This Week’s South Florida Deal Sheet: Office Near Miami Airport Trades For $68M
Franklin Street Properties sold the 5505 Waterford office building for $68M, according to a release.
The buyer of the 213K SF property in the Waterford Business District wasn't disclosed. 5505 Waterford serves as the headquarters for U.S. homebuilder Lennar, which signed a 16-year, 156K SF lease there in 2019. Unique Vacations, an affiliate of Sandals Resorts, signed a 53K SF lease at the property last year.
The building recently underwent a renovation that updated the lobby and added a tenant lounge and 5K SF fitness center. It had previously been the headquarters for Burger King, which vacated in 2018.
Franklin Street was represented by CBRE brokers Christian Lee and Sean Kelly. They were supported by members of CBRE’s debt and structured finance group Amy Julian and Andrew Chilgren.
SALES
A Blackstone affiliate sold the Pinebrook Pointe apartments in Margate to Miami-based Bar Invest Group for $93M, the South Florida Business Journal reported.
The 394-unit garden-style complex west of Pompano Beach was built in 1988 on 33 acres at 3495 Pinewalk Drive. Miami-based BankUnited provided a $50M loan for the sale, which breaks down to $236K per unit.
Bar Invest Group CEO Herve Barbera told the SFBJ that he acquired the 95%-occupied property at a 6% capitalization rate. He plans to renovate the common areas and the remaining 40% of units that hadn't already been updated by Blackstone, which made a tidy profit in the deal after buying Pinebrook Pointe for $69.9M in 2017.
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RK Centers, led by Miami Heat minority owner Raanan Katz, paid $38M for the 1600 Commons shopping center in Fort Lauderdale, The Real Deal reported. The seller was PGIM Real Estate, the investment arm of Prudential, which paid $49M for the property in 2017.
The 65K SF plaza on 6.1 acres at 1550 N. Federal Highway is anchored by Trader Joe’s and Nordstrom Rack. Other tenants include Anthony’s Coal Fired Pizza, Hair Cuttery, Mattress Firm, Xfinity and T-Mobile. It is nearly fully occupied, with 1,500 SF available for lease.
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Miami-based Newgard Development Group acquired a 1-acre development site at 200 W. Broward Blvd. near the Fort Lauderdale Brightline station, according to a release. The development firm, led by Harvey Hernandez, paid $31M to acquire the site from Kushner Cos. and Denver-based Aimco.
Newgard hasn’t released its plan for the site, but it has entitlements for a 49-story building with 381 residential units, 8K SF of commercial space and 426 parking spaces. Newgard has developed a dozen condo projects over the last 25 years, including the 44-story Lofty Brickell that is slated to begin foundation work on Jan. 1.
Kushner and Aimco originally paid $49M in 2022 for the site as part of a larger assemblage that includes 300 and 520 W. Broward Blvd., according to TRD. The joint venture is planning a 956-unit tower at 300 W. Broward Blvd. and sold the 0.8-acre site at 520 W. Broward Blvd. last year to Woodfield Development for $18M.
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Midwest Hospitality Group paid $20.5M for a Marriott-branded hotel built in 2001 at 1800 Centrepark Drive E in West Palm Beach, TRD reported. The seller, Ohio-based Regal Hospitality, acquired the property for $15M in June.
The price for the 103-key hotel breaks down to around $199K per room. Midwest Hospitality Group, an Indianapolis-based firm also known as MHG, partially financed the acquisition with a $17.5M mortgage from Brickell-based Abanca USA.
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The 87K SF Cypress Run Marketplace in Coral Springs traded for $21M, according to a release. Baltimore-based Continental Realty Corp. sold the shopping center at 10599 W. Atlantic Blvd. to The Q.V.H. Corp., a Miami Lakes-based entity managed by Rolando Hernandez.
The buyer secured an $8M, 10-year mortgage for the acquisition from Doral-based U.S. Century Bank, the South Florida Business Journal reported. The seller was represented in the transaction by CBRE brokers Dennis Carson, Sriram Rajan and Casey Rosen.
The fully leased plaza was built on 9.6 acres in 1989 and is anchored by a Walmart Neighborhood Market. Continental paid $13.6M for the property in 2015 through its Continental Realty Fund IV.
FINANCING
Miami-based Pinnacle secured $41M in construction financing to build a 110-unit affordable housing development in Miramar called Pinnacle at La Cabaña, according to a release.
The project, a public-private partnership between Pinnacle and the city of Miramar, will be built on the city-owned site of a former public safety facility at 8911 Miramar Parkway. The majority of the units in the senior housing development will be reserved for residents earning 60% or less of the area median income, or $53,100 per year, with 11 units reserved for seniors earning 28% or less of AMI.
Pinnacle at La Cabaña is being financed with $27M in Low-Income Housing Tax Credit equity, a $5.6M permanent mortgage from Neighborhood Lending Partners, $4.3M from Florida Housing Finance Corp., $750K from United Way of Broward County, $656K from the City of Miramar and $2.6M in deferred fees. The financing replaces a $22M construction loan from Bank of America.
Groundbreaking is slated for January with an estimated completion date in mid-2025.
CONSTRUCTION AND DEVELOPMENT
Dallas-based T.D. Jakes Real Estate Ventures is partnering with New Urban Development, an affiliate of the Urban League of Greater Miami, on two affordable housing developments, according to a release.
The joint venture plans to break ground in the first quarter of 2024 on a 200-unit mixed-income project in Hallandale Beach. The development site spans 5 acres on Northwest Eighth Avenue between Third and Fourth streets.
It is also planning a 150-unit senior living development on 7 acres at the intersection of Northwest 183rd Street and 12th Avenue. The city of Miami Gardens awarded the site to New Urban Development Group, and the project is being funded by Miami-Dade County.
T.D. Jakes Real Estate Ventures was created by the namesake pastor of the Dallas-based megachurch The Potter’s House. New Urban Development is Miami’s largest Black-owned real estate development firm.
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Terreno Realty Corp. completed Building 41 at the fourth phase of Countyline Corporate Park in Hialeah, according to a release. The 191K SF industrial building with 32-foot clear heights is fully leased to an international logistics service provider.
The San Francisco-based investment and development firm said the property, which it spent $41.2M to build, has a stabilized capitalization rate of 5.1%.
The fourth phase of Countyline Corporate Park, which is being built on a former landfill adjacent to Florida’s Turnpike, is expected to cost $510M and span 10 industrial buildings totaling 2.2M SF by the end of 2027.
PEOPLE
John Isakson was named CEO of Ark Homes For Rent, the Miami-based developer of single-family communities across the Southeast and Texas. The firm’s former CEO, Jordan Kavana, will stay on as founder and chairman, according to a release.
Isakson was previously chief financial officer at Preferred Apartment Communities, a property management firm that he helped grow from a $51M market capitalization in 2011 to $3.2B in 2022.
Ark has partnered with the real estate investment firm Electra America on a plan to develop $3B worth of single-family and build-to-rent properties in the next three to five years.
CORRECTION, DEC. 19, 1:00 P.M. ET: The financing package for Pinnacle at La Cabaña replaced a $22M construction loan from Bank of America, rather than included it, as a previous version of this article indicated. This story has been updated to reflect corrected information provided by the developer.
