Archives for posts with tag: Design District

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.

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In recent months we have seen that the Greater Downtown Miami has become the epicenter of the recovery in the construction of the new condominium buildings. This creates a demand for land which has intensified enough for the sale of them to produce attractive prices for the sellers.

For the developers the most important number is the incidence on the price per unit of land that can be built. We see in the sales values ​​measured with impressive higher prices that sometimes impress us with the price, but does not really show if the financial analysis is feasible for the project.  The developer needs to invest his monies or his investors monies for a minimum of 4/5 years with the risks associated with the purchase of land, project & design process, construction plans, budgets, construction, sales and closings.

Some of the recently sales transactions of land are the following:

$28.2 Million for Miami Riverfront, 5 ST, Brickell

Potential units:  1,000

Incidence of land per unit: +/- $28,200

– $3 Million for Unika by the Design District Project, Midtown

Potential units: 180

Incidence of land per unit: $17,000

World Center Miami/ Former Miami Arena

Cost of Land: $35 Million

Potential Units:  1,400

Incidence of land per unit: $25,000

Tobacco Road

Cost of Land: $12,250,000

Potential Units: 500

Incidence of land & units: $24,500

– Infinity 2

Cost of Land: $18,500,000

Potential of Units: 582

Incidence of land & units: $27,000

The sellers find themselves divided into those who really understand this equation and sell, or put aside their land at market prices and those who believe that their land can fetch high prices.They do not reflect the reality of the developer or his development risks.  We can see that the average incidence is around 25,000 units but can be higher or lower according to its location and ease of putting together a project with very good views and low cost of implementation.

Our job as investment sales is for the seller to help them understand the financial analysis of the buyer and to reach an arm length transaction where both parties can be satisfied.  Speculating that future sales prices exceed the present value is only a stake a buyer with bad advice would take, the ones that have no experience in the local market or the ones that won the lottery and believe they can develop a project of more than 100 units is as easy or difficult as choosing the 6 number for the lotto.

Fabio F. Faerman

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Picture above: Unika by the Design District Project