Monthly Archives: September 2016

The Wrap: Little mention of Resorts World Miami in Genting’s latest corporate report, two amendments on ballot expand Florida property tax exemptions…and more

Rendering of Resorts World Miami

1. Little mention of Resorts World Miami in Genting’s latest corporate report [The Next Miami]
2. Two amendments on ballot expand Florida property tax exemptions [Palm Beach Post]
3. Broward deputies implicated in real estate row [Daily Business Review]
4. The home renovation that never ends [WSJ]

Sean Stewart-Muniz

Source:: The Real Deal

Rockpoint Group buys Aloft South Beach for $105M

Aloft South Beach and Jason Halpern

New York-based JMH Development and Mitchell Hochberg have just sold the Aloft South Beach to Rockpoint Group for $105 million, or $446,809 per room.

Aloft South Beach, developed by Jason Halpern’s JMH Development, Madden Real Estate Ventures and Starwood Hotels & Resorts, opened in June 2015. Hochberg is the principal of Madden Real Estate Ventures.

The eight-story hotel, at 2360 Collins Avenue, has 235 rooms and features a Stephen Starr restaurant, Continental Miami.

Halpern told The Real Deal Friday that the hotel market in Miami has become overheated, while the costs of land and construction have risen. “There is too much supply,” he said. “I think long term, the supply will perform well once the [Miami Beach] Convention Center is completed.”

In the meantime, he is on the lookout for other opportunities. “I run a boutique development firm, and part of what also drove me to sell is that in the two markets I am focused on, New York and Miami, there are going to be some real opportunities…. It will free up our time and create liquidity to execute new deals.”

Built on the site of the historic 1954 Ankara Motel, the Aloft South Beach was built to preserve its Art Deco architecture, incorporating classic brick walls in the “historic wing,” refurbished Ankara Motel signage and the original pool shape. The hotel’s lobby features a series of black-and-white images of 1970s beach scenes and near the entrance, a large-scale aerial view photograph of models in vintage swimsuits.

Halpern, together with partner RCG, whose principal is Michael Boxer, bought the Aloft site in June 2005 for $12.85 million, with plans for a residential project. “When the recession hit we allowed the project to sit, and we went back and got approvals for what you now see, and started construction 15 months ago,” Halpern told TRD last year.

Aloft South Beach was the first South Florida project for JMH, which is developing Three Hundred Collins, a 19-residence luxury condominium in the South of Fifth neighborhood of Miami Beach.

After founding JMH Development in 2000, Halpern primarily focused on development projects in New York, before he turned his attention to South Florida. He was among the pioneers in Williamsburg, developing 184 Kent Avenue, a 337-unit rental building that was completed in 2010.

Rockpoint Group is a private equity firm with offices in Dallas, San Francisco and Boston. Some of its recent deals include the $113.5 million purchase of Mary Brickell Village and a $30 million purchase of a retail building on Miami Beach’s Lincoln Road.

Source:: The Real Deal

Fairlead buys Fort Lauderdale’s Bayview Corporate Tower for $56M

From left: Fairlead Commercial Real Estate CEO Jeff Shaw, the Bayview Corporate Tower and New Boston Fund CEO Timothy Medlock

Fairlead Commercial Real Estate has made landfall in Fort Lauderdale’s office market.

The Georgia-based investment firm just paid $56.3 million to buy the Bayview Corporate Tower from the New Boston Fund, according to Broward County records, marking yet another big-ticket office trade in the coastal city.

Bayview is a 12-story office building at 6451 North Federal Highway, housing 413,426 square feet of Class A office space. Fairlead’s purchase price breaks down to $136 per square foot.

Requests for comment to both Fairlead and New Boston Fund were not immediately returned. The sale was off-market with no brokers involved.

According to data from the CoStar Group, the building is 75 percent leased, with its largest tenant healthcare staffing company CompHealth occupying 54,671 square feet. Whole Foods Market is also a tenant. Average asking rents are $17 per square foot, triple net.

New Boston purchased the Bayview tower in 2007 for $63 million, or about $152 per square foot, though that deal also included nearly 10 acres of land. The investment and development firm later split off 1.57 acres and sold it to the Related Group for $6.75 million, which turned around and built an apartment complex. That complex was sold earlier this year to the Berkshire Group for $78.5 million.

Fairlead’s acquisition is the latest in a string of large office deals in Fort Lauderdale. In terms of price, the most comparable is Ivy Realty’s $56 million purchase of the two-building Tower 101 complex, which it bought from partners Banyan Street Capital and PCCP for $248 per rentable square foot.

Source:: The Real Deal

Roger Ailes revealed as buyer of $36M Palm Beach mansion

6 Ocean Lane (Inset: Roger Ailes, credit: Christopher Tobey)

Embattled Fox News founder and former chairman Roger Ailes may have used his settlement money to buy a new Palm Beach mansion for $36 million.

Ailes, who resigned from Fox in July over multiple sexual harassment allegations, is the true buyer behind the pricey home sale last week, the Daily Mail is reporting. He walked away from the network with a $40 million settlement, according to a leaked copy of the agreement.

“The purchase has been very hush-hush on the island,” a Miami law source told the Daily Mail. “He’s been looking for real estate in South Florida very aggressively because he is worried about getting hit with a huge judgment.”

Ailes was forced to resign this summer after former Fox News anchor Gretchen Carlson accused him of refusing to renew her contract when she would not have sex with him, among other allegations. Carlson received a $20 million payoff, none of which came from Ailes, the New York Times reported. Fox has also settled with other women with similar complaints.

Luxury homebuilder Mark Timothy Inc. sold the newly built, beachfront home for $36 million to a trust held at City National Bank. The developer was listing the spec mansion for $42 million.

Ailes’ six-bedroom, 12,747-square-foot, two-story house was completed last year and includes interiors by Marc-Michaels Interior Design, marble and wood floors, an oceanfront pool and Jacuzzi and a guest home. It has 94 feet of oceanfront and spans 0.85 acres, according to property records.

The LLC, controlled by Mark Timothy Pulte, paid more than $12 million to buy the lots at 6 Ocean Lane and 5 Ocean Lane in 2013. Pulte is president and CEO of the luxury homebuilder firm, and his father founded Pulte Homes, now the Atlanta-based PulteGroup.

Palm Beach broker Lawrence A. Moens was the listing agent. Susan Turner of Waterfront Properties and Club Communities represented the buyer, according to the Palm Beach Daily News. [Daily Mail] – Katherine Kallergis

Source:: The Real Deal

On the scene at ONE Sotheby’s power women’s luncheon: PHOTOS

ONE Sotheby’s International Realty founder Mayi de la Vega hosted a power women’s luncheon to celebrate top VIPs in the area.

De la Vega and Turnberry Ocean Club hosted the event at the Turnberry Ocean Club Residences sales gallery. De la Vega is among the few women to lead one of South Florida’s top development marketing firms. The brokerage is marketing the Sunny Isles Beach project, which will have 154 units.

Turnberry Associates was set to break ground on the 54-story tower this past spring, but has delayed construction to later this year, a spokesperson told The Real Deal in August.

Since launching sales in October 2014, at least 35 percent of Turnberry Ocean Club Residences has been sold. – Katherine Kallergis and Sean Stewart-Muniz

Source:: The Real Deal

The Wrap: Paramount Miami Worldcenter nearly ready for foundation pour, West Palm Beach reporting some of Florida’s highest office rents…and more

Renderings of the Paramount Miami Worldcenter project

1. Paramount Miami Worldcenter nearly ready for foundation pour [The Next Miami]
2. West Palm Beach reporting some of Florida’s highest office rents [GlobeSt]
3. Levan and BBX overturn SEC’s victory on appeal [SFBJ]
4. Starbucks says its new stores in low-income areas are profitable [Bloomberg]

Sean Stewart-Muniz

Source:: The Real Deal

Arjun Waney, owner of Zuma, Coya, to open DÔA in South Beach

Rendering of DOA and Arjun Waney

Arjun Waney, the London-based restaurateur and owner of Zuma and Coya, is launching a new Latin-Asian concept, DÔA, in South Beach.

DÔA, Waney and his investors’ first venture in Miami Beach, will open in November at 2000 Collins Avenue, across from the Setai Miami Beach. The 5,200-square-foot space was formerly occupied by Barezzito and One Lounge.

Geared to be a casual, affordable fusion of Asian and Peruvian cuisine, DÔA will have indoor and outdoor space with a terrace facing the Setai, Arman Naqi, vice president and director of development for DÔA, told The Real Deal. It will remain open until 5:00 a.m., seven days a week, offering dinner, weekend brunch and late-night dining.

“This is how Arjun Waney envisioned it, as a neighborhood eatery, targeting anybody and everybody, and still maintaining the Coya and Zuma ambiance and quality of food, but at a lower price point and with great value,” Naqi said.

The restaurant is expected to be the concept’s flagship, with future locations planned for Washington D.C., Atlanta, Chicago and Boston, he said.

Waney told TRD last year that Miami’s diversity of cultures and appeal to Latin Americans has led him to launch a slew of new restaurants here. “We think very highly of Miami,” he said.

In addition to Waney, DÔA’s investors include Tunu Puri and Ferit Sahenk, chairman of the Dogus Group, the largest conglomerate in Turkey — the same investment group as in Zuma and Coya, Naqi said.

Doa-interior-renderings

Renderings of DOA’s interiors

Lyle Stern, principal of Koniver Stern Group, brokered the lease, representing the restaurant owners. Madison Capital just bought the building last week, and Stern said he negotiated the lease earlier this year with the former owner of the building, Parc Place Development, LLC.

“Once the concept crystalized, it took six months to find the right location and the right deal,” he told TRD. Waney and Puri chose the site based on its proximity to all the hotels along Collins Avenue, including the Setai Miami Beach, W South Beach, SLS South Beach and the Delano South Beach, as well as to the Miami Beach Convention Center, Stern said.

The 160-seat restaurant will feature an open kitchen, a central island bar, DJ booth, lounge area and maki counter, in space designed by Richard Saunders of London-based Sagrada Studio. The menu will consist of shared raw, steamed and robata grilled signature dishes showcasing Nikkei, Chifa and Peruvian cuisine. Among the offerings: ceviches, makis, skewers, steamed buns, dim sum and hot pots.

Waney’s next venture in Miami is La Petite Maison, opening at 1300 Brickell Bay Drive. Miami will be the first U.S. location for the French Provençal restaurant, which is expected to open by the end of year.

Source:: The Real Deal

Commissioner’s call to fire Miami’s city attorney dies – for now

Miami City Attorney Victoria Mendez and Commissioner Ken Russell

Miami commissioner Ken Russell’s motion to fire city attorney Victoria Mendez for allegedly withholding public records from his office died at a special meeting on Thursday.

Russell failed to get support from other commissioners after an hours-long public hearing on how Mendez handled a public records request related to the replatting of Coconut Grove land where developers want to build five luxury single-family homes.

“I don’t know what I would have done differently,” Russell said, adding that his issue was not about differences of legal opinion with Mendez. “This is about being left out in the dark.”

The dispute was brought to light about two weeks ago when Russell publicly called for Mendez’s firing at a commission meeting. He alleged the city attorney’s office withheld roughly two dozen relevant emails related to the replatting of a 50,000-square-foot property known as Battersea Woods.

Developers Gus De Ribeaux, Carlos Tosca and Carlos Sosa sought to subdivide the land into five lots, but the planning and zoning board ruled they needed a special permit known as a warrant to make it happen. A warrant would require a public hearing.

Mendez’s office later issued a contradictory opinion that removed the need for a warrant. Battersea Woods would only need to request a replat. The commission rejected that request last week.

Russell, whose district includes Coconut Grove, began looking into the issue and requested that Mendez provide emails related to the situation in advance of a private meeting. Later on, Russell said he requested the same records from the city’s information technology staff and received about two dozen relevant emails that were not included before. Among those are exchanges between Mendez and Berger Singerman attorney Javier Vazquez, who represented the developers.

During Thursday’s meeting, Russell’s fellow commissioners fell silent when he put forth his motion to fire the city attorney. The vote died after no other commissioners seconded it. However, Mendez will still be investigated by the county’s ethics commission, at her request.

“She should have the ability to answer all the questions that have been asked of her,” commissioner Willy Gort said. “I believe it should be independent individuals doing it, not ourselves here.”

Source:: The Real Deal

Landmark breaks ground on Pompano affordable housing with $12M loan

Rendering of City Vista

With $12 million worth of bank financing in hand, Landmark Companies has broken ground on a rent-regulated apartment project in Pompano Beach.

Landmark, headed by Robert Saland, has begun construction on an 111-unit project called City Vista at the corner of Northwest Sixth Avenue and Martin Luther King Boulevard, across the street from the Larkins Community Center.

The project is being funded with a $12 million loan from CitiBank, which county records show the developer closed on this week.

According to city documents, 107 of the project’s units are being reserved for low-income tenants, while four will be rented at market rates as part of Pompano’s push to promote mixed-income developments within the city. The seven-story building will also have 7,400 square feet of commercial space on the ground floor.

From City Vista’s opening date, those rent-regulated units are required to be affordable for 30 years, the documents show.

Landmark bought the land for $1.3 million earlier this year from Pompano’s community redevelopment agency, Broward County property records show, though the company had worked on securing approvals and low-income housing tax credits to help finance the project since at least 2013.

Pompano, Broward County’s second-oldest city, has seen a resurgence in development activity over the past few years, especially in the luxury condominium sector.

Source:: The Real Deal

Kolter Signature Homes lawsuit settled for $22.5M

San Matera and Bobby Julien CEO of Kolter Group

UPDATED Sept. 29, 3:40 p.m. Six years of legal maneuvering in one of the longest running cases over faulty construction in Florida came to swift end on Thursday, when a settlement was announced that will pay plaintiffs $22.5 million that will go towards fixing years of construction defects at San Matera at the Gardens, located just off PGA Boulevard in Palm Beach County.

The case pitted the San Matera Condominium Association against Kolter Signature Homes and other defendants for alleged sub-standard architecture, engineering and construction work at San Matera.

As the case went to jury selection earlier this week, David Haber of Haber Slade, the Miami-based firm that represented the San Matera Condo Association, said his firm was seeking $36 million from Kolter and other defendants.

But Haber told The Real Deal the settlement reached on Thursday will benefit his clients at San Matera who he said faced years of potential appeals.

“We don’t know if it will be sufficient to fully fund all of the repairs, but it is a huge step in getting it done,” he said. “And one of the reasons the settlement was achieved from our side was to avoid years of appeals, followed by years of declaratory relief actions filed in federal courts by the insurance carriers to try and avoid paying, based upon exclusions exceptions in their insurance policies.”

Haber said there was “no admission of liability or guilt, but we believe the settlement speaks for itself.” He said $11.8 million of the settlement will be paid by insurance carriers on behalf of the Kolter entities, with the rest of the money coming from other parties including the architect and sub-contractors.

Michael Hornreich, of the Orlando-based firm Weinberg Wheeler who represented Kolter Homes was unavailable to comment on the case following the settlement announcement.

The case was presided over by Circuit Court Judge Jack Cox. Jury selection began this Tuesday in downtown West Palm Beach. The trial was scheduled to begin next week in a specially built courtroom in Delray Beach designed to accommodate the large number of defendants, lawyers and plaintiffs.

Haber said the case was complicated because Kolter Signature Homes reorganized behind The Grand at Palm Beach Gardens, a limited liability Delaware-based corporation, but that Kolter served as both the developer and contractor on the project.

Kolter itself has sued a number of sub-contractors on the project, but Haber said ultimately Kolter was responsible for what happened at San Matera.

kolter signature

San Matera at the Gardens

Residents of San Matera complained for years about shoddy construction and extensive water leaks in many of the 676-units at the complex, making it impossible to sell their units. Homeowners were also hit with large assessments over the years for nearly constant repairs.

Jackie Durham, president of the San Matera Condominium Association, told TRD on Thursday that it will take several years to get all of the buildings at San Matera repaired, but it will be “a time of healing for us. We’ll heal the buildings of their problems like rotting walls and we’ll heal the association — it will be a time of healing in the community. “

Source:: The Real Deal