Menin Hospitality’s Byron Carlyle Theater redevelopment vote shelved until February

Rendering of Byron Carlyle Cultural Center, with Matis Cohen, Jared Galbut and Keith Menin (Miami Beach City Commission)

Rendering of Byron Carlyle Cultural Center, with Matis Cohen, Jared Galbut and Keith Menin (Miami Beach City Commission)

Miami Beach delayed until February a vote on Menin Hospitality and its partners’ plan to redevelop the Byron Carlyle Theater in North Beach.

The Miami Beach City Commission opted not to vote on a proposal by Menin Hospitality and KGTC, LLC to replace the 52-year-old, city-owned Byron Carlyle with a 125-foot-tall theater complex with 151 workforce units.

Assistant City Manager Eric Carpenter told the mayor and six commissioners Wednesday evening that the city needed more time. “We do think this proposal has some merit and we do think it has potential, [but] we do not have the financial analysis for this project yet,” Carpenter said.

The city bought the theater in 2001 for $1.7 million, and it served as a movie house for the non-profit O Cinema for five years until the city’s building department deemed it an unsafe building in July 2019. Six months prior to its closure, the city issued a request for proposals for bids to redevelop the theater into a “mixed-use project with a cultural component.”

On Aug. 3, Menin Hospitality and KGTC, LLC became the de facto winning bidders to redevelop the Byron Carlyle after Pacific Star Capital withdrew its proposal to transform the circa-1968 movie theater into a 11-story mixed-use hotel building.

Menin Hospitality is run by nightlife entrepreneurs Keith Menin and Jared Galbut, nephews of Crescent Heights co-founder Russell Galbut. KGTC LLC is owned by developer Matis Cohen and Galbut’s daughter, Marisa Galbut.

According to the latest term sheet, Menin Hospitality and KGTC are proposing to construct a new Byron Carlyle Cultural Center with a 10,500-square-foot theater, 9,000 square feet of ground-floor retail, 129 one-bedroom units, and 22 two-bedroom units at its own expense, in exchange for a 99-year lease, and a $350,000 contribution from the city for environmental remediation. And although city regulations require 200 parking spaces for a theater, the developers want all parking requirements waived.

The proposed development agreement would also require that apartments be reserved for workforce housing for just 30 years of the 99-year lease, with 80 percent of the units reserved for households making 140 percent of the county’s area median income, or about $89,600 a year.

In addition, the developers want to collect all the rent from the cultural center’s retail and apartments, and pay the city a ground rent of $1 a year.

However, Jared Galbut said the developers will pay property taxes on the property, which he estimated to be $44 million a year. Galbut emphasized that he and his partners will be taking the risk since they intend to finance the project with private equity.

“We will build the city an amazing cultural center that will easily be a hub for the community,” Galbut said.

The new Byron Carlyle will be constructed within the North Beach Town Center, a 10-block area that’s slated to be redeveloped into a densely packed region of hotels, apartments, and retail. Across the street from the theater, KGTC LLC is building a 22-story apartment complex with microunits and retail called 72nd and Park. Also within Town Center, Pacific Star Capital is proposing to build a Target-anchored shopping center.

Cohen told commissioners that parking isn’t needed at the Byron Carlyle Cultural Center because a 700-space garage will be constructed within the Town Center. Plus, Cohen said, “Town Center was created as a compact urban area that would prioritize the pedestrian instead of the car.”

Miami Beach Mayor Dan Gelber questioned the terms of the deal. Gelber was sure the city could probably outright sell the Byron Carlyle for $5 million to a private developer if it wanted to. And, after consulting with the operators of O Cinema and the Miami Light Project, Gelber felt that the theater portion needed to be larger than 10,500 square feet. “The primary goal for this, without question, was to lever North Beach as a world-class cultural institution,” Gelber said.

The city administration, meanwhile, felt that more apartment units should be affordable for people making less than $89,600 a year. In a memo to the mayor and commissioners, Miami Beach City Manager Jimmy Morales stated that the annual median area income in Miami-Dade County is $59,100. But, as of 2019, North Beach’s median household income was $43,439, and 70.8 percent of North Beach households make below $75,000 a year.

“The administration recognizes that the developer deserves credit for proposing to introduce workforce housing in North Beach, but the proposed tenant income mix reflects above-market rates for North Beach, an area where 20.1 percent of individuals are categorized by the U.S. Census Bureau as below the poverty level,” Morales wrote.

Miami Beach residents calling into the virtual meeting had mixed opinions on the project. Some supported the Menin Hospitality-led proposal, but others insisted that the city should use bond money, grants and donations to renovate the theater and operate it itself, rather than allow developers to replace it with apartments. Kristen Rosen Gonzalez, a former Miami Beach commissioner, denounced Gelber and commissioners David Richardson and Ricky Arriola as cheerleaders for the developers with “matching pom poms.”

“We can raise the money and renovate it…. Look at the Colony Theater,” Rosen Gonzalez said. “The entire deal does not pass the smell test.”

Gelber, though, feared that the Byron Carlyle could end up like the Coconut Grove Theater in Miami and the Roosevelt Theater in Mid-Beach’s 41st Street — empty and derelict for decades — if the city tries to redevelop the property itself. “I don’t want to spend five or six years on a project, have it fall apart, and end up starting all over again,” Gelber said.

Commissioner Arriola suggested that the city pass the resolution now and negotiate a better deal later, stressing that it would cost the city more than $3 million to get the current Byron Carlyle up to code. “If we don’t do this project, what is our alternative?” he asked.

But Gelber said he agreed with Carpenter and the rest of the administration that the deal still needs to be hammered out. “I am not going to support it today because it’s not fully baked,” Gelber said.

City Attorney Raul Aguila, who is slated to become Miami Beach’s interim city manager after Morales resigns on Friday, said he will try to bring a new deal to the commission by Feb. 24. The city will also retain the services of an independent appraiser to determine the true value of the Byron Carlyle.

Russell Galbut’s Crescent Heights wants a rooftop movie theater at 1212 Lincoln project

Rendering of Rooftop Cinema Club at 1212 Lincoln and Russell Galbut

Rendering of Rooftop Cinema Club at 1212 Lincoln and Russell Galbut

Russell Galbut’s Crescent Heights wants to open an outdoor rooftop movie theater at its 1212 Lincoln Road project on Alton Road in Miami Beach.

Miami Beach’s Land Use and Sustainability Committee on Wednesday moved to have the Miami Beach City Commission vote on a proposal next Wednesday that would allow rooftop movie theaters along Alton Road’s commercial corridor between 14th Street and the Collins Canal. The committee did not offer a recommendation.

The zoning rule, if approved, would allow outdoor movie venues with a capacity of 250 to operate from 5 p.m. to midnight on weekdays and 5 p.m. to 1 a.m. on weekends.

Gerry Cottle Jr., founder of the Rooftop Cinema Club, says his company is interested in making its Florida debut at 1212 Lincoln, on the 1600 block of Alton Road. The five-story mixed-use project is expected to include a citizenM hotel.

Rooftop Cinema already has three venues in London, three in California, one in New York and one in Houston. It’s premise is to show classic movies in an outdoor setting within an urban environment. Customers are given headphones and watch movies on a large screen. They are also served cocktails and food, Cottle told commissioners.

Cottle said the operation is adaptable to the social distancing required during the Covid-19 pandemic. “Thinking creatively, this is the kind of outdoor activity, with social distancing, that will be able to move forward,” he said.

However, the proposal met with opposition from residents. Eight West Avenue area activists called into the committee’s virtual meeting to oppose the item, saying they feared that the alcohol-serving venue will cause late night noise, light pollution, and could evolve into an outdoor party venue.

Commissioner Ricky Arriola endorsed the concept, adding that rejecting it could send a negative message to any businesses and developers wishing to invest in Miami Beach.

“I don’t think we want to send a signal to the business community that they will have a [tough time] if a few people object,” Arriola said. “This is something that benefits the entire city. We’re in great jeopardy of losing Regal Cinema [on Lincoln Road]. A lot of movie chains filed for bankruptcy. This might be the only place to see a movie.”

Nearby residents also complained that too many variances were already granted to Crescent Heights’ 1212 Lincoln project.

“The building has already encroached on us. We already have…. issues with lights at [1212 Lincoln’s] garage. The air conditioning faces the residential area,” said Mark Lacerda, a resident of the 1615 West Avenue condo building. “We are already suffering…. We don’t want any additional variances being added.”

Indeed, the mixed-use hotel, retail, and parking garage building is already allowed to have “entertainment venues” on the ground floor and alcohol-serving restaurants on the rooftop.

Galbut’s daughter, Marisa Galbut, said she’s more than willing to “work with city staff” to create a better ordinance, but insisted that stopping this project will harm the local business community. “The community is already hurt and will be hurt even more [if this is rejected],” Galbut said, stressing that the proposed ordinance still has to be heard by the Miami Beach Planning Board.

Commissioner Mark Samuelian said the item “still has a long way to go before being a final ordinance.” And commissioner Michael Gongora agreed. “What is [being proposed] right now will not have my vote,” he said.

SoftBank brings on Marcelo Claure to help turn around WeWork, Hallandale Beach project scores $100M loan: 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.

SoftBank is bringing on Sprint’s former CEO to help turn around WeWork. SoftBank head Masayoshi Son has asked Marcelo Claure of Miami to take a more hands-on role at the company after the recent ouster of co-founder and CEO Adam Neumann. His exact role has not been specified, but he would focus on opportunities to cut costs and increase revenues. Senior WeWork executives Sebastian Gunningham and Artie Minson have been appointed co-CEOs of the company.  [Bloomberg]

Developer Ari Pearl closed on a $100 million loan to develop the first phase of a major mixed-use project in Hallandale Beach. Pearl’s PPG Development and Michael Herman’s Premium Capital secured the financing from the Related Cos.’ Related Fund Management. The financing will be used to build the 250-unit branded luxury apartment component of SLS Resort Residence & Marina Hallandale Beach. [TRD]

The Naples-based Collier family is replacing the former ABC Carpet & Home store in Delray Beach with an upscale storage and maintenance club for car collectors. Family-owned Collier Land Holdings Limited has started building a facility called Collier Car Club inside the former ABC Carpet & Home store on Congress Avenue – well known for its exterior mural, a faux architectural finish visible from I-95. The store closed last year. [TRD]

Forever 21 has filed for bankruptcy. It has landed $75 million in new capital from TPG Sixth Street Partners and $275 million in financing from lenders with JPMorgan Chase as the agent. The store had been one of the largest mall tenants still standing, so the filing could spell trouble for major mall owners like Simon Property Group and Brookfield Property Partners. It plans to close up to 350 stores overall but will keep operating its website and hundreds of stores in the United States. [Bloomberg, NYT]

A total of 125 condos sold for $49 million in Miami-Dade County last week. That’s on par with the 126 units that sold for a combined $45 million the previous week. Condos last week sold for an average price of about $395,000 or $283 per square foot. [TRD

Blackstone is doubling down on its e-commerce bet with another multibillion dollar industrial portfolio deal. The company is buying Colony Capital’s national warehouse portfolio for $5.9 billion, according to the Wall Street Journal. The portfolio Colony sold to Blackstone spans 60 million square feet across 465 warehouses in 26 markets. Areas of strong concentration include northern New Jersey, California, Florida, Dallas and Atlanta. [TRD

The Galbut family and developer Matis Cohen are proposing a 22-story tower in North Beach. The project, called 72nd and Park, will be reviewed by the Miami Beach Design Review Board on Wednesday. Arquitectonica is designing the project, with 283 multifamily units, about 12,500 square feet of retail and restaurant space, amenities and parking. It would have 125 micro units, smaller than 550 square feet. [SFBJ]

Broward’s “taxi king” and real estate investor Jesse Gaddis died at 87. Gaddis created the Yellow Cab company in Broward in the early 1960s, and later invested in real estate development and lending, among other industries, according to the Sun Sentinel. He was among the first investors in the Flagler Village neighborhood of downtown Fort Lauderdale. Gaddis died on Friday of cancer. [Sun Sentinel]

(Illustration by Andrew Colin Beck)

(Illustration by Andrew Colin Beck)

How mobile homes became a billion-dollar, recession-proof industry. The immobility of most mobile and manufactured homes has caught the attention of private equity firms in a big way. With most low-income renters unable to quickly up and move their properties, institutional real estate investors increasingly see that as a surefire bet — especially in a major downturn. [TRD]

Compiled by Katherine Kallergis

Russell Galbut closes on a missing piece of his Edgewater assemblage

Company managed by Marsha Soffer sold the property

Broker Jamie Maniscalco and Russell Galbut with 2901 Northeast Second Avenue

Broker Jamie Maniscalco and Russell Galbut with 2901 Northeast Second Avenue

Developer Russell Galbut’s Crescent Heights closed on a corner piece of his assemblage in an Opportunity Zone in Miami’s Edgewater neighborhood, The Real Deal has learned.

The Miami-based firm, which is planning a major mixed-use project on the land assemblage, paid $4.9 million for the 10,452-square-foot property at 2901 Northeast Second Avenue, according to a source familiar with the deal. It includes a 3,600-square-foot retail building.

That brings the company’s total amount spent on the two blocks between Northeast 29th to 32nd streets and between Northeast Second Avenue and Biscayne Boulevard to over $37 million, according to property records.

Wynwood NW 24 LLC, a company controlled by Marsha Soffer of the prominent Aventura family, sold the latest piece. Jamie Rose Maniscalco of Keyes Commercial, who brokered the deal, declined to comment. She also represented the sellers in two additional sales to Crescent Heights earlier this year.

Crescent Heights is still missing two parcels on Second Avenue and three along 29th Street. Records reveal that Daddy’s Jewelry Store owns 3025 and 3033 Northeast Second Avenue. Nearby, the under-construction Chabad at Midtown and the property next door, as well as the retail building at 2900 Biscayne Boulevard, are also not owned by Crescent Heights.

Earlier this year, Crescent Heights requested the city redraw the property lines at 3000 and 3050 Biscayne Boulevard, revealing plans for the site. (One of the buildings currently on the property is home to The Real Deal’s office.) Crescent Heights plans to build 800 residential units and over 600,000 square feet of retail and office space on the overall assemblage.

Galbut could not immediately be reached for comment.

Galbut is a big proponent of the Opportunity Zones legislation. The federal program gives tax incentives to developers and investors who invest in distressed areas throughout the country.

In an interview with TRD earlier this year, Galbut called it “some of the smartest legislation that has come out of Congress in a long time.

“We’re buying properties in all markets in Opportunity Zones,” he said. “That is huge in asset planning and multigenerational thinking.”

Crescent Heights plans major mixed-use project in Edgewater

Crescent Heights plans major mixed-use project in Edgewater

Replatting calls for grocery store, office, retail and residential on 5-acre site

A previous rendering of the proposed project and Russell Galbut

Crescent Heights is making moves in Edgewater.

The developer requested that the city replat the properties at 3000 and 3050 Biscayne Boulevard in Miami to build a major mixed-use project on more than 5 acres of land.

A replat submitted to the city of Miami reveals plans for up to 754 residential units, nearly 269,000 square feet of office space, about 17,000 square feet of retail space, a 38,450-square-foot grocery store, parking and fitness space, according to the Next Miami.

The 10-story, 90,480 square-foot office building at 3050 Biscayne Boulevard, on the southwest corner of 31st Street and Biscayne Boulevard, will remain. The Real Deal South Florida is a tenant of the building.

Crescent Heights’ co-founder Russell Galbut could not immediately be reached for comment.

The development company, based in Miami, has offices in Chicago, New York, Los Angeles and San Francisco. Crescent Heights has assembled a number of properties on Biscayne, including its headquarters at 2200 Biscayne Boulevard.

Records show 3050 Biscayne Properties LLC paid $8 million in 2010 for the property at 3050 Biscayne Boulevard and the lot immediately north, and 3000 Property LLC acquired the office building next door in 2014 for $19.2 million. On Northeast 32nd Street and Biscayne, a Crescent Heights affiliate paid $3.6 million for 3180 Biscayne Boulevard in 2017.

If the company moves forward with development on the 3000-3180 Biscayne Boulevard site, the project could add hundreds of residential units to the area, including in the neighboring Midtown Miami area and on the opposite side of Biscayne Boulevard. Mill Creek Residential recently closed on the site on Northeast 21st Street, just east of the boulevard, for a mixed-use rental tower, the second project the apartment developer has within blocks of each other.

In October, Urbanica Management acquired the site at 3001 Biscayne Boulevard for a hotel with retail and restaurant space.

In Miami Beach, Crescent Heights recently secured approval to build a luxury residential tower at 500 Alton Road.

New York firm proposes twin towers on downtown Miami site

Renderings of the 54 West Flagler project
A New York firm has just put forward plans to build two 43-story residential towers on a downtown Miami parking lot owned by Russell Galbut and Andrew Resnick.
As first reported by the Next Miami, the proposal includes two residential towers with ground-floor retail space. They would house 391 units and a robotic parking garage with 185 spaces, all of which would be built on the 18,000-square-foot parking lot at 54 West Flagler Street.
Alliance Private Capital Group, a Brooklyn-based real estate company headed by Mike Kohn, is listed as the developer.
The commercial real estate advisory firm is not a traditional developer, instead acting as an “intermediary,” according to its website. One of its more recent deals in New York, for instance, was the purchase and $70 million resale of a property after filing development plans.
The downtown Miami land in question is owned by a limited liability company called Gutierrez Resnick Properties. State records show the company is managed by developer Russell Galbut, who is currently heavily involved in developing projects on Miami Beach’s Alton Road, and real estate mogul Andrew Resnick.
Gutierrez Resnick Properties paid $5.5 million for the land in 2007. At the time, the company also listed Armando Gutierrez Jr. as a managing member, records show.
Gutierrez is a real estate developer and the son of prominent South Florida political figure Armando Gutierrez Sr. His father took his place in Gutierrez Resnick Properties in 2010, and both were later removed from the corporation’s record in 2011. Resnick added Galbut, who heads development firm Crescent Heights, as a manager that same year. [The Next Miami] — Sean Stewart-Muniz

Source: The Real Deal Miami