Florida Real Estate News

What's going on in Miami

MDM Group plans massive downtown Miami hotel

The developer that is bringing a Whole Foods to downtown Miami has plans for a 1,800-room hotel and convention center nearby.

The Miami Herald reported MDM Group has a contract to buy the site of the demolished Miami Arena where it plans a Marriott hotel tower with 500,000 square feet of convention space, a theater of 1,500 square feet, and a garage with 2,300 spaces.

MDM Group’s design would connect to the planned All Aboard Florida passenger rail station just south of it through sky bridges, according to architect John Nichols, who spoke to The Herald. The MDM project, which could cost more than $1 billion, could be completed within four years.

The current owners of the arena site are the principals of Miami World Center, which is planning an entertainment neighborhood with residences and retail of about 1 million square feet. Miami World Center had also planned to build a convention facility in the neighborhood prior to the real estate crash of the last decade. The properties Miami World Center controls were also a potential landing spot for the Sands Hotel Group, which had wanted to bring a convention centric-casino to downtown Miami.

All Aboard Florida is planning its own commercial neighborhood on land parent Florida East Coast Industries controls, that would include offices, residences and retail.

Although Nichols said MDM plans to pay for the project with private money, the project sits in the Overtown/Park West Community Redevelopment Agency district, which could provide funds for infrastructure improvements.

The neighborhood, which was a hot area during the last real estate cycle, has again become important to developers, with new condominiums planned for Biscayne Boulevard and old plans for residences being revived.

To the south, MDM Group, which built the Wells Fargo Center and a condominium, has started construction on a garage with a Whole Foods on the ground floor. It is also planning to start construction on an entertainment component that includes a high-end theater.

At the same time that MDM is making plans for a convention facility, Miami Beach could soon approve billion dollar plans for a convention center modernization that would bring an 800-room hotel, retail and other improvements to the land around the center. The Miami Beach Convention Center currently has 500,000 square feet of space, the same as what is being proposed in the MDM project.

May 17, 2013, - South Florida Business Journal

Miami Real Estate

MDM Group releases new images of Miami's convention hotel

MDM Group's planned 1,800-room hotel would have a convention facility with exhibit space as part of the project.

MDM Group's plan to build an 1,800-room hotel and convention facility in downtown Miami would locate a 110,000 square foot exhibit hall at street level, with ballrooms on top.

One of the event spaces would have large windows that would allow pedestrians to peer in and event-goers to look out onto the street, according to new renderings released Tuesday.

MDM Group's spokesman confirmed the company has a contract to buy the site of the demolished Miami Arena where it plans a Marriott hotel tower with 500,000 square feet of convention space, a 1,500-seat theater, and a garage with 2,300 spaces.

MDM Group’s design would connect to the planned All Aboard Florida passenger rail station just south of it through sky bridges, according to architect John Nichols, who spoke to The Miami Herald. The MDM project, which could cost more than $1 billion, could be completed within four years.

The current owners of the arena site are the principals of Miami World Center, which is planning an entertainment neighborhood with residences, and retail, restaurants and entertainment space totaling about 1 million square feet. Miami World Center had also planned to build a convention facility in the neighborhood prior to the real estate crash of the last decade. The properties Miami World Center controls were also a potential landing spot for the Sands Hotel Group, which had wanted to bring a convention centric-casino to downtown Miami.

South Florida Business Journal - May 21, 2013

Sunny Isles Estate News

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Brickell Real Estate News

Orlando-to-Miami train could generate $145M in fares

A proposed train that would link Orlando International Airport with Miami could generate $145 million in annual fares by 2018, according to records filed by All Aboard Florida, the Orlando Sentinel reports.

The state documents were released after Coral Gables-based All Aboard Flopoo9rida received the green light to begin negotiations for a 99-year lease that would allow the company to lay down tracks on the south edge of the BeachLine Expressway, which runs from Interstate 4 south of downtown Orlando to Cocoa.

The Florida Department of Transportation and the Orlando-Orange County Expressway Authority — joint owners of the BeachLine — previously indicated they would give up right of way for a nominal cost, but the train would have to be built to accommodate future expansion of the toll road, the Sentinel reported.

Construction could start as early as next year if agreements can be reached with the state, the expressway authority and the airport.

Miami Beach Real Estate News

The return of the cranes: Miami-Dade construction projects on the horizon in 2013

Construction starts in Miami-Dade County posted strong gains in 2012 after a deep six-year slide. With a host of projects on the horizon, the local construction outlook for 2013 is cautiously optimistic.

The cranes are coming back to Miami.

The battered construction industry is going higher in the new year after showing strong signs of life in 2012. Will Miami feel more like Manhattan in a few years? It just might.

So far, there has been more talk than action, fewer shovels in the ground than grand announcements. Even so, construction is underway on a dozen new condominiums in Miami-Dade County — something that seemed beyond the realm of possibility not so long ago.

Commercial building is picking up, too, particularly in Miami’s hot new urban core.

The construction sector, which posted 62 consecutive months of job losses in Miami-Dade as of November 2012, is expected to finally begin adding jobs in 2013.

By far the centerpiece project to date is Brickell CityCentre, a $1.05 billion shopping and mixed-use project that broke ground in June 2012 and will span three blocks just west of Brickell Avenue to the south of the Miami River.

The 5-million-square-foot mega-project by developer Swire Properties will include a department store, luxury shops, restaurants, a hotel, office towers and condominiums. It is expected to be connected with bridges and covered walkways and to cement downtown Miami’s emerging image as a trendy place to work, live and play.

In Brickell alone, three new condominium projects already are under construction: Jorge Perez’s Related Group is building Millecento, a 42-story tower with 382 units, and MyBrickell, a smaller project with 28 stories and 192 units shoehorned onto a 0.4-acre site. Newgard Development Group is building BrickellHouse, a 46-story, 374-unit project.

More building, much more, is coming.

“We’re going to see a lot of cranes popping up in the first and second quarter, and a year from now, we’re going to see cranes all over the skyline,” said Tom Murphy Jr., chairman and CEO of Coastal Construction, a large Miami builder that is involved in various projects, from hotels to condominiums. “I believe we as a community — South Florida, especially Miami — will build more in the next 10 years than we did in the last 15.”

Among a long roster of projects, Coastal was tapped by developer DACRA for a major renovation project in the Design District, which in 2012 marked the arrival of luxury fashion retailers such as Cartier, Hermes, Louis Vuitton, Celine, Christian Dior and Prada, adding a new dimension to an area already known for home furnishings and restaurants.

DACRA president and CEO Craig Robins has a broader plan to bring in 40 to 50 luxury brands to the Design District by 2014. The area will have a pedestrian promenade, rooftop gardens and public plazas, in keeping with Miami’s emerging urban scene.

The focus on commercial development in Miami’s urban core, is all about providing more services to cater to the new residents who want everything within walking distance.

Spanish developer Espacio USA will break ground in 2013 on the first phase of a $412 million mixed-use project at 1400 Biscayne Boulevard. Starting with one 103,000-square foot office tower, the project will eventually include retail shops and residential units.

“It’s becoming much more of a New York lifestyle, and we’ll continue to see that,” said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors in Coral Gables.

Construction starts in Miami-Dade County posted strong gains in 2012, rising 62 percent through November to $3.16 billion from the same period of 2011, according to McGraw-Hill Construction. The recovery in 2012 followed six consecutive years of dramatic declines from the 2005 peak when construction starts hit $7.94 billion in Miami-Dade.

Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction, said because construction starts lead the pace of construction spending by about a year, “The substantial increase for construction starts in 2012 for Miami-Dade county means that construction spending in 2013 will increase, and along with it, construction employment.”

Brickell CityCentre, for example, has about 100 people working, but their ranks will swell to 300 in the next six months and eventually reach up to 3,500 workers, according to Chris Gandolfo, senior vice president of development for Swire. There will be 11 cranes on site this year.

“I would expect 2013 to see a significant increase in construction employment,” said Brad Meltzer, president of Plaza Construction, which has lined up apartment, condo, hotel and shopping-center work around Miami-Dade and has been staffing up.

“We’re cautiously optimistic,” Meltzer said. “We have a significant amout of work under contract currently, but you never know if that is going to stay — like last time.”

When the financial crisis hit, many projects were abruptly shelved or canceled.

Meltzer said investments in Miami by prominent national real estate investment firms like LeFrak, LNR and Simon Properties bode well for the area: “It’s great to see big strong clients in South Florida.”

Leading the surge in new development: nearly 100 condominium projects have been proposed in South Florida since the downturn, according to Bal Harbour-based Condo Vultures, which tracks the market. Most experts predict only a fraction of those will come to fruition.

A key driver will be the availability of financing. Lenders, still leery in the wake of the real estate crash, are balking at backing new condos. So far, nearly all the new condominium projects are being financed by the unit buyers, who typically put up 50 percent to 80 percent of the purchase price over various stages of construction.

That financing model — which essentially amounts to an unsecured loan to the developer — has attracted almost exclusively foreign buyers, primarily Latin Americans drawn to Miami as an investment safehaven. Political uncertainty in countries like Argentina and Venezuela fuel the trend.

Even so, many people doubt that foreign demand for fancy condos will be sufficient to sustain the many projects that are being talked about.

“Are there going to be enough people to fund the construction of those units? I’d be surprised,” said Jack McCabe, founder and CEO of McCabe Research and Consulting. “I think 25 percent to 33 percent of the projects announced actually will get built.”

Many of the proposed projects are ultra-luxury towers along the ocean, from South Beach to Sunny Isles and Aventura with amenities such as wrap-around terraces, private pools and individual elevators.

Coconut Grove is also a magnet for luxury development, albeit at lower density. “There isn’t a square inch of the Grove that isn’t being looked at,” Alicia Cervera Lamadrid, managing partner of Cervera Real Estate, which markets new condominiums for developers, said at a real-estate roundtable in November.

The new condominium projects are rising in a sort of parallel universe even as the suburbs remain burdened by thousands of distressed homes. Miami-Dade Circuit Court has a backlog of 53,000 foreclosure cases, and new filings have been rising since a settlement last spring between big banks and 49 state attorneys general over lenders’ practices provided clearer ground rules.

As more foreclosures and short sales are processed, they are sure to constrain housing prices, which have been rebounding off recession lows.

While lenders are generally skeptical of condominium projects, they are readily lending for the construction of new rental apartments, an area expected to grow solidly.

Rents are rising; occupancy is strong. For many people, buying a home isn’t financially feasible. Others simply prefer to rent. At the same time, the supply of rental apartments in Miami-Dade was gutted during the boom when many were converted to condominiums.

Miami developer Armando Codina, who previously focused on commercial projects and industrial parks, and Miami-based Adler Group, a major commercial developer, both are pursuing rental apartment projects in Miami-Dade to capitalize on the robust demand. Institutional lenders — insurance companies, real estate investment trusts and pension funds — drawn to the steady income from rental projects, have been eager to invest long term, making banks comfortable with financing construction.

Industrial construction has also picked up. With industrial real estate sale prices in Miami-Dade County hitting record levels and vacancy rates dropping, last year marked the beginning of a mini building boom under way in the warehouse district west of Miami International Airport.

After several years when industrial warehouse construction ground to a halt in Miami-Dade, there is now nearly one million square feet of warehouse space under construction, plus another two million square feet planned. Much of the space is being built without tenants because the owners are so confident in the market’s future.

“Institutions with a lot of capital tend to go in areas that have the highest potential for growth,” said Steve Medwin, managing director of South Florida for Jones Lang LaSalle. “Miami is really the shopping cart for Latin America. The growth of international trade is giving us a leg up on the recovery compared to the rest of the country.”

From The Miami Herald – Jan. 4, 2013

Hallandale Real Estate News

Philippe Starck firm sues Related companies

Architecture and design firm yoo, co-founded by Philippe Starck, has sued The Related Group of Florida and a Mexican affiliate for $708,560 plus interest, The Miami Herald reports.

Yoo claims in a suit filed in Miami-Dade Circuit Court that it is due payment based on the sale of units at Icon Vallarta in Puerto Vallarta, Mexico, according to the Herald.

Starck continues to work on projects, including condo-hotel SLS Brickell, with Miami-based Related and its Chairman and CEO Jorge Perez.

South Florida Business Journal – May 22, 2013

Sunny Isles

In Fort Lauderdale

Miami Beach Real Estate Information

Homes for sale are in short supply

The supply of homes for sale has been shrinking for six months and shows no improvement this month – a bad sign for buyers. Listings of existing homes for sale were down 14 percent year-over-year in the first two weeks of January, according to Realtor.com, which tracks 146 markets nationwide. In Phoenix, where prices were up 24 percent in November from a year earlier, new listings through the first three weeks of January were the lowest in 13 years, says Mike Orr, real estate expert at the W.P. Carey School of Business at Arizona State University. That means “prices need to go up more” to bring more sellers to market, Orr says. Nationwide, the supply of existing homes for sale fell to 4.4 months in December, based on the current monthly sales pace, the National Association of Realtors® (NAR) says. That’s the lowest in more than seven years. A six-month supply is considered balanced between buyers and sellers. Home prices in November were 7.4 percent higher on average than a year earlier, according to CoreLogic. Real estate experts had expected that rising prices would spur more sellers trapped by years of falling prices. Instead, January’s listing data “is the same sad story,” says Glenn Kelman, CEO of online brokerage Redfin. If sellers don’t have to sell, “They’re holding on, thinking they’ll wait for prices to go up even more.” Redfin’s data, covering 19 major markets, mostly in the West, show new listings down 29 percent the first two weeks of January vs. a year earlier. Scarce sellers aren’t the only reason for shrinking supplies. There are fewer distressed properties for sale. Foreclosure sales were down 7 percent through the first nine months of last year from the same period in 2011, RealtyTrac says. Meanwhile, demand is up. Existing home sales were up 9.2 percent last year, NAR’s preliminary data show. New home sales rose almost 20 percent in 2012, the government reported Friday, while supply fell to 4.9 months in December from 5.4 months a year before. New home construction is still weak. In each of the past three years, builders completed fewer than 500,000 single-family homes. That’s less than half the number built annually from 1993 to 2007, according to the Census Bureau. Homebuilders would need to double production this year to alleviate the tight supply, estimates Lawrence Yun, NAR’s chief economist. That’s not likely. Home supplies nationally will stay at about the five-month level much of the year, Yun predicts. Some markets are far below that. California’s supply of existing single-family homes for sale stood at 2.6 months in December, the California Association of Realtors says. Whether the supply of homes for sale will expand to meet demand is a “big question for the market” in 2013, says Jed Kolko, economist for real estate website Trulia. This year is also the first since the housing bust began that falling inventories are not necessarily a good thing, he says. Listings may still swell in time for the busy spring selling season, says Stan Humphries, Zillow economist. He says listing activity next month will be key. If it doesn’t pick up by then, the spring season is likely to bring a lot of price increases, he says.

From FloridaRealtors.org - Jan. 31, 2013

Hallandale Beach Condos, and Sunny Isles Condos

In Hallandale

South Florida Foreclosures & Short Sale Information

Harvey Hernandez's Newgard plans 352 condos next to Miami's Gusman

The 352-unit Centro condominium is planned for a site next to the Olympia Theater at the Gusman Center for the Performing Arts in downtown Miami.

Newgard Development, the builder of BrickellHouse, is the developer behind the 36-story Centro project, as it is being marketed today. Harvey Hernandez is a principal of the development group.

The 18,450 square foot site is the location where The Related Group had planned the Loft 4 condominium. It is at 151 SE First St., which is about a half a block north of the Met Miami site, where a garage with a Whole Foods is currently under construction.

As part of the new plan, Newgard is asking for a variance regarding the site’s required 1,120 parking spaces because of its proximity to Metromover and other public transportation, according to its application with the city. Related pursued the same strategy for its Loft condominium towers, with the developer making a deal with the city’s Miami Parking Authority to accommodate unit owners and users.

In January 2008, the Business Journal reported that Related had canceled its contract to buy the lot where it planned Loft 4. At that point, the residential market had stalled and within a few months, financial institutions in New York began collapsing, throwing the economies of the world into a tailspin.

Peter Zalewski, of Condo Vultures, said the Newgard plan is interesting because it is part of a trend in the new residential development cycle. Many of the sites where condos were proposed, but not built during the last cycle, are being re-evaluated and, in some cases, pursued again by a different group.

Marina Palms Yacht Club & Residences in North Miami Beach is one such example as is Island Gardens on Watson Island, with Related evaluating the latter as a possible investment.

Ironically, Cervera Real Estate will be handling sales at Centro, the same brokerage that would have sold units at Related's Loft 4.

From the South Florida Business Journal – March 26, 2013

Hollywood Beach Condos

What is exactly my function as a Florida real estate agent?

Although I specialize in Hallandale Florida real estate, I can assist my clients with any and all of their needs in the South Florida area. Prices kept their descending tendency during 2008 and beginning of 2009, in Miami real estate, as well as Miami Beach Real Estate. In Brickell Short Sales and Brickell Foreclosures, there are many great opportunitiesWhy not make the most of the present buyers' market? I can search on your behalf all of the South Beach real estate for sale, as well as Surfside real estate, to find the best deals in South Beach foreclosures and short sale propertie. With prices being reduced so quickly, not only Miami Beach real estate sold as short sale or foreclosure is attractive; Very often, we are finding motivated sellers of South Florida real estate who understand the buyer's market and are ready to negotiate incredible opportunities to purchase real estate in Miami.

I am constantly educating our customers on the fact that they should not assume that real estate in Sunny Isles is best purchased as Sunny Isles short sales or a Sunny Isles Foreclosures. South Florida Short sales and Foreclosures situations could have many pitfalls. I have seen buyers locate Hollywood-Florida properties and Hollywood Beach real estate situations where a seller wants to cash in the small equity still available in his property, and is just not in a distressing or foreclosure condition. Many South Florida oceanfront properties are being gradually absorbed by out-of-town buyers taking advantage of this once-in-a-lifetime-opportunity to own an oceanfront luxury condo in South Florida. Even new homes in Pembroke Pines, or homes in Weston, or Coral Springs homes can be acquired in the same manner. The best real estate in Aventura will not usually be a foreclosure property, but motivated sellers with Homes for sale in Aventura . In Sunny Isles Beach, we have noticed the same pattern. And so many great Sunny Isles luxury condos, on the beach, or across the street from the beach are being sold at prices often half of what they were a couple of years ago.

FORECLOSURES AND SHORT SALES IN SOUTH FLORIDA. Many of our international and domestic clients are asking about Hallandale real estate and Hallandale short sales opportunities; as well as real estate in Aventura and Aventura foreclosures. While it is true that a buyer's market has created a substantial amount of inventory in the form of both short sale properties (properties in which the home value is less than the outstanding mortgage loan.) and foreclosures, this does not necessarily mean they are a good buy. However, they constitute a good field for a search of South Florida foreclosures and South Florida short sales.

Of course, the condition of the property is an important factor. Imagine a seller who is almost sure to end up losing his condo. It often happens that the property is neglected during these long months of uncertainty. No money will be invested by its owner and repairs will be reduced to a minimum. It's not as often as you imagine, but homes could sometimes be deliberately damaged or stripped of accessories and appliances. These are issues that affect the marketability of the property; and while they have to be factored in when presenting an offer for a South Florida Short sale, they can also be a great negotiating asset. Banks do not want to invest a penny in a distressed property. Therefore, many prospective buyers will refuse to even consider a property where they would have to invest time and money to fix and repair. That will automatically limit buyers presenting offers. And a smart real estate investor knows that for every dollar spent repairing a home, he might get a reduction of two or three dollars in the purchase price. In all cases, if you are shopping for a South Florida short sale you better be prepared to be patient. If you are in a hurry or have limited resources, most short sales are not going to work for you.

They typically require far more effort on the part of all parties involved and can be very cumbersome and frustrating. In the Sunny Isles Beach area there are many Sunny Isles Beach Condos going through this process right now. They range from Luxury waterfront condos in Sunny Isles, luxury homes in Golden Beach, Waterfront homes in Golden Isles, to Miami Beach or South Beach Condos. The economic downturn has affected homeowners in all parts of South Florida and at all price levels. I try to recommend that our clients look to purchase homes that are not South Florida short sells but great values directly from motivated sellers. These are usually the best prospects for finding great Hallandale Real Estate, and good values in all South Florida real estate. If you think you might be a candidate for purchasing a short sale property or a foreclosure please let me know. I have a good experience in both selling and buying these types of properties in Aventura and Hallandale, as well as Fort Lauderdale and Hollywood Beach.

Sunny Isles Beach Real Estate News

Sunny Isles Beach Real Estate for Sale

Midtown Miami sees the return of 97% financing

Write down Midtown Miami and March 20 as the day 97 percent financing returned to a condominium project in South Florida.

This announcement from the owners of Midtown Miami and their broker Fortune International Realty is another significant bellwether in the condo market, which has been fueled by cash in the new cycle.

The goal is to advance sales at the completed 33-story 4 Midtown tower, The Miami Herald reported.

Midtown Miami Owner Gold Krown Financial has been marketing units for sale at 4 Midtown for some time. Fortune was able to get approval for the low down payments, which could be as little as $8,300 for a $276,000 unit, through a program targeting emerging neighborhoods, George Fraguio, a financing expert at Fortune, told the Herald.

The last big real estate marker of an industry recovery was the $160 million financing of the ultra-luxury, 79-unit Mansions at Acqualina tower in February. The Midtown announcement and the financing of Acqualina are yet another sign that South Florida condo recovery is gaining traction in the eyes of lenders. If that is the case, developers will follow.

So far, the focus from the development side has been on the high-end luxury condo projects because demand for the units, paid for in cash, seemed unquenchable.

Buyers from Latin America and elsewhere were putting down as much as 80 percent of the market value of the unit prior to the completion of the project, a deposit vehicle that acted as construction financing for developers.

This kind of individual financing for the purchase of mid- to entry-level condominiums, if other developers can leverage it, could open up the market to another wave of condo development. The previous wave transformed South Florida, and remade downtown Miami into a vibrant, residential draw for professionals.

However, small deposit-purchases also fed a frenzy, which spurred speculators to sign contracts for multiple units, many of which walked away from closings as projects were completed. Many developers, left with units with depreciating values, eventually defaulted on their construction loans, a trend that was realized throughout South Florida, especially Miami-Dade County, during the last decade and that helped lead to a financial meltdown of the economy.

Phil Spiegelman, principal of International Sales Group and Related ISG, said for now observers should perceive the financing of Midtown units as a one-off. Lenders are not indicating that they are any more confident in the financing of individual unit purchases, for now.

March 20, 2013, South Florida Business Journal

South Florida Real Estate Information

Pending home sales slip on constrained inventory

WASHINGTON – March 27, 2013 – February pending home sales flattened with limited buyer choices, but remained at the second highest level in nearly three years, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contract signings, slipped 0.4 percent to 104.8 in February from a downwardly revised 105.2 in January, but is 8.4 percent higher than February 2012 when it was 96.6. Contract activity has been above year-ago levels for the past 22 months; the data reflect contracts but not closings.

Before January, the last time the index showed a higher reading was in April 2010 when it was 110.9, shortly before the deadline for the homebuyer tax credit.

NAR Chief Economist Lawrence Yun said limited inventory is holding back the market in many areas.

“Only new home construction can genuinely help relieve the inventory shortage and housing starts need to rise at least 50 percent from current levels,” he said. “Most local home builders are small businesses and simply don’t have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market.”

The PHSI in the Northeast declined 2.5 percent to 82.8 in February but is 6.8 percent above February 2012. In the Midwest the index rose 0.4 percent to 103.6 in February and is 13.2 percent higher than a year ago. Pending home sales in the South slipped 0.3 percent to an index of 118.8 in February but are 12.1 percent above February 2012. In the West the index increased 0.1 percent in February to 101.4 but is 0.8 percent below a year ago.

Yun projects existing-home sales to rise about 7 percent in 2013 to approximately 5 million sales, which is near the current level of activity.

“The volume of home sales appears to be leveling off with the constrained inventory conditions, and the leveling of the index means little change is likely in the pace of sales over the next couple months,” he said.

The national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low but trend up slowly and reach 4 percent in the fourth quarter.

From FloridaRealtors.org – March 27, 2013

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