Jumbo loan rates may hold to below 4%

From the New York website: The jumbo-mortgage market will likely keep its mojo in 2016 after it reached new highs last year — not even recent turbulence in global stocks can slow it down, according to industry experts.

In fact, the current dip in the global market may hold interest rates for jumbo mortgages — loans above $417,000 or more, depending on the area — below four percent for a while longer, an attractive proposition for borrowers seeking a safer investment in real estate.

The volume of mortgage loans reached an estimated $320 billion nationally in 2015, the highest market share since 2002 and a slight increase from 2014, when jumbo mortgages comprised 18 percent of the lending market, Guy Cecala, CEO and publisher of Inside Mortgage Finance, told the Wall Street Journal.

The Federal Reserve isn’t likely to raise short-term rates in the spring, said Keith Gumbinger, vice president of mortgage-rate website HSH.com. Gumbinger told the Journal that interest will probably stay below four percent due to stock market volatility.

If the central bank does raise short-term rates, it would be no more than two to three times this year, said Gumbinger. This would keep the average 30-year, fixed-rate jumbo loan around a little less than five percent. Currently, the rate is 3.875 percent. Five-year, adjustable-rate mortgages may hit four percent, he said.

Often in a down stock market, people shift assets to real estate as a safer investment, although the downturn may mean less available cash for buyers seeking to purchase expensive homes, Cecala said.

A flux in rates coupled with fear of rising home prices could stimulate home buying and current borrowers with adjustable-rate mortgages may rush to refinance. [WSJ] — Dusica Sue Malesevic

A June 2011 photo of the downtown Miami skyline (Credit: Marc Averette) and a foreclosure sign

Miami-Dade County saw another month of receding foreclosure rates during December, marking nearly two years of recovery from the U.S. real estate crash of the late 2000s.

The county had 3.12 percent of its outstanding mortgages in some stage of foreclosure during November, according to a new report from CoreLogic. That figure fell by 1.68 percentage points year-over-year, and has consistently fallen since January 2014 when the county’s foreclosure rate hit a high of nearly 14.5 percent.

Delinquency rates were also down in November. The percentage of debtors who hadn’t paid their mortgage bills for more than 90 days sank to 7.25 percent — a 3.42 percentage point decrease compared to November 2014.

Homeowners in Miami-Dade took a hard hit during the real estate market’s crash during the late 2000s. Home prices tanked and a swath of property owners lost their houses to lenders.

The county has since seen an explosive recovery in both prices and foreclosure rates, though recent months have seen a significant drop in sales activity — a sign of trouble on the horizon. — Sean Stewart-Muniz

Joe Jonas and his new Hollywood Hills abode

From the Los Angeles website: Joe Jonas, the former Jonas Brother turned DNCE frontman, is leasing a new pad in the Hollywood Hills following the sale of his $2.9 million home, The Real Deal has learned.

The crooner is shelling out $40,000 a month for the three-bedroom, 3.5-bathroom house, on Cardwell Place near the Sunset Strip, according to the listing broker, Carl Gambino of Westside Estate Agency.

“This is the most spectacular property on the market in this price range. There is literally nothing else like it,” Gambino said.

The $40,000 a month rental near the Sunset Strip

The mid-century modern house was once home to famed session musicians the Wrecking Crew and has a pool, a circular living room and a hidden murphy style bar in the living room. The home is also currently available for sale, asking $4.6 million.

Jonas has been without a California crash pad ever since he sold his other Hollywood Hills abode on Fairfax Avenue for $2.88 million late last year. He bought that property for $2.6 million in 2014, public records show. He and his brothers even spent the holidays in an Airbnb rental in New York.

DNCE recently released its very first single, marking Jonas’ first foray into the music world since he and his brothers called time on their band in 2013.

“It’s tough for artists to get second chances in the music industry these days,” he told Rolling Stone in October. “Getting a chance to come at it like a new artist and a new band is incredible.”

The property has its own pool

A rendering of the new Chalk’s seaplane facility and an aerial view of Miami’s Watson Island (Credit: Marc Averette)

A new Chalk’s seaplane base of operations on Watson Island is one step closer to take-off.

Thursday evening, the Miami City Commission voted 4:1 to rezone land that had been designated as park space under Miami 21 to allow major institutional, public and transportation facilities.

The vote removes a significant hurdle that stood in the way of Chalk’s plans for a new nine-story building topped off with 341-foot spire that resembles a lighthouse. At the city commission’s planning and zoning meeting, Chalk’s representatives unveiled a preliminary layout and design for the company’s new headquarters.

“What we are about to show is our vision of tomorrow for the Miami seaplane base,” said Marin Kim, a lobbyist for Nautilus Enterprises, which owns Chalk’s. “The design is a work in progress and will most likely change.” Kim also added that Chalk’s is open to scaling back the project at the city’s request.

“If the city commission believes there is a risk of overdevelopment on Watson Island, we will work with city to reduce the footprint,” Kim added.

During her presentation, Kim said the new Chalk’s headquarters would have the terminal on the ground level that would feature passenger drop off and pick up areas, check-in counters, U.S. Customs and Border Protection screening, and a restaurant. The second floor would house Chalk’s operations, offices for U.S. Customs, and third party leasees, she said.

Kim also said the new building would have a lushly landscaped rooftop garden that would be open to the public and made available to the city to use for media events.

Miami Commissioner Ken Russell had requested the presentation based on concerns that there is too much development on Watson Island, one of the city’s remaining waterfront properties. “I wanted to see today the scope and scale of this project to allow us to discuss the potential of over development,” Russell said. “There is a lot of fear of what  this project could be.”

The city commission’s approval also allows Linden Airport Services, which has a 30-year lease for land next to the Chalk’s site, to build a heliport.

Nautilus and Linden are working out agreements with the city’s semi-autonomous agency, Miami Sports and Exhibition Authority, or MSEA. Nautilus played a key role in resolving a seven-year-old lawsuit between the former Chalk’s operator and MSEA when he invested in the airline.

The former Chalk’s has a history on Watson Island dating back to 1926. The company ceased operating in 2007, following a crash near Watson Island in 2005.

A new 30-year lease between Chalk’s and MSEA was announced in 2014.

Frank Carollo, the city commissioner who voted against the rezoning, said the contract between MSEA and Chalk’s should have been nullified. “I have a serious problem with the way all this has been done,” Carollo said. “These waterfront properties, which happen to be some of the most valuable in the city, have never gone to referendum.”

635-639 Lincoln Road and Ness Ohayon

A retail building at 635-639 Lincoln Road has traded for $34.8 million, as demand escalates for properties along the pedestrian promenade, The Real Deal has learned. 

A large Canadian investment firm purchased the 5,332-square-foot building, built in 1935, on Friday, at a price that equates to a whopping $6,527 per square foot. Current tenants include a jewelry store, Claudia N.; and a shoe store called the Shoe Shop.

Ness Ohayon, co-founder of WITT Realty Group out of Keller Williams Miami represented the buyers in the off-market deal that he said has been in the works for about four months.

The seller is Camelot of Miami LLC, based in Saint Johns, Florida, Miami-Dade property records show. Attorney Phillip Buhler of Switzerland, Florida, is the authorized managing member, according to records. James Lloyd represented the seller.

“It wasn’t easy at all to convince the seller,” Ohayon told TRD. “The seller didn’t want to sell and it was never on the market. I had to do a lot of convincing.”

The Miami Beach sale has not yet been recorded in property records, and Ohayon declined to name the large Canadian firm.

“It’s a personal investment,” he said. “They know Lincoln Road is hot and they will hopefully rent it to some tenants and have some cash flow.”

Investors have been targeting Lincoln Road in recent months, particularly since Spanish billionaire Amancio Ortega, whose fashion empire includes Zara, bought an entire block in September. Michael Comras and Jonathan Fryd sold the properties, 1001-1035 Lincoln Road, for a staggering $370 million, marking one of the largest real estate deals in Miami-Dade history. The properties totaled about 48,000 square feet of land and 75,000 square feet of buildings, for a price that equated to $7,708 per square foot for land and $4,933 per square foot for buildings.

Last year, Miami Beach commissioners approved a master plan for the Lincoln Road district. The plan, designed by New York landscape architects James Corner Field Operations, will overhaul Lincoln Road – enlarging sidewalks, adding extensive landscaping and turning some side streets and back alleys into pedestrian walkways that will serve as new retail and restaurant venues.

A rendering of the proposed Town Square Plaza in downtown Miami that would sit under the I-395 “signature bridge”

On the eve of transportation officials accepting bids for the I-395 redevelopment project, a nonprofit agency has unveiled its design of a walkable public space that would sit under the project’s “signature bridge” near the Arsht Center.

The proposal boasts a public plaza complete with wide open spaces, a cascading V-shaped waterfall, interactive play areas and valet parking service. It was created by PlusUrbia, who was commissioned by the nonprofit Town Square Neighborhood Redevelop Corp. in partnership with Miami’s Arsht Center for the Performing Arts.

An aerial view of the parking lot where the plaza would be built

Currently, I-395 crosses over Biscayne Boulevard with a low-hanging span. The Florida Department of Transportation is soliciting builds to rebuild that span into a $600 million “signature bridge” high above Biscayne.

Part of the request for bids is to develop an aesthetically pleasing public space below the bridge, which is currently a surface parking lot owned by Miami-Dade County.

The partnership’s hope is that their vision will be brought to life through the winning bidder, said attorney Alan Fein, chair of the Arsht Center’s Board of Directors.

“In advance of the I-395 Reconstruction RFP advertisement, we wanted to share our vision of what the street-level experience could be,” said real estate heavyweight Armando Codina, who is Town Square’s chairperson, in a statement. “This is a once in a lifetime opportunity to design the signature structural bridge and the area under the highway in a way that historically changes the downtown Miami landscape for the better.” — Sean Stewart-Muniz

A rendering of Triple Five’s proposed American Dream Miami

1. Miami-Dade exploring rail link to the American Dream mega-mall [Miami Herald]
2. Commission votes could open western areas to more development [Palm Beach Post]
3. MiamiCentral station ready to go vertical [The Next Miami]
4. Private jet charter company launches flights to Cuba from South Florida [SFBJ]

— Sean Stewart-Muniz

Gulf view from penthouse at Seasons at Naples Cay

Jane Bond of Premier Sotheby’s International Realty announced the listing of a contemporary penthouse in Naples for $17.9 million.

The penthouse at Seasons at Naples Cay has five bedrooms and five bathrooms and spans 11,698 square feet. The list price of $17.9 million equates to $1,538 per square foot.

It has Italian porcelain flooring throughout, white quartz countertops, a sauna and a private elevator with a mirrored nickel finish, plus high ceilings, oversized bedrooms, walk-in closets and an automation system to control audio, lighting and temperature.

The unit also provides a 360-degree view from the location of Season at Naples Cay at 81 Seagate Drive in Naples.

The design team of Interiors By Steven G. Inc.  created a new look for the never-before occupied penthouse.

The Four Points by Sheraton in Orlando

Miami Beach-based GLT Group Brokerage announced the sale of a hotel near Universal Studios in Orlando for $23 million.

GLT said the buyer is a Tampa-based private individual who paid about $76,400 per room for the 301-room Four Points by Sheraton Orlando Studio City.

GLT represented the buyer and procured the seller, an out-of-state hotel group.

The buyer plans a multi-million-dollar project to renovate and upgrade the 21-story hotel, which has been flagged under Starwood’s Four Points by Sheraton since 2007.

“It was a quick closing, which indicated the strength of the buyer,” Sean Shahar A. Ziv, president of GLT Group Brokerage, said in a press release. He also said the transaction reflected the strength of the market: The Orlando market “has evolved since the downturn and has become exciting for many investors due to its reputation for local and foreign visitors.”

The hotel is located at 5905 International Drive directly across from Universal Studios.

Allure rendering

The Doral-based developer of the Allure condominium in downtown Fort Myers opened a sales center with a model of a unit in the two-tower, 32-story riverfront development.

JAXI CMD LLC opened the sales galley on the first floor of the Fort Myers City Pier building at 1300 Hendry Street.

The model unit showcases such features as porcelain flooring, quartz countertops and floor-to-ceiling windows. Shared amenities will include a riverfront promenade, spa facilities for men and women, a heated infinity-edge swimming pool and rooftop gardens. Prices for Allure units start in the mid-$300,000s.

JAXI expects to finish construction of the 292-unit Allure development by 2019. The two-tower condominium will rise at 2601 First Street in Fort Myers along the Caloosahatchee River.

JAXI CMD LLC is an affiliate of Doral-based JAXI Builders Inc. The managing members of JAXI CMD LLC are Abel Ramirez and Eduardo Caballero. Ramirez, the president of JAXI Builders, founded the company in 1986, and Caballero joined the company as vice president in 2001.

Game room at the Campus Palms Apartments in Tampa

Franklin Street Capital Advisors obtained a $20 million loan secured by the Campus Palms Apartments in Tampa on behalf of an unidentified Miami-based landlord.

Ben Miller and Casey Siggins of Franklin Street obtained the 10-year non-recourse loan with a 4.85 percent fixed rate of interest. Campus Palms is a student housing complex near the University of South Florida.

Siggins said in a press release that “rates for strong borrowers have started to increase, even for well stabilized assets, due to improved market conditions and the Fed increasing interest rates.”

Franklin Street secured the loan on behalf of a Miami-based investor in multifamily residential properties who focuses on the Tampa market.

Franklin Street said in a press released that the non-recourse loan provided the borrower with a “significant amount of cash-out equity,” which will be used to repay debt on other properties in the borrower’s portfolio and to bid for more rental properties in Tampa.

Siggins said in a press release that “rates for strong borrowers have started to increase, even for well stabilized assets, due to improved market conditions and the Fed increasing interest rates.”

Franklin Street secured the loan on behalf of a Miami-based investor in multifamily residential properties who focuses on the Tampa market.

Franklin Street said in a press released that the non-recourse loan provided the borrower with a “significant amount of cash-out equity,” which will be used to repay debt on other properties in the borrower’s portfolio and to bid for more rental properties in Tampa.

Rendering of Miracle Mile project

The Coral Gables city commission voted to allow the city manager and city attorney to negotiate a contract price up to $21.6 million for construction of a streetscape project on Miracle Mile and Giralda Avenue.

Major construction work on the project is expected to start in summer.

The project will widen sidewalks along Miracle Mile, a four-block stretch of Coral Way in downtown Coral Gables between LeJeune Road and Douglas Road. New trees will be planted and new streetlights installed.

A conversion from angled parking to parallel parking on Miracle Mile will make room for wider sidewalks. Contractors also will upgrade the drainage system on Miracle Mile and replace beige-colored concrete with shell-colored concrete.

Also planned is the removal of curbs on Giralda Avenue, which intersects Miracle Mile. The streetscape project would turn curbless Giralda into a path primarily for pedestrians.

Commissioner Patricia Keon told the Miami Herald she is concerned about the plans for Giralda Avenue: “I have really grave concerns over what we’re doing to development there.” [The Miami Herald] — Mike Seemuth

Redfin: Luxury home prices may have peaked.

U.S. luxury home prices may have peaked as economic problems abroad limit the number of foreign buyers.

Redfin Corp., a brokerage and real estate data provider, reported that prices for the top 5 percent of home sales were flat in 2015 while prices for all other home sales rose by 4.9 percent.

Economic problems in such countries as Brazil, China and Russia are weakening the top end of the residential real estate market.

Dan Conn, CEO of Christie’s International Real Estate, told Bloomberg News: “There’s volatility in China and Russia and there’s the oil issue in the Middle East. I have no doubt there’s an impact overall on the market. You’re not going to see material price increases in most markets.”

The strength of the U.S. dollar against South American currencies has hurt condo sales in Miami, according to Peter Zawleski, owner of Cranespotters.com, a website that tracks development in South Florida.

Anthony M. Graziano, senior managing director at Integra Realty Resources, told Bloomberg News that pre-construction sales of Miami condos slumped last year. Integra data for the Miami condo market shows that buyers signed 25 percent fewer pre-construction purchase contracts.

In the Los Angeles area, a six-bedroom mansion is listed for sale for a reduced price of $3.68 million, but no offers have emerged. Real estate agent Kanney Zahn, who represents the Chinese couple who own the mansion, told Bloomberg they want to sell to raise cash following a recent downturn in the Chinese stock market.

In Houston, sharply lower oil prices are hitting the luxury home market hard. The Houston Association of Realtors reported that sales of homes priced above $500,000 fell 17percent in December from the year-earlier level.

In San Francisco, the luxury home market is still strong, but the inventory of homes listed for sale above $500,000 surged to a record level in October, Patrick Carlisle, chief market analyst at Paragon Research.

Carlisle told Bloomberg that “more sellers are jumping in and more buyers are holding off because they’re worried about where the volatility is going.” [Bloomberg News] — Mike Seemuth

Pembroke Lakes Mall

The owner of the Pembroke Lakes Mall plans to tear down part of the Sears department store there to clear space for a new movie theater.

General Growth Properties proposed that the city of Pembroke Pines allow an amendment to the development agreement for the mall at 12055 Pines Boulevard.

The amendment would eliminate 40,000 square feet of the Sears store, which spans 144,195 square feet, and replace it with a 40,000-square-foot, 100-seat movie theater.

The Pembroke Pines Planning and Zoning Board is scheduled to consider the proposal January 28, but the board may act at a later date, pending studies of the planned project’s impact on traffic.

Sears owns its store and General Growth owns the mall. Holland & Knight attorney Janna Lhota represents General Growth, a public held company traded under ticker symbol GGP.

Sears and its subsidiary Kmart this month announced plans to close 27 stores with poor sales.

The theater at Pembroke Lakes Mall would face competition from Cinemark Paradise 24 at the intersection of Interstate 75 and Sheridan Street and the Regal Cinemas Westfork on Pines Boulevard west of Interstate 75. [South Florida Business Journal]— Mike Seemuth

Frankie Muniz and his Scottsdale, Ariz., home; also his 1995 Volkswagen Jetta

From the New York website: Actor Frankie Muniz has listed his western-style home in Scottsdale, Ariz., for $2.95 million.

“Malcolm in the Middle” and “Sharknado 3” star’s stone and stucco home features five bedrooms, seven bathrooms, a home theater, waterfalls and a pool, according to the New York Post.

1995 Volkswagen Jetta

But his house isn’t the only thing Muniz is selling off. He recently put his 1995 Volkswagen Jetta from the original “The Fast and the Furious” movie up for auction at the classic car auction house Barrett-Jackson.

The car is signed by the late Paul Walker and comes with a custom stereo with a built-in PlayStation 2. Muniz bought the car in 2002 for $100,000.

[NYP] – Christopher Cameron

Stephen Ross, founder of Related Companies (second from left), attended the opening ceremony.

The 12-story Hilton West Palm Beach, a long anticipated convention center hotel, opened Saturday with a ribbon-cutting ceremony as the first guests arrived.

The hotel is connected to the Palm Beach County Convention Center through an enclosed walkway, making it the only hotel in South Florida directly connected to a convention center.

New York-based Related Companies and Hilton Worldwide
developed the hotel. Miami-based architectural firm Nicholas Brosch Wurst Wolfe & Associates and Dallas-based interiors firm Looney and Associates designed the hotel, which has 400 guest rooms and 43 suites.

Related Companies also developed CityPlace, the 72-acre mixed-use development directly across the street from the Hilton West Palm Beach, which is located at 600 Okeechobee Boulevard.

“With Related Companies’ vision, we have programmed a world-class hotel,” John L. Parkinson, general manager, Hilton West Palm Beach, said in a press release.

The Hilton Palm Beach has more than 24,000 square feet of meeting space, including its 13,350-square-foot Oceana Ballroom and its 5,800-square-foot Coral Ballroom as well as two 2,400-square-foot lawn spaces for weddings, fitness programs and special events.

Guest amenities include a fitness center, a poolside bar, a “floatation menu” featuring inflatable toys and rafts for relaxing in the swimming pool, an oversized chessboard and an outdoor fire pit.

The Hilton West Palm Beach also has curated art displays that aim to convey the artistic energy of South Florida, including a Zammy Migdal wall sculpture with more than 140 hand-forged iron sculptural elements and life-sized photography by Chris Leidy, grandson of Lilly Pulitzer.

Food is a focal point of the West Palm Beach hotel, which will house Manor, the hotel’s signature restaurant serving contemporary American cuisine; Galley, a  lobby bar with a nautical design theme; and Provisions, a store with such a mix of freshly prepared snacks and cold-pressed juices as well as artwork and gifts.

Nightly room rates start at $199 during the hotel’s opening week through Friday, February 5, then increase to $259.

230 and 240 Royal Palm Way in Palm Beach (Credit: Meghan McCarthy for the Palm Beach Daily News)

Two adjacent office buildings on Royal Palm Way in Palm Beach sold for about $21 million, the second sale of adjacent buildings on Royal Palm Way, also known as Bankers Row, in recent weeks.

Palm Beach resident Fredrick J. Keitel sold the Fidelity Building at 230 Royal Palm Way and the Wilmington Trust Building at 240 Royal Palm Way.

Keitel had purchased the buildings in 1996 for $2 million. The Palm Beach Daily News confirmed that Keitel sold the buildings on Royal Palm Way for $21.45 million.

The buyer is the O’Conner family, which has a real estate and private equity company with an office on Worth Avenue.

John O’Conner, senior vice president of O’Conner Capital Partners, based in New York City, told the Palm Beach Daily News that the 10,200 square feet of space in the Wilmington Trust Building is fully occupied.  He said the 22,000-square-foot Fidelity Investments Building is 50 percent vacant.

About two weeks ago, a group of Palm Beach investors paid $14 million for the J.P. Morgan Building at 205 Royal Palm Way and an adjacent office building at 221 Royal Palm Way. [Palm Beach Daily News] — Mike Seemuth

Tap 42 serves 50 craft beers.

The owner of two Tap 42 bar-and-restaurants plans to open its third location in Coral Gables.

TapCo Restaurant Group plans to open the third location at 301 Giralda Avenue in March. The 6,350-square-foot Coral Gables location is designed with an outdoor patio and seating for 200 customers.

With more than 50 craft brands on its beer menu, Tap 42 has a large following among young professionals. Tap 42 also sells $5 hamburgers on Mondays, designates Wednesdays as “ladies night,” and serves a weekend brunch.

TapCo now operates Tap 42 locations at 1411 South Andrews Avenue in Fort Lauderdale and 5050 Town Center Circle in Boca Raton.

The CEO of TapCo Restaurant Group, Doug Rudolph, told the Sun-Sentinel that “Tap 42 is a concept that has taken off in South Florida. We are proud of the success it has already gained and are thrilled to expand to Coral Gables.”  [Sun-Sentinel]— Mike Seemuth

The on-campus store will span 29,000 square feet.

Publix Super Markets Inc. won approval to build its first on-campus store at the University of South Florida in Tampa.

The Florida Board of Governors last week approved development of the 29,000-square-foot store on USF land at the intersection of Fletcher Avenue and North Palm Drive in Tampa.

Publix plans to  sign a 21-year ground lease, with options for six five-year extensions,  with the University of South Florida. Construction on the grocery store is expected to be finished by late 2017.

Judy Genshaft, USF system president, said in  press release that when the university decided to replace a 1960s-vintage on-campus housing complex with a village-like development, the top request among students was for an on-campus grocery store.

The Publix grocery store will become an integral part of a $133  million development at USF called Student Housing Village. Its construction is expected to begin later this year.

USF is in a public-private partnership for the development of the Student Housing Village project with Capstone Development Partners LLC and Harrison Street Real Estate Capital. [Tampa Bay Business Journal] — Mike Seemuth

Game room at Atlantico at Tuscany in Delray

Florida Crystals Corp., one of three sugar producers in Palm Beach County, found a sweet spot in real estate when it diversified into apartment development.

The company’s subsidiary FCI Residential Corp. held a ribbon-cutting ceremony last week to open a 322-unit apartment building in southwest Miami-Dade County called Atlantico at Kendall.

More ribbon-cutting ceremonies are planned: FCI currently is developing 10 rental apartment properties in South Florida. FCI expects to build almost 2,800 apartments at a cost of more than $500 million by early 2017.

In addition to Atlantico at Kendall, completed apartment developments in the FCI portfolio include The Park at Kendall, Atlantico at Tuscany in Delray Beach and Toscana in Margate.

Juan Porro, vice president, real estate, at FCI,  told the Palm Beach Post the completed apartments are 95 percent leased.

Porro also the Post that Florida Crystals formed the real estate subsidiary in 2012, and it began making land purchases based on its own market research.

The owners of West Palm Beach-based Florida Crystals are brothers Alfonso Fanjul and José Pepe Fanjul. [Palm Beach Post] — Mike Seemuth