What To Expect In Coconut Grove Commercial Real Estate This Year

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Coconut Grove is seeing boom times. How long will it last?

The Fairchild Coconut Grove

Oscar Rodriguez, principal of ROVR Development to get his insights on this market. ROVR is developing only new waterfront project rising in Coconut Grove—The Fairchild Coconut Grove.

GlobeSt.com: What are some of the main factors driving the recent boom in Coconut Grove?

Rodriguez: Coconut Grove has it all, from lushly landscaped quiet neighborhoods and architectural charm to a dynamic cultural, dining and entertainment destination and an active beautiful waterfront on Miami’s Biscayne Bay. All of this is within close proximity to Miami’s business and financial core, making Coconut Grove an ideal place to call home.

The community has so much to offer: beautiful parks, close proximity to the best schools including Gulliver Academy, Ransom Everglades School, Carrollton School of the Sacred Heart and The University of Miami, green canopied neighborhoods and amenity driven shopping and dining centers such as The Mayfair and Cocowalk. Coconut Grove is central to everything and has a hip vibe that can’t be replicated.

GlobeSt.com: What is your forecast for the market in Coconut Grove for 2018?

Oscar Rodriguez

Rodriguez: Coconut Grove has always had a unique heart and soul that will continue to be the source of its popularity and success. The area has attracted high profile residents and has developed exponentially in the past few years. Local and international demand for this one of a kind community will continue to propel Coconut Grove as one of the strongest markets in South Florida.

As more and more people are drawn to the area and discover its untapped potential, it will continue to grow and progress. But I believe it will always hold on to that unique vibe that makes it special and preserve that neighborhood feel.

 

Source: GlobeSt.

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Downtown Miami Church Sold To Developer For $55M

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Property Markets Group acquired the site of a downtown Miami church along Biscayne Boulevard for $55 million, with plans to build a major mixed-use tower.

The First United Methodist Church of Miami sold its 1.15-acre property at 400 Biscayne Blvd. to New York-based PMG. The deal was partially funded by Toronto-based Greybrook Realty Partners, which previously announced plans to invest $32.2 million into the project. The site is near American Airlines Arena, Miami Dade College, and the College/Bayside Metromover Station.

PMG’s Ryan Shear, Evan Schapiro, Matt Ellish, and Yechiel Ciment negotiated the deal. They were represented by Saul Ewing Arnstein & Lehr attorneys Luis Flores, Rebecca Sarelson and David Yontz, plus Josh Kaplan at Bilzin.

“This is our third investment in the Biscayne corridor, increasing our ability to create innovative living experiences for residents,” Shear said. “We feel that this market is one of the most important areas of Miami from a future growth perspective, general location and view standpoint.”

The developer said it plans to build over 690 units and about 20,000 square feet of commercial space. The property is zoned for about 50 stories. The apartments would be branded by PMG’s new X Social Communities division, which appeals to young professionals seeking more attainable pricing. Its nearby X Miami apartment building, which is under construction, is part of the same brand.

The 400 Biscayne project would have co-working spaces, an oversized fitness center, communal kitchens, smart package lockers, smart home technology controlled by an app, and many pre-furnished units. As part of the project, PMG will build a new church on the site with a separate entrance for FUMC Miami.

“FUMC wanted to rebuild the church in the same location, so the relationship with the potential buyer was very important,” Flores said. “They liked the young and thriving energy that PMG brings to its developments and could see themselves doing business with the developer in the short and long term. The transaction is unique because we had to wear different hats at different times since we are the buyer and builder of the future church.”

“It was the right time for the church to take advantage of the revitalization of its neighborhood,” Pastor Dr. Audrey Warren said. “The project will ultimately allow the church to grow and meet its future operating needs.”

PMG said the architect of the building is Sieger Suarez, and Carlos Ott is consulting on the church that will be included in the structure.

 

Source: SFBJ

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Planned Redevelopment Of Former INS Location In Miami Draws $26M Loan

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Developers planning to redevelop a former home of the U.S. Immigration and Naturalization Service (INS) in Miami borrowed $26 million to finance the project.

Three entities managed by Ye Zhang — Florida Fullview Immigration Building, Fullview Immigration Building I and Wealthy Delight — borrowed the money from an affiliate of Madison Realty Capital.

In 2013, the developers paid $12.5 million for the former INS location at 7880 Biscayne Boulevard, which the federal agency vacated in 2008.

The developers have razed the building the INS occupied and plan to turn the 1.4-acre property into a mixed-use development called Triton Center, designed by Stantec.

Triton Center would encompass a 139-room Hilton Garden Inn hotel, 324 apartments, approximately 585 parking spaces, and 25,000 square feet of commercial space.

 

Source: The Real Deal

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“Climate Gentrification” Could Add Value To Elevation In Real Estate

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Homes at higher elevations in Miami are gaining value at a faster clip than those closer to sea level.

It’s an accelerating trend, and it has residents and real estate agents — in Miami and other coastal communities — asking whether “climate gentrification” has arrived. The term, which only recently entered the lexicon, describes the role of climate change in recalibrating land values, a phenomenon that ultimately could displace low-income and minority residents in a similar fashion as urban gentrification. As sea levels rise and flooding persists, the thinking goes in the case of Miami, waterfront property will lose some of its luster and higher-situated neighborhoods like Little Haiti and Little Havana will become more attractive.

The professor who was first to publish research using the phrase “climate gentrification” isn’t convinced that’s the main culprit in Miami. At least not yet. Jesse M. Keenan, a researcher on urban development and climate adaptation at Harvard’s Graduate School of Design, tracked the rate of price appreciation since 1971 for more than 250,000 residential properties in Miami-Dade County, and compared those figures to elevation. Keenan found that properties at high elevations have long appreciated faster in Miami, mostly because of nonclimate factors.

However, since 2000, the correlation between elevation and price appreciation has grown stronger, which Keenan, in an interview with CBS MoneyWatch, suggested may be “early signaling” of preference for properties at higher elevations and a reaction to persistent nuisance flooding in lower areas.

His prediction: Over the next 10 years, climate change will become a more significant factor in the real estate market for many cities. He expects a “slow burn” toward a tipping point — similar to the foreclosure crisis — when all of a sudden values drop precipitously for high-risk properties.

“This is real,” Keenan said. “There are actual people spending lots of money thinking about how to make money from climate change. We have to come to terms with this sooner than later.”

Keenan tracks at least three “pathways” to climate gentrification, and the variations stem in part from the “location, location, location” mantra of real estate. The three scenarios:

  • Low-risk properties surge in value, fueling a migration from high-exposure areas, causing displacement. This isn’t just a sea-level issue: California’s wildfires, for instance, are likely to lead to significant changes in how real estate is valued. “Anything related to climate change,” Keenan explained. “Low exposure is the determinate.”
  • Living in high-exposure areas gets so expensive (think taxes, insurance, etc) that only rich people can live there, pushing historically mixed-income areas (such as Miami Beach, Florida, and Hampton Roads, Virginia) to become more exclusive.
  • Government investments in resilience have the unintended consequence of boosting land and property values that wind up displacing populations. Sea-level fortifications on the Lower East Side of Manhattan could have this affect, Keenan said.

What’s at stake?

“People’s lives, their livelihoods and their culture,” said Mustafa Santiago Ali, senior vice president of climate, environmental justice and community revitalization for the Hip Hop Caucus, a nonprofit that connects the Hip Hop community to civic life.

Ali, who previously spent 24 years in various roles at the Environmental Protection Agency, said it’s fairly easy to predict who the winners will be as climate gentrification takes hold — led both by one-time events such as hurricanes and the more gradual process of sea-level rise. The answer, of course, is wealthier people.

“Who has the resources? Who has the access?” Ali asked in an interview with MoneyWatch. “Who has the education to understand what’s coming and navigate that?”

One key to ensuring a more equitable outcome is making sure communities are heard, are involved in development, including “adaptation” measures to accommodate climate change, and have avenues to take advantage of rising property values, Ali said. In fact, climate will be a focus area of a new initiative of the Hip Hop Caucus set for launch in spring that targets vulnerable communities.

In Miami, residents of some inland coastal neighborhoods that sit at comparatively high elevations, including Little Haiti, worry that rising property values fueled by sea-level increases could price them out, as PRI reported last week.

Developers have proposed three new projects in the Little Haiti neighborhood that could push immigrants and people of color out, activist Valencia Gunder told PRI.

“In Miami, historically because of racism, redlining and segregation, all of the brown and black people were forced to live in the center of the city, which also happens to be the high elevated areas,” she told PRI. “So, they pushed us here because they didn’t want us on the beach.”

For some buyers these days, the beach looks like a better place to visit than to live. And it’s not just coastal areas that could face consequences of “climate gentrification.” Coastal residents are likely to flock to inland cities in droves — with Austin, Texas; Orlando, Florida; and Atlanta likely to gain the most new residents, according to a study by Mathew Hauer published by the journal Nature in April.

The study, which considers a sea-level rise of about six feet by the year 2100, forecasts a migration of as many as 13 million people (double the total of the Great Migration), with more than 2.5 million fleeing the region that includes Miami, Fort Lauderdale and West Palm Beach. New Orleans would lose about 500,000 people, the study predicts, and the New York City area would lose 50,000 people.

That doesn’t mean coastal areas would empty out. History shows people will always want to live near the water, noted Joel Myers, founder and president of commercial weather service AccuWeather Inc.

Sea levels have been rising for thousands of years, he added, and even as that rise accelerates, the other side of the coin is there’s less waterfront land available to purchase. A simple formula of supply and demand.

Click here to view the CBS MoneyWatch video ‘Climate Gentrification Could Add Value To Elevation In Real Estate’

 

Source: CBS News

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Can ‘Miami Modern’ Do For North Beach What ‘Art Deco’ Did For South Beach?

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South Beach’s transformation from tired haunt for retirees to booming hub for tourists and fun-seekers is partly owed to the unique architecture of the area.

The city’s renaissance over the past few decades has been set against a backdrop of Art Deco hotels and apartment buildings that have become avatars for Miami Beach. They’re emblematic of the coastal city’s early history and the activists who fought to preserve these relics of the past. Now city leaders want to repeat the magic.

This 1956 building, designed in the Miami Modern style by architect Gilbert Fein, is an example of the kind of architecture that is being preserved with the creation of two new local historic districts in Miami Beach. (PHOTO CREDIT: Joey Flechas, Miami Herald)

The city is moving to protect more than 200 mid-century apartment buildings across two new local historic districts — which comes with significant protection from demolition. The swath of low-slung multi-family buildings were built after World War II, many in the “Miami Modern” or “MiMo” style that has enjoyed a resurgence through the renovation of hotels along Biscayne Boulevard in the upper east side of Miami.

On Wednesday, Miami Beach commissioners unanimously voted to give initial approval to two districts in the north part of the city — one on the east end of Normandy Isle and the other a few blocks inland from the sand along the north shore between 73rd and 87th streets. A final vote will be held Jan. 17.

The designation was heralded by elected officials and preservationists who have long sought to protect this corner of Miami Beach. The hope is that by safeguarding these buildings, encouraging owners to renovate them and coupling the historic districts with a soon-to-be-redeveloped “town center” in the middle of North Beach, the whole neighborhood will be revitalized and see new economic investment. Wednesday’s vote was applauded by residents.

“Place-making is so important when you build the character of a city, and Miami Beach is one of the most unique cities in the world,” said Tanya Bhatt, a North Beach resident and activist.

This apartment building, constructed in 1949 and designed by Gerard Pitt was the setting in the last scene of “Moonlight,” the winner of the Academy Award for best picture. It is now on track to be protected from demolition as part of a local historic district (PHOTO CREDIT: Joey Flechas, Miami Herald)

The local districts include Harding Avenue from 73rd up to the northern border of the city at 87th Street, a section from Harding to Dickens Avenue between 73rd and 75th streets, and buildings on Bay Drive, Marseilles Drive and South Shore Drive on the eastern edge of Normandy Isle. This area covers a portion of the National Register District, a federal designation that does not provide any local protections.

All told, there are 313 buildings in these districts, and 271 of them are considered architecturally significant enough to contribute to the character of the neighborhood. City planners have spent a year studying each structure to prepare designation reports that provide the historical context of each district and highlight the architects who designed the neighborhoods.

“A city that respects its history respects its future,” said Mayor Dan Gelber.

The vote marked a major victory of the city’s preservation community, including the group that fought to save Art Deco from the wrecking ball of developers, the Miami Design Preservation League. Not since 1990 have so many historic buildings been given local protection at one time.

“It’s something that the community has been working on for over 10 years, to bring local protections for these beautiful Miami Modern neighborhoods in North Beach. We’re looking forward to a great future for North Beach,” said Daniel Ciraldo, the league’s executive director.

This apartment building, built in 1955 and designed by noted architect Gilbert Fein, is an example of the typical Miami Modern architecture that can be found in North Beach. It is in one of two new local historic districts that were initially approved on Wednesday. (PHOTO CREDIT: City of Miami Beach)

More buildings are scheduled to be designated, as well. Two stretches of buildings on the Tatum Waterway are currently protected by a demolition moratorium while city planners prepare designation reports for these structures. Commissioners agreed to add these buildings to the mix after the preservation community agreed to support for a zoning increase referendum for the area surrounding North Beach’s main drag, 71st Street. That referendum passed in November’s election.

Click here to see which Miami Modern buildings are part of the upcoming Historic Districts. 

Click here to view North Beach Historic Districts on Google Maps.

 

Source: Miami Herald

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Will Chinese Condominium Buyers Keep Flooding Miami In 2018?

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What’s ahead in 2018 on the condo front? Is there a sweet spot in the market? What about Chinese buyers?

GlobeSt.com caught up with Art Falcone, co-founder and managing principal of Encore, to get his thoughts in part one of this exclusive interview series.

GlobeSt.com: You recently sold out your luxury condo project on Fort Lauderdale Beach. Do you expect sales momentum for luxury condos in South Florida to continue in 2018 or will there be a slowdown?

Falcone: We could potentially see a slowdown because of lenders, not a lack of buyers. The slowdown on luxury condos started about two years ago, and because of that, lenders have pulled back dramatically on financing new condo projects. That’s ultimately causing problems for developers and resulting in an additional slowdown.

GlobeSt.com: Is there a sweet spot in the condo market right now? 

Falcone: The sweet spot is in amenity-rich developments. That includes both the actual buildings and the surrounding communities. Our Miami Worldcenter project is in the middle of Downtown Miami where people can live, work and play.

They have the best shopping and restaurants plus museums, the performing arts center and sporting games and arenas. Everything is walkable. If you’re under $800 per square foot in a great, amenity-rich area, that’s the sweet spot.

GlobeSt.com: Chinese buyers have been active at Paramount Miami Worldcenter. Do you see an influx of Chinese buyers coming to Miami in the year ahead? 

Falcone: The reason we’ve seen so many Chinese buyers at Paramount Miami Worldcenter is because we’ve actively sought them out by going to China every month. That being said, right now both Orlando and Miami International airports are considering adding non-stop flights to China.  If that happens, there will definitely be an influx of Chinese buyers.

 

Source: GlobeSt.

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Miami Board OKs Waivers For Proposed Mixed-Use Tower In The Arts & Entertainment District

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An Aventura orthopaedic surgeon and his wife are spearheading plans to convert a prime slice of vacant land on Biscayne Boulevard and 17th Street into a 53-story mixed use tower.

Barry J. Silverman and Judy Silverman manage V Downtown Inc., a company that is proposing to build the new high-rise in Miami’s Arts & Entertainment District.

Miami’s Urban Development Review Board signed off on several waivers requested by V Downtown for the project at 1775 Biscayne Boulevard at its meeting on Wednesday.

Rendering of the proposed tower at 1775 Biscayne Blvd.

The project, designed by Kobi Karp, would have 444 residential units, 200 hotel rooms, 45,600 square feet of commercial space, 64,500 square feet of office space, and 546 parking spaces. The project would include a rooftop amenity deck for the residences and a lower amenity deck for the hotel and retail uses, which would be open to the public and provide access to views of Biscayne Boulevard and Biscayne Bay. The development is adjacent to the Omni Center and just east from Opera Tower.

The commercial spaces would be on the ground and lower levels and followed by the office space on floors two through seven. The hotel would occupy the 10th through 17th floors with the residential units taking the upper floors, according to documents filed with the city.

V Downtown sought waivers to increase the lot coverage to 88 percent instead of the 80 percent that is currently allowed; to allow a floor plate of 19,800 square feet where only 18,000 square feet is allowed for the residential side; to reduce the required parking by 30 percent because the project is located near the Omni Metromover station and bus depot; and to allow the parking structure to extend along the entire length of the proposed frontage. The garage would have an artistic or glass treatment to help conceal it, documents show.

The Silvermans are known for their philanthropic work with Jewish organizations such as the American-Israel Public Affairs Committee, the Greater Miami Jewish Federation Foundation and the Aventura Turnberry Jewish Center. Through the Barry and Judy Silverman Foundation, the couple have funded local educational and social services with a special focus on people with disabilities and special needs.

 

Source: The Real Deal

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Mixed-Use Development Project Near UM Obtains $95M To Start Construction

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NP International obtained a $95 million construction loan for its Paseo de la Riviera mixed-use project across the street from the University of Miami in Coral Gables.

Click on the photo for a SFBJ rendering sideshow of the Paseo de la Riviera project

Starwood Property Mortgage, as the administrative agent for a group of lenders, assumed the $16.5 million loan originally granted last year by TotalBank and boosted it to $95 million. The borrower is 1350 S. Dixie LLC, an affiliate of NP International led by President Brent Reynolds. The general contractor is Balfour Beatty.

“Paseo de la Riviera will break ground before the end of 2017 and will take two years to complete,” Reynolds said. “Getting the construction loan is a big milestone. We’re pleased to have a great partner like Starwood.”

NP International has yet to announce a hotel brand for the project or select a leasing manager for the commercial space.

The company acquired the 2.7-acre site at 1350 S. Dixie Highway for $44 million in 2016. The 55-year-old Holiday Inn there is being demolished to make way for Paseo de la Riviera.

The project would have 240 hotel rooms, 200 apartments, 4,380 square feet of restaurants, 20,000 square feet of retail, and a parking deck.

“The hotel will have 10 stories, and the apartment building will rise six stories on top of the parking deck,” Reynolds said. “There will be separate pools for apartment residents and hotel guests. The hotel will have a conference room to serve the community, but not full banquet facilities. There really hasn’t been a new or upgraded facilities in quite some time, so to have an upgraded, modern lifestyle brand that serves not only the community and the university, but also the businesses, in the area is a win-win. There will be a paseo for pedestrians to walk between two the buildings, passing from U.S. 1 to a public park. The paseo would draw the community into the project’s open space and encourage both the apartment residents and hotel guests to go downstairs and congregate. It’s almost like an urban living room.”

 

Source: SFBJ

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Argentines Are Becoming ‘Power Players’ In Miami Real Estate

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Emilio Palomo (the past chair of the Master Brokers Forum, an elite network of the top real estate professionals in Miami, and the owner/broker of Riteway Properties III) recently went to a party for the opening of a Miami Beach hotel.

He was not familiar with this particular hotel or the people behind it, and attended on the invitation of a colleague. After a few minutes, it became clear to him that most of the guests were from Argentina (or of Argentine descent), and he was not surprised to learn that the owners are themselves native Argentines who have been — somewhat quietly — buying and upgrading Miami Beach hotels for many years.

Emilio worked with buyers and sellers from around the world over the course of his 47-plus years in Miami real estate. He feels fortunate to live in a city that draws so much global interest, with buyers coming from Europe, Asia, Latin America, Canada, and (of course) the U.S. Many find our real estate prices to still be reasonably low compared to their home nations.

Some foreign buyers come here because of political instability and lack of security in their countries, others because of our weather, beaches and everything else Miami has to offer. Whatever the reason, Miami has become one of the most desired international destinations in today’s market for a permanent or second (or third!) home.

And while buyers from Russia, Brazil, Colombia and Venezuela have drawn the biggest headlines for their respective impacts, he believes that Miami’s Argentines have not received nearly enough attention for their significant contribution to the economy and real estate market.

Some of this may be due to the nature of Argentines themselves, who in Emilio‘s opinion and experience tend to be quite modest and discreet. Thanks to referrals from friends in the banking community, over the years he has built a solid base of Argentine clients, and become friendly with many of them. (His Cuban-American family has become close with one particular group for whom he sold and managed units, and recently joined them to make some amazing wine in Mendoza, Argentina.)

But it would seem that the days of Argentines flying under Miami’s “real estate radar” are in the past. Some of the city’s most visible and exciting new projects are being created by developers with deep roots in Argentina, including:

  • Mid-Miami Beach’s acclaimed Faena District, a six-block project that features luxury hotels, bars, condominiums, a cultural center and a retail complex, from the visionary mind of Argentine developer/artist Alan Faena.
  • The Aston Martin Residences, the car maker’s first branded condominium project, which recently broke ground. The 66-story building located at the mouth of the Miami River is being developed by G&G Business Developments, a Miami-based firm owned by Argentine supermarket magnate German Coto and his mother Gloria.
  • The Oceana-branded condominiums in Key Biscayne and Bal Harbour, created by Buenos Aires native (and international art collector) Eduardo Costantini.

In addition to these high-profile projects, observers may have noticed a quiet explosion of Argentine restaurants and other businesses in Miami over the past few years, reflecting the growing population of residents and visitors. From what Emilio has noticed, many of the wealthiest Argentines make their homes in Key Biscayne, but there are also many to be found in Aventura, Miami Beach, Brickell, Downtown, Midtown and Edgewater.

Unfortunately, not all news involving Argentine interest in Miami real estate have been positive.

Last month, The Miami Herald reported that former president Cristina Fernández de Kirchner was accused by the nation’s top anti-corruption official of secretly owning more than 60 Miami properties bought with “dirty money.”

While this item is concerning, Emilio believes that Argentina’s recent change in government, and the stability being demonstrated by its new reform-minded leadership, will put the country on a path toward sustained economic growth. This would obviously allow even more Argentine investment in Miami — the “clean” kind we very much prefer.

Emilio is looking forward to many more years of welcoming Argentines and others who continue to make Miami a dynamic, evolving, and truly international city.

 

Source: Miami Herald

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Bruce Berkowitz And Billionaire W.R. Berkley Buy Coconut Grove Assemblage

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A company led by billionaire William Berkley and Bruce Berkowitz of Fairholme Holdings just picked up pieces of an assemblage in west Coconut Grove.

B and B Group Properties LLC just paid $5.4 million for six lots totaling about an acre at a bankruptcy auction, according to attorneys Dan Gonzalez and Peter Russin, partners at Meland Russin and Budwick. They represented the seller, Nassau Development of Village West Corp. and Grand Abbaco Development of Village West Corp.

The court appointed Stearns Weaver attorney Drew M. Dillworth as trustee of the bankruptcy estate. Cori Lopez-Castro of Kozyak Tropin Throckmorton LLP represented the buyers.

Lopez-Castro said Berkley and Berkowitz have no immediate plans for the properties, which were part of a bigger, roughly 30-parcel assemblage in the West Grove. Berkowitz is an equity fund manager and Berkley is founder and chairman of the insurance giant W.R. Berkley Corporation.

The properties sold were: 3364, 3384, 3441 and 3461 Grand Avenue, and 3400 and 3412 Florida Avenue.

Other bidders included a partnership between David Martin’s Terra and Michael Comras, and Orlando Benitez Jr., one of the lenders who settled with the trust. BankUnited and Wilmington Trust were the lead lenders.

The trustee, Dillworth, tried to arrange a deal for the bigger assemblage before heading to auction with the six parcels, Russin said. Terra offered to pay about $35 million for the bigger assemblage last year, but pulled out due to environmental concerns.

Records show the Nassau and Abbaco LLCs are controlled by Julio Marrero, Rosa Marrero, Phillip Muskat and Benitez. A bigger sale has been held up by infighting among the partners. Benitez, who reportedly stated that he brought Terra to the deal, tried to stop that sale last year. Marrero called him a “rogue stockholder,” the Miami Herald previously reported.

 

Source: The Real Deal

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