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Shops at Midtown Miami Sold, Has Over 3.4 million Annual Visitors

Benderson Development has completed the purchase of the Shops at Midtown Miami. JLL Capital Markets said it worked on behalf of the seller to complete the transaction. The property has a leasing rate of 98.3%, and attracts 3.4 million annual visitors. It opened in 2006. Tenants include Target, Ross Dress for Less, Dick’s Sporting Goods, Marshalls and HomeGoods.

With Purchase of The Shops at Midtown Miami, Benderson Again Grows South Florida Footprint

A Target store anchors The Shops at Midtown Miami. Image courtesy of JLL Benderson Development has purchased The Shops at Midtown Miami, a 347,740-square-foot, grocery-anchored retail center in Miami. SITE Centers sold the asset for $83.8 million in a transaction arranged by JLL. It was only a few days prior to this transaction that Benderson acquired…

Benderson bulks up South Florida retail portfolio with $84M Midtown Miami purchase

Benderson Development added a third South Florida retail property to its national portfolio, acquiring a big box center in Midtown Miami for $83.7 million. An affiliate of New York-based Benderson, led by President Randy Benderson, acquired Shops at Midtown Miami, a 347,740-square-foot building with a garage at 3401 North Miami Avenue, a press release states.

Benderson Development Acquires 347,740 SF Shops at Midtown Miami

Benderson Development has purchased Shops at Midtown Miami, a 347,740-square-foot infill power shopping center located at 3401 N. Miami Ave. in Miami. Danny Finkle, Eric Williams, Jorge Portela and Kim Flores of JLL represented the seller in the transaction. The seller and sales price were not disclosed, but South Florida Business Journal reports that SITE Centers Corp…

Construction Begins on La Maré Signature Collection at 9781 East Bay Harbor Drive in Bay Harbor Islands

Chicago-based Regency Development Group has officially broken ground on the first building of the La Maré Brand Collection, a residential development located at 9781 East Bay Harbor Drive in Bay Harbor Islands, Florida. This project was designed by renowned architect Kobi Karp, and its interiors were designed by the acclaimed Debora Aguiar Arquitetos.

Vertical Construction Now Underway At 606-Unit Worldcenter Tower

Vertical construction is now underway at 600 Miami Worldcenter, according to photos taken by Ryan RC Rea. Groundbreaking for the 32-story tower took place in March, when a site work permit was issued. A phased vertical permit was issued in May. The 606-unit tower is 100% sold, and the developers obtained a $95M construction loan earlier this year. All 606 residential units…

Okan Tower ‘Averaging Floor Per Week Vertical Rise’

Okan Tower is now “averaging a floor a week vertical rise,” according to contractor Jacob Companies. A photo posted to social media showed a line of concrete trucks ready for a pour, which took place at 4AM. The 70-story Okan Tower is eventually planned to reach a height of 902 feet in the air. It will be one of Miami’s tallest towers when it reaches completion, which…

Design District Building Approved By FAA At 330 Feet

The Federal Aviation Administration has issued a letter stating that a building planned on Biscayne Boulevard does not represent a hazard to air navigation. A description attached to the FAA filing states the proposed building development project is to be located at 3801-3833 Biscayne Boulevard in Miami. The approved height is 320 feet above ground, or 330 feet above sea level.

Here’s When Demolition On One Bayfront Plaza Is Expected to Begin

Demolition at One Bayfront Plaza is tentatively expected to get underway in early October, according to a memo posted to social media by @AllThings305. The memo was issued by the manager of an office building across the street. The first phase, which includes demolition of a garage and a portion of the structure closest to the street, is expected to last through December…

Baylink transit linking Miami Beach-Miami rolling ahead

A Baylink transit line between Miami and Miami Beach that has been a 40-year dream has cleared objections of the City of Miami Beach and a National Environmental Policy Act Review for an elevated Metromover on the MacArthur Causeway and is moving ahead. “We plan on moving this project forward expeditiously,” Josiel Ferrer-Diaz, deputy director and chief project delivery…

First new Smart Program rapid transit stuck in slow lane

The first route of the Smart Program to add six Miami-Dade transit legs was not elevated as some had hoped, but much of it sits up in the air as it nears two years past its initial completion date with nobody yet aboard. South Dade Bus Rapid Transit remains in construction, with opening targeted in next year’s second quarter. But the trust that doles out transit tax receipts to help…

Terreno Realty Corporation Announces Development Completion In Hialeah

Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced that it has completed the development and stabilization of Countyline Corporate Park Phase IV Building 39 in Hialeah, Florida effective September 30, 2024. Building 39 is 100% leased to one tenant. Building 39 of Terreno Realty Corporation’s…

New Renderings Of 65-Story Summit Brickell

New renderings and details have been filed for the Summit Brickell tower, which is currently moving through the approval process. Developers are seeking site plan and zoning approval for the tower, and filed a presentation with the county earlier this month highlighting the refined design. The 65-story, 750-foot tower is planned to include 505 residential units…

Elliott Strikes $450M Deal for Miami Office

Elliott Investment Management has struck a contract agreement for roughly $450 million to acquire a Miami office building, according to a report from The Real Deal. The asset, 701 Brickell Avenue, spans 687,000 square feet asset and was first opened in 1985 before undergoing renovation in 2021. The 33-story building now features floor plates, an art conference facility…

Foodmageddon: South Florida restaurant landlords experiencing record tenant turnover

Goat Hospitality Group is giving up on its Miami taco stand while the firm searches for a bigger spot. The Miami-based food and beverage firm recently put on the market its lease for Pilos Tacos at Paseo Brickell, a retail and restaurant center. Prospective restaurateurs interested in taking over a fully built-out 990-square-foot space with a kitchen and furnishings would pay…

43-Story Downtown Miami Tower Near Top Off, Permit Pending For Second

A downtown Miami apartment tower is now about five floors from topping off, new photos by Ryan RC Rea show. The 43-story tower is being built by developer Namdar. It wall have 680 apartments upon completion. Namdar is also now in permitting to build a second tower on the property with an additional 714 units, bring the total apartment count to 1,394 units.

Alliance HP acquires first Miami-Dade industrial site for $24M

Alliance HP made its first foray into Miami-Dade’s industrial submarket with a $24 million warehouse acquisition near Hialeah. An affiliate of Bryn Mawr, Pennsylvania-based Alliance HP and partner, Southern Star Shipping Co., bought Airport East Business Center, a 101,685-square-foot industrial building at 4201 Northwest 37th Court, records and real estate database…

Three New Retail Tenants Announced for Miami Worldcenter’s Expanding Commercial Space

Three new retail and restaurant concepts are set to open at Miami Worldcenter, the $6 billion, 27-acre mixed-use development reshaping Downtown Miami. The project’s ownership group has finalized leases with Go Greek Yogurt, HŸP, a sneaker and streetwear retailer, and SkinSpirit, a medical aesthetics clinic and spa. These additions are expected to open by early 2025.

Andrew Korge makes $28M offer for Location Ventures Coconut Grove dev site

Andrew Korge is aiming to drop $28.2 million for a former Rishi Kapoor development site in Coconut Grove that ignited the embattled developer’s legal troubles. Bernice Lee, a court-appointed receiver managing the assets of Kapoor’s defunct Coral Gables-based Location Ventures, is seeking a federal judge’s approval to sell a mixed-use building at 3120–3170 Commodore Plaza…

Construction Underway for Bay Harbor Towers at 10141 East Bay Harbor Drive in Bay Harbor Islands

PPG Development and L3C Capital Partners have officially broken ground on Bay Harbor Towers, an eight-story waterfront condominium at 10141 East Bay Harbor Drive in Miami’s Bay Harbor Islands. Designed by renowned architect Kobi Karp, the project offers luxurious living with modern architecture and unparalleled views. The residences’ sales started in late 2023…

Northwood Investors Acquires $160M Industrial Portfolio in Sun Belt, Including Miami

Northwood Investors has acquired a $160 million industrial portfolio located in Georgia, Florida and Texas. Totaling 1.8 million square feet… fully leased at the time of sale. The portfolio comprises three industrial buildings: Home Depot Cedar Port Distribution Center in Baytown, Texas; Havertys Distribution Center in Braselton, Ga.; and 10000 N.W. 15th Terrace in Miami.

The Brits are coming: Billionaires Simon and David Reuben are seeking majority stake in W South Beach for $400M-plus

British billionaires Simon and David Reuben are betting big on Miami Beach’s hospitality market, seeking majority ownership of the W South Beach for close to a half-billion dollars. Reuben Brothers, their eponymous London-based global investment arm, is negotiating a deal with the 395-room hotel’s current owners, Aby Rosen and David Edelstein, who lead New York-based…

West Eleventh Residences Breaks Ground at 18 Northwest 11th Street in Miami’s Park West Neighborhood

Developers Property Markets Group (PMG), Lion Development Group, and Marc Roberts Companies have broken ground on West Eleventh Residences in Miami. This 44-story project will feature 659 fully furnished luxury residences in the Park West neighborhood. It is designed with short-term rental flexibility in mind, allowing owners to host guests year-round…

Miami Beach board approves expanding Standard hotel

A star-studded group that includes billionaire developer Barry Sternlicht, architect Bjarke Ingels and hospitality CEO Miguel Isla Esteve secured approval to expand and renovate the Standard Spa, Miami Beach. Sternlicht, Ingles, Isla Esteve, Anthonio de la Rúa and Sebastian Sas are leading the redevelopment of the waterfront Venetian Islands hotel at 40 Island Avenue in…

Bridge lands $53M construction loan to redevelop ex-Ryder HQ in Miami-Dade, as industrial market chugs along

Bridge Industrial landed a $53 million construction loan to redevelop Ryder System’s former headquarters site in Miami-Dade County with a logistics complex. Chicago-based Bridge plans the 326,400-square-foot Bridge Point Flagler Station with a 128,800-square-foot building and a 197,600-square-foot building at 11690 Northwest 105th Street in an unincorporated area…

Bill Fuller and partners score nearly $13M settlement from city of Miami

Developer Bill Fuller and two partners extracted a $12.5 million settlement from the city of Miami stemming from… The complaint alleged the Miami-based company suffered $27.9 million in damages after its businesses, Ball & Chain bar at 1513 Southwest Eighth Street, and Taquerias El Mexicano restaurant at 521 Southwest Eighth Street, were forced to close due to…

C-III Capital pays $71M, scoring $25M discount for two Doral office buildings

Another South Florida suburban office property sold at a steep discount, as C-III Capital Partners acquired two Doral buildings for $25 million below the previous sale price seven years ago. An affiliate of Irving, Texas-based C-III Capital, led by CEO Andrew Farkas, acquired One Park Square at Doral, a 3-acre campus at 3470 Northwest 82nd Avenue, for $71 million…

Construction Starts on Luxury ‘Bay Harbor Towers’ at 10143 East Bay Harbor Drive

Construction has started on Bay Harbor Towers, an eight-story residential venture in the eponymous Bay Harbor Islands. Led by PPG Development, the community will offer 44 condos, offering two-bedroom to four-bedroom floorplans. According to Miami Residential Group, residences will measure 1,870 to 3,393 square feet, featuring floor-to-ceiling windows…

Adam Neumann’s Flow launches Miami condo sales

Flow, the apartment startup founded by Adam Neumann, is adding condominium ownership to its offerings in South Florida. Neumann is launching sales at Flow House, a 466-unit project in Downtown Miami. The residences at the 40-story development within Miami Worldcenter are expected to be delivered next year. The option for ownership under the Flow umbrella…

One West Twelve Residences in Overtown Gets Quick FAA Approval

Overtown’s One West Twelve Residences has been approved by the FAA, just a few weeks after it was submitted for review. The FAA approval allows the tower to be built at a permanent height of 300 feet above ground, or 314 feet above sea level. Approval was issued on September 23. The application was submitted on September 11. One West Twelve Residences is now also…

New Interior Renderings Released of North Edgewater 25-Story Elle Residences

Elle Residences has released new interior renderings of its residential units The One Atelier is leading interior design in collaboration with Elle. The 25-story development is planned to be built at the north end of Edgewater. It will include 180 residences, delivered move-in ready. Units will range in size from 450 to 845 square feet, with one or two bedrooms, and prices…

From London To Miami, Hedge Funds Are Buying Into Real Estate

Two of the world’s best-known hedge funds are taking on real estate deals in the UK and U.S. as financial investors spot an opportunity in the sector due to asset and share price declines. In the UK, GoldenTree Asset Management agreed to buy a listed property company that was in wind-down mode, and Elliott Management is continuing a London office buying strategy.

Photo: Signature Miami Bridge Arches Under Construction

A photo taken this week shows the Signature Bridge arches under construction in downtown Miami. According to a presentation to stakeholders his month, the project remains on schedule for completion in late 2027. The budget has also not changed recently, and remains at $840m. Photo is by Phillip Pessar.

Take a Tour of SoLé Mia, North Miami’s Mini-City

Situated on 184 acres near Oleta River State Park in North Miami, SoLé Mia is a $4 billion master-planned community that encompasses luxury living, nature, wellness, recreation, shopping, dining and more. The mini-city is rising at the intersection of NE 151 Street and Biscayne Boulevard, with three residential buildings—The Shoreline, Villa SoLé and Villa Laguna—already completed.

Report Names Miami A Top Destination For Those With 100M+

Miami remains a strong draw for individuals with a high net worth, according to a new report. New World Wealth and Henley & Partners listed the top “holiday hotspots,” where those with over $100m liquid investable wealth had primary or secondary homes. Miami was at the top of the list, with over 650 centi-millionaires having either primary or secondary residences.

Lease roundup: Italian restaurant Rosemary’s coming to Wynwood, Miami Worldcenter lands tenants

New York Italian restaurant Rosemary’s will open in Miami’s Wynwood neighborhood. New York-based hospitality firm Casa Nela leased 7,000 square feet at 310 Northwest 25th Street, where Rosemary’s will open in late fall, according to the tenant’s news release. Carlos Suarez is founder of Casa Nela, and Craig Giunta will be the executive chef at the Wynwood restaurant.

Eight-Story ‘Hollywood Oaks’ Planned for 4220 and 4226 N. 58th Avenue in Hollywood

New York-based Kushner Co. has a 5.7-acre site in Broward County under contract from 58 Oak LLC and 4220 N 58th Avenue Partners LLC. There, it hopes to build Hollywood Oaks, an eight-story mixed-use venture. The South Florida Business Journal reports that the project will feature 470 apartments, along with a seven-story parking garage with 813 spots.

Baptist Health wins approval for 100-bed hospital in Sunrise

Baptist Health South Florida won approval for a seven-story, 100-bed hospital in Sunrise — a city with a population of about 90,000 but no hospital. The Sunrise City Commission on Tuesday approved a site plan for the Baptist Health Sunrise Hospital and a special exception allowing hospital operations on the vacant 25-acre development site at 12401 West Oakland Park Boulevard.

128,550 SF Lake Shore Plaza II Office Building in Sunrise Brokered

CBRE has brokered the sale of Lake Shore Plaza II, a 128,550-square-foot office building located at 1300 Concord Terrace in Sunrise, roughly 19 miles west of Fort Lauderdale. Miami-based Galium Capital purchased the five-story property for an undisclosed price. Christian Lee, Sean Kelly, Amy Julian, Andrew Chilgren, Tom Rappa and Matthew Lee of CBRE represented…

Sunrise OKs density boost for massive Metropica project

Developer Joseph Kavana secured initial approval from Sunrise commissioners this week to increase the density of his long-planned, phased, mixed-use development called Metropica. The 65-acre master-planned project in western Broward County has been in the works for at least a decade. The site at 1800 Northwest 136th Street is sandwiched between the Florida Everglades…

Galium Capital snags Sunrise office building at deep discount, paying $17M

In a sign that office properties in South Florida suburbs are bargain deals, Galium Capital acquired a five-story building in Sunrise for $17 million, roughly half the previous sale price nearly a decade ago. An affiliate of Miami-based Galium, led by managing partners Jacques Bessoudo and Iser Rabinovitz, bought Lake Shore Plaza II at 1300 Concord Terrace, records and real estate…

Miami-Dade warehouse sold for $47M as part of portfolio deal

Northwood Investors acquired a distribution warehouse in Doral for $46.5 million as part of a three-building portfolio deal. UBS Realty Investors affiliate 10000 NW 15th Terrace Industrial Investors sold the 201,827-square-foot warehouse at 10000 N.W. 15th Terrace to NW FL Logistics LLC, part of Denver-based Northwood Investors. The price equated to $230 per square foot.

Tavistock begins closings on Pier Sixty-Six condos in Fort Lauderdale

Tavistock Group began closings on units in its Pier Sixty-Six condo project in Fort Lauderdale this week. The developer completed construction on its two-building, 31-unit Resort Residences this summer. Its 11-story, 29-unit, Azul condos recently received a temporary certificate of occupancy, and its 11-story, 28-unit Indigo building is expected to receive its TCO in the coming…

Suburban Fort Lauderdale Office’s Value Cut In Half In $17M Sale

A less than 20-year-old suburban Fort Lauderdale office building traded for $17M, nearly half the property’s previous $32M purchase price in 2013. Galium Capital purchased the five-story, 129K SF office building at 1300 Concord Terrace in Sunrise from a joint venture of Boston-based Barings and MassMutual Financial Group. North Miami-based New Wave Loans provided…

‘Salato Pompano Beach’ Moves Forward After Construction Loan at 305 Briny Avenue in Pompano Beach

In May 2023, Florida YIMBY reported on Salato Pompano Beach, a nine-story residential venture in Broward County. Now with the acquisition of a $73.8 million construction loan, it’s expected to break ground soon. Located on a 1.33-acre parcel, the high-rise building is slated for completion by the conclusion of 2026. Its 40 condos will measure 2,106 to 3,354 square feet…

Dermot is back in South Florida, scoops up 350-unit Wellington apartment project for $144M

Two years after splashing into South Florida to buy multifamily properties, Dermot Company added a Wellington apartment complex for $144.2 million. An affiliate of Dermot, a New York-based, multifamily-focused real estate investment firm, acquired The Quayle at Lake Circle, records and real estate database Vizzda show. The buyer assumed a $60 million State Farm mortgage.

Dermot Pays $144M for West Palm Beach Property

The Dermot Co. has bought The Quaye at Wellington, a 350-unit luxury community in Wellington, Fla. This acquisition further expands the company’s portfolio in the Sunshine State, where it already owns and manages 1,800 units. Stockbridge Capital Group sold the Class A asset for $144.2 million, according to Yardi Matrix information. In addition, the buyer assumed the outstanding…

Moody’s: Q3 2024 Preliminary Trend Announcement

Multifamily Performance Steadied, Office Stress Continued to Manifest, Retail Vacancy Declined, And Industrial Cooled Down The commercial real estate (CRE) industry received welcome news in September as the FOMC lowered the target federal funds rate by 50 basis points (bps) bringing expectations of continued relief in meetings ahead. The period of ‘higher for longer’ has…

Shortages mere days away as ports strike cripples shipping

A port strike from Maine to Texas that began Tuesday could lead to surcharges and inflation. The ripple effect raises concerns for many. “All of us in the warehousing portion of the business,” said Gary Goldfarb, chief strategy officer of Miami-based Interport Logistics, “have customers’ inventories that may last three, four, five, six days without additional freight, but then afterwards…

Video: LARC President Ryan Meliker Provides Hospitality Real Estate Update; Hotel Performance, Forecast

The dynamic landscape of the U.S. hotel industry was the focus of a recent episode of America’s Commercial Real Estate Show. The guest, Ryan Meliker, president of Lodging Analytics Research and Consulting (LARC), provided a deep dive into current trends, challenges, and opportunities shaping the hotel market. This article highlights key insights from their conversation…

With Pandemic-Era Excess Savings Depleted, What Lies Ahead for the Hotel Sector?

Highlights: Although excess pandemic-era savings have been fully depleted as of March 2024, Moody’s expects the Federal Reserve will navigate a soft landing for the U.S. economy with real GDP expected to increase by the mid-2% area in 2024 and the low-2% area in 2025.With non-financial assets such as real estate holdings and vehicles accounting for a larger share…

Office Loan Maturity Monitor: Maturities Picked Back up in August

Highlights: $2.5 billion CMBS office loans reached fully extended maturity in August, the highest monthly total since we started tracking in January 2023. The payoff rate was strong, at 56.9%. Maturities with debt yield above 8% and limited lease rollover continued to exhibit the strongest performance Although several large loans paid off in August, smaller loans continue to pay…

Report: More Than 8 in 10 CEOs Think Hybrid Work Will Be Dead Within 3 Years

Office usage across the 10 largest metro areas is still at roughly 60.5% of prepandemic levels, according to Kastle Systems’ keycard swipe data. But most CEOs think the era of remote work is coming to an end. In a survey of 1,300 global CEOs conducted by KPMG, 83% said they expect their companies will shift back to requiring five days of office attendance sometime in the next…

Vape Shops Caught Fire Nationally. Now Regulations Could Smoke Them Out Of Existence

Cities and towns across the country have watched a proliferation of vape shops waft across the landscape over the past half-decade, and Sugar Land, Texas, is no different. With about a dozen stores primarily selling electronic cigarettes and accessories, the city is part of a fast-moving retail trend that saw the number of electronic cigarette stores grow almost 20% annually…

Sizing up Hurricane Helene’s expected multibillion-dollar damages, effects on insurance market

As Hurricane Helene churned toward Florida, property owners and insurers braced for the impact from another devastating and costly storm. The Category 3 hurricane, which is expected to make landfall Thursday evening in the Big Bend region of Florida as a Category 4, could cause catastrophic storm surge of up to 20 feet above ground in some areas, according to the National…

Despite Helene’s Record Size And Strength, Property Insurance Market May Weather The Storm

Hurricane Helene continued to punch across three states Friday as a weakened tropical storm after making landfall along Florida’s Big Bend region Thursday night. Professionals across the commercial real estate and insurance industries woke up Friday morning to assess the devastation, which is expected to total billions of dollars. As of Friday evening, at least 25 people across…

U.S. Apartment Market Sees Negligible Change in August

Stability continued to be the key storyline in the U.S. apartment market in August. U.S. apartment occupancy remained stable at 94.1% in August, marking the 10th consecutive month of occupancy straying no more than 10 bps in either direction. In fact, the difference between July (94.16%) and August (94.13%) looks to be incorrect when viewing the data on a chart because…

The post Miami Commercial Real Estate News October 2, 2024: Shops at Midtown Miami Sells for $84M, Pair of Doral Office Buildings for $71M; Miami Top Destination for Those with $100M+; More… appeared first on Hawkins Commercial Realty.

The dynamic landscape of the U.S. hotel industry was the focus of a recent episode of America’s Commercial Real Estate Show. The guest, Ryan Meliker, president of Lodging Analytics Research and Consulting (LARC), provided a deep dive into current trends, challenges, and opportunities shaping the hotel market. This article highlights key insights from their conversation, offering a detailed look at the performance of different hotel segments, the impact of business travel, the resurgence of conventions, and predictions for market growth and investment.

Winners and Losers in the Hotel Industry

Meliker started by explaining that the hotel industry, like many other real estate sectors, has seen a bifurcation in performance, with clear winners and losers. Certain markets and asset classes are performing exceptionally well, while others are struggling. He pointed out that large group-oriented hotels and properties benefiting from international inbound travel have seen a notable rebound, especially in urban areas. Meanwhile, hotels catering to domestic leisure travel, particularly in beach markets like Myrtle Beach and Virginia Beach, have witnessed a moderation in demand after a strong pandemic recovery.

Business Travel: Recovery Still Lags

A significant topic of discussion was the state of business travel, which has been slow to recover fully. While business travel is better than it was in 2021 and 2022, it remains about 10% below pre-pandemic levels. Meliker emphasized that the shift to remote work has had a profound impact on corporate transient demand, as fewer employees are physically present in offices. This has led to shorter and less frequent business trips, mirroring the lower occupancy rates in office buildings.

Convention Business Booming

In contrast, the convention sector has shown strong growth. Meliker explained that group travel is doing particularly well, in part due to the remote work culture. With employees not spending as much time in offices, conventions and in-person gatherings have become more valuable as opportunities for teams to collaborate and network. Convention bookings across the 30 largest centers in the U.S. are up 4% in 2024 and expected to rise another 3% in 2025. This growth trend is expected to continue over the next five years, providing a positive outlook for urban hotel markets.

Trends in Hotel Rates and Valuations

When it comes to average daily rates (ADR), the hotel sector has seen slow but steady growth. Higher-end hotels have performed better, thanks to the recovery in corporate transient and group segments. However, lower-end hotels have struggled due to the slowdown in domestic leisure demand. Meliker projected a modest uptick in ADR growth of around 3% in 2025, supported by improving consumer confidence and stable demand.

Valuations in the hotel market are also trending upward, driven by modest growth in cash flow and easing cap rates as interest rates stabilize. Meliker pointed out that while transaction volumes were slow in early 2024, they are picking up and could see significant improvement in 2025. However, the ability of buyers and sellers to agree on pricing remains a critical factor for deal completion.

New Hotel Supply Remains Muted

A key takeaway from the conversation was the limited growth in new hotel supply. Over the next five years, hotel supply is expected to grow at a compound annual rate of just 1%, far below the long-term average of nearly 2%. This slower pace of development is a positive factor for existing properties, as demand growth is expected to outpace new supply, giving hotels more pricing power. However, Meliker warned that certain markets, such as Atlanta, could face oversupply challenges if large-scale developments significantly increase hotel room inventory.

Markets to Watch: Las Vegas, Puerto Rico, and Seattle

Meliker highlighted several markets that he believes are poised for strong growth. Las Vegas, long known as a gambling destination, is rapidly transforming into a sports and entertainment hub, with events like Formula 1, the Super Bowl, and a growing roster of professional sports teams driving demand. Puerto Rico also stands out due to substantial federal investment in its energy infrastructure, which is expected to remove significant barriers to real estate investment, including hotels. Lastly, Seattle’s combination of strong convention bookings, international travel, and Amazon’s recent decision to bring employees back to the office full-time makes it an attractive market for hotel investment.

Markets Facing Challenges: Austin

Not every market is experiencing a boom. Austin, a city that has seen rapid growth in recent years, is facing significant headwinds. The closure of its convention center for at least five years is expected to have a substantial negative impact on the local hotel market. In addition, the rising costs associated with union labor in major urban markets like San Francisco, Los Angeles, and New York are adding pressure on hotel operators, making profitability more challenging.

The Impact of the 2024 Presidential Election

Looking ahead, the upcoming U.S. presidential election is likely to influence hotel demand. Historically, election years have been associated with slower GDP growth, reduced business investment, and lower demand growth in the hotel sector. Meliker pointed out that while the results of the election itself are important, the broader economic policies that follow—such as tax cuts or changes to healthcare subsidies—could significantly impact hotel performance.

Conclusion: Pay Attention to Market-Specific Drivers

Ryan Meliker’s parting advice for hotel investors was to focus on the specific drivers of demand in each market. A one-size-fits-all approach will not work in the hotel industry, as different markets are driven by unique factors such as conventions, business travel, or leisure tourism. Understanding the nuances of each market and asset class is key to making wise investment decisions in this complex and ever-evolving sector.

This episode of *America’s Commercial Real Estate Show* provided a comprehensive look at the trends shaping the hotel industry, offering valuable insights for investors, operators, and anyone with an interest in commercial real estate.

The post Video: LARC President Ryan Meliker Provides Hospitality Real Estate Update; Hotel Performance, Forecast appeared first on Hawkins Commercial Realty.

Developer Moves Forward with Plans for 7,500-Unit Mixed-Use Development and New Tri-Rail Station in Miami’s Little River District

Swerdlow Group, led by veteran developer Michael Swerdlow, is moving forward with plans to transform the Little River District in Miami’s Little Haiti neighborhood. The proposed development, spanning approximately 63 acres, will include 7,500 residential units, combining affordable, workforce, and market-rate housing. Swerdlow’s vision for the area builds on his…

Developer Planning 7,500 Units In Little River, Will Build New Tri-Rail Station

Swerdlow Group is advancing plans for a massive project in Little River, according to Multi-Housing News. The development will include approximately 7,500 residential units, with a mix of affordable, workforce and market-rate housing. The affordable units will be higher end and look like market rate apartments, similar to Swerdlow’s recently completed Sawyer’s Walk…

$103 Million Loan Secured for Mixed-Use Development ‘The Gardens Residences’ in North Miami

Berkadia has arranged a $103 million construction take-out loan for The Gardens Residences, a mixed-use multifamily project in North Miami being completed in two phases. The financing was secured by Berkadia’s Senior Managing Director Charles J. Foschini, Managing Director Christopher Apone, Vice President-Originations Lourdes Carranza-Alvarez, and Associate Director…

659-Unit Condo Tower West Eleventh Residences Breaks Ground, Nearly 100% Sold (New Renderings)

The 44-story West Eleventh Residences is now officially under construction, and almost the entire building was sold before groundbreaking. The developer told the SFBJ that just nine condo units remain to be sold, out of 659 available. The new 482-foot tower will include: 659 condo units 30,000 square foot, tri-level experiential entertainment venue 4,840 sf…

New Permitting Activity At 41-Story HUB Miami

There is now permitting activity this week for the the 41-story HUB Miami tower site. A site work permit went into prescreening with Miami’s Building Department on September 24. The site work permit was first applied for in May 2023, but later moved to inactive status. It was reactivated on September 20, with a note stating that the soil permit was ready to be submitted.

Commuter Train Service Between MiamiCentral & Aventura To Enter Engineering Phase

Brightline has provided an update on the commuter rail service planned on its tracks, known as the Northeast Corridor. The project is expected to formally move to the engineering phase in October 2024, according to a development update released to investors on September 20. Brightline said it has substantially completed negotiations with Miami-Dade County…

Romero Britto buys his art studio in Miami’s Little River

Brazilian artist and sculptor Romero Britto purchased his biggest gallery piece, his company’s headquarters. Britto paid $11.8 million for the 58,000-square-foot art studio at 795 Northwest 72nd Street in Miami’s Little River neighborhood, according to a press release. Real estate investor Joe Del Vecchio sold the property. The Britto Group creates artwork for consumer goods…

Developer Seeks Funding for ‘Flagler Villas’, Planned for 5215 West Flagler Street in Coral Gables

An affordable housing developer is seeking funding for a 60-unit complex in Miami-Dade County. Flagler Villas would comprise 60 affordable residences, reserved for seniors earning up to 30 percent of the area median income (AMI). At the time of publication, Miami-Dade County reported that a one-person household would have to earn $23,850 a year to qualify.

Citadel Tower Submitted At Taller 1,032′ Height

Citadel’s new supertall headquarters tower has been submitted for site plan review, at a taller height. In late August, the plans were submitted to Miami-Dade for zoning review showing a height of 1,032 feet above sea level. Zoning review is currently in process. With the new site plan filing on September 23, the height has been increased to 1,049 feet above sea level.

You Can Now Watch Live As The 56-Story Casa Bella Tower Rises

A webcam showing construction of the 56-story Casa Bella Residences by B&B Italia tower is now live and available on YouTube. The webcam was created by Ryan RC Rea. You can expect to see lots of activity on the feed. Crews now appear to have reached the typical residential floors, where shell construction typically moves fastest. A groundbreaking ceremony…

Bal Harbour Condo Tower Designed By SOM Breaks Ground

In Bal Harbour, a 24-story condo tower designed by Skidmore, Owings & Merrill is now under construction. A ribbon-cutting ceremony was held on September 20 to celebrate groundbreaking. It will include 56 ultra-luxury units “Designed to provide a single-family home experience,” with private elevators and garages. Units will range in size from 3,300 to nearly 13,000 sf.

Elliott buying Brickell office tower for $450M, as hedge fund amplifies its South Florida investments

Paul Singer’s Elliott Investment Management is under contract to puvrchase the 701 Brickell office tower in Miami for about $450 million. The deal marks the New York-based hedge fund’s expanding investments in South Florida. Elliott is buying the 33-story tower at 701 Brickell Avenue in Miami from New York-based Nuveen Real Estate, according to a source.

Blackstone subsidiary nabs $95M loan for Medley industrial complex

Link Logistics secured a $95 million loan for a quartet of recently completed warehouses in Medley. An affiliate of New York-based GID provided the loan to Link Logistics, the industrial real estate subsidiary of investment giant Blackstone, led by CEO Stephen Schwarzman. Both firms are headquartered in New York. The mortgage is secured by Palmetto 74 Logistics Center…

Ansin family’s Sunbeam buys North Bay Village condo complex

The billionaire Ansin family’s Sunbeam Properties paid $8 million to complete a bulk purchase of an aging condo complex in North Bay Village. Sunbeam acquired the 24-unit, six-building Treasure Island Cove property at 1631 North Treasure Drive, said Andy Ansin, president and CEO. The acquisition equates to about $333,000 per condo. Treasure Island Cove was built…

Future Of $4B American Dream Miami Clouded Amid Lawsuit Over Land Sale

Nearly a decade after it was first proposed, the American Dream Miami mall remains just a dream, and its future is getting more uncertain. Triple Five Group, the Canadian development firm that proposed the 6M SF retail and entertainment complex outside of Hialeah, recently filed a lawsuit to keep alive its plan to purchase a large segment of the site to make way…

Miami Beach won’t raze Jackie Gleason Theater

Miami Beach has rejected a call to tear down and replace the landmark Fillmore Miami Beach at Jackie Gleason Theater but now must decide what to do next and who’s going to pay for it. Commissioners this month asked administrators to talk with Live Nation, the theater’s operator, to decide whether to tear out the interior and start over or just renovate what’s there…

283-Unit River District 14 Condo Project Gets $78M Construction Loan

River District 14 has obtained construction financing. Forman Capital granted a $77,805,708 loan to an affiliate of Alta Development. River District 14 will include two 16-story towers with 283 fully furnished condo units, allowing short term rentals. More than 50% of units have been sold. “The new construction condominium market continues to sizzle, and residences…

$77.8 Million Loan Secured for Short-Term Rental Condominium Project in Miami’s River District

Forman Capital, a private direct real estate lender, has provided a $77.8 million loan to finance the construction of River District 14, a short-term rental condominium project in Miami. Developed by Alta Development, the project will be situated on a 1.3-acre site at 1420 NW 14th Ave., near the Miami River. Construction is set to commence before the end of the year….

Developers Propose 42-Unit ‘River Square’ for 2655 N.E. 205th Street in Miami

Two Sunny Isles Beach-based developers have proposed a mid-rise housing complex in Miami-Dade County. The South Florida Business Journal reports that the venture, known as “River Square”, would measure eight stories above grade and offer 42 apartments. The one-bedroom and two-bedroom residences would span 677 to 1,056 square feet. The publication notes that…

Developer proposes 42-unit multifamily project in Ojus, amid record South Florida apartment pipeline

A developer proposes a 42-unit multifamily project in Ojus, amid a record apartment construction pipeline in South Florida. Entities managed by Jacobo and Fortuna Toledano of Sunny Isles Beach want to build the eight-story building on a 0.7-acre assemblage on the southwest corner of the Florida East Coast Railway tracks and Northeast 206th Street in unincorporated…

Solina Bay Harbor Breaks Ground at 1055 93rd Street in Bay Harbor Islands

Solina Bay Harbor, a boutique condominium development by RedHoek+, has officially commenced construction after surpassing the 50% sales milestone within six months. Located at 1055 93rd Street in the heart of Bay Harbor Islands, this exclusive project is set to redefine the standard of luxury living in the area. In partnership with The INSIDE Network, sales and marketing…

Little River Tower Submitted To FAA, Demolition Permit Issued

A tower planned in Little River under Florida’s Live Local act is advancing. Miami’s Building Department issued a total demolition permit for the property on September 9, records show. On September 17, the FAA received a submission showing a proposed structure height of 360 feet above ground, and 368 feet above sea level on the property. The 28-story tower had a hearing before…

South Miami Moves Forward With $309M Transit Oriented Development

South Miami commissioners voted Tuesday to move forward with a redevelopment at its City Hall property. The development will be transit oriented, according to a presentation to commissioners. It is a short distance from a Metrorail station. There will be two phases to the $309m development. Combined it will have: 70,000 square feet of civic space…

13th Floor will redevelop South Miami city hall with 670 apartments, new municipal building

13th Floor Investments will redevelop South Miami’s city hall with a mixed-use project that will include 670 apartments and a new municipal building. On Tuesday, city commissioners voted to select the Coconut Grove-based firm as the developer. The $309 million project, called Link at SoMi, will be on the 4.5-acre site 6130 Sunset Drive. Link at SoMi will include…

Inside Miami’s Milestone Senior Housing Project, Block 55 at Sawyer’s Walk

More than 90,000 units are needed in Miami-Dade County for renters earning below 80 percent of the area median income—which is roughly $75,000—according to an analysis released earlier this year by nonprofit Miami Homes for All. And seniors are among the most cost-burdened population. One project that caters to this vulnerable segment recently opened in the Overtown…

“Miami has jumped the shark”: Analyzing South Florida’s office sales slump

South Florida real estate players became giddy in recent years over the influx of businesses and ensuing office leasing spree at record rents. The bonanza prompted an investment sales flurry, with buildings from Brickell to Boca Raton trading at ever-rising prices. But that party ended. The Federal Reserve imposed 11 aggressive interest rate hikes, lenders turned skittish…

Miami Office Deal Volume Increases, Prices Surge

Miami’s office market continued its good performance recorded at the beginning of the year, CommercialEdge data shows. The metro’s significant development pipeline was coupled with heightened investment activity, as assets changed hands at high prices. The Offices at 601 is the most recent office project delivered in Miami as of August. The Offices at 601 is a recently…

Waldorf Astoria’s Miami Supertall Tower Now Several Floors Up

Waldorf Astoria’s 1,049-Foot Miami supertall tower is rising vertically out of the ground, photos by Ryan RC Rea show. Second-level columns appear to have been poured as of early September. A foundation pour for the tower was completed in June, and the developers obtained a record-breaking $668M construction loan that same month. Completion of the tower…

What is happening to Shops at Sunset Place? Future of South Miami mall takes new path

It’s déjà vu for a South Miami landmark on the verge of disappearing and turned into the next big thing. We’ve seen this a few times before on the 10-acre property at Red Road, Sunset Drive and U.S. 1. First, a beloved bakery plant, where Holsum doughnuts and bread sent up the most heavenly of scents, cleared the way for a mixed-use center called Bakery Centre.

Omega scores $103M refi, bridge loan for North Miami apartment project, as South Florida financing flows

A developer scored a $103 million loan for a nearly finished apartment project in North Miami, marking a continuing surge in South Florida lending. Omega Real Estate Management landed the financing, which consists of a construction loan refinancing and a bridge loan, for the 358-unit Gardens Residences at 1155 Northeast 126th Street, according to Berkadia’s Charles…

Lost sizzle: BurgerFi vacates four South Florida restaurants and corporate office as part of bankruptcy strategy

BurgerFi is cutting the fat from its real estate, abandoning leases at four South Florida restaurants and its corporate office in Fort Lauderdale. The fast food chain, which also owns Anthony’s Coal Fired Pizza, abandoned leases for its headquarters at 200 West Cypress Creek Road, three BurgerFI spots in Pembroke Pines, Jupiter and Delray Beach and a pizzeria in Hallandale…

Lease roundup: Toscana Divino making a comeback in Key Biscayne, Christmas pop-up on tap in Coral Gables

Italian restaurant Toscana Divino, once a staple at Mary Brickell Village, will re-open as a pop-up in Key Biscayne. Toscana Divino Hospitality Group leased retail space at the Towers of Key Biscayne residential condominium at 1121 Crandon Boulevard, according to the tenant’s news release. The pop-up will be open on Fridays and Saturdays starting Oct. 4, Eater Miami…

Nurock Cos. Proposes ‘the Residences at Foxcroft Cove’ for 3300 Foxcroft Road in Miramar

In January 2023, Florida YIMBY reported on a project we knew then as “Foxcraft Estates”. Led by Pinnacle, the venture called for 84 homes on a 2.13-acre site. Yet, the developer didn’t close on the land acquisition, so the project never came to fruition. Now, we have an exciting development regarding this affordable housing venture. The South Florida Business Journal…

Developers plan 500-unit resi project on Fort Lauderdale church property, as religious site redevelopment becomes canon in South Florida

A development partnership proposes a 500-unit residential project on a 3.2-acre assemblage in Fort Lauderdale that includes a church, as redevelopment of religious sites surges in South Florida. Tal Levinson and Eric Malinasky’s preliminary plan is for a pair of six-story buildings with about 400 units to 500 units and ground-floor retail on the southwest corner of Northwest…

Cleared for landing: Patrick Bet-David pays $25M for Broward office building and airplane hangar

Patrick Bet-David is ready for takeoff after paying $25 million for a Fort Lauderdale office building and airplane hangar. An entity tied to Bet-David acquired the mixed-use project at 1200 and 1400 Northwest 62nd Street in a bankruptcy sale, records show. Bet-David is an author and social media influencer with more than 10 million followers on Youtube, X, Instagram…

Related, BH score approval for larger Plantation mixed-use project

Related Group and BH Group are planning a larger mixed-use project in Plantation than the joint venture previously envisioned. On Tuesday, the city’s planning and zoning board approved a site plan for Plantation City Center, a complex featuring 512 apartments and townhomes, 24,970 square feet of retail space and 833 parking spaces. The joint venture had previously…

Urban League advances plan for 469-unit affordable housing development in Oakland Park

The Urban League of Broward County expects to break ground next year on Village at Oakland Park, a 469-unit affordable housing development that will include for-sale townhouses west of I-95 in Oakland Park. The Oakland Park City Commission on Wednesday rezoned the 19.7-acre development site, on the northwest corner of Northwest 21st Street and Northwest 26th…

Sienna Motors expands in Pompano Beach, buys shuttered dealership for $22M

Sienna Motors is expanding in Pompano Beach, acquiring a shuttered dealership less than a block away from its existing auto sales site for $21.9 million. An affiliate of Sienna, led by CEO Claude Senhoreti, acquired the former home of defunct Pompano Ford Lincoln at 2714 North Federal Highway, and an adjacent retail strip plaza at 2860 Northeast 17th Avenue…

Boca Raton Approves Glass House at 280 E Palmetto Park Road in the City’s Downtown Area

The City of Boca Raton has approved Glass House Boca Raton, a luxury residential development and the first modern glass building to be constructed in the city’s downtown area. Situated at 280 East Palmetto Park Road, the 9-story development will feature rooftop amenities on the 10th level and is expected to reach completion by the fourth quarter of 2026. Sales for the 28-unit…

Mill Creek Residential Proposes ‘Modera Boca’ for 400 South Dixie Highway in Boca Raton

Boca Raton-based Mill Creek Residential could replace a mixed-use building with a 12-story residential venture in Palm Beach County. Modera Boca would comprise close to 330,000 square feet of leasable space. The South Florida Business Journal reports that there would be 304 homes in six different floorplans, featuring studios, lofts, and multi-bedroom units.

Boca Raton approves Anthony Perera and ASG’s Glass House condos

Anthony Perera and ASG Development won approval from Boca Raton for their planned Glass House condos. Groundbreaking for the nine-story, 28-unit project at 280 East Palmetto Park Road is slated for early 2025, according to a press release. Douglas Elliman Development Marketing is leading sales for Glass House, which launched in February with prices ranging…

JV buys Delray Beach hotel for $58M, amid resurgence of hospitality investment sales

A joint venture scooped up the Ray Hotel Delray Beach, Curio Collection by Hilton for $57.7 million, marking a resurgence of hospitality investment sales. Tmgoc Ventures and Certares Management bought the four-story, 141-key hotel at 233 Northeast Second Avenue, according to records and real estate database Vizzda. The property’s sale price according to the deed…

Ventas expands South Florida health care portfolio with $37M Riviera Beach hospital purchase

Ventas bulked up its South Florida hospital portfolio after paying $37 million for a 79-bed facility in Palm Beach County. An affiliate of Ventas, a Chicago-based, health care-focused real estate investment trust led by CEO Debra Cafaro, acquired Kindred Hospital The Palm Beaches at 5555 West Blue Heron Boulevard in Riviera Beach, records and real estate database…

CS Ventures buys Worth Avenue luxury storefronts for $30M

Spencer Schlager and Charles Rosenberg’s CS Ventures bought six Worth Avenue luxury storefronts for $30.3 million. The investment firm bought the 8,500-square-foot retail building at 243 Worth Avenue from Middleburg, Virginia-based Greenstone Realty Advisors, records show. The building, built in 1925, is center stage on the island’s luxury shopping corridor.

Senior Housing Asset in Lake Worth Trades for $64M

Focus Healthcare Partners has bought Mariposa, a senior housing community in Lake Worth, Fla. Ventas sold the asset for $63.8 million, and a seven-year, $48 million fixed-rate acquisition loan from Freddie Mac was involved, according to public records. JLL Capital Markets represented the seller and procured the buyer. Arbor Senior Living is the new property manager.

Video: RealPage Director of Research & Analysis Provides Multifamily Market Update; Occupancy, Performance, Wildcard Markets

In a recent episode of America’s Commercial Real Estate Show, the show’s host engaged with Carl Whitaker, Director of Research & Analysis, Market Analytics at RealPage, to discuss the multifamily housing market. Their conversation explored current trends, market forecasts, and challenges facing multifamily properties in the U.S., offering valuable insights…

America Needs More Affordable Housing, Not Just Class A Inventory

Highlights: After eight consecutive FOMC meetings of holding the federal funds rate steady at a 23-year high, the Federal Reserve lowered its benchmark policy rate by 50-bps to the target range of 4.75% to 5.0%.The notion of ‘higher-for-longer’ is well in the rear view mirror as the focus on the Fed’s dual mandate has shifted away from price stability to maximum employment.

How interest rate cuts could impact commercial real estate

The Federal Open Market Committee (FOMC) lowered its benchmark by 50 basis points—the first rate cut in over four years—bringing the target federal funds range to 4.75%–5.25%. The Fed indicated it will continue to decrease interest rates, but the timing and pace of rate decreases will depend on multiple factors, including inflation and other future economic data.

Using bridge loans with agency financing in multifamily

Bridge loans and agency loans can be a powerful combination for multifamily investors. A bridge-to-agency execution pairs flexible short-term capital with competitive long-term financing to help investors implement a business plan with an eye to locking in long-term fixed rates. “Our goal is to provide clients with as many options as possible and let them choose what’s best…

Protect data and residents with multifamily technology

While apartment safety and security is wide ranging, it can be divided into two categories: data security and physical security. Multifamily technology is key to addressing both. Multifamily technology for data security. Multifamily technology can help organizations improve data security by providing real-time visibility into cash flows. The same technology can help prevent rent…

The post Miami Commercial Real Estate News September 25, 2024: 7,500-Unit Little River MXU with New Tri-Rail Station Plans Advancing; South Miami City Hall to be Redeveloped with 670 Apartments; More… appeared first on Hawkins Commercial Realty.

In a recent episode of America’s Commercial Real Estate Show, the show’s host engaged with Carl Whitaker, Director of Research & Analysis, Market Analytics at RealPage, to discuss the multifamily housing market. Their conversation explored current trends, market forecasts, and challenges facing multifamily properties in the U.S., offering valuable insights for investors, developers, and industry professionals. The discussion was national in scope, and thus may apply less to the Miami and other South Florida markets.

Multifamily Market Performance: Current Trends

Whitaker pointed out that despite economic uncertainty, demand for multifamily housing remains strong. During the first half of 2024, the number of multifamily units absorbed matched the levels seen in 2021, a year that many considered an exceptional period for housing demand. However, Whitaker noted that while demand remains robust, the U.S. is experiencing a 40- to 50-year peak in new supply. This increase in supply is putting downward pressure on rent growth and keeping occupancy rates in the lower 94% range, which some industry veterans still consider healthy.

The show host and Whitaker also discussed how the high volume of new developments—many initiated in 2021 and 2022 before interest rates surged—could delay a return to historically normal occupancy rates for another 12 to 24 months. This reflects a broader trend of the market adjusting to post-pandemic realities while absorbing the influx of new multifamily units.

Future Forecasts: 2025 and Beyond

Looking ahead, Whitaker predicts that 2025 will bring incremental improvements to rent growth and occupancy rates, though they may remain below historical averages. By 2026, the multifamily market could return to the performance levels seen in 2018-2019, but only after another year of substantial new supply coming online.

One critical factor influencing future supply is the slowdown in new construction. Whitaker noted that multifamily housing starts have dropped significantly, reaching levels not seen since the Great Financial Crisis. With new projects declining by 20-25% from their peak, Whitaker expects this supply-demand imbalance to ease by 2026, creating opportunities for properties to stabilize and for rents to rise again.

Class A vs. Class B and C Properties

Whitaker shed light on the performance of different property classes. Surprisingly, Class A properties, typically the most sensitive to oversupply, have fared better than expected. This resilience can be attributed to the high cost of single-family homes, which has led many renters to renew leases in Class A buildings rather than transition to homeownership. The trend has been further highlighted by a 50% reduction in the number of tenants moving out to purchase homes, as reported by major real estate investment trusts (REITs).

Meanwhile, Class B and C properties face different challenges. Class B properties are starting to recover after lagging behind in recent years, while Class C units are grappling with economic pressures, including job losses and higher delinquencies. Still, Class A properties pulling demand from the Class B market—and Class B from Class C—is contributing to a rebalancing of affordability across the spectrum.

Submarket Performances: Southeast in Focus

Whitaker also highlighted specific markets that have performed exceptionally well despite high levels of new supply. Charleston, South Carolina, and Savannah, Georgia, have seen strong demand, driven by their appealing local economies and cultural attractiveness. On the other hand, larger markets like Atlanta and Nashville are underperforming due to an influx of inventory and economic headwinds.

Sales Volume and Cap Rates

The conversation then shifted to sales activity and cap rates. Multifamily sales volume has found its floor in 2024, and Whitaker expects a slight rebound in 2025 as investor confidence grows, bolstered by anticipated interest rate cuts. However, valuations remain a key unknown, with most transactions involving either high-end Class A or discounted Class C properties. The middle ground—Class B—has seen limited trading, a trend that may shift as the market stabilizes.

Cap rates in multifamily properties have remained relatively low compared to other asset classes, which Whitaker attributes to ongoing investor interest in the sector. While cap rates are expected to rise slightly with future interest rate cuts, they are unlikely to return to the extreme lows seen in 2020-2021.

Demographic Trends and Long-Term Outlook

Finally, Whitaker emphasized the long-term demographic drivers of multifamily demand, including household formation, job growth, and wage increases. Even though job growth has slowed, wage growth remains strong, contributing to increased affordability for renters. As roommates decouple and form new households, demand for rental units will continue to rise. This demographic shift, combined with the slowing pace of new supply, will likely lead to a housing shortage by the late 2020s.

Conclusion: A Strong Asset Class with Long-Term Potential

In summary, the multifamily market continues to be a resilient and appealing asset class. While the near-term outlook suggests modest improvements, the market is expected to return to more normal conditions by 2026. Investors who can navigate the current supply glut and capitalize on future demand growth will likely see significant opportunities in the coming years.

The post Video: RealPage Director of Research & Analysis Provides Multifamily Market Update; Occupancy, Performance, Wildcard Markets appeared first on Hawkins Commercial Realty.

House Of Wellness Hotel Proposed In Brickell, With 832 Lodging Units

A pre-application has been filed with Miami-Dade reviewers for a hotel tower in Brickell called House of Wellness. House of Wellness is proposed to rise 43 stories, and include: 832 lodging units 347 parking spaces A rooftop pool deck is planned on level 43. Approval of the development is planned through Miami-Dade’s Rapid Transit Zone, rather than through the City of Miami…

Mexican firm sells condo dev site in Brickell to partner

A Mexican firm that invested in Brickell development sites over the past two years sold one of the properties. Yet, it still plans to partner on developing the planned condo project, according to a source familiar with the matter. Menesse International sold the 0.4-acre vacant lot at 1870 Brickell Avenue in Miami for $10.3 million, according to records. The purchasing entity ties…

850-Foot Construction Crane Planned To Be Installed At Bentley Residences Site

Two very tall construction cranes are planned for the Bentley Residences Miami site in Sunny Isles, according to a new FAA filing. Tower Crane #1 at Bentley Residences is planned to reach 850 feet above ground, or 857 feet above sea level. Tower Crane #2 is planned to reach 742 feet above ground, or 749 feet above sea level. The work schedule for the cranes is estimated to begin…

Miami Metro Ranks #3 For Job Growth Over The Past Year

The Miami area continues to outpace the rest of the country when it comes to job growth, according to the U.S. Bureau of Labor Statistics. As of July 2024, the metro area job growth was 2.6 percent over the previous year. The U.S. as a whole saw 1.6 percent growth during the same period. The Miami metro added 75,300 nonfarm employees during the period. Only New York…

Developer Aimco Gets Construction Financing For ‘Condo Quality’ Edgewater Apartment Tower

Aimco says it has obtained construction financing for a “condominium quality” luxury apartment tower in Edgewater. Work is already underway, photos taken in August show. The developer secured $56 million of preferred equity from investment firm Sixth Street, and $172 million of senior construction financing from Apollo. Apartments in the 38-story waterfront tower…

Aimco scores $172M construction loan, $56M in equity for Edgewater apartment tower

Aimco scored a $228 million financing package to develop a 114-unit apartment tower in Miami’s Edgewater, as construction loans keep flowing in South Florida. The Denver-based real estate investment trust landed a $172 million senior construction loan from Apollo Global Management, and $56 million in preferred equity from partner Sixth Street, according to news…

FPL Wants To Install Solar At Metrorail Station To Power New Transit Oriented Development

A residential development currently under construction could be powered by solar panels installed at an adjacent Metrorail station. Metro Grande is being built next to the Okeechobee station. Construction is well underway, photos by MiamiSprings.com show. The development planned to have a combined 286 apartments, along with retail, with Cornerstone Group…

Ira Giller’s Miami Beach mixed-use project design gets green light

Miami Beach architect Ira Giller can move forward with plans for a new mixed-use building in his home city’s Mid-Beach neighborhood. Earlier this month, the Miami Beach Design Review Board approved the design for Giller Tower, a planned seven-story building at 976 Arthur Godfrey Road and 3915-3925 Alton Road. The project would include ground-floor retail and restaurants…

Infinity Collective evicts LuxUrban Hotels from South Beach building

Infinity Collective is the latest Miami Beach landlord to give troubled hospitality firm LuxUrban Hotels the boot. Last month, New York-based Infinity, led by Steve Kassin, Etienne Locoh and David Berg, took possession of a five-story short-term rentals building at 1700 Alton Road after winning an eviction lawsuit against Miami-based LuxUrban, court records show.

Rothschild pulls plug on 830 Brickell office, marking third firm to exit South Florida after market boom

Financial services firm Rothschild & Co won’t be opening at the 830 Brickell tower, marking the third company that leased during South Florida’s boom to scrap its planned office. Rothschild, which traces its roots to 18th century Europe when Rothschild family members rose to prominence in banking, had leased 5,000 square feet last year at 830 Brickell in Miami. The deal marked…

Alo Yoga founders expand retail portfolio with $17M South Beach acquisition

Alo Yoga founders Danny Harris and Marco DeGeorge expanded their retail portfolio by acquiring a South Beach condominium’s ground-floor retail space. An entity managed by Delaware corporations tied to Harris and DeGeorge, co-CEOs of Beverly Hills-based Alo Yoga, paid $17.3 million for four commercial units on the first floor of The Decoplage, a 16-story condominium…

Victoria’s Secret to Open New Miami Beach Flagship Store on Lincoln Road

Women’s undergarment apparel retailer Victoria’s Secret has signed a lease to occupy 8,000 square feet on Lincoln Road, a high street retail corridor in Miami Beach. Jonathan Carter and Ryan Brodsky of Colliers represented the landlord, ALTO Real Estate Funds, in the long-term lease negotiations. Brandon Nocella of Strategic Retail Advisors represented the tenant.

Multifamily Project Proposed For First Time At 250-Acre Miami Office Park

Apartments could be coming to Waterford Business District, the sprawling office and hotel complex directly south of Miami International Airport. London and Regional Properties is proposing a plan to add up to 600 apartments to the surface parking lot and grounds surrounding the Pullman Miami Airport hotel at 5800 Blue Lagoon Drive. The developer’s plans…

Location Ventures’ receiver seeks to sell Miami Beach dev site for $18M

The receiver managing the assets of defunct firm Location Ventures wants permission to sell a Miami Beach development site for $17.5 million. Receiver Bernice Lee filed a motion on Tuesday seeking an order from U.S. District Judge Cecilia M. Altonaga to allow the sale of the 0.7-acre assemblage at 1234 and 1260 Washington Avenue. Pakman Miami Beach, a Fort Lauderdale entity…

Miami Urban Development Review Board to Consider ‘2157 Flagler Residences’ for 2157 and 2199 West Flagler Street in Miami

A retail plaza with buildings constructed in the 1960s and 1970s could be replaced with a project dubbed “2157 Flagler Residences”. WR Flagler LLC has proposed an eight-story venture comprising 197 apartments ranging from 524 to 1,056 square feet. The South Florida Business Journal reports that floorplans span studios to two-bedroom layouts. Communal amenities…

Robert Rivani’s Black Lion scores design approval for Miami Beach mixed-use building renovation

A Miami Beach board gave Robert Rivani’s Black Lion the green light to revamp the exterior of a mixed-use building off Lincoln Road. Earlier this month, the Miami Beach Design Review Board unanimously approved the planned renovation of the building at 1691 Michigan Avenue and its garage facades. Miami-based Black Lion is giving the six-story structure…

Second Mercedes Benz Tower Now Under Construction In Brickell

The second tower at Brickell’s Mercedes Benz Places is now under construction. Foundation construction at the first tower is also now nearly complete, according to Serhant, which is handling condo sales. The second tower now underway will be 763 feet, while the first tower will reach 780 feet, according to plans submitted to the county in July. The combined development…

Demolition Underway At Two Small Brickell Properties

Demolition is now underway at two small properties in Brickell currently housing multifamily buildings. A video posted by Due Italiani a Miami shows demolition this morning at the first building, at 239 SW 12 Street. Building department records show a demolition permit was also issued on the same day for another building directly behind it, at 250 SW 11 Street. The properties…

32-Story Tower Planned In Edgewater

Plans have been filed for a 32-story tower in Edgewater. The development is planned to include: 68 lodging units; 57 off-street parking spaces; recreation and amenities on levels 7, 8, 9 and 32. Residential units on levels 10-26 will be 1 bedrooms, ranging from 720 to 750 square feet. On levels 27 through 31, there will be larger units. The top of the tower is planned at 385 feet…

Baywood scores approval for 124-key Hyatt House in Doral, amid uptick in hospitality project proposals

Baywood Hotels scored approval for a 124-key Hyatt House hotel in Doral, amid an uptick in hospitality project proposals across South Florida. The six-story building will rise on the vacant portion of the 3.3-acre site at 10234 Northwest 19th Street, adjacent to an existing 135-key Residence Inn by Marriott. On Wednesday, the town council unanimously approved the project.

South Miami Leaders Consider 13th Floor Investments for $309M City Hall Redevelopment Project

South Miami leaders are considering 13th Floor Investments for a $309 million redevelopment project that would transform the city’s municipal complex. The project’s design is by Miami-based Corwil Architects, with Coral Gables-based RJ Heisenbottle Architects serving as the historic preservation consultant. Known as The Link at SoMi, the mixed-use development would…

Miami-Dade departments getting new offices after $182M acquisition

Miami-Dade County paid $182 million for a 1970s office complex that will house various departments. An affiliate of New York-based Bushburg Properties sold The Current Miami at 9250 West Flagler Street to Miami-Dade, records and real estate database Vizzda show. The 26-acre property includes a six-story building and a one-story building spanning a total of 671,088…

BH, Lennar launch sales for Greenview at Presidential Estates near Aventura

BH Group and Lennar launched sales for a luxury 103-single-family home community near Aventura, nearly 17 years after litigation with neighboring homeowners stalled the project. The joint venture’s Greenview at Presidential Estates will offer six options featuring four-, five- and six-bedroom houses priced between $2.5 million to $3.5 million, according to a price sheet obtained…

Miami and Sunbelt Ranked Among Cheapest Places to Rent Coworking Spaces

For some businesses, rents for offices aren’t worth the cost of admission anymore given the slowdown the CRE asset class has seen with the work-from-home trend picking up since the pandemic. However, the solution to save money might be opting for coworking spaces – with Miami and other Sunbelt areas leading the charge. A report from CoworkingCafe compared the annual…

Construction Starts on ‘Royal Pointe Apartment Homes’ at 11350 Dunbar Drive in Miami

Hollywood-based Cornerstone Group, in partnership with the Martin Memorial AME Church, has started construction on an affordable housing development in Miami-Dade County. The developer first filed the pre-application phase in September 2021. Now, the venture is one step closer to completion. Royal Pointe Apartment Homes will comprise 102 residences, spanning…

$9.1M Sale of Miami Industrial Building Brokered

Avison Young has brokered the $9.1 million sale of an industrial property located at 7400 NW 37th Avenue in Miami. RAM Steel Framing occupies the building, which totals 109,000 square feet. John Crotty, David Duckworth, Michael Fay and Brian de la Fé of Avison Young represented the seller, Plage Associates, and the buyer, Azora Exan, in the transaction. The same team previously…

Residences at Six Fisher Island Breaks Ground, Expected to Complete in 2026

Related Group, along with partners Teddy Sagi, BH Group, and Wanxiang America RE Group, have officially broken ground on the Residences at Six Fisher Island, a highly anticipated residential tower within the exclusive Fisher Island community. Situated on the last development site of the 216-acre island, the project will feature just 50 bespoke residences spread across…

Construction Permit & Building Heights Submitted For Overtown Condo Development

An Overtown condo development is moving forward with multiple new filings to prepare for the start of construction. The condo tower is known as One West Twelve Residences. It will allow short term rental flexibility. Yesterday, the planned height of the building was filed with the Federal Aviation Administration for review. According to the FAA filing, the tower is planned…

Report: Downtown Miami To Aventura Rail Line Sees Costs Increase By 72%

The Northeast Corridor rail line planned between MiamiCentral and Aventura was originally estimated to cost $538M. Now, the estimated cost has increased 72% to $927M, according to the SFBJ. FDOT has agreed to increase funding for the project, the report said. Originally, FDOT had committed $103.5m toward the project, (the remainder was to come from Miami-Dade…

Demolition Of First Building At One Brickell City Centre Site Essentially Complete

Demolition of a building at the One Brickell Citycentre site is now nearly complete, according to Due Italiani a Miami. Work to demolish a second building on the site is still not approved however. The demolished building is at 710 Brickell Avenue. The second building at 799 Brickell Plaza is closer to the Brickell City Centre complex. A demolition permit for 799 Brickell Plaza…

44-Story Lofty Brickell Tower Begins Vertical Construction

Vertical construction is now underway at the 44-story Lofty Brickell tower, according to photos by Ryan RC Rea. The photos show that building columns’ are now rising out of the ground, with cranes in place. The cranes were approved by the FAA in July for heights of 650 feet above ground, or 653 feet above sea level. Lofty Brickell is planned to include 364 residential units…

Related Group JV Closes $527M for Miami Condo Tower

Related Group and Integra Investments have closed $527 million in financing for St. Regis Residences, Miami. The 50-story condominium property on the Biscayne Bay waterfront in the South Brickell neighborhood is on track for completion in 2027. TYKO Capital provided the loan, led by Adi Chugh. Robert A.M. Stern Architects (RAMSA) designed the property…

Shops at Sunset Place redevelopment scores South Miami approval

Alex Vadia’s Midtown Development is moving forward with plans to redevelop the Shops at Sunset Place in South Miami into a mixed-use project with about 1,500 residential units. The South Miami Planning Board on Wednesday evening unanimously approved a resolution granting initial site plan approval for the site at 5701 Sunset Drive. The resolution next heads to the South Miami…

How ELLE Residences Are Bringing a Touch of Europe to Miami

Miami’s condo market is ripe with luxury high-rise developments that attract a high-profile clientele. After Armani, Fendi and many others, ELLE is the latest European brand that wants a slice of the scrumptious Magic City pie. I believe that developments by European brands will set a new standard in Miami’s condo market, said Nuñez y Lugones.

Lease roundup: Ugo Colombo’s CMC scores bagel shop in Coral Gables, AEW lands four retail tenants in Broward

Bagel Emporium & Grille will move its Coral Gables restaurant to CMC Group’s 4000 Ponce building in the city. The bagel and deli shop leased 9,000 square feet on the ground floor at the office and retail building at 4000 Ponce de Leon Boulevard, according to the landlord’s news release. Bagel Emporium, which now is at 1238 South Dixie Highway, will move next year.

MIA Passenger Count Up 10% In 2024, Breaking New Records

Miami International Airport is setting records for the number of passengers using the facility in 2024. From January through July, a total of 33,840,894 passengers have either departed or landed at MIA, up 9.91% compared to the same period in 2023. If current trends continue, MIA will have broken new passenger records three years in a row. MIA passed 50 million…

Close Flagler Street To Cars On Weekends, City Resolution Urges

Miami commissioners are scheduled to vote on a resolution urging Downtown Miami’s Flagler Street be closed to vehicles at certain times. Miami-Dade County controls the street, so City of Miami commissioners can only pass a resolution urging the county consider the closure request. City commissioners are scheduled to consider whether to adopt the resolution at a meeting…

Vow to pick solid waste plant site goes up in smoke

The only crucial item missing Tuesday from the “who, what, where, when” discussion about a new waste-to-energy facility was the “where.” Miami-Dade County Commission Chairman Oliver G. Gilbert III vowed at the commission’s last full meeting two weeks ago that the “where” would be answered this week. It wasn’t. At Tuesday’s fretful and sometimes contentious…

Surprise Land Swap Offer Upends Miami-Dade Decision On Site For New Incinerator

Facing a packed room of concerned and angry residents, Miami-Dade County commissioners punted on a decision about where to put a new trash incinerator that officials say is needed to ensure that real estate development can continue in the region. After months of consideration — and spirited debate at Tuesday’s meeting — commissioners voted to defer a plan put forward…

Ansin family’s Sunbeam proposes nearly 3,000-unit resi project in Miramar, amid record apartment pipeline

The billionaire Ansin family proposes a massive mixed-use project with more than 2,800 residential units in Miramar, amid a record multifamily construction pipeline in South Florida. The Ansins’ Miramar-based Sunbeam Properties wants to develop Park Miramar on a 125.8-acre vacant site the firm owns on the northeast corner of Miramar Parkway and Red Road, according…

First Look: Newgard Development Group’s Brand-New Renderings of Natiivo Fort Lauderdale

Newgard Development Group has unveiled new renderings for Natiivo Fort Lauderdale, a 40-story residential tower featuring 384 units at 200 West Broward Boulevard in downtown Fort Lauderdale. The project, designed by Arquitectonica with interiors by IDDI, aims to bring a fresh approach to urban living. These renderings offer a detailed look at the building’s residences…

Maxx scoops up 145-unit apartment complex in Wilton Manors for $47M, amid multifamily investment sales slowdown

Maxx Properties scooped up a 145-unit apartment complex in Wilton Manors for $46.6 million, amid a South Florida multifamily investment sales slowdown. The Purchase, New York-based firm bought the ANKR Wilton Manors complex consisting of 11 three-story rental buildings and a clubhouse at 513 Northeast 21st Court from Gables Residential, according to records…

Construction Starts on Second Phase of Atlantic Crossing at 777 East Atlantic Avenue in Delray Beach

In 2021, Florida YIMBY reported on the first phase of Atlantic Crossing, a mixed-use venture that offers apartments, office space, and retail ventures. Now, we’ve learned that Ohio-based Edwards Cos. has broken ground on the venture’s second phase in Delray Beach. The South Florida Business Journal reports that the second phase of Atlantic Crossing will feature three buildings.

Macy’s offloads two South Florida retail properties for a combined $28M

Macy’s offloaded a couple of retail properties in South Florida, selling both for a combined $28 million. Most recently, an affiliate of Columbus, Ohio-based Washington Prime Group paid $15 million for a Macy’s department store at Boynton Beach Mall at 801 North Congress Avenue in Boynton Beach, records and real estate database Vizzda show. Washington Prime…

Focus Healthcare drops $64M for Palm Beach County assisted living facility, as senior care deals continue

Focus Healthcare Partners scooped up a 377-unit assisted living facility in Palm Beach County for $63.8 million, as South Florida senior care facilities continue to trade. The Chicago-based firm bought the Mariposa property consisting of a three-story building and a one-story building at 9130 Hypoluxo Road in an unincorporated area of the county from Ventas, according to records…

West Palm Beach adds hundreds of rentals

Thousands of residential units are in the development pipeline in West Palm Beach, following a rush of post-pandemic investment in the coastal city. While many of those projects are luxury condominiums years out from completion, others are rental buildings beginning to open their doors. In this lease roundup, Related Companies, Tortoise Properties, Hyperion Group…

The first rate cut is here: now what?

Moody’s CRE economists weigh in on the long-awaited Fed move Today’s 50 basis point rate cut from the Federal Reserve is more aggressive than many expected. It marks a crucial step on the road towards recovery for the overall economy, and especially for the Commercial Real Estate (CRE) industry. Economist Twinkle Roy notes that businesses should…

Why Light Industrial Properties Will Continue to Shine

The often-overlooked multi-tenant light industrial subsector has strong fundamentals and will remain solid in a supply-constrained environment, according to a new research study by BKM Capital Partners. The report argues that the light industrial subsector demonstrates particular resilience, especially when compared with other property types, including…

2023 Was Another Challenging Year for Insurance Expenses

Insurance coverage cost and availability has become an increasing pain point for commercial real estate (CRE) market participants. Property insurance expenses traditionally inflated by roughly two to three percent per year, which is a typical expense budgeting target of underwriters, lenders and asset managers. However, year-over-year insurance cost growth has spiked…

Moody’s Mid-Year Multifamily Performance Review

Highlights: As of the second quarter of 2024, our primary 82 multifamily markets were evaluated based on their year-to-date (YTD) change in effective revenue. Two of the top five metros were from the Northeast and two of the bottom five metros were from the Western region. The Northeast was the top-performing region with effective revenue up 125 basis points (bps) YTD…

Video: Costar Director of Office Analytics Provides Office Market Update; Miami Gets a (Bright Spot) Mention

Office Real Estate Sector Shows Signs of Optimism Despite Persistent Challenges The latest episode of America’s Commercial Real Estate Show featured an insightful discussion about the U.S. office market. Hosted by a seasoned real estate expert, the show welcomed Phil Mobley, National Director of Office Analytics at CoStar. The conversation centered on the state of the office…

The CRE outlook: new normals, the Fed, and the latest performance data

The Commercial Real Estate (CRE) industry has been anxiously awaiting action from Jerome Powell and the Federal Reserve for several quarters now. Even though the industry has largely begun to emerge from its most recent lows, the first rate cut is crucial to recovery. The question remains, however: will these cuts be enough to get the CRE market back up to speed?

Unpacking the Menu of Inflation Reduction Act Incentives for Commercial Real Estate

Earlier this week the Urban Land Institute Northwest hosted the first in a series of webinars helping CRE owners identify opportunities to leverage Inflation Reduction Act (IRA) incentives and understand how they fit in with other regulatory and financing mechanisms already in place. In this first webinar, “Introduction to IRA Tax Incentives,” Ben Evans at the US Green Building…

Using IRR to evaluate real estate investments

The internal rate of return (IRR) is a powerful tool for assessing a commercial real estate investment’s profitability. IRR can be particularly valuable when comparing potential investment opportunities with varying cash flows over time. What is IRR? IRR measures an investment’s compound annual growth rate, accounting for all cash flows over the life of the investment.

Converting Office To Industrial Space Is Picking Up Steam

One of the growing trends in commercial real estate is converting vacated office space into industrial use. Since the onset of the pandemic, more employees have been working from home. While office vacancies in some markets are recovering, it’s still nowhere close to 2019 levels. Of course, CRE developers have noticed that trend and are getting creative. During the year-to-date…

The post Miami Commercial Real Estate News September 18, 2024: 124-Key Hotel Approved for Doral as 832-Key Hotel is Proposed for Brickell; $172M Financing Scored for Edgewater Tower; More… appeared first on Hawkins Commercial Realty.