Miguel Pinto of APEX Capital Realty just signed the first two tenants at their Little River listing, known as an innovative warehouse complex that illustrates some of what he views as the top three trends/predictions for next year.
The Little River project at 300-320 NE 75th Street is an innovative warehouse complex that has been developed into a flexible multi-business space concept offering tailored tenant build-outs in 24 industrial spaces. They can be easily built-out and tailored to meet different space needs of each tenant and their particular individual business.
APEX Capital Realty founded in 2017 as a local boutique brokerage within a year began adding staff and expanding to a national market. Their focus continues to specialize on the urban core of Miami as well as other major cities throughout the US.
What are those three trends that he predicts for GlobeSt.com?
1. Tokenization, a new method of financing real estate deals.
“It will change how commercial real estate is done for the better in 2019,” he says. It makes ownership easier by using cryptocurrency into tokens that are stored on the blockchain. The effect is to allow virtually anyone to invest in a new and unique real estate asset class.
“For real estate investors, tokenization will be a new way to raise equity or debt on deals,” he says. It will also reduce a traditional reliance on banks and financial institutions for capital.
2. Opportunity Zones.
“This versatile program has the potential to stabilize and revitalize distressed neighborhoods and surrounding communities by unlocking private investment capital through a series of tax benefits,” he says.
The provision allows individual and corporate investors to defer capital gains tax until 2026 if those gains are reinvested into new construction or major rehabilitation of projects in economically depressed areas via designated opportunity funds.
“The expectation is that the added tax incentives will make investment in these disadvantaged areas just a little more enticing and add another option to the capital stack,” he says.
3. Industrial development/ecommerce is on the rise.
“The expansion of e-commerce is far from over, and the need for facilities to accommodate a denser distribution network is acute and will only increase over time,” he says.
He sees the redevelopment of infill properties becoming distribution facilities to increasingly meet market needs.
“I see investment in industrial space as a good bet for 2019 in all markets in the region. Last-Mile distribution centers will keep being built and filled as communities grow and expand and delivery time keeps shortening,” he says.