Archives for posts with tag: beach

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 year was one of growth in real estate, not only in South Florida, but all over the country. 2013 marked the first time since the collapse of the market that people truly started to feel a recovery. Putting the microscope over South Florida’s commercial real estate market, the year was littered with events that signaled the current and future expansion of our area. It was difficult to narrow it down, but below we have put together a list of the top five stories of 2013 according to the Top Commercial Blog.

5. Record Setting Deal on Lincoln Road

Lincoln Road is becoming the home for flagship retail and folks are looking to cash in on the trend. This December, Tristar Capital purchased 530 Lincoln Road for $30 million, setting a new record. At 10,000 rentable square feet, the deal amounted to $3,000 per square foot. The expectation is that Tristar will add more two-story, single tenant retail to accompany Forever 21, H&M, and Zara.

4. Swire Proposes 80-Story Tower

It wouldn’t be a countdown without mentioning Brickell CityCentre. This fall, Swire announced that they plan to add an 80-story tower to the already massive project to act as a gateway to the development. One Brickell CityCentre, as it would be called, would add more Class-A office space, condos, retail and even another hotel to the project. Phase one of the Brickell CityCentre is still currently set for completion in 2015.

3. All Aboard Florida Applies for Federal Loan

This past March, All Aboard Florida applied for a loan from the Federal Railroad Administration to begin work on their vision of a passenger rail service from Miami to Orlando. The train would also make stops in Fort Lauderdale and West Palm Beach. Commercial real estate would be a large part of the project, with around $325 million being dedicated to develop about 1 million square feet of commercial real estate. The planned opening of the service would be in 2015.

2. David Beckham Eyes PortMiami for Soccer Stadium

In November, all anyone was talking about was David Beckham’s plans to bring a new Major League Soccer team to Miami. The famed footballer was touring the city, looking for a location to build a new stadium. Then we discovered that Beckham was eyeing PortMiami. A soccer stadium in the port would fit right in with their  master plan for the southwest corner that would include a hotel, retail and office space. If this idea moves forward, Beckham and his team will have to figure out how to better flow traffic into Dodge Island.

1. The Miami Beach Convention Center Saga

If there’s one story with enough action, drama and significance to come out on top of this list, it’s that of the Miami Beach Convention Center. First there was the showdown between South Beach ACE and Portman-CMC for the development deal, but ACE’s victory only marked the beginning. The convention center project became a top issue in Miami Beach politics, leading up to a heated election in November. The vote resulted in more difficulties for the convention center, as any new leases would need to be approved by a super-majority. The drama here is expected to continue well into 2014.

With flagship retail popping up all over Lincoln Road, the pedestrian mall has never been more popular or, through the lens of real estate, more valuable. Until now, of course. This week, the record setting sale of 530 Lincoln Road gave us a glimpse into the area’s impressive future. The property was sold to Tristar Capital for $30 million.

South Beach, even with its luxurious retail market, has yet to see a deal like this. At 10,000 rentable square feet, the deal amounted to $3,000 per square foot. The building is an optimal site for redevelopment as the ground-floor is currently housing two short-term leases.

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530 Lincoln Road

The property, which was once owned by the family of The Miami Sound Machine’s own Gloria Estefan, was sold in 2010 to local business, Lincoln 530. Lincoln 530 purchased the building for $12 million and first began testing the market in March of 2012. At the time, they opened with an asking price of $28 million. The final sale ended up exceeding those grand expectations.

Tristar Capital is expected to request the city for permission to add 3,000 square feet to the building. Although, the property could easily be leased to multiple tenants, the opportunity exists for Tristar to take advantage of a recent Lincoln Road trend: two-story, single-tenant retail.

Recent notable retailers to open mega-stores on Lincoln Road include Forever 21, H&M, and Zara. In fact, 530 Lincoln is located directly across the street from the former Symphony Building that is now home to H&M’s flagship store. With the amount Tristar has invested in the property and the recent activity on Lincoln Road, expectations will be sky-high for 530 Lincoln.

Another new year is upon us and, as we do every year, we will look back at the past twelve months and marvel at the swiftness with which they raced by. However, rather than being taken aback by this perpetual occurrence, perhaps it is vital to accept that a year is actually not that long a span of time to begin with.

Through this lens, the upward statistical trends that commercial real estate experienced in 2013 may just be the beginning of strong momentum in 2014 and beyond. This idea is supported through research in a recent article from the Wall Street Journal.

Investment & Leasing Markets

The expectation is that investment sales in the commercial real estate sector will continue to grow in volume through 2014. In 2013, lending actually began to accelerate once again after having stalled in recent years. This along with an increased volume of money flowing to the asset class attributed to the recovery of investment sales. The ball is expected to keep rolling in the coming months and the expectation for 2014 is 10 percent year-over-year growth.

For the most part, the leasing market in the past year has been flat. This has certainly led to some worries of a gap between investment and leasing. However, there are a few indicators that leasing will soon be tipping in the right direction, none the least of which is the strong improvements in occupier sentiment. Corporate profitability is also soaring, specifically in the retail sector where large retailers are having their best year since 2010.

Office Market

We recently discussed the snail-like pace of the office market, but this is a sector that is tied heavily to the tech and energy industries. As those sectors continue their economic growth, we can also expect the office market to make a marked improvement in the coming year. Forecasters expect office rents to grow at about 5.5 percent. Despite this increase, trends in construction are expected to be below average until around 2015. However, in tech and energy heavy geographies, progress is clearly on the horizon for the office market.

Other Factors

Once again, the millennial generation will play a critical role in the improvement that we do or do not see in the coming year. As we know, this demographic holds a special place in their heart for urban environments. Most would project activity to continue to increase in these areas, but this does not spell doom and gloom for the suburbs, though we do expect them to adjust accordingly.

Most importantly, 2014 should see a genuine increase in demand, which is the most important factor for generating sales. The labor market has seen a long and steady pace of moderate monthly job growth. As a result, most industries have recouped job losses from the recession and demand is ready to be stimulated once again.

Lastly, a key contributing factor to the growth in commercial real estate is the accelerated growth in housing. Though the housing market has steadied in the past couple of months, experts had been waiting for a recovery like we saw in 2013 for several years. Continued growth in housing during 2014 will lead to more development, lending, retail and jobs growth.

This year will be the 12th for Art Basel Miami Beach. Each year the event has grown and has continued to play an integral part in the development of South Florida’s artistic culture. This weekend, visitors can count on the festival to feature more than 250 of the world’s leading galleries.

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Art Basel creates a key opportunity for continued growth

Art Basel Miami Beach has become an international artistic spectacle with visitors, including many celebrities, coming from all over the globe to get a look at the newest trends in the art scene. Miami expects more than 60,000 visitors to attend the event this year. Of course, with international cash-buyers playing such a key role in the revival of South Florida real estate, Art Basel creates a key opportunity for continued growth.

Brokers will be able to highlight South Florida’s latest real estate development to Art Basel’s international guests. Condominium inventory is running thin, thanks in large part to international buyers who accounted for approximately 70 to 80 percent of condo sales during the latest boom. South Florida is compensating for the diminishing inventory with 175 new condo projects planned for the area that would be of great interest to overseas buyers.

With the evolution of Art Basel over the years, the festival is no longer solely taking place in Miami Beach. Events and showings connected with Art Basel are popping up all over Miami-Dade County, creating unique opportunities for brokers to mingle with VIP guests over a meal or drink. Private events can be the perfect place to develop relationships today that will help sell a luxurious space in a development months from now.

A sign of the spectacular mark that Art Basel has made in the development of South Florida’s culture can be seen in the opening of the Perez Art Museum earlier this week. The building itself was touted as a work of art and contained 500 pieces on display the day it opened. The future of the Miami art scene and its contribution to the development of our city is bright.

Envision, if you will, a stadium in Miami that actually manages to represent the luxury that the city has to offer. If you were to do so, you might imagine attending a sporting event in which the vibrant environment is contrasted with a view of the calm waters of Biscayne Bay and nighttime events accentuate the glittering Brickell skyline.

This is also the vision that David Beckham’s group, Beckham Brand Limited, has for their potential Major League Soccer franchise in Miami.

As many local soccer enthusiasts may have heard, the group has been scouting locations for a 25,000-seat stadium for quite some time, with Arquitectonica as the rumored choice to design and plan the project. Though the group has surveyed around 30 potential sites, one has generated enough interest to inspire talks with Miami-Dade County.

Port-Miami

PortMiami has been interested for quite some time in creating a better connection with the mainland

According to the Mayor’s office, Beckham’s group has asked them to consider allowing the stadium to be built in the southwest corner of PortMiami in Dodge Island. PortMiami has been interested for quite some time in creating a better connection with the mainland. A soccer stadium may fit perfectly with their 25-year master plan for the southwest corner that would include a hotel, retail and office space.

25 acres would be available for the group to lease and build on, but the location raises some questions. For one, the port is only accessible through Port Boulevard and the Port Tunnel that is scheduled to open next year. Adding the event traffic to roads already clogged with cruise ship travelers on weekends may add up to a local nightmare. Similarly, the issue of parking would cause a major stir, though the idea to build an underground garage like that of the American Airlines Arena has been discussed.

Either way, the discussion between Beckham’s group and the county has just begun and any plan would eventually require approval from the Miami-Dade County commission. As a matter of fact, MLS has yet to formally announce an expansion franchise for the city of Miami.

However, a professional soccer stadium built with private money could be a boon to the local economy and provide a large opportunity for retail in the underutilized PortMiami area.

The scientific community estimates that the first financial effects of rising sea levels will be felt in a matter of two decades. Some highly regarded scientists project an earlier date, around one decade from now. Either way there is one harsh truth, no area in the country will feel more of an impact from rising sea levels than South Florida and much of that financial impact will come from real estate.

Storm a comin'

“Even a six-inch rise would cost the area much of its acreage.”

A three-foot rise in sea levels would change South Florida as we know it, leaving a large part of the region under water, but even a six-inch rise would cost the area much of its acreage. The timetable for when such a rise would occur is not completely reliable, but the most widely used projection is that of the Army Corps of Engineers. This group projects that South Florida will see a three- to seven-inch rise in sea levels by 2030. A sea level rise of nine to 24 inches could be expected by 2060.

According to a group formed by the Miami-Dade, Broward, Palm Beach and Monroe Counties called the Southeast Florida Regional Climate Change Compact, the region would lose up to $4 billion in taxable real estate from even a one-foot rise in sea levels. A three-foot rise would cost around $31 billion or more.

Professionals are beginning to wonder when the devaluation of waterfront property in South Florida will begin. Most likely, this process will occur as flooding in the area begins to increase. Along with the inconvenience of constantly flooded streets, buyers will grow wearisome of rising premiums for flood insurance. Most climate change experts expect this to begin occurring a decade from now.

However, there is hope for normalcy in the future of South Florida real estate as many entities have already started planning for these events. For example, the City of Miami Beach has dedicated $200 million to stop flooding in South Beach over the next 20 years. The real estate industry itself is also preparing. Many urban planning groups are taking rising sea levels into consideration when discussing projects with developers.

These are all strong first steps, but more work will need to be done to prepare for drastic changes in regards to waterfront properties or perhaps to attempt to prevent some of this damage from being done. Over the next decade, South Florida should be a melting pot of interesting and revolutionary ideas that will help the real estate industry overcome rising sea levels.

Over the summer statistics pointed to South Americans as the heroes in the South Florida real estate market. However, recently it seems that cash-buyers from down south may have some competition in the northeast. That’s right, the new boon to the Miami market is coming from the Big Apple.

Brokers in the area have reported a 25 percent uptick in purchases from New Yorkers. Our northeast neighbors are now competing with foreign investors for prime Miami real estate and, in many cases, are willing to pay more. The main reason? Their lack of sensitivity to rising prices in the area. New York is widely known as one of the most expensive markets in the country, giving residents of the state a thick skin for the prices in Miami’s luxury markets.

New York is now the largest feeder market for South Florida. As a matter of fact, New Yorkers have accounted for approximately 15 percent of sales in the luxury real estate market this year. Luxurious condos in Brickell are seen as a bargain in comparison to Manhattan prices.

Purchasing real estate in Miami has tremendous benefits for New Yorkers, as well. The main bonus for these buyers is the opportunity to escape their rising state taxes and head on down to Florida, where there is no state income tax . Setting up shop in South Florida has become a great way for high earners from New York to save a ton of extra cash, making it so that these luxury condos practically pay for themselves.

Of course, New Yorkers do not have to sacrifice much culturally when making the move to Miami, either. Like New York, Miami has no lack of places to visit or events to take part in. Specifically, the rising Wynwood art scene and multiple cultural festivals make for an easy sell to prospective buyers looking for the New York lifestyle.

With their low sensitivity to Miami’s beachfront prices and their desire to escape burdensome income tax, New Yorkers are making the transition without missing a beat. With buyers coming from both foreign and domestic regions, the Miami-Dade market is on the rise.

This summer we discussed the battle for the future of the Miami Beach Convention Center between developers Portman-CMC and South Beach ACE. In July, beach commissioners decided that they agreed with South Beach ACE’s vision for the future of the convention center district. Little did the city know that at as quickly as one battle would end, a more onerous one would begin.

Tomorrow, when the voters of Miami Beach visit the polls, they will face a choice between candidates who would like to see the South Beach ACE vision through and those who would like to see the project scaled down. Citizens will also be voting on a referendum that could move the amount of votes to approve the convention center project from a simple majority to a super majority, requiring 60 percent of the vote and making the project more difficult to pass.

However, most agree that the issue is not whether the convention center should be renovated at all, as it clearly needs an update. The convention business is a key contributor to the tourism dollars that are the foundation of the city’s revenues. The city cannot afford to let that activity slide down.

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Rendering of the proposed Miami Beach Convention Center renovation

The real debate is in regards to whether the project is worth the bill to the taxpayers or if the vision is too grandiose. If the project were to stay as is, taxpayers in Miami Beach would be on the hook for $600 million. An amount that would be covered by a pre-approved increase in hotel taxes, as well as land leases and county taxes.

The 800-room hotel proposed by South Beach ACE has also been the center of quite a bit of controversy. If approved, South Beach ACE would lease public land for 99 years in order to build a hotel for the convention center, as well as 90,000-square feet of retail. Some city officials worry that 99 years would be too long a period for the city to lease such important land.

High-end hotels have also taken issue with the idea of making the hotel a place where convention-goers could escape some of the higher hotel rates in the beach area. The Fontainebleau, for example, has donated $15,000 to Let Miami Beach Decide, an organization supporting efforts against the current plan. Beach Commissioner Jonah Woflson, who set up the Let Miami Beach Decide movement, agrees with the Fontainebleau’s motives, claiming that Miami should stay “a high end destination.”

Either way, the saga of the Miami Beach Convention Center renovation continues to captivate with every new chapter it enters. This week will be the biggest milestone yet for the future of the project. All eyes in Miami-Dade County will be on the voters in Miami Beach tomorrow.

For more on the politics behind tomorrow’s decision, take a look at this article from the Miami Herald.

“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.

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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.