Monthly Archives: February 2016

The Wrap: Miami retail has never been hotter as developers go on shopping spree, Venetian Causeway set to reopen today…and more

An exterior shot of the CocoWalk shopping center in Coconut Grove

1. As developers go on shopping spree, Miami retail has never been hotter [Miami Herald]
2. Venetian Causeway set to reopen today [Curbed Miami]
3. Apartment-building boom looks set to ease [Wall Street Journal]
4. Kendall traffic is so bad residents are demanding end to development [Miami New Times]

Sean Stewart-Muniz

Source:: The Real Deal

Sub-Zero Wolf inks lease for flagship showroom in Miami Design District

Renderings of 3711 Northeast Second Street

Sub-Zero Wolf, the high-end appliance maker, has signed a lease for its first Florida flagship showroom in Miami’s Design District, The Real Deal has learned.

Lyle Chariff, president of Chariff Realty Group, told TRD Sub-Zero Wolf is taking the entire 9,000-square-foot second floor of the upcoming building at 3711 Northeast Second Street being developed by the real estate investment firm Wharton Equity Partners.

The site was the former Power Studios, which Wharton bought in June for $14 million from a partnership majority owned by former banker Leonard Abess that included Chariff and his Chariff Realty Group partner Mauricio Zapata and others. The group had purchased the property at 3711 Northeast Second Avenue in May 2013 for $8 million. They knocked down Power Studios building, first built in 1925, about a year-and-a-half ago.

The sale to Wharton Equity Partners included the conceptual designs by Touzet Studio and entitlements, Chariff said at the time. One of the conditions that the purchaser made was that Chariff Realty Group stay on to be the exclusive leasing agent.

Now, the firm has brokered the deal with Sub-Zero Wolf.

When completed, the new two-story building, called 3711, will have a 10,000-square-foot first floor with 32-foot tall ceilings that will make the second floor appear “to float” over the highway, Chariff said.

“We believe this is going to be the most visible showroom in the Design District, considering its position on the highway, I-195, which has over 100,000 eyeballs a day going in and out of Miami Beach,” David E. Eisenberg, CEO of Wharton Equity Partners, told TRD.

The property will also have an 8,000-square-foot rooftop event space with a retractable cover for entertaining. “Sub-Zero fell in love with this space because of the rooftop deck being a 360-degree view of Miami,” Chariff said.

Lyle Chariff small photo

Lyle Chariff

Sub-Zero will be able to use the rooftop for events and for demonstrating summer kitchen appliances, Eisenberg said. “We, as the owner of the building, expect to generate additional income renting out the rooftop for select special events,” he added.

The building is scheduled for completion by the end of this year, and Sub-Zero will move in during the spring of 2017, Eisenberg said. Currently, Madison, Wisconsin-based Sub-Zero has just one showroom in the Southeastern U.S., in Atlanta, according to its website.

The new showroom is part of the push for furniture showrooms and home furnishings stores to move to the edge of the Design District, as luxury boutiques take over the heart of the area. Outdoor furniture company Brown Jordan recently opened its store in a new property developed by Chariff Realty Group at Northwest 36th Street and Northeast Second Avenue, near Midtown Miami.

Chariff said rates for ground floor space can range from $100 to $150 per square foot in that part of the Design District. He declined to disclose Sub-Zero’s rate, but said it is at a premium to other second floor space in the Design District due to its visibility and prominence on the highway.

Eisenberg head shot #2

David E. Eisenberg

“We have had a lot of serious interest and offers from tenants who want the first floor and we have been very selective to create the ideal co-tenancy,” Eisenberg said. “Because we have Sub-Zero taking the entire 9,000 square-foot space the tenants are willing to pay extra to be on the first floor.” He expects the first floor to have complimentary businesses such as design and home furnishings firms.

Peter C. Lewis

Peter C. Lewis

New York-based Wharton, founded by Eisenberg and Peter C. Lewis in 1987, has been active in the Miami market in recent months. Wharton just topped off District 36, a 500,000 square-foot, mixed-use project at Northeast 36th Street and Northeast First Avenue on the edge of the Design District and Midtown. Wharton also owns a 2.3-acre development site in the heart of Miami’s Central Business District, zoned for more than 3 million square feet of mixed-use development, including more than 2,200 residential units.

“We’re very strong believers in Miami and we believe the long term prospect of Miami is extremely strong,” Eisenberg, who leads the firm’s Miami office, told TRD. “We are making a long-term investment in Miami.”

Source:: The Real Deal

Elliman taps Michael Light to lead luxury sales at Grove office

Michael Light

Douglas Elliman has brought on Michael Light as the new director of luxury sales for its Coconut Grove office.

Previously with Keller Williams, Light told The Real Deal he has worn many hats in the real estate industry before becoming a broker associate.

He was branch president of a Chicago mortgage brokerage firm for nearly five years, and was also a foreman for Turner Construction before moving to Miami in 2009. He then signed up with Keller Williams and later became the firm’s senior vice president of luxury sales at its Coral Gables office.

Light said he closed on roughly $25 million worth of sales last year, more than $10 million of which were at the upcoming Paramount Miami Worldcenter project that’s under construction. He was also the agent that sold Oklahoma City basketball star Kevin Durant’s penthouse at 900 Biscayne, and later rented it out for a whopping $18,000 per month.

He told TRD that the majority of his business comes from representing foreign buyers for pre-construction condos in Miami, which he will continue in his new role at Elliman. He said the move will give his business a springboard because of Elliman’s brokerage network and its partnership with Knight Frank.

“The fact that Douglas Elliman sold over $22 billion last year is absolutely remarkable,” Light said in a statement. “I am very honored and excited to partner with the most successful luxury real estate firm in the country.”

Joining him is Jaimee Light, his wife who heads marketing for his team, as well as Brooke Travis, his rental expert. Together, the three make up Miami Luxury Homes, Light’s sales and marketing team.

Source:: The Real Deal

Givenchy and Gucci to open at Aventura Mall

Aventura Mall

Aventura Mall, which has been amping up its array of luxury boutiques, is now adding Givenchy and Gucci to the mix.

The shops will join the mall’s collection of upscale boutiques that includes Louis Vuitton, Cartier, Tiffany & Co., Fendi, Burberry, Bally and Emilio Pucci.

Givenchy is scheduled to open in summer 2016 and Gucci in fall 2016. Both boutiques will be located in Nordstrom Court. The brands will join two recent fashion additions, St. John and 120% Lino, which opened recently on the upper level near Nordstrom, according to a release.

“The additions of Givenchy and Gucci will enhance the shopping experience for our local and international visitors,” said Jackie Soffer, co-chairman and CEO of Turnberry Associates, in a statement. Turnberry owns 66.7 percent of the mall; Simon Properties Group owns the remaining 33.3 percent. Turnberry also manages the mall at 19501 Biscayne Boulevard, which is anchored by Nordstrom, Bloomingdale’s and Macy’s and features 300 stores.

In 2014, Turnberry announced it was expanding Aventura Mall. Plans include a new three-level, 315,000-square-foot retail wing and multi-level parking garage. The mall first opened in 1983, then doubled its size in 1997 and in 2007, added Nordstrom and a three-level wing of high-end stores. It has more than 2.7 million square feet of space, making it the third largest shopping mall in the United States, behind Mall of the America in Minnesota and King of Prussia Mall in Pennsylvania.

On New Year’s Eve, the owners of Aventura Mall closed on a $213.5 million mortgage from JP Morgan Chase to fund the planned expansion. Construction has begun on the new wing, which is expected to open in late 2017, and will include destination restaurants, more than three dozen retail stores, a new food court with indoor/outdoor seating, and a VIP concierge area.

But in late January, Seritage Growth Properties, a publicly traded real estate investment trust that owns Sears’ real estate assets, filed suit against the owners of Aventura Mall, seeking to stop the shopping center’s expansion plans.

The suit, filed by Seritage SRC Finance against Aventura Mall Venture, cited an easement and operating agreement dating back to 1982, originally between Sears and the mall — now Seritage and the mall. The mall’s expansion violates terms of the agreement “because it proposes structures and development activities that materially deviate from the terms of the plot plan,” according to the suit. — Ina Cordle

Source:: The Real Deal

Your doors probably suck, here’s why: VIDEO

From the New York website: Unfortunately, bad design is everywhere. How often have you pushed when you should have pulled or vice versa? Well, the good news is that it probably isn’t your fault. Doors from your house to your office are sending you the wrong signals and require obnoxious signs to correct them.

Donald Norman literally wrote the book on bad design (“The Design of Everyday Things”), so check out what he has to say about your doors after the jump.

[VOX] –Christopher Cameron

Source:: The Real Deal

CVS Pharmacy in West Miami hits the market

CVS Pharmacy store at 2393 Southwest 67 Avenue in West Miami

Marcus & Millichap obtained the exclusive right to market a 13,103-square-foot CVS Pharmacy location in West Miami.

The store is listed for sale with an asking price of $14.21 million, or $1,084 per square foot.

Drew A. Kristol, a vice president, investments, in the Miami office of Marcus & Millichap, said in a press release the listing represents an unusual opportunity to acquire a CVS Pharmacy store “situated on a busy four-way signalized corner, with a rare 25-year term remaining on the base lease.” The lease is guaranteed by parent company CVS Health Corp.

Kristol and another Miami-based vice president, investments, of Marcus & Millchap, Kirk D. Olson, are representing the seller, a private investor in Coral Gables.

The 13,103-square-foot CVS was built in 2014 and includes a 24-hour drive-through lane. It located at 2393 Southwest 67 Avenue on the corner of Coral Way and Southwest 67 Avenue.

The property is surrounded by a residential neighborhood and, according to Marcus & Millichap, has a population of nearly 500,000 people within a five-mile radius.

Source:: The Real Deal

County cites port for Peanut Island code violations

JFK bunker on Peanut Island. (Credit: Peter W. Cross for VISITFLORIDA.com)

Palm Beach County cited the Port of Palm Beach for building code violations at historic Peanut Island, where a bomb shelter was built for President John F. Kennedy.

The port has leased the six-acre island since 1992 to the Palm Beach Maritime Museum.

The island, located just east of Riviera Beach, has three main buildings: the bomb shelter built in 1961 for President Kennedy, a former Coast Guard station built in 1936 and the boathouse for the station.

The Palm Beach Maritime Museum opens the Peanut Island facilities for public tours Thursday through Sunday.

The county cited the port for fire code violations and failure to obtain multiple permits including a change-of-use permit.

Port attorney Gregory Picken told the Palm Beach Post that “the Port will need to deal with the violations through enforcement of the lease provisions with the Palm Beach Maritime Museum, Inc.”

Anthony Miller, owner of a company that manages the museum, told the Post that “we take safety very seriously, and we have a perfect record of 20 years without one injury on that property.”

Picken said Miller’s company, Maritime Business, has filed for bankruptcy, so “the port may be limited in what can be done at this point.”

About a year ago, engineering firm CHSM Hill reported to the Port of Palm Beach Commission that an inspection of Peanut Island facilities revealed problems including loose railings, termite damage and mold damage. [Palm Beach Post ] — Mike Seemuth

Source:: The Real Deal

More Canadian owners of Florida homes may sell

Canada’s depressed currency

The depressed value of Canadian currency against the U.S. dollar is not only discouraging some Canadians from buying Florida homes but also encouraging others to sell.

“Canadians see this time as an opportunity to sell,” said Canadian real estate agent Laura Leyser, speaking publicly at a meeting of real estate brokers and agents in Estero.

Bonita Springs real estate agent Michael Burke told the Naples Daily News that he targets Canadian owners of U.S. property purchased in early 2008, 2011 and 2013, when “the Canadian dollar was dancing around par or below the U.S. dollar.”

At the current exchange rate, the Canadian dollar, or loonie, is worth approximately 73 cents, and conversely, a loonie is worth between $1.30 and $1.40.

“It’s just a good time for them to sell and net more with the exchange rate, Burke said.

If large numbers of Canadians start selling U.S. homes, the impact could hit hard in Southwest Florida.

Canadians account for seven out of 10 international home buyers in Collier County, according to the Naples Area Board of Realtors. [Naples Daily News] — Mike Seemuth

Source:: The Real Deal

Lauderdale developer plans Vero Beach brewery

Michael Rechter

Fort Lauderdale-based developer Michael Rechter is advancing a plan to acquire an old diesel power plant in downtown Vero Beach and redevelop it as a brewery.

A city-appointed evaluation committee ranked Rechter’s proposed brewery project first among three bids submitted in January.

The old diesel plant on State Road 60, owned by the City of Vero Beach, would become a craft beer brewery called the American Icon Brewery, under Rechter’s development proposal. He is CEO of Fort Lauderdale-based Integra Real Estate Company.

“First and foremost we want to make sure that everything we do is in keeping the 1999 historic designation of the building,” Rechter told the Stuart News. “We want to keep and celebrate the huge diesel engine inside as a piece of historic industrial art which fits perfectly with what American Icon Brewery is – a celebration of all things iconic in America.”

The Vero Beach City Commission will consider Rechter’s proposed brewery development at a meeting on Tuesday.

“If the council goes with the committee recommendation, we anticipate a due diligence period of about 60 days, and a short closing period beyond that,” Vero Beach City Manager Jim O’Conner told the Stuart News. [Stuart News] — Mike Seemuth

Source:: The Real Deal

Lauderdale boatyard and marina listed for sale

The Fort Lauderdale Boatyard and Marina

A 64-year-old Fort Lauderdale Boatyard and Marina has been listed for sale.

The boatyard and marina, formerly known as Jackson Marine, is located in Fort Lauderdale along the South fork of the New River and is visible from an arched section of northbound Interstate 95.

Based on two appraisals in recent months, the 11.3-acre property has an estimated value of $18 million.

In the last 11 months, the boatyard and marina switched from one exclusive commercial tenant, National Liquidators, to a roster of 80 commercial tenants, boosting net operating income by almost 65 percent.

The property is “ideal for redevelopment,” Kelly Ruff, general manager of the Fort Lauderdale Boatyard and Marina, said in a press release. It has a ” long rectangular shape” that allows for “more than a few possible ideas for redevelopment strategy and planning.”

Ruff also said almost 30 potential buyers, including foreign entities, have registered and have begun a pre-bid due diligence process: “Surprisingly, the strongest interested buyers are not the domestic industry leaders. We’ve had a handful of qualified international purchase inquiries.”

Source:: The Real Deal