MSC Cruises gets green light for $300M terminal project at PortMiami

A rendering of the project

A rendering of the project

The Miami-Dade County Commission on Thursday approved a $300 million terminal development by MSC Cruises at PortMiami.

The cruise line plans to build its two-terminal building on 16.7 acres, under a 62-year lease, which may mark the biggest lease deal in port history.

Holland & Knight partner William R. Bloom, who represents MSC, said the company would pay rent totaling $2 billion over the 62-year term of the operating lease.

“I think this is the largest [lease] deal the port has ever done,” Bloom said. PortMiami has approved shorter lease deals for preferential berthing agreements “in the neighborhood of 30-year terms,” he added.

The MSC lease won’t have options to extend the term, Bloom said.

MSC plans to build a single building at PortMiami with two terminals where two cruise ships could operate simultaneously.

The MSC project was one of 11 projects at PortMiami that commissioners approved on Thursday for cruise lines, including Carnival Cruise Line, Norwegian Cruise Line and Virgin Voyages.

“These PortMiami deals constitute the most extensive transactions done by our port simultaneously,” Miami-Dade County Mayor Carlos Gimenez said. “These deals are expected to generate a total minimum revenue guarantee of approximately $4.6 billion in wharfage, dockage and capital recovery fees during the initial phase of the deals.”

MSC – which moved its South Florida operations from Port Everglades in Fort Lauderdale to PortMiami in 2013 – plans to base four cruise ships in Miami in the upcoming winter season, up from just one three years ago.

“But we have bigger ambitions,” said Roberto Fusaro, president, MSC Cruises USA.

PurduePharma family behind office purchase in downtown West Palm, Dwyane Wade wants out of Miami Beach manse: 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 6:00 p.m.

The Sackler family is behind a nearly $7 million sale of a downtown West Palm Beach office building purchased this summer. The Sacklers, owner of OxyContin-maker Purdue Pharma, purchased the Glidden Spina + Partners building in July, the Palm Beach Post reported, less than two months before Purdue Pharma filed Chapter 11 bankruptcy protection amid thousands of opioid lawsuits. [Palm Beach Post]

Dwyane Wade, Gabrielle Union and the North Bay Road home (Credit: Getty Images, Elliman.com)

Dwyane Wade, Gabrielle Union and the North Bay Road home (Credit: Getty Images, Elliman.com)

The Miami Heat’s former star player Dwyane Wade wants to complete one last sale in Miami Beach. Wade, who retired from the NBA this year, listed his home at 5980 North Bay Road for $32.5 million, according to the Wall Street Journal. Wade and his wife, actress Gabrielle Union, are now based in Los Angeles. [TRD]

A trillionaire, prime minister of Israel and president of the world. Those are all the things WeWork founder and CEO Adam Neumann has said he wants to be, according to a new profile of a leader who is struggling to take his company public. [WSJ]

Miami home sales fell 13 percent in August, adding to mounting signs that Miami’s housing market is cooling down. Closed sales fell to 3,493, compared to 4,034 sales in August 2018, according to the report by RE/MAX. [TRD]

From left: Compass’ Jason Post, CEO Robert Reffkin, and COO Maelle Gavet (Credit: Wharton UPenn)

Compass’ top communications executive is out. Jason Post, who joined the brokerage nine months ago, will depart as the company mulls plans for an IPO. Post previously worked for Uber and the Bloomberg administration. [TRD]

A Miami real estate agent is challenging the time-honored notion of agents as independent contractors with a lawsuit that seeks class action status.
Former Cervera Real Estate agent Beatriz Santamaria is suing the Miami brokerage for allegedly misclassifying salespeople as independent contractors and violating minimum wage and overtime provisions of the Fair Labor Standards Act. [TRD]

27 East Dilido Drive

27 East Dilido Drive

Time Warner’s general counsel wants $15 million for his Miami Beach mansion. Time Warner executive Paul Cappuccio, who was set to receive $26.7 million as a result of the merger with AT&T, listed the seven-bedroom, 7,167-square-foot home at 27 East Dilido Drive in the Venetian Islands. Julian Johnston, who recently joined the Corcoran Group, has the listing, according to the MLS.

A Brickell condo association will have to pony up a $300,000 settlement for overcharging residents extra fees when they applied to rent a unit. Miami couple Joshua and Allison Kobasky filed the class-action lawsuit against the The Plaza 851 Brickell Condominium Association after it required they fork over $250 more than what is legally allowed in Florida, according to the Miami Herald. Nearly 600 people were eligible to participate in the class action, and each person who did will receive $250. [Miami Herald]

A private company that acquired a piece of a Hollywood park wants Broward County to pay $500,000 to buy the land, or pay $6,000 a month in rent. A lack of communication between the county and its parks department is what allowed the $25,000 sale to happen, according to the Sun Sentinel. Broward County’s tax division put the land up for auction after the previous owner failed to pay their taxes. [Sun Sentinel]

Compiled by Katherine Kallergis

Join The Real Deal for Wednesday’s how-to webinar on syndicating bridge loans

Join The Real Deal at 12:00 p.m. on Wednesday, Sept. 18, for a live webinar with Ira Zlotowitz, founder and president of Eastern Union Funding, as he details the process and benefits of bridge loan syndication and how anyone can participate.

Register here.

More like WeWait? Co-working giant to postpone IPO, report says

Adam Neumann, WeWork's co-founder and CEO (Credit: Getty Images, iStock)

Adam Neumann, WeWork’s co-founder and CEO (Credit: Getty Images, iStock)

WeWork’s parent company is reportedly planning to postpone its initial public offering following weeks of scrutiny over the co-working firm’s valuation and corporate structure.

Sources told the Wall Street Journal that the IPO roadshow would be put on hold until at least mid-October, following the Jewish High Holidays, despite earlier reports that WeWork’s IPO roadshow would kick off as early as this week.

WeWork’s co-founder and CEO Adam Neumann has been under significant pressure since the company’s IPO prospectus was filed in August. The filing revealed $47 billion in U.S. landlord commitments over 15 years and just $4 billion in committed revenue, as well as huge personal loans issued by the company to Neumann and other executives.

The company faced further criticism over revelations that its board was entirely male, and that Neumann was paid $5.9 million to sell the rights of the word “We” to WeWork. Nuemann later returned the payment and appointed a female board member.

Last week, Neumann reduced the power of his voting rights to 10 votes per share from 20. And although he still has voting control, the board can now remove him as CEO. The change in corporate governance last week also limited Neumann’s ability to sell stock in the three years that followed the IPO.

WeWork planned to raise at least $3 billion in its IPO on the Nasdaq Stock Exchange, but rumors swirled last week that limited investor appetite could see a valuation fall below $20 billion.

WeWork’s largest outside investor, SoftBank, has also urged the company to postpone the offering, pointing to the cool response from investors.

WeWork lost $1.61 billion last year, with revenue totaling about $1.82 billion.

[WSJ] — Sylvia Varnham O’Regan

Corcoran says “criminal” hackers leaked agent splits

Corcoran CEO Pam Liebman and president of sales Bill Cunningham 

Corcoran CEO Pam Liebman and president of sales Bill Cunningham

The Corcoran Group said it was hacked Friday after a stunning email containing agent splits, marketing budgets and gross commission income was sent to the entire company.

Sources said the email came from Bill Cunningham, Corcoran’s president of sales. It landed in inboxes in mid-afternoon before being quickly retracted — but not before news of the breach ricocheted through the industry.

“It’s the most privileged information at a real estate company” aside from client information, said an industry source. “Yikes,” said another.

Corcoran CEO Pam Liebman reassured agents in an email late Friday that the alleged hack appeared to be isolated to a single email account, and that no customer data was involved. The firm plans to investigate the incident as criminal activity.

“This afternoon, we determined a Corcoran employee’s email account was compromised and three emails containing inaccurate and misleading Corcoran information were distributed within Corcoran,” in a deliberate attempt to distract employees and agents, disrupt business and cause damage to Corcoran,” the firm in a statement to The Real Deal.

Although sources within the firm initially said the documents were doctored, at least one agent who spoke on the condition of anonymity told TRD their numbers were “100 percent correct.”

Some Corcoran agents speculated foul play at the hands of a rival. “I will never EVER work for a company that engages in corporate cyberwarfare,” one agent posted on Instagram, along with the hashtag “#dontbotherrecruitingme.” The agent later removed the post.

In an ultra-competitive market, splits have become ammunition for firms battling over top producers. Agents are known to shop around offers to negotiate better deals — especially as Compass has upped the ante by offering fat checks and bonuses to agents in New York and other markets. According to industry sources, it’s standard for top producing agents split their commission 70-30 with their brokerages— that is the split that the Eklund-Gomes Team has with Douglas Elliman, for example.

Agents in markets outside New York can command higher splits; in Los Angeles, north of 80 percent is not uncommon.

But rising commission costs have put pressure on brokerages. Over the past year, New York City’s top residential firms have tightened their clawback policies, which allows them recoup marketing dollars or salaries if an agent leaves the firm. (In April, Corcoran demanded a half-dozen Brooklyn agents to pay back between $20,000 and $100,000 in commission and marketing expenses.)

Meanwhile, Corcoran’s parent company, Realogy, has been embroiled in a nasty legal battle with Compass, which it accused of “predatory” poaching and illegal business practices in a July lawsuit. Most recently, Compass accused Realogy CEO Ryan Schneider of attempting to sell the company or form a joint venture — a claim Realogy vehemently denied.

Homebuilder Toll Brothers adds to portfolio aimed at active adult communities in Palm Beach Gardens

Toll Brothers CEO Douglas C. Yearley, Jr. an a rendering of Avenir Community

Toll Brothers CEO Douglas C. Yearley, Jr. an a rendering of Avenir Community

Toll Brothers is continuing to bet big on western Palm Beach County, adding another development to its portfolio at a massive housing community aimed at older adults.

The Pennsylvania-based homebuilder paid $31 million for a property it intends to develop into 469 single-family houses in an active adult community in Palm Beach Gardens. Toll Brothers bought the property from the development group Avenir Development, led by Landstar Development Group.

The age-restricted community, The Regency at Avenir, will be the third such community that Toll Brothers is looking to build in the 4,783-acre master planned community west of Bee Line Highway. Avenir was approved for about 3,000 single-family homes, 400,000 square feet of commercial space and 1.94 million square feet of office space for the whole complex. The development will take 30 years to complete and will include a golf course as well as a crystal lagoon.

Homes in the Regency at Avenir will range from 1,800 to 2,800 square feet, and will have 10 different floor plans, according to a press release. Construction on the community’s sales center and model homes will begin this winter, with sales to start in the spring, according to Fred Pfister of Toll Brothers. He said homes will start in the $400,000 range.

Amenities in the complex will include a yoga studio, pool, a fitness and wellness center, outdoor amphitheater, ballroom, pickleball and tennis courts.

In June, Toll Brothers paid $21.7 million for 217 lots to build two new communities communities in the development, Windgate at Avenir and Watermark at Avenir.

Windgate at Avenir will have 119 homes ranging in size from 2,285 square feet to 2,930 square feet. Less than a mile from Windgate, Watermark at Avenir will have 98 homes ranging in size from 3,188 square feet to 3,831 square feet.

More homebuilders are seeking to develop new home communities in western Palm Beach County. Buyers are looking for more affordable homes and housing communities outside of major cities.

Other large-scale mixed-use communities include Westlake, Arden and Iota Carol.

Carl Icahn is moving his firm from NY to Miami, Michael Shvo’s hotel plan could cost him $500M: 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.

Carl Icahn

Carl Icahn

Carl Icahn’s decision to relocate his firm from N.Y. to Miami could be SALT-related. The billionaire investor and noted corporate raider is planning to move his investment firm from New York City to Miami, and the SALT tax deduction could be the reason. [TRD]

Michael Shvo’s South Beach hotel plan could cost him $500 million. Between buying the Raleigh Hotel, pending deals to purchase two neighboring boutique hotels and proposing a new residential tower, Michael Shvo and his partners are already looking at a $250 million investment — and that amount could double. [TRD]

From left: Francis Suarez, Jorge Mas, and David Beckham, with a rendering of the Miami soccer stadium

From left: Francis Suarez, Jorge Mas, and David Beckham, with a rendering of the Miami soccer stadium

Miami officials want a contract for thee David Beckham-led group’s stadium deal by October. The Miami City Commission is seeking to vote on contract by the development group for the $1 billion stadium complex on either Oct. 24 or Oct. 31. [TRD]

A parcel bordering the $4 billion Miami Worldcenter megaproject just hit the market. The 24,000-square-foot development site known as World Center Link is at 33-55 Northeast 6th Street. Colliers International South Florida’s Mika Mattingly, Jack Lowell and Cecilia Estevez are the listing agents. [TRD]

Rating agencies have had doubts about WeWork for years. In an analysis of two dozen CMBS ratings reports for properties across the country, TRD found that those rating agencies have increasingly viewed WeWork, and co-working tenants in general, as a negative in their risk assessments. Meanwhile, landlords largely continued to focus on the company’s positives in public statements. [TRD]

One in four condos in New York City are sitting vacant, according to a new report. The study found that of the 16,200 units completed in New York City since 2013, around 4,100 are still on the market. It’s pushed developers to lower prices and offer concessions. And practices from previous real estate cycles are resurfacing, like the bulk sale of unsold units to investors, converting condos into rentals and more. [NYT]

CBRE group subsidiary Hana has opened three co-working locations in London. The locations will host 500 CBRE employees. Hana will partner with Nuveen Real Estate at one flexible working location, LGIM Real Assets at another and Oxford Properties at their third location. [Press release]

Bill Cunningham and Julian Johnston with the Miami Beach skyline (Credit: iStock)

Bill Cunningham and Julian Johnston with the Miami Beach skyline (Credit: iStock)

Top Miami Beach broker joins Corcoran Group. The Corcoran Group is officially in the Miami market, and it’s hiring a top Miami Beach broker, Julian Johnston. Johnston, who had been in talks with the brokerage for months, was previously working for himself as broker and owner of Calibre International Realty. [TRD]

Terranova scores first approval for 7-story hotel on Miracle Mile. The Coral Gables Planning and Zoning Department gave initial approval for Terranova Corp.’s plans to build a 120-room hotel on Coral Gables’s Miracle Mile, according to the Miami Herald. [Miami Herald]

We Company plans to list shares on Nasdaq. WeWork’s parent company is planning to list its shares on Nasdaq, while also announcing changes to its governance structure that would restrict We Co-founder and Chief Executive Adam Neumann’s voting power. [WSJ]

Compiled by Keith Larsen

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

Developers clear first hurdle in massive casino redevelopment, FPL fuels up with Homestead farmland for natural gas facility: 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 9 a.m.

Rendering of the project (Credit: Point Publications)

Rendering of the project

Cordish Companies and partner plan redevelopment of casino and horse racing track in Pompano Beach. Pompano Beach city commissioners granted the first approval to a land-use change that would more than triple the maximum number of residential units on the Isle Casino Racing Pompano Park. [TRD]

FPL buys 109 acres near Homestead for natural gas facility. Florida Power and Light bought 109 acres near Homestead for $9.8 million where its affiliate natural gas company plans to build a nitrogen gas plant. [TRD]

Turnberry Ocean Club condo tower scored a $460 million refinance. Jeffrey Soffer’s Fontainebleau Development secured a massive refinance of its Turnberry Ocean Club, a 54-story condo tower under construction in Sunny Isles Beach. JPMorgan Chase and Mack Real Estate Credit Strategies are the lenders. [TRD]

Forever 21 is planning to file for bankruptcy as soon as Sunday. The retail chain could close as many as 700 stores in such an event, bringing an end to months of hemorrhaging money while it struggled to secure a loan. [WSJ]

Benderson CEO Randy Benderson and 1635 Northwest 107 Avenue

Benderson CEO Randy Benderson and 1635 Northwest 107 Avenue

Benderson Development scoops up Toys “R” Us property in Doral. The University Park, Florida-based real estate investment company purchased the parcel to a Toys “R” Us and Babies “R” Us in Doral for $5.3 million from Pacific Equities Capital Management. [TRD]

Billionaire Ken Griffin’s massive Palm Beach holdings now total $350M. Hedge funder Ken Griffin’s recent $99 million purchase of a Palm Beach estate highlighted his insatiable appetite for ultra-luxury homes, but it also added to his growing collection of properties in one of South Florida’s glitziest towns. [TRD]

Amid growing demand for university housing, Adam America buys a multifamily complex near FIU. Developers are increasingly seeking to build new upscale student living next to Florida International University as demand for that kind of housing grows. [TRD]

Adam Neumann (technically) lost $10 billion. The WeWork founder’s 22 percent stake was reportedly pegged as high as $14 billion earlier this year. But after a rocky path to the company’s IPO, its valuation has plummeted, and Neumann’s stake is now worth closer to $3 billion. [Bloomberg]

Low rates are increasing loan enthusiasm. Mortgage applications jumped 2 percent last week, compared with the previous week, and remained 69 percent higher than the same week last year. Interest rates are also down slightly; the average contract interest rate for a 30-year fixed rate mortgage with conforming loan balances dropped to 3.82 percent from 3.87 percent over the week. [CNBC]

Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

A fraudulent deed complicated Anbang’s $6 billion hotel sale. Anbang has sold its U.S. hotel portfolio to the highest bidder at a price north of $5.8 billion, but a last-minute wrench was thrown into the deal when the Chinese insurance conglomerate discovered six of the properties’ deeds were fraudulently transferred to limited liability companies, the Wall Street Journal reported. [TRD]

The Wynwood property and David Edelstein

The Wynwood property and David Edelstein

The owner of W South Beach buys up more land for Wynwood residential project. TriStar Capital’s David Edelstein paid $6.5 million to add a chunk of land to his growing assemblage along a booming stretch of Wynwood. He plans to develop the site into a residential building with about 365,000 square feet of space and up to 370 units. [TRD]

SoftBank is looking to use its leverage to call off WeWork’s planned IPO. SoftBank is urging WeWork’s parent company to shelve its IPO plans as the Japanese conglomerate tries to raise $108 billion for a second Vision Fund. It could struggle to attract major investors if the firm’s initial $100 billion Vision Fund is hurt by a poor performing investment in WeWork. [TRD]

Palm Beach condos shut off power as Hurricane Dorian approached. Some Palm Beach condominium buildings turned off their power after an evacuation was issued from Hurricane Doraine, leaving residents to endure miserably hot conditions. [Palm Beach Daily News]

Compiled by Keith Larsen

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

It might have been one of the biggest heists of all time.

Anbang has sold its U.S. hotel portfolio to the highest bidder at a price north of $5.8 billion, but a last-minute wrench was thrown into the deal when the Chinese insurance conglomerate discovered six of the properties’ deeds were fraudulently transferred to limited liability companies, the Wall Street Journal reported.

The deal with the buyer, South Korea’s Mirae Asset Global Investments, was due to close last month but was delayed due to fake deeds that transferred the ownership of six of the properties to unidentified limited liability companies. (One was reportedly called Andy Bang LLC.)

The fraudulent transfers were discovered as part of a routine search and sources told the Journal that Anbang had no knowledge of the transactions. The six properties found with fake deeds were all located in California.

Anbang, which has been selling off its holdings in the U.S. since its former chairman was sent to prison last year, began accepting bids for its hotel portfolio earlier this spring. Other bidders included Brookfield Asset Management, Fortress Investment Group and Blackstone Group. The Waldorf Astoria in New York, which is also owned by the insurer and is partly being converted into condos, was not included in the sale. [WSJ] — Erin Hudson