Archives for category: Income Property

Bringing more art to Miami is something that nobody can object. I myself love the idea of more art inmetrorail-863816_1920 the city but what I do not agree is the fact that Miami’s residents have to pay some punishing fee for that.

 

There are already many taxes, fees, and delays when it comes to the approval of city’s permit for construction. Instead of charging these fees to residents I believe it should be charged to tourists, not high fees, small fees to tourists would be enough to reach the intended purpose.

 

Let’s not make more taxes. Let private institutions develop art in the city giving them more freedom. Let’s encourage more donations but no more taxes because all that does is generate expensive local prices, fewer jobs, and less economic growth for the city.

To read the ordinance click on the link below:

Miami Art Ordinance

Orlean Pic

The largest company in the Brazilian wallpaper market
Orlean chose Design District to open its first showroom in America.

Friday, April 1, 2016 (MIAMI, FLORIDA) – Fabio F. Faerman and Alexandra Bonti of FA Commercial/ Fortune International Realty assisted Orlean -to find the perfect place for its first showroom in America. The lease transaction represented a value of $1 Million.

Orlean rented a total of 2,010 SF located at 3801 North Miami Ave in Design District. The deal was signed for 5 years. “Our client –Orlean- was looking for the perfect place to open its doors in the USA. We were able to understand their business, work with their needs and find them the ideal place in the ideal neighborhood for them: Miami design district” says Fabio Faerman.

Miami Design District it’s the perfect place for Orlean to open its first showroom out of Brazil. Founded in 1985 in Rio de Janeiro, the company has four stores in the best neighborhoods of Rio de Janeiro and Sao Paulo. Orlean is one of the leading wallpapers and fabrics distributors in Brazil and distributes its products in more than 1500 shops in the whole South America.

Opening this showroom in Miami it was part of Orlean’s expansion strategy. A showroom in Miami Design District, a neighborhood of high-end decoration will contribute to the brand display in America, which one of their main goals it is to establish Orlean as the major Florida wallpaper and fabrics display. They expect to open 15 shops throughout Florida in the next 3 years. Therefore, design district suits to implement their purposes.

Fifteen years ago, entrepreneur and Miami native Craig Robins recognized the potential of the Miami Design District and started acquiring and redefining properties in the area. Through careful stewardship. The Design District began to juxtapose design brands with internationally important art collections, phenomenal temporary and permanent art and design installations, and great restaurants.

Fabio Faerman and his team at FA Commercial are thrilled to contribute to the progress of Miami and the entire South Florida’s commercial real estate market with deals like this. They to offer international and local clients, the most exceptional service, and guidance through the commercial real estate process.

Boma Files

Hollywood-Land

Fabio Faerman of FA Commercial/Fortune International Realty (FIR) has brokered the sale of 16,676 SF residential lands located in Elm Street & N Surf Rd in Hollywood, FL at a price of $3,300,000 million. The fields, which are only separated by a street from the ocean, sold in an all-cash deal. Fabio Faerman represented the seller, who hold the property for more than 40 years.

These land lots are located in the Hollywood Beach Area of Broward County, Florida; in a mostly reserved land except for a few lots; the lots are surrounded by green, protected areas and are located in the corner across Hollywood Beach. “Since the lots are in a reserved area and only a few are available for sale and constructions, these properties represented a unique and exclusive deal for both, the buyer and the seller” Faerman said. The 16,676 SF are raw lots. The buyer plans to develop the property for future residential townhouses. In the same seller portfolio there are still available for sale 2 oceanfront lots of 6,400 SF. Lots are strategically located in N Surf Rd.

Hollywood, a classic Florida beachtown that’s enchanted visitors since the 1920s. Hollywood Beach features a one-of-a-kind oceanfront along the Atlantic Ocean. The easy ocean access and village-like feel make this a great destination for locals and turist. Numerous highly-rated restaurants, small inns and hotels right on the Broadwalk add a yesteryear charm. Hollywood Beach is among the first in Florida to be designated Blue Wave Beaches, a distinction that places them among the nations cleanest, safest and most user-friendly beaches.

Fabio Faerman and his team at FA Commercial are thrilled to contribute to the progress of Hollywood and the entire South Florida’s commercial real estate market with deals like this. Recently, Mr. Faerman proudly assisted on the closing of 4322 Hollywood Blvd., a former Blockbuster property. Currently, we have 2 new vacant commercial land listed for sale in Van Buren – Hollywood, FL. Additionally, Mr. Faerman and his team have worked on bring international business to South Florida such as Cipriani, a luxury restaurant owned by the sons of famed restaurateur Giuseppe Cipriani. Coya Restaurant already renowned in London and Dubai, Coya is an authentic yet modern Peruvian restaurant. La Cantina # 20 refined Mexican fare in a glitzy space with outdoor patio & authentic curios at the heart of Brickell. Mizzen Plaza a strip mall strategically located in between Coconut Grove and US1, the strip mall is next to Coconut grove metrorail station.

About FA Commercial Advisors
FA Commercial Advisors provides a complete range of commercial real estate brokerage services – including owner and tenant leasing, acquisition and sales, marketing and consulting – to owners, investors and lessees of all property types. With an extensive international network of real estate professionals throughout the world, we offer local market knowledge on a global level.
About Fortune International Realty Commercial Division
The Commercial Division was created to offer specific advice and service to sophisticated clients, searching for a deep understanding of real estate businesses. This division has the purpose of coordinating and providing services to Fortune International Realty clients as well as residential and commercial associates interested in pursuing commercial real estate transactions.

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This past week Miami Today spoke to FA Commercial Advisor’s very own, Fabio Faerman to get his perspective on the booming real estate market in Miami’s downtown area. Faerman divulged some interesting tidbits for investors interested in the future of Brickell.

Take a stroll down the streets of downtown Miami these days and it is easy to see that times are once again changing. While South Florida may have experienced one of the largest busts in the real estate crash years ago, the recovery, particularly that of the Brickell area, may be one of the most rapid in the nation. Several sites are set for demolition and construction cranes have now become the “unofficial bird” of our city. Existing buildings are chipping in, too. Many office buildings have begun pouring millions of dollars into upgrades.

Faerman says that all of this excitement is attracting celebrities, financial advisors and families alike to move downtown and experience life on Miami’s sunny shores. Faerman receives calls from buyers looking to invest in Brickell about one to two times per day.

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The beautiful Brickell skyline

Last year, a buyer purchased a package from Faerman that included the landmark Tobacco Road, River Seafood & Oyster Bar, as well as six parcels on Seventh Street for $12.45 million. With values currently sky-rocketing, Faerman estimates that the same assemblage would be sold for double that amount this year.

Those are prices that buyers these days are more than willing to pay, if the investment properly fits their objectives. For example, this past summer Swire spent $64 million to acquire 700 & 710 Brickell in order to build One Brickell CityCentre, the 80-story gateway to their $1 billion Brickell mega-project. Faerman believes this deal was good for Swire because it gave them the Brickell Avenue frontage that their project needed.

Faerman touted a river-facing site behind Brickell CityCentre that could have that type of value for the right buyer. The 2.52-acre off-market property would give a potential investor the opportunity to create a mixed-use project of up to 1.98 million square feet. The owners are seeking a buyer in the range of $100 million for this site, which Faerman says has, “huge potential.”

“A planned passenger rail service would be an ideal way to link the nation’s most visited city with Florida’s gateway city for business and leisure travel.”

This is the sales pitch to citizens that can be found on the website for All Aboard Florida, the new railway project that hopes to create an Orlando-to-Miami passenger train service. The train would provide the vital mass transit that so many have longed for in this large state. Stops would include Miami, Fort Lauderdale, West Palm and, of course, Orlando.

The project would create tens of thousands of jobs, not only in the railway industry, but by connecting major cities and granting Floridians more flexibility to travel to work. However, another industry that would benefit greatly from All Aboard Florida is commercial real estate.

all-board-florida

Rendering of All Aboard Florida train

All Aboard Florida is currently in negotiations with Miami’s Community Redevelopment Agency to acquire land in downtown Miami to build a large transportation hub. As a matter of fact, a compromise was reached yesterday and is currently awaiting approval from the county. The transportation hub would include restaurants, retail, office space, and residential apartments.

Commercial real estate is extremely important to revenues for All Aboard Florida. The project will dedicate $325 million to develop about 1 million square feet of commercial real estate. They are expecting a yield of around $35 million in rent.

The money being put into the $2.4 billion project by All Aboard Florida will amount to about $125 million, or around 5 percent of total costs. A large sum of the money will be provided by institutional investors, paying up to $600 million for a preferred investment. The organization is counting on the federal government to play a part in the development as well. All Aboard Florida is expecting a federal loan to aid them with the $1.5 billion in infrastructure costs.

The next step for All Aboard Florida would be the most important, bringing in revenues through ridership. All Aboard is currently projected to attract 4 million riders by 2018, a mark that took the Tri-Rail service about two decades to hit. If All Aboard Florida can achieve these numbers, it would yield a return of $785 million.

“Let our advance worrying become advance thinking and planning.”

-Winston Churchill

The rise of e-commerce should not give those in the commercial real estate sector any cause for worry. It should, however, give them plenty of cause for planning. The progress of online sales is real and it is rapid, but with a bit of help from data and common sense, it is clear that future strategies are beginning to take shape. After all, a cosmic shift in the business we do will only naturally affect the way we do business.

The Rise of E-Commerce

After averaging annual gains of around 10 percent during the previous decade, e-commerce soared out of the gates once the ‘Great Recession’ came to a close. In 2010, as overall retail sales grew by 5.6 percent, online sales saw an increase of 15.3 percent.

Last year, online sales experienced more rapid upward movement, increasing by 16.3 percent while overall retail saw a 5.1 percent increase. Even with these figures calculated in, e-commerce only accounts for roughly 6 percent of all retail sales. However, a study performed by Deloitte predicts that number reaching 30 percent by 2030.

The commercial real estate sector is still seeing sustainable growth despite these facts, with new retail units expecting to increase by 9 percent this year. This number, however, is bolstered by the restaurant sector, which will account for 43 percent of the planned growth. Some areas such as apparel, bookstores and other mid-priced hard goods are seeing large declines in their planned units due to competition with e-commerce.

The Future of Commercial Real Estate

The first thing that commercial real estate professionals should do is make sure to understand that the sky is not falling. The brick and mortar shopping experience is not at any risk of extinction and the e-commerce share of retail sales is not expected to go much further past 30 percent. Understanding this, the e-commerce shift in retail should be seen as an opportunity.

Industrial investors should prepare to handle a tidal wave of demand for distribution centers. The size of bulk warehouses are ever-increasing due to retailers like Amazon, which are in need of many distribution centers due to their exclusively online presence. These bulk warehouses will likely provide a boost by way of new industrial demand.

On the retail front, focus will shift away from mid-priced hard goods and towards sectors that do not need to compete with e-commerce. This means that restaurants, grocers, and service-based retailers will drive the future of commercial real estate. Instead of counting on large flagship apparel stores, successful shopping centers will be anchored by entertainment and dining establishments.

The future of the industry is still as bright as ever, but there is plenty of work to be done. Those who fail to plan are indeed planning to fail, but there is certainly a great amount to be gained from engaging in sound strategic thinking. In the end, those who display the dedication to adjusting with the times may have their best days ahead of them.

The economic data is in and things are just heating up. In May of 2013, prices in the commercial real estate sector continued building on a strong recovery according to the CoStar Commercial Repeat-Sale Indices (CCRSI). According to CoStar, the indices measure the change in prices by using a repeat sales methodology. Simply put, when a commercial property is sold, the indices calculate the difference between that sale and the previous sale of the same property.

However, there are several indices used to give a clearer picture of the environment in commercial real estate. This past May, commercial real estate saw price growth across the board.

Beginning with the value-weighted U.S. Composite Index, a measure which is influenced by the fewer, but larger commercial real estate transactions. In May, the value-weighted index saw an increase of 0.7 percent, but that does not tell the entire story. From the low point of the index in 2010, the measure has increased by 41 percent. That’s a rate of about 3.4 percent per quarter.WEB-SoldSign-SubjecttoContract-WP_304

The other important measure in the CCRSI report is called the equal-weighted U.S. Composite Index. This measure is the counter-balance to the value-weighted, as it is heavily influenced by many smaller magnitude commercial sales. The equal-weighted index increased by 2 percent in May, bringing the measure to a 10 percent increase from it’s bottom in 2011. With this strong May number, there is reason to remain hopeful that this index may just be hitting it’s stride.

The second quarter of 2013 has also been extremely strong for Net Absorption, which measures the change in space for the three main commercial sub-categories: office, retail, and industrial. This measurement, however, has been strong for the past three years, indicating that the fundamentals of commercial real estate may be stronger than previously perceived. The investment grade, a part of the equal-weighted index that measures upper-middle tier properties, also grew by 2.6 percent in May and by 24.6 percent since a 2009 trough.

Perhaps the most optimistic data comes from the decline in distressed sales. No measurement points more strongly to a fundamental commercial real estate recovery. In April and May, properties sold at distressed prices decreased to 14.1 percent, this two-month average is the lowest it has been since 2008. Less properties sold at distressed prices indicates that prices are moving in an upwards direction, giving both buyers and sellers the necessary confidence to achieve stronger deals.

As those in the market continue to remain weary of economic headwinds, the data is pointing in the right direction. With rapid increase in prices, a bigger fear could possibly be pricing certain buyers out of the market. However, the fundamentals of the commercial real estate sectors are strong for the moment and the momentum seems to be in our favor.

We’ve been discussing it for months, if not years, and now it seems to all be coming to fruition. The Miami-Dade real estate market is well on it’s way to soaring past pre-recession peaks and setting it’s eyes on historic highs. It is certainly a very exciting time to be living this city, and an incredibly opportunistic time to be working in the development, construction, or real-estate sectors.

Leading the way in this boom is the downtown area, as we have discussed previously. The Real Deal South Florida reports that out of the 23,000 condos built in the area from 2003 to 2012, 93 percent have been sold. This has led to a dramatic increase in assessed property values (6.4 percent) and asking prices, but also an inventory crunch. Not to worry, developers have gracefully accepted the challenge. There are currently 5,500 condo units planned for development in downtown Miami.

However, other areas have assisted in making Miami-Dade one of the most attractive counties for real-estate investment in the country. Jade Signature in Sunny Isles, from our very own Fortune International, is one of the most breathtaking developments in South Florida. Designed by the famed architecture team, Herzog & de Meuron, the latest Jade project has already surpassed $300 million in sales. Miami Today also recently sang praises for the Coconut Grove area, where condos and single-family residences are primed to reach new peaks. The luxurious Grove at Grand Bay is the most appealing of many new preconstruction projects in the area.

This has all, of course, led to an increase in economic activity and tax revenue for the city of Miami. The Miami Herald recently reported that property-tax rolls have increased by 3.39 percent in 2013, marking the second consecutive year of growth. With a higher tax base, the city can expect government downsizing to slow down and taxpayers will in-turn see more bang for their buck.

However, one must always account for negative indicators, as well. This boom is not being felt, for example, in Florida City, where taxable value has decreased by 5.58 percent. Hialeah has also seen their rolls decrease by 3.5 percent, though that could be attributed to a new homestead exemption for low-income seniors. Even areas such as downtown, where values are skyrocketing, run the risk of growing too quickly and pricing too many people out of the market.

Overall, the news is too optimistic to end on a negative note. So, in that case, let’s enjoy this awe-inspiring preview video of Fortune International’s Jade Signature:

Jade Signature Sneak Peek Video from Jade Signature on Vimeo.

One of the major advantages in favor of the South Florida area is the vast nightlife that comes with the territory. Over time, the hotel scene has become one of the greatest boons for establishing this one-of-a-kind selling point. It has done this not only by providing a first-class experience to those searching for a vacation (or staycation), but in cases like Club 50 at The Viceroy, by becoming a key fixture in the nightlife itself.

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b2 Miami Hotel in Downtown

The downtown area, according to the Greater Miami & The Beaches Hotel Association, supports 31 of these properties. This gives the area an approximately 7,000 room capacity for businesspeople and partygoers alike. Those numbers were calculated including the new b2 Miami downtown resort and the Aloft Miami opening on July 11th, however it did not take into account the several unannounced hotel deals that are also in the works.

That’s right! A development boom is taking place for hotels, too. The popular and much hyped SLS Hotel in South Beach is planning to open a new location in Brickell. Atton Hotels from Chile has also decided to open up their first North American outpost in the downtown Miami area. However, the best doesn’t only lie ahead for the Miami hotel scene. Arguably the most important hotels in downtown Miami have already been up and running, each doing their part to set the bar. The Intercontinental with their breathtaking views of Biscayne Bay, The Viceroy with Club 50, and The EPIC with Area 31 all add a spice of life to the area.

It’s no wonder that Smith Travel Research ranked Miami as the top hotel destination in the country. The research company also found the city to have an occupancy rate that was 20 percent higher than the rest of the U.S. at around 80 percent, and ranked Miami at the top in revenue per available room and average daily rate. Statistics such as these will only lead to more development, more hotels, and a nightlife beyond our imagination.

For more on hotels in South Florida, check out Curbed Miami’s list of The 38 Essential South Florida Hotels.