Out-Of-Town Buyers Reshape Miami Real Estate Design

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Out-of-town buyers aren’t just snapping up Miami’s prime real estate — they’re also changing the way luxury developers build.

As more out-of-towners decide they want to put down roots in South Florida rather than simply buy investment properties for the rental market, they’re asking for bigger, better, more expensive designs. Units equipped with quarters for a nanny or maid. Guest suites for visiting relatives and friends. High-tech security with biometric identification.

Those requests come from both Latin Americans, who have driven Miami’s latest real estate boom, and wealthy Americans, who are appearing locally in greater numbers. Some developers, hoping to lure a growing pool of Chinese buyers, are even turning to “feng shui” consultants who specialize in the eastern art of balanced design.

“Foreign investment has completely changed our entire landscape from an architectural standpoint,” said Daniel de la Vega, president of One Sotheby’s International Realty. “People are bringing their families here to spend time, and that changes their needs. One Sotheby’s now advises all developer clients building units greater than 3,500 square feet to include live-in quarters for a maid or nanny,” de la Vega said.

At Paramount Miami Worldcenter, a luxury condo tower planned for downtown Miami, about 80 apartments out of a total 513 have a bedroom and bathroom — called a “lockout suite” — branching off from the main entrance near the unit’s private elevator. The studios, between 250 and 280 square feet, are envisioned as space for a maid or nanny, although they could also be used for teenage children who squawk for privacy or an elderly parent who needs quiet, said Peggy Fucci of OneWorld Properties, sales lead for the project. Units with a lockout suite start at about $1.5 million, or $650 per square foot.

In past projects, Fucci said, “we had people buying small units in addition to their main purchase because they wanted a place for the maid.” Now they expect that space to be available as part of their units.

Look To The Roofs

Families like to entertain and, in Miami, that naturally means enjoying the outdoors. Large outdoor terraces and elaborate rooftops are becoming the norm for high-end developments.

MiamiRealEstateDesign-OasisParkRoofIn single-family homes, the need for rooftop-space is partially driven by high land prices and small backyards. At Oasis Park Square, a 150-unit single-family home development marketed to Venezuelans, some backyards are large enough for a 392-square-foot pool. But the flat rooftops — tricked out with a jacuzzi and the option of a summer kitchen, as well as a bathroom — are where many homeowners will entertain. That wouldn’t be possible in Miami’s traditional Mediterranean style of building, which usually uses low-pitched tile roofs. The rooftops on these modernist homes are between 1,300 and 1,900 feet of open space. That’s more than a third of the size of many houses, which range from 3,300 to 4,000 square feet.

“The buyers find rooftop space very attractive,” said project architect Francillis Domond, who grew up in Venezuela. “Venezuelans have large extended families, and it’s very common to get together for family events at least every month.”

Oasis Park developer Masoud Shojaee of Shoma Group said when interviewed all but nine of the homes, which run from $1.15 million to more than $2 million, have already sold, with the majority going to Venezuelan buyers. “There is so much product on today’s market that you have to give the buyers exactly what they want,” Shojaee said.

Family Ties

MiamiRealEstateDesign-Aria on the Bay-PlayroomFamilies also need places for children to play.

“Kids’ rooms in condos used to be an afterthought,” said developer Carlos Melo, co-owner of the Melo Group. For a project called Aria on the Bay that will open in fall 2017, Melo plans to include a 2,360-square-foot play room for children, equipped with toys, board games, rock-climbing, pingpong, televisions — and cameras linked up to the security room to soothe nervous parents. One of the project’s four swimming pools will be a shallow “kiddie” pool.

Melo said he thinks that some younger couples accustomed to life in Miami’s downtown and other major cities may not want to give up their urban lifestyles for the suburbs. Instead, he argues, they’ll look for high-rises with enough space for kids. “We are expecting a new generation of young families who want to live in the city,” Melo said.

Down From The Northeast

Domestic buyers are also making more of an impression on Miami’s market — meaning some developers are focusing on public transit, smaller units and semi-urban projects common in other big American cities.

Statistics on where exactly those buyers are coming from aren’t precise, said Ron Shuffield, president of EWM Realty International. But he said that through the first six months of 2015, the number of luxury buyers in Miami-Dade County, home of Miami, listing a New York address is up roughly 20 percent over the same period in 2014.

Anastasia Townhomes

Anastasia Townhomes

That’s important because the number of foreign buyers has been slowing as currency crises rock economies in Latin America and Europe. Cash sales — which often indicate international buyers — were down 12 percent in Miami-Dade in June 2015 compared with June 2014, according to the Miami Association of Realtors.

Santander Townhomes

Santander Townhomes

Townhomes are one sub-market that have appealed specifically to New York and northeast buyers, said Shojaee of Shoma Group. His firm built a 10-unit townhome project called Anastasia and has another 10-unit project called Santander scheduled to open by year’s end. The two-story walk-up homes at Santander are made from coral rock and start at $1.35 million for 3,000 square feet. Most buyers have been domestic.

New Balance

Chinese buyers also are growing in numbers, although they accounted for only 2 percent of international deals in South Florida in 2014, according to a report by the National Association of Realtors. But that’s double the number from 2012. Local brokers have visited Beijing to pitch buyers, including Ugo Colombo’s CMC Group.

And Paramount Miami Worldcenter has even hired Claudine De Bolle, a Miami-based feng shui consultant, to help make sure the condo’s common spaces have the right feel for Chinese buyers.

“It’s important for Chinese buyers to know the project was designed with feng shui because it is associated with good luck and prosperity in their culture,” De Bolle said.

De Bolle said she recommended that developers replace a lobby chandelier that was too angular in its design with one that used smoother features. “The chandelier was very beautiful, but it was very pointed coming down from the ceiling and it felt like a threat,” she said. Other recommendations included placing a fireplace in the lobby to balance the other feng shui elements of wood, earth, metal and water, and using matte tiles instead of a shinier material to slow the energy of a ninth-floor conservatory meant for reading and relaxation. Chinese buyers have accounted for about 15 percent of sales so far, according to developers.

Part of the reason South Florida has been so attractive to out-of-towners looking to buy a vacation home or relocate is because it is well-priced compared with other global cities. Urban apartments in London ($2,948 per square foot), New York ($2,024 per square foot) and Moscow ($1,243 per square foot) are all much pricier on average than Miami Beach ($760 per square foot), Miami ($475 per square foot) and Fort Lauderdale ($400 per square foot), according to research compiled by EWM in 2014.

And for developers there is a clear advantage to building and marketing buildings for end-users rather than investors. “Investor-dominated buildings face risks from fluctuations in foreign currencies,” said Jack McCabe, a housing market analyst based. But focusing on the high end of the real estate market means home prices and rental rates in Miami — already some of the nation’s highest compared with median income — won’t see any relief, he added.

“There’s very little that you would consider to be affordable that’s under construction,” McCabe said. “The developers have been targeting the sweet spot of the buyer pool, which is primarily affluent cash buyers.”

And if currency crises persist and some foreign buyers can’t close, some projects may go under or have to reduce prices.

“The upper end is almost like a separate market,” McCabe said. “The prices are so high above the rest of South Florida that we’re likely to see a correction just in the luxury end of the market if there’s not enough demand.”

 

Source: The Bulletin

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Green Building Standards Take Next Step Forward

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After two years of negotiations, residential green building standards are taking the next step forward.

Specifically, the leading building code organizations have partnered to develop a singular green building code. This code combines elements from their various codes and standards – providing jurisdictions with a comprehensive set of green principles for legislative and regulatory approval.

Multifamily firms have long-been challenged by green building programs that were not well-tailored to the unique characteristics of the industry. NMHC has worked to ensure that any new standard allows for multifamily compliance using the ICC-700 – National Green Building Standard (NGBS). This standard was specifically designed to provide guidance for residential construction.

The technical foundation of the new standard will be developed by ASHRAE and be based on the current ASHRAE 189.1 Standard for the Design of High-Performance, Green Buildings Except Low-Rise Residential Buildings. This standard does include provisions for multifamily construction more than 4-stories in height. But, the administrative provisions will be based on the ICC International Green Construction Code (IgCC). Importantly, the IgCC scoping provides apartment firms with a compliance path using the ICC-700.

The NGBS has been widely used throughout the industry and has been incorporated into numerous sustainability initiatives at the jurisdictional level. To date, 1,509 multifamily projects have been certified under the NGBS, totaling nearly 45,000 apartment units. An additional 49,000 multifamily units are currently in the certification pipeline.

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Coral Gables Zoning Board To Consider Mixed-Use High-Rise Along South Dixie Highway

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Developers are looking to build big in Coral Gables, this time along South Dixie Highway.

Paseo de la Riviera, a mixed-use project that would replace the old 155-room Holiday Inn across from the University of Miami, will come before the city’s planning and zoning board on Wednesday, Aug. 12.

Paseo de la Riviera - 2The project application details the plans to revamp the strip-mall-dominated corridor on U.S. 1 that splits Coral Gables. Proposed are a 13-story residential building with 234 units, and a 10-story hotel with 252 rooms.

Built on 2.7 acres, the main building will be 142 feet tall, have 4,380 square feet of restaurants, 14,094 square feet of retail, and 903 parking spaces, as well as three sculptures. The project would feature shops and restaurants on the ground floor and a pedestrian passage, dubbed the “Paseo” (72 feet wide, 325 feet long) connecting to the adjoining neighborhood.

This isn’t the first venture of its kind flowing through the city’s pipeline. A barrage of high-density projects have been approved, some already under construction or currently in the process of being birthed, stirring heated debate among Gables residents and elected officials.

Paseo de la Riviera - 3In June, commissioners approved the Mediterranean Village project at Ponce Circle — more than one million square feet of condos, hotel and commercial space just three blocks south of Miracle Mile on Ponce de Leon Boulevard. That project sparked deep conflict, creating major division in the community. Some feared the city’s proud tradition of scrupulous planning and highly controlled development would come to an end, bringing in loads of outsiders and traffic.

Paseo de la Riviera - 4Others, however, were firm that the mixed-use enterprise would bring growth and rejuvenation to the city’s downtown area, all while honoring Gables founding father George Merrick and his scenic vision of a Mediterranean promised land.

Although Paseo de la Riviera is smaller in scale, the plans have divided residents of the single-family neighborhood who live directly behind it.

Wayne “Chip” Withers, who served as a city commissioner from 1991 to 2011, has lived off Hardee Road and Maynada Street for more than 60 years.

“If you look at the city of Coral Gables, it is very well planned. You don’t have really tall commercial buildings butting up directly with a residential neighborhood,” Withers said, adding that his major concern is the reasoning behind the Paseo. “At the end of the day the overriding question is: What’s the reason we’re doing this? Does the city need tax dollars? What is the pressing reason? To appease the developer? Or is it something that is really gonna be beneficial to this city and to this neighborhood. Why are we allowing it to be up to three times taller than the Holiday Inn?”

Henry Piñera, 39, said the Paseo could possibly reshape the South Gables and its tight-knit neighborhoods, serving as a lunching pad for other high-rise developers to move in, build and make some money.

“We know that this is going to be the domino effect that sets everything off. From an overall Coral Gables perspective, no other building would be this tall outside of the downtown area,” said Piñera, who lives on Aduana Avenue with his wife and two young daughters.

He said the Riviera neighborhood already experiences intense cut-through traffic because of congestion on U.S. 1. He says the new project wouldn’t be what he “bought in” for.

“I made the decision to purchase and renovate this house because this is where I’m going to raise my kids. This particular building is so massive that it will have a huge impact. You’re taking the density and roughly making it three-and-half-times larger than the Holiday Inn,” he said. “Not only that, but the project overlooks Jaycee Park, one of the reasons why I bought into the neighborhood.”

Developers however, see the location as a benefit to residents, saying the project has strategically been placed in a transportation hub — right across the street from the University of Miami, Metrorail, trolley route stop, bike paths, as well as on the block of a future pedestrian bridge.

“That’s what makes this site special,” said Jorge Hernandez, who is the project’s leading architect, a longtime Gables resident, and a UM architecture professor. He said the transport amenities make for an “animated urban ground floor.” “If you look at the renderings, the Paseo would connect to U.S. 1, giving the notion to being able to walk and bike to a lively open space. It would be a hub for everyone.”

Developer Brent Reynolds says “given the adjacency to the Metrorail, it would develop a place for next-generation families and nonprofessionals.” “It really is an amenity that is not seen anywhere in Coral Gables,” Reynolds said. “It’s a well-designed sophisticated boulevard, focused around public transportation and drawing the community in.”

Developers are asking the city to make a zoning exception on the parcel, allowing their project to be 142 feet tall, instead of 77 feet.

Both Reynolds and Hernandez hope that the building across the street — UM’s Gables One Tower — which also reaches 142 feet in height, will convince city officials to vote in favor of the Paseo.

“People dislike the UM building. It’s a square and flat building; it doesn’t have a profile against the sky,” Hernadez said. “Our building will begin to tame that image. We’re hoping to build a community of buildings of the same scale and amend the city code back to what it was under George Merrick’s vision, using the building next door as a height precedent.”

Until 1979, Coral Gables zoning laws in the area allowed buildings up to 142 feet tall. After Gables One Tower was built, city officials in 1980 reacted to the aesthetics and changed the zoning code, reducing the height cap to 77 feet. “It was a reaction from the aesthetics and the effect of that particular building. It runs parallel to the street. It’s a giant wall. Our building would run perpendicular,” Reynolds said.

Hernandez said he hopes the current Gables commission swiftly approves the project.

The Coral Gables Planning and Zoning board will meet at 6 p.m. Wednesday, Aug. 12 at Coral Gables City Hall, 405 Biltmore Way.

 

Source: Miami Herald

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World’s Largest Rooftop Greenhouse Coming To Chicago

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Chicago probably isn’t the first place that comes to mind when you think of farming, but the city’s Pullman Park district will soon be home to the largest rooftop greenhouse in the world.

Once construction is complete, the behemoth 75,000 square foot green space, built and operated by Gotham Greens, will be larger than a football stadium and even some city blocks.

As Business Insider puts it, “For some perspective on the size of the greenhouse: the average size of a city block in many parts of the U.S.—including Portland, Oregon and Houston, Texas—is 67,600 square feet. An NFL football field is 57,600 square feet. This greenhouse is larger than all of these things.

According to a Gotham Greens, the greenhouse will produce up to 1 million pounds of sustainably grown, pesticide-free produce annually. The harvest will also be distributed through local retailers, restaurants, farmer’s markets and community groups. Since the greens are grown locally, it eliminates the carbon emissions and miles that food traditionally travels to get to Chicago’s plates.

“This is an exciting opportunity to bring fresh, healthy produce year-round to Pullman, which is underserved for food, and going through an exciting resurgence in economic development,” Gotham Greens CEO Viraj Puri told DNAInfo.

The rooftop farm is also expected to hire 40 workers to help grow the produce, the site reported.

ChicagoFactoryGothamsGreen2The greenhouse features a slew of innovative farming technologies. With its soil-free hydroponic system, “Gotham Greens’ irrigation methods use 20 times less land and 10 times less water and eliminate the need for pesticide use and fertilizer runoff,” the company said. A computer-controlled system also regulates temperatures, irrigation needs and other variables, Business Insider noted.

What’s interesting is that Chicago’s new greenhouse will sit on top of an already environmentally friendly factory occupied by eco-soap company Method. Designed by Cradle to Cradle company William McDonough + Partners, the $30 million building is the nation’s first LEED Platinum manufacturing plant in this sector.

Method’s so-called South Side Soapbox, contains a 230-foot wind turbine as well as three 35 x 35-foot solar tracking trees that follows the sun’s path to maximize energy generation. According to Business Insider, this clean energy helps generate “a third” of the building’s energy needs.

“Gotham Greens shares our goal of using business as a force for social and environmental good,” Drew Fraser, CEO of Method, said in the press release. “We are thrilled to partner with a like-minded organization, who has demonstrated that the innovative, adaptive use of urban space can make a significant impact on local communities.”

When the greenhouse is finally built, it will also help insulate the building to keep costs down even further, improve urban air quality and reduce stormwater runoff.

“We need to use our urban spaces more efficiently,” Method’s chief greenskeeper Saskia Van Gendt told Business Insider. “Rooftop greenhouses are a representation of a model of doing that.”

ChicagoFactoryGothamsGreen4It’s a stroke of genius to bring these eco-minded companies together. As EcoWatch previously reported, Gotham Greens now has four state of the art greenhouses where its workers grow organic greens year round. Its flagship greenhouse in Greenpoint, Brooklyn, was built back in 2010 and was the first commercial scale rooftop greenhouse in the U.S, according to the company. Method, known for its colorfully pleasing soap bottles and for introducing the world’s first bottle made of ocean waste, formulates its products with naturally derived, biodegradable ingredients.

Chicago mayor Rahm Emanuel only had nice words to say about the partnership. “Method has been instrumental in supporting the revitalization happening in Pullman, and the addition of this sustainable greenhouse means that more Chicago residents will have access to fresh, healthy foods grown in the neighborhood,” Emanuel said in the release. “I commend both Method and Gotham Greens on their commitment to Pullman and look forward to seeing the results of this partnership come to fruition.”

 

Source: EcoWatch

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Miami-Dade’s New Transit Director Wants to Make Miami A Car-Optional City

Miami-Dade County’s new transit director has big plans.

Alice Bravo, Miami’s former deputy city manager, has several short-term projects in mind, but her grand vision is sure to raise eyebrows in South Florida: Eventually, she hopes that the plans that she and her team put in place in the next few years will make buying a car “optional” for Miami’s next batch of commuters.

“It’ll take time, but we have to take advantage of this enthusiasm to make Miami a car-optional city one day,” Bravo tells New Times. “It’s apparent that we have a younger generation that is not interested in having a car and wants to use public transportation. We have to make sure there is a system there for them to satisfy their needs.”

How the heck will she do that? Bravo admits it’s a long-term goal, but in the near future, she says, there are projects that will immediately relieve congestion. She points to the often-out-of-sync traffic signal system. She says by creating a system that can monitor intersection congestion and adapt on a moment’s notice depending upon traffic flow can optimize efficiency. Once a system is in place, she says, it can become centralized and connected to the bus system.

“We want to get all of our systems working together,” Bravo said.

For the longer term, Bravo is concentrating on “connectivity points” — places that are convenient for commuters in different suburbs. She wants to turn those connectivity points into stations and work to bring people to those stations as easily as possible (whether it be adding sidewalks or bus lanes). From these stations, she wants to work with local municipalities to create shuttles to quickly take people to other hubs around the city.

And to really tackle the east-west transportation debacle, Bravo plans to work with various agencies to put buses on existing highways.

The top-tier transportation shakeup comes after Miami-Dade’s much-criticized former transit director, Ysela Llort, resigned last month. She had overseen the county’s transportation since county Mayor Carlos Gimenez was elected in 2011. Even though Llort was credited with connecting the airport line to Metrorail, many observers have pointed to the lack of east-west and late-night public transportation options.

“The bus/train fares keep increasing, and the conditions get worse and worse. How is this working for [us], the tax-paying, hard-working residents?” one online petition to Llort declares. “Find the money, make public transit a priority, and fix our city.”

Gimenez, in a move to tackle public transportation “more aggressively,” hired Bravo to replace Llort. Bravo left her previous post as deputy city manager, where she oversaw six departments, including public transportation. Bravo is credited with shepherding in Metromover’s Brickell extension and the city’s free trolley system.

Born and raised in Westchester, Bravo remembers driving past Metrorail as it was being built in the mid-1980s. On the weekends, her family would sit in traffic on South Dixie Highway on their way to Key Biscayne. From the car window, she stared at the colossal concrete beams and steel rails. It fascinated Bravo, who was only a tween, and planted the seed for flashy transportation ideas to come.

Bravo went on to study civil engineering at the University of Miami before earning her MBA from Florida International University. She worked first as an engineering consultant on transportation projects for 13 years. Then she went to work for the Florida Department of Transportation, where she was in charge of implementing well-known projects such as 95 Express and the PortMiami tunnel. She was then hired by the City of Miami to work in capital improvements and transportation. In 2011, she was promoted to assistant to the deputy city manager. Two-and-half years later, she was promoted to deputy city manager.

Now, Bravo is trying to put that experience to use by transforming Miami-Dade’s transportation policies.

“The scope of transportation for the county is very large and affects millions of people,” Bravo says. “The mayor’s vision is to combine the public transits with the roadway through public works to make sure all of our transportation systems are coordinated to maximize efficiency.”

Bravo wants to make sure the current transportation systems are clean, safe, and reliable. To that end, she’s been studying the technology and transportation systems in other metropolitan areas in the States and Europe. “There are a lot of different groups with different ideas. Everyone needs to come together to formulate these plans that’ll span out 20 years. It’s not built overnight, but over many years,” she says. “But we need to turn a corner and start acting.”

In the meantime, Bravo is excited about taking Metrorail to work. “Our office is just north of Government Center,” she notes.

 

Source: Miami New Times

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The End Of Urban Sprawl? Ambitious Plan To Fit A City Inside Skyscraper

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A stunning set of designs has envisaged what an entire city within a single skyscraper could look like.

The ‘Vertical City’ project features a futuristic-looking tower, which would be population-dense yet still feel spacious, holding 25,000 people at any given time.

Unlike traditional skyscrapers, which are self-contained and shut off from the natural environment, the 180-floor building would allow the outside world to become an intrinsic part of the interior.

Nice view: Architect Luca Curci believes that his Vertical City concept could improve the heal and wellbeing of residents

Nice view: Architect Luca Curci believes that his Vertical City concept could improve the heal and wellbeing of residents

Huge hexagonal voids would run up the side of the tower, allowing sunlight and rainwater to nourish the plant life inside.

The bold project was overseen by Luca Curci, an architect based in Bari, Italy.

 “We wanted to introduce a new approach to the architecture of contemporary cities – the idea behind the project is that the tower can be built anywhere,” said Curci.

Bee hive: Huge hexagonal voids run up the side of the tower, allowing sunlight and rainwater to nourish the plant life housed inside

Bee hive: Huge hexagonal voids run up the side of the tower, allowing sunlight and rainwater to nourish the plant life housed inside

If constructed, the 18-story building would be 2460ft (750 metres) tall. It would boast a green area of over 21,527,82 square ft (20

0,000 square metres), including the public garden square at the top of the building.

The foundations would be built into the seafloor, meaning that a number of floors would be underwater. Here parking, ‘technical areas’ and spas, meditation centres, gyms and luxury hotels rooms would be housed.

The building was designed to be energy-independent, producing energy from photovoltaic glass and solar panels housed on the roof

The building was designed to be energy-independent, producing energy from photovoltaic glass and solar panels housed on the roof

Designers envisage that the Vertical City would be accessed by water, by land or by air. The circular basement would be equipped with external and internal docks and three entries. Large boats would dock at the external berths, allowing private smaller boats to navigate into the building itself. A semi-submersed bridge would also allow pedestrians, cars and public transport to reach the water-based city while a heliport would connect with the upper garden-square.

Though he does not have a specific city in mind for the tower, Mr Curci imagines the project most suited to the Middle East – near cities such as Doha, Abu Dhabi and Dubai.

The majority of the tower would be filled with green space - but there would also be room designated for offices and residents.

The majority of the tower would be filled with green space – but there would also be room designated for offices and residents.

The building was designed to be entirely energy-independent, producing energy from photovoltaic glass and solar panels placed on the roof.

By having such a zero-energy building, the design team hope that such a tower would help societies rethink their relationships with nature

By having such a zero-energy building, the design team hope that such a tower would help societies rethink their relationships with nature

 

 

 

 

 

“The idea for this project started from the analysis of the skyscraper as a compact element, smooth and alienated from the surrounding space. The re-interpretation of this archetype and its linked way of life, conducted us to imagine an opened structure, equipped with green areas on each level, natural light and ventilation. Residents get into an healthier lifestyle, in connection with natural elements, and re-think the traditional concept of community and society,” Curci said.

 

Source: Daily Mail

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Foreign Investors Staking Claim To Miami’s Office And Retail Sectors

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High net worth investors, families, and wealth managers from Latin America, seeking to diversify their portfolios, have been on a buying binge for office buildings and single-tenant retail properties throughout Miami-Dade County during the past 18 months, real estate advisors and developers specializing in the commercial sector told The Real Deal.

“Their appetite for well-positioned income-producing assets coupled with Miami’s prospering economy are translating into appreciating property values at a faster pace than previously anticipated,” said Alex Zylberglait, president of The Zylberglait Group at Marcus & Millichap Real Estate Investment Services in Miami. “It is fueling transaction velocity across most product types. And there is particular interest in single tenant spaces.”

Alex Zylberglait, president of The Zylberglait Group at Marcus & Millichap Real Estate Investment Services

Alex Zylberglait, president of The Zylberglait Group

Zylberglait told TRD that his firm brokered the sale of six commercial properties to buyers from Argentina, Brazil, El Salvador and Italy in the past 15 months.

For instance, Zlyberglait represented the seller of a 20,000-square-foot office building at 1250 Northwest 57th Avenue that is the headquarters of Summit Aerospace, an aircraft maintenance company that generates approximately $18 million in sales annually. The building was sold in March of last year for $2.6 million to a company called Algafin, which lists Giorgio Rubini, an Italian national, as its manager.

4995 Northwest 72nd Avenue

4995 Northwest 72nd Avenue

In another Zylberglait brokered transaction in July of last year, a Brazilian-owned entity called Kireland 41 Street Doral purchased an L.A. Fitness at 10055 Northwest 41st Street for $9.9 million. More recently, Zylberglait represented the previous owner of an office building anchored by a Wells Fargo Bank at 4995 Northwest 72nd Avenue. The property was bought for $5.3 million on March 25 by St. Helena LLC, a corporation listing Frech Hasbun and Freddie Moises of La Libertad, El Salvador, as managers.

Zylberglait’s firm is not the only commercial real estate brokerage seeing more interest from foreign buyers. Earlier this month, Fabio Faerman of Fortune International/FA Commercial told TRD he represented a foreign buyer that purchased a 2,259-square-foot Taco Bell at 1650 Northeast 163rd Street in North Miami Beach.

“International investors are looking for business opportunities like this,” Faerman said in a statement. “This is a prime location with a great franchise, Taco Bell.”

Camilo Lopez, president and managing director of The Solution Group

Camilo Lopez, president and managing director of The Solution Group

The company is tearing down the old structure to make way for a Mediterranean-style office building called OFIZZINA. It will have 54 units totaling 96,767 square feet of office space, as well as three retail units at ground level and 332 parking spaces, Lopez told TRD. Camilo Lopez, president and managing director of real estate development and management company The Solution Group, said demand from Latin American buyers for commercial office space is the reason his firm is building an office condo in Coral Gables. In August of last year, Solution paid $6.6 million for a one-story office building at 1200 Ponce de Leon Boulevard, built in 1972.

“In our research meetings, we realized the office market is the least served sector in Miami,” Lopez said. “It doesn’t even reach 5 percent of the overall real estate market. Because of the very limited offerings, we decided to build a luxurious office condo building.”

The project, including the land purchase and construction, is being financed privately through a capital fund made up of investors from Latin America and Europe, Lopez said. He said the office condo concept appeals to South Americans.

Claudio Stivelman, a principal partner in Aventura-based S2 Development

Claudio Stivelman, a principal partner in Aventura-based S2 Development

Claudio Stivelman, a principal partner in Aventura-based S2 Development, said foreign investors staking claims to commercial properties in South Florida have buying power that begins in the $3 million to $5 million range.

“These are people who have likely already bought a condo or two in Miami and are looking to upgrade their portfolio,” Stivelman told TRD. “They may want to buy a Walgreens, a strip mall  or a warehouse.”

In recent months, Stivelman said, his contacts in Brazil have been introducing him to investors who are not interested in condos.

“They are seeing the strength of the commercial side,” Stivelman said. “They see an opportunity to make big money.”

Zylberglait said the foreign buyers he’s dealt with view commercial properties as a safer bet.

“The income generated from the properties is a much more stable situation than buying a half-a-million dollar condo that doesn’t produce income unless you can rent it,” Zylberglat explained. “Buying a commercial asset not only produces a stronger yield. It also allows the buyers to leverage those investments.”

 

Source: The Real Deal

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Miami International Airport Signs 14-Year Energy Savings Contract

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The Sustainability Project at Miami International Airport (MIA) is one of the largest energy performance contracts ever undertaken in Florida.

The $32 million project includes the installation of energy-efficient lighting, water conservation retrofits, air-conditioning and ventilation upgrades and other projects to optimize energy management with new technologies in airport energy efficiency.

FPL Services, a wholly-owned subsidiary of Florida Power & Light, won the energy performance contract with MIA via the Miami-Dade Aviation Department (MDAD).The project will save the airport 17 million kilowatts of energy each year. Miami International Airport will reduce operational costs and streamline maintenance by eliminating 400 types of lighting fixtures through upgrades and standardization throughout the airport and replacing more than 65,000 light bulbs with new energy efficient ones.The changes that FPL Services is making throughout the airport will also save up to 28 million gallons of water each year.FPL Services guarantees electricity and water consumption savings of more than $2.2 million annually while also achieving additional savings in maintenance. The project, which is funded by third-party financing, will be completely offset with the budgetary savings throughout the 14-year project.
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Renting And Flipping – New Miami Condos Is All The Rage

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The majority of new condo buyers in Miami have been looking to capitalize on their investments by flipping the units or renting them out, according to research by CraneSpotters.com.

Looking at the four largest condo towers completed in greater downtown Miami since construction resumed in 2011, anywhere from 45 percent to 96 percent of the units sold by the developers in each building were placed back on the market or put up for rent. That indicates a high level of investor ownership in those buildings, and also raises some questions.

With more than 18,100 condo units either under construction, planned with approvals or proposed in greater downtown Miami, according to CraneSpotters.com, is there enough rental demand at higher price points to support that many new units? And how will they be impacted by the nearly 7,800 apartments in the development pipeline?

The recently completed condo towers in Miami sold in the mid-$400s per square foot, but the average price per square foot for new projects is more than double that now, CraneSpotters.com principal Peter Zalewski said. When the sales prices climb, so must rents. Are there enough high-earning renters in Miami to fill those units?

“We strongly believe that when Brickell CityCentre opens and people will be able to walk to a shopping mall with a Saks Fifth Avenue, 11 cinemas and 500,000 square feet of retail, Brickell condos will raise in value and so will rents,” said Carlos Rosso, head of the Related Group’s condominium division. “Twenty-four-hour urban living close to the workplaces is and will continue to be in high demand.”

Here’s a look at how the four largest recently completed condo projects in Miami have performed:

CondoFlipping - Nine at Mary Brickell VillageNINE AT MARY BRICKELL VILLAGE
Units: 390
Units sold/price per square foot: 300 for $501
Active MLS listings/price per square foot: 17 for $469
Units resold: 0
Asking rentals/price per square foot: 95 for $2.78
Closed rentals/price per square foot: 23 for $2.47

CondoFlipping - 1100 Millecento Residences1100 MILLECENTO RESIDENCES
Units: 382
Units sold/price per square foot: 376 for $435
Active MLS listings/price per square foot: 99 for $403
Units resold: 1
Asking rentals/price per square foot: 67 for $2.59
Closed rentals/price per square foot: 120 for $2.25

CondoFlipping - BrickellHouseBRICKELLHOUSE
Units: 374
Units sold/price per square foot: 374 for $504
Active MLS listings/price per square foot: 91 for $627
Units resold: 7
Asking rentals/price per square foot: 64 for $3.63
Closed rentals/price per square foot: 77 for $3.24

CondoFlipping - MyBrickellMYBRICKELL
Units: 192
Units sold/price per square foot: 192 for $360
Active MLS listings/price per square foot: 31 for $379
Units resold: 8
Asking rentals/price per square foot: 19 for $2.67
Closed rentals/price per square foot: 126 for $2.01

It looks like some of these condo towers are more like apartment buildings. Projects in other South Florida cities have behaved quite differently. For instance, in Broward County’s largest newly completed condo tower:

CondoFlipping - BeachwalkBEACHWALK – HALLANDALE BEACH
Units: 300
Units sold/price per square foot: 289 for $448
Active MLS listing/price per square foot: 49 for $532
Units resold: 1
Asking rentals/price per square foot: 6 for $2.97
Closed rentals: 0

There’s a fair amount of resale activity, but not many rentals. However, Beachwalk has a rental pool system managed by the hotel management that doesn’t show up on MLS, so many unit owner participate in that. CraneSpotters.com also looked at the largest recently completed condominium in Palm Beach County, Bay Colony Juno Beach, and found only two of its 121 units on the rental market, although it had 23 resales.

For more on the South Florida condo market, see this week’s feature story with comments from the region’s leading condo experts. Most of them agree that sales are slowing.

 

Source: SFBJ

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Proposed ‘Green City’ Would Move UDB, Add Thousands Of Homes

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Property owners are proposing to extend Dade’s Urban Development Boundary westward with a massive new project.

The project would be called Green City, according to plans submitted last month. It could add about 26,000 new residents and thousands of new jobs near the edge of the Everglades.

Planned for the 859 acres include 11,401 homes, 1.36 million square feet of retail, 925,000 square feet of office, 350,000 square feet of industrial, 475,000 square feet of government and educational uses, and 660 hotel rooms.

Ownership of the property is controlled by several different entities who have combined for the application.

Extending development beyond the UDB is controversial due to concerns about sprawl and other environmental issues. Others, including the politically connected Jeff Soffer’s Turnberry Holdings have also been trying to move it. A supermajority vote is required by Dade’s commission.

View greencity on Scribd

 

Source: The Next Miami

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