McCraney Property Company sold one of three industrial facilities at the Vista Business Park in West Palm Beach for $8.9 million.

The Vista Business Park in West Palm Beach

Berger Commercial Realty/CORFAC International represented the buyer, who paid $127 per square foot, for the fully occupied industrial building at 2361 and 2365 Vista Parkway.

Berger also retained its position as exclusive leasing agent and property manager for the 70,000-square-foot building.

The property’s new owner is McNab Commerce, a long-established partnership between commercial real estate developers Austin Forman and Jack Loos.

The multi-tenant building is a small bay facility with front-load, grade-level doors and ceilings 18 feet high.

Vista Business Park is a 500-acre, master-planned business park near Interstate 95, Palm Beach International Airport and downtown West Palm Beach.

 

Source: The Real Deal

Chicago-based investment firm is about to complete the $35 million re-positioning of the former Motorola office park into an office/retail campus in Plantation.

The renovation of this iconic property has injected new life to the city. Specifically, the renovation is attracting innovative tech and healthcare companies as tenants and adding restaurants, landscaping, lighting, a fitness center, a jogging trail around a manmade lake and other amenities for tenants to enjoy. The campus is now home to Motorola, Magic Leap, a company developing virtual reality technology, and health care company Amsurg Corp., among others.

GlobeSt.com sat down with Arnstein & Lehr Attorney Josh M. Atlas to discuss the behind-the-scenes of transforming the former Motorola campus into Plantation Pointe. Atlas is a partner in the law firm’s West Palm Beach office and a member of the Construction Law and Commercial Litigation Practice Groups.

Atlas represented Illinois-based Blue Water Builders, the general contractor for the developer Illinois-based Torburn Partners. In part one of this interview, GlobeSt.com asked him what is the main takeaway from the transformation of the iconic Motorola Corporate Park into a sprawling retail/office campus designed with Millennials lifestyle-preferences in mind?

“The main takeaway is that a forward-thinking developer can restore and revitalize an entire community by taking the right approach to a project like the re-positioning of the former Motorola Corporate Park,” Atlas says. “Growing up in South Florida, everyone recognized that the Motorola Corporate Park was an important part of the local community because it was so noteworthy that such a high-profile company would have a large presence in a suburb like Plantation. “

By transforming the project into a multi-tenant corporate campus and adding both retail and lifestyle amenities, he says, the developer created a platform to bring in a much more diverse group of tenants. And that is benefiting everyone.

“The transformation of this campus gives tenants the ability to satisfy the demands of a workforce that is increasingly populated with Millennials who want more out of their professional experience than just having an office to go to work,” Atlas says. “The transformation should also serve as a boost to the local economy by increasing the tax base, creating opportunity for local business and giving more people a reason to move into the community to be near work.”

 

Source: GlobeSt.

Wellington-based B/E Aerospace, an aircraft cabin interior products and services manufacturer, has sold to Rockwell Colllins of Cedar Rapids, Iowa for $8.6 billion.

B/E said it will close its South Florida headquarters at the close of the acquisition. The number of employees affected was not immediately available.

B/E Aerospace was among South Florida‘s top public companies with $2.7 billion in revenue in 2015.

Effective immediately, B/E Aerospace is rebranded as Rockwell Collins. Werner Lieberherr, former B/E Aerospace president and chief executive officer, is now executive VP and COO of Rockwell Collins’ newly created interior systems business. He will report to Kelly Ortberg, chairman, president and chief executive officer of Rockwell Collins.

With the acquisition, Rockwell Collins now has about 30,000 employees and annual revenue of more than $8 billion based on calendar year 2016 results.

The acquisition also expands the Iowa-based company’s portfolio with a wide range of cabin interior products for commercial aircraft and business jets including seating, food and beverage preparation and storage equipment, lighting and oxygen systems, and modular galley and lavatory systems.

“Today marks a major step in advancing our vision of being the most trusted source of aviation and high-integrity solutions in the world,” Ortberg said. “The industry-leading products and solutions being brought together by this acquisition give us a much broader offering, increasing value for our customers and ultimately driving long-term, profitable growth and shareowner value.”

 

Source: SFBJ

Canada-based generic pharmaceutical company Apotex Corp. bought a warehouse in Miramar for $50 million.

An affiliate of Apotex, called Sherm Realty Corp., bought the 302,864-square-foot warehouse Jan. 31 for $165 per square foot.

The seller was Atlanta-based industrial property developer IDI Gazeley, which built the warehouse in 2014.

5501 SW 29 Street in Miramar

The warehouse is located on a 20-acre lot in a corporate park that IDI Gazeley developed at 15501 Southwest 29 Street in Miramar, northwest of Miramar Parkway and Interstate 75. The park’s tenants include Kellstrom Defense Industries Inc.

Colliers International reported that the pace of industrial-space absorption in Broward during last year’s fourth quarter was the fastest in a decade and supported “skyrocketing” lease rates. Colliers reported that 37 percent of all Broward industrial space leased last year was leased in the fourth quarter, about 936,000 square feet.

 

Source: The Real Deal

cash

Michael Rauch, Senior Managing Partner with CRE Florida Partners and Rauch | Robertson & Co., recently negotiated the sale of an industrial property located at 741 NE 42ndStreet in Oakland Park.

The property, which sold for $1,440,000, or $96 per square foot, is a free-standing industrial building with a 1-acre adjacent outside storage yard. The building features 22’ clear ceiling height and several grade level overhead doors.

“This acquisition represents the ‘up-leg’ purchase of an IRC1031 tax free exchange,” explained Rauch. “We are very pleased to have successfully represented this buyer in both the ‘down-leg’ sale and ‘up-leg’ purchase phases of this tax free exchange.”

Rauch represented the buyer in the transaction.

 

 

 

 

Following a year marked by a contentious presidential election and likely changes to come in U.S. policy prescriptions, law firm leaders in Florida are largely optimistic about their firms going into 2017 and expect to see growth in Miami, according to a recent survey of firm leaders and administrators in the region.

“We’re more optimistic today in light of the election,” said Holland & Knight managing partner Steven Sonberg, discussing his personal outlook on the year to come. “The economy was in pretty good shape, and it seems clear with Donald Trump as president, he intends to add fuel to the economy.”

Sonberg isn’t the only firm leader in Florida looking forward to the coming year, according to ALM Intelligence’s Law Firm Leaders survey, which collected responses from administrators and leaders from 56 law firms in the Miami region. The survey was completed in September and October, before Trump’s victory.

In the survey, 29 percent of respondents said they were very optimistic about their firm’s prospects in 2017, while another 64 percent said they were somewhat optimistic. Seven percent said they were uncertain about the coming year, while no firm leaders said they were pessimistic about 2017. The survey also showed that 69 percent of firm leaders in Florida expect deal flow in 2017 to increase moderately over 2016, with another 8 percent expecting a significant increase. While no firm leaders expected deal flow to decrease, 23 percent said that they anticipated flat growth.

The greatest percentage of respondents, 46 percent, said they would expect to see corporate work provide the most revenue growth next year, with litigation as the second most popular response, at 23 percent. Fifteen percent said that they expect to see the most growth in real estate, while 8 percent selected bankruptcy and intellectual property.

Meanwhile, 62 percent of respondents said that they expected bankruptcy and restructuring to be the most financially challenging practice area in 2017. Litigation was named as the most potentially challenging by 31 percent of firm leaders, and another 8 percent pointed to real estate as an expected challenge. A large majority, 80 percent, of respondents said they expected their firms’ billing rates to increase by 5 percent or less in 2017, with the other 20 percent saying they plan to keep their rates at 2016 levels.

Firm leaders were also generally bullish on their firms’ financial outlook for 2017 in terms of the amount of profits taken home by partners. While 20 percent of respondents said they would expect profits-per-partner to decrease, the remainder said they anticipated increases—50 percent said they expect partner profits to grow by 5 percent or less, while 30 percent expected growth of more than 5 percent.

National Comparison

For the most part, the outlook among firm leaders in the Miami regional market closely tracks those of firm leaders in a nationwide survey also conducted by ALM Intelligence. But there were some differences in few key areas—including firm leaders’ optimism about their own firm’s prospects, the likelihood of an increase in deal flow and revenue growth from corporate work in 2017.

Compared to a nationwide survey, which included responses from 103 law firm leaders, a higher percentage of firm leaders in Florida were very optimistic about their own firm’s prospects in the coming year, and a greater percentage of those in the Miami region were more likely to expect increased deal flow and revenue growth from corporate work.

Discussing the results of the nationwide survey with DBR affiliate The American Lawyer, legal consultant Kent Zimmermann of the Zeughauser Group suggested that a change in presidential administration may have some impact on the mix of practice areas providing the most revenue growth for firms. Both the nationwide and regional surveys were conducted in September and October, before the election.

As specific examples, Zimmermann noted that, depending on the policy choices of President-elect Donald Trump, law firms could see more international trade, regulatory and tax work.

“Generally, change in Washington has historically been good for law firms,” Zimmermann told The American Lawyer, “but this particular change will be a mixed bag for law firms, and there will be ups and downs.”

Nationwide, 32 percent of firm leaders said they expected to see the most revenue growth from corporate work, while 27 percent pointed to litigation as the most likely revenue growth driver in 2017. In the Miami region, by contrast, 46 percent of firm leaders selected corporate work as the area that would see the most revenue growth, while only 23 percent said they expected litigation to see the most growth in 2017.

Holland & Knight operations and finance partner Douglas Wright also described likely policy changes in a Trump administration as an opportunity for more legal work in certain areas—the president-elect has, for instance, promised to focus on infrastructure projects and has expressed an interest in overhauling the U.S. tax code.

“I think it’s likely that the tax code is overhauled,” said Wright. “And that really hasn’t happened since 1986, so I think those changes … will require businesses and individuals to reevaluate their structure and business planning.”

Firm Expansion

The nationwide and regional outlook on real estate practices also had some slight differences—10 percent of firm leaders in the national survey said they would expect to see the most growth in their real estate practices; in the Miami regional results, 15 percent of firm leaders said they expect real estate to be the practice with the most growth next year.

Sonberg expects his firm’s real estate work to continue at a high level. That’s especially true in Florida, he said, where real estate developers are remaking the landscape around Miami by eyeing potential projects in Broward and Palm Beach counties. He and his colleague, Wright, also noted an ambitious plan by Tampa Bay Lightning owner Jeff Vinik to develop an area in downtown Tampa.

GrayRobinson President Mayanne Downs had a similar take, saying that in light of increased real estate development, she’s seen a high demand for legal work in the realms of land use, permitting, planning and zoning. She also noted she’s starting to see an uptick in construction-related litigation that’s followed some of the real estate development in the state in the recent past.

“Real estate transactions are up,” Downs said, “and with that, all the stuff that goes with it.”

Law firms themselves have their own real estate and expansion plans. Downs noted GrayRobinson has a relatively new office location in Miami after relocating in 2015 to the downtown Wells Fargo Center. And Sonberg said Holland & Knight plans to add a sixth floor to its lease in the South Florida hub city.

Those developments appear to align with the survey results—83 percent of firm leaders in Florida said they expect to add lateral partners in Miami next year. The next most popular responses were New York, where 33 percent of firm leaders said they expect to hire laterals, and in Los Angeles and Chicago, where 17 percent said they expect to add to their partner ranks.

Overall, 72 percent of survey respondents said they would expect in 2017 to increase their firms’ total head count by 1 to 5 percent, while 14 percent anticipated more growth of 6 to10 percent. The remaining 14 percent of firm leaders said they expected to keep their lawyer head count the same in 2017 as it was in 2016.

Downs, for her part, said she’s focusing on hiring in Miami, but she also stressed that she’s engaged in a lot of recruiting throughout many of GrayRobinson‘s offices in Florida.

“Miami is buzzing. … It’s almost as if there’s an electric hum in the air,” she said. “So Miami for sure. But I really am seeing the excitement around the state.”

Source: DBR

Michael Rauch

Michael Rauch

Michael Rauch, President and Managing Partner of CRE Florida Partners recently completed the sale of two freestanding office properties in Dania Beach. Both office properties located at 3201 Griffin Road.

Rauch originally sold the property to the ownership of Gulfstream International Airlines in 2005, which was used by the airline until 2010 as the company’s corporate headquarters. Gulfstream was sold in 2010 to Silver Airways. The owner of Gulfstream retained the buildings. Rauch was retained in 2012 to lease and stabilize the property for sale.

3201 Griffin Road-Dania Beach 2The asset was purchased by Miami-Dade investment group Salomon Investment Inc. as part of an IRC1031 exchange. Salomon purchased the ±30,379 SF office property for $3,120,000 or ±$103 per square foot on a ±6.5% capitalization rate. At the time of sale, the property was approximately 93% occupied.

“The sale of the Gulfstream International Airlines property represents the conclusion of several years of asset-repositioning for an investment sale,” commented Rauch. “The sales price also reflects a slow trend in strengthening office values in South Florida, which is badly needed and long overdue,” he added.

The deal closed March 31.  The buyer represented itself in the transaction.