Month: September 2020

Air Force offers county new airport site at Homestead

Miami-Dade is working on multiple deals to build out its general aviation airports and is “closer than ever” to an agreement for a new one at Homestead Air Reserve Base, Aviation Director Lester Sola said. Commissioners Oct. 6 are to decide whether to direct Mayor Carlos Giménez to “expeditiously” pursue a contract with the Air Force so that the county…

Miami Heat minority owner pays $20 million for Sweetwater Best Buy

As the Miami Heat eye a potential NBA championship, one of the team’s original partners has reason to celebrate early. Raanan Katz’s real estate company RK Centers paid $20.4 million for a 4.2-acre property leased to Best Buy at 10760 Northwest 17th Street in Sweetwater, near Dolphin Mall and Miami International Mall. The 46,000-square-foot building is home to…

On Eve Of NBA Finals, Miami Heat Player Scores Development Win

This week, Miami Heat forward Udonis Haslem will be trying to rack up victories against the Los Angeles Lakers in the NBA Finals. Last week, he scored a different sort of win: His company is moving forward with a $36M housing development. Haslem Housing Venture LLC… at 2035 North Miami Avenue. The proposal listed partners Haslem Housing Ventures and…

CTO Realty Growth Acquires Shopping Center in Metro Miami for $21 Million

CTO Realty Growth has acquired Westland Gateway, a 108,000-square-foot shopping center in Hialeah, for $21 million. Aldi, dd’s Discount, Ross Dress for Less and Bed Bath & Beyond occupy the property. Westland Gateway is located at 1460 W. 49th Street, 15 miles northwest of downtown Miami. Daytona Beach, Fla.-based CTO Realty purchased the asset through a 1031…

Miami developer Metronomic files for bankruptcy

Metronomic Holdings, a South Florida-based developer led by Ricky Trinidad, filed for Chapter 11 bankruptcy protection this month. The Coral Gables-based real estate firm listed more than $87 million in debts, according to documents filed in the Southern District of Florida. Metronomic has commercial, residential and student housing projects…

50% of Miami International Airport passengers likely to return in 2020

In April, amid coronavirus-driven shutdowns, passenger movements at Miami International Airport (MIA) plummeted. Four months later, as international travel strictures loosen, they’ve begun to rebound. But there’ still a long way to go, said Aviation Director Lester Sola. “By the time the year is over, we’ll probably have it 50% of the volume we had last year…”

Miami Marine Stadium renovation contract nears

The long-awaited restoration of Miami Marine Stadium on Virginia Key is one major step closer to reality, according to the city’s Office of Capital Improvements. City staff delivered a status report on the multi-million-dollar project at a virtual meeting of the Virginia Key Advisory Board on Sept. 22. The project is near completion of the permitting process, and…

County set to corner South Dade transit

As construction for “Gold Standard” bus rapid transit on the South Dade Transitway gears up, Miami-Dade aims to clinch the use of 850 parking spaces on the line’s penultimate stop. Commissioners are to consider a parking deal with Homestead Oct. 6, roughly a month after they OK’d a $368 million contract for construction of stations, roadway and intersection…

Landlords eye taking cut of retailers’ online sales as rent

As shopping habits shift toward the digital, some property owners think demanding a portion of retail tenants’ online sales is only fair. (iStock) Landlords are familiar with percentage rent — taking a portion of retail tenants’ in-store sales — but now, some are thinking of bringing online sales into the mix. As shopping habits shift towards the digital, some property…

As Florida Reopens, Brokers Confident Retail Closures Will Be Filled

Despite the fact that COVID-19 is still spreading in Florida — a tracking group’s dashboard reported 3,266 new cases and 106 deaths on Tuesday — and warnings from health officials that there could be a resurgence in cases this fall, Florida has mostly reopened under political and economic pressures. Gov. Ron DeSantis on Friday signed an executive order bringing…

Lawsuit seeking class action status accuses Grant Cardone of misleading investors

Grant Cardone Real estate crowdfunding guru Grant Cardone is facing allegations that he’s misled thousands of investors across the country by falsely promising them annual returns of at least 15 percent and other incentives that never materialized. Fresh off their acquisition of a waterfront Fort Lauderdale apartment complex, Cardone and his…

Retail bankruptcies on pace to rival 2010: report

It’s been a difficult year for retailers, and things may get worse before they get better: The number of bankruptcy filings by retailers this year could outpace those filed in the wake of the Great Recession. As of Sept. 29, nearly 30 retailers filed for bankruptcy, leading to almost 6,000 store closures, according to a biannual bankruptcy report from BDO International, a…

Medical co-working space operator ShareMD buys Miami medical campus

An owner and operator of medical co-working space bought a medical office campus in Miami from a company with ties to Florida’s former lieutenant governor. Alpharetta, Georgia-based ShareMD bought the three-building, 10-acre property at 7400, 7500 and 7800 Southwest 87th Avenue, according to a press release. The company declined to provide the…

ShareMD Buys Miami Medical Office Campus

ShareMD has acquired a three-building, 177,358-square-foot medical office campus in Miami. Ideal Management and FIP Realty Services worked on behalf of the buyer. Starwood Mortgage Capital provided acquisition financing, which PSRS arranged. Pan American Group is the former owner of at least one of the three properties that traded, Yardi Matrix data shows…

Greenberg Traurig Assists ShareMD in $89 Million Financing of Medical Office Building Portfolio with Starwood Mortgage Capital

A team of Greenberg Traurig, P. A. attorneys led by Miami Real Estate Practice Shareholder Danielle Gonzalez, represented long-time client ShareMD in its financing of a medical office building portfolio with Starwood Mortgage Capital. The $89 million loan transaction closed on September 25. The portfolio consists of eight medical office properties…

ShareMD Acquires Three-Building Medical Office Campus in Miami to Add to Their Growing Healthcare Portfolio

ShareMD, a healthcare real estate and physician practice solution company with corporate office in Alpharetta, Georgia, has closed escrow on a three-building, 177,358 sq. ft. medical office campus atop ten acres in Miami, “We’re excited to continue ShareMD’s growth in the healthcare facility sector with this acquisition,” said ShareMD’s Chairman and CEO, John…”

Colony deal puts Highgate among biggest hotel owners

Highgate’s deal to purchase a $2.8 billion portfolio of hotels from Colony Capital will catapult the company into the upper ranks of the nation’s largest hotel owners. The privately held hospitality firm, launched in 1988 by brothers Mahmood and Mehdi Khimji, will have the fifth-largest portfolio in the country when it finalizes its deal with Colony, which is…

Top developers Gil Dezer, Jon Paul Perez on their reasons for doubling down in South Florida market

For some Miami developers, the last few months have provided an opportunity to “double down.” “Our affordable division is extremely active,” Jon Paul Pérez, executive vice president of Related Group, said during The Real Deal’s latest episode of Coffee Talks. Pérez noted that Related has broken ground on three projects in the last 45 days. Another…

Will real estate take the stage at Trump-Biden debate?

The first presidential debate between President Donald Trump and former Vice President Joe Biden airs tonight, and will focus on the coronavirus pandemic, the economy, racial unrest and the candidates’ records among other preselected topics. But given Trump and Biden’s shared penchant for off-the-cuff remarks, will they stay entirely on topic or will eviction bans…

Biden vs. Trump: What’s at stake for real estate?

Joe Biden and Donald Trump Biden’s $775B ‘caring economy’ plan would kill 1031 exchanges Joe Biden went after one of the real estate industry’s favorite tax benefits last month. The presumptive Democratic presidential nominee proposed his “caring economy” plan to  fund a child- and elderly-care spending platform, in part by closing a loophole used by many…

Miami investor buys Hialeah apartments for $13 million

A Miami investor paid $13 million for a multifamily property in Hialeah. Antonio Hernandez, an electrical contractor who owns nearly a dozen properties in the Miami area, purchased the 66-unit Hilton Estates buildings at 6365 West 24th Avenue. The seller is Hilton Estates of Hialeah IV, led by Tomas Betancourt Jr. The deal breaks down to $197,000 per unit.

The Fed discusses different effects COVID is having on rates of hotels versus casino hotels

The FRED Blog recently discussed the large reductions in travel related to the COVID-19 pandemic. Today we expand that analysis to include a specific aspect of travel: hotel stays. The graph above shows producer price index (PPI) data from the Bureau of Labor Statistics (BLS) that measure price changes from the perspective of the seller. Percent changes in prices from…

Troubled commercial properties see values fall 27%: report

Commercial properties such as hotels and malls may have lost as much as a quarter of their value as the pandemic devastated the retail and hospitality businesses, along with other sectors. The value of the collateral for commercial mortgage-backed securities has been written down by 27 percent on average when properties get into trouble, the Financial Times…

Distressed US Commercial Real Estate Lost 27 Pct Of Value, Wells Fargo Figures Show

Many U.S. commercial properties have lost 25 percent or more of their value as the impact of the coronavirus has taken its toll on hotels, malls and other nonresidential buildings. The Financial Times (FT) reported the evidence of the losses can be seen in the commercial mortgage-backed securities (CMBS) market from appraisals. As a result, it raises questions…

Neiman Marcus exits bankruptcy $4 billion lighter

Neiman Marcus has emerged from bankruptcy just four and a half months after it entered the Chapter 11 restructuring process. The court-led process erased $4 billion in debt that the distressed retailer was holding, along with $200 million in annual interest payments, Reuters reported. The Dallas-based company now has $1.25 billion in debt, down from $5.1 billion.

Opportunity Zone rule change seeks to entice foreign investors

Potential changes to the rules for Opportunity Zones could soon allow some foreign investors to reap major tax benefits from the program. The Internal Revenue Service is considering new rules pertaining to foreign investors’ ability to defer capital gains in the Opportunity Zones program. The new regulations could be released in December, according to the White House…

DeSantis says restaurants in Florida can operate at up to 100% capacity

Florida Gov. Ron DeSantis announced the state would be moving into the third phase of reopening, allowing for up to 100 percent capacity at restaurants. The announcement, made in St. Petersburg, left municipalities and restaurateurs in South Florida scrambling to determine how the order will impact them. DeSantis said the state will guarantee restaurants can…

Hunt Real Estate Capital Provides $27 Million Fannie Mae Loan to Refinance a Newly-Built Multifamily Community in Hialeah, FL

Hunt Real Estate Capital, a division of ORIX Real Estate Capital, announced that it has provided a $27 million Fannie Mae DUS® Conventional Multifamily loan to refinance construction debt for Las Vistas at Amelia, a 174-unit apartment community in Miami-Dade county. Built in 2020, Las Vistas at Amelia is a workforce housing community designed to attract…

CorePoint Lodging sells Deerfield Beach La Quinta for $6M

Hotel real estate investment trust CorePoint Lodging sold a La Quinta in Deerfield Beach for $5.7 million. CorePoint, a spin-off of the La Quinta hotel brand, sold the 79-room hotel via CPLG Wellesley Properties LLC. Property records show the buyer is Shree Sai Properties LLC, managed by Ketankumar “Ketan” K. Patel. The hotel, at 100 Southwest 12th Avenue…

Fortune International Group buys waterfront Pompano Beach site for $28M

Fortune International Group is the latest developer to bet on the Pompano Beach market. The Miami-based development firm, led by Edgardo Defortuna, paid $27.5 million for the 4.6-acre site at 1380 South Ocean Boulevard, the company announced Wednesday. Fortune is planning to build two high-end condo towers on the oceanfront and Intracoastal-front…

Dev Motwani buys Fort Lauderdale dev site for $14M

Developer Dev Motwani bought a development site in Fort Lauderdale’s Flagler Village for $14 million. A Merrimac Ventures affiliate closed on the properties at 317 North Federal Highway and 515 Northeast Third Street, property records show. J & C Fox Family LLC and Joel Fox Inc., tied to Joel and Camille Fox, sold the buildings. They’ve owned the land since at least…

Investment firm tied to Baltimore Ravens owner buys South Florida car dealerships for $61M

The family office of two Maryland billionaires paid a total of $60.5 million for car dealerships in Margate and Tamarac owned by Arrigo Automotive Group. A company tied to Hanover, Maryland-based Redwood Capital Investments paid $34.5 million for the Tamarac Dodge, Chrysler, Jeep and Ram dealership at 5901 Madison Avenue in Tamarac.

DiVosta family sells Palm Beach Gardens office towers for $80M

The Palm Beach Gardens office towers Investors Nader Shalom and Babak Ebrahimzadeh paid $80 million for the DiVosta Towers in Palm Beach Gardens, marking one of the biggest office sales to close in recent months. The DiVosta family sold the two 11-story Class A Towers at 3825 to 3835 PGA Boulevard to Gatsby Enterprises and Master Mind, according to a press…

The post Miami Commercial Real Estate News September 30, 2020: USAF Offers Miami-Dade New Airport Site; ShareMD Buys Medical Campus; Hialeah MF Sells; More… appeared first on Hawkins Commercial Realty.

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

A nearly 30-acre mixed-use development that would bring luxury condo towers, a harbor and public promenade secured a key approval from the city of North Miami Beach. Developer Gil Dezer’s plan to transform the Intracoastal Mall will return to the North Miami City Commission next month, after commissioners voted to pass zoning amendments and a…

Miami Multifamily Report – Summer 2020

Miami ended 2019 on a high note; In a study by financial advice website SmartAsset, the metro ranked fourth out of 500 U.S. cities ranked for economic growth. Miami joined the nation’s top “boomtowns” thanks to its gross domestic product and business growth, job creation and population change. However, rents started to moderate in late 2019 and early 2020.

South Florida construction starts rose in August

August construction starts rose in South Florida South Florida construction starts were up in August, according to a recently released report. Total construction starts for Miami-Dade, Broward and Palm Beach counties totaled $904.1 million, according to Dodge Data & Analytics, a Hamilton, New Jersey-based construction data analytics firm. That’s about 46…

10 Questions Your Litigator May Ask about Your Post-Covid Commercial Lease

Much has been written about commercial real estate in a post-Covid world. As real estate users consider how Covid will change their space needs, they should also consider what provisions will serve them in future lease-related litigation. Of course, every commercial lease is different, but there are provisions that most leases do or should have. Here are 10 questions your…

Magellan Housing and Miami Heat star Udonis Haslem to build Wynwood apartment project on city-owned land

Coral Gables-based Magellan Housing and its celebrity partner, Miami Heat star Udonis Haslem, scored a slam dunk with Miami’s Omni Community Redevelopment Agency. Miami city commissioners — acting as the agency’s board of directors — on Thursday approved a proposal submitted by the partnership to build a 12-story, mixed-use apartment project in the…

Colony sells most of its hotel biz to Highgate in $2.8B deal

Tom Barrack’s Colony Capital is selling the majority of its beleaguered hotel business to private investor Highgate Hotels in a deal valuing the properties at $2.8 billion. It’s the largest shakeup the hospitality sector has seen since being decimated by the pandemic. The publicly traded Colony signed an agreement to sell six of its seven hotel portfolios to Highgate for $67.5…

Builder involved in deadly FIU bridge collapse sues for $15M, alleges design firm botched review

The contractor behind the Florida International University bridge that collapsed in March 2018, killing six and injuring 10, filed a lawsuit seeking $15 million from the company responsible for reviewing the bridge’s design before its construction. The plaintiff and builder of the $14.2 million bridge at Southwest 109th Avenue and Southwest Eighth Street, Miami-based…

Report: Office market won’t return to glory until 2025

The office market won’t reach pre-Covid levels until 2025, a brokerage report has found. The analysis by Cushman and Wakefield predicts that office vacancies across the world will continue upward, reaching 15.6 percent in 2022, Bloomberg reported. About 95.8 million square feet of space will become vacant in the next two years. Before the coronavirus…

Kitchen And Bath Supplier Plans New 95,000 SF Warehouse And Distribution Center In Doral

Panda Kitchens has purchased a 28,800-square-foot industrial building located at 7800 NW 34 Street in Doral for $6,500,000 with plans to build a new 95,000 square foot warehouse and distribution center. The property is situated on one of the largest assemblages of industrial land, encompassing 4.20 acres, or 182,937 square feet, within the…

Brookfield and Namdar plan to hand over keys to struggling malls

Some mall owners have given up trying to revive their struggling malls and pay off their debt payments and are now seeking to hand over the keys to their servicers. Brookfield Properties and Namdar Realty are separately requesting they be allowed to give up their J.C. Penney-anchored malls to special servicers to avoid loan foreclosure, according to Trepp. The…

It’Sugar files for bankruptcy protection after sales sour

A Deerfield Beach-based candy chain is the latest retailer to file for bankruptcy protection due to Covid-19. It’Sugar, with about 100 candy stores in mostly tourist markets, has $500,000 in cash, with $6.2 million of secured debt and $10.4 million of unsecured liabilities, including unpaid rent, according to a press release. The company reported losses before…

Red South Beach signs $5 million lease for new space & other Miami restaurant news

Red South Beach Red South Beach is moving on from its Washington Avenue location of the last 10 years, but it’s not going too far. Chef and owner Peter Vauthy signed a 10-year, $4.5 million lease for the restaurant space at 801 South Pointe Drive, he told The Real Deal. The new location includes 6,000 square feet of indoor space and 3,000 square feet of,,,

Blackstone assembles biggest real estate debt fund ever

Blackstone Real Estate Debt Strategies’ Jonathan Pollack (Blackstone; iStock) PTA moms can look to Blackstone for fundraising inspiration. The giant firm gathered $8 billion for a property debt fund born last year and closed this month, making it the largest real estate credit fund ever raised. That’s thanks to low interest rates and the potential for high returns during the…

Hotel industry is in trouble and more lenders want out

As hotels across the U.S. continue to suffer — average occupancy is just under 50 percent — an increasing number of lenders are scrambling to sell their mortgages. Mack Real Estate Credit Strategies has hired Cushman & Wakefield to sell mortgages totalling $500 million tied to the Times Square Hotel in Manhattan and two St. Regis hotels in Washington…

Wynwood streetscape plan gets a thumb’s-up

A proposed vision for greener and more pedestrian-friendly streets in Wynwood is a step closer to being realized. The Planning, Zoning and Appeals board recommended approval of the Wynwood Streetscape Master Plan on Sept. 16. It sets guidelines that would dictate the build-out of Wynwood streets. The master plan focuses on increasing pedestrianism…

Famed Ocean Drive might become Ocean Walk

Pedestrians first, bicyclists and transit second, personal vehicles last is the mantra for officials looking to revamp transportation in Miami Beach’s Entertainment District. A permanently pedestrianized Ocean Drive was featured in a game plan that transportation staff presented at a city committee workshop last week.  The goal of such a makeover…

Common raises $50M, eyes housing for remote workers

With its eye on housing for remote workers, co-living startup Common has raised $50 million in new funding. The Series D was led by Kinnevik with participation from existing investors Maveron, 8VC and Norwest Venture Partners, CEO Brad Hargreaves wrote in a blog post Tuesday. The round brings Common’s total funding to more than $113 million at a time when…

Leaked bank documents show South Florida real estate’s alleged ties to money laundering

A group of South Florida property owners’ alleged ties to global money laundering are revealed in newly leaked bank documents. A family who owns a home worth more than $2 million in the Jockey Circle neighborhood in Davie and a man accused of buying an $850,000 Tudor cottage in Davie with drug money are among the property owners emerging from a trove…

Kitchen and bath supplier pays $7M for Doral land for distribution center

A kitchen and bath supplier paid $6.5 million for 4.2 acres of industrial land in Doral, with plans to build a distribution center. Panda Kitchen & Bath bought the property at 7800 Northwest 34th Street, according to a press release. The sale comes to $35.53 per square foot for about 183,000 square feet of land. The asking price was $8 million, according to an offering…

How do companies decide who should return to offices first? It’s tricky

Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock) Companies are starting to bring employees back to offices after months of working from home, but deciding who should come back first is tricky — so firms are relying on surveys, apps and other tech to guide staffing decisions. International Business…

“That was a business decision”: Why real estate execs are backing Trump — or backing away

Sotheby’s International Realty broker Nikki Field was leading sales at Kushner Companies’ Puck Penthouses in Manhattan when, in 2016, the Kushners raised the idea of the brokerage getting involved in a fundraiser for Donald Trump’s presidential bid. Sotheby’s said it couldn’t because it was prohibited from donating to political campaigns…

Movie theaters might not come back after all

The release of Christopher Nolan’s “Tenet” was expected to be a return to some semblance of pre-coronavirus normalcy for movie theaters, but the industry might have a longer road ahead than some thought. Around 68 percent of movie theaters across the U.S. were open for the film’s debut over Labor Day weekend, but it made just $9.8 million over that weekend…

Firms dangle big bucks to lure employees out of big cities

In an increasingly work-from-home world, those with the means have also been moving out of big cities in favor of roomier, perhaps more suburban confines. Now, electronic payment company Stripe is offering employees $20,000 if they move out of cities including San Francisco, New York and Seattle, according to Bloomberg. But even that comes at a price.

Miami-Dade police said pre-Covid evictions could resume. Then came mayor’s stop order

The Miami-Dade Police Department announced on Thursday that pre-pandemic evictions could resume. But by the end of the day, county Mayor Carlos Gimenez had reversed the decision, causing confusion among landlords and tenants. Coronavirus-related evictions have been on hold in Florida for several months. Gov. Ron DeSantis’ two previous orders…

More multifamily may be coming to Overtown

Kelly Kite and 690 Northwest 13th Street (Google Maps) A landowner Miami’s Overtown neighborhood seeks city approval to turn a former chemical site into a multifamily or mixed-use development. Attorney Ines Marrero has applied for a zoning change on the site at 690 Northwest 13th Street on behalf of the landowner, a company tied to Vero Beach-based…

South Beach office building inks lease for record $92 psf

119 Washington Avenue Miami Beach Investment management firm J. Goldman & Co. signed a lease expansion at a South Beach office building for $92 per square foot, reportedly a record for South Florida. The company inked an eight-year lease for 3,318 square feet at the Yukon at 119 Washington Avenue. The six-story Class A office building is being…

British billionaires invest in Jeffrey Soffer’s Turnberry resort in Aventura

Jeffrey Soffer, Brett Mufson, David and Simon Reuben Reuben Brothers acquired a 25 percent stake in Jeffrey Soffer’s JW Marriott Miami Turnberry Resort & Spa. The private equity and investment firm, led by British billionaire brothers David and Simon Reuben, is partnering with Jeffrey Soffer’s Fontainebleau Development on other investments as well…

Off Lease Only sells two South Florida locations for $50M

Off Lease Only, the used car dealership, sold its Fort Lauderdale and West Palm Beach locations in a $50 million deal. Records show Off Lease Only Real Estate Holdings LLC sold both properties to Spirit Realty L.P. The Fort Lauderdale site at 827 South SR 7 sold for $27.5 million, and the West Palm property at 1200 South Congress Avenue sold for $22 million. Dallas…

Deutsche Bank: Employees can stay home until mid-2021

Deutsche Bank CEO Christian Sewing and Deutsche Bank’s Manhattan headquarters at 60 Wall Street (Getty) Employees at Deutsche Bank won’t have to replace sweats with suits any time soon. The German lender notified staff in New York, New Jersey and Connecticut this week that they can keep working from home until next July, according to Bloomberg.

Estate Companies plans Soleste apartments in North Miami Beach

Estate Companies received approval for a waterfront 23-story apartment tower in North Miami Beach. The tower, dubbed Soleste NoMi, will have 367 units, 2,708 square feet of commercial space and 655 parking spaces. It will be on almost two acres at 16395 Biscayne Boulevard. Estate Companies expects to break ground toward the end of the year on the 686,000…

Landlords lost about $9B in rental payments last quarter: report

Almost 11 million households were behind on rent or mortgage payments during the first three months of the pandemic. Nearly 6 million of those households were renters, who reported either missing, delaying or paying reduced rent during the second quarter of the year, according to a report from the Mortgage Bankers Association. Just over 5 million households…

Aman tower planned for Faena Versailles site in Miami Beach advances

Billionaire developers Vlad Doronin and Len Blavatnik secured initial approval for a zoning change that will allow them to build a 250-foot Aman-branded tower in Miami Beach. Despite considerable opposition for the proposed zoning, Miami Beach commissioners on Wednesday voted to pass the ordinance on first reading, sending it to the Miami Beach Historic…

Shvo to hell: Inside the ugly dispute between Michael Shvo and partner pal

Michael Shvo’s rule-breaking had finally caught up with him. The controversial broker-turned-developer was sidelined on more than $2 billion worth of Manhattan condos when he pleaded guilty to evading $1.5 million in taxes in 2018. But just when it looked like Shvo was persona non grata to any major investors and lenders, he surprised everyone. His…

Where real estate’s investment giants stand on Biden vs. Trump

Private equity and other major investment firms have donated more to Joe Biden than President Donald Trump so far this election cycle, campaign filings show, despite the potential for higher taxes. And while some companies with a heavy focus on real estate have been keeping hush on their candidate of choice, at least one firm is bucking that trend. The…

Amazon’s plan for massive warehouse heats up Homestead industrial market

Rendering of the project About two months after Amazon secured approval for what could be its largest distribution warehouse yet in South Florida, commissioners will vote on whether to approve a second e-commerce development on Homestead-Miami Speedway land. Homestead’s Planning & Zoning Board approved plans Tuesday for a 145,000-square-foot…

Amazon to open 1,000 warehouses in the suburbs

Amazon is moving to the ’burbs. The e-commerce giant plans to open 1,000 warehouses in suburbs and cities across the U.S., according to Bloomberg. The expansion will allow the company to quicken deliveries as it competes with rivals such as Walmart. Although other efforts, such as hiring 175,000 new workers, have already sped up Amazon shipments, the company is…

The post Miami Commercial Real Estate News September 25, 2020: 30-Acre North Miami Beach MXU Gets 1st Approval; Udonis Haslem Teams to Build Wynwood Apartments; More… appeared first on Hawkins Commercial Realty.

Investment Management Firm Expands Lease in Miami Beach, Breaking Florida’s Rental Rate Record Per Square Foot

J. Goldman & Co. LLP, an independent investment management firm, has signed an eight-year lease for 3,318 square feet of office space and a 700-square-foot covered terrace at The Yukon Miami at 119 Washington Avenue in Miami Beach. J. Goldman, which already leases 1,223 square feet on the fourth floor of the Class A office building, broke Florida’s per square foot…

Miami Commercial Real Estate Sales to List Price Ratio Recovers from July’s Slight Dip ~ August 2020 MLS

After dipping a touch, just enough to make some market players wonder what it might mean, the sales to list price ratio as reported by the Miami MLS, rebounded right back to around 92%, very much in line with where is has generally been for the past few years. This ratio has held up well since coronavirus emerged. That this measure continues to stay steady overall…

University of Miami sells land for Walmart-anchored project

Ram Realty bought land north of Zoo Miami for $9.6 million, for a mixed-use development under construction anchored by Walmart. Palm Beach Gardens-based Ram bought the site at 15601 Southwest 127th Avenue from the University of Miami, according to records. The development has been known by the names Coral Reef Commons, as well as Botanical. Retail…

The CDC Says Indoor Dining Is Risky. Miami Restaurants Are Scrambling to Adapt

When the managers at All Day cafe convened for their weekly meeting on March 11, co-owner Camila Ramos could sense that major changes were afoot in the food-and-beverage industry. Although it was 24 hours before the mayor of Miami-Dade County declared a state of emergency, Ramos and her team began hatching plans for what to do if cases of the coronavirus…

Years in the making, $425M mixed-use Miami River development opens

The massive mixed-use River Landing Shops & Residences development along the Miami River opened after years in the making, while other projects in the area remain on hold. The retail, multifamily and office River Landing project was completed earlier this year, but the owner, H&R Real Estate Investment Trust, held off on a grand opening due to the pandemic.

H&R REIT, Urban-X Open First Wave of Tenants at $452M River Landing Development in Miami

Toronto-based H&R REIT and Coral Gables, Fla.-based Urban-X Group have welcomed the first tenants to open at River Landing Shops & Residences in Miami, the first phase of the $452 million River Landing mixed-use development. The first tenants opening beginning this week include Hobby Lobby, Burlington, Publix, Five Below, Chase Bank and AT&T. Ross Dress…

Quiet dorms and distress storms: Student housing sector takes hit

Stay-at-home orders and virtual classes have asked serious questions of the once-booming market for student housing. (Photo: University of North Carolina at Chapel Hill via Getty) A few days into classes in August, students at the University of North Carolina at Chapel Hill were in panic mode. Covid-19 cases were breaking out in dorm rooms and frat houses at the…

Miami-Dade puts new airport in Homestead onto agenda

After years of negotiating, it’s time to make a deal to use Homestead Air Reserve Base land for Miami-Dade County aviation purposes, according to Commissioner Dennis Moss. Commissioners are to decide Oct. 6 whether to OK his resolution to direct Mayor Carlos Giménez to “expeditiously effectuate a joint use agreement with the United States of America to allow…

Idle arts center stages may become recording studios

With live and in-person performing arts productions at a halt, Cultural arts organizations are finding ways to put large empty theater stages to good use while fundraising initiatives continue. Doing everything possible to move forward and keep facilities operational, performing arts centers are consistently looking for permits, funds and grants to keep them afloat…

Beyond beetles and bats, is Miami Wilds deal best for us?

With Miami-Dade unemployment highest in 80 years and our visitor industry hurting as never before, a long-sought attraction that would add 300-plus jobs would seem heaven sent. Miami Wilds might be just that. But you can’t tell that from its press clippings. As a committee last week recommended a lease for the water park beside Zoo Miami for a full…

Flywheel Sports files for liquidation bankruptcy

Flywheel Sports and its affiliates have filed for bankruptcy, joining a list of fitness studio operators crushed by the coronavirus. The spin-cycle studio brand’s Chapter 7 filing would lead to liquidation of its assets. The documents were filed late Monday with the U.S. Bankruptcy Court in New York. Read more Dead weight: New York Sports Clubs owner files for…

Cushman partners with Industrious in bid to bring the office back

Cushman & Wakefield is betting big on co-working, even as millions of Americans have yet to return to the office amid the pandemic-imposed remote work revolution. The firm has teamed up with startup Industrious to help provide flex-office space for companies and individuals outside the corporate environment, according to the Wall Street Journal. The co…

South Florida by the numbers: Miami Heat back in the spotlight

“South Florida by the numbers” is a web feature that catalogs the most notable, quirky and surprising real estate statistics. Against the backdrop of a global pandemic and crackling racial tension, the Miami Heat find themselves back in the spotlight this month, with their first trip to the NBA Eastern Conference Finals since 2014. September…

The Compelling Math of Owning vs. Renting Commercial Property for Businesses

I find buyers commonly debating total monthly cash outlay to own versus that of renting in year one. Though I admire the cash-is-king disciple of this, I would submit that the projected net cost to own compared to that of renting is so attractive that is offsets they typically small differences in cash outlay at inception. After all, the difference, over time, tends to be…

Early economic effects from “safer at home” practices : What Census data from the Quarterly Services Survey can show us

Social distancing and “safer at home” practices have been in effect for many months now, so what do the data show us so far? These protective measures have had widespread effects across the economy; but some industries were affected much more quickly, as behavioral changes predated any official stay-at-home directives. Our first example is transportation revenue…

Developers buy land, score $25M loan for Target-anchored mixed-use project in Overtown

Michael Swerdlow and his partners’ planned Target-anchored, mixed-use development in Overtown is moving ahead, despite ongoing litigation. The developers, including Swerdlow Group, SJM and Alben Duffie, closed on the land for the mixed-use development at 249 Northwest Sixth Street in Miami, and scored $25 million to finance the purchase, according to a release.

“Anything and everything is negotiable”: Incentives for condo buyers mount in Miami

In early March, Residences by Armani/Casa’s developers hosted a blowout opening party, featuring a Giorgio Armani fashion show, a performance by Pitbull, and a fireworks display over the beachfront pool deck of the high-rise condo. Agents offered tours of the Sunny Isles Beach tower’s units and amenity spaces. Some attendees wore ball gowns, and the drinks flowed.

Amazon to open 100 more distribution centers this month

Amazon is riding the online-shopping boom brought on by the pandemic. The e-commerce giant plans to open 100 facilities, including fulfillment centers, delivery stations and sorting centers, in September, the Wall Street Journal reported. That’s on top of more than 75 others opened this year in the U.S. and Canada.

South Beach dev site with multifamily, retail hits market

A development site in the Flamingo/Lummus neighborhood of South Beach hit the market, and could sell for at least the mid-$30 million range, according to the listing brokerage. The site includes seven multifamily and retail buildings on 1.4 acres at the southwest corner of Washington Avenue and 16th Street in Miami Beach. It includes 98 apartments and about…

Authentic Brands in talks to join J.C. Penney takeover

Authentic Brands, one of the most active bidders on bankrupt retail, is joining a deal to take over J.C. Penney. The New York-based brand management company is reportedly in discussions with Simon Property Group and Brookfield Property Group to participate in their plan to rescue J.C. Penney, according to Business Insider…

DeSantis moves Miami-Dade, Broward counties into phase two

Florida Gov. Ron DeSantis announced Miami-Dade and Broward counties will enter phase two of reopening on Monday, but that doesn’t mean bars and nightclubs can open in South Florida. The move into phase two allows in-person schooling to begin in Miami-Dade and Broward counties, but does not force students to attend classes in person. For Miami-Dade County…

Mortgage rates notch new low

Mortgage rates sank to an all-time low — again. The average rate for a 30-year fixed-rate mortgage dropped .07 percentage points for the week ending Sept. 10, reaching 2.86 percent — a new low since Freddie Mac began conducting the survey in 1971. This time last year, the mortgage rates averaged 3.56 percent. Fifteen-year mortgages declined, too…

Drink up: Bars can reopen Monday in the Florida Keys — but not in rest of South Florida

Bar and brewery owners can drink to this: Florida will allow bars and breweries to reopen beginning on Monday at a reduced capacity. But the order, announced on Thursday evening, only applies to counties that have entered phase 2 of the state’s reopening, which excludes Miami-Dade and Broward counties. Bars and breweries in other counties in phase 2 will…

CMBS delinquencies fell, but hold the applause

The special servicing rate has increased each month since the coronavirus pandemic hit the United States, and clocked a 55 basis point increase to 10.04 percent in August (iStock) The delinquency rate for CMBS loans has fallen for two consecutive months. Save the party supplies for later, though, because there is still no reason to celebrate. Many CMBS lenders have…

Lender acquires TooJay’s out of bankruptcy

Florida restaurant chain TooJay’s Deli is emerging from bankruptcy with a new owner. The West Palm Beach-based deli filed for Chapter 11 bankruptcy in April as a result of the impact of the coronavirus pandemic, which forced restaurants to shut their indoor dining rooms down temporarily. When it filed for bankruptcy, the company had 28 locations.

Real estate donors backing Biden over Trump

As the pandemic continues to wreak havoc on real estate, industry donors are siding with Joe Biden over President Donald Trump, records show. They have so far given $17.1 million to the former vice president’s campaign and political action committees backing him, and $15.6 million to Trump, according to the Center for Responsive Politics, a nonpartisan research…

Estate Companies scores $36M construction loan for Soleste Spring Gardens

The Estate Companies scored a $36 million construction loan for an eight-story apartment complex in Miami’s Health District. Bank OZK provided the financing for Soleste Spring Gardens at 1033 Spring Garden Road in Miami, according to a press release. The 240-unit complex will offer studios, one- and two-bedrooms from 400 square feet to 1,100 square feet…

JPMorgan is calling employees back to the office

JPMorgan is heading back to the office. The bank, one of New York City’s largest employers, told senior employees in the sales and trading division that they and their teams are to return to the office by Sept. 21, the Wall Street Journal reported. By directing employees to return after months of working from home, JPMorgan’s message is clear: It’s safe to head back…

Bad breakup? Developer Vlad Doronin sues ex Naomi Campbell

Real estate developer Vlad Doronin is suing his ex-girlfriend, supermodel Naomi Campbell, for millions of dollars. Doronin, who develops projects in South Florida and New York, filed a summons in New York County Supreme Court on Friday. He alleges that Campbell wrongfully refused to repay loans that Doronin made to her and failed to return personal property valued…

Century 21 Stores files for bankruptcy, blames insurers

Century 21 Stores is the latest retailer to file for bankruptcy, and it blames insurance providers for its collapse. The New York-based off-price retailer filed for Chapter 11 bankruptcy on Thursday and announced it will wind down operations to close its 13 stores across New York, New Jersey, Pennsylvania, and Florida. The company said it was forced to file for…

Remote work threatens cash flows for office REITs

The rise of remote work puts cash flows for U.S. office real estate investment trusts at risk in the near and long term, according to a recent report from Fitch Ratings. Trepidation about the future of the U.S. economy has led companies to sign fewer and shorter leases, which hurts cash flows for office REITs in the near future. Moreover, the broader shift toward…

What is Going to Happen with Rent Payments?

The economic impacts of COVID-19 won’t be fully measured for quite some time, but one thing is clear: many commercial real estate owners aren’t receiving rental payments from tenants. Even as communities reopen, numerous restaurants, personal-service providers, and retailers don’t do enough business to pay their bills. Restaurants operating at 25% of…

Trump’s fair housing repeal roils multifamily developers

This summer, President Donald Trump put low-income residents on notice: The suburbs would be off-limits to them. His administration repealed an Obama-era rule known as Affirmatively Furthering Fair Housing — a moment amplified by a series of tweets from the president declaring victory for suburbs across the country. “I am happy to inform all of the people…

America’s Largest Landlord To Make $550 Million Bet On Trailer Parks

A decade ago, Blackstone Group Inc. became America’s largest landlord, purchasing tens of thousands of single-family homes during the foreclosure crisis. Now the private equity firm has spotted the next big opportunity as the virus-induced recession crushes the working poor, that is, betting on mobile-home parks.

Behind a Former South Miami Mayor’s Idea For Real Estate Climate ‘Restoration Bonds’

Politicians and developers in South Florida love to cheerlead about how great the region is, often brushing off concerns about climate change to instead talk about beautiful beaches and tax advantages. But Philip Stoddard, a Florida International University biology professor and the former mayor of South Miami, has a darker take. “My biggest concern is…”

Luxury Esgewater Condo Association Sues Airbnb While Platform Cracks Down On Parties

The condominium association of a luxury tower in Miami’s Edgewater neighborhood has filed a civil lawsuit against Airbnb, and several additional lawsuits against Airbnb hosts, over short-term rentals at the property. Transient renters have led to problems including a shootout in an elevator and increased costs for security, maintenance and insurance…

South Florida Shutts Attorney Martha Rabbitt Comments on Commercial Real Estate Deals during COVID-19

Four South Florida attorneys discussed the impact of COVID-19 on commercial real estate deals in an article titled “Wuhan, Florida: COVID-19 Slashes Commercial Real Estate Deals in Stricken South Florida,” published by the Daily Business Review. South Florida commercial real estate deals have decreased in sales and dollar value. “Lenders are being cautious…”

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I find buyers commonly debating total monthly cash outlay to own versus that of renting in year one. Though I admire the cash-is-king disciple of this, I would submit that the projected net cost to own compared to that of renting is so attractive that is offsets they typically small differences in cash outlay at inception. After all, the difference, over time, tends to be staggering.

Consider an example, the detailed calculations for which are above, using a property that would rent for $8,300 per month gross, plus sales tax, thus $8,839.50 total. Assume this same property could be purchased for $1,299,000, and that total expenses of owning are $40,000 per year. Also, assume 90% financing at 3.5%, which I believe is available now by way of SBA financing. Finally, let’s assume rent escalates 2% per year, as is somewhat typical in leases, that expenses also increase 2% per year and that the property will appreciate by this same 2% per year.

Calculating the all-in costs of renting is easy. It is just total rent and tax, escalated by 2% each year. This adds up to $1,161,481.

Calculating net cost to own is a bit more complicated, but not overly so. It does, however, rely on assumptions to estimate a number. The formula for this is: debt service + expenses – loan amortization – appreciation. The “minus appreciation” aspect is often overlooked. If you occupy a building for a number of years that you then sell for more, that gain should be considered as reducing cost of occupancy over the term. Likewise, a loss should be considered an increase in the cost of occupancy, thus this can cut both ways.

Continuing with this same example, net cost of owning over 10 years would net out to $503,905.59, as can be seen above. Notice that net cost to own is half the cost of renting in this example? Yeah. That is somewhat typical, by the way. Owner users (as buyers) commonly “step over dollars to pick up nickels” as they pay attention to right now without running calculations for a longer term.

Granted, the assumptions to get to cost of ownership are only that. Generally, however, any number a buyer might reasonably plug in results in the same favorable comparison for buying versus renting. It should also be noted that this does not take into account taxation. Under current tax rules, however, I believe that would only make ownership yet more attractive, as the gain may be taxed at lower capital gains rates.

IMPORTANT: This is provided on a best efforts basis only. It does not take into account all factors, notably income tax implications and costs to sell, and relies on assumptions that may not be correct or representative. Review with your accountant or professional advisor for specific guidance. Do not rely on this to make an investment decision. Finally, don’t hesitate to contact me if you notice any glaring errors, as I’d want to correct such.

The post The Compelling Math of Owning vs. Renting Commercial Property for Businesses appeared first on Hawkins Commercial Realty.

Michael Shvo’s proposed Miami Beach tower gets haircut and approval

The Miami Beach Historic Preservation Board approved developer Michael Shvo’s plans to add a residential tower behind the landmark Raleigh Hotel. But that tower won’t be 200 feet tall, as Shvo had proposed. Instead, following community outcry and a passionate plea from board chairman Jack Finglass during a meeting on Tuesday, the board shortened the…

Miami Beach’s Historic Preservation Board Approves $750M Mixed-Use Redevelopment Project

The Historic Preservation Board (HPB) of the City of Miami Beach has approved the three-acre master plan for the redevelopment of the historic Raleigh, South Seas and Richmond hotels. Real estate owner and developer Michael Shvo plans to fully restore the three properties and unify them as one site to be operated as a luxury hotel and condominium building.

Banyan Capital buys Doral office towers for $43M

A company with ties to Miami-based Banyan Street Capital bought a Doral office complex for $43 million, marking a discount from its last purchase price four years ago. The real estate investment firm bought the twin office buildings near the intersection of Northwest 36th Street and Northwest 87th Avenue, along with some adjacent properties, according to records.

Homestead Among Cities In At Least 25 States Vying for Headquarters Of U.S. Space Command

Space Force got all the attention when President Donald Trump announced it in June 2019, but there’s another federal military agency that was announced last year: U.S. Space Command. Whereas Space Force is a brand-new agency that will be part of the Air Force (like the Marine Corps is a part of the Navy) and have wide latitude, Space Command is technically a…

Miami Beach Trophy Building Signs Record-Breaking Office Lease

The Yukon Miami, a class-A commercial office building at 119 Washington Avenue in Miami Beach’s affluent South of Fifth neighborhood, has shattered office leasing records in Florida despite the Covid-19 pandemic and economically-challenging times – as reported by The Company Real Estate and The Global Consulting Organization. J. Goldman & Co., LLP, an…

Chart: Miami-Dade Commercial Property Sales Reach Highest Level of Year ~ August 2020 MLS

Looking at the chart of two year trailing closed sales of Miami-Dade commercial properties, both improved and vacant land, thus for the period from September 2018 to August 2020, sales reached the highest level of this year. Given that COVID really began to impact markets in February, these numbers thus could be said to exceed pre-pandemic levels. It must be…

Starwood loses control of US mall portfolio

It’s over for Starwood Capital Group’s U.S. mall portfolio. The real estate investment firm lost control of seven shopping centers after defaulting on Israeli bonds earlier this year, according to the Wall Street Journal. A ratings downgrade on the debt triggered a clause that allows bondholders to take control of the properties. Six parties — including Starwood…

J.C. Penney saved by Simon and Brookfield

J.C. Penney is saved. The retailer will be acquired by mall operators Simon Property Group and Brookfield Property Partners, avoiding liquidation. Simon and Brookfield will pay about $300 million in cash and assume $500 million in debt to buy J.C. Penney, according to the New York Times. Some of the stores and distribution facilities will be divided into two property…

Market-rate rent payments sink to lowest level since start of pandemic

September rent payments for market-rate apartments nationwide fell, the largest drop since the pandemic began in March. A survey of 11.4 million market-rate units found 76.4 percent of those households made a rent payment in the first week of September. It marked a 4.8 percent-point drop from the same time last year, representing 552,796 fewer households…

Miami-Dade mayor: Bars and nightclubs won’t reopen until there’s a vaccine

Bars, nightclubs and movie theaters will remain closed in Miami-Dade County, though some outside activities can restart, and the curfew has been extended an extra hour. Miami-Dade Mayor Carlos Gimenez announced that more outdoor activities will be allowed beginning next week, two weeks after indoor dining was allowed to resume. Zoo Miami and Jungle…

Sign of the times: Developers want to add industrial to redevelopment of Pompano casino

Two companies redeveloping the 232-acre Isle Casino property in Pompano Beach want to make a pandemic-based pivot to industrial space and shrink the office component. Cordish Companies and Caesars Entertainment want to change the zoning and approved land use for Isle Casino so they can include 1.5 million square feet of industrial space in their mixed-use…

Miami Beach, minus 80,000 Art Basel visitors, vows to save Art Week

The cancellation of Art Basel will cost the City of Miami Beach and Miami-Dade County millions in lost tax revenue and economic activity, but officials are working to ensure that some form of Art Week will still take place. Art Basel was scheduled for Dec. 3-6 at the Miami Beach Convention Center, but organizers announced Sept. 2 that it would be cancelled due to Covid-19…

Brew pub with shipping container on top targets historic building

One of downtown’s most historic staples, the Alfred I. duPont Building, could soon be home to a microbrewery and brewpub that would boast a cantilevered shipping container. The City of Miami’s virtual Planning, Zoning and Appeals Board heard plans last week for the 11,000-square-foot brew hub that would also feature an outdoor beer garden built atop the…

Series of snags adds four months to Miami-Dade courthouse construction

More than half a year after breaking ground, the builders of the new civic courthouse in downtown Miami have hit several snags that have added at least four months to the project’s timeline. A July report from Plenary Justice Miami, the development team behind the courthouse project, notes several setbacks that have pushed back the building’s opening from…

Miami River condo association alleges $10M in defects: lawsuit

The condo association for a Miami River project is suing a group of developers and subcontractors, alleging $10 million in design and construction defects. Terrazas Riverpark Village Condominium Association filed suit last month in Miami-Dade Circuit Court against more than 80 parties. The association alleges that unit owners only discovered the…

Miami Wilds water park near zoo flows toward county deal

A long-sought deal for a water park beside Zoo Miami is near, with terms between Miami-Dade and developers awaiting signatures. A county commission committee Friday is to review a lease with Miami Wilds LLC, the team behind Miami Wilds park, hotel and retail spanning 27.5 acres near the zoo and two museums. If it advances, the lease is subject to a…

250-truck concrete pour key step on I-395, Signature Bridge project

A parade of 250 trucks pouring concrete in a 12-hour span later this month will mark the next big step as the Florida Department of Transportation and the Archer Western – de Moya Group Joint Venture continue to make good progress on the I-395/SR 836/I-95 Design-Build Project. “Work continues around-the-clock on all three project corridors,” said Oscar Gonzalez III…

Retail rent payments inch back toward normal in August

A report shows major retailers paid 83 percent of August rent (iStock, Andy C via Wikipedia Commons) Retail landlords can celebrate as rent collections are slowly but surely returning to normal levels after months of lackluster payments. Major chains paid 83 percent of August rent, a new record, and only 14 percent below the nearly 97 percent that they paid during the…

Wall Street calls BS on apartment landlords’ rosy projections

Wall Street isn’t buying the rosy rent and occupancy predictions that many apartment landlords have been offering up. (iStock) Many apartment landlords across the U.S. maintain that tenants are paying rent, that occupancy remains high and all is going well. Understandably, investors are skeptical, according to the Wall Street Journal. The FTSE Nareit Equity…

Mondrian South Beach unit owners sue condo association and companies tied to Russell Galbut, alleging securities fraud

Russell Galbut, Mondrian South Beach A group of unit owners at the Mondrian South Beach sued the condo association and companies tied to developer Russell Galbut, alleging securities fraud. Fifty-one unit owners are each seeking $600,000, for a total of $30.6 million. They allege that a group of entities raised assessments and special assessments for…

David Martin’s Miami Beach Marina proposal heads to voters in November

David Martin and a rendering of the project Voters will decide if developer David Martin can redevelop the Miami Beach Marina into a high-rise, mixed-use tower. The Miami Beach City Commission on Wednesday agreed to send the proposal to a referendum in November. Martin’s Terra is proposing a tower of up to 385 feet in height, or about 38 stories tall.

Office is out, school is in: Co-working operators try to lure students into workspace

Laura Kozelouzek, CEO of Quest Workspaces, and a Quest classroom Office is out, but school is in session. Quest Workspaces, a co-working operator with 12 locations in Florida and New York, is turning some of its enclosed office space into small pods where groups of students can gather for virtual learning. The move comes as many school districts are opting to forgo…

Record-breaking surge in Covid cases spells trouble for South Florida’s hotel market

Jeffrey Soffer’s iconic Fontainebleau Miami Beach was among the first of the city’s hotels to reopen on June 1, after the majority were shut down for the entire month of May. The sponsors of the 1,500-room oceanfront resort — whose hallways have been graced by Elvis Presley, Lucille Ball, and more recently, Jennifer Lopez and Kim Kardashian West — spent hundreds…

Hot commodity: Investors bet on mobile home parks

As returns fade and uncertainty reigns in traditional commercial real estate sectors, investors are moving money into mobile home parks. More than $800 million worth of mobile home parks traded during the second quarter, according to Bloomberg. That’s 23 percent more than the volume sold in the second quarter of 2019. Meanwhile, total commercial trades declined 68…

Retail adds nearly 250K jobs in August

The retail sector added nearly a quarter-million jobs in August, notching the highest growth among private industries. General merchandising stores added 116,000 workers, while automobile and appliance sales each added about 20,000 positions. (Related: Fifth Wall’s Brendan Wallace on the need for a retail bailout) Overall, the American economy continued its recovery…

CRE is doing better in cities where tech dominates

In smaller U.S. metros, big tech can mean the difference between boom and bust for commercial real estate. That’s according to a recent report from the commercial mortgage-backed securities data provider Trepp, which tallied the top secondary metro areas using several key industry metrics. Trepp ranked those markets by average occupancy rate, CMBS loan delinquency…

Developers land loan for Dania Beach multifamily project

Merrimac Ventures brought on another developer and secured a $4.7 million loan, with plans to bring an eight-story, mixed-use multifamily project to Dania Beach. Fort Lauderdale-based Merrimac is now joined by Miami-based high-end apartment developer The Estate Companies. The 340-unit project, at 4 North Federal Highway, has been renamed Soleste…

TikTok, Clarice: Why the government’s moves against Chinese firms could hurt real estate

Trump’s crackdown on TikTok and WeChat could further chill Chinese investment in U.S. real estate. Daniel Chang’s phone wouldn’t stop lighting up. It was the night of Aug. 6, shortly after President Trump signed an executive order banning the ubiquitous Chinese social media platform WeChat. Chang, a prominent broker at Sotheby’s International Realty…

Saks Fifth Avenue countersues Bal Harbour Shops for defamation

Saks Fifth Avenue is striking back at Bal Harbour Shops for attempting to evict the luxury retailer over alleged missed rent payments. On Tuesday, the department store chain countersued Bal Harbour Shops and Matthew Whitman Lazenby, president and CEO of Bal Harbour Shops’ owner Whitman Family Development, for defamation, breach of contract…

Nearly 70% of CEOs expect to downsize offices: KPMG

The pandemic has drastically changed the way CEOs around the globe see the future of work. More than two-thirds said they may reduce their office footprint in the coming years, according to a recent survey. Out of 315 CEOs answering the survey published in KPMG’s “2020 CEO Outlook: Covid-19 Special Edition,” 69 percent checked the “We will be downsizing office…”

The pandemic’s impact on North American GDP: Checking on the neighbors

An earlier FRED Blog post discussed the global scale of the ongoing pandemic. Today, we focus on some recent GDP values in North America, comparing inflation-adjusted growth for Canada, the United States, and Mexico. The data shown in this FRED graph are from the Organization for Economic Co-operation and Development (OECD), which uses the label…

As stocks rally, real estate investors try to pick winners

Stocks have surged as the government and Federal Reserve has acted to stabilize corporate debt and sustain consumer demand. But returns for real estate investors have ranged from robust to wretched. Major U.S. indices climbed during August, with the Nasdaq and S&P 500 reaching record highs Wednesday despite a slower than expected comeback in the labor market.

Landlords and tenants blast CDC eviction ban

Jaime Cain, a real estate attorney in Rochester, New York, nabbed one of the first court dates for a pre-Covid eviction as trials slowly picked up after a months-long shutdown. But just two days before the scheduled conference, the federal government may have dashed those plans. “Is it still happening? Is it canceled? I don’t know,” Cain said of her day in court. Washington’s…

Simon Property Group livestreams merchandise in new partnership

Simon Property Group is going virtual. The nation’s largest mall operator is partnering with ShopShops, a livestream shopping app, according to the app’s founder and CEO, Liyia Wu. Read more Simon’s rent collection inches up in Q2 while profits plummet Rent relief for retailers is expiring. Now what? Mall owner CBL Properties nears bankruptcy “With experience and…

Miami Company Introduces ‘Virtual Coworking’

For people skittish about signing full-term office leases, coworking was supposed to be a flexible solution. Now, with an airborne pathogen complicating all aspects of life, people are even skittish about coworking. A number of coworking operators are experimenting with their formats. CommonDesk is offering virtual memberships for $75 to $150 that offer…

CVS, drive-thru bank in Margate fetch $7M

A CVS pharmacy and adjacent drive-thru bank building in Margate sold for $7 million. A company connected to Aleksandr and Ekaterina Dolganov of Osprey bought the properties near the intersection of State Road 7 and Coconut Creek Parkway, according to records. The seller — a company tied to Lawrence A. Freeman of Boca Raton — paid $6.85 million for the…

Developer plans multifamily project in Dania Beach

A rendering of the project A developer plans a 79-unit apartment building with ground-floor retail space in west Dania Beach. A vacant restaurant will be demolished to make way for the market-rate multifamily development to be called Griffin Living. It will be built on about 2 acres along the south side of Griffin Road, west of I-95. Dania Beach commissioners greenlighted the…

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