Monthly Archives: February 2017

Fort Lauderdale real estate still has plenty of upside potential: panel

Fort Lauderdale Beach. Inset: Jack Seiler, Peggy Fucci, Patrick Campbell and Harvey Hernandez

Fort Lauderdale real estate markets have been improving for almost a decade but still have ample upside potential, developers and other real estate professionals said at a conference Tuesday.

From left: Ryan Shear, Evan Scheckler, Peggy Fucci, Robert Shapiro, Bradley Deckelbaum, Zeb Holt (Credit: Levy PR)

“Fort Lauderdale is virtually underdeveloped, in my opinion,” said Jimmy Tate, CEO of Tate Capital, which owns the Bahia Mar resort hotel on Fort Lauderdale Beach together with other investors.

“I think this market still has legs,” said Harvey Hernandez, CEO of Newgard Development Group, one of the companies behind the development of the Gale Residences Fort Lauderdale Beach. For example, “I think there’s still a lot of opportunity on the condo side” of the market, he said.

“For the most part, money is chasing deals,” not the other way around, said Nicole Shiman, a Miami-based vice president of Edens, a real estate investment trust that invests in retail properties. “It’s still bullish, for sure.”

They spoke as panelists during a conference at the Marriott Harbor Beach Resort & Spa on Fort Lauderdale Beach organized by Bisnow Media.

Fort Lauderdale Mayor John Seiler, the first speaker at the Bisnow event, said the city’s employment growth and low property taxes are supporting its real estate markets.

“We are leading this state in job creation,” Seiler said. The Fort Lauderdale area now has a 4.4 percent unemployment rate, lower than the rate in metropolitan Miami, the West Palm Beach area, the state and the nation.

The mayor also said Fort Lauderdale’s millage rate for property tax assessments, 4.111 percent, is the lowest among the 25 largest cities in Florida. “We believe that is a huge incentive for people to invest in the city,” he said.

Several speakers said real estate prices are so high in the Miami area that Fort Lauderdale is a relative bargain.

Patrick Campbell, a vice president at the Related Group, said condo prices at the company’s Auberge Beach Residences & Spa development are averaging $1,100 per square foot, compared to $3,000 per square foot for new condos in South Beach.

“At Auberge, we’ve sold $54 million of inventory in the past 45 days,” Campbell said.

Foreign investors have played a big role in the Miami condo market and have emerged as an important element of the Fort Lauderdale condo market, too, said Peggy Fucci, CEO of brokerage firm OneWorld Properties.

For example, at the Paramount Fort Lauderdale Beach condominium development, “25 percent of our buyers are international,” Fucci said.

Mixed-use developments where people can live, work and play are proliferating in Fort Lauderdale, and the trend has implications for all classes of real estate, said Robert Shapiro, president of Master Development, one of the companies behind the Dania Pointe development on a site along I-95 where a wooden roller coaster once stood.

Shapiro said Dania Pointe will have 800,000 square feet to 900,000 square feet of retail space occupied mostly by tenants that provide food and entertainment, including 20 to 25 restaurants.

Dania Pointe also will have three “entertainment plazas” and an event schedule intended to turn the mixed-use development into a pedestrian hangout. “We plan to have 200 to 300 events a year,” he said.

Shiman said owners of shopping centers generally are expected to recruit more restaurants and other “leisure” tenants, increasing their share of shopping center space from the current level of about 25 percent to 50 percent in the years ahead.

Shiman said the growth of online shopping is driving that trend. “The only reason to leave your home now is if you’re doing something more than a transaction,” she said. “Millennials actually prefer to spend money on experiences rather than accumulating goods.”

Hernandez said that trend is also shaping residential real estate development: “Buyers are not really buying real estate so much as they are buying experiences.”

Source:: The Real Deal

ArchCo and Bluerock’s Flagler Village mixed-use project will need design tweaks, committee says

Renderings of Flagler Village proposed project

ArchCo Residential’s big plan for a 385-unit mixed-use project in Fort Lauderdale’s emerging Flagler Village neighborhood will need more refining before it goes to the city’s planning and zoning board, according to the city’s development review committee meeting on Tuesday.

The designs, which have been batted back and forth between architects The Preston Partnership, designers Falkinger Snyder Martineau & Yates, and city staff, have gone through a number of iterations, but staffers said there was still work to be done to bring the proposed block-long development in line with the neighborhood’s emerging contemporary character and to encourage public use.

Atlanta-based ArchCo has teamed up with New York’s Bluerock Real Estate — whose Florida holdings include Jacksonville’s Summit at Southpoint office complex and Brooklyn Riverside apartments — on a proposal for the 85-foot-tall multifamily mixed-use project stretching from Northeast Fifth Street to Sistrunk Boulevard.

Among city staff’s suggestions were that the developers include more detail about a public pass-through in the middle of the building’s volume along North Andrews Avenue, and modify the design of the façade to emphasize the entrance to that pass-through.

“Right now, a lot of these patterns are reading as the same thing, so looking down that block, you don’t know that there’s this really special experience where you can cut through the center,” said Fort Lauderdale Urban Design Manager Ella Parker.

Despite the suggestions, the city’s staff was effusive about the proposal overall, noting that the colors had improved over previous versions and that the plan’s quality was above expectation.

“It’s a good project that’s improving,” said Fort Lauderdale City Planner Randall Robinson. “This is far more articulated and richer in materials than what we’re used to seeing, and we want to keep that. We just want to make it a little more contemporary.”

Proposed townhomes

Also taken up Tuesday was a six-unit residential cluster planned for 1017 Southwest 4th Street in Sailboat Bend. The development team said they had already fulfilled the public participation requirement, receiving positive feedback from neighbors. They’ll need only minor adjustments before the plan can go before the Fort Lauderdale Historic Preservation Board, which is planned for April.

Also clearing the design review committee were plans from for a 26-slip marina in the Shady Banks neighborhood, and a Circle K gas station at the northwest corner of West Sunrise Boulevard and North Powerline Road. Comments on those proposals came mainly from engineering, with the bulk of the comments dealing with permitting and licensure.

Source:: The Real Deal

Leviev wins $209M judgment in corporate split

Lev Leviev (Credit: Getty Images)

From the New York website: Africa Israel Investments chair Lev Leviev won a $209 million judgment in an ugly split with his former business partners.

The back-and-forth got so messy that it led to death threats and a smear campaign to the arbitrator initially assigned to the case. A Manhattan federal judge Tuesday ordered Leviev’s former business partners to cough up $142 million to his LGC USA Holdings on top of another $66 million that had already been forked over, the New York Post reported.

Leviev, a billionaire diamond mogul nicknamed the “king of diamonds,” has spent years in courts battling with his ex-partners from upstate New York, the Julius Klein Group.

The award may be record for the industry. The dispute between Leviev and his former partners initially went to arbitration, but turned ugly fast when evidence surfaced that the arbitrator had been convicted of tax fraud and was tied to a scheme to export diamonds from Belgium while reselling them on the black market, according to Tuesday’s tax ruling.

The arbitrator also received death threats, according to Judge Jesse Furman.

“The Leviev Group will take all steps available, including seizing corporate and individual assets, to collect this judgment after the lengthy legal procedures now have resulted in this final ruling,” Leviev’s lawyer, Charles Michael, said.

Leviev’s real estate firm, Africa Israel, has global holdings, and developed the Marquis Residences in Miami. The company trades on the Tel Aviv Stock Exchange.

Last year, Leviev agreed to pay $2 million to the city and relinquish control of three condominium buildings to their respective condo boards as part of a settlement with the New York state Attorney General’s office over major construction defects at 15 Broad Street, 20 Pine Street and 85 Adams Street. [NYP] – Rich Bockmann

Source:: The Real Deal

Model Daniela Urzi snags $6.2M Oceana Bal Harbour pad

A post shared by Daniela Urzi (@danielaurzi) on May 9, 2016 at 4:27pm PDT

Argentine model Daniela Urzi may be moving to Oceana Bal Harbour, less than a month after she and her husband sold their home on the Venetian Islands.

Records show Green P&P LLC paid $6.2 million in cash for unit 1902 in the north tower of Oceana, at 10201 Collins Avenue.

Rendering of Oceana Bal Harbour

The entity is controlled by Urzi’s husband, Pablo Cosentino, who is a former professional soccer agent. The couple used a similar entity, Azul P&P LLC, for their former home at 700 West Dilido Drive in Miami Beach. They sold it on Feb. 17 for about $10 million after living there for about six years.

Urzi has done campaigns for the likes of Armani, Roberto Cavalli and Burberry, and has graced the covers of Vogue and Elle.

At Oceana, which is developed by Consultatio, Urzi’s neighbors will include Paraguayan tycoon Jorge A. Riquelme, who just paid nearly $15 million for a double unit, and Chicago auto magnate Phillip Resnick, who paid $5.28 million for a condo in January. Sales launched in 2013, and property records show 140 closings at the 28-story, 240-unit development.

The 5.5-acre property, previously home to the Bal Harbour Beach Club before Consultatio purchased it in 2012 for $220 million, features two sculptures by Jeff Koons, pools, a beach club, cabanas, a spa, restaurant and tennis court. Oceana has an estimated $1.3 billion sellout, which would set a record in South Florida beating out Oceana Key Biscayne, also developed by Consultatio, which generated nearly $580 million in recorded closings.

The building was designed by Arquitectonica with interiors by Piero Lissoni and landscaping by Enzo Enea.

Source:: The Real Deal

American Dream mega-mall heads to final vote this summer, to open in 2022

Rendering of American Dream Miami

The state of Florida is moving forward with a standard 30-day review of American Dream Miami, which means plans for the mega-mall are heading to a final vote by June.

A regional planning board, the South Florida Regional Planning Council, will meet again on Friday to provide its input on the 6.2 million-square-foot development planned for Northwest Miami-Dade. The board, made up of elected officials from Broward, Miami-Dade and Monroe counties, rejected a staff request on Monday to label the project “generally consistent” with local goals, citing insufficient time to review the plans, the Miami Herald reported. But despite concerns members have about traffic the mall will create in nearby Broward County, the board is expected to endorse American Dream Miami.

Miami-Dade County commissioners approved a comprehensive master plan amendment for the nearly 195-acre development site in late January after nearly seven hours of testimony from representatives for developer Triple Five Group, its competitors, municipal officials, tourism boosters and residents. The state’s review is the next step for the project, which was first proposed about two years ago.

Triple Five plans to open the mall all at once in 2022, Miguel Diaz de la Portilla, who represents Triple Five, said at Monday’s meeting.

As proposed, the $3 billion entertainment and retail development would include several amusement parks, 2,000 hotel rooms, a 16-story indoor ski slope, a 20-slide water park, a submarine ride in a man-made salt water lake with an artificial reef, a climate-controlled theme park, a 14-screen 3-D movie theater, a performing arts center and more.

Triple Five is no stranger to mega-malls. The firm, led by Iranian-Canadian developer Eskandar Ghermezian, developed and owns Mall of America in Minnesota, and is in the midst of building an American Dream shopping mall on a 90-acre site in the Meadowlands area of northeastern New Jersey.

The Miami project has spurred nearby development. The Graham Companies, which sold the land to Ghermezian, also plans to build a $1.55 billion mixed-use development near American Dream. [Miami Herald] – Katherine Kallergis

Source:: The Real Deal

Former Verzasca developer, ex-prez of JetSmarter, arrested in Fort Lauderdale

A screenshot of the JetSmarter-Aurora partnership from the development’s website. Inset: Gennady Barsky

Former Verzasca Group developer Gennady Barsky was arrested in Fort Lauderdale and is facing extradition to California, where he’s wanted on grand theft charges.

Barsky, the former executive chairman of Verzasca, worked on projects like Aurora in Sunny Isles Beach. Most recently, he was president of JetSmarter, a private Fort Lauderdale-based jet charter used frequently by luxury real estate agents. Verzasca partnered with JetSmarter about a year ago to offer buyers at Aurora a one-year membership included with the purchase of a unit.

Barksy was arrested on Feb. 16 and released into his wife’s custody on a $150,000 bond, according to the Sun Sentinel. He’s wanted on five counts of grand theft by embezzlement. If he turns himself into California authorities by March 3, Barksy won’t have to return to court in Fort Lauderdale for a hearing on March 6.

JetSmarter, which is not involved in the case, said in a statement days later that he resigned “due to personal reasons unrelated to the company.”

Barsky worked for Verzasca as late as March 2015. The Bay Harbor Islands-based development company said in a statement to The Real Deal that he hasn’t been affiliated with the firm or its projects since early 2015. [Sun Sentinel] – Katherine Kallergis

Source:: The Real Deal

Fort Lauderdale Beach mixed-use project proposed with 16 apartments

Shekar Reddy and renderings of 3001 North Ocean Boulevard in Fort Lauderdale

A seven-story mixed-use tower proposed for North Fort Lauderdale Beach will soon head to the city’s development review committee.

The proposal, submitted by Shekar and Shylaja Reddy, is for a 16-unit multifamily project anchored by ground floor retail space and an enclosed parking garage at 3001 North Ocean Boulevard. The Reddys own the local Discount Liquors chain of spirits stores, with locations in Wilton Manors, Hollywood and Pompano Beach.

The apartments planned for the Fort Lauderdale Beach building would range from 1,524 square feet to 2,636 square feet, with terraces from 365 square feet to 943 square feet. Fourteen units are planned as two-bedrooms, with the two penthouse units each adding a third bedroom. The 13,332-square-foot second story includes two residences, a fitness center and a 6,124-square-foot pool deck with terraces and a cabana accessible by a walk-through gallery. The floor sizes are dramatically reduced from the third story through the seventh story to preserve the neighbor’s existing views and avoid casting shadows on the neighboring pool areas, according to the proposal.

A total of 31,207 square feet of the project, designed by Fort Lauderdale’s Nest Plans Inc., are earmarked for apartments, with 2,883 square feet devoted to the ground floor retail space.

The property is part of a Community Business (CB) zoning district, with a commercial land use designation. It will need to gain approval from the Fort Lauderdale Planning and Zoning Board to be approved for residential building.

The 94-foot building reaches less than two-thirds of the way to its allowable height under the city code, and the proposal suggests the placement of trees along North Ocean Boulevard to improve the surrounding area. Given the site’s gross acreage of 0.6411 acres, the 16 units are the maximum that can be requested under the city’s Unified Land Development Regulations, which allow for up to 25 units to be allocated per gross acre in CB districts.

Source:: The Real Deal

Former Dolphins coach Don Shula lists Palm Beach Gardens home for $3M

11906 Palma Drive. Inset: Mary Anne and Don Shula (Credit: Getty Images)

Former Miami Dolphins head coach Don Shula and his wife Mary Anne Shula listed their Palm Beach Gardens home for $2.7 million.

Don Shula is the most winningest NFL coach, with 347 career wins. He’s also licensed his name to restaurants like the Shula’s steakhouse chain and Shula Burger, and has the Shula’s Hotel & Golf Club in Miami Lakes.

He and his wife have owned the Palm Beach Gardens house at 11906 Palma Drive since 2004.

The four-bedroom, four-bathroom Mediterranean-style villa was “gently used” as a vacation house by the Shulas, according to the listing. The two-story, 6,087-square-foot home features four master suites, a gourmet kitchen, vaulted ceilings, and space for a pool. The listing says the property comes with four individual golf memberships to the Old Palm Golf Club. The club includes a 33-acre practice area, fitness center, pool, spa and salon, as well as beach club access to the Marriott on Singer Island.

Robert Floyd of Village Realty Group is the listing agent. It’s on the market for $444 per square foot.

Records show the Shulas paid slightly more than $2 million for the 0.4-acre property in 2004. They live in the exclusive enclave of Indian Creek, where they own the waterfront mansion at 16 Indian Creek Drive.

Don Shula isn’t the only former Dolphins coach looking to unload some South Florida real estate. Former head coach Joe Philbin just pulled his house in Davie off the market after cutting the asking price twice. [Realtor.com] – Katherine Kallergis

Source:: The Real Deal

Lionheart Capital showcases Ritz villa during South Beach Wine and Food Festival

Lionheart Capital tapped into its gastronomic side and hosted an “evening of gastronomic delight” during the South Beach Wine and Food Festival.

Lionheart, Gaggenau and Boffi held the event at the Ritz-Carlton Residences, Miami Beach on Thursday. Chef Jack Logue performed live cooking demonstrations for more than 150 guests, including Douglas Elliman’s Jay Philip Parker and Phil Gutman. The chef used Gaggenau appliances, including the cook-top, refrigerator and freezer, and stainless steel wall oven at the Residences’ model home called Villa Lissoni.

Piero Lissoni, the Italian architect of the Ritz-branded development, unveiled the 3,800-square-foot villa in November. It’s one of 15 standalone homes planned for the development now under construction in Mid-Beach. Each villa is priced from $4 million to $7 million, including eight that will be along a canal and seven that will be on the street.

The residences, set to open this year, include 111 condo units. Lionheart Capital brought on Douglas Elliman in the summer to take over sales and marketing. Overall, prices range from $2 million to $40 million. – Katherine Kallergis

Source:: The Real Deal

Paraguayan tycoon pays $14.8M for Oceana Bal Harbour unit

Oceana Bal Harbour and David Koster, on left, and Gabriel Markovich

A Paraguayan magnate just paid $14.786 million for a double beachfront unit at Oceana Bal Harbour, The Real Deal has learned.

Unit 2001/2002 spans half a floor at the recently completed 28-story, 240-unit luxury condo tower at 10201 Collins Avenue. With 7,640 square feet, it has five bedrooms plus staff quarters and six-and-a-half bathrooms, Gabriel Markovich, co-owner of Decorus Realty told TRD. He represented the buyer along with Decorus Realty co-owner David Koster. The price equates to $1,935 per square foot.

Markovich said the buyer owns a condo at the St. Regis in Bal Harbour, but wanted a larger waterfront unit. He has put his St. Regis unit on the market with Decorus for $8.75 million, and it is currently being rented out for $33,00o a month.

Markovich declined to disclose the Paraguayan buyer, and the sale has not yet been recorded, but St. Regis property records show he is Jorge A. Riquelme.

Published reports in Latin America say Riquelme owns several major businesses, including the supermarkets Cadena Real; a beer company, Compañía Cervecera Asunción; a pasta manufacturing company, Fideos Federal; a bottling business, Embotelladora Central (Nico); as well as Industria Mazzei, Cereales SA and Vidriera Asunción. The businesses employ a total of 3,500 workers, according to a published report.

Property records show Riquelme had paid $5 million for unit 1600 at the St. Regis in 2012. It has 2,721 square feet.

His new unit at Oceana will be nearly three times the size. “There are only a handful of units that boast that kind of square footage and Bal Harbour is one of the most prestigious addresses,” Markovich said.

Oceana Bal Harbour, developed by Eduardo Costantini‘s Consultatio, has an estimated $1.3 billion sellout, which would set a record in South Florida. The project would beat out Oceana Key Biscayne, also developed by Consultatio, which generated nearly $580 million in recorded closings.

Records show 137 units have closed so far at Oceana Bal Harbour since it opened in November. Owners include Chicago auto magnates and philanthropists Phillip H. and Nancy Resnick; Fidelity Investments portfolio manager Mark Notkin; Accenture managing director Paul Rakowski and Estee Lauder Companies vice president Amy DiGeso; and NetApp vice chairman Tom Mendoza, as well as a list of foreign buyers.

Designed by Arquitectonica, Oceana Bal Harbour also has four upper penthouses, two of which were under contract for $26 million each earlier this year. Piero Lissoni designed the interiors, the private restaurant and the penthouse bathrooms. Enzo Enea designed the pool deck landscape.

The 5.5-acre site was formerly known as the Bal Harbour Beach Club before Consultatio purchased it in 2012 for $220 million. A year later, the developer closed on a $332 million construction loan from a group of lenders led by HSBC.

Source:: The Real Deal