October 30, 2015 | The Real Deal
Units are full-floor residences stacked on top of each other
The founder of a major steel corporation in Ohio is linked to the $15 million purchase of two condos at the newly built GLASS condo tower in Miami Beach.
Units 1100 and 1200 at the just-completed building were sold for $7.3 million and $7.9 million, respectively, to a company called Majestic Steel Properties on Monday, Miami-Dade property records show. The company is based in Ohio and shares an address with Majestic Steel U.S.A, a wholesale supplier of steel.
Ohio corporate records show that the company, first incorporated in 1991 for the express purpose of owning real estate, is headed by Majestic Steel founder Dennis Leebow.
The family-owned company was founded in the 1970s to capitalize on that decade’s steel shortages, according to a 2009 article from Crain’s Cleveland Business. It typically has a stock of more than 200 million pounds of steel products at any given time.
In 2007, Dennis Leebow began to step back so that his sons Todd and Jonathan could take over. Todd Leebow is currently the company’s president, and Jonathan is the executive vice president.
A Wall Street Journal article from 2005 said Dennis actually imported palm trees from Florida to his sprawling mansion in Ohio to give it a “Miami Beach air,” so maybe he wanted more of the real thing.
Todd Leebow and his bride Shelly Sheldon just married in Miami on Oct. 3, according to their wedding website. Among the guests: Lebron James, who posted on Instagram from the event.
Because GLASS is so new, property records don’t yet reflect the square footage of the condos, so the sizes of these two units are unavailable. Their unit numbers indicate that they’re stacked on top of each other, though.
A press release from Terra Group, the developer, said the 18-story building has sold all 10 of its full-floor residences, including a massive three-story penthouse that closed for $20 million earlier this week.
November 3, 2015 | The Real Deal
Eight units have sold so far, at an average price of nearly $2,700psf
A fourth new condo project in the high-end South-of-Fifth neighborhood of Miami Beach has been completed during this South Florida real estate cycle that began in 2011.
To date, eight transactions in the newly completed 10-unit GLASS project — formally called the Glass120 condominium — in the 100 block of Ocean Drive have been recorded at an average price of nearly $2,700 per square foot for a combined $70.5 million as of Monday, according to Miami-Dade County records.
Individual unit transactions in GLASS have ranged in price from $3.4 million to as much as $20 million each. On a price per square foot basis, individual unit transactions have been recorded between less than $2,100 to more than $3,000 each, according to government records.
As of Monday, one condo — unit 600 — in GLASS was listed for sale on the Multiple Listing Service at an asking price of more than $3,015 per square foot based on “unit area,” according to a combination of data from the Southeast Florida MLXchange and the project’s amended Declaration Of Condominium.
This same unit 600 in GLASS was purchased on Oct. 26 at a price of about $2,094 per square foot, according to government records.
Developed by the Terra Group with the father-and-son team of Pedro and David Martin, GLASS is an 18-story condo project located on the west side of Ocean Drive next to the popular Prime 112 steak restaurant at the southern tip of the barrier island in Miami-Dade County, according to government records.
The completion of the GLASS project occurred on the same day as the nearby Marea South Beach complex that consists of three buildings and a combined 30 units located on South Pointe Drive.
The Marea South Beach recorded its first transaction about four hours before the initial deed was recorded at the Glass tower on Oct. 15, according to government records.
The first new condo project to be completed during this South Florida real estate cycle in the South of Fifth neighborhood was the 321 Ocean project that consists of a pair of buildings with a total of 22 units on the east side of Ocean Drive. Transactions for that project began to be recorded in May.
A month later, in June, the 350 Meridian boutique condo with four units was completed.
In total, developers have announced plans to build 11 new condo buildings with nearly 150 units in the South-of-Fifth neighborhood of Miami Beach. Overall in Miami Beach, developers have announced plans to build 46 new condo buildings with nearly 1,950 units in the barrier island city, according to the preconstruction condo projects website CraneSpotters.com. (For disclosure, my firm operates the website.)
Overall, South Florida developers have announced plans to build a total of 387 new condo buildings with more than 46,250 units east of I-95 east in the tri-county region of Miami-Dade, Broward and Palm Beach during this cycle.
In completing the GLASS project, developers have now constructed 48 new condo buildings with more than 3,715 units east of I-95 in the tri-county South Florida region since 2011.
An additional 121 new condo buildings with about 11,650 units are currently under construction in South Florida, according to the data.
The new condo projects that are under construction or recently completed account for more than 33 percent of the total units announced for South Florida during this latest boom.
An additional 30,900 new units — nearly 67 percent of the South Florida preconstruction total — are currently in the planning or presale phase of development.
The unanswered question going forward is whether buyers in the market for a condo today are as bullish on the South-of-Fifth neighborhood of Miami Beach as those developers and unit owners who are attempting to sell at increasingly higher prices.
October 31, 2015 | The Real Deal
Overtown, North Beach in Miami Beach, the Arts & Entertainment District and Coconut Grove are among several areas that have emerged as the hottest real estate submarkets in greater Miami as the fourth quarter gets under way, according to recent interviews with real estate analysts and developers.
“These emerging areas are seeing a renaissance of activity,” said Alex Zylberglait, a senior vice president for brokerage firm Marcus & Milichap. “Pricing is going up as land is becoming [scarcer].”
A quiet community with single-family homes and low-rise apartment buildings, North Beach is about to undergo a significant transformation once developer Terra Group breaks ground on its 20-story, 64-unit luxury condominium at 8701 Collins Avenue, Zylbergait said. “In the next few years, you are going to see more higher-density, mixed-use projects in North Beach,” he said. “You will also see the development push westward to the Intracoastal side.”
New York real estate investor Guy Smilovich is quite bullish on North Beach. He said in an interview that he bought in the neighborhood because the area has “long-term value.”
Smilovich is moving forward with renovating his Art Deco building at 8200 Harding Avenue. It will connect via a courtyard to a new 13-unit luxury apartment building going up on a vacant lot at 8204 Harding Avenue, with a mechanical-lift parking system.
The two properties, approved by Miami Beach officials earlier this year, are located one block west and three blocks north of Terra’s 8701 Collins project.
Smilovich also owns a four-unit building at 8144 Harding Avenue, which he might convert into a hotel.
The Arts & Entertainment District
Three years after NR Investments pitched its tent in the Arts & Entertainment District, which connects Wynwood and the Design District, the neighborhood is well-positioned for major growth, said company principal Nir Shoshani.
In 2012, NR acquired the Filling Station Lofts at 1657 North Miami Avenue and transformed the 81-unit mid-rise tower into a rental building. Since unveiling plans last year for the 37–story condo tower Canvas, NR has sold more than 200 of the 513 units, Shoshani said. His company also owns a 1-acre parcel on North Miami Avenue between Northeast 14th and Northeast 15th streets, where NR hopes to build a mixed-use project with hotel, office and residential components.
Other major developers are also banking on the Arts & Entertainment District. The Related Group is planning a three-tower mixed-use site on 2.7 acres at 1400 Biscayne Boulevard that it purchased for $57.7 million last year. The residential element will be managed by luxury hospitality company Auberge Resorts.
Shoshani said the neighborhood has all the key attributes for creating an urban village, such as being close to public transportation and high-density zoning. “In four to five years, you will have a neighborhood that has an entirely new identity.”
Nearly a decade after developers Joe and Jack Cayre set about transforming a 29-acre former rail yard into Midtown Miami — a self-contained neighborhood with four residential towers and a shopping center anchored by big-box retailers — some new developments are on track to enter the picture in the coming months. In September, the Related Group and Dezer Properties broke ground on the Hyde Midtown Suites & Residences after selling 70 percent of the 410 residential units.
Just east of the abandoned Florida East Coast railroad tracks near Midtown Miami, developer Alex Vadia has submitted plans to the City of Miami for a massive residential, retail and restaurant complex.
“There hasn’t been much new development coming to the Midtown market for about eight years,” said Tony Cho, CEO of Metro 1 Realtors. “With all the activity taking place in Wynwood and the Design District, Midtown is poised to benefit from the spillover effect.”
In the historically African-American neighborhood of Overtown, a pair of massive mixed-used projects near downtown Miami could serve as catalysts for more redevelopment projects.
The construction of All Aboard Florida’s MiamiCentral complex near the Miami-Dade government center is well under way. In June, crews began pouring the foundations for a five-block project stretching along Northwest First Avenue. MiamiCentral is where All Aboard Florida’s commuter rail line from Orlando to Miami will make its last stop. The site will include five rail tracks, a train depot, four towers, a garage, almost 1 million square feet of office and retail space and more than 1,300 apartments, condos and hotel rooms.
Developers for the $1.7 billion Miami Worldcenter are preparing the 27-acre site for construction, which is scheduled to begin by the year’s end. The project includes a 500-unit Paramount Miami World-center condo tower that will be constructed atop a 765,000-square-foot retail and entertainment center anchored by Macy’s and Bloomingdale’s and developed by Forbes and Taubman. A 1,800-room Marriott Marquis hotel and convention center, as well as a tower by Orlando-based developer ZOM, with 429 luxury rental apartments, are also part of the project.
Despite a Goldman Sachs report that Taubman has “the potential to not go forward with (sic) World Center,” a Forbes executive said the national shopping center developer remains committed to the project, the Miami Herald reported in June.
Miami Worldcenter is receiving $88 million in tax rebates over 12 years for creating jobs for local residents of Overtown and other Miami neighborhoods.
Overtown’s potential is generating significant investor excitement, Paramount developer Daniel Kodsi said during a September real estate forum about Asian buyers, noting that 40 percent of the 60-story tower’s 513 units have been sold and 13 percent of the buyers are from China, an emerging market for Miami condo developers.
Affordable housing developers are also breaking ground on projects catering to middle–class working professionals.
Atlantic Pacific Communities and Palmetto Homes are constructing Island Living, an eight-story building with 70 units and 5,000 square feet of ground-floor commercial space at 1201 Northwest Third Avenue. At least 50 percent of the units will be set aside for buyers with incomes not exceeding 60 percent of the area’s median level. The project is financed with bonds issued by the Southeast Overtown/Park West Community Redevelopment Agency
In June, former Miami Heat star Alonzo Mourning’s AM Affordable Housing and partner Housing Trust Group broke ground for Courtside Family Apartments, an 84-unit mid-rise at 1700 Northwest Fourth Avenue. The $22.8 million project is being financed with $9 million in Florida Housing Finance Corp. low-income housing tax credits, $3.31 million in construction debt from Citi Community Capital, $7.5 million from Miami’s Southeast Overtown/Park West Community Redevelopment Agency and a $1.75 million Miami-Dade County surtax loan.
The July sale of a Little Havana super-market shows how hot properties in the historic Miami neighborhood have become. Last year the commercial building’s market value was about $605,000, according to Miami-Dade County property appraisal records. The property flipped for almost double the price and was sold to Calle Ocho Marketplace for $1.06 million. The market value for several neighboring properties has also ballooned by $200,000 to about the $500,000 mark.
Further east, closer to neighboring Brickell, Megacenter Brickell, a company that lists Pablo Wichmann and Patricio Ureta as managers, purchased almost three-quarters of an acre on both Southwest Seventh and Eighth Street at Fourth Avenue for $7.93 million, or about $253 per square foot. The previous owner, Key Biscayne-based London Real Estate Co., had paid $1.2 million for both lots in 2011.
Scott C. Sandelin, a national retail specialist for Marcus & Millichap who co–brokered the Calle Ocho Marketplace deal, said the supermarket was the fifth property in nine months that his firm had handled in Little Havana.
“Investors are taking notice of the opportunities to capitalize on the urban renewal in eastern Dade County,” Sandelin said in a statement. “We expect that the demand for properties will continue to escalate with new developments.”
Realtors have also begun marketing Little Havana as Miami’s next frontier. In April, downtown Miami real estate agency Fausto Commercial Realty took a group of real estate professionals, from bank loan officers to developers, on a promotional tour of Little Havana as part of an effort to illustrate that the historic neighborhood, home to many Spanish–speaking immigrants from Latin America, is primed for redevelopment.
One developer already making headway is the Astor Cos., which recently received $46.7 million in bank financing for its InTown mixed-use project now under construction at 1940 Southwest Eighth Street. The site, which includes a 312-unit condo tower, eight townhouses and 18,000 square feet of ground floor retail, is expected to be finished by the end of 2016.
In June, Astor founder Henry Torres said he is marketing the condo as “affordable luxury” units, adding, “I truly believe in Little Havana.”
Other developers targeting Little Havana include the Chetrit Group, with plans to build four 60-story towers along the Miami River.
Historic preservationists, however, have been running interference with the city of Miami to halt efforts to rezone the area for higher density and thus entice new development. They claim the proliferation of high-rises in Little Havana would destroy the neighborhood’s character. Earlier this year, their activism led to the creation of the River-view Historic District, which protects a few square blocks of east Little Havana that housed Latin American refugees and immigrants who arrived in the United States during the first half of the 20th century.
For many years, tony Coral Gables had avoided the type of heavy development that has swept through Miami and Miami Beach. Not anymore, said Masoud Shojaee, chairman of development firm Shoma Group, which joined forces with developer Ugo Colombo’s CMC Group to build the Collection Residences, a 128-unit, 10-story luxury condominium, in the heart of Coral Gables. The Collection joins a slew of high-density projects that are under construction or in the planning stages.
In July, the Coral Gables city commission greenlit the Mediterranean Village at Ponce Circle, billed as the largest development in the city’s history with more than 1 million square feet of hotel, condos and shopping on 6.7 acres. Other projects include an Aloft Hotel being built on Le Jeune Road and 33 Alhambra, a proposed 16-story residential tower that would take up most of a city block.
“When I started purchasing land in Coral Gables four years ago, there was nothing moving in the city,” Shojaee said. “There was no new construction. Today, it is very difficult to find a property. We got in early.”
With developers Terra Group and the Related Group partnering to create Park Grove, a three-tower luxury condo project, and Terra also building the 90-unit Grove at Grand Bay, Coconut Grove is poised for a “wonderful comeback,” said W. Allen Morris, head of Allen Morris Co.
“What Terra is doing is going to take the Grove into a whole new paradigm shift,” Morris said in an interview. “It is only going to get better and better.”
Investors certainly seem to think so. In March, an entity controlled by famed Miami architect Bernardo Fort-Brescia renovated the Engle Building at the corner of McFarlane Road and Main Highway and announced a roster of new tenants including Harry’s Pizzeria, Panther Coffee and Clyde Butcher gallery. A month later, a group of Latin American buyers plunked down $2 million (10 times the last sales price) for a 10,502-square-foot commercial property in the West Grove.
And in May, a partnership between Maryland-based Federal Realty Investment Trust, Grass River Property and the Comras Co. bought the Cocowalk shopping complex in a deal valued at $87.5 million and unveiled plans to redevelop the center and include a new tenant mix.
May 4, 2016 | The Real Deal
Miami-Dade is an international hotspot. About 55 percent of the county’s population is foreign-born and it was foreign investors who reenergized Miami’s real estate market following the fall of Lehman Brothers and the ensuing financial crisis.
Yet despite the area’s global appeal, most developers have been content until recently with retaining local architects to design their buildings.
An increasing number of private developers are looking all over the world for architectural superstars to design their products. Rodolphe el-Khoury, dean of the University of Miami School of Architecture, said local developers are casting a “wide net” for acclaimed architects. The hunt is also a “recent phenomenon,” which started taking place in earnest within the last three years, he added.
“A lot of developers now see a value in having one of those big name architects designing their building,” el-Khoury told The Real Deal.
A lot of that value is promotional. But not all of it. “You can say that this is just a fad and it’s all about marketing and branding,” el-Khoury said, “but that is a limited, cynical view. It is really about delivering a better product.”
David Martin, president of the development firm Terra Group, said he appreciates the knowledge that renowned foreign-born architects bring to a project. “I learned how to be a better developer,” Martin said. “That’s why we work with some of these amazing people and why we want to bring them to Miami to learn our city and our ecosystem.”
Below, meet some of the architects from abroad who have recently entered Miami’s market.
In the course of his 51-year career in architecture, Italian architect Renzo Piano has won several accolades for his work, including the Pritzker Architecture Prize, which is basically the Pulitzer Prize for architecture.
Piano’s firm, the Renzo Piano Building Workshop, has designed more than 120 projects across the planet, including the Menil Collection in Houston, the Tjibaou Cultural Center in New Caledonia, the Kansai International Airport Terminal in Osaka, London Bridge Tower (the Shard) in London and the new Whitney Museum in New York.
Now Piano, 78, has finished plans for his first condo project in Miami.
“He is just an amazing gentleman,” said Martin. “He’s someone who has accomplished so much.”
Martin said Piano was the perfect man to design Eighty Seven Park, a future 233-foot-tall oceanfront luxury condominium tower in Miami Beach at 8701 Collins Avenue, where units are being marketed for as high as $20 million.
“Renzo has worked all over Europe building these amazing museums and structures,” Martin said. “And what I found in every project he did is that it’s connected to nature.”
That was one of the reasons Martin sought Piano to build a “simple and elegant” building that would match the green natural surroundings that can be found in nearby North Shore Open Space Park, as well as the development’s own two-acre private park. “It was truly an honor to work with him.” Martin said.
Thomas Juul-Hansen, 46, was born in Copenhagen and journeyed to Miami at the age of 18, soon after graduating high school in Denmark.
“It was supposed to be a short period of time,” Juul-Hansen, who ended up staying for nearly six years, told TRD. “I ended up liking this country a lot more than Denmark,” he said.
It was at the University of Miami where Juul-Hansen got his undergraduate degree in architecture. He went on to get his master’s degree in architecture at Harvard and wandered the States for a while, before landing a job at Richard Meier and Partners in New York. He later set up his own practice in the Big Apple, designing condos for billionaires.
His first design project in South Florida is Three Hundred Collins, a 19-unit South Beach boutique condo that’s being developed by Jason Halpern, the founder and managing partner of JMH Development.
“It’s always interesting to try and decipher what the DNA is for the site you’re working at,” Juul-Hansen said. “We were trying to figure out what Miami Beach is all about, what the architecture of Miami Beach is all about, and then find our own interpretation.”
What he came up with was a building with deep balconies that are big enough to create an outdoor living room and a 75-foot long private rooftop pool. Juul-Hansen plans to collaborate with Halpern again for a future condo project in Surfside.
“Miami is all about the outdoors” he said. “We would like to do more projects here, especially in the winter time.”
Ricardo Bofill, a Spanish architect who founded Taller de Arquitectura in 1963, has designed government buildings, theaters, airports, train stations, retail centers, hotels, apartment complexes, condominiums and office towers.
Those projects can be seen all over the world, including in Spain, Sweden, Kazakhstan, Saudi Arabia, Abu Dhabi, Iraq, Israel, Lebanon, China and Japan and in countries in South America and states in the U.S., too.
But in South Florida, Bofill’s contribution to date has been limited to designing a waterfront mansion for Mexican singer Paulina Rubio.
That’s about to change. Camilo Miguel, Jr., the chief executive officer of Mast Capital, retained Bofill to create 3900 Alton Road, an eight-story luxury condo development in Miami Beach set to break ground in 2017.
Miguel told TRD in an email exchange that he obtained Bofill’s architectural services because “it was important to have someone whose talents aligned with our vision of elegant simplicity while also integrating the highest quality.”
The 76-year-old architect’s reputation doesn’t hurt either. “The arrival of an architect like Ricardo Bofill signifies how dynamic and exciting the South Florida market has become,” Miguel noted.
Bofill said his design for 3900 Alton Road was inspired by water.
“When first visiting the site, I immediately thought of the surrounding water and I imagined a transparent building, a fluid floating weightless object,” the architect told TRD. “The challenge was to make a contemporary yet classical design.”
The result is a layer L-shaped building with a “glass-skin, connecting streams where energy and space flow,” Bofill said. “Gardens are introduced to create an ecological scheme that not only makes the building more sustainable but allows the building to become alive.”
Piero Lissoni always wanted to work in metropolitan Miami. He just never had the chance until recently. According to the 60-year-old Italian architect, as recently as 10 years ago most private projects were restricted to South Florida-based architects.
“Now a lot of architects are starting to work in Miami,” Lissoni told TRD. “They’re designing new museums, new theaters, new public spaces, new schools and, of course, new homes.”
For the last 30 years, Lissoni and his Milan-based firm, Lissoni Associati, has designed hotels, apartments, offices, showrooms, houses and even yachts all over the globe. Lissoni’s entry into South Florida’s real estate market was via Lionheart Capital. In 2012, the Miami-based real estate development firm hired him to design the Ritz-Carlton Residences Miami Beach by Surprise Lake. His task: help convert the former Miami Heart Institute into a 111-unit luxury condo complex.
It was a long process, one that is scheduled to finally end in late 2016. The challenging job earned Lissoni several admirers and, more importantly, additional assignments. Among those jobs is the 28-story Oceana Bal Harbour and the 53-story ONE Paraiso in Miami’s Edgewater. Both projects are due for completion in 2017.
Isay Weinfeld, 64, knows how to create aesthetic hideouts in dense urban environments, according to Josh Weissenstein, a director at New York-based HFZ Capital Group. That is one of the main reasons HFZ hired the Brazilian architect to design the transformation of South Beach’s Shore Club into the first Fasano-branded project in the U.S. and, incidentally, Weinfeld’s first project in South Florida.
“His appreciation for the harmonious relationship between indoor and outdoor living pairs perfectly with our vision for Fasano Miami Beach,” Weissenstein told TRD by email. That vision, as described by Weissenstein, was the creation of a three-acre “oasis” for 67 condo units and 85 hotel rooms.
It helped that Weinfeld’s extensive portfolio includes designing the flagship Fasano Hotel in São Paulo, the Fasano Las Piedras “hospitality complex” in Uruguay and the Fasano-branded Fazenda Boa Vista residential resort in Porto Feliz, Brazil.
“Isay’s rich history with the Fasano brand fuels his excitement for bringing the brand to the U.S. with us in Miami Beach,” Weissenstein noted.
When you build new projects along the historic Collins Avenue in Miami Beach’s Mid-Beach neighborhood, you have to make sure they fit within the corridor’s dynamic architectural tapestry, Brandon Haw said.
The 55-year-old architect from London compared such a task to arranging a chess board with black and white pieces. While the pieces have different shapes and functions, Haw noted, you can’t just place a red chess piece in the middle of the board.
Haw spent the last 26 years at Foster + Partners, an innovative architecture firm led by the renowned British architect Norman Foster. As a senior partner, Haw supervised the designing of Hearst Tower in New York, HSBC’s United Kingdom headquarters in London and the Commerzbank Headquarters in Frankfurt.
In 2013, Foster put Haw in charge of designing the 18-story Faena House in Miami Beach, where residences were reportedly fetching an average price of $3,130 a square foot as of February.
In 2014, Haw left Foster + Partners to form his own New York-based firm, Brandon Haw Architecture. Soon afterward, Argentine developer Alan Faena retained Haw to build Faena Versailles Contemporary, a 16-story condo tower just a block away from Faena House in Miami Beach, with views of the ocean from aerodynamic balconies designed to generate less wind pressure.
Haw said he’s talking to “a small number of people” to build additional projects elsewhere in South Florida and that he’s particularly interested in boutique offices or institutional buildings.
“It’s not all about high-end residential,” he said. “A city environment is made up of many different components.”
March 7, 2017 | The Real Deal
$6 million renovation of Miami Beach park to be funded by Miami’s Terra Group
March 07, 2017 06:00PM
By James Teeple
Read article at: TheRealDeal.com
North Shore Open Space Park, the nearly 28-acre natural oasis that stretches from 78th Street to 87th Terrace in Miami Beach, is about to get a complete makeover.
The park, known for its dense vegetation, is a popular destination for weekend visitors from the mainland who like the generally uncrowded beach area that runs along the park, and North Beach residents who enjoy running in the park and who make extensive use of its dog park.
The Miami Beach Design Review Board on Tuesday reviewed plans that will transform the park, by adding paved walkways and more open vegetation that allow for greater visibility, as well as a paved beach walk that will make it possible to rollerblade or bike from 87th Terrace to South Pointe Park in South Beach.
The plan was presented to the board by Calvin, Giordano & Associates and WEST 8 Urban Design & Landscaping Architecture, which also designed the Miami Beach Soundscape Park. West 8 is also working on the project design for Eighty Seven Park, a planned luxury condominium developed by Terra Group on the site of the old Howard Johnson Dezerland Hotel, just to the north of the park. Terra President David Martin bought the site for $65 million in 2013 and agreed to fund $10 million in improvements for North Beach, $6 million of which has been designated for the redesign of North Shore Open Space Park.
New plans for the park call for adding two entranceways to the current four, and for enhancing the entranceways with sculptured metal gates. The plans also call for extensive buffering of vegetation, which now mostly grows wild. Gianno Feoli, project manager for North Shore Park at Calvin, Giordarno & Associates, told the board that while extensive trimming and pruning of vegetation will take place when the new park is finished, there will actually be 4,040 trees there, 217 more than what the park currently has.
Feoli told The Real Deal the “big idea” behind the park’s re-design “is to celebrate the spectacular botanic quality that the park has and that is something that has permeated every aspect of the design.”
While most North Beach residents are supportive of the park’s re-design, Paula King, who spoke on behalf of several North Beach neighborhood associations, said many residents oppose current fencing around the park and don’t like the new fencing designs. She said many neighbors also want enhanced lighting for the park. Feoli said in his discussions with neighborhood residents many expressed concerns about the removal of shade trees and safety. He also said Miami Beach police have said they want a “physical boundary” around the park so they can enforce trespassing statutes. Several board members also said that changing the lighting would conflict with environmental regulations that facilitate the passage of sea turtles through the park. Board members approved the design submissions, but asked for a re-hearing on the fencing and lighting issues as well as on where the park’s playground should be placed.
March 21, 2017 | The Real Deal
March 21, 2017 06:00PM
By Katherine Kallergis
READ ON: TheRealDeal.com
Terra Group and the Related Group’s Park Grove condo development has topped off at 80 percent presold, developer David Martin said on a construction tour of the property.
Park Grove, a 297-unit three-tower complex at 2701 South Bayshore Drive, will also house a 3,500-square-foot restaurant by Michael Schwartz on the ground floor of the project, which includes One Park Grove, Two Park Grove and the Club Residences. The latter two buildings will be completed by the beginning of next year, and the developers plan to break ground on One Park Grove next year, according to a spokesperson.
Schwartz’s restaurant, which will mark his second in Coconut Grove after Harry’s Pizzeria, is slated to open in about a year, the restaurateur said. New York-based Meyer Davis is designing the space, a casual restaurant that incorporates natural materials like concrete and wood into its design, Will Meyer said. “The design is very organic, Bohemian, welcoming. Everything opens out onto the park,” he said. “It’s the heart of the neighborhood.”
Meyer Davis is also designing Schwartz’s eatery at Related’s Paraiso Beach Club in Edgewater, which is expected to open in the fall.
Prices at Park Grove range from $1 million to $14 million. Buyers hail from the Northeast, South America and from Miami, Martin said – a similar profile to buyers at his Grove at Grand Bay project, which was delivered in August. Healthcare billionaire Mike Fernandez and race car driver Emerson Fittipaldi put contracts on units at the project.
Terra and Related paid $55 million for the 5.2-acre site in 2013, which included the Coconut Grove Bank headquarters. The bank announced this week that it had moved into its new headquarters, a 30,000-square-foot building on the corner of the same lot.
The developers secured a total of $174 million in construction financing for Park Grove between 2013 and 2015. Mack Real Estate Group and Regions Bank are the lenders. OMA/Rem Koolhaas is the architect, and the project will also feature a 2-acre sculpture park by Enea Landscape Architecture.
Terra also just released plans to convert a nearby parking garage into a mixed-use retail building.
Coconut Grove has quickly emerged as a commercial and residential hotspot over the past two years. Tenants like Büro, Panther Coffee and Schwartz’s Harry’s Pizzeria opened locations in the walkable neighborhood, which is centered around CocoWalk, a once-popular outdoor mall that will be redesigned as a mixed-use center with an open plaza and new office space.
July 5, 2017 | The Real Deal
READ ON: www.therealdeal.com
Terra Group and Mayfair Real Estate Advisors have closed on a $32.26 million construction loan for their 78,0000-square-foot, mixed-use office building in Coconut Grove called Mary Street. Property records show Terra and Mayfair took out the mortgage from BB&T Bank. Chris Dekker is marketing and leasing the office component. The retail space will front Mary, Oak and Rice streets. The soon-to-come Class A office and retail complex at 2860 Oak Avenue was once a 402-space parking garage. Records show Terra paid $16 million for the site in January of last year from the Miami Parking Authority. Plans for Mary Street’s redevelopment include three floors of office space with 18,000 square feet of retail space, according to a press release. Touzet Studio is designing the project, which will have retail on the ground floor and above ground public and office parking, according to the release. Touzet also designed the new Nike and Apple stores on Lincoln Road, and the renovations of the Delano Hotel and the Raleigh Hotel in Miami Beach. The building’s amenities will include 24-hour security, covered valet and drop-off, elevators with direct office access, electric car charging stations and bicycle stations. Construction is planned to begin in August with completion slated for late 2018, according to the release. Terra, led by David Martin, is busy in the Grove. The firm delivered Grove at Grand Bay, a 98-unit twin-tower project designed by starchitect Bjarke Ingels, in August, and is completing Park Grove with the Related Group. – Amanda Rabines
September 1, 2017 | The Real Deal
September 01, 2017
READ on www.therealdeal.com
Terra Group and its partners just took out $63.8 million in construction financing for Eighty Seven Park, boosting their mortgage to $155 million.
Property records show Singapore’s United Overseas Bank Limited is providing the financing to 8701 Collins Development LLC. It adds to the previous $91.2 million the developer secured with the Asian bank.
Eighty Seven Park, designed by Renzo Piano, is being developed by Terra in partnership with Bizzi & Partners Development, Great Eagle Holdings and Vector Group subsidiary New Valley. The developers plan to begin vertical construction soon, but did not provide a date. It was set to go vertical more than a year ago as the condo market slowdown was settling in.
Douglas Elliman is leading sales for the 70-unit, 20-story oceanfront tower planned for 8701 Collins Avenue in North Beach. It’s more than 60 percent sold with more than $250 million in total sales volume, according to a press release.
Prices range from $1.6 million to $15.2 million and units from 1,400 square feet to more than 7,000 square feet.
The tower will feature an underground parking garage, a gym/spa and a rooftop terrace. Rena Dumas Architecture Intérieure and WEST 8 Urban Design & Landscape Architecture, the latter of which designed the Miami Beach Soundscape Park, are also working on the project design. Eighty Seven Park will also be surrounded by a forest of 200 trees that will also infiltrate the ground floor lobby.
Amenities will include access to an outdoor juice bar, salon and full-time botanist.
Terra purchased the property, which was the site of the former Howard Johnson Dezerland Hotel, from Sunny Isles Beach developer Michael Dezer for $65 million in 2013. That hotel, which was originally known as the Biltmore Terrace, was built in the early 1950s and demolished in 2015. Its lobby was designed by famed architect Morris Lapidus.
September 21, 2017 | The Real Deal
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In pitching new retailers on why they need to open a location at Downtown Dadeland, Continental Real Estate Companies’ (CREC) Vice President Rafael Romero presents a flyer featuring photos of the well-known local chefs behind four restaurants that have opened in the past 18 months at the retail and residential development in Kendall.
Romero tells prospective tenants about how restaurants like Barley, an American Brasserie; Harry’s Pizzeria; Pubbelly Sushi; and Ghee Indian Kitchen are reshaping the 7.5-acre Downtown Dadeland into a destination that will draw in affluent consumers from throughout South Florida as well as those living in the immediate area, where the estimated median household income is $137,237.
“Those establishments are part of a concentrated effort to create a restaurant row that has completely revitalized Downtown Dadeland,” Romero said. “To get them, we went to every chef event we could find in South Florida. If there was a croquet contest and they were there, we were there, too.”
At a time when many brick-and-mortar brands continue downsizing or disappearing altogether from the American retail landscape, South Florida commercial brokers are courting tenants with sales pitches that focus on the region’s growing population and changing demographics.
The tri-county region added about 482,000 residents between 2010 and 2016, according to a March 2017 report by Florida International University analyzing recent U.S. Census figures. That growth has largely been fueled by immigrants — the university’s report found that net international migration to the region increased 397 percent in that period. It remains to be seen how President Trump’s immigration policies could affect this trend.
To land some tenants, the brokers are working with landlords to revamp existing properties and configure new developments into experiential destinations. They’re also giving start-up businesses and established brands short-term leases to test out empty storefronts. And some good old-fashioned networking helps to land deals, too.
“Cold-calling and being a voice on the phone is not enough,” Romero said. “You need to get in front of them, show them pictures and explain the vision to get them to buy in. It is more than just promoting a building. You have to create a scene for them.”
To be sure, retail real estate is performing better in South Florid than in other parts of the country. Colliers International’s second-quarter retail report showed Miami-Dade’s vacancy rate was just 3.8 percent, Broward’s was 3.7 percent, and Palm Beach’s was 4.5 percent. In comparison, the national retail vacancy rate rose to 10 percent in the same period, according to real estate research firm Reis Inc. And a recent report from online real estate marketplace Ten-X placed Miami and Fort Lauderdale in the first two slots of its top “Buy” markets for retail investors, forecasting that the metropolitan areas will experience a combined 14 percent growth in net operating income by year’s end.
However, local asking rents are growing at a slower pace than the 3 percent national rate, per JLL’s 2017 spring retail report for South Florida. In the second quarter of 2017, asking rents only ticked up 1 percent in Miami-Dade, 2 percent in Broward and 2.7 percent in Palm Beach. The brokerage also placed Miami, Fort Lauderdale and Palm Beach among 15 cities that have reached the peak of the market cycle.
A more anecdotal sign that South Florida is not immune to the shrinking base of department, apparel and accessory stores is the fact that brokers are concentrating more on fitness tenants like indoor cycling studios and fighting gyms as well as entertainment providers such as bowling alleys and luxury movie theaters .
“There is not much deal flow for traditional apparel and trinket sellers,” Romero said. “These other categories have stepped in and given rise to the lifestyle center.”
Robert Granda, commercial brokerage Franklin Street’s South Florida retail director, said he is advising landlords he works with to target start-up business owners doing old school concepts like luxury barbershops and cigar bars.
“It could be a barber from Los Angeles or New York who is looking to open his first location,” Granda said. “Typically, landlords would like to see a track record. I will tell them men’s grooming and barbershops are hot tenants because they provide services that are driven by the experience of being there.”
To attract a retailer, some landlords are willing to offer short-term leases for pop-up stores, says Rod Castan, president of leasing and management for Courtelis Company. The property owner gets to temporarily fill an empty space while the tenant gets to test out a storefront, he explained.
“You will see landlords willing to take chances on incubating a retail concept,” Castan said. “That is a method we have used in Florida’s softer markets.”
For instance, House 2 Home Goods — a tenant at the Shops of Surfside in Cape Coral — opened under a three-month lease in February but in May converted to a longer term agreement, Castan said. In Miami, French macaron maker Ladurée opened a permanent spot in the Design District in June 2016 after testing out a two-month pop-up inside the Chrome Hearts boutique at 4025 Northeast Second Avenue during 2015’s Art Basel.
In other instances, the national retail slowdown means Castan’s team has to make more cold calls and do more face-to-face meetings with potential tenants. “We are rolling up our sleeves and doing old-school leasing … Our agents are on the road almost every day visiting other shopping center and trade areas looking for potential tenants.”
The promise of a development that has a social center is what gets many retailers to sign on the dotted line.
In Pembroke Pines, Courtelis has been successful in preleasing 75 percent of the 300,000-square-foot retail, entertainment and restaurant space at Pines City Center. Developed by Terra Group, the 47-acre mixed-use development is being built in two phases, with the first scheduled for completion by 2018. Major tenant signings include Publix, Carl’s Patio, Cooper’s Hawk, BurgerFi and Outback Steakhouse.
“These types of projects tend to have more attractive common areas and are better gathering places from a development standpoint compared to traditional shopping centers,” Castan said. “Bringing in ethnic, fast casual and healthy dining concepts is another way to make the projects more successful.”
Castan said he and his team show potential tenants renderings of Pines City Center to point out the features that will draw people in. “The center has transitional plazas between buildings and attractive rotundas, and the parking areas are planned to be more pedestrian-friendly,” he says. “These areas create gathering spaces where we can have pop-ups, art exhibits, music and other features that will make the shopping center more interesting to visit.”
Another large-scale mixed-use development that is following a similar retail recruitment strategy is Metropica, which has leased about half of its 485,000 square feet of retail. In all, the 4 million-square-foot development in Sunrise will have more than 2,200 residential units in addition to retail, dining and entertainment space, a wellness and fitness facility, a park and other recreational amenities.
“In the past, landlords would need a department store or a big box retailer as an anchor tenant,” says Sandie Witmer, in-house director of retail leasing for Metropica. “Today, the environment you create is the anchor.”
Witmer’s leasing team has been working on a curated restaurant collection as one of Metropica’s “environment anchor” concepts. “Retailers now look at the restaurant mix to see if it attracts different types of clientele,” Witmer says. “If they think someone eating there could be a customer, they want to be there, too.”
Using this strategy, the $1.5 billion megadevelopment has signed popular eateries like Harry’s Pizzeria, Bulla Gastrobar, Shake Shack and Fogo de Chao to go alongside entertainment tenants iPic Theaters and Kings Bowl and retailers such as Anthropologie and Kendra Scott Jewelry.
So far, retail leasing in South Florida remains strong enough and vacancy rates are low enough that brokers and landlords don’t need to offer “crazy concessions,” said CREC’s Romero.
“We’ve been in the single digits for a very long time,” he said. “Retail is very much alive.”