South Florida total retail transactions increased 7.5 percent year-over-year in 3Q 2018, according to the 3Q 2018 The Quarterly Report – South Florida Commercial Real Estate released by data firm Vizzda (Visual Data) and the MIAMI Association of Realtors Commercial (MIAMI Commercial).

Miami-Dade, Broward and Palm Beach counties registered 216 combined retail transactions in 3Q 2018, up 7.5 percent from the 201 retail transactions posted in 3Q 2017. It marked South Florida’s second consecutive quarter of retail transactions growth and the first time since 3Q 2017 South Florida retail has recorded more than 200 transactions in a quarter.

“Retail follows rooftops,” said MIAMI Commercial President Jennifer Wollmann, an associate with EWM Realty International in Coral Gables. “South Florida’s population boom, a strong housing market and booming tourism are driving South Florida retail growth. As Broward and Palm Beach counties residential population grows, many retailers are finding opportunities in Broward and Palm Beach.”

Miami-Dade County and Broward County Retail Transactions Each Jump More than 15 Percent

Miami-Dade County’s 83 retail transactions in 3Q 2018 represent a 15.2 percent increase from 2Q 2018 and tie the second-highest quarterly total for the past five quarters. Dollar volume for retail property also enjoyed its second highest value from 3Q 2017.

At $477 per square foot, Miami retail valuations for retail property are nearly 67 percent above the average realized in 2Q 2018 and represent the first quarterly average above $400 in over a year.

Broward County retail sales increased to the highest level in more than year, recording 83 transactions with strong quarterly and annual growth.

Palm Beach, meanwhile, posted 50 retail transactions in 3Q 2018, up 6.4 percent year-over-year. The figure tied with 2Q 2018 for the most sales in over a year. Consistent transaction volume of about 50 sales has yielded a wide range of dollar and square footage volumes over the previous year.

Broward County Industrial Average Price Increases to $131 per Square Foot

Average price per square foot in Broward County rose to $131 per square foot in 3Q 2018, the highest for the market since 1Q 2018.

In Miami-Dade County, the total square footage of industrial transacted continued its growth from 2Q 2018 and registered a total above 3.5 million square feet for the first time since 3Q 2017.

Palm Beach industrial sales were down for a second straight quarter resulting in declines in square footage and dollar volume transactions. But the magnitude of the reduction of the latter two metrics was roughly the same, resulting in per square foot valuations that were unchanged from 2Q 2018.

Miami-Dade County Multifamily Dollar Volume Jumps 133.6 Percent 

Miami-Dade County multifamily dollar volume increased by more than 133.6 percent, from $232.9 million in 2Q 2018 to $544.2 million in 3Q 2018.

Broward County saw substantial increases in both dollar volume transacted and units sold on transaction volume that was consistent with the previous two quarters. Broward multifamily realized its highest per unit valuation in more than a year at just over $203,600 per unit in 3Q 2018.

Palm Beach multifamily total dollar volume hit its lowest point in five quarters. Dollar per unit fell by 34.6 percent to $153,000.

Click here to read the complete 3Q 2018 The Quarterly Report – South Florida Commercial Real Estate.

 

Source: PRWeb

Stockbridge Capital Group has acquired Powerline Business Park, an industrial park in Pompano Beach, for $62.3 million.

Cushman & Wakefield negotiated the deal on behalf of the seller, Industrial Development Co., as well as arranged $31.1 million in acquisition financing through State Farm Insurance Co., for the buyer.

Located at 4100 Powerline Road, the property comprises 443,720 square feet spread across 24 small-bay buildings. The assets were constructed on a 26.4-acre site between 1983 and 1994.

Powerline Business Park offers features including dock-high truck loading and grade-level, air-conditioned office space, electric roof ventilators in shop areas, city-served water and sewer, skylights, overhead 12- by 14-foot doors, 16- to 20-foot clear heights, illuminated parking, heavy duty three-phase electrical service to each bay and professional landscaping and exterior maintenance. Major tenants at the 96.8 percent-occupied park include First World Imports, Bernoti Corp. and CMC Bakery.

The buildings provide convenient access to Interstate 95, Florida’s Turnpike, Fort Lauderdale-Hollywood International Airport, Palm Beach International Airport, Miami International Airport, Port Everglades, PortMiami and Port of Palm Beach.

The Cushman & Wakefield Capital Markets team of Vice Chairman Mike Davis, Executive Directors Scott O’Donnell, Rick Brugge and Michael Lerner, Managing Director Dominic Montazemiand Senior Associate Greg Miller represented the seller. Senior Director Jason Hochman of Cushman and Wakefield’s Equity, Debt and Structured Finance Group secured the low fixed-rate loan. Earlier this month, members of the same team negotiated the $12 million sale of a five-building industrial portfolio in West Palm Beach and Riviera Beach on behalf of The Silverman Group.

“The South Florida industrial market remains a target for investors with demand driven by the exceptional performance of existing assets, the scarcity of for-sale product and limited development opportunities,” Scott O’Donnell said in a prepared statement.

 

Source: Commercial Property Executive

Miguel Pinto of APEX Capital Realty just signed the first two tenants at their Little River listing, known as an innovative warehouse complex that illustrates some of what he views as the top three trends/predictions for next year.

The Little River project at 300-320 NE 75th Street is an innovative warehouse complex that has been developed into a flexible multi-business space concept offering tailored tenant build-outs in 24 industrial spaces. They can be easily built-out and tailored to meet different space needs of each tenant and their particular individual business.

APEX Capital Realty founded in 2017 as a local boutique brokerage within a year began adding staff and expanding to a national market. Their focus continues to specialize on the urban core of Miami as well as other major cities throughout the US.

What are those three trends that he predicts for GlobeSt.com?

1. Tokenization, a new method of financing real estate deals.

“It will change how commercial real estate is done for the better in 2019,” he says. It makes ownership easier by using cryptocurrency into tokens that are stored on the blockchain. The effect is to allow virtually anyone to invest in a new and unique real estate asset class.

“For real estate investors, tokenization will be a new way to raise equity or debt on deals,” he says. It will also reduce a traditional reliance on banks and financial institutions for capital.

2. Opportunity Zones.

“This versatile program has the potential to stabilize and revitalize distressed neighborhoods and surrounding communities by unlocking private investment capital through a series of tax benefits,” he says.

The provision allows individual and corporate investors to defer capital gains tax until 2026 if those gains are reinvested into new construction or major rehabilitation of projects in economically depressed areas via designated opportunity funds.

“The expectation is that the added tax incentives will make investment in these disadvantaged areas just a little more enticing and add another option to the capital stack,” he says.

3. Industrial development/ecommerce is on the rise.

“The expansion of e-commerce is far from over, and the need for facilities to accommodate a denser distribution network is acute and will only increase over time,” he says.

He sees the redevelopment of infill properties becoming distribution facilities to increasingly meet market needs.

“I see investment in industrial space as a good bet for 2019 in all markets in the region. Last-Mile distribution centers will keep being built and filled as communities grow and expand and delivery time keeps shortening,” he says.

 

Source:  GlobeSt.

A joint venture led by 13th Floor Investments, Key International and CDS International just bought the former Office Depot headquarters in Delray Beach for $33 million, with plans to redevelop the property into one of the biggest projects in the city’s history.

New York-based TransAmerica Life sold the 43-acre site at 2100, 2300 and 2350 South Congress Avenue and 2200 Old Germantown Road. Avison Young’s Keith O’Donnell represented the seller in the deal.

“The developers plan to build about 600 apartments and about 150 for-sale townhomes along with 100,000 square feet of retail and restaurant space,” said Arnaud Karsenti, managing principal of 13th Floor Investments.

Apartment rents will average about $2 per square foot, or about $2,000 a month for a 1,000-square-foot apartment.

Key International and 13th Floor will be handling the residential component of the development, while Boca Raton-based CDS International will be in charge of the commercial space, according to Karsenti.

“CDS already owns the Arbors office building nearby on a 7-acre property that will be incorporated into the project,” Karsenti said. “The as-yet-unnamed development is expected to break ground later this year. First, however, the developers will need to demolish three existing buildings on the site that have been vacant for a number of years.”

Karsenti expects the project could be finished about three years from the time it breaks ground.

“The center point of the development will be a park, which will attract people who have dogs, children or just want some green space,” Karsenti said.

The project was designed by RLC Architects. The plans were recently confirmed by the Delray Beach City Commission.

Delray Beach has experienced a rush of interest from developers who are attracted to the Palm Beach County city because of its walkable downtown and its proximity to the ocean. Among them, six bidders are trying to transform downtown’s West Atlantic Avenue’s 600 to 800 block into a bustling mixed-use project and National Realty Investment Advisors plans Ocean Delray, a 19-unit boutique condo development.

 

Source: The Real Deal