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