Technology lets potential buyers tour yet-to-be-built condos, like Krystal Tower’s oculus rift tours
1. European realty buyers thin out [Miami Today]
2. Technology lets potential buyers tour yet-to-be-built condos [Daily Business Review]
3. Recovery First of Hollywood agrees to sell to American Addiction Centers [Miami Herald]
— Katherine Kallergis
Rendering of Miami Worldcenter
Miami commissioners are scheduled to vote Monday to amend a previous agreement for the $1 billion Miami Worldcenter project that sets lower local hiring goals.
Commissioners will be asked to discuss two $1 million grants to Overtown restaurant owners, a raise for the agency head, and hundreds of thousands of dollars in grants to nonprofits, according to published reports.
A tax-rebate deal with the developer of the mega-project would reduce certain proposed benefits for city residents, instead of giving them more as had been expected, the Daily Business Review reported.
Worldcenter plans to bring a 765,000-square-foot shopping center, as well as residential buildings and hotels, to a neglected 27-acre site spanning 10 blocks north of downtown Miami. An expo center and hotel also are planned by another developer on the site of the demolished Miami Arena.
The developer promises to fill about 30 percent of unskilled construction jobs with local residents, favoring people in Overtown and other high-poverty ZIP codes. In addition, at least 10 percent of skilled jobs would have to be filled with locals. Because of the way the deal is structured, the number of jobs promised to city residents would be lower than goals set in September’s agreement. [Daily Business Review] – Kristina Puga
David Stern
Disbarred attorney David J. Stern’s actions have come full circle.
Leftovers from a successful class action lawsuit against the former Florida foreclosure king will reportedly go toward the budget of the Legal Aid Society of Palm Beach County.
The $115,000-budget increase will go toward helping homeowners in foreclosure and consumer-related issues, the Palm Beach Post reported.
“It is a bit ironic,” executive director Bob Bertisch told the Post. “[Stern] did a lot of unethical things and hurt many of our clients.”
Stern, once the most successful high-volume foreclosure prosecutor in Florida, was hit with $831,110 judgment earlier this year after allegations in 2010 that robo-signing, notary fraud and forgery were occurring at his firm. [Palm Beach Post] — Katherine Kallergis
Kensington at Royal Palm Beach
Miami attorney Rashmi Airan-Pace is the fifth person to plead guilty in a $25 million mortgage scheme.
Airan-Pace, 43, reportedly pleaded guilty on Dec. 17 to having taken part in the scheme that left the Kensington of Royal Palm Beach condominium inundated with foreclosures.
She was the closing agent on 90 sales at the 167-unit condominium between 2007 and 2009 — a period when buyer incentives, including cash rebates, guaranteed rent and condo fees, and cash-to-close payments were hidden from banks.
The deals Airan-Pace made resulted in $18 million of defaulted mortgages at the Kensington, the Palm Beach Post reported. Court records say banks loaned an estimated $25 million to Kensington borrowers based on false loan documents. Airan-Pace faces a maximum penalty of five years in prison and is scheduled to be sentenced March 5. She also pleaded guilty last week to one charge of conspiracy to commit bank fraud in connection with closings conducted at a Tampa condominium. [Palm Beach Post] – Kristina Puga
Construction site (Photo: Pedro Moura Pinheiro on Flickr)
Construction costs in the U.S. hit a record level after declining slightly in 2008, according to a report by property and construction firm Rider Levett Bucknall.
The firm’s quarterly index of construction costs, which are rising at the fastest pace in six years, increased 1.66 percent between July and Oct. 1. According to the report, this is the largest three month increase in building costs since the beginning of 2008.
The numbers reflect the housing market’s improvement, where demand for labor and construction material has driven up construction costs. The report also predicts construction starts will rise about 10 percent next year, or nearly double the estimated growth rate of 2014.
“General optimism with the construction sector has continued to rise,” the report said. [Wall Street Journal] – Kerry Barger
The LAB and its co-founder Johanna Mikkola
Wyncode coding school, located inside the LAB Miami in Wynwood, plans to expand to Fort Lauderdale in 2015.
The school currently offers a nine-week programming bootcamp for $10,000. It has also connected 96 percent of its graduates with local coding jobs since it launched in May, according to published reports.
“We’re excited to showcase Wyncode talent and also celebrate how far our coders have come in such a short time,” co-founder Johanna Mikkola said in a news release. [South Florida Business Journal] – Kristina Puga
Mazda in Coconut Creek
A 4-acre property in North Palm Beach will open as a full-service Mazda dealership on Jan. 5.
Grieco Motors bought the land, which is located at the corner of Alternate A1A and Northlake Boulevard, for $5 million in 2012. It was vacant for about eight years.
“Mazda opening will rejuvenate that area. Not only will it bring new people to the area, but it will promote more business,” North Palm Beach Community Development Director Chuck Huff told the Palm Beach Post.
Grieco renovated the single-story building and installed new landscaping. [Palm Beach Post] — Katherine Kallergis
AmericanAirlines Arena
Miami Heat sister company, Basketball Properties Limited, sued the city’s premier architectural firm, Arquitectonica, on Christmas Eve.
Basketball Properties, which manages AmericanAirlines Arena (owned by Miami-Dade County), claimed Arquitectonica was in over its head when it took on the project, and that the firm appeared more concerned with making a name for itself and a profit than with meeting deadlines and sticking to a budget.
According to the Miami Herald, Basketball Properties wants Arquitectonica to pay at least $8 million to cover cost overruns and years of legal expenses. In addition to wasted manpower and materials, one of the costlier mistakes included failing to measure the size of air handling units – requiring already constructed walls to be moved and an entirely new duct system to be put in place. This error cost $1.2 million, according to the lawsuit. [Miami Herald] – Kristina Puga
An Aventura office center was sold for nearly $9.4 million last week – a significant loss considering its last selling price of $20.5 million in 2002.
ACC GP Development LLC sold the property to Norwich Aventura II LLC on Dec. 16, according to county records.
The five-story, 235,123-square-foot office building was built in 1986 on 6.4 acres. Aventura Corporate Center is located at 20801 Biscayne Boulevard.
According to the property deed, the buyer will begin construction of a hotel, with at least 230 guest rooms or suites, within 12 months — at a quality level equal to, or greater than, an AAA rating of three diamonds. – Katherine Kallergis
Rendering of The Mark at CityScape in Boca Raton
Buildings in downtown Boca Raton aren’t supposed to be taller than nine or 10 stories that measure 100 feet, with some allowed extra height for decorative additions.
However, temporary rules are allowing the city to construct taller buildings downtown if certain design guidelines are met. The Mark at CityScape is being considered a test case, the Sun Sentinel reported.
Located near the southeast corner of Palmetto Park Road and Federal Highway, the Mark was approved in 2012 to reach 12 stories at 140 feet — or 40 feet taller than the official height limit for downtown. When the building opens in early 2015, the city plans to re-evaluate whether such taller buildings are ideal for Boca.
There are four other proposed downtown projects, including a 12-story hotel right next to the Mark, and a 200-unit apartment building which could reach 13 stories at 300 South Federal Highway. [Sun Sentinel] — Kristina Puga
$1.8M unit at Aqua’s Spear building has midcentury touches
1. Mortgage money, better selection of homes to ring in new year [Sun Sentinel]
2. $1.8M unit at Aqua’s Spear building has midcentury touches [Curbed Miami]
3. East-west passenger trail for Miami [Miami Today]
4. Delia’s closing stores in Fort Lauderdale, Wellington [Sun Sentinel]
— Katherine Kallergis
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Miami Worldcenter rendering and Nitin Motwani
The Miami Worldcenter subsidy agreement is up for a vote today when city commissioners come together as the Overtown Community Redevelopment Agency.
The incentives would reportedly return more than half of the property taxes paid out to the CRA by the project’s owners — a portion of which would go toward financing public infrastructure improvements including roadways and parks.
The tax rebates, valued at $6.9 million annually once the $1 billion phase is completed, would begin as early as 2018 and continue through 2030, the Miami Herald reported.
Up to one-third of unskilled workers on the project will be required to be from Overtown, around Miami and the county. [Miami Herald] — Katherine Kallergis
Metrocentre Corporate Park
GE Business Financial Services sold a West Palm Beach office park it repossessed back in 2011.
Metrocentre Corporate Park was reportedly sold for $8.8 million to Grover & Corlew.
The 105,159-square-foot property has six buildings at 2440 through 2581 Metrocentre Boulevard. It was last traded for 13.6 million in 2001, the South Florida Business Journal reported. CBRE represented the seller and helped the buyer obtain $7 million in financing from a real estate investment trust.
“From 2003 to 2006, prior to the recession, the property had an average year-end occupancy rate of 95.7 percent. With recent gains in housing prices and employment, the economy is positioned to further improve and there is a tremendous value-add opportunity to lease up the vacant suites and benefit from the impressive market rental growth projected by economists,” CBRE’s Scott O’Donnell said in a news release. [South Florida Business Journal] — Katherine Kallergis
Motel Fredola in Hallandale Beach
A landmark Hallandale Beach motel has closed.
Motel Fredola, located across the street from Gulfstream Park at 900 South Federal Highway and, will be demolished soon, although owners have reportedly declined to comment on what will become of the site.
Former owner Jerry Biller told the Miami Herald that it was time to move on. He sold the 40,000-square-foot property in 2001 to Hallandale Office Towers for $800,000. Biller ran the motel until it closed.
Following 9/11, the investor decided to put the office park he had in mind on hold and keep the motel running until the market improved, according to the Herald. The area surrounding the motel has grown recently, with high rises east and south of the property and the addition of a retail-restaurant village surrounding Gulfstream Park. [Miami Herald] — Katherine Kallergis
A Sedano’s supermarket
A foreclosed Homestead shopping center was reportedly sold for $4.3 million to a company managed by the CEO of Sedano’s Supermarket.
An affiliate of Florida Community Bank sold the property at 1982 North Eighth Street at a 27 percent discount to the foreclosed mortgage, according to published reports.
The buyer, 1982 Campbell Holdings, is managed by On-Time Construction Corp. On-Time’s president, Augustin Herran, also runs the South Florida supermarket chain, the South Florida Business Journal reported.
Great Florida Bank, which was acquired by Florida Community Bank in January, foreclosed the $5.8 million mortgage of Campbell Blue East in 2011. [South Florida Business Journal] — William J. Gorta
From left: Chris Leavitt, Tony Cho, Daniel de la Vega, Matt Cheezem, Andres Asion and Zach Winkler
Buyers and investors remained bullish on the South Florida real estate market in 2014, especially in the hospitality, retail and office sectors. But while demand will remain strong in the residential market, price appreciation will slow significantly, brokers said. The Real Deal spoke to top brokers about what they see happening in the South Florida real estate market in 2015.
Chris Leavitt, luxury real estate broker for Douglas Elliman and star of “Million Dollar Listing Miami”
“Buyers looking for more moderately priced homes will see more opportunities in 2015. With fewer homes underwater, the strength of the market will inspire baby boomers to finally sell. Millennials who have postponed homeownership will take advantage of the new inventory in 2015 as they start families and seek more stability. By the end of 2015, millennial buyers will represent the largest group of homebuyers, taking over from Generation X. Demand will continue to rise in 2015 as prices appreciate. There have now been 11 consecutive quarters of price growth for condominiums and single-family homes in Miami. Even though there is a greater supply of properties compared to a year earlier, demand is still strong and prices and sales are more moderate, which is resulting in a more balanced real estate market.”
Tony Cho, CEO and founder of Metro 1 Properties and M1 Development
“I think Miami is going to continue to attract investors and capital. A strong dollar, low gas prices and low interest rates bode well for the South Florida real estate market. Wynwood is poised to have a big development boom at the end of the year because of changes in zoning. Allapattah, the Biscayne Boulevard corridor north of 36th Street, Buena Vista, Little River and Miami Shores are the emerging neighborhoods that will go through some revitalization and renaissance. I don’t see price appreciation as brisk as the last couple of years, but I do see sustained growth and stabilization on the horizon.”
Daniel de la Vega, president of ONE Sotheby’s International Realty
“I believe the market will continue to rally in South Florida. You won’t see the price appreciation you saw in the last couple of years, but there will be appreciation and buyers will continue to come from all over the world. There is a lot more competition in the market. The number of buyers in South Florida in 2015 will not go down, but the amount of inventory online will give people a lot more options. I believe only the best products that get built by solid developers are the ones that will continue to sell.”
Matt Cheezem, senior vice president at Cresa South Florida
“It will be surprising if the number of new-to-market tenants for office space in Miami-Dade surpasses this year. If I was a betting man, I would say no. The deals made in the first quarter and early part of the second quarter will determine if the office market remains hot. If it doesn’t and it slows down, I see it flatlining and falling off in the middle or latter part of next year. While we are not seeing 20 percent vacancies, in some cases it is in the high teens. There are some buildings with significant vacancies. Until those fill up, it will be hard to push the market far enough where there are no pockets of volatility or weakness in it. Broward is another animal, especially downtown Fort Lauderdale. Over the past 18 months, it has been the office market with the most growth and absorption. Fort Lauderdale had the largest decreases in vacancies and increases in rental rates than anywhere else in South Florida. Next year will be the litmus test that determines if the Fort Lauderdale office market can support a new building.”
Andres Asion, vice-president of sales at Fortune International Realty
“Projects sold three years ago will start to close in 2015. It will be interesting to see how those deals play a role in new sales. I don’t think we will have the pace of sales we had in the past year when we were selling 50, 60 units a month per project. I think it will be half of that because you have a lot more projects. Buyers have more options to choose from now.”
Zach Winkler, senior associate at CBRE Florida
“You will see continued interest in the urban core from retailers. The Brickell market will remain in very tight demand, mostly for food and beverage providers. The Brickell City Centre project will create more buzz and create much needed traditional retail such as fashion luxury and shopping in an area where it is very much needed. I’m a big believer in Miami Beach. Lincoln Road has seen record prices and that will continue to go up. Sunset Harbour will continue to do very well. The Alton Road corridor will become a better retail strip and some areas of Washington Avenue will benefit from more local boutique tenants that will bring retail for the greater masses. Overall, South Florida will continue to draw significant interest from national and international retailers. Ted Baker signed a deal for a store on Lincoln Road, for example. You will also see a blurring of the dividing lines between the neighborhoods of Wynwood, Midtown and the Design District. Retail development is going to create a happy medium between the mass consumers and ultra luxury shoppers so that retailers get the best of both worlds.”
David Beckham
David Beckham is quietly back in the hunt for an elusive goal – a stadium site for his proposed Major League Soccer team.
But this time, he’s going private after officials blocked several public sites, according to a published report.
Beckham’s real estate adviser and lead negotiator told the Miami Herald that that the former Manchester United striker has made “very meaningful strides” with private property owners in the last couple of months.
“While nothing in this complex equation can be taken for granted, I am optimistic that there will be several positive announcements in the first quarter of the next year,” John Altschuler wrote in an email to the paper.
County Commissioner Juan C. Zapata said he hopes to convince Beckham to place his team temporarily at the West Miami-Dade campus of Florida International University to build support for a new stadium.
“It makes it easier to sell a known product. And it doesn’t look good for us to not be proactive,” Zapata told the Herald. “Until we figure out a stadium plan, I think we’ve got to get a team on the field.” [Miami Herald] — William J. Gorta
A Publix store
A Boynton Beach shopping plaza anchored by a Publix supermarket was reportedly sold for nearly $10.8 million.
Meadows Square, a 10-acre site at 4071, 4791 and 4793 North Congress Avenue, was bought by G&I VIII Meadows Square, an affiliate of New York-based DRA Advisors, according to a published report.
There is a 95,607-square foot retail plaza on the property, along with a currently unoccupied 1,600-square-foot service station and a 10,945-square-foot office building, the South Florida Business Journal reported.
The seller, DDRM Meadows Square, an affiliate of Beachwood, Ohio-based DDR Corp., bought the site in 2007 for $3.4 million. [South Florida Business Journal] — William J. Gorta
