Chinese Real Estate Investment Growing

By Sunny Isles Real Estate Expert on December 13th, 2016

Miami's Chinatown real estate

Over the past decade, there has been an increase in the number of Chinese nationals who are interested in making investments in properties in the United States. Many of those buyers initially looked to areas such as New York City when they were buying, but in recent years, they have turned their attention southward. While they don’t yet make up the same number of buyers in Florida as Latin American and the northeastern U.S., the number of Chinese real estate investors in Miami is growing.

Currently, China accounts for about 2% of the overall investments made in Miami. However, this is expected to grow substantially in the coming years. They estimate that it could be about $50 billion in real estate investment across the United States within the next ten years.

Why Miami’s Real Estate?

You will find that these investors are interested in properties in the area for the same reasons that investors from other parts of the world like Miami. It is a fantastic location that is continuing to grow. It’s becoming a hub in international business, and you have all the beautiful beaches and the ocean, the great weather, and the shopping. Even the allure of the night life has brought some buyers from China. Miami is currently the seventh city on the list of most important global cities, at least per the Wealth Report.

Miami is becoming a truly global city. It’s already multicultural, and with the influx of new people and new businesses, it will become even more important on the global field. As Miami becomes even more important to the world stage, you can expect the number of buyers to go up.

Of course, there is another big reason that Chinese investors have started to take a real liking to this city. It’s all about the prices. Sure, when many look at the cost of homes in the Miami area, the prices can seem on the absurdly high side. However, when you compare the price of comparable homes in places such as NYC, Paris, and London, you will quickly see that Miami is offering some real bargains.

The prices have even started to come down further over the course of the past year. Chances are good that this will mean even more foreign investment from China and from other locations over the coming months and years.

Something for Everyone

People also enjoy that there are condos and homes available for all types of buyers from China. Those who are looking for the biggest and best in luxury properties will have a plethora of choices.
However, those who are on the search for something that is friendlier to their budget should have many options available as well.

Because there is a push toward getting Chinese investors on board with buying in Miami, many real estate companies have even taken to hiring people who speak Mandarin to help them with the sales. The future looks bright for foreign investment in the Miami area.

Find out commercial real estate deals in North Miami Beach or contact Leon Bell regarding any any commercial real estate in Miami at (954) 560-7802.

Portfolio of Four Retail Buildings Up for Sale in South Beach

By Sunny Isles Real Estate Expert on September 30th, 2016

South Beach retail for sale

Jamestown is a company based in Atlanta, GA, which invests in a number of different multifamily properties and retail properties in the South Florida region. The company has a large number of assets totaling around $11.1 billion. However, their portfolio is about to get a little bit smaller, as they are trying to sell a collection of buildings in South Beach.

All four of the properties are being marketed together. These properties comprise retail spaces as well as dwellings, and together, they great a net operating income of more than $3 million. Several of these buildings are on Collins Avenue.

What Properties Are in the Portfolio Bundle?

The first property is located at 755 Washington Avenue, and it currently is home to a number of popular retailers. Stores located at this building include Adriano Goldschmied Jeans and Adidas. The investment company bought this property less than a year ago in October of 2015, and at the time, they paid $18.6 million for it.

The second property on the list is 727 Collins Avenue. This is an apartment building that has 25 units in it, and it also has 4,700 square feet of retail space on the ground floor. They bought this property in September of 2015, and at the time, they paid $12.5 million for it.

Also located on Collins Avenue is the third property included in the bundle. This property is located at 736 Collins Avenue, and it was sold to Jamestown in 2014 for $12.5 million. The space measures 8,322 square feet.

The final property on the list is located at 745 Collins Avenue. This building has been leased to Victoria’s Secret, and it was the most expensive of the group when Jamestown purchased it. They bought the three-story 13,444 square foot property in March of 2015, and at that time they paid $25 million for it.

It is important to keep in mind that Jamestown does not have any intention of selling the properties separately, at least not at this time. They want to sell the entire group of buildings. It’s also important to note that the retail market in these locations continues to be quite strong. There are a number of other retailers in the area, such as Banana Republic, Gap, and H&M, and they are doing quite well.

Collins Avenue has a reputation for being one of the best places to shop in the Miami Beach area, so it is no wonder that the retail stores here continue to do well. With more dining spots and shops on the way, it should keep doing well for many years. When it comes to Washington Avenue, things are changing there. While it hasn’t been as popular in the past as some of the other streets in the Miami Beach area, it is undergoing a change. There are more shops and eateries coming to the street, which is helping it to become more popular with residents and visitors alike.
The portfolio price is currently unclear.


Cheaper Land Results in the Redevelopment of North Miami Beach

By Sunny Isles Real Estate Expert on April 13th, 2016

Miami commercial real estate

The blue-collar aesthetics of North Miami Beach, including the mid-rise apartments and traditional shopping centers found down Biscayne Boulevard is about to see a significant facelift. More and more luxury condo developers are scooping up the vast areas of land that are available in this area to develop new, luxurious high-rise buildings, as well as mixed-use projects. This is all in hopes that this development will lure in new buyers who are searching for great deals near Sunny Isles Beach and Aventura.

Projects “In the Works”

Currently, there are about 8,000 new rental units and condos being planned and presold on a stretch of Biscayne Boulevard that lies between the Northeast portion of 151st Street and Northeast 176th Street.

Thanks to lower land prices, developers are coming to this intercostal area, which is allowing them to build units that are more reasonably priced, but also close to the water. Another appealing factor is that they will soon be serviced by the Tri-Rail commuter train, which will be making passenger stops at 163rd street as soon as 2018.

Appealing Real Estate in Miami

A number of developers are also receiving encouragement to build along the intercostal area of North Miami Beach, which recently passed all new zoning regulations last March, which allow for higher density projects for the Biscayne Boulevard area. Please CLICK HERE to see Miami commercial real estate opportunities.

In the past few years, developers have begun to actually build, or announce their intentions to build, new condo towers, as well as mixed-use projects. Last February, the Plaza Group completed the first of the two buildings that are making up the Marina Palms project. Each of the towers is 25 floors and together offer 468 units. Other features are a yacht club and marina that provide 112 boat slips. Currently, about 80 percent of all the units in the south tower are sold, and closings have started for the recently completed north tower.

Additional Developments Coming Soon

Another new development occurred in August, with Key International and 13th Floor Investments closes on a deal worth $30.5 billion to purchase land along the Biscayne Boulevard corridor. This purchase will be the home of a twin-tower condo, named The Harbour. The 32 story buildings will include 425 total units and about 70 percent of them have been sold currently. These range in size from 2,442 down to 1,032 square feet and can be purchased for between half a million and $1.2 million.

Real estate in this region is continuing to sell and be developed, which is helping to attract a higher-end buyer to the area, who may be trying to escape the higher prices found in nearby Miami Beach. There are several condo projects in the works and quite a bit of the land along Biscayne Boulevard is spoken for and being developed in the near future. There is no question these luxe and posh condos and apartments are going to attract a higher caliber of buyer, allowing developers to flex their creative muscles while creating upscale units for those who appreciate the finer things.

The Largest Real Estate Deal in Miami-Dade History for $370M to Spanish Billionaire

By Sunny Isles Real Estate Expert on December 1st, 2015

commercial property sold in Miami

In a turn of events that took years of planning, an entire block on Lincoln Road was sold for $370 million. This is the largest commercial real estate deal in Miami-Dade history. The buyer is a Spanish billionaire and the fourth richest person in the world.

The properties run from 1001 Lincoln Road through 1035 Lincoln Road and include commercial properties like the newly-built Gap, Intermix, Athleta, and Apple, according to The Real Deal. One of these buildings will also be home to Nike. The properties total 75,000 square feet and 48,000 square feet of land.

Michael Comras and Jonathan Fryd, local commercial real estate investors and developers, brokered the deal. Comras told The Real Deal, “It’s definitely a blockbuster sale. It’s the biggest thing I have ever been involved in. It’s the culmination of so many years of planning and working together with Jonathan and we put together an amazing asset, a perfectly curated asset.”

Behind the Shops on Lincoln Road

The investors purchased the properties for a total of $12 million in 1999. They began leasing the buildings to nationwide store chains. They wanted in before the pedestrian promenade raised the rents as high as $400 per square foot.

The entity that purchased the block at Lincoln Road is listed as Playa Retail Investments. The address for Playa Retail Investments is the same as other companies owned by Amancio Ortega. According to Forbes, Ortega is the fourth richest person in the world with a net worth of $70.2 billion.

Amancio Ortega

Comras could not confirm the buyer due to a confidentiality agreement, however Forbes reported on Ortega in 2012 saying that Ortega “seems to be using more of his free time to invest in real estate. He has pulled money from Spanish investment funds and poured it into buildings through his Ponte Gadea real estate firm.”

Ortega is the son of a railway worker. He cofounded Zara in 1975 with his then-wife Rosalia Mera. The bathrobes and lingerie they made in their living room caught on and during the 1980’s, Ortega’s empire grew. Other companies were dumbfounded at Ortega’s business sense as he limited advertisements, expanded ambitiously, and controlled his own supply chain.

According to Forbes, Ortega “powered through the Spanish financial crisis, personally gaining $45 billion from 2009 to 2014 as his shares of Inditex defied the rest of the Spanish stock market.”

He has taken his billions and invested them into real estate around the world including global cities like Madrid, Barcelona, London, Chicago, New York, and Miami.

Lincoln Road – Years in the Planning Paid Off

Camras credits the hard work he and Fryd started 16 years ago for the success in the asset now. He believes the retailers chosen are the best and create value in the marketplace. He stated, “Lincoln Road is an amazing street, and Miami Beach is an amazing city, and it’s a world class destination. It’s just an incredible asset and I’m happy to be part of it.”

Office and Retail Space in Miami Popular with Foreign Investors

By Sunny Isles Real Estate Expert on November 9th, 2015

Commercial real estate in Miami

The Miami area is not only a great place to live and to buy residential property, but also a fantastic place to buy retail space and office property. In fact, a number of people from Latin America, and other countries, have been looking for both office buildings and properties with just a single-tenant building all around Miami, as well as in other parts of the county. The number of purchases and clients looking for these properties has skyrocketed over the course of the last year and a half or so.

Why Are These Properties So Popular?

While we certainly know that the real estate market for residential homes is doing well, the other parts of the Miami economy are growing just as quickly. Smart businesspeople want to get in on this action, and that has set them racing toward buying up these office properties as fast as they can. In fact, they are buying at a rate that’s faster than what even many of the real estate experts in the Miami area had anticipated. Many of the buyers seem to be coming from Latin America, as there have been an increasing number of purchases made by people from Argentina, Brazil, and El Salvador.

International investors from all around the world see the potential that Miami is offering. It is a multicultural city that is a major hub for all types of business, and the area is continuing to grow quickly. They realize that investing now and holding onto those retail and office spaces has the potential to provide them with a nice return on their investment.

Many of the buyers already have at least one home in the Miami area. They might be using this as an investment rental, or as a vacation home. They have the money to buy – with the average investor able to purchase retail and office properties between $3 and $5 million in most cases. Some of the wealthier buyers are even able to buy property and build their own. In other cases, developers are looking at the need for more of these types of properties and are building them for clients, knowing that they will be able to sell them. The Solution Group said that they are building an office condo in Coral Gables to meet the demands of their customers. Others are doing similar things to help increase their sales.

It Keeps Growing

The power of commercial property in Miami and the surrounding area is growing quickly, and foreign investors do not want to waste time getting properties in the country that they can then lease, or even start their own business. The commercial market has seemingly limitless potential right now, so you should expect to see even more investors from other countries snapping up properties as soon as they become available. Since there are limited properties now, it is a seller’s market. However, with developers starting to build new properties, this could change in the future.

Conrad Miami Offers a Great Investment Opportunity

By Sunny Isles Real Estate Expert on September 18th, 2015

Brickell City Centre Condo for sale

Conrad Miami is a luxury hotel in the heart of Miami’s Brickell neighborhood that features 203 units. Located at 1395 Brickell Avenue in Espirito Santo Plaza, the hotel is now up for sale, although there is not currently a listing price attached. It’s believed to be priced at over $120 million though, and given the potential of the property, a price that his is certainly not out of the question. The property offers 103 luxury condominiums, as well as retail space.

Some of the other features of the property include a spa and a gym, as well as 20,000 square feet of areas specifically for meetings. In addition, it offers the Atrio Restaurant and The Bar at Lvl 25. Those who live or stay in the property will also be able to enjoy two tennis courts located outside, as well as a whirlpool and a pool located on the roof.

It’s all of these features that make potential visitors interested in the property, and it is that potential that is driving the interest from the investors. They see that the hotel has a lot of potential. It’s in a great area and the economy of Miami is continuing to grow stronger. Investing in this building could be a very smart move, as you will see.

Why Is the Hotel a Great Investment?

For starters, it is more than a hotel. It has retail opportunities as well, which means leasing opportunities for the owner. Also, consider the hospitality market in the Miami area. People love Miami and flock to it for vacations, work, and more. When people visit, they want to stay in the best possible locations and properties, and they are willing to pay a premium to stay at a luxury hotel such as Conrad Miami.

The commercial properties in the Brickell area have relatively high prices because of the potential that they offer. It was only a couple of months ago that an office building in the area (777 Brickell) went to investors from Brazil for $140 million. Investors who are looking for great properties and who are willing to pay for them are not rare in today’s world. The investors who bought the office building at 777 Brickell were from Brazil, and you’ll find that a large number of investors are from out of the country. Latin America, as well as China and parts of Europe have a number of investors who are very interested in the Miami area.

They can see the potential that the area has to bring in a good return on their investment, and they are snapping up properties as quickly as they can. While $100 million may seem like a lot of money, for investors and investment groups, it is easily feasible, and you can be relatively sure that this hotel will not stay on the market for too long. The only question is who the buyer might be and how much they will finally end up paying for the property.

Soon after this announcement last week, Dallas, Texas-based Gaedeke Group has purchased the Espirito Santo Plaza in the Brickell Financial District for $142 million, Miami-Dade County records show.

Estoril Inc. sold the 36-story office building at 1395 Brickell Avenue. EXAN Capital was marketing the property. It was developed in 2004 and spans 659,753 square feet, according to Miami-Dade property records.

In June, Gaedeke announced plans to invest $300 million in “larger office properties exclusively in primary markets.” The full service real estate firm, which has regional offices in West Palm Beach, also closed a $65 million mortgage from JPMorgan Chase, records show.

EXAN’s Juan Jose Zaragoza and Juan Arcila worked on the deal, a spokesperson told The Real Deal. There was no listing price, “but we were obviously aware of what’s going on in the market,” the spokesperson said.

Not included in the acquisition was the Conrad Miami, which is on site. The hotel was listed for sale earlier this year and expected to sell for more than $100 million. CBRE is marketing the luxury 203-key hotel.

“There is enough capital interested in acquiring Brickell Avenue office properties for each property to sell many times over,” Chris Lee, vice chairman of CBRE Capital Markets told The Real Deal. “It is among the most difficult markets in the world for a buyer to win a deal.”

The property is in the heart of Brickell, near Brickell City Centre, which when completed will include a 500,000-square-foot shopping component, two condominium towers, two Class A office buildings, and its EAST, Miami Hotel. Check out available commercial real estate in Miami here

In February, the 13-story SunTrust office building at 777 Brickell sold to Brazilian investors for $140 million.

South Florida Commercial Real Estate Looking Bright

By Sunny Isles Real Estate Expert on July 15th, 2015

Miami Brickell City Centre

The JJL’s Pulse360 2015 panel members provided predictions about South Florida’s commercial real estate (view all commercial listings), and the outlook is looking very bright. Among these predictions were:

• 2015 is looking to be a strong year for commercial real estate in Florida due to steady investments and a strengthening economy.
• Prime office spaces may see an increase rental rates from 15 to 25% over the next two years as new workplace construction slows, and absorption rates begin increasing.
• South Florida is continuing to grow in popularity thanks to the tourism boom, and world-class hotels, restaurants, and retail locations.
• Millennial entrepreneurs and their rush to the urban core, including in places such as the Design District, Miami Beach, and Wyndwood, along with the increasing popularity of shared office spaces, will cause changes in the face of work sites.
• The Miami Worldcenter, Brickell City Centre, and the Design District, which are three of the top ten retail destinations in the nation, are all currently being built in Miami.
• Currently, the only prime office tower that is slated to be built is the Brickell City Centre by Swire Properties, and it will not be completed until 2019.

All of these predictions and findings show that South Florida is poised to take advantage of the increasing demand for space required by national and international retailers who are choosing to take advantage of the tourist base in Miami. This tourist base, which includes international travelers from locations such as Brazil, arrive in Miami with empty suitcases that they plan to pack with purchases to take back home with them. Major retailers want a piece of that pie.

Land Price Increases

Another driving force behind the increase in office rental prices is the high land prices. This is causing many developers to abandon office sites, and change their focus to the popular luxury condominiums that are being bought up by foreign buyers, many of whom pay in cash.

Considering that the Swire project is the only one expected to occur between now and 2019, JJL’s Pulse360 members believe that this will result in one thing – rental rates will go sky high. These rates will be driven by the lack of additional supply of office spaces in a market that is already tight, and according to the predictions, this is going to be a major push to getting those rental rates even higher.

While there are no other projects currently under development, Nitin Motwani, who assisted with the creation of Venture Hive, a shared workplace for entrepreneurs close to downtown Miami, has said that there have been other developers who are interested in the concept, and creating sites that are similar. However, the problem with creating those sites is that financing is not as easy to secure since it is outside of the typical office space. Motwani believes that this will change as well, although it may take up to 10 years for that type of financing to become the norm.

All of these predictions show that South Florida is a prime location for retail rentals, and it is only going to get better.

South Florida’s Office Market Bolstered by Latin Investors

By Sunny Isles Real Estate Expert on December 21st, 2014

Miami commercial real estate

The residential Miami real estate (view home page site here) market has traditionally been well served by Latin American buyers and investors. Now those same investors are helping to support the area’s office market by investing in office condos in Miami. This both supports and spurs on Miami’s expansion in office space and the number of businesses and entrepreneurs operating in the city.

Ofizzina 1200

One of the most visible ways that Latin American investors are helping make Miami a thriving place to call home is the creation of Ofizzina 1200. This office/condo/suite amalgamation will stand 16 stories tall, and will house 47 office suites. It will be located at 1200 Ponce de Leon Boulevard in Coral Gables, and will span an impressive 97,000 square feet of office space in a Mediterranean themed building.

Other Developments

There are several other business developments in and around greater Miami these days other than Ofizzina 1200. Another can be found along the riverfront in Downtown, where the Coto supermarket family of Argentina paid $125 million for a construction site. The same family also purchased 19 office condos at 1200 Brickell Avenue earlier in the year. (CLICK HERE for Miami commercial real estate)

Not for Immediate Use

While Ofizzina 1200 will be constructed for immediate use as business space, many Latin American investors are buying existing rentals and transforming them into office condos, then turning around and either leasing or selling them outright. Some experts point out that this allows investors to pay $180 per square foot initially, but sell for $300 per square foot after reconfiguring the space for the needs of business owners. That’s a significant amount of profit, and it also serves the Miami area where there are few places investors actually want to be, despite the ongoing business expansion within the city. That expansion is more than sufficient to support multiple luxury office building projects, as well as office condo development.

Other Business Developments Downtown

While Latin American investors are doing a great deal to bolster the economy in South Florida, there are other noteworthy developments. One of those is the 17-acre site that will soon become Miami Worldcenter. It will create an estimated 18,000 jobs, and will house condos, retail space, bars and nightclubs, restaurants, a massive conference center, and even a 1,000-room hotel. Of course, there’s also Brickell City Centre, a massive mixed-use project already under way. BCC will feature residential areas, business areas, and even the first Cinemex north of the US-Mexico border.

Add to that explosion and expansion of business the burgeoning real estate market (which recently hit a six-year high in term of price), and you have a true recipe for success. Miami residents look forward to putting the lingering effects of the recession behind them, and for many, that might occur much sooner than for other areas of the nation where real estate prices are still depressed, and businesses are vanishing at an astonishing pace.

Miami, already a world-class city, is poised to take on a leadership role on the international business scene comparable to its reputation as one of the best places to live.

Two Hot Properties Sell for $34.5 Million Apiece In Miami Beach

By Sunny Isles Real Estate Expert on June 25th, 2014

Miami Beach real estate

When many people think about residential real estate in Miami Beach, they immediately start thinking about all of the residential properties and condominiums that are available right on the beach. However, as plentiful as they are, residential real estate is certainly not the only game in town. Commercial property is also a big seller, as is demonstrated by two recent sales that brought in a large amount of money.

South Beach Gallery/Home of Romero Britto

Brazilian artist Romero Britto recently sold his home, which also serves as his gallery and showroom called Britto Central. The building, located at 818 Lincoln Road, has been a fixture of the area since 1935. The last time this property sold, which was in 1993, it went for $335,000. The sale price this time was $34.5 million.

The buyer was a company based in Montreal called 818 Lincoln Investments. The manager of the buying company was Danny Lavy, who also happens to be the CEO of Elite Group Inc., a company that distributes household products.

Another Lincoln Road Building Brings in the Big Bucks

Just one week after the sale of the gallery, another retail building in the area, just a short distance from Britto’s gallery, sold for, again, $34.5 million. In this deal, JSRE Acquisitions bought the 716-720 Lincoln Road property. This building was bought by a company called 718 Lincoln Owner, and there was no financing recorded.

The seller was Investment Group of Miami, who had actually owned this 7,500 square-foot property in South Beach for twenty-one years before making the sale. This building is nearly as old as the gallery, having been constructed in 1936. It is just between Forever 21 and H&M. Currently, the company that leases the property, RFK, says that the two businesses occupying the spaces in the building are Cache and American Apparel.

What Will Happen at These Sites?

It does seem quite strange that within a week of one another, two properties very close to one another would sell for the exact same price. While there is the possibility of a connection, very little is actually known at this time, and it could merely be a coincidence.

Of course, there is also the possibility that a large company, or conglomeration, could be buying up land and properties in the area as a means to begin planning a future development. Again, it’s too early to tell exactly what will happen at these sites. They could continue in their current capacity with absolutely no changes whatsoever.

Still, it should be quite interesting to watch and see what does happen, and to keep an eye on the area to see if there might be any more of these big dollar sales in the coming weeks and months. After all, it is important to keep this area of Miami Beach in mind. It has a great location that is quite popular with developers, and there is every chance that we could be seeing the very beginnings of one or more new developments.

Pembroke Tops Florida Multi-Family Transactions at $225 Million

By Sunny Isles Real Estate Expert on February 24th, 2014

Miami commercial real estate

A $225 million transaction in Pembroke topped the multifamily stats for this year. The sale was for a 1520-unit community known as the Resort at Pembroke Pines. The sale was completed by the Carroll Organization, out of Atlanta.

Although the property was a bit rundown and outdated, the Carroll group developers were still interested in picking up this apartment complex, despite the fact that it is not quite as modern or stocked with amenities as newer complexes. This demonstrates that investors are interested in apartment complexes that already exist, rather than just having an interest in developing new apartment complexes.

Lower The Risk

According to reports, the prices of land in Florida have been going up and the costs of development have been going up, but growth as far as rental income goes is slowing. This means that, for developers, there is less risk involved in purchasing existing properties than there is in developing new properties, a process which can take two or three years to complete. The reporting states that, of course, in two or three years, the market can be remarkably different than it is at the time the development starts, adding an element of risk to the investment.

Stabilizing Market

While growth in the Miami commercial real estate market may be picking up, economic indicators show that the typical cycle of booming and busting in the South Florida real estate market may be between 7 and 12 years. With investors moving in from all over the world – Latin America, Russia, Europe, etc. it has proven to be particularly rich with people looking to make investments in South Florida real estate – real estate prices have largely stabilized and luxury properties are selling well again.

What’s Out There

South Florida may be principally known for its very high-end, upscale luxury real estate properties, but there are still many distressed properties on the market and, as this transaction shows, properties that may be a little bit outdated, but that could become very attractive provided they were given a bit of renovation. For some commercial real estate developers, it’s more attractive to invest in a property such as these, simply because they do not have to go through the development process or take on any of the extra risk associated with that process.

As the South Florida real estate market continues to grow, there are likely to be many very attractive deals that come available on the market, but it generally requires a skilled real estate agent for clients to be able to take advantage of these properties. We provide a list of Miami’s most expensive condos and Miami’s most expensive homes for sale and give forecasts about the market in general, both of which should be of great interest to individuals looking to invest in the luxury properties available in a South Florida market or, in fact, some of the older properties that could be very good investments with a little bit of redevelopment.