Palm Beach County and Fort Lauderdale among nation’s top single-family markets: report

Palm Beach County from the sky
Fort Lauderdale and Palm Beach County ranked among the nation’s five hottest single-family markets, according to a new report released Thursday by Ten-X.
Fort Lauderdale dropped from second to fifth place this year in Ten-X’s Top Single-Family Housing Markets Report for Spring 2016. Palm Beach County rose a few spots to land at No. 4. Seattle and Portland remained in first and second place, respectively, and Nashville was No. 3.
Other Florida cities also register spots on the list: Orlando at sixth place; Tampa at 11th; Miami at No. 19 and Jacksonville at No. 31.
Ten-X ranked the top 50 markets across the United States based on a combination of factors, including rising home prices, home appreciation, affordability and economic and demographic conditions.
According to the report, Palm Beach County experienced a 14.1 percent growth in home prices year-over-year, while Fort Lauderdale saw home prices rise by 8 percent. Home sales were up 2 percent and 1.7 percent in Palm Beach County and Fort Lauderdale, respectively, Ten-X found.
While both South Florida markets have bounced back from the economic downturn of a few years ago, home prices remain far below their peak levels, suggesting room for continued growth, the report said. At a median sales price of $247,000, Palm Beach County is still 18 percent below its peak. At $227,000, Fort Lauderdale prices are still 22 percent below their prior peak, according to the report.
“Palm Beach County and Fort Lauderdale embody the ongoing recovery effort seen in many Florida markets, leaving ample opportunity for future growth as housing fundamentals remain below pre-recession levels,” the report said.

Source: The Real Deal Miami

Michael Capponi & Dilay Bayraktar Host Benefit for Global Empowerment Mission at Island Gardens

Michael Capponi and Dilay Bayraktar will celebrate their birthdays by hosting an evening to benefit the Global Empowerment Mission at Island Gardens. The event will be co-hosted by Ivana Trump…
Source: Ocean Drive

The Wrap: Midtown Walmart opponents aren’t giving up, Dolphins Stadium renovation might be over budget…and more

Rendering of Midtown Miami Wal-Mart
1. Midtown Walmart opponents aren’t giving up [Miami New Times]
2. Dolphins Stadium renovation might be over budget [The Next Miami]
3. Ritz-Carlton Bal Harbour to cut 89 jobs [SFBJ]
4. More older Americans becoming renters [Sun Sentinel]
— Sean Stewart-Muniz

Source: The Real Deal Miami

Loonie diving against the dollar? Sabbia Beach aims to have a fix for that

Rendering of Sabbia Beach and Danny Salvatore
The developers of Sabbia Beach, a planned condominium tower in Pompano Beach, are trying to lure Canadian buyers who may be spooked by the idea of plunking down high-priced U.S. dollars for a deposit, The Real Deal has learned.
Through a deal with Bank of Nova Scotia, Canadians can borrow the U.S. dollars necessary for a preconstruction condo deposit — by placing the equivalent amount in Canadian dollars on deposit as collateral with the bank, Danny Salvatore, president of Fernbrook Florida and chairman of Fernbrook Homes told TRD. The buyers would pay 1.75 percent interest annually, while earning a small return on their money — 1.5 percent, for example, if the funds are invested in the Canadian government’s Guaranteed Income Certificates, he said. They can then wait to pay off the loan when the Canadian dollar strengthens again or reaches par with the U.S. dollar.
Sabbia Beach, an 18-story, 68-unit tower at 730 Ocean Boulevard, is being developed by Fernbrook Homes, based in Ontario, Canada, and Grupo Fernandez, based in Venezuela. The project, Fernwood Homes’ first in Florida, launched sales last year. To date, 39 units or 57 percent of the units are under contract, Salvatore said. Of those sold, 50 percent are to domestic buyers, 45 percent are to Canadians  — mainly from Ontario and Quebec — and 5 percent are from Venezuela, he said.
“We Canadians, we are snowbirds and we like Florida because of its proximity and because of the amenities that are here,” he said.
Sabbia Beach’s condos are priced from $1 million to $5.3 million. The units range in size from 1,850 square feet to 4,900 square feet, or an average of $685 per square foot. “The biggest lure is we are on a wide pristine beach, so it’s for that buyer that wants to be in a boutique condominium right on the sand,” Salvatore said.
Instead of the typical 50 percent deposit required by the vast majority of South Florida preconstruction condos, Sabbia Beach requires a 20 percent deposit initially, then another 15 percent at groundbreaking, then the rest at closing. Sabbia Beach is expected to break ground next month and be completed in the first quarter of 2018, Salvatore said.
“So the purchaser can borrow 20 percent, as long as they collateralize it with the equivalent in the Canadian bank,” he said. “Then when the dollar goes back, or whenever they want, they can pay it off.”
One U.S. dollar is currently trading for $1.31 Canadian dollars. So if a Canadian buyer chooses a $1 million condo and has to pay a $200,000 deposit, the bank will lend the purchaser the $200,000, and they would have to put down $262,000 in Canadian dollars as collateral.
Salvatore said two Canadian buyers have already taken Sabbia Beach up on its offer. “Our problem is making people understand it,” he said.
It’s not the first project that is trying to lure Canadians who may be scared off by the strong dollar. Last week, Ritz-Carlton Residence, Miami Beach held and event in Toronto, offering four units priced in Canadian — rather than U.S. — dollars for one night. A spokesperson for developer Lionheart Capital told TRD Wednesday that 20 people expressed interest in the units, and four of them are flying to Miami Beach in the next two weeks to view the development.

Source: The Real Deal Miami

Feds set to implement new shell company regulations: report

(Illustration: Chris Manfre)
From the New York website: The federal government’s war against shell companies frequently used in real estate acquisitions is extending to the banks. New regulations that will require financial institutions to identify the individuals behind such entities are reportedly close to being implemented.
While current federal regulations require banks in the U.S. to “know their customers,” financial institutions weren’t previously required to identify the individuals who set up accounts in the name of shell companies, according to the New York Times.
Shell companies have faced heightened scrutiny in recent years, especially related to their role in real estate transactions that critics claim can be used to disguise money-laundering activities.
The proposed customer due diligence rule, or CDD, seeks to limit such activities, Treasury Department officials told the Times. It will require banks to identify individuals who own 25 percent or more of corporate entities that open bank accounts, and any individuals who control those entities.
New York City’s Department of Finance proposed similar regulations last year in relation to LLCs used to buy real estate in the city, and the Treasury Department announced earlier this year it would roll out a pilot program in Manhattan and Miami-Dade County requiring the hidden buyers of high-priced properties to disclose their identities.
News of the banking regulation arrives in the wake of this week’s unprecedented leak of millions of documents from Panamanian law firm Mossack Fonseca, one of the largest incorporators of shell companies in the world. The leak, known as the Panama Papers, detailed how the global elite make use of shadowy offshore shell companies and tax havens. They also showed that the shell companies do business with major international banks such as UBS, Credit Suisse and HSBC, which have major operations in the U.S.
The Real Deal recently identified several New York real estate players with ties to offshore entities, including Witkoff, Stonehenge Partners and the Nakash family. [NYT] – Rey Mashayekhi

Source: The Real Deal Miami

Billionaire Lindemann takes out $19M loan on Palm Beach estate

1565 North Ocean Way in Palm Beach
Billionaire and pipeline CEO George Lindemann and his wife Frayda closed on a $19.1 million mortgage for their Palm Beach estate. 
County records show the Lindemanns took the loan out, due in April 2019, for the beachfront property at 1565 North Ocean Way, a 7,657-square-foot home with four bedrooms. Bank of America is the lender.
As of last year, Forbes reports that George Lindemann is worth $3.8 billion. He’s founder and CEO of Southern Union, a natural gas pipeline company, and also owns 19 Spanish-language radio stations. Frayda Lindemann is vice president of the Metropolitan Opera board. Property records show they paid $23.5 million for the 3.4-acre estate in 2008. It includes a pool, fountain, patio and tennis courts, as well as beach access.
The 1937-home also belonged to developer Pat Carney, who paid $15 million for it in 2006 only to flip it two years later for a $8.5 million more.
The Lindemanns’ immediate neighbors include insurance executive Arthur L. Williams Jr. and Kenneth Tropin, an investment manager.

Source: The Real Deal Miami

Palm Beach socialite sells waterfront home: $10M

561 Island Drive
Ruby Rinker, a Palm Beach socialite and heiress to a successful concrete business, just sold her waterfront home on Everglades Island for $10 million.
The 5,325-square-foot home is located on just under half an acre of land facing the Intracoastal Waterway at 561 Island Drive. It was built in 1955 by Ruby’s late husband, Marshall Rinker, who built an empire out of his Rinker Materials Corp. before passing away in 1996.
County records show a limited liability company named after the home’s address bought the property this week. It’s managed by Charles J. Schneider, with an address that leads back to the offices of attorney Guy Rabideau.
The two-story home has four bedrooms, five bedrooms, a fireplace and a two-car garage. After owning the home for more than half a century, the Rinker family has sold it for nearly $1,878 per square foot.
According to the Palm Beach Daily News, the new owner plans to raze the home in favor of a new custom residence instead of a spec home. Brandon Rinker of Rinker Realty represented his grandmother for the sale, while Jim McCann of the Corcoran Group represented the buyer.
Palm Beach County, especially its wealthy waterfront enclaves, have seen a spate of residential redevelopments in recent years as aging homes are bought up and razed in favor of contemporary mansions. The transactions typically fetch high price tags, like the $18 million purchase of just under an acre on Everglades Island in February.

Source: The Real Deal Miami

One Thousand Museum pays tribute to Zaha Hadid: VIDEO

Video taken by Catapult 13 Creative Studios, edited by TRD’s Alistair Gardiner
A whistle blew at 8:08 a.m. on Wednesday, halting construction at Zaha Hadid’s One Thousand Museum.
Construction workers, developers and fans of Hadid gathered for a minute of silence to honor the starchitect, who was the first female architect to win the Pritzker Prize. Hadid died on Thursday in Miami Beach of a sudden heart attack while being treated for bronchitis. She was 65.
More than 200 construction workers were at the construction site at 1040 Biscayne Boulevard in downtown Miami on Wednesday. Construction began on the 83-unit, 62-story last year. It marks the first residential skyscraper design in the Western Hemisphere for Hadid. The building, developed by Louis Birdman, Gregg Covin and the Regalia Group, is expected to open in late 2018.

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For a look back on the life and work of the Iraqi-British architect, watch TRD’s video here.

Source: The Real Deal Miami

EB-5 funded office condo in Doral opens at 92 percent sold

Riviera Point Business Center in Doral
A new EB-5 funded, Class A office condominium in Doral has opened at 92 percent sold. 
The Riviera Point Business Center Doral, a $9.5 million, 41,000-square-foot office center at 1500 Northwest 89th Court, marks the second EB-5 funded project for the Riviera Point Development Group in the region, of which the developer has $145 million of investment planned in three projects.
County records show Riviera Point Business Center Doral filed a declaration of commercial condominium on March 25, about four months behind schedule. Nineteen foreign investors bought into the LEED-certified Doral office building, according to a press release. The sales have not yet cleared county records.
The 44-unit project was priced from $275,000 to $495,000, according to a spokesperson.
The EB-5 program grants visas to investors who contribute at least $500,000 to projects in the U.S. that employ 10 workers or more, with a preference for areas with high unemployment. And the demand for EB-5 visas is greater than ever: the number of applications for the controversial investments-for-visas program climbed to just under 17,791 in 2015, up from just over 11,744 in 2014 and 6,554 in 2013, according to U.S. Citizenship and Immigration Services in March.
The lakefront project was designed by Boca Raton-based Corrales Group Architects and built by Design Management & Builders Corp. of Miami. The developer, led by Rodrigo Azpúrua, paid $1.6 million for the 2.4-acre lot in 2013, property records show. In the release, Azpúrua said the Doral market lacks new office condo space.
He also completed the Professional Center at Riviera Point in Miramar last year, marking the first EB-5 funded office complex in Broward County, and is working on a third, also in Miramar. Thirty-four South American investors put $17 million into the business park.

Source: The Real Deal Miami

Tzadik sells North Beach apartments, will be renovated

North Beach apartments and Tzadik founder Adam Hendry
A portfolio of seven apartment buildings in North Beach traded for $5.5 million, and the new owner has plans to renovate the properties.
Listing agent Michael Davalos
County records show an affiliate of Tzadik Management sold the 28-unit assemblage, which is between 84th and 85th Streets west of Crespi Boulevard in Miami Beach. A partnership of two New York companies controlled by Jay Deutchman, a Bronx-based property owner, bought the two-story buildings. The deal closed on Thursday.
Fortune International Realty’s Michael Davalos marketed the properties. The buyer, a 1031 exchange, will gut-renovate the units, which are all three bedrooms, upgrading the bathrooms, kitchens, floors and converting them to central air conditioning, Davalos told The Real Deal. The deal breaks down to about $196,000 per unit, or $202 per square foot.
“This is a property that has a lot of potential for future growth. It’s rare to find this kind of assemblage in Miami Beach – add to that its close proximity to the ocean and you have a nice set-up,” Davalos said in a press release.
Property records show the buildings, constructed in 1948, last sold for a combined $2.1 million in 2011. Their addresses are: 640-650 85th Street, and 725, 735, 755, 775, 785 84th Street in Miami Beach. “We were able to take advantage of this opportunity to revitalize what at the time was a distressed and rundown property,” Alex Arguelles, chief acquisitions officer for Tzadik, said in the release.
The neighborhood of North Beach stretches from 63rd Street to 87th Street and westward to Biscayne Bay. The area is largely underdeveloped when compared with South Beach and the Mid-Beach area, but commercial activity has been heating up over the past year. Just last week, the ground floor retail at the Burleigh House condominium, which fronts Collins Avenue, sold for $6.8 million.
Tzadik sold a development site nearby in January. The Miami-based firm, which specializes in property management, development and capital markets, sold that construction site on 85th Street and Harding Avenue for $5 million. Tzadik has managed more than $300 million of apartment complexes and luxury condo developments, according to the release.

Source: The Real Deal Miami