Month: July 2020

Parkway, KKR Complete $10M Renovation of Brickell Miami Office Tower, Sign Three Retail Tenants

Parkway Real Estate Services LLC and joint venture partner KKR have completed their $10 million renovation of Sabadell Financial Center, a 30-story, 524,000-square-foot office tower at 1111 Brickell Avenue. The waterfront property overlooks Biscayne Bay. Parkway Real Estate and KKR acquired the property for $250 million in 2018 and immediately…

Airport Villas apartment complex near Miami International Airport Sold

The owner of Cervera Real Estate Ventures acquired two apartment buildings near Miami International Airport for $13.2 million, with plans to redevelop the site for a future development project. Javier Cervera Jr. purchased the two-building, 90-unit complex known as Airport Villas at 4325 to 4335 Northwest South Tamiami Canal Drive for $147,000 per unit…

Dezer Development Settles ‘Hostile Workplace’ Suit Brought By Former COO

Father and son developer duo Michael and Gil Dezer have settled the lawsuit the former chief operating officer of Dezer Development brought against them following contentious testimony. The undisclosed settlement between plaintiff Andrew Chesnick, who worked for Dezer Development from 2013 until 2015, and the Dezers was confirmed in front of Circuit…

Doctor’s orders: developers increasingly tap medical experts, amenities

Amid the coronavirus pandemic, wellness services at developments have expanded to include an array of medical amenities, and gone far beyond luxury residential projects. Crocker Partners, one of Florida’s biggest office landlords, even hired a doctor to fill a new role for the company: director of environmental health. By hiring Dr. Walter Okoroanyanwu, Boca Raton…

“We’re moving into this new normal”: Retail landlords are finally getting paid

After months of skipping out on rental obligations due to the coronavirus pandemic, retailers are getting closer to making their landlords whole. Over 72 percent of national chain retailers paid their July rent as of mid-July, according to the latest report by Datex Property Solutions. That’s up from 62 percent just a month ago. “We’re moving into this new normal…”

Pair of mixed-use towers due in Wynwood

On the eastern side of growing Wynwood a developer plans a large mixed-use residential project that will also bring in new commercial tenants. PRH CHO Dragon Wynwood LLC plans to build the pair of neighboring buildings at 2804, 2810, 2819, 2828, and 2838 NW First Avenue. The city’s Urban Development Review Board considered the project at a virtual meeting…

Property appraisers seek to help landowners with taxes

Florida’s elected property appraisers are collaborating to help property owners throughout the state pay their taxes amid the greatest economic and housing crisis in a decade, according to Miami-Dade Property Appraiser Pedro Garcia. With the cooperation of state legislators, who have shown “100%” willingness to discuss solutions, he said, relief for those struggling…

Brightline might bypass five new rail platforms

New commuter rail in Northeast Miami-Dade would have up to five new platforms along Florida East Coast Industries’ line between downtown and an upcoming Aventura station but FECI’s Brightline won’t necessarily stop at any of them, a company executive says.  After local government committed five years ago to bringing Tri-Rail downtown, FECI Senior…

Midrise housing due in Miami Health District

A developer plans to construct an elegant mid-rise multifamily residential building near the City of Miami’s Health District. Applicant Jesus Gonzalez Pereda presented plans for The Spot, to rise on a vacant lot at 1510 NW 16th Terrace. The project is designed as an 8-story building with 38 dwellings and parking for 43 vehicles. The city’s Urban Development Review Board…

Forget coulda woulda shoulda and hail South Dade transit

There’s good news and bad news for South Dade’s commuters. The good news is that after years of wishing and begging, they’re about to get new, fast, comfortable, reliable mass transit that could save them an hour or more every workday. The bad news is that the transit system’s name contains the word bus. That’s been the issue for years: a 20-mile transit…

Wynwood Business Improvement District used Zika model

Since the start of the pandemic, the Wynwood Business Improvement District has been ahead of the game by preparing its business members and stakeholders for what was to come.  The improvement district already had an operating model: after the outbreak of the Zika virus back in 2016, leaders devised a game plan for what to do in the event of another…

Austin Hollo: Helping to direct family-created Florida East Coast Realty

Here’s a bit of trivia every Miamian should know: What is the tallest skyscraper in Florida, as well as the loftiest residential building south of New York? The answer: Panorama Tower, an 85-story, 868-foot-high marvel in Brickell boasting 821 luxury apartments, hotel and office space, and other commercial accommodations. Austin Hollo, senior vice president…

Gap claims it doesn’t have to pay rent at any of Brookfield’s malls

Gap Inc. is firing back at landlord Brookfield Property Partners, a month after the latter sued the retailer for withholding rent. Five of Gap’s chains — Gap, Athleta, Banana Republic, Old Navy, and Janie & Jack — sued Brookfield affiliates, claiming that its obligations to pay rent ended when government restrictions forced the company to close stores across the…

Biden’s tax plan would “pull the rug out” from under the real estate industry: insiders

Joe Biden went after one of the real estate industry’s favorite tax benefits Tuesday when he proposed funding a child- and elderly-care spending platform by closing off a loophole used by property investors. The presumptive Democratic presidential nominee proposed eliminating 1031 “like-kind” exchanges for investors with annual incomes greater than…

Knotel seeks to raise $100M in a serious down round

Knotel is reportedly trying to raise $100 million in funding in a round that would significantly lower its valuation, as the co-working firm grapples with plunging revenues and mass layoffs. The company has been in talks with a European firm for the funding since the beginning of the year, according to Forbes. The new investment would be at terms that could…

Massa Investment buys Paris Theater in Miami Beach for $13 Million

Massa Investment Group bought the Paris Theater on Miami Beach at 555 Washington Avenue for $13 million. Miami-based Massa Investment Group, led by Mathieu Massa, bought the 25,589-square-foot building for $508 per square foot, records show. Big Time Productions, led by Eugene Rodriguez, sold the property. The building…

State-level GDP losses during the pandemic : Mapping the range of economic decline across the U.S.

FRED has the latest state-level GDP data for 2020, and there’s a range of economic decline across the United States. This GeoFRED map shows regional differences in how state economic growth has been affected by the COVID-19 outbreak—from 8% declines in Nevada and New York to a 1.3% slump in Nebraska. What determines how a state’s economy is affected?

Here’s how much Covid has crushed global RE investment

Global real estate investment was slammed over the first six months of the year, falling by a third compared to the same period last year. But amid the coronavirus-fueled hurricane a couple of sectors have been holding up, according to a new report from Savills, cited in Bloomberg. First the bad news: The Asia-Pacific region, where the virus first flared…

Downtown Fort Lauderdale dev site hits market for $12.5M

A development site sandwiched between Fort Lauderdale’s Flagler Village and the New River hit the market for $12.5 million. The property at 150 North Federal Highway includes a two-story 9,653-square-foot office building that was built in 1985. The site, near Virgin Trains USA’s Fort Lauderdale station, is listed with Native Realty founder and CEO Jaime…

COVID-19 South Florida Real Estate Market Segment

South Florida economic and real estate market fundamentals were very strong when the stay home orders took effect in March. Market performance in March and in the first quarter of 2020 exceeded that of the same period in 2019 despite the COVID-19 interruption. Positive factors such as negligible delinquencies, lack of a subprime mortgage crisis…

US sports teams carry on with real estate projects, 2020 season or not

One Cardinal Way Over the last several years, sports teams across the country have spent big money developing real estate around their stadiums with the goal to attract visitors — and their money — for more than just games. While the coronavirus pandemic has halted large spectator sports events across the world, sports franchise owners are staying the course…

Flexible leases, greater services: Covid accelerates shifts in office market

In the office market, the pandemic has proved the “great accelerator.” That’s according to Susan Freeman, a London-based partner in the real estate department at Mishcon de Reya, who joined Nelson Mills of Columbia Property Trust to discuss the future of office for a recent episode of TRD Talks Live. The executives said that in both the U.K. and U.S. markets…”

Integra, partners pick up waterfront dev site next to Jockey Club for $16 million

Integra Investments and two partners purchased an 8.2-acre waterfront development site just north of Miami Shores for $15.5 million. The Miami-based real estate firm, along with Andrew Korge of Korgeous Group and David Larson of DCL Capital, acquired the site at 11295 Biscayne Boulevard for $43 per square foot, according to a release. Jockey Segal LLC, led by…

Developer buys Miami Worldcenter site for mixed-use project

Miami Worldcenter’s developers sold a site at the megaproject for $18.85 million to Akara Partners, which plans to build a mixed-use project. Miami Worldcenter sold 36,273 square feet of developable land to the Chicago-based development group, and another 8,227 square feet of undevelopable land underneath the Metromover. The two pieces of land total 1 acre…

Bridge Investment wants to raise another $600 million for its Opportunity Zone funds

Bridge Investment Group said it plans to raise another $600 million through its Opportunity Zone funds between now and the end of this year. The company announced this week that it had already raised $1.3 billion through the funds since launching in October 2018 with a $500 million target. Most of that money has already been deployed to projects around…

Miami-Dade approves $35 million aid package for restaurants, employees

Miami-Dade County restaurants and employees in financial straits could see some additional help from the federal government. Miami-Dade County commissioners on Thursday approved a $35 million aid package for restaurants and their staff, which includes providing $500 checks for laid-off workers, according to the Miami Herald. The plan is to use about 7…

Co-living execs offer glimpse at occupancy rates

Before the pandemic, co-living executives were looking to capitalize on demand for shared, low-cost accommodation — specifically targeting young professionals in major cities. But now, with thousands of units in the pipeline, the pandemic has called the sector’s business model into question — and executives are predicting a tough 12 to 24 months, according…

Hotels’ comeback stalls nationally, skids in NYC and Miami

Hotels’ recovery appears to have stalled. From mid-April through June, occupancy rates climbed steadily following their historic coronavirus plunge. But they fell in the week ending July 4 and last week they were essentially flat, according to newly released data from industry tracker STR. Occupancy rose by 0.3 percentage points to 45.9 percent in the week…

Retail sales increased in June — but surge in infections could signal trouble ahead

Retail sales increased in the U.S. by 7.5 percent in June, exceeding expectations as stores across the country began to reopen. The total estimated value of the sales was $524.3 billion, statistics released Thursday by the Department of Commerce show. The figures follow a record 17.7 percent jump in May, and June’s dollar volume is the closest to January’s…

Coral Gables Adopts Emergency Order Expanding Temporary Use Permits Due to COVID-19

In recognition of the impacts of COVID-19 on the local economy, the Coral Gables City Commission recently tasked staff with finding additional creative ways to support businesses and encourage individuals to participate in the local economy. On Tuesday, July 14, 2020, the City Commission adopted an emergency ordinance adding a section to the…

Triple Five, Terra, Starwood sue Miami-Dade property appraiser over tax bills

Affiliates of megamall developer Triple Five, along with Terra and Starwood Capital Group are crying foul over property tax bills from Miami-Dade County. A number of developers and investment groups have recently filed lawsuits against Miami-Dade Property Appraiser Pedro J. Garcia for their tax appraisals for the 2019 tax year. Others include the owners of…

Don Peebles’ diversity capital call: Developer says push for equal economic opportunity is “not going away”

Don Peebles Developer Don Peebles founded his eponymous firm in 1983. Since then, the Peebles Corporation has built out a portfolio that totals $6 billion and spans more than 7 million square feet in Boston, Los Angeles, Miami, New York, Philadelphia, San Francisco, Washington, D.C., and Charlotte, North Carolina. Peebles has long been outspoken about the…

Commissioner Pushes Miami Water Park Project Despite Environmental Concerns

Once upon a time, Miami-Dade County almost had a major amusement park meant to rival Disney World and Universal Studios. The plan to construct a theme park on Zoo Miami property near environmentally sensitive land was seemingly killed by a beetle around 2016. But the project didn’t die. Instead, it has morphed into a plan to build a water park on top of a…

Bridge Development, PGIM to Develop 312,103 SF Cold Storage Facility Near Miami

Bridge Development Partners and PGIM Real Estate will develop Bridge Point Cold Logistics Center, a 312,103-square-foot cold storage facility in Hialeah. The joint venture expects to deliver the speculative property in fourth-quarter 2021. The 20.1-acre site is situated at the intersection of NW 162nd Street and NW 102nd Avenue, 18 miles northwest of Miami…

Bridge and PGIM buy Hialeah property to build spec cold storage facility

Bridge Development Partners and PGIM Real Estate bought a 20-acre site in Hialeah, with plans to build a spec cold storage facility. The joint venture bought the property between Northwest 162nd Street and Northwest 102nd Avenue for $11 million, according to sources. Section 17 LLC, led by Lloyd Moriber of Bal Harbour, sold the…

Atlanta Fed: Beige Book Reflects Ongoing Pandemic-Related Difficulty

Economic conditions remained generally challenging across the Southeast, though some Atlanta Fed contacts reported gradually rehiring laid-off workers and retailers noted rising sales as businesses reopened, according to the Beige Book summary of regional economic activity from mid-May through June. Although some retailers said uncertainty still clouds their…

Simon Property Group sics the lawyers on deadbeat tenants

Simon Property Group has kept its promise to sue mall tenants who aren’t paying their rent. On Tuesday, the country’s biggest retail real estate investment trust filed a lawsuit against Eddie Bauer, seeking to recover $6.2 million in missed rent payments. The outdoor clothing store chain has not paid rent since April, according to records filed in federal court. Last…

Video: The Top Ten Issues Affecting Commercial Real Estate 2020-2021

In these videos CRE Counselors Global Chair Michel Couillard discusses his firm’s report on the Top Ten Issues Affecting Real Estate with the host of America’s Commercial Real Estate Show. As you might guess, (1) COVID-19 is at the top of this year’s list. Other top issues discussed that affect commercial real estate are (2) economic renewal, (3) capital markets…

Armageddon on hold: 88% of tenants paying rent

Survey finds 87.6 percent of tenants paid some rent this month With enhanced unemployment benefits set to expire this month, 87.6 percent of tenants paid some rent through July 13, according to a national survey of market-rate units. The number of renters paying at least some of the month’s rent was only slightly lower than the 90.1 percent during the…

Hialeah CVS sells for $11 million

Eastern Industrial Development Corp. snagged a Hialeah CVS building for $10.5 million, as drugstore properties continue to sell during the coronavirus pandemic. The Bronx, New York-based real estate investment group, led by Scott and Mandy Milchman, bought the 12,735-square-foot building at 101 Hialeah Drive, according to sources. It sold for $824 per…

Blackstone says goodbye to CMBS fund

Blackstone Group is throwing in the towel on a mortgage-backed securities fund. The company is winding down the Blackstone Real Estate Income Master Fund, which realized a 24 percent decline when the coronavirus struck in March, according to Bloomberg. In a filing, Blackstone said closing the fund would provide its shareholders with cash and the “best path…”

Miami Beach shuts down short-term rentals due to coronavirus

The city of Miami Beach ordered all short-term rentals to stop operating effective Wednesday at 12:01 a.m. due to the record number of coronavirus cases. Miami Beach updated its emergency order to close and prohibit short-term rentals, a week after Miami-Dade County Mayor Carlos Gimenez issued restrictions on restaurants, gyms, fitness centers and short-term…

Office supply rising across South Florida, rents not dropping

Even with an onslaught of new office supply and the economic impacts of coronavirus, landlords did not give tenants a rent break during the second quarter, according to a new report from JLL. Miami-Dade County’s office market was hit hard by the pandemic, due partly to its exposure to the hospitality industry. Interval International, a vacation and timeshare…

South Dade bus rapid transit finally hits the runway

The money is in. A developer is on deck. Two years after decision-makers voted to upgrade Miami-Dade’s longest commuting route with “Gold Standard” bus rapid transit (BRT), it’s close to rolling ahead. Commissioners Sept. 1 are to finally green light a $300 million overhaul of the 20-mile, two-lane busway linking Kendall and Florida City. It’s the first of six high…

Former Wynwood tow yard ticketed for new tower

A developer has won positive reviews from City of Miami officials for a large mixed-use residential project in Wynwood. The development would result in the reuse of the former site of the Downtown Tow Yard, which ceased operations several years ago. EEFC 2400 NMA Owner LLC intends to construct a 12-story building and enclosed garage on the site, bringing…

Long-awaited Underline sets opening date this fall

The Underline was always an ambitious concept, a $120 million 10-mile linear park that will weave through several municipalities, invigorating the space beneath the Metrorail. Now the Underline is preparing for another bold move: opening during a pandemic. Meg Daly, president and CEO of Friends of the Underline, shared at a recent Downtown Development…

Judge Rules Against Affordable Housing Investor In LIHTC Dispute With Big Ramifications

A Massachusetts-based real estate firm invested about $400K into a Miami-area affordable housing project in 2014 and was gunning for a multimillion-dollar payout on the exit last year, but its nonprofit partner foiled the plan. An affiliate of HallKeen Management had lined up a deal to sell the project, called Aswan Village, for $21M, and split profits with its…

Local Court Win Is a Victory for Affordable Housing Communities Nationwide

On July 7, the Circuit Court of the 11th Judicial Circuit in Miami-Dade County ruled to preserve the housing needs of low- to moderate- income families in one of South Florida’s most historic yet distressed cities, Opa-locka. In Case No. 2019-CA-016913, the plaintiff, Opa-Locka Community Development Corporation (OLCDC), asked the court to recognize its non…

Two-nation team powers ahead to build Florida-Mexico sea trade

With the US-Mexico-Canada agreement taking effect this month, the newly formed Florida/Mexico Working Group is looking at ways to expand maritime trade between the two economies. The group, which formed as a result of a letter of intent signed in November by the Florida Ports Council and Mexican Coordinadora de Puertos, consists of six members from…

Scaled down PortMiami cruise terminal deal adds Disney

MSC Cruises and Miami-Dade are close to redrawing an agreement that would give the company more time to finance its planned “mega terminal” that now, under the new terms, would also homeport Disney Cruise Line vessels. The amendment to MSC’s existing 62-year berthing deal, expected to generate $2.03 billion for the county, was one of two changes to long…

Life-sciences sector proves safe haven for landlords

The search for a cure for Covid-19 is lining the pockets of some landlords. While the pandemic wreaks financial havoc on hotels and retailers, landlords who cater to biotech and pharmaceutical tenants are seeing increased demand as companies research treatments for the coronavirus, according to the Wall Street Journal. The work of those tenants, too, is…

Dezer Development’s plan to remake Intracoastal Mall moves forward

Rendering of the proposed redevelopment of the Intracoastal Mall and Gil Dezer Dezer Development can move ahead with its plans to transform Intracoastal Mall in North Miami Beach into a high-rise, mixed-use community. Despite opposition from several nearby homeowners, the North Miami Beach Planning & Zoning Board approved Dezer…

New York & Company parent files for bankruptcy

New York & Company’s parent company is the latest chain to file for bankruptcy as the coronavirus has piled additional pressure on an already challenging retail landscape. RTW Retailwinds, whose other brands include Fashion to Figure and Happy x Nature, filed for Chapter 11 protection Monday, and has already kicked off liquidation sales, CNBC reported.

Morgan Stanley Signs New 44K sf Tenant at Medley Warehouse

Morgan Stanley has signed a 44,259-square-foot lease with engineering firm AmePower at Flagler Station II, a 171,944-square-foot industrial facility in Miami-Dade County. The tenant is scheduled to occupy the property in the town of Medley in December. The lease includes 36,759 square feet of warehouse space along with 7,500 square feet of office space and 14 dock…

Colony Capital may lose control of 2 largest CMBS hotel portfolios

When Colony Capital revealed in May that it was in discussions with lenders after having defaulted on $3.2 billion in hotel loans, the Tom Barrack-led firm cautioned “there can be no assurances that the company will be successful in such negotiations.” In fact, at the time the Los Angeles-based investment firm had already defaulted on a forbearance agreement…

Party’s over: Clevelander South Beach closes after employee tests positive for Covid

Clevelander South Beach The Clevelander South Beach closed over the weekend after an employee tested positive for Covid-19, a month after reopening. The closure comes as the commercial mortgage-backed securities loan backing the hotel is in special servicing. A spokesperson for the 60-key hotel at 1020 Ocean Drive in Miami Beach confirmed that…

Industrious taps banker Osei Van Horne to round out its board

Jamie Hodari Flex-office startup Industrious is beefing up its board, the company’s latest step toward a potential public offering. The New York-based startup said it added Osei Van Horne, a managing director at Wells Fargo, as its first Black board member. Van Horne, an alum of Goldman Sachs, co-founded Wells Fargo’s Strategic Capital Technology Division…

Yes in God’s Backyard: How building affordable housing could be a lifeline for churches

Churches, whose already declining attendance plummeted during the pandemic, are now looking to development for extra cash. Places of worship are offering up their excess land to developers, Bloomberg reported. The prospect is a particular draw for institutions looking to combat homelessness. Before the coronavirus hit, more than 550,000…

WeWork on track for profitability by end of 2021, says chairman

WeWork’s business model may have been called into question by the coronavirus pandemic, but its executive chairman says the company is now near profitability. The flexible-office startup, founded in 2010, is now on track for positive cash flows by the end of 2021, Marcelo Claure told the Financial Times. In fact, Claure said the pandemic has sent the firm’s…

South Florida’s Largest Off-Market Freezer Warehouse Sells For $13.25 Million

CBRE Senior Vice Presidents Larry Genet, Tom O’Loughlin and Senior Associate Jake Zebede negotiated the purchase of an ±80,000-square-foot freezer facility located at 650 NE 185th Street in Miami. Genet led the team in representing the buyer, Ivy Realty, which paid $13,250,000 in the off-market deal. Stuart T. Kapp of Kapp Morrison LLP represent Ivy Realty…

Miami Freezer Warehouse Sold

An 80,000 sq ft freezer warehouse sold for $13,250,000 or about $165 psf. The property is located at 650 NE 185th Street in Miami, Florida. The seller, Best Freezer Holding, was represented by Edward Redlich, SIOR, CCIM along with the ComReal Miami Industrial Team and Michael Weihl with Sirius Business Advisors. The buyer, Ivy Realty, was represented by Larry…

Spain’s richest man owns $17B in real estate, includes Miami tallest office tower

Amancio Ortega, the richest man in Spain, owns more than $17.2 billion in real estate across the world. The founder of fast fashion label Zara brought in 621 million euros through his real estate assets last year, according to Bloomberg. Ortega’s company, Pontegadea, revealed its holdings for the first time this week. Ortega spent nearly $2.4 billion on property last year…

Miami-Dade approves $10M emergency rent relief program

Miami-Dade County approved a $10 million rent relief fund for families impacted by the pandemic. The county commission voted to pass the Emergency Rental Assistance Program, which will provide a one-time payment to eligible renters. Families can apply beginning on Tuesday and ending Friday, July 17, according to a press release. To qualify, a renter’s…

US hotel occupancy falls for first time in 11 weeks. Blame Covid again

Coronavirus spikes and subsequent closures snapped 11-week streak of rising hotel occupancy rates The 11-week climb in U.S. hotel occupancy rates ended ahead of the July 4 holiday, in part because of the spike in coronavirus cases led states to roll back their reopenings and close beaches. New hotel rooms that came online also tamped down overall demand…

Amazon wins approval to build massive facility in south Miami-Dade

Amazon secured approval to build what could be its largest distribution facility in South Florida. Miami-Dade County commissioners voted unanimously on Wednesday to sell a vacant lot at 13200 Southwest 272nd Street in south Miami-Dade to Amazon, according to the Miami Herald. Amazon will pay the county $22.1 million for the site, which will allow…

Bidders line up to buy Brooks Brothers out of bankruptcy

Two suitors are competing to take over suiting stalwart Brooks Brothers after it filed for Chapter 11 bankruptcy this week. An entity tied to Authentic Brands Group and mall owner Simon Property Group are considering a bid to buy the retailer out of bankruptcy, the Wall Street Journal reported. WHP Global, which is backed by Oaktree Capital and…

Can a Rational Case be Made for Irrational Exuberance?

In my commercial real estate brokerage business, I’ve noticed a trend of some buyers expecting lower prices on properties, sometimes even clearly taking offense at a seller not budging on price. There seems to be, with them a sense that they know better to such a degree that they are disgusted by the gall and ignorance of some seller that can’t see what they know…

The impact of social distancing on leisure and hospitality : State-level data from the BLS

The FRED Blog has discussed the impact of the COVID-19 pandemic on national retail sales and employment. And Leibovici, Santacreu, and Famiglietti index the contact-intensity of a range of occupations and estimate the economic impact of their reduced activity. Their work ranks several leisure and hospitality occupations in the high-contact category.

Restaurateurs to protest restrictions in Miami-Dade. In Broward, it’s a different story

It’s a tale of two counties, as restaurateurs and gym owners in Miami-Dade and Broward face new restrictions due to rising Covid-19 cases. The cutbacks have led to outrage among many local businesses, with a march planned Friday in downtown Miami. In Miami-Dade, Mayor Carlos Gimenez on Monday initiated…

Knotel’s Q2 revenue plunged 20%

Flex-office startup Knotel said its revenue plunged 20 percent during the second quarter, offering a glimpse of the economic toll the pandemic is having on the office market. CEO Amol Sarva said the preliminary numbers reflect a “really hard” quarter that forced Knotel to cut jobs and slash expenses. “What we saw in Q2 was really difficult,” he said during a…

CRE Broker CEO predicts “exodus” from cities to last two years

New York City is reopening, but Marcus & Millichap’s CEO is not predicting a return to form anytime soon. Hessam Nadji told CNBC in an interview this week that demand was surging in suburban areas as people fled cities, a trend he predicted would continue for up to two years. “I think the next 18 to 24 months are going to show a lot of exodus out of central business…”

JV Buys Broward County’s Largest Office Tower

Along with co-general partner Somerset Properties, Ten Capital Management has acquired Bayview Corporate Tower, a 413,833-square-foot Class A office building at 6451 N. Federal Highway in Fort Lauderdale, Fla. The 12-story property reportedly is Broward County’s largest office building. The acquisition’s price was not disclosed, but local media…

Bridge Investment sells Fort Lauderdale office building for $83M

Bridge Investment Group sold the Bayview Corporate Tower in Fort Lauderdale for $82.5 million, marking one of the largest commercial real estate deals in South Florida during the pandemic, The Real Deal has learned. Somerset Properties bought the 12-story, 413,833-square-foot office building at 6451 North Federal Highway, according to sources. The price…

Bed Bath & Beyond to close 200 stores

Bed Bath & Beyond may have to rethink the ‘beyond’ part. The retailer said Wednesday that it will close 200 stores over the next two years. Although online sales more than doubled during April and May, the company’s total sales fell by nearly half during its latest quarter. As a result, Bed Bath & Beyond will begin to permanently close a portion of its locations…

How Climate Change Could Affect CRE Valuations

MSCI, the financial services company formerly known as Morgan Stanley Capital Investment, used its own model to assess that risk.
“Many assets investors own can only figuratively be underwater when a company becomes insolvent or a stock loses all its value. But for real estate, with long-life fixed assets, there is — literally — a real possibility a…

The Landmark South Holds Topping Out Ceremony in Doral

The Landmark South held a topping out ceremony in Doral, Miami on Friday to recognize the final phase of its apartment development construction. Targeting a Summer 2021 opening, this second and final phase will add 213 residential units to the existing 418 units which were constructed in 2017 and are currently leasing. The eight-story…

Outdoor Meeting Spaces And Better Tech: Design Changes Post-Pandemic

Steve Jobs was famous for conducting meetings while strolling around Palo Alto. Jeff Bezos would walk in Central Park to discuss his idea for an online store. Fresh air, pumping blood and strolling shoulder to shoulder can eliminate the stress that might otherwise come from staring down a person across a table in a boardroom. When architect Andrew Burnett, now…

This content is password protected. To view it please enter your password below:

Password:

Video 1 of 2:

Video 2 of 2:

In these videos CRE Counselors Global Chair Michel Couillard discusses his firm’s report on the Top Ten Issues Affecting Real Estate with the host of America’s Commercial Real Estate Show. As you might guess, (1) COVID-19 is at the top of this year’s list. Other top issues discussed that affect commercial real estate are (2) economic renewal, (3) capital markets risk, (4) public and private indebtedness, (5) affordable housing, (6) flow of people, (7) space utilization, (8) technology and workflow, (9) infrastructure, and (10) environment, social, and governance, aka ESG.

Ivy Realty snags industrial freezer in Miami for $13M

Ivy Realty snagged an 80,000-square-foot industrial freezer facility in north Miami-Dade County for $13.25 million. Montvale, New Jersey-based Ivy Realty bought the property at 650 Northeast 185th Street in Miami for $165 per square foot, according to a press release. The seller, Best Freezer Holdings LLC, is tied to Clement Zanzuri of Miami. The property is 100…

East End Capital to Build 12-Story Multifamily Project in Miami’s Wynwood District

East End Capital has received civic approval to build Foyer Wynwood, a 12-story multifamily project planned for Miami’s Wynwood neighborhood. The project marks the debut of the developer’s co-living brand Foyer, which will operate the co-living segment of the 375,000-square-foot development. The property will feature 236 multifamily residences in both micro-unit and…

Brooks Brothers files for bankruptcy

Brooks Brothers, which has 500 stores across the globe, filed for Chapter 11 bankruptcy protection Wednesday. The move had been expected as the 200-year-old clothing chain struggled first with a shift from a formal dress code in the workplace to a more casual one, and then ultimately the coronavirus. Brooks Brothers will use the bankruptcy process to find a buyer for the…

AMC nears deal to avoid bankruptcy

AMC is trying to stave off the final curtain. The movie theater chain is close to hammering out a restructuring deal that would save it from bankruptcy, according to the Wall Street Journal. The deal involves bondholders providing a $200 million senior loan and exchanging their unsecured claims for second-lien debt at an undisclosed discount. Meanwhile, Silver…

Will The Pandemic Kill Demand For Micro-Units?

For the past five-plus years, micro-units have been an intriguing subplot in the grand saga of commercial real estate. As demand for housing has boomed, especially in rent-burdened cities like New York and San Francisco, developers gambled that tenants would tolerate tiny units — some as small as 220 SF — for the chance to access cool neighborhoods…

Florida Commercial Real Estate News Roundup 2020 H1

While 2019 was a fruitful year in Florida’s CRE market, particularly in South Florida commercial real estate, we now focus on the challenges presented in early 2020. Despite the current pandemic, new, major developments took place and many property refinances were sealed in several locations. Meanwhile, domestic and international investors contributed to the….

Zara founder unveils $17.2 billion global real estate empire – including Miami’s tallest office tower

After making a fortune in clothing, Amancio Ortega turned his attention to real estate. The Spanish billionaire’s property holdings have soared to $17.2 billion, his firm revealed Tuesday for the first time, giving him the largest real estate portfolio among Europe’s super-rich. Ortega, 84, the founder and owner of fashion label Zara, invested 2.1 billion euros in real estate last…

Retailers paying more of their rent but Covid surge prompts caution

The amount of rent Burger King paid in June compared to May was a whopper. The fast-food chain forked over 100 percent of what it owed landlords last month, compared to 63 percent the month before. The same went for Dave & Buster’s, where the new motto could be “Eat, Drink, Play…”

Mall owners team up with “dead-celebrity dealmaker” but can they rescue moribund retailers?

Deep into a marathon set of high-pressure meetings to save bankrupt retailer Aeropostale from being chopped up and sold for parts, Jamie Salter thought some comic relief was in order. The Authentic Brands Group founder and CEO pulled out his phone and called Shaquille O’Neal — his company’s second-largest individual investor…

$7 Mil Miami-Area Retail Asset Refi Closed

CBRE has arranged the $7 million refinancing of a 78,486-square-foot retail center at 19905-19925 Biscayne Boulevard in Aventura, Fla. Senior Vice President Paul Ahmed and Financial Analyst Mackenzie Fry represented the owner, Triarch Capital Group, and Correspondent Life Insurance Co. provided the 10-year loan. The property came online in 1994 and later…

Bayside Marketplace sues to evict Bubba Gump, Hard Rock Cafe and three other tenants

Bayside Marketplace’s owner wants to evict five tenants, including Hard Rock Cafe and Bubba Gump Shrimp Co., alleging unpaid rent amid the pandemic. The downtown Miami outdoor mall’s New York-based landlord sued the two restaurants and three retailers recently in Miami-Dade Circuit Court to initiate the eviction process, alleging the tenants owe a total…

Gym owners flex their muscles: Miami-Dade reverses decision to close facilities

Miami-Dade County Mayor Carlos Gimenez will allow gyms and fitness centers to stay open after announcing Monday that they would be closed, beginning on Wednesday. After meeting with a wellness group, the county decided that gyms and fitness facilities can remain open with the current restrictions in place, according to a spokesperson for the mayor’s office.

TRD Insights: Hotel CMBS delinquencies jumped in June

Lodging delinquencies among commercial-mortgage-backed-security (CMBS) loans rated by Kroll Bond Ratings Agency reached 21.6 percent last month, up from 13.6 percent in May. Hotels’ occupancy rates have been rising, but their loan troubles are through the roof. Hotel delinquencies among commercial mortgage-backed security (CMBS) loans rated by…

ZOM buys land in Coral Gables, West Palm for senior living projects

ZOM Senior Living and Watermark Retirement Communities closed on land for two senior living projects in Coral Gables and West Palm Beach. Property records show LG Ponce III LLC, led by Lion Gables Realty Limited Trust, sold four parcels at 300 Greco Avenue, near the Shops at Merrick Park in Coral Gables, to SHP VI Greco Coral Gables Owner for $20 million.

Restaurants, gyms to close again in Miami-Dade

Miami-Dade County Mayor Carlos Gimenez is ordering restaurants to close their dining rooms effective Wednesday, marking a major blow to the struggling industry. Gyms, fitness centers and short-term rentals will also shut down. State and local officials have started rolling back openings due to the record number of positive Covid-19 cases. As of Monday, more…

TRD Insights: Little evidence that Opportunity Zone program helps poor communities

The Opportunity Zone program has been a huge success for well-capitalized real estate developers, but not for the disadvantaged people it’s ostensibly designed to help. A new study from the Urban Institute (UI) suggests that Opportunity Zones have largely failed to promote investment in local small businesses, create new jobs or boost the development of affordable…

Retail-to-residential conversions are in cards at America’s doomed malls

Malls are hemorrhaging retailers left and right. What will happen with all that space? Some could be converted into apartments and condominiums. (iStock) Mall vacancies are surging, so what to do with all that empty space? Apartment and condominium conversions could proliferate. Some developers were converting properties before the coronavirus… …

WeDone: South Beach landlord seeks to evict WeWork for unpaid rent

The landlord of a WeWork location in South Beach is looking to evict the embattled co-working giant for what it says is more than $650,000 in unpaid rent. A photo obtained by The Real Deal shows the three-day notice tacked onto the door of the 43,500-square-foot building at 429 Lenox Avenue, which is fully occupied by WeWork. WeWork notice WeWork…

More tech firms eye Miami as Covid carries on

As resi brokers in South Florida report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms. In late February — before Covid-19 became a pandemic — Spotify inked a lease for 20,000 square feet to house its South Florida headquarters in Miami’s…

Inside South Florida’s mall, retail and restaurant reopenings

Masks, one-way signs, spread-out open-air dining. Malls, stores and restaurants are reopening in South Florida, and changes are evident amid the pandemic. The Real Deal’s South Florida Managing Editor Ina Cordle toured the Miami Design District with Craig Robins, Bal Harbour Shops with Carolyn Travis and Aventura Mall with Jackie Soffer on Saturday, May 23.

Submerged in securities: Many CMBS hospitality loans may be underwater soon

Hotel operators trek into special servicing and it may take years before they get out (iStock) Carlos Rodriguez Sr. set off from Costa Rica nearly 25 years ago for what seemed like a surefire bet: developing and operating hotels in Florida, where both tourism and business travel were in perpetual demand due to the area’s warm weather, white sand beaches and proximity to…

The breakdown: Inside Virgin Hotels’ $330M vision for South Beach and how it vanished

Virgin Hotels had been looking for the right redevelopment opportunity in South Beach for years, and appeared to have found it a few months ago in HFZ Capital Group’s Shore Club. An offshoot of Richard Branson’s Virgin Group, Virgin Hotels created a proposal to purchase the 309-key beachfront hotel…

Trump tweets that he “may END” Obama-era fair housing regulation

President Trump’s latest announcement regarding his plans for fair housing regulations came in the form of a Tuesday night tweet, Business Insider reported. The president took aim at the Obama-era Affirmatively Furthering Fair Housing (AFFH) mandate, which his administration had suspended in early 2018 until this year. “At the request of many great…

New Florida Law Cracks Down On Emotional Support Animals

A new law signed by Gov. Ron DeSantis last week, which took effect immediately, amended Florida’s Fair Housing Act to address the problem. With the internet making it easy for dishonest tenants to get around pet restrictions by mail-ordering certificates saying that Fang and Rambo are emotional support animals, property managers often acquiesced, lest…

Miami-Dade Restaurant Owners Organize to Oppose Dining-Room Closure

On Monday, July 6, Miami-Dade Mayor Carlos A. Gimenez announced his intention to issue an emergency order re-closing indoor restaurant dining rooms owing to a surge in the spread of COVID-19. Within hours, a cadre of restaurateurs gathered in Coral Gables to decide how to deal with a collective case of government-induced whiplash. To business owners…

Miami Settlement With Duplex Developer Draws Opposition Over Setback Violations

Miami’s Coconut Grove takes pride in its eclectic look and character, so it’s no surprise that community opposition blossomed after a duplex developer was accused of breaking setback rules… 3384 Day Avenue Investments Inc. was in the midst of building a duplex with interior work remaining when the city issued a hold on the building permit a year ago, citing setback…