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Equity Office Pays More Than $110M For Portfolio In Broward & Palm Beach

Prologis just sold a portfolio of properties in Broward and Palm Beach counties to Chicago-based Equity Office for more than $110 million, property records show.

The portfolio includes industrial buildings in Delray Beach, Mangonia Park, Hollywood, Dania Beach, Fort Lauderdale, Pompano Beach and Coconut Creek. The deal was financed with an $83.5 million loan from Wells Fargo.

Equity Office, which is owned by the Blackstone Group, also bought properties in Seminole and Miami-Dade counties, as well as Illinois and Wisconsin. The sales in Miami-Dade County have not yet cleared records. Prologis and Equity Office were not immediately available to comment.

Records show the Blackstone affiliate picked up an industrial complex at 430 South Congress Avenue for $9.5 million and an industrial site at 1335 West 53rd Street for $4.6 million.

In Broward, industrial complexes at 3601 and 3613 North 29th Avenue in Hollywood sold for $23.5 million; properties at 3700 North 29th Avenue, 3401 North 29th Avenue and 5555 Angler Avenue in Dania Beach sold for $14.6 million; buildings at 3600 Northwest 35th Avenue, and 5535 and 5545 Northwest 35th Avenue in Fort Lauderdale closed for $12.1 million; and the warehouse complexes at 2800 North Andrew Avenue in Pompano Beach and 4801 Johnson Road in Coconut Creek sold for a combined $39.7 million.

The properties were originally owned by KTR Capital Partners, which was acquired by Prologis and Norway’s sovereign wealth fund in 2015 for $5.9 billion.

Equity Office owns a portfolio of more than 50 million square feet of office space across the country, according to its website. Blackstone acquired its assets in a $39 billion leveraged buyout in 2007.

 

Source: The Real Deal

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Is 2018 Gearing Up To Be A Good Year For Real Estate Investment?

The real estate market is one of the most in-tune economic barometers; its transactions add up to nearly 15 percent of GPD.

As globalization and digitization continue to disrupt established labor and business patterns, housing needs and investment opportunities evolve as well. In certain go-to metro areas like Silicon Valley or Dallas Fort Worth, the workforce struggles with a housing impasse. Historic luxury property magnets like New York or Los Angeles are seeing a heated bidding war between domestic and international buyers, competing for investment.

While regional hubs benefit from available housing to attract talent, there is a growing body of evidence to suggest a direct correlation between rising housing costs and stagnating job rates. That’s a worrisome prospect. In better news, millennials are finally beginning to transition from renting to buying,rejuvenating upscale home sales. But that still raises a few questions, like is 2018 gearing up to be a good year to invest in real estate? If so, where should one look? What incongruities should buyers watch out for?

To navigate a market fraught with mixed messages, the Observer turned to Justin Fichelson, luxury real estate advisor and TV personality on Bravo’s Million Dollar Listing San Francisco, who’s built a thriving business on referrals and exclusive repeat clients.

With markets rallying and prices rising, is it a good time to buy?

Absolutely! The real estate markets in the major urban centers in the United States have increased dramatically; $300K in the mid-1980s in San Francisco could get you a house that’s worth over $5 million today. Long-term, real estate will only go up if you buy wisely in resilient markets connected to innovation-driven industries. For example, the West Village in NYC saw townhouse values soar 150 times, within one generation. If you think ahead, strategic real estate purchasing is key to peace of mind for you and your family. If we map the economy dynamics now, Austin, Texas continues to grow as does Charlotte, North Carolina and many towns around the Bay Area including Vallejo, Walnut Creek and Petaluma.

How will price hikes affect real estate markets in 2018?

The phenomenon of being priced out of a neighborhood is real, both for older longtime residents and people starting their professional lives in a new place. Look for areas where young people are moving next. For example, San Francisco with its strict zoning laws has a highly coveted and extremely limited stock. As a result, people are moving to outlying areas within strong transportation networks which are being developed to accommodate such expansion. Places like Vallejo and Richmond are attractive for those looking to flip a property. Of course, there are always safe bets in historic neighborhoods like Pacific Heights or SoHo.

Is there a difference between clients based in New York versus San Francisco?

Bay Area clients are mostly in tech-related industries, while NYC customers come from a far more diverse array of industries like finance, entertainment and fashion; they often originate from abroad, which makes sense. The American market is one of the most resilient due to being supported by perhaps the most diverse economy in the world. People are still looking to live the American dream! NYC clients also tend to have a more sophisticated eye, when it comes to the architecture and design of high-end new development projects.

So, what does a million dollars buy in the USA?

That depends on where you’re looking to explore. A million in San Francisco is a good one-bedroom or a mediocre two-bedroom apartment. In NYC, that may be a one-bedroom in more accessible areas or a shoebox in the hot spots. In Miami, that’s a spacious two-bedroom or a decent home away from the beach. In LA, a million-dollar property can range from a small single-family home to a tiny plot of dirt in a commercially lucrative area. In most urban places, the pricing varies dramatically, depending on the neighborhood.

What questions should prospective buyers ask themselves?

What are you trying to achieve with this purchase? Is it a family home or something convenient for a couple years with the goal of getting a larger space later? Realistically, how much are you comfortable spending and how will that alter your lifestyle? Then, think about who you are going to work with to accomplish this. For example, a home in the trendy Cow Hollow area of San Francisco sold for a million over its asking price the day before it was to be brought on the market
the West Coast is gaining popularity as an international home-buying destination, so buyer competition is real. It’s all about knowing the right local experts and building a relationship with an agent you trust.

If you were to retire now, where would you live and what would you do?

I’d split my time between San Francisco, NYC and London. I’m a San Francisco native, NYC is the center of the world, full stop, meanwhile, London has the perfect combination of urban beauty, world history and the geographic convenience of getting anywhere in Europe within a few hours. I’d probably increase my involvement with charitable causes. I am a founding member of the Exploratorium Lab which raises money for the Exploratorium, one of the world’s premier interactive science museums. I believe that education, ultimately, is the key to success in any undertaking—including buying a home.

 

Source: Observer

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Development Spreads In Fort Lauderdale’s Sistrunk Neighborhood

Real estate development is picking up in the Sistrunk Boulevard corridor, a long-overlooked African-American community in Fort Lauderdale.

Developments planned there range from residential buildings and a performing arts center to a new YMCA, blues club and microbrewery.

Most of the developers are applying for public subsidies from Fort Lauderdale’s Community Redevelopment Agency, which focuses on eliminating blighted properties.

Among the planned developments is the Sistrunk Market and Brewery at 115 West Sistrunk Boulevard. The Fort Lauderdale City Commission will vote soon on a forgivable loan of $1.4 million to finance the transformation of a 23,000-square-foot warehouse to a food hall with a microbrewery and a rooftop gathering place. The manager of the development is Steven Dapuzzo.

Rendering of Six13 residential development at 613 NW Third Ave. in Fort Lauderdale

Just west of the site of the planned microbrewery location, Affiliated Development is preparing to build an 11-story residential tower with 142 units. The city has extended a forgivable $7 million loan to finance the planned development at 613 Northwest Third Avenue, called Six13.

A five-story complex with 400 apartments is planned at the southwest corner of Sistrunk Boulevard and Northwest Seventh Avenue. Felipe Yalale, an entrepreneur, and developer Peter Flotz bought almost the entire block for the complex, which would include 30,000 square feet for restaurants and retail stores. Flotz expects to present plans for the project to city officials in March and to seek a subsidy for a parking garage that would be part of the development.

The city has agreed to spend $10 million to fund construction of a new YMCA at 1409 West Sistrunk Boulevard, now occupied by the old Mizell Center. Just west of the site of the new YMCA, Miguel Pilgram, a Florida Lotto winner, bought properties between Northwest 14 Way and Northwest 14 Avenue for construction of a performing arts center and commercial plaza.

Pilgram also  has acquired a two-story building on the southeast corner of Sistrunk Boulevard and Northwest 15 Avenue, where plans to open a blues club upstairs and a restaurant downstairs.

 

Source: Real Deal

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Bridge Development Buys Dev Site In Pompano Beach

Bridge Development Partners just acquired another heap of land, this time in Pompano Beach, with plans to build a spec industrial park called Bridge Point Powerline Road, The Real Deal has learned.

Rendering of Bridge Point Powerline Road Business Park

The Chicago-based developer paid about $12.3 million for 40 acres of land at 1951 North Powerline Road and broke ground on the first phase of the 467,832-square-foot project, according to a source close to the deal. The purchase has not yet cleared records.

The trade, which breaks down to $307,500 per acre, includes a 150,000-square-foot warehouse fronting Powerline Road. The site is between the Florida Turnpike and I-95.

The seller, Waste Management Inc. of Florida, is relocating, according to a press release. Previous sales information is not available online. Kevin Carroll, Bridge Development Florida principal was not immediately available for comment.

Once completed, the project will feature three buildings, two of which will total 172,927 square feet each and share a 180-foot truck court. The third will span 121,978 square feet and feature a 120-foot fully-secured truck court, according to the release. Amenities for the buildings include high ceilings and 54-foot column spacing.

Last month, Bridge paid $28.2 million for 185 acres of land in Miami Gardens where it plans to build another spec industrial park called Bridge Point Commerce Center. Bridge is also in the midst of building a new distribution facility in Fort Lauderdale called Bridge Point Riverbend.

Nearby in Pompano, Farmers New World Life Insurance, a subsidiary of the Swiss insurance company Zurich Insurance Group, in August paid about $15 million, or nearly $120 per square foot, for a distribution center at 4000 North Dixie Highway.

 

Source: The Real Deal

Former Boca Raton IBM Campus: Set For Housing?

Could IBM’s former office complex in Boca Raton become more than just a hub of technology — and become a hub for housing, too?

Sources say the Boca Raton Innovation Campus , as it is now called, is being marketed for sale by its current owners. This time, potential buyers are taking a look at doing something more with the Boca Raton site than using it only for leased office space. The site could become a mixed-use complex featuring apartments, shops and a hotel, too.

Plans are afoot to seek the city’s OK to build 720 apartments, 20 townhomes, a 120-room hotel and 81,000 square feet of retail space. The property’s owners are San Francisco-based Farallon Capital Management and New York-based Next Tier HD, which bought the property for an undisclosed sum in January 2015. They are said to be working closely with Boca Raton to allow new zoned uses for the 130 acres on which the property sits.

The move is in line with changes made to the nearby Park at Broken Sound, formerly the Arvida Park of Commerce, where the city has allowed homes and shops to built on land that formerly was limited to light industrial research buildings. The city is placing a greater emphasis on housing that sits near public transportation, and the Boca Raton Innovation Campus has a Tri-Rail station directly to its east.

The iconic 1.7 million-square-foot building that once housed IBM’s software and hardware developers could remain intact, or parts of it could make way for other uses. But it’s unlikely large portions of the old IBM building will be felled.

In addition to its historic value, the complex houses a range of corporate tenants with varying lease lengths. Tenants include Bluegreen Corp., Tyco Integrated Security, TransUnion, Modernizing Medicine and MDVIP.

Since the purchase, Next Tier and its on-site broker, CBRE, have brought occupancy to 71 percent from 55 percent. More deals are in the works, too. A broker for Eastdil Secured, which is marketing the property, could not be reached for comment.

“Although the property has historic value, it does not have a historic designation from either the city of Boca Raton which could limit any change to the buildings or the National Register of Historic Places, according to Susan Gillis, Boca Raton Historical Society curator. “But we would like it to.”

The former IBM building is special to fans of both technology and architecture. In December 1966, IBM announced its purchase of 550 acres west of what is now Interstate 95, south of Yamato Road and east of Military Trail. IBM was the first company to build an industrial site in the scrubland of the west, according to the Boca Raton Historical Society.

The building was designed by Marcel Breuer and Thomas Gatje and featured buildings for administration and product testing, development labs, manufacturing and distribution. The buildings feature a unique Y-shaped design, considered an engineering marvel for its day.

“The building is considered an oustanding example of the Brutalist style of architecture,” Gillis said.

The building isn’t just important for its aesthetic elements. The architects also designed the structure to withstand a Category 5 hurricane.

“They put a lot of thought into those buildings, way back when,” said Michael Masanoff, who was part of the Blue Lake Ltd. group that bought the building from IBM in 1996.

On March 31, 1970, 3,500 people, led by IBM chairman Thomas J. Watson Jr., attended the ceremonial dedication of the new facility, according to IBM’s website.

Over time IBM dominated the city, and “wild ducks” flew high in Boca Raton. That was the nickname of a small group of engineers, marketing experts and communications specialists led by Philip “Don” Estridge. They designed the first personal computer, which was introduced in 1981. (On Aug. 2, 1985, Estridge died in the crash of Delta Flight 191 in Dallas. A former IBM building became the Don Estridge High Tech Middle School, named in his honor.)

By the mid-1980s, IBM employed nearly 10,000 people at this site and in office buildings clustered in the area. But by the end of that decade, IBM had stopped manufacturing at the site, moving this function to North Carolina. Then the software development team moved to Texas.

With employment dwindling, IBM sold the property for $46 million in 1996. The property became the Blue Lake Corporate Center, then the T-Rex Corporate Center, when an ownership group bought it from the Blue Lake group for $138.65 million in 2000.

Private equity fund Blackstone Group bought the site for $192.7 million in 2005 and renamed it the Boca Corporate Center & Campus, until Farallon and Next Tier renamed it the Boca Raton Innovation Campus, or BRIC.

In the years since IBM left the building, the area around the complex has matured. A lively strip of retail shops now fronts the building along Yamato Road, and a new interstate interchange is nearly complete on the south side of the property, at Spanish River Boulevard.

More importantly, demand for in-town housing is huge, especially since the city is virtually out of space for new homes, leading many developers to snap up golf course to transform into houses.

Owners of the Boca Raton Innovation Campus have worked to brighten up the old office interiors with renovations and amenities, including adding a fitness center and daycare and renovating the conference room and lobbies. And since no one is building new office space in Boca Raton, existing office space is becoming scarce, too.

Also helping boost the property’s allure, particularly on the heels of this hurricane season: The building has its own backup generator, installed by the Blue Lake group years ago.

 

Source: Palm Beach Post

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Port Everglades Sets Cargo Record

Port Everglades has topped its previous record for containerized cargo volumes with 1.076 TEUs moving through the Port in fiscal year 2017, which ended 30 September 2017.

Containerized cargo increased a 4 percent compared with the previous year, and was up 1.5 percent on the previous record set in 2015 of 1.06m TEUs.

“The volumes of refrigerated produce coming into Florida through Port Everglades from Central America is significant,” said Port Everglades chief executive and port director Steve Cernak. “It represents more than half of all perishable cargo that arrives in Florida by ocean.”

Operating revenue for the year-long period remained steady at US$163m.

“Port Everglades is an economic generator for Broward County and Florida that delivers financial stability and jobs in our community,” said Broward County mayor Barbara Sharief. “This record year is a positive indication of Broward’s commitment to the businesses that choose to locate here.”

Meanwhile, It was also announced that Mission Produce and its Colombian partner Cartama had just sent the first direct shipment of Colombian avocados to the US, arriving at Port Everglades.

 

Source: Fruitnet

New Real Estate Trend? Plaza May Replace Some Stores With Apartments

Right now, it’s just another shopping plaza with vacant storefronts. But soon it could be a trendsetter.

A developer wants to demolish a section of the Village Shoppes of Pine Plaza and replace it with a three-story, 288-unit luxury apartment complex.

The plaza’s movie theater, shops and restaurants would remain standing on the 24-acre lot at Pine Island Road and NW 44 Street. A new brick paver walkway would lead from the apartments to the shops.

“It’s going to be a very good marriage,” said Ashley Bosch, director of development for Miami-based Rilea Group. “Residents would be able to walk right over to the shops. I think that’s where we’re going in the future. You don’t want urban sprawl.”

If approved, the project could be one of the first in Broward County where one section of a shopping center has been demolished to make way for apartments, say city officials and local experts.

“It could be the beginning of a trend in South Florida,” said Jesse Saginor, a professor at Florida Atlantic University who specializes in real estate trends. “With few places left to build, outdated shopping centers may become the next best place to build multi-family housing. It would not surprise me if you think of how may aging retail centers we have. We have people coming here, and that’s going to create a bigger push for redevelopment into residential uses.”

Sunrise commissioners are expected to vote Nov. 14 on the plan, which calls for eight apartment buildings and a clubhouse.

“If approved, construction would begin in November 2018 and be completed by mid-2020,” said Dennis Mele, attorney for shopping center owner Global Fund Investments and Rilea Group.

Stores at Pine Plaza were going out of business well before the anchor tenant Winn-Dixie closed in June, said Isabel Perera, manager of a bagel shop in the center. Perera thinks the new apartment complex will boost business. Within the next year, all of the stores in the back of the plaza will move closer to the street when their building is demolished.

“We’ll be more visible to people passing by,” Perera said. “And the apartment complex will bring us even more customers.”

“With the overall decline in retail, shopping centers are struggling all over, not just Sunrise,” Saginor said. “Department stores are closing left and right. And that’s freeing up space to put other things there, but more retail might not work. The biggest issue we have is not finding a place to shop. It’s finding a place we can afford to live.”

In some cases, developers are tearing down entire shopping plazas. But this is the first time Saginor has heard of a developer demolishing just a portion to build apartments.

“I don’t know of any retail center where they’ve done this,” Saginor said. “But it makes sense. Millennials and seniors would rather rent than own. They don’t want to have to maintain a lawn or walk upstairs. They don’t need all that additional space.”

Click here to view the SunSentinel video news story ‘Struggling Shopping Center In Sunrise May Get New Tenant: Apartments’

 

Source: SunSentinel

Greater Fort Lauderdale Alliance Touts New Jobs, Corporate Expansions At Annual Meeting

Thousands of high-paying jobs came to Broward County during the last fiscal year, and the county’s economic development agency projects that the future looks bright for continued job growth.

That was the message at the recent Greater Fort Lauderdale Alliance Annual Dinner held at the Signature Grand in Davie.

More than 750 people attended the event, where the economic engine reported it assisted businesses in creating 1,978 new high-value jobs, retaining 1,967 jobs and securing a total of $256 million in new capital investment during the 2016-17 fiscal year ended Sept. 30.

Like past years, the economic development agency offered insights into its gains and wins during the past fiscal year. One of the key accomplishments the Alliance touted in its annual report was the expansion of the Canadian pharmaceutical company Apotex in Miramar, which created 150 new jobs and brought in a capital investment of $184 million.

Another one of its key impact projects was announced just this week. Sixt Rent A Car, a luxury car rental service with more than 2,000 locations in over 100 countries established its North American headquarters in Fort Lauderdale. As a result of the local expansion, the company will be creating 300 new jobs and making a capital investment of $10.4 million to the county.

During the annual meeting, the Alliance welcomed Jennifer O’Flannery Anderson, vice president for advancement and community relations at Nova Southeastern University, as its 2017-18 Chair. She takes over for exiting chair Bill White, co-founder and principal of Compass Office Solutions.

One of the highlights of the annual event is the Alliance‘s Ray Ferrero, Jr. Economic Development Leadership Award, which honors those who have made extraordinary contributions to Broward County.

AutoNation Chairman and CEO Mike Jackson presented the award to this year’s honoree Nova Southeastern University President George L. Hanbury, who he lauded for expanding the university’s programs and elevating its national profile.

“We want this to be a destination not just for service and minimum wage jobs but for middle and upper class jobs,” Hanbury said, during his acceptance of the award.

The event’s keynote speaker Vincent “Vinnie” Viola, owner of the Florida Panthers and chairman emeritus of Virtu Financial, said that he believes the future of South Florida and Broward County looks bright.

“I want to dearly tell you how optimistic I am about South Florida and Greater Fort Lauderdale,” Viola said. “We [the Panthers] expect to be here for a long time.”

Over the past 11 years, the Alliance helped businesses create or retain more than 28,000 direct jobs, 62,000 indirect jobs, resulting in $2.4 billion in annual personal income and $12.3 billion in annual economic impact, it said.

 

Source: SFBJ

‘Spec’ Projects, Land Sales Hot Topics For Palm Beach Real Estate

Talk to Palm Beach real estate agents these days, and you’re likely to find them trying to catch their breath as they gear up for a busy season that seems to have spun into action several months ahead of schedule.

Here are a few takeaways from conversations with brokers about the especially busy summer and what house hunters and home sellers on the island might expect during the next seven months.

Weathering The Storm

The outer bands of Hurricane Irma slapped the island Sept. 10 as the massive storm chugged up the state’s west coast. And even though landscaping here took a beating and power was out for several days, the island’s housing stock came through the mostly tropical-storm-force winds with little if any structural damage.

“That’s good news for house hunters,” said principal David Fite of The Fite Group. “The fact that all of our homes weathered the storm so well shows how strong Palm Beach is. It’s a testament to the building codes and the quality of construction.”

Inventory On The Rise?

140 single-family properties are on the market, including houses, townhouses and vacant land, according to a search last week of the Palm Beach Board of Realtors Multiple Listing Service. That’s about the same number available for sale a year ago at this time. Another 230 condominiums and co-ops are listed. Two years ago, that number barely scraped 125.

But several brokers said they expect to see new listings in all categories added by Thanksgiving. And there’s still plenty of room on the market, they agree, for properties that offer premium selling points — newer, newly renovated or on the water.

Speculative Challenges

Developers have been working feverishly to fill the demand for new construction, especially in North End, where smaller properties have been changing hands at a dizzying pace. As of Tuesday, 68 MLS-listed properties have sold on the North End over the past 12 months, 17 more than sold there during the same time period the year before. No wonder that so many North End residents have told town officials that new-construction projects and renovations worry that the character of their neighborhoods is being changed forever.

It’s a trend that’s been in the works for several years. Last season, real estate headlines often focused on never-lived-in houses developed on speculation, mostly on the North End. Those houses changed hands at prices ranging from about $5 million upward to almost $50 million. In fact, three of last season’s eight highest-dollar single-family sales involved never-lived-in waterfront houses, one of which — 101 Indian Road — set a spec record when it sold for $49 million in a deal that saw broker Christian J. Angle of Christian Angle Real Estate at the negotiating table with listing agent Cristina Condon of Sotheby’s International Realty.

But as those houses have sold, builders have been struggling to play catch-up. Several of North End spec houses are still on the drawing boards, thanks to multiple deferrals by the Architectural Commission, which is charged with approving all new architecture in Palm Beach.

Still, buyers can find several houses built on spec, including the most expensive never-lived-in house on the island. That eight-bedroom, French Chateau-inspired mansion of about 36,000 square feet is at 1071 N. OceanBlvd., listed at $64.9 million by Angle. That price nearly $20 million less than when it entered the market in March 2015. The 2-acre double lot faces 242 feet of oceanfront.

The island’s other move-in-ready spec mansion is a furnished lakefront residence at 1340 S. Ocean Blvd., which entered the market a year ago and remains priced at $42.5 million by broker Lawrence Moens of Lawrence A. Moens Associates.

At least three other big-dollar spec houses are rising on Everglades Island. And last month, the Architectural Commission approved an oceanfront Mediterranean-style mansion, to be developed on spec, for a vacant lot at 910 S. Ocean Blvd. in the Estate Section. That property is still for sale in the MLS, and the waiting-in-the-wings developer remains unidentified.

Even so, the price of those properties pales in comparison to the most expensive house listed for sale in the MLS: Netscape co-founder Jim Clark’s historic estate at 1500 S. Ocean Blvd., which Condon is marketing at $115 million.

Land, Ho!

Building spec houses, or any home, requires land of course. Property owners have been busy of late carving new lots from existing estates, an important strategy on an island built out years ago.

Over the summer, a new Estate Section subdivision came online on property that once was the estate of the late John S. Kluge at the corner of El Bravo Way and South County Road. Angle has four of the subdivision’s lots listed at prices ranging from about $6.9 million to about $14.5 million. A neighbor this month paid nearly $7 million for the fifth lot.

And separate developers have submitted plans to the town for two other lavish spec houses, each on a property created by a so-called “lot split” at a larger estate — one on the beach at 901 N. Ocean Blvd. and the other on the lake at 446 N. Lake Way. Designs for both houses are still in the approval stage.

Meanwhile, a 2-acre oceanfront lot that was once part of the oceanfront estate Donald Trump sold to Russian billionaire Dmitry Rybolovlev nine years ago sold for $37 million this month at 535 N. County Road. It was the second of three lots to sell there in a subdivision created last year. The other lot sold for $34.34 million last fall, and the third is no longer on the market. Moens handled both sides of the two lot sales.

What other land is available in Palm Beach this season?

The MLS this week showed 27 properties in the land category — but only 10 of those are vacant lots. That leaves 17 houses being marketed as tear-downs, at least some of which have elevations that wouldn’t meet new flood-plain regulations.

“As a result, it’s practically impossible for buyers to insure them without raising their elevations,” said Bill Yahn, who oversees the Corcoran Group’s Palm Beach office. “They’re perfectly nice homes but the elevation is poor. Five years ago, these homes would have been sold as livable houses, and the buyers would have gotten them insured.”

The possibility of flooding was brought home to would-be buyers this summer when Hurricane Harvey caused massive flooding in southeast Texas. Palm Beach officials have repeatedly warned about flooding threats caused by hurricanes.

The Price Must Be Right

All of the sales activity of late has certainly boosted closing prices, according to sales reports. The single-family market’s so-called sweet spot — the price at which a wide swath of buyers won’t balk if a property is of good quality — has risen over the past four years from about $6 million to about $8 million, said Yahn.

But even in Palm Beach, where people often have the resources to turn lavish dreams into reality, the final price is likely to be the subject of hard-won negotiations in this revved-up market, brokers agreed.

“People are not going going to grossly overpay for what they want,” said Brown Harris Stevens broker Ava Van de Water. “They’re smart. They’re savvy. They will pay a premium if a house is just what the buyer wants. But they won’t overpay.”

 

Source: Palm Beach Daily News

Suffolk Construction To Establish Tech Incubator In South Florida

Suffolk Construction wants to revolutionize its industry.

To that end, the Boston-based company, which operates South Florida headquarters in West Palm Beach, will launch incubators in six cities, including Miami.

Dubbed Smart Labs, the facilities are aimed at gathering innovative people tasked with identifying, testing and scaling technologies that could be used to improve the construction experience.

“We believe our Smart Labs are on the front lines of an industry disruption that will change the way buildings are designed and built,” said Chris Mayer, executive vice president and chief innovation officer at Suffolk. “We are excited to reinforce a culture of invention and curiosity – both in our own people and within the industry.”

Suffolk Smart Labs will be equipped with technologies such as data walls, which display predictive analytics and operational performance metrics; virtual reality “caves,” allowing clients to virtually tour a building before it’s created; and job site feeds, where live streaming and time lapse footage of existing projects can be viewed.

Suffolk debuted the Smart Labs concept in New York City this year and will open its second this month, in San Francisco. By 2018, Miami, in addition to Tampa, Boston and Los Angeles, will have a Smart Lab, too.

 

Source: SFBJ

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CRE Florida Partners Completes Lease/Sale Of National Multiple Listing (NML) Industrial Facility

Michael Rauch and Thomas Robertson, Senior Managing Partners with Rauch Robertson & Co., are pleased to announce the completion of the lease/sale transaction of the National Multiple Listing (NML) property located at 6601 N. Andrews Avenue in Ft. Lauderdale’s Cypress Creek Uptown Business District.

NML has been a business leader and icon in the real estate marketing/print/photography industry for more than 50 years. With the completion of the lease/sale on the ±42,737 warehouse/manufacturing building to Over the Top, Inc., a national linen services company also based in Ft. Lauderdale, NML can now move into a new phase of its business operations.

This uniquely-located property features 100% AC and sprinklered warehouse, 2 loading docks, 1 grade level door, electric overhead doors, 2 executive covered parking garages, heavy power, and more than 8,000 square feet of office/showroom.

Over the Top, Inc. was represented by Coldwell Banker Real Estate.

Tom Robertson and Michael Rauch

Mr. Rauch commented, “We are very pleased to have been able to assist this well-respected family of business entrepreneurs and we wish them the best in all future endeavors.”

Robertson added, “We currently represent several prospective active buyers that are utilizing our firm to source industrial properties from 30,000 to 45,000 square feet in Broward County.”

Fort Lauderdale Puts 24-Acre Industrial Site Up For Bid

The city of Fort Lauderdale is soliciting bids, starting at just over $13 million, for a 24-acre industrial property in Dania Beach that could be developed into offices or warehouses.


4050-South-State-Road-7, Dania Beach site

Colliers International is overseeing the planned sale of the city-owned industrial property at 4030 State Road 7, just south of I-595. It’s one of Colliers’ first assignments from the city of Fort Lauderdale under its new contract to help manage the city’s real estate and dispose of surplus properties.

Fort Lauderdale requires potential buyers to submit sealed bids for the property in Dania Beach to the procurement division of the city’s finance department by Nov. 3. Sealed bids should include a cashier’s check or certified check to the city in an amount equal to 10 percent of the offered purchase price. Colliers would collect a commission at closing equal to 4 percent of the sale price.

Potential buyers must submit a minimum bid of $13.226 million, the appraised value of the property. The appraisal was completed Aug. 14 by Adrian Gonzalez, Jr., of Adrian Gonzalez & Associates P.A. in Hollywood. Terms of the sale would include payment of all closing costs by the buyer. No purchase money mortgage would be held by the city.

In a memo this week to city commissioners, City Manager Lee Feldman said Fort Lauderdale acquired the property in Dania Beach through eminent domain in February 1984. The property currently is used for motor vehicle training by the Fort Lauderdale Police Department, among other uses.

The 24-acre property, zoned I-G (industrial general) by the city of Dania Beach, has sewer and water service from Broward County. An active landfill along the north side of the property accepts only ash residue from the Wheelabrator South Broward trash-incineration facility located south of the property.

“There is, to the best of our knowledge, no contamination of the site,” said Steve Wasserman of Colliers International in South Florida. “The likely future uses of the property are office and warehouse development.”

Fort Lauderdale city commissioners declared the 24-acre site a surplus property and approved the city’s contract with Colliers at their meeting Tuesday, Chaz Adams, spokesperson for the city of Fort Lauderdale, said in an email.

“We expect Colliers to offer recommendations regarding the highest and best use for the properties that comprise our real estate portfolio,” Adams wrote in an email Thursday. “These recommendations may include the sale and disposition of city-owned surplus property. By returning property to the tax roll, the city can reduce operating costs, maximize resources, and generate additional revenue.”

 

Source: The Real Deal