Miami now ranks as 12th top city for super-rich: Knight Frank

The downtown Miami skyline (Credit: Lonny Paul)
Miami hasn’t lost all its allure among the super-rich. It has resurfaced in the No. 12 slot, Knight Frank told The Real Deal on Tuesday.
After ranking as the sixth most important city for the ultra-wealthy in 2015, Miami had fallen off the list of the top 10 cities in the latest Knight Frank Wealth Report released in London last week. Only the top 10 were included in the report.
But Liam Bailey, global head of research for Knight Frank, asked his researchers to look further, and told TRD that they found that Tokyo comes in at No. 11 and Miami at No. 12 in 2016.
Wealth Report panel
Miami’s fall is the result of weakened currencies in Latin American countries, he said. “The critical issue is currency and the demand from Latin America,” he sad. “I suspect it is a blip.”
He added via email: “Bear in mind [that] at [No.] 12 Miami comes out second in the U.S.”
Last year, Miami followed London, New York, Singapore and Shanghai in Knight Frank’s Global Survey, which looks at the most important cities globally in terms of where the world’s wealthy live, invest, educate their children, grown their businesses and spend their leisure time. Paris, Dubai, Beijing and Zurich followed Miami. Knight Frank defines the ultra high net worth individuals as those with more than $30 million.
This year, London again tops the list for the ultra-wealthy, followed by New York, Singapore, Hong Kong, Dubai, Shanghai, Paris, Sydney, Beijing and Geneva.
Knight Frank and Douglas Elliman presented the latest Wealth Report at 1 Hotel & Homes on Tuesday morning. The Miami event followed similar presentations in New York and London last week. In all, Knight Frank will be hosting events in 36 cities this year, up from 22 last year.
Real estate is the “most comfortable asset class,” for investing, Douglas Elliman Chairman Howard Lorber, told audience member during a panel discussion. Terra Group President David Martin, also a panelist, cited Miami Beach and Coconut Grove as among the top neighborhood markets in the Miami area for investors.
The FinCEN rule that requires title insurance companies to disclose the names of foreign buyers who pay $1 million and up for homes in Miami-Dade County, which went into effect on March 1, has not had any effect on the market, Lorber said during the panel. “It’s been a big nothing…. I think the whole thing is nonsensical.”

Source: The Real Deal Miami

New Yorkers have spent $586M in one square mile of downtown Miami

New York buyers are in blue and all other investment is in red.
New York City’s sixth borough is earning its nickname.
New Yorkers have spent a combined $586.5 million in property concentrated in one square mile of downtown Miami, commercial broker Mika Mattingly told The Real Deal. Mattingly’s team looked at property sales between the Miami River to Northeast Sixth Street and east of I-95 to Biscayne Bay from the past two years.
In total, New York buyers acquired 1.28 million square feet of buildings and 1.1 million square feet of land. In dollar amounts, they represent about 56 percent of investment in that area. The remaining 44 percent of buyers spent more than $460 million on 1.3 million square feet of buildings and 563,000 square feet of land.
The area is in the beginning stages of a renaissance. A $13 million improvement plan for Flagler Street is underway, which will include expanded sidewalks, more trees, new benches and bicycle racks. The beautification project broke ground earlier this year and has installed drainage structures and pedestrian signage, according to a weekly update released on Monday.
Moishe Mana represented roughly 30 percent, or about $170 million, of the New York investment, according to a list of sales provided to TRD. Mana, of New York and New Jersey, has been in Miami since 2010 assembling property in Wynwood and in downtown Miami. He has spent more than $200 million on properties in downtown Miami as a whole with plans for retail and residential redevelopments, according to county records and TRD archives.
The map also includes properties purchased by New York-based Edens Investment Trust, Ashkenazy, Brickman and KAR Properties. Last week, Brickman closed on the Courthouse Tower at 44 West Flagler Street for $27.5 million.

Source: The Real Deal Miami

San Juan hotel in South Beach gets facelift from Stantec

The San Juan Hotel and its new renovations
Architecture firm Stantec has put the finishing touches on its redesign of the historic San Juan hotel in South Beach, re-envisioning the property’s original postwar style.
The 76-room hotel was first designed in 1948 by noted Miami Beach architect Henry Hohauser, whose preference for Art Deco style influenced a number of pre-war buildings like the Essex House Hotel and the Collins Park Hotel, which is now being redeveloped by New York’s Chetrit Group.
Located at 1680 Collins Avenue, it’s been owned for the last 23 years by the Gilani family’s hospitality business, Gilani Enterprises.
As first reported by Curbed Miami, the family recently hired Stantec to touch up the hotel’s aging interiors and public spaces.
The architecture company took the hotel’s original post-war design, complete with nautical touches that pay homage to its namesake city in Puerto Rico, and ran with it, according to a release.
That included placing little touches like warm wood, vintage brass and rope, all of which are meant to make the guest rooms feel like cabins in a sailboat.
At the lobby’s focal point is a wet bar with 100 brass lights hanging from the ceiling by slivers of wire. Outside, the pool and patio spaces were given new palm trees, a new zen garden and daybeds.

Source: The Real Deal Miami

YoungArts Miami

Miami’s most promising artists, the YoungArts winners in Voice, Dance, Music, and Theater, perform at the Colony Theatre on March 11 and 12 in Miami Beach. Tickets are still available fo…
Source: Ocean Drive

The Wrap: Wealthy buyers fueling record mansion prices in Delray Beach, Canadian company proposes multifamily project in Boca Raton…and more

An aerial view of Delray Beach (Credit: WPPilot)
1. Wealthy buyers fueling record mansion prices in Delray Beach [Palm Beach Post]
2. Canadian company proposes multifamily project in Boca Raton [SFBJ]
3. Ms. Cheezious opening Coral Gables location [Miami New Times]
4. Greater Miami Chamber CEO Barry Johnson announces retirement [Miami Herald]
— Sean Stewart-Muniz

Source: The Real Deal Miami

The week in luxury: A map of Miami-Dade’s priciest condo sales

Miami-Dade County saw a condo market boost at the end of February, with more than $70 million worth of closings recorded last week and a handful of multimillion-dollar sales.
The week’s most expensive deal was the $5.5 million purchase of unit 1405 at the newly built Edition Residences in Miami Beach. Toni Schrager of Avatar Real Estate Services had this listing, which spent just under a year on the market before closing at $2,425 per square foot. The penthouse was owned by an entity linked to Fairholme Capital Management’s Bruce Berkowitz. It features stylish bleached teak-wood floors, floor-to-ceiling windows and modern kitchen. One interesting note: the unit had a tenant paying $30,000 a month for one year, though a 10-day “kickout clause” was made in case the new owner wanted unit 1405 all to himself.
Next on the list was unit 804 at the Continuum South Tower in South Beach. The two-bedroom, two-bathroom unit boasts a large kitchen, tile floors and ocean views. Billy Hernandez of Brown Harris Stevens | Zilbert had it on the market for 90 days before it closed at $4.6 million or $2,006 per square foot.
And the week’s third priciest sale was unit 600 at Terra Group’s newly completed Glass condo tower in South Beach. It was one of the units to be immediately listed for resale with an asking price of $4.9 million after the original buyer closed the contract. After spending 187 days on the market, Eloy Carmenate of Douglas Elliman has sealed the deal for $2,360 per square foot — a $325,000 discount from the asking price. The residence features a Calcutta marble kitchen, oak wood floors and “white glove concierge service.”
After those top three sales, Miami-Dade’s top 10 most expensive deals ranged in price from $3.75 million to $930,000.
The county as a whole saw 202 sales last week for $72.2 million. That’s a significant improvement over the 85 closings from the previous week, which only brought in $29 million. Average prices were $357,382 per unit and $253 per square foot.
Here’s a breakdown of the data for the week of February 28 to March 5. Click on the map for more information:
Most expensive
Edition Residences, Miami Beach | 346 days on market | $5.5M | $1,499 psf | Toni Schrager of Avatar Real Estate Services
Least expensive 
The Carriage Club South, Miami Beach | 139 days on market | $930,000 | $511 psf | Gina Arellano of Esslinger Wooten Maxwell
Most days on market
Grovenor House, Coconut Grove | 374 days on market | $1.67M | $951 psf | Anastasio Lorente of Great Properties International
Least days on market
Beacon Harbor, Coconut Grove | 69 days on market | $3.75M | $983 psf | Olimpia Zanardi of Trump International Realty

Source: The Real Deal Miami

KBS seals Israeli bond offering at $249M

From left: 110 William Street, Peter Bren and 424 Bedford Avenue
From the New York website: KBS Strategic Opportunity REIT closed its Israeli bond offering Monday after issuing nearly $33 million in debt through a public tender, bringing the first bond issuance by a U.S.-based REIT in Israel to roughly $249 million, sources said.
KBS secured 127.7 million shekels, or more than $32.6 million, through the second phase of its bond offering – a public tender open to a wide array of Israeli investors.
The public tender follows last week’s institutional tender, open only to qualified Israeli investment funds and financial institutions, that saw the REIT raise more than 842 million shekels, or nearly $216 million.
The public, non-traded REIT’s total issuance now stands at nearly $249 million, secured at an interest rate of 4.25 percent, according to sources with knowledge of the matter. This makes KBS the latest American real estate firm to capitalize on affordable Israeli debt deals available through public bond offerings on the Tel Aviv Stock Exchange, as well as the first U.S. REIT to do so.
While KBS – managed by Newport Beach, Calif.-based real estate investment firm KBS Capital Advisors – could have raised up to 1 billion shekels, or $256 million, sources close to the company described the issuance as a “huge success.”
The REIT is understood to have initially targeted a total raise of 600 million shekels, or just over $153 million, but saw the institutional phase of its offering receive more than $300 million in demand from institutional investors, as The Real Deal reported last week.
In addition to being one of the larger bond offerings by a U.S. company in Israel – the record is currently held by the Moinian Group, which closed on a $361 million issuance last May – the deal is also notable for the 4.25 percent interest rate on the debt issued by KBS.
For comparison, Moinian’s 4.2 percent interest rate on its $361 million offering was one of the lowest ever secured by a U.S. company in Israel, with only Joel Wiener’s Pinnacle Group raising debt at a lower cost.
KBS, whose assets include a 32-story, 928,000-square-foot office building at 110 William Street in the Financial District, is expected to use the proceeds from the deal to continue exercising its strategy of buying commercial assets and stabilizing them through increased leasing and occupancy.
The REIT was advised on its offering by Gal Amit and Rafael Lipa of Victory Consulting Group. Israeli financial services firms Poalim IBI and Leumi Partners were the underwriters on the issuance.

Source: The Real Deal Miami

Sneak peek: New renderings of Aurora in Sunny Isles Beach

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Verzasca has released new renderings of its Sunny Isles Beach condominium, Aurora.
Bay Harbor Islands-based Verzasca launched sales for the 61-unit mixed-use tower in the fall and has reached the 30 percent sales mark, managing director Tim Lobanov told The Real Deal. About 70 percent of those buyers are from Latin America with Argentinian buyers leading sales. In the United States, a majority come from New York and Maine.
Units start in the low $800,000s and go up to about $1.5 million for the southeast line, Lobanov said. Verzasca International Realty, led by John Warsing, is handling sales and marketing. Buyers at Aurora will receive a one-year membership with JetSmarter, a private jet charter. Amenities will include an indoor and outdoor yoga lounge, a pool deck, pet area, children’s playground and play room.
Verzasca plans to break ground on the 17-story building during the first quarter of 2017 with an estimated completion date of 2019. Lobanov said the sales center, built out in the former Denny’s building, will open in April complete with a model kitchen and bathroom, conference space, scale model and kids play area.
The developer downsized the condo design, which received approvals in July, by reducing the height of the building and the number of units. Verzasca cut the number of residential units to 61 from 77 and the height of the building, including mechanical fixtures, to 204 feet from 210 feet. Aurora is being designed by architect Luis Revuelta of Revuelta Architecture International.

Source: The Real Deal Miami

New York firm proposes twin towers on downtown Miami site

Renderings of the 54 West Flagler project
A New York firm has just put forward plans to build two 43-story residential towers on a downtown Miami parking lot owned by Russell Galbut and Andrew Resnick.
As first reported by the Next Miami, the proposal includes two residential towers with ground-floor retail space. They would house 391 units and a robotic parking garage with 185 spaces, all of which would be built on the 18,000-square-foot parking lot at 54 West Flagler Street.
Alliance Private Capital Group, a Brooklyn-based real estate company headed by Mike Kohn, is listed as the developer.
The commercial real estate advisory firm is not a traditional developer, instead acting as an “intermediary,” according to its website. One of its more recent deals in New York, for instance, was the purchase and $70 million resale of a property after filing development plans.
The downtown Miami land in question is owned by a limited liability company called Gutierrez Resnick Properties. State records show the company is managed by developer Russell Galbut, who is currently heavily involved in developing projects on Miami Beach’s Alton Road, and real estate mogul Andrew Resnick.
Gutierrez Resnick Properties paid $5.5 million for the land in 2007. At the time, the company also listed Armando Gutierrez Jr. as a managing member, records show.
Gutierrez is a real estate developer and the son of prominent South Florida political figure Armando Gutierrez Sr. His father took his place in Gutierrez Resnick Properties in 2010, and both were later removed from the corporation’s record in 2011. Resnick added Galbut, who heads development firm Crescent Heights, as a manager that same year. [The Next Miami] — Sean Stewart-Muniz

Source: The Real Deal Miami

Blackstone’s Jonathan Gray bearish on CRE

Jonathan Gray of Blackstone
From the New York website: Jonathan Gray, the Blackstone Group’s head of real estate, recently joined the chorus of investors and analysts warning of an impending slowdown in the commercial property market.
While the national multifamily market remains strong, global volatility is slowing down financing through commercial mortgage-backed securities (CMBS) and reducing rates of return on commercial real estate, Gray said at the University of Texas Investment Management Company in Austin on Friday.
“Rates of return are definitely coming down,” he said, according to Bloomberg, because the property cycle is “much more mature.”
Persistently-low oil prices and economic volatility in China, Russia and Latin America have led to a slowdown in the creation of commercial mortgage-backed securities, as The Real Deal recently reported.
“It’s very difficult” to do securitizations today, Gray said, according to Bloomberg.
Blackstone’s massive rental portfolio, on the other hand, is doing fine, Gray said. The company’s Invitation Homes unit, which owns 50,000 single-family rental homes in the U.S., has seen 97 percent occupancy and rent gains of 5 percent per year.
The Real Deal profiled Jonathan Gray and Blackstone’s real estate business in depth back in August. [Bloomberg] – Ariel Stulberg

Source: The Real Deal Miami