Virgin Trains’ Progress On Track With Its $4B West Palm Beach-To-Orlando Route

brightline train

Virgin Trains is on track for its expansion into Orlando as the scale of work continues to grow across Central Florida.

The $4 billion West Palm Beach-to-Orlando expansion, which includes 170 miles of new and existing track, is set to be completed in 2022 after starting work this past May. Since that point, crews along the corridor have been clearing space for new tracks among other work.

As construction has expanded, one of the challenges is coordinating with area stakeholders on the project, Michael Cegelis, Virgin Trains executive vice president of infrastructure, said during a Nov. 21 media preview of the track. Those stakeholders include the Greater Orlando Aviation Authority, Central Florida Expressway Authority and the Florida Department of Transportation.

“We have lots of stakeholders — that’s where the challenges come,” Cegelis said. “Typically, we are a private sector company looking to make decisions and move fast, and the challenge is sometimes these entities are not used to moving at the same speed we are. But, we have a good relationship that helps prevent some issues.”

Work on the route will include:

  • Zone 1 vehicle maintenance facility and station at Orlando International Airport: The Vehicle Maintenance Facility will be a $70 million, 138,000-square-foot facility that will employ 160 people in high-skill jobs, including train engineers, conductors, technicians and inspectors. Construction of the building structure is set to begin in February.
  • Zones 2 and 3 include 40 miles of new rail from Cocoa to Orlando International Airport: Work on this corridor includes 30 bridges for the rail line, along with three underpasses going toward Cocoa. Currently clearing work is continuing across the zones to make way for track work.
  • Zone 4 reconstruction of 129 miles of track and infrastructure from West Palm Beach to Cocoa: The existing track in the area will be reinforced to allow for higher speeds of rail travel. Clearing work is underway in the area and materials are being stationed on the corridor.

The project is expected to create more than 10,000 temporary construction jobs over the life of the project and generate $653 million in federal, state and local tax revenue. The project will create more than 2,000 permanent jobs post-construction.

Progress on the Orlando route comes as a Jan. 1 deadline was set for right-of-way negotiations for the proposed Tampa route between Virgin Trains, the Central Florida Expressway Authority and the Florida Department of Transportation. This gives the parties another 90 days to reach an agreement that would allow for construction to begin on a $1.7 billion expansion of the intercity passenger rail system.

The company also still is evaluating train station sites in the area that may serve one or more local theme parks, something it is targeting for fourth-quarter this year.

“Virgin Trains is in discussions with Walt Disney World Resort and others on that potential,” said Patrick Goddard, president of Miami-based Virgin Trains USA.

Virgin Trains also is in discussions on a possible station at the Treasure Coast and Space Coast, and is evaluating the potential to connect with SunRail at its Meadow Woods station or another location.

“The train line is considering connections to boost area mobility,” Goddard said. “As we take care of that medium haul trip, we are looking at groups from the public and private sector to pick it up from there. There’s a phenomenal opportunity there and that’s part of the dialogue we are having with the various agencies involved.”

Check out the SFBJ photo slideshow on the progress of the Virgin Trains’ progress by clicking here.

 

Source: SFBJ

The New Real Estate: West Palm Apartments Made Of Shipping Containers Making A Broadway Appearance

shipping containers

West Palm Beach’s next apartment complex will be made of shipping containers, piled three stories high.

Arts on Broadway rendering

The $9 million project, Arts on Broadway, promises 52 apartments, 27 of them workforce housing, for people near or below the area’s median income. Rents are expected to range from about $900 to $1,400.

At Broadway and 28th Street, the apartments will be a couple of blocks from trendy Northwood Road.

“The project includes artists among its target market and will offer shared studio space.” said developer Craig Vanderlaan, executive director and co-founder of nonprofit Crisis Housing Solutions. “Singles and young families also are potential tenants. We want to help the artist community here in Northwood. We also want to help the workers in that area, if they work in shops or restaurants or local hospitals, or if they’re teachers or in law enforcement. One problem is that folks that live there can’t afford to live there in decent housing. If we can create affordable housing in that community, we can really improve the lives of a lot of people.”

Vanderlaan said his firm got wind of the shipping container concept from family friends in The Netherlands. They’re common there, in Britain and elsewhere. But housing made of insulated, reconfigured containers has been gaining currency in the U.S. in recent years, as well.

“Using metal containers as dwellings in hot South Florida won’t be a problem,” Vanderlaan said. “The concept is employed for U.S. military in Afghanistan, where temperatures soar to 125 degrees. Arts on Broadway is believed to be the first multifamily container project in Palm Beach County.”

The project will include one- and two-bedroom units, ranging from 640 to 960 square feet.

“It’s basically the same size that a standard apartment would be,” Vanderlaan said.

The project is taking advantage of the fact that it is located in a designated Opportunity Zone, which allows investors tax advantages. The city is assisting with financing. On Monday, November 18, the city commission is scheduled to vote on an additional $300,000 in gap financing. The city owned part of the North End site.

“We’ve been wanting to do something with that property,” said Assistant City Administrator Armando Fana, formerly West Palm’s housing director. “That Broadway corridor is a target area for us and there has hardly been any redevelopment in the Broadway Corridor. If all goes well, construction should begin in summer 2020 and would be completed a year later.”

What if someone mistakes your home for a real shipping container and you wake up at sea? Fana, as ever, was upbeat.

“Then you get a free cruise,” Fana said.

 

Source: Palm Beach Post

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CRE Florida Partners Reps Seller In Record Industrial Facility Sale

CRE Florida Partners  Managing Partner Michael Rauch and Tom Robertson represented the seller in the sale of a 15,268-square-foot office/showroom/warehouse facility located at 1432 E. Newport Center Drive in Deerfield Beach.

The building traded at $2,800,000, or $183 per square foot, marking the highest negotiated price for an industrial asset in Newport Center, a large, master-planned professional business park located 5 minutes from Interstate I-95, just south of SW 10th Street, with easy access to the Sawgrass Expressway.  The park features two hotels, a daycare center, and is home to many notable businesses including JPMorgan Chase, UM Sylvester, Quest Diagnostics, Sandvik Corporation, HYLA USA, and the Mapei Corporation.

“This Class A asset is the firm’s fourth sale within Newport Center, which included an exclusive investment assignment owned by the General Electric Company,” commented Robertson. “As industrial building users continue to expand their businesses the demand for this asset type will remain strong.”

CRE Rauch, Robertson & Co. is seeking leasing and investment sales professionals for its growing commercial real estate expansion in Miami-Dade, Broward and Palm Beach counties. Multiple positions are available within these and other Florida markets that offer a unique ground floor career opportunity to work closely with the firm’s Founders Tom Robertson and Michael Rauch to move their vision for the CRE Florida Partners brand forward. Commission and benefits are commensurate with experience. A Florida Real Estate License and Commercial Real Estate experience are required. Only qualified candidates should apply by forwarding resumes to mail@crefloridapartners.com.

 

 

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New York-Based Multifamily Investors Flock To South Florida

There is a wave of investors who are currently selling their New York-based properties to invest in the South Florida area. Why?

Mainly because of the recent rent control law and its negative impact on returns on investments. It has been estimated, for example, apartment property values dropped 20%-30% as soon as the laws went into effect. Some investors are now mainly focused on getting their money out of New York and are looking to invest in properties that will produce better yields—specifically in non-regulated rent control markets, such as South Florida.

Why South Florida?

“There is zero incentive for New York multifamily investors to purchase a building and spend money on renovations if they can’t raise rents in these rent-controlled environments. Florida has always been a market with attractive yields. This is why most NY investors are choosing South Florida,” says Rafael Fermoselle, managing partner of Eleventrust Real Estate. “They either have their New York properties under contract to be sold, have already sold them, are in 1031 exchanges, or in some cases looking for diversification.”

Investors are selling their assets in New York and reinvesting in deals that yield more and ideally, are located under one roof. However, since Miami’s inventory is compressed with a lot of smaller multifamily properties and it’s difficult to find buildings with high unit counts under one roof, investors are turning to multifamily portfolios that are comprised of 4 – 8 buildings totaling 50-120 units. Although not all under one roof, investors are finding the 100+ units they are seeking with room to add value.

“Investors are working closely with Eleventrust because we have the inventory other brokerages don’t, plus, many of the deals they are transacting are happening off market, which many investors prefer,” explains Fermoselle.

Opportunity Zones

Opportunity Zones are another big reason why this new wave of investors are looking to South Florida. Miami, Fort Lauderdale and West Palm Beach are among the best places to invest in Opportunity Zones. There are about 123 Opportunity Zones in South Florida, including 67 in Miami-Dade, 30 in Broward and 26 in Palm Beach counties.

“Almost 16% of South Florida’s commercial assets are located in Opportunity Zones, one of the highest rates in the nation,” Fermoselle tells GlobeSt.com.

Tax Savings

New York investors looking to move to Florida also benefits from the state not having an income tax for Florida residents. New York state tax rates range from 4% to 8.82%. Additionally, the effective real estate property tax rate for Florida residents is approximately 0.98%, compared to 1.68% in New York.

New York investors will also save on capital gains tax in Florida where the top marginal tax rate on capital gains in Florida is 25% and top marginal tax rates on capital gains in New York is 33.82%.

“We currently have 4 successful deals with New York investors including multifamily properties with 9-18 units,” says Fermoselle. “We also have properties located in emerging neighborhoods that are garnering interest from east coast investors.”

 

Source: GlobeSt.