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.


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.


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.


Commercial real estate for sale

Investors in private equity funds tend to take on riskier real estate opportunities such as office buildings with high vacancy rates, or distressed properties that are often strapped with huge debt. The private equity fund might be invested in a high priced new construction project that can only be completed with well-healed purchasers that can hang in there long enough to create a profit.

The sophisticated investor is always on the lookout for anyway to maximize their diversified portfolio. They are eagerly seeking any type of option that can generate solid profits. In their effort to achieve a well-balanced portfolio, they will often turn to private equity funds. This is because these funds do not usually subject themselves to a traditional stock or bond market volatility.

It is the premise of the investor to select a private equity fund because of the potential for an attractive return. Some investors trust the experience of well-managed fund professionals that often subscribe to proven investment strategies.

There are a large number of individual investors that have experienced success with private equity Miami real estate investments. Since the downturn in the real estate markets, back in 2007, many private equity fund investors have waited patiently, for the market to reverse. With the increased sales in many communities across the nation, especially Southeast Florida, the time seems right for many investors to locate their next project.

Leveraging and Cash Flow

Typically, a private equity group will use debt leverage as a way to automatically increase the investment return on their capital. Usually, the amount of leverage that is applied is typically determined by the generated profit results the debt can provide. Sometimes great effort needs to be applied by the private equity fund group to turn a project around to create cash flow.

Exiting

Many private equity fund programs are designed as a way to create profits, and not run a business. The group tends to generate their income from significant cash flow because they acquired a real estate property, along with any money that will be generated when selling it. It is the exiting from the project that is the mechanism used to the group to monetize their equity.

Usually, a private equity fund group will seek out a quality project that can produce the best “liquidity event.” This might mean that the group purchases an office building that has yet to be completed, or has high vacancy rates, and turns the scenario around. Once the building is complete, or the occupancy rate is increased, they can liquidate the property and take their profit.

Not all fund investment opportunities work this way. Overall, private equity funds tend to liquidate their assets less often than other trading instruments including hedge funds. Because of that, investors often struggle to determine the current value of all of their assets pertaining to the private equity fund held in their portfolio, versus all of their other assets of other trading instruments.


Sunny Isles real estate

June turned out to be one the busiest months for Miami real estate market. From sales of celebrities homes to latest Miami pre-construction projects, to commercial real estate deals, the Magic City’s fame as an international business and hospitality center continues to draw foreign cash buyers and baby boomers to more expensive luxury Miami real estate rather than to cheaper Broward and Palm Beach counties.

Here are some of the exciting news which took place in Miami in June 2013:

Al Capone’s former Palm Island mansion sold for $7.43 million

The house, at 93 Palm Island, is said to be where Capone allegedly planned the St. Valentine’s Day massacre and died of syphilis years later. The estate, which the gangster reportedly purchased for $40,000 in 1928, boasts a private beach area on 100 feet of Biscayne Bay frontage, a spacious swimming pool and cabana area and multiple balconies.

Singer Billy Joel has sold his Miami Beach home for $13.75 million

This was all-cash deal, $1 million off its listed price. The Mediterranean-style mansion at 82 La Gorce Circle was built in 2004 and boasts 8,881 square feet of living space, including seven bedrooms and eight and a half bathrooms, a wine cellar and expansive outdoor kitchen. TMZ reported the buyer as Diego Della Valle, owner of Tod’s and a majority shareholder in Saks Fifth Avenue worth a reported $1.55 billion. A spokesperson for One Sotheby’s was unable to confirm. We are excited to report this was ONE Sotheby’s International Realty’s listing.

Introducing Baltus House – the latest Related Group pre-construction project in Miami!

Baltus House will be built within the next two years on Biscayne Blvd and 43st Street in the most trendiest Midtown Miami area. With prices starting at just $230K it offers spacious modern design, great amenities and most beautiful water views.

Jade Signature Sunny Isles

is one of the most anticipated projects in Miami and many investors and end users can’t wait for it to be built. The new 57-story technological wonder will be rising in the heart of Sunny Isles Beach, one of the most sought after residential areas on the ocean. Take a look at the sneak peak video below to see why it is so popular and desirable:

Oceana Key Biscayne project is more than 90-percent sold-out while still in pre-construction phase. It is being developed by the first U.S. development of Argentine real estate mogul and art collector Eduardo Costantini, leaving only 1 penthouse and 6 villas on the market 10 months after sales opened.

Miami commercial real estate

has always been one of the most desirable assets for investors, especially on Lincoln Road. This month Terranova Corp. and Acadia Realty Trust obtained a $84 million loan from Bank of America for a trio of retail buildings on Lincoln Road in Miami Beach, Daily Business Review reported. Terranova and Acadia purchased the buildings at 719, 801 and 826 Lincoln Road for $139 million dollars.


Commercial real estate For Sale

Commercial real estate in Miami

The recession has had a major impact on many different parts of the economy, and the Miami real estate market has definitely felt this. However, in the recent weeks, the commercial real estate market in Miami has managed to get above the recession and start making an upward swing that is most definitely good news. Not only is commercial real estate value improving, but it is actually improving in all areas. This is news that is certainly worth noticing, and the National Association of Realtors has indicated that there is more to note. The commercial real estate market has recovered in almost all ways. Additionally, some markets are not just recovering, but they are also growing. One such market is the apartment rental area of commercial real estate. A recent survey that is completed by the National Association of Realtors on a quarterly basis showed that these findings for the commercial market are definitely true.

The National Association of Realtors chief economist, Lawrence Yun has indicated more about the Miami commercial real estate market and its growth. Yun stated that because more jobs are being created in the American economy, this has lead to a growth in the commercial real estate market. As consumers have better jobs and spend more money, commercial businesses will continue to grow. If the federal budget stays on the track that it is, there will be millions of new jobs created in the United States in just two years. This will allow the commercial market to continue to grow as well.

Smaller Markets

The only area in which there seems to be struggles would be in the smaller commercial properties. These properties that are priced lower than just a couple of million are still not selling as well as could be hoped according to the National Association of Realtors. This would be because smaller companies still have more restrictive budgets while larger companies are feeling more of a business boom.

The Markets

The Miami office real estate market

is definitely seeing some improvements. At the beginning of this year, the office property vacancies were more than sixteen percent. Since that time, the vacancies in major areas of the country have dropped dramatically. For example, in New York City, the vacancies are down to just ten percent.

In the industrial real estate market, vacancies in properties are expected to continue declining as well. At the beginning of the year, the vacancies for industrial properties were at about eleven percent. In some metro areas, the percentages have dramatically dropped. In fact, in Miami, the industrial property vacancies are down to just over seven percent.

These drops in vacancies are being seen in retail and multifamily Miami real estate markets as well. In the retail market, they have dropped from an average of eleven percent to as low as three percent in some areas. The multifamily market has dropped from around four and a half percent to just above for percent.

As the economy continues to improve, the commercial real estate in Miami will continue to improve as well, which is most definitely good news for the United States overall.


Miami real estate

Hallandale preconstruction condo

The latest report from Miami Herald (http://www.miamiherald.com/2012/02/08/2631956/construction-spending-finally.html) indicates that the construction spending in South Florida rose for the fourth month in a row in Broward County in November 2011, joining Miami-Dade County as areas with sustained growth in the real estate sector. “We’re seeing a lot of custom-home building,” said Bernie Navarro, head of the Latin Builders Association. “You see it in Key Biscayne and Coral Gables and Pinecrest. Those places had fallen to zero. Now they’re back on.” While construction employment is falling, the losses are more narrow than previously. “It’s going better than I expected six months ago,” said David Denslow, an economist at the University of Florida. “Remember, six months ago we were worried about a double dip. Now all of the evidence is pointing the other way.”

The Hollywood and Hallandale Condo resales

jumped in 2011 as well. Buyers purchased an average of 140 condominium units per month in the Hollywood and Hallandale Beach areas showing an increase in 2011 of nearly 20 units per month from 2010. This is due to the influx of investors chasing discounted condo resales that can be leased out to tenants who are willing to pay higher rents.

Latest report indicate that office vacancy in Miami-Dade County was at 19.1% at the end of 2011, according to data from CBRE Group’s Florida Market Perspective 2011. There was a total of 44.1 million rentable square feet in the county, and 8.4 million vacant. Last year saw net absorption of 64,238, with 359,630 square feet under construction, with the average asking lease rate in the county at $30.32. “The Miami office market has gained strength during 2011 with tenant activity picking up,” said Carter Hopkins, first vice president at CBRE. “The market should continue to strengthen in 2012.”

In addition to single family homes in Miami

the pre-construction condo sector is also on the rise. Fueled by steady pre-sales at the nearby Apogee Beach Hollywood condo, Jorge Perez of the Related Group is planning a new 31-story tower with condo and hotel units fronting the Intracoastal Waterway in the Hollywood nad Hallandale Beach coastal market of Southeast Broward County.

Despite the unsold inventory, the Related Group broke ground on the 23-story Apogee Beach condo tower on the sand just north of Hallandale Beach Boulevard in December 2011. As of Jan. 30, 2012, buyers have committed to purchase 41 out of 49 units in Apogee Beach project, according to company marketing material.

The path to development for the proposed Beachwalk tower – a few blocks west of the Apogee Beach project – is shaping up to be a bit more complicated initially. The proposed Beachwalk tower – which would stand 305-feet high with 84 residential units and 432 hotel rooms. Beachwalk is the 22nd project to be proposed east of Interstate 95 in South Florida. If they are all built, the projects would add nearly 4,400 units into a market that had 4,200 developer units unsold at the end of last year.

A Related affiliate bought the Beachwalk development site, home to Manero’s Steakhouse for five decades, for more than $2.9 million from TD Bank in May 2011. The Beachwalk project is slated to cost $60 million to construct and have a market value of $80 million at completion.

Related is also planning to start construction in two weeks on its MyBrickell condominium in Miami. To date, about 80 percent of the 192 units are under contract, with buyers paying a 20 percent deposit, the company said. It would be the first new condominium project to break ground in downtown Miami in several years.

Developers seeking to launch new condo projects are focusing particularly on the high-end market, which continues to dominate because of the ability of its prospective buyer pool to pay cash for units. The 70-unit Bellini Williams Island – a high-end condominium in Aventura’s William Island recently broken ground.


Miami Commercial Real Estate

Miami Apartment Buildings For Sale

Great news for the beginning of this year came from the commercial real estate sector, reports Miami Today (http://www.miamitodaynews.com/news/120105/story3.shtml).

Miami commercial real estate market is performing better than most

experts say, and values in some sectors may be rising within the next year.

“In my view it was relatively flat this year, but improving fundamentals remain a positive trend for 2012,” said Howard Taft, managing director of Aztec Group, a real estate investment banking firm. “Miami real estate is one of the few markets in the US offering a wide range of opportunities for domestic and international investors.”

“It’s a very vibrant market right now, with a tremendous amount of capital looking for deals,” said Warren Weiser, co-founder of Continental Real Estate Cos. “The money side is fairly disciplined given what we’ve gone through before.”

While aggressive cap rates are at pre-2008 levels, he said, “what is different is that rental rates in certain markets have declined and even stabilized somewhat in some areas.”

The dynamics for retail, office and industrial sectors are similar, Mr. Weiser said; office “has some absorption to go through, but as space gets leased up, rates can start pushing a little higher. The retail market has held up very well, and industrial has not had much new product added to the market.”

Retail in Miami-Dade has the lowest vacancy in the state, and with little new supply and cap rates running 6.25%-7%, it’s likely to remain stable through 2012.

“Miami’s office market continues to favor tenants,” he said. “Vacancy is still double-digit, and that could mean generous tenant improvement allowances and concessions.”

Douglas Campbell, president of Campbell Real Estate Advisory Group, said despite the addition of 600,000 square feet at Brickell World Center, which lifted office vacancy in Brickell’s class A sector to over 30%, rents have not dropped.

In fact, he said, “rates have bottomed out and are on the rise, with diminished concession packages when compared with a year ago at this time. “Class A asking rates on Brickell now exceed $40-$45 per square foot, year one.”
The Coral Gables and Airport West submarkets are following suit, Mr. Campbell said. “Class A vacancy in Coral Gables is still hovering around 15%, and has very few large contiguous space opportunities.

“In all submarkets, absorption of new space is usually due to a tenant relocating from one space to another rather than the introduction of new tenant need coming from outside of this marketplace. Expanded need for space is directly related to our local, national and global economy, which drive GNP as well as local employment trends.”

In Airport West, industrial space under 50,000 square feet, which covers the needs of 60% of tenants, is thriving.

“In that range, rental rates for class A have gone up around 13% from a year ago, and vacancy is as low as 3%. It’s a very active market.” In larger spaces, he said, “things aren’t as rosy.” He put vacancy there at about 8%.

“In my opinion, the next six to 12 months will start to see absorption in the largest spaces, because there are requirements out there that will eventually land somewhere,” Mr. Pino said.

Lease rates for industrial space in Medley have stayed the same but are anticipated to rise soon, said Brian Smith, an executive director with Cushman & Wakefield.

“Medley has seen a lot of transactions this year,” he said, “and occupancy has returned to very healthy levels.” Mr. Smith also reported a dichotomy between smaller and larger spaces.

“In spaces less than 40,000 square feet,” he said, “rental rates will most likely increase in 2013, and it will begin to turn from a tenants’ market towards a landlords’ market.

“There are still multiple options for spaces 75,000 square feet and up, so rents there will remain stagnant until some of these are absorbed.”

Positive indicators for South Florida’s industrial market include the expansion of the Panama Canal, the Port of Miami tunnel and deep-dredging projects, and recent trade agreements with South Korea, Panama and Colombia, Mr. Pino said.

Although the US economy remains weak due to low consumer spending, Mr. Taft said, a lot of investors still want to buy US real estate.

“Some banks are saying it’s a good time to lend,” he said, “because property values are at their lowest ebb, so there’s not much more downside.

“We’re in the bell curve of refinancing. Trillions of dollars of refis will be coming due soon. Some will be easily refinanced, but there will also be opportunities for mezzanine lenders and buyers because owners will be underwater.”

Going forward, Mr. Taft said, the biggest risk is the European financial crisis. “We feel that a recession and collapse will affect many US companies,” he said, “reducing the need for office and industrial space as well as retail space demand.

“Another thing to look out for is the Dodd-Frank Act dealing with regulation of banks. The lack of clarity there will spook a lot of investors. “So we are entering 2012 with three legs on a four-legged chair.”

Click here to view all currently available commercial real estate Miami


Miami real estate for sale

 Miami Beach Condos For Sale

Being a broker of Sunny Realty and providing one of the most used resource for Miami real estate (http://www.sunnyislesmiamirealestate.com/) I’m often asked: “how’s (Miami) real estate these day?”. Unfortunately I can’t just answer this question simply – “good” or “great” or “better”. When I start to explain that Miami basically has the best and worst real estate in the country, people think I’ve gone nuts and trying to sell them a story. However, here is The New York Post recent article By ANDY WANG.

Summer was hardly a vacation for those in the business of selling Miami condos.

“I didnt go to St. Tropez because of this”, says developer Gil Dezer, whose Sunny Isles Beach condo projects include the 384-unit Trump Royale and the three-building, 813-unit Trump Towers.
Dezer reports that he sold more than $100 million in Trump units during June, July and August ($50 million alone in August, including a $29 million, 34-unit bulk deal). He has closed more than $1 billion in Trump condos overall and has only about 75 units left.

Recent Trump Towers Condos sales

have been priced at about $525 per square foot. Thats significantly less than the $1,000-per-square-foot contracts buyers walked away from in 2009 after the financial crisis hit, but Dezer, whos paid off the construction loans for all four buildings, seems satisfied. (Donald Trump participated in a ceremonial Trump Royale condo mortgage-burning ritual, lighting the document on fire himself, in January.) The downturn made the job challenging, Dezer says. Every day was a battle. But when youre winning, its fun.

Winning could also be used to describe the situation at Icon Brickell. That nearly 1,800-unit downtown colossus, built by the Related Group with designs by Philippe Starck, seemed to be in peril not long ago, and two of its three towers were deeded back to its lenders in May 2010. But Icon Brickell Condos now nearly sold out, with more than 1,500 units closing for a total of more than $700 million. When you factor in units in contract, only about 30 condos remain.

I think the market has consumed the inventory in a much more rapid way than I and probably everybody thought, says Related Group chairman and CEO Jorge Perez, who adds that most buyers have been foreign. The Latin American economy has been strong.

The forecast was that we would sell all the units in three years at an average price of $350 per square foot, says Edgardo Defortuna, president of Fortune International Realty, which started selling Icon Brickell apartments in June 2010.

Less than a year and half later, Fortune is almost done and seeing prices at about $400 per square foot.

Demand has been so strong that Perez is now building another downtown development. The 192-unit MyBrickell is a couple years away from completion, but Relateds received over 60 reservations for condos before officially launching sales. Unlike Icon Brickell, MyBrickell isnt on the water, and Perez is passing on the cheaper construction costs and the deal we got on the land to offer units, with interiors by Karim Rashid, for about $300 per square foot.

Defortuna, meanwhile, is now selling downtowns Paramount Bay, a 346-unit building resurrected out of foreclosure by owners iStar Residential and ST Residential. Musician Lenny Kravitzs Kravitz Design firm is working on the building, where prices are about $400 per square foot.

South Beach real estate

with significantly pricier properties, is seeing lots of action, too. The summer was uncharacteristically busy, says Lana Bell, president of Sunny Realty, which has an office in South Beach and Sunny Isles Beach. We certainly didnt take a vacation.

According to Sunny Realty latest Miami market report, South Beach condos sold for an average of $515 per square foot during the third quarter. But this factors in distressed properties, including units bought out of foreclosure.

At the markets top end, the W South Beach Hotel & Residences has closed about $260 million in condos at an average of $1,700-plus per square foot, developer David Edelstein says. The W South Beach sold more than $50 million during the summer. One penthouse went for $7.7 million, north of $3,000 per square foot, Edelstein says.

As with much of Miami, foreign buyers have been key at the W. (Douglas Elliman translated its market report into Spanish and Portuguese to spur international interest.) From May through September, about 65 percent of Edelsteins purchasers were foreign, and about half of those were from Brazil.

The allure of the W has helped nearby condo buildings lure in buyers, including those from New York.

Fashion designer Irina Shabayeva, who won season six of Project Runway, owns a one-bedroom with a balcony at the 52-unit Boulan South Beach development just south of the W, but on the other side of Collins Avenue.

I like the Boulan because it was so new, really fresh and modern, says Shabayeva, who primarily lives in the East Village. And its across the street from the beach and the W.

Shabayeva says she enjoys the New Yorker-friendly amenities at the W, which include a Warren Tricomi salon and a Mr. Chow restaurant. And Edelstein says that the Dutch, an outpost of Andrew Carmellinis SoHo restaurant, will open in the W by Thanksgiving.

Boulan, which has sold 22 condos and has one-bedrooms on the market for upward of $600 per square foot, is busy filling its own retail spaces, as well. An art gallery should open in time for Decembers Art Basel festival. A Mexican/Asian fusion restaurant and a nightclub are also in the works.

Neighborhoods all over Miami are getting big residential and retail makeovers. The 56-acre Midtown Miami developments second phase, which will start next year, will include a boutique hotel, a movie theater and 100,000 square feet of retail.

Well definitely have a fashion component, says developer Jack Cayre.

And the nearby Design District is getting a Louis Vuitton store.

There was probably a point in time here someone said, Whats Chelsea? or Whats Meatpacking? and eventually, they became a place because New York was ready to have another place, says Greg Masin, senior director at commercial real estate firm Cushman & Wakefield. When we look at the Design District and at Midtown, what we see is the evolution of the next place in Miami.

Plus, the downtown Metropolitan Miami developments third phase will include rental apartments and a Whole Foods Market. Plans for downtowns eight-block Miami Worldcenter site include residences, restaurants and retailers. And the Genting Group, an Asian casino operator, has unveiled plans for its $3.8 billion Resorts World Miami mixed-use complex. But the scope of the latter two projects will depend on approval for casino gaming, something thats the object of much speculation and uncertainty all over Miami.

Dezer says he has been talking to major Las Vegas casino operators about land he owns in Sunny Isles (13/ acres on the beach and 6/ acres directly across the street that hits the intracoastal waterway) that could accommodate a gaming resort with more than 2,000 rooms and 3 million square feet.

They’re both good real estate, Masin says of the Genting and Dezer sites. If they both had a casino, theyd both be successful.

Whatever happens, Dezer has options.

We originally bought [the land] to build condos, he says. We could build five condo buildings.

That idea would have seemed ridiculous in 2009, but now its more plausible.

Defortuna has sold out the 256-unit Jade Beach condo building in Sunny Isles Beach and has just three apartments left (for about $700 per square foot) at its 252-unit Jade Ocean sister property.

In terms of quality inventory, oceanfront, he says, you can make a strong argument that you need to start building now.

Originally published by ANDY WANG.

(c) 2011 The New York Post. Provided by ProQuest LLC. All rights Reserved.


Commercial Real Estate In Miami

Apartment Buildings For Sale In Miami

Over the past several months, numerous reports have pointed to the rising strength of the Miami rentals market. Investors from local regions, as well as abroad, have been snapping up discounted properties with the intent to rent to residents as well as tourists. While a variety of property types demonstrate rental promise, a recent report released by CBRE suggests that the multi-unit properties are leading the charge.

According to their report, rents throughout the Miami-Dade area have seen increases of up to 3.4% over the past year. This rise in rental income places the current market above rents seen back in 2006 and 2008. Real estate experts from the CBRE group suggest that the rental market has not yet seen its peak; but rather, property prices should continue to climb over the next year.

Why are rental properties increasing in popularity throughout the Miami area?

One of the largest contributing factors to the area’s rental values is the depressed economy. Many homeowners in the area have been forced into short-sales, or foreclosures, leaving them and their families in search of new housing. Due to credit damage from these forced sales, many former homeowners no longer have the credit required to purchase a new property. So, they set out in search of quality rental options.

Yet another contributing factor to the strengthening of the area’s rental market is the always strong tourist interest. Domestic nationals as well as international tourists make their way to the Miami area each and every year in search of quality rentals. Some visitors are in search of family friendly, affordable rentals offering the capacity for multi-family sleeping, while others are in search of the best Miami luxury apartments the area has to follow, offering oceanfront views. As such, rentals falling in both categories are considered desirable, for very different reasons.

Recent interest in the multi-family rental market has emerged within the developer sector. Multi-family development interest is in part derived from the fact that the Miami-Dada area boasts the 4th largest occupancy rate for properties of this type across the nation. Currently, there are 62 active multi-family properties in development, soon to offer nearly 18,000 units for purchase/rental consideration. As there are currently only 62 properties built after the year 2000, these new developments indicate that this market segment is strong. The limited supply of multi-family properties coupled with strong interest rate offers will continue to drive new development in this market sector.

“Real estate transactions within the multi-family sector are expected to rise in the coming months, among both residential investors and foreign buyers. Now is the time to act on these market opportunities, as supply increases, demand will begin to level out. As to when this transition in supply and demand will occur is anyone’s guess, we suggest as with any investment opportunity, to buy at the beginning of the curve, not at the end when pricing has risen and profit margins have become depressed,” said Lana Bell of Sunny Realty.


Content published by Lana Bell

Content published by Lana Bell