Biscayne Shores Hidden Gem!

DEVELOPERS AND DREAMERS EYE DOWNTOWN’S WATERFRONT...

T Miami Wave’s 550-foot-tall observation wheel would go “hand-in-hand with how Miami has evolved...waves of immigrants developing this great international destination.” MiamiEye Development Group he Cuban Exile History Museum, proposed for public waterfront land behind American Airlines Arena, is in limbo. After four years of negotiations, county commission chairman Esteban Bovo is questioning the wisdom of allowing a non-profit organization to build a museum on taxpayer-owned land that was long promised as a park. That’s a big deal because Bovo is the one who has been championing a 55-year lease with Cuban Exile History Museum Inc. that would allow the group to build an $80 million, 80,000-square-foot museum and plaza, funded with donations, on three acres of land the county calls Parcel B, all in exchange for $1 a year. So instead of discussing the museum lease on June 19, as originally scheduled, the county commission deferred it “to a date uncertain.” Nicolas Gutierrez, the group’s secretary, acknowledged that his fellow board members are, reluctantly, considering other locations. Yet while one project slated for public land may be in trouble, another is waiting in the wings -- and it might have some support from at least one county commissioner. Oh, and it features a giant wheel. Haskel Mayer, founder of Mayer Structural Design in Miami Beach, wants to build Miami Wave, a wave-shaped complex that would include a 550-foot-tall observation wheel, a hotel, and perhaps space for two museums, dedicated to Cuban and African-American history. And Meyer is looking to build it above the FEC boat slip, a watery nine acres located between the AmericanAirlines Arena and Museum Park, although he is very flexible. The project, he says, can be built anywhere on the waterfront, anywhere on the planet. “This is a work in progress,” Mayer says. “We’re looking at a number of cities throughout the world. But I’ve lived here for most of my life, and we’d like to see it built here.” The FEC slip, however, is owned by the City of Miami, which means that Mayer would have to make a deal with officials. So far he has only approached county officials. “Like I said, this is a very preliminary idea that was floated out there,” he says. “We believe that it would be a natural fit for [the FEC slip], but we would let the powers that be, be the judge of that.” The ambitious Miami Wave project could include a hotel and perhaps two museums -- for Cuban and African-American history. The Miami Wave (presumably it would be called something else if it’s constructed in, say, San Diego), has nothing to do with Skyrise Miami, a 1000-foot-tall observation tower expected to be built by developer Jeffrey Berkowitz on a 1.9-acre Miamarina surface parking lot within easy walking distance of the FEC slip. Nor does the Miami Wave have anything to do with the Miami Wheel, a 650-foot-tall Ferris wheel with retail on the ground and a bar and restaurant 250 feet in the air. Rigoberto Valdes, whom the BT couldn’t reach by deadline, had proposed to build this project on the FEC slip in 2014. The Miami Wave, Mayer insists, is not a Ferris wheel. “George Ferris designed his wheel many years ago,” he says. Miami Wave would be based on his patented designs, and its wave design “goes hand-in-hand with how Miami has evolved [with] waves of immigrants developing this great international destination. We feel we have a project that would complement that.” Mayer says Miami Wave would cost around $400 million to build and would be funded by private investors affiliated with MiamiEye Development LLC. Although Mayer declined to name these investors, Sunbiz.org lists MiamiEye’s directors as Mayer and architect Cyril Silberman, founder of Uni-Systems, an architecture and engineering firm with offices in Miami Beach and Minneapolis. Mayer did not say what rent, if any, he was willing to pay the City of Miami for Miami Wave to occupy public property. Roosevelt Bradley, Miami Wave’s lobbyist, claims the observation-wheel complex could bring more people to Museum Park, home to the Pérez Art Museum Miami and the Frost Museum of Science, as well as to Parcel B. Plus, he notes, it could ensure that Cuban and African-American museums would have plenty of visitors. “We’re looking at how we can get all the museums together,” says Bradley, who is the former director of Miami-Dade Transit. In July 2014, the Miami-Dade County Commission, by a vote of 8-4, directed Mayor Carlos Gimenez’s administration to negotiate a long-term lease with Cuban Exile History Museum Inc. on Parcel B. Commissioner Dennis Moss supported the resolution in exchange for his colleague’s support for an African-American history museum, preferably on the waterfront and partially funded with taxpayer money. The vote was controversial, considering that county officials had promised to turn Parcel B into a public park in exchange for voter support in 1996 for the construction of a sports stadium for the Miami Heat (AmericanAirlines Arena) on public land (see “Political Intrigue and Parcel B,” March 2018). The view from Jeffrey Berkowitz’s 1000-foot-tall Skyrise Miami, with the FEC boat slip visible just north of the AAA. As negotiations dragged on between the museum group and the mayor’s office, demands grew louder for Parcel B to become a park. Commissioner Audrey Edmonson, a downtown Miami resident whose district includes Parcel B, became the strongest voice on the commission against building a museum behind the arena. Commission chairman Esteban Bovo, whose father was a Bay of Pigs veteran, remained the project’s advocate. Then in March of this year, a compromise was reached between Bovo, Moss, and Edmonson: a Cuban Exile History Museum and an African-American History Museum would be built on two of the twenty acres of open space in Museum Park. All that was needed was support from the City of Miami, which controls the park. That didn’t happen. Bovo reported during a special “sunshine meeting” with Edmonson and Moss last month that City of Miami Mayor Francis Suarez was opposed to more buildings in Museum Park. William “Bill” Muir, a Bay of Pigs veteran who is president of Cuban Exile History Museum Inc., says he met with Miami City Commissioner Joe Carollo at Museum Park. Carollo is also the chairman of the Bayfront Park Management Trust, a city board that oversees Bayfront Park, the FEC boat slip, and Museum Park. “We looked at where it would be possible to do something,” Muir says. “We had one or two text messages back and forth, and that was it.” Carollo says he stopped meeting with Muir because he just didn’t think his group would be able to raise the money needed to build a museum. “They don’t have any money in the bank,” Carollo says. “Neither the Cuban Exile History Museum nor the African-American Museum, in my mind, will ever be a reality. The only way is if [taxpayers] put some money into it like they did with the Frost Museum and the Pérez Museum.” During the June 12 sunshine meeting, Edmonson remained resolute against any museums being built on Parcel B. “My concern is that no one really cares about my constituents,” she said to Bovo and Moss. “Everybody wants to do what they want. I’ve never gone into your districts and done anything, yet you all come into mine.” Bovo’s district includes Hialeah and Miami Lakes. Moss’s district includes Florida City and Homestead. Edmonson’s strenuous objections were enough to give Bovo second thoughts. “I just want to say that I have been agonizing about this,” Bovo said at the meeting. “Agonizing because you [Edmonson] are fulfilling your fiduciary responsibility to the residents of your district.” Bovo later told the Miami Herald that he wasn’t sure “if there’s an appetite to move forward on this.” Moss’s appetite, though, was just fine. He mentioned that there was a group wanting to build an attraction with a “Ferris wheel” and a hotel that was willing to include space for the African-American and Cuban exile history museums. “This development interest could come in and build out the wheel and hotel, and said they will build out the museum,” Moss said at the sunshine meeting. Moss also brought up the possibility of the county doing a “land swap” with the City of Miami that could allow Parcel B to become an official park and enable the attraction with the museums to be built in Museum Park. “You would have there 24/7 museums on the park. You will have a customer base right there!” Moss declared. The Miami Wave would rise up from the FEC boat slip, shown here at bottom, and echo the shape of American Airlines Arena. Edmonson wasn’t opposed to the idea. “That’s why I was pushing that to be on Museum Park!” she exclaimed. “The museums are already there!” She added that in exchange for allowing two additional museums to be built in Museum Park, she would support the elimination of an old agreement between the City of Miami and the county requiring the Omni Community Redevelopment Agency to make $2 million annual payments over the next 15 years for the maintenance of Museum Park. But that idea didn’t sit well with Andres Althabe, president of the Biscayne Neighborhood Association. Althabe said that downtown residents don’t want more structures to be built on either Parcel B or Museum Park. “We all agree that we don’t want more buildings in our parks,” he said. “That’s the bottom line.” As for the FEC slip, which has been used to dock boats since the late 1890s, the Miami Wave concept may soon have some competition. At the end of July, the Bayfront Park Management Trust will discuss a request for proposals for businesses interested in leasing the boat slip for marine purposes, as a means of raising revenue. Bob Weinreb, a consultant on waterfront issues for Miami’s city manager, insists that filling in the FEC slip for development isn’t contemplated, although he admits that developers, entrepreneurs, and even county officials keep coming up with proposals. Past ideas included filling the FEC boat slip for a David Beckham soccer stadium, covering the FEC slip with a two-level floating parking garage, or docking an aircraft carrier within the boat slip. “They tried all kinds of things there,” Weinreb says, “and nothing has stuck.” Nicolas Gutierrez of Cuban Exile History Museum says his group has talked with Mayer and Roosevelt about placing their museum within the proposed Miami Wave complex. Gutierrez admits he’s skeptical. “We don’t know enough about them to be on board,” he tells the BT. “Anybody has an idea, we’ll listen, especially if we’re asked to do so by the county commission.”

 

Biscayne Shores Hidden Gem!

Biscayne Shores Hidden Gem!

Biscayne Shores Hidden Gem!

South Florida Luxury Condo sales up, home sales rise despite low inventory...

The luxury condo market, a recent sore spot in South Florida due to over development in places like Miami Beach and the Miami mainland, saw strong sales activity and price increases.
Luxury condo inventory in Miami Beach and the barrier islands fell 20% from a year ago. It’s a positive sign that new development, which wound down in 2016 amid tough market conditions, will likely pick up again soon.

The median sales price for a luxury condo in Miami Beach soared to $3.37 million in the second quarter, up 47.6% from $2.28 million last year. Luxury single-family homes on Miami Beach hit $10.76 million in the second quarter, up 34% from $8 million last year.
In mainland Miami, the median price for luxury condos rose 6% year-over-year to nearly $815,000.
Fort Lauderdale’s luxury condo market is moving twice as fast as it was a year ago. And high-end condo markets heated up in Delray and in Palm Beach, which by the end of June had only six months of condo inventory, according to the report.

The strength in areas north of Miami underscores a shift in buying patterns. The historical focus of the second home buyer was Miami, Miami Beach. While that market hasn’t experienced any pain as a result of the shift to the north, buyers from other markets are recognizing the value opportunities in Broward County and elsewhere in South Florida.

South Florida logged robust home sales, especially among luxury condos, in the second quarter of 2018, according to reports Thursday from Douglas Elliman.

Palm Beach saw the greatest number of sales in a single quarter in three years, with 160 homes changing hands on the exclusive island north of Miami. Luxury condo sales in Miami Beach and the barrier islands increased more than 13% compared to this time last year, while luxury condo sales and prices soared in Fort Lauderdale, according to market reports prepared for the brokerage by appraisal firm Miller Samuel.

We’re seeing overall and consistently strong gains in each of our markets. Some of the boost in South Florida are snowbirds leaving high-tax states like New York and Connecticut for good in response to the federal tax overhaul that Congress passed in December.

By the end of June, Miami Beach had 31 months’ worth of luxury condos on the market, down from 44 months a year ago. "The pace of the market feels faster, it’s not fast but it’s faster.  The second quarter also marked a jump in the size of units trading hands a sign that big spenders are back in play and looking for more lavish homes.

BRICKELL CITY CENTRE SEEKS 2M-SQUARE-FOOT EXPANSION

Brickell City Centre has submitted an expansion to build on two additional city blocks.

The proposal would amend the Special Area Plan regulating the development, and increase the SAP area from 11.4 acres to 13.9 acres.

In total, four more towers are now planned at Brickell City Centre, including One Brickell City Centre, North Block, the Tobacco Road site, and Associated Photo property.

The plans have just been recently submitted to the city, have not yet been reviewed, and are subject to change. As of now, the two new towers include:

650 SMA (Tobacco Road site):

• 54 story tower, with 10-story podium
• 588 residential units (of which 42 will be under 750 square feet)
• 89,130 square feet of retail/commercial
• 839 parking spaces
• 1.66 acre project site

Associated Photo:

• 62 story tower, with 12-story podium
• 384 residential units (of which 144 will be under 750 square feet)
• 3,200 square feet of commercial/retail
• 363 parking spaces
• .73 acre project site

Parking will be in garages above ground. Most of the existing parking at Brickell City Centre is below ground, and One Brickell City Centre and the North Block are planned to have below grade parking.

Arquitectonica is the project architect.

Florida was the top state where outside investors purchased and sold commercial property...

Foreign Investment in U.S. Commercial Real Estate Remains Strong, China and Mexico Top Investors

Florida was the top state where outside investors purchased and sold commercial property last year; California was third

WASHINGTON — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.

NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.

“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.

“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.

Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.

Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.

Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.

The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).

Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.

International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.

“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.

The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.

For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).

NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.

Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.

The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Tags: Real Estate