1399 Southwest First Avenue, Camilo Lopez and Jorge Escobar

Broker Alfonso Jaramillo

TSG Group just paid $31.75 million for a development site in Brickell.

Chestnut Capital LLC, a company managed by Michael B. and Allison B. Smith, sold the 44,575-square-foot property at 1399 Southwest First Avenue to TSG for $712 per square foot. Alfonso Jaramillo of Fortune International Realty brokered the off-market deal, according to a press release.

Jorge Escobar, managing partner at TSG, said the firm hasn’t decided what it will do with the property. A three-story, nearly 35,000-square-foot office building occupies the site. Built in 1979, it is anchored by the Consulate General of Mexico. It’s on the same block as the 52-story Infinity Brickell condo tower that was completed in 2008.

The roughly 1-acre plot is zoned T6-48B-O, which allows for up to 500 residential units or 1,000 hotel keys per acre.

The Brickell area has seen a handful of large development deals this year, including the $50 million sale of the BankUnited building at 1428 Brickell Avenue to Ytech and the $29.5 million sale of 90 Southwest Eighth Street to Gazit-Globe’s US arm. Jaramillo said there is very little land left in Brickell.

Records show Chestnut Capital bought the site from what is now BNY Mellon for $5.62 million in 2003, which means the entity just sold it for more than five times what it paid about 14 years ago.

The site is across the street from China City Construction and American Da Tang Group’s property, where the Chinese developers plan to build a nearly $1 billion mixed-use development, CCCC Miami Towers.

TSG, led by Camilo Lopez and Escobar, completed the nearby Cassa Brickell last year. The real estate firm recently brought on One Sotheby’s International Realty to handle remaining sales of the 80-unit, 10-story condo building.

The Real Deal South Florida is pleased to announce the publication of our fall issue, which is set to hit newsstands this September!

The fall issue is packed with the most important industry news and insider information, including a ranking of the top brokerages in the tri-county region and a look at the priciest condo sales of this cycle. We survey the biggest multifamily investment deals of the last 12 months and look at the trends taking over environmentally-conscious building in that market, while also checking in on what’s happening with the area’s retail brokers. We’re also putting spotlights on two areas in flux, profiling Little Havana’s evolution and western Broward County’s increasing commercial might.

Email Advertising@TheRealDeal.com to learn more about advertising opportunities.

Tropical Villas in Homestead Inset: Brandon Brugal and Uccio Zecchini

The building boom in Homestead continues with yet another developer announcing plans for a new single-family home community.

The Miami-based developer, 360 Builders, will be delivering 64 single-family homes to Homestead with prices ranging from $328,900 to $388,900. The community, called Tropical Villas at 201 Northeast 18th Avenue, has completed its first phase of development, consisting of 26 homes.

The houses range from about 1,901 square feet to 2,280 square feet, according to the community’s website. Each custom home sits on a 7,500-square-foot lot. The price per square foot equates to about $170.

BZG International’s Brandon Brugal and Uccio Zecchini are handling sales. The duo took on the listings in 2016, but Zecchini said the market was slow at the time. “When we received the project no one was living here,” Zecchini said, calling the area a “ghost town.” But the rise of development sparked more local interest, he said.

As of today 18 homes have sold, with five families already living in the community. Zechinni said he expects to sell out the first phase within the next couple of months. Phase two, which consists of 16 homes, is set to be completed by the end of this year.

The entire site spans more than 8 acres. Zecchini said the developers bought the site in 2014, but 360 Builders declined to comment on the price which is not available in records.

The developers also plan to buy an adjacent lot and build another 22 homes in the future, Zecchini said.

The Homestead region has gone through tremendous change over recent years with bigger developers like Lennar Corp. and D.R. Horton acquiring and selling land in the area. Just last month Miami-based Lennar Corp. purchased more than 77 acres of land in Homestead for $10.75 million. That same month, Orlando-based AQRE Property Management paid $8.2 million for 78 units in a Caribbean Isle Villas, a condominium community in Homestead.

After 12 years without a new high-rise apartment building, the Brickell neighborhood will welcome its first in November, Solitair Brickell.

Multifamily developer Zom just launched preleasing for Solitair Brickell, a 50-story, 438-unit building at 86 Southwest Eighth Street, said Greg West, president of Zom. Residents will begin to move into the first 20 floors of the building in November, and the remaining floors will be delivered by February.

Because Solitair will still be under construction when the first phase is completed later this year, Zom is offering a discount on rents. Studio apartments will start at $1,600, one-bedrooms at $1,850 and two-bedrooms at $2,500.

When the second phase opens early next year, monthly asking rents will increase by about 16 percent for studios and one-bedrooms, up to $1,900 and $2,200, respectively. The preconstruction incentive is higher for two-bedroom apartments, with monthly rents increasing by 19 percent to $3,100. Zom just opened an off-site sales center at Mary Brickell Village.

Stantec is designing the building, which will include a pool and amenity area on the 50th floor rooftop and retail on the ground floor. The Orlando-based developer paid $16.8 million for the site in 2014 and broke ground on the project last year with a $108 million loan from JP Morgan.

Solitair is a joint venture between Zom and AIG Global Real Estate, an affiliate of the insurance provider AIG that both develops and invests in real estate. It’s one of three rental projects Zom has underway in Greater Downtown Miami, including Maizon, Avant at Met Square and Luma at Miami Worldcenter.

A number of rental projects are in the pipeline in a market that’s been dominated by condo development. “There’s more viability for rental housing than there has been before,” West said. “Regardless of their age, [renters will be] people who value pedestrian proximity to the things they do in their life.”

Solitair is across the street from Brickell City Centre, and surrounded by new development like SLS Lux and Brickell Heights.

Panorama Tower will open soon after Solitair in January, a spokesperson said, adding another 821 luxury apartments to the Brickell market. The 85-story mixed-use tower will also become the tallest residential building south of Manhattan in the U.S. Apartment rents at Panorama will start at about $2,420 a month, and to encourage residents to ditch their cars, developer Florida East Coast Realty will offer a $1,000 bonus for renters who do not require a parking space.

This year alone, nearly 13,500 new apartments will be delivered in South Florida, marking the fifth most active U.S. metro for multifamily construction, according to a recent report. During the first half of this year, the supply of new inventory outpaced demand with rents increasing at a slower pace, Berkadia reported. Landlords are also expanding average concessions on rent by 10 basis points to 0.6 percent of asking rent.

WeWork’s Adam Neumann and UrWork’s Mao Daqing

From TRD New York: WeWork is taking on UrWork in London, claiming the Chinese rival is infringing on its trademarks.

The shared-workspace behemoth filed a lawsuit in the U.K.’s High Court of Justice’s Chancer Division, claiming UrWork of “passing off,” or trying to confuse consumers that it’s somehow linked to WeWork, Bloomberg reported.

“WeWork has invested substantial time and money building a globally recognizable brand. Our name is distinctive and well known,” a representative for WeWork wrote in an email. “It is a valuable asset, is a source of pride to the company, and represents an important lifestyle choice for our members. That is why we have taken action in the U.K.”

The legal spat comes as two companies battle each other for market share. WeWork is the largest company of its kind across the globe, but UrWork owns its home turf in China – where WeWork is trying to expand its footprint – and has aims of expanding on the international scene in places like London, Singapore, New York and Los Angeles.

UrWork, on the other hand, argues that it’s not infringing on WeWork’s rights.

“‘Work’ is an open commonly used word; the trademarks relate to ’UR’ and ’we’ and they’re very different so WeWork’s claim of trademark infringement has no legal basis,” a spokesperson for the Beijing-based startup wrote in a statement.

WeWork recently raised $760 million in a fundraising round that’s reportedly valued the company at $20 billion. UrWork reportedly raised $236 million in just the past three months, and is backed by a fund linked to billionaire Jack Ma’s Ant Financial.

UrWork recently partnered with U.S. co-working firm Serendipity Labs to jointly lease 34,000 square feet at FoSun International’s 28 Liberty Street. It’s the first U.S. location for UrWork. [Bloomberg] – Rich Bockmann

Rendering of University Bridge Residences

Miami-based Global City Development is teaming up with two Canadian builders to bring 492 condos geared toward college students across the street from Florida International University’s main campus.

In a partnership with Toronto’s Podium Development and Reichmann International, Global City is planning a new 20-floor luxury tower designed by Arquitectonica called University Bridge Residences, which will offer units from $190,000 to the high $600,000s. Cervera Real Estate is the exclusive sales and marketing firm.

“These buildings are typically owned by insurance companies and real estate investment trusts,” said Global City principal Brian Pearl. “This is a new trend. We think parents who want their kids to be in the best location near FIU will want to buy. We also think it will be attractive for investors who want to rent to students.”

The development site, at 740 Southwest 109th Avenue, is currently home to a 66-unit apartment complex built in 1983. Property records show College Suites Associates LLC, a company affiliated with the developers’ University Bridge GP LLC, purchased the property for $16.6 million in December.

Floorplans at University Bridge range from 317 square feet to 1,634 square feet, featuring studios and units with up to four bedrooms, as well as three- to four-bedroom townhouses. Amenities include a resort-style pool and a sundeck, a fitness room, an indoor lounge and game room. The rooftop will feature a sunset terrace with dining areas, a yoga lawn and performance stage, according to a press release.

Most units will be between 300 square feet to 600 square feet. “College students haven’t had a lot of time to accumulate stuff so they don’t need big spaces,” Pearl said. “They also don’t need much parking. We have a designed a special drop-off location to make it easier to use ridesharing services like Uber and Lyft.”

Since the building is for student housing, University Bridge will also have shared study areas on each residential floor, a business center with four conference rooms, direct internet access to FIU and an outdoor video screen. The developers are also setting aside 7,000 square feet on the ground floor for retail stores or restaurants geared to FIU students.

The project will also be connected to the campus via a pedestrian bridge over Southwest Eighth Street and will be completed by the start of the 2020-2021 academic year. It will be managed by Landmark Properties, a firm specializing in off-campus student housing.

Retail vacancies (Credit: Loozrboy via Flickr)

From TRD New York: Retailer bankruptcies are expected to only have a “limited” impact on CMBS loans and real estate investment trusts, according to Moody’s.

The rating agency said that despite challenges facing the retail sector, the risk to CMBS and REITs, along with collateralized loan obligations and asset-backed securities on credit card loans, are “marginal because exposure is relatively low, and the retail distress is concentrated in particular types of retail companies and real estate,” the Financial Times reported.

Moody’s estimates that 1.5 percent of the CMBS it grades and only two of the 22 REITs it tracks are exposed to struggling shopping malls and weak centers. And only about 6 percent of commercial real estate-backed collateralized debt is exposed to retail.

“Retail is clearly going through some stress, if not distress,” said Michael Temple of Pioneer Investments. “The question is whether there will be waves that cascade into other markets and the broader economy.”

Competition from e-commerce, along with loads of debt and over-stretched footprints have led to 24 retailers falling into bankruptcy this year, according to S&P Global Market Intelligence. That’s already ahead of the total of 18 bankruptcies for all of 2016.

Still, others were not so convinced that the so-called “death of retail” will have only limited impact on real estate.

“The bad things that have happened to retail have a substantial negative impact on owners of retail real estate,” said Jim Sullivan of research firm Green Street Advisors. “And the owners of retail real estate are in trouble. We have seen malls closed and we will see more close.”

Vornado Realty Trust CEO Steve Roth recently told investors that most retail in the country “needs to disappear,” and said that opportunistic investors will make fat returns from the downward spiral of retail. [FT] – Rich Bockmann

Condo sales fell drastically last week in Miami-Dade County.

In Miami-Dade, 109 units sold last week for $38 million, a significant drop from the previous week’s $70 million. The average prices were about $348,000 per unit and nearly $260 per square foot.

The priciest closing was the $6 million sale of former Formula 1 driver Enrique Bernoldi’s three-bedroom, 2,508-square-foot unit at the Continuum. Eddy Martinez and Roland Ortiz of Worldwide Properties co-listed unit 1006 in the south tower. It was on the market for more than six months before it sold for nearly $2,400 per square foot.

The second most expensive deal was at Jade at Brickell Bay. Unit 4107 traded hands for $1.85 million, or $738 per square foot, after nearly six months on the market. It was listed with Lucas Lechuga of Miami Condo Investments.

Closing prices in the top 10 deals ranged from $575,000 to $6 million.

Here’s a breakdown of the data for the week of Aug. 6 to Aug. 12. Click on the map for more information:

Most expensive

Continuum South Beach #1006, Miami Beach | 195 days on market | $6M | $2,392 psf | Listing agent: Roland Ortiz and Eddy Martinez of Worldwide Properties

Least expensive 

Mystic Pointe #1805, Aventura | 126 days on market | $575k | $374 psf | Listing agent: Marianela Montenegro of EWM Realty International

Most days on market

Bella Mare #1803, Aventura | 568 days on market | $1.75M | $496 psf | Listing agent: Valeriy Krayter

Least days on market

The Floridian #1207, Miami Beach | 62 days on market | $830k | $570 psf | Listing agent: Peter Warner of Fortune International Realty

Mallards Cove Apartments Inset: Lawrence R. Gottesdiener CEO Northland Investment

Big ticket multifamily complexes keep trading in South Florida.

Newton, Massachusetts-based Northland Investment Corp. just bought two sister rental communities in Jupiter for $56 million, property records show.

The real estate investment firm financed the deal with a $46.4 million mortgage from CBRE Capital Markets. Records show the mortgage is a Freddie Mac loan.

The communities are called Mallards Cove and Shell Trace Apartments. The properties, located at 6705 Mallards Cove Road, stretch nearly 31 acres and offer about 359 units, meaning the trade breaks down to about $156,000 per unit.

The seller is linked to Rhode Island-based Preston Giuliano Capital Partners. Records show the company is led by Michael Giuliano. The firm bought Shell Trace Apartments, a 119-unit apartment complex, in 2013 for $8.9 million. It acquired the nearly 20-acre Mallards Cove Apartments, a 240-unit community, in 2016 after the condominium was terminated. In a previous 2005 sale, Mallards Cove apartments sold for $19.5 million, records show.

All the apartments, built in the 1980’s, offer one- and two-bedroom floor plans, according to Preston Giuliano Capital Partners’ website. Features include carpet and tile flooring and in-unit washers and dryers. Select apartments offer screened balconies with lake views. Residents have access to a community pool and tennis courts.

Northland Investments bought the complex at a time when the supply of new multifamily inventory is outpacing demand. This year alone, nearly 13,500 new apartments will be delivered in South Florida, marking the fifth most active city in the country for multifamily construction, according to a report from RentCafe.

And rent growth is predicted to slow as the region’s occupancy rate dips. South Florida’s occupancy rate averaged 94.8 percent, down slightly from the previous quarter, according to Berkadia’s second quarter report.

Yet, institutional investors are back to trading large apartment complexes after a slow period in the market. Recent deals in the area include a 340-unit apartment complex in Palm Beach Gardens that was sold by a company tied to Tampa-based Carlyle Investments for $118 million to PGIM Real Estate last month.

The Real Deal’s National Weekly Roundup features a mix of market analysis, breaking news, insider information and much more. It’s the simplest way to stay on top of what’s happening in the biggest real estate markets around the country.

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The developers of Brickell City Centre, the Estates at Acqualina, Akoya Boca West and others just released a slew of new renderings.

La Centrale

Brickell City Centre revealed what’s planned for the three-story Italian food hall, La Centrale. The 38,000-square-foot food hall, located at the northeast end of the shops, is now set to open in December. It will include:

• A market with grab-and-go options, an espresso bar, salad bar, fresh bread, cheese, a cafe and retail items. The 5,000-square-foot mercado will be on the first floor.
• A 5,000-square-foot fish market on the second floor
• Stagionale, a 1,500-square-foot restaurant on the second floor with a seasonal menu
• Enoteca, a wine cellar on the third floor with a private dining room. The 3,000-square-foot space will also include La Cucina.
• A steakhouse on the second floor spanning more than 2,500 square feet
• A pizza and pasta eatery with a wood-fired oven. The 3,000-square-foot restaurant will be on the first floor.

Estates at Acqualina penthouse

The Trump Group (no relation to the president) is unveiling a penthouse at the planned Estates at Acqualina. The 15,000-square-foot unit, which is on the market for $29 million, will feature six bedrooms, marble and wood floors, sunset and ocean lounges, a private pool and sauna, and luxury appliances, according to the developer.

The firm is a step closer to owning the 5.6-acre oceanfront site where it plans to build the Estates. It owns the majority of the property, which is currently a timeshare resort, that’s set to be auctioned on Friday. Trump’s A3 Development LLC will make the reserve bid of $26 million.

Akoya Boca West

Siemens Group is developing Akoya Boca West, a 139-unit luxury condo building under construction at the Boca West County Club in Boca Raton.

The developer released new exterior renderings of the project, which recently hired Douglas Elliman to handle sales. It’s registered to be marketed and sold in New York.

Siemens is aiming for an early 2018 delivery date. The country club spans 1,400 acres with about 400,000 square feet of club facilities and amenities, including a sports complex, clubhouse, a 38,000-square-foot spa, tennis facilities, dining and entertainment venues, and four 18-hole championship golf courses.

Ocean Terrace

Sandor Scher’s Ocean Terrace project in North Beach is moving forward. The developer submitted its plans to the Miami Beach Historic Preservation Board for a meeting in October.

In all, the development would have a 58-unit residential building; a 76-key hotel with a restaurant and bar, meeting rooms, gym, spa, pool, pool bar, rooftop lounge and parking; about 15,000 square feet of retail space on Collins Avenue and about 3,000 square feet of retail on Ocean Terrace.

Scher and his investor Alex Blavatnik are developing the mixed-use project. RJ Heisenbottle Architects and Revuelta Architecture International are the architects. Scher and Blavatnik have spent more than two years and about $65 million buying up most of the buildings on Ocean Terrace, and last year lost a citywide vote on increasing FAR in the area from 2.0 to 3.0.

Miami and money 

A national class action suit accusing mortgage providers of taking kickbacks from residential insurers received preliminary approval in Miami last week for $15 million worth of settlements, bringing the total in similar cases to $39 million, according to the Daily Business Review.

The latest complaint alleges that the mortgage companies forced borrowers to buy inflated policies from insurers that then funneled back some of the money in the form of commissions, reimbursements and the provision of below-cost services.

Tens of thousands of borrowers were affected, according to the Daily Business Review. U.S. Magistrate Jonathan Goodman of the Southern District of Florida ruled borrowers will receive 6 percent to 10.5 percent of the premiums they were overcharged dating back from 2008.

The mortgage service companies include Carrington Mortgage Services LLC, Fay Servicing LLC and Residential Credit Solutions Inc. The insurers are American Modern Home Insurance Co. and Southwest Business Corp.

The agreement follows another force-placed insurance class action settlement in New Jersey worth nearly $24 million. Nearly 75,000 people were involved, according to the Daily Business Review. Force-placed insurance, which is not unusual, takes place when a lender requires a borrower to obtain insurance on property that secures a loan.

Loan modification schemes are common in the Southern District of South Florida. Adam Moskowitz, of Kozyak Tropin & Throckmorton in Coral Gables, told the Daily Business review that about 15 class action suits revolving around allegations of wrongdoing involving force-placed insurance were filed in the Southern District of Florida.

He and his team have worked on some notable cases here in South Florida, like a $217 million settlement with Ocwen Loan Servicing and Nationstar Mortgage in 2015. A final approval hearing is scheduled before Goodman in January.  [Daily Business Review] – Amanda Rabines 

Mansion nightclub and John Brandt

Mansion nightclub’s former space on Washington Avenue in South Beach is on the market for lease at $70,000 a month or $840,000 a year, The Real Deal has learned.

John Brandt’s family has owned the building at 1225-1265 Washington Avenue since the 1950s, and this is the first time it is available for lease since 1984 because operators have always traded the lease to successive operators, he said. The space was most recently Copa Room, which moved out June 1. Before that, it was Icon, and previously, Mansion, Glam Slam — owned by Prince — and Club Z. Early on, it also home to a French casino and a vaudeville theater.

Over the years, the property’s operators have been ensnared in a slew of lawsuits, including an eviction suit against Club Z. At least one shooting in the VIP section led to the death of Miami Heat player Norris Cole’s personal chef, Antaun Teasley, in 2014, according to published reports.

Brandt said he and his brothers are now looking for an experienced nightclub operator, and would also consider other uses. The Lincoln Theatre on Lincoln Road, for example, is now leased to retailer H&M.

The Brandts’ nearly 77,000-square-foot, three-story building was built in 1934. The nightclub space is actually 29,000 square feet, including the first floor and a mezzanine. That would set the price for that space at $29 per square foot annually.

Washington Avenue is experiencing a wave of redevelopment, amid the city’s approval of new measures designed to increase hotel space and retail and dining opportunities on the street, which has lagged behind Lincoln Road and Ocean Drive in attracting first-tier retail, dining and hotel venues.

New projects planned include Moxy South Beach, a seven-story, 202-room boutique hotel to replace aging storefronts at 915-947 Washington Avenue; a micro hotel to be developed by Miami Beach developer Andrew Joblon and New York-based Imperial Companies at 601-685 Washington Avenue; and a mixed-use project with a parking garage, hotel and retail components at 900 Washington Avenue, to be developed by Robert Finvarb and Michael Simkins.

1712 and 1718 Southeast 12th Court

A waterfront lot in Fort Lauderdale sold for $6.5 million, marking a record for single-family land sales since 2015, property records show.

Lay & Lay Ltd., a British Virgin Islands company, sold the property at 1712 and 1718 Southeast 12th Court to a trust in Brent A. Braun’s name. Braun is the son of mobility industry pioneer and founder of the Braun Corp., Ralph Braun. The Winamac, Indiana-based company makes mobility products like wheelchairs and wheelchair lifts.

Braun’s double lot totals nearly 24,300 square feet of land on the Intracoastal and sold for $268 per square foot. Brian Hero of One Sotheby’s International Realty represented the seller, which is tied to Kurt S. Lay of Switzerland, and Jim Morlock of Fidelity Real Estate represented the buyer.

The latest deal is a land record for single-family properties in Fort Lauderdale over the past two years, Hero said. The property hit the market last year for just under $10 million, and was reduced to nearly $9 million. It sold at a 36 percent discount off the original asking price.

The buyer plans to build a new home on the property, which can fit a mega yacht on the north side near the inlet. Hero declined to identify the buyer and seller.

Records show Lay & Lay paid $430,000 for the smaller lot in 1994 and $2.6 million for the corner parcel in 1999, which totals $3.03 million.

Last year, Stiles Corp. Chairman and CEO Terry Stiles paid $8.17 million for a waterfront mansion at 1776 Southeast 10th Street, or about $1,000 per square foot for the home and $436 per square foot for the land. 

89 Middle Road (Credit Leibowitz Realty Group)

It’s been a year in the works but British insurance mogul Peter Wood, founder of Direct Line and Esure insurance companies, finally subdivided his estate, according to the Palm Beach Daily News.

The 89 Middle Road property borders South County Road at the northeast corner of El Bravo Way. The subdivision splits the former John W. Kluge estate into four parcels of land – a first-of-its-kind subdivision in many years for the Estate Section in Palm Beach, according to the Palm Beach Daily News.

The lots, which span 3.4 acres combined, were purchased for $39 million by the insurance billionaire last year along with an adjacent oceanfront parcel that stretches nearly an acre. That property, at 91 Middle Road is not part of Wood’s subdivision and is on the market separately for $21.9 million.

The largest lot, known as Parcel E, spans 40,150 square feet. The lot, located on the corner of South County Road and El Bravo Way, is priced at about $14.5 million, or $361 per square foot. Parcel B, the second largest, nearer Middle Road, spans 30,268 square feet and is priced at $10.9 million, or $360 per square foot. Parcel C, which spans 21,164 square feet, on the northeast side of the property, is priced at $8.3 million, or $390 per square foot. The smallest lot, Parcel A, spans 17,985 square feet along South County Road and is priced at $6.9 million, or $383 per square foot.

Wood’s original subdivision plan received scrutiny from Palm Beach residents who said his plan for six vacant lots was not in keeping with the character of the historically low-density neighborhood. The landlocked subdivision’s plat for four lots won approval from the Palm Beach Town Council in July, according to the Palm Beach Daily News.

Christian J. Angle of Christian Angle Real Estate is the listing agent. Wood has said he’s unsure whether he plans to sell or develop homes there himself, according to the Palm Beach Daily News. [Palm Beach Daily News] – Amanda Rabines 

Tickets are on sale for The Real Deal’s first-ever California Real Estate Showcase and Forum on Thursday, Sept. 14!

Click to purchase tickets

Our two panels will dive into into the city’s residential scene — from single-family pads to spec homes to the hottest DTLA condos — as well its commercial market. Confirmed panelists include Carl Muhlstein (JLL), Steve Silk (Eastdil Secured), Chris Rising (Rising Realty), Michael Nourmand (Nourmand & Associates) and Jade Mills (Coldwell Banker).

A look at the full schedule:

– 11 a.m. Coffee
– 11:15 a.m. Residential panel | Is the peak in sight? Surveying L.A.’s residential market, from single-family to spec homes to DTLA condos
– 12:15 p.m. Lunch
– 1 p.m. Commercial panel | Gauging the commercial scene: Amid a slowdown in activity, what’s next for the market?
– 1:45 p.m. Coffee

You can get a day pass to the event, which includes both panels, lunch and coffee breaks, or purchase a ticket for one panel and lunch only.

Stay tuned for more information on the event. We hope to see you this fall at the Bank of America Plaza!

For sponsorship opportunities and more information, contact laadvertising@TheRealDeal.com or call 310-270-8124.

A construction laborer working on the site of a new residential building in Hudson Yards (Credit: Getty Images)

From TRD New York: Homebuilder sentiment hit a three-month high this month, as builders remain buoyed by low-mortgage rates and a strengthening job market.

According to the National Association of Home Builders/Wells Fargo, the builder’s Housing Market Index (HMI) rose four points from 64 to 68 since July, Bloomberg reported. The monthly HMI is calculated through a survey of NAHB members, who rate the health of the single-family housing market. Their answers are used to create an HMI that ranges between 0 and 100.

This month’s increase — the highest rating since May of this year — follows July’s eight-month low and comes at a time when material costs are on the rise. Many contractors across the country are also grappling with a shortage of skilled labor.

But other factors are also at play, according to the NAHB.

“Our members are encouraged by rising demand in the new-home market,” NAHB chairman Granger MacDonald, said in a statement. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.” [Bloomberg] — Kathryn Brenzel

5 Star Island and Thomas Kramer

German developer Thomas Kramer’s two Star Island mansions are heading to the auction block next week over a $192.4 million judgment.

The late Siegfried Otto, whose stepdaughter married Kramer, reportedly financed the purchases of the Miami Beach homes. His heirs, Verena Von Mitschke-Collande and Claudia Miller-Otto reached a settlement with Kramer in Switzerland in 1995 to collect the funds. He tried to overturn the settlement, but the plaintiffs won a $90 million judgment against Kramer in Swiss court in 2003, according to the South Florida Business Journal.

They then tried to collect the money via a lawsuit filed in Miami-Dade that same year, but Kramer had transferred ownership of the properties at 4 and 5 Star Island Drive to an Isle of Man entity, Skipworth Properties.

The plaintiffs could use the $192.4 million judgment to bid on the homes when they go to a court-ordered auction on Tuesday. They could also collect the proceeds from the auction from another bidder, the newspaper reported. The county’s property appraiser valued the homes at a combined $25.8 million.

The exclusive island is also home to Stuart Miller, Phillip and Patricia Frost, and Gloria and Emilio Estefan.

Kramer was known for throwing parties at the Star Island mansions, and made his mark on South Beach when he purchased large properties in the South-of-Fifth neighborhood before it was redeveloped. [SFBJ] – Katherine Kallergis

Construction at 28-18 Astoria Boulevard

From TRD New York: Housing starts across the United States fell last month, a slowdown that was driven by a drop in apartment construction, according to data released by the U.S. Commerce Department.

Residential starts declined almost 5 percent to an annualized rate of 1.16, Bloomberg reported. Starts on multifamily homes dropped just over 15 percent, and single-family starts fell by 0.5 percent.

Meanwhile, permits, which indicates future construction, fell 4 percent. Groundbreaking on single family homes has declined in four of the past five months, according to the publication, and single-family homebuilding is being hampered by labor and lot shortages.

“Single-family starts have not risen nearly as much as builder confidence has, reflecting the greater difficulty builders are having obtaining lots and labor relative to past cycles,” Mark Vitner, senior economist at Wells Fargo Securities LLC, wrote in a research note before the report, according to Bloomberg.

In New York City, the pace of residential permit approvals dropped this spring. Between March and May, the city’s Department of Buildings issued permits for 4,891 units. That rate is lower than the start of 2017, but an increase from the same period last year. [Bloomberg] — Miriam Hall

CBRE’s Darcy Stacom and William Shanahan

CBRE took over the top spot as the country’s most active investment sales brokerage for the first time since 2013 as overall deal volume continued to drop.

The brokerage expanded its market share in commercial property investment sales to 23.2 percent in the first half of the year from 22.9 last year, although its deal dollar volume fell by 1 percent to $22.6 billion, Real Estate Alert reported. It took over the top spot largely because Eastdil Secured saw its deal volume plummet by 19 percent to $20.3 billion (a market share of 20.9 percent) in the wake of last year’s departure of star brokers Doug Harmon and Adam Spies to Cushman & Wakefield.

In third place, HFF increased its deal volume by 19 percent to $14.8 billion and fourth place Newmark Knight Frank saw a 67 percent jump to $10.7 billion. REA’s ranking includes deals over $25 million.

CBRE also topped REA’s office sales ranking last month.

Investment sales fell 8.8 percent year-over-year after falling 3 percent a year earlier. In New York, deal volume plummeted 55 percent to $9.7 billion, the steepest decline since 2009. Newmark president Jimmy Kuhn said this reflects owners being increasingly unwilling to sell. “That doesn’t mean the New York market is unhealthy,” he said. “Just the opposite. New York properties have become the replacement for what blue chip stocks were 50 years ago.”

The Real Deal recently broke down the biggest deals that didn’t happen in the first half of the year. [REA] — Konrad Putzier