Solera at Lakewood Ranch (Credit: maps4news-com / @ HERE Gatehouse Media)

Home builder DR Horton has a contact to buy about 140 acres in Manatee County and plans to build 675 homes there.

DR Horton has a contract to buy about half of a 278-acre site from Solera Landco LLC, which bought the entire site for $9.85 million.

Solera got a $19 million loan from Trez Capital Corp. to finance the land acquisition and residential construction.

Solera will keep about half of the land for the residential development, called Solera at Lakewood Ranch.

About three acres of the 278-acre site will be allocated to such amenities as a playground and park, and another 141 acres remain open space.

The land is at 5010 Uihlein Road in the master-planned Lakewood Ranch development, located northwest of Sarasota.

Residential construction at Lakewood Ranch started in 1994, and when built out, the master-planned community could have more than 30,000 homes. [Sarasota Herald-Tribune] – Mike Seemuth

Margaritaville Hollywood Beach Resort

The developer of the Margaritaville Hollywood Beach Resort sued to prevent the municipal government of Hollywood from collecting $1.7 million of the proceeds from the sale of the resort.

Developer Lon Tabatchnick and his partner, Starwood Capital, collected $190 million in April from the sale of Margaritaville, which was built on land leased from the Hollywood.

Tabatchnick agreed to pay the city 5 percent of any profit from the sale of Margaritaville but told city officials that he and Starwood Capital didn’t make a profit on the sale.

The city contributed at least $23 million to cover part of the development cost.

In a certified letter dated Oct. 15, Hollywood city attorney Doug Gonzalez gave Tabatchnick and Starwood Capital 30 days to pay the city $1,719,962.41.

Tabatchnick and Starwood Capital contend that city officials failed to include a parking garage when they calculated the total cost of the Margaritaville development. [Sun-Sentinel] – Mike Seemuth

(Credit: Airbnb, iStock)

The priciest Airbnbs aren’t in the country’s big coastal hubs.

The top spot goes to a home in Red Rock Ranch, Missouri, Forbes reported. The property is sprawled across 80 acres and can accommodate around 16 guests — for $12,000 per night.

(Credit: Airbnb)

Guests there also have access to a private chef and guns for target shooting. For comparison: that price tag, for one night, could pay for almost three years of rent on an average house in the area, the report said.

A yacht in Juneau is home to the second most expensive Airbnb, at $10,000 per night. That price includes a 95-foot yacht that can host up to six people — plus a hot tub and indoor fireplace.

(Credit: Airbnb)

And the third spot went to another $10,000-per-night rental in Hamilton, Illinois. The four-bedroom property is along the Mississippi River and spans an entire city block. It includes an optional private chef and an on-site gym, hot tub and pool, the report said.

(Credit: Airbnb)

The sky-high price tags are far steeper than the average luxury Airbnb, which costs $4,600 per night. On the other end of the spectrum, the cheapest rentals are in North Dakota and Iowa. The lowest cost per night is $899 in North Dakota, and the lowest cost per room is $150 in Iowa, according to Forbes.

But those willing to forgo a luxury rental can find even a $32 per night home in Phoenix, Arizona. [Forbes] — Meenal Vamburkar

Brightline train crosses the Hillsboro Canal near Deerfield Beach (Credit: David Patch / Toledo Blade)

Martin County settled a lawsuit against passenger train operator Brightline, and terms of the settlement include splitting the cost of building at least one train station.

But Indian County, another plaintiff in the lawsuit, rejected the settlement and opted to spend an additional $1 million in a court fight to block Brightline’s planned expansion from South Florida to Orlando.

An organization opposed to the rail service expansion, Citizens Against Rail Expansion in Florida (CARE FL), joined Martin County in accepting the settlement.

Martin County commissioners approved the settlement in a special session held Saturday in Stuart, ending a multi-year legal fight that has cost the county approximately $4 million.

Indian County has spent close to $3 million to prevent the expansion of Brightline’s rail service to Orlando, not including the newly authorized $1 million expenditure on legal costs.

Martin County and CARE FL agreed to settlement terms that include safety upgrades along the railroad tracks that Brightline would use to carry passengers to and from Orlando.

Brightline also settled with Martin County in exchange for establishing so-called quiet zones where the passenger train operator would not use horns, helping the county cover rail-related maintenance costs, and increasing boat-navigation guides under railroad bridges.

Other terms of the settlement would require Brightline to cover half the cost of building at least one train station in the Treasure Coast region, which includes Indian, Martin and St. Lucie counties.

Brightline announced Nov. 16 that it will change its name to Virgin Trains because billionaire Richard Branson’s Virgin Group agreed to become a minority investor in the company.

Under the name Virgin Trains USA, the company also filed an S-1 form on Nov. 16 with the Securities and Exchange Commission to sell its stock to the public. [Sun-Sentinel] – Mike Seemuth

(Credit: Wikimedia Commons, Birth.Movies.Death.)

It turns out the U.S. is a majority-suburban country, according to the responses to a new question in HUD’s biannual housing survey.

The results of the 2017 American Housing Survey (AHS), which included a “neighborhood description question” for the first time, found that 52 percent of respondents described their neighborhoods as suburban, just 27 percent described their neighborhood as urban and 21 percent as rural, according to City Lab.

The survey marks the first time government data has featured “suburban” areas distinct from “urban” areas. It also underscores a glaring hole: there is no official federal definition of a suburb. Shawn Bucholtz, who leads HUD’s Housing and Demographic Analysis Division, is campaigning for that to change, along with economist Jed Kolko.

Together, they cross-referenced the AHS results with existing government definitions and found that, in both the Census Bureau’s Urban Areas and the Office of Management and Budget’s Core-based Statistical Areas, there were more “suburban” respondents than “urban” ones. Even “central cities” contain major self-defined suburban populations.

For example, 18 percent of respondents in New York City described their neighborhood as suburban. The share of suburban respondents was 26 percent in Chicago and 45 percent in Los Angeles, while Miami turned out to be more than half suburban, at 53 percent.

The federal geographic definitions are up for discussion in the coming years. [City Lab]–Kevin Sun

Brad and Pam Miller (Credit: CAPEHART)

Residential real estate broker Brad Miller and his wife Pam Miller have left Corcoran Group to reopen their own brokerage firm.

The couple reopened Bradford P. Miller Real Estate in West Palm Beach, which they closed six years ago to join Corcoran Group.

The Millers, who originally opened their brokerage firm in 2004, decided to join Corcoran Group in 2012 because its technological capabilities were superior.

But Brad Miller told the Palm Beach Daily News that boutique brokerage firms now have the Internet-based marketing power they need to compete with larger firms.

Brad Miller, a director and former president of the Palm Beach Board of Realtors, and Pam Miller have been involved in several eight-figure real estate deals in Palm Beach this year.

In June, the Millers represented Anheuser-Busch heir Robert R. Hermann Jr. when he sold his Palm Beach house at 534 Island Drive for about $12.5 million.

The couple also represented Hermann last February, when his family trust bought a house at 210 El Vedado Road in Palm Beach for $11.29 million.

Last January, the Millers negotiated on behalf of the buyer in the $17.59 million sale of a vacant lot at 910 South Ocean Drive in Palm Beach. [Palm Beach Daily News] – Mike Seemuth

Leisa and Matt Erickson

Engel & Völkers opened a new residential real estate brokerage in St. Petersburg, the firm’s fourth location in the Tampa Bay area.

The new brokerage, Engel & Völkers St. Pete, is owned and operated by Leisa and Matthew Erickson, who formerly did business as Leisa Erickson & Associates.

“We have been watching Engel & Völkers’ expansion in the Americas for some time now and knew it would be a perfect fit,” Leisa Erickson said in a prepared statement. “The connected global culture of Engel & Völkers, including the yachting and aviation divisions, provides expanded connections for our advisors globally.”

Engel & Völkers St. Pete opened for business Nov. 12 in temporary office space at 433 Central Avenue, Suite 209.

The new brokerage will hold a grand opening early next year at its permanent location, 102 Second Avenue Northeast in downtown St. Petersburg.

Engel & Völkers St. Pete hired three agents prior to opening its temporary office and plans to expand to 20 agents by mid-2019.

In the Tampa area, Engel & Völkers now has locations in Bellair, Madeira Beach, south Tampa and St. Petersburg, the second-largest city in the area and the fifth-largest in Florida. – Mike Seemuth

Amazon distribution center at Sawgrass International Corporate Park in Sunrise (Credit: Sun-Sentinel)

Amazon decided against putting its second headquarters in South Florida, but the online retailer opened another distribution center to ensure speedy deliveries in the tri-county area.

Amazon has opened a distribution center in 100,000 square feet at the Sawgrass International Corporate Park in Sunrise, according to Lou Sandors, the city’s economic development director. The space formerly was occupied by an online retailer called Fanatics.

Amazon spokeswoman Amanda Ip told the Sun-Sentinel that the company has 75 facilities nationwide like the new one in Sunrise.

Last year, the online retailer leased 50,000 square feet at 101 Northeast 23rd Street in the Wynwood area of Miami to support its Prime Now delivery operations.

In 2016, Amazon leased an 800,000-square-foot warehouse at Miami Opa-locka Executive Airport and a 117,235-square-foot space at the South Florida Logistics Center in Miami at 3200 Northwest 67th Avenue in Miami.

South Florida was one of 20 metropolitan areas on the short list to become the home of Amazon’s second headquarters, or HQ2, which will be established in New York City and Arlington, Virginia. [Sun-Sentinel] – Mike Seemuth

2500 Gordon Drive in Naples prior to the demolition of the mansion (Credit: Realtor.com)

A 24-year-old mansion in Naples that sold in June for $48.8 million – the highest price on record for a home in Southwest Florida – has been demolished to clear the site for a new mansion.

The mansion at 2500 Gordon Drive in Naples set the record for South Florida’s priciest home even though it sold for 25 percent less than the seller’s $60.9 million asking price.

Built in 1994, the six-bedroom, nine-bathroom mansion in the Port Royal area of Naples occupied 5.49 acres along the Gulf of Mexico.

The buyer, an entity called 2500 Gordon Land Trust, plans to build a new residence on the site. The Naples Daily News reported that Newbury North Associates will build the new residence, and architect John Cooney will design it.

A confidentiality agreement prohibits disclosure of the identities of both the buyer and the seller, according to Vicki Tracy, chief operating officer of brokerage firm Gulf Coast International Properties.

Mike Austin, owner of BJ Excavating, told the Daily News that the demolition took two months and was completed in early November.

Austin also told the newspaper that the torn-down mansion was “an exclusive property, and the home that’s going there matches up with it.” [Naples Daily News] – Mike Seemuth

The Daytona Beach Convention Hotel & Condominiums construction site (Credit: Ox Blue | YouTube)

Documents in a federal lawsuit show that the Russian-born developer of an oceanfront resort in Daytona Beach controls a company that committed tax fraud.

An investigation by the Internal Revenue Service found that a company controlled by Alexy Petrovich Lysich wired $710,000 to a shell company in the Bahamas and falsely claimed the amount as a business expense.

The IRS ultimately ordered Lysich, a native of St. Petersburg, Russia, to pay taxes on the $710,000.

The Panama Papers, 11.5 million documents leaked in 2015, revealed details of more than 200,000 offshore entities including the shell company in the Bahamas linked to Lysich. The International Consortium of Investigative Journalists has reported that some of the offshore entities have been vehicles for committing fraud, evading taxes and avoiding international sanctions.

Lysich’s links to the Bahamian shell company and the IRS investigation are detailed in a lawsuit against him and his family and three of his companies, including Photogroup, the company Lysich is using to build a Daytona Beach resort called the Daytona Beach Convention Hotel & Condominiums.

Semyon Kremer, a former business partner of Lysich, filed the lawsuit, which alleges that Lysich and his father abruptly ended their partnership with him after he refused to help them make the $710,000 payment to Bahamian shell company Solinger Trading Limited look like a business expense.

Kremer’s suit, filed in U.S. District Court in New Jersey, alleges wrongful termination, retaliation and shareholder oppression, and claims more than $3 million in damages.

Lysich, his father Petr Lysich and his cousin Igor Fedorenko have filed a motion to dismiss the lawsuit.

Construction work on the Daytona Beach Convention Hotel & Condominiums stopped in October after Lysich’s Photogroup fired W.G. Yates & Sons as the project’s general contractor without explanation.

A spokesman for W.G. Yates told the Daytona News-Journal that the general contractor hadn’t been paid since June for its work on the $192 million resort – the most expensive oceanfront development of its kind ever built in Daytona Beach.

The Daytona Beach Convention Hotel & Condominiums is a hotel and condominium-hotel designed with a total of 501 rooms in a 28-story tower and a 31-story tower. The oceanfront development site is at the intersection of Oakridge Boulevard and State Road A1A in Daytona Beach. [Daytona News-Journal] – Mike Seemuth

From left: Michael Suarez, and Dianne Regalado Kammerer.

Coldwell Banker made a few management changes in Miami-Dade.

Dianne Regalado Kammerer was named director of sales for the brokerage’s Coral Gables office, joining managing broker Charlette Seidel in managing the office’s more than 200 agents. Kammerer is replacing Francisco Angulo, who was promoted to vice president of global development of Realogy.

Michael Suarez is taking over Kammerer’s previous role as managing broker of Coldwell Banker’s Brickell-Key Biscayne office.

Rosi Borroto returned to One Sotheby’s International Realty as a global real estate adviser based in Coral Gables. Borroto left One Sotheby’s in 2016 to join Douglas Elliman.  She has more than 20 years of experience in the Gables, Coconut Grove, Pinecrest, Key Biscayne and Miami Beach.

Alexander J. Rose joined One Real Estate Investment as chief investment officer. He previously led acquisitions at Capitas in Los Angeles and Dubai, and managed investments totaling more than $700 million in the Southwestern U.S. Rose also worked for JLL.

Compass Florida hired Carlos Gutierrez as a sales manager. Gutierrez, a former residential president of the Miami Association of Realtors, will be responsible for a team of more than 125 agents at Compass’ Miami Beach office. He’s worked for Coldwell Banker, Keller Williams and United Realty Group.

Law firm Mark Migdal & Hayden brought on attorney Isaac Marcushamer to focus on distressed companies and real estate disputes.

Main Las Olas, Miramar Park of Commerce and the Westside Office Plaza

GreenWise Market inks lease at Main Las Olas

Publix’s GreenWise Market just inked a 115,000-square-foot, ground-floor lease at what’s slated to become downtown Fort Lauderdale’s first new office development in more than a decade.

The Main Las Olas project, developed by Stiles and Shorenstein Properties, is underway at 225 East Las Olas Boulevard. GreenWise Market will join law firms Akerman and Berger Singerman and holding company BBX Capital that also recently signed leases at the new project.

Once complete, Main Las Olas will feature 357,000-square-feet of office space and a 341-unit apartment tower. The project is slated to be completed in the fall of 2020. The building will be connected to a parking garage.

Stiles Realty is handling commercial leasing.

Convey relocates to new building at Miramar Park of Commerce

Health insurance provider Convey Health Solutions is relocating to a new building within Sunbeam Properties’ Miramar Park of Commerce.

The company inked a 47,819-square-foot lease within a nearly 71,000-square-foot office and flex building underway at 3140-3188 Executive Way. It’s expected to be completed in March. Convey custom built-out the space.

JLL’s Ryan Nunes represented the tenant. Convey currently leases space in another building within the 5 million-square-foot business park.

Other tenants in the park include GE, Siemens, Tommy Hilfiger, Neiman Marcus and Spirit Airlines.

Westside Office Plaza secures 27,650 sf of leases

The Westside Office Plaza in Doral just secured 27,650 square feet of new leases.

The master-planned office park at 8200-8400 Northwest 33rd Street sits on 22 acres of land and features 363,328 square feet of office space.

Avanti Way Realty leased 6,615 square feet and the Latin American healthcare business Guidewell-Sanitas inked a 21,038-square-foot lease at 8400 Northwest 33rd Street.

State Street Realty’s George Pino and Ed Lyden represented the landlord, PR Westside Plaza I LLC, which is an entity tied to PGIM Real Estate. Andres Korda of Avanti Way Realty represented his firm.

From left: Robert Reffkin, Avi Dorfman, and Ori Allon (Credit: iStock)

Four years ago, tech entrepreneur Avi Dorfman sued Compass and CEO Robert Reffkin, claiming they implemented his ideas and then cut him out of the action. It turns out Dorfman is aiming to collect nearly $200 million from the firm, recently valued at $4.4 billion.

Dormfan’s specific monetary claim — which hadn’t been disclosed publicly — was revealed during a hearing last month in New York Supreme Court. At the hearing, lawyers for the SoftBank-backed brokerage disputed Dorfman’s claim that he is entitled to a 15 percent stake of the company at founding, according to a transcript of the court appearance. Using back-of-the-napkin math, sources said that 15 percent stake would have been diluted to around 4 percent of the company’s shares after multiple fundraising rounds.

“We believe Mr. Dorfman has a very strong claim as one of the founders of Compass,” his attorney, Arun Subramanian, told The Real Deal. “We look forward to having the evidence heard by the Judge and a jury.”

Dorfman sued Reffkin in 2014, claiming the chief executive used a concept they worked on together in 2012 as the basis of a company that later became Compass. At the time, Compass had just raised a $40 million Series B round that valued the startup at $360 million. The original suit did not specify damages, and subsequent court documents redacted the amount.

Both sides agree that in 2012, Reffkin offered Dorfman a salary of $80,000 plus a 2.5 percent stake in Compass. But Dorfman contends Reffkin later reneged on the offer, while Compass maintains that Dorfman turned the offer down in order to take a job at a hedge fund.

In a statement, Compass disputed Dorfman’s claim that he’s entitled to any money.

“Having spurned multiple offers of employment to join Compass in the early stages, it’s clear that Dorfman is now just seeking a do-over of that decision,” the company said.

In September, Compass raised $400 million from SoftBank and Qatar Investment Authority at a $4.4 billion valuation. Wellington, IVP and Fidelity also participated in the Series F, which gave Compass a total capital raise of $1.2 billion.

In 2016, the Manhattan Supreme Court ruled that Dorfman could continue to call himself a co-founder of Compass. The ruling was in response to Reffkin’s counterclaims, which alleged Dorfman had improperly presented himself as instrumental to Compass’ early fundraising and that he referred to himself as a Compass co-founder on his LinkedIn page.

Ocean Drive Art Deco District (Credit: iStock)

A political consultant has filed an ethics complaint against three members of an influential Miami Beach land use board, accusing them of violating the state’s Sunshine Law because they’re also members of a non-profit.

On November 19, Randall Hilliard, who also goes by the nom de plume “Prince of Darkness,” filed a complaint with the Miami-Dade Commission on Ethics against Jack Finglass, Nancy Liebman, and Kirk Paskal.

Finglass, Liebman, and Paskal are members of the Miami Beach Historic Preservation Board, a seven-person committee appointed by the majority of the Miami Beach City Commission. The HPB has the power to authorize or deny the alteration and/or demolition of buildings located within Miami Beach’s 10 historic districts and 11 designated historic sites. Three of the historic districts make up the National Register Art Deco District in South Beach which covers Lincoln Road, Washington Avenue, and Ocean Drive.

Finglass, Liebman and Paskal are also board members of the Miami Design Preservation League, or MDPL, a non-profit that advocates for the preservation of historic buildings in Miami Beach. Although city ordinance states that at least one member of the HPB has to be a member of MDPL, Hilliard alleges that having three MDPL board members on the HPB violates Florida law, which requires that elected and appointed city board members only meet at publicly noticed meetings.

“Because MDPL does not conduct their board meetings according to public meeting notification standards, Finglass’, Liebman’s and Paskal’s participation in MDPL is a violation of Florida Statutes Chapter 286 … by discussing project(s) at MDPL board meetings and conducting discussions with property owners outside publicly noticed meetings that will come before HPB,” Hilliard stated in his complaint.

Hilliard added in an emailed statement: “Liebman, Finglass, and Paskal think the rules don’t apply to them and their private clubs while soliciting and taking donations from developers. It’s just an example of their shameless conflict of interest by using MDPL and probably a violation of their 501(c) (3) status.”

Finglass and Paskal could not be reached for comment. Liebman, a former Miami Beach commissioner, called Hilliard’s charges “ridiculous.”

“He doesn’t know what he’s talking about and I can’t respond to things I cannot understand. He needs to do a little background before he sends things like this,” Liebman said, later adding: “I don’t think he got over the fact that he lost, which was another part of his game, which is to get rid of MDPL.”

Earlier this year, Hilliard, a consultant who has been employed by campaigns in Miami Beach and elsewhere in South Florida since the 1990s, was involved in a civil war between MDPL board members who were, among other things, divided on their support of its executive director, Daniel Ciraldo.

In June, Hilliard submitted 131 applications of new members, each with its $50 membership fee in cash clipped to them, who voted for a new board that included Hilliard himself, and which wanted Ciraldo suspended. Ciraldo and several other MDPL members insisted that the Hilliard proxies were improper. Soon, two rival groups claimed to be the board of directors of MDPL. A temporary injunction that would have prevented Ciraldo from acting as executive director was rejected by Judge Bronwyn Miller on October 19. On November 9, litigation from both sides was settled and the pro-Ciraldo board, which included Finglass, Liebman, and Paskal, was declared the true MDPL board.

Ciraldo said that Hilliard’s complaint has “no merit” since Liebman, Finglass, and Paskal aren’t members of the “advocacy committee” that actually does make recommendations to the HPB.

“There is no conflict of interest,” Ciraldo stated in an email. “None of them solicit any money from ‘developers’ nor are they involved in the MDPL advocacy committee discussions (where the positions of MDPL are voted on, later to be presented to the HPB). Randy continues to think we are a government organization, which we are not.”

Liebman also stressed that MDPL meetings are open to the public, and that she has only been an MDPL board member for the past two weeks.

Rhonda Victor Sibilia, spokesperson for the Miami-Dade Ethics Commission, said staff issues a report on the probable cause of an issued complaint within 60 days of receipt. If a violation is found to be committed by the ethics commission’s five-member board, the agency could levy fines of between $500 and $1,000 per violation, issue a letter of reprimand, or submit instructions on how to rectify a violation.

Jeff Bezos (Credit: Getty Images and Pexels)

Public officials across the country are questioning whether they’ll sign nondisclosure agreements in the future after facing some backlash surrounding the secrecy around Amazon’s HQ2 search.

It’s not uncommon for companies looking to land tax breaks and other incentives to require local officials to sign NDAs as part of economic-development deals. But as part of its high-stakes search for a second headquarters, Amazon required many of the 238 bidders to sign one-page agreements that prohibited local officials from revealing nonpublic, confidential information the company disclosed in the process, the Wall Street Journal reported.

“Unfortunately that’s our world …The companies we’re dealing with are requiring us not to talk about it,” explained Jeff Finkle, president of the International Economic Development Council, a group that represents economic-development officials across the country. “If you don’t play by their rules, you lose.”

Some officials said the NDAs Amazon required them to sign looked standard, though one consultant told the Journal they stood out because they renewed after three years, whereas most NDAs last only three to five years or until a project is complete.

In some cities, private developers were required to sign NDAs. And in Indianapolis, local officials even required waitstaff and a hotel concierge to sign confidentiality forms ahead of a visit in March from Amazon executives.

Amazon pointed out that the company didn’t tell cities not to publicly disclose the details of their proposals, though many did so in order to protect their competitive advantage.

“What could you say publicly that would actually be helpful in some way, other than that we’re working on it?” said Stephen Moret, chief executive of the Virginia Economic Development Partnership, who led the state’s winning bid. “Had there been no NDA, our public comments would have been the same.”

In New York, lawmakers on both the city and state levels said they plan to propose legislation that would ban public officials from signing NDAs with private corporations in economic-development deals. [WSJ] – Rich Bockmann

Rendering of Grand Plaza and Ricky Trinidad

A Miami developer is under contract to purchase a large assemblage in the West Grove where it’s planning a $74 million, mixed-use project.

Ricky Trinidad’s Metronomic announced plans for Grand Plaza, a 12-building development on Grand Avenue in Coconut Grove. Trinidad’s firm isn’t the first to try to purchase the properties. In 2016, David Martin’s Terra canceled a $35 million offer for the buildings.

Metronomic is set to close Feb. 11, paying $25 million for the 12 lots at 3280 to 3461 Grand Avenue, Trinidad said. The sellers are entities led by Orlando Benitez Jr. The properties were tied up in litigation due to infighting among partners, litigation that Trinidad said has been resolved.

The 297,000-square-foot project, planned for the historically black and Bahamian neighborhood in the Grove, would include luxury apartments, affordable housing, retail and office space, community park plazas, underground public parking and a 44-key hotel, according to a release.

Trinidad is also a big proponent of passenger drones – a.k.a flying cars – as a solution to Miami’s traffic issues. He’s pursuing building a helipad on top of the project if and when the Federal Aviation Administration approves them.

The developer is starting with Metronomic Place, a boutique office and hotel building at 3280 Grand Avenue. Trinidad said he plans to break ground in about two weeks and secured a $6.8 million loan from Fuse Funding to fund construction of the five-story building. It will have about 5,000 square feet of Class A office space, 3,200 square feet of ground floor retail space, and the 44-key hotel.

Metronomic is also planning to break ground on the rest of the project in March and complete the entire development within two years of the start date. It’s being designed by Pablo Burgos of Burgos Lanza & Associates and Carl Levin of CLAD Architects. Trinidad said he is in talks with local lenders and will also finance construction with private foreign investors.

The residential component of Grand Plaza would include 38 furnished micro units, 82 luxury apartment rentals and roughly 40 affordable housing units. Trinidad said he’s working with the community and Miami-Dade commissioner Xavier Suarez and Miami commissioner Ken Russell to find current tenants new places to live.

The project would also include a farmers market with a stage for free and public live performances.

The Miami Herald first reported plans for Grand Plaza.

Terminal Stores at 271 11th Avenue and California State Teachers’ Retirement System CEO Jack Ehnes (Credit: Curbed NY and CalSTRS)

U.S. public pension funds are pushing for more exposure to riskier, opportunistic real estate investments to help close their funding gaps.

American public plans have increased their allocations to opportunistic investments by a measure of six times between 2006 and 2016, according to an analysis by CEM Benchmarking cited in the Wall Street Journal. During that same time, exposure to core properties has remained flat.

Pension funds are moving toward riskier deals as rising values have made it harder to find attractive investments.

“Five years ago, you really could have thrown darts and had a pretty successful portfolio,” said Shawn Quinn of Wilshire Private Markets, which advises institutional clients.

The California State Teachers’ Retirement System has a target of putting 20 percent of its real estate portfolio, or about $5.7 billion, into opportunistic real estate investments. A spokesperson for the fund said it currently doesn’t meet that target.

An official at CalSTRS said the fund looks to earn 13 percent to 30 percent on opportunistic deals, compared to somewhere between 6 percent and 9 percent on core investments. The fund recently teamed up with L&L Holding Co. and Normandy Real Estate Partners to buy the Terminal Stores warehouse for $900 million.

All told, public and private pension funds had about $135 billion invested in opportunistic vehicles as of 2016, according to CEM Benchmarking research, which was sponsored by Nareit.

Pension funds took huge losses on their real estate investments during the financial crisis, but they’re now under increasing pressure to fill funding gaps. Governments have unfunded commitments estimated by the Boston College Center for Retirement Research totaling $1.6 trillion, while Moody’s Investor Services puts the figure at $4 trillion. [WSJ] – Rich Bockmann

Dave Stephenson (Credit: Airbnb)

Airbnb hired a top Amazon executive as its new chief financial officer amid plans to go public, ending the company’s nearly year-long search to fill the position.

The home-sharing startup announced it tapped Dave Stephenson for the position that had been left open since February.

Stephenson was most recently vice president and CFO of Amazon’s worldwide consumer organization where he was in charge of overseeing global website sales, according to Bloomberg. Stephenson will start at Airbnb in early January.

Airbnb has been without a CFO since February, when Laurence Tosi left the position after reportedly clashing with CEO Brian Chesky.

Stephenson comes to Airbnb at a crucial time as the company is preparing for one of the most highly anticipated Initial Public Offerings by 2020, according to Bloomberg. The company has a private valuation of $31 billion.

The company’s IPO, however, could be impacted by regulations that cut into the company’s business, particularly in New York City, its largest market, as well as in some South Florida cities, including Miami Beach. After a bill was enacted in San Francisco making hosts register with the city, Airbnb’s listings in that city reportedly fell by half.[Bloomberg] — Keith Larsen

The Modern Miami and Mill Creek’s Charles R. Brindell, Jr. and Water Associates’ David Schwartz

A joint venture between Rockwood Capital and Mill Creek Residential just bought the Modern Miami apartment building near the Miami River for $47.45 million.

Chicago-based Waterton Associates is the seller. Property records show the 166-unit apartment building at 1444 Northwest 14th Avenue sold in addition to a vacant, 16,714-square-foot lot directly west of the property.

Waterton Chairman and CEO David Schwartz said the firm worked on entitling the land to allow for more multifamily construction. Records show the company purchased the entire 1.75-acre property in 2013 for $32 million from an entity led by Glenn Chwatt and Scott Svirsky.

Schwartz said Waterton completed the 20-story apartment building in 2014 after construction had stalled under its previous ownership. The building most recently traded at about 95 percent occupied.

Records show the Rockwood Capital and Mill Creek Residential joint venture financed the deal with a $31 million loan from CIT Bank.

The property is close to Miami’s Health District and the Miami River, which is increasingly becoming a target for new development.

Most recently, investors Levy Gomez, Marcos Corminas and chef John Gray proposed a new hotel and food court along the Miami River called The Shipyard.

This isn’t the first deal between Mill Creek and Waterton. In 2015, Waterton purchased the second phase of Fort Lauderdale’s Port Royale apartment community from Mill Creek for $94 million.

In August, Mill Creek paid $37.2 million for a 127-unit apartment complex in Dania Beach.

West Atlantic project in Delray Beach

A controversial developer who once tried to buy the stadium of the National Football League’s Detroit Lions has emerged as a new bidder in the contentious West Atlantic project in Delray Beach.

Harold “Sonny” Van Arnem is now one of six bidders seeking to purchase 6 acres at West Atlantic Avenue’s 600 to 800 block from the city, aiming to transform the downtown area into a bustling mixed-use project.

Van Arnem entered the bidding when he became the managing principal of Uptown Delray LLC, which was previously led by Irish developer John Flynn, according to a response filed to the Delray Beach Community Redevelopment Agency.

Van Arnem, a long-time South Florida resident who made his fortune with computer leasing companies, has sought to bid on a number professional sports complexes and teams throughout the past 40 years. He previously attempted to buy the Silverdome, the former home of the Detroit Lions, for $60 million before the city of Pontiac, Michigan, declined the offer, according to the Sun Sentinel. Van Arnem also once owned the rights to the Detroit Express, the city’s professional soccer team.

Based on previous legal documents and news articles, Van Arnem developed a reputation as an aggressive litigator who sued creditors over unpaid bills.