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Fabio F. Faerman of FA Commercial is proud to announce the sale of the superior retail space in ICON Brickell which is now the home to the recently opened high-end Mexican restaurant: “La Cantina No. 20”. Faerman was also the one to assist with the lease of the property and he accomplished this incredible task after only two months specifically looking for the most exclusive tenants. After careful consideration, he found the perfect tenant: a very special group that owns over 30 high-end restaurants in Mexico with a unique style each. The magnificent retail space is composed of 3 floors with covered and open air terraces apart from the main restaurant space; kitchen space in lobby level, back of the house, storage spaces, built out bathrooms and direct river-walk access.

It’s an exciting announcement for the non-stop growing Brickell area. These types of restaurants capture international attention and continue to exemplify Brickell as a worldwide recognized spot where everyone wants to be. “This property was on the market before for almost four years,” said Faerman. “We focused our search on high end restaurants outside of Florida and we repositioned Icon as a brand spot and the only space left on the water in the entire Brickell area.”

Icon retail faces the Miami River waters, and is surrounded by a bay walking area. Beautiful and relaxing views come with the space. Displaying a view of the breathtaking waterfront, La Cantina will manifest a reputation for the Icon Brickell as a must-see destination in one of the most active areas in the city of Miami.

Fabio F. Faerman and his team at FA Commercial are pleased to contribute to the progress of commercial real estate market with deals like these. Faerman also recently assisted in the lease of Cipriani and a high-end restaurant located at 999 Brickell.

 
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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FA Commercial is proud to announce the recent sale of the strip center property located at 4322 Hollywood Boulevard in Hollywood, FL.  Fabio Faerman of FA Commercial brokered the deal as a representative of the seller.  Initially, Fabio was the broker who sold the property in 2009 while it was being leased to Blockbuster, a provider of home movies and video game rental services.  A few years later, Blockbuster was closed due to bankruptcy.  Instead of opening the property up to a new tenant in 2012, Fabio suggested that the building which was originally built in 1989 to be renovated and divided into three separate spaces.  After the renovation of the building, Fabio set out to bring in national tenants to the center, and soon enough Jimmy John’s and For Eyes had become the strip center’s new tenants.  Jimmy John’s is a well-known franchised gourmet sandwich restaurant that has grown to more than 1,800 locations and For Eyes is a major retail optical company that has been operating since 1972.

After the successful opening of the two new tenants, Fabio was able to broker the deal and the newly renovated property was sold for $1,220,000.  With the strip center having a land area of 18,388-square-feet and a 5,974-square-foot building size, the sale amounted to $204 per square foot.  The strip center is in close proximity to I-95 and the Florida Turnpike allowing for convenient access to Fort Lauderdale, Miami and other points of interest in the South Florida region.  Just a few minutes away is the location of the Young Circle ArtsPark which is a dynamic inner city park featuring 10 acres of lush green space, a spectacular fountain and a modern Amphitheater which is regularly used for public shows and concerts.  The deal proved to be very positive as the investor made an ROI of 78% and an IRR of 32% on the holding period.

Fabio Faerman and his team at FA Commercial are pleased to contribute to the progress of commercial real estate market with deals like these. Faerman also recently assisted in the sale of the land used to develop ECHO Brickell. The residential high rise on the east side of Brickell Avenue features 180 state-of-the-art residences. Designed by renowned architect Carlos Ott, the building has added to Brickell’s status as an international destination.

 

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

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.

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.

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“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.

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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.”

This summer, Swire acquired the rights to the 1.5 acre site at 700 Brickell Avenue for $64 million. We all knew that their plans for the property were big. Now it turns out those plans could actually be the largest that Miami has ever seen.

Swire has proposed a project to the City of Miami that, if approved, could end up becoming Miami’s tallest building and easily the tallest project currently under construction in the crane-flooded streets of South Florida. One Brickell CityCentre, the proposed 80-story tower, would be connected to phase one of the CityCentre project in downtown and would be covered by the project’s climate control trellis.

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Rendering of One Brickell CityCentre

Designed by Arquitectonica, the tower would add more Class-A office space, condos, retail and even another hotel to downtown’s development. Upon completion, One Brickell CityCentre would be seen as the gateway to the entire mega-project. The tower would be built not only on the 700 Brickell site, but also on the Eastern National Bank building property that Swire acquired in 2011 for just over $13 million in 2011, combining for a total of 2.7 acres of land area ready for development.

Swire has estimated the total economic impact of One Brickell CityCentre at $851 million. The project would create over 2,000 construction jobs at peak manpower and nearly 2,500 permanent jobs once it is completed according to an analysis by the Miami Economic Associates. They also project the tower to bring in over $137 million in sales tax to the state of Florida.

The hope for Swire is that the city will approve One Brickell CityCentre as an extension of the current project. If this were to happen, it would save them the trouble of going through a new grueling approval process with the City of Miami. Phase one of the Brickell CityCentre is still currently set for completion in 2015.

Walgreens signed on to the Department of Energy’s “Better Buildings Challenge” with the goal of reducing their energy use by 20 percent by the year 2020. This November, they will be taking such a large leap towards that goal, it may raise the bar for retailers across the nation.

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Rendering of net zero Walgreens in Evanston, Ill.

The first “net zero energy” Walgreens is currently being prepped to debut on November 21 in Evanston, Ill., just north of Chicago. Walgreens hopes that their experimental new store will actually produce more energy than it uses. In order to achieve this goal, they will be putting an abundance of progressive ideas to the test.

For one, the city of Evanston passed an ordinance allowing Walgreens to place 37-foot-tall wind turbines in their parking lot. The store’s sloping roof will consist of well over 800 solar panels used to harness solar energy. However, perhaps the most intriguing piece of the puzzle will be the geothermal energy system hundreds of feet beneath the store. The system will consist of five geothermal wells, dug approximately 500-feet below the store’s foundation, that will utilize energy from subterranean temperature shifts to provide heating and cooling.

If all of these technologies live up to their expectations, engineers estimate that the Evanston Walgreens will use around 200,000 kilowatt-hours of electricity over a year while generating 256,000 kilowatt-hours over the same period of time.

Of course, this project is not without it’s own risks. The construction cost of the Evanston Walgreens will be about twice as much as construction on a typical Walgreens. However, the executives plan to recoup their expenses through a myriad of different resources. For example, they will be taking advantage of rebates from utility companies as well as federal government tax credits. Most importantly however, Walgreens hopes to recoup costs through the energy savings that the store will provide them with.

Either way, this store will become a test for which energy technologies are the most cost-effective. Once the folks at Walgreens determine that, they will be set to develop a prototype for 100 additional stores made in the Evanston image. If Walgreens, a store where you can pick your favorite ice cream out of a freezer while you wait for your photos to develop, can find a way to generate more energy than they use, it will set a new standard for all retail.

The investors behind the new Miami Worldcenter development in downtown are hoping to bring in some flagship retail for their 750,000-square-foot-mall, and they just may get it. Earlier this week, the South Florida Business Journal reported that the Worldcenter hopes to land Macy’s to anchor acres of restaurants and retail.

For those that have not yet heard, the Worldcenter is yet another mega-project set for development in downtown Miami. The project will be located within blocks of Biscayne Boulevard, the Metrorail and the Metromover. It will also stand between downtown landmarks such as the American Airlines Arena, where the last 3 NBA Final’s champions have been crowned, and the Adrienne Arsht Center, home to Broadway in Miami.

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Rendering of the Miami Worldcenter

Investors in the Miami Worldcenter are turning to The Forbes Co., and Tauman Centers to help snag Macy’s for the upcoming development. Forbes and Tauman already have a level of familiarity with Macy’s. Their Orlando mall, The Mall at Millenia, already has one. Another well-known retailer may also be in the cards for the Worldcenter. Bloomingdales, which does not yet have any stores in the downtown area, has also been rumored to be part of the move.

Spokespeople for Macy’s, as well as those for the Worldcenter, would not comment on whether or not a deal between the two was in the works. However, if the Worldcenter manages to find big name restaurants and retail capable of fitting their square footage, this could be one of the more exciting developments out of many in the downtown area. The Worldcenter may have the potential to be on the same level as Swire’s Brickell CityCentre, with the capability to transform the downtown landscape.

Developments such as these make it clear that now is the time to invest in South Florida. The South Florida real estate market, which was originally not projected to rebound until 2016, has seen the median sales of condos spike 27.5 percent in one year, to go along with a 20.5 percent uptick in single-family home sales. With every passing day, as new cranes go up in the downtown skyline, South Florida is quickly becoming the place-to-be for affluent buyers.