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February 6, 2014
Fractured Condo Deals Still Doable
Just because the South Florida condo market has sprung back from the dead doesn't mean there are no bulk condo deals yet to be done, Franklin Street Services' David Reinke tells us. There's still an inventory from failedcondo conversions of the last cycle. (They're lonely and waiting for someone to take them home, or rather, make them home.)
Most of the condo inventory from the last construction boom has been absorbed, bulk condo sales will continue through 2014, tied to inventory from failed conversions of older product, David says (snapped with colleagues Elliot Shainberg and Deme Mekras to his left). Buyers of these bulk units have various plans, ranging from collapsing the HOA and reverting to a pure rental property, to focusing again on condo sales. Recently Franklin Street brokered the sale of 102 multifamily units for a total of more than $8M, located in three different properties in Miami, Hialeah, and Hollywood Beach. All of the buyers were foreign investors. (That's more fun because the money is different colors.)
Compared to straight multifamily deals, there are far fewer options for financing, David adds. Franklin Street just listed a good example of a bulk opportunity, 100-plus condo units in Broward County, which he says “the ultimate buyer of which will most certainly be selling the units individually.” Pictured: the Jaclyn Apartments in Hialeah, where some of the previously mentioned 102 units are. Franklin Street repped the seller, Jaclyn LRP. The buyer was a Panamanian investor who paid $6M. .
Investors Still Hot for South Florida
CRE Florida Partners and Rauch Lupo Robertson & Co (CRE) prez Michael Rauch tells us 2014 promises to be a very strong year in South Florida commercial real estate investment volume. New investor confidence in the market spurs a lot of interest whenever the company brings new product to market, he says. The continuing loosening of underwriting metrics—ever so slowly, but steadily—is also helping rev up investor demand, both among smaller investors and institutions.
Naturally, some property types will continue to attract more suitors than others (and what do you buy an office building for Valentine's Day?). “While we believe the Class-B/C office segment will continue to struggle this year, while industrial, medical, and retail will continue their rebound,” Michael says. CRE recently tapped Michael, previously a principal and senior partner, to be president of the firm. As an investment and leasing specialist, he says, now's the time for the company to expand, he says. CRE plans expansion through acquisition or new partnerships and will add brokers in Dade, Broward, and Palm Beach counties this year.
The Greener the Better
The 114k SF Aventura Optima Plaza, an office and medical project that's on track to become only the second high-rise office building in Florida to be LEED Platinum, recently inked leases with Fossil Partners (a global design firm) and Soffer Health Institute, for a combined 15k SF. Colliers International South Florida EVP Randy Olen (pictured) repped the landlord in both deals, while CBRE's Ryan Ackerman of repped Fossil Partners and Florida Medical Space's Kyle Sorel repped Soffer Health Institute.
Elements of green might be standard in many office buildings these days, but Randy explains it's still important for a property to differentiate itself as much as possible with environmentally friendly design. Among other features, Aventura Optima Plaza just completed the 20k SF green rooftop facility above the parking structure, which includes an exercise room and outdoor jogging trails. (But no water balloons allowed.)
Ready, Set, Slice!
Housing Trust Group chairman Randy Rieger (fourth from right) was on hand recently with local officials, finance execs, architects, and others for the ribbon cutting of HTC's Pine Run Villas, a 63-unit affordable housing development at 4728 Big Ben Ln in Lake Worth (though it looks more like a ribbon shredding to us). According to Randy, the development is already 100% leased. It was financed with $5.5M in HUD Neighborhood Stabilization funds and HOME Program loan funds, along with a $4M construction and permanent financing loan from Citi Community Capital and tax credit funds through Raymond James.
Send Us Your Fish Tales: Both True and True But Unverifiable
Want to combine the two things you love? Go fishing, and you can win a ticket to a Bisnow event. We're rewarding people in every market we cover. Send us your biggest catch or your biggest fish story, and we'll pick the best. So if you catch tiny bass but tell big stories, you can still win. Need some fishing tips? Ask Quantum Real Estate Advisors EVP Jordan Kaufman in Chicago (above, on a recent fishing trip in Wyoming). The prize is a ticket to a Bisnow event in your market (or another market if you're looking for an excuse to find new lakes, streams, ponds, and oceans). Send your stories and pics to Sibley Fleming: sibley@bisnow.com.
The other day we held the door open for a clown. We thought it was a nice jester. Send ideas and suggestions and worse puns to dees.stribling@bisnow.com
