Ben Carson talks Opportunity Zones, top developers riff on condos vs. rentals: 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.

Secretary of Housing and Urban Development Ben Carson talks Opportunity Zones and… ants. Carson spoke at The Real Deal’s annual Showcase & Forum in Miami’s Mana Wynwood. HUD will give preference to developers and investors who build affordable housing in federal Opportunity Zones when it comes to certain grants. [TRD]

South Florida developers riff on shift from condos to rentals at TRD Miami showcase. New York developer Michael Shvo, who is making a push in Miami Beach, said he would not follow the trend, arguing that with the right site and project, the general market’s performance is irrelevant. [TRD]

Compass refutes WeWork comparison. Both companies, backed by SoftBank, were boosted by impressive valuations despite questions about profitability, and have seen a slew of executive departures. However, in hours of interviews with The Real Deal, six of Compass’ C-suite executives sought to distance the brokerage from the narrative of the troubled coworking giant. [TRD]

Scott Wadler is now managing director at Berkadia. Wadler spent over a decade at HFF, most recently as senior director of the firm’s Miami office. He handles construction financing, hospitality and residential deals throughout the Southeast. [TRD]

South Florida Q3 resi sales a mixed bag, with inventory falling. In Miami, Miami Beach and surrounding cities, sales generally rose in the third quarter, according to the newly released Elliman Reports, authored by Jonathan Miller of Miller Samuel Inc. But elsewhere in the tri-county region, sales dropped or remained stagnant. [TRD]

County Commissioner warns Miami Beach about roadblocks for Baylink transit project. The mayor of Miami Beach’s ordinance to increase the city’s control over transit projects would harm plans to build the Baylink project connecting Miami Beach to downtown Miami, Miami-Dade Commissioner Eileen Higgins warned Miami Beach officials Wednesday. [Miami Herald]

Home foreclosures are dropping

Home foreclosures are dropping

Home foreclosures dropped nearly 20% in Q3, report shows. Overall, 143,105 U.S. properties had foreclosure filings from July through September. U.S. home foreclosures dropped sharply in the third quarter, with New York City, South Florida and Los Angeles all registering declines. [TRD]

West Palm Beach’s Rosemary Square and its lender are going to court. Rosemary Square in West Palm Beach and its lender Wells Fargo are heading to a federal trial on Oct. 23. The two are in a dispute over an appraisal needed for the refinancing of a $150 million loan at the entertainment center in the heart of West Palm Beach. [Palm Beach Post]

Shaya Boymelgreen sells waterfront estate in Miami Beach

4539 Pine Tree Drive and Shaya Boymelgreen (Credit: Realtor, Getty Images and iStock)

4539 Pine Tree Drive and Shaya Boymelgreen (Credit: Realtor, Getty Images and iStock)

Shaya Boymelgreen sold her Miami Beach estate for $9.3 million, property records show.

Boymelgreen is married to Shaya, an Israeli-born New York developer who was temporarily banned from selling condos in New York alongside his partner, Lev Leviev’s Africa Israel Investments, in 2014.

Shaya Boymelgreen, via 4539 Pinetree LLC, sold the five-bedroom, 6,311-square-foot house at 4539 Pine Tree Drive to Miami Hills LLC, a Delaware company that lists a Brooklyn address. The property was built in 1951 on a waterfront 0.7-acre lot in Miami Beach.

The house includes an outdoor terrace with a summer kitchen, salt-water pool and a dock with 100 feet of waterfront, according to a previous listing. It last sold in 2015 for $9 million.

Nearby at 4260 Pine Tree Drive, developer Russell Galbut wants to build a mansion three feet higher than is currently allowed by the city.

Earlier this year, Jamie LeFrak, vice chairman and managing director of LeFrak, closed on 4567 Pine Tree Drive for $19.6 million.

Shaya Boymelgreen and Leviev had a failed partnership to build a number of condo projects in New York, and they also built the Marquis Miami building in downtown Miami. They were sued in 2016 over alleged construction defects at Marquis Miami.

Last year, Menachem Boymelgreen secured a $23.5 million construction loan for a planned townhome project in Surfside.

Spec home developer Felix Cohen buys two vacant lots on North Bay Road for $14M

Julian Cohen with the property

Julian Cohen with the property

Spec home developer Felix Cohen purchased two vacant lots on Miami Beach’s North Bay Road for $13.5 million, with plans to build a new estate with his son Julian Cohen.

Cohen bought the combined 36,143 square-foot-property at 5830–5840 North Bay Road for $373 per square foot, records show. The property features 200 feet of deep water frontage.

NBR5840 LP, a Delaware Company with a London address, sold the property. NBR5840 LP bought the combined property in September 2018 for $13.85 million, meaning it sold at a slight loss.

Julian Cohen of The Jills Zeder Group represented the buyer, according to a press release. He is also a co-developer of the project.

Felix Cohen is a Miami Beach spec home developer who co-developed 3 Indian Creek Road that sold for $47 million in 2012, marking a record sale that year.

North Bay Road has become one of the most desirable streets for ultra-wealthy buyers. Earlier this month, spec home builders Brett Palos and Bart Reines sold a waterfront home at 5712 North Bay Road for $16 million.

In August, hotelier Keith Menin paid just over $12 million for the eight-bedroom, nearly 15,000-square-foot mansion at 2318 North Bay Road.

Also in August, a California buyer purchased a waterfront mansion and lot on North Bay Road for a combined $35.4 million, marking a record sale in Miami Beach this year.

Antonio Brown gives deposition for allegedly damaging Sunny Isles condo, Baptist plans senior living in Coral Gables: 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 6:15 p.m.

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

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

Lionheart Capital scores TCO for long-delayed Ritz-Carlton Residences, Miami Beach

The TCO from Miami Beach means that closings can finally start at the 111-unit, 15-villa luxury development

Ricardo DuninRitz and Ophir Sternberg with the Carlton Residences, Miami Beach

Ophir Sternberg and Ricardo Dunin with the Ritz-Carlton Residences, Miami Beach

Lionheart Capital secured a temporary certificate of occupancy for its long-delayed luxury condo project The Ritz-Carlton Residences, Miami Beach.

The TCO from the city of Miami Beach means that closings can finally begin at the 111-unit, 15-villa luxury development at 4701 Meridian Avenue, where prices range from $2 million to over $40 million. The project is currently more than 70 percent presold, according to a press release from the development group.

Ritz-Carlton Residences sits in a quiet residential area of Miami Beach overlooking Surprise Lake, and is the first full-scale architectural project in the U.S. by Piero Lissoni, an acclaimed Italian architect who is known for his minimalist design. It was developed by Lionheart Capital, led by Ophir Sternberg and Ricardo Dunin, and Elliott Management Corp.

Sales at Ritz-Carlton Residences, Miami Beach initially began in 2014 and the project was supposed to be substantially completed by 2017, according to marketing materials.

The project was hindered, however, by construction delays, and seven buyers sued the development group seeking to get their deposits back. Three of the lawsuits remain pending in Miami-Dade Circuit Court, including one from Marsha Soffer of the Turnberry Associates family, court documents show.

The development group has not publicly commented on the delays or if it plans to settle the lawsuits. Plaza Construction, the contractor on the project, also has not commented on the delays.

“To compensate that we were late we are going to deliver a product a lot beyond what people expect,” Dunin told The Real Deal in February, when he expected the TCO to be issued in April. This includes importing furniture for the common areas from top European designers, purchased at the Salone del Mobile in Milan, Italy, last April.

The adaptive reuse project features 60 distinct floor plans and was built on the former site of the Miami Heart Institute.

Lionheart Capital paid Mount Sinai Medical Center $20 million for the property in February 2012. The development group secured a $105 million construction loan from Bank of the Ozarks, now known as Bank OZK, in the summer of 2015, including assuming $10 million in existing construction financing.

In addition to the condos and villas, Ritz-Carlton Residences, Miami Beach will feature gardens, pools and 36 private boat slips.

Shared amenities will include an art studio, a rooftop pool deck with private cabanas and a restaurant, a waterfront bar and social room, pet grooming facilities, indoor and outdoor yoga studios, a meditation garden and car wash facilities.

Airbnb settles federal lawsuit against Miami Beach over business and resort tax disclosures

Under the settlement, Airbnb hosts in Miami Beach must post their business and resort tax account numbers in their listings

Miami Beach Mayor Dan Gelber (Credit: Getty Images, iStock, and Airbnb)

Miami Beach Mayor Dan Gelber (Credit: Getty Images, iStock, and Airbnb)

Airbnb has settled a federal lawsuit it brought against the city of Miami Beach, and both sides are claiming victory.

The vacation rental tech company sued Miami Beach in late 2018 after the city commission passed new regulations requiring Airbnb to display the resort tax account and business tax receipt numbers for each listing by their hosts within zones in Miami Beach that allow short-term rentals.

In its complaint, Airbnb alleged that the disclosure requirement would force the company to enforce the city’s rules in violation of federal laws.

In a statement, Airbnb said the settlement represents a “positive breakthrough” for the future of short-term rentals in Miami Beach.

“We welcome today’s settlement as a win-win for Airbnb and our Miami Beach hosts as we move towards a constructive and collaborative working relationship with the city,” the statement said. “It is a win for our hosts who will have certainty as to the rules and a win for the city when it comes to having a regulatory framework that will work.”

Meanwhile, Miami Beach officials put out a statement claiming Airbnb recognized it was “going to unequivocally lose” a frivolous lawsuit, and that the company agreed to pay the city $380,000 in attorney fees. “This is a major win for the city of Miami Beach,” said Mayor Dan Gelber in the statement. “Airbnb will be required to comply with our ordinance and not be permitted to violate the rights of our residents.”

When the city passed new regulations last September, Airbnb believed that it was exempted because the company used “geofencing,” which prevents hosts from posting listings for homes in neighborhoods where short-term rentals are prohibited. In December, city officials informed Airbnb that the exemption did not apply to the company.

Under the settlement, Airbnb will now provide mandatory fields for hosts to fill out their business and resort tax information that the city will have to verify on its own. Airbnb will also not allow any listings that do not include the tax numbers. Airbnb and other home-sharing platforms that fail to provide the business and resort tax information face fines of $1,000 for the first offense and up to $5,000 for repeated violations.

According to Airbnb, hosts in Miami-Dade County earned a combined $204 million in income and delivered $10 million in bed taxes in 2018. Miami Beach imposes the county’s highest fines, as much as $20,000 for each offense, against property owners that operate illegal short-term rentals.

Historic preservation board rejects Blue Road’s plans for South Beach hotel

“We’re trying to save the historic district, not block or restrict anything”: Jack Finglass

Marcelo Tenenbaum and Jorge Savloff with the current building next to a rendering of the project

Marcelo Tenenbaum and Jorge Savloff with the current building next to a rendering of the project

Blue Road’s plans to convert a 34-unit South Beach apartment building into a 116-room hotel hit a snag after the project failed to get the minimum votes needed from the Miami Beach Historic Preservation Board.

The board voted 4 to 3 this week to approve an amended version of Blue Road’s plans to turn the 61-year-old Park Terrace Apartments at 355 19th Street into the more contemporary Park Avenue Hotel.

However, because the building falls into a historic district, Blue Road needed five affirmative votes from the historic preservation board to obtain the demolition permits needed to move forward. Following the vote, the board “continued” the item until September 9th.

It’s the second time the project has been continued. The board previously continued the project at its May 14 hearing after board members expressed another set of concerns over the proposed hotel’s design.

“They have to do their job. We have to do our work. We will find a compromise,” Marcelo Tenenbaum, a principal of Blue Door, told The Real Deal after the vote.
The project’s architect, Luis Revuelta of Revuelta Architecture International, admitted he was surprised.

“I think we came today with a high level of confidence that we were going to get approved,” Revuelta said.

But the three dissenting board members — Nancy Liebman, Jack Finglass, and Kirk Paskal — expressed concern that not enough of the original 1951 post-World War II structure was being preserved or utilized in the new hotel’s design. Under the project’s latest plans, 70 percent of the original building would be demolished.

“This is something I would expect from a more, non-historic district,” Paskal said. “A way to pay homage to something by leaving a little piece.”

Tenenbaum and Blue Road co-principal Jorge Savloff paid $14.27 million for the two-story, 22,000-square-foot apartment building in March 2018. The structure is two blocks away from the newly renovated Miami Beach Convention Center as well as the site of a future 800-room Miami Beach Convention Center Hotel that will be co-developed by David Martin and Jackie Soffer.

Revuelta presented plans for a five-story 44,466 square foot complex that included a rooftop pool deck and two outside elevator towers. It was a smaller version than what was proposed in May, and now includes a garden courtyard instead of a below grade parking area. The remnants of the original apartment building would be transformed into a hotel lobby and gym.
Liebman disapproved of the design, saying that it didn’t belong in a historic district. She also ridiculed the notion that a 116-room hotel is “boutique” as Blue Road portrayed it. “This looks like a giant box,” Liebman said.

Blue Road’s attorney, Alfredo Gonzalez, insisted that a hotel needs at least 100 rooms to “make it in today’s market.”

“A boutique hotel has to have 100 rooms?” Liebman said while rolling her eyes. “Only in Miami Beach. Save it. I can’t support this today or tomorrow.”

After the Liebman-Finglass-Paskal side won, Reveulta asked for instructions. Finglass replied that the developer should strive to use more of what’s already present. “You’ve got a huge historic piece over here. Make use of it,” Finglass told Revuelta, later adding: “We’re trying to save the historic district, not block or restrict anything. Use what you’ve got to make the district matter.”

Revuelta told TRD that he tried to address the issues raised during the May 14 meeting. “I thought we had done everything possible to react to staff and board comment,” he said, “and there is no way we can make this only two stories. It kills the deal.”

“We need a bigger scale to address food and beverage, to address operations,” Tenenbaum further explained.

Nevertheless, Tenenbaum is determined to solve “the conflict of different ideas” and come up with a design that works. “We will be back in September and we will try to do some adjustments and, hopefully, they will approve.”

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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