Monthly Archives: March 2018

Firm tied to LA Rams’ Stan Kroenke sells retail plaza in North Lauderdale

Arena Shoppes Phase II renderings and Stanley Kroenke (Credit: Arena Shoppes, Twitter)

A partnership tied to the Kroenke Group, led by billionaire Stan Kroenke, just sold a retail strip center in North Lauderdale for $7.15 million, property records show.

Miami-based Arena Capital Holdings is the buyer of the portion of Arena Shoppes, which includes about 37,200-square feet of retail space at 7210 and 7290 West McNab Road. The seller is a partnership between North Lauderdale Associates, led by R. Otto Maly; and Gordon Property Company III, led by James N. Gordon. Maly was formerly vice president of the Kroenke Group, which has partnered with Gordon in the past to invest in shopping center development projects. Kroenke owns multiple sports teams including the NFL’s Los Angeles Rams.

The deal breaks down to about a little more than $190 per square foot. Previous sales information was not available. Miami Lakes-based BankUnited provided $6.76 million in financing.

Arena Capital Holdings, led by Oscar Rodriguez Jr., bought the first phase of the property at 7300 West McNab Road in 2016 for $7 million. Tenants there include Ross Dress For Less, Youfit Health Clubs and Dollar Tree.

The second portion of the project was built in 2000, records show. Tenants include China Wok and a Metro PCS. Spaces range from 1,200 square feet to 10,000 square feet, according to marketing materials.

Arena Capital Holdings also owns a recently completed retail center in Hialeah, anchored by a Hobby Lobby.

Source:: The Real Deal

Miami commission to vote on developer incentives, Overtown apartment complex and two mixed-use projects

Westdale Wynwood and 1515 Miami River LLC

Miami commissioners on Thursday will consider new rules that would award developer incentives to save historic properties as part of a jam-packed zoning agenda that includes approval requests for an Overtown apartment complex adjacent to David Beckham’s soccer stadium site and two mixed-use projects near the Douglas Road Metrorail Station and on the Miami River.

As luxury condos have dominated most of the new construction in Miami in recent years, city officials are looking for ways to spur developers to build more apartments that cater to working class residents. Under a proposed resolution, the city would allow for the developable density of historically designated sites to be transferred to projects located in a transit-oriented development zone, such as being near a Metrorail or Metromover station.

According to a fact sheet on the legislative measure, it is geared to help encourage the preservation of historic sites while at the same time giving developers incentives to create more housing in projects close to mass transit hubs. The fact sheet cites a study by the New York University Furman Center that shows that Miami is the least affordable city to the median renter out of 11 metropolitan areas studied.

Arnaud Karsenti, managing principal of 13th Floor Investments, said it is a wise proposal. In 2016, the company and its partner The Adler Group won a ground lease from Miami-Dade County to develop a mixed-use project with 970 residences, a 150-key hotel, 70,000 square feet of retail space and a public plaza on a parking lot next to the Douglas Road Metrorail Station in Miami. “I think it’s a fantastic move by the city that protects historic property while incentivizing smart development,” Karsenti said via email.

The proposed resolution is similar to the transfer of air rights from historic sites to new projects. Since 2009, the city has allowed the owners of historic properties or properties in historic districts to sell the air rights above their buildings to developers. By acquiring air rights, developers could increase the height of their projects in other areas of the city where high density, high-rise buildings are allowed. It also allows for an increase in the floor-to-area ratio of projects and allows for building taller towers. In Miami the practice is called transfer of development rights, or TDRs.

Also on the agenda:

  • Omega Grid Development wants to increase the allowable height and density of two properties in Overtown in order to build East River Residences, a 15-story multifamily building with 194 units and 150 parking spaces. About 20 percent of the units would be reserved for people earning up to 50 percent of the area’s median income. The rest of the building would also be marketed as “workforce housing.” Omega Grid is under contract to buy the two lots at 1136 and 1146 Northwest 8th Avenue and 1145 and 1157 Northwest 11th Street Road.
  • Westdale Real Estate Investment Management wants to rezone 19 duplexes and single-family homes for commercial use so the company can develop Westdale Wynwood, a 202-unit apartment complex with some office and commercial space. The properties are located about a block north of Northwest 29th Street between Northwest Second Avenue and Northwest Third Avenue. In November of last year, the city’s planning and zoning appeals board recommended denial.
  • Another mixed-use project on the agenda is a proposal by 1515 Miami River LLC to redevelop a 1.75 acre site at 1515, 1529, and 1543 Northwest South River Drive. The development consists of an undetermined number of apartments and commercial spaces and features a pool deck facing the river, a club and spa, and a connection to the Miami Riverwalk.

Source:: The Real Deal

Florida bills to protect affordable housing fund dead in session

(Credit:, Wikimedia Commons)

Two Florida bills aiming to protect affordable housing funds from being diverted elsewhere died in a subcommittee during the Florida Legislature session.

It’s the 11th consecutive year that funds from the William E. Sadowski Affordable Housing Act will be used to fill gaps in other budgets. Florida bills SB 874, sponsored by Naples Republican Sen. Kathleen Passidomo, and HB 191, sponsored by Tampa Democrat Sean Shaw, would have prevented the money from being used for other priorities, according to the Miami Herald. They died in the state’s transportation and tourism appropriations subcommittee before the Florida Legislature ended its 2018 session on March 11.

The affordable housing act, which collects funds for housing for the elderly and disabled, is expected to generate between $308 million and $322 million this year. The money is collected from a 20-cent surcharge for every $100 paid on real estate transactions.

More than $180 million will be swept for other priorities and about $109 million will be left for affordable housing, Florida Watchdog reported.

Gov. Rick Scott signed the $88.7 billion budget on Friday. It also sets aside $100 million for Florida Forever, the state’s environmental land acquisition fund. [Watchdog] – Amanda Rabines

Source:: The Real Deal

Big Four no more? Fidelity is buying rival Stewart for $1.2B

Raymond Quirk

The “Big Four” title insurance players are about to become the Big Three.

Industry heavyweight Fidelity National Financial has signed an agreement to buy rival Stewart Information Services Corp. for $1.2 billion in cash and stock, the company said Monday. Pending shareholder and regulatory approval, the deal could close by the second quarter of 2019.

If approved, Fidelity will emerge as the nation’s largest title company several times over. Before the merger, it reported $7.2 billion in revenue and controlled 33 percent of the national market, according to industry estimates.

In a statement, Fidelity CEO Raymond Quirk said the merger would create “significant operational efficiencies,” including savings of up to $135 million. He added: “We are very familiar with Stewart in the marketplace and see multiple areas where we can assist and accelerate Stewart’s growth plans.”

In 2017, Stewart reported revenue of $1.9 billion, down from $2.1 billion in 2016. In recent years, activist investors have been vocal about the company’s declines. Last year, Stewart’s board began looking at “strategic alternatives” for the company in 2017 and determined that merging with Fidelity was the best option, chairman Thomas Apel said Monday.

Fidelity — whose brands include Fidelity National Title, Chicago Title, Commonwealth Land Title and National Title of New York — had revenue of $7.2 billion in 2017 with $1 billion in earnings.

Fidelity said it would save $135 million by acquiring Stewart, even after assuming its $109 million in debt.

Nationally, title is a $15 billion industry that’s been dominated by Fidelity along with First American, Old Republic and Stewart. The “big four” control 90 percent of the market, according to data from the American Land Title Association.

In 2016, New York title companies underwrote $1.1 billion worth of premiums — about 10 percent of the national pie that year.

In New York City, Stewart provided title for 42 of the top 1,000 priciest deals between December 2014 and June 2017, according to an analysis by The Real Deal. Those deals were valued at $2.73 billion. Fidelity provided title for 94 of the top 1,000 deals during the same time, in deals valued at $18.38 billion.

The combined company will have around 44 percent market share, according to John Campbell, an analyst at Stephen’s, the investment bank. Campbell thinks that’s “doable” from a regulatory standpoint, he wrote in a note to investors Monday. “Recall, title insurance is already a heavily regulated industry with pricing, in many states, often set by regulators.”

New York title companies have faced scrutiny from state legislators over their marketing, which include notoriously lavish parties, dinners and entertainment.

Starting Feb. 1, the Department of Financial Services imposed strict regulations that ban such “inducements” in exchange of business. But last month, the industry’s trade group (and two title companies) filed a lawsuit challenging the rules and arguing that the rules would result in companies going out of business. Last week, the state Senate — which has sided with title companies on the issue — included language in the state budget to override the DFS rules.

Source:: The Real Deal

Pebb Enterprises rebuilds, shifts focus 2 years after devastating plane crash

Ian Weiner (Credit: Pebb Enterprises)

More than two years after a plane crash in Akron killed seven Pebb Enterprises employees, the Boca Raton-based real estate investment firm has rebuilt its team and is shifting its focus back to South Florida.

The company has been working quietly to rebuild following the devastating plane crash in November 2015.

A family run business, Pebb is now selling some of its out-of-state retail properties with plans to acquire office and industrial assets in South Florida, President Ian Weiner said. His father and grandfather, Bruce and Paul Weiner, started the company in the early 1970s. Ian’s brother, Jared Weiner, was among those killed in the crash.

Regarding the company’s strategy going forward, Ian Weiner said, “The question we’ve been asking ourselves and have the answer to is, do we deploy that capital outside of Florida? Everyone wants to be here,” he said. “Even in a market correction, South Florida is going to be pretty resilient.”

Earlier this month, the company sold a Cleveland-area shopping center for $15.8 million. In February, it sold a redeveloped center in Cincinnati for $29.1 million. The real estate firm also just put a property outside of St. Louis, Missouri on the market and expects it to sell for more than $20 million.

“Traditionally, we were more retail-focused but given the retail environment we’re seeing, we’re looking to diversity into office, medical office and industrial,” Weiner said.

Within Florida, Pebb is concentrating on Palm Beach County first, then Broward and Miami-Dade, the Tampa/St. Petersburg market, and Orlando. Pebb is planning on closing about three deals ranging from $20 million to $50 million in South Florida this year, with a focus on suburban office buildings in Boca Raton and West Palm Beach.

In 2015, Pebb lost principals Jared Weiner and Ori Rom, along with employees Gary Shapiro, Diana Suriel, Thomas Virgin, Nick Weaver and Diane Smoot in the crash. The group was on a trip scouting properties when the plane crashed into an apartment building that killed everyone on board, including the flight crew. A National Transportation Safety Board investigation found the Execuflight crew was to blame for the accident.

A number of the victims’ family members have sued the charter company since then, including Laurel Rom; Amanda Weiner, who is Jared’s widow; and Corey Shapiro. Ian Weiner declined to comment on pending litigation.

In the immediate aftermath, he said, “it never really crossed my mind” to sell the family owned business. “Fortunately we had dedicated people who stepped in and were able to manage us in the immediate aftermath.”

Source:: The Real Deal

PGA of America may move its headquarters from Palm Beach Gardens

PGA of America headquarters in Palm Beach Gardens (Credit: Damon Higgins/ Palm Beach Post)

An economic development official in Palm Beach County said PGA of America hasn’t decided whether to move its headquarters from Palm Beach Gardens, despite a report to the contrary.

In a report on March 7, reported March 7 that PGA of America had decided to move its headquarters to Frisco, Texas, which is about 27 miles north of Dallas. quoted unnamed PGA officials who called the organization’s Palm Beach headquarters “outdated and out of space.”

But Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, told the Sun-Sentinel daily newspaper that no decision on the location of its headquarters has been made by the PGA, short for Professional Golfers Association.

The organization has 200 employees at its 60,000-square-foot headquarters at 100 Avenue of the Champions in Palm Beach Gardens.

Smallridge said the Business Development Board has proposed as many as seven sites in Palm Beach County for a new PGA headquarters to keep the organization’s home office in the county.

She said PGA of America told her approximately nine months ago that it was seeking a new site for a headquarters to replace the existing one in Palm Beach Gardens.

PGA of America is separate from the PGA Tour, which is based near Jacksonville in Ponte Vedra Beach, where it plans to build a new 187,000-square-foot headquarters. The members of PGA of America include professional golfers and golf course owners. [Palm Beach Post] – Mike Seemuth

Source:: The Real Deal

Bank sells 1,031 apartments in Florida’s Panhandle for $35.68M

David Lynd

A joint venture acquired 1,031 apartments in the Panhandle region of Florida from a bank for $35.68 million, or about $34,600 per unit.

The joint venture bought the apartments in Escambia, Okaloosa and Santa Rosa counties from Bank of Oklahoma.

“The plan is to rehabilitate the assets, improve operations and position them for sale,” David Lynd, chief executive officer of Lynd Opportunity Partners, said in a prepared statement.

San Antonio-based Lynd Opportunity Partners acquired the apartments through its joint venture with Chicago-based Windy City RE, called WINLYND LLC.

The joint venture submitted winning bids in three of Bank of Oklahoma’s six separate auctions of apartments seized through foreclosure.

WINLYND LLC acquired a fourth portfolio of apartments from an entity that submitted the winning bid in the first of the six auctions.

The joint venture contracted with The Lynd Company of San Antonio to manage the acquired apartments.

The Lynd Company manages a portfolio of 23,000 apartments in 11 states, including rental properties in Jacksonville and South Florida. – Mike Seemuth

Source:: The Real Deal

Delray firm arranges $33 million of loans for acquisition of Orlando shopping center

Dellagio Town Center in Orlando (Credit: Business Wire)

Concorde Group Holdings LLC borrowed $33 million to acquire a retail center in Orlando.

The property, Dellagio Town Center, is an upscale shopping and dining destination spanning 109,890 square feet. It is adjacent to Residences at Dellagio, an 83-unit residential development.

Dellagio Town Center is 96 percent leased, and its tenants include such restaurants as Big Fin Seafood, Bravo, Dragonfly, Flemings and Urbain 40.

Concorde got financing for its acquisition of Dellagio Town Center in the form of a $28 million senior mortgage loan from Citi Global Markets and a $5 million mezzanine loan from Morrison Street Capital.

Delray Beach-based Dockerty Romer & Co., a commercial mortgage banking firm, arranged the acquisition financing for Concorde.

Concorde is a commercial real estate developer that focuses on revitalizing existing properties. The firm owns and operates more than 600,000 square feet of commercial real estate in the Southeast region of the United States and Puerto Rico. – Mike Seemuth

Source:: The Real Deal

Pembroke Pines retail center hits the market with a $20.65 price tag

Palm Square shopping center in Pembroke Pines (Credit: Bar Invest Group)

A shopping center in Pembroke Pines with a 96 percent occupancy rate is listed for sale with an asking price of $20.65 million.

The 77,621-square-foot Palm Square shopping center includes such in-line tenants as Batteries Plus Bulbs, Fastsigns and Sherwin-Williams and two tenants in freestanding restaurants, Dunkin’ Donuts and KFC.

Palm Square was built in 1987 on an eight-acre site with 600 feet of frontage on Pines Boulevard.

The shopping center’s location is within 1,000 feet of the 100-acre, mixed-use development Pembroke Pines City Center, which will have a 350-room hotel, more than 1,400 residential units and 445,000 square feet of retail stores and offices.

Within three miles of Palm Square is a population of 160,000 with an average household income in excess of $65,000.

Three senior directors of the Institutional Property Advisors division of brokerage firm Marcus & Millichap – Jean-Baptiste Ramet, Kirk Olson and Drew Kristol – are representing the owner of Palm Square, a private investment group based in Miami.

“Palm Square is a stabilized, service-oriented shopping center with strong in-place operating income and aggressive annual rent increases in a growing Broward County market,” Ramet said in a prepared statement. – Mike Seemuth

Source:: The Real Deal

Former Miami Dolphin lists mansion for sale for $7.29M

Ndamukong Suh (Credit: Mike Ehrmann/ Getty Images)

The highest-paid defensive player in the National Football League listed his waterfront mansion in Fort Lauderdale for sale with an asking price of $7.29 million.

Defensive lineman Ndamukong Suh listed the residence on Feb. 5, about five weeks before the Miami Dolphins released him.

Suh bought the 16,000-square-foot mansion in Fort Lauderdale’s Coral Ridge neighborhood for $6.5 million in 2015.

He bought the property after departing the Detroit Lions and signing a six-year contract with the Miami Dolphins valued at $114 million.

The six-bedroom, eight-bathroom residence has a movie theater, a wine cellar and 100 feet of frontage on the Intracoastal Waterway.

The previous owner, bank-card businessman Gary Palmer, completely rebuilt the residence in 2013 after buying it for $750,000 in 2009. [Sun-Sentinel] – Mike Seemuth

Source:: The Real Deal