Monthly Archives: May 2017

South Beach condo of late architect Zaha Hadid listed for $10M

2201 Collins Avenue (Inset: Zaha Hadid)

A former vacation spot left behind by the late starchitect Zaha Hadid has just been listed for $10 million, or $4,350 per square foot in South Beach.

The 2,299-square-foot condo at 2201 Collins Avenue at the W South Beach has three bedrooms and four bathrooms with an ocean view that combines two floor plans, according to Mansion Global.

The $500 million, 20-story complex was developed by TriStar Capital. It currently has 26 remaining units for sale, which range from 574 to 1358 square feet, according to Zilbert | Brown Harris Stevens. Current prices range from $799,000 – $14.9 million.

Property records show Hadid bought the property in 2010 for $785,000. Her death in March of last year from a heart attack shook the architecture world. In Miami, construction workers, developers and fans of Hadid gathered for a minute of silence to honor the legendary architect at the site of the One Thousand Museum condominium building she designed, that is currently still under construction.

The Iraqi-British architect was the first woman to receive the Pritzker Architecture Prize, in 2004. In a 2011 interview with Newsweek, Hadid explained her view of her profession.

“I don’t think that architecture is only about shelter, is only about a very simple enclosure,” she said. “It should be able to excite you, to calm you, to make you think.”

Mansion Global reported that the condo for sale was redesigned by the Hadid.

In 2014, businesswoman and Bollywood actress and producer Poonam Khubani listed her W South Beach double penthouse units for a combined price of $19.9 million. [Mansion Global] — Amanda Rabines

Source:: The Real Deal

Miami-Dade’s taxable property values rise 8.2% to $272B

A rendering of Brickell City Centre

Pedro Garcia

Driven by new construction, the estimated combined value of properties in Miami-Dade County exceeds $272 billion so far this year, up 8.2 percent from 2016, according to the county’s Property Appraiser Pedro J. Garcia.

Garcia’s office just released the June 1st estimates of taxable values, which include more than $8 billion of new construction throughout the county – a combined assessed value of more than $1 billion. Brickell City Centre, which Swire Properties completed in November, was the largest project to be completed this cycle in the city of Miami, according to the release.

Property values grew the most year-over-year in West Miami (28.2 percent), Surfside (26.5 percent) and Bal Harbour (19.8 percent), according to the estimates.

Despite the increases, Garcia said in a press release that values are growing at a slower rate than in previous years. “We are starting to see a relative weakness in the market, especially with condominium properties,” he said.

From 2014 to 2015, property values were up 9.4 percent to $230.4 billion, and from 2015 to 2016, they were up 9.1 percent to a previous record high of $251.3 billion.

Garcia will release the 2017 assessment roll on July 1.

Here’s a full list of the estimates:

Click to enlarge

– Katherine Kallergis

Source:: The Real Deal

Senior living developer scores $29.6M loan for site at Aventura ParkSquare

Aventura ParkSquare renderings (Inset: Avi Bittan)

An affiliate of senior housing developer Royal Senior Care just scored a $29.6 million loan for vacant land at Aventura ParkSquare, for what is likely the site of luxury senior living.

Royal Senior Care founder Avi Bittan signed the mortgage. BB&T Bank is the lender, property records show. The loan is for the 19,168-square-foot site between Northeast 29th and 30th avenues, just south of Northeast 207th Street.

Integra Investments, led by Victor Ballestas, is the master developer behind Aventura ParkSquare, an 8.5-acre mixed-use and health-oriented project. Ballestas has said the development would include senior living, and broker websites show the project will have 144 luxury apartments set aside for seniors.

Royal Senior Care and Integra Investments could not immediately be reached for comment.

Other developments under Royal Senior Care include a 25-acre campus in Lake Mary, Florida, which will have 335 units, according to its website. In 2015, the developer landed a $24.7 million construction loan for a ranch-style senior living complex in Davie.

Last year in February, Aventura ParkSquare closed on a $100 million construction loan. Overall, ParkSquare will include 55,000 square feet of retail, a 100,000-square-foot office tower, a 45,000-square-foot wellness medical center, a garage and a 131-unit luxury residential condo tower.

Some health-related features include extra-wide sidewalks for walkability, open staircases that support less use of elevators and the elimination of curbs. Retail tenants will include Icebox Cafe, Barry’s Bootcamp and greenmonkey yoga.

Source:: The Real Deal

Project co-developed by Murray Kushner’s company touts Trump ties to EB-5 investors

Kushner Real Estate Group’s Jonathan Kushner and renderings of 235 Grand Street in Jersey City
(Credit: HLW International via Jersey Digs)

From TRD New York: Marketing materials for a Jersey City project that’s being co-developed by Jared Kushner’s uncle Murray used images of President Trump and his son-in-law to woo EB-5 investors in China. The incident sparked the latest flare-up in the Kushner family feud.

According to Bloomberg, a presentation created for KRE Group, lead by Murray Kushner and Jonathan Kushner, included images of President Trump, Jared and his wife, Ivanka Trump, during a pitch earlier this month to investors in China for his company’s planned apartment tower at 235 Grand Street in Jersey City.

“Work hand-in-hand with Trump son-in-law Kushner,” read the project’s materials.

Neither Jared nor the Trumps are involved in the project, which KRE is co-developing with Hoboken-based Ironstate Development. Ironstate’s Dave Barry told Bloomberg the mention was unintentional and the project pitch was the responsibility of the Beijing-based marketing company Noah Visa, which created the promotional materials.

Barry said the developers worked with the consultant New York Immigration Fund, a company Ironstate has worked with in the past, which subcontracted the work to Noah Visa.

The New York Immigration Fund did not immediately respond to Bloomberg’s request for comment, but Noah Visa manager Eric Yuan at first denied including Jared’s name or his photo in the promotional materials. But when Bloomberg pointed out that there was a paper trail online, Yuan pointed his finger at the media.

“The media did that to push hot topics; we didn’t do it,” he said. “Jared has nothing to do with the project.”

When Kushner Companies, the firm started by Jared’s father Charles, learned about the China presentation, it sent a cease-and-desist letter to KRE and its partners.

The controversy comes after Kushner Companies pulled out of a road show in China over similar claims that the company used Jared’s position at the White House to promote a Jersey City development. The hullabaloo reportedly damaged Kushner’s standing with his father-in-law, and he’s said to be considering returning to private life every six months.

Murray and Charles Kushner have been called the Cain and Abel of New Jersey due to their history of public feuding. [Bloomberg] – Rich Bockmann

Source:: The Real Deal

Star Island home of Lennar founder Leonard Miller hits the market for $49M

23 Star Island Drive (Inset: Jill Hertzberg and Jill Eber)

The former home of the late Lennar Corp. founder Leonard Miller and his wife Susan Miller, a prominent Miami philanthropist, was just listed for sale for $49 million, the Jills announced on Wednesday.

The homebuilder, who died in 2002, and his wife, who died late last year, built the waterfront estate at 23 Star Island Drive in 1973. The seven-bedroom, 10,211-square-foot mansion sits on a 1.85-acre lot with 327 feet of water frontage, a pool, lighted tennis court, dock and boat lift, according to Coldwell Banker. Jill Eber and Jill Hertzberg are listing the property.

Records show the Millers paid $210,000 for the point lot in 1973. The estate includes a separate guest house with two bedrooms, two baths, a kitchen and a living room.

Stuart Miller, one of the Millers’ three children and the current chairman and CEO of Lennar, is building himself a mega compound nearby on three lots at 11 Star Island. He secured approval for a 120,000-square-foot property (outdoor space included) with underground parking, a lagoon and guest house last year. He also owns 22 Star Island, which includes a 1931 mansion that Miller moved elsewhere on the 1.4-acre plot. There, he’s building a modern, two-story mansion that was approved last year.

The exclusive island has been home to celebrities like Sean “Diddy” Combs, Gloria and Emilio Estefan, Don Johnson, Rosie O’Donnell and Shaquille O’Neal. The Estefans have 1 Star Island Drive on the market for $37 million.

Last year, Marco Iacovelli, the founder of Rally Manufacturing, listed his mansion at 46 Star Island Drive for $65 million –marking the priciest home on the market in Miami-Dade County.

Phillip and Patricia Frost also live on Star Island. – Katherine Kallergis

Source:: The Real Deal

Church of Scientology “disconnects” with Coral Gables location for $6M

Church of Scientology building at 120 Giralda Avenue. Inset: Scientology chairman of the board David Miscavige (Credit: Getty Images)

After about three years on the market, the Church of Scientology has cut ties with its Coral Gables location of more than 40 years and sold the building for $5.8 million, or nearly $360 per square foot.

The buyer is 120 Giralda LLC, according to a press release. The entity is controlled by Marc and Barry Schwarzberg of Boca Raton. Patrick Kelly of RESF, who represented the buyers, said they mostly invest in multifamily properties in Broward County and in Coral Gables. For now, he said the plan is to convert the office building into restaurant/retail space. Kelly declined to identify the buyers of the all-cash deal.

The building, which housed the original Coral Gables Post Office, is on “Restaurant Row” at 120 Giralda Avenue. It was on the market for $5.7 million, and received multiple offers, but didn’t sell until the controversial church moved into its newly built out location at 2200 South Dixie Highway. The terms of the deal were that a buyer would let the church stay in its Coral Gables building rent-free until the other building was ready, broker Danny Zelonker confirmed. “And that’s why it was on the market for three years,” Zelonker said.

Zelonker and Isabel Fine of Real Miami Commercial Real Estate represented New York-based broker Doug Furer of Mariner Real Estate Services on behalf of the Church of Scientology in the $5.8 million deal, which closed on Friday.

The 16,200-square-foot building sits on a 19,100 square foot lot, which includes a vacant parking lot south of the building. It was built in 1947. Property records show the building last sold for $425,000 in 1976.

Current zoning allows for about 54,000 square feet of development without bonuses, Zelonker said.

Once the church moved into the building on South Dixie Highway, the Coral Gables property landed multiple offers, including from Michael Comras and a couple of real estate investment trusts out of New York, Zelonker said. The asking price was $5.7 million, which means it sold for slightly more. Kelly joked that the the bidding process was a “bloodbath.”

Giralda Avenue’s Restaurant Row is in the midst of a major streetscape improvement project, which is slated to be completed next month. Among the improvements are closing the street off to cars and adding outdoor dining. Restaurants already on the avenue include Talavera Cocinera Mexicana, the Local Craft Food & Drink and Threefold Cafe.

Recent sales on Giralda Avenue have fetched prices as high as $660 per square foot, brokers said.

Source:: The Real Deal

Miami commission votes to cut ties with Island Gardens developer Mehmet Bayraktar

Rendering of Island Gardens. Inset: developer Mehmet Bayraktar

In a blockbuster decision, the Miami City Commission wants to kill the deal with Flagstone Property Group to build a $1 billion mixed-use project on Watson Island.

During a special meeting on Tuesday, commissioners voted 5-0 to declare the developer in default of a ground lease allowing Flagstone to build two hotels and a luxury mall with roughly 221,000-square-foot retail and restaurant space that would complement a megayacht marina completed in 2015.

The long-delayed waterfront development known as Island Gardens was initially approved by Miami voters in 2001 and the lease was finalized by the city commission a year later. Flagstone’s principal is Turkish real estate investor Mehmet Bayraktar.

“The bottom line is that 15 years later, nothing has been built and the city has been ripped off,” said Commissioner Frank Carollo, noting Flagstone has only paid $6.3 million in rent during that time period for prime waterfront property that a recent appraisal concluded would fetch $7 million a year. “It doesn’t take a CPA or a finance whiz to know that this is outrageous,” Carollo added.

Commissioner Ken Russell, whose district includes Watson Island, sponsored the resolution directing City Manager Daniel Alonso to notify Flagstone it is in default of the 99-year-lease, the first step in terminating the agreement. Russell said the developer had been given enough reprieves and still failed to meet a May 1 deadline to commence construction on the commercial development.

“You may see this as Groundhog Day or déjà vu,” Russell said. “The line in the sand has been erased and moved so many times over 15 years. We might as well tell them to do whatever you want. That can end today.”

Mayor Tomas Regalado, who suggested commissioners consider bringing in an “independent counsel” to determine if Flagstone is truly in default, could still veto the commission’s unanimous vote.

In a rare instance, city commissioners voted against staff’s interpretation that Flagstone’s application for a foundation permit and excavation work was enough to meet its contractual obligations, even though the agreement specifically defined commencement of construction as having obtained “all material plans and permits” and “the act of physical construction.” Instead, city commissioners sided with the Coalition Against Causeway Chaos, a non-profit opposing the project, which argued Flagstone had failed to meet the timetable set by the lease.

On previous occasions over the past seven years, the city commission had extended deadlines for Flagstone or had agreed the company met them, based on staff opinions favorable to the developer. For instance, city attorneys opined Flagstone met a June 2, 2014 deadline to begin construction of the megayacht marina when the company sent divers into the water to map corals and seagrass before dredging Biscayne Bay.

Flagstone lobbyist Brian May argued his client had met the construction commencement deadline when the company obtained environmental permits in 2016 and permits to move utilities earlier this year.

“Look past the noise,” May said. “You have an agreement with Flagstone. Any attempt to call a default on that agreement by what has been alleged today, it is not going to end up well. I would ask you to carefully deliberate this.”

Alan Fein, a Flagstone attorney, said the developer was ready to sue the city and that terminating the lease would cause his client damages in excess of $100 million. “I do believe the [resolution] in front of you would be a serious breach of fiduciary duty,” Fein said. “There is virtually no chance that you could win on this claim.”

However, commissioner Francis Suarez also cited Flagstone’s inability to provide evidence it had obtained construction financing for the second phase of Island Gardens per the lease. Suarez dismissed May’s assertion that Flagstone’s Bayraktar would provide an affidavit stating his client could self-finance the commercial development.

“With all due respect, I don’t think an affidavit is sufficient,” Suarez said. “The reason the language is in there requiring a bank to participate in this phase is so the people know the project is going to get built. And that was not done.”

Source:: The Real Deal

Ronny Finvarb snags $27.6M construction loan for new South Beach Kimpton hotel

Rendering of the Klimpton Hotel Palomar South Beach and Ronny Finvarb

Ronny Finvarb has nabbed a $27.56 million construction loan for his new Kimpton hotel on Alton Road in Miami Beach, The Real Deal has learned.

Finvarb, principal of the Finvarb Group, told TRD that TotalBank is the lead lender, with participating lenders Floridian Community Bank and Apollo Bank. The financing has not yet cleared records.

Site work has already begun on the future hotel at 1750 Alton Road, which will be called the Kimpton Hotel Palomar South Beach when it opens in the fourth quarter of 2018, Finvarb said. The property was the former site of a Boston Market, which was demolished last year.

Owned and developed by the Finvarb Group and designed by Kobi Karp with Permuy Architecture as the architect of record, the hotel will span five stories and 96 rooms surrounding a central atrium. It will also feature a rooftop pool and a new signature restaurant overlooking Collins Canal, said Finvarb, adding that he is “in discussions with some top restaurant groups.”

The new South Beach property is next to the Marriott Residence Inn South Beach, which Finvarb Group developed and which opened in March of last year.

Miami-Dade records show Sobe Alton LLC, led by Ronny Finvarb and his father Richard Finvarb, bought the Boston Market site for $4.5 million in March 2014.

The property is close to the planned 17 West, a mixed-use building at 1698 Alton Road and 1681-1683 West Avenue, which is being developed by Rock Soffer of Turnberry Associates, Elion Partners and members of the Sredni family. In addition to an 11,500-square-foot Trader Joe’s, the five-story building will also have loft-style apartments, townhomes, residential amenities, and a parking garage with about 160 spaces set aside for the public.

The Finvarb Group, whose principals are Ronny and Richard Finvarb, was founded nearly 40 years ago. The company has developed real estate projects including hotels, high-rise condominiums, multifamily apartment buildings, single-family developments, office buildings and retail, according to the group’s website.

The group’s recent hotel projects, in addition to the Marriott Residence Inn South Beach, include the Marriott Courtyard Palm Beach Jupiter, the Marriott Residence Inn Downtown Tempe and the Marriott Courtyard San Antonio Riverwalk. The firm also owns the Marriott Courtyard South Beach on Washington Avenue.

Source:: The Real Deal

Phil Gutman lands at Brown Harris Stevens as executive VP, managing broker

Phil Gutman

Sales and marketing executive Philip Gutman has joined Brown Harris Stevens as executive vice president and managing broker of the firm’s Miami Beach and Key Biscayne offices, Gutman told The Real Deal.

Gutman left Douglas Elliman Development Marketing earlier this month, where he was vice president. At BHS, he’ll be tasked with overseeing the firm’s expansion in South Florida and bringing on new developments.

BHS entered the Miami market in June 2015 with the purchase of Mark Zilbert’s Zilbert International Realty, and then opened a second office in Miami Beach. The New York-based firm, which had a small presence in Palm Beach since 1999, closed on the purchase of Vivian Dimond’s Avatar Real Estate Services in January. The brokerage also just opened its Key Biscayne office at the Galleria, 328 Crandon Boulevard.

Gutman will be working with Zilbert, Dimond and BHS co-chairman William Lie Zeckendorf to oversee South Florida. Zilbert will take on an advisory role at BHS, focusing on technology and sales programs for agents, staff and support for senior management, according to a press release.

Founded in 1873, Brown Harris Stevens has offices throughout New York City and the Hamptons in addition to South Florida. Firms like One Sotheby’s International Realty and Elliman have also been expanding in the tri-county region by acquiring smaller firms.

Gutman spoke with several firms over the past few months, but decided on BHS because of its connection to New York City and that it is “positioned properly to help grow and expand in the next cycle.”

“They’re very strong with new development in New York, and now in South Florida, I’ll be putting infrastructure in place for new development in Miami,” Gutman said, adding that he’ll be focusing on targeting a handful of projects. He said the firm would like to pick up a few projects that want a change but never had the option to go to Brown Harris Stevens.

Over the past three-and-a-half years, Gutman led Elliman Florida’s portfolio of more than $3 billion of new development, which included 1 Hotel & Homes South Beach, the Ritz-Carlton Residences, Miami Beach and Monad Terrace.

For now, he will focus on adding agents, acquiring firms and bringing on sales and marketing exclusives. “I think the summer needs to come and go, and by the fourth quarter of this year, you’ll start to hear about some new projects coming to market,” Gutman said.

Source:: The Real Deal

Miami home prices up 6% in March, year-over-year: S&P CoreLogic Case-Shiller

Aerial view of Coconut Grove in 2012 (Credit: Oliver H.)

Miami home prices rose 6 percent in March, year-over-year, marking the 11th highest increase nationwide, according to the latest S&P CoreLogic Case-Shiller Index.

The newly released report, which tracks 20 major metropolitan areas in the country, shows home prices in Miami increased by 0.3 percent from February to March. From January to February, Miami home prices remained flat.

U.S. home prices rose 5.8 percent in March, setting a 33-month high. Seattle, Portland and Dallas reported the highest annual gains in the country, with prices in Seattle increasing 12.3 percent year-over-year. Denver, Boston and Detroit all saw prices increase by at least 7 percent in March.

In New York, home prices rose only 4.1 percent year-over-year, the weakest pace among 20 major cities measured by Case-Shiller. The index does not include condos and co-ops, meaning it only captures a share of the New York market and serves as more of a bellwether of the suburban market. Prices grew by 5.3 percent in Los Angeles.

David Blitzer of S&P Dow Jones’ index committee said in a press release that the “unusually low inventory of homes for sale” is one factor pushing prices higher. Increasing mortgage rates could also keep homeowners from selling, he said.

In Miami, the median sales price of single-family homes has been rising for 65 consecutive months, the Miami Association of Realtors reported last week. In April, the median sales price for single-family homes was up 12.3 percent year to $320,000. – Katherine Kallergis

Source:: The Real Deal