Category Archives: News

Broward and Palm Beach office markets improve in Q1: report

Wednesday, April 18, 2018

West Palm Beach skyline (Credit: Wikipedia)

Palm Beach and Broward counties’ office markets reported growing rents and declining vacancies in the first quarter of this year, while the office market in Miami-Dade showed marginally higher vacancies, according to recently released reports from JLL.

Miami-Dade

In Miami, the overall vacancy rate rose slightly to 13.5 percent in the first quarter of this year, compared to 13.2 percent the same period last year. Rents also increased to $37.77 per square foot from $36.99 per square foot in 2017. Rent growth will be capped for properties north of the Miami River due to high vacancies in downtown Miami, according to the report.

During the first quarter, net absorption totaled 40,355 square feet, marking only 0.1 percent of the total office stock in Miami-Dade County. About 123,000 square feet of office space was added with another 690,000 square feet that are under construction, according to the report. Office projects that will be completed this year include MiamiCentral, which will be delivered in June, Sunset Office Center in Coral Gables, Giralda Place in Coral Gables, Mary Street in Coconut Grove and Cube Wynwyd in Wynwood.

Broward

Overall vacancy, which includes sublet space, dropped to 12.5 percent in the first quarter compared to 14.4 percent a year ago in Broward County, according to JLL. The average rental rate rose to $31.45 per square foot, up from $28.75.

Newly signed leases in Broward include Spaces, a co-working concept from Regus that signed a 32,000-square-foot lease at Las Olas Square, and KEMET Corporation, which is relocating to 1 East Broward and expanding by more than 45,000 square feet.

Older buildouts are also falling out of favor. The penthouse at 450 East Las Olas has been vacant since Huizenga Holdings vacated the space a year ago. JLL said tenants are increasingly seeking concession packages, specifically tenant improvement expenses.

Palm Beach

Overall rents rose slightly in Palm Beach County – up 1.5 percent to $31.57 per square foot from $31.07 per square foot a year ago. The vacancy rate also fell to 14.7 percent from 15.6 percent.

In downtown West Palm Beach, where Class A trophy buildings are now more than 95 percent occupied, the overall average asking rent in the fourth quarter increased to $48.10 per square foot, nearly 10 percent higher than the $43.89 per-foot rent in the first quarter of last year.

JLL said suburban markets like Boca Raton North are stronger than the urban core thanks to large relocations and expansions. Shoes for Crews, for example, took nearly 35,000 square feet at the Boca Raton Innovation Campus, relocating from One Clearlake Center in West Palm Beach. Crocker Partners and Rialto Capital Management recently paid $179.3 million for the Boca Raton Innovation Campus, which was the biggest office sale in the tri-county region since 2016.


Source: The Real Deal

Coming soon: The Real Deal’s annual National Retail Market Report

Tuesday, April 17, 2018

The Real Deal’s annual insider’s look at what’s unfolding in retail markets across the country will be available in May 2018.

This year’s issue will include:

-A ranking of top retail brokerages
-An analysis of the shifting tenant mix in the biggest malls
-A deep dive into the future of retail REITs
-Comprehensive lists of the biggest retail leases and acquisitions
-Reporting on who the new “Teflon” retail tenants are

The issue will be distributed to all subscribers to our New York, South Florida and Southern California magazines, with bonus distribution in bins and at TRD’s booth at ICSC’s RECon 2018 in Las Vegas.

For advertising opportunities, please contact Advertising@TheRealDeal.com or call 212.260.1332.


Source: The Real Deal

Rockwood Capital buys investment firm’s stake in One Boca Place

Monday, April 16, 2018

One Boca Place and Rockwood’s Dwight Arnesen, senior managing director

Rockwood Capital purchased Wheelock Street Capital’s stake in a Boca Raton office complex for $93.5 million, according to data from Real Capital Analytics.

A joint venture between Crocker Partners and Wheelock paid about $76 million for One Boca Place, a 277,000-square-foot office building at 2255 West Glades Road in 2014. Rockwood acquired Wheelock’s interest in the property, according to Cushman & Wakefield, which declined to disclose a price.

The four-story building, built in 1986 on a 7.7-acre site, is about 89 percent occupied. Tenants include PNC Bank, CBIZ, Proskauer Rose, Regus and Raymond James. It was renovated in 2016, according to RCA.

Cushman’s Mike Davis, Dominic Montazemi, Scott O’Donnell, Rick Brugge, Michael Lerner and Greg Miller negotiated the recapitalization. Jason Hochman, Michael Ryan and Brian Linnihan, also of Cushman, helped arrange a floating rate loan for the new partnership.

Rockwood, with offices in New York, California and South Korea, owns a handful of properties in South Florida, including Modera Douglas Station, an apartment complex it developed and owns with Mill Creek Residential. Rockwood recently sold the Hall South Beach hotel to Spanish conglomerate Grup Peralada for $58.2 million.

Rockwood, Crocker Partners and Cushman could not immediately be reached for comment.


Source: The Real Deal

The late David Cassidy’s Fort Lauderdale home can be yours for $1,500 a night

Sunday, April 15, 2018

David Cassidy and 1600 South Ocean Drive in Fort Lauderdale (Credit: Nick Madigan)

The owners of the former Fort Lauderdale home of the late David Cassidy are marketing it as a short-term rental for $1,500 a night and up.

Cassidy, the singer of such hit songs as “I Think I Love You” and star of the popular 1970s sitcom The Partridge Family, died in November at age 67.

He owned a 7,000-square-foot house with six bedrooms at 1600 South Ocean Drive in Fort Lauderdale. Records show Cassidy paid $1.1 million for the property in 2001.

Two Maryland-based investors, Thomas White and Scott Watkins, bought the house in a 2015 auction after Cassidy filed for bankruptcy.

White told GossipExtra.com that he and Watkins are both in their 50s and “grew up with David Cassidy and the TV show.”

They are marketing Cassidy’s old house as a short-term rental called Casa de Mayan.

White said the property is an homage to Cassidy, filled with photos of the singer and TV star and furnished with his old cocktail bar and a desk where he wrote music. [GossipExtra.com] Mike Seemuth


Source: The Real Deal

Rentals near Orlando draw $22.15M of refinancing from Freddie Mac

Saturday, April 14, 2018

Charles Foschini

The owner of a 272-unit rental apartment complex north of Orlando refinanced the property with a $22.15 million Freddie Mac loan.

A company affiliated with Advenir Inc. got the seven-year loan with a 75 percent loan-to-value ratio and three years of interest-only payments through the South Florida office of Berkadia.

Freddie Mac originated the refinancing loan secured by the rental property northeast of Orlando in Fern Park, called Advenir at Magnolia.

Freddie Mac originated the loan through its Multifamily Green Advantage Program, which provides loans with discounted interest rates to owners who retrofit multifamily properties to save water and energy.

Three members of Berkadia’s South Florida office secured the loan on behalf of Advenir: Charles Foschini, senior managing director; Christopher Apone, managing director, and Lourdes Carranza-Alvaraz, a senior analyst.

The green loan programs at Freddie Mac and Fannie Mae “can shave 10 to 30 basis points off of the loan,” Forschini said in a prepared statement. “We expect to see more owners getting off the sidelines and refinancing or buying in 2018 to get ahead of further [interest] rate increases.”

Built in 1973, Advenir at Magnolia is a garden-style complex of 20 two-story buildings with one-bedroom, two-bedroom and studio apartments. Each apartment has a private balcony or patio, a walk-in closet and hookups for washing machines and dryers.

The property’s common-area amenities include a tennis court, a gym, a dog park, two swimming pools, two basketball courts and three racquetball courts.– Mike Seemuth


Source: The Real Deal

Spring reading: Check out The Real Deal South Florida’s latest issue

Friday, April 13, 2018

If you haven’t already, check out our spring issue of The Real Deal South Florida.

Featuring the most important real estate stories, news and analysis affecting the South Florida real estate market, The Real Deal South Florida is a must-read for both those in the industry and those servicing it.

Highlights of this issue include:

· Charting what developers are planning for the next real estate cycle
· Exploring how Bitcoin could impact the South Florida real estate scene
· Ranking the top brokers of Miami-Dade county

For advertising space in our Summer 2018 issue or other opportunities, please contact us at Advertising@The RealDeal.com.


Source: The Real Deal

Oil chief buys office building next to JFK Medical Center in West Palm

Thursday, April 12, 2018

2051 & 2151 45th Street and Augustus C. Miller (Credit: SF Partners and Smithsonian Libraries)

A medical office building next to the north campus of the JFK Medical Center in West Palm Beach just traded hands for $9.5 million, property records show.

SF Partners sold the 73,500-square-foot medical center at 2051 and 2151 45th Street to Augustus C. Miller, who heads the fuel distribution company Miller Oil. The trade breaks down to about $130 per square foot.

Records show SF Partners, a Miami-based real estate development and management firm, paid $7.8 million for the building in February 2016 – meaning it sold for a roughly 18 percent gain in two years. The building sits on about 3 acres of land, just north of the intersection of 45th Street and Congress Avenue, near downtown West Palm Beach. Tenants include a mix of physicians, therapists and other medical services.

SF Partners owns a mix of commercial properties throughout Florida and Georgia, according its website.

Late last year a similar medical office building next to the main campus of the JFK Medical Center in Atlantis traded hands for $11.25 million.

Miller Oil is headquartered in Norfolk, Virginia. The Millers have homes in Virginia Beach, Washington, D.C., and Palm Beach, according to published reports.


Source: The Real Deal

Soaring home prices forcing buyers to dig even deeper

Wednesday, April 11, 2018

(Credit: Getty Images)

Homebuyers already strained financially are being forced to dig deeper into their hip-pockets, with an increasing number of borrowers forking out almost half of their paycheck to cover mortgage payments.

New data shows that around one in five conventional mortgages granted to American homebuyers over the past winter went to borrowers who spent 45 percent of their incomes on payments, the Wall Street Journal reported. This figure has tripled since 2016 and the first half of 2017, according to data by CoreLogic.

The current climate is a result of a hike in home prices compared to incomes and a historic undersupply of homes, the Journal reported.

Using 30-year mortgage financing data provided by Freddie Mac and Fannie Mae, CoreLogic found that 73 percent more of these loans were issued in the second half of 2017 than the first.

The finding comes amid record high mortgage rates, which rose to 4.46 percent for 30-year fixed-rate mortgages in March, the highest in four years, and as of last week sat at 4 percent [WSJ]David Jeans


Source: The Real Deal

Newgard completes the Gale Residences in Fort Lauderdale Beach

Tuesday, April 10, 2018

The Gale Residences and Harvey Hernandez

Newgard Development Group recently completed the Gale Residences Fort Lauderdale Beach and is expecting the hotel component to open by the end of this year.

Newgard CEO Harvey Hernandez is projecting the sellout will be nearly $100 million once closings are completed. The 129-unit project at 401 Bayshore Drive secured its temporary certificate of occupancy late last month.

The developer partnered with Dev Motwani’s Merrimac Ventures on the Gale. The residential portion includes a 12-story building with 122 one-, two- and three-bedroom units ranging from 800 square feet to 2,100 square feet; and seven two-story beach homes. Amenities include a residents-only pool, gym, club room, movie theater, valet and electric car-charging stations, according to a release.

The 96-room hotel is in the adjacent, historic building that once housed the Escape Hotel. Menin Hospitality will manage the property. Newgard closed on a $19 million construction loan for the hotel earlier this year.

Owners of the condos will be able to rent their units out through the hotel, Hernandez said. Prices ranged from the $450,000s to $1.4 million. The project launched sales in early 2015.

Hernandez is now focusing on multifamily development. He’s partnering with Airbnb to bring the first Airbnb-branded apartment building in the U.S. to Orlando, with plans for more in South Florida and the Southeast.


Source: The Real Deal

Billy Joel sells waterfront Manalapan property

Monday, April 9, 2018

Billy Joel and 1940 South Ocean Boulevard (Credit: Flickr)

He’s got a way with real estate.

Singer-songwriter Billy Joel just sold a vacant lot next to his Manalapan mansion for $7.5 million, property records show.

South Ocean Living LLC sold the nearly 2-acre property at 1940 South Ocean Boulevard to UM RE Holdings LLC, a company owned by Frances Mennella. The seller is managed by Wellington attorney Frank Gonzalez, who has represented Joel in the past.

Early last year, Joel relisted his estate next door at 1920 South Ocean Boulevard for $18.5 million and the lot that just sold for $9.5 million. He paid about $18.3 million for the properties in 2014.

The Piano Man reduced the price for the mansion to $16.9 million, according to Redfin. It’s on the market with Pascal Liguori and William Koch of Premier Estate Properties.

In February, Joel and his wife Alexis Roderick bought a horse ranch in Wellington for $3.5 million.

Mennella, the buyer of the Manalapan lot, leads a natural gas distribution company in Pennsylvania, according to Virtual Globetrotters, a website that tracks celebrity homes. In 2016, he and his wife paid $25.2 million for a waterfront spec mansion at 1400 South Ocean Boulevard.

The Palm Beach Daily News first reported the sale.


Source: The Real Deal