A property development company claims it owns parts of the Hillsboro Inlet and the backyards of several houses nearby.
Broward County property appraiser Marty Kiar said he’s never seen anything like it and is asking a judge for clarification before any property records are changed. Kiar claims those affected were never informed about the matter.
The address 2000 Bay Drive in Pompano Beach is just south of the Hillsboro Inlet on the Atlantic. According to Broward’s property appraiser, if a developer gets his way, the pool area behind the house will no longer belong to the owner of the house.
“This is something that I have never seen before,” Kiar said.
The property appraiser claims part of the area the developer claims to own includes parts of the Hillsboro Inlet and parts of a Coast Guard station, as well several backyards of million-dollar homes on Bay Drive. Kiar said this affects 16 property owners.
“And the court order tells our office to take a portion of their property — basically their backyards. It even goes through one person’s pool — and to take it out of their names and put it in the name of the plaintiff,” Kiar said.
The plaintiff is the owner of Hillsboro Inlet Investments. So much of the property is within the Hillsboro Inlet, which people utilize every day for recreation purposes.
“That is the property of the people of our country,” Kiar said.
Kiar is so concerned that he’s filed a “motion of clarification” to the judge seeking guidance “due to significant legal consequences.” Kiar said he wants to make sure the judge knows that current property owners affected were never even told about the issue.
“I can’t believe that an order came to our office that asks us to update records and change ownership,” Kiar said. “Those people who own the property were not put on notice. We have sent letters to every one of the property owners that are being affected. We have reached out to the state of Florida, to the Coast Guard, to just about every single person, entity that may be affected here.”
Much of the property in question is underwater — legally known as submerged lands. It’s complicated, but Hillsboro Inlet Investments legally obtained ownership of the property from the sole surveying director of a dissolved realty company.
According to state records, the man listed as a manager of Hillsboro Inlet Investments is William Swaim.
“I can’t speak on the intent of the plaintiff. I have no idea why he wants to do this,” Kiar said.
The property owners who spoke to Local 10 News are lawyering up. Ocean Ridge resident Dr. Gilbert Panzer said Swaim’s company wants him to pay $150,000 to them for the use of his dock. Panzer has lived at his waterfront home in Palm Beach County for 38 years.
He and close to two dozen neighbors have gotten letters from an attorney representing McCormick Mile Investments, informing them that their docks and boat lifts intrude on a canal McCormick now owns. For a non-negotiable fee of $150,000 per house, McCormick will give them access to the canal. According to state records, Swaim is listed as a manager of McCormick Mile Investments
“He claims he owns the canal,” Panzer said. “I think it’s a scam.”
Down the street, another one of Swaim’s companies obtained a deed and ownership to parts of a lagoon — submerged land behind the Wellington Arms condominiums. Swaim’s company demanded the condo remove their dock over his land. After years in court and mediation, a source says the condo will now pay Swaim and his company $150,000 for use of their dock and the waterway.
This seems to be a pattern. Swaim’s companies obtain titles to submerged lands and then go after those who use them, including large cable companies with submerged underwater fiber optic cable systems. South Spanish Trail LLC — a Swaim company — filed a $250 million lawsuit against some of the biggest companies for their use of cables on his land underwater.
Could these same demands be made to the residents on Bay Drive in Pompano Beach? Or to companies with lines buried in the Hillsboro Inlet? If history repeats itself, we know where this may be going. By phone, Swaim refused to answer questions.
Panzer summed it up this way.
“If he wasn’t successful to some extent, he wouldn’t continue this. So he must be successful in some cases,” Panzer said.
Residents said they are gearing up for a fight. There is an April 14 hearing to address Kair’s concerns about the order for him to change property records.
Swaim’s attorney representing Hillsboro Inlet Investments released the following statement to Local 10 News:
“To Plaintiff’s knowledge, there are no current property owners who are adversely impacted, as is reflected on the survey exhibits which were attached to the complaint and incorporated into the final judgment. All interested parties with potential claims to the underlying lands in question were in fact identified and named in the lawsuit. This challenge here appears to be the result of title and mapping errors which seemingly have been perpetuated by BCPA’s office over the course of many decades. Notably, Plaintiff’s case relies in part upon surveying calculations which, on the very rare occasion, can result in some discrepancy when lands are involved which have not been surveyed for lengthy periods of time (as is the case here).
If there are any proven surveying discrepancies, which is not the case thus far as the BCPA has done nothing more than to rely upon its own errant, out of date title and mapping records in drawing such a conclusion, Plaintiff is certainly prepared to promptly remedy any overlapping and/or inexact surveying calls which are brought to its attention that might potentially impact the property rights of any private landowners.
Beyond that, much of BCPA’s confusion here results from its fundamental institutional misunderstanding of and failure to recognize the clear legal distinction between submerged lands and sovereign lands. Simply put, not all submerged lands are sovereign lands. As was alleged by Plaintiff in its very detailed complaint, this lawsuit was actually instigated by BCPA because BCPA had refused to title and map the properties which Plaintiff had acquired without it first obtaining a judgment quieting title to them, even though Plaintiff presented BCPA with its deed to the lands in question before initiating the lawsuit, because they are presently submerged.”
Industrial Investors Look For Bigger Returns With Class B and C Product
Pricing and cap rates for Class A industrial product are expected to stabilize for the remainder of this year, according to a new report from Cushman & Wakefield—though trophy properties in the Inland Empire of Southern California, New Jersey, South Florida, Seattle, and Dallas will reap the most aggressive overall rates.
Spring 2021 data from C&W shows that overall capitalization rates range widely by asset class, with a nearly 90 basis point difference between Class A and B industrial product and a 235 bps difference between Class A and C industrial facilities. And overall rates for Class C properties are clocking in 143 bps higher than their Class B counterparts.
Average cap rates for Class A assets ranged from between 3.25 and 5.5% in spring 2021 and declined by 33 basis points year over year, while Class B went down by 58 and Class C assets declined by 89 bps since last spring. And while demand for Class A product in core US cities has been strong, over the past five years rates began to stabilize.
Cap rates for Class B and C product are logging the largest decreases as investors target more of the former to generate higher yields and returns from higher-priced Class A assets. The average for Class B product this spring fell between 4 and 7%, while the average cap rates for Class C assets ranged between 5 and 9%.
Source: GlobeSt
Permanently Altered Industrial Sector Will Drive Demand For 4B SF: Prologis Report
The coronavirus pandemic has reshaped the global logistics market in fundamental ways, spurring its long-term growth, but also putting new stress on the system as consumers adopt online retail sales more quickly than they might have otherwise, according to a new report by industrial real estate giant Prologis.
That could lead to demand for 4B SF of new logistics stock.
The report, “Forever Altered: The Future of Logistics Real Estate Demand,” said perhaps the main driving force in change for the industrial sector will be the accelerated growth in e-commerce. Though the pandemic will end, that will remain as one of its prime legacies.
E-commerce penetration will continue to be robust post-pandemic for a number of reasons. One is that many consumers overcame barriers to e-commerce during the pandemic, and they aren’t going back, the report says.
Also, innovation and supply chain investments made during the pandemic will hone the competitiveness of online options for retailers. That will be especially the case for retail segments with low e-commerce penetration before the pandemic, such as grocery retailers and home improvement specialists, Prologis predicts.
Growth in consumption-oriented uses will drive growth in logistics real estate, even as production-oriented uses decrease, Prologis also found. Consumption is now the main driver of demand for logistics space on the global level, with retail sales having a higher correlation with logistics demand growth than more traditional uses of such space, such as manufacturing or wholesale trade.
These changes will naturally mean opportunity for industrial real estate owners and developers, but there will also be growth pains in logistics going forward.
Source: Bisnow
Development Company Claims To Own Parts Of Hillsboro Inlet, Backyards Of Several Nearby Houses
A property development company claims it owns parts of the Hillsboro Inlet and the backyards of several houses nearby.
Broward County property appraiser Marty Kiar said he’s never seen anything like it and is asking a judge for clarification before any property records are changed. Kiar claims those affected were never informed about the matter.
The address 2000 Bay Drive in Pompano Beach is just south of the Hillsboro Inlet on the Atlantic. According to Broward’s property appraiser, if a developer gets his way, the pool area behind the house will no longer belong to the owner of the house.
The property appraiser claims part of the area the developer claims to own includes parts of the Hillsboro Inlet and parts of a Coast Guard station, as well several backyards of million-dollar homes on Bay Drive. Kiar said this affects 16 property owners.
The plaintiff is the owner of Hillsboro Inlet Investments. So much of the property is within the Hillsboro Inlet, which people utilize every day for recreation purposes.
Kiar is so concerned that he’s filed a “motion of clarification” to the judge seeking guidance “due to significant legal consequences.” Kiar said he wants to make sure the judge knows that current property owners affected were never even told about the issue.
Much of the property in question is underwater — legally known as submerged lands. It’s complicated, but Hillsboro Inlet Investments legally obtained ownership of the property from the sole surveying director of a dissolved realty company.
According to state records, the man listed as a manager of Hillsboro Inlet Investments is William Swaim.
The property owners who spoke to Local 10 News are lawyering up. Ocean Ridge resident Dr. Gilbert Panzer said Swaim’s company wants him to pay $150,000 to them for the use of his dock. Panzer has lived at his waterfront home in Palm Beach County for 38 years.
He and close to two dozen neighbors have gotten letters from an attorney representing McCormick Mile Investments, informing them that their docks and boat lifts intrude on a canal McCormick now owns. For a non-negotiable fee of $150,000 per house, McCormick will give them access to the canal. According to state records, Swaim is listed as a manager of McCormick Mile Investments
Down the street, another one of Swaim’s companies obtained a deed and ownership to parts of a lagoon — submerged land behind the Wellington Arms condominiums. Swaim’s company demanded the condo remove their dock over his land. After years in court and mediation, a source says the condo will now pay Swaim and his company $150,000 for use of their dock and the waterway.
This seems to be a pattern. Swaim’s companies obtain titles to submerged lands and then go after those who use them, including large cable companies with submerged underwater fiber optic cable systems. South Spanish Trail LLC — a Swaim company — filed a $250 million lawsuit against some of the biggest companies for their use of cables on his land underwater.
Could these same demands be made to the residents on Bay Drive in Pompano Beach? Or to companies with lines buried in the Hillsboro Inlet? If history repeats itself, we know where this may be going. By phone, Swaim refused to answer questions.
Panzer summed it up this way.
Residents said they are gearing up for a fight. There is an April 14 hearing to address Kair’s concerns about the order for him to change property records.
Swaim’s attorney representing Hillsboro Inlet Investments released the following statement to Local 10 News:
“To Plaintiff’s knowledge, there are no current property owners who are adversely impacted, as is reflected on the survey exhibits which were attached to the complaint and incorporated into the final judgment. All interested parties with potential claims to the underlying lands in question were in fact identified and named in the lawsuit. This challenge here appears to be the result of title and mapping errors which seemingly have been perpetuated by BCPA’s office over the course of many decades. Notably, Plaintiff’s case relies in part upon surveying calculations which, on the very rare occasion, can result in some discrepancy when lands are involved which have not been surveyed for lengthy periods of time (as is the case here).
If there are any proven surveying discrepancies, which is not the case thus far as the BCPA has done nothing more than to rely upon its own errant, out of date title and mapping records in drawing such a conclusion, Plaintiff is certainly prepared to promptly remedy any overlapping and/or inexact surveying calls which are brought to its attention that might potentially impact the property rights of any private landowners.
Beyond that, much of BCPA’s confusion here results from its fundamental institutional misunderstanding of and failure to recognize the clear legal distinction between submerged lands and sovereign lands. Simply put, not all submerged lands are sovereign lands. As was alleged by Plaintiff in its very detailed complaint, this lawsuit was actually instigated by BCPA because BCPA had refused to title and map the properties which Plaintiff had acquired without it first obtaining a judgment quieting title to them, even though Plaintiff presented BCPA with its deed to the lands in question before initiating the lawsuit, because they are presently submerged.”
RELATED DOCUMENTS BELOW:
Source: Local 10 News
The Palm Beach Planning And Zoning Commission Looking To Reform Town Code Once Again
With Palm Beach attracting new residents and businesses from all over the country, the Planning and Zoning Commission is considering a proposal to reform the zoning codes.
Planning and Zoning Director Wayne Bergman told those at the commission’s Feb. 16 meeting that the proposal would primarily touch on zoning codes, but it could spill over into other areas, such as parking and drainage. Bergman said the current zoning code, which is approximately 40 years old, started out as “very conventional.”
He told the Daily News the sections of the code most in need of reform include the rules for construction within the town, stormwater drainage, and the Architectural and Landmarks commissions.
A proposal to reform town codes is not new. Former Planning and Zoning Director John Martin, who resigned in January 2020 after only 17 months on the job, first proposed a reform in 2019 to the council that included the concept of New Urbanism. Walkable blocks and streets, environmental sustainability and accessible public spaces are key elements of New Urbanism.
The proposal included Martin’s recommendation for the town to hire two firms, Congress for the New Urbanism and the Miami architectural firm of Duany Plater-Zybwerk, as consultants at a total cost of up to $250,000.
The overhaul of the zoning code never happened because the council did not approve an amendment to laws that would have allowed it, and the proposal faced resistance from many in the community. Upon Martin’s departure, the council decided it would be better to carve up code reform into pieces, starting with flood-elevation guidelines.
Bergman also spoke of possibly forming a steering committee comprising a mix of council members, planning and zoning, and the landmarks commission to oversee code reform.
The proposal also would include education sessions on the background of land use codes, historic preservation, mobility and building designs.
Bergman acknowledged that at any point, the initiative “could end up off the rails and stopping completely” if it lacks support from the town.
Zoning Chairman Michael Ainslie said Bergman had the support of the committee to move ahead and provide more detail on the concept for the next meeting.
Vice Chair Richard Kleid disagreed with the possibility of creating “another committee similar to the Underground Utilities Task Force,” instead of allowing Planning and Zoning to take the lead.
Commissioner Michael Spaziani also questioned the need to hire an outside consultant, saying members of the commission could work on sections of the code themselves.
Commissioner Richard Pollock said an outside firm could allow more transparency of the process.
Source: Palm Beach Daily News
Anticipating Demand For Loans, City National Bank Of Florida Expands Commercial Banking Team
City National Bank of Florida added six Wells Fargo veterans to its commercial lending team.
CEO Jorge Gonzalez said the bank expects demand for commercial loans to surge in 2021 as more high-net-worth individuals and new-to-market businesses migrate to the state. The senior-level hires will help the bank keep up with that demand.
The new hires are:
City National Bank is South Florida’s second-largest bank by assets, with $18.6 billion as of Dec. 31. In November, the bank completed its purchase of Executive National Bank, its second acquisition in just over two years.
The Miami-based bank was one of the region’s top Paycheck Protection Program lenders and among the few banks in the nation to participate in the federal Main Street Lending Program for businesses.
Source: SFBJ
Quaint And Sleepy Hollywood Beach Is Poised For Major Redevelopment
Hollywood, sandwiched between Miami and Fort Lauderdale, has seemed quaint and sleepy compared to its big-city neighbors, despite impressive community assets.
The 30-square-mile municipality’s amenities include an airport, a walkable downtown, 7 miles of oceanfront and a beachfront pedestrian walkway called the Broadwalk that’s lined with independent restaurants and hotels. Inland are golf courses, residential neighborhoods and the Seminole Hard Rock Resort & Casino. Port Everglades is partly within the city limits.
Ishmael outlined some of the major projects around Young Circle, the downtown city center with a 9-acre outdoor amphitheater and arts park, where Hollywood’s main east-west corridor meets north-south artery US 1.
On the southwest quadrant of Young Circle, the $60M Block 40 project is planned from GCF Development. It will have 166 residential units and 103 hotel rooms. On the southeast quadrant, a mixed-use project by BTI Partners will bring 366 luxury rental units and ground-floor retail. The east side of Young Circle is slated for matching towers with two levels of restaurants and retail, also by BTI. South of Young Circle, Hudson Village, a 108-unit mixed-income affordable project by Housing Trust Group, broke ground last year, and Pinnacle at Peacefield, a senior housing community, was recently completed.
Further east, on Hollywood Beach, Related Group last year completed the 41-story Hyde Beach House on the Intracoastal Waterway. In 2019, voters approved a $165M general obligation bond to finance more than 30 projects.
Webinar moderator Raelin Storey, Hollywood’s director of the Office of Communications, Marketing and Economic Development, said the city has two opportunity zones — one downtown and one between Sheridan Street and Stirling Road near I-95. Storey said that over the past few years, the city adjusted its zoning to encourage development along its commercial corridors.
Keith Poliakoff, partner at law firm Saul Ewing Arnstein & Lehr, said that his client, BTI, is about to break ground on Block 58, formerly known as The Hollywood Bread Building in the downtown opportunity zone. It’s planned to include approximately 366 apartment units with 15K SF of retail.
Inigo Ardid, co-president of Key International, which owns the Eden Roc and Marriott hotels in Miami Beach, has been exploring possibilities in Hollywood and said he was very bullish on leisure hospitality.
Related Group Managing Director Eric Fordin said that the once-stunning but long-neglected Hollywood Beach Resort might be redeveloped in time.
That’s not all that makes it complicated.
But that’s not to say the project won’t happen.
Fordin lives in Hollywood himself. He said some residents love Hollywood’s slow vibe, independent stores and two-story motels that cater to Canadian snowbirds. They don’t want Hollywood to be like Sunny Isles, lined with tall towers that create a canyon-like feel. But the quaintness comes with blight.
The panelists called for more public-private partnerships, but that hasn’t always worked out great for Hollywood’s taxpayers. For a Margaritaville Resort developed in 2015 by developer Lon Tabatchnick’s Lojeta Realty and Starwood Capital Group, the city invested $23M in the development and left the city potentially liable for $84.3M in bond payments for a connected parking garage, the Sun-Sentinel reported.
Source: Bisnow
Industrial Construction Takes Off In Florida Markets
As industrial took off in 2020, so did new construction in Florida markets. In many of those areas, completions have reached historic levels.
In the second half of 2020, large-scale speculative construction projects or expansions at existing industrial parks were announced in multiple Florida markets, according to Cushman and Wakefield’s “Florida Industrial Construction” report.
There was 15.4 million square feet (MSF) under construction at the end of 2020. In addition, another 29.7 MSF is poised to come online in the next three years.
Out of this new construction, speculative building dominated. At the end of 2020, 5.8 MSF of speculative building had been completed. C&W says Build-to-Suits accounted for 43% of all completions. Many of those speculative projects under construction have yet to attract tenants. By the end of 2020, only 56% achieved any pre-leasing.
Drilling down into individual markets, Miami leads the way with 8.7 million square feet of industrial space proposed. Tampa Bay (6.0 million), Lakeland (5.8 million), Jacksonville (3.7 million), Broward (2.4 million), Orlando (2.0 million) and Palm Beach (1.2 million) are next.
Tampa Bay leads with 3.4 million square feet of industrial space under construction. It is followed by Miami (2.7 million), Broward (2.2 million), Orlando (2.2 million), Jacksonville (1.9 million), Lakeland (1.7 million) and Palm Beach (1.4 million). The highest preleasing was found in Lakeland (91%), Jacksonville (84%), Orlando (60%) and Miami (50%).
In a recent report focusing on Jacksonville, Colliers International found that construction, which represents about 1.9% of the current industrial stock, created a “trickle-up” effect where industrial users are shedding dated space for quality new construction product. The trend has produced a combination of rising industrial vacancy—which hit 5.4% in the fourth quarter—and rising rents—which increased to $5.21 per square foot.
While other asset classes are closely monitoring the vacancy rate—typically because a rising rate leads to tempered if not negative rent growth—Colliers says that increased vacancy is actually a welcome relief in the Jacksonville industrial market. In 2018, the local vacancy rate reached lows of 2%, giving users limited options. Today, the increased rate of 5.4% still points to healthy market conditions, and new construction activity is well matched to demand.
Nationally, industrial space is getting absorbed. In a recent report, Moody’s Analytics said the warehouse/distribution space absorbed 35.4 million square feet in Q4, its highest mark since Q1 2019 when 70.7 million square feet were absorbed.
Construction for the new warehouse/distribution space fell to 25.8 million square feet in Q4 after hitting 38.2 million square feet added in Q3, according to Moody’s Analytics. The space has posted an average of 36.8 million square feet of new inventory added per quarter in the prior six quarters.
Source: GlobeSt.
Construction Firm Plans Industrial Park Near West Palm Beach
An affiliate of Vecellio Group plans to redevelop its construction materials site near West Palm Beach to build distribution warehouses.
The Palm Beach County Zoning Commission will consider several applications for the 32.8-acre site at 101 Sansburys Way on Feb. 4. The property, owned by Vecellio Group subsidiary 101 Sansburys Way LLC, currently has about 66,000 square feet of warehouses and storage yards for the company’s construction equipment. It’s on the north side of Southern Boulevard, just west of Florida’s Turnpike.
(IMAGE CREDIT: HELMS DEVELOPMENT)
The applicant wants to rezone the southern portion of the property from “commercial” to “industrial” and have a site plan approved for three warehouses totaling 435,800 square feet. There would be 535 parking spaces and 130 loading spaces.
Scott Helms, of Fort Lauderdale-based Helms Development, represents Vecellio Group as the development partner of the project.
Click here to read more about this story.
2021 Could Deliver Strongest Growth Since 1984
Many economists aren’t just expecting a recovery this year—but one with the potential for significant economic growth.
In a new research video, John Chang, SVP and director of research services from Marcus & Millichap, gives a positive outlook for the economy and the commercial real estate sector based on new reports from leading economists.
Chang outlines three underlies as the catalyst for growth this year. Stimulus is at the top of the list. Following the $2.2 trillion CARES Act package in March 2020, Congress passed an additional stimulus bill in December valued at $900 billion. Now, a third round of stimulus is being discussed. President Biden is pushing a $1.9 trillion round, but Chang expects the ultimate bill to be lower.
Still an additional round of stimulus will come with major economy-boosting benefits.
Although the debate over the stimulus package has focused on stimulus checks, there is more value in expanding unemployment benefits.
The vaccine is another reason that growth is on the horizon.
Finally, renewed economic confidence will also help give the economy a boost. According to Chang, there is $4.5 trillion in savings and money market accounts that represent the pent-up demand in the market. This funding will help to increase consumer spending once people feel safe again.
The economic growth will also help to drive shopping center and travel demand, and as the economy strengthens, companies will launch new office strategies.
All asset classes are set to benefit.
Source: GlobeSt.
Amazon Boosts South Florida’s Industrial Market In Q4 And 2020
South Florida’s industrial market performed well in the fourth quarter and in 2020, as Amazon leased about 3 million square feet throughout the year, according to a recently released report.
The region’s average asking rent rose slightly to $8.88 in the year’s final quarter, up 1.6 percent year-over-year, according to the report from Newmark. The fourth quarter vacancy rate hit a low 4.9 percent, thanks to pre-leasing activity. About 6 million square feet of industrial space is currently under construction in the tri-county area, with more than half of it already leased.
Here is a breakdown for each of the counties:
Miami-Dade County
Miami-Dade’s vacancy rate stayed consistent at 4.5 percent for the fourth quarter. Average asking rent was $8.33, up 1 percent quarter-over-quarter, and up about 4 percent year-over-year.
The county saw 266,000 square feet of space delivered during the quarter. Miami-Dade represented more than half the region’s net absorption, with 2.7 square feet absorbed during 2020. Fifteen buildings totaling more than 3.1 million square feet are under construction, with 56 percent of that already leased. That means that it will not have much of an impact on the county’s vacancy rate this year, according to Newmark.
The top lease deals in the county included Keuhne & Nagel leasing 209,610 square feet at 3401 Northwest 72nd Avenue in Miami and IFS Neutral Maritime leasing 93,320 square feet of space at 1350 Northwest 121st Avenue in Miami.
Top industrial sales in the county included the $16.2 million sale of Doral warehouse by a family that owns an international logistics company.
Broward County
Broward’s vacancy rate continued to rise, reaching 5.6 percent at the end of the fourth quarter, the highest in the region. That’s an increase, quarter-over-quarter and year-over-year, of about 2 percent and 6 percent, respectively. But the vacancy rate remained below the 6 percent vacancy rate reported at the end of 2015.
The county saw 373,000 square feet of new space delivered during the quarter. About two-thirds of the 1.6 million square feet under construction is available for lease.
The average asking rent in the fourth quarter was $9.39, down 0.3 percent, year-over-year, and down 0.7 percent, quarter-over-quarter. Increased availability from second-tier space helped rents decrease, according to Newmark.
Amazon signed three of the top leases in the quarter in Broward for about 1 million square feet. Overall, Amazon is responsible for most of the largest leases signed during the year.
Elion Partners had two of the top purchases of the quarter, paying $31.5 million for a Dania Beach building and $12 million for Bennett Auto Supply in Pompano Beach.
Palm Beach County
The county’s vacancy rate was 5.4 percent in the fourth quarter, a new record high since at least the fourth quarter of 2015. Newmark credited this to the delivery of five buildings totaling over 768,000 square feet.
The average asking rent was $9.84, up 1 percent, quarter-over-quarter, and up 0.4 percent, year-over-year.
About 1.3 million square feet is under construction in the county, 1 million of it for an Amazon distribution center. The county had 77,000 square feet of industrial space absorbed during the fourth quarter.
The largest leases signed during the quarter include two in West Palm Beach: Tire Hub leasing 40,500 square feet of space at 305 Haverhill Road and Jamlyn Supply leasing 38,880 square feet of space at 6051 Southern Boulevard.
Top deals during the quarter included an Atlanta-based industrial investment group buying a newly built warehouse in the Palm Beach Park of Commerce for $27.2 million.
Source: The Real Deal
Microsoft, Citadel And Elliott Management Among Firms Expanding In South Florida
Microsoft, Citadel and Elliott Management are all in talks to lease office space in South Florida, adding fuel to the trend of major tech and finance firms expanding in the region.
Seattle-based Microsoft is reportedly in talks to lease 30,000 square feet at 830 Brickell, a 57-story office tower being developed by Vlad Doronin and his joint venture partner Cain International, according to Business Insider.
Billionaire Ken Griffin’s Chicago-based hedge fund Citadel is also eyeing 830 Brickell, and is on the hunt for up to 80,000 square feet in Miami. Griffin has been acquiring land on Miami Beach’s Star Island, and his Citadel Securities has been operating a temporary trading room in Palm Beach since the pandemic began.
Baker McKenzie is also in talks for space at 830 Brickell, according to Business Insider.
MSD Partners, the private investment firm of Dell Technologies billionaire Michael Dell, provided a $300 million loan to construct 830 Brickell in 2019. WeWork was announced as an anchor tenant, though it’s unclear whether the co-working operator will still be a tenant. When it is completed in 2022, the building will mark the first new large Class A office tower in the downtown Miami market in the last decade.
Elliott Management, the hedge fund founded by Paul Singer, is expected to sign a 40,000-square-foot lease at Related Companies’ 360 Rosemary office tower in downtown West Palm Beach. (Related is expected to close on the nearby Phillips Point office towers for $282 million.) Elliott Management has been looking in the market for months, the Palm Beach Post reported.
New Day USA, a mortgage company based in Maryland, is also reportedly finalizing a lease for about 50,000 square feet in the same building as Elliott Management.
Blackstone Group announced earlier this year that it is taking 41,000 square feet at 2MiamiCentral, an office building at the mixed-use MiamiCentral development, anchored by Brightline.
Virtu Financial plans to sign a 10-year lease in Palm Beach Gardens to relocate about 30 people from New York, Bloomberg previously reported.
Source: The Real Deal
Kushner Companies Buying Sites Near Delray Beach And Lake Worth For Industrial And Mixed-Use Projects
Kushner Companies is expanding in South Florida, acquiring two development sites in Palm Beach County, The Real Deal has learned.
The New York-based firm is buying two properties near Delray Beach and near Lake Worth Beach, according to a source close to the deal. An industrial project is planned for the Delray-area property and a mixed-use multifamily development for the Lake Worth site.
Kushner Companies could not be reached for comment. It’s unclear when the deals will close.
The firm, founded by Charles Kushner and led by president Laurent Morali, has already announced plans for three major apartment projects in South Florida since the start of 2019. The company is planning to bring roughly 3,000 units at a cost topping $1 billion in Miami and Fort Lauderdale.
Morningstar Nursery, led by Paul Okean, currently owns both Palm Beach County properties. The Lake Worth property is on the northeast corner of Hypoluxo Road and South Military Trail, across from a Walmart Supercenter, and the other is agricultural land west of the Florida Turnpike and north of Atlantic Avenue, along Starkey Road, near Delray Beach.
Morning Star Nursery reportedly works with Home Depot, Walmart and wholesale suppliers. The company could not be reached for comment.
On the Delray site, Kushner is planning a 900,000-square-foot industrial development, likely for a single distribution tenant. The developer would have to secure a land use change from agricultural to industrial to build the project.
On the Lake Worth property, Kushner plans a multifamily and retail development with 384 apartments and 60,000 square feet of retail space.
Kushner is expected to break ground this year on its Wynwood and Edgewater apartment projects in Miami. The company opened a South Florida office last year in Bay Harbor Islands, led by Michael Szafranski and Gabriela Toledo.
Source: The Real Deal