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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Developer Funding For Underline Could Result In Larger, Taller Projects Along Metrorail

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Developers building projects along or near the Underline could be allowed to go bigger if they contribute funds for the city of Miami’s portion of the planned 10-mile long linear park.

Under a proposal crafted by the clty’s planning and zoning department, projects within a half-mile radius of Metrorail stations could get an increase in height from eight to 12 stories, as well as a floor lot ratio bonus increase from 25 percent to 35 percent in exchange for improvements and maintenance to the Underline, which will run underneath Metrorail’s elevated tracks from the Dadeland South Station to the Brickell Station. Developers could also opt to pay contributions into a public benefits fund set up by the city.

Renderings of the Underline linear park and trail in Miami-Dade County

“The objective is to incentivize sustainable development that embraces the 10-mile Underline,” said Melissa Tapanes, an attorney representing Friends of The Underline.

Donations would be based on a percentage of the market value of the per-square-foot price charged for units in projects near and along the Underline. In addition, the contributions would only apply to the five miles of the linear park that fall within city of Miami limits. Developers could also score a 20 percent parking reduction for their projects if they place bicycle racks in their development sites along the Underline.

At a recent meeting of the Miami Planning, Zoning and Appeals Board, Aaron Stolear of 13th Floor Investments said his employer strongly supports the legislation.

“We think it will enhance the Underline and make the vision happen,” Stolear said.

The board unanimously recommended approval, but the city commission will make the final decision.

Last year, 13th Floor and The Adler Group won a Miami-Dade County bid to develop Link at Douglas Station, a mixed-use development that will include 970 residences, a 150-key hotel and 70,000 square feet of retail space and a public plaza. The seven-acre project will connect to the Metrorail Douglas Road Station at 3060 Southwest 37th Court. As part of the deal, 13th Floor and Adler will make a $600,000 contribution to The Underline.

In a recent email, 13th Floor Managing Principal Arnaud Karsenti said the new legislation would not directly benefit Link at Douglas Station because the project is already receiving zoning bonuses and benefits from the county that exceed what is proposed by the city.

“However, we definitely believe that this will have a beneficial impact on all neighboring properties,” Karsenti said, “It will stimulate better urban development along the entire US-1/Metrorail corridor.”

In September of last year, Miami city commissioners approved $50 million in funding for the $120 million linear park. The money would come from development fees charged by the city. About $67 million will be raised through private donations and other public funding.

 

Source: The Real Deal

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Miami-Dade Beacon Council Announces New Jobs And New Chair At Annual Event

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More than 400 people attended a recent Miami-Dade Beacon Council‘s annual meeting at the InterContinental Miami, where business and civic leaders touted the agency’s recent wins and toasted its new chair.

For the first time, the county’s economic development group combined its annual meeting with its key ceremony, providing insights into the companies it helped expand or move to Miami-Dade.

The Beacon Council reported that 46 companies relocated or expanded in Miami-Dade County in the 2016-2017 fiscal year, bringing in more than 2,100 new jobs to the region and generating $209.7 million in new capital investment.

The event marked the first annual meeting attended by the organization’s new CEO and President Michael Finney, who previously served as the president and CEO of the Michigan Economic Development Corporation.

“I’ve been impressed with… the warm Miami welcome,” Finney said. “There is really commonality here and a desire to work with one another that’s in full display.”

One of the key accomplishments highlighted at the event was Amazon breaking ground on an 855,000-square-foot fulfillment center in Opa-Locka in June. The project is expected to open by the end of 2018, and Amazon said the warehouse will bring at least 1,000 jobs to the local economy.

While Amazon was not in attendance at the event, other companies present included online boat marketplace Boats Group, which brought in 80 new jobs to the county and a capital commitment of $1.05 million; and Dunham Bush, a Malaysian manufacturer, which added 51 new jobs and $12.5 million in capital.

The economic development agency also touted its new programs and task forces. Specifically, it mentioned its “Connect and Grow” program, which works to connect entrepreneurs and innovators and their new products and technologies to established businesses.

The Beacon Council‘s new Chair Nelson Lazo, CEO of Doctors Hospital, addressed the audience. Lazo takes over for Jaret Davis, co-managing shareholder of Greenberg Traurig’s Miami office, as the agency marks the start of its new fiscal year.

“It is time we told the new story of Miami instead of letting old narratives define who we are to the world,” said Lazo, after thanking Davis for his service.

Davis received video tributes from the economic development group and the University of Miami, which will honor him for contributions to his alma mater on Nov. 4 during its homecoming game at Hard Rock Stadium. Miami-Dade County Mayor Carlos A. Gimenez was one of many to laud Davis‘ contributions to the county’s economic landscape.

“You’re outstanding and a great treasure…. for everything you have done for this community,” said Gimenez, who then handed Davis a a plaque commemorating Thursday, Oct. 26 as Jaret Davis Day.

Since 1985, the Miami-Dade Beacon Council has assisted more than 1,000 businesses that have created nearly 70,000 direct jobs and generated more than $4.6 billion in capital investments, it said.

 

Source: SFBJ

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Upcoming Ballot Measure: North Beach’s 10-Block District Transformation

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One of the key measures on Miami Beach’s upcoming ballot is item #82, which would allow North Beach to move forward on the key facet of a master plan for revitalizing a 10-block district along 71st Street between Collins Avenue and Indian Creek Drive.

If approved by the majority of Miami Beach voters, the initiative would adopt an ordinance increasing FAR (floor area ratio) in the town center zoning districts to 3.5, which would pave the way for a more walkable and dense neighborhood with new public spaces, housing, dining and retail. Mid-rise buildings would be approved up to 125 feet tall, roughly doubling the total building density.

Over 1,000 NoBe residents played a role in guiding the master planning process, which came to fruition with a design by urban planning and design firm Dover, Kohl, & Partners. Check out their 189-page blueprint here.

Among the community leaders supporting the measure are Miami Beach Mayor Philip Levine, Miami Beach Commissioner Ricky Arriola, former Miami Beach Commissioner Nancy Liebman, and Miami Design Preservation League Executive Director Daniel Ciraldo.

Early voting begins November 2 and Election Day is November 7.

Check out the potential transformation with the before and after images below:

71st Street

72nd Street parking lot

 Normandy Fountain

 

Source: Curbed Miami

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Important Commercial Real Estate Lessons From Hurricane Irma

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Insurance coverage is top of mind for Florida’s commercial property owners following the damage left from Hurricane Irma.

Building owners had rushed to review their policies to determine whether they had adequate insurance coverage in place in preparation for the storm.

GlobeSt.com caught up with Tom Kersting, president of the insurance services division of Franklin Street, and Nancy Sheinberg, vice president of insurance services, to discuss how insurance providers are helping property owners navigate their Irma policy claims.

GlobeSt.com: What pre-hurricane steps did your team take to help expedite the claims process?

Kersting: We spent several days on the front end of Irma communicating with our clients, pushing out proactive risk management tips, encouraging them to review coverages and make sure they had their policies readily available post-storm. This information is provided when our clients bind policies, but it becomes important to “refresh” as a major storm approaches. This year we also developed a variety of digital tools so clients can easily get in touch with us and report claims if they have one.

Sheinberg: What we did before the storm really made a big difference. An emergency claims phone system was set up so clients were getting a call back within minutes of submitting a claim. Franklin Street has also developed a proprietary master policy layered program that can save property owners thousands of dollars both regionally and nationally, while meeting all lender requirements. Hurricane Irma is showing that our insurance coverages are solid, so it gives credence to the program.

GlobeSt.com: What type of insurance claims are you getting most frequently?

Sheinberg: What we’re seeing most are trees down and roof damage from fallen trees or water leakage. But we still have many clients in South Florida who haven’t been able to get to their properties to inspect the damage.

Kersting: Much of the damage that has been reported to us has been to our multifamily properties.  Often multifamily assets are wood-framed buildings that are generally not as protected as office buildings.

The majority of our claims are coming from the east side of the state. We still expect more claims to come in, at this point some owners haven’t been able to visit their properties yet.

This is especially the case with out-of-town owners who may have difficulty getting access for a few more days. In other cases, it’s common for owners to be aware of damage but they haven’t decided yet if they want to report a claim or go about funding repairs themselves.

GlobeSt.com: What are some important lessons learned from Hurricane Irma?

Kersting: From an insurance stand point, there haven’t been major insurance claims incidents in Florida for over 10 years. An event like Hurricane Irma makes policy holders reevaluate their insurance coverage and take a hard look at their deductible levels.

These are conversations that need to be had, we don’t want our clients to be surprised in a time that they turn to their insurance carrier for help.  We continuously push to educate our clients about their coverage options and show them how their insurance policy will be a valuable tool to protect their balance sheet, not simply an expense burden that appeases a lender.

(There are legal issues involved in filing insurance claims of which you may not be aware. Find out what you must know now to avoid felonies.)

 

Source: GlobeSt.

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Two Towers Proposed For Greater Downtown Miami

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Developers of two major projects submitted proposals to a city of Miami board, including plans for a hotel in the Arts & Entertainment District and for a mixed-use tower in downtown Miami.

Rendering of the Sterling and the hotel at 511 Northeast 15th Street (Credit: Shulman + Associates, Behar Font & Partners)

Behar Font & Partners submitted plans for the Sterling, a proposed 73-story tower at 555 North Miami Avenue called the Sterling. Property records show Dania Beach-based Miami 6th Street LLC, an affiliate of the Turkish Okan Group, owns the 36,000-square-foot development site.

Plans call for 362 residential units, a 300-unit key hotel, 55,400 square feet of office space, and retail space.

The Istanbul developer paid $18.1 million for the parking lot near the historic Central Baptist Church in March. At the time, a broker involved in the sale said the site was zoned for a 1,000-foot building with as much as 1.3 million square feet of space for retail stores, offices, hotel rooms and condos.

One Miami Biscayne Bay and Arts District Hotel, a company controlled by Vinay Rama, submitted plans for 42-story, 270-key hotel on the corner lot at 511 Northeast 15th Street in Miami’s A&E District.

Rama heads Miami-based Mandala Holdings, a hospitality investment platform. His firm paid $8 million for the development site north of downtown Miami. The plans, designed by Shulman + Associates, include meeting space, a lobby with retail space, office space for the hotel management, a pool deck and fitness center. The proposal also calls the project Marriott Miami.

Both developments will go before the Miami Urban Development Review Board.

 

Source: The Real Deal

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Developers Plan Mixed-Use Project “Eden” In Miami’s Little River

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Developers Stambul, Miami Real Exposure and P & K Developments are bringing a 42,000-square-foot, mixed-use development called Eden to Miami’s Little River neighborhood.

Records show Miami-based companies 8045 NE 1 Avenue Properties and 79th Street Development bought the two parcel site at 235 and 237 Northeast 79th Street in May for $2.6 million. The entities share a 50 percent interest.

Eden will consist of four buildings offering restaurant, retail and office space. No leases have been signed yet, but rates are $18 per square foot to $35 per square foot, according to a spokesperson for Bloommiami. The development is slated to open in the the first quarter of 2018.

Rendering of Eden (Credit: Bloommiami)

Bloommiami is the architect. The architect and design firm also worked with Stambul in the redevelopment of the Langford Hotel in Downtown Miami. Other projects Stambul is working on include redeveloping the 145-room Clarion Inn near the Galleria at Fort Lauderdale.

Rendering of Eden (Credit: Bloommiami)

Compared to nearby communities like the Design District and the MiMo District, Little River has typically seen less development, but investors are starting to take notice. Last year, Miami’s planning and zoning board approved Little River’s first restaurant with a full-service bar. The site at 7220 North Miami Avenue was a former car repair shop. The property, owned by Avra Jain and Matthew Vander Werff, will be a craft cocktail lounge and bar called Apollo Motors.

 

Source: Real Deal

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