Month: May 2020

Miami-Dade County’s Industrial Market Sees Healthy Activity Amid COVID-19 Headwinds

The Miami-Dade industrial market saw a prolific year in 2019, followed by a healthy, yet slower first quarter in 2020. PortMiami’s record-shattering fiscal year 2019, with cargo operations posting 1.1 million twenty-foot equivalent units (TEUs) and cruise passengers totaling a world’s best 6.8 million passenger total, correlated with the robust warehouse and…

Could COVID-19 Benefit the Industrial Real Estate Market?

There is no doubt COVID-19 will negatively affect many sectors of the real estate market, but not all industries will be impacted in the same way. Industrial real estate, in particular, may actually benefit from the current crisis. CBRE Group (NYSE: CBRE) published a market update on April 8, 2020, specifically relating to the impact of COVID-19 on the industrial…

Warehouse Prices Jump 5%, Supply Expected to Exceed Demand Post-COVID-19 [Report]

The CBRE 2020 Real Estate Market Outlook Report examines the current state of U.S. commercial real estate, outlining the many possible challenges and opportunities the industry could face throughout 2020. Authored in late 2019 before the economic impacts of the COVID-19 crisis began to bite, the report predicts an increased focus on outsourcing and significant growth…

Construction industry looks for solid ground

In the best of times, construction is a complicated business. Labor problems, demanding developers, financing issues, bad weather — any number of things can disrupt a project. Now add a global pandemic, government-ordered shutdowns and a collapsing economy. In New York, the epicenter of the coronavirus pandemic in the U.S., changes to…

“There’s a lot of concern about going back to an office”: how companies are returning to work in South Florida

At Zyscovich Architects’ headquarters in downtown Miami, returning to work will be a little different. Guided by arrows, employees and guests will enter the office one way, and exit another. Packages will be rerouted to a room on a separate floor to be unpacked and disinfected. And workers will be encouraged to eat their lunches at their desks. Like going to a restaurant or entering a residential building, going to work after two months of…

Czech billionaire who bought Macy’s stake just acquired 6% of Foot Locker

Daniel Kretinsky’s shopping spree continues, this time at Foot Locker. Earlier this month, the Czech investor bought a 5-percent stake in Macy’s department store and now he’s added a 6-percent stake in Foot Locker, Bloomberg reported. Kretinsky’s bet on the shoe company is valued at about $169 million. The 44-year-old billionaire — known as the “Czech sphinx” because of his inscrutable demeanor &md…

Hotel occupancy is up for fifth week in a row

Hotel occupancy increased for the fifth week in a row, though the industry remains in a deep rut. U.S. hotels saw nearly 11 million room nights during the week ending May 16, bringing occupancy up a little more than two percentage points from 32.4 percent the week prior, according to the latest figures from hospitality data firm STR. Still, occupancy was down roughly 54 percent from the same time last year. STR senior vice president Jan Freitag called the improving weekly number…

How Blackstone plans to keep its upper hand in the downturn

Seated in the New York State Capitol’s Red Room, Gov. Andrew Cuomo introduced the team that would restart the state’s economy. He knew them well. “In some ways it’s like putting the band back together,” Cuomo said in late March, introducing Bill Mulrow, a senior executive at the Blackstone Group, and Steve Cohen, executive vic…

Major housing development on US 1 advances

The vastly changed area of Bird Road and US 1 in Miami is getting another major mixed-use residential development. Called Shoma Douglas, the multi-family rental project was reviewed May 12 during a special virtual meeting of the city’s Urban Development Review Board, with board members and city staff participating through video conferencing. The board recommended approval with a few recommendations. Masmar Investments LLC is the applicant and plans the large project on property at 3650 Bir…

Paycheck Protection Program loans require smart steps by recipients

Banks issuing loans to businesses in need of aid during the pandemic are still awaiting more details on forgiveness. In the meantime, they’re taking smart steps to make matters easy once those Paycheck Protection Program (PPP) loans come due and are encouraging borrowers to do the same. That starts with tidy bookkeeping, said Chris Cruzpino, market executive for the Miami-Dade market for Regions, who recommends borrowers maintain a thorough paper trail. “Keep detailed records on how …

SeaVee Boats build new factory at right time

SeaVee Boats’ move to a new 220,000-square-foot production hub in Medley in December is helping the custom boat maker navigate the Covid-19 crisis, says Sales and Marketing Director John Caballero. The new site, which replaces three smaller South Florida facilities that SeaVee had previously operated, was built by T.A. Builders in just under 18 months. Mr. Caballero said the new hub’s increased functionality has been essential in getting…

Alex Sapir wants to take his firm private. This could be the right time

Alex Sapir has another chance to do something he failed to pull off three years ago — seize greater control of his eponymous real estate investment firm by buying out its outstanding shares and going private. In the middle of a pandemic that has slammed stock prices on the Tel Aviv Stock Exchange, where the firm is listed, may be just the right time. An LLC controlled by Alex Sapir is offering to buy up about 5 million share…

Game point: Lacoste USA is restructuring, renegotiating retail leases

A nearly 90-year-old French sportswear label is calling the game for its American retail business. Earlier this month, Lacoste USA’s chief financial officer Karine Sansot-Vincent sent a letter to its landlords announcing that it would seek to renegotiate leases as reducing costs would be “vital” to its “ability to be a viable company in the future.” The letter, seen by The Real…

Major restaurants and cafes seek rent cuts, irking landlords

Even as the economy begins to reopen, many restaurant and cafe tenants like Chipotle and Starbucks are requesting rent reductions amid projected declines in revenue. (Photos by Roy Rochlin/Getty Images and Alex Tai/SOPA Images/LightRocket via Getty Images) As coronavirus closed stores across the country in March and April, many landlords proved willing to work with tenants and defer rent payments to a later date. Reducing rent outright, however, is another story. According to accounting rules, d…

Cast away: Pier 1 to liquidate assets, shutter business

Pier 1 Imports’ plan to sell the home decor company has turned into a plan to shut down, becoming the latest retail casualty of the coronavirus pandemic. The chain has filed a motion seeking approval from a bankruptcy court to start winding down its retail operations as soon as possible once its 540 remaining stores nationwide are allowed to reopen.

Pier 1 wants to close all its stores for good

The final nail is being driven in Pier 1’s wicker casket: It’s on the verge of completely shutting down three months after it filed for bankruptcy. Pier 1 announced Tuesday that it’s asking the bankruptcy court to cease its retail operations “as soon as reasonably possible.” It blames temporary store closures caused by coronavirus and failing to find a buyer for the drastic…

Zaragon pays $8 mil for industrial property near Hialeah

Zaragon purchased an industrial facility near Hialeah leased to RAM Steel Framing for $7.55 million, as industrial demand remains strong even during the coronavirus pandemic. The Chicago-based real estate firm bought the 105,000-square-foot industrial building at 7400 Northwest 37th Avenue in Miami for $71.90 per square foot…

Video: COVID-19 Effects on Downtown Miami Discussed in DDA Executive Committee ZOOM Meeting

In this Miami DDA Executive Committee meeting of May 15th, 2020, as one might imagine the talk is COVID-19 this and coronavirus that, and how it is expected effects on downtown Miami and the Miami DDA organization itself. The Executive Committee of the Miami DDA (Downtown Development Authority) guides the Miami DDA’s efforts to fulfill its mission to grow…

Report: Warehouse Prices Jump 5%, Supply Expected To Exceed Demand Post-COVID-19

The CBRE 2020 Real Estate Market Outlook Report examines the current state of U.S. commercial real estate, outlining the many possible challenges and opportunities the industry could face throughout 2020. Authored in late 2019 before the economic impacts of the COVID-19 crisis began to bite, the report predicts an increased focus on outsourcing and significant growth…

Reservations only: Salons, restaurants adapt to new normal in South Florida

When The Spot Barbershop restarted online reservations Friday night, more than 500 people tried to book appointments, crashing the site. The local barbershop chain with 15 locations in Miami-Dade and Broward counties is among thousands of businesses reopening their doors beginning on Monday, after being closed for roughly two months due to the…

Jeffrey Soffer’s $800M Diplomat resort purchase called off

Jeffrey Soffer’s planned purchase of Brookfield Property Partners’ 1,000-room Diplomat Beach Resort Hollywood is called off, as hoteliers nationwide reel from the impact of the coronavirus pandemic. Brookfield reported in its first quarter earnings filing that its sale agreement was “terminated by the third-party purchaser.” Soffer’s Aventura-based…

J.C. Penney to close 242 stores in bankruptcy restructuring

Department store J.C. Penney announced Monday it plans to close 242 stores across the country as part of its bankruptcy restructuring. The 118-year-old company filed for bankruptcy Friday. The stores to be closed comprise about 30 percent of J.C. Penney locations and will leave it with just over 600 stores nationwide, according to the New York Times. While the…

Mystery investor dumps big stake in real estate fund

As stocks tumbled last week, an unknown institution sold more than 10.5 million shares of an exchanged-traded fund that tracks the S&P 500’s real estate sector. The $333 million securities dump represented 7.4 percent of outstanding shares of the Real Estate Select Sector SPDR Fund, a macro indicator of the industry’s largest…

April’s 16.4% drop in retail sales is worst on record

The numbers are in for last month’s retail sales and they aren’t pretty. Despite an increase in online purchases, total sales fell 16.4 percent in April — the largest monthly drop ever recorded, the New York Times reported, citing the latest report from the U.S. Department of Commerce. The amount of money spent was the lowest it’d been since 2012, even without…

Harvey Hernandez sued over delinquent loan for downtown Miami condo project

Harvey Hernandez, Centro Condo Miami developer Harvey Hernandez is facing another lawsuit — this time alleging his company is delinquent in payments on his downtown Miami condo tower. The lender is suing Hernandez, after his company allegedly defaulted on a $2 million loan for the Centro tower. The owner of the loan is now seeking to foreclose on…

Almost 90% of renters have made payments in May: report

A new study found that almost nine in 10 households have paid at least some rent in May (Credit: iStock) Nearly 9 in 10 apartment households had paid at least some May rent as of Wednesday, according to the National Multifamily Housing Council. Through May 13, the organization said, 88 percent of the 11.4 million market-rate rental properties it tracks had…

Realterm Logistics Buys Cold Storage Warehouse in Miami

In the midst of the current pandemic, cold storage buildings totaling 157,000 square feet at 12401, 12701, 12725 NW 38 Avenue on 12.5 Acres in Opa-Locka, Florida have sold for $26,000,000. Stephen M. Greene, seller, held the single member LLCs of the parcels. The buyer was Realterm Logistics. In 1966, Don Greene and son Stephen Greene formed Don…

Notable Retail Leases Signed in South Florida Q1 2020

South Florida Retail Leases 2020: We’ve compiled a comprehensive list of the top retail leases signed by square footage in South Florida during Q1 2020. This quarter was busy overall, especially considering the current pandemic, and saw several big box leases signed and sealed. Despite the sentiment that the traditional retail market is suffering due…

Pandemic kills some retailers, but others could reboot

E-commerce has been gobbling up market share from brick-and-mortar retailers for years and the coronavirus pandemic is accelerating it. UBS estimates that 100,000 stores will close in the next five years and that e-commerce will grow to 25 percent of sales this year from 15 percent in 2019, according to the Wall Street Journal. Meanwhile, the U.S. gov…

Mast Capital wants to build a 290-foot tall Miami Beach condo tower

Mast Capital CEO Camilo Miguel Jr. wants to build a 290-foot tall condo project near the Julia Tuttle Causeway in mid-Miami Beach. And despite apprehension from some city officials, the proposal is moving forward. The Miami Beach City Commission on Wednesday agreed to transmit Mast Capital’s request for additional height and other zoning variances to…

Holding pattern: Unemployment claims dip to eight-week “low”

The number of weekly unemployment claims dipped below 3 million last week, for the first time since the beginning of the current economic crisis.  Unemployment claims totaled 2.98 million last week. That’s the good news. It was the first dip below 3 million since mid-March, when claims numbered a mere 282,000 (and represented a jump at the time from…

Hotel occupancy inches up in major US cities

It may not be saying much, but hotel fundamentals are up in some major U.S. cities. Overall, hotel occupancy in the U.S. has been improving since early April and last week hit 30.1 percent, up from 28.6 percent the week prior, according to the latest data from STR. STR’s Jan Freitag said that Transportation Security Administration checkpoint counts show that…

Triarch Capital scores $35M refinancing for One Turnberry Place

9495 Biscayne Boulevard, CBRE’s Paul Ahmed and Mackenzie Fry Triarch Capital Group scored a $35 million loan to refinance One Turnberry Place in Aventura. Triarch Capital secured the loan for the office building at 19495 Biscayne Boulevard, in front of Aventura Mall from Nationwide Life Insurance, according to a spokesperson for CBRE. CBRE’s Paul Ahmed and…

Triarch Capital Lands $35M Refi for Aventura Asset

Triarch Capital Group has received $35 million in refinancing for One Turnberry Place, a 137,000-square-foot office building in Aventura, Fla. According to Yardi Matrix data, Nationwide provided the 10-year loan that retires a previous $35 million mortgage from Column Financial Bank. Triarch Capital purchased the Class A asset for $53 million in 2011.

Developer of Aman-branded towers in Miami Beach scores $35M loan

Billionaire Len Blavatnik’s Access Industries closed on a loan for the first Aman-branded development in South Florida. The developer, 3425 Collins LLC, secured $34.8 million in financing from Bank OZK for the site of the former Versailles Hotel… and fellow billionaire Vlad Doronin plan to build a two-tower hotel and branded condo project at 3425 Collins Avenue…

“Czech sphinx” makes big bet on Macy’s

Czech billionaire Daniel Kretinsky has acquired a 5-percent stake in Macy’s, with plans to work with management to turn around the struggling retailer as it prepares to reopen its stores. Kretinsky, who has a net worth of about $3.4 billion and recovered from a coronavirus infection in March, is known as “Czech sphinx” for…

Retail rent collection plunges to 58% in April

If retail landlords opened a Tenant Hall of Shame right now, they might begin by inducting Supercuts, Barnes & Noble, Red Robin, General Nutrition Centers, Gap, H&M, Foot Locker and Men’s Warehouse. Those big names were among the 21 percent of the 135 major chains paying no rent or a small fraction of it in April, according to a new report. Overall, national…

Marc Shulman sells Normandy Isles multifamily to French family office

Investor Marc Shulman sold a Miami Beach apartment building in Normandy Isles to a family office from France for $9.25 million, according to agents involved in the deal. Shulman’s Duval Apartments LLC sold the 49-unit building at 2101 Normandy Drive to Alston LLC, a company led by Riad Belarbi. The deal closed last week, said Samuel Heskiel of Beachfront…

Miami Industrial Sale-Leaseback Spearheaded

The buyer financed the purchase with a $5.7 million loan from CIBC Bank, according to public records. The note matures in 2027 and carries two one-year extension options. RAM Steel Framing will continue to occupy its headquarters on a long-term, absolute triple-net lease. Located on 3 acres at 7400 NW 37th Avenue, the single-story warehouse was completed in 1955…

Florida, Tribes Among The Latest To Get Federal OK For Hemp Production

The Miccosukee Tribe of Indians, which controls more than 270,000 acres in and around the Florida Everglades, has won a key approval from the U.S. Department of Agriculture that opens the door to hemp production on tribal lands.Hemp was traditionally used to make rope, sails, flags, oils and foods. But it is derived from cannabis, the same plant as marijuana, and…

Coral Gables developer Masoud Shojaee and daughters locked in dispute over rock mining rent

Masoud Shojaee Father’s Day could be awkward for Masoud Shojaee, as he finds himself in a legal tussle with a trust benefiting his daughters. M&M Life Insurance Trust is suing the Coral Gables-based developer over a lucrative family business that leases land in the western fringes of Miami-Dade County to rock miners and farmers, according to a recently filed…

Trust CEO: Hotel Operators Not ‘Receiving Any Income For The Remainder Of Year Of Any Kind’

Trust Hospitality CEO Richard Millard said the coronavirus has eliminated his company’s revenue. Trust operates 31 boutique hotels, and as an operator, he said 2021 might be the next time his company takes in revenue. “I don’t see most of us that operate hotels, certainly as a pure operator, are receiving any income for the remainder of the year of any kind,” he said…

Miami Commercial Real Estate Sales to List Price Ratio Holds Up in April ~ MLS Chart

Miami Association of Realtors Jan 2015 to Apr 2020 Property Types  ‘Commercial, Industrial’ and ‘Land-Commercial, Business, Agricultural, Industrial’, Sales to List Price Ration Calculated from 15,543 Listings. Granted, one month does not a recession make. However it is worth noting that commercial properties traded at…

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In this Miami DDA Executive Committee meeting of May 15th, 2020, as one might imagine the talk is COVID-19 this and coronavirus that, and how it is expected effects on downtown Miami and the Miami DDA organization itself. The Executive Committee of the Miami DDA (Downtown Development Authority) guides the Miami DDA’s efforts to fulfill its mission to grow, strengthen, and promote the economic health and vitality of the Downtown Miami area. Meetings are open to the public and generally held on the third Friday of every month at 9:00 in the morning. Visit their calendar at MiamiDDA.com for a complete schedule of Miami DDA Board of Directors and Committee meetings.

Granted, one month does not a recession make. However it is worth noting that commercial properties traded at a somewhat normal price in relation to listing price in COVID-19 troubled the month of April, as can be seek in the chart above. Sure, this ratio is lower that the prior month, but only a bit, in a way that looks like a normal fluctuation, and in any case still well above lows set in prior years. Note this is for all sales in MLS entered as improved or commercial land, dubbed ‘Commercial/Industrial’ and ‘Land-Commercial/Business/Agricultural/Industrial’ in that system. Surely much of the effect of coronavirus pandemic is visible in reduces volume of sales, with everyone for the moment in a “deer in headlights” state. What this does represent, however, is that sellers were not dropping prices in April sufficiently for it to nudge this data. Where we go from here is the trillion dollar question.

636-Unit Self-Storage Property in Miami Trades

JLL has arranged the sale of 21st Century Self Storage, a 636-unit facility in Miami. The 37,242-square-foot asset features climate-controlled units and 26 parking spaces. The building was originally constructed in the 1950s and was converted to self-storage in 2003. The building is located at 200 NW 79th Street eight miles north of downtown Miami. Steve Mellon…

Compass Self Storage Expands Miami Footprint

Self storage company 21st Century has finalized the disposition of a 37,242-square-foot property in Miami. Amsdell Cos., operating under its Compass Self Storage brand, acquired the property for $7.2 million, according to Yardi Matrix. JLL Capital Markets negotiated the transaction on behalf of the seller. As part of the deal, the new owner assumed an existing $5.2…

Miami Developers Tweaking Plans To Include Less Retail, Bigger Offices

Businesses and individuals have started to see some relief to get them through the coronavirus, but “there’s only so much the government can do,” said Deco Capital founder Bradley Colmer during a Bisnow webinar Wednesday. “There’s going to be sectors that are going to be [an] absolute bloodbath.” “Thankfully, we sold some of our retail holdings,” Colmer…

Hotel occupancy inches up in major US cities

It may not be saying much, but hotel fundamentals are up in some major U.S. cities. Overall, hotel occupancy in the U.S. has been improving since early April and last week hit 30.1 percent, up from 28.6 percent the week prior, according to the latest data from STR. STR’s Jan Freitag said that Transportation Security Administration checkpoint counts show that…

Report: Industrial Looks Like a Smart Play in the Current Environment

As national stay-at-home orders have shifted much of the economy toward a delivery model, the negative implications have been broadly felt, extending in the commercial real estate arena. However, Marcus & Millichap says industrial appears to be an exception to the rule. “Offices, restaurants, hotels and most other retailers have been forced to close…

Wynwood Site Claimed, Mixed Use Development Envisioned

A former medical manufacturing facility on a combined 2.27-acre assemblage in Miami’s vibrant Wynwood Arts District traded hands for $18.5 million… T6-8 and allows for higher density mixed-use development. The… sites included in the sale are at 2141–2127–2115 N Miami Avenue, 2150–2160 N Miami Avenue, 38 NW 22nd Street, and 2155 NW Miami Court.

Related Group pays $19M for Wynwood development site

The Related Group closed on a development site in Wynwood for $18.5 million. PRH Investments LLC, an affiliate of Miami-based Related, acquired a 2.27-acre assemblage of land at North Miami Avenue and Northwest 22nd Street, according to a press release from Cushman & Wakefield. The site is zoned T6-8, which allows for eight stories of mixed-use development.

Miami-Dade outlines proposed reopening plan to start Monday, but it’s far from a return to normal

Miami-Dade County Mayor Carlos Gimenez released a 184-page guide for reopening, with the first businesses opening their doors on Monday, pending approval from the governor’s office. The color-coded guide outlines proposed rules for retail, office buildings, shopping centers, trade and logistics, restaurants and hotels, as well as other businesses. The county’s…

Turbulence ahead as Covid-19 stimulus aid keeps rents afloat in SoFla CRE

Stimulus aid to small businesses has kept commercial landlords afloat since the coronavirus pandemic shut down most aspects of everyday life in South Florida. Yet, the future landscape remains uncertain amid an impending recession, according to brokers, bankers and lawyers. “So much stimulus money is backing up tenants,” said Lloyd Berger, president of Fort…

Miami’s Trendy Wynwood District Thrives On Small Business. How Can It Survive Coronavirus?

Daniel Levine stepped outside of his Wynwood ice cream shop, Dasher & Crank, this week to look at the neighborhood. “It’s an absolute ghost town,” he said. “I don’t see a single person around.” Sweet Spot, a candy shop that had opened just a few months ago, was gone. There was brown paper covering the windows at Laid Fresh. A gelato place was dark, as was every…

Rieber Developments Breaks Ground on 10-Story Mixed-Use Project in Aventura

Rieber Developments has broken ground on 12|12 Aventura, a 10-story mixed-use project featuring medical office, luxury senior residences and a food hall. The property is situated in Aventura, approximately 20 miles north of Miami. Arquitectonica designed the development, which will include a 30,000-square-foot gourmet marketplace and food hall, 25,000…

Project in Aventura Health District Breaks Ground During Pandemic

The developer of a 10-story mixed-use project in Aventura is breaking ground despite the coronavirus pandemic. 12|12 Aventura will include a 30K SF food hall, 25K SF of mostly medical offices and 160 luxury residential units for seniors. The offices are broken into 30 condos, 40% of which are already sold, developer Rieber Developments said. The…

Triarch Capital scores $35M refinancing for One Turnberry Place

Triarch Capital Group scored a $35 million loan to refinance One Turnberry Place in Aventura. Triarch Capital secured the loan for the office building at 19495 Biscayne Boulevard, in front of Aventura Mall from Nationwide Life Insurance, according to a spokesperson for CBRE. CBRE’s Paul Ahmed and Mackenzie Fry represented Triarch Capital Group in the deal, according to…

Here’s when Miami Beach is proposing to reopen non-essential businesses

The city of Miami Beach is proposing to allow non-essential businesses to reopen on Wednesday, May 20, two days after Miami-Dade County is considering entering the first phase of reopening. In the proposed phase 1A, 761 Miami Beach businesses could reopen in one week. That would include 602 retail stores, 18 museums, and 141 hair and nail salons and barber…

Small landlords call for rent relief package, fearing Wall Street takeover

Small landlords, such as Jan Lee, a New York landlord who owns two buildings, say Wall Street players will take their place unless rent relief comes soon. Calls for the government to bail out the rental housing market are getting louder, and they’re not just coming from tenants. As financial…

PortMiami working to redrawn agreements with multi-billion impact

Two months after cruise lines ceased operations worldwide, the “Cruise Capital of the World” and its industry partners are in talks to redraw details in their long-term agreements to adjust to post-coronavirus expectations. How those talks will affect four massive terminal deals PortMiami struck with Carnival Cruise Line, MSC Cruises, Norwegian Cruise Line and…

Coconut Grove Playhouse case heads to June hearing

The future of the Coconut Grove Playhouse remains in the hands of the Appellate Division of the 11th Judicial Circuit Court with a hearing set for June 16 – if the pandemic permits.  With building permits and drawings set to begin construction at the playhouse property at 3500 Main Hwy., Miami-Dade County Department of Cultural Affairs Director Michael Spring…

Rolando Aedo: Preparing new Miami Shines campaign to rebuild tourism

South Florida was still reeling from Hurricane Andrew when Rolando Aedo began working with the Greater Miami Convention & Visitors Bureau, the region’s nonprofit promotional arm for hospitality and tourism. His role, developing a recovery marketing campaign to reattract interest here, was meant to be temporary. Twenty-six years later, he’s served in several…

Miami-Dade, Broward reopening expected May 18

Broward County is expected to start reopening May 18, along with Miami-Dade County, according to multiple news reports. Broward Mayor Dale Holness had a conference call on Monday with city mayors and there seemed to be consensus that May 18 would be targeted. “The sentiment is that, whether or not Miami goes on the 18th, we will go on the 18th…”

Mall free fall: Macerich collects just 26% of April rent payments

We know it is a bad time to own malls, but retail landlord Macerich’s Tuesday earnings call highlighted how dire matters are. Tom O’Hern, CEO of the Santa Monica retail real estate investment trust, reported that the company “collected about 26 percent of rent” from tenants at the 47 shopping centers Macerich owns throughout the country, malls replete…

WATCH: Sandeep Mathrani says WeWork paid 80% of its rent

As WeWork makes headlines for rental woes, disputes with members and co-founder Adam Neumann’s SoftBank feud, Sandeep Mathrani sought to assuage concerns in his first TV appearance since becoming CEO. The office-space giant paid rent at 80 percent of its locations in April and May and collected rent from 70 percent of its members, Mathrani said on CNBC’s…

North Miami Beach apartment project nabs $71M refinancing

A development group led by Eden Multifamily scored $71.3 million in refinancing for an apartment building in North Miami Beach. North MB Owner, consisting of Eden Multifamily, Florida Value Partners, and Hunt Companies, secured the loan for the 356-unit Lazul Apartments at 2145 Northeast 164th Street. Hunt Real Estate Capital provided the financing…

Hunt Real Estate Capital Provides $71.3M Refinancing Loan for New Multifamily Property in Metro Miami

Hunt Real Estate Capital has provided a $71.3 million Freddie Mac refinancing loan for Lazul Apartments, a 365-unit multifamily community in North Miami Beach. The 11-year, nonrecourse loan features a fixed interest rate in the 3 to 3.5 percent range, a 30-year amortization schedule and interest-only payments for the full term. The borrower, a limited…

Hunt Real Estate Capital Provides $71M Refi for Miami Beach Rental Property

A joint venture partnership between EDEN Multifamily, Hunt Companies and Florida Value Partners has nabbed $71.3 million in Freddie Mac-backed debt from Hunt Real Estate Capital to refinance the Lazul Apartments in North Miami Beach, Fla., according to information released by Hunt. The 11-year, fixed-rate and interest-only loan from Freddie’s pre-stabilization…

JV Secures $71M Refi for Miami Beach Property

A partnership including borrower North MB Owner LLC, EDEN Multifamily, Hunt Cos. Inc. and Florida Value Partners has secured a $71.3 million Freddie Mac conventional loan via the pre-stabilization program, for Lazul Apartments, a Class A, 356-unit, mid-rise community in North Miami Beach, Fla. The LLC arranged for modified zoning to allow retail to become…

Simon says malls will reopen but some states say otherwise

Simon Property Group’s plan to reopen several dozen malls across the U.S. has not gone as smoothly as expected. While more than three dozen states have partially reopened to business — or will be soon — some cities within those states remain under quarantine. Simon has postponed the opening of at least seven malls in New…

Developer of Aman-branded towers in Miami Beach scores $35M loan

Billionaire Len Blavatnik’s Access Industries closed on a loan for the first Aman-branded development in South Florida. The developer, 3425 Collins LLC, secured $34.8 million in financing from Bank OZK for the site of the former Versailles Hotel in Miami Beach, property records show. Blavatnik and fellow billionaire Vlad Doronin plan to build a two-tower hotel and…

Does COVID-18 Provide an Excuse for Non-Performance of a Contract?

The question of almost every party to a contract that remains to be fully performed is whether Covid-19 is an act of God that will excuse performance by the party who has yet to complete performance. The starting point in any such inquiry is the written agreement between the parties-assuming there is a written agreement. If there is no written…

Jimmy Resnick sells Alton Road retail building for $9 million

Miami Beach investor Jimmy Resnick sold a retail building on Alton Road for $9.25 million. Hibiscus Alton Inc. sold the 16,441-square-foot building at 955 Alton Road in South Beach to 955 Alton Road MIA LLC, property records show. The building was previously home to Coco Bambu, a Brazilian seafood restaurant that closed more than a year ago. Resnick bought…

WeWork’s rental woes slam CMBS market

WeWork’s efforts to renegotiate several of its leases and skip rent payments is causing the price of bonds backed by payments from the company to plummet. Many WeWork tenants have requested rent relief or the termination of their contracts since the onset of the coronavirus pandemic, which has hurt the commercial mortgage-backed securities that rely on…

Coronavirus could set back the pro-density movement

The movement toward dense, transit-adjacent development picked up steam over the last few years, but the coronavirus pandemic might prove to be a big setback. The pandemic has forced a quick national pivot toward telecommuting, which some think could undercut the utility of living near transit, according to the New York Times. If you don’t need to go into…

Bars and music venues across America worry they’ll never reopen

The coronavirus pandemic has forced scores of small bars and clubs across the country to shut their doors and some owners fear they won’t open back up. Entertainment operators, both corporate-backed large companies like Live Nation and small independent proprietors, are feeling the crunch of the coronavirus pandemic. But many smaller outfits don’t have the…

Will insurers cover coronavirus-related business losses? We may soon find out

CNA Financial CEO Dino Robusto A business insurer’s position that it isn’t required to cover coronavirus-related losses is set to face a legal litmus test. A Las Vegas-based company with a CNA Financial’s subsidiary’s policy filed a class-action lawsuit against the company in a Chicago federal court on Monday, according to Crain’s. The company, Vegas Image, owns a…

Brookfield Property’s Q1 losses come as retail tenants miss payments

Brookfield Property Partners is now negotiating with 2,400 of its retail tenants across the country who have been unable to come up with the rent. That inability to pay has cut deeply into Brookfield’s bottom line. Its first quarter was dismal. The real estate wing of the Canadian giant Brookfield Asset Management had a net loss of $373 million from January through…

What April’s record-high unemployment means for real estate

Following an unprecedented 20.5 million drop in payroll last month, the April unemployment rate reached a record 14.7 percent, the U.S. Bureau of Labor Statistics reported Friday. That figure is the highest unemployment percentage on record, since seasonally adjusted data became available in 1948. The unemployment rate is estimated to have reached about 25…

“Unlawful” and “hypocritical”: WeWork members threaten legal action over fees

A group of WeWork members is threatening the co-working giant with legal action if it continues to collect fees even though the coronavirus has prevented them from using the space. In a letter to WeWork’s general counsel on Thursday, an attorney for the members said WeWork’s collection of fees was “unlawful” because state and local authorities have directed…

Virus will leave lasting impact on retailers and their landlords, industry pros say

The near-total shutdown of New York City shops and restaurants during the coronavirus crisis will likely be felt for years to come in the retail real estate world. In the short-term, landlords and tenants will have to come up with creative solutions to help commercial tenants back on their feet, according to some of the city’s top retail brokers who discussed the state of the…

Gov. DeSantis discussing next steps for South Florida

Gov. Ron DeSantis is in discussions with South Florida officials about the next step for the three counties, which were left out of the first phase of statewide reopening. At a press conference on Wednesday, the governor said officials were monitoring an easing last week that saw parks, marinas and golf courses reopen—“they want to see how that’s going.” There has…

Mana saves McArthur Dairy

After submitting a winning bid in bankruptcy court, investor Moishe Mana has closed on the $16.5 million sale of two McArthur dairy sites, including prime property in Little Haiti. The McArthur Dairy plant in Little Haiti Mana plans to build and expand the McArthur brand to have both dairy and non-dairy milk products, saving the company from total liquidation…

Russell Galbut’s Crescent Heights wants a rooftop movie theater at 1212 Lincoln project

Rendering of Rooftop Cinema Club at 1212 Lincoln and Russell Galbut Russell Galbut’s Crescent Heights wants to open an outdoor rooftop movie theater at its 1212 Lincoln Road project on Alton Road in Miami Beach. Miami Beach’s Land Use and Sustainability Committee on Wednesday moved to have the Miami Beach City Commission vote on a proposal…

What Sam Zell is offering renters to keep occupancy rates high

Sam Zell’s Equity Residential had a collection rate of about 97 percent for April despite widespread concerns that tenants would be unable or unwilling to pay their rent amid the pandemic, the company reported on its first quarter earnings call. Equity Residential held its call on Wednesday morning, and CEO Mark Parrell maintained that the company was…

Florida restarts plans for bridge at FIU, two years after deadly collapse

The Florida Department of Transportation will begin the design process for a pedestrian bridge at Florida International University, more than two years after the bridge’s fatal collapse. FDOT announced it would manage and oversee the new project for the intersection at Southwest Eighth Street and Southwest 109th Avenue in Sweetwater, connecting the city to FIU’s…

Resort-town hotels bounce back in reopening states, providing industry with hope of a return

Hotels bounced back last week at tourist destinations in states like Florida and Texas which have begun reopening — a sign that the industry could rebound once more states relax pandemic restrictions. Texas cities like Galveston and Corpus Christie led the boost in occupancy last week, alongside Florida destinations…

Even Sam Zell isn’t ready to dance on graves

The investor has made a fortune playing the distressed game. But even he’s on the sidelines for now. When the markets begin to melt, people usually look to see what Sam Zell is up to. The billionaire real estate investor made his fortune and reputation by acquiring distressed assets on the cheap and disposing of properties at the zenith of the market. He sold Blackstone…

The days of long-term retail leases may be over

As retailers and other businesses seek relief from landlords, one potential long-term fix to rent woes is on the horizon. Michael Phillips, who leads real estate investment manager Jamestown, told the Wall Street Journal that the days of reliance on standard long-term leases with fixed payments in retail are done.

Welcome back to your post-corona office. You probably won’t recognize it

Thermal cameras, bacteria-fighting HVAC systems and contactless coffee machines. Welcome back to the office – you may not recognize it. As New Yorkers gear up to go back to work, landlords are scrambling to cater to a totally different set of priorities. Over the past few years, office spaces have been designed to maximize social interaction. Now, however, minimizing…

Neiman Marcus Files For ‘Prepack’ Bankruptcy, Joining J Crew

Just three days ago, we reported that Neiman Marcus – aka “Needless Markups” – was on the cusp of striking a deal with creditors for financing that would help tide it over through bankruptcy. Well, it looks like the big day has finally arrived. Bloomberg reports that Neiman Marcus Group has officially entered into a Restructuring Support Agreement with a…

Hotels Are Being Impacted by COVID-19. What Can Owners and Lenders Do to Limit the Fallout?

COVID-19 is causing tangible disruption throughout the hotel industry. Daily decreases in travel and cancellations of meetings lead to quick drops in occupancy, followed by hotel pricing decreases (often irrational) that further exacerbate market jitters. A hotel market rate and occupancy shopping app, MSight, estimated downtown Los Angeles hotels had a…