While a rate cut would reduce borrowing costs and may jumpstart some transactions, industry professionals caution that it’s just one component of a complex financial equation.
The joint venture intends to transform the existing condo building located in South Beach into a luxury residential tower overlooking Biscayne Bay.
If finalized, this would mark the largest office sale in South Florida so far this year.
Amazon initially leased 50,000 square feet in January after reports surfaced that the Seattle-based tech giant was looking for up to 80,000 square feet in Miami.
The deal now places the entire 500,000-square-foot shopping destination under the control of Simon Property Group.
The 2.8-acre parcel, located at 700-799 Brickell Avenue, was once slated to become the One Brickell City Centre, a 1,000-foot-tall office tower. However, Swire scrapped those plans earlier this year, citing difficulties in the current office market.
No-bid government land deals are typically justified in emergency situations, such as post-disaster recovery. However, when there is no emergency and without a competitive process, Miami-Dade county can’t be sure it’s getting the best deal possible.
The price was not officially disclosed but people familiar with the deal stated it was more than $400 million and less than $500 million, with some sources saying the price was roughly $450 million.
In 2018, 62% of all homes sold in top U.S. metropolitan markets sold below their original list price, according to EasyKnock.
As the year comes to an end, the home equity company is looking ahead to next year, predicting that 77% of current on-market listings will sell below original list prices in the first quarter of 2019.
“While there’s no denying that home prices have been steadily on the rise, list prices are clearly increasing above realistic levels, corroborated by the study’s findings that over 60% of homes sold well below their original list prices in 2018,” EasyKnock Economic Advisor Paul Habibi said.
According to EasyKnock’s analysis, half of the top 10 markets are located in the South. Miami is projected to have the highest rate of deals, coming in at a whopping 89%. Rounding out the top three are Houston and Chicago, with Houston seeing an average savings of 4.84% and an 84.2% rate of deals, while Chicago is expected to see 5.11% in savings and an 83.5% rate of deals.
The markets of Jacksonville, Florida (No. 4); New Orleans (No. 5); Hartford, Connecticut (No. 6); and St. Louis (No. 7) make up the middle of EasyKnock‘s predictions, with each market projected to see savings in the 5% range.
Pittsburgh, Tampa, and Cincinnati round out the bottom three on the company’s list. In these metros, discounts are expected to average more than 4.5%, which is higher than the national average of 4.01%.
“Average savings are on the rise in these markets. Given that the slowdown of home price increases is just beginning to take hold, we can expect home sellers to continue to set their original list prices on the higher end, which has the potential to result in greater deals for home buyers,” EasyKnock writes. “Particularly as we head into January, which has historically been one of the best months for deals, the combination of seasonality and the slowing market make the perfect recipe for the increased rate of deals predicted by the Knock Deals Forecast.”
Source: Housingwire
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Israel’s Mishorim Development Group is preparing to develop a mixed-use project after closing on the purchase of a parking garage.
Mishorim paid $18,250,000 for the Suntrust Annex garage. Crocker Partners was the seller. Real estate broker Shai Ben Ami represented Mishorim in the transaction. Mishorim, has holdings in Israel, the U.S. and Canada, and is led by CEO Gil Blutrich.
According to Ben Ami, Mishorim has retained the services of Kobi Karp to design a mixed-use project for the site. It will include hotel, residential, and “great retail.” The 247,000-square-foot garage, located at 255 Northeast First Street, is situated on a 37,500-square foot lot.
The property is across from the Yotel development site, and a block and a half away from the Waldorf Astoria development site. Buildable square footage for the Mishorim site totals 1.35 million square feet, which includes zoning for 860 residential units.
Blutrich and Ben Ami also own the 4,350-square-foot retail space at the 37-story Centro tower nearby. They secured two leases for that space five months after purchasing it at $75.00 per square foot, which is believed to be among the highest retail rents for Downtown Miami.
Source: The Next Miami