Thursday, April 2, 2015

Investors Beat Own Record for Wynwood Real Estate in Miami

, Daily Business Review

Property at 2621 NW 2nd Ave. in Wynwwod
Property at 2621 NW 2nd Ave. in Wynwwod

A New York fund that burst into Miami's Wynwood district paying previously unheard-of sums has done it again—this time shattering its own per-square-foot record set in January.

Brooklyn-based RedSky Capital LLC dropped $29.5 million to buy the Wynwood Block, a retail complex at 2621 NW Second Ave. running the length of the neighborhood's main commercial drag between 26th and 27th streets.

The purchase follows a bevy of recent deals by RedSky and London-based JZ Capital Management, which have purchased just under $100 million worth of Miami real estate in the past 10 weeks.

Ben Mandell, an associate with the Miami office of brokerage RKF, said RedSky is not done yet. The investment venture is looking to pick up "as much as they can get" in central Miami neighborhoods, particularly Wynwood and the Design District.

"They're buying for the future of the area," he said.

Mandell, Drew Schaul and John Ellis at RKF represented RedSky in the transactions.
In the latest deal, RedSky is getting a retail asset that's fully occupied and a short walk away from a 5,485-square-foot building at 2407 NW Second Ave. that the fund purchased in January for $10.5 million. That purchase set a record $770 per square foot for the area.

While the RKF brokers declined to discuss per-square-foot pricing on the new Wynwood deal, public records show Wynwood Block contains 28,754 square feet of built-out space, which would peg the latest deal at a record-smashing $1,025 per foot. The $726 price paid for each square foot of land also sets a record.

"They're buying a strategically located asset," Mandell said.

He said RedSky, which is a large property owner in the Williamsburg and Bushwick neighborhoods of Brooklyn, is hoping to somewhat recreate the experience they had investing in New York real estate, where its investments in industrial neighborhoods on the verge of gentrification have paid off handsomely.

"In Williamsburg, Brooklyn, when they bought five years ago, everyone said they were overpaying," Mandell said. "Look at them now: They're sitting pretty."

Schaul added, "If the area gets up-zoned, which we think is a high possibility, the dollars and cents make sense."

Wynwood business leaders are working with the city to change the configuration of allowable uses in what had been a predominantly low-rise industrial enclave. Where almost no buildings exceed three stories, the future could bring eight-story mid-rises with up to 150 dwelling units per acre.

Aside from the up-zoning, making the math work on pricey Wynwood acquisitions would require bringing in a new class of tenant willing to pay higher retail rents, which at the moment are flirting with $60 a square foot. Schaul said Wynwood is being looked at by "the usual suspects, the anti-mall retailers that are catering to the millennials." Mandell cited national retailers Warby Parker, Shinola and TOMS as possibilities.

The Wynwood Block deal, which closed Feb. 27 but has yet to be recorded, follows two large RedSky deals a few blocks north in the Design District. On the same day, the company bought 1 NE 40th St., a two-story, 19,436-square-foot property, for $29.25 million.

On Sunday, RedSky closed on the building next door at 35 NE 40th St., a three-story, 17,391-square-foot retail property, for $28 million. It's occupied by Oak Tavern, a 140-seat bar and restaurant with an outdoor patio.

"That assemblage gives them a large footprint, and it could shadow-anchor Dacra's boutique hotel," Mandell said. "It's a great location for what we see to be high-end contemporary retail."

Schaul noted the Design District purchases "get back to the basics of location, location, location."

Tuesday, March 31, 2015

Real Estate Notebook: Delray Beach plaza trades for $5.7 million

Saturday, March 28, 2015

Florida SBA looking for real estate, global equity portfolio managers


Florida State Board of Administration, Tallahassee, is searching for a senior portfolio manager of externally managed real estate portfolios.

In addition, the FSBA, which oversees $181.3 billion in assets, is searching for a portfolio manager of externally managed global equity.

FSBA is seeking to replace Jeff Smith, who was moved to a newly created portfolio management position, still in externally managed real estate, as a result of an increase of the real estate allocation to 10% from 7% and a more global emphasis that the FSBA adopted in 2014, John Kuczwanski, communications manager, said in an e-mail.

The senior portfolio manager’s duties include overseeing the FSBA’s externally managed real estate. The FSBA has $11.9 billion in real estate, including $5.4 billion that is externally managed.

Qualifications the FSBA is seeking include experience working with real estate commingled funds at the supervisory level. Applications for the senior portfolio manager position are due March 18.

The portfolio manager in global equity would assist in overseeing external global equity managers and would replace Dustin Heintz, who was promoted to senior portfolio manager in global equity. Mr. Heintz replaced Alison Romano, who was promoted to senior investment officer in global equity, replacing Janice Yecco, who retired last year.

The FSBA has $87.7 billion in global equities.

Applications for the portfolio manager position are due Wednesday.

Contact Barry B. Burr at

Tuesday, March 24, 2015

Real Estate Notebook: Hospitality firms combine headquarters in West Palm

Chatham Lodging Trust and Island Hospitality, two separate but associated companies, have signed a 10-year lease at the Esperante building in downtown West Palm Beach.

Friday, March 20, 2015

The Top Places in Florida to Invest in Real Estate Property

The Market Oracle
Peter Scully submits: For those who know the real estate market in Florida they will be aware that the prices vary across the state. The prices range from $37.36 per square foot in Kenneth City to $546.77 per square foot in Key Biscayne.
However, if you plan to invest and get out quickly whilst making a profit then Hialeah Gardens, Lauderdale-by-the-Sea and Atlantis are the places to choose. For those who want a strong investment with a beachfront then Miami-Fort Lauderdale is the popular choice but if you are planning on making an investment for the long run then the majority of the Florida housing market can work well.

The following locations in Florida are some of the best places in which to make investments.
This is an area that is affordable and has a low unemployment rate along with a healthy growth in population. This city between 2010 and 2013 saw more than 6000 new residents move to the area which is an increase of 14%.
Cape Coral
This is one of the largest cities with a population of 158,415 and an average sale price of $96 per square foot. Located in Lee County the residents are thinking about developments which could influence the value of real estate in this area.
Bal Harbour
Bal Harbour is a small area with a population of just 2,569 and it is an expensive place to invest with the price sitting around an average of $340 per square foot. However, there are many buyers looking for property.
Winter Garden
Located near to Orlando, it has a lot to offer those looking to invest. The population grew by 13% which suggests that the demand for housing could be high. There are jobs available which helps to keep the housing market buoyant and growing.
Over half of the properties here have experienced an increase in value. Despite this, the cost of housing still remains affordable in a city with almost 62,000 residents. During the last two years, the price of sales has an average of $79.42 per square foot.
Miami Lakes
In this area, 57% of the housing has increased in value over the last ten years whilst vacancies have decreased by 3.6%. This is something that investors should be encouraged by as this suburban location could see investors paying a premium for being located just north of Miami. The average price per square foot here sits at $152.
Hialeah Gardens
The population here is 22,136 and where buyers are looking for a quick return on their investment which is why there are many options to choose from to simple flip housing.
This community is one that is diverse and also growing and since 2010 the population has risen by 7.51%. The average sale price is $227 per square foot and there is the possibility to find properties that have views of the Atlantic Ocean.
Marianna is one of those areas that harbour some excellent bargains and here the price per foot is $61. It is however attracting new residents and has shown a 28% increase in the population during the three years from 2010 to 2013.
This is the second most expensive place in Miami-Dade County thanks to its price of $269 per square foot. There has been a small increase in the population recently of 1.54% and the leaders of the village are considering expanding the area.

Tuesday, March 17, 2015

Publix buying up property across Florida

Publix Super Markets is buying Southwest Florida shopping centers, and it's not done yet.

The state's largest grocery-store chain has been purchasing more in recent years. It has ramped up its buys over the past year, and is looking to do more — setting aside $1.3 billion this year to buy more centers, build new stores and remodel others, according to a report that appeared Monday in the Sarasota Herald-Tribune.

The cash-rich company has become a major player in shopping center acquisitions, betting on revival of the commercial real estate market here and across Florida.

"Publix is buying all the centers that it wants to buy because their cost of capital is cheaper than the landlord's cost of capital, which makes their cost of occupancy less than market rent," Gary Tasman of Cushman & Wakefield Commercial Property Southwest Florida said last month.

Publix recently bought The Shops at Verandah on Palm Beach Boulevard in Fort Myers for $14.4 million.

Publix's acquisitions in recent years, according to Lee County Clerk of the Court records, include centers at 3015 SW Pine Island Road for $10,150,000 in December, and $13 million for The Shoppes at Fiddlesticks off Daniels Parkway in November 2012.

The recent purchases are a sign Publix is making a bet on the future strength of the real estate market here, Tasman said.

In the past year, the Lakeland-based grocer also acquired centers where it operates stores in Port Charlotte, Sarasota, Englewood, Parrish and Lakewood Ranch.

Publix now operates 1,098 stores, and about 20 percent sit in company-owned real estate, spokesman Brian West said.

"We're very fortunate to be in good financial health — no long-term debt and significant cash reserves, enough to allow us to invest in real estate when the situation makes sense," West said.

The company has owned centers where it operates stores for years, but it became a more aggressive buyer the past two years.

The privately owned company is coming off a great financial performance in 2014, one analysts said was especially impressive in light of competition from expanding rivals such as Trader Joe's, Whole Foods and Wal-Mart.

Publix had $30.6 billion in sales last year, a 5.7 percent increase from 2013.

The Sarasota Herald-Tribune and The Associated Press contributed to this report.

Friday, March 13, 2015

South Florida again near top in home price increases