The Next Big Trends In Industrial

Multi-story warehouse development hasn’t caught on quite yet in the US, but it’s a big trend in some Asian countries that would require an overhaul of 18-wheelers to be fully realized here, says Mike Kendall, executive managing director in Colliers International’s Irvine, CA, office.

Kendall oversees Colliers’ institutional industrial investment platform for the West Coast, teaming with local experts in various markets in that region. GlobeSt.com sat down with him for a chat about the top industrial capital-markets trends he’s noticing and anticipating to grow in 2018.

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Greater Fort Lauderdale Alliance Returns From Nashville With New Ideas For Job Creation

One lesson learned from the Greater Fort Lauderdale Alliance‘s past two annual trips: a city’s brand matters.

About 80 members of the Fort Lauderdale business community returned from a four-day trip to Nashville, Tennessee on Wednesday. The trip was led by Broward County‘s economic development partnership, the Greater Fort Lauderdale Alliance. The group met with city officials and leaders in the Nashville business community to discuss common challenges and best practices impacting the two areas.

The trip follows a similar trip to Austin, Texas last year to gain a better understanding of how other cities are attracting companies and fostering economic growth.

In an interview with the Business Journal, Bob Swindell said that one key insight he learned was how Nashville’s Music City brand has helped the city attract talent and create a camaraderie among residents.

“Their brand music is a brand that everyone can relate to,” said Swindell. “They own their brand.”

The Greater Fort Lauderdale Alliance had a similar takeaway on the importance of branding when the group visited Austin last year, which has worked to create a reputation as a technology hub.

“We learned to recognize Greater Fort Lauderdale’s and South Florida’s many strengths, and that perhaps we need to take a page from the Texas playbook and brag a bit more,” Swindell said. “Another lesson learned from the Nashville trip was just how much the two cities have in common.”

In addition to both being named finalists for Amazon’s second headquarters, the two cities face similar major challenges pertaining to workforce housing, homelessness and transportation.

Swindell said transportation, in particular, has been a big focus of Nashville Mayor Megan Berry, who has been communicating the need for action with the city’s business community.

“She says that today will be your best transportation day,” said Swindell, meaning that the problem is getting worse everyday and the need for action is imperative.

Other highlights of the trip included discussions on:

  • How to better align educational programs with target industries with Nashville’s Labor Educational Alignment Committee
  • Innovations in health care at Nashville’s DNA bank
  • Research collaborations and how to take that tech to market with the Vanderbilt Innovation Center
  • How to attract and develop more high-tech companies with the Nashville Technology Council

The trip was funded through several sponsors including JetBlue, the Florida Panthers, the City of Fort Lauderdale’s Executive Airport and Signature Grand.

The Greater Fort Lauderdale Alliance recently released its 2017 fiscal year results, which showed that the organization assisted more than 300 companies and surpassed its original goals for job creation and retention. For the 2017 fiscal year, the economic development partnership brought in 1,978 new jobs, exceeding initial expectations by 24 percent.

 

Source: SFBJ

Old Warehouses Getting New Life As Offices In South Florida

Stand in front of marketing and production company C&I Studios Inc.’s office in Fort Lauderdale and, if you think it looks like a warehouse, that’s because it is.

But walk inside and see the full-blown workspace, including a 2,500-square-foot production studio, another 780-square-foot studio and a community space with bar and lounge.

C&I Studios is among the companies in South Florida, particularly those in the creative fields, opting for retrofitted warehouses as offices instead of glistening downtown high-rises or suburban offices where employees work in cubicles.

To read the rest of the story, click here to go to the Daily Business Review.

 

Billionaire Richard Branson’s Cruise Line To Create Hundreds Of Jobs In Broward County

Virgin Voyages is throwing down an anchor down in Plantation, where the cruise company will open its new headquarters and create hundreds of jobs.

Click on the photo for the SFBJ slideshow ‘Inside the Virgin Voyages Headquarters in Plantation’

The joint venture, owned by Sir Richard Branson‘s London-based Virgin Group and Boston-based Bain Capital, is expected to invest $15.9 million locally as it expands in a 60,000-square-foot space at 1000 South Pine Island Road.

There are 76 people currently employed at the headquarters, and the company plans to add between 45 and 130 positions annually. By 2021, Virgin Voyages expects to have 300 employees in Plantation.

Virgin Voyages‘ first ship is expected to sail in 2020 from PortMiami with 2,700 passengers and 1,150 crew members. It will be one of the few cruise lines for adults only.

The headquarters-expansion deal was made possible through partnerships between the Greater Fort Lauderdale Alliance and officials with the city of Plantation, Broward County and the state of Florida. JLL Managing Director Alan Kleber and vice president Cameron Tallon represented Virgin Voyages in the lease negotiations for the headquarters.

“We are thrilled to welcome Virgin to our ecosystem of industry disruptors and look forward to its significant capital investment and the creation of 300 new high-paying jobs in Plantation,” said Bob Swindell, CEO of the Greater Fort Lauderdale Alliance.

Virgin Voyages will compete with South Florida-based cruise giants including Carnival Corp. & plc, Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Cruises International at a time when the industry is steadily adding ships and passengers. In 2018, about 27.2 million people are expected to cruise, according to the Cruise Lines International Association Inc. (CLIA). That’s up 5 percent from 2017 and 52.8 percent from 2009.

“Virgin brands have a long history of raising the bar in every industry we enter,” said Virgin Voyages CEO Tom McAlpin. “We are proud to bring that mindset to the South Florida community and introduce new jobs and business opportunities to the area.”

McAlpin said an array of jobs, from senior positions, to IT, to customer service personnel will be placed at the headquarters. The former Disney executive said opening a call center outside of South Florida may have been cheaper for the company, but he wanted enough room for all positions. Once fully staffed, Virgin Voyages will take up two and a half floors at its headquarters building.

“It would have been easy to justify putting [a call center] in Des Moines where you have low-cost operations, but we wanted a facility where people could feel the culture and pride because they are the ones who are selling the cruises to individuals,” McAlpin said.

When the Virgin Voyages brand was announced (formerly Virgin Cruises) the company was expected to be based in Miami. McAlpin, who is a Parkland resident, said Plantation was a better pick because of its access to workers across the tri-county area. Ultimately, many more desks at the Virgin Voyages headquarters are expected to be filled as the company adds ships.

“I don’t think we’ll be a 30-ship fleet because we’re appealing to a unique customer base, but we have a lot of room for growth beyond three ships,” McAlpin said.

Beyond its initial ship sailing from Miami, Virgin Voyages has not announced where its next ships will sail from.

 

Source: SFBJ

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South Florida’s Boatmakers Hope To Ride Wave Of Prosperity

Amid signs the economy is strong overall — until last week, the stock market was reaching new peaks — boat retailers are anticipating a wave of new buyers.

And with two important boat shows coming to South Florida this week, there’ll be more good news for South Florida’s boating community — fishermen, recreational boaters, or anyone else who benefits from the approximately $11.5 billion that the industry generates for the region.

Boats made in South Florida will be featured among the top-of-the-line vessels from other parts of the country at the 2018 Progressive Insurance Miami International Boat Show and the Miami Yacht Show 2018. Popular center-console fishing boats on display in the water and on land at Virginia Key include models from SeaHunter Boats of Princeton, Doral-based SeaVee Boats, Dusky Marine of Dania Beach and Contender Boats of Homestead, as well as newcomer Streamline Boats of Opa-locka.

Cigarette Racing Team of Opa-locka, whose name is synonymous with high-performance powerboats, will introduce a couple of new models at the Miami Boat Show. Other popular brands on display include Sea Ray, Beneteau, Boston Whaler, MasterCraft, Regulator, Hatteras, Viking and Zodiac.

Denison Yacht Sales, which is headquartered in Fort Lauderdale, has 27 boats at the Miami Yacht Show along Collins Avenue in Miami Beach, including the GT50 by Beneteau, which is making its U.S. debut, and the 45 Express Bridge from Hatteras. Fort Lauderdale yacht brokerage G Marine has the new Spanish-made Astondoa 80 Flybridge.

If sales are strong, South Florida will also see an increased benefit from the shows.

A study by Thomas J. Murray & Associates, Inc., in conjunction with the University of Florida, released in 2017 showed that the Miami Boat Show alone has an annual economic impact of $854.2 million, which is more than twice what a Super Bowl generates. That impact includes approximately $350 million in sales of marine products at the show.

“The economy seems to be treating people very well, so we’re looking to be growing and expanding,” said Jordan DeLong, the director of marketing for Contender Boats, which has at least a dozen of its models on land and in the water at the Miami show. “The show’s going to be good to us, I’m sure of it.”

260,000 – The number of new powerboats that were sold in 2017, says the National Marine Manufacturers Association, which puts on the Miami Boat Show. That’s an increase of 6 percent over the previous year, which marked the sixth consecutive year of growth.

“Things are going quite well. The key is we’re always pushing the bar, trying to go higher and higher and higher,” said Skip Braver, the owner and CEO of Cigarette Racing Team, which will have its new 42-foot GTO Reserve and GTR Reserve at Virginia Key. “We’re firm believers that Miami is one of our best sales tools. There’s only one Miami. We take the magic of our city and the magic of our boats and we blend them together.”

Figures from the National Marine Manufacturers Association, which puts on the Miami Boat Show, back up this rosy view. The organization, which represents the country’s recreational boat, engine and marine accessory manufacturers, says that 260,000 new powerboats were sold in 2017 — an increase of 6 percent over the previous year, which marked the sixth consecutive year of growth. Compare that to the depths of the country’s economic downturn a decade ago, when the number of new powerboats sold in 2009 decreased 24 percent to 153,550.

The most current numbers have Florida leading the country in sales of new powerboats, engines, trailers and accessories in 2016 at $2.5 billion, up 5 percent over 2015. Florida was followed by Texas at $1.4 billion, Michigan ($868 million), Minnesota ($710 million) and North Carolina ($689 million).

“On the horizon, if economic indicators remain favorable to the recreational boating market with strong consumer confidence, a healthy housing market, rising disposable income and consumer spending, and historically low interest rates, the outlook is good for boat sales,” said NMMA president Thom Dammrich.

Chuck Collins, the executive director of another industry organization, echoes this view.

“The price of fuel is still cheap, the price of money is still cheap. Interest rates are low. Every single thing is positive,” said Collins, who heads the Marine Industries Association of Palm Beach County.

The boating industry’s outlook is even brighter factoring in the new tax legislation approved by Congress at the end of 2017, many say.

“I think it’s really positive given what happened federally to make U.S. business more competitive,” said Phil Purcell, the executive director of the Marine Industries Association of South Florida, which has more than 500 members in Broward, Miami-Dade and Palm Beach counties and supports 136,000 marine-related jobs. “The feedback I’m getting from our members is now they can put some money back into infrastructure and they have the ability to make five-year plans and three-year plans.”

The climate also is good for sales of big boats said Bob Denison of Denison Yacht Sales, which has 20 offices ranging from Miami Beach, Naples and Montauk, N.Y., to Seattle, San Diego, Puerto Rico and St. Thomas in the U.S. Virgin Islands.

“This year’s Miami Yacht Show is expected to be a solid one. Consumer confidence is near 20-year highs, the stock market is going through the roof and other metrics in housing and employment are strong,” Denison said last month. “More than that, there’s going to be a lot of cool boats on the docks.”

Because of the robust economy, says Nautical Ventures CEO Roger Moore, more South Florida residents will get into boating or upgrade their boats or move into bigger boats.

“We’re extremely optimistic about 2018,” said Moore, whose company has stores in Dania Beach and Palm Beach County that sell everything from standup paddleboards and kayaks to inflatables, center consoles and cruisers, and which has displays at both boat shows this week.

$2.5 Billion – The sales of new powerboats, engines, trailers and accessories in 2016 in Florida, which is No. 1 out of all states in this category. That figure is up 5 percent over 2015..

For many years, people were conservative in their spending, he said, “so they’re looking for an excuse to do something fun, and I hope it’s boating.” Another factor that could boost boat show sales is the damage done by Hurricane Irma in September.

“The hurricane destroyed a lot of boats,” Collins said. “These people are getting their insurance checks, they’re not going to give up boating just because their boat got destroyed. Boats that didn’t get destroyed are going to get repaired.”

Michael Brown, who grew up in his family’s boating business and is the vice president of Dusky Marine in Dania Beach, says those in the market for a new boat are looking at bigger models with bigger motors and more features.

“‘More everything’ seems to be selling,” said Brown, who will have Dusky’s 28- and 33-footers at the Miami Boat Show. “More power, more electronics, more toys, more cup holders. “The cost of fuel’s gone up a little bit, but outboard motors are a lot more efficient. Instead of two 115-horsepower motors, people are buying a pair of 175s. Instead of a single 225 on my 25-footer, which runs great, now it’s a 350. The difference in price is about $7,000 and the fuel economy is almost the same. People no longer want to run at 40 mph, they want 50 or 60 mph.”

SeaHunter Boats of Princeton will formally introduce its new Floridian 28 at the Miami Boat Show. Since word got out about the 28-foot, 5-inch boat, which is designed to fish inshore and offshore, the company can’t build them fast enough.

“It’s something we’re really pushing,” marketing director Isabel Rubio said. “We’re actually on back order right now.”

The Floridian features a higher freeboard that makes it safe to fish offshore. Power options range from a single 350-horsepower outboard motor to twin 350s, which produce a top speed of 70 mph for the 28-foot center console.

Two relatively new local boat builders, Angler Pro Boats and Streamline Boats, both of Opa-locka, hope to take advantage of the healthy economy.

Pedro “Pete” Garcia started Streamline Boats less than a year ago. Garcia, 32, has held about every job in the boating industry. His career began in 2003, straight out of Coral Shores High School in Tavernier. He worked for Regulator, Hydra-Sports and SeaHunter and also started his own boat service company. When his friends Lazaro Hernandez and Luis Blanco offered to partner in a boat company with Garcia.

“They presented me with an opportunity I couldn’t turn down. I decided it was my turn to do my own thing, said Garcia. “My parents said, ‘This is what you’re going to do? Go for it!’ They’ve given me 100 percent support.”

Streamline currently makes a 26-foot center console with a stepped hull in a tournament edition and a sport model. Garcia says he should have a 34-footer available in three or four months. Every boat is built to a customer’s specifications.

“We’re offering a fully custom boat at an entry level price. I cannot emphasize how important that is. We want to be able to sell boats to cops and firefighters,” said Garcia, who has a 26TE at the Miami Boat Show. “It’s 110 percent your boat. You can have whatever hull color you want, you can have 150 rod-holders. We’re not a fly-by-night company. You’re not going to a company buying a red one or a blue one. Every boat is tailored to every individual.”

Chris Grillo, 26, is the CEO, owner and president of Angler Pro Boats and says he was “born and raised” in the boating industry. His father, Elio, owned Angler Boats, which Grillo says made the No. 1-selling 20-foot boat in the world. The elder Grillo sold the company to foreign investors about six years ago, but it folded, so his son, who studied business at St. Thomas University, bought the Angler molds and started his own company in 2016 with a commitment to excellence and value.

The boats, which are sold through dealers, come in five models ranging from a 17-foot flats boat to a 28-foot center console. All the boats are made using new lamination schedules that Grillo says make them stronger and lighter.

“I restructured everything from the ground up,” Grillo said. “The way we laminate the boats, the quality of the fiberglass, the quality of the resin. Other companies are going to put in the $20 bilge pump, we’re going to put in the $60 bilge pump. I’m going to put in the extra $40 to make sure that boat’s going to last you a lifetime. For me, I don’t have to make a killing. I don’t have to be a billionaire. We’re building a very high-quality custom boat for an affordable price.”

Miami International Boat Show

The Progressive Miami International Boat Show features 1,400 boats on land and in the water and more than 1,100 exhibitors.
When: Feb. 15-19 from 10 a.m.-6 p.m. each day.
Where: Miami Marine Stadium Park & Basin on Virginia Key, 3501 Rickenbacker Causeway, Miami.
Boats: Powerboats include cruisers, trawlers, center consoles, bay boats, flats skiffs and inflatables. Strictly Sail Miami, which had been held at the Miamarina at Bayside, is at Miami Marine Stadium with more than 50 sailboats in the water, plus sailing-related booths on land.
Admission: Premier Day, which is Feb. 15, costs $40. Thereafter, adult tickets for ages 13 and older are $25. A two-day pass, good from Feb. 16-19, is $45 and a five-day pass is $100. Children 12 and younger are free when accompanied by a paid adult. There are group discounts for 15 or more people. Purchase tickets online at www.miamiboatshow.com/admission#/select.
Parking: Parking can be purchased online at www.miamiboatshow.com/public-transportation. Parking is $35 and $50 at lots on Virginia Key, with free shuttle bus service to and from the show from 9 a.m.-7 p.m. Parking is $25 at AmericanAirlines Arena at 601 Biscayne Boulevard, with free shuttle bus service from 9 a.m.-7 p.m. Free water taxi service to and from the show is 9 a.m.-7 p.m. from AA Arena and Bayfront Park, 100 Chopin Plaza. There is no show parking at Marlins Park this year.
Economic Benefit: A 2017 study by Thomas J. Murray & Associates, Inc., in conjunction with the University of Florida, showed that the Miami Boat Show has an annual economic impact of $854.2 million, which is more than twice what a Super Bowl generates. That impact includes approximately $350 in sales of marine products at the show.
Information: Visit www.miamiboatshow.com, call 954-441-3220 or email info@miamiboatshow.com

Miami Yacht Show

The Miami Yacht Show features more than 500 boats and yachts on display in the water.
When: Feb. 15-19 from 10 a.m.-6 p.m. (10 a.m.-5 p.m. Feb. 19).
Where: On the Indian Creek Waterway along Collins Avenue between 41st and 54th Streets in Miami Beach.
Boats: Powerboats include motoryachts, superyachts (100 feet and longer), cruisers and sportfishermen.
Admission: Adults $25, children 15 and younger free. Purchase tickets online at www.miamiyachtshow.com.
Parking: General parking is $15 at the 17th Street Garage at 599 17th Street and $30 at the 67th Street Garage at 6625 Indian Creek Drive. Free shuttle bus service to and from the garages and the show is 9 a.m.-7 p.m. Free water taxi service is available from the Water Taxi docks at 65th Street and 24th Street. Valet parking is $60 a day from Feb. 15-18 at 4601 Collins Ave. and can be purchased at www.miamiyachtshow.com.
Information: Visit www.miamiyachtshow.com, call 954-764-7642 or email marketing@showmanagement.com.

Angler Pro Boats

The relatively new Angler Pro Boats uses the proven molds of the former Angler Boats company with the newest boat-building technology in fiberglass, resin and lamination schedules to build a flats boat, a bay boat and three offshore models. In the works are a catamaran and a boat for a jet-drive engine. Angler, however, will not be in the boat show this year.
Founded: 2016 in Hialeah
Run By: CEO, owner and president Chris Grillo
Location: 2337 NW 149th St., Opa-locka, a 14,000-square-foot facility.
Employees: Eight to 15, depending on how many boats are under construction.
Sales: Grillo started the business in 2016, began manufacturing boats in 2017 and sold 15-20 of them through the company’s dealer network. He expects to build and sell nearly 100 boats in 2018.
Most popular models: Angler Pro’s boats range from a 17-foot flats skiff that sells for $29,995 to a 20-footer with a T-top, a 150-horsepower Yamaha outboard motor and a trailer for $39,995 to an “almost fully loaded” 28-foot center console with twin Yamaha 300s that retails for $140,000.
Telephone: 305-525-4943
Website: www.anglerproboats.com

Seahunter Boats

SeaHunter is formally introducing its new Floridian 28 at the Miami Boat Show. Since word got out about the 28-foot, 5-inch boat, which is designed to fish inshore and offshore, the company can’t build them fast enough. “It’s something we’re really pushing,” marketing director Isabel Rubio said. “We’re actually on back order right now.”
Founded: 2002 in Princeton
Run By: President Ralph Montalvo
Location: 25545 SW 140th Ave., Princeton. Boats are built in a 46,000-square-foot building and there’s also a 20,000-square-foot facility that houses the engineering and service departments. Last year the company purchased what is now called SeaHunter Marina at Manatee Bay, a full-service marina in Key Largo for SeaHunter owners.
Employees: About 115
Sales: Around 50 new boats and 150 pre-owned boats sold in 2017
Most Popular Models: SeaHunter makes boats from 28 feet to 45 feet. Prices range from $180,000 for a nicely rigged 28 Floridian to $750,000 for a 45-footer with four outboards, a tower, a Seakeeper anti-roll gyro and other accessories.
Telephone: 305-257-3344
Website: www.seahunterboats.com

Contender Boars
Contender has its upgraded 35- and 39-foot center console models at the Miami Boat Show. The 35 has a new cap — the upper part of a boat that is attached to the hull — which has a more rounded design than the old 35. “It’s basically an aesthetic improvement to modernize the boat,” director of marketing Jordan DeLong said. “The 39 will have a brand new console.”

Founded: 1984 in Miami, began building a factory in Homestead in 1994 and moved there in 1997.
Run By: President and owner Joe Neber.
Location: 1820 SE 38th Ave. in Homestead.
Employees: 250
Sales: Approximately 300 boats built annually. “We put a fairly large number of boats out for the size of our facility,” DeLong said. “It’s a very efficient process.”
Most Popular Models: Contender models range from 22 feet to 39 feet. Prices range from about $75,000 to more than $500,000.
Telephone: 305-230-1600
Website: www.contenderboats.com

Dusky Marine

The Dania Beach company constantly upgrades its models with new innovations, such as joysticks that allow a boat to be moved sideways, which makes for easy docking, and bigger consoles to accommodate 16-inch screens for chartplotters, depthfinders and other electronics.
Founded: 1967
Run By: President Ralph Brown and vice president Michael Brown.
Location: 110 North Bryan Rd., Dania Beach. In addition to a manufacturing facility, the site has the Dusky Sport Center, which sells marine supplies ranging from anchors and fishing tackle to aluminum boats and outboard motors.
Employees: 49
Sales: Around 60 boats sold annually
Most Popular Models: Dusky models range from a 16-foot flats boat to a 33-foot center console. Dusky’s top seller is its 27-foot, 8-inch 278 model. Prices range from $30,000 to $250,000, depending on the options and accessories.
Telephone: 954-922-8890
Website: www.dusky.com

Cigarette Racing Team

The company has its new 42-foot GTO Reserve at the Miami Boat Show that features a 12-foot beam and four 400-horsepower outboard motors. Also at the show is Cigarette’s GTR Reserve.
Founded: 1969 in Miami
Run By: CEO Skip Braver
Location: 4355 NW 128th St., Opa-locka.
Employees: About 75
Sales: Not provided
Most Popular Models: Cigarette makes models from 38 to 50 feet. Prices range from $400,000 to over $1 million, depending on the model.
Telephone: 305-931-4564
Website: www.cigaretteracing.com

Streamline Boats

The company, which is less than a year old, sells one-off custom boats direct to the public. It will have a 26-foot tournament edition center console at the Miami Boat Show. Streamline is building a 34-foot center console that should be available by late spring or early summer.
Founded: 2017 in Opa-locka
Run By: Owners Lazaro Hernandez, Luis Blanco and vice president and manager Pedro “Pete” Garcia.
Location: The company is moving from a 3,000-square-foot facility in Opa-locka to a new 20,000-square-foot factory in North Miami.
Employees: 10
Sales: So far, Streamline has built six boats, which Garcia said has the company ahead of schedule.
Most popular models: Streamline currently offers a 26-foot tournament edition center console and a 26 sport model. Depending on the options, prices range from $85,000 to $126,000.
Telephone: 305-394- 4480
Website: www.streamlineboat.com is currently being updated, so check out @streamline_boats on Instagram.

 

Source: Miami Herald

Florida Senate Approves $100 Million for Land Conservation

Florida will set aside $100 million each year for a conservation land acquisition program under a bill passed by the Senate.

The Senate recently unanimously approved the bill.

“The bill ensures the money dedicated to the Florida Forever program will be strictly for land acquisition and preservation,” said Senator Rob Bradley.

The bill prohibits the money from being spent on administrative and technical costs.

“The measure better reflects the will of voters who in 2014 passed a constitutional amendment dedicating a portion of real estate taxes to land conservation,” said Bradley.

 

Source: NBC 6 Miami News

Developer Set To Buy Land For $168M Coral Springs Mixed-Use Project

A developer is set to acquire land at the intersection of University Drive and Sample Road in Coral Springs for construction of a hotel, an apartment building, and retail space.

Coral Springs Financial Plaza at University Drive and Sample Road (Credit: Sun-Sentinel)

Developer Ron Sheldon of Boca Raton-based PreDevCo expects to close next month on the acquisition of a seven-acre site on the southwest corner of the intersection.

Sheldon would build a $168 million cluster of developments there, including a 450-unit apartment building and a 150-room hotel  with its own parking garage. He also plans to build retail spaces for a grocery store and a half dozen bars and restaurants. Coral Springs Financial Plaza, a 10-story office building on the southwest corner of the intersection, would be razed.

Sheldon’s development would be part of the city government’s vision of a new downtown district in Coral Springs at University Drive and Sample Road.

Coral Springs, which is preparing to open a new City Hall on the southwest corner of the intersection of University Drive and Sample Road, wants to sell the current City Hall location on the northwest corner to a developer. The city also may acquire a nearby shopping plaza for redevelopment.

In addition, the city plans to find a new location for the Coral Springs Charter School on the southeast corner of the intersection and to sell the land there to a developer.

The northeast corner of University Drive and Sample Road is occupied by the  former location of a Publix supermarket that closed after Hurricane Wilma hit South Florida in 2005.

 

Source: The Real Deal

Medical Marijuana Firm Sold In $43 Million Deal

A New York-based company has purchased a Central Florida pot operation for $43 million in cash and stock, amid expectations that the industry will explode following the voter-approved legalization of medical marijuana more than a year ago.

iAnthus Capital Management purchased the assets of GrowHealthy Holdings, a Lake Wales marijuana operator affiliated with McCrory’s Sunny Hill Nursery, except for the marijuana license. The transfer of ownership of the license is pending approval by the state Department of Health.

Under the deal, which involves the marijuana operator and its affiliated businesses, iAnthus is paying GrowHealthy $12.5 million for its Lake Wales real estate and 200,000-square-foot cultivation and processing facility. GrowHealthy, one of the state’s 13 licensed medical marijuana operators, will also receive $30 million worth of shares in iAnthus, which is traded on the Canadian Securities Exchange. iAnthus will also purchase the Lake Wales company’s $5 million bond, required by the state for all marijuana operators.

The New York company also owns marijuana operations in Massachusetts, Vermont, Colorado and New Mexico and has a pending acquisition in New York, according to iAnthus President Randy Maslow.

“Florida is really going to be our number one operation, in terms of size and everything else,” Maslow said.

GrowHealthy started distributing marijuana to patients via delivery in November but has not opened a retail dispensary.

According to a news release announcing the deal, the company is planning to open a dispensary in Palm Beach County later this year.

“As one of the largest states in the U.S. with a population of nearly 21 million people and favorable demographics, Florida and its medical cannabis market provide a tremendous opportunity for iAnthus and its shareholders. The state’s population includes a large percentage of older adults who can derive significant benefits from medical cannabis, and the Florida program has witnessed a rapid rise in its registered patient base since passage of the law,” Maslow said in the release.

Voters in November 2016 approved a constitutional amendment that broadly legalized medical marijuana and helped fuel a battle for a limited number of licenses. About 45,000 patients have received state-issued identification cards allowing them to purchase the marijuana treatment, but the number is expected to dramatically increase in coming years.

 

Source: WUSF News

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CRE Florida Partners Closes On Deerfield Beach Industrial Sale

Tom Robertson, Co-Founder and Senior Managing Partner with CRE Rauch Robertson, CRE Florida Partners company, recently completed the sale of an industrial property located at 3411 SW 11th Street in Deerfield Beach to RMB Holdings LLC for $2,700,000.

This ±21,165 square foot facility, built in 1987, is situated on ±1.3 acres, which fronts both SW 10th and SW 11th Street.

Robertson has represented the leasing and sale interests for this building since 2002.

“The property’s close proximity to Sawgrass Expressway and I-95 via SW 10th Street certainly added tremendous value to the offering,” said Robertson.

The available sale inventory is low and CRE Florida Partners is currently working with several buyers looking for similar properties in North Broward and Southern Palm Beach County.

Tom Robertson

“This acquisition represents the ‘down leg’ sale of an IRC1031 Tax Free Exchange,” explained Robertson. “We are very pleased to represent this seller in both the “down leg” and “up leg” purchase of this tax free exchange.”

Michael Rauch

“This is just another example of how our firm handles long term relationships with our clients,” added Michael Rauch, CRE Florida Partners’ Senior Managing Partner. “Tom managed this property through lease up and sale with skill and patience while armed with critical market intelligence.”

CRE Rauch, Robertson & Co. is seeking leasing and investment sales professionals for its growing commercial real estate expansion in 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.

 

 

 

Wellington To Make Final Decision On Medical Pot Dispensaries

Wellington’s village council will hold a second and final hearing on Jan. 8th evening regarding a proposed zoning change that would allow medical marijuana dispensaries in the village, with restrictions.

Because state law requires local governments to treat medical pot dispensaries no differently than pharmacies, the new zoning rules would apply to both pharmacies and dispensaries.

If the measure passes, dispensaries and pharmacies would need to be a minimum of 10,000 square feet, and they would not be allowed within 1,000 feet of a primary or secondary school. Also, one pharmacy or dispensary would be allowed per shopping center, with an exception for pharmacies in grocery stores.

The size, number and distance restrictions would be waived for pharmacies or dispensaries along State Road 7 in standalone buildings or in plazas with frontage on that road.

If the proposed changes are approved, Wellington would be the first municipality in Palm Beach County to change its pharmacy zoning to determine where medical marijuana dispensaries may be built.

In an initial vote on Nov. 14, the council moved 3-2 to approve the changes, with Mayor Anne Gerwig and Councilman Michael Drahos dissenting.

At that meeting, Drahos noted that while 72 percent of Wellington voters supported Amendment 2 in November 2016 to legalize medical pot in Florida, they may not necessarily want dispensaries in the village.

“People like the idea, they just don’t necessarily want it in their backyard,” Drahos said.

But with Wellington “essentially at built-out,” Vice Mayor John McGovern said the village is in a unique position to direct where dispensaries can be located — essentially, the Southern Boulevard corridor.

There will be public comment as part of the hearing. Also at the meeting, the council will discuss an application for a seasonal permit at Polo West Golf Club, three ordinances to continue the village’s work to streamline its land-development regulations and approval of a contract for a housing and economic impact study.

 

Source: Palm Beach Post

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Strong Economy Sets Stage For More Growth In Palm Beach County In 2018

Meet the new year, same as the old year. Or maybe better.

Palm Beach County’s economy is expected to continue its strong growth, as the year wrapped up with a still-booming real estate market, combined with continued business growth in the area.

President Donald Trump’s part-time residence at his Mar-a-Lago mansion on Palm Beach has drawn attention to the county both as a business and tourist destination. But even prior to Trump’s January inauguration, the county already was flush with new hotel construction geared to the rise in tourism.

“The county’s newest hotel, the Hilton at the Palm Beach County Convention Center, had a strong first with 85 percent occupancy,” according to Ken Himmel, president of Related Urban, the hotel’s developer.

More hotels are under construction, including an Aloft Hotel in Delray Beach and a Canopy Hotel in West Palm Beach. Tourism wasn’t the county’s only booming field.

“The past 12 months saw growth in a variety of industries,” said Kelly Smallridge, president of the Business Development Board, the county’s business recruitment arm.

Among the companies growing are Bee Access, a scaffolding manufacturer in West Palm Beach; Jupiter-based Parametric Solutions, which engineers and makes gas turbine engines for aircraft and industrial power applications; and GeoGlobal Partners, which designs and makes pumps and valves in West Palm Beach.

“We’re one of the rare counties that has six to eight solid industries,” Smallridge said, ticking off manufacturing, equestrian, tourism, agribusiness, financial services, corporate headquarters and distribution and logistics.

Another growing area: Companies run by entrepreneurs. Moderning Medicine, a Boca Raton-based medical records firm and one of the fastest-growing technology companies in South Florida, said in 2017 it plans to hire 800 people, in addition to the more than 500 it already employs.

Helping boost more corporate growth in the coming year: The Brightline passenger train, slated to start regular service in the coming weeks.

“Companies already are saying they feel more comfortable opening offices in Palm Beach County because they know they can pull employees from Broward or Miami-Dade counties,” Smallridge said.

Of course, the biggest driver of Palm Beach County remains real estate. Growth, particularly in the housing market, was hot in 2017 and will remain so in 2018, experts say. This is despite the lengthy real estate boom that now is stretching into its eighth year.

Housing analyst Jack McCabe said he expected to see a market correction on the horizon, but he now thinks a slowdown will be delayed by the the tax legislation passed by Congress. The sweeping tax law limits deductions for state and local taxes.

“This is bad news for residents in such high-tax states as New Jersey and New York but good news for Florida, which has no state income tax and already is a destination for residents from the Northeast,” said McCabe, of McCabe Consulting in Deerfield Beach.

It’s not just the housing market that will get a boost from the tax bill, business leaders said.

“Executives already have been making inquiries about bringing their companies to Palm Beach County,” Smallridge said. “We’ve seen 20 plus calls over the last month. There’s already a steady stream of inquiries by companies seeking to relocate. Among them are corporate headquarters and financial services firms out of Manhattan, Boston, Greenwich and even Chicago. Tax attorneys in the Northeast are hard at work figuring out how to domicile companies in Florida.

If they consider moving companies, corporate leaders will find rental housing available but for-sale homes difficult to find. That’s because there’s been little new home construction during the past decade.

“Homeowners are staying in their homes longer, prompting a number of residents to remodel existing homes,” said Brad Hunter, chief economist of HomeAdvisor, which connects homeowners with local service professionals to complete home improvement or remodeling jobs.

Although new apartment complexes are cropping up throughout the county, many come with rents that can reach nearly $2,000 a month or more.

“It’s very tough for people to rent right now, and if they do, it’s hard to save up for any down payment for a home,” McCabe said.

Among the new apartment complexes that opened in 2017: The 400-unit Altis apartments in Boca Raton; the 205-unit apartment tower dubbed The Alexander in West Palm Beach. Other projects commenced construction, including the 315-unit Broadstone City Center and the 290-unit Park-Line in West Palm Beach, both of which are expected to attract renters who may use the Brightline train station nearby.

High land prices have made it difficult for home developers to find locations to build. Some are turning to infill sites, such as golf courses, for new homes, while others are looking west. In July, Minto Communities started construction on Westlake, a newly-created city set to contain 4,500 new homes. The city is off Seminole Pratt Whitney Road north of Okeechobee Boulevard.

Also in demand are new offices and industrial space. But both are hard to find, said Rebel Cook of Rebel Cook Real Estate and president of the Economic Forum, a business group.

“Industrial space, particularly small sizes, is virtually impossible to find, crimping growth by companies that want to expand their businesses here,” said Cook. “If you’re a growing company and you want to go from 5,000 to 10,000 square feet, I can’t find you anything here. This is the first time in 35 years of selling warehouses that I don’t have one warehouse for sale. Not one.”

New offices could be coming to West Palm Beach but not right away. In early 2018, The Related Cos. of New York is expected to propose construction of an urban-style office building next to CityPlace in West Palm Beach. In addition, billionaire Palm Beach investor Jeff Greene has pledged he will start construction on One West Palm, a twin-tower office/hotel/housing complex set for 550 Quadrille Blvd. in West Palm Beach.

 

Source: Palm Beach Post

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Tax Overhaul Could Be Big Win For U.S. Real Estate Investors

U.S. commercial real estate is a likely winner in the evolving Republican tax overhaul, which is poised to lower rates for property owners, spur new investment and increase demand for rental housing, according to a new report.

Owners and developers of commercial real estate stand to gain from a new tax break for “pass-through” entities, which don’t pay corporate tax but instead pass income through to their owners’ individual tax returns, according to the report, by Cushman & Wakefield Inc. The House and Senate have reached a tentative agreement to create a 20 percent deduction for pass-throughs, which the report notes are responsible for 61 percent of investment in U.S. commercial real estate.

It’s not as big a boon for the industry as it might have been. The House bill passed last month slashed the top tax rate on pass-through income to 25 percent from a current top rate of 39.6 percent. That would have been a “huge win,” said Revathi Greenwood, head of Americas research for Cushman & Wakefield.

The Senate bill has tied the new deduction to the amount of wages the business pays, said Greenwood, meaning larger savings for ownership structures with more employees, such as real estate investment trusts. It’s unclear whether the House-Senate compromise retains that provision.

Representatives of the two chambers are meeting this week to reconcile their versions of the legislation, setting the stage for President Donald Trump, who made his fortune in commercial real estate, to sign a bill into law as early as next week.

In the weeks since the House of Representatives unveiled its tax plan, on Nov. 2, housing experts have warned of its potential effects on the U.S. housing market. Proposed changes to the treatment of mortgage interest and state and local taxes could reduce incentives for buying a new home. Potential effects on commercial real estate have gotten less attention, perhaps because the industry doesn’t have much to complain about.

Opportunity for Malls

Still, not every sector will benefit equally. The tax plan should favor residential landlords, the report said, with the tax benefits of homeownership curbed. It is also likely to benefit retail landlords by lowering taxes on companies that rent space and leaving consumers with more discretionary income to spend.

“Mall operators are looking at restructuring anyway, remaking their properties to give shoppers experiences they can’t get online,” Greenwood said. “We think some of the money saved in taxes will be reinvested back into the business. Office landlords are likely to see more-modest gains. While corporate tenants are key beneficiaries of the tax plan, they’re likelier to return tax savings to shareholders than to increase spending. The tax overhaul could benefit the office sector by discouraging companies from moving their headquarters abroad to save on taxes. Health-care companies are likely to pare back investment in real estate.”

That’s partly because a Senate provision to repeal Obamacare’s individual mandate could curtail demand for services, and partly because both the Senate and House bills reduce exemptions for charitable gifts, which are often used to fund the construction of new hospital buildings.

Click here to view the Bloomberg news video ‘House, Senate, Said To Reach Tentative Tax Deal’

 

Source: Bloomberg