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

South Florida Hospitality Sector in Spotlight as Two Luxury Hotels Trade

By Georgiana Mihaila, Associate Editor

As a diverse mix of leisure and business travel drives strong hotel performance in the Southeast, investors seem to be more and more eager to enter the South Florida hospitality market. Given that the state’s leisure travel drove a 3.3 percent increase in room demand in the first half of the year, three times as many economy hotels changed hands over the past 12 months than in the preceding period, a recent Marcus & Millichap report finds. Luxury hotels didn’t fall behind either.

Among the properties to trade is the Sofitel Miami Hotel, recently acquired by the Laurus Corporation. The 14-story luxury property sits on 10 acres with a total of 281 rooms and 17,351 square feet of meeting and event space. The site also includes an additional 1.3 acres that allows for the potential development of either a build-to-suit Class A office building or an additional 100 guestrooms.

Located at 5800 Blue Lagoon Dr.—adjacent to Miami International Airport and the Waterford business park—the Sofitel Miami Hotel was built in 1986 but underwent a renovation process in 2000. Nevertheless, Laurus plans to invest approximately $4.5 million in implementing a renovation program to upgrade the property.

David Aim of AIMCAP and partner Robert Kaliner of Ascend Group also successfully acquired the full-service and all-suite Atlantic Hotel in Fort Lauderdale this past week.

The Atlantic Hotel and Spa is a Mediterranean-style luxury condominium hotel project with as many as 124 residential units. Located in the heart of Florida’s Gold Coast overlooking 23 miles of beach, the hotel features upscale amenities that include a 10,000-square-foot European-style spa and fitness center, heated outdoor pool and whirlpool, and 24-hour room and concierge service.

“This acquisition was part of Ascend Group’s strategic plan to increase its portfolio position in the luxury sector of both residential and commercial properties,” said Robert Kaliner, chief of Ascend Group. “We are excited about continuing to make this spectacular property the best asset in Florida.”

AIMCAP has big plans for the resort and will be adding improvements to the lobby, restaurant and other facilities, as well as other additions that have yet to be announced.

Images: The Atlantic Hotel and Spa via Google Images

RLJ Lodging Agrees to Pay $71.6M for New Hilton in Miami Beach

By Georgiana Mihaila, Associate Editor

The yet-to-be-completed, 231-room Hilton Cabana Miami Beach will soon have new owners, as RLJ Lodging Trust recently announced that it has entered into a purchase and sale agreement to acquire the property upon completion for $71.6 million.

The hotel, which first opened in the early 1950s, was closed and gutted in 2007 in anticipation of a condominium conversion. As the conversion plan proved itself unsuccessful, the property went into foreclosure. The current owner purchased the property in 2011 with plans of developing a new hotel, set for completion in the fourth quarter of 2013.

Hilton Cabana Miami Beach will be located directly on the beach and benefit from a prime location along the 6200 block of Collins Avenue. Buyer RLJ Lodging Trust is also confident that the hotel’s association with a premium brand such as Hilton will yield strong demand from brand-loyal guests seeking accommodations in the area.

“We are thrilled to be entering the Miami Beach market. We see this acquisition as an excellent opportunity to enter a gateway market with multiple demand generators,” commented Thomas J. Baltimore, Jr., president and chief executive officer of RLJ Lodging Trust. “Furthermore, the Hilton brand is underrepresented in this market, which should provide for outsized performance from this hotel.”

According to Smith Travel Research, there are currently two Hilton-affiliated hotels that represent approximately one percent of the total rooms in the Miami Beach market. RLJ Lodging believes that Hilton Cabana Miami Beach will benefit from Miami’s steadily increasing transient demand, robust convention activity and strong ties to Latin America.

The Miami market, one of the top-ranked lodging markets in the nation, garners one of the highest average daily rates and one of the highest revenues per available room of any U.S. city, and is surpassed only by New York, Oahu Island and San Francisco.

Upon entering the agreement, RLJ Lodging Trust committed to a $7.2 million deposit that will be refunded if the hotel is not completed.

Image courtesy of TripAdvisor

Related Group Buys $18.5M Mixed-Use Development Site

By Georgiana Mihaila, Associate Editor

Another Related Group apartment development could rise at the intersection of Coral Way and South Miami Avenue, as the company recently closed on the $18.5 million purchase of a 1.29-acre mixed-use development site. The site is 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.

Located at SW 13th Street, the 1300 South Miami Avenue development site is close to the Mary Brickell Village and Brickell Citi Centre projects, as well as Interstate 95 in the Brickell financial district.

Seller South Miami Ave. LLC, an investment group led by Miami-based Alex Vadia, was represented in the transaction by Holliday Fenoglio-Fowler’s executive managing director Manny de Zárraga and Director Jaret Turkell. The privately-held Related Group has built and managed more than 80,000 condominium and apartment residences in major markets throughout Florida since its inception in 1979.

The developer has many other South Florida multifamily developments currently underway, among which are high-profile projects such as MyBrickell, the 28-story upscale condo development in Brickell; the One Ocean condo project, set in the red-hot South of Fifth neighborhood of South Beach; and Italian luxury condo, 1100 Millecento Residences. The Related Group has not yet given any details concerning upcoming development on the 1.29-acre site.

According to a recent Marcus & Millichap report focused on the Miami apartment market, approximately 600 units are under way and on course for delivery in 2013. The pipeline of planned rental projects has swelled from about 4,000 units earlier this year to 6,100 apartments at the end of the third quarter. In addition, about 6,500 condominiums are planned in the county.

Chart courtesy of Marcus & Millichap

Blanca CRE Tapped to Lease Office Component of Shops at Sunset Place

By Georgiana Mihaila, Associate Editor

Simon Property Group has selected Miami-based Blanca Commercial Real Estate as the exclusive agent for 100,000 square feet of space that will be re-purposed for office, medical and related uses at the Shops at Sunset Place.

The Shops at Sunset Place, Simon Property Group’s 514,000-square-foot retail complex in South Miami, is one of the top shopping, entertainment and dining complexes in South Florida. The re-purposed space, located at the corner and intersection of U.S. 1 and Red Road (SW 57^th Avenue), is available immediately.

According to an official company announcement, CEO Tere Blanca will lead the marketing efforts and be assisted by Executive Vice President Alison Pages and Associate Vice President Alexander Cahlin.

“The Shops at Sunset Place anchors one of Miami’s most desirable and pedestrian-friendly neighborhoods,” Ms. Blanca says. “South Miami is home to a critical mass of shops, restaurant and entertainment options. The missing component is flexible commercial space that we can now offer to companies of all sizes.”

The repositioned space may be built-out to suit tenants’ specific requirements, and users will have access to a reserved parking area in the property’s garage. Signage directly facing U.S. 1 will be available for anchor tenants.

Since opening in 1999 as South Miami’s first open-air retail marketplace, the Shops at Sunset Place has emerged as a key destination for shopping, entertainment and dining, with current tenants including AMC Theatres, LA Fitness, Barnes & Noble Booksellers and Splitsville Luxury Lanes and Dinner Lounge.

Image courtesy of Schwartz Media Strategies

South Florida Multifamily Properties Trade for Combined Price of $100M

By Georgiana Mihaila, Associate Editor

Behringer Harvard’s 560-unit Parrot’s Landing recently changed ownership, as a Toronto-based real estate investment recently paid $56.3 million for the North Lauderdale property. The Boca Raton office of ARA brokered the sale of Parrot’s Landing, which was managed by a team including Avery Klann, Marc deBaptiste and Hampton Beebe.

Parrot’s Landing has been a part of Behringer Harvard’s portfolio since 2010, when the company had acquired a 90 percent ownership interest through a joint venture between Behringer Harvard Opportunity REIT II Inc.—a public non-listed real estate investment trust—and Grand Peaks Properties, a Denver-based real estate firm that acquired a 10 percent ownership interest and managed the property.

“Parrot’s Landing is an excellent example of our investment strategy at work, from acquisition to disposition,” said Michael O’Hanlon, CEO of Behringer Harvard Opportunity REIT II Inc. “We acquired it at a compelling basis and have been pleased with its performance in terms of sustained occupancy and net operating income, which exceeded expectations.”

Located in North Lauderdale—a suburb in central Broward County approximately 10 miles northwest of Fort Lauderdale—the multifamily community comprises 24 three-story residential buildings constructed in two phases, three swimming pools, a fitness center, a car-care center and a lighted tennis court. Units feature up to three bedrooms and two baths and average 927 square feet.

Another South Florida multifamily that changed hands this past week was the 396-unit Greenwich Park Apartments in North Miami. The buyer, an affiliate of Waterton Residential, paid $42.5 million for the 1550 NE 123rd St. property, according to the South Florida Business Journal. The seller was Real Estate Capital Partners.

Image Parrot’s Landing via Homes.com