July 24, 2015 | South Florida Business Journal
Terra Group’s Eighty Seven Park condo project, on the north end of Miami Beach, exemplifies what the developer is all about: bold design by a star architect, luxury over density, and incorporating a building with its environment.
The Miami-based developer and partners Bizzi & Partners Development and New Valley LLC hired Pritzker Prize-Winning architect Renzo Piano to design the 68-unit, 18-story condominium at 8701 Collins Ave. The Italian’s work includes the Morgan Library in New York City, the NEMO science museum in Amsterdam, the expansion of the Art Institute of Chicago, the California Academy of Sciences in San Francisco, the New York Times Building and the Shard in London. This will be his first project in Florida.
The site is on the ocean and the north side of North Shore Open Space Park, which Terra Group President David Martin considers one of the project’s most attractive features.
“The views are not only of the ocean, but of the nature.” he said.
Piano designed Eighty Seven Park with suspended decks to take advantage of both viewpoints and not to block the public view of the ocean.
Terra Group bought a 230-room hotel there and could have added an additional 100 units. Instead, it opted for a lower density, but with larger spaces, upscale amenities and service that will be modeled after a hotel, Martin said.
“North Beach has a very bohemian atmosphere,” Martin said. “It has great juice bars, great restaurants. It has the feeling Miami Beach had 10 or 20 years ago, and it hasn’t been commercialized. When we bought the property, we were considering building a high-density hotel or condo. We decided to go in line with our philosophy of low density.”
The developer also contributed $10.5 million to the city for improvements at the neighboring park, including a beach walk and public access to the ocean from 87th Street. Residents of Eighty Seven Park will have a private 2-acre park and a botanical garden.
Martin said he’s close to launching sales for Eighty Seven Park after getting strong interest from potential buyers. Douglas Elliman will be broker. Units will average 2,500 square feet. Prices haven’t been determined.
Terra Group has a handful of projects moving forward, all aimed at the luxury market. The Grove at Grand Bay in Coconut Grove is sold out and will be delivered in the fourth quarter, while the neighboring Park Grove – a joint venture with the related Group – is under construction, Martin said. Miami Beach’s Glass is a month from completion and sold out. Atlantic 15 in Sunny Isles Beach is almost finished. The modern Doral single family home community will begin closings in August, while the Botaniko neighborhood in Weston should deliver its first homes in the first half of 2016. Its Doral Commons retail center should open in the fourth quarter.
April 19, 2017 | South Florida Business Journal
Apr 19, 2017, 12:45pm EDT
NDUSTRIES & TAGS
By: Brian Bandell
READ ON: bizjournals.com
Terra Group announced new tenants for its retail center at Pembroke Pines City Center, which is currently under construction.
The Miami-based developer previously announced that Publix Super Markets signed a 45,600-square-foot lease at the project. It now says the 200,000-square-foot first phase is 70 percent pre-leased, with additional tenants including Carl’s Patio, Cooper’s Hawk, BurgerFi, Smoothie King, PizzaRev, Bento Cafe and the Halal Guys. Outback Steakhouse and City Mattress will occupy stand-alone buildings on the outparcel area.
“The vast majority of residential product in Broward County is located in the suburbs, and the increasing population and rising income levels in Pembroke Pines are driving retail demand and expansion,” said David Martin, president Terra. “Our mission at Terra has always been to develop projects that improve communities, and we’re doing just that with Pines City Center by meeting growing retail demand with a development that caters to residents’ everyday needs.”
The first phase of the retail project at the southwest corner of Pines Boulevard and Palm Avenue should be completed in late 2018. Terra Group acquired the 17.2-acre site for $15.94 million in 2016 from the City of Pembroke Pines.
The developer has a second parcel in City Center under contract with the city and holds approvals for 100,000 square feet of commercial space plus 385 apartments.
Recently, the city completed a $60 million civic building at City Center including a 3,500-seat performing arts center and conference hall, an outdoor plaza, a 10,000-square-foot art gallery and a new city hall.
August 4, 2017 | South Florida Business Journal
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Congratulations to our Director: Adam Adler, for being featured in South Florida Business Journal's "40 Under 40".
Education: B.A in economics, Cornell University; MBA and Masters in finance, Northeastern University
Birthplace: Toronto, Ontario Canada
Current town/city: Pembroke Pines, Florida
First job: Working in a bindery at a printing company, while in high school. My first job as a professional was working on a restructuring team at Burger King.
Ultimate career goal: To create impactful and meaningful projects.
Hot topic in my field: Experiential Retail
Greatest business achievement: I am most proud of facilitating projects that enhance their surrounding communities.
Civic/charitable organization involvement: Big Brothers Big Sisters
Biggest mentor: Sandra Conwiser
Best career advice received: Remain true to yourself.
Fantasy job: I’m working in the industry I’ve always wanted to be in.
Guilty pleasure: Talenti Sea Salt Caramel Gelato
Best stress reliever: Cooking
Favorite book: The Count of Monte Cristo
Favorite website: Bloomberg.com
Favorite local spot: Capital Grille
Favorite vacation spot: Grand Cayman
In a movie, I’d be placed by: Patrick Warburton
I’d most like to have a business lunch with: Henry Kravis
My six-word memoir: Cautious optimism leads to great achievements.
(photos: South Florida Business Journal)
August 21, 2017 | South Florida Business Journal
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Terra Group acquired a strip of retail properties along Coral Way in Miami and plans to redevelop the site with the addition of self-storage.
Coral Way Storage Investments, led by Terra Group co-founder and President David Martin, acquired the property at 2749, 2761, 2769 and 2811 S.W. 22nd Street from Miami-based 2811 Coral Way LLC, managed by Robert A. Eckstein, Edward Schmidt, Josh Rodstein. A source close to the deal said it was for $4.25 million.
Coral Gables-based Venera Finance & Investment provided a loan of $16.82 million to the buyer. The proceeds would be enough to support a significant amount of construction.
The property currently has 13,572 square feet of retail on 26,250 square feet of land. It was developed between 1946 and 1951.
Martin said the deal is an example of Terra Group diversifying its portfolio.
"Coral Way is coming alive as an in-demand residential and commercial corridor that's perfectly situated between Coral Gables, Coconut Grove and Brickell,” Martin said. "We saw the need for a climate controlled self-storage facility that will serve nearby residents and businesses, especially those who have downsized their homes and offices. A series of shops and restaurants at street-level will cater to the Coral Way area's growing daily population.”
A site plan has yet to be approved by the city.
Terra Group is also building condos and an office building in Coconut Grove. Its other projects include a condo on the north side of Miami Beach, homes in Weston, and shopping centers plus apartments in Pembroke Pines.
October 12, 2017 | South Florida Business Journal
By: Brian Bandell
READ ON: www.bizjournals.com
Terra Group acquired a former post office property in Pembroke Pines and obtained a construction loan for a new retail center.
In 2016, the City of Pembroke Pines approved a deal to sell the 27.4-acre site at 16000 Pines Blvd. to Terra Group for $23.5 million in a two-phased purchase. The city had previously acquired the property from the U.S. Post Office for $17.88 million.
The first phase of that deal just closed.
Pembroke Pines sold about 10 acres to 16000 Pines Retail Investments, an affiliate of Miami-based Terra Group, for $11.49 million. The developer obtained a $47.78 million mortgage from Pineland Finance & Investment.
The “lifestyle” center was approved for 115,000 square feet of retail and restaurants. A post office of at least 7,240 square feet must be included in the project. It was designed by Beame Architectural Partnership.
"Our leasing team has seen strong interest among national brands and independent operators, and we look forward to announcing more details in the coming weeks ahead of breaking ground next year,” Terra Group President David Martin said. "Terra's significant investment in Pembroke Pines is a reflection of the community's growing residential population and the high barriers to entry that exist for new commercial development.”
The second phase of the project would have 120 single-family homes.
Meanwhile, Terra Group is building a Publix-anchored retail center of 300,000 square feet at Pines City Center further east on Pines Boulevard and plans to open that in late 2018.
September 1, 2017 | South Florida Business Journal
BY: JOCK FISTICK
READ ON: www.bizjournals.com
The real estate developer, who heads Miami-based development firm Terra, credits hometown pride as a major driver in the region’s ascent as an international hub of both leisure and business.
“One of the secrets for Miami’s success is that anyone from any country in the world can come here and feel like they can make Miami home and grow their business here,” Martin said. “Our residents can say, ‘Hey, I’m from France,’ or ‘I’m Colombian,’ but in the same breath, people also say, ‘I’m from Miami.’ We have a lot of pride in our city.”
Martin knows from experience how being welcomed by a new place can impact someone’s aspirations. His grandparents from both sides of the family immigrated to Miami from Cuba and established businesses here that exist to this day.
Martin’s maternal grandfather started a chain of funeral homes, Bernardo Garcia Funeral Homes, which can be found in four cities across Miami-Dade County, each of them in predominantly Hispanic neighborhoods, such as Hialeah.
On his father’s side, the family business was a cigar company.
For his part, Martin has carried on his family’s legacy in Miami business by founding Terra when he was just 23 years old in 2001 with his father, Pedro Martin.
Together, the two have transformed the firm from a builder of residential projects among growing submarkets, such as Kendall, to a full-service firm with an in-house construction division.
The firm is touted as having been among pioneers of the growing transit-oriented development trend that places apartment and condo towers just steps from mass transit, encouraging residents to eschew car ownership for public transportation.
Terra is also credited with bringing avant-garde design to Coconut Grove, a Miami neighborhood known for its lush greenery and bohemian feel.
The firm’s portfolio includes the Grove at Grand Bay, two luxury towers built on the site of the old Grand Bay Hotel. The condos grabbed Coconut Grove dwellers’ attention in a few ways. For one, units sets a record price for the neighborhood at an average of $1,100 per square foot. From an aesthetics standpoint, the project looks like nothing surrounding it, with each tower spiraling its way 20 stories into the sky.
At its core, however, Terra is pretty traditional, Martin said. The office has a family feel to it, even with a growing staff of more than 100.
“One of the things my father told me when we were starting out is, ‘David, people will work with you and do things for you if they love you or if they fear you. And you don’t wanna lead by fear. Your relationships will be much stronger and deeper on a basis of love,’” Martin said. “When we select people to join us at Terra, they’re with us for more than a decade.”
Editor's Note: This story is part of our cover package highlighting the leaders behind the region's top women-owned and Hispanic-owned companies. These businesses were featured because they ranked high on our lists. Scroll to the bottom of this article to get access to the full list of South Florida's Top Hispanic-Owned Businesses.
October 20, 2017 | South Florida Business Journal
BY: Brian Bandell
READ ON: www.bizjournals.com
After five years of near stagnation, the South Florida office market is finally showing signs it’s rebounding, with several new office buildings opening this year and others in the works.
Growing rents and dwindling office space are fueling construction. Millions of square feet are proposed, mostly in hot submarkets that have drawn multiple projects.
It’s not exactly an office boom, but it’s a plethora of activity compared to the flatlining of office construction that followed the Great Recession.
“Over the last 10 years, we haven’t seen [enough] new office demand for us to be in a position to build new office,” Stiles Corp. President Scott MacLaren said. “Now we have seen supply and demand move to a point that demands [building].”
The growth couldn’t come at a better time, as local companies look for more options to expand, and the new technologically advanced office spaces could help lure new companies to the region.
Construction firms could also use a shot in the arm from these office projects, as residential development has slowed.
Through the first eight months of 2017, residential construction starts in South Florida dipped 29 percent to $3.43 billion, mostly because of a slowdown in the condo market, according to Dodge Data & Analytics. Nonresidential construction starts, which include multiple types of commercial real estate, were up 36 percent to $3.8 billion.
OFFICE VALUES RISE
Office rents are up because, with so little new construction for a long time, vacant space has declined, said David Wigoda, senior VP with CBRE’s Capital Markets group. That gives landlords more leverage.
Over the past three years, many trophy office buildings in South Florida have traded for record prices – a combined $5.08 billion in deals since 2015, according to CBRE. When investors acquire a building, they typically increase rents to justify their purchase price, Wigoda said.
“South Florida has elevated itself to such a global city that our trophy ‘Class A’ one-of-a-kind buildings will continue to trade for these record-high prices,” he said.
The annual net absorption of office space has been steady, not spectacular, yet the higher rents in certain submarkets have made new development attractive, said Tere Blanca, president and CEO of Blanca Commercial Real Estate. She noted that South Florida has recorded consistent job growth in the financial and professional sectors that inhabit office buildings.
“All the metrics show it is the right time to deliver new product that is well-designed and differentiated from other buildings,” Blanca said. “If we don’t have new buildings, how can we attract companies here?”
South Florida had 1.08 million square feet of office space under construction in the second quarter, according to CBRE. Some of those buildings are opening soon.
In downtown Miami, All Aboard Florida is close to receiving a temporary certificate of occupancy on the 96,000-square-foot Three MiamiCentral, and the 196,000-square-foot Two MiamiCentral is already topped off, Blanca said. The buildings are part of the development around the Brightline passenger rail station that will include apartments, retail and restaurants. Blanca said the two offices are 55 to 60 percent leased.
The lure of working near public transportation and a food hall were big selling points, Blanca said.
With a view of Miami International Airport, the 250,000-square-foot 800 Waterford office building opened this summer and is 25 percent leased, said Brad Simpkins, senior director of Southeast investments at TH Real Estate, which developed the building with Allianz Real Estate of America. They already own most of the Waterford office park, so the developers knew tenants wanted to expand.
Simpkins said 800 Waterford is on pace to be fully stabilized, with enough occupancy to support positive cash flow, within 12 months of opening.
Preleasing has been slower in Palm Beach Gardens, where the speculative 63,500-square-foot Gardens Innovation Center was recently completed. Broker Neil Merin, chairman of NAI/Merin Hunter Codman, said the building has no leases, but now that companies can tour the finished space, he’s seen more interest.
“Unless people can see something, they won’t lease it,” Merin said.
Merin’s client self-funded Gardens Innovation Center without waiting for preleases, but many developers aren’t willing to put so much of their money on the line, and prefer to combine equity with a construction loan. If a developer can’t obtain a solid percentage of preleases, obtaining construction financing is nearly impossible.
Andrew Easton, VP of Easton Group, said his firm is seeking to prelease about half of the 160,000-square-foot office building it has the rights to construct at Northwest 102nd Avenue and Northwest 19th Street in Doral before moving forward. After about a year of looking, still no deals.
“There are not a lot of 80,000-square-foot tenants in South Florida,” Easton said. “The average tenant is 3,500 to 5,000 square feet. That’s why this is still a piece of dirt.”
COMPETITION COULD HELP TENANTS
The office development is coming at a time when many tenants up for lease renewal are facing significantly higher rents.
During the bottom of the market in 2012, landlords were cutting favorable deals for tenants to keep space occupied, but many of those leases are expiring, and those same tenants will face “sticker shock” as their rates increase by double digits, Merin said. Many tenants will seek ways to save on costs, such as having a more efficient layout to reduce the size of their leased space.
Matthew W. Goodman, a managing director with JLL who specializes in tenant representation, said it’s very expensive for tenants to relocate their offices because of buildout costs, so that might prevent them from leaving. In order to lure new tenants, office developers would have to offer generous tenant improvements budgets, and existing buildings might do the same to retain tenants, he said.
“The competition is always good,” Wigoda said. “When new buildings enter a market, if a landlord doesn’t want to lose tenants, it will have to reinvest in its buildings.”
HOT SPOTS FOR OFFICE
Certain submarkets have attracted major office proposals, and some of them have already broken ground. Here’s a look at the hottest areas:
· Coconut Grove: The 78,000-square-foot Mary Street office building and a 44,000-square-foot office at 3484 Main Highway have already broken ground. Approvals were obtained for 73,000 square feet at One CocoWalk and 68,000 square feet in 27@Lincoln.
Tom Roth, a partner with Grass River Partners, which co-owns CocoWalk, said a new office there would create more daytime traffic for shops and restaurants. With vacancy rates of near 1 percent for Class A office space in Coconut Grove, Roth expects to generate strong rents.
The One CocoWalk office should start construction in the first quarter of 2018 and be completed in mid-2019. Roth said he’s in serious negotiations with four large tenants that would mostly fill up the building.
“If you add up the four buildings [proposed in the neighborhood], it’s not even close to the size of one building on Brickell,” Roth said.
Terra Group President David Martin, who is also building several condos in Coconut Grove, said his Mary Street office building will allow residents to work close to home. His project is 40 to 50 percent leased.
· Downtown Miami: Global developer Hines struck a deal with Miami Worldcenter to build a 45-story office tower, which would be the largest office tower completed downtown since 2010.
Michael Harrison, senior managing director with Hines, said the building would have 500,000 to 600,000 square feet of office, with retail on the ground floor and maybe a multifamily component. It would break ground around the third quarter of 2018 and open in 2021.
Hines selected the Miami Worldcenter site because it had great access to both highway and public transportation, proximity to museums and entertainment venues, and a complement of homes, retail and restaurants, Harrison said.
So far, Harrison said he’s received requests for proposals for tenants of 50,000, 75,000 and 120,000 square feet.
· Wynwood: Construction started on Wynwood Annex, with 47,000 square feet of office, while approvals were obtained for 79,548 square feet at Cube Wynwood, 26,600 square feet at W House, and 23,618 square feet at DS Wynwood. The Gateway office building, between Wynwood and Midtown, would total 200,000 square feet.
JLL's Goodman said the new projects in Wynwood are asking for rates comparable to the most expensive buildings in downtown Miami – over $50 a square foot. Tenants are taking a wait-and-see attitude on Wynwood because it’s a new market for Class A office, he said.
“They have to attract tenants that don’t typically work in that area,” Goodman said.
· Coral Gables: The 49,379-square-foot 2020 Salzedo office was recently completed, and 57,700 square feet of office at Giralda Place is nearly done. The big impact could come from the Plaza at Coral Gables, which is seeking a redesign of the mixed-use project with 474,000 square feet of office.
Blanca, who represents Plaza developer Agave Ponce, said she’s not actively leasing for it now, but the 8 percent vacancy rate for Coral Gables and the rents of over $41 a square foot make her confident in the project.
· Fort Lauderdale: Stiles Corp. received approval to build 355,000 square feet of office at 225 E. Las Olas Blvd. on a site leased from Broward College – the city’s first major new office building in nearly 10 years.
MacLaren said about 500,000 square feet of space has been filled in downtown Fort Lauderdale over the past five years. The rents of $50 a square foot are enough to financially justify development, and an influx of thousands of residential units in downtown has better positioned the area to attract a good workforce, he said.
MacLaren is confident Stiles can sign enough preleases to build in early 2018.
Comreal Fort Lauderdale broker Tim Talbot is concerned that new development could take tenants from existing buildings and leave large vacancies. The trend he’s seen is downsizing by local tenants, including several major law firms.
“A new building would lead to higher vacancies and might bring the values down,” Talbot said.
· West Palm Beach: Approvals have been granted to mixed-use projects with office space of 200,000 square feet for One West Palm, 308,000 square feet for Transit Village and 121,000 square feet at the Cosmopolitan.
Billionaire Jeff Greene said he would personally fund One West Palm. The two 30-story towers, which would also have apartments, a hotel and a health club, are waiting on height approval from the FAA.
Greene said he hasn’t started leasing yet because West Palm Beach isn’t a preleasing market.
“Filling 200,000 square feet shouldn’t be that hard,” Greene said. “We are competing with a bunch of old buildings, most from the 1980s. The only new one is CityPlace tower, and it’s only 15 stories tall and it’s fully leased.”
Not everyone thinks conditions are ripe for a new office tower in the city. Most tenants aren’t ready to pay the high rents needed to justify a new office building in downtown West Palm Beach, Merin said.
November 2, 2017 | South Florida Business Journal
By Brian Bandell – Senior Reporter, South Florida Business Journal
READ ON: www.bizjournals.com/southflorida
Terra has launched the second phase of its retail project at Pines City Center. The development will be anchored by Publix Super Markets.
The Miami-based developer secured a $28 million construction loan from Oakland Finance and Investment to build 100,000 square feet of retail at the southwest corner of Pines Boulevard and Palm Avenue in Pembroke Pines. Terra paid $8.5 million to the city to acquire land for the second phase.
The first phase, with 200,000 square feet, broke ground in fall 2016 with a $54.3 million construction loan. Terra purchased the land from the City of Pembroke Pines, which encouraged the development of a mixed-use project in the City Center area.
"More than 65 percent of the total leasable space at Pines City Center has been pre-leased by tenants including Publix, Hobby Lobby, West Marine, Carl’s Patio, Cooper’s Hawk, Outback Steakhouse and BurgerFi,” Terra President David Martin said. "Construction of both retail phases is expected to be completed in late 2018. Once finished, Pines City Center will meet rising demand for lifestyle-oriented retail in West Broward’s growing suburban market.”
Courtelis Co. is the leasing agent for the shopping center. The Publix will occupy 45,600 square feet.
Terra also has the right to build 385 apartments at City Center.
Recently, the city completed a $60 million civic building at City Center including a 3,500-seat performing arts center and conference hall, an outdoor plaza, a 10,000-square-foot art gallery and a new city hall.
November 25, 2016 | South Florida Business Journal
BY: Nina Lincoff
Read on: www.bizjournals.com/southflorida
While much of Miami and Miami-Dade County can be thought of as new — or relatively new — Coconut Grove is not. It’s one of the oldest, if not the oldest permanent settlement in Miami-Dade, getting its start in the late 1800’s before being annexed by the City of Miami in 1925. And now, more than a century after residents began calling Coconut Grove home, the jungly waterfront enclave is entering its next era as a luxury real estate, retail and cultural hub.
To some extent, the Grove has already seen luxury real estate and restaurant, retail and nightlife hot spots. But a confluence of new developments either set to open or underway, in addition to a high-concentration of local restaurants and the turnover of legacy retail projects to new investors sets the stage for the Grove’s next incarnation.
Miami-based Terra Group is one developer that’s changing the landscape of Coconut Grove. Terra is responsible for the two twisting towers of the Grove at Grand Bay project, which is ready for residents to move in. The Grove at Grand Bay sits on the former Grand Bay Hotel site, a former icon of Grove’s past.
The twisting twins are just down Bayshore Drive from another Terra project, the Park Grove complex which the developer is producing along with the Related Group. The Park Grove condominium project is currently under construction and when complete, will add three high-rises to Coconut Grove’s waterfront.
On the retail side, Coconut Grove’s CocoWalk open-air retail center was acquired last year by Federal Realty Investment Trust in partnership with Grass River Partners and Comras Co. The new owners seek to update CocoWalk and transform the retail center into an integral part of Coconut Grove.
In terms of restaurants, a local outpost of Harry’s Pizzeria from chef/owner Michael Schwartz opened in the Grove, as did the new seafood concept the Spillover from local restaurateur Matt Kuscher.
These join Glass & Vine, a concept led by Miami chef Giorgio Rapicavoli as well as a new concept from Grove marquee Strada, and Ariete, a restaurant from Schwartz alum Michael Beltran. A Panther Coffee also recently opened in Coconut Grove, complementing the two Starbucks locations.
Development is also picking up near Coconut Grove’s gateways. A joint venture between three developers aims to build the Cassa Grove apartment building about a block from the Coconut Grove Metrorail station, and a major mixed-used project near the Douglas Road Metrorail station could be on its way.
Park of the Grove’s appeal is its jungly environment and beautiful architecture, nearby attractions like the Vizcaya Museum & Gardens, the Barnacle Historic State Park and the Kampong National Tropical Botanical Garden play off of the landscape and architecture.
Coconut Grove also has a history as a Bahamanian enclave, and recent efforts have sought to highlight the neighborhood’s diversity. Last year was the opening of the Coconut Grove Village West Visitor Center and the Kroma Gallery.
These are just some of the variety of projects and renovations coming to Coconut Grove. It’s safe to say that in a couple years, the area that Grovites know and love will have a few new neighbors.
Want to check out other hot areas in South Florida See our neighborhood tours of Miami Beach, Delray Beach, Wynwood or Fort Lauderdale's FAT Village.