Antonio Brown gives deposition for allegedly damaging Sunny Isles condo, Baptist plans senior living in Coral Gables: Daily digest

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Antonio Brown gives deposition for allegedly damaging Sunny Isles condo. The troubled former NFL wide receiver sat for a deposition on Tuesday over claims he allegedly damaged a luxury Sunny Isles Beach condo last year, according to the New York Post. The owners of the Mansions at Acqualina in Sunny Isles Beach sued Brown, claiming he caused $35,000 worth of damage. [New York Post]

Baptist Health South Florida reveals plans for luxury senior living project in Coral Gables. Baptist Health South Florida and Belmont Village plan to build 10 stories, with 232 senior living units, 12,505 square feet of retail or commercial space and 207 parking spaces on the former site of the planned Collection Residences condo project. [SFBJ]

Adam Neumann to step down as WeWork’s CEO. Adam Neumann stepped down Tuesday as WeWork’s CEO as the company moved to salvage a planned initial public offering. The chief executive’s exit concludes talks that began in recent days between Neumann and his company’s investors and board members. [TRD]

Fort Lauderdale luxury auto dealership allegedly built without landlord’s consent, according to a new lawsuit. A nearly completed Aston Martin, Bentley and Rolls-Royce dealership in Fort Lauderdale is at the center of a property dispute between the facility’s developer, Holman Automotive, and its Alabama-based landlord. [TRD]

Miculitzki family lists property near Wynwood Walls for $18M. Block Capital Group, owned by the Miculitzki family, is looking to sell a retail property near the Wynwood Walls for $18 million. 295 Wynwood LLC, led by Martin Miculitzki, gut-renovated the property at 2729 Northwest Third Avenue and leased the 9,616-square-foot building to Bfyne, a clothing store; Giache Crepes; and D’Cajon, a restaurant. [TRD]

Medical device makers sell Manalapan estate for $27M. The founders of a medical supply company sold their 2.3-acre waterfront Manalapan estate for $27 million, 38 percent below its original asking price. David and Margaret Lumia sold the property at 1340 South Ocean Boulevard to Villa Del Balbianello LLC, led by Eric Thompson of Towson, Maryland. [TRD]

Compass’ COO Maëlle Gavet is out. Compass‘ chief operating officer Maëlle Gavet is leaving the residential brokerage next month, according to sources familiar with the matter. Gavet’s exit is the most notable in a string of recent departures from the SoftBank-backed firm. [TRD]

Spec home builders sell North Bay Road mansion for $16M. Spec home builders Brett Palos and Bart Reines sold a waterfront Miami Beach estate for $16 million, property records show. The buyer is Rodney O’Neal, the former president and CEO of Delphi Automotive, an auto parts supplier. [TRD]

Motivational speaker Grant Cardone raises $50M for multifamily fund via crowdfunding. Cardone Capital’s $50 million Cardone Equity Fund V is oversubscribed and closed as of Friday, said Susan Schieman, chief financial officer of Cardone Capital. [TRD]

Raanan Katz buys Pembroke Pines shopping center. A company tied to Sunny Isles Beach commercial property owner Raanan Katz bought a retail center in Pembroke Pines for $22.3 million. [TRD]

Co-working rivals are cashing in on WeWork’s struggles. Flex-space company Knotel, co-working startup Industrious and meeting-space company Convene have all raised funds over the past month amid WeWork’s IPO woes, in part by highlighting the differences between themselves and the SoftBank-backed giant. In particular, firms often point out that their partnerships with landlords will better protect them in a downturn. [WSJ]

The WeWork IPO is just the latest in SoftBank’s long list of problems. SoftBank-backed companies including Uber, its Chinese rival Didi Chuxing, Slack and cancer-test company Guardant Health are all likely to be marked down in the firm’s third-quarter reporting. The odd structure of Softbank’s Vision Fund — in which 40 percent of the capital comes in the form of debt-like preferred stock — poses greater risks in a downturn, and Masayoshi Son’s firm recently took out an unusual three-year loan to pay back its investors, using its stakes in Uber and Guardant as collateral. [WSJ]

Some developers embrace short-term rentals. From a condo project in Nashville marketed for short-term rental use, to hotel-licensed, Airbnb-branded developments in Miami and Austin, developers are taking a new approach to increasing profits and driving sales. They are also taking steps to address safety and regulatory issues which have historically led landlords to shy away from transient uses. [WSJ]

Miami Beach could see new hotels on Lincoln Road. The Miami Beach City Commission is considering allowing taller buildings and smaller room sizes on Lincoln Road, which would allow for hotels to built on the popular street, according to the Miami Herald. The ordinance could head to a vote in October. [Miami Herald]

The property known as La Follia at 1295 South Ocean Boulevard closed for a record-breaking $105 million in July.

The property known as La Follia at 1295 South Ocean Boulevard closed for a record-breaking $105 million in July.

Here’s what it takes to sell a luxury home in posh Palm Beach. Tax benefits are leading more out-of-towners to plant a flag on the exclusive island, where brokers are in fierce competition and backstabbing is par for the golf course. [TRD]

Rendering of Virgin Hotels Miami and Richard Branson (Credit: Getty Images)

Rendering of Virgin Hotels Miami and Richard Branson (Credit: Getty Images)

Richard Branson’s Virgin Hotels unveils plans for first Miami hotel. The 40-story property in the Brickell neighborhood will have a co-living component. The hotel is one of at least two that Virgin Hotels plans to operate in the Miami area, according to AFAR, which first reported the news. The second will be in South Beach. [TRD]

Compiled by Keith Larsen

Co-working firm Spaces moving into 1111 Lincoln

Spaces also signed a lease at 801 Brickell earlier this month

Mark Dixon, CEO of IWG and 1111 Lincoln

Mark Dixon, CEO of IWG and 1111 Lincoln

The co-working firm Spaces just leased a lot of space in one of Miami Beach’s marquee properties.

Spaces leased 51,064 square feet at 1111 Lincoln, at the corner of Alton Road and Lincoln Road. The lease covers 55 percent of the total office space at the building.

The property is known for its large parking garage designed by Swiss architectural firm Herzog & de Meuron that some say resembles a “House of Cards.” The property has 94,488 square feet of office space and 51,839 square feet of retail and restaurant space.

Current tenants include Juvia, Ted Baker, Osklen, Shake Shack and Douglas Elliman, according to a press release. 1111 Lincoln is now 95 percent occupied, said Kevin Gonzalez, vice president at CBRE, in the release.

CBRE’s Diana Parker and Gonzalez represented the landlord. JLL’s Gavin Macphail represented Spaces in the lease negotiations.

Spaces is owned by IWG Plc, the parent company of Regus.

This is the second big lease Spaces has secured this month. It also signed a lease to occupy 49,000 square feet at 801 Brickell Avenue, a 28-story office building. In January, it announced a lease for nearly 43,000 square feet at One CocoWalk, an office building under construction in Coconut Grove.

Spaces currently has two other sites open in South Florida, in Wynwood and Fort Lauderdale, according to its website.

The flexible office space market is growing in South Florida, but experts have warned that the region doesn’t attract the blue-chip clients that are increasingly bolstering co-working firms across the country. Since 2015, WeWork has taken up more than a quarter million square feet of office space in Miami-Dade, close to five times the square footage Büro occupies at its five locations, which range from 10,000 to 20,000 square feet, according to a recent analysis by The Real Deal.

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Miami Beach may encourage taller hotel development on Lincoln Road

Miami Beach may encourage taller hotel development on Lincoln Road

Sam Herzberg wants to transform the Sterling Building into a 130-room Sterling Hotel

Lincoln Road (Credit: Facebook)

Real estate investor Sam Herzberg’s desire to turn the 91-year-old Sterling Building into a 130-room hotel has sparked interest in Miami Beach to encourage more hotels and smaller rooms on Lincoln Road.

Miami Beach commissioners Ricky Arriola, Joy Malakoff, and John Elizabeth Aleman on Wednesday largely backed a proposed law that would waive parking requirements for hotel additions attached to historic buildings on Lincoln Road between Alton Road and Washington Avenue. The proposed rule would also increase the height limit to 75 feet for hotel additions on Lincoln Road and allow new hotel units that are 200 square feet in size.

Under the current zoning that covers Lincoln Road, height is limited to 50 feet. Also, new hotel rooms built in Miami Beach must be at least 300 square feet under the current code.

At a Miami Beach Land Use and Development Committee meeting, Herzberg’s attorney, Michael “Micky” Marrero, said his client has wanted to transform the two-story, office-retail Sterling Building at 925 Lincoln Road into a 75-foot hotel and retail complex for years.

Unfortunately, Marrero claimed, the city’s parking impact fees and current minimum size requirements for hotel rooms haven’t made such a hotel financially possible on Lincoln Road.

Boutique hotel additions could help bring back mom-and-pop restaurants and shops to Lincoln Road, he said. Many of those smaller businesses have been replaced by big corporate stores, as Lincoln Road has become one of the most expensive retail centers in the United States, with rents averaging $300 per square foot.

“This is a way to spur development and keep the contributing elements [of Lincoln Road] without bringing more big-box stores,” Marrero said, adding that the developer intends to keep Books & Books in the Sterling Building, as well.

Architect Kobi Karp said he could build a hotel addition directly behind the existing Sterling Building, allowing Lincoln Lane to be used for vehicular traffic while Lincoln Road, which has been closed off from cars since the 1960s, will be used as the hotel’s “public amenity area.”

“We just add a tower in the back toward the end,” Karp told the three commissioners. “That’s the concept we are playing with right now.” It would be a tower as well as a courtyard in the back, Karp said.

Should the city approve the Lincoln Road hotel ordinance, Herzberg hopes to start construction by the end of 2020, Marrero said.

Arriola praised the proposed hotel as well as the proposed ordinance. “I think long-term, this puts us in a good position as we compete with other cities,” Arriola said. “I don’t want to miss this opportunity.”

Commissioner Malakoff said building a hotel addition behind The Sterling Hotel “makes a lot of sense.” She was also pleased that the proposed ordinance restricts hotels to the north side of Lincoln Road, which tend to abut commercial properties. The south side of Lincoln Road, on the other hand, tends to abut residential properties.

But Malakoff opposes hotels using rooftop additions for parties, especially if they’re near SoundScape Park where movies and classical music concerts are often projected onto the wall of the New World Symphony Building. “I don’t want to hear rap music coming from the rooftop,” Malakoff said.

Former Miami Beach commissioner Nancy Liebman, now an activist affiliated with the Miami Design Preservation League, urged the Land Use Committee not to rush the ordinance forward. She was especially worried that raising the height limit to 75 feet will encourage future developers to push for even taller buildings. “All of a sudden they will grow a little higher, and a little higher, and that will be the end of Lincoln Road,” Liebman said.

The proposed ordinance will come back to the Land Use Committee on May 22nd. During that time, the city’s planning department will compile a list of potential sites where hotel additions could be built on the north side of Lincoln Road.

Carlos Zapata-designed “wing” on Lincoln Road may soon disappear

The “wing” on Lincoln Road
A landmark may soon disappear from Lincoln Road, albeit one that has often been ridiculed.
The wing and fountain
On Wednesday, Miami Beach’s Land Use and Development Committee unanimously voted in favor of removing a triangular glass-and-metal-structure from the 400 block of Lincoln Road. Designed by architect and artist Carlos Zapata, the structure, which also includes two rectangular water fountains and a planter bed, is the first thing that greets tourists walking west from the beach.
Completed in 1999, the structure was soon called “the roach” or “the wing” by Miami Beach officials. It cost $259,000 to build and was, according to a Miami Herald article from that time, “intended to be the final touch on the mall’s $17 million make-over.” The structure was also supposed to house an information touch screen for tourists, but the device never worked properly and, thus, was never installed.
The touchscreen wasn’t the only problem. “The structure was never completed as designed, missing a glass wall in front of the fountain,” according to a March 30 report from City Manager Jimmy Morales.
Miami Beach is about to embark on yet another renovation project for Lincoln Road, a pedestrian mall where retail rents surpass $300 a square foot. The Lincoln Road master plan, created by James Corner Field Operations and approved by the Miami Beach City Commission in October, suggested the Zapata structure’s removal, Morales’ memo stated, “in order to enhance visibility from Washington Avenue.”
The structure is a hazard, too, Morales’ memo stated. “The Zapata ‘wing’ and fountain conditions have deteriorated over time due to the environment and impact on pedestrian traffic,” the city manager wrote. “The fountains are used by children, dogs, and skateboarders, creating a potentially hazardous situation. Risk management has received complaints of slip and falls adjacent to that area.”
Commissioner Joy Malakoff asked if it was possible for the city to sell the structure. Max Sklar, director of Tourism, Culture and Economic Development, doubted it. The wing was never installed correctly, Sklar said. “It was not what he [Zapata] designed,” Sklar said. “I don’t think he really would take credit for it.”
The structure’s removal is not a done deal yet. It still has to be authorized by the city commission. The elected body’s next meeting is April 13.

Source: The Real Deal Miami