This Week's South Florida Deal Sheet
New York-based PMG and E11even Partners secured a $262M construction loan to begin construction on the second tower at their E11even Hotel & Residences at 90 Northeast 11th St. in Downtown Miami.
Madison Realty Capital provided the loan, and the deal was brokered by JLL, according to a release.
PMG and E11even Partners had already secured a $150M construction loan from Starwood Property Trust for the first tower, which is expected to be completed a year ahead of the second, The Real Deal reported.
The property was originally slated to have 836 units before the developer announced plans to increase the number of units to more than 1,000. More than 80% of the units are sold, according to the release.
SALES
Service Properties Trust paid $165.4M for the 250-room Nautilus Hotel at 1825 Collins Ave. in Miami Beach, the REIT announced. The hotel was rebranded as a Sonesta, and the new owner plans to close the hotel next summer to begin a $25M renovation of the property that it hopes to complete by early 2025. The hotel would reopen under Sonesta’s lifestyle brand called The James. The seller was a subsidiary of the New York-based real estate investor Quadrum Global called Quadrum Miami Beach LLC, according to deed records. Quadrum developed the hotel as the Arlo Miami Beach.
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ROVR Development paid $23.5M for a 6.2-acre parcel along the Miami River west of Allapattah, completing a 10.2-acre assemblage where it is planning to build around 1,600 residential units across several phases, according to a release. Deed records indicate that the seller was A+ Mini Storage Airport East LLC, which is managed by Steven Naturman. The development is called The River Rapids, and its first phase will include two buildings called Tides and Moorings that will have around 600 units and be built on the previously purchased land. The developer is planning another 1,000 units to be built across three phases on the newly purchased parcel, according to the release.
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A joint venture between Key International and 13th Floor Investments paid $8M for a 4.2-acre vacant site in Coral Springs, where the Miami-based developers are planning a residential and retail development, according to a release. The developer has been working with the city on the project, which is at the northeast corner of Sample Road and University Drive, and is planning an eight-story multifamily building with 377 units, 11.5K SF of ground-floor retail space and a 629-car garage. The parcel was previously owned by grocery store chain Publix, according to deed records.
CONSTRUCTION AND DEVELOPMENT
A new healthcare facility for Adtalem Global Education was completed at the former USA Today printing and distribution facility at the Miramar Park of Commerce, according to a release. Adtalem is leasing the 56K SF property at 10315 USA Today Way from investment firm CRG, which paid $18M for the property in a September 2021 transaction brokered by Avison Young. The new facility includes a healthcare education center for Adtalem-run Chamberlain University, administrative offices for the organization's medical schools and a tutoring service called the Medical Education Readiness Program. Adtalem tapped CRG to identify and acquire the site, and the developer worked with Excel Construction in Davie to complete the build-out, according to the release.
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Construction started at the mixed-use Nora development in downtown West Palm Beach with developers NDT Development, Place Projects and Wheelock Street Capital working on a 154K SF adaptive reuse of former industrial buildings on North Railroad Avenue, according to a release. The retail project is being funded by a $123M initial investment and will include fine and casual dining, boutique fitness offerings, lifestyle retail, a social club and creative office space. It is the first phase of a development that is expected to include around 2M SF of residential and office space and a 200-key hotel. The developers say the project will create more than 1,000 jobs in the retail, service, hospitality and creative industries.
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IHG Hotels & Resorts broke ground on the EVEN Hotel Sweetwater — Doral with plans to open before the summer travel season in 2024, according to a release. The global hotel operator is partnering with an affiliate of Miami-based real estate company ASI Global on the 125-room development, which is billed as a fitness-focused hotel with amenities like in-room Peloton bikes and a state-of-the-art athletic studio. It will be located off Northwest 97th Avenue in Doral.
LEASES
Morgan Stanley renewed its 39K SF lease and added 12K SF to its footprint at the Financial Center at the Gardens in Palm Beach Gardens. The lease represents the largest office lease completed in northern Palm Beach County in over two years, according to a release. The 190K SF Financial Center at the Gardens was built in 1997 and is undergoing a $2M exterior upgrade. It is owned by New York Life Real Estate Investors, which was represented by Anthony Librizzi and Tara England of Cushman & Wakefield. Morgan Stanley was represented by JLL’s Jason Gold and Adam Bernstein.
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Flex! Crunch Fitness signed a 53K SF lease for a full building at 9919 West Oakland Park Blvd. and plans to open a new location at the site in late 2023 or early 2024, according to a release. The freestanding building was previously occupied by 24 Hour Fitness. The owner, Realty Income, was represented by Katz & Associates’ Jon Cashion and Daniel Solomon. Stacey Mooney from The Retail Edge and Mercedes Loftus from Strategic Retail Advisors represented Crunch Fitness.
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Sunbeam Development has signed two tenants for a total of 26K SF at Miramar Park of Commerce. Turner Construction Co. will relocate its Miami office to nearly 15K SF at 2902 Executive Way. Wetherill Associates, an automotive parts manufacturer, will relocate to 12K SF of office and warehouse space at 2841 Corporate Way after the company sold a separate building it owned in the business park. Sunbeam was represented by Jonathan Kingsley of Colliers, and Turner Construction was represented by JLL’s John Marshall.
THIS AND THAT
Boca Realty, a brokerage with more than 100 agents that has generated more than $250M in sales volume in the last few years, joined The Keyes Co., according to a release. Boca Realty will keep its office at 200 West Palmetto Park Road as part of the acquisition, and the office will be converted into the Boca East office for Keyes. Boca Realty was founded in 2015 by Nick Rotenberger and specializes in luxury and waterfront homes, multifamily investment properties, commercial real estate and foreclosure transactions. It is the second brokerage to join Keyes in 2023 after the 60-agent Mizner Grande Realty was folded into Keyes’ Boca Raton office earlier this year. Keyes is in active conversations to merge with similar brokerages across Palm Beach County and the Treasure Coast, according to the release.
CORRECTION, JUNE 6, 10:30 A.M. ET: A previous version of this story misstated the number of units E11even Hotel & Residences was originally slated to have before the developer expanded the unit count. The original unit count was 836. Additionally, a photo caption said misstated the amount of the construction loan. This story has been updated.
