Archives for posts with tag: Downtown Miami

Fabio Photo

Mr. Faerman has been Fortune international Realty’s #1 Top Producer Broker for the last three years, and a member of the Platinum Circle of sales for more than 10 years now.

For the third year in a row, Fabio has achieved the recognition as Fortune International Realty’s # 1 Top Broker. Exceptional professional ethics, superior understanding and mastery knowledge of commercial real estate are the qualities that make Fabio F. Faerman a top producer broker with over $500 M in commercial properties sales.

Fabio received this honor on Monday, February 29, 2016, during the annual Fortune Awards Ceremony held at the exclusive Brickell Avenue’s Conrad Miami Hotel. The award was presented by Edgardo DeFortuna, president and CEO of Fortune International Realty, Miami’s leading brokerage firm with a global reach.ea

“This prestigious recognition is a very significant achievement, not only for me but also for my entire team. I am very excited to provide my clients with the most exceptional service, and guiding them through the commercial real estate process with absolutely personalized care” said Fabio F. Faerman.

Fabio is always seeking excellence and performing at the highest level. Being an exceptional leader in Miami’s commercial real estate industry; Mr. Faerman closed the highest overall transaction volumes in commercial property sales and leases becoming the number 1 top producer broker on Fortune International Realty.

2015 was a very active year in the commercial real estate market seeing office sales at their highest levels in years and a decline in the vacancy rate, as well as hotel and retail development increases.  Fabio has made the most of these market conditions leading the sales team of One Flagler, a condo office conversion in the heart of downtown Miami. One year after winning the exclusive sales assignment of One Flagler, the iconic building is 90 percent sold. Constantly a contributor to Miami’s commercial real estate growth, Fabio has brought new and exciting businesses to the city as the one located at Millicento retail spaces in Brickell & Icon Brickell retail spaces. 

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About the Awards
Fortune International Group held once a year the Fortune Awards Ceremony where President and CEO Edgardo Defortuna takes the stage to congratulate Fortune’s top producers. Top producers made 2015 a success with over 4 billion in general real estate and development sales combined.
About Fabio F. Faerman
Fabio F. Faerman is the President & Chief Executive Officer of FA Commercial Advisors – Fortune’s Commercial Division. FA Commercial 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. Fabio has acquired a degree in Architecture from the University of Buenos Aires, a Master’s degree in Construction and Real Estate from the University of Madrid. He is also a Certified Commercial Investment Member and a Commercial Real Estate Investment Advisor.

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

Watch the interview now:

One Flagler

Article from DBR

Nearby, One Flagler at 14 NE First Ave. in downtown Miami plans a condo conversion that will sell its 141,000 square feet to investors, the Daily Business Review has learned. Following a $7 million renovation of the 1952 building, the goal is to sell office suites at $285 per square foot, according to a broker arranging the marketing.

Fabio Faerman, commercial division vice president at Fortune International Realty, told the DBR that investors can expect returns of 4.5 percent from renting the properties. Like Ballestas, he said the influx of money is coming from Latin American and European buyers looking for a cash-producing assets and feeling squeezed by the thin margins on residential condo rentals.

“The condo office product always gets hot when the residential market gets too saturated with product available for sale,” Faerman said.

 
Read full article at: http://www.dailybusinessreview.com/id=1202667920431/Downtown-Miami-Office-Space-Being-Sold-Off-To-Investors#ixzz3BVm3SOtI

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.

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.

artbasel

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 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.

Brickell_01

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.”