interest rates and housing prices. Home sales across the country have been slowing due to low inventory and high prices, and that preference on the part of people seeking housing could prolong the trend. [TRD]

MAJOR MARKET HIGHLIGHTS

Former NYCHA chair who resigned amid lead paint scandal joins building contractor
The former chair of the New York City Housing Authority, Shola Olatoye, has accepted a job with building contractor Suffolk, as vice president in charge of business development in New York. Olatoye resigned in April after news broke that NYCHA hadn’t inspected thousands of apartments for lead paint, and had covered up the lack of inspections. New York City Mayor Bill de Blasio, however, defended Olatoye, who was at the helm of the agency for four years. “The Housing Authority that the Chair inherited four years ago faced bankruptcy, an inability to make basic repairs and an alarming surge in violence. She was a change agent from Day One,” he said. Suffolk has been trying to expand in New York, and Olatoye’s “knowledge of the New York real estate development landscape” will contribute to that, its New York president Charlie Avolio said in a statement. [TRD]

Downtown Miami luxury high-rise offering residents yacht service to the beach
Residents of a luxury high-rise in downtown Miami will be able to take a yacht to the beach. G&G Business Developments and International Booking Services LLC are offering the butler service to people who live at the 391-unit Aston Martin Residences. The offer comes amid a push by luxury condo developers in Miami to entice buyers with more amenities, as there’s currently an excess supply of luxury units in the Greater Downtown Miami area, according to a report released in August. At one development in Sunny Isles Beach, for example, the developer is offering amenities including Formula One simulators, an ice-skating rink, a movie theater and bowling lanes. [TRD]

Warren Buffett sells his Laguna Beach home at a discount, but still profits
Warren Buffet has sold his six-bedroom beach house in Laguna Beach, the Wall Street Journal reported. The Berkshire Hathaway chairman listed the house for $11 million in February 2017, and only ended up selling it for $7.5 million, but he still made a hefty profit, as he bought the house for $150,000 in the 1970s, according to the outlet. The sale mirrors Buffett’s philosophy that a property owner shouldn’t count on “making a good sale.” “Have the purchase price be so attractive that even a mediocre sale gives good results,” Buffet wrote in 1963. An unidentified couple purchased the property. Buffet said he felt “very good about the couple who bought the house,” adding that he “hope[s] their family gets as much enjoyment from it as [his] family did.” [TRD]

Chicago, St. Louis take top spots on list of most affordable big cities to buy a home
St. Louis, Missouri is the most affordable place in the U.S. to buy a home, followed by Chicago, according to new data from consulting firm John Burns Real Estate. While purchasing a home is expected to become harder in cities like New York, Philadelphia and Seattle, the firm predicted that Chicago will continue to be an affordable place to do so into 2021, Crain’s reported. The monthly payment on a median-priced home in the Windy City was expected to stay at around 23 to 24 percent of the median household income through that year. “Chicago took it on the chin during the last downturn and is just getting up off the mat when it comes to economy and housing market recovery,” Rick Palacios Jr., the director of research at John Burns, told the outlet. [TRD]

Washington D.C. is trying to pass legislation that would place restrictions on Airbnb rentals
Washington D.C. could crack down on Airbnb soon, Reuters reported. Its district council on Tuesday was expected to vote on legislation that would impose strict regulations on home rentals. The vote ended up being postponed, according to the Washington Post, but the legislation previously passed unanimously in a preliminary vote. The legislation’s detractors have expressed concerns over the millions of dollars the city could lose as a result. D.C. Chief Financial Officer Jeffrey S. DeWitt, for one, said the bill could “eliminate nearly all current short-term rentals.” But its sponsors said that issue could be addressed, adding that they were optimistic it would eventually be approved. [WaPo]

Netflix buys film studio in Albuquerque, New Mexico
Netflix has snapped up a film studio in New Mexico, it said in an announcement. The company bought ABQ Studios in Albuquerque as part of “a plan to bring as much as $1 billion in production to the state over the next 10 years,” according to The Verge. Shows including Breaking Bad and Godless have filmed in the state. “Our experience producing shows and films in New Mexico inspired us to jump at the chance to establish a new production hub here,” Netflix’s vice president of physical production Ty Warren said in a statement. The purchase and subsequent production are expected to create 1,000 new jobs for people who live in the area. [TRD]