The Real Deal South Florida April 2015 by The Real Deal

Under-the-radar real estate players

Co-working spaces sprouting

New sources funding projects

Miami’s condo boom heads north

102

Revisiting Miami and the mob

SOUTH FLORIDA MARKET REPORT APRIL 2015

MEIER MAKES MARK IN MIAMI

SPINNING THE CITY

FROM RUSSIA, WITH LESS LOVE

Starchitect on plans for transformation of historic Surf Club

A ranking of SoFla’s top development PDUNHWLQJ ´UPV

Economic conditions worldwide are shifting WKH µRZ RI IRUHLJQ FDSLWDO

P18

P38

P54

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LEVEL

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Ş Sunrise

and sunset swimming pools spa Ş Day cabanas Ş Outdoor pool bar Ş Outdoor sky theater area Ş Hydrotherapy

Ş Indoor,

oceanfront ﬁtness center oceanfront open-air gym Ş Yoga and pilates studio Ş Men’s and ladies’ locker rooms with steam showers and saunas Ş Nail and blow-dry salon Ş Revitalization spa with relaxation lounge Ş Four treatment rooms including a private couple’s suite Ş Outdoor,

THE FEATURES AND SPECIFICATIONS DESCRIBED ABOVE ARE FOR REFERENCE ONLY, AND THE DEVELOPER RESERVES THE RIGHT TO MODIFY, REVISE OR WITHDRAW ANY OR ALL OF THE SAME IN ITS SOLE DISCRETION AND WITHOUT PRIOR NOTICE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE DEVELOPER RESERVES THE RIGHT TO SUBSTITUTE ANY OF THE FOREGOING WITH ITEMS OF SIMILAR OR BETTER VALUE, IN DEVELOPERS OPINION.

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WE ARE PLEDGED TO THE LETTER AND SPIRIT OF THE U.S. POLICY FOR ACHIEVEMENT OF EQUAL HOUSING OPPORTUNITY THROUGHOUT THE NATION. WE ENCOURAGE AND SUPPORT AN AFFIRMATIVE ADVERTISING AND MARKETING PROGRAM IN WHICH THERE ARE NO BARRIERS TO OBTAINING HOUSING BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN. THE SKETCHES, RENDERINGS, PICTURES AND ILLUSTRATIONS ARE PROPOSED ONLY AND THE DEVELOPER RESERVES THE RIGHT TO MODIFY, REVISE OR WITHDRAW ANY OR ALL OF THE SAME AT ITS SOLE DISCRETION WITHOUT NOTICE. THE RENDERINGS ILLUSTRATE AND DEPICT A LIFESTYLE, HOWEVER, AMENTIES, FEATURES AND SPEFICIATIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE. ALL INFORMATION IS DEEMED RELIABLE BUT IS NOT GUARANTEED AND SHOULD BE INDEPENDENTLY VERIFIED. ALL REAL ESTATE ADVERTISED HEREIN IS SUBJECT TO THE US FEDERAL FAIR HOUSING ACT OF 1968 WHICH MAKES IT ILLEGAL TO MAKE OR PUBLISH ANY ADVERTISEMENT THAT INDICATES ANY PREFERENCE, LIMITATION, OR DISCRIMINATION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN. PLEASE CHECK WITH YOUR LOCAL GOVERNMENT AGENCY FOR MORE INFORMATION. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. THIS IS NOT AN OFFER FOR CONTRACT OR SALE IN THE STATES OF NY, NJ OR MASS. MARKETING & BRANDING BY TURNBERRY AND BRIDGER CONWAY

SOUTH FLORIDA MARKET REPORT APRIL 2015

E D I TO R ’ S N OT E

re domestic buyers the new foreigners in South Florida? As The Real Deal’s growing South Florida editorial team examines the residential and commercial markets in MiamiDade, Broward and Palm Beach, it seems to us that our region is at a bit of a pivotal point. Latin American demand for South Florida real estate products has shown some weakening, while money from U.S. investors — from the Northeast in particular — is increasingly flowing into the area, creating less dependence on the traditional foreign feeder markets that helped fuel the resurgence this cycle. As noted in our story on page 88, domestic buyers show somewhat of a preference for the lesspricey areas north of Miami, pushing development in Broward — both residential and mixed-use — to ramp up significantly. We’re looking northward, too, and on April 23, The Real Deal is hosting a Broward County Real Estate Showcase & Forum. See page 97 for more details. Meanwhile, as investment capital from countries south of the border declines, China’s star is rising in Miami. Read our piece on page 58 about a firm dedicated to servicing wealthy Chinese clients. Will you be in Shanghai this fall? We will. Again, more details inside, on page 99. You can also learn about the Nakash family’s burgeoning holdings beyond the Versace mansion, hear what famed architect Richard Meier has on tap for the Surf Club restoration and discover the secrets behind some of South Florida’s most prominent, yet under the radar, real estate players. The issue also includes a look at the big uptick in the commercial markets in Miami-Dade and Palm Beach, an encyclopedic list of condo projects that have been announced for the tri-county area, and our first-ever ranking of new development marketing firms. And, don’t miss our amazing cover story starting on page 26 about what has recently become Miami’s most popular neighborhood: MiMo. Enjoy the issue. Ina Cordle,

South Florida Managing Editor

1110 South Ocean Boulevard, one of Palm Beach’s priciest listings

POSH PAD SALES STILL SOARING South Florida’s luxury market is still going strong, but the surge of new high-end condo projects could even out pricing MIAMI BEACH AWAITS RICHARD MEIER The starchitect talks about why the Surf Club is worth preserving but not all buildings are, and his go-to place when he needs a pick-me-up

12 20

NEW TECH TRENDS Virtual reality goggles and construction drones are the new tools of the trade

SUNNY OUTLOOK FOR PALM BEACH The commercial market is making major gains, thanks in part to residential growth

WHAT’S EB-5’S FUTURE? South Florida is a magnet for foreigners seeking these special visas, but the federal program will sunset in September

MICROSCOPE ON MIMO Learn about all the deals shaping the resurgence of Miami’s new #1 neighborhood WWW.THEREALDEAL.COM/MIAMI APRIL 2015 1

PUBLISHER AMIR KORANGY EDITOR-IN-CHIEF STUART W. ELLIOTT EDITORIAL DEVELOPMENT DIRECTOR HEATHER GROSSMANN MANAGING EDITOR, THE REAL DEAL SOUTH FLORIDA INA CORDLE REPORTERS KATHERINE KALLERGIS, SEAN STEWART-MUNIZ ART DIRECTOR GREGORY CULLEN CONTRIBUTORS FRANCISCO ALVARADO, ERIK BOJNANSKY, JENNIFER WHITE KARP, NICK MADIGAN, CINDY KRISCHER GOODMAN PRODUCTION COORDINATOR VICTORIA TUTURICE DIRECTOR OF MARKETING OPERATIONS YOAV BARILAN NATIONAL SALES DIRECTOR ROSS FOX ADVERTISING SALES ERAN EVRON, NICK MASCARO, ROBERT STEARNS, NICKI CHADI, SIGALIT LEVI, MARCUS GUEST, CHRIS CUOMO, BARRY HOLLAND, FRANKIE GRIMA, JUSTIN O’GARROW DIRECTOR OF DIGITAL SALES JUNAID ZAHID ASSOCIATE WEB DEVELOPER AMIR GHAHERI FINANCE DIRECTOR/HR KENNETH CYRUS OFFICE MANAGER VIRGINIA DURSO CIRCULATION PAUL DESTANKO DISTRIBUTION MITCHELL NEWMAN, PATRICIA HOFMANN, FORERO EXPRESS ATTORNEY BARRY J. FRIEDBERG TRACHTENBERG RODES & FRIEDBERG LLP ACCOUNTANTS WILLIAM T. MCCALLUM, CPA, P.C., CHRISTINE WANG

The Real Deal is a registered trademark of Korangy Publishing Inc. Copyright © 2015. Call 212-260-1332 or e-mail news@therealdeal.com. Warning: It is illegal to photocopy or reproduce any part of The Real Deal without express written consent. For reprints and duplication rights, call 212-260-1332. Principal ofﬁce: 158 West 29th St., New York, NY 10001. The Real Deal is published monthly. Annual subscriptions cost $95. Send check or money order to 158 West 29th St., New York, NY 10001.

SANDCASTLES & SOMMELIERS Oceanfront Residences in Miami from $2.4 Million

PROPERT Y

15701 Collins Avenue Sunny Isles Beach, FL 33160

TEMPOR ARY SALES LOUNGE

17070 Collins Avenue #265 Sunny Isles Beach, FL 33160 (305) 521-1544 TheResidencesSunnyIslesBeach.com

The Ritz-Carlton Residences, Sunny Isles Beach are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C., or its affiliates (“Ritz-Carlton”). Sunny Isles Property Venture, LLC uses The Ritz-Carlton marks under a license from Ritz-Carlton, which has not confirmed the accuracy of any of the statements or representations made herein. OR AL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DE VELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION Ř Œř.ŖőŔ, FLORIDA STATUTES, TO BE FURNISHED BY A SELLER TO A BUYER OR LESSEE. The Developer is Sunny Isles Property Venture, LLC which has a right to use the trademark names and logos of Fortune International Group and Chateau Group. This is not an offer to sell, or solicitation of offers to buy, in states where such offer or solicitation cannot be made. The rendering contained herein is an artist impression, conceptual interpretation, proposed only and merely intended as illustration. No guarantee is made that the described features, services, amenities or facilities will be available or built. Developer reserves the right to make any modifications, revisions or withdrawals in its sole discretion and without prior notice. All improvements, design and construction are subject to first obtaining permits and approvals for same by the relevant authorities.

SOUTH FLORIDA MARKET REPORT APRIL 2015

Cervera Real Estate is marketing Aria on the Bay.

RANKING SOUTH FLORIDA’S DEVELOPMENT MARKETING FIRMS Everyone’s looking for an edge as the competition for buyers keeps getting fiercer

STAR MOVES South Florida’s celebrity wheelings and dealings

32 48

IN THE GENES The Nakash family has more than the Versace mansion under their belts

LOCAL NUTS AND BOLTS Getting to know the architects behind the out-of-town starchitects

FROM RUSSIA — AND ELSEWHERE — WITH LESS LOVE An in-depth look at how global economic conditions are affecting the local real estate market

CHINA’S STAR IS RISING The country’s growing appetite for U.S. real estate will be a boon to Miami

NO COMMERCIAL BREAK Miami-Dade is posting healthy numbers across the office, hotel and retail sectors

4 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

TERRACE 37’10” x 7’7”

GREAT ROOM 21’6” x 19’ BEDROOM 13’2” x 11’10”

PEOPLE YOU SHOULD KNOW These low-key South Florida real estate professionals are making their mark on Miami

SOUTH BROWARD’S BOOMING Mixed-use projects are all the rage as more developers follow homeseekers out of Miami

WORKING ALONE, TOGETHER Shared office space companies are sprouting up all over Miami

CAPITAL GAINS Insiders discuss how Miami’s major real estate projects are luring funds from new sources this cycle

SLS Brickell

CM WR AC

ENTRY FOYER

INSIDE IAN SCHRAGER’S RESIDENCES AT THE EDITION A look at who bought what in the exclusive 25-unit Miami Beach

88 100 102 104

CONDO DEVELOPMENT MOVES NORTH Shift comes as more domestic buyers enter the market

LAND PRICES LOOK UP Asking amounts have more than tripled in some Miami submarkets

MIAMI’S MOB CONNECTIONS Al Capone’s mansion is getting a facelift

TANTALIZING TIDBITS Gossip and pics from Miami’s real estate scene

Oral representations cannot be relied upon as correctly stating the representations of the developer. For correct representations, make reference to the documents required by section 718.503, f lorida statutes, to be furnished by a developer to a buyer or lessee. This is not intended to be an of fer to sell, or solicitation to buy, condominium units to residents of any jurisdiction where prohibited by law, and your eligibility for purchase will depend upon your state of residency. Equal Housing Oppor tunity.

Brazilian Architect Isay Weinfeldâ&#x20AC;&#x2122;s Love Letter to Miami 75 E XC EP T I O N A L R E SI D EN C E S W I T H I N DOOR /O U T DOO R T ER R AC ES

S H O R E C LU B R E S I D E N C E S . C OM

1 9 0 1 C O L L I N S AV E N U E S U I T E 2 0 0 2 M I A M I B E A C H F L O R I D A 3 31 3 9

P . 3 0 5 8 9 4 3 74 0 E X C L U S I V E S A L E S & M A R K E T I N G B Y D O U G L A S E L L I M A N D E V E L O P M E N T M A R K E T I N G

INTRODUCING THE 2015 ISSUE OF

REAL ESTATE MARKET REPORT

South Beach: A Prime Condo Market South Beach is well known for its high-end restaurants, condo towers and breathtaking views of Biscayne Bay, Downtown Miami and the Atlantic Ocean. The northern section of South Beach includes Lincoln Road and is considered by some to be the cultural center of Miami Beach. There are countless boutique hotels, resorts and condo towers lining the beaches on the east side of Collins Avenue. South Beach also contains the New World Symphony, the United Statesâ&#x20AC;&#x2122; only fulltime orchestral academy. The southern section of South Beach offers the exclusive SoFi (South of Fifth) pocket, a very small concentration of luxury condo developments. South of Fifth is considered the most high-end condo market in Miami Beach, providing residents with a quieter lifestyle than that of the northern South Beach section. South of Fifth is also home to some of Miamiâ&#x20AC;&#x2122;s best restaurants and South Pointe Park, a resident favorite featuring the new, 450-foot South Pointe Pier, ample walkways and spectacular views of Fisher Island and the cruise ships leaving Miami through Government Cut. 6 3RLQWH 'ULYH 3+ _ 3RUWRÍ¤ QR 7RZHU 6RXWK %HDFK

YOUR TOP RESOURCE FOR SOUTH FLORIDA REAL ESTATE. PLEASE VISIT ONESOTHEBYSREALT Y.COM/TRENDS TO ACCESS THE FULL REPORT. Statistics provided by Integra Realty Resources â&#x20AC;&#x201C; Miami\Palm Beach. The information contained herein is deemed accurate but not guaranteed.

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South of Fifth, South Beach Luxury Condo Market 2014 Statistics

Apogee

Continuum South

Continuum North

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Murano Grande

Icon South Beach

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Average Sell Price ^ $7.24M

Average Sell Price ^ $4.93M

Average Sell Price ^ $2.57M

Average Sell Price ^ $2.65M

Average Sell Price ^ $2.41M

Average Sell Price ^ $2.59M

Average Sell Price ^ $2.00M

Average PPSF ^ $2,333

Average PPSF ^ $2,003

Average PPSF ^ $1,651

Average PPSF ^ $1,354

Average PPSF ^ $1,113

Average PPSF ^ $1,061

Average PPSF ^ $1,036

g 0.6%

g 38.0%

g 18.6%

g 15.1%

g 21.8%

g 21.2%

g 6.5%

since 2013

g 81.4%

g 137.9%

g 60.3%

g 79.0%

g 92.9%

g 105.3%

g 82.4%

since 2010

877.630.8155 INFO@ONESOTHEBYSREALT Y.COM AV E N T U R A Â· B AY H A R B O R Â· B R I C K E L L Â· C O R A L G A B L E S Â· F O R T L A U D E R D A L E Â· K E Y B I S C AY N E Â· M I A M I B E A C H Â· S U N N Y I S L E S i//:8 10' 5QVJGD[ÅÜ +PVGTPCVKQPCN 4GCNV[ NKEGPUGF TGCN GUVCVG DTQMGT 5QVJGD[ÅÜ +PVGTPCVKQPCN 4GCNV[m KU C NKEGPUGF VTCFGOCTM VQ 5QVJGD[ÅÜ +PVGTPCVKQPCN 4GCNV[ #HÆ&#x2019; NKCVGU ..% 'SWCN 1RRQTVWPKV[ %QORCP[ 'SWCN *QWUKPI 1RRQTVWPKV[ 'CEJ 1HÆ&#x2019; EG KU +PFGRGPFGPVN[ 1YPGF CPF 1RGTCVGF

LISTINGS SPOTLIGHT w South Florida Market Report

Luxe sales still soaring South Floridaâ&#x20AC;&#x2122;s surge of new high-end condo projects could even out pricing at the top BY SEAN STEWART-MUNIZ

outh Floridaâ&#x20AC;&#x2122;s luxury residential market experienced a buying frenzy â&#x20AC;&#x201D; again â&#x20AC;&#x201D; over the last year, with billions of dollars trading hands for homes and condos. Buyers closed on thousands of posh properties, and the regionâ&#x20AC;&#x2122;s top realtors say thereâ&#x20AC;&#x2122;s no lack of demand for South Floridaâ&#x20AC;&#x2122;s priciest listings. Nelson Gonzalez, a senior vice president with Esslinger Wooten Maxwell Realtors, said sales of luxury residences in MiamiDade County continue to surge. He added that domestic buyers were increasingly replacing the powerhouse investors from South America and Europe. Total sales of luxury residences reached $11.1 billion in the tri-county area during the 12-month period ending in February, a 1.2 percent increase over the previous year, according to data from Condo.com. The site deďŹ nes the luxury range as properties selling for $700,000 and above. Miami-Dade County saw $4.9 billion in luxe condo and single-family home sales, followed closely by Palm Beach County with $4.1 billion. Both nearly doubled Broward Countyâ&#x20AC;&#x2122;s $2.1 billion. â&#x20AC;&#x153;At the very high end of the market, Iâ&#x20AC;&#x2122;m seeing a frenzy,â&#x20AC;? Gonzalez said. â&#x20AC;&#x153;The problem is thereâ&#x20AC;&#x2122;s not enough inventory at the top. Land sales are increasing tremendously. People want to build their own homes.â&#x20AC;? EWM President Ron ShufďŹ eld said that prices for single-family residences are likely to stay high because of lack of inventory, but the recent surge of luxury condominium projects in South Florida could even out prices overall signiďŹ cantly. â&#x20AC;&#x153;Right now thereâ&#x20AC;&#x2122;s a good balance in the market for supply and demand,â&#x20AC;? ShufďŹ eld said. In Miami-Dade County, Gonzalez closed on $149 million in high-end sales between March 2014 and February 2015, according

â&#x20AC;&#x153;Right now thereâ&#x20AC;&#x2122;s a good balance in the market for supply and demand.â&#x20AC;? ÂŠ5RQ 6KXIÂ´HOG (:0 Ron Shuffield

to Condo.com. He also handled the ďŹ rst and third most expensive sales in the county â&#x20AC;&#x201D; a $30 million home and another for $28 million, both in ritzy Indian Creek. Coldwell Banker realtor Jill Eber

Jim McCann

101 El Bravo Way was completed in 2011 and never lived in.

PALM BEACH COUNTY ADDRESS CITY LISTING BROKER 540 South Ocean Boulevard Palm Beach Paulette Koch, Corcoran Group Real Estate

PRICE $42.9M

101 El Bravo Way 3148 Grand Pix Farms Road 1110 South Ocean Boulevard 901 South Ocean Boulevard

$30M $23M $22.1M $19M

Source: Condo.com 8 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

totaled $154 million in luxury sales for her listings. Eber, together with Jill Hertzberg, form the Jills, a residential real estate powerhouse that moved a hefty portion of pricey real estate deals over the

Palm Beach Wellington Manalapan Delray

James McCann, Corcoran Group Real Estate Carol Sollak, Engel & VĂślkers Jilly Cammisa, Premier Estate Properties Randolph Ely, Corcoran Group Real Estate

LISTINGS SPOTLIGHT South Florida Market Report

past year — just under $500 million. In Palm Beach County, Pascal Liguori of Premier Real Estate said the limited supply of luxury homes has forced prices back up to pre-downturn levels. Demand is also driven by the lack of a state income tax, the agent said. He noted that the tax savings for a well-paid executive from New York, for example, could pay for a multi-million dollar home in just a few years. Liguori handled the listings for $108 million in luxury home sales over the past year. He works with his brother Joseph Liguori, a Premier broker who had the county’s most expensive sale — a $17 million mansion that had languished on the market for 1,945 days before a buyer ﬁnally closed. Palm Beach County also saw the most expensive sale in the tri-county area: An

Nelson Gonzalez

17 Indian Creek Drive is a 19,941-square-foot house on a 80,000-square-foot lot.

MIAMI-DADE COUNTY ADDRESS 17 Indian Creek Drive

CITY LISTING BROKER PRICE Indian Creek Nelson Gonzalez, Esslinger Wooten Maxwell $30M

30 Star Island Drive 12 Indian Creek Drive 100 South Point Drive #3603/4 9701 Collins Avenue #2501

Miami Beach Indian Creek Miami Beach Bal Harbour

Jill Eber, Coldwell Banker Nelson Gonzalez, Esslinger Wooten Maxwell Jill Eber, Coldwell Banker Timothy Elmes, Coldwell Banker

$28.1M $28M $27.5M $22.8M

Source: Condo.com

Tim Emes

9701 Collins Avenue offers 11 bedrooms and the same number of bathrooms.

1000 Riviera Drive has six bedrooms and seven bathrooms and sits on a 12,533 square foot lot.

BROWARD COUNTY 11,514-square-foot beachfront mansion that sold for $42.9 million. Paulette Koch of Corcoran Group Real Estate had the listing. “The [Palm Beach] market continues to be very strong in the ultra high end,” Joseph Liguori said. “The reality is that there’s not a lot of new construction.” TRD

ADDRESS 927 Hillsboro Mile

CITY Hillsboro

LISTING BROKER Joseph Liguori, Premier Real Estate

PRICE $17M

1093 Hillsboro Mile 1 Isla Bahia Drive 1000 Riviera Drive 2401 Laguna Drive

Hillsboro Fort Lauderdale Fort Lauderdale Fort Lauderdale

Joseph Liguori, Premier Real Estate Sheryl Hodor, Douglas Elliman Timothy Elmes, Coldwell Banker Kelly Drum, Drum Real Estate

$16.8M $16M $12.5M $8M

Source: Condo.com WWW.THEREALDEAL.COM/MIAMI APRIL 2015 9

WHEN IT COMES TO LUXURY REAL ESTATE DEVELOPMENT IN MIAMI… ...WE ARE ALL

CREATING THE NEW URBAN MIAMI SINCE 1979 SOUTH FLORIDA’S PREEMINENT DEVELOPER RELATEDGROUP.COM

AUBERGE BEACH RESIDENCES & SPA FORT LAUDERDALE www.aubergebeach.com

HYDE RESORT & RESIDENCES HOLLYWOOD BEACH www.hyderesortresidences.com

AUBERGE RESIDENCES & SPA MIAMI www.aubergemiamiresidences.com

HYDE SUITES & RESIDENCES MIDTOWN www.hydemidtownmia.com

BALTUS HOUSE www.baltushouse.com

MAREA www.mareamiamibeach.com

BRICKELL HEIGHTS www.brickellheights.com

GRANPARAISO www.granparaisoresidences.com

HYDE BEACH HOUSE HOLLYWOOD www.hydebeachhouse.com

PARAISO BAYVIEWS www.paraisobayviews.com

ONE PARAISO www.oneparaisomiami.com PARAISO BAY www.paraisobay.com PARK GROVE www.park-grove.com RESIDENCES BY ARMANI CASA www.rbacmiami.com SLS HOTEL & RESIDENCES BRICKELL www.slsbrickell.com SLS LUX BRICKELL slslux.com

The Related Group is a trade name for a group of companies and partnerships that develop distinctive real estate projects. Each particular real estate development project that uses the name “Related Group” or “The Related Group” is a separate, single purpose entity that is solely responsible for its own separate development project, contracts, obligations, duties, and responsibilities and each uses the Related Group trade name by license agreement and each condominium project depicted is developed by one such distinct and separate, single purpose entity. This is not intended to be an offer to sell, nor a solicitation of an offer to buy, any condominium units to residents of CT, ID, NY, NJ and OR, or of any other jurisdiction where prohibited by law, unless the condominium has been registered or is exempt from registration, and your eligibility to purchase may depend upon your state of residency. Any offering made for, or by, any of the condominium development projects depicted is made solely by the Prospectus of such project which Prospectus is filed with the State of Florida and available from the project developer.

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South Florida Market Report

What’s on tap for tech South Florida firms vie for an edge with virtual reality and car-parking robots BY SEAN STEWART-MUNIZ

s innovations like video chat, smart homes and even virtual reality increasingly inﬁltrate daily life, the South Florida real estate industry is embracing the trend, using technology to market, sell and even build properties. Miami-based Opulence International Realty is using videochat technology developed by local startup LiveNinja to connect with potential buyers. James Hoffman, president of Opulence, said the volume of video chats between clients and brokers has jumped from three a day in the weeks following its launch earlier this year to 50. The chats can be conducted on desktops or laptops, but most are done on smartphones and tablets, where Hoffman said most people view the website. “For us, it’s working out extremely well,” Hoffman said. “We’re cutting down on that lag time between having a question and answering that question.” While Opulence is using technology James Hoffman, Opulence to connect with

Smart-home technology enables residents to control a unit’s lighting and other systems with a tablet.

Echo Brickell, left, which will have a robotic parking garage, above.

buyers, New York–based developer Property Markets Group — which is working on several luxury condominiums in South Florida — is using a series of “smart” amenities to attract them. PMG’s 50-story condominium Muse is designed to incorporate technology throughout. Owners will be able to control each unit’s lights, temperature and speaker systems with a smartphone or tablet. The building will also feature elevators with

facial recognition, safes with fingerprint scanners, flat-screen televisions built into walls and window shades that follow the sun throughout the day. At another of their developments, Echo Brickell, PMG plans to include a robotic arm that parks cars for residents by sliding under vehicles and lifting them into parking spaces. Evan Shapiro, a PMG director, said that most firms consider their work on a property done after the traditional buildout is finished. Not so for PMG. “We start the tech part where every other developer finishes,” Shapiro told The Real Deal. On the construction side of the market, Suffolk Construction has used new technology to accomplish a feat never before seen in South Florida: A parking garage 60 feet under sea level. The company is working on the luxury condominium Jade Signature in CONTINUED ON PAGE 14

12 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

TAKE A NEW VIEW OF OCEANFRONT LIVING. OCEANFRONT RESIDENCES AVAILABLE SPRING 2015

SALES I NQUIRIES 954 908 2097 3101 BAYSHORE DRIVE, FORT LAUDERDALE, FL 33304 WFORTLAUDERDALERESIDENCES.COM

EXCLUSIVE SALES & MARKETING BY

Oral Representations cannot be relied upon as correctly stating the representations of the developer. For correct representations, make reference to the brochure and to the documents required by Section 718.503, Florida Statutes, to be furnished by a developer to a buyer or lessee. This is not intended to be an offer to sell, or solicitation of an offer to buy, condominium units to residents of any jurisdiction where prohibited by law. Your eligibility for purchase will depend upon your state of residency. This offering is made only by the Prospectus for the condominium and is subject to change. A RRERF Condo Unit Owner, LLC project. The Residences at W Fort Lauderdale are not owned, developed or sold by Starwood Hotels & Resorts Worldwide, Inc., W Hotel Management, Inc. or their affiliates, nor by The Related Companies or The Related Group. RRERF Condo Unit Owner, LLC uses the W速 trademarks and trade names under a license from Starwood Hotels & Resorts Worldwide, Inc. If this license is terminated or expires without renewal, the residential project will no longer be associated with or have any right to use the W速 brand trade names or trademarks. The Residences at W Fort Lauderdale are owned and sold by RRERF FL Condo Owner, LLC., which is a bulk buyer as provided in 718.704(3).

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South Florida Market Report CONTINUED FROM PAGE 12

“A salesperson in the U.S. can show a home in Japan and close the deal the same day.” —ArX President Patricio Gonzalo

Oculus Rift headgear, inset, which provides virtual reality “tours” of luxury Miami properties, such as this $20 million apartment near Miami’s Key Biscayne Bridge, above and left.

Sunny Isles. The developer, Fortune International Group, asked Suffolk if it could put the tower’s parking underground to keep it out of sight. The problem? Dig deeper than a few feet in South Florida and the hole ﬁlls with water. “Imagine if you pushed [the garage] below grade so that you’re looking through the lobby doors and see the ocean,” said Rick

The Jade Signature residential tower, which relied on new technology to construct an underground garage. 14 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Kolb, senior vice president of Suffolk. “That’s what Fortune’s mission was … to give that vision from the street level to the ocean.” In order to build a garage that wouldn’t flood, Suffolk needed to create a massive watertight concrete box deep underground. The complicated undertaking required advanced 3D modeling and drones flying overhead to monitor the construction. Using this technology, workers were able to drill 2,000 holes 60 feet into the ground and fill them with concrete and water. The interlocking pillars created a block that the company was able to hollow out to build the garage. The team at ArX Solutions, an Argentinian firm that opened its South Florida office in the 1990s, seeks to create a digital experience for its users. The company is known for producing high-resolution renderings, videos and animations for developments. But for the last few years they have been working on something more immersive — virtual reality. With a type of goggles called the Oculus Rift, the company has created the ArXperience 3D, which puts potential buyers inside a unit without stepping foot on the property.

The goggles place the wearer in what is essentially a video game: The user can move through a condo, for example, and look at everything from the layout of a bathroom to the space in a walk-in closet. The novelty and utility allows users to explore features that would not be apparent in a photograph. For example, the user can look up and see the height of a ceiling, sense the width of a hallway or look at the view from a balcony. Patricio Gonzalo, president of ArX, said that while websites were once the gold standard for marketing, virtual reality will soon become the go-to technology for selling a client. “This design is going to change the way we do business,” Gonzalo said. “A salesperson in the U.S. can show a home in Japan and close the deal that same day.” TRD

An image from a drone Suffolk used to monitor its Sunny Isles construction site.

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South Florida Market Report

Meier makes mark in Miami Starchitect on preserving the Surf Club and why work is more fun than retirement BY NICK MADIGAN

f all goes according to plan, über architect Richard Meier’s foray into the boisterous Miami Beach development scene should bear fruit just in time for the bustle of Art Basel in the first week of December. That’s the targeted — and possibly optimistic — opening date for the revival of the massively expanded Surf Club, once a swank members-only emporium for drinking and sunning that is soon to be transformed into a Four Seasons hotel-and-luxury-condo complex, all three towers of it hovering over the beach. In its previous incarnation, the Surf Club – designed by Russell Pancoast in 1930 in the style of a Mediterranean villa, with ornate ballrooms and beachfront cabanas – was a favorite spot for luminaries like Winston Churchill and Elizabeth Taylor. The core of the club is being preserved and renovated, and will feature the main entrance to the much larger complex now growing around it. The 80-room hotel will be at the complex’s center, flanked by two 12-story residential towers with 150 apartments and penthouses. The intent all along, Meier says, was to save as much of the original building as possible, given its beauty and historic significance. Far from reducing his workload or resting on his considerable laurels, the 80-year-old Meier and his partners are also wrapping up construction on several other projects, including the HH Resort and Spa in Gangneung, South Korea; the Leblon office building in Rio de Janeiro; the 140-unit Rothschild Tower in Tel Aviv; the Cittadella Bridge in Alessandria, Italy; and Teachers Village, a mixed-use development in Newark, New Jersey. In a recent conversation with The Real Deal, Meier took evident pleasure in noting how well some of his older works have held up, both aesthetically and structurally, and acknowledged an enduring fondness for

18 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

one of his crowning achievements, the Getty Center in Los Angeles. He also conceded that despite continuing to take on projects across the globe, he is not quite as peripatetic as he once was. After all these years, do you still get a thrill traveling around the world and leaving your imprint on the landscape? The nice thing about working in all these different places is that you learn a lot. We’ve been doing this wonderful hotel in Korea; it’s for Hyundai. And it’s a terrific company — you learn about them while you’re designing the project. Working around the world is really terrific in that respect. Been to China a number of times, with projects there. We’re doing something in Tokyo. But I don’t travel as much as I used to. Are you slowing down? No, not in terms of being in the office, but in terms of traveling, I travel less. But it’s too

much fun to not keep working. But you must delegate quite a bit. Oh, yes, absolutely. We’re doing this terrific project — The Surf Club in Miami Beach, and we’ve got three or four people in the office who are intimately involved in what’s happening there. Is that still on schedule? Do you have an opening date? Well, it’s under construction. I don’t think we have an actual date yet. We’d heard that you planned to have it open in time for Art Basel. Well, I hope so. There are a couple hundred people working on the site. It’s amazing. It’s a great site, too — right on the beach. You look out and you see the ocean. It’s terrific. I understand that you’ve decided to acquire one of the residences yourself. I have an apartment that has views of the water, of the beach, and from that apartment I can also see the sunset over the bay.

“Just because it’s old may not mean it’s worth saving. You have to look at it, and say, ‘Is this of a certain quality that is worth preserving?’ ” —Richard Meier

Richard Meier with a model of his Surf Club project. PHOTO CREDIT: MaxDworkin Photo

UP South Florida Market Report

Is that a first, having a home in one of your own buildings? Yes. All I need is time to go there. I was wondering, since this is an oceanfront property, whether you have a concern about a possible rise in sea levels over the long term. Is that something that you’ve addressed? The height of the building is such that I can’t imagine in the next 100 or more years the sea rising to the level of the first floor. Because that’s raised about — I can’t remember exactly — four or five feet above the ground and there’s landscaping between it and the water. As you know, you have a walkway right-of-way that belongs to the city and on the other side of that there’s a dune. So at this location I don’t think that’s a problem. How difficult was it in this case to incorporate an existing and much older structure into a new and much larger building? We kept the old structure and incorporated it into the new building so that the entrance to the new building is really through the old building. Should architects try, as much as they can, to preserve the old? I don’t think you can answer that question. Just because it’s old may not mean it’s worth saving. You have to look at it, and say, ‘Is this of a certain quality that is worth preserving?’ In the case of the Surf Club it certainly was, because it’s a wonderful building, but I don’t think you can say that anything that’s old you have to save just because it’s 40 years old. In your long career, as you look back on it now, are there some projects that you’re more fond of than others? Do you have an emotional attachment to some of them? That’s a good question, because there are projects that I did, say, 30 years ago, or more, that I hadn’t been back to. But now I’ve had occasion to go visit them, either because I’m traveling, or because of a change of ownership, any number of reasons, and I look at them and say, ‘Gee, that’s terrific. I’m really happy with that.’

Meier’s rendering for Miami Beach’s Surf Club, which will feature a hotel ﬂanked by residential towers.

I look at some of the early houses, which now have different owners than they did when I designed them, and I look at how beautifully they’ve been cared for. They may have been done 30 or 40 years ago, but they look brand new because people have really looked after them. That’s even true of public buildings. When I’m in Atlanta, I visit the High Museum, and I say, ‘Gee, that’s great,’ you know. Or Frankfurt, or any number of places. If I’m ever seriously depressed, I just have to go to the Getty.

The Getty Center in Los Angeles, a $1 billion arts facility, was completed in 1997.

It’s an astonishing place. It must have been terribly exciting to be able to build on that kind of a site, with that spectacular view of Los Angeles. You’re right. It’s exciting. I haven’t been back to L.A. for a number of years, and I was talking with someone just the other day, and he said, ‘You can’t believe how the landscaping has grown in. It looks like it’s been there forever.’ Do you have a favorite project? You’ve done projects all over the world, and you’ve really left your mark. Is there one that stands out above all others — a favorite child? The thing about the Getty is that it’s a public place, and the public goes there and enjoys it and appreciates it. I can’t tell you how often people come to me, or I meet them, and they say, ‘I went last week to the Getty and we had such a wonderful time and we were just so busy walking around that we never got into the museum.’ I guess that’s a compliment. They just love going there, having lunch, walking around, looking at everything. I mean, it’s terrific. So, it’s the public buildings that are really the most important to me. Is there a building by another architect that inspires you still? There are so many good architects today. I get a few different journals from around the world, and it’s remarkable the quality of architecture in South America, in the United States, in Europe. I think there’s a better quality of architecture today around the world than there was 50 years ago.

I imagine that when you were starting out, you admired people like Frank Lloyd Wright and Philip Johnson. Yes, certainly. Mies van der Rohe, Le Corbusier, Alvar Aalto — there’s so many. Were you aware of taking cues from any of them? No, not really. You can admire the work of others. They’re important influences. What do you think is your signature element, the thing you go to most when designing? I think it’s the quality of the spaces, the use of natural light, the relationship of the building to its context — all these things are very important. You’re an artist — you consider yourself an artist. I hear you’ve been doing a lot of collages over the years. That’s right, and I’m still doing them. I’m actually doing some very big ones right now. I have a studio where we have our model museum, in Jersey City, a studio space where I go and work on occasion and do some very large collages. It’s great fun. Have you had any gallery shows? I’ve just had a show at the State Russian Museum [in Saint Petersburg], and I had a show last year in Zurich, in a gallery. As you look back on what, by any measure, must be regarded as a remarkable career, do you have an overall assessment of what you’ve done? I think I’m very proud of the things that we’ve done over the years, without question. But I’m also looking on to the next thing. It’s nice to look back at different projects, and yet I look forward to the conclusion of the construction of the Surf Club. In Tel Aviv, I look forward to that being finished. We’re finishing the project in Teachers’ Village in Newark. There are so many things that are coming to conclusion. TRD WWW.THEREALDEAL.COM/MIAMI APRIL 2015 19

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South Florida Market Report

Palm Beach bounces back Commercial sectors are getting a boost from residential growth BY INA CORDLE

Office

torefronts are filled with new tenants, ofﬁce occupancy rates are rising and new buildings are under development as Palm Beach County’s commercial real estate sector bounces back from the brink, experts say. “Commercial real estate in Palm Beach County has recovered to near pre-recession levels,” Don Ginsburg, president of Fort Lauderdale-based RMA commercial brokerage, told The Real Deal. The commercial sector in the suburban enclaves of Boca Raton, Delray Beach, Boynton Beach and Wellington, in particular, are rebounding, he said, following strong growth in the suburban residential markets. “Retailers need rooftops and trafﬁc counts to do development,” Ginsburg said. “They are reinvigorated to follow the residential population growth.” That has translated into declining retail vacancies and new commercial development both under construction and in the planning stages, he said. One example Ginsburg noted is Delray Marketplace in Delray Beach, which was completed during the downturn and is now thriving. By the end of 2014, the development was showing strong occupancy of 90.4 percent, according to Brian Hector, regional manager of leasing for Kite Realty Group in Orlando,

Retail Total vacancy 7.9%

Lease rate $18.16 psf

Net absorption 183,168 sf

Completions 220,402 sf

20 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Total vacancy 21.3%

Lease rate $17.81 psf

Net absorption 268,751 sf

Completions 60,202 sf

which handles leasing for the property. Commercial activity is also on the upswing in the urban core of West Palm Beach, said Brad Capas, president of CapasGroup Realty Advisors, based in Fort Lauderdale. “I think this will be a transformational couple of years for Palm Beach County, and downtown West Palm Beach in particular,” Capas said. Rental complexes are under construction, and the few existing Class A office buildings in that area are at or near 100 percent occupancy, he said. Demand is coming from both suburban relocations and new entrants from outside the region as financial services firms and other companies seek the South Florida lifestyle, and its attendant tax advantages, too. Investors are also taking note. City Tower Place, an office building in West Palm Beach, set a new record for the city when it sold for more than $500 per square foot to an institutional investor in fall 2014, according to Capas. A new convention center and Hilton hotel are also under construction in West Palm Beach. Meanwhile, downtown Boca Raton is going through a renaissance, with new apartment buildings in the works. A rental complex is also proposed for downtown Delray Beach. “Residential is leading the recovery and creating the critical mass of people able to support the commercial development that

we think will follow,” Capas said. As a key indicator of the commercial sector’s rebound, office space absorption surged during the fourth quarter of last year, said Jonathan Satter, principal and managing director of Avison Young in Palm Beach County. “There is an acceleration in the appetite for office space,” Satter said. Absorption resulted in vacancy rates as low as 14 percent across all classes at the end of the year, he said. That’s a sharp decline from late 2011, when vacancy rates approached 28 percent, according to figures from CBRE. Without much new space coming on line, Class A and Class C space have shown the lowest vacancy rates of all. That, in turn, has caused tenant incentives — and options — to nearly disappear. “If you wanted Class A waterview space in downtown West Palm Beach, your choices would be very limited,” Satter said. “Two years ago, there were a lot more choices.” Absorption is also picking up speed in the suburban office markets. And now that vacancy rates are down to a “manageable level,” Satter said new office developments are emerging in places like Palm Beach Gardens, Boca Raton and Wellington. “We’re certainly back to a timeline of 2004 or 2005,” he said. “We’re in a stronger marketplace today.” TRD

Industrial Total vacancy 5.1%

Lease rate $8.35 psf

Net absorption 85,115 sf

Completions 0 sf

*Arrows indicate change from previous year.

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EB-5’s future South Florida attracts foreigners keen on these special visas, but the federal program will sunset in September BY FRANCISCO ALVARADO

ith 70 regional centers dedicated to the federal government’s EB-5 visa program, Florida has established itself as one of the fastest growing markets for foreigners seeking permanent U.S. residency through the program. “California, Florida and New York are the top three states for EB-5 activity,” said Adrian Pomery, a spokesperson for EB5 Investors magazine. “South Florida in particular is one of the hottest areas.” Regional centers are organizations approved by U.S. Citizens and Immigration Services (USCIS) to assist developers and entrepreneurs in making their projects eligible for the EB-5 program, as well as to secure the visas for the foreigners funding their projects. As of March, California was the only state with more regional centers (160) than Florida, according to a list released by USCIS. New York has 58. Since Congress enacted the program in 1990, EB-5 visas have been a path to permanent U.S. residency for foreign nationals who create at least 10 domestic jobs and invest at least $500,000 to $1 million in a U.S. business venture. Nearly half of the regional cen-

Tibor Hollo’s Panorama Tower in Brickell has an EB-5 designation. 22 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

ters in the Sunshine State are based in South Florida’s tri-county region. Miami-Dade has 17, Palm Beach has 13 and Broward has four. Developer Jeffrey Berkowitz’s SkyRise Miami project was granted EB-5 status late last year based on his promise to create 4,000 to 6,000 jobs. In February, shortly before flying to China to recruit investors, Berkowitz told The Real Deal he hopes to collect $270 million — more than half the tower’s estimated construction cost — from roughly 540 foreigners. Other local projects with EB-5 designation include Tibor Hollo’s Panorama Tower in Brickell, The Crimson tower in Edgewater and a 41,000-square-foot office condo building in Doral by Riviera Point Development. “There are several factors that make South Florida attractive,” Pomery said. “Its proximity to the water and it’s also a place that investors, especially in China, have heard of.” Historically, Chinese nationals have applied for and received the lion’s share of the 10,000 EB-5 visas doled out in the U.S. annually. Chinese accounted for 8,308 of the visas approved in fiscal year 2014. South America had the second highest number of the visas with only 162. Pomery noted foreigners in politically unstable regions have easier access to other visa programs. A spokesperson for USCIS said the agency does not break down the number of EB-5 investors or projects in each state. While USCIS caps the number of individual investors from each country who can receive EB-5 visas at 3,000, it does not put a cap on the immediate family members who also receive the visas. The growth of Florida’s EB-5 market comes at a time when the program is facing an inevitable backlog and an uncertain future. In December, Charles Oppenheim, the State Department’s visa control and reporting chief, warned that USCIS will run out of the 10,000 special visas earmarked for fiscal year 2015 by mid-summer. According to USCIS’ 2015

SkyRise Miami was granted EB-5 status last year.

first-quarter report, there are more than 7,000 pending EB-5 visa applications. Eighty percent are from China. Meanwhile, supporters are concerned a new Republican-led Congress might allow the EB-5 program to expire when it sunsets at the end of September. Republican Sen. Chuck Grassley, chairman of the Senate Judiciary Committee, opposes the EB-5 program and noted on his website that “there appear to be some major flaws that need fixing.” Lauren Cohen, founder and owner of e-Council — a consultant firm specializing in EB-5 visas — said no one really knows what the future of the program is. “When I first got into this industry, there was the same fear. Congress did not renew it until almost the last day of session.” One positive indicator, Cohen said, is a bill proposed by Democratic Congressman Jared Polis of Colorado and Republican Mark Amodei of Nevada called the American Entrepreneurship and Investment Act of 2015. The legislation would make the EB-5 program permanent and streamline the processing time to obtain visas. Polis said he co-sponsored the bill because he believes the EB-5 visa program has been instrumental in creating jobs. “It’s an important tool that brings innovation and investment to the United States,” he said. TRD

Why do luxury developments like MUSE Sunny Isles, Echo Brickell, The Crimson, Echo Aventura, The Residences at W Ft. Lauderdale, Sage Beach, Downtown Doral and others choose ISG World?

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BREATHTAKING VIEWS. EXTRAORDINARY AMENITIES. 70 % S O L D. L A S T C H A N C E F O R P R E- CO N S T R U C T I O N P R I CI N G .

W H ER E T H E N AT U R A L B E AU T Y O F B I S C AY N E B AY M EE TS T H E B O H E M I A N S P I R I T O F CO CO N U T G R OV E B AY F R O N T R E SI D EN CE S WI T H Ĺ&#x2019;Ĺ&#x201C; Ă&#x160; Â&#x201A; Ĺ&#x2013;Ĺ&#x2018;}Ĺ&#x2018;Ĺ&#x2018;Ĺ&#x2018; S Q UA R E F EE T O F C U R AT ED A M EN I T I E S F E AT U R I N G Ĺ&#x2013;Ĺ&#x2018;Ĺ&#x2018; FEE T Ă? Ă&#x152; Â&#x201A; Ă&#x152; Ă&#x152; Ă&#x160; Ă&#x160; Ă? Ă&#x152; Ă&#x152; |

EXCLUSIVE MARKETING AND SALES AGENT DOUGLAS ELLIMAN DEVELOPMENT MARKETING Oral representations cannot be relied upon as correctly stating the representations of the developer. For correct representations, make reference to this brochure and to the documents required by section Ĺ&#x2DC;Ĺ&#x2019;Ĺ&#x2122;|Ĺ&#x2013;Ĺ&#x2018;Ĺ&#x201D;, Florida statutes, to be furnished by a developer to a buyer or lessee. Obtain the property report required by federal law and read it before signing anything. No federal agency has judged the merits or value, if any, of this property. The Developer is 2701 Bayshore Venture, LLC, (â&#x20AC;&#x153;Developerâ&#x20AC;?), which has a limited right to use the trade names, logos, images, and trademarks depicted pursuant to license agreements.

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Terra Group and the Related Group are not the Developer. Pricing, design, amenities, and nearby attractions are subject to change without notice. Nearby shopping, entertainment, cultural, and dining attractions are not controlled by Developer and are not offered nor guaranteed by Developer. Broker participation welcome. Plans, features and amenities subject to change without notice. All illustrations and plans are artist conceptual renderings ( , -/ $ . .) " (! 1#.")/. ().# | "#- 0 ,.#- ' (. ) - (). )(-.#./. ( ) , #( ." -. . - ) ), ), (3 $/,#- # .#)( 1" , *,#), , !#-., .#)( ), )." , +/ &#Ĺ? .#)( #- , +/#, | +/ & ")/-#(! )**),./(#.3|

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South Florida Market Report

Finding MiMo Inside the deals shaping the retro-revival of Miami’s new hottest neighborhood BY ERIK BOJNANSKY

ust 20 years ago, the motels along Biscayne Boulevard were seen as havens for drug dealers and prostitutes to ply their trade. Now many of these structures make up the backbone of the Miami Modern Biscayne Boulevard Historic District, located between 50th and 77th streets along the boulevard. Here, this once blighted area is seeing a steady influx of trendy shops, good restaurants and new office space. Tony Ulloa, a broker for Keyes Commercial, said the MiMo district has benefited from a steady stream of Miami Beach transplants eager to trade their expensive condo life for a home and a yard in Miami’s Upper Eastside neighborhoods. “It’s become more of a place that I would take my friends from New York and other places to have dinner,” Ulloa said. “Before, you had a very limited choice.” But it isn’t just small-business owners who are moving to the MiMo district, an area named after a style of architecture that dominated the Miami scene from the late 1940s until the early 1970s. Developers and real estate investors are flocking here as well.

Soyka Restaurant is a popular hangout in the MiMo District.

26 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

“I think the people going into MiMo are banking the properties, which suggests a real business plan.” —Keyes Commercial broker Tony Ulloa

One of the major MiMo players is Avra Jain, a former bond trader who renovated old buildings in New York’s Tribeca and Soho neighborhoods prior to investing in Miami real estate. Jain said her interest in the MiMo district began when her friends tried to get a room at The New Yorker, a recently restored 1950s-era hotel on Biscayne Boulevard, only to ﬁnd that it was booked solid. It was then that she realized that while Miami Beach had plenty of rehabilitated — and expensive — boutique hotels from that same period, there were few in the City of Miami. So she bought the 62-year-old Vagabond Hotel in 2012. “We knew we would make a difference in the perception of Biscayne Boulevard,” Jain said. Since that deal, Jain has purchased several more properties in

the district. The $12 million-plus she spent buying MiMo real estate does not account for ﬁxing up those neglected properties. “Renovation costs run more than acquisitions,” Jain said. And how much has she invested in renovations? “I try not to think about it,” she answered. Greenstreet Real Estate Partners, a $1.5 billion real estate investment fund, is also putting money in MiMo. Last fall, Greenstreet spent more than $14 million buying retail and ofﬁce properties there. Tony Cho, president of Metro 1 Properties, said investors are attracted to the area because the cost to buy or rent property in the MiMo district is a comparative bargain. “It’s a cost-effective alternative,” he said. However, as MiMo’s popularity increases, so to do the district’s retail rents. Cho said rents have increased 50 percent in the MiMo district in the last three years, though he noted that the trend is “fairly market wide.” Retail rents in the area range anywhere from $35 to $50 a square foot. But Chariff Realty president Lyle Chariff worried that some new owners may expect far more rent from their properties than what MiMo’s current market warrants. “That can create a big problem,” Chariff said. “If people pay too much, they’ll charge too much ... Rents will go up, and businesses can’t survive.” Ulloa disagreed. “I think the people going into MiMo are banking the properties, which suggests a real business plan,” he said. “It’s not just speculation and people plopping down money.”

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7700 Biscayne Boulevard Technically just outside of the MiMo district, the Motel Blu is nevertheless a MiMo-style building that will soon regain its old MiMo name: The Gold Dust Hotel. Hoteliers Orlando and Gladys Valdes bought the 68-room, 57-year-old hotel in February 2014 from Pretish and Priesh Patel for $4.2 million. That same month, the Valdeses sold the Delores and Eve Hotels in South Beach for $17.5 million and purchased the Cavalier South Beach for $12.5 million. The Gold Dust is currently being renovated.

MIMO BISCAYNE BOULEVARD Between 73rd & 77th streets

7301 Biscayne Boulevard After months of renovations, The Vagabond Motel is ﬁnally fully operational following the opening of the critically acclaimed Vagabond Restaurant in January. Jain and business partner Dalia Lagoa paid $1.9 million for the shuttered 55-room hotel in September 2012 and invested another $5 million to transform the once seedy place into an upscale resort-style boutique motel. Room rates range from $149 a night to at least $300 during special events like Art Basel and the Food & Wine Festival.

7411 Biscayne Boulevard Construction continues on the 25-room Royal Palm, a rundown motel across the street from the Vagabond that Jain and Lagoa purchased for $1.5 million in May 2013 from Dipak and Rakhi Patel. At the time, Jain planned to run Royal Palm as an annex of the Vagabond. Now, it will regain the name it once had when it ﬁrst opened in 1953: The Knoxon Motel. And once it’s open, it will also house a culinary school in the lobby.

7350 Biscayne Boulevard The new headquarters of restaurateur John Kunkel’s 50 Eggs ﬁnally opened at this location in March. By the summer, Kunkel said he hopes to have a “test kitchen” open on the ground ﬂoor of this 76-year-old, three-story Art Deco building, as well as some sort of bar or restaurant. Kunkel, the founder of the Lime restaurant chain, bought the former Sunshine Hotel from Alex and Rena Karakhanian for $3.5 million in December 2012. (The Karakhanians purchased the hotel for just $1.5 million 11 months earlier.) Kunkel described this as his “passion project.” “This was a bigger challenge than I thought,” Kunkel said at a recent neighborhood association meeting. “I would rather build 20 restaurants than do this again.”

7300 Biscayne Boulevard Greenstreet teamed up with the Miami-based collaborative office space company Büro Group to buy this 50-year-old, 21,454-square-foot office building and a neighboring 14,800-square-foot parking lot for $5.03 million from Deborah Ohanian in September 2014. Ohanian bought both properties for $4 million nine years earlier. Michael Feinstein, CEO of the Büro Group, said the building, which is adorned with the iconic Coppertone Billboard, will go through a complete rehab. When the project is complete, Büro will run half of the office building as its next shared office space. The other half will be leased out to other tenants. The 305 Yoga & Outreach, which now occupies the fourth floor, will move to a new location before the end of this year, Feinstein added.

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MIMO BISCAYNE BOULEVARD Between 64th & 72nd streets

7200 Biscayne Boulevard Around six years ago, prominent Miami attorney Thomas Tew opened up a 14,250-square-foot gym at this location called Biscayne Boxing & Fitness Club. He went from renter to owner when he bought the corner building for $1.55 million in 2012. Two year later, Tew died of pancreatic cancer, and the gym closed. In December 2014, Tew’s daughter sold the gym to Greenstreet for $3.9 million. Chariff, who brokered the deal with partner Mauricio Zapata, said the space will be subdivided for new retail tenants.

6300 Biscayne Boulevard Jain and Lagoa bought this property, built in 1953 and previously known as the South Pacific Motel, in December 2013 from Dayarambhai Patel for $2 million. They’re now converting it into an office building known as the South Pacific Wotel, which will include a La Prep fresh food takeout restaurant, Jain said. The project should be completed in the summer, the developer said.

7111 Biscayne Boulevard This 79-year-old Eastern Videoanchored ofﬁce complex was bought by Dr. Adam Gropper, a Miami Shores radiologist, from Charles and Susan Allen for $1.5 million in May 2014. (The Allens bought the complex for $96,500 back in 1994.) Following the sale, Eastern Video moved to a new location. The complex, meanwhile, remains empty. Alex Garcia, Gropper’s broker and director of AG Real Estate Services, is listing the property at $2.78 million. “We have a few offers we are working with,” Garcia said.

6405 Biscayne Boulevard Near the incoming Starbucks will be MiMo Place, a 10,000-square-foot retail facility that is being built by developer Alexander Karakhanian. Panther Coffee, the Miami-based coffee chain, will occupy a 2,500-square-foot space in MiMo Place. Karakhanian bought the 15,000-squarefoot lot in December 2012 for $1.2 million from Argentine investors Mariano Karner and Javier Rabinovich. The sellers bought the lot less than a year prior from Midtown Miami developer Michael Samuel for $300,000.

6320 Biscayne Boulevard Located next door to the South Paciﬁc, this building has been known as the Stephens International Motel for decades. Jain and Lagoa purchased this property from Narayana Prasad for $1.15 million in May 2013. When renovations are completed, it will be known as the ofﬁce building with the brand new 1,750-square-foot Starbucks with a patio and drive-through. (The Real Deal will be a tenant in the complex.)

64th Terrace and Biscayne Boulevard Federico Gagliardo, founder of Vitrium Capital, bought this 17,152-square-foot plot of vacant land just south of Legion Park for $2.67 million in January 2014.

CONTINUED ON PAGE 30 28 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. WE ARE PLEDGED TO THE LETTER AND SPIRIT OF THE U.S. POLICY FOR ACHIEVEMENT OF EQUAL HOUSING OPPORTUNITY THROUGHOUT THE NATION. WE ENCOURAGE AND SUPPORT AN AFFIRMATIVE ADVERTISING AND MARKETING PROGRAM IN WHICH THERE ARE NO BARRIERS TO OBTAINING HOUSING BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN. THIS IS NOT INTENDED TO BE AN OFFER TO SELL, OR SOLICITATION TO BUY, CONDOMINIUM UNITS TO RESIDENTS OF ANY JURISDICTION WHERE PROHIBITED BY LAW, AND YOUR ELIGIBILITY FOR PURCHASE WILL DEPEND UPON YOUR STATE OF RESIDENCY. USE AND OPERATION OF THE HELIPAD ARE CONDITIONED UPON OBTAINING FAA AND OTHER GOVERNMENTAL APPROVALS. APPROVAL HAS NOT YET BEEN OBTAINED. NO ASSURANCE CAN BE GIVEN ABOUT WHETHER THE APPROVALS CAN BE OBTAINED, AND/OR IF SO, THE TIMING OF SAME.

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South Florida Market Report CONTINUED FROM PAGE 28

6101-6151 Biscayne Boulevard In November 2014, Greenstreet Capital Management bought Mirabella — a 12,000-square-foot retail building — for $5.8 million from restaurateur S teve Perricone, according to Chariff, who brokered the deal with Zapata. In 2013, Perricone built Mirabella on a 22,705-square-foot parcel purchased for $795,000 back in 2004.

MIMO BISCAYNE BOULEVARD Between 51st & 61st streets

5555 Biscayne Boulevard A 16,000-squarefoot office structure completed in 1973, this building once served as the South Florida office for The Arc, a non-profit dedicated to assisting the mentally disabled. The Arc has since moved to South Miami and 5555 Biscayne Boulevard has been stripped of its old shell. Jain and another one of her business partners, Joseph Del Vecchio, bought the property for $2.2 million in February 2014 and are converting it into a Class-A office building. As of deadline there are no confirmed tenants.

5900 Biscayne Boulevard In January 2014, rug and furniture importers Jacques and Denise Miodownik bought this grassy 16,769-square-foot parcel from Miami cosmetic surgeon Just Brahmatewari for $1.3 million. Eight years prior, Brahmatewari bought the land for $1.4 million. As of deadline, the Miodowniks were seeking to change the zoning for part of the land from single-family home residential to commercial in order to build a furniture showroom.

5604 Biscayne Boulevard The only site in the MiMo district where the 35-footheight limit doesn’t apply, this two-acre plot of land — located across the street from Soyka’s Restaurant and next to Andiamo Pizza — was purchased by Venezuelan investors Carlos Cuevas and Javier Sanguino for $15 million in June 2014. The sellers were Enrique and Alejandro Alvarado, who planned to build two 151-foot-tall towers on the site back in 2003, until neighborhood opposition smothered their venture. Cuevas, CEO of Green Dragon, intends to build a LEED-certiﬁed 123-foot-tall building with underground parking, 85 residences and 35,000 square feet of retail. The condo units are reportedly being pre-sold for between $600 and $750 a square foot.

30 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

5201 Biscayne Boulevard Known as the Cavalier Motel back in 1947, this property was renamed Uptown in recent years and was run as a cheap motel until January 2014, when French developer Matthieu Melki — founder of the Wynwood Fund — bought it from 52 Biscayne LLC for $2.25. He then converted it into an upscale 23-unit apartment where studios rent out for $1,450 a month and one-bedrooms for $2,350. “Everything is brand new,” said Melki, who is still renovating the building. “We changed the electricity, the plumbing, the furniture and we are going to make a nice community area inside.”

5101–5125 Biscayne Boulevard Jain and Lagoa bought the 68-year-old Bayside Motor Inn in November 2013 for $2.1 million from Arwin and Manorama Devchand. They are renovating the property, and when it’s completed, it will operate as a motel again. TRD

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Obtain the property report required by federal law and read it before signing anything. No federal agency has judged the merits of value, if any, of this property. Oral representations cannot be relied upon as correctly stating the representations of the Developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by a Developer to a buyer or lessee. This offering is made only by the prospectus for the condominium and no statement should be relied upon if not made in the prospectus. This is not an offer to sell, or solicitation of offers to buy, the condominium units in states where such offer or solicitation cannot be made. Prices, plans and speciďŹ cations are subject to change without notice. The Developer is BAYSHORE PLAZA I, LLC (â&#x20AC;&#x153;DEVELOPERâ&#x20AC;?) which has a license to use the trademarked names and logos of The Melo Group pursuant to a licensing agreement. The graphics and text reďŹ&#x201A;ected are the copyright property of the Developer. The renderings illustrate and depict a lifestyle; however amenities and attractions are subject to change. While there are water views at the property, views may vary. The sketches, renderings, pictures, illustrations, and statements are proposed only, and the Developer reserves the right to modify, revise or withdraw any or all of same in its sole discretion.

PROFILE w

South Florida Market Report

In the genes Nakash family’s real estate portfolio has expanded from denim to luxury properties such as the Versace mansion and the Setai — with a flea market in their back pocket BY FRANCISCO ALVARADO

ear the entrance to the Flea Market USA, a dilapidated food truck sells fried chicken, hot dogs, hamburgers and French fries to customers streaming in and out of the 215,000-square-foot shopping center in Miami’s Liberty City neighborhood, where the median household income is $26,364. Inside, dozens of merchants peddle discounted shoes and clothes, jewelry, booming car stereo systems and barber services. The 14-acre Flea Market USA, at 3017 Northwest 27th Street, was among the first properties in Miami acquired by the Nakash family, the founders of Jordache Jeans who made their first big local splash with the 2013 purchase of the former Versace Mansion, and made major waves again with the nearly $90 million purchase of The Setai Hotel in December. While Flea Market USA may seem like an odd fit in the Nakash family’s growing empire of South Beach hotels, the property is indicative of the family’s strategy: Carry a diverse array of holdings in just about every real estate sector. “That one is a little bit unusual,” said Jonathan Bennett, director of real estate for Nakash Holdings and the de facto family spokesperson on such matters (the family declined to be interviewed for this story). “It’s a little bit different from the strategy on Miami Beach, but it is a compelling investment opportunity for us.” Whether it’s owning incomeproducing shopping centers in depressed neighborhoods, or luxury condo hotels in oceanfront communities, Nakash’s goal is Jordache was founded by the to hold onto valuNakash siblings.

32 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

able real estate in perpetuity, Bennett said. “We have a very, very long-term view,” he explained. “Whatever happens in the market on a short-term basis, we try to manage around it. Our holding period is 1,000 years.” Over the last three decades, Nakash Holdings — the investment arm of the family’s Joseph Nakash placed the winning bid of $41.5 million for the former Versace global conglomerate mansion at an auction, establishing the Nakashes as a major force in Miami Beach. Jordache Enterprises, founded by siblings Joseph, Avi and Ralph million. But the partnership didn’t last. Nakash — has amassed a portfolio of 14 hoThe Marciano brothers, founders of Guess, tels, 12 residential buildings, seven shopping accused the Nakashes of buying into their centers and dozens of retail storefronts in Tel company to steal their ideas. In 1989, a Aviv, Miami, New York City, Los Angeles and California Superior Court jury sided with the a handful of other U.S. cities. Marciano brothers’ claim that the Nakashes had fraudulently lured them into a deal. The Porsche Tower developer Gil Dezer, who hobnobbed with the Nakashes at Nakashes paid an undisclosed settlement the Formula 1 Abu Dhabi Grand Prix in and returned their stake to the Marcianos. November, said the family has been sitting Bennett said he couldn’t comment because the litigation took place more than a decade on a lot of cash generated by the success of before he joined the company. their denim empire. “That’s a great position to be in,” Dezer said. “They are really sharp Jordache continues to manufacture denim and, according to the company guys who know business. That’s why they are website, makes 35 million jeans a year in major players around the world.” factories around the world. But prolific It all began with the jeans. In the 1960s, pants production was not enough for the the Nakash brothers immigrated to New York City from Israel. In 1968, they cobbled Nakash family. They own the Port of Eilat together $20,000 and formed a partnership in Israel as well as their own commercial to sell dungarees in a Brooklyn storefront. airline, Arkia, and run an executive charter jet company called Excel Aire, among other The name Jordache is an amalgam of the siblings’ first names, the name of Ralph’s first business ventures. And then there is their son and their last name. By 1977, Jordache long-standing involvement in real estate. had expanded into manufacturing, making The family jumped into Miami’s designer jeans that competed against labels commercial real estate market in 2005, like Calvin Klein and Gloria Vanderbilt. two years after Joseph purchased a threeIn 1984, the Nakashes bought a 51 bedroom villa on tony Fisher Island for $1.1 percent stake in jeans maker Guess for $15 CONTINUED ON PAGE 34

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The Nakashes acquired The Setai for nearly $90 million.

“Whatever happens in the market on a short-term basis, we try to manage around it. Our holding period is 1,000 years.” —Nakash Holdings Real Estate Director Jonathan Bennett million. They purchased the 27-room Hotel Ocean at 1236 Ocean Drive in Miami Beach for $15.1 million, and the retail ground floor of an Art Deco building at 750 Collins Avenue for $6.1 million. The same year, the family partnered with New York City developer Haim Chera to buy Flea Market USA — identified as Miami Merchants Mart on the Jordache corporate website — for $11 million. According to Bennett, the Nakash brothers and Chera found out that Walmart, Jordache’s biggest client, was scouting locations in Liberty City to open a super center. (The retail giant just opened its new 182,000-square-foot store at 3200 Northwest 79th Street in January). Investing in Flea Market USA was a long-term play. “It’s a cash-flow producing property that has been functioning for many years,” Bennett said. “Walmart creates a critical mass that has a halo effect on neighboring properties.” Ultimately, Flea Market USA could be redeveloped into a modern shopping center, anchored by another big box retailer and national credit tenants, Bennett said. However, the Nakashes are primarily focused on being major players in Miami Beach’s hotel market, he insisted. 34 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

“South Beach, particularly Ocean Drive, ﬁts perfectly into our model,” Bennett said. “Some people have thought Ocean Drive has lost some of its allure. But if you are a ﬁrsttime visitor to Miami and you tell the cab driver where you want to go, nine out of 10 times, the answer is Ocean Drive.” NAKASH HOLDINGS’ MIAMI PURCHASES 2004 Two units at The Setai at 2001 Collins Avenue (with seven more to come) for $2.6 million 2005 Hotel Ocean at 1236 Ocean Drive for $15.1 million 2005 Retail ground floor of 750 Collins Avenue for $6.1 million

After scooping up Hotel Ocean and the retail space at 750 Collins, a flurry of similar transactions took place over the following years, ranging from the 2007 purchase of the Hotel Henrosa at 1435 Collins Avenue to the $18.3 million purchase in 2012 of the ground retail floor at the Strand at 1052 Ocean Drive. But despite the volume of purchasing, the Nakashes maintained a low-key profile during that time, according to Michael Capponi, a pioneer of Miami Beach’s nightlife industry who is now a real estate developer. “The Nakash family has been active in the market here for many years, somewhat under the radar,” Capponi said. “They are opportunistic and value buyers who know how to take under-performing assets and at once increase productivity and reduce costs.” It was not until September 2013, when they outbid Donald Trump and Palm Beach Polo owner Glenn Straub to win the former Versace mansion for $41.5 million in a bankruptcy auction, that the Nakashes formally established themselves as a major force in Miami Beach, Capponi said. “The Versace mansion is truly a trophy property,” he said. “Without a doubt, they will be successful here in repositioning it.” With their acquisition of The Setai for nearly $90 million, days before Christmas 2014, the Nakashes are in a prime spot to compete with the nearby W Hotel, the SLS South Beach, the recently opened Miami Beach EDITION and Faena House, which is set to open later this year, said Jill Hertzberg, who, along with her partner Jill Eber, brokered the Versace mansion sale. “I think their whole family dynamic is the key to their business ,” she said. “The y are all devoted to making their brand stronger, and I think they will find success in Miami.” TRD

2005 Flea Market USA, in partnership with New York City developer Haim Chera, for $11 million 2007 Hotel Henrosa at 1435 Collins Avenue for $6.8 million 2008 Hotel Breakwater at 940 Ocean Drive for $24.8 million 2011

Hotel Victor at 1144 Ocean Drive for $25.7 million

2012

Retail floor at the Strand at 1052 Ocean Drive for $18.3 million

2013

Versace mansion for $41.5 million in a bankruptcy auction

2014 The Setai for nearly $90 million

From left to right: Avi, Joseph and Ralph Nakash.

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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER. These materials and the features and amenities described and depicted herein are based upon current development plans, which are subject to change without notice. No guarantee is made that the features, amenities and facilities depicted by artists’ renderings or otherwise described herein will be provided, or, if provided, will be of the same type, size or nature as depicted or described. All dimensions are approximate, and all ﬂoor plans and development plans are subject to change. Exclusive Sales and Marketing by Astor RealEstate Group

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.

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MARKETING w

MIX

South Florida Market Report

Spinning the city Competition is fierce for South Florida’s top development marketing firms BY KATHERINE KALLERGIS

TOP 10 SOUTH FLORIDA DEVELOPMENT MARKETING FIRMS elebrity-studded, champagneRANK FIRM UNITS PROJECTS soaked parties, dog spas and 1 Fortune International Group 4,303 20 private yacht parking — it’s all in a 2 Cervera Real Estate 3,093 15 day’s work for South Florida’s development 3 Related Realty 2,924 16 marketing firms. 4 International Sales Group 1,072 10 But it’s not all easy street out there. Nearly 5 ONE Sotheby’s International Realty 1,011 18 43,000 units have come onto the market 6 Key International 1,003 6 since the start of the cycle, and that means 7 OneWorld Properties 732 3 the competition for buyers is fierce. 8 CMC Real Estate 549 1 The Real Deal ana9 Marina Palms Realty 468 1 lyzed preconstruction 10 Douglas Elliman 393 7 data provided by CraneSpotters.com to put toSource: Based on Feb. 17 data from CraneSpotters.com on preconstruction units on the market east of I-95. When firms shared the marketing of projects, the units were split 50/50 between them. The data includes only firms that market residential developments. This gether a ranking of the list includes the names of the parent companies only. region’s top development marketing firms some in partnership with other firms. DevelPartner Alicia Cervera Lamadrid noted that Edgardo Defortuna based on the number of opments they’re selling include Paraiso Bay unlike several other top marketing firms, hers in Greater Downtown Miami, Hyde Resort new development units each firm is currentdoes not split projects with anyone else. and Residences in Hollywood, Ritz-Carlton ly selling. In the instances where competing A hefty amount of the inventory Sunny Isles Beach and Hyde Midtown. firms “split” the marketing of units, which is represented by Cervera is at Aria on the Bay, a 647-unit tower in downtown Miami with not unusual when it comes to bigger projects, Cervera Real Estate, which took the 50 stories. The company launched sales for number two spot, has 3,093 units on the TRD split the total number of units evenly market, according to the data. Managing between the two companies. the development with a swanky reception Fortune International Group, Cervera Real Estate and Related Realty, in that order, took top honors, leading the marketing charge this cycle with the most preconstruction units on the market in the tri-county region east of I-95. Edgardo Defortuna, head of Fortune, said that for his firm, standing out in today’s crowded marketplace means traveling to meet potential buyers in person. “Before, we targeted South America. Now, we’re focusing more on Europe, China and the Northeast,” Defortuna said. Fortune, which includes Fortune Development and Fortune International Realty, is marketing the sale of more than 4,300 preconstruction residential units, Fortune is marketing Paraiso Bay in Greater Downtown Miami. CONTINUED ON PAGE 40

38 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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MARKETING w

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South Florida Market Report CONTINUED FROM PAGE 38

“When you don’t have the advantage of a brand name, it’s difﬁcult to get into this arena. It’s years in the making.” —Peggy Fucci, OneWorld Properties

One Thousand Museum boasts a helicopter pad.

at the Adrienne Arsht Center in September. “We invited 500 people to join us there,” Cervera Lamadrid said. “We had different performers. It’s a theme we’ll revisit.” She declined to reveal the marketing budget for Aria on the Bay, but said that per industry standard, it was a percentage — usually about 2 percent — of the total sellout price. That would put it at about $10 million. For British-themed The Bond on Brickell, Cervera Lamadrid put together an event at the sales gallery featuring soccer star David Beckham, who was presented with a Terry O’Neill photograph of himself as a child. O’Neill’s photographs are part of the building’s branding, she said. At another one of the properties she’s selling, Grove at Grand Bay, a dog spa is a hot

selling point. She noted that brand-name projects — like the Ritz-Carlton Residences and Four Seasons Private Residences — are also a draw, saying, “people recognize them and there’s comfort in that recognition.” Like Fortuna, Cervera Lamadrid said her firm takes a global approach to the sale of pricey condos, and said that her firm is also “keeping a close eye on China.” ISG — including International Sales Group, ISG Realty and its partnership with Related, Related ISG — is fourth on the list, with 1,072 preconstruction residential units. Their projects include Muse Sunny Isles, Koi Residences and Marina, and Echo Brickell, which will feature a 12,000-cubic-foot shark tank in the lobby. Brickell City Centre is among the developments that Daniel de la Vega, president of fifthranked ONE Sotheby’s International, is marDaniel de la Vega keting. He said that working with developers who understand “the wants and needs of buyers” is what determines how well a development will sell. At Zaha Hadid’s One Thousand Museum, a helicopter pad is just one of the many amenities enabling de le Vega to market to what he refers to as “transient, electrifying and fast-paced buyers.” OneWorld Properties came in seventh on the list with 732 units on the market in projects including Paramount Miami Worldcenter, Paramount Fort Lauderdale Beach and Brickell Ten.

Echo Brickell will feature a 12,000-cubic-foot shark tank in its lobby.

40 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

OneWorld Properties ranked seventh on the list with properties like Brickell Ten.

Peggy Fucci, OneWorld Properties President, said that it’s a particularly competitive market right now, both in terms of selling units and also getting new business from developers. “When you don’t have the advantage of a brand name, it’s difﬁcult to get into this arena. It’s years in the making,” she said. TRD

Martin Melo, left, and Carlos Melo of the Melo Group ﬂank Alicia Cervera Lamadrid of Cervera Real Estate.

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DESIGN w South Florida Market Report

Supporting the star Major out-of-town architects rely on South Florida colleagues for crucial back-up BY NICK MADIGAN

ometimes it starts with mere squiggles on a piece of paper, a design architect’s embryonic glimpse of a prospective building. But it’s another architect — the nuts-andbolts guy, the purveyor of plans, technical drawings and piles of construction documents — who brings that original idea to life before the first brick can be laid. The exuberant construction boom sweeping Miami and the surrounding landscape, much of it stratospherically expensive condos and high-end hotels, has meant a growing number of collaborations between big-name architects from elsewhere — the so-called starchitects — and local architects who are deeply tuned in to how things are done around here. “Everyone wants to design in Miami — it’s a brand in itself,” said Raul Rodriguez, whose firm, Rodriguez and Quiroga Architects, has been retained in recent years to work with out-of-town design architects on a slew of major projects. They include the Patricia and Phillip Frost Museum of Science and the Adrienne Arsht Center for the Performing Arts — the former an alliance with the high-profile British firm Grimshaw Architects, the latter with the powerhouse outfit Pelli Clarke Pelli, based in New Haven, Connecticut. “People like this have earned a reputation for their designs, both regionally and worldwide,” Rodriguez said. “When you cast a net so far, it’s difficult to become acquainted with the building methods and technology of all the places they go to design buildings. So they tend to seek local associations for the entire length of the project.” Rodriguez, 66, who came to Miami from Cuba when he was 11 years old and founded his firm in 1983, is one of a dozen or so local architects, he said, who “compete for the big work” on projects that bring with them “the sex appeal of a star architect, a premium brand.”

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“Everything that goes right on a project goes to the star, and everything that goes wrong goes to the nuts-and-bolts guy.” —Raul Rodriguez, Rodriguez and Quiroga Architects

Raul Rodriguez of Rodriguez and Quiroga Architects, inset, was retained to work with the U.K.’s Grimshaw Architects on the Patricia and Phillip Frost Museum of Science, above.

Those design architects, he went on, “do not want the liability” of overseeing all aspects of an out-of-town building project, let alone “to get into local planning or zoning regulations.” That work is left to the socalled architects of record, now increasingly referred to by the more exalted titles of executive or associate architects. Furthermore, as the design architect Max Strang pointed out, anyone submitting building plans as part of a permit-application process must be licensed as an architect in Florida. “The big out-of-towners, especially if they’re foreigners, they’re not going to have a license here,” said Strang, who is acclaimed for his waterfront modernist homes and who has 30 such projects in the works, most in South Florida. Since Strang is based in Miami — in

Coconut Grove, specifically — he and his colleagues at the firm handle both the design of local projects as well as technical drawings, permits and other minutiae. When he works out of town, mostly in the Bahamas, the Dominican Republic and — far from the water — in Telluride, Colorado, he allies himself with locally registered architects who, he said, “contribute a greater understanding of localized building techniques, permitting expertise and a more efficient interface with contractors.” Another Miami architect, Rene Gonzalez, known for designing — among other buildings — a 30,000-square-foot house on Indian Creek Island that sold in 2012 for $47 million, marking a record for the most expensive home in Miami-Dade County, now has the luxury of being able to retain other

DESIGN South Florida Market Report

A rendering of Louver House, a boutique condo in Miami Beach designed by Rene Gonzalez, who uses Rai Fernandez to do the more technical work.

architects to tackle the more down-to-earth aspects of his endeavors. On one of his most anticipated projects in Miami Beach, an 18-story condominium building called simply Glass, which started life as a doodle and a few lines, Gonzalez’s architect of record is Rai Fernandez of Bermello Ajamil & Partners. Fernandez is also working on Gonzalez’s design of the Louver House, a 12-unit boutique condo in Miami Beach’s South of Fifth neighborhood. “It’s a relationship that’s established Rene Gonzalez where we’re doing the design work and we’re transferring that work to an architect who’s putting together a set of construction documents and technical drawings,” said Gonzalez, who assisted years ago on executing Richard Meier’s design of the Getty Center in Los Angeles. “We stay involved during that process to make sure that the design intent is maintained and also that the details are resolved with the same design intention.”

Glass, a much-anticipated condo project in Miami Beach, above, started out as a rough sketch, left.

Another Miami architect with a Meier connection, Kobi Karp, is in charge of all local aspects of Meier’s Surf Club project in Miami Beach, which involves not only the CONTINUED ON PAGE 44 WWW.THEREALDEAL.COM/MIAMI APRIL 2015 43

DESIGN w South Florida Market Report CONTINUED FROM PAGE 43

renovation of the legendary, 1930 vintage members-only club, but its expansion into a vast condo tower and Four Seasons hotel. “In Miami, I like to work with other architects,” said Karp, speaking by phone from Abu Dhabi, where his firm has been involved in construction projects since 2005. “I find it interesting and enlightening to work with what some people call a star architect. If I work with a Pritzker-winning architect, they bring an added value to the project.” Asked if there were ego issues in such arrangements, Karp was firm. “Not for me,” he said. “I have not had such an issue before. The design is a collaboration. The end product is also a collaboration. So to work on the design from the beginning, it creates a platform for designing the work together.” Not all the architects of record get to help with design on someone else’s project, of course, but they appear eager for their contributions to be known.

The Adrienne Arsht Center for the Performing Arts in Miami.

Does working with a starchitect lead to a battle of egos? “Not for me. The design is a collaboration.” —Kobi Karp, Kobi Karp Architecture

“One of the myths is that the local guy only oversees construction,” said Rodriguez, who described his work on the Frost Museum of Science as perhaps the most complex he has ever undertaken. The “local guy,” he said, “develops the technical drawings from which the building is going to be built. It’s not just a swoosh on a piece of paper.” In any case, the term architect of record is used less often now, with executive architect increasingly preferred. “Architect of record sounds like the only thing you did was sign the documents,” Rodriguez said. Either way, he has no intention of giving up the projects on which he and his ﬁrm are top dog. “The designers do the design, the fun part,” Rodriguez said. “That’s why we don’t give up the design part. It’s fun to work with these international people, but it’s also fun to do your own designs, so we combine both.” In terms of reputation, he said, “Everything that goes right on a project goes to the star, and everything that goes wrong goes to the nuts-and-bolts guy.” TRD

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Under-the-radar players South Florida real estate professionals are making a mark, if not making headlines BY INA CORDLE

outh Florida has a wealth of prominent real estate developers and other industry professionals whose names frequently surface in headlines, and sometimes on buildings. Yet other, lesserknown names are also making their mark on the South Florida landscape — and they’re worth keeping an eye on. The Real Deal talked to a handful of real estate players currently involved in signiﬁcant projects who have managed — whether purposefully or not — to stay (somewhat) out of the limelight.

Stephan Gietl, principal, CFO and COO of McKafka Development Group Stephan Gietl entered the South Florida real estate scene after meeting his business partner, Fernando Levy Hara, in 2009. Both were students in a two-year, advanced

management development program for real estate at Harvard University. After specializing in analyzing real estate cycles, they both chose to invest in the same business concept: Buying fractured condos and distressed properties in South Florida. Gietl had just come from successfully developing a 1 million-square-foot mixeduse project in Prague. He sold it to a German fund for $700 million in early 2007. “We were very lucky to have finished the project, but the big question was what do next,” said Gietl, 47, who is a native of Vienna. “So I went to Harvard and met my business partner.” They looked at the most distressed areas in the U.S. to launch their business, finally settling on Miami. Their first project, a $10 million-plus investment with partners, was Las Olas by the River. They picked up 62

STEPHAN GIETL Principal, CFO and COO, McKafka Development Group

Amenities at The Crimson will include a large swimming pool, landscaped sundeck, gym and a business center. 48 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

condo units in a 284-unit project, rented them out and sold them, one by one, to international investors. In nine months, the partners’ investors — high net-worth South Americans and Europeans — got back their money and earned an internal rate of return of more than 60 percent, Gietl said. So they next set off to buy 68 out of 260 condo units at Village East in Fort Lauderdale, as well as all of Airport Villas and a 90-condo unit property near Miami International Airport. “Then, in 2012, we saw that the cycle had come to an end, and we focused on buying distressed land,” Gietl said. They bought waterfront land in Edgewater, next to where Related would later buy property for Icon Bay. “When the crisis slowly came to a halt, we were one of the ﬁrst movers in this area,” Gietl said. “It was clear that with all the future development going on in Miami, with Swire and Brickell City Centre, which will create thousands of jobs, there will be a need for people to live close to downtown, and Edgewater is close to downtown and it’s waterfront. This was the natural area where housing is going to expand.” Their development The Crimson will have 90 luxury units, priced from $500,000 to $1.8 million. So far, more than 70 percent of the project is sold, with 95 percent purchased by

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international buyers. Construction is expected to be completed in the fall, Gietl said. Next, the partners are focusing on developments on the west coast of Florida, in Sarasota and St. Petersburg. Overall, the total sell-out value of their current projects is $200 million. “We consider the market, especially Dade and Miami, overheated,” Gietl said “I think it is reaching its peak in the current cycle.”

Andrew Hellinger, managing partner of River Landing Hellinger readily admits he has been called “the little known developer” and he said that moniker suits him just fine. He is a self-professed “recovered attorney” who had specialized in bankruptcy and litigation at his firm, Meland, Russin & Hellinger, before making a career change to focus on real estate. In 2006, his client, Leviev Boymelgreen convinced him to leave the law firm and become president of his company. “When they hired me, they asked a lawyer at my firm, Coralee Penabad, to be general counsel, so we transformed our practice group at the law firm into a real estate property management and development group,” said Hellinger, 49. Boymelgreen had extensive holdings in Miami, including 1101 Brickell, five acres on the west side of the Adrienne Arsht Center for the Performing Arts and 17 acres on the site where Miami Worldcenter will be built. Hellinger said all of those assets, valued at $750 million, were sold by the end of 2008.

ANDREW HELLINGER Managing Partner, River Landing

There will be 426,000 square feet of stores and restaurants at River Landing.

“So, by 2008, we sold off the partnership holdings and decided that with the economy changing, we should use our skills to help institutions and banks that had troubled assets reposition themselves and work through the times,” he said. “We converted our development business at Leviev Boymelgreen to a consulting management business, managing developments for institutions that had troubled loans and troubled assets.” By 2011, he decided to get back into development, eventually paying $26 million for the former Mahi Shrine Auditorium, on nine acres at 1400 Northwest River Drive. “Back then, I was called crazy,” he said.

“Today, I am called a visionary.” The site will house the future River Landing, a $300 million mixed-used project that will include 430,000 square feet of retail space and 500 apartment units, bringing housing, shopping and restaurants to the now-hot Miami River neighborhood. The project, which will also sport a riverfront park, is expected to be completed in the fourth quarter of 2017. Hellinger said he views it as ﬁlling a need in the community. “We are building to what the average Miamian needs … to afford to live in the urban core,” he said.

Jackie Soffer, co-CEO of Turnberry Associates

JACKIE SOFFER Co-CEO, Turnberry Associates

Jackie Soffer was born into real estate, a member of the third generation of a family known for developing what is now the city of Aventura. After graduating from the University of Colorado, she spent a year as a ski school instructor in Aspen. “I didn’t really want to come back to Florida,” said Soffer, who grew up in Miami Beach. “I felt more of a connection to Colorado.” But one day, her father, Don Soffer, called and said that he hadn’t sent her to college for her to teach skiing. “So, I made the decision to come back and start working for my dad,” she said. “He wanted me to learn the business.” She moved around the company begin-

Aventura Mall offers over 300 stores over 2.5 million square feet of space. WWW.THEREALDEAL.COM/MIAMI APRIL 2015 49

LO C AL TALENT w South Florida Market Report

JULES TRUMP Founder, the Trump Group

Amenities at The Mansions at Acqualina include a private room for entertaining, a ﬁtness center and a cinema.

ning in 1990, learning all aspects of the business —working in one of the family’s hotels in Orlando, then in ofﬁce leasing, and in the development of One Turnberry Place. Soffer then turned her attention to Aventura Mall, becoming involved not just in its development but as a tenant, too. She and a friend opened a store in the shopping complex. “It was very good for me because I got to see life from a tenant perspective, not just a landlord perspective, which is a valuable thing,” she said. By 1995, Soffer and her partner had sold the store, but she continued to focus on the mall. When it underwent its ﬁrst expansion in 1997, adding a Bloomingdale’s and an AMC movie theater, in addition to a slew of other tenants, she oversaw the leasing and marketing. Over the ensuing years, Soffer and her brother Jeffrey (who in contrast to Jackie frequently makes headlines, not least for his marriage to supermodel Elle Macpherson) have partnered on an array of other projects. Some of those include: a 600,000-square-foot shopping center in Destin; various shopping centers and residential projects in Las Vegas; and residential projects in South Florida such as Porto Vita, Turnberry Ocean Colony and Turnberry on the Green. “Whether it is dealing with the crisis with the banks during the recession, or merchandising a mall, merchandising a hotel, putting

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restaurants in hotels, renovating, I enjoy doing it,” she said. In 2008, Soffer oversaw the second expansion at Aventura Mall, which brought in Nordstrom and other retailers. Now she is focusing on the mall’s future third expansion. “What I have focused on for so many years was giving back to the community, improving our assets, giving people more reason to come and reason to stay,” said Soffer, who in August will marry Dacra President and CEO Craig Robins, who is transforming Miami’s Design District into a luxury shopping destination. Next, Soffer and her brother are partnering with New York-based LeFrak, led by Richard Lefrak, to develop Biscayne Landing, a master planned community that will have nearly 4,400 residential units, ofﬁce buildings, and an outdoor shopping center, anchored by restaurants. Already, prospective tenants have expressed interest, although drawings are not yet released, and leasing will not be launched until May, she said.

Jules Trump, founder of the Trump Group Jules Trump’s career has spanned retail and real estate, and in South Florida, he has made his mark developing such projects as Williams Island, Acqualina Resort & Spa, The Mansions at Acqualina, and now, The Estates at Acqualina — all in partnership with his younger brother Eddie. In some circles, the brothers are know as the “Other

Trumps,” as they have no relation to The Donald and his clan. The Trumps grew up in Pretoria, South Africa, where their family owned a retail store. “You learn to work hard, but most of all, you learn to focus on customers,” Trump said of the experience. When they immigrated to New York in the 1970s, they bought a men’s clothing store, a 140-store chain called Bond’s Clothing. Trump called it “more or less a real estate play.” Next, they bought a jeans company, which they ultimately sold to Gap. By 1980, the Trumps had purchased the land that would become Williams Island, while still operating retail businesses, including a chain of bowling alleys and a network of auto parts stores, the latter of which they expanded and took public . What drew Trump to South Florida? “We came for Passover vacation and we felt it was amazing, and we saw the business that could be done,” Trump said. “Our feeling was that the same skills we thought were relevant in the retail business, we were able to transfer successfully into the real estate business.” They worked on Williams Island over 15 to 20 years, constructing eight towers and creating a bridge and a marina. They even convinced Sophia Loren to be their spokesperson. In 2000, the brothers bought the fouracre oceanfront property that would become the future home of Acqualina Resort & Spa. The goal was to create a hotel and condominium project. After the management company they hired failed to deliver the standard of care they wanted, they decided to operate it themselves. Next on tap is The Mansions at Acqualina, a tower with 78 condos priced from $8.4 million to $55 million, located south of Acqualina Resort & Spa. Construction is now nearing completion, and closings are expected at the end of June. Yet, the new height of their real estate careers, they say, is The Estates at Acqualina, a two-tower development to be built on property on the north side of Acqualina that will have condos priced from $3.9 million to $40 million. “It will by far be the best thing we’ve ever done,” Trump said. TRD

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South Florida Market Report

From Russia — and else Economic conditions worldwide are shifting how foreign capital flows into South Florida BY FRANCISCO ALVARADO

s the U.S. dollar continues to gain strength in a growing economy, the buying power of the primary foreign investors helping to fuel South Florida’s current boom cycle is sputtering. Currency devaluations along with other destabilizing economic and political factors in Latin America, Europe and Russia are making it harder for buyers from those regions to convert their funds to ﬂight capital. “We had a slow December and a slow January,” Philip Spiegelman, a principal with International Sales Group, said of sales to foreign investors. “February wasn’t on ﬁre either. We are interpreting that to mean the market is taking a deep breath.” During the 12-month period ending in June 2014, international real estate deals accounted for 29 percent of all transactions in Miami-Dade and Broward counties, compared to 35 percent during the previous 12-month period, according to a report by the National Association of Realtors. The Downtown Development Authority’s 2015 Residential Real Estate report warns currency exchange rates are having an adverse effect on the Miami condo market. “Fluctuations between South American and European currencies against the U.S. dollar make the future reliability on foreign investors uncertain,” stated the report, which was prepared by Integra Realty Resources and released in March. Daniel de la Vega, president of ONE Sotheby’s International Realty, agreed. “The value of currencies in relation to the dollar is the number one issue we are all keeping an eye on,” he told The Real Deal. The 2014 exchange rates for the main South American feeder markets of Argentina, Brazil and Venezuela slid 97 percent, 41 percent and 47 percent, respectively, since 2011, the year that foreign investment in Miami hit full throttle. The numbers are less drastic when comparing 2013 to 2014, with Argentina down 48 percent, Brazil down 9

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CANADA GDP growth estimate: 2.2% Currency value change: -11.7% Florida market share: 31.6% Change in market share YOY: 6.8%

GLOBAL VIEW

MEXICO GDP growth estimate: 3.2% Currency value change: -6.9% Florida market share: Data not available

ARGENTINA

COLOMBIA

GDP growth estimate: -0.2% Currency value change: -96.5% Florida market share: 2.9% Change in market share YOY: -47.3%

GDP growth estimate: 3.6% Currency value change: -8.4% Florida market share: 3.5% Change in market share YOY: 9.4%

SOURCE: "Florida market share": Percentage is reﬂective of the foreign buying pool only. Data is based on the 12-month period ending June 2014 and was pulled from the November 2014 International Homebuyers in Florida report. "Change in market share": Percentage change in market share among foreign buyers between the 12-month periods ending in June 2013 and June 2014. "GDP growth estimate": For 2015 as of March 2015 from research ﬁrm FocusEconomics. "Currency value change": Percentage change in value of currency versus the U.S. dollar as measured by average exchange rate in 2011 versus 2014.

GLOBAL

ECONOMY South Florida Market Report

where â&#x20AC;&#x201D; with less love UNITED KINGDOM GDP growth estimate: 2.6% Currency value change: 2.7% Florida market share: 7% Change in market share YOY: 20.7%

GERMANY GDP growth estimate: 1.6% Currency value change: -4.8% Florida market share: 5.4% Change in market share YOY: 1.9%

FRANCE GDP growth estimate: 0.9% Currency value change: -4.8% Florida market share: 3.2% Change in market share YOY: No change

RUSSIA GDP growth estimate: -4.2% Currency value change: -31% Florida market share: Data not available

MIAMI CHINA GDP growth estimate: 7% Currency value change: 5% Florida market share: 5.7% Change in market share YOY: 46.2%

VENEZUELA

BRAZIL

GDP growth estimate: -4.4% Currency value change: -46.5% Florida market share: 3.4% Change in market share YOY: -55.3%

GDP growth estimate: -0.1% Currency value change: -40.7% Florida market share: 5.7% Change in market share YOY: -12%

CONTINUED ON PAGE 56 WWW.THEREALDEAL.COM/MIAMI APRIL 2015 55

GLOBAL ECONOMY w South Florida Market Report CONTINUED FROM PAGE 55

percent and Venezuela down about 4 percent. Europe’s economic woes are making landfall on Miami’s shores, too. “While the euro has not diminished as much as the South American currencies, its slide versus the U.S. dollar has only recently started and is expected to continue to decrease over the next six to 12 months,” the report states. To the east of the Eurozone, the Russian ruble has lost 43 percent of its value in relation to the U.S. dollar when compared to 2013, per the DDA report. The negative impact of that ﬂailing currency is already evident in Sunny Isles Beach, a city that had become a safe haven for Russian buyers. Lana Bell, a broker for ONE Sotheby’s specializing in the area, said she has not had new Russian clients since the fall of 2014. “They are not buying anymore,” she said. “Not until the crisis ends in Russia.” But there may be new hope in China. The purchasing power of the Chinese yuan has increased by nearly 8 percent compared to

“We had a slow December and a slow January. February wasn’t on ﬁre ... We are interpreting that to mean the market is taking a deep breath.” —Philip Spiegelman, International Sales Group Principal 2011, according to the DDA report. The appreciation of the yuan, in addition to a cooling Chinese economy, high domestic property prices and continued interest in immigration to the U.S. has ramped up Chinese nationals’ appetite for overseas real estate investment. In New York City, Chinese investors spent almost 43 percent more in the real estate market in 2014 than the previous year. In Miami, the December sale of The Capital at Brickell site to CCCC International USA LLC, a subsidiary of Beijing’s China City Construction and New York–based American Da Tang Group, was an early indicator that the Chinese were starting to show increasingly strong interest here. The company bought the 2.78-acre property for $74.74 million. In March, American Da Tang Group opened an outpost in Miami to focus on

acquiring properties for Chinese buyers interested in the region. Meanwhile, Swire Properties, a developer out of Hong Kong and Mainland China, has been doing business in Miami for more than three decades and is currently developing the $1.05 billion mixeduse project Brickell City Centre downtown. These maneuverings have sparked interest from brokerage ﬁrms like ONE Sotheby’s and ISG. “We are going to Hong Kong to present some of our projects because we are seeing increased interest from Chinese buyers,” said ONE Sotheby’s de la Vega. Still, replacing buyers from countries in political and economic distress with Chinese buyers is going to take time, said ISG’s Spiegelman. “The Chinese are cautious investors,” he said. “To grow that market might take ﬁve to 10 years.” TRD

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Betting big on China South Florida looks to capitalize on China’s growing investment appetite BY INA CORDLE AND SEAN STEWART-MUNIZ

hanjie Li wants wealthy Chinese entrepreneurs to discover South Florida and to buy condos, shop, dine and visit spas — all in developments of his own creation. Li is head of American Da Tang Group, a real estate company founded in the U.S. to serve the real estate needs of the Chinese elite. Li opened a Miami outpost of the New York-based firm in March to focus on drawing more Chinese investors to the area. His goal, he said, through a translator, is to make South Florida a haven for affluent Chinese, with all the amenities they desire, including authentic Chinese cuisine. “It’s a very welcoming city. The city is very suitable for wealthy people,” he said, citing the economy and growth of new technology, among other factors. Li envisions three separate developments to appeal to investors: condos in the Brickell area for business people, a golf community in Doral for vacationers keen on the sport, and a wellness center near the ocean for retirees and the “overworked.” So far, an affiliate of the American Da Tang Group has purchased a Brickell development site at 1430 South Miami Avenue for $74.8 million. American Da Tang will develop it, though no specific plans have been finalized to date. Li’s next step is to open a high-end Chinese restaurant in mid-May at 801 Brickell Bay Drive, in the Four Ambassadors building. Called Da Tang Unique, the restaurant will have 4,500 square feet. A chef brought in from China will oversee it, he said. Li is not the only one in South Florida focusing on Chinese investors. Other developers and real estate professionals are targeting the country for potential buyers as news spreads of the increasing appetite Chinese nationals have for U.S. real estate investment. In Florida, China’s

58 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

share of the foreign buying pool jumped more than 40 percent from mid-2013 to 2014. A report released recently by Miami’s Downtown Development Authority outlined the potential for more Chinese buyers in the local condo market, citing the Chinese yuan’s gains against the dollar — one of the few currencies to Shanjie Li of American Da Tang Group seeks Chinese investors for South Florida. show that trend — as one of the factors. Via Acqualina 888 because the numerals “What we are seeing is really the beare considered lucky in Chinese culture. ginning of a strong Chinese inﬂuence and Ophir Sternberg, founding partner interest in South Florida,” said Philip Spieand CEO of Lionheart Capital, said he gelman, principal of International Sales and a small sales team will be traveling Group, which has recently formed a partto Beijing, Shanghai and Hong Kong nership with American Da Tang Group for this summer to market the Ritz-Carlton the marketing of new developments. ISG Residences Miami Beach. Chinese buyers

“What we are seeing is really the beginning of a strong Chinese interest in South Florida.” —Philip Spiegelman, International Sales Group

also added a Mandarin-speaking member to its staff to be able to communicate with Chinese buyers and form alliances. The Trump Group (no relation to Donald Trump) has produced Chinese translations of all of the marketing materials for its luxury development, The Estates at Acqualina. The developers also say they named its two towers Via Acqualina 777 and

have purchased seven units at the RitzCarlton Residences on Singer Island, and so far, three units at the Ritz-Carlton Residences in Miami Beach, Sternberg said. “And they want to introduce us to more of their friends who are interested in buying as well,” he added. “There is a growing appetite and a growing trend,” he said. TRD

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SALES OFFICE: 90 NE 17TH STREET - MIAMI, FL 33132 WWW.CANVASCONDOS.COM ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. OBTAIN THE PROPERTY REPORT REQUIRED BY FEDERAL LAW AND READ IT BEFORE SIGNING ANYTHING. NO FEDERAL AGENCY HAS JUDGED THE MERITS OR VALUE, IF ANY, OF THIS PROPERTY. SEE FULL LEGAL DISCLAIMERS AT WWW.CANVASCONDOS.COM.

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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATION OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY DEVELOPER TO A BUYER OR LESSEE. THE PROPERTIES OR INTEREST DESCRIBED HEREIN ARE NOT REGISTERED WITH THE GOVERNMENTS OF ANY STATE OUTSIDE

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OF THE STATE OF FLORIDA. THIS ADVERTISEMENT DOES NOT CONSTITUTE AN OFFER TO ANY RESIDENTS OF NJ, CT. HI, ID, IL, OR ANY OTHER JURISDICTION WHERE PROHIBITED, UNLESS THE PROPERTY HAS BEEN REGISTERED OR EXEMPTIONS ARE AVAILABLE. PLANS, FEATURES AND AMENITIES SUBJECT TO CHANGE WITHOUT NOTICE. ALL ILLUSTRATIONS AND PLANS ARE ARTIST CONCEPTUAL RENDERINGS AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. CONRAD® IS A REGISTERED TRADEMARK OF HLT CONRAD IP, LLC, AN AFFILIATE OF HILTON WORLDWIDE INC. (“HILTON”). THE RESIDENCES ARE NOT OWNED, DEVELOPED, OR SOLD BY HILTON AND HILTON DOES NOT MAKE ANY REPRESENTATIONS, WARRANTIES OR GUARANTIES WHATSOEVER WITH RESPECT TO THE RESIDENCES. THE DEVELOPER USES THE CONRAD® BRAND NAME AND CERTAIN CONRAD TRADEMARKS (THE “TRADEMARKS”) UNDER A LIMITED, NON-EXCLUSIVE, NON-TRANSFERABLE LICENSE FROM HILTON. THE LICENSE MAY BE TERMINATED OR MAY EXPIRE WITHOUT RENEWAL, IN WHICH CASE THE RESIDENCES WILL NOT BE IDENTIFIED AS A CONRAD BRANDED PROJECT OR HAVE ANY RIGHTS TO USE THE TRADEMARKS.

MARKET REPORT w South Florida Market Report

Commercial rally rolls on Miami-Dade insiders — and the stats — say no bust in sight as vacancy rates decline BY FRANCISCO ALVARADO

ll appears to be well in MiamiDade’s commercial real estate world. Transactions involving trophy ofﬁce buildings in downtown Miami and Brickell have been spurred by dropping vacancy rates and rising rents, thanks to a lack of inventory. The hotel sector continues to sizzle with eye-popping deals including the sale of the Miami Beach EDITION for $230 million. Global and national retailers are fueling demand for new and existing storefronts, leading to record-breaking sales in submarkets like Miami Beach’s Lincoln Road. Meanwhile, the industrial market remains a safe bet for investors seeking a stable place to park their money.

OFFICE MARKET In the office sector, developers added 120,724 square feet of office space last year and close to 200,000 square feet are scheduled for completion this year, according to a 2014 fourth quarter market report by CBRE. That’s a significant improvement over the less than 60,000 square feet delivered in 2013. Don Cartwright, senior vice president for Jones Lang LaSalle, said they’ve seen “a fair number of trades occurring in the marketplace.” He added that he believes “it is an op-

portune time for owners to sell.” Vacancy rates declined to 14.3 percent in fourth quarter 2014 from 17.4 percent during the same period in 2013, while average rent per square foot increased by 60 cents to $31.03 over the same period. Miami’s commercial business district, which includes downtown and Brickell, has seen considerable tenant growth. Brickell Bay Office Tower at 1001 Brickell Bay Drive announced in January that the building was 93 percent occupied after completing 15 leases totaling nearly 53,000 square feet in 2014. In February, a partnership between Newgard Development and Midgard Management announced it had sold half of the available 143,000 square feet of live-work space at One Flagler, a former office tower designed by Morris Lapidus that is being converted into an office-condo building.

One Flagler, an office-condo conversion in downtown Miami.

MIAMI-DADE OFFICE STATS BY MARKET MARKET Coconut Grove

INVENTORY (SF) 1.1 million

VACANCY RATE 5.7%

AVERAGE ASKING RENT (SF) $30.35

Miami Beach Aventura Kendall Brickell Airport/Doral Coral Gables Downtown Miami Biscayne Boulevard North Miami South Dade Miami Lakes

2 million 1.4 million 3.5 million 7.2 million 11.4 million 6.8 million 7.5 million 1.6 million 1.4 million 467,756 1.6 million

8.5% 9.8% 11.1% 13% 13.1% 13.2% 19.3% 19.7% 20.2% 22.7% 26.1%

$33.28 $39.27 $22.53 $39.98 $25.06 $35.10 $32.49 $31.66 $22.01 $25.31 $22.61

Source: CBRE Miami Ofﬁce MarketView (Q4, 2014) 62 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Other signiﬁcant transactions include the $140 million sale of the SunTrust Bank tower at 777 Brickell Avenue to a Brazilian investment group, and AEW Capital Management’s $50.2 million buy of a Coral Gables ofﬁce building at 550 Biltmore Way.

HOTEL MARKET Miami’s hotel market can expect several more years of robust growth, said Paul Weimer, a CBRE vice president who analyzes hospitality. “We do not foresee a ‘bust’ in the short to medium term,” Weimer said. “This growth is partly the result of the overall national

MARKET REPORT South Florida Market Report

economic recovery and partly the result of Miami’s growing importance as a true 24hour, gateway city.” According to CBRE’s Miami Hotel Outlook annual report, 2,269 new rooms are currently under construction and another 992 are in the ﬁnal planning stages. At the end of 2013, 1,975 rooms were under construction. Weimer said the new supply is enough to accommodate the 3.4 percent growth in demand CBRE projects in 2015. Investors also seem convinced Miami’s hotel market is still on the rise. In late December, the Nakash family, founders of the Jordache Jeans empire and owners of the old Versace mansion, bought The Setai Hotel in South Beach from Lehman Brothers Holdings for nearly $90 million. In February, Marriott International sold the Miami Beach EDITION at 2901 Collins Avenue for $230 million in cash to companies owned by the Abu Dhabi Investment Authority.

MIAMI-DADE HOTELS IN THE PIPELINE 2015 PROPERTY NAME 1 Hotel & Homes

AREA TENTATIVE OPENING DATE Miami Beach/South Beach Q1

ROOMS 417

East Hotel @ Brickell City Centre Embassy Suites Miami Downtown Aloft Hotel South Beach Faena Hotel Embassy Suites Aventura Holiday Inn Express & Suites Element Doral SLS Hotel ME Hotel Hampton Inn Miami Midtown Haddon Hall Berkeley Hotel Hyatt South Beach Homewood Suites

Brickell Brickell South Beach Miami Beach Aventura North Miami Beach Doral Brickell Downtown Miami Miami - Midtown Miami Beach/South Beach Miami Beach/South Beach Miami Beach/South Beach Brickell

Q4 Q4 Q3 Q3 Q3 Q2 Q1 Q1 Q3 Q1 Q3 Q3 Q3 Q3

249 247 239 169 155 150 140 133 129 124 123 110 105 103

Bal Harbour Quarzo (Phase 2) The Angler's Boutique Hotel

Bal Harbour Miami Beach

Q2 Q3

84 84

TOTAL

2,761

Source: CBRE Miami Hotel MarketView (Q3 & Q4, 2014)

RETAIL In comparison to other major cities in the Southeast, Miami is one of the very few areas where demand for traditional shopping malls and brick-and-mortar stores is growing, according to Paco Diaz, senior vice president of CBRE’s retail brokerage. “We are deﬁnitely in the boom part of the cycle,” he said. “Retail vacancy is extremely low, and mixed-use projects with a sizeable retail component are underway in just about every part of the city, from downtown

1 Hotel & Homes opened this year.

MIAMI-DADE RETAIL STATS BY MARKET MARKET Doral/Medley

INVENTORY (SF) 2.1 million

VACANCY RATE 1%

AVERAGE ASKING RENT (SF) $24.70

Downtown Miami Homestead Aventura Hialeah Coral Gables/South Miami West Kendall West Miami Miami Lakes Central Miami Miami Beach Cutler Bay North Miami East Kendall Miami Shores Carol City/Opa Locka

895,882 2.7 million 2.3 million 5.1 million 4.8 million 4.6 million 4.5 million 1.3 million 1 million 1.3 million 1.1 million 2 million 4.7 million 2.4 million 1.8 million

1.2% 1.9% 2.4% 2.7% 3.1% 3.3% 3.4% 3.6% 3.8% 4.5% 5.5% 5.9% 6.4% 7.4% 8.3%

$30.00 $14.85 $26.72 $20.61 $42.51 $26.40 $25.50 $27.09 $22.01 $189.78 $22.69 $17.28 $34.97 $100.66 $19.24

Source: CBRE Miami Retail MarketView (Q4, 2014)

ArtCenter of South Florida is located on Miami Beach’s popular Lincoln Road, where retail is booming.

Miami all the way out to Doral, to meet the tremendous demand.” According to CBRE’s 2014 fourth quarter retail report, the vacancy rate in Miami-Dade is 3.9 percent, down from 4.1 percent for the same period in 2013. Total net absorption CONTINUED ON PAGE 64 WWW.THEREALDEAL.COM/MIAMI APRIL 2015 63

MARKET REPORT w South Florida Market Report CONTINUED FROM PAGE 63

was 659,819 square feet in 2014 compared to 622,811 square feet the previous year. While the average rent rate dropped by 24 cents compared to the third quarter, Diaz noted that rents were still up by $6.64 in 2014 over the previous year. Retail investment activity also decreased slightly in the fourth quarter compared to the third quarter. The largest transaction was the sale of a partial interest in the Design District to General Growth Properties and Ashkenazy Acquisition Corporation. They paid $280 million to developers Dacra Realty and L Real Estate for a 20-percent stake in the 58-property portfolio consisting of retail, ofﬁce and parking garages. CBRE also noted the $88 million sale of the ArtCenter of South Florida building at 800 Lincoln Road. That corridor has maintained its status as the preferred home of national and global retailers — those that can afford the steep rents, that is. Nike will take over neighboring storefronts vacated by William Sonoma and Pottery Barn in the 1000 block of Lincoln Road. The sneaker maker has permission from the City of Miami Beach to demolish the structure and replace it with a new Touzet Studiodesigned store. “There is tremendous buzz surrounding Miami,” Diaz said. “Every retailer wants to be here.”

MIAMI-DADE INDUSTRIAL STATS BY MARKET MARKET Kendall/Tamiami

INVENTORY (SF) 12.3 million

VACANCY RATE 0.7%

AVERAGE ASKING RENT (SF) $9.83

North East Dade Hialeah Medley Central Dade South Dade North Central Dade Miami Lakes Airport/Doral

2.8 million 12.5 million 38 million 38.2 million 4.5 million 35.5 million 6.3 million 56.6 million

1.5% 1.9% 3.3% 3.8% 4.2% 4.4% 6.7% 7.1%

$10.69 $7.29 $7.88 $5.98 $9.72 $6.27 $8.30 $9.51

Source: CBRE Miami Industrial MarketView (Q4, 2014)

INDUSTRIAL Investor and tenant demand remain strong in the industrial segment, in part due to Miami’s geographical proximity to Latin America and an increase in cargo trading at Miami International Airport and PortMiami. Warehouses are providing investors with safe havens for their funds. But land is becoming scarce, as most industrial properties have been scooped up by pension and investment funds, according to the 2015 Industrial Market Report by the Commercial Industrial Association of South Florida. Jose Fernandez, president of The Easton Group (one of the largest industrial developers in west Miami-Dade), said institutional investors believe industrial warehouses are a safer bet than multifamily residential. “You have institutional players

who appreciate the lack of volatility that exists in the industrial space,” Fernandez said. Swiss billionaire Saul Gilinski, a pharmaceuticals executive, is one institutional investor making major deals in South Florida. On Nov. 25, his company, MSG Dania Beach, bought a 535,200-squarefoot industrial park in Dania Beach for $26.6 million. Publicly-traded Terreno Realty has also been busy. In February, the company made its fourth industrial buy in Miami’s Airport West submarket, buying a 107,000-square-foot-warehouse at 10100 Northwest 25th Street. According to 2014 fourth quarter market data by CBRE, the vacancy rate in Miami’s industrial sector declined slightly to 4.5 percent compared to 4.9 percent in 2013, which has led to a slight increase in rental rates from $8.02 a square foot to $8.15. TRD

“We do not foresee a ‘bust’ in the short to medium term.” —Paul Weimer, CBRE

PortMiami is considered one of the busiest ports in the United States. 64 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Oceanbleau will be HollywoodÂ´s most exclusive address. Exclusively appointed for just 48 privileged families, each residence at Oceanbleau will enjoy views of both the Atlantic Ocean and Intracoastal Waterway. Spacious layouts feature 3,000 Sq. Ft. floor plans, or a 6,000 Sq. Ft. combination. Every residence will feature more than 1,100 Sq. Ft. of outdoor living space. Oceanbleau Sales Gallery: 3050 Aventura Blvd., 3rd Floor Aventura, FL 33180 Oceanbleau Property Address: 6085 N. Ocean Dr., Hollywood, FL 33019 954-639-8000 | info@oceanbleau.com

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The sketches, renderings, graphic materials, specifications, terms, conditions and statements contained in this brochure are proposed only, and the developer reserves the right to modify, revise, or withdraw any or all of the same in its sole discretion and without prior notice. The photographs contained in this brochure have been taken off-site and are merely intended as illustrations of the concepts depicted therein. Nothing herein shall constitute an offer to sell, or a solicitation of offers to buy, in states in which such offers or solicitations cannot be made. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, make reference to this brochure and to the documents required by section 718.503, Florida statutes, to be furnished by a developer to a buyer or lessee.

NEW

DEVELOPMENT w

South Florida Market Report

South Broward mixes it up Multi-use projects proliferate as more developers follow home seekers north BY CINDY KRISCHER GOODMAN

here will be no wasting away when the Jimmy Buffett-themed Margaritaville Hollywood opens in Broward County this summer. In fact, the giant $147 million resort and convention facility will bring seven restaurants to the Hollywood Beach Boardwalk. The 17-story project, developed by Lon Tabatchnick, is rising on five city-owned acres at Johnson Street. Margaritaville is one of several large-scale commercial and mixed-use projects on tap in South Broward County as demand for highend homes in the region — and more tourist traffic — fuels increased investment in such developments. The dynamics of the area, including the expansion of the Fort Lauderdale/Hollywood International Airport and an uptick in cruise passengers at Port Everglades, make new construction in almost all sectors attractive at this time, said Don Ginsburg, president of RMA commercial brokerage. “The area around the airport has seen five new hotels in the last two years,” Ginsburg said. “Broward is land constrained, but developers are finding opportunities and applying vision.” Not far from the site of the new Margaritaville, a joint venture in Dania Beach between Kimco and Bob Shapiro’s Master De-

“Broward is land constrained, but developers are finding opportunities and applying vision.” —Don Ginsburg, RMA commercial brokerage velopment has assembled land for a 102-acre mixed-use project known as Dania Beach Live on land that once housed a giant wooden roller coaster and Boomers Amusement Center. Plans for the development, estimated at $250 million, include an open-air shopping center, restaurants, a hotel and apartments. The developers plan to break ground on the first phase later this year. In Hallandale Beach, Romagnole Investment Properties plans to redevelop a site as the Regency Park mixed-use development. In 2013, the developer paid $12 million for the property, a 5.3-acre site with existing commercial space. Now, plans are to add 250 high-rise units, as well as retail and office space. The site is just north of Gulfstream Park, a mixed-use project that is also slated for condo development in its next phase. To the west, in Miramar, construction is underway on Miramar Town Center, a 54acre project with everything from a new city hall to residential, retail and office space. The City of Miramar has partnered with the Rockefeller Group Development Corp/Kimco Realty for the development of the center, which broke ground on its first phase in 2006. In Plantation, the new owner of the former Fashion Mall plans to redevelop the site as a mixed-use property with residential units, office

A Jimmy Buffett-themed Margaritaville Hollywood opens this summer. 66 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Dania Beach Live, a 102-acre mixed-use project, is coming to a site that once held an amusement center.

space, shops and restaurants. An entity afﬁliated with Encore Housing Opportunity Fund, where Art Falcone is co-founder and managing principal, made the winning bid in an auction for the site. The $37.7 million sale was approved by a judge in late March. Current plans call for mid-rise residences both for rent and for sale. “Today’s demographics are looking for what we call a lifestyle center where they can live, work and play,” Falcone said. The retail and ofﬁce sectors in South Broward market are also gaining strength. Retail rents have rebounded to prerecession prices in Class-A centers, according to Lisa Ferrazza, a vice president with CBRE Brokerage Services who specializes in retail agency leasing.

Regency Park, a mixed-use development, is coming to Hallandale Beach. CONTINUED ON PAGE 68

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FROM $1.98 MILLION 5000 Island Estates Drive, Aventura, FL 33160 ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. OBTAIN THE PROPERTY REPORT REQUIRED BY FEDERAL LAW AND READ IT BEFORE SIGNING ANYTHING. NO FEDERAL AGENCY HAS JUDGED THE MERITS OR VALUE, IF ANY, OF THIS PROPERTY. All artist’s or architectural conceptual renderings, plans, prices, specifications, terms, features, dimensions, amenities, existing or future views and photos depicted or otherwise described herein are based upon preliminary development plans, and all and are subject to architectural revisions and other changes, without notice, in the manner provided in the purchase agreement or other information and the offering circular and may not be relied upon. All features listed for the residences are representative only, and the Developer reserves the right, without notice to or approval by the Buyer, to make changes or substitutions of equal or better quality for any features, materials and equipment which are included with the unit. The dimensions of units stated or shown in brochures will vary from the dimensions that would be determined based upon the description of the Unit boundaries set forth in the Declaration of Condominium. For the dimensions of the “unit” based on the depiction of “unit” in the Declaration of Condominium, refer to Exhibit 2 of the Declaration of Condominium included in the Prospectus Documents. Certain access to and rights to use recreational and other amenities within the development may be provided to the South Island, as described in the offering circular. This brochure does not constitute an offer to sell or a solicitation of an offer to buy a unit in the condominium. No solicitation, offer or sale of a unit in the condominium will be made in any jurisdiction in which such activity would be unlawful prior to any required registration therein. We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, sex, religion, handicap, familial status or national origin. *Subject to DERM approval and all other applicable government agencies. Advertising & Interactive by

Miami

NEW

DEVELOPMENT w

South Florida Market Report CONTINUED FROM PAGE 66

Construction is underway on Miramar Town Center, a 54-acre project with a new city hall and residential, retail and office space.

“Space has become tight in major markets in South Florida, and in the Southwest Broward market, vacancy is at 5.3 percent,” Ferrazza said. The lower vacancy and increased demand have affected rents. “It started in mid-2014, but in the last six to eight months we’ve seen about a 20 percent increase in asking rents.” A CBRE report on the Broward County ofﬁce market shows strong performance in that sector, too. In 2014, as unemployment rates declined, South Broward’s office buildings experienced positive absorption. Southwest Broward experienced increased leasing activity and a vacancy rate of 10 percent, the lowest of the submarkets. And, the continued demand for construction loans in South Florida means residential building will continue. South

Broward is no exception, lenders say. In Southwest Broward, housing communities that sat unﬁnished during the recession have been taken over by new developers and construction has resumed. Provence and Parkside Estates Homes, luxury home communities in Davie, are two examples. Condominium construction also continues unabated. In Southeast Broward County, developers have found pockets of land and proposed almost 4,450 units, with most of them — 3,250 — announced for sites in the Hollywood-Hallandale Beach market, according to CraneSpotters.com data. Most are trying to sell their units to wealthy domestic buyers and foreign nationals, and require large down payments. The Related Group has three new condo towers in various stages in the Hallandale Beach/Hollywood area, including Beachwalk by Pininfarina in Hallandale Beach, Hyde Hollywood Resort & Residences, and a few steps north of the Hyde site, the 24-story Apogee Beach. Condo construction is also planned in Dania Beach. Seaside Village is scheduled to rise on a 3.3-acre parcel that once housed the restaurant Martha’s on the Intracoastal Waterway. Developer John Passalacqua bought the

The former Fashion Mall will be redeveloped as a mixed-use property. 68 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

property at a foreclosure auction. And in Sunrise, plans for the muchvaunted $1 billion Metropica — a 65-acre mixed-use project developed by K Group Holdings and the Trillist Companies — include eight residential towers. In January, Metropica launched sales of its ﬁrst residential project, YOO at Metropica, a 28-story tower with 263 units. Because of higher construction costs, RMA’s Ginsburg expects new residential properties to be sold at higher price points. “If it’s eight stories or higher, it has to be a luxury high-rise,” he said. TRD

Metropica in Sunrise will have eight residential towers.

NET WORKING w South Florida Market Report

Working alone, together Shared office space companies gain ground — and competition — in South Florida BY ERIK BOJNANSKY

ne of the largest leasing deals in Miami-Dade last year was for 37,700 square feet in a building on Miami Beach’s Lincoln Road. The lessee: WeWork. Founded in 2010, this New York-based company specializes in creating shared workspaces for startups, private contractors, artists, small firms and international corporations — basically, everyone. WeWork, which was valued at $5 billion in December, has opened locations in nine cities across the U.S., plus two in Israel. The firm’s four floors at 350 Lincoln Road, a 1940s-era building that will be its first Miami location, will be among WeWork’s newest locations once renovations are complete. “As we build out our global network with locations in major global cities, Miami of course is on our map,” Mark Lapi-

Pipeline Brickell founders, Philippe Houdard and Todd Oretsky.

Workspace at Pipeline Brickell. 70 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

“Millennials and tech startups are drawn to co-working spaces because it’s a low barrier to entry.” —The Lab Miami Managing Director Tamara Wendt

dus, head of real estate for WeWork, told The Real Deal. He cited the city’s growing “entrepreneurial market” and its status as a “gateway to Latin America” as reasons for opening the new location. WeWork is far from first to market in Miami with the shared office space concept. Local players have been operating here since at least 2010, and many are in the process of expanding. “The demand for what we offer is very high,” said Philippe Houdard, co-founder of Pipeline, which has operated in a 23,000-square-foot office space in Brickell since 2012. So high, Houdard added, that occupancy for Pipeline’s private suites and reserved desks is near 100 percent, with tenants ranging from established

corporations such as Italian car design company Pininfarina to relatively unknown companies including Ironhack, a computer programming school, and Crea7ive, a local web design company. Monthly rates for shared offices can range from $99 for a mailbox and a phone number to more than $3,000 for a private suite. Services, much like the rates, vary from operation to operation, but typically a shared-office space in Miami offers access to refreshments, high-speed Internet, meeting rooms, and — perhaps most significantly — networking opportunities and camaraderie. “There is a sense a community,” said Ana Maria Yumiseva, owner of Frecuencia Latinoamerica, a mobile technology company that operates in Pipeline’s Brickell office. Donna Abood, managing director of the Miami office for Avison Young, said Miami-Dade is fertile ground for shared office space. “When you have entrepreneurs, you have a lot of startup businesses, and their need to collaborate is great,” said Abood, a 30-year veteran of South Florida commercial real estate. An added bonus: co-working spaces typically offer short-term leases or require no leases at all. Short-term and month-to-month leases are traits shared by an ancestor of the CONTINUED ON PAGE 72

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NET WORKING w South Florida Market Report CONTINUED FROM PAGE 70

co-working space: the serviced “executive suite” office model. In the 1980s, companies such as Regus started opening executive suite offices in Miami-Dade that provided separate businesses a shared secretary and a conference room. Unlike the new generation of coworking spaces, tenants in executive suites (which continue to operate in Miami) tend to keep to themselves. “They aren’t looking for collaboration,” Abood said. Michael Feinstein, CEO of the Büro Group, Büro Miami features open said his company was the areas as well as private suites. first to bring the collaborative co-working space model to Miami (Abood said that if Büro wasn’t the first, they were certainly one of the first). Feinstein said he had spent a lot of time in coffee shops when he worked as a resort development consultant back in 2009. Then inspiration struck. “We had not seen anyone actually [create] a shared work environment, so we went about doing it ourselves,” said Feinstein, who started Büro in Midtown Miami in 2010 with the help of friends, family and operate in Philadelphia. later on, an investment from G3 Capital. Pipeline and Büro are seeing increased Büro now provides space for more than competition in the market, and not just 100 companies (The Real Deal South Florfrom behemoths like WeWork. In Little ida is a temporary tenant). The compaHaiti, Urbana Atlantic Group and Conny operates in a second, 10,000-squareway Commercial Real Estate just finished foot location in Sunset Harbour in Miami converting a 26,000-square-foot office Beach, and Feinstein doubled his office building, once used as a BellSouth headquarters, into MADE at the Citadel, a cospace in Midtown Miami from 10,000 to 20,000 square feet last year. They are also working space that offers shared work opening additional spaces in the Copperspace in addition to a shared workshop tone building in the Miami Modern Hisarea for artists. toric District and the Engle Building in “We are just opening our doors now and Coconut Grove. about 40 percent of our office space is alPipeline is growing, too. This summer ready accounted for,” said Timothy Conthey will open a Coral Gables office, which way, managing director of Conway Comwill include specialized services for lawmercial Real Estate. “And we have not done yers, Houdard said. Pipeline is also planmuch marketing, if any.” ning to build an 80,000-square-foot space Another shared office space entity, The in Miami’s Little Haiti area. They also Lab Miami in Wynwood, just celebrated its

72 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

two-year anniversary. Its managing director Tamara Wendt said co-working spaces are proliferating because they’re attractive to young professionals. “Millennials and tech startups are drawn to co-working spaces because it’s a low barrier to entry and low cost for office space,” explained Wendt. Wendt and other sources estimate that there are 15 to 20 shared offices ventures operating in Miami-Dade. Companies providing shared office spaces are still a relatively new concept in the area and are not yet specifically tracked. Wendt noted that the growth of shared offices is not just local or national — it’s a global phenomenon. “Co-working spaces are doing well around the world,” she said. “It’s a very fastgrowing segment.” TRD

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South Florida Market Report

Funding frenzy How Miami’s major real estate projects lured capital from new sources this cycle BY INA CORDLE

hile some banks are taking a conservative approach when it comes to construction lending, investment and private equity funds are increasingly putting capital into projects to ﬁll the gaps in the current real estate cycle. International investors have also stepped up this time around, sinking their money deep into South Florida’s soil, ﬂooding the area’s new projects with funding and helping to fuel the current development boom, real estate experts say. “What we are seeing is that great projects have capital readily available, both from the equity and debt standpoint,” said Nitin Motwani, managing principal of Miami Worldcenter, the massive $2 billion, 28-acre mixed-used project in downtown Miami. Motwani, along with others in the industry, emphasized that despite banks’ stricter lending terms this cycle, major projects by developers with a proven track record for success were able to secure large loans with favorable rates. HSBC, Wells Fargo and even Bank of the Ozarks are among those actively funding projects, insiders say. “From my perspective, the capital markets for quality projects and quality

Investment and private equity funds are pouring money into South Florida projects this cycle.

operators have never been better,” Charles Foschini, the Miami-based vice chairman of CBRE’s institutional group for debt and equity ﬁnance, said. “The debt markets are very attractive, so the ability to get extremely low interest rates is available, and widely available from a number of lending sources.” Indeed, the conSOUTH FLORIDA’S ﬂuence of low interTOP CONSTRUCTION LOANS est rates for investors, PROJECT LOAN AMOUNT LEAD LENDER strong demand for Panorama Tower $340 million Wells Fargo Bank vacation homes and Oceana Bal Harbour $322 million HSBC commercial projects The Surf Club Four Seasons $290 million Fort Capital and a need for capital Hotel and Private Residences investment for develJade Signature $284 million HSBC opment is drawing Miami Design District $270 million Blackstone Group money to South FlorMiami Design District $250 million HSBC and Crédit Agricole ida, said Ezra Katz, Porsche Design Tower $214 million Wells Fargo Bank chairman of the AzShore Club $185 million Banco Inbursa tec Group. He calls it Marina Palms Yacht Club & $185 million* HSBC and BB&T “a balanced attack,” Residences from banks, private SLS Lux Brickell $170 million TPG Capital equity and lending *Two loans, $98M and $87M funds. Source: The Real Deal, company news releases and additional reporting on loans during this cycle

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“2014 was a breakout year in terms of liquidity, the likes of which I had not seen in decades,” Katz said. “2015 is turning into even more of a liquid market — not only is debt available, but equity is available, and transactions are plentiful.” Blackstone Group, Canyon Capital Advisors and Fort Capital Private are among the equity and investment funds that have stepped up their game during this real estate cycle. Insurance companies are also looking to invest in commercial real estate projects, said Adam Lipkin, assistant vice president of Grandbridge Real Estate Capital in Miami. For Class A projects a “bidding war” can even ensue. “There is lots of capital chasing deals and stretching their limits to be competitive with higher leverage, lower rates and more ﬂexibility,” he said. Amid an uncertain global environment marked by geopolitical turmoil and currency devaluations, money is still ﬂowing to CONTINUED ON PAGE 76

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proposed 44-room extended-stay hotel, Med Inn Suites & Residences, near the Jackson Memorial Hospital campus. Here’s a look at the funding behind a few of the largest projects underway in South Florida:

MIAMI WORLDCENTER

Med Inn Suites & Residences will be an extended-stay hotel.

safe havens. South Florida is among the beneﬁciaries, particularly when it comes to the über-rich who already have their money parked in the U.S. Cosmopolitan areas like Miami’s Brickell Avenue and Miami Beach are among those that foreign nationals, acting as equity investors, continue to ﬂock to. Aztec’s Katz said that he regularly gets calls from investors from all over the world looking to put their money into Miami. “Yesterday, I had a group in here from the Middle East.” For some smaller projects, the desire to invest in South Florida projects is so strong that developers are able to use crowdfunding to source capital. Omega Grid Development recently raised $7.7 million through Earlyshares.com for its

Motwani said each of the development’s many components will be funded individually, with a combination of 30 to 50 percent equity, and the remainder debt. That includes the Miami Worldcenter Mall, being developed by the Forbes Company and Taubman; a convention center hotel under development by MDM Development Group and Paramount Miami Worldcenter; and a 60-story condo tower developed by Daniel Kodsi and Miami Worldcenter partners Arthur Falcone and Motwani. The project will also get $88 million in property tax rebates over 12 years. “If you look at Miami Worldcenter’s retail component, you have a great location and a great city, top-tier sponsorship in Forbes and Taubman as the developers, and we have anchors like Bloomingdale’s and Macy’s. So the equity will come internally,” Motwani said. “The lenders are readily available on a project like that.”

The mall has not yet announced its primary lender, but it will be a nine-ﬁgure facility from a major U.S.-based bank, Motwani said. Paramount’s developers will be securing separate ﬁnancing, also likely to be from a U.S.-based bank, he said. “There is a lot of interest from different institutions,” Motwani said. “It will be a large institutional lender.” The convention center hotel is also securing its own funding, he said. “Given the product type, location and sponsorship, they have a lot of interest from a lot of groups.”

MIAMI DESIGN DISTRICT Craig Robins, president and CEO of Dacra, began buying property in the once-gritty Miami Design District in 1994, nearly two decades before L Real Estate — a private equity fund dedicated to luxury retail real estate development whose investors include LVMH Moet Hennessy — paid him an undisclosed amount to be a 50/50 partner in 2011. “We never really sourced equity,” said Robins, who is spearheading the transformation of the district into a high-end shopping destination. “My partners at L Real Estate and I capitalized the company very substantially at the beginning, and we now have 25 to 30 percent leverage on the assets, so it’s easy to borrow.” The development partnership, Design District Associates, therefore, carries 70 to 75 percent equity in the project. Today, the project is valued at $2 billion, Robins said. In all, Design District Associates controls 900,000 square feet of land, amounting to about 70 percent of the neighborhood. Last year, General Growth Properties, a Chicago-based real estate investment trust, and New York-based Ashkenazy Acquisition Corp. formed a joint venture to acquire a minority interest in the holdings of Design District Associates. Together, they paid $280 million for a 20 percent stake in the 10-square-block neighborhood. “We didn’t do the transaction to raise equity,” Robins said of the 20 percent sale. “We did it because we thought they were strategic partners, and we cashed out a little bit.” In 2012, Design District Associates closed on what was at the time the largest real estate loan that had been issued in South Florida

A rendering of the Miami Worldcenter Mall, which has not yet announced its primary lender. CONTINUED ON PAGE 78 76 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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A rendering of the Miami Design District, where a transformation to a high-end shopping area is underway.

since the downturn, a $250 million construction loan from HSBC and Crédit Agricole, Robins said. Since then, Blackstone Group has funneled $80 million into the project, and by the end of March, Robins said the partnership would borrow another $270 million from Blackstone to complete the next phase of construction.

but investment groups like Blackstone, which lent $102 million for Hyde Resort & Residences in Hollywood; Canyon Capital Advisors, which lent $157 million for SLS Brickell; and TPG Capital, which lent $170 million for SLS Lux as well as $115 million for 1 Paraiso. “Traditional banks have stepped away, and these groups have stepped in,” Matthew

“I capitalized the company very substantially at the beginning, and we now have 25 to 30 percent leverage on the assets, so it’s easy to borrow.” — Design District developer & Dacra CEO Craig Robins

J. Allen, Related’s executive vice president and chief operating ofﬁcer, said. “Interest rates are higher, but they have provided much-needed facilities for these jobs.” Allen said that as far as equity outside of company backing, Related relies on partners — insurance companies, pension funds and private funds from wealthy South Americans, as well as Related Chairman Jorge Perez’s personal funds. Depending on the type of project, the total equity portion of a deal can be as low as 10 percent, or up to about 30 percent. “If we are doing affordable housing, it is all banks and tax credits, with very little of our own money,” Allen said. At the other end of the spectrum, “on multi-family, it’s generally 70 percent debt and 30 percent equity.” For Related, equity partners have included Prudential Financial, Heitman, the Carlyle Group and Rockpoint Group, along with wealthy families from Argentina, Venezuela and Chile, who Allen declined to name. As far as construction ﬁnancing for condos, it is generally about 50 percent of the funding, with buyer deposits and equity from the company and its partners making up the difference. Multi-family projects have carried construction loans from Regions Bank, SunTrust, Bank of America, City National Bank and Citibank, according to Allen. TRD

“The asset is worth over $2 billion, and the debt is 30 percent of that at $600 million,” Robins said. The partners expect to secure separate debt funding for the hotel and condo projects that are yet to come, he said. “It will be under 50 percent loan to value,” Robins said, but nothing is ﬁnalized yet. “There are a few people that want to do it.”

RELATED GROUP’S HYDE RESORT & RESIDENCES, SLS BRICKELL, SLS LUX & 1 PARAISO While Related is best known for its proliﬁc condo development, the company is also undertaking hotel, retail and single-family developments, among other project types. During this cycle, Related’s largest construction loans have not come from banks, Related’s Hyde Beach Resort and Residences project received a $102 million construction loan from Blackstone. 78 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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South Florida Market Report

Celebrity wheelings & dealings Where the stars of the screen, race track and basketball court are buying and selling in South Florida BY KATHERINE KALLERGIS

rom race-car drivers to Hollywood A-listers, South Florida continues to play home — both permanent and temporary— to a vast array of celebrities. Luxury condominium projects such as Coconut Grove’s Park Grove, the Residences at Miami Beach EDITION and Marina Palms Yacht Club & Residences in

North Miami Beach are among the developments where the redcarpet contingent is buying and selling, and elaborate Miami Beach mansions remain a perennial favorite of this elite group. Here’s a look at some of the properties celebrities bought, sold and listed in South Florida over the past several months.

BUYING

Musician Billy Joel reportedly went into contract in February for a $22 million estate in Manalapan at 1960 South Ocean Boulevard, bringing the Piano Man’s total real estate spending spree in the area to more than $40 million since the beginning of 2014. This latest acquisition boasts waterfront views of the Atlantic and Intracoastal Waterways and has enough garage space for 30 cars.

Health-care billionaire Mike Fernandez, who released the autobiography “Humbled by the Journey,” is spending more than $10 million on two units at Park Grove in Coconut Grove — one for him, one for his daughter. The home Fernandez plans to occupy is a two-story, 5,000-square-foot condo with four bedrooms and ﬁve-and-a-half baths. 80 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Indianapolis 500 driver and “Dancing with the Stars” champion Helio Castroneves has a unit under contract at Marina Palms Yacht Club & Residences, according to the developer. The 1,904-square-foot home will have two bedrooms, a den and two-and-a-half bathrooms. A sale price was not disclosed.

Brazilian race-car driver Emerson Fittipaldi is paying $4.5 million for a penthouse also located in the Park Grove development. Fittipaldi is planning to move his family from Key Biscayne, where he has lived since 1992, to the three-bedroom 3,000-square-foot penthouse, the developers announced in January.

In December, Poonam Khubani — Bollywood actress, producer and vice president of infomercial giant Telebrands — purchased two units at Ian Schrager’s Residences at Miami Beach EDITION for a total of $34 million, according to Miami-Dade County property records.

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SELLING/LISTING

On North Bay Road, where Matt Damon, Ricky Martin, Jennifer Lopez and Miami Heat player Chris Bosh live or have lived, Shakira is rumored to be asking a “whisper price” of $12.9 million for her home — a $2 million discount from her 2013 asking price of nearly $15 million. Ben Moss, who previously had the listing and is managing director of One Sotheby’s sports and entertainment division, said the property is not on the market, but if someone came along and offered enough, Shakira would sell. The Colombian singer has owned the 8,355-square-foot, six-bedroom, nine-bathroom home since 2001, when she paid $3.38 million for it.

Former Miami Heat star LeBron James listed his Coconut Grove home for $17 million in October, then dropped the asking price to $15 million in March. Opulence International Realty’s Tomi Rose is representing the basketball player in the sale of the waterfront mansion, she said, which includes a wine cellar, custom theater, guest house and private roof deck. 82 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Shakira’s neighbor Matt Damon sold his mansion at 6020 North Bay Road for nearly $19 million in December. Jill Hertzberg of Coldwell Banker’s “The Jills” represented the actor in the sale of the 12,705-square-foot home, which was built in 1935 and features panoramic views and a separate guest house.

Gloria and Emilio Estefan listed Nena’s Villa, a Star Island mansion, for $40 million in February. The 1.34-acre estate at 1 Star Island Drive last sold in November 1993 for $1.84 million. The property consists of a main house built in 1940 and a guesthouse built in 1995, property records show. Jill Eber and Jill Hertzberg of Coldwell Banker team “The Jills” have the listing. The Estefans actually live in another nearby mansion at 39 Star Island Drive. Eber said the listed property was being used for guests and wasn’t needed anymore.

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Inside EDITION A unit-by-unit look at who’s buying what at Ian Schrager’s Miami Beach project BY FRANCISCO ALVARADO AND KATHERINE KALLERGIS

top the Miami Beach EDITION, opened late last year by Marriott International in partnership with Ian Schrager, sit 25 ultra-luxury residences that have attracted a diverse pool of deep-pocketed buyers ranging from a veterinarian-turned-Internet-entrepreneur to a Bollywood superstar. The units were designed by renowned architect John Pawson, and are located on the top floors of the 294-room EDITION hotel — a 1950s landmarked building — as well as in an adjacent 18-story tower. The residences and hotel have separate entryways, and the residences also sport an anonymous “celebrity” entrance. The units have from one to four bedrooms, and sale prices to date have ranged from $2 million to $17.5 million. According to the condominium declaration recorded with Miami-Dade county, there are 25 units in the building, although the residences’ website is still marketing 26. Douglas Elliman is the exclusive listing agent for the residences, located at 2901 Collins Avenue in Miami Beach. The posh property has already endured one public legal drama since it launched sales two years ago. A prospective penthouse buyer sued Seville Acquisition, the developer of the EDITION Residences, in February for violations of the Florida Condominium Act. According to the suit, the anonymous buyer, who had not yet closed on the $12 million penthouse in question, claimed there was a discrepancy between the advertised square footage and actual square footage. Rising Sun Ventures and Edition Penthouse Ventures — two Florida firms managed by attorney Paul Gleiberman — filed the suit on behalf of the buyer in U.S. District Court on Feb. 12. “To say that this lawsuit is completely frivolous and disingenuous is to give it the benefit of the doubt,” Schrager said in a statement at the time. “It is an outrage. We

Developer Ian Schrager commissioned 25 ultra-luxury residences for the top ﬂoors of his Miami Beach EDITION project.

intend to defend ourselves vigorously and to pursue whatever remedies are available to us to right this wrong.” The EDITION made news again in February when Marriott International sold it for $230 million in cash to companies owned by the Abu Dhabi Investment Authority as part of a deal that included EDITION properties in London and New York. The

BEDROOM 2 17’3” x 13’8”

LAP POOL 36’ x 6’4”

ROOF TOP TERRACE 56’6” x 17’1”

OUTDOOR SHOWER

INDOOR / OUTDOOR LOUNGE

ENTRY FOYER BEDROOM 3 13’10” x 11’1”

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ROOFTOP TERRACE 50’9” x 21’9”

CL FP

ELEVATOR

1602 PRIVATE LEVEL

DOWN

OCEAN TERRACE 53’10” x 7’5”

OUTDOOR KITCHEN

GREAT ROOM 55’7” x 30’11”

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UNIT 1601 & 1602 Poonam Khubani

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BREAKFAST ROOM

BEDROOM 4 14’1” x 13’

OCEAN

TERRACE 13’2” x 5’4”

1601 MAIN LEVEL

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same month, Schrager spoke about launching another EDITION in Broward County. The Real Deal looked at who was buying units in the headline-grabbing development using information from sources and MiamiDade County data. As of publication, there were 17 closed sales. Some individual owners were difﬁcult to identify because they purchased their units under LLCs.

The Bollywood actress, producer and vice-president of infomercial giant Telebrands purchased unit 1601 for $17.5 million and unit 1602 for $16.5 million on Dec. 1. The Poonam Khubani Revocable Family Trust obtained two mortgages from Bank of America for $10 million each to partly ﬁnance her EDITION purchases.

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UNIT 1405 Penthouse 1405 LLC Ian Schrager’s sister-in-law, Toni Schrager of Avatar Real Estate Services, represented the buyer in the $6 million purchase of unit 1405 in February. Penthouse 1405 LLC, a company tied to Fairholme Capital Management — led by Bruce Berkowitz — bought the 2,268-square-foot duplex, which has two bedrooms, two bathrooms, a half bathroom and a 1,400-square-foot terrace.

DOWN

UNIT 1409: William S. and Lauren B. Weisman He’s a partner with Williams, Babbit & Weisman, a corporate collections agency based in Boca Raton. Weisman and his wife purchased unit 1409 for $3 million on November 13. The couple obtained a $1.9 million mortgage from Comerica Bank to partly ﬁnance the transaction for the two-bedroom, two-bathroom unit with 1,171 square feet.

WELLNESS CLOSET

GRILL

OUTDOOR KITCHEN

OUTDOOR SHOWER

PLUNGE POOL 6’4” x 5’4”

ROOF TERRACE 60’1” x 16’1”

UNIT 1408: Stephen Lynch Lynch, who has an address in Moscow, paid $2 million for unit 1408 on Nov. 14. The 909-square-foot unit has one bedroom, one bathroom and one half bath.

OCEAN LIVING LEVEL

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CM WR

UNIT 1407: Sobe EDITION Estates LLC An entity listing Olga Tsinker of 9111 East Bay Harbour Drive in Bay Harbour Islands as its manager purchased unit 1407 for $14 million on Dec. 3.

WIC

BEDROOM 2 13’9” x 15’10”

GREAT ROOM 39’9” x 18’

MASTER BEDROOM 16’8” x 13’7” TERRACE 56’10” x 5’8”

MAIN LEVEL

UNIT 1402 Stanley K. and Nathalie R. Doobin

R WIC

MASTER BEDROOM 18’2” x 16’7”

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OCEAN

TERRACE 27’3” x 7’7”

GREAT ROOM 28’4” x 22’4”

DO AC

SUNSET TERRACE 40’9” x 7’7” CL

Unit 1401: Garetown USA LLC A Delaware Corporation listing an address in Geneva, Switzerland, paid $4.75 million for unit 1401 on Dec. 4. The 1,831-square-foot unit has two bedrooms, two bathrooms and one half bath.

CL AC

BEDROOM 2 11’10” x 11’6”

ENTRY

GALLERY 43’6” x 5’1”

Unit 1207: MMHKK Properties The corporate entity, located in the Epic Hotel at 270 Biscayne Boulevard, bought unit 1207 for $2.2 million. MMHK bought the two-bedroom, two-bathroom unit with 1,125 square feet on Dec. 10. Florida corporate records list Anthony Kristoff as the manager of MMHK and Monica Kristoff and Maria Milagros Hernaez as members.

MASTER BEDROOM 18’ x 12’7”

Unit 1205: Fondaco USA Corp. Fondaco, an entity located at 150 Southeast Second Avenue in downtown Miami, paid $4 million for unit 1205 on Dec. 4. Florida corporate records list Oscar Marchetto of Oderzo, Italy, as a director of Fondaco. The 1,575-square-foot unit has two bedrooms, two bathrooms and one half bath.

Unit 1204: RPL 1204 LLC Law ﬁrm Robert Allen Law is listed as the address for RPL 1204, which paid $3.89 million in February for unit 1204, a 1,623-square-foot condo with two bedrooms and two bathrooms.

WD CL

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TERRACE 13’ x 7’3”

GREAT ROOM 29’ x 18’2”

BEDROOM 2 13’1” x 12’8”

MASTER BEDROOM 20’8” x 13’6”

A Miami Beach veterinarian who owns eight animal hospitals in South Florida and founded the website petplace.com, Rappaport paid $4 million for unit 1206, a two-bedroom, two-bathroom condo on Dec.11. Rappaport secured a $1.5 million loan from Wells Fargo Bank to partly ﬁnance his 1,635-squarefoot purchase.

ENTRY FOYER

WIC

UNIT 1206 Jon Rappaport

FOYER

BEDROOM 2 18’4” x 10’9”

GREAT ROOM 25’6” x 25’4”

TERRACE 11’3” x 5’4”

UNIT 1208 Trust of Mark Gottwald The trust of Richmond, Virginia-based Mark Gottwald paid $3.95 million in December for unit 1208, a 1,487-square-foot home with two bedrooms and two bathrooms. The Gottwald family, which has an estimated net worth of $309 million, owns a signiﬁcant amount of stock in three publicly traded companies with Richmond connections, according to Virginia Business Magazine.

Unit 1403: Dominic Marzano The co-owner of Pompano Beach-based waste management ﬁrm Atlas Recycling bought unit 1403 for $2.4 million on Nov. 25. Marzano’s one-bedroom unit has 1,100 square feet, one bathroom and one half bath.

He’s the owner, president and CEO of Manhattanbased Harvard Maintenance, a national property management company that produces more than $260 million in annual revenue. She’s the owner, president and CEO of Harvard Service Group, a building services contractor based in Iselin, New Jersey. The Doobins bought unit 1402 for $5.2 million on December 3 and took out a $2.6 million loan from Boﬁ Federal Bank to partly ﬁnance their 2,168-square-foot purchase , which has two bedrooms, two bathrooms and a half bath.

UNIT 1406: SB Miami Properties The entity, which lists Sandra Hoffen of 1001 Brickell Bay Drive in Miami as its manager on state corporate records, purchased unit 1406 for $6.6 million on Nov. 25. The 2,255-square-foot duplex has a 1,382-square-foot terrace, two bedrooms, two bathrooms and one half bathroom.

Unit 1202 and 1501: Collins Condo Unit 1501 LLC and Collins Condo Unit 1202 LLC Both entities purchased units 1501 and 1202 for $10.5 million and $8 million, respectively, on Oct. 22. The Collins Condo corporations list Kim Davenport, a psychiatrist from Annandale, Virginia, as its manager. Unit 1202 has two bedrooms, two baths, two half baths and 2,805 interior square feet. Unit 1501 has two bedrooms, two baths, one half bath and 1,846 square feet.

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PRECONSTRUC TION w South Florida Market Report

Condo boom heads north Shift comes as Miami-Dade projects see foreign buyers wield less purchasing power BY PETER ZALEWSKI

dos during this cycle. s the tri-county region fell by six points from a year earenters the fourth year lier to 72 percent in March 2015. The modest growth of preconstruction of this current real As Miami-Dade’s share decondo units in Palm Beach compared to Miestate cycle, the preconstruction creased, Broward’s proporami-Dade and Broward has led to a more condo boom that began in Mition of the South Florthan one point drop in South Florida marida preconstruction ami-Dade in 2011 with a focus on ket share, settling at eight percent in 2015. international buyers has spread to condo market went up The unanswered question going forBroward, and to a lesser extent, up to by about seven points ward is whether domestic buyers — who Palm Beach, too. from the previous have slowly entered the presale market duryear, to nearly 20 The shift to the markets north of ing this cycle — will play a big enough role Miami-Dade, where preconstrucpercent in 2015. in South Florida’s preconstruction condo tion condo projects are generally The big jump in sector in the upcoming months and years the Broward share to offset any slowdown in international inpriced cheaper on a per square foot of the preconstrucvestment. basis, comes at a time when foreign buyers have less purchasing power tion market is being fueled by more than due to the strengthening U.S. dollar Peter Zalewski is a real estate columnist for and the slumping international economy. 4,800 new condo units The Real Deal who founded Condo Vultures, Concurrently, consumer confidence is that have been announced in the last year. As a consultancy and publishing company, as growing with domestic buyers — who tend a result of the recent flurry of preconstruction well as Condo Vultures Realty and CVR Realty to invest more actively in Broward and Palm projects, nearly 8,500 new condo units are in brokerages and the Condo Ratings Agency, an Beach counties than in Miami-Dade — as the the pipeline for Broward as of mid-March. analytics firm. The Condo Ratings Agency opU.S. stock market hovers near record highs For Palm Beach, the growth in preconerates CraneSpotters.com, a preconstruction and the national unemployment rate sits at struction projects in the last year has reached condo projects website, in conjunction with its lowest level in years. nearly 800 new units, increasing the overall the Miami Association of Realtors. total for the county to more than 3,400 conIn the last 12 months, developers have announced plans to build nearly 135 new condo towBROWARD COUNTY: CONDO PROJECTS ANNOUNCED ers east of Interstate 95, PROJECT NAME DEVELOPER UNITS with about 75 buildings in DANIA BEACH Miami-Dade, 42 in BroDANIA PLACE 555 Dania Beach LLC 9 ward and 16 in Palm Beach DEERFIELD BEACH as of mid-March. FORDHAM AT DEERFIELD BEACH Group P6-A (P6 Group) 9 With the recently anELYSIAN AT DEERFIELD BEACH Group P6-V (P6 Group) 7 nounced preconstruction FORT LAUDERDALE projects, nearly 43,000 THE GALLERIA COMMUNITY Keystone-Florida Property Holding Corp. 1,640 units are in the developICON LAS OLAS Loyca Property Owner (Related Group) 272 ment pipeline in South AUBERGE BEACH RESIDENCES The Related Group, Fortune International Group, 171 Florida for this cycle. Fairwinds Group Miami-Dade is still the GALE RESIDENCES Tiffany House 128 most active area for preRIVA (FKA GALLERIA LANDINGS) Premier Riva (Premier Developers) 100 construction condo deFOUR SEASONS PRIVATE RESIDENCES Fort Partners & Merrimac Ventures 95 velopment in the region, PARAMOUNT FORT LAUDERDALE BEACH Belmar Development Associates 95 with about 31,100 units AQUABLU FORT LAUDERDALE 920 Intracoastal (OceanLand Investments) 41 announced. But the counROYAL ATLANTIC Atlantic Residents Development 31 ty’s regional market share GALLERIA LOFTS - WEST Galleria Lofts (SobelCo) 30

88 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

PRECONSTRUC TION South Florida Market Report

Icon Las Olas

BROWARD COUNTY (CONTINUED) PROJECT NAME AQUAVITA LAS OLAS AQUAMAR LAS OLAS BAYSHORE CLUB GALLERIA LOFTS - EAST AQUALUNA AQUARIUS 15 ADAGIO ON THE BAY VICTORIA COMMONS PALM ON VENICE 10 VELA VISTA 1800 LAS OLAS BAYSHORE 740 CYMBRINAS CAY OCEAN EDGE 309 HENDRICKS ISLE PRIVAGE HALLANDALE BEACH GULFSTREAM PARK TOWER #2 BEACHWALK GULFSTREAM PARK TOWER #1 TBA (2000 S. OCEAN DRIVE) HILLSBORO BEACH 1200 THE OCEAN HOLLYWOOD TBA (FORMER DIPLOMAT SITE) HYDE RESORT AND RESIDENCES MELIÁ COSTA HOLLYWOOD BEACH TBA (4000 S. OCEAN DRIVE) H3 APOGEE BEACH OCEANBLEAU SAGE BEACH SEASIDE VILLAGE POSITANO BEACH LA RIVIERA SKY HARBOR LAUDERDALE-BY-THE-SEA VILLAS BY THE SEA (OCEANSIDE N.) VILLAS BY THE SEA (OCEANFRONT N.) POMPANO BEACH KOI RESIDENCES & MARINA

DEVELOPER Aquavita Las Olas (Ocean Land Investments)

UNITS TBA

Venice Ventures 29 (OceanLand Investments) Bayshore Beach Club (Oak Tree Management) Galleria Lofts (SobelCo) Echo Las Olas (OceanLand Investments.) AZDD Grupo Alco International Morris J. Kaplan Communities at Lakeridge The Palms Of Venice Commodore Club Condominium 1800 Las Olas 740 Bayshore Cardinal Southern Equities Rio Vista Properties (Equity Partners) Dundas Real Estate Investment Grand Birch (Jeremy Bedzow)

20 18 18 16 15 12 12 10 9 8 8 8 8 5 TBA

Pegasus Condo I (Stronach Group)

1,318 300 182 64 TBA 18

PRH-2600 Hallandale Beach (Related Group) Gulfstream Park Tower (Pegasus Condo I/Stronach Group) 2000 Ocean Drive (KAR Properties) 1200 Hillsboro Mile (Marrano Homes) Diplomat Hotel Owner (Thayer Lodging Group) Related Group & Fortune Development Sales Liberty Grande Related Group, 13th Floor Investments, & Key International Hollywood Station Investments PRH-Sian Hollywood (Related Group) 6085 Ocean LLC (Maxwelle Real Estate Group) Property Markets Group & The Development Group Seaside Hollywood North Beach Hollywood Ocean Group (Millennium Homes) Five On The Beach Waterside Hollywood Minto Villas-by-the-Sea (Minto Communities) Minto Villas-by-the-Sea (Minto Communities) Myelin Group (Invesca Development Group)

1,500 407 304 300 247 49 48 24 23 17 8 8 36 15

TBA (1350 S. OCEAN BOULEVARD) SABBIA BEACH

WH Pompano (Merrimac Ventures) Fernbrook Florida

350 303 72

POMPANO CITY PLACE

Pompano City Place

CONTINUED ON PAGE 90 A view of the mixed-use development planned around the Galleria.

WWW.THEREALDEAL.COM/MIAMI APRIL 2015 89

PRECONSTRUC TION w South Florida Market Report

Marina Palms Yacht Club and Residences Aventura

CONTINUED FROM PAGE 89

MIAMI-DADE COUNTY: CONDO PROJECTS ANNOUNCED PROJECT NAME AVENTURA TBA (3501 SUNNY ISLES BOULEVARD) HARBOUR MARINA PALMS YACHT CLUB NORTH MARINA PALMS YACHT CLUB SOUTH PUERTO AVENTURA ECHO AVENTURA PRIVÉ AVENTURA PARKSQUARE AVENTURA PLACE BELLINI WILLIAMS ISLAND AVENTURA CONDOMINIUM BAL HARBOUR OCEANA BAL HARBOUR BAY HARBOR ISLANDS ISLAND HOUSE ROYAL HOUSE KAI AT BAY HARBOR BAY VIEW 102 CLUB AT BAY HARBOR IVORY CONDO LA BOUTIQUE O RESIDENCES TBA (1165 95TH STREET) 1045 92ND STREET SERENO AT BAY HARBOR ISLANDS BAY HARBOR 1 BAY HARBOR GARDENS LE JARDIN VILLAS AT SERENO 1150 CONDOMINIUM BAY BREEZE RESIDENCES HARBOUR PARK PEARL HOUSE 9290 CONDOMINIUM BEAU RIVAGE CONDOMINIUM SERENO RESIDENCES WEST CORAL GABLES MIRACLE RESIDENCES MEDITERRANEAN VILLAGE AT PONCE CIRCLE MERRICK MANOR COLLECTION RESIDENCES ANTILLA CORAL GABLES BILTMORE PARC CONDOMINIUM FISHER ISLAND PALAZZO DEL SOL PALAZZO DELLA LUNA

DEVELOPER

UNITS

Dezer Intracoastal Mall (Dezer Development) Key International & 13th Floor Investments Plaza Group/DevStar Group Plaza Group/DevStar Group Chateau Aventura LLC (ABUS and MG3 Fund) Property Markets Group/JDS Development Group BH3 & Gary Cohen Aventura Land Ventures (Integra Investments) Weitzer Aventura (Weitzer Homes) Bellini WI LLC (Martin Z. Margulies) Aventura 34th Av LLC

600 330 234 234 205 190 160 131 82 68 5

Consultatio Bal Harbour (Consultatio USA)

240

Island Club Towers

87 72 57 42 42 41 41 41 40 38 38 36 30 30 18 17 17 17 15 14 13 TBA

Royale Club Towers Bay Harbor Residences (3D Developers) BH Bayview BH Developers The Ivory At Bay Harbor (BRICKO) BH South Island (S2 Development) S2 Development & BH-LK Investment Group Jorge Savloff & Marcelo Tenenbaum 1045 92 ST BH LLC Integra Investments & 13th Floor Investments Bay Harbor Island I Furmanos Verzasca Group & DevStar Realty BP Harbor North 1150 101 BH LLC Bay Harbor Loft (Art + Tec Development) Delta Realty Co. Verzasca Group & DevStar Realty Global Reach Investments Beau Rivage Integra Investments & 13th Floor Investments Publix Super Markets Agave Ponce Merrick Manor (The Astor Companies) Shoma Properties & CMC Group 20 Antilla Inc. (Vera Development) Alirio Torrealba & United Developers Miami

282 229 227 130 32 32

Fisher Island Holdings & PDS Development

Privé in Aventura

CONTINUED ON PAGE 92 90 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

D ELI V E R IN G C U TTIN G E D G E FI N A N C I A L ST RU C T U R I N G $125,350,000

$112,000,000

$29,600,000

126 Units Multifamily

80 Units Condominium

45,413 SF Retail

Brooklyn, NY

New York, NY

Braintree, MA

Investment Sale & Acquisition Financing

Debt Construction Financing

Debt Acquisition Financing

$29,000,000

$18,000,000

$10,300,000

376,400 SF Retail Portfolio

50 Units Multifamily

321 Keys Hotel Portfolio

Southeast Region

Brooklyn, NY

Southeast Region

Debt Construction Financing

Debt Refinancing

ONE FIRM.

S A N

F R A N C I S C O

JV Equity

C A P I TA L F U E L E D B Y I N N O VAT I O N .

B O S T O N | N E W Y O R K | M I A M I & L O S A N G E L E S O F F I C E S O P E N I N G A C K M A N Z I F F. C O M

S O O N

PRECONSTRUC TION w South Florida Market Report One Brickell on the Miami River

CONTINUED FROM PAGE 90

MIAMI-DADE COUNTY (CONTINUED) PROJECT NAME KEY BISCAYNE OCEANA KEY BISCAYNE 101 KEY BISCAYNE MIAMI MIAMI RIVER

DEVELOPER

UNITS

Consultatio Key Biscayne (Consultatio USA)

154 11

101 Sunrise (R.E.A.C. (Eric Soulavy / Oscar Segall)) CG Miami River Owner (Chetrit Group)

ONE BRICKELL RESORTS WORLD MIAMI VILLA MAGNA ARIA ON THE BAY ONE BAYFRONT PLAZA BRICKELL FLATIRON I CANVAS PARAMOUNT MIAMI WORLD CENTER HYDE MIDTOWN SLS HOTEL AND RESIDENCES BRICKELL HEIGHTS SLS LUX TBA (1900 BISCAYNE BOULEVARD) TBA (340 BISCAYNE BOULEVARD) BISCAYNE BEACH SIX MIDTOWN MIAMI BRICKELL CITYCENTRE RISE NINE AT MARY BRICKELL VILLAGE PARAISO BAYVIEWS 1010 BRICKELL BRICKELL CITYCENTRE REACH 1100 MILLECENTO RESIDENCES BRICKELLHOUSE PARAISO BAY NORTH TOWER PARAISO BAY SOUTH TOWER BRICKELL HEIGHTS EAST CENTRO BRICKELL CITYCENTRE (PHASE 2) TBA (1836 BISCAYNE BOULEVARD) BRICKELL HEIGHTS WEST BOND ION EAST EDGEWATER TRITON CENTER ICON BAY ONE PARAISO TBA (2801 NW 3RD AVENUE) ONE BRICKELL CITYCENTRE (PHASE 3) CHELSEA TOWER RESIDENCES AT BRICKELL KEY SATORI HOTEL RESIDENCES MYBRICKELL

444 Brickell Partners (Related Group) Bayfront 2011 Property (Genting Group) TWJ 1201 LLC Melo Group Northwestern Capital Corp. (Flagler East Coast Realty) CMC Group & Capital Group NR MaxMiami (NR Investments) Miami Worldcenter Associates PRH Midtown 3 (Related Group) PRH 1300 S Miami Avenue LLC (Related Group) Related Group & Allen Morris Company Biscayne 1900 Owner (Atlas Capital Group) Center Miami Eastview Development & GTIS Partners Midtown Opportunities IVB Brickell CityCentre Project (Swire Properties) The Lynd Co. & Starwood Capital Group PRH Paraiso Four (Related Group) Key International /13th Floor Investments Brickell CityCentre Project (Swire Properties) PRH 1100 South Miami Avenue (Related Group) Brickellhouse Holding (Newgard Development Group) PRH NE 31st Street (Related Group) PRH NE 31st Street (Related Group) 9SMA LLC (Related Group and Crescent Heights) NGD Centro (Newgard Development Group) Brickell CityCentre Project (Swire Properties) Fifteen 1836 Biscayne (Fifteen Group) 9SMA (Related Group and Crescent Heights) MDR Toledo Shoreline Edgewater (Sakor Development) Florida Fullview Immigration Building PRH NE 28th Street (Related Group) Thirty-First Street Property Owner (Related Group) SBT Wynwood II Swire Properties SC Investment Holdings (CMC Group) Swire Brickell Three (Swire Properties) Exclusive Trust Realty TRG Brickell Station (Related Group)

1,678 1,200 1,000 787 647 640 549 513 482 460 453 450 429 400 399 398 390 390 388 387 383 382 374 368 368 358 352 350 350 332 328 328 317 299 273 264 256 222 218 207 192

HABITAT III

Valle At West Brickell

190

Biscayne Beach

CONTINUED ON PAGE 94 92 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

The Edge on Brickell

PRECONSTRUC TION w

South Florida Market Report CONTINUED FROM PAGE 92

MIAMI-DADE COUNTY (CONTINUED) PROJECT NAME ECHO BRICKELL BALTUS HOUSE BAY HOUSE BRICKELL TEN KRYSTAL TOWER CLUB RESIDENCES AT PARK GROVE LE PARC AT BRICKELL EDGE ON BRICKELL ONE THOUSAND MUSEUM GROVE AT GRAND BAY 23 BISCAYNE BAY SWEETBIRD RESIDENCES THE CRIMSON 26 EDGEWATER FIFTY SEVEN TBA (220 NE 43RD STREET) CASSA BRICKELL TWO PARK GROVE ONE 15 FOUR GROVE ISLE 5101 BISCAYNE BOULEVARD ONE PARK GROVE HABITAT II EDGEWATER 250 WYNWOOD L'UCCELLO CONDOMINIUMS 600 BISCAYNE BOULEVARD 700 BISCAYNE BOULEVARD AUBERGE MIAMI RESIDENCES BRICKELL FLATIRON II MBAY PANORAMA TOWER (RENTAL) TBA (150 NE 7TH STREET) TBA (3601 N. MIAMI AVENUE) TBA (FORMER CIMA SITE) MIAMI BEACH DEAUVILLE HOTEL BEACH RESORT

DEVELOPER Property Markets Group/JDS Development Group

UNITS 180

PRH 4300 Biscayne Blvd (Related Group) 27 Plaza Corp. (Melo Group) IBCorp / Waterstone Capital Krystal Investment Solution (Rodolfo Ishak) 2701 Bayshore Venture (Terra Group & Related Group) Parc Brickell One (Alta Developers) The Edge on Brickell 1000 Biscayne Tower LLC Terra Grove Communities (Terra Group) 23 Plaza Corp. (Melo Group) Monte Carlo Associates (Dacra) Alpine Estates (McKafka Development Group) Edgewater Two (4R Developers) 57BB Investments (Green Dragon Group) 4201 NE 2nd Ave LLC (Helm Equities) TSG Paragon Development & The Solution Group Terra Group & Related Group RED 112 SE 1st ST LLC (Manfred Ecker) Grove Isle Associates (Eduardo Avila) Bayside 5101 Terra Group & Related Group 1700 Brickell Condo Emilia Edgewater Wynwood 250 (Fortis Developments) GASAG Corp. 600 Biscayne (Chateau Group) 700 Biscayne (Chateau Group) PRH 1400 Biscayne Trustee (Related Group) Brickell Flatiron (CMC Group & Capital Group) 700 Edgewater Development LLC (Oleg Baybakov) TWJ 1101 (Florida East Coast Realty) Miami First The Hess Group Miami River Project (KAR Properties)

167 165 155 153 152 128 124 99 98 96 96 90 89 84 82 81 73 69 65 63 38 33 30 11 6 TBA TBA TBA TBA TBA TBA TBA TBA TBA

Deauville Associates

RITZ-CARLTON RESIDENCES PELORO MIAMI BEACH 6080 COLLINS AVENUE 4000 ALTON MIMOSA 64 PARK PLACE FAENA HOUSE TBA (8701 COLLINS AVENUE)

Lionheart Capital & Elliott Management Corporation Palau North Beach (SMG Management) 6080 Collins LLC (Domus Group) Talmudic College 4000 Alton Road & M-400 Alton Owner The Mimosa 6443 Vitrium Biscayne (Vitrium Capital Investment Partners) 3425 Collins LLC 8701 Collins Development (Terra Group)

412 126 114 73 72 69 68 67 64

TBA (TERMINAL ISLAND PROJECT)

Miami Beach Port (Newgard Development)

Deauville on the Ocean

CONTINUED ON PAGE 96 94 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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PRECONSTRUC TION w South Florida Market Report CONTINUED FROM PAGE 94

MIAMI-DADE COUNTY (CONTINUED) PROJECT NAME VINTRO II HOTEL CONDO ONE OCEAN FAENA HOUSE 1215 ON WEST PALAU SUNSET HARBOR MAREA SOUTH BEACH TBA (SOUTH SHORE BEACH) RESIDENCES MIAMI BEACH EDITION 321 OCEAN DRIVE L'ATELIER THREE HUNDRED COLLINS BATH CLUB ESTATES RESIDENCES FAENA HOTEL LOUVER HOUSE GLASS BEACH HOUSE 8 NAUHAUS SOUTH BEACH CONDO TBA (10 SOUTH SHORE DRIVE) 350 MERIDIAN CONDO ATLANTIQUA 600 ALTON ROAD (RENTAL) TBA (2901 INDIAN CREEK DRIVE) NORTH BAY VILLAGE ISLE OF DREAMS AQUAVISTA SELECT CONDOMINIUMS 1555 KENNEDY CAUSEWAY TBA (1601 KENNEDY CAUSEWAY) 7940 WEST AVE. TBA (7914 WEST DRIVE) PIAVE BAHIA TOWER

DEVELOPER Vintro Villas and Encotel

UNITS 60

TRG Block One (Related Group) Tower 3315 (Faena Group) 1201 Chelsea (Domus Group and BSD Investments) Palau Sunset Harbor (SMG Management) TRG Alaska III (Related Group) South Shore Landowners Seville Acquisition 321 Ocean Drive (Aria Development Group) SMG Management, W Capital Group, Shamrock Holdings JMH Development & PSB Capital 6747 Collins Development Corp. (Peebles Corp.) 3201 Hotel (Faena Group) M 311 Meridian Owner (Mast Capital) 120 Ocean Drive (Terra Group) Ocean Grande Properties 825 Michigan Ave LLC K & R Two SOFI 350 Atlantiqua Crescent Heights and The Related Companies 2901 JMH (JMH Development/PSB Capital)

50 47 45 45 30 28 25 21 20 19 13 13 12 10 8 7 6 4 4 TBA TBA

Isle of Dreams

237 132 127 75 54 53 43 16

1755 NBV (B Developments) North Bay Causeway Brick Village 79 7940 West Drive 7914 Building Bay Village Venture (Jose Saal) Cedar Island

NORTH MIAMI BEACH RIVERWALK - BLDG. B

Biscayne Cove

RIVERWALK - BLDG. A

Biscayne Cove

SUNNY ISLES BEACH TBA (18330 COLLINS AVENUE)

Publix Super Markets

L’Atelier Residences

159 136

PARQUE TOWERS RESIDENCES BY ARMANI - CASA ESTATES AT ACQUALINA 400 SUNNY ISLES RITZ-CARLTON RESIDENCES JADE SIGNATURE TURNBERRY OCEAN CLUB PORSCHE DESIGN TOWER MIAMI CORNFIELD WEST

Parque Towers Developers (J. Milton & Associates) Armani Group, Related Group and Dezer Properties GSF Acquisition (The Trump Group) 400 Sunny Isles (Key International) Fortune International & Chateau Group Sunny Isles Beach Associates (Fortune International) Beach Club Acquisition (Turnberry Associates) 18555 Developers (Dezer Development) TNG Holdings

357 329 260 250 230 212 192 154 132 122

CHATEAU BEACH

Chateau Beach (Chateau Group)

Cornﬁeld West

CONTINUED ON PAGE 98 96 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

PRECONSTRUC TION w South Florida Market Report

Muse in Sunny Isles

CONTINUED FROM PAGE 96

MIAMI-DADE COUNTY (CONTINUED) PROJECT NAME MANSIONS AT ACQUALINA MUSE REGALIA TBA (500 SUNNY ISLES BLVD) TBA (17550 COLLINS AVENUE) TBA (18801 COLLINS AVENUE) SURFSIDE SURF CLUB PRIVATE RESIDENCES FENDI CHATEAU RESIDENCES

DEVELOPER LPLA Partners (The Trump Group)

UNITS 79

Property Markets Group and S2 Development Regalia Beach Developers The Vagabond Group / Chabad Lubavitch Center of South Florida Verzasca Group Fortune International Group / Chateau Group

68 39 22 TBA TBA

Fort Capital Management

285

Chateau Group & FENDI

PALM BEACH COUNTY: CONDO PROJECTS ANNOUNCED PROJECT NAME BOCA RATON NEW MIZNER ON THE GREEN TOWER ONE FIFTY FIVE 327 ROYAL PALM

DEVELOPER

UNITS

ELAD National Properties Vander Ploeg Derek/Compson Associates Group P6 B (Group P6)

500 152 25

DELRAY BEACH ATLANTIC CROSSING

CDR Atlantic Plaza (Edwards Companies) SW Delray One Samar 202 Florida (Samar Hospitality)

82 76 35

GULF STREAM 4001 NORTH OCEAN

OK Seahorse (Kolter Group)

HIGHLAND BEACH TBA (3822 S. OCEAN BOULEVARD)

Golden City Highland Beach 3200 Seagate (Seagate Development)

45 20

JUNO BEACH JUNO BAY COLONY

Juno Bay Colony

121

NORTH PALM BEACH WATER CLUB

Domani Development (Kolter Group)

166

PALM BEACH TBA (TESTA'S RESTAURANT SITE)

T3 Family Investments

PALM BEACH GARDENS AZURE

FW Yacht Club (Frankel Enterprises) PGA Partners 100

113 78

PALM BEACH SHORES OCEAN EIGHTEEN

Metro Park Broadway (Prodesa)

SOUTH PALM BEACH TBA (3550 S. OCEAN DRIVE)

Paragon Acquisition Group

Related Group & RSBC Real Estate Company

SOFA DISTRICT LOFTS TBA (202 SE 5TH AVENUE)

3200 SOUTH OCEAN

PGA WATERFRONT

WEST PALM BEACH ICON PALM BEACH TRANSIT VILLAGE PRESIDENT COUNTRY CLUB EIGHTY POINTS WEST PARK PALM BEACH BRISTOL TBA (550 N. QUADRILLE BOULEVARD)

Transit Village Palm Tree Golf Managemen 11022 Santa Monica Boulevard & Ave 51 Partners Northwood Trust (Parkland Companies) Flagler Investors (GAK Partners) Jeff Greene

1,059 300 200 170 105 75 TBA

3 THIRTY THREE DOWNTOWN

Sodix Fern (The Kolter Group)

TBA New Mizner on the Green

Source: Data from CraneSpotters.com as of March 11; includes condo projects that are proposed, planned, under construction or recently completed east of Interstate 95 in the tri-county South Florida region. 98 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

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GAI N I N G BAT TLE S w South Florida Market Report

Sky’s the limit on land prices Asking figures in close-in markets of Edgewater, Brickell and Wynwood hit new highs BY KATHERINE KALLERGIS

and-hungry developers from around the globe are buying up sites in Miami-Dade County for tens of millions of dollars per acre, spurring record sales. Among the sky-high prices: nearly $75 million paid for 2.4 acres in Brickell, $64 million for 7.4 acres in Wynwood, and $75 million for 4.5 acres in downtown Miami. International buyers are dominating the local land grab scene. Take the $75 million sale in December of a construction site in the Brickell submarket, an area where asking prices are now 324 percent more than what the land sold for in 2009. The sale of 1430 South Miami Avenue, for $718 per square foot, was notable not just for its price, but also because its buyers are Chinese — an afﬁliate of China City Construction and New York–based American Da Tang Group. Head north to Flagler Street in downtown Miami, and you’ll likely run into a piece of land that Moishe Mana, an Israeli investor, has purchased. “What Moishe Mana has done is probably the most notable,” Marcus & Millichap Land Group Director Ryan Shaw said, referring to Mana’s $75 million assemblage of 4.5 acres in downtown Miami. “If you want anything of size, you’re going to have to assemble properties, and I don’t think that’s cost-effective at this point in the cycle,” Shaw said. He added that if asking prices in Greater Downtown Miami haven’t peaked, they will soon. “If anyone buys anything now, they’re parking their money,” he said. The sale of 3333 Biscayne Boulevard, a 36,883-square-foot lot, and the adjacent 6,250-square-foot plot at 332 Northeast 34th Street in Edgewater helped propel neighborhood prices to $300 per square foot. Both properties sold for a total of $12.5 million in September. “The contributory value of the existing

100 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

“If you want anything of size, you’re going to have to assemble properties, and I don’t think that’s cost-effective at this point.” —Ryan Shaw, Marcus & Millichap improvements is minimal compared to the Regardless, “there have been several value of the redevelopment potential of the 2014 acquisitions within the Wynwood submarket that are tied to expectations land,” according to the Miami Downtown Development Authority’s “Greater Downof a future change in zoning with a future town Miami Annual Residential Market plan to redevelop to a more intense use,” Study Update,” released in March. the report said. Despite the huge uptick in prices, some Along the Biscayne Corridor, including Edgewater, prices have increased a submarkets are still struggling. In South whopping 365 percent — to $214 per square Dade, prices have decreased even further since the crash, from an average sale price foot — versus the average 2009 sale price, of $22 per square foot to a current asking according to data from CoStar. price of $17 per square foot. TRD In Wynwood, prices have increased 273 percent to an average of $306 per square foot. A vacant 7.4-acre lot sold for $64 million in January, or $199 per square foot. The site, at the corner of Northeast Second Avenue and 17th Street, is adjacent to a historic City of Miami cemetery. Shaw said it marked a notable price point in an area that has been undervalued. According to the Miami Downtown Development Authority, land prices in Wynwood haven’t reached downtown Miami’s prices because of restrictive zoning for high-rise development. The sale of 3333 Biscayne Boulevard lofted land prices in Edgewater.

GAINING

GROUND South Florida Market Report

MIAMI-DADE’S PRICEST LAND MARKETS Average asking price psf and percent change since the 2009 recession

AVENTURA FOR SALE $80psf

220% DOWNTOWN MIAMI FOR SALE $405psf

WYNWOOD FOR SALE $306 psf

155%

273% MIAMI BEACH FOR SALE $321 psf

BRICKELL FOR SALE $327psf

32%

324%

BISCAYNE CORRIDOR (includes Edgewater)

FOR SALE $214 psf

365% CORAL WAY FOR SALE $148 psf

CORAL GABLES FOR SALE $112 psf

92% MIAMI FOR SALE $128 psf 117%

315%

COCONUT GROVE FOR SALE $275 psf

175%

Source: Asking price is as of February 2015. Percent change is versus average sales price in 2009. Data compiled by Marcus & Millichap using data from CoStar. WWW.THEREALDEAL.COM/MIAMI APRIL 2015 101

FOOTNOTE w South Florida Market Report

Revisiting mob scenes Al Capone mansion gets facelift The mobster’s former Miami Beach abode will become a production house BY INA CORDLE

all it witness protection. Al Capone’s former mansion on Miami Beach’s Palm Island is getting a facelift and a new life — as a production house. The Mediterranean mansion, complete with a gatehouse and pool cabana, also has a new name: 93 Palm. A wealthy Northern Italian industrialist family bought the storied property at 93 Palm Avenue two years ago for $8 million. Since then, MB America, a Miami-based property investment ﬁrm that represents the owner, has been renovating the property Al Capone’s 1922 house is undergoing a renovation that will preserve its heritage. while trying to preserve its heritage, the ﬁrm’s founder and CEO Europe, he said. In Miami, the family also Marco Bruzzi said. owns Spaceby3, a warehouse at 2105 North “Our goal is to save it, to conserve the Miami Avenue in Wynwood that is used as historical building, an event and production venue, and the and at the same Orchid House, a Mediterranean villa at time, to keep the 1350 Collins Avenue in Miami Beach that original value of the is rented out as a luxury retreat, Bruzzi property,” Bruzzi said. Previous guests that have stayed there said. include Justin Bieber and his entourage. The same Italian For the makeover of Capone’s former family that owns home, MB America has brought in its 93 Palm also owns Italian architect Monica Melotti, who has experience in historic renovation. To date, around $109 million Marco Bruzzi worth of property in the group has spent $1.4 million on the

102 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

Al Capone

project, which began in December and is so far 75 percent complete. The 6,077-square-foot main house, built in 1922, sits on a 30,000 square-foot waterfront site, according to Miami-Dade

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property records. “Al Capone bought it in 1928 and he built the gatehouse and the pool cabana to make the property like a fortress so it could be safe from the street as well as from the sea,” Bruzzi said. Capone died in the Palm Island home in 1947. Local historian Paul George said Capone was a hard partier, who often held “steak and spaghetti parties with punch” at the home. Capone’s great niece Deirdre Marie Capone, who authored a book, “Uncle Al Capone,” recounted learning to swim in the saltwater pool on the estate. “We were a very close family,” said Capone, 75. “We ate our meals together, we sang together, we cooked together.” She hopes to get a movie released in 2017 about Capone’s life, which would be partly ﬁlmed at the Palm Island home. “I’m trying to do as much as I can to let people know about what made him laugh, what made him cry, what he was afraid of, and what made him do the things he did,” she said.

Miami Beach’s 728 Ocean Drive, left, was the location of a seminal scene with Al Pacino in “Scarface.”

“Scarface” building sells New York developers snap up property known for famous scene BY KATHERINE KALLERGIS

ay goodbye to “my little friend.” The Miami Beach building known for the famous chainsaw scene in the movie “Scarface” sold for $12.4 million in March. A Miami-based company sold the 6,500-square-foot 728 Ocean Drive site to New York-based Inﬁnity Group, led by Steve Kassin.

The 9,852-square-foot building is located between the Beacon and Colony hotels near 7th Street. It is currently home to a Johnny Rockets. MER Ocean Drive, the seller of the property, is managed by Mario Scarpetta Gnecco, according to corporate records. The site last sold for $8 million in May 2011. TRD

PEOPLE w South Florida Market Report

TRD hears…

A look at the social side of the real estate scene BY KATHERINE KALLERGIS

Credit: Nathan Valentine, World Red Eye

1 Hotel & Homes preview (Left to right: Craig Robins, Jackie Soffer, Richard LeFrak, Nick Loeb, Barry Sternlicht and Jason Binn.) We hear wedding bells for Dacra’s Craig Robins and Turnberry Associates’ Jackie Soffer, who attended Shore Club VIP dinner the private preview for Barry Sternlicht and Richard (Left to right: Carlos Motta, Obi Tawil, Dave Macklovitch, Josh Weissen- LeFrak’s 1 Hotel & Homes South Beach during Art Basel. stein and Carlos Junqueira.) HFZ Capital’s Ziel Feldman announced plans for the Shore Club’s renovation at a VIP poolside dinner in December. An exhibit on Brazilian design followed in the penthouse.

Design District party (Left to right: Edward Shumsky, Craig Robins and Howard Herring.) Dacra CEO Craig Robins hosted a February party in Miami’s Design District honoring Paula Crown’s art installation, “Transpositions.“

Casa Playa unveiling (Left to right: Oren Alexander, Chad Oppenheim and Jacob Abramson.) In February, Miami Golden unveiled Chad Oppenheim’s design for the spec home Casa Playa in Golden Beach, priced at $36 million.

104 APRIL 2015 WWW.THEREALDEAL.COM/MIAMI

One Thousand Museum event (Left to right: Harvey Birdman, Gonzalo Ferradas and Louis Birdman.) Hand-rolled cigars and live performances were part of One Sotheby’s International Realty, Camper & Nicholsons and Everett Rashotsky’s event for Zaha Hadid’s One Thousand Museum, honoring Fundacion El Sonido y El Tiempo.

Credit: Alberto Tamargo

Credit: Nathan Valentine, World Red Eye

Credit: Owen Kolasinski, BFAnyc.com

Gil Dezer birthday bash (Left to right: Joseph Lehman, Gil Dezer, Carlos Rosso, Tom Murphy, Kobi Karp and Ugo Colombo.) We heard Gil Dezer turned 40 in March and celebrated with a barefoot beach bash behind Trump International Beach Resort in Sunny Isles Beach. Real estate VIPs looked on as acrobats, ﬁre dancers and ballerinas provided entertainment. And the cake? A replica of Dezer’s Porsche Design Tower.

Z Palm Beach sales launch (Left to right: Tarek Kirschen, Candace Jorritsma-Altima, Chris Leavitt and Vee Paris.) Vroom, vroom: Word on the street is a Tesla Model S comes with units at Z Palm Beach Residences. Glozal Group CEO Tarek Kirschen hosted the sales launch in West Palm Beach in January. Brokers including Douglas Elliman’s Chris Leavitt of “Million Dollar Listing Miami” attended the party.

Auberge sales launch (Left to right: Brent Campbell, Kathy Ireland Mitchell, Andy Mitchell and Carlos Rosso.) The sales launch of Auberge Beach Residences & Spa in Fort Lauderdale in March featured several industry VIPs as well as future tenant and former Miami Dolphins star, Dan Marino.

Shoma Group celebration (Left to right: Luigi Boria, Ana Maria Rodriguez, Miss Universe Gabriela Isler, Masoud Shojaee and Pete Cabrera.) Shoma Group held a reception in January celebrating Oasis Park Square in Doral. Miss Universe 2013 joined Doral’s Mayor Luigi Boria, brokers and Shoma President Masoud Shojaee at the party held at the project’s sales gallery.

RESIDENCES DESIGNED for LIFE Waterfront living in the heart of Miami Beach

A Limited Collection of Exquisite Condominium Residences. Designed by Piero Lissoni. Priced From $2 Million to $40 Million. On-Site Sales Gallery Open Daily. 4701 North Meridian Avenue, Miami Beach For a Private Appointment Please Call 888-944-4928 TheResidencesMiamiBeach.com

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F O RT L AU D E R DA L E ’ S O N LY N E W T RU E B E AC H F R O N T R E S I D E N C E S An exceptional development from the team behind many of South Florida’s most desirable properties, including Jade Beach, Jade Ocean, Murano Grande, and Apogee. With lifestyle amenities and services from the brand behind award-winning residential and resort destinations, including Esperanza, Auberge du Soleil, and Calistoga Ranch. aubergebeach.com

Sales by RELATED REALTY in collaboration with FORTUNE DEVELOPMENT SALES

954. 376.6195

F ORTUN TUNE E I N T E R N A T IO NA L GROUP

Obtain the property report required by federal law and read it before signing anything. No federal agency has judged the merits or value, if any, of this property. Oral representations cannot be relied upon as correctly stating the representations of the developer. For correct representations, make reference to this brochure and to the documents required by section 718.503, Florida statutes, to be furnished by a developer to a buyer or lessee. This is not intended to be an offer to sell, or solicitation of an offer to buy, condominium units to residents of CT, ID, NY, NJ and OR, unless registered or exemptions are available, or in any other jurisdiction where prohibited by law, and your eligibility for purchase will depend upon your state of residency. This offering is made only by the Prospectus for the Condominium and no statement should be relied upon if not made in the Prospectus. Developer (as is defined herein below) reserves the right to revise or modify designs and construction specifications. All depictions of appliances, fixtures, counters, soffits, wall coverings, floor coverings, furnishings, closets, and other matters of detail, including, without limitation, items of finish and decoration, are conceptual only and are not necessarily the final finishes and details included with the purchase of a Unit. The managing entities, operators, hotel operators, amenities, resort managers, spas, restaurants, and other features referred to are accurate as of the date of this publication; however, there is no guarantee that these will not change. Dimensions and square footage of the Units are approximate and may vary with actual construction. This Condominium is being developed by PRH Fairwinds, LLC (“Developer”), which has a limited right to use the trademarked names and logos used herein pursuant to a license and marketing agreement. The Related Group, Fortune International Group, and The Fairwinds Group are not, singularly nor jointly, the developer. No real estate broker is authorized to make any representations or other statements regarding the project, and no agreements with, deposits paid to or other arrangements made with any real estate broker are or shall be binding on the Developer. All prices are subject to change. Services and products offered by any spa, resort, concierge, beach club, restaurant, or other vendor are offered for a fee. Consult the Prospectus for the site plan and the location of the Unit you desire. © 2014, PRH Fairwinds, LLC. All rights reserved. Unless otherwise noted, the content is owned by Developer and the unauthorized reproduction, display or other dissemination constitutes copyright infringement.