Archives for posts with tag: commercial realty professionals

Heater

Fabio Faerman represented the landlord in the signing of a Multi-Year lease for ‘Eat Greek’ new location in Brickell Avenue.

Fabio Faerman of Fortune International Realty / FA Commercial represented the landlord in this lease transaction.  

The space area is located next to La Provence in 1060 Brickell Avenue. This deal was signed for a 10 years lease plus 1/5 year option. Mr. Faerman led this second generation lease transaction from conception to execution, representing a total value of $2 Million.

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Eat Greek is an authentic, affordable Greek restaurant. This casual restaurant opened its first spot in South Beach then an expansive sibling in Edgewater, and now in the heart of Brickell Avenue. Decked out with murals of ancient gods, a vertical herb garden and a real Greek atmosphere gracious, friendly and hospitable. The varied menu hits all of the Hellenic highlights, from hummus, baba ghanoush, souvlaki and gyros to lamb chops and branzino.

Brickell, a premiere Live, Work, Play destination in south of Florida it’s a rapidly-growing area just south of downtown that is central to the city’s banking culture—and, increasingly, Miami’s culture at large. Brickell personifies the new Miami: it is rich, multicultural, and intensive, having become an “overnight neighborhood” of gleaming skyscrapers whose designs and coloration reflect the coral blue waters of Biscayne Bay.

Fabio Faerman and his team at FA Commercial are thrilled to contribute to the progress of Brickell and the entire South Florida’s commercial real estate market with deals like this. Recently, Mr. Faerman proudly assisted on the closing of many deals 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.

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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 extensiveinternational 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.

Contact Information:
Fabio Faerman • CCIM • MBA • Broker Assoc.
Cell/WhatsApp +1.786.262.9966 • Office 305.400.6395
commercial@fir.com • www.facommercial.com

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Fabio Faerman Closes Bulk Sale Of Miami Condo Units For $6.7 Million

Aug 12, 2015
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FA Commercial’s Fabio Faerman closed a $6.7 million bulk deal for a total of 21 units at Mint Condominium, located at 92 SW 3rd Street in Miami.

Faerman was the broker of record in the all cash transaction.

The deal represented an opportunity for the buyer to acquire a large number of units in the prime downtown building, strategically located in the epicenter of Miami’s flourishing cultural arts scene.

Situated on the eastern side of downtown Miami, Mint at Riverfront was built in 2010, designed by the renowned Revuelta Vega Leon  Architects and developed by Key International.

Mint – Press Release

Univision Noticias interviewed Fabio Faerman regarding Beckham Group new MLS stadium in Miami.

Watch the interview now:

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.

“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.

With the pace of development rising and home prices ticking upwards, it seems we may finally be reaching the light at the end of the tunnel for real estate markets. However, a failure to acknowledge future problems will only lead to more of the same. In an article for the National Real Estate Investor, David J. Lynn, Ph.D. discusses the following two issues facing commercial real estate in depth.

The Modern Office Space

Technological advancements have clearly redefined the structure of the typical office. As employees have gained the ability to connect to their clients, co-workers, and supervisors through various electronic mediums, the need for cubicles and offices has dwindled. Lynn cites CoreNet Global, stating that dedicated space per office has reduced to 176 sq. ft. in 2012 from 225 sq. ft. in 2010.

Beyond this, technological advancements have raised questions about whether employees even need to commute to their office. There has been a rise of independent contractors working from home and participating in meetings and conferences through virtual means.

Businesses that do encourage their employees to work from the office have also changed their way of thinking. The traditional cubicle setting has been exchanged in favor of more open space, giving employees the flexibility to move around and collaborate with each other.

Investments must be adjusted accordingly from the traditional office space to the more progressive, technology-friendly settings in order to move with the times. As of now, however, there is a fear that office space could be facing a grim future.

The ‘Echo Boomers’

From 1982 to 1995, the baby boom generation spawned a new large group of young people now known as the “echo boom” generation. This group of young adults is ready to move out and create a huge impact on the national economy through demand for housing.

The problem seems to lie in the fact that the echo boomers are leaving their homes for more urban areas. This is due to a variety of reasons including the vast nightlife, amenities, and restaurants offered by cities. However, this phenomenon is mostly due to the increased employment opportunities that cities provide in comparison to suburban areas. Echo-boomers are even willing to trade size of residence for proximity to these locations.

The echo boomers are not necessarily dependent on motor vehicles. They enjoy walking, riding bicycles, and even mass transit. Echo boomers are also not looking to buy homes, but choose to rent instead. These characteristics all make the city more appealing than the suburbs for the echo boom generation.

As there is increased demand in these urban areas, the suburbs will begin to see bumps in the road. Demand for housing and/or retail space will very likely decline and tax revenues will shrink. Lynn suggests that suburbs take action to modernize by investing in mass transit, parks, and other ways to create more urban surroundings in hope of attracting future generations.