Archives for posts with tag: Shopping

 

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FA Commercial is proud to announce the recent sale of the Plaza 8 St. Neighborhood Shopping Center located at 9600 SW 8th St. in Miami. The property was sold for $8,450,000. Fabio Faerman of FA Commercial brokered the deal as a representative of the seller. In the midst of the process, the side lot had to be appraised in order to be part of the deal. The result of the appraisal brought the property value to the price proposed by FA Commercial.

The 55,814-square-foot plaza, built in 1988, is currently 96 percent leased to tenants including New Era Health Center and Pizza Hut. New Era Health Center is a provider of mental health services and Pizza Hut is a national tenant with over 6,000 restaurants in the United States.

The location of the plaza provides the buyer with a unique opportunity for future growth, given the condensed population within the area. Sitting between the Florida Turnpike, Palmetto and Dolphin Expressway, the area attracts a strong amount of traffic with around 54,500 vehicles passing by per day. The plaza itself has direct access to two streets.

The plaza provides those in the area with a destination to seek services or simply go shopping. The land also has the potential to add a freestanding building and bring another national tenant into the community.

Fabio Faerman and his team at FA Commercial are pleased to contribute to the progress of Miami’s 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.

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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.

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.

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.