Monthly Archives: August 2017

The Kushner property empire is under threat

666 Fifth Avenue and Jared Kushner

From TRD New York: Kushner Companies’ real estate kingdom is under threat from a ticking debt clock on the firm’s flagship asset and an ever-shrinking pool of investors willing to consider rescuing it. Meanwhile, the firm is retreating from one of its biggest Brooklyn bets and continues to face government scrutiny into the business dealings of its former CEO and current White House adviser, Jared Kushner.

The firm has sought capital from the likes of France’s richest man, a major Chinese insurer, South Korea’s sovereign-wealth fund and an Israeli billionaire family to redevelop 666 Fifth Avenue, its 41-story, 1.5 million-square-foot tower that put the company on the Manhattan map. None of those talks came together, according to a new investigation by Bloomberg. The building’s mortgage is due in 18 months.

“Reports that portray it as a distressed situation are just not accurate for the building or for the company,” the firm’s president, Laurent Morali
told the publication.

Morali, whose company paid a record $1.8 billion for the tower in 2007, maintains that 666 Fifth is “just one small piece of the portfolio.”

But Kushner Companies is also dialing back its bets in other parts of the portfolio. Many of the Kushner Companies’ holdings are hardly owned by the Kushners at all, including the company’s Gowanus development project, in which SL Green Realty holds a 95-percent stake. On Wednesday, RFR Realty announced it had taken a 100-percent interest in 90 Sands Street, one of the Dumbo properties that it was partnering with Kushner Companies on.

Steve Roth, whose Vornado Realty Trust must be bought out of its stake in 666 Fifth so Kushner Companies can convert it into a luxury supertall, reportedly said in a recent meeting that the building “would be worth a lot more if it was just dirt.”

Meanwhile, the company and its former CEO Jared Kushner are the subjects of separate federal investigations.

Kushner Companies’ struggles to get investors to take them seriously pre-date the Russia intrigue from the Trump campaign, however. As Bloomberg reported Thursday, before the campaign even started, Jared Kushner couldn’t get many to pay attention to him. Once Trump began to ascend politically, Jared advanced talks with the Chinese insurance company Anbang and Sheikh Hamad bin Jassim Al Thani of Qatar. Those deals, however, never got done.

All the while, the company was expanding its debt across its New York portfolio by taking out new mortgages. And back at 666 Fifth Avenue, debt payments have totaled more than net income almost every year since Kushner acquired the tower a decade ago. [Bloomberg] — Will Parker

Source:: The Real Deal

Courtelis scores $12M loan for planned shopping center in Naranja

Rendering of Coral Town Plaza

Miami-based Courtelis Co. just scored $12.1 million in financing for Coral Town Plaza, its planned shopping center in Naranja, property records show.

CTP One, an affiliate of Courtelis, scored a $3.3 million loan from SunTrust Bank and an additional $8.86 million loan from Mid City Community Sub CDE 25 LLC, a Bethesda, Maryland-based company and ST CDE XLI, LLL, an Atlanta-based company.

CTP Landowner, another affiliate of Courtelis, bought the site at 14325 Southwest 268 Street for $4.5 million in May. The 6.9-acre site is at the crossroads of U.S. 1 and Bauer Drive.

Elias Vassilaros, the executive vice president of Courtelis, could not be immediately reached for comment.

The Plaza has been approved for 57,000 square feet of retail development. Walmart has already signed a 20-year ground lease at Courtelis’ Coral Town Plaza. The Walmart would span 41,952 square feet, and the remaining 15,018 square feet will be for other retailers.

Last month, Courtelis sold a Walmart anchored retail center in Miami Lakes for $12.23 million. The site was developed by Courtelis in 2008.

Source:: The Real Deal

Meet Paul Manafort’s real estate fixer

From left: Yan Jiehe, Paul Manafort, Yulia Tymoshenko, Harry Macklowe, Fred Trump and Brad Zackson (Photo illustration by Lexi Pilgrim for The Real Deal)

From TRD New York: TRD Special Report: In late July, around the time the FBI raided his Virginia home, former Trump campaign chair Paul Manafort was out making real estate deals.

Manafort, who spent decades as a Washington power broker for oligarchs and dictators, was attending a meeting at the New York office of architecture firm Perkins Eastman. The group, which included representatives from engineering firm Langan, sipped Trump-branded water and perused printed materials.

There with Manafort was his client Yan Jiehe, the billionaire who heads Pacific Construction Group, China’s largest privately owned builder. Manafort had been working with Jiehe since at least the spring, advising the company on global infrastructure contracts. According to Brad Zackson, Manafort’s real estate fixer and the man who brought all the parties together for the July meeting, Manafort was helping Pacific identify U.S. construction firms that were ripe for acquisition.

At a separate meeting, Manafort and Jiehe posed for a photograph with principals of one of these potential targets, Munilla Construction Management, a Miami-based firm that has a Pentagon contract to develop a school for the U.S. Navy at Guantanamo Bay in Cuba. Zackson posted that photograph on his website.

At center, from left to right: Paul Manafort, Yan Jiehe, Brad Perkins and Brad Zackson

Manafort is one of the most scrutinized men in the country and a central character in Special Counsel Robert Mueller’s investigation into the Trump campaign’s ties to Russia. But despite the spotlight, he appears to be trying to put together major real estate deals with a motley crew from across the globe. (A potential deal between a foreign firm and a U.S. firm doing sensitive government work, such as Pacific acquiring Munilla, could attract the attention of the Treasury Department.)

A common denominator in those deals, both past and present, is Zackson, a veteran New York real estate operative who is far from a household name in the industry but has long aspired to be one.

“All I’m gonna say, you’ll see shortly, is it’s all lies,” Zackson told The Real Deal about the heat on Manafort and the media coverage he’s received. “Complete lies. I’m surprised at some of the people that are writing them.” Manafort did not respond to several requests for comment.

In 2008, Manafort and Zackson made an unsuccessful run at the Drake Hotel site (now home to 432 Park Avenue), backed by equity investments from a Russian metals billionaire and a Ukranian natural gas mogul who are both now suspected of criminal activity. That deal triggered a federal investigation now being run by Mueller.

In the decade since the Drake plan fizzled, Zackson, a convicted felon who became a protégé of Donald Trump’s father, Fred Trump, has tried to position himself as a master developer whose best projects are yet to come. Among these, he said, is a plan to build an apartment complex in Queens’ Willets Point neighborhood that would dwarf Stuyvesant Town and a run at the Roosevelt Hotel in Midtown.

Much like Manafort, Zackson’s real estate career is dotted with controversy. Deals tend to include a revolving cast of foreign tycoons, assorted cronies and, in at least one instance, Trump himself. In comparison with the likes of Bayrock Group principals Felix Sater and Tevfik Arif, Zackson is a lesser-known character from Trump’s old stomping grounds of high-stakes property deal-making. But understanding him is key to understanding the bare-knuckled, truth-optional world Trump inhabited and continues to reflect in his approach to the presidency.

“On the surface when he speaks to you, it seems like a great story,” Kevin Maloney, founder of Property Markets Group, said of Zackson, whom he’s battling in court. ”When you dig down, it’s not true — or it’s only 10 percent true. That’s the truth of it. There’s nothing beyond his stories, and when he gets to the end of the story, he will inevitably ask you for money.”

Get me Brad Zackson!

Now 57, Zackson is a stocky man who dresses like he wants to be taken seriously: pinstriped suits, waistcoats, a pair of glasses perched on his forehead and another pair dangling around his neck. His website is filled with photos of him posing with world leaders such as Bill Clinton and Fidel Castro, as well as New York politicians such as Andrew Cuomo and Rudy Giuliani. On his site he touts projects that never panned out, such as the Drake and Biscayne Shores in Miami Beach, as “predevelopment” achievements.

It’s a portrait of a well-connected macher that Zackson has put a lot of effort into cultivating. And with good reason.

In 1981, he was arrested on charges of criminal possession of a weapon and attempted murder in the second degree. Court documents show that Zackson, his brother Stephen and a third associate, Rory Schonhaut, allegedly attempted to shoot a club bouncer, Ronald O’Hare. Zackson dodged the attempted murder charge by taking a plea deal that saw him serve almost five years in prison, records show.

“The bouncer beat up this guy Rory and Rory came back and shot at the club’s door,” Zackson said. “It was just a bunch of kids fighting and I got accused of it also. We were just crazy kids from Queens. It was a terrible thing but it was 30 years ago.”

After his stint in prison, Zackson became a rental broker and quickly gained a reputation as a hustler who could get deals done. According to a 1995 Crain’s report, a limousine arrived one day at Zackson’s Jamaica Estates office. He had been summoned by Fred Trump, who owned many of the buildings Zackson was working in and wanted to meet the young man who was renting them out at a furious pace.

Zackson, who in those days sported a mustache similar to Fred’s, kept vacancies so low in the Trump Organization’s outer-borough portfolio that Fred put him in charge of all the company’s Queens buildings. Later, Zackson left the firm and focused his energy on his own brokerage and investment firm, Dynamic Group, after Fred, in his words, “aged out.”

From left to right: Brad Zackson, Fred Trump and Irving Eskenazi (Credit: Dynamic Worldwide Group)

He shared the Trump flair for publicity and self-promotion, dating “Footloose” star Lori Singer and organizing a “Sino-American Real Estate Conference” at the Plaza Hotel to attract Chinese capital that would let him go after bigger properties. On another occasion, Zackson held a $1,000-a-plate fundraiser for then-governor Mario Cuomo.

“I hired airplanes to fly over New York on election day that said ‘Giuliani + Cuomo: Don’t break up the team,” Zackson recalled.

“He just was very bold in the way he’d do things,” said Carolyn Schlam, a Los Angeles-based artist who ran marketing at Dynamic Group back then. “Brad was the best salesman. I was always saying that to him, ‘just be a broker,’ because he could have made so much money as broker, but he wasn’t satisfied. He wanted the limelight.”

Zackson found success as a property manager and supervising conversions of commercial and rental properties to co-ops and condominiums. But like Trump, he fancied himself as a big-league Manhattan owner and developer. In 1994, he acquired a commercial building at 21 Astor Place for $6.3 million in a bankruptcy auction with the aim of converting it into residential condos.

Even as his clout grew, some of the deals he pursued floundered. One of his investors, Jianjun Li, was accused of stealing $10 million from Chinese company SinoChem in order to invest in New York properties with Zackson. Many of Zackson’s projects ended in bankruptcy or selloffs. Those include the Astor Place site (eventually redeveloped by the Elad Group), 283 West Broadway and Biscayne Shores, a 14-acre parcel near Miami Shores in Florida.

Despite the patchy track record, some partners remember Zackson as bringing a lot to the table. Patrick Morelli, who teamed up with him on the West Broadway project, said Zackson had access to deal flow, since he knew all the right people.

“You’ve gotta have some kind of leverage,” he said. “If you’re not in the game, you’re not going to ever be in the game. He was in the game — that was worth its weight in gold.”

Views

432 Park Avenue is the skyline-defining cash cow that every developer dreams of building. The skinny supertall towers over Billionaires’ Row on the site of the former Drake Hotel, and its residential condos have a projected total sellout of over $3 billion. But its twisted route to become the symbol of the new oligarchy includes a tryst with Manafort and Zackson.

When Harry Macklowe took control of the Drake site in 2006, he hoped to build the city’s most ostentatious residential project. But his $7 billion overleveraged purchase of seven Equity Office towers unraveled his entire empire. Desperate for a bailout on the Drake site, he struck a deal in 2008 to sell a majority stake to an entity called CMZ Ventures for $850 million.

The “C” in CMZ was Arthur Cohen, an industry stalwart, now deceased, who had long faded into the background. The M and Z were Manafort and Zackson. The trio hoped to create a billion-dollar investment fund targeting distressed U.S. properties, of which there were plenty. The Drake was their biggest prize.

Jiehe and Zackson sit across from each other as tea and Trump Water is served. (Credit: Dynamic Worldwide Group)

Manafort and Zackson were neighbors in the Hamptons, and soon became friends and business associates. Zackson says he invested in Manafort’s film production business, Manhattan Pictures, best known for the 2005 film “The Dying Gaul.” The film, which flopped, is about a gay screenwriter forced to change the plot of one of his works to be about straight people.

Through CMZ, the partners planned to develop the Drake site into a 65-story “Bulgari Tower,” a luxury hotel-condo skyscraper with a private club and a mall with hologramed walls on which retailers could splash their brands. To get the Drake deal over the line, they were counting on one man’s money in particular: Dmitry Firtash, the Ukrainian gas tycoon that Manafort may have met while consulting for Ukraine’s ruling party, the pro-Kremlin “Party of Regions.”

In the fall of 2008, the CEO of Firtash’s company, David Brown, sent a letter to Manafort committing $112 million in equity to the project. The firm put a $25 million deposit into escrow.

The equity for the deal never came together, however, and with time running out, Macklowe needed a savior. Fund manager CIM Group swept in, buying the defaulted debt at a fat discount, and took over the majority equity stake in the project. All told, CIM’s investment was less than half of what CMZ had agreed to pay.

But Firtash’s $25 million deposit became the subject of at least three legal inquiries. First, the former prime minister of Ukraine, Yulia Tymoshenko, alleged in federal court in 2011 that Firtash used CMZ as a front in order to hide income illegally skimmed from his natural gas company RosUkrEnergo. Zackson was named a defendant in the case. Tymoshenko also claimed that Firtash never planned to close on any real estate deals and instead filtered the money back to Europe in order to fund Tymoshenko’s political adversary, Victor Yanukovych, who became president in 2010. (Yanukovych is now in exile in Russia and wanted for high treason in his native country. Firtash, meanwhile, is facing extradition to the U.S. from Austria over bribery charges.)

CMZ also had ties to Oleg Deripaska, an aluminum oligarch with close Kremlin ties: Deripaska, Manafort, and a Manafort associate named Rick Gates formed an investment fund called Pericles, through which Deripaska was set to make a $56 million investment in the Drake, according to court filings. In a memo included in the filings, Gates refers to Deripaska only as “Mr. D.” The U.S. government suspects Deripaska has links to organized crime and denied him a visa in 2008.

Tymoshenko’s attorney, Kenneth McCallion, said that shortly after he filed the now-dismissed suit against Firtash and the Drake team, the U.S. Attorney’s office opened a separate criminal investigation into CMZ, which according to a Bloomberg report has since been transferred to Mueller’s office.

“They [CMZ] had hundreds of companies and bank accounts and got wire transfers in from the Firtash people, supposedly looking at real estate stuff,” McCallion said. “But it ended up being one big money-laundering operation.”

McCallion suspects CMZ never intended to close on any of the deals.

“It’s not strange if you’re basically in the money laundering business — that’s the way to do it,” he said. “You don’t really want to close on deals, [because] then your money is tied up in brick-and-mortar. Whereas if you’re just collecting money for a deal, you can keep moving it around.”

Zackson, though, blamed the Drake miss on bad timing.

Arthur Cohen and Harry Macklowe (Credit: Dynamic Worldwide Group)

“This was nothing more than one of the great deals of New York, that crashed in 2008 when the market fell,” he said. “We worked around the clock for nine months with Harry Macklowe trying to make the deal work as the market collapsed.”

Macklowe did not respond to requests for comment.

According to emails obtained by the New York Observer in 2011, Zackson attempted to get Donald Trump in on the Drake. Zackson denies this and said he had planned to partner with Trump on a different project, at 12-18 West 55th Street. The pair dropped that deal, according to Zackson, because buying out the rent-regulated tenants at the building would be tricky. Representatives for the Trump Organization didn’t respond to requests for comment.

The biggest deals you’ve never heard of

Though it’s Manafort’s ties to Trump that may now be giving Zackson access to the kind of capital he’s been chasing all his life, he’s trying to keep his distance from the scandal surrounding the campaign.

“I worked for Mr. Trump’s father and I have a relationship with Paul, but I have nothing to do with their campaign — nothing to do with any of that,” he said. “I’m more interested in doing my work, you know?”

Zackson said he’s busy putting together a series of extraordinary deals that he describes on his site as “conceptual plans.” His detractors, however, say they are pie-in-the-sky.

On Aug. 24, he said the Chinese firm that Manafort is advising, Pacific Construction Group, is considering partnering with him in a plan to redevelop a giant swath of land, partially owned by the Metropolitan Transportation Authority, in Willets Point. The project would include at least one new sports stadium and an “intermodal transit facility,” for the Air Train and long-term parking for LaGuardia Airport, as well as nearly 18,000 units of middle-income and affordable housing. By comparison, Stuyvesant Town-Peter Cooper Village, Manhattan’s largest rental complex, has 11,250 units.

Brad Perkins, a principal at Perkins Eastman, confirmed that his company was working on the project for Zackson, though he admitted his client’s outlook was sometimes too rosy.

Zackson “only has an optimist button on his keyboard,” Perkins said.

A representative for the MTA said it has no requests for proposals out on Queens development sites. Sources said, however, that it’s not uncommon for developers to send in unsolicited proposals.

According to Zackson, Manafort is not involved in the development of the project, though he said Manafort could pocket a consulting fee from Pacific should they choose to invest.

During the July meeting at Perkins Eastman, the group discussed the Chinese company’s aspirations in the U.S., which include potentially acquiring major construction firms and investing in U.S. infrastructure.

When asked if Munilla — the Miami-based construction firm whose principals Jorge and Fernando Munilla are in the photograph with Manafort and Jiehe — was one of the targets, Zackson would only say that Pacific wanted to acquire a Miami-based firm.

Executives from Munilla Construction with Manafort and Jiehe. (Credit: Dynamic Worldwide Group)

If Pacific did buy Munilla, it would put the firm at the helm of a plan to build the Navy school at Guantánamo, a $66 million Pentagon contract Munilla won last year. Pacific’s involvement could attract the attention of the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments and assets for national security risks.

According to a June report in Politico, Pacific tapped Manafort explicitly so that it could have access to the Trump administration. Sources told the outlet that a separate Chinese company was interested in acquiring Puerto Rican infrastructure. Manafort, according to Politico, had told an attorney involved that he could get the Trump administration to bless such a deal.

Executives at Munilla did not return multiple calls seeking comment, nor did Pacific.

Another property on Zackson’s radar is the 1,015-room Roosevelt Hotel. Sources said that hotelier Shahal Khan, founder of Trinity White City Ventures, which made plays for the Plaza Hotel and Dream Downtown in 2015, spoke with Zackson several months ago about a potential deal to buy the Roosevelt, which is owned by the Pakistani government through its national airline, PIA.

Khan confirmed he was interested in buying the hotel, and plans to offer north of $500 million for it. He said, however, that neither Zackson nor Manafort is involved in his bid. A spokesperson for PIA could not be reached.

Zackson’s relative anonymity stems from his inability to put money into projects.

“He ran around with a bunch of different partners,” said Andrew Gerringer of the Marketing Directors, a new development marketing firm that consulted on a plan by Maloney’s Property Markets Group and the Hakim Organization to redevelop the Clock Tower in Long Island City. “He was never strong enough to do something on his own, but he always has good ins with the government. He was like the connector – he would find a property and someone else would put up the money.”

In April, Zackson filed a $400 million lawsuit against PMG over the Clock Tower site. PMG and Hakim looked to build a condo-rental tower project, but sold the site to the Durst Organization when they couldn’t score financing.

Zackson was working with Hakim principal Kamran Hakim on the project through an entity called Dynamic Hakim. By selling the site, Zackson alleges, PMG cost him a share of agreed-upon profits from the redevelopment. He described Maloney as a “shim-sham con man.”

“I should be a pretty wealthy guy if it wasn’t for partnering with PMG,” he added.

PMG rubbished his claims, describing Zackson as a “failed and disgruntled former broker who is living beyond his means and who did not invest any money in the deal.” Zackson said he is still involved in another project with the duo, at 42-50 24th Street in Long Island City. (Sources close to PMG disputed this.) Several sources confirmed that Fisher Brothers is now involved in the project.

Zackson’s value, sources said, lies in his tenacity, his ability to navigate zoning restrictions, and perhaps most importantly, his Rolodex of both public officials and private investors. But those who have the funds get to call the shots.

“He gets himself in these situations and doesn’t have any control of them because he has no money,” Gerringer said. “He’s left there with no say in anything. He has to take what he’s given. He’s always out there looking for guys who have money but need some extra piece that he can spin his story to.”

Home improvement

377 Union Street, Carroll Gardens, Brooklyn (Credit: Will Parker)

In 2012, Paul Manafort bought a charming brownstone in Carroll Gardens for his daughter, Jessica. That property, at 377 Union Street, has since become the subject of both state and federal investigations.

At question: a series of mortgages made by the Chicago-based Federal Savings Bank, which is headed by Trump campaign adviser Steve Calk. The loans on 377 Union and two other Manafort-owned properties in the Hamptons and Virginia total $16 million – nearly a quarter of the bank’s total equity capital. Experts told WNYC earlier this year that the loan transactions resembled money laundering. Neighbors have complained that the vacant home is a dilapidated mess.

Sources said that the person handling renovations on Manafort’s behalf was Brad Zackson. Zackson confirmed this.

“I’m just helping a friend out who the world is attacking for no reason,” he said.

Source:: The Real Deal

Deposit requirement drops to 20% for Riva in Fort Lauderdale

Rendering of Riva and Bradley Deckelbaum

Deposits are going down at Riva in Fort Lauderdale, amid a push to sell the remaining condo units.

Developer Bradley Deckelbaum’s Premier Developers just lowered the deposit requirement to 20 percent as the luxury condo project nears completion. The standard, especially in Miami, has been to require 50 percent at contract. Riva previously required 35 percent deposits.

Riva is currently more than 60 percent sold, according to a spokesperson.

In South Florida, the Related Group was the first major developer to reduce condo deposit minimums this cycle, starting with Brickell Heights and SLS Lux two years ago. Earlier this year, the Melo Group lowered deposits to 35 percent and 20 percent for units at Aria on the Bay, which had just topped off at 80 percent presold.

Premier plans to start recording closings at Riva in about three months.

The 15-story, 100-unit project, at 1180 North Federal Highway along the Middle River, closed on a $65 million construction loan in May. New York-based Madison Realty Capital is the lender.

Once completed later this year, Riva will have a 40,000-square-foot club deck on the fourth floor with a 7,000-square-foot gym, a 2,500-square-foot club room, a 1,500-square-foot kitchen, private wine lockers, a dog park and a lap pool.

Unit prices range from the $748,000 to penthouses starting at $2.25 million. Condos come with boat slips, and will range from more than 1,500 square feet to about 8,800 square feet. The building will also have about 8,000 square feet of commercial space on the ground floor.

Falkanger Snyder Martineau & Yates designed the building, which will have a 400-foot-long landscaped river walk, a water taxi, water sports center with a private dock, and a spa. General contractor Moss & Associates topped off construction in February.

Source:: The Real Deal

Harvey’s wrath: $55B worth of Houston commercial real estate may be under water

Flooded Houston (Credit: Getty Images)

From TRD New York: As much as 27 percent of Houston’s commercial real estate may be impacted by flooding in the wake of Hurricane Harvey, according to a CoStar analysis of flood maps.

The 12,000 potentially affected properties span 433 million square feet and have a combined value of $55 billion, the real estate data company said. They include 167,281 apartments, 73 million square feet of retail space, 60 million square feet of office space and 11 hospitals.

The most heavily flooded part of the city, Southwest Houston, includes 66,000 apartments. CoStar estimates that 30 percent may be impacted by the flood.

In a press release Thursday, Howard Hughes Corporation, which owns more than 4 million square feet of real estate in the Houston area, said its properties are “fully operational and open with only minor damage.”

Risk modeling company RMS previously estimated that Harvey could cause up to $90 billion in damage across the southeastern U.S.

Earlier today the New York Times reported that the fast pace of real estate development in Houston — which was founded by real estate entrepreneurs from New York — over the past decades likely worsened the storm’s damage because it leaves fewer areas for floodwaters to recede to. “There could have been ways to have more green space and more green infrastructure over the years, and it just didn’t work that way, because it was fast and furious,” Rice University civil and environmental engineer Phil Bedient told the Times. “It’s been known for years how to do it, it just costs the developers more money to do it that way.”

The aftereffects of the last hurricane/superstorm to devastate a U.S. metropolis, Sandy, cost New York property owners and their insurers an estimated $8.6 billion in damage. But as The Real Deal reported in November, the industry has been slow to learn its lessons and prepare for future natural disasters.

Source:: The Real Deal

Pinnacle Housing Group’s affordable housing project in Oakland Park opens

Oakland Preserve

An affordable 80-unit rental housing development in Oakland Park, developed by Pinnacle Housing Group and a Broward County-affiliated partner, just opened, according to a company release.

The development, Oakland Preserve, at 3600 Northeast Second Avenue broke ground late last year and reportedly cost $17 million to complete.

The affordable housing development offers one-, two- and three-bedroom apartments, priced from $784 to $1,085 per month, according to the release. Residents will have access to a neighborhood gym, playground and recreational space overlooking the water.

Applicants qualified to rent an apartment at Oakland Preserve must have income at or below 60 percent of the area median. Total occupancy is anticipated by early September, according to the release.

In a recent Bisnow panel, a number of developers stressed the need to build more affordable housing projects in South Florida, including Joel Altman, chairman and CEO of Boca Raton-based Altman Companies. “There’s already a rental shortage” in the region, Altman said.

But some South Florida developers have allegedly abused some of the financing and lucrative tax credits tied to affordable housing projects – including an entity affiliated with the Pinnacle Housing Group. In March, principals at the Pinnacle Housing Group affiliate DAXC settled with federal prosecutors for $5.2 million after the government accused them of inflating costs for low-income housing projects. – Amanda Rabines

Source:: The Real Deal

Greystar takes out $88M construction loan for downtown Fort Lauderdale project

Rendering of 790 East Broward Boulevard Inset: Ashley Heggie

Greystar just scored an $88.1 million construction loan for a high-rise rental tower in downtown Fort Lauderdale, property records show.

Northwestern Mutual Life Insurance Company provided the financing for the project at 790 East Broward Boulevard. Greystar paid $19.5 million for the site in May. It encompasses three separate parcels, including a nearly 26,000-square-foot office building, parking lot and five-lane drive-through teller.

Records show Greystar entity GUGV 790 Broward Property Owning LLC secured the loan. Greystar’s managing director of finance Ashley Heggie was not immediately available for comment.

The city of Fort Lauderdale recently approved the site for a 25-story, 329-unit apartment tower with 6,871 square feet of ground-floor retail space. Records show the property spans about 1.92 acres.

In a previous interview, Todd Wigfield, senior managing director of Greystar Development and Construction Services said the building’s main tenant, Chase Bank, will move back into the building once it’s complete. He added that construction was set to begin as soon as Greystar relocates Chase to a new, temporary location.

Apartment and condo buildings have been popping up around the downtown Fort Lauderdale area. Nearby, Related Group is building Icon Las Olas, a 455-foot tall condo tower. The Kolter Group is also planning 100 Las Olas, a 45-story mixed-use condo tower.

Greystar is a national owner and builder of apartments. It currently operates four luxury apartment communities in Fort Lauderdale, including Blue on Marina Boulevard, The Queue, Solmar on Sixth and Elan 16Forty. The company is the largest operator of apartments in the United States, managing over 400,000 units in over 150 markets globally, according to its website.

Source:: The Real Deal

Russian developer who pitched Trump’s Moscow tower has South Florida ties

Rendering of the Conrad Fort Lauderdale Beach, Felix Sater and Donald Trump

The Moscow-born developer who pitched the development of a Trump Tower in Moscow and promised to get Donald Trump elected has ties to South Florida, according to a new report.

Earlier this week, the New York Times reported that real estate broker and developer Felix Sater emailed Trump’s attorney, Michael Cohen, to sell him on the proposed tower, writing in emails to Cohen that, “Our boy can become president of the USA and we can engineer it.”

Sater was also the driving force behind what is now the Conrad Fort Lauderdale Beach, a condo-hotel that will finally open in September, a decade after it was originally planned to open, according to the Miami Herald.

The project launched in 2004 as the Trump International Hotel & Tower. At the time, Sater was an executive at Bayrock Group, which the newspaper reported was “part of the team entrusted to bring the tower to life.” The developer had obtained a licensing agreement with the Trump Organization, but litigation resulted in the developer running out of money after spending $140 million on construction.

Sater’s criminal past was kept secret from investors because of his role as an FBI informant. Trump eventually distanced himself from Sater, who at one point used a Trump Organization business card.

Trump abandoned the Fort Lauderdale Beach deal in 2009. After years of delays and multiple lawsuits, another developer sold the project to Canadian developer Heafey Group for $100 million.

And now, Sater is part of the growing investigation into whether Trump’s team worked with the Russian government to win the 2016 election. [Miami Herald] – Katherine Kallergis

Source:: The Real Deal

Former Dolphins player Jason Taylor sells his Weston mansion

Jason Taylor and his Weston home

Former Miami Dolphins defensive end Jason Taylor sold his mansion in Weston.

Taylor sold the home at 2980 Paddock Road for $3.2 million, according to the Sun Sentinel. The sale is a loss for the NFL Hall of Famer, who purchased the 10,247-square-foot house for $3.6 million in 2006.

He listed the 1-acre estate in February for about $4.2 million with One Sotheby’s International Realty agent Ben Westby. The seven-bedroom, eight-bathroom house sold to Alloudin and Rubeena Bhullar earlier this month. Alloudin Bhullar owns and operates gas stations, according to the newspaper.

The property, in the Windmill Ranch Estates neighborhood, was built in 2005 and includes a gourmet kitchen, curved glass wine cellar, billiard room, home theater, cigar and poker room, pool deck, Jacuzzi, and 100 feet of waterfront.

Westby also listed and sold the home of former Dolphins cornerback Patrick Surtain in September.

GossipExtra first reported the sale. [Sun Sentinel] – Grace Guarnieri

Source:: The Real Deal

HUD announces changes on reverse mortgage program

Ben Carson in Miami (Photo by Joe Raedle/Getty Images)

The Department of Housing and Urban Development announced Tuesday that it plans to make changes, including raising premiums, to the reverse-mortgage program for senior citizens. The Trump administration believes the program, which allows lenders to take out a mortgage against the value of their home, needs better financial footing, according to The Wall Street Journal.

HUD plans to raise the upfront payment of the loan program from 0.5 percent to 2.0 percent, and will lower the annual payment from 1.25 percent to 0.5 percent. Changes will only be imposed on new borrowers, while existing reverse-mortgage borrowers will be able to keep existing rates.

Seniors that were formerly able to borrow as much as 64 percent of their home’s value will now only be able to borrow up to 58 percent. 650,000 borrowers currently have reverse loans through HUD and the Federal Housing Administration. In the early days on the Trump Administration, it announced that it would put the brakes on a directive by the Obama administration to reduce FHA mortgage premiums.

A spokesman for HUD Secretary Ben Carson told the Wall Street Journal, “Given the losses we’re seeing in the [reverse-mortgage] program, we have a responsibility to make changes that balance our mission with our responsibility to protect taxpayers.”

The program was created to ease pressure on seniors with fixed incomes and pensions with potential increases in everyday expenses by allowing them to take out loans through the Federal Housing Administration and private lenders. [WSJ] — Grace Guarnieri

Source:: The Real Deal