Monroe County seeks $150M to combat sea level rise, Bloomberg’s record may polarize voters

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Noah Bachow and a rendering of Flagler Creative

Developer Noah Bachow and a rendering of Flagler Creative

Fort Lauderdale urges redesign of Flagler Village project that features co-living. The city’s mayor thinks downtown area architecture is too boxy, and his desire for better design may lead to tweaks in the look of high-rise developments, starting with Flagler Creative, a 30-story rental apartment development with 316 units including 100 co-living units in the Flagler Village area just north of downtown. [TRD]

English singer Craig David sells Miami Beach condo. David sold the 1,895-square-foot tower suite 5 at the Mondrian South Beach for $4.3 million, or $2,269 per square foot. Property records show the unit last sold in 2009 for $4.68 million, which means David sold it at a loss. [TRD]

Elizabeth Warren calls WeWork an “example of a rigged and corrupt system.” The democratic presidential candidate pointed to CEO Adam Neumann’s “$1.7 billion golden parachute” on Twitter on Friday, as the co-working firm plans to lay off 2,400 employees, or about a fifth of its headcount worldwide. SoftBank’s $3 billion tender offer to WeWork is set to launch this week, following weeks of delays, and Neumann is set to net up to $970 million in the process. [BI]

Monty’s Raw Bar

Monty’s Raw Bar

Suntex Marinas is trying to evict Monty’s from Miami Beach property. Suntex is alleging the seafood restaurant has health code violations, dated menu items, and failed to pay its rent. Monty’s Sunset Miami Beach claims the landlord is just being crabby and is trying to find a way to take over the lease of the property, according to the Daily Business Review. [TRD]

Developer Ian Bruce Eichner slashed the price of his Continuum South Beach penthouse as he mulls his next project in Miami. Eichner cut the price of the 11,031-square-foot, seven-bedroom unit to $39.9 million. That’s 20 percent below the original $50 million ask. [TRD]

After WeWork, investors are taking a closer look at SoftBank’s accounting. SoftBank has participated in fundraising rounds that have added more than $150 billion in value to private companies, a Bloomberg analysis found. Masayoshi Son’s firm can book a profit by buying shares in a firm and then investing again — resulting in gains that insiders say is “meaningless,” although current accounting rules offer no better alternatives. [Bloomberg]

Florida’s most vulnerable county to sea level rise is asking for $150M to keep itself dry. Monroe County is seeking a portion of the $633 million Florida’s Department of Economic Opportunity received from U.S. Department of Housing and Urban Development to raise roads and elevate buildings and homes, according to the Miami Herald. Sea levels in the Florida Keys are predicted to rise two feet by 2060. [Miami Herald]

Michael Bloomberg (Credit: Getty Images, iStock)

Love, hate, and real estate: Bloomberg’s record may polarize voters. As mayor from 2002 through 2013, Bloomberg’s pro-development policies were credited by business interests for powering New York City’s comeback and denounced by critics for increasing homelessness and inequality. Even decisions that seemed moderate or progressive at the time no longer do in the context of today’s politics, sources said. [TRD]

Fritz Wolff (Credit: Katerra)

SoftBank-backed Katerra co-founder leaves company’s board. Fritz Wolff, who also heads his family’s eponymous private equity firm, the Wolff Company, is no longer a board member but “maintains an advisory role as a co-founder of Katerra,” a spokesperson said. Like other SoftBank investments, Katerra has been facing heightened scrutiny in the wake of WeWork’s botched initial public offering. [TRD]

Compiled by Katherine Kallergis

Glaser and partners propose 15-acre “West of West” district in South Beach

Glaser and partners propose 15-acre “West of West” district in South Beach

Overlay district is bordered by Bay and Alton roads and 13th and 16th streets

A rendering of the mixed-use project

Developer Todd Michael Glaser and a group of partners are proposing a massive mixed-use project with pocket parks, elevated courtyards, residential and commercial space in the heart of South Beach.

Glaser, Jarrett and Sean Posner, Fred Carlton and Charlie Ratner are the developers behind the West of West overlay district. Domo Architecture + Design presented it Wednesday to the Miami Beach commission, which sent the project to the city’s Land Use boards as early as March. The proposal covers more than 15 acres bordered by Bay and Alton roads and 13th and 16th streets.

An aerial rendering fo the project

Along with his partners, Glaser has spent about $10 million acquiring nine properties in the district. In all, he estimates there are 140 properties. The area is zoned for buildings as tall as 50 feet, and the West of West district would not exceed that, but the proposal does seek reduced or eliminated setbacks.

Glaser said sea level rise and the increasing cost of flood insurance could drive property owners to sell to him, his partners or other developers. Glaser said that on the homes he owns in the area, flood insurance has gone up from $1,200 to $5,000 a year over the past two years.

At the commission meeting, Domo principals Robert Moehring said “soon these owners will not be able to afford the flood insurance.”

The elevated project calls for live/work lofts, restaurants, retailers, green and blue roofs and more, taking in climate change recommendations from organizations like the Urban Land Institute.

Commissioners encouraged the group to work with residents and neighboring areas before the district goes to Land Use.

A rendering of the projects proposed layout

Glaser called the project “an opportunity to bring back Miami Beach,” which he said has lost visitors and retailers to trendy neighborhoods like Wynwood and the Miami Design District, both on the mainland.

“It’s 15-and-a-half acres of non-historic properties, which is going to be under water in the next 10 years,” Glaser said, later adding that “this is the first time that Miami Beach can have a cohesive area.”

Civic leaders talk sea-level rise and SoFla businesses: panel

Flooding in Miami Beach
South Florida is ahead of the national curve when it comes to protecting against sea-level rise, according to a panel of civic leaders assembled Friday morning, but much more still needs to happen for the region to consider itself safe.
The eight-person panel, hosted by the Greater Miami Chamber of Commerce in the ballroom of downtown Miami’s Doubletree by Hilton hotel, spoke to a crowd of more than 100 local business leaders about the impacts of sea-level rise, and what action the community should take to protect itself for the future.
“The key challenge from the real estate perspective is we need to align all of our interests,” said panelist Quinn Eddins, director of research for CBRE’s Florida division. “Individually, developers and investors don’t have the incentive to act unilaterally.”
From the perspective of individual property owners, one major issue is the cost associated with protecting a building against surge waters, he said. If a buyer or builder were to factor in the cost of putting a structure on a 10-foot podium, Eddins said, they are likely to be outbid by competitors who keep their focus on the short term.
But while the cost might be prohibitive, concern has started brewing about the possible damages of rising tides. A flood map released in February by listing service E Miami Condos showed that if waters rise just two feet, more than three dozen existing condo buildings in both the mainland and Miami Beach would flood.
“The commercial real estate industry is starting to take climate change seriously,” he said. That concern comes into play when comparing Miami to other major U.S. metropolitan areas like New York or San Francisco, which compete for investment activity — and are all in the same boat when it comes to risk of water damage.
Miami Beach city officials have already started taking action to combat sea-level rise, according to Elizabeth Wheaton, director of the city’s Environment & Sustainability Department.
The city has started a $400 million program to raise street heights and install water pumps, especially in Sunset Harbour, one of the barrier island’s most flood-prone areas. The city has also passed a new standard that requires all new construction above 7,000 square feet to be Gold Leed Certified — or opt out via a fee, she said. The LEED Certification is a federal program that measures buildings on their resource efficiency and green footprint, with gold being the second-highest award.
And while climate change has yet to become a major discussion point for the day-to-day business of a real estate agent, that will likely change in the near future, said attendee Ron Shuffield, CEO of brokerage EWM.
His firm already briefs clientele about property elevations when relevant, and he said those briefings will beef up when the issue becomes more pressing. For now, clients — second home buyers in particular — don’t really ask about sea-level rise, he said.
“I’ve spoken to a number of developers and investors, and they say ‘Miami has a lot of characteristics we look for… but we have concerns about resilience,’” Eddins said. “It’s in all of our best interest to mitigate [flood risk].”

Source: The Real Deal Miami