Portman-CMC Reveals Cost-Effective Master Plan for Miami Beach Convention Center

By Georgiana Mihaila, Associate Editor

After last month’s buzz over the stunning South Beach ACE proposal for the Miami Beach Convention Center, it is now time for the contending development team to take the spotlight. Portman-CMC, which is also bidding to re-develop the 52-acre Miami Beach Convention Center, has focused on the potential financial benefits of the development.

In a letter of intent addressed to the City of Miami this week, Portman-CMC laid out the proposal’s business and management terms, emphasizing the ongoing cooperation with city staff and officials when it comes to financing, management and land leases.

“One of the key areas we focused on was making public financing for the project responsible and sustainable, minimizing cost and risk to the city’s pocketbook,” said Ambrish Baisiwala, CEO of Portman Holdings. “For example—no new taxes and less bonding in order to finance the convention center improvements and expansion, as well as associated parking and infrastructure improvements.

“Additionally, our plan fast-tracks construction and phasing, shaving at least a year off of what many would consider the duration of this project in an attempt to generate a faster return on revenues for the city.”

Portman-CMC’s vision and overall approach to the redevelopment includes maintaining low building heights, providing a high level of connectivity to surrounding areas, creating a superior urban environment for conventioneers and residents, and maximizing the economic benefit to the City of Miami Beach. Focusing on convention center, hotel, retail, cultural and entertainment uses, the plan also includes the preservation of Fillmore Miami Beach at the Jackie Gleason Theater.

According to the Portman-CMC blog, city commissioners and staff have responded in a positive way to their proposal, as it would seem to be more economical for the city. The project would be constructed one year faster and would call for less public funds spending.

When comparing the two, the Portman-CMC proposal calls for $73.4 million less in public costs and would charge fewer fees to Miami Beach. Yet it would spend more in cultural facilities—calling for an $88 million investment in cultural facilities, as opposed to $6.3 million.

The final decision, originally scheduled for June 5, was pushed back, the South Florida Business Journal reports. Miami Beach commissioners, apparently overwhelmed by the high volume of information, need more time to evaluate the benefits of each of the two proposals and have not yet released an official date for announcing the development team of the $1 billion-plus redevelopment.

Images via Portman-CMC

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Parkway to Pay $66M for Fully Leased Miami Property

 By Georgiana Mihaila, Associate Editor

In a move to expand its presence in South Florida, Parkway Properties Inc. will be buying the 140,000-square-foot Lincoln Place for $66 million in debt and stock, the South Florida Business Journal reports. The company recently announced entering into a purchase and sale agreement to acquire the South Beach office/retail building and add it to the portfolio of 45 office properties in eight states—with an aggregate of approximately 13.0 million square feet in which the company has interest.

“We are excited for the opportunity to expand into the South Florida area,” said James R. Heistand, Parkway’s president and CEO.  “We believe this market is in the early stages of a recovery and has the potential to improve quickly given the diversity and vibrancy of its economy.  Additionally, the South Beach submarket is highly land constrained and boasts a current vacancy rate of only 8.7 percent.”

He added: “Lincoln Place is a high-quality, core asset located one block away from the world-class retail destination of Lincoln Road.”

Built in 2002, the Lincoln Place property consists of 111,000 square feet of office space, 29,000 square feet of retail space on the ground floor, and an adjacent five-story garage with 534 parking spaces. The property is currently 100 percent leased to LNR Corporation through June 2021 with no renewal or early termination options.

Company officials say that Parkway is under contract to acquire Lincoln Place in exchange for the assumption of the existing secured first mortgage, which has a current outstanding balance of approximately $49.6 million, a fixed interest rate of 5.9 percent that matures in June 2016, and the issuance of 900,000 operating partnership units. Based on Parkway’s closing stock price of $18.20 on May 3, 2013, the implied purchase price would be approximately $66 million, or $472 per square foot.

The deal is expected to close by the end of the third quarter of 2013, subject to customary closing conditions, the successful assumption of the existing first mortgage, and Parkway’s satisfactory completion of due diligence.

Images via CoStar

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Three-Building Industrial Portfolio in Sunrise Trades for Nearly $40M

By Georgiana Mihaila, Associate Editor

CBRE recently assisted Irving, Texas-based Cobalt Capital Partners in finding a buyer for a three-building, Class A industrial portfolio located within the prestigious Sawgrass International Corporate Park in Sunrise, Fla. Industrial Income Trust of Denver paid $39.35 million for the Sunrise Distribution Center, located at 900 International Pkwy., 14599 NW 8th St. and 13801 NW 4th St.

Totaling 401,650 square feet and featuring 24- to 26-foot clear heights, the buildings in the portfolio were first acquired by Cobalt Capital in August 2010, at the time boasting a 91 percent occupancy rate with one vacancy. Cobalt leased the vacant space and renewed two other tenants on a long-term basis during its ownership.

“This transaction is a good example of our value-add program in the light industrial sector,” said Lewis D. Friedland, Cobalt’s Managing Partner. “Through leasing activity and capital improvements, our asset management and leasing teams worked together to add a significant amount of value to this asset for our investors.”

As part of the Sawgrass International Corporate Park, the buildings benefit from access to nearby interchange of I-75, I-595 and Sawgrass Expressway. Buyer Industrial Income Trust owns two other properties within the Corporate Park.

Christian Lee and Chris Riley, both vice chairmen within CBRE Investment Properties, represented seller Cobalt Capital Partners, assisted by Charles Foschini, vice chairman of Debt & Equity Finance; Tom O’Loughlin, vice president of Industrial Properties Brokerage; and José Lobon, associate of Capital Markets Institutional Group.

In other industrial news, Terreno Realty Corporation signed a Miami-based paperboard packaging and printing company to occupy one of its properties in Doral, Fla. The company, whose name has not been disclosed, will occupy the entire 75,000-square-foot facility at 1401 NW 78th Ave. starting June 1, 2013, with the lease ending October 2020.

Images via Cobalt Capital Partners

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PREI Enters Brickell District with $185M Office Tower Purchase

By Georgiana Mihaila, Associate Editor

The 30-story, Class A Sabadell Financial Center located in the upscale Brickell Financial District of Miami recently traded owners. The buyer, Prudential Real Estate Investors—acting on behalf of institutional investors in its flagship core open-end commingled fund—paid $185 million for the high-profile property, also known as 1111 Brickell.

PREI, the real estate investment, management and advisory arm of Prudential Financial Inc., purchased the tower from Spain’s Testa Inmuebles en Renta, which paid $132 million for the building back in 2002, the South Florida Business Journal reports. Testa is the property-rental arm of Sacyr Vallehermoso, one of Europe’s largest commercial real estate and construction conglomerates. This latest acquisition reflects PREI’s strategy to capture opportunities for investors created by the neighborhood’s attributes.

Sabadell Financial Center, located right between Brickell Avenue and Brickell Bay Drive, is one of Miami’s most desirable and best placed office buildings. Originally built in 2000, the 523,000 square-foot building is 85 percent leased to a mix of prominent financial services companies and major law firms.

The building is connected to the 22-story JW Marriott Hotel, which is not part of the acquisition but serves as a convenient amenity for the office tower. Sabadell Financial Center recently commenced the process of attaining LEED certification for existing buildings with an objective to achieve an Energy Star 25 rating and a Silver Certification.

PREI has disclosed plans of enhancing the property through additional capital investments designed to attract new multinational and regional tenants, while also retaining existing occupants.

“With Miami growing in stature among the top business and financial hubs in the Americas, the timing was ripe for PREI’s entrance into the Brickell market,” said Cathy Marcus, managing director at Prudential Real Estate Investors and senior portfolio manager for the firm’s core open-ended equity commingled real estate strategy. “With a location in the sought-after Brickell district and an enviable tenant base, Sabadell Financial Center is a perfect fit with our investment strategy.”

Miami-based Blanca Commercial Real Estate will be spearheading the leasing and marketing efforts for the 30-story tower.

Image via 1111 Brickell official website

Iconic Miami Tower Wraps Up First Sky Lobby Modernization

By Georgiana Mihaila, Associate Editor

Looking to retain its spot as a premier business address, Miami Tower has just completed a major renovation and modernization of its Sky Lobby. The lobby—a unique configuration of indoor and outdoor space—encompasses nearly 35,000 square feet and is marketed as a place where the public and private can gather in a contemporized space, upgraded with modern technologies and amenities.

“The design of the Sky Lobby modernization enables the space to be an accessory to the I.M. Pei design, where the features add character to the building, rather than to compete,” said Eric Groffman, senior vice president with Transwestern, the exclusive leasing agent for Miami Tower. “Less than two years after purchasing the asset, the ownership reinvested into the property, anticipating a strong reaction from existing and prospective tenants alike.”

This is merely the first in a series of modernization works. Phase I added a free flowing one-of-a-kind art sculpture mounted on a main wall, designed by Miami designer Peggy Nye & Lodin; a 21-foot by 14-foot glass wall that creates a central focus for the Sky Lobby, work of the same designer; furniture segmented into quads, featuring orange Knoll Studio accent chairs and stools, flat panel monitors, cafe dining furniture and outdoor lounge chairs, bar stools, bar tables and several unique shade sails; as well as white leather sofas and lounge chairs in the interior space, all classics designed by Le Corbusier in the late 1920s.

The 618,990-square-foot, 47-story Class A Miami Tower is one of Miami’s most recognized office buildings, marking the local skyline with its changing palette of exterior lighting schemes, which feature seasonal, city, sports and private event themes. Designed by legendary architect I.M. Pei, Miami Tower is located at 100 S.E. 2nd Street and is home to notable tenants such as UBS, Carlton Fields, Boies, Schiller & Flexner LLP and Genovese Joblove & Battista PA, all of which have either renewed and/or expanded within the past 24 months.

Image courtesy of Marc Averette

Walmart Supercenter Opens in Davie, Adds 300 Jobs

By Georgiana Mihaila, Associate Editor

A grand opening ceremony was held on April 10 for the new 154,400-square-foot Walmart Supercenter, where residents gathered to celebrate both the new retail options and the addition of 300 new jobs to the town of Davie, Fla.

The town’s residents, Mayor Judy Paul and local organizations such as the Davie Police Athletic League, Ease Foundation Inc. and the Make-A-Wish Foundation of Southern Florida attended the opening. The organizations were given an extra reason to celebrate, as they were presented with $3,750 in grants from Walmart and the Walmart Foundation. Cowboys on horseback served as greeters to celebrate the store’s grand opening in ‘horse country.’

“Davie is looking forward to Walmart’s strong community commitment,” said Davie Mayor Judy Paul. “Walmart’s campus is a tribute to Davie’s mission of green space and will hopefully be a model for other communities. The employment of approximately 300 people, many local residents, will certainly help the area economy.”

The store features quality, value-priced general merchandise including apparel, electronics, toys, sporting goods, and lawn and garden items. Additionally, unique to this store—which is located in ‘horse country’—is an agricultural feed supply section, where local residents can buy feed for farm animals. It also offers a full line of groceries, including organic and natural selections in addition to local favorites. The store offers a pharmacy with a full range of products and services.

It is estimated that solid tenant demand and minimal retail construction will push vacancy in the area way down in 2013, generating the most significant rent growth since the recession struck. For the Miami-Dade area, developers will add 450,000 square feet in 2013, with the largest project underway being the 520,000-square-foot retail component of the Brickell CitiCentre, which is to be delivered to the market in 2015.

Chart Courtesy of Marcus & Millichap

South Beach ACE Unveils Breathtaking Proposal for Miami Beach Convention Center

By Georgiana Mihaila, Associate Editor

With the competition for the spot to assist the City of Miami Beach in the redevelopment of the Miami Beach Convention Center coming down to two contenders, South Beach ACE recently unveiled its master plan. The company’s development team consists of New York City-based firm Tishman, which had a major input in the development of the original World Trade Center twin towers and the currently under-construction One World Trade Center; Miami Beach development firm UIA Management, the firm behind the 1111 Lincoln Road project; and international architecture firm OMA, led by Pritzker Prize-winner Rem Koolhaas.

The team is looking to breathe life into one of Miami’s Beach most underutilized public sites by delivering a fully revamped convention center capable of luring major events from around the world, an iconic hotel, inviting green spaces, low-density retail uses, and cultural venues, ArchDaily reports. Elements of the master plan that stand out are a comprehensive renovation of the Jackie Gleason Theater and a strategy to increase the site’s connectivity by adding multiple connections with Lincoln Road and surrounding neighborhoods.

South Beach ACE continues to seek community feedback on their attempt to reconnect the city and the convention center by creating a green, cultural and civic heart for Miami Beach centered around a contemporary, first class convention space. Feedback is welcomed on the partnership’s website and at a series of public meetings hosted by the city.

The contending developer—Portman CMC, led by developer Jack Portman—will be presenting its master plan to the community in May. So far, the developer has announced the addition of a multi-purpose space/ballroom and meeting space; a new convention center headquarter hotel; outdoor public spaces; parking; restaurants; entertainment; retail and other commercial uses that are economically viable; and residences.

Local 10 reports that Portman CMC is also working with Cirque du Soleil, having indicated plans to bring the art-inspired circus act to South Beach. The Miami Beach Commission is expected to choose the winning development team over the summer.

Image courtesy of South Beach ACE Facebook

Formerly Distressed Harvard House Re-opens after Major Renovation

By Georgiana Mihaila, Associate Editor

A formerly distressed North Miami Beach apartment complex recently reopened after undergoing an $8 million redevelopment process led by nonprofit affordable housing developers Carrfour Supportive Housing and the National Housing Trust.

The redevelopment of Harvard House Apartments was made possible through support from the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP), which aims to revitalize neighborhoods that have been negatively impacted by properties that were foreclosed upon or abandoned as a result of the recession.

“Harvard House is a perfect example of how the federal government’s NSP program is breathing new life into local communities,” said Stephanie Berman, president of Carrfour Supportive Housing. “Beyond providing much-needed housing for families and individuals in need, we rescued an asset from distress, thus injecting new life into a deteriorating neighborhood. We are not only rebuilding apartments, we are rebuilding an entire community.”

The reopening was celebrated on March 19, when developers Carrfour and NHT organized a special reception and ribbon-cutting attended by several elected and non-elected government officials, including NSP Team Leader John Laswick of the U.S. HUD Office in Washington, North Miami Beach Mayor George Vallejo, and Miami-Dade County Commissioner Sally A. Heyman.

The newly redeveloped community will now offer affordable housing to approximately 140 low-income residents. Located at 2020 NE 169th St. in North Miami Beach, the apartment community consists of 56 newly-renovated units designated for families earning at or below 50 percent of the area’s median income.

Carrfour Supportive Housing, the non-profit developer that rescued Harvard House from foreclosure and redeveloped it, has completed the acquisition of two similar complexes in Miami. The two projects—Tequesta Knoll and Hampton Village—will also be delivered to the market by 2014, with all three newly converted affordable housing communities offering homes for nearly 800 low-income residents in the area.

Image courtesy of Schwartz Media Strategies

SBE, Related Group Join Forces on $300M Condo Hotel

By Georgiana Mihaila, Associate Editor

The Wall Street Journal reports that Miami’s ‘condo king’ Jorge Perez and Los Angeles nightclub entrepreneur Sam Nazarian will be working together on a $300 million condo hotel project planned for downtown Miami.

To be located at 1300 S. Miami Ave, the SLS Brickell condo-hotel would feature 133 hotel rooms—owned by both Perez’s Related Group and Nazarian’s SBE Entertainment Group—and 450 condo units that are to be developed and owned by the Related Group. The hotel will also feature 15,000 square feet of meeting space, a spa, two pools and more than 10,000 square feet of restaurants, lounges and bars. The project will be the first SLS-branded residences and the second hotel in Miami-Dade.

Projected to be 52 stories tall, SLS Brickell will rise on the site of the former Infinity II project. The first 10 stories will consist of the luxurious Philippe Starck-designed hotel, with the rest representing the residential component. The developers will retain some SLS partners for the new project, such as Chef Jose Andres—famous for his SLS Hotel South Beach restaurant, The Bazaar—to be in charge of food and beverage venues along with Michael Schwartz.

Related Group will be opening a sales center for the condo units later this month. While hotel rates are expected to be in the high-$200 range, condo prices will average over $600,000, or approximately $500 per square foot. The SLS Brickell condo-hotel is set for completion in 2015.

Related Group bought the 1.29-acre mixed-use development site at the intersection of Coral Way and South Miami Avenue in November 2012. The developer paid $18.5 million for the land, approved for the development of a 556-unit residential tower plus 15,049 square feet of retail space and 38,357 square feet of office space.

Upscale $400M Marina Palms Condo Project Opens Extravagant Sales Center

By Georgiana Mihaila, Associate Editor

Developers Plaza Group and DevStar Group recently opened a state-of-the-art sales center for their $400 million Marina Palms Yacht Club & Residences project—the first upscale condominium and marina destination to open in Miami-Dade County in 20 years.

The 10,000-square-foot sales center was specially designed to reflect the luxury, spaciousness and attention to detail of the upcoming Marina Palms Yacht Club & Residences. A wall of glass up to 15 feet in height offers a panoramic view eastward over what will be the $400 million development’s centerpiece—the full-service, 112-slip marina.

There is also a full-scale, 2,156-square-foot model unit that represents a two-bedroom, two-and-one-half bathroom residence tastefully designed by Interiors by Steven G. It also features available fixtures, finishes and appliances like Snaidero cabinetry, Wolf and Subzero appliances, and stone counter tops.

Located on a 14-acre waterfront property at the lighted intersection at 172nd Street and Biscayne Boulevard, Marina Palms Yacht Club & Residences consists of two 25-story residential towers with a combined total of 468 units. The development will also feature a 112-slip, full-service marina and yacht club and will benefit from full-time, on-site dock master and yacht club concierge, fuel service, dock-side Wi-Fi, sundry store and space to accommodate boats up to 90 feet in length.

When Plaza Group/DevStar Group first announced the project last month, the joint venture voiced its belief that market conditions and residential realities are strengthening the development’s prospects. Unit prices will start in the low-$300 range per square foot, with the spacious two-, three- and four-bedroom condos trying to lure traditional Northeastern and Canadian residents, affluent Latin American families looking for a seasonal home, and locals who want to keep their boat or yacht behind their residence—with unobstructed water views in all directions.

Image via Marina Palms Yacht Club & Residences’ Facebook Page

IKEA Sets Summer 2014 Opening Date for Miami-Dade Store

By Georgiana Mihaila, Associate Editor

With a building permit pending for its future Miami-Dade location in Sweetwater, IKEA has already hired Balfour Beatty Construction to oversee the 417,000-square-foot project. With groundbreaking set for some time within the next couple of months, the Swedish retailer plans to open the store in summer 2014.

This will be the second IKEA store for the South Florida area, the other—IKEA Sunrise—being located in Broward County.

“We are excited that plans are on track to open IKEA Miami in Summer 2014 as our second South Florida store,” said Mike Ward, IKEA’s U.S. president. “This store will provide a more conveniently located IKEA shopping experience for current and potential Miami-Dade customers and will help strengthen the IKEA presence in Florida established by stores already in Sunrise, Orlando and Tampa.”

The 417,000-square-foot store will rise on a 14.6-acre site in the city of Sweetwater and will be adjacent to the Dolphin Mall set west of Miami International Airport. Store plans reflect the unique architectural design for which IKEA stores are known worldwide. The company will also evaluate solar generation potential for this store to complement the presence of renewable energy generation at nearly 90 percent of its current U.S. locations.

In addition to over 500 jobs that are to be created during the construction phase, approximately 350 workers will join the IKEA family once the new store opens. IKEA Miami would also generate significant annual sales and property tax revenue for local governments and schools.

IKEA—the world’s leading home furnishings retailer—has chosen Balfour Beatty Construction, one of the nation’s largest construction management firms, to handle the project, while also tapping Kimley-Horn and Associates for civil engineering, ATC Associates for geotechnical services, The Goldstein Environmental Law Firm for Brownfield expertise, and Procacci Development Corporation for selling the land. Atlanta-based GreenbergFarrow will serve as architect for the project.

Image courtesy of IKEA

Foram Group’s 600 Brickell Tower Goes Platinum

By Georgiana Mihaila, Associate Editor

The 40-story 600 Brickell building can now pride itself with a rare designation that makes it unique in the Florida market—placing it among only a handful of its class and size in the world—after being certified LEED Platinum by the U.S. Green Building Council.

The 600,000-square-foot mixed-use commercial tower set in the heart of Miami’s financial district was delivered to the market in August 2011. The 600 Brickell at Brickell World Plaza has already brought a top technology award to developer Foram Group, receiving the Greater Miami Chamber of Commerce’s Technology Leader Award for Best Project in 2012.

Designed by global architecture firm RTKL, the $300 million tower features central monitoring and control of air quality, temperature and lighting—resulting in a healthier, more comfortable and more secure working environment. It also incorporates fully redundant electrical backup systems, as well as both public and secured WiFi and direct access to the world’s Internet backbone through underground, redundant fiber-optic connections linking directly to the NAP (Network Access Point) of the Americas less than one mile away.

600 Brickell is the first “Class A” office building of this magnitude to be ISO 27001 Certified, the internationally accepted benchmark for information security.

The U.S. Green Building Council recognized 600 Brickell for its merits of achieving efficiencies in energy, lighting, water and material use, as well as that of incorporating a variety of other sustainable strategies to reduce its carbon footprint. The tower received the designation in the core and shell category, which applies to new construction.

“Every detail of this building was planned and examined before one shovel of dirt was ever turned,” said Loretta Cockrum, Foram’s founder, chairwoman and CEO. “We wanted to build something that would be as relevant 50 years from now as it is today. We have achieved our goal.”

Image via 600 Brickell official website

Developers Ross and Perez Show Interest in Stalled Island Gardens Project

By Georgiana Mihaila, Associate Editor 

According to the South Florida Business Journal, the company headed by Dolphins owner Stephen Ross—Related Cos., as well as Jorge Perez’s The Related Group, will assist Flagstone Properties in developing the long-stalled Watson Island project, Islands Gardens.

A joint statement released on Wednesday says that both companies are engaged in conversations with Flagstone Property Group about potentially partnering on the redevelopment of Watson Island. Yet the $800 million project will have to meet certain criteria and would include additional investment partners before the investment moves forward, the Business Journal reported.

Previously announced development plans state that Island Gardens will feature an ultra-luxury Shangri-La Hotel; a Residences Island Gardens-Miami, managed and serviced by Shangri-La Hotels and Resorts; a lifestyle hotel; 60 cutting edge and high-end retail boutiques; 18 waterfront restaurants, cafés and nightlife venues; world-class dining; a unique waterfront promenade; a fish market; leisure gardens; and a maritime gallery created in conjunction with the Historical Museum of Southern Florida.

Plans also call for a distinctive marina exclusively designed for mega-yachts. The super-yacht harbor is meant to establish Miami as an international destination on the same caliber as illustrious getaways in the Mediterranean and Caribbean.

Island Gardens was conceptualized by developer Mehmet Bayraktar and concept architect Eric Kuhne to utilize every aspect of Watson Island. Piero Lissoni, world-renowned interior designer and co-founder of Studio Lissoni, is designing the interiors of various components of the development. The project architect is Spillis Candela DMJM, one of the oldest and largest professional design firms in the southeastern United States.

Island Gardens was first approved by the city commission on July 8, 2004 and went before the county commission in September 2004 on the marina aspect of the proposal. Yet construction stalled, and developer Mehmet Bayraktar faced several lawsuits and financial problems. The ambitious project, considered to be one of the largest waterfront developments in the world, could open by 2016, according to Bayraktar.

Renderings via www.islandgardens.com

Starwood to Bring New Eco-Conscious Brand to Miami Beach

By Georgiana Mihaila, Associate Editor

As the result of a combined effort between Starwood Capital Group, Invesco and the LeFrak Organization, Miami Beach will soon experience a new concept in beachfront luxury hotel living. The developers have unveiled plans for The 1 Hotel & Residences South Beach—a bold project that will combine a residential component with a 417-room SH Group-operated hotel.

The new brand 1 Hotels was developed by Barry Sternlicht—creator of the widely successful W Hotels and St. Regis hotel brands—and aims at celebrating nature through eco-conscious design and management.

Barry Sterlicht, Starwood Capital Group Chairman and CEO, has chosen The LeFrak Organization to help with the $100 million transformation of an existing 1970’s structure into a LEED-certified, environmentally conscious structure featuring natural materials and finishes and lush landscaping.

Located at 2399 Collins Ave. on the site of the hotel formerly known as The Gansevoort South, the new 1 Hotel & Residences South Beach will include 163 residential units, available in one-, two-, three- and four-bedroom layouts, as well as duplexes that will range in size from 830 to 4,280 square-feet.

The residential units will sit atop the 417-room hotel, which will be operated by SH Group—Starwood’s hotel management company. The entire property and the residences have been retrofitted with new energy-efficient casement windows and sliding glass doors onto private terraces, and each unit will be equipped with ENERGY STAR® qualified appliances.

Residents of 1 Hotel & Residences South Beach will enjoy a collection of superior amenities, such as four ocean view swimming pools—including the hotel’s existing famous rooftop pool, a 40,000-square-foot spa and fitness center, 24-hour in-home dining and concierge services, and 600 feet of beachfront with private beach amenities.

The location places 1 Hotel & Residences next door to the W South Beach and two blocks from The Setai Hotel and Residences in a neighborhood rich in retail, restaurants, culture and entertainment.

Award-winning Brazilian designer Debora Aguiar is creating a fresh, unique design for the residences and common areas that resonate with the brand’s core sustainable ethos, while Miami-based Fortune International will be leading sales and marketing efforts. An onsite sales center will also be set up starting April 2013.

Image: Former Gansevoort, now Perry South Beach Hotel

High-end Bal Harbour Shops to Co-Develop Retail Component of 2.9MSF Brickell CityCentre

By Georgiana Mihaila, Associate Editor

The 2.9 million-square-foot Brickell CityCentre has added a valuable name to its development team. Bal Harbour Shops has joined Hong Kong-based Swire Properties in co-developing the retail part of the project currently under construction in downtown Miami.

The terms of the alliance specify that Swire Properties will remain the primary developer of the mixed-use project, while Bal Harbour will contribute both meaningful equity and its brand recognition and luxury retail expertise as co-developer of the retail component. The venture reinforces the vision that Swire Properties has for Brickell CityCentre—becoming the leading destination in the heart of Miami for exclusive shopping and dining.

“We are honored to have Bal Harbour Shops join us as co-developers of the shopping at Brickell CityCentre,” said Stephen L. Owens, president of Swire Properties Inc. “Built over generations, the credibility of Bal Harbour Shops with the luxury retail market, evidenced by the extraordinary sales performance of their center, will be of tremendous value to the market positioning of Brickell CityCentre as a destination shopping experience for residents and visitors alike.”

Bal Harbour Shops—named “the most productive luxury shopping center in the entire world” by the International Council of Shopping Centers—have been around since 1965. Owned by the Whitman family, the property has been fighting the expansion of luxury retail in Miami-Dade for years, the Miami Herald reports. Along with the new venture with Swire Properties, Bal Harbour will be claiming its ground on the downtown Miami luxury market.

Work on the $1.05 billion Brickell CityCentre project started in June 2012, with the first phase—a high end 500,000-square-foot retail center, two residential towers, a hotel, wellness center, serviced apartments, one office building and 3,100 parking spaces—scheduled for completion in 2015. The second phase will include a second office tower and has a completion date set for 2018.

Image courtesy of Swire Properties

New $265M Frost Museum of Science Takes Shape in Downtown Miami

By Georgiana Mihaila, Associate Editor

With the building’s structural foundation now complete, vertical construction on the Patricia and Phillip Frost Museum of Science is underway. The 250,000 square-foot complex is a world-class, state-of-the-art facility designed by Grimshaw Architects that will take shape in the heart of downtown Miami. Aiming to be among the world’s most innovative and sustainable science museums, the building will harness energy from water, sun, wind and even museum visitors to power exhibits and conserve resources.

“Now that progress on the new museum’s construction is visible, our community’s business, civic and philanthropic leaders have a tangible asset they can stand behind,” said Trish and Dan Bell, co-chairs of the Museum’s Board of Trustees. “By supporting our campaign, individuals and corporate donors are advancing one of Miami’s leading cultural and educational institutions. An investment in the Patricia and Phillip Frost Museum of Science is an investment in Miami’s future, and we expect vertical construction to spur new excitement among our donor base.”

As construction of the new museum moves forward, private sector support is also growing. The museum has secured more than $70 million of its $100 million private fundraising goal, which will complement Miami-Dade County’s $165 million funding. In addition, the Museum enjoys a broad base of support from leading corporations such as American Express, AT&T, Best Buy, Cordis Corporation, Florida Power & Light Company, IBM, JP Morgan Chase, State Farm and Wells Fargo, which all provide grants for educational programs and events. The 2013 Galaxy Gala in March will offer the private sector additional opportunities to support the museum.

In addition to being an international center for learning and innovation, the new museum will also be an economic catalyst for Miami-Dade County. The 35-month construction period will employ upwards of 400 workers, with an average of 150 crew members on site at any given time. Following construction, the ongoing annual economic impact to the county is estimated at $95.4 million with a total of 914 jobs created.

According to an official release, approximately 7,000 cubic yards of concrete have been poured to complete the museum’s foundation, enough to fill the American Airlines Arena’s basketball court with a 40-foot high concrete slab. The museum’s development is progressing on schedule, with completion set for 2015.

Images courtesy of Miami Science Museum Blog

Sentai Penthouse $27M Sale Sets New Record for South Florida

By Georgiana Mihaila, Associate Editor

One of the coveted penthouse residences atop Miami Beach’s famed Setai Resort has just set a new record for the most expensive condominium ever sold in South Florida. An anonymous buyer paid $27 million for the 7,100-square-foot residence.

Jeff Miller of Zilbert International Realty was the broker involved in the deal; Miller also set the prior sales record at The Setai in December 2011, when he brokered the sale of another penthouse for $21.5 million.

“The Setai residences are among the most luxurious in Miami Beach,” noted Mark Zilbert, president and CEO of Zilbert International Realty. “Homeowners are able to benefit from world-class, five-star amenities and services provided to them from the Setai Hotel and Resort.”

Encompassing the entire 40th floor, the sprawling residence overlooking South Beach and the Atlantic Ocean features over 7,100 square feet of living space with floor-to-ceiling windows, 4 bedrooms, 4 and-a-half bathrooms, and a spectacular outdoor rooftop terrace with private pool and hot tub.

The home’s gourmet kitchen is fully-equipped with SubZero and Gagenau appliances. Designer bathrooms feature marble flooring, Duravit sink vanities and Dorenbracht fixtures. Located at 101 20th St., The Setai Residences feature 163 residences, ranging in size from 767 to 7,100 square feet.

The Miami Herald reports that there is another listing on the market that could easily top the Setai sale if the sale price will be anywhere near the asking price. Penthouse 2 in the decade-old Continuum South tower at 100 South Pointe Dr. in the South of Fifth neighborhood is currently on the market for $39 million.

Blanca Commercial Tapped to Lease Courthouse Tower, 8200 Doral

By Georgiana Mihaila, Associate Editor

Courthouse Tower

Miami-based brokerage and advisory firm Blanca Commercial Real Estate has recently expanded its leasing portfolio to 2.5 million square feet by adding Miami’s Courthouse Tower and 8200 Doral.

“We are delighted to expand our agency-leasing portfolio with the addition of Courthouse Tower and 8200 Doral,” said Tere Blanca, president and CEO of Blanca Commercial Real Estate. “These assignments are located in two of the region’s most active submarkets: Miami’s thriving urban core and the always desirable City of Doral.”

Executive Vice President Juan Ruiz will spearhead leasing and marketing for both properties, alongside Executive Vice President Danet Linares at Courthouse Tower.

The 161,905-square-foot Courthouse Tower is a 25-story office building located at 44 West Flagler St., directly across from the Miami-Dade County Courthouse in downtown Miami. The recently-renovated Courthouse Tower lists as amenities a Sabadell United Bank branch on the first floor, ample surrounding parking and 24-hour on-site security, management and maintenance. The building offers approximately 45,274 square feet of immediate available space. Major tenants include City Year Miami and law firms Liebler, Gonzalez & Portuondo P.A. and Adams & Diaco P.A.

8200 Doral

Formerly Royal Palm Doral Center III, 8200 Doral is a 101,144-square-foot building located in the heart of Doral, just minutes from Miami International Airport and the Miami Intermodal Center, with convenient access to all major expressways. The building was recently awarded LEED Silver certification from the U.S. Green Building Council and has earned the EPA’s ENERGY STAR® rating. The building is owned by Royal Palm Building LLC, which fully paid off the asset’s remaining $16 million loan in 2010.

These two new assignments—totaling 263,000 square feet—strengthen Blanca Commercial Real Estate’s reach in two of the region’s most active submarkets: downtown Miami and Doral.

Images courtesy of Schwartz Media Strategies

Walmart Gets Final Approval for NW Miami-Dade Supercenter

By Georgiana Mihaila, Associate Editor

Adding to the list of nearly 20 new or expanded stores planned in the next couple of years across South Florida, the Miami-Dade County Community Zoning Appeals Board green-lighted Walmart’s plans of building a Supercenter in Northwest Miami-Dade. Set at NW 32 Avenue and 79 Street, the new retail center will activate a vacant site that has not been developed in over a decade. Easily accessible via public transit, the new store will sit steps away from the Northside Metrorail station.

The 186,000-square-foot Supercenter will feature a full selection of groceries, as well as a bakery, deli, frozen food section and meat, dairy and fresh produce sections. General merchandise areas include pharmacy, apparel, electronics, home, fine jewelry and health and beauty. It is estimated that the new retail center will employ up to 300 people upon completion.

“Walmart’s investment is a vote of confidence in this community and will bring a much-needed economic boost to an area that hasn’t experienced major development in a long time,” said Miami-Dade County Commissioner Jean Monestime, who represents Northwest Miami-Dade. “For the many residents who live in the neighborhood, the new employment opportunities and affordable prices at the Walmart Supercenter are welcome.”

Walmart has been operating stores in Miami-Dade County for 20 years and currently serves Kendall, Hialeah, Hialeah Gardens, Miami Gardens, Homestead, Florida City, North Miami and Doral. Construction on the Supercenter is set to start in 2013, with a completion date estimated for 2014.

Image courtesy of Schwartz Media Strategies

Terranova/Acadia Pay Record $139M for Lincoln Road Retail Portfolio

By Georgiana Mihaila, Associate Editor

In what seems to be Florida’s largest retail acquisition of 2012, Terranova Corporation and Acadia Realty Trust paid $139 million for a three-building portfolio on Lincoln Road in Miami Beach. This addition of 801, 826 and 719 Lincoln Road to the Terranova/Acadia portfolio makes them the largest pure retail owner on the block.

The Miami Herald reports that the deal is being billed as the largest retail acquisition in Florida during 2012 in terms of dollar value, trumping Vornado Realty Trust’s $132 million purchase in July of 1100 Lincoln Road. The properties include a Fossil, Dylan’s Candy and Kiehl’s.

“These properties have huge upside as lease rates roll up to market,” said Terranova Chairman Stephen Bittel. “We look forward to bringing the best retailers in the world to join the impressive collection already on Lincoln Road.”

He added: “The only thing better than adding to our market-leading position on Lincoln Road is to once again be growing with Acadia as our partner. Their national urban high-street portfolio blends perfectly with Lincoln Road and enables them to add so much more than just capital to our joint investment.”

Back in February 2011, the two companies bought another three-building Lincoln Street portfolio consisting of 61,000 square foot of retail space for approximately $52 million. Since then, the company has brought to the area an Armani Jeans store and an Asian-themed Khong River restaurant.

Lincoln Road, an eight-block open-air pedestrian mall between Alton Road and Washington Avenue, is a popular destination for south Florida residents and tourists alike, featuring high-end restaurants, boutiques and bars where shoppers and diners can expect to enjoy the most modern shopping and entertainment paired with a lively nightlife scene. The street generates some of the highest per-square-foot sales in Florida as one of the only 24-hour retail destinations.

Moreover, Lincoln Road recently received international acclaim with the opening of H & M on Pennsylvania and Lincoln Roads. This coupled with the New World Symphony entertainment venue and the just-opened Forever 21 store has kept the eyes of world-class retailers sharply focused on the venue, which boasts daily pedestrian traffic estimated at over 25,000 people and retailers regularly reporting fashion sales of over $1,000 per square foot.

Image via PRNewswire