01/08/09

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Month in Review

Fountains of Miramar shopping center sold for $39.5 million.

Taylor Development to break ground on $120M mixed-use project
A joint venture between two locally based companies — Taylor Development & Land Company and Economos Properties — will break ground in April on Off-Brickell, a $120 million mixed-use development between Coral Way and SW 15th Road in Miami.

The 568,000-square-foot project will be constructed on 3.5 acres and include 150,000 square feet of Class A office space that will draw professional service firms, such as legal and accounting. A 213-room Hilton Garden Inn hotel and 86,000 square feet of ground-floor retail will be included.

Epicure Market, a Miami Beach specialty foods store, signed a letter of intent to lease 37,000 square feet for new space. The project will be completed in 2010.

Boca Developers seeks to expand Biscayne Landing project
Boca Developers, responsible for building a massive residential and commercial community at Biscayne Landing, is seeking community support for permission to bring 200,000 additional square feet of commercial space to the development, the Miami Herald reported. The space would be used for planned offices, retail and a hotel. The new proposal would also include a small theater that would be used for film festivals.

Boca Developers president Brian Street said the new proposal would still include almost 6,000 residential units. The developers encouraged residents to consider an increase in commercial space a "dynamic alternative to the marketplace" at a time when the residential market is suffering. Expanding the commercial component would create 7,000 jobs, according to the developer.

Miami office building fetches $14M
New York City-based Falcon Real Estate Investment Company sold a 49,650-square-foot office building in Miramar for $14 million to a private investor.

The advisory and management services firm snapped up the 8.2-acre site at 2901 SW 145th Avenue in 2003 when Delta Airlines occupied the building.

Miami-based Royal Caribbean Cruise Lines inked a 10-year lease in April 2007 to occupy the entire site for its call center operations. Delta Airlines had vacated the property after declaring bankruptcy in 2006.

Falcon Real Estate Investment Company has closed on a total of $4 billion worth of transactions since it was established in 1991.

Land deal spurs 180,000-sf development
Sacramento-based Panattoni Development Company paid $15.8 million for a 25-acre parcel on Southern Boulevard in West Palm Beach, just east of the South Florida Fairgrounds.

The land will be the future site of an 80,000-square-foot, two-story Dick's Sporting Goods store and a 100,000-square-foot nationwide department retailer, according to the developer.

Locally based Ranger Construction, a road building, site work, asphalt and excavation contractor, sold the property. Construction is expected to begin in the spring and be completed by mid-2009.

Established in 1986, Panattoni Development has averaged nearly 12 million square feet of industrial, office and retail facilities in more than 150 markets annually over the last five years.

Studley expands Florida presence
Studley increased its presence in Florida with the opening of its third office at the Wachovia Financial Center at 200 South Biscayne Boulevard. The real estate company opened an office in Fort Lauderdale in 2000 and an office in Tampa in 2004.

Studley officials say the move gives the company a strategic platform to serve its clients in a growing market.

Major transactions over the past year include a 193,000-square-foot lease for Bluegreen Corp. in Boca Raton; a 61,000-square-foot lease for Brightstar in Miami; and a 76,000-square-foot lease for Carlton Fields in downtown Miami.

Homestead puts brakes on condos
In light of recent overbuilding in the area, the city of Homestead has passed legislation that will bring a halt to the development of new condos, townhouses and cluster-style homes in the eastern half of the city for the next year.

While the law enjoyed general support, disagreements over how the moratorium would deal with developments already planned or under way caused it to pass the City Council by only a 4-3 vote, the Wall Street Journal reported.

The moratorium follows similar moves made last summer by the city of Hallandale Beach, north of Miami, to curb overdevelopment. The six-month moratorium put restrictions on new developments with 10 or more housing units or 4,000 square feet of commercial space.

Engine repair shop inks Miramar lease
Propulsion Technology International signed a 10-year deal to occupy 124,280 square feet at Miramar Centre Business Park located at 15301 SW 29th Street, where it will house its repair and assembly operations.

The company, which provides repair and overhaul services to airlines and engine shops, will move its Fort Lauderdale headquarters to Building D at the business park in July. It will spend $4 million to build out 12,000 square feet for office space.

Atlanta-based property owner IDI just wrapped up construction on Building D in 2007 and is working on Building C, a 124,104-square-foot project slated for completion this summer.

Other tenants in the five-building development include Wachovia Corp., Comcast of Florida/Washington and BellSouth Telecommunications.

Pembroke Corporate Center to break ground
Indianapolis-based Duke Realty Corp. will break ground in April on a 120,000-square-foot speculative office building in Pembroke Pines.

Although leasing efforts have started on the Pembroke Corporate Center, no tenants have inked any deals yet. Asking rents are reportedly set at $21.39 per square foot. Duke officials anticipate that it will take about 12 months to complete the project.

Duke Realty has a Florida portfolio of more than 5.7 million square feet of office and industrial space and 264 acres of land for future development. It recently completed the 93,000-square-foot, $18 million Sawgrass Pointe II development in Sunrise.

Investor inks $17M deal for retail center
Rivercrest Realty Investors inked a $17 million deal with Fort Lauderdale-based Stiles Corp. to acquire the Shoppes of Wilton Manors. The retail development, constructed in the 1950s, is located on Northeast Sixth Avenue near downtown Fort Lauderdale.

The 73,196-square-foot project was 100 percent leased at the time of sale in January. Tenants include Main Street Gym and Georgie's Alibi.

Stiles Corp. paid Miami-based S&K Worldwide Realty $10.4 million in 2004 for the property, which it had planned to redevelop. Costly and time-consuming tenant relocation prompted the company to shift its focus to lifestyle centers.

Rivercrest Realty Investors said the acquisition is part of the company's overall strategy to increase holdings in the southeast.

Art center trades for $3.8M
PAWACQCO Inc. bolstered its investment portfolio in February with the addition of a two-story office building in Fort Lauderdale known as the Las Olas Art Center.

The company paid a Boca Raton-based investment group $3.8 million, or about $390 per square foot, for the 9,755-square-foot building located at 600 SE 2nd Court. According to a Grubb & Ellis sales brochure, the listing price was $5.5 million.

Located in the heart of the downtown area, the 10,500-square-foot property is surrounded by shops and restaurants on Las Olas Boulevard. According to Grubb & Ellis, PAWACQCO Inc. will redevelop the building, which was constructed in 1963.

Miami, Ft. Lauderdale foreclosures in Top 10
Miami and Fort Lauderdale appeared in the top 10 of highest foreclosure rates in the U.S., according to RealtyTrac's rankings of the nation's 100 biggest metro areas, the Wall Street Journal reported. The state had three of the top 20 on the list.

Authorities say the markets with the most foreclosures had experienced rapid growth and unsustainable price appreciation, or were hit with a widespread economic downturn. Detroit ranked the highest, with 4.92 percent of households in some stage of foreclosure. Nationwide, foreclosure filings went up 75 percent last year.

Miami's first green affordable home is complete
A single mother and her four children moved into Miami's first green affordable home, which was financed with public funds, in January.

Palmetto Homes of Miami, which has built more than a dozen single-family homes in the city, constructed the three-bedroom, two-bath house. The home features a white-tile roof, carpeting made from recycled corn husks, solar light bulbs and dual-flush toilets.

While the cost of going green upped the construction costs by $12,850, to $225,000, homeowners typically reap a $2,000 annual savings, according to developer Ario Lundy.

Lundy, who launched Palmetto Homes in 1999, anticipates the project will earn a Silver Leadership in Energy and Environmental Design (LEED) certification. That means the home meets the basic standards of efficiency for usage of water, energy and materials.

The city requires that a family's earnings do not exceed 120 percent of the average median income to be able to qualify for a low-cost home. The cap is $76,875 for a family of five.

The city put up $78,000 for the first family, while the Miami-Dade County Housing Finance Authority contributed $70,000. The Florida Housing Corp. provided an additional $10,000 and SunTrust Mortgage supplied $74,000 in financing.

Business center fetches $12.9M, changes name
Seagis Property Group, the real estate company that snapped up the Palmetto Business Center in December, says it will change the center's name and improve the 222,700-square-foot site.

Improvements and property updates include painting and repaving. The company has renamed the development Palmetto Trade Center.

The two-building business center, located on 7.93 acres at 6700 NW 77th Court and 7801-7821 NW 67th Street in an unincorporated section of Miami-Dade County, sold for $12.9 million to Benjamin Management Company of California.

The industrial buildings are 92 percent leased to regional and national distribution tenants. The property has one 18,000-square-foot warehouse being built out, according to Pennsylvania-based Seagis, which owns 71 buildings in Miami-Dade and Broward counties.

Pinnacle Housing will build in Pompano Beach
Miami-based Pinnacle Housing Group will break ground this spring on a 302-unit apartment complex at Dr. Martin Luther King Boulevard and NW 18th Drive in Pompano Beach.

Pinnacle will build six to eight two- and three-story buildings on the 31-acre property in a partnership with the Pompano Beach Housing Authority. The one-, two-, three- and four-bedroom units will range from 650 square feet to 1,200 square feet and rent for between $640 and $950 per month.

The Golden Acres development, which will take about 16 months to complete, is comprised of two parts: the 182-unit Golden Square and the 120-unit Golden Villas. Amenities include two clubhouses, a neighborhood community center, fitness center, playground and outdoor areas, volleyball court and computer lab.

Assisted living care business fetches $2.5M
Avalon Park Retirement Residence Inc. paid Miami Beach-based SJS Healthcare Inc. $1.65 million, or $131 per square foot, for A Loving Care Inn, plus another $900,000 for the healthcare business itself.

SJS Healthcare Inc. has owned the assisted living facility in Hollywood since 2003. A Loving Care Inn has 34 units and a total of 60 beds in a 12,660-square-foot assisted living facility at 604 North 62nd Avenue.

Marcus & Millichap in Tampa represented both parties in the transaction.

Luckey's breaks ground on hotel
Fort Lauderdale-based Luckey's Management broke ground last month on a 122-room Hampton Inn & Suites in the Miramar Park of Commerce on Marks Way.

Miramar Park of Commerce has nearly 5 million square feet of space and 190 tenant companies, including American Express, Federal Express, DHL, Caterpillar and Sears.

The five-story project is part of Miramar's Phase V and is the first hotel to be built on the site. Completion is slated for February 2009. Amenities include 1,500 square feet of conference facilities, a business center, a fitness room and an outdoor pool.

Luckey's Management has a portfolio that also includes Best Western, Candlewood Suites and Comfort Suites in Fort Lauderdale, Sebastian and Davie.

Fraud charges for Oakland Park builder
Assistant State Attorney Catherine Maus has accused Oakland Park-based construction company HomeCo Unlimited of scamming South Florida homeowners for four years, by collecting deposits while doing little or none of the work they were being paid for, the Sun-Sentinel reported.

Company CEO Douglas Livingston and project manager John Ostendorf face dozens of felony charges stemming from more than 60 customers' complaints. Livingston's attorney claims they failed to finish jobs due to economic problems following 9/11.

The firm was the target of a criminal investigation in 2003, during which customers were advised to refrain from paying any more money. The following year, the construction company filed for bankruptcy protection after being sued at least 36 times and owing more than $960,000 to customers and subcontractors.

Office campus trades for $10.3M
Mayors Plaza at Westpoint, a private investor, paid Coconut Creek-based Butters Construction & Development $10.3 million for a 58,701-square-foot office campus in Tamarac.

The two-building office development, constructed in 2006, is part of the Westpoint Centre Corporate Park and is 100 percent occupied, according to CB Richard Ellis.

The 47,000-square-foot, two-story office building serves as Mayors Jewelers' company headquarters. The 11,000-square-foot, single-story structure is 100 percent leased to various tenants, with leases set to expire in 2020.

In a joint venture with Dallas-based Invesco, Butters Construction is selling assets in South Florida and using the proceeds to invest in other markets, according to CB Richard Ellis.

Hospitality company expands into Fort Lauderdale
Providence Group announced it will open a new office in Fort Lauderdale in March, as part of its plans to expand its hospitality and general management services in the Central and South Florida regions.

Providence Group works with small- and mid-sized hotels, time-share resorts and hotel condominiums. It provides services for several small- and medium-sized hotels, including the Sandhurst Hotel in Fort Pierce and the Microtel Inn and Suites in New York.

The move will give it access to the growing hotel market in Orlando and southeast Florida, according to Jed Heller, who started the company in 2005.

Financing spurs RV site development
A Martin County real estate developer paid $10.5 million for the Silver Palms RV Village in Okeechobee and plans to develop the 512-site resort in three phases over the next three years.

The first phase, which will start this spring, is expected to take 12 to 15 months to complete, according to Chicago-based Cohen Financial, which arranged the financing on behalf of the buyer, William Harvey.

The resort's new owners say its amenities, including an Olympic-size swimming pool, tennis courts and clubhouse, along with its close proximity to Lake Okeechobee, will attract baby boomers seeking high-end RV developments.

Many of the RV sites are located on the lakefront or wetland preserve and will start at around $50,000 each.

Shopping center fetches $39.5M
A joint venture between Ross Matz Investments Inc. and Newman Realty Group has sold the 139,380-square-foot Fountains of Miramar shopping center to an affiliate of New Jersey-based Morris Company.

The shopping center, constructed in 2005, is located at the northwest quadrant of the I-75 and Miramar Parkway interchange at 2929 SW 160th Avenue. It is anchored by Marshall's, Ross Dress for Less, Office Depot and Pet Supermarket.

Ross Matz Investments, of Davie, specializes in acquisition, development, management and leasing of shopping centers and office buildings throughout Florida, Georgia and North Carolina.

Affordable housing in the pipeline
North Miami city officials announced plans to renovate an apartment building and construct a single-family housing project for low-income residents over the next two years.

The city's Community Redevelopment Agency signed a lease to manage Bel House Apartments, a two-building complex with 65 units located at 13925 NE Sixth Avenue.

One of the two buildings, a 45-unit structure damaged by Hurricane Wilma, will be renovated this year, while the 20-unit portion will remain occupied.

The agency was created to provide low-cost housing throughout North Miami. The group will also oversee the construction of the 136-unit, single-family Pioneer Gardens development at Northeast 137th Street and Fifth Avenue, slated to open in 2009.