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Mel Gibson re-lists Costa Rican jungle property for $29.75M

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Mel Gibson (Source: Wikipedia)

Movie star and director Mel Gibson re-listed 403 acres in a Costa Rican jungle for sale for $29.75 million.

He reportedly listed his Costa Rican hideaway for the same price three years ago.

Gibson’s property in Costa Rica’s Nicoya Peninsula includes three villas on a hilltop that overlooks the Pacific Ocean.

Each of the three villas has vaulted ceilings, a swimming pool and a barbecue area, plus multiple verandas and balconies.

The largest of the villas has seven bedrooms and eight bathrooms.  The other two have two-bedroom floor plans.

All three villas are a short walk from a sandy beach along the Pacific Ocean, according to the listing held by Robert Davey of Plantacion Properties and Rick Moeser of Christie’s International Real Estate.

Gibson discovered the 403-acre property while seeking sites to film “Apocalypto,” his 2006 adventure film.

Gibson’s Costa Rican property has the highest asking price among several properties he has listed for sale.

Last month he listed a manor in Malibu, California, for $17.5 million, and he wants $26 million for a mansion in Greenwich, Connecticut, that he has been trying to sell since 2014.

Earlier this year, the “Braveheart” star and director sold a four-bedroom house in the exclusive Sherman Oaks neighborhood of Los Angeles for $2.1 million. He also sold a cottage in Augora Hills, California, this year for $683,000. [MansionGlobal]Mike Seemuth


Redevelopment of Oakland Park strip clubs planned

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The former Pure Platinum strip club at 3411 North Federal Highway in Oakland Park (Credit: Inside Fort Lauderdale)

Plans emerged to redevelop two former strip clubs in Oakland Park after the city government won a 30-year legal fight to close the clubs.

Local developer Amos Chess and his business partner Don Deitchman plan to develop a mid-rise apartment property with ground-floor commercial space at the former Pure Platinum strip club at 3411 North Federal Highway.

City development applications show that the Bahama Breeze Caribbean restaurant chain plans to open a location at 3339-3347 North Federal Highway, where the old Solid Gold strip club operated.

Chess agreed to buy the old Pure Platinum location after the prior owner withdrew lawsuits against the city government.

The city went to court to shut down Pure Platinum after it opened in 1987, but a judge sided with the club, ruling that the city must allow nude dancing there.

In 2004, the city banned the sale of alcoholic beverages at strip clubs with nude dancing and ordered an end to physical contact between patrons and performers.

But both Pure Platinum and Solid Gold responded by filing a lawsuit, which led the city to settle the case by suspending enforcement of its drinking and touching rules for 11 years. Under the settlement, Solid Gold was supposed to close by November 2015 and Pure Platinum could remain open if it complied with the city rules.

Both strip clubs sued Oakland Park in 2015 and subsequently combined their operations at the Pure Platinum location.

Earlier this year, the U.S. 11th Circuit Court of Appeals ruled in favor of the city by determining that Oakland Park could restrict strip-club activities.

Michael J. Peter, the operator of the combined strip club, moved its location to Pompano Beach, where it opened in mid-June under the Solid Gold name. [Sun-Sentinel]Mike Seemuth

Tampa-area shopping center sells for $18 million

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Jacksonville-based Sleiman Enterprises bought its first Tampa-area shopping center for $18 million.

Sleiman acquired the Shoppes at Trinity Lakes in the town of Trinity for about $267 per square foot.

Built in 2016, the 67,334-square-foot shopping center in Pasco County has a 96 percent occupancy rate.

Publix is the anchor tenant at the Shoppes at Trinity Lakes, which has 411 parking spaces. Other tenants include GNC, Hair Cuttery, Heartland Dental, Mathnasium, Moe’s Southwest Grill, Nail Dior and Orangetheory Fitness.

The shopping center is located on a 12.96-acre site. Sleiman has the option to build on a 3,000-square-foot section of the site with frontage on State Road 54.

Sleiman, founded in 1955, manages more than 100 shopping centers in Florida and southeast Georgia.

Gale Residences Fort Lauderdale Beach sells out

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Rendering of Gale Residences Fort Lauderdale Beach and (inset) developer Harvey Hernandez

Newgard Development Group has sold all 129 units at Gale Residences Fort Lauderdale Beach, which is under construction and is expected to open early next year.

Newgard also is converting a building next to Gale residences to a 96-room hotel expected to open late next year.

Buyers from South Florida, Canada, Europe, Mexico and South America paid preconstruction prices ranging from the low $400,000s to $1.5 million for condo units at the Gale.

The 12-story Gale development at 401 Bayshore Drive, one block from the ocean, also includes seven two-story townhouses that sold at prices in the high $800,000s.

Harvey Hernandez, CEO of Newgard, told the Sun-Sentinel that the Gale development has succeeded with condos that are smaller than others being developed in Fort Lauderdale’s beach area.

Gale condo units range in size from 800 square feet to 2,100 square feet, and they have one-, two- and three-bedroom floor plans. [Sun-Sentinel]Mike Seemuth

Nobody wants to buy this 214-room mansion in Silicon Valley that’s on sale for $36M

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From TRD New York: A Silicon Valley city wants to unload a historic mansion that is costing millions of dollars a year in upkeep. But nobody with pockets deep enough seems to want it.

Built in 1905, Hayes Mansion is a 214-room hotel and conference center located in San Jose, California. The city bought the private estate for $2.5 million in the early 1980s during the personal-computing boom. It wanted to make the mansion a hub for the tech industry.

But tourists and professionals coming to town for conferences never followed in the way the city had hoped, in part because Hayes Mansion sits on the outskirts of Silicon Valley. An investigation by the San Jose Mercury News found that the city has sunk more than $60 million over the last three decades in subsidizing renovations and maintenance.

San Jose put the mansion up for sale in July, after a deal to sell it for $47 million ($5 million over asking) fell through. It has since slashed the asking price to $36 million.

Take a look inside Hayes Mansion.

Hayes Mansion is an architectural gem. From above, it bears a striking resemblance to President Trump’s Mar-a-Lago estate.

Built in 1905, it belonged to the Hayes Family, who made their fortune mining iron in the Great Lakes area. The Hayes heirs went on to run newspapers in the Bay Area.

But it was more house than one family needed. The Hayes Family sold most of the estate in 1964, and the mansion entered a long period of decay. It sat vacant for many years.

The city of San Jose scooped it up for $2.5 million in the 1980s. It launched a massive renovation that added 214 guest rooms and 133,000 square feet of meeting space.

The renovation caused the city to go $59 million into bond debt, a report from the Mercury News showed. And the hotel and convention center never took off as expected. The mansion is fully operational, but it doesn’t attract the business that city officials projected. Hayes Mansion did not immediately respond to a request for the hotels’ occupancy rate.

Each year, upkeep for the mansion costs taxpayers between $2 million and $6 million.

The city desperately wants to sell the mansion, posting a sale price of $36 million in July.

Hayes Mansion might appeal to tech companies scouting locations for their next event, as San Francisco’s Moscone Center remains closed for renovations. It has 24 meeting rooms.

Executives could wine and dine prospective clients at one of the center’s two restaurants.

There’s also a lounge area with a bar for more casual gatherings.

This outdoor patio looks like a great place to close a deal.

Conference-goers who want to unwind at the end of a long day can shoot some pool.

Or they can take a dip in the palm tree-lined pool.

There are 214 guest rooms and suites on the property. Rooms start at $195 a night.

In addition to conferences, Hayes Mansion hosts weddings, anniversary and birthday parties, fundraisers, and other gala-type affairs in its 6,600-square-foot ballroom.

And it could be all yours for the bargain price of $36 million.

Arquitectonica-designed hotel going up in Orlando’s Lake Nona area

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Rendering of Arquitectonica-designed hotel in Orlando’s Lake Nona community

Construction of a 215-room hotel designed by Miami-based Arquitectonica is scheduled to start early next year in Orlando’s Lake Nona community.

Tavistock Development Company is developing the hotel as part of the next phase of a mixed-use development called Lake Nona Town Center.

The 16-story hotel will feature an 80-seat restaurant, a rooftop lounge and swimming pool, a 3,200-square-foot ballroom and more than 6,000 square feet of meeting space.

The hotel will be located next to a multi-purpose green space in Lake Nona Town Center called The Lawn.

The first phase of Lake Nona Town Center opened in January 2016 with an 85,000-square-foot office building and 16,000 square feet of retail and restaurant space, a five-story parking garage and two hotels, a Marriott Residence Inn and a Courtyard by Marriott.

The master-planned Lake Nona community is part of the real estate portfolio of Bahamas-based Tavistock, a diversified real estate firm.

The pipeline of development projects at Lake Nona includes a $400 million training and innovation facility for accounting firm KPMG and a high-tech fulfillment center for online retailer Amazon.

As many as 135 Applebee’s restaurants may close this year

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Its parent company expects to close at least 105 Applebee’s restaurants this year. (Source: WSVN.com)

DineEquity Inc., parent company of the Applebee’s restaurant chain, plans to close 105 to 135 of the diner-style restaurants this year.

That is more than double the company’s earlier expectation to close 40 to 60 locations in the nationwide Applebee’s Neighborhood Grill & Bar chain this year.

Applebee’s has 10 locations in South Florida, according to its website.

Glendale, California-based DineEquity Inc. also announced Aug. 10 that it plans to close 20 to 25 IHOP restaurants this year, up from its earlier expectation of closing about 18 IHOP locations.

The IHOP website shows more than two dozen locations in South Florida.

Publicly traded DineEquity announced the expected closures together with its financial results for the second quarter of the year. Consolidated revenue fell to $155 million from $160 million in last year’s second quarter, and net income dropped to $21.2 million from $26.8 million.

The company said it expects sales at Applebee’s restaurants to fall 6 percent to 8 percent this year, compared with last year. IHOP sales are expected to decline 1 percent to 3 percent this year.

Fort Lauderdale’s highest-priced home is back on the market

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1600 Ponce De Leon Drive in Fort Lauderdale

A waterfront mansion in Fort Lauderdale has been re-listed for $32 million, the highest asking price among homes for sale in the city.

The three-story residence in the city’s exclusive Rio Vista neighborhood has eight bedrooms and eight bathrooms and spans more than 22,000 square feet. The property includes a 3,200-square-foot guest house.

Built in 2007, the mansion is owned by Donald McKinney, CEO of Palo Alto, California-based UnBound Technologies.

DND Associates, an affiliate of brokerage ONE Sotheby’s, has the listing for the property at 1600 Ponce De Leon Drive in Fort Lauderdale.

DND previously had listed the mansion for sale with the current $32 million asking price, then took it off the market while it underwent interior and exterior renovations during the last year.

The property, located on a two-acre parcel in a cul-de-sac, has a dock and 500 linear feet of waterfront along the New River.

About 6,000 square feet of granite-paved terraces wrap around the main house. Landscape architect Raymond Jungles designed greenery on the grounds of the mansion.

Handcrafted interior details include a wooden chandelier in the grand foyer and a Brazilian Teak staircase connecting all three floors of the main house.

The master suite on the second floor has a sitting area, a large walk-in closet and an onyx-paved bathroom. The third floor features a hardwood bar, lounge and cigar-smoking area.


The future of the Hamptons is uncertain as young, rich buyers ditch mega-mansions and tennis courts

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From TRD New York: The struggling Hamptons real estate market is rebounding — but young buyers are less flashy than previous generations.

“Those great big huge houses from the 1990s and early 2000s, they’re sitting,” Paul Brennan, a broker at Douglas Elliman Real Estate, told Bloomberg’s James Tarmy. “I think that conspicuous consumption isn’t in vogue these days, and that’s why bigger isn’t better.”

The shift away from ultra-luxury is hurting the richest homeowners.

Rather than sprawling estates that are difficult to maintain, today’s buyers prefer vacation homes that are relaxing. That means fewer lawns, gardens, tennis courts, and rooms to maintain.

At least one celebrity has fallen prey to the trend. Matt Lauer’s 25-acre Hamptons estate recently got a $2 million price chop and has languished on the market for more than a year.

The end of 2016 was challenging for the Hamptons luxury real-estate market,  according to several brokerages that released reports. Data from the luxury real-estate company  Brown Harris Stevens  showed that average home prices had fallen by 23.1% in the fourth quarter year-over-year.

In the second quarter, 48 homes that cost $5 million or more sold a vast improvement compared with the past year and a half, according to Bloomberg.

Experts blamed the election for the previous downturn.

“This was really due to the election,” Aspasia Comnas, executive managing director of Brown Harris Stevens of the Hamptons, told Business Insider’s Madeline Stone. “We’re a secondary-home market, and if our buyers or sellers feel at all uncertain about what their economic future will look like — and with a change in administration, there was no way but for there to be a change in the economy — buyers and sellers hold back.”

The Hamptons market has also been hurt by the growing popularity of the Hudson Valley, which has renowned hiking and food scenes.

Kimco plans makeover for Palm Beach Gardens shopping center

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Palm Beach Gardens Plaza

Kimco Realty plans to redevelop its shopping center in Palm Beach Gardens by building a fitness club, rental apartments and commercial space there.

Kimco’s plan would transform Palm Beach Gardens Plaza, formerly known as Loehmann’s Plaza, a 14-acre property just east of Interstate 95 at the intersection of PGA Boulevard and RCA Boulevard.

The redevelopment plan arose from a lawsuit Kimco filed against the city of Palm Beach Gardens in 2013. Kimco sued after the city rejected its plan to put a BJ’s Wholesale Club at the shopping center.

In January, the city approved a settlement of the lawsuit with terms that require Kimco to submit a formal plan to redevelop the shopping center by December.

Kimco would build a three-story Life Time fitness club, 200 luxury apartments and 25 loft apartments, plus residential parking, retail shops, restaurants and office space. Kimco is a real estate investment trust based in New York. [Palm Beach Post] Mike Seemuth

Brewery with Latin vibe set to open in Wynwood

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Cheers! Anheuser-Busch InBev is supporting the startup of a Wynwood brewery.

The maker of Busch beer is supporting the startup of a new brewery in Wynwood this week.

Veza Sur Brewing is set to open Friday in a 10,000-square-foot space at 55 Northwest 25 Street.

Veza Sur Brewing is the first South Florida brewery that beer giant Anheuser-Busch InBev has funded as part of a national push to create or acquire craft-style beer brands.

Veza Sur’s Wynwood location is several blocks away from Concrete Beach Brewing, which is backed by Boston Beer Company.

A trio is opening Veza Sur: Chris and Jeremy Cox of 10 Barrel Brewing Co. in Oregon, and Berny Silberwasser of Bogota Beer Company.

A taproom will account for half of their Wynwood space, which will feature a 40-foot bar and customer views of the on-site brewery in operation.

Asbjorn Gerlach, owner Kross Brewery in Chile, is the brewmaster at Veza Sur, which will brew on a 15-barrel system and will serve 18 types of beer. [Miami.com] Mike Seemuth

Million-dollar mortgage volume drops 66% in Palm Beach County

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JPMorgan Chase was leading million-dollar mortgage lender in the six months ended in July.

A survey by a law firm shows that large mortgage loans of $1 million or more plunged in Palm Beach County during the six months ended in July, compared to the same period last year.

The countywide volume of mortgage loans of $1 million or more during the February-July period fell to $696 million from $2.053 billion last year, a 66 percent dive.

The survey by Rabideau Law also showed that the number of mortgages of $1 million or more during the six-month period was almost unchanged at 352, up slightly from 348 last year.

Among all mortgage lenders in Palm Beach County during the February-July period, JPMorgan Chase Bank NA had the biggest volume of million-dollar loans to both residential and commercial borrowers.

Countywide last month, the biggest residential mortgage was a $6 million loan to Craig Hunter from Union Bank & Trust. The biggest commercial mortgage last month was a $44.3 million loan from one limited liability company (VMC Lender LLC) to another (GB Palm Beach LLC).

City takes possession of vacant bio-science research building

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The former home of the failed Vaccine and Gene Therapy Institute in Port St. Lucie

The city of Port St. Lucie took possession of a 107,000-square-foot building vacated by a medical research institute that ceased operations.

The nonprofit Vaccine and Gene Therapy Institute failed despite attracting $120 million in public funding from city and state sources.

Port St. Lucie Mayor Gregory Oravec told the Palm Beach Post the city wants to sell or lease the building. The city has renamed the building the Florida Center for Bio-Sciences.

Port St. Lucie last year had retained brokerage firm Colliers International to market the building. [Palm Beach Post] Mike Seemuth

Argentine investors pay $8M for Kendall area office building

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Tamiami Metro Office Building. Inset: Alex Zylberglait and Juan Martinez

UPDATED August 14th, 12:55 p.m.: An Argentine investment group just paid $7.9 million for an office building in the Kendall submarket, according to a press release.

Miami-based Metro Capital Partners, led by Juan M. Martinez, sold the 39,069-square-foot Tamiami Metro building at 13595 Southwest 134th Avenue for about $202 per square foot. The buyer, Tamiami Metro USA LLC, is led by Fabian Tutundjian, Claudio Serafin Tutundjian and Patricia Tutundjian, according to records.

Metro Capital Partners bought the two-story office building out of foreclosure in 2013 for $3.2 million, records show, meaning it sold for more than double its last sale price.

Marcus & Millichap’s Alex Zylberglait and Francisco Baserva brokered the deal on behalf of the seller and buyer. The firm listed the Tamiami Metro building for $8.3 million in May – so it traded at a nearly five percent discount. Zylberglait said the owner spent about $500,000 in renovations.

The Tamiami Metro building was completed in 2007, but wasn’t built out until 2014. The property has 32 office units which range from 500 square feet to 1,500 square feet, according to LoopNet. As of May, the building was 100 percent leased, with rents at $21.50 per square foot.

Vacancy rates are dropping in Miami-Dade’s office market, especially in the Kendall and Miami Airport areas, according to a Colliers International South Florida second quarter report. The vacancy rate fell 0.3 percent from the previous quarter to 9.4 percent, the lowest of all three counties. Overall rents inched up 0.4 percent to about $34 per square foot. Class A office rents rose 1.1 percent to $41.89 per square foot.

Some office projects in the works include the mixed-use Panorama Tower in Brickell, and the office component of Wynwood 25.  

Correction: A previous version of the article stated the building sold for $7.2 million. It was sold for $7.9 million. 

Skeleton of Zaha Hadid Architects’ Beijing airport terminal unveiled

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Beijing Airport rendering

From TRD New York: Beijing Airport could soon become the largest aviation hub in the world, and it’s about to get a piece of architecture befitting of such a superlative. Zaha Hadid Architects designed the new passenger terminal at the Chinese airport and now, images of its colossal skeleton are here.

With five arms spreading out from a central core, the terminal will cover a whopping 3.37 million square feet. Each of the structure’s appendages will use images from Chinese culture, including “silk, tea, porcelain, farmlands and Chinese gardens,” Arch Daily reports.

The arms also play an important role for rushed commuters, with the distances from the far-end of each wing to the central building “will be less than 600 meters” in all.

Check it out below.

 

 


Family of UK billionaire Mike Ashley buys Miami Beach home for $5.1M

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6655 Brevity Lane and Mike Ashley

A company tied to the family of U.K. billionaire Mike Ashley paid $5.1 million for a non-waterfront home on Miami Beach’s La Gorce Island, property records show.

Former sports gambling CEO Steven Budin and Melisse Budin sold the estate at 6655 Brevity Lane to Mash Brevity Lane LLLP, which is controlled by Ashley’s children, Anna, Oliver and Matilda.

Both the buyer and seller have ties to the sports world. Steve Budin, who led offshore and online sports gambling companies until a government crackdown on the industry in the late 1990s, later co-created SportsInfo.com, a pay-per-view sports handicapping company, according to Gambling911.com.

Mike Ashley founded Sports Direct, a U.K.-based sporting retailer, and he owns the Newcastle United Football Club. He’s worth about $3.3 billion, according to Forbes. Ashley transferred ownership of his waterfront estate nearby at 42 La Gorce Circle for $45 million to a company controlled by his son-in-law, Michael P. Murray, in April of last year.

The Ashleys just picked up the six-bedroom, nearly 7,600-square-foot home on Brevity Lane for $673 per square foot. It features a pool and deck, library, gourmet kitchen, Italian marble floors, Venetian plaster and a grand staircase. The property also has a master bedroom, three garden-view bedrooms, a two-car garage and a four-car carport, according to the listing.

Property records show Budin paid $978,000 for the 1936 home in 1998. It hit the market in March for $6.8 million, which means it sold at a 25 percent discount. The house sits on nearly 18,000 square feet.

Geane Brito of Chariff Realty Group represented the seller, and Esther Percal of EWM Realty International represented the buyer, according to Redfin. Percal said the buyers wanted to own an auxiliary property nearby.

“The market’s been challenging as we all know, but frankly every non-waterfront home [on the market] on La Gorce Island seems to be under contract,” she said. The Ashleys paid the lowest price per-square-foot for a non-waterfront La Gorce home of the four closed sales this year. The highest was the sale of 6650 Pine Tree Lane, which sold for $1,035 per square foot.

 

Renovations to an Allapattah Section 8 housing development grind to halt

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Civic Towers Miami

Delays are mounting on a publicly financed renovation project for a Section 8 housing development in Allapattah due to permit discrepancies and shoddy construction paperwork, according to the Miami Herald.

The 196-unit Civic Towers at 1855 Northwest 15th Avenue sits on a 2.81-acre lot. Nearly all of the 17-story building’s units are Section 8 housing. To qualify, residents must make less than 50 percent of the area median income.

Redwood Housing Partners of Burlingame, California, which bought the Civic Towers in Allapattah for $25 million in February, promised to renovate the development after purchasing the property from Cordova, Tennessee-based Global Ministries Foundation. Six months later tenants remain living in construction-crippled units, with exposed wires, barred windows and rats, according to the Herald.

Rent for a one-bedroom is $864 a month, according to financial website Credio.

Delays were related to misrepresentations by the project’s assigned contractor, Louisiana-based Pete Vicari General Contractor Inc., by underreporting the value and scope of the project, according to the Herald.

Records the newspaper reviewed show that Pete Vicari General Contractor applied for a master permit from Miami’s Building Department, and stated that it was performing close to $10 million in combined renovations to the buildings and paid $136,332.92 in permit fees to the city.

Building officials put a hold on the permit this month out of concern that the stated value of the project was incorrect. Vicari said the job was actually worth $22.4 million and paid an additional $169,599.40 in fees. But the Herald reported Vicari successfully applied for up to $38 million in tax credits from the Florida Housing Finance Corp., which lists the initial value of the construction contracts at $32.6 million in November credit underwriting reports.

Redwood Housing Partners, led by Ryan Fuson, responded in an email to the Herald saying: “At this time we do not believe it is appropriate for us to discuss the topics you mention below as we understand there is an ongoing dispute between the general contractor and a subcontractor.”

This is the latest string in the county’s legal troubles involving affordable housing and workforce housing. South Florida’s biggest developer Related Group‘s affordable housing arm, Related Urban, is being investigated by the U.S. Attorney’s Office as part of an expanding probe into South Florida’s affordable housing industry. [The Miami Herald] Amanda Rabines 

Miami Beach residents push back against plans to raise streets to combat sea level rise

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Crews installing pumps in Miami Beach (Credit: Getty Images)

Flooding on North Bay Road in July

After a recent bout of heavy rains, some Mid-Miami Beach homeowners say city sea level mitigation plans could make things worse.

Two weeks ago, developer Matis Cohen was busy helping motorists push their stranded cars as waist-high water flushed through the streets of Miami Beach. Unlike many residents who were hunkered down at home or at work as more than six inches of rain flooded the city in two hours, Cohen was out in the streets, checking on tenants of his rental properties.

Cohen, who said he was lucky to have a Jeep, wants the city to speed up its plans to raise streets and install pumps. “We’ve spent somewhere around $80 million so far out of a $400 million plan, and clearly a system cannot be judged if it is only 15-percent implemented,” he added.

More than six inches of rain knocked out a primary Florida Power & Light feeder, resulting in the loss of several transformers, which in turn cut the secondary power sources used to power pumps. Eric Carpenter, the city’s public works director, called the recent flooding “atypical.”

But some residents of the La Gorce and Lakeview neighborhoods aren’t so convinced as the city prepares to start a $100 million flood-prevention project that will raise street elevations an average of 2 feet in those neighborhoods.

In the meantime, “we are absolutely speeding up some additional back-up power discussions,” Carpenter said, but the city has been stalled in talks with a vendor over the installation of additional generators. In the meantime, the city is authorized to move forward with another contractor on an emergency basis to switch over to temporary generators. The 14 pumps installed so far are doing what they were designed to do, Carpenter said, which is to keep streets up to 2.7 feet dry even during so-called King-tide events when flooding can go higher than two feet.

Miami Beach Mayor Philip Levine won the 2013 election thanks in part to a campaign ad that showed him paddling his dog Earl through flooded streets. Levine, who said “he got flooded into office,” raised storm water fees by 50 to 70 percent, which allowed city officials to get bond money to install pumps and begin raising streets. Nearly all city streets will eventually be raised to a minimum of 3.5 feet and sea walls will be raised to a height of 5.7 feet.

Levine’s efforts have generated global attention, and the city has become a laboratory of sorts for sea level rise mitigation efforts. But some residents are now pushing back against those plans, arguing that it could cause more harm than good – especially in mid-Miami Beach – with trees being ripped out and raised streets sending water into their houses during heavy rains.

Ed Tobin, a 50-year beach resident and a former city commissioner, has long been involved in Miami Beach infrastructure projects. He and his neighbors on North Bay Road have been concerned about what he called “deferred maintenance issues” tied to the city’s storm water drainage system.

“We have drains that are deadlined, that got closed off over the years. We used to have drains in the center of the roadway that have been paved over,” Tobin said, adding that longtime Miami Beach residents are used to some flooding after heavy rains.

Raising streets by 18 inches could “bring other consequences. … Remember the streets are about 22-feet wide. If you eliminate where the water typically settled on the street at 22 feet of area, you push water 22 feet closer to homes,” Tobin said. “So without a significant engineering plan to mitigate all that water that is going to be heading to the homes, you are going to have standing water in living rooms until you can move the water.”

The city is taking those concerns into consideration, Carpenter said. Storm water systems are being designed to handle heavy rainfall not only in public right-of-way areas, but also on adjacent private homes.

“We are designing it in such a way that we are keeping the water levels below finished floor elevations for all of the homes in the neighborhood,” said Carpenter. “When we install the new pumps, we are sizing the pumps to be able to accept not only all of the water on the public right-of-way but handle all the water that falls on private property.”

Carpenter recognized that many residents have “construction fatigue,” when it comes to the disruptions caused by installing pumps and raising roads. As a result, city officials extended the timetable from five to seven years to eight to 10 years. The city now plans to complete the massive project in 2026.

But Tobin said he and his neighbors still have concerns. For residents who have lived in Miami Beach since the ’80s and ’90s, the city has always told them to “be patient and wait” for the city to redo draining systems.

“Most drainage systems in South Florida allow for some amount of water to collect in the street for an hour or so,” he said. “If you are going to eliminate the area where the water typically settles you are going to create a significant problem.”

Coral Gables aims to reimagine its downtown into a chic retail destination

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Rendering of the Coral Gables streetscape project and Francesca Valdes

Francesca Valdes is on a mission to reshape the retail mix in downtown Coral Gables.

For the past 10 months, the former Tiffany & Co. spokesperson has been scouring across South Florida eyeing potential new tenants that could liven up the offerings on Miracle Mile and surrounding streets such as Ponce de Leon Boulevard and Giralda and Aragon avenues.

“We have five targets,” Valdes told The Real Deal. “Women’s and men’s apparel, women’s and men’s accessories, athleisure, chef-driven restaurant concepts and home design stores. That is the trend successful downtowns are following.”

Although her official title is business development specialist, Valdes’ main focus is creating a retail mix that complements the storefronts that already exist in downtown Coral Gables. Valdes was hired in November, about the same time consulting firm Downtown Works completed a retail study that concluded Coral Gables has an authentic downtown with a good scale for retail.

However, the study identified several weaknesses such as building colonnades that reduce storefront visibility and accessibility and a cluster of bridal stores that do not attract repeat customers and do not serve local customers well. Downtown Works counted 260 storefronts along Miracle Mile and the surrounding streets. Of those, 12 percent were vacant as of June 22, 2016. The study also found that 170 storefronts could be considered actual retailers, but only 14 percent sold apparel, shoes and accessories.

The city is also in the midst of a long-delayed $21 million streetscape project along Miracle Mile and Giralda Avenue. The goal is to create a pedestrian-friendly experience with garden areas, outdoor dining, improved lighting, wayfinding and public art.

The report suggested the city and stakeholder groups like the Coral Gables Chamber of Commerce increase apparel, shoes and accessory retailers to 24 percent, as well as bump up home and gift uses from 8 percent to 15 percent. Downtown Works also warned that downtown Coral Gables faces stiff competition from retail development at the Shops at Sunset Place in South Miami and Coconut Grove’s CocoWalk, owned by Federal Realty Investment Trust, Grass River Property and Comras Company.

Valdes, who was a media relations manager for Tiffany & Co. out of its corporate office in New York City from 2011 to 2015, has been traveling around South Florida to find emerging retailers who are considering opening a second or third location, as well as reaching out to national brands. “We are not trying to steal from other cities,” she said. “But there may be a shop in Delray Beach or Fort Lauderdale that is looking to expand. Their next stop could be Coral Gables.”

Valdes provides guided tours for potential retailers, as well as facilitates meetings with landlords and brokers looking for tenants. She declined to mention which retailers she has approached because no deals have been finalized.

In addition, Coral Gables is also working with existing landlords to develop a retail strategy to create a competitive downtown. “The greater mix we have, the better everyone will do,” Valdes said. “It is a collaborative process.”

Allen Morris, a Coral Gables-based builder whose firm is partnering with the Related Group to develop Coral Gables City Center near downtown, said a retail plan for Miracle Mile and the surrounding streets is long overdue. “It has to be treated seriously,” Morris said. “We really have to be very strategic about the retail experience we want for downtown Coral Gables.”

Fannie and Freddie are quietly unloading more mortgage risk to bondholders

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FHFA Director Melvin Watt

From TRD New York: Fannie Mae and Freddie Mac have built a trillion-dollar business insuring mortgages. But increasingly they are doing something entirely different: selling off mortgage-backed securities without any guarantee that the two firms will pay in the event of a default.

Sales of these so-called credit-risk transfers are expected to reach a record $15 billion this year, up from $13 billion last year, according to JP Morgan Securities. The trend comes as lawmakers debate the future of the two mortgage giants and ponder a potential smaller role for the federal government in the U.S. housing market.

“The government’s footprint in the mortgage market is receding quickly and significantly,” Moody’s Analytics’ chief economist Mark Zandi told the Wall Street Journal.

Fannie and Freddie buy mortgages from lenders, stamp them with a repayment guarantee in the event of a default and then sell them off in the form of mortgage-backed securities. In return for the guarantee, bond investors accept lower returns.

Credit-risk transfers, in contrast, carry no such guarantee and come with higher returns. But as investors grow more bullish on the housing market, the average yield on one version of the transfers has halved over the past two years, according to the Journal.

The government has always implicitly backed Fannie and Freddie’s repayment guarantee and now holds the two firms in conservatorship. Selling mortgage bonds without the guarantee reduces the role of the federal government in the mortgage market, and some advocates of credit-risk transfers would like to see Fannie and Freddie dismantled altogether or replaced with private firms.

In June, two U.S Senators proposed splitting up Fannie and Freddie into single-family and multi-family businesses.  [WSJ]Konrad Putzier

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