Rise in climate-related home buyouts could worsen housing inequality, Eurostars parent buys historic downtown Miami property: Daily digest

Every day, The Real Deal rounds up South Florida’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day. Please send any tips or deals to [email protected]

This page was last updated at 5:00 p.m.

The federal government will likely buy more homes as climate change intensifies. That move is expected to exacerbate housing inequality because wealthier counties can afford to arrange more government buyouts of homes in those affected areas, according to a study the Miami Herald reported on. “There is a real potential for our responses in a changing climate to make the fat cats fatter, so to speak, and to be to the detriment of our marginalized front line communities,” a co-author of the study said. [Miami Herald]

From left: Stambul’s Daniel Peña, Hotusa Group's Amancio López Seijas and Langford Hotel at 121 SE 1st Street (Credit: Google Maps and Hotusa)

From left: Stambul’s Daniel Peña, Hotusa Group’s Amancio López Seijas and Langford Hotel at 121 SE 1st Street (Credit: Google Maps and Hotusa)

Stambul sold the Langford hotel in downtown Miami to the parent company of its operator, Eurostars Hotels. Hotusa, a hospitality conglomerate based in Barcelona, paid $37 million for the 126-key hotel. Stambul spent over two years restoring the historic bank building and adding onto the property. [TRD]

An oceanfront estate on Billionaires’ Row in Golden Beach sold at a hefty discount. Sheldon Schlesinger, a noted Fort Lauderdale attorney; and Barbara Schlesinger, a philanthropist and socialite — who both died in recent years — were the owners. It sold for $19 million to a hidden buyer, 55 percent off the original asking price of $42.5 million. [TRD]

President Trump faces another hurdle in shielding tax returns. A federal judge in Manhattan rejected the president’s defense that he is immune from criminal investigation. Prosecutors are seeking eight years of tax returns for an investigation into alleged hush money. [NYT]

Bob Sheetz and 133 West Coconut Palm Road

Bob Sheetz and 133 West Coconut Palm Road

Sheetz convenience store founder Robert Sheetz is now flipping luxury homes in Boca Raton. Sheetz sold a waterfront estate at 133 West Coconut Palm Road in the Royal Palm Yacht & Country Club for $11.45 million to the Trust of 133 West Coconut Trust. [TRD]

Amazon is getting into home entry. The retail giant invested an undisclosed sum in SmartRent, a two-year-old startup that provides keyless entry and other automation devices to owners of multifamily properties. The firm raised $32 million in June. [CO]

FDOT’s chief engineer said the street under FIU’s pedestrian bridge that collapsed in 2018 should have been closed while crews worked to repair the structure. Southwest Eighth Street should have been “completely closed to traffic if the contractor was undertaking activities that posed a risk to the public,“ engineer Will Watts wrote, according to the Miami Herald. The collapse in March 2018 killed six people. [Miami Herald]

Palm Beach Gardens approves $43 million recreation facility to be built as a public-private partnership with the Palm Beach North Athletic Foundation. The 200,000-square-foot project would include ice rinks, rock-climbing, basketball, hockey, curling and indoor golf, among other activities. The county will also have to approve the agreement because it owns the land where the rec center will be built. [Palm Beach Post]

The Riverwalk on the Tarpon River

The Riverwalk on the Tarpon River

Developers are “going SOLO” and betting on neighborhood South of Las Olas Boulevard. A surge of apartment development in downtown Fort Lauderdale is starting to spread south of Las Olas Boulevard, the southern border of the city’s central business district along the Tarpon River. [TRD]

Compiled by Katherine Kallergis

Jeffrey Soffer taps ex-Turnberry CEO to lead resi division, PMG and Greybrook big loan for co-living tower: Daily digest

Every day, The Real Deal rounds up South Florida’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day. Please send any tips or deals to [email protected]

This page was last updated at 5:30 p.m.

James Harpel and The Bristol in West Palm Beach

James Harpel and The Bristol in West Palm Beach

Edgewater developer snagged a condo at The Bristol in West Palm Beach. James Harpel, who is a partner at Eastview Development, bought unit 1204 at the luxury condo development at 1100 South Flagler Street from the development group. [TRD]

Jeffrey Soffer taps ex-Turnberry CEO to lead resi division at his new company. In March, brother and sister duo Jeffrey and Jackie Soffer officially split up their interests in Turnberry Associates. Jeffrey left to launch Fontainebleau Development, and has hired Bruce Weiner, a man he once sued. [TRD]

South Florida Logistics Center

South Florida Logistics Center

JPMorgan buys an Amazon-leased warehouse next to Miami International Airport. Fueled by growth in the e-commerce sector, South Florida’s industrial market isn’t showing signs of slowing down. And when Amazon is the tenant, it’s a seller’s market for a company looking to unload that property. [TRD]

Brookfield, RXR are among major companies urging action on gun violence. Some of the country’s biggest landlords and developers have thrust themselves into perhaps the most contentious national debate: gun control. [TRD]

PMG and Greybrook land $162M loan for a downtown Miami co-living tower. Kevin Maloney’s Property Markets Group and Greybrook Realty Partners closed on a $161.5 million loan for a rental tower it’s planning in downtown Miami. [TRD]

Babylon Apartments and Francisco Martinez-Celeiro (Credit: Google Maps and Wikipedia)

Babylon Apartments and Francisco Martinez-Celeiro (Credit: Google Maps and Wikipedia)

Showdown in Miami? A former Spaghetti Western star has lost his final battle with the Miami City Commission. The commission did not override Mayor Francis Suarez’s veto. The veto prevents developer Francisco Martinez-Celeiro from securing the rezoning of the former Babylon Apartments to allow for a 24-story residential building. [TRD]

Forever 21 may be winding down, but Old Navy is only getting bigger. Fashion retailer Old Navy said it planned to open 800 new stores over an unspecified period as it prepares to split with Gap, its parent company. Old Navy has been outperforming its sister companies, Gap and Banana Republic. [WSJ]

Blackstone says it has closed a $20 billion fund — the largest in real estate history. The company surpassed its own record of $15.8 billion, which it set in 2015. Blackstone has earned itself a reputation for bringing in double-digit returns on its “opportunistic” funds. [WSJ]

President Trump wants to the Fed slash interest rates below zero. He tweeted Wednesday that the Fed should slash interest rates to zero or below, raising questions about how negative rates would work, and what they would do for the economy. [NYT]

Miami Beach claims over 7 percent of its stores are vacant. With about 7.4 percent of the city’s commercial spaces vacant, the city will seek to beautify buildings with empty shops. A July survey found 117 empty storefronts in Miami Beach. In the second quarter of this year, the city’s retail vacancy rate rose slightly by 1.7 percent year over year. [Miami Herald]

Greg Pinkalla and ORA Flagler Village Apartments (Credit: Google Maps)

Greg Pinkalla and ORA Flagler Village Apartments (Credit: Google Maps)

Fairfield Residential sells new Flagler Village apartments for $92M. Amid a growing influx of high-end apartments in Fort Lauderdale, a company tied to a former Silicon Valley executive bought a new 292-unit apartment complex in Flagler Village for $92 million, or about $315,000 per unit. [TRD]

Orlando Padron picks up Regency hotel near the airport. A company tied to the Miami investor has acquired a 3.8-acre hotel property near Miami International Airport and David Beckham’s planned soccer and retail complex. OPB Capital Group Fund 1 LLC paid $25.8 million for the Regency Miami Hotel at 1000 Northwest 42nd Avenue. [TRD]

Compiled by Keith Larsen

$634M public-private partnership proposed in Dania Beach, buyer at luxury condo project in Pompano Beach sues developer: Daily digest

A daily roundup of South Florida real estate news, deals and more for August 23, 2019

August 23, 2019 04:00PM

Every day, The Real Deal rounds up South Florida’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page at 9 a.m. and 4 p.m. ET. Please send any tips or deals to [email protected]

This page was last updated at 4 p.m.

Two developers want to build a $634 million project on mostly city land in Dania Beach. Armada Hoffler Properties and Capital Group’s proposal to build The Dania Beach City Center project, with residential, office, retail and hotel development, will be considered by the Dania Beach commission next week, according to South Florida Business Journal. The city issued a request for proposals in March to develop the property at 100 West Dania Beach Boulevard. [SFBJ

The former CEO of La Quinta Holdings is suing the development group of Sabbia Beach. Wayne Goldberg is alleging the developer falsely induced him to purchase a condo for $5.35 million. He is now seeking to close on the penthouse and recover compensation for the harm he and his family have suffered. The complaint alleges that Fernbrook Florida falsely represented that only seven units at the Pompano Beach condo project were still available at the condo development, driving up the sales price. [TRD]

Billionaire David Koch died at 79 on Friday. He was the 11th richest person in the world. In Palm Beach, the industrialist paid $10.5 million for an estate at 150 South Ocean Boulevard in 1998. The 13-bedroom, 20,378-square-foot mansion was built in 1920 on nearly 2 acres of land across the street from the ocean, according to property records. [TRD

Atlantic | Pacific Real Estate Group and Blue Arch Advisors closed a $140 million portion of a fund that invests in multifamily properties. The fund is looking to raise a total of $300 million, which will give it buying power of over $750 million. Investors in the fund include domestic and international institutional investors as well as high net worth individuals. [TRD

Development has been ramping up in Hialeah. Avra Jain is looking to bring back the glory days of Hialeah, starting with a major adaptive re-use commercial development on about 6 acres of land in east Hialeah, she said during a panel hosted by CREW Miami at Four Seasons Hotel Miami earlier this week. [TRD

Fort Lauderdale has a big water problem. The city will hold on fixing its water treatment plant after the lowest bid it received was $15 million higher than the city’s budget, according to the Sun Sentinel. The city commission still plans to use about $10 million in utility funds to pay for other city services, despite the city’s aging water and sewer systems, and crumbling pipes. [Sun Sentinel]

Developer Jeff Greene is back to building condos on a West Palm Beach site he’s building on. Greene bought the property at 550 Quadrille Boulevard in 2014, and planned to build 84 luxury condos at the mixed-use project. Then, he decided to replace the condos with rental apartments when he reconfigured his plan to include less office space. Now, he told the Palm Beach Post that there is “such a demand for smaller units that are super luxurious and have an enormous amount of amenities” that he’s leaning toward selling the 300-plus units as condos. [Palm Beach Post]

Robert Finvarb and Tony Cho closed on a $67 million loan for a mixed-use hotel near Brickell City Centre. The partnership secured the financing from City National Bank to build a 21-story, 264-key dual-branded hotel on the property. The project, designed by Arquitectonica, would also feature 25,000 square feet of retail space, structured parking and a rooftop terrace. [TRD]

Ex-members of Trump National Doral have been waiting to inch forward on the refund list at the Doral golf course and resort — and they may have to wait decades more. To move up on the list by one spot, four new members need to join the golf club, and the list is more than 265 people long, according to the Miami Herald. Few members have joined between December 2017 and January 2019. One member said that he moved up by two spots, which means only eight members had joined in that period of time. [TRD]

Compiled by Katherine Kallergis

Member of Yankee Clipper hotel family sells Fort Lauderdale estate for $10M

Jenna and Keith Keltner sold the home 1749 Southeast 13th Street for $1,568 psf

Jenna and Keith Keltner, 1749 Southeast 13 Street Fort Lauderdale (Credit: V’s Barbershop)

Jenna and Keith Keltner, 1749 Southeast 13 Street Fort Lauderdale (Credit: V’s Barbershop)

The owners of a V’s Barbershop, linked to the family that owned the historic Yankee Clipper hotel, sold their waterfront Fort Lauderdale estate for $9.5 million.

Jenna and Keith Keltner sold the 6,055-square-foot home at 1749 Southeast 13th Street for $1,568 per square foot to a Nevada company called Grace 1749.

The home has five bedrooms and seven bathrooms. Its amenities include a wine room, gym, an open floor plan, eat-in gourmet kitchen and master bedroom on the ground level with dual baths and walk-in closets. It was designed by Tuthill Architecture.

The property also has 320 feet of water frontage and a 45-foot boat slip. The home was built in 2017 and was listed for $10 million in March. Tim Elmes of Coldwell Banker Residential Real Estate had the listing. The buyer was represented by Darin Tansey of the Eklund-Gomes team of Douglas Elliman.

The land was inherited by Jenna Keltner, whose family owned the historic Yankee Clipper hotel in Fort Lauderdale Beach that resembled a cruise ship.

The iconic resort opened in 1956 as the Sheraton Yankee Clipper. It was often featured in films over the past decades, including the 1999 movie “Analyze This,” starring Robert DeNiro and Billy Crystal. The family sold the hotel in 2005. It is now known as the B Ocean Resort.

The Keltners are currently the franchise owners of V’s Barbershop in Fort Lauderdale, the popular barbershop’s first location in South Florida. Keith Keltner was formerly a marketing and operations specialist who worked at the Boca Raton-based headquarters for Office Depot. Jenna Keltner previously helped Spirit Airlines during its IPO, according to V’s Barbershop in Fort Lauderdale’s website.

Fort Lauderdale’s luxury residential sale prices generally pale in comparison to the high-end homes on Miami Beach or Palm Beach, but the area has seen a number of big sales in recent months.

In May, a major used-car dealer paid $17.36 million at auction for a waterfront Fort Lauderdale mansion, marking the most expensive single-family home sale in the city over the last 18 months.

Community resistance may keep Broward hotel from crossing street to touch beach

TLG Investment Partners and another firm proposed a 207-room hotel in Lauderdale-by-the-Sea that would extend across El Mar Drive to the beach

June 30, 2019 01:05PM

Rendering of proposed hotel in Lauderdale-by-the-Sea (Credit: Sun-Sentinel)

Resistance from town residents may lead developers to redesign a proposed 207-room hotel that would close part of an existing street along the beach in Lauderdale-by-the-Sea.

Many in an audience of about 100 people criticized the proposal last week at a Town Hall workshop because the developers want to build the hotel on part of El Mar Drive, which is parallel to, and east of, State Road A1A.

The developers, Fort Lauderdale-based TLG Investment Partners LLC and Marietta, Georgia-based Concord Wilshire Capital LLC, proposed closing the southern end of El Mar Drive so their planned hotel could extend from A1A to the beach.

But Elliot Sokolow, the vice mayor of Lauderdale-by-the-Sea, said many residents oppose the proposed closure of the southern end of El Mar Drive, which provides access to homes and lodging.

Sokolow also told the Sun-Sentinel that the planned hotel “would be a great addition to our southern border” and that Concord Wilshire is a “credible developer with a great track record.” Nate Sirang, president of Concord Wilshire, did not respond to phone messages.

A joint venture of Concord Wilshire and TLG signed a contract in February to acquire the hotel development site: A former Holiday Inn at 4116 Ocean Drive and 4108 and 4110 El Mar Drive, the former location of a now-demolished hotel known as Villa Caprice. The owner of the property is Florida Development Group South. [Sun-Sentinel]Mike Seemuth

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London + Regional Properties buys Fort Lauderdale Marriott hotel

The 315-key hotel sold for $154K per room

Procaccianti Companies CEO James A. Procaccianti and 6650 North Andrews Avenue

Procaccianti Companies CEO James A. Procaccianti and 6650 North Andrews Avenue

Procaccianti Companies sold a Marriott hotel in north Fort Lauderdale to London + Regional Properties, records show.

The Cranston, Rhode Island-based company sold the 315-key hotel at 6650 North Andrews Avenue for about $154,000 per room. An affiliate of London + Regional Properties secured a $24.9 million loan from Wells Fargo to acquire the property.

Procaccianti paid $35 million for the hotel in 2006, according to property records. It was built in 1986 and is near I-95.

London + Regional Properties, a U.K.-based luxury hotel and resort company, recently bought the Palm House Hotel in Palm Beach for $39.6 million. In January, the company paid nearly $49 million for the Pullman Miami Airport hotel at 5800 Blue Lagoon Drive in Miami.

Procaccianti was founded in 1958 and has completed real estate deals worth more than $10 billion, according to its website. In 2017, the company paid $9.2 million for a 11,600-square-foot office building at 231 Royal Palm Way in Palm Beach.

In South Florida, thousands of new hotel rooms are hitting the market, which is driving down occupancy rates. In the first quarter, the hotel occupancy rate in Broward County fell to 83.5 percent, about a percentage point drop from last year, according to hospitality industry monitor STR.

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Brazilian developer launches sales of Fort Lauderdale townhome project

Townhouses start at $640K and go up to $800K

Luis Noronha and renderings of Galleria Village (Credit: LinkedIn)

Luis Noronha and renderings of Galleria Village (Credit: LinkedIn)

Brazilian developer Luis Noronha is launching sales of a new townhome project near the Galleria Mall in Fort Lauderdale.

Noronha’s Lana Capital plans to break ground on the 24-unit Galleria Village development at 1245 Northeast 18th Avenue in east Fort Lauderdale in August, according to Dan Teixiera of Douglas Elliman. Teixeira and Megan Kowalchuk are handling sales of Galleria Village. Townhouses start at $640,000 and go up to $800,000.

The townhouses, in a gated community, each have three bedrooms and a den in more than 3,000 square feet, with a two-car garage and the option to build a pool. Sagewood Construction is building the project and Gustavo J. Carbonell is the architect.

Lana Capital has developed more than 30 projects in Brazil, New York and Miami, Noronha said. This marks the first for the developer in Fort Lauderdale.

“Development in Miami is quite challenging at this point,” he said. “There’s enough product and prices are going down.”

Lana Capital paid $2.8 million for the property in 2017, Noronha said.

The city of Fort Lauderdale has been investing in infrastructure in the area, where new restaurants, bars and grocery stores have been built. Last year, GreenWise Market inked a 28,000-square-foot, ground-floor lease at The Main Las Olas project, developed by Stiles and Shorenstein Properties, at 225 East Las Olas Boulevard.

Teixeira, a Fort Lauderdale resident, said Galleria Village stands out among the competition because the townhouses have the amenities of a single-family home, with larger garages, two stories instead of three, and the option for a private pool.

Buyers are required to put down 30 percent deposits during the construction phase. The project is expected to be completed within 14 months of breaking ground.

Teixeira said he’s seen interest from international buyers, including from Brazil. Brazilian buyers appear to be coming back to South Florida. In 2018, Brazil ranked as the top country buying South Florida homes, according to the Miami Association of Realtors.

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Compass's Chad Gray, Katrina Campins of The Campins Company and 534 Bontana Avenue

Compass’s Chad Gray, Katrina Campins of The Campins Company and 534 Bontana Avenue

A major used-car dealer paid $17.36 million at auction for a waterfront Fort Lauderdale mansion, marking the most expensive single-family home sale in the city over the last 18 months, The Real Deal has learned.

James Barnett, an asset manager, sold the 27-room, over 17,000-square-foot estate at 534 Bontona Avenue to Mark and Eileen Fischer of Off Lease Only, said listing agent Katrina Campins of The Campins Company. The deal, set to close on Monday, is more than double 2018’s record $7 million single-family home sale in Fort Lauderdale of 2501 Delmar Place.

Fischer’s Off Lease Only is the largest independent used-car dealership in the U.S. based on volume, according to its website.

The $17.36 million price tag includes the buyer’s premium. Six bidders participated in the auction, which was handled through Concierge Auctions on April 12. Chad Gray of Compass’ Luxury Living Fort Lauderdale Group represented the buyer.

Barnett paid $7.64 million for the property in 2010. He bought it from the late Wayne Huizenga, whose family recently went to auction for his former estate at 1575 Ponce De Leon Drive.

Barnett then knocked down the former home on Bontona Avenue and built a new mansion, putting it on the market for $39 million. The home includes five full bedrooms, six bathrooms and five half-bathrooms, hand-painted ceilings, hand-painted Portuguese wall tiles, an elevator, two fireplaces, a gym, massage room, yoga room, two home offices and a four-car garage.

The property also features a Venetian-style saltwater pool, outdoor kitchen, a 350-foot concrete dock, and room for a tennis court, according to a release.

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Key International starts building AC Hotel by Marriott near Fort Lauderdale beach

Key International starts building AC Hotel by Marriott near Fort Lauderdale beach

The Miami-based firm paid $9.56M in 2016 to acquire the Alhambra Street site for a 10-story, 171-room AC Hotel by Marriott

March 16, 2019 05:15PM

Rendering of planned AC Hotel by Marriott at 3029 Alhambra Street in Fort Lauderdale

Miami-based Key International broke ground for construction of an AC Hotel by Marriott near the beach in Fort Lauderdale.

Key International is building the 10-story, 171-room hotel on a site at 3029 Alhambra Street on Fort Lauderdale’s barrier island.

The Miami-based firm acquired the development site as a three-parcel assemblage for $9.56 million in July 2016.

Amenities at the AC Hotel by Marriott will include a cocktail lounge and a resort-style swimming pool with cabanas and dining service.

Key International acquired the half-acre development site about eight months after Fort Lauderdale city commissioners approved a site plan for the hotel development in November 2015.

South Carolina-based OTO Development had a contract to purchase the Alhambra Street site but decided against closing the deal.

Key International’s portfolio of hotels and resorts includes the Eden Roc Resort in Miami Beach, a newly opened  Embassy Suites by Hilton in St. Augustine and the dual-brand Residence Inn and Springhill Suites in Clearwater. [Hospitality.net]Mike Seemuth

Soaring costs threaten the Wave streetcar project in Fort Lauderdale

A streetcar in Kansas City similar to the type planned in Fort Lauderdale
Unexpected increases in estimated costs threaten the planned development of a streetcar system in Fort Lauderdale.
Contractors bidding to build the streetcar system, called the Wave, want more money than expected to build it, at least $74 million more.
That means the total cost of the system could top $270 million, or almost twice the $142 million originally estimated.
The Wave streetcar system would operate on a 2.8-mile route inding through and around downtown Fort Lauderdale.
Wave streetcars would be operated on tracks embedded in street lanes and would be connected to overhead electrical wires over most of the 2.8-mile route.
The project already had cost more than $23 million as of July 18. The partners in the streetcar project are Fort Lauderdale, the city’s Downtown Development Authority, and the Broward Metropolitan Planning Organization, plus the county, state and federal government.
Jenni Morejon, executive director of the Downtown Development Authority, told the Sun-Sentinel that soliciting bids for large projects more than once is one way to lower their cost.
Lowest among bids to design and build the streetcar system is a $188.7 million bid, which excludes a separate $31.4 million expense the county authorized to acquire five streetcars and spare parts.  [Sun-Sentinel] — Mike Seemuth

Source: The Real Deal Miami