Aby Rosen Under Contract to Sell Lincoln Road Commercial Building for $14M

Aby Rosen Under Contract to Sell Lincoln Road Commercial Building for $14M

Aby Rosen, a well-known real estate investor, has signed a contract to sell his commercial building on Lincoln Road, Miami Beach, for $13.6 million. This sale could address his debt issues related to the partially vacant building.

Aby Rosen is selling his commercial building on Lincoln Road for $13.6 million to Tricera Capital, led by Ben Mandell. Tricera’s partners in this purchase have not been disclosed.

In January, Wilmington Trust sued Rosen’s entity for defaulting on payments for a $17 million mortgage loan, claiming $15.1 million is owed.

The one-story building, built in 1945, is located at 318-334 Lincoln Road and has a 49.7% occupancy rate. Its tenants include Mr. Jones nightclub, Sweet Life Gelato, and South Beach Munchies Latin Cafe.

The $13.6 million sale price represents a 33.7% discount from RFR’s purchase price of $20.5 million in 2019. The sale will not fully cover the $15.1 million debt, and it is unclear how the $1.5 million shortfall will be managed.

Tricera Capital, an investment firm focused on commercial and mixed-use real estate, has acquired approximately 30 properties with a total value of $1 billion.

Rosen faces larger financial problems in New York, including foreclosure on his property at 522 Fifth Avenue over a $224 million loan and another $80 million debt in Gowanus.

Despite his issues, Rosen has development plans in South Florida, including a skyscraper project in downtown Miami featuring a hotel, residential units, and a garage.

The commercial real estate market in South Florida has seen an increase in unpaid debt subject to foreclosure, reaching $226.3 million this year, a 108% increase from the second half of last year.

The sale of Rosen’s building on Lincoln Road could alleviate some of his financial burden, though it does not resolve all his debt problems. Despite his challenges, Rosen continues with his development plans in Miami, reflecting the volatility and opportunities in South Florida’s real estate market.

Source: Lidia Dinkova, The Real Deal.

Shoma Group Proposes 404-Unit Rental Tower in Kendall Amid Live Local Act Surge

Shoma Group Proposes 404-Unit Rental Tower in Kendall Amid Live Local Act Surge

Amid the surge in project proposals under the Live Local Act, Shoma Group has announced plans for a significant development in Kendall. The Coral Gables-based firm, headed by Masoud and Stephanie Shojaee, seeks to construct a 31-story residential tower featuring workforce housing.

Project Overview

  • Location: 9525 North Kendall Drive, unincorporated Miami-Dade County.
  • Details: 404 residential units, 140,000 square feet of commercial space.
  • Workforce Housing: At least 162 units to be priced for workforce housing.

Development Specifics The proposed tower will feature:

  • 89 studios
  • 121 one-bedroom apartments
  • 157 two-bedroom apartments
  • 37 three-bedroom units

Shoma Group aims to develop on a 1.9-acre site currently holding three two-story buildings, including a sports bar and offices. The ownership of the site is under an entity led by Jeffrey Fiorentino and Brian Bell.

Live Local Act Impact The Live Local Act, enacted last year, incentivizes developers to build larger projects with the provision of affordable housing. Shoma’s project adheres to these guidelines, which stipulate at least 40% of units must be designated for households earning no more than 120% of the area median income.

Pre-Application Stage Shoma Group has filed for a pre-application meeting with Miami-Dade County staff. This step is preliminary and intended to gather feedback before submitting official proposals.

Shoma Group’s new project in Kendall reflects the growing trend of leveraging the Live Local Act to develop substantial housing projects. As proposals proliferate, Shoma’s 404-unit tower aims to contribute significantly to workforce housing in Miami-Dade County.

Source Lidia Dinkova, The Real Deal

South Florida Commercial Real Estate Boom Continues with Major Acquisition

South Florida Commercial Real Estate Boom Continues with Major Acquisition

In a continuation of their aggressive acquisition strategy, a partnership between three prominent South Florida real estate firms has purchased a significant waterfront mixed-use property in Fort Lauderdale. This strategic acquisition, valued at $48.5 million, signals ongoing growth and redevelopment in the region.

Key Points of the Acquisition:

  1. The Property and Acquisition Details:
    • Location: The Quay at 17th Street, 1515 Southeast 17th Street, Fort Lauderdale.
    • Property Size: 7 acres.
    • Components: Shopping center, two-story office building, six-yacht marina.
    • Acquisition Price: $48.5 million.
    • Buyers: Coconut Grove-based Related Group, Aventura-based BH Group, and Boca Raton-based Pebb Enterprises.
    • Seller: Affiliate of Miami-based Mast Capital and Boston-based AEW Capital Management.
    • Brokerage: JLL, led by Danny Finkle and Maurice Habif.
  2. Future Development Plans:
    • The partnership plans to redevelop the site with a new mixed-use project.
    • Project Approvals: The city of Fort Lauderdale has approved 361 residential units and 12,000 square feet of retail and restaurants.
    • Details Unveiling: Specific project details to be announced in the coming months.
  3. Financing:
    • Amerant Bank provided financing for the acquisition.
    • The partnership has chosen not to disclose the loan amount.
  4. Historical Context:
    • The Quay at 17th Street was completed in 1988 and acquired by Mast and AEW in 2019 for $43 million.
    • At the time of the recent sale, the property was 93% leased with tenants like Boatyard, Chipotle, the U.S. Postal Service, Azimut Benetti Yachts, and Sanlorenzo Yachts.
  5. Recent Collaborative Ventures:
    • In September, the same firms acquired Ocean Walk in Riviera Beach’s Singer Island for $19.2 million.
    • They also own the Office Depot campus in Boca Raton, purchased for $104 million in April of last year, with plans to redevelop it into a mixed-use project.

The recent acquisition by Related Group, BH Group, and Pebb Enterprises highlights the continued momentum in South Florida’s commercial real estate market. The redevelopment plans for The Quay at 17th Street reflect the region’s dynamic growth and the strategic vision of these firms in shaping the future landscape of Fort Lauderdale.

Source: Francisco Alvarado, The Real Deal

Live Local Act Amendments Set to Boost Workforce Housing in South Florida

Live Local Act Amendments Set to Boost Workforce Housing in South Florida

Governor Ron DeSantis has signed amendments to the Live Local Act into law, aiming to address South Florida’s affordable housing crisis. This legislation, particularly significant in light of the pandemic-induced surge in rents and housing prices, introduces new incentives for developers to create more workforce housing units.

  • Pinnacle 441 Demand Highlights Housing Crisis
    • A “coming soon” sign for Pinnacle 441, an affordable housing project in Hollywood, drew over 21,000 applications for just 113 units, illustrating the severe shortage of affordable housing in the region.
  • Live Local Act Overview
    • The Live Local Act, enacted last year, allocated over $700 million in funding and provided tax and zoning incentives for developers who allocate units for residents earning up to 120 percent of the area median income (AMI).
  • Amendments to the Act
    • The recent amendments include property tax exemptions of up to 75 percent for mixed-income projects and up to 100 percent for fully workforce housing projects. Additionally, developers can increase floor area ratios and reduce parking requirements for projects near major transportation hubs.
  • Developer Reactions and Plans
    • Developers are analyzing the new amendments to determine their feasibility. Some, like Pinnacle, plan to use the tax incentives and increased density allowances to make market-rate deals work for the “missing middle” income bracket.
  • Impact on the Market
    • The amendments could potentially lead to the construction of hundreds or thousands of new workforce housing units, alleviating some of the housing pressures in South Florida. However, the higher cost of land in urban and waterfront areas might limit the effectiveness of these incentives.
  • Live Local in Action
    • Developers such as Asi Cymbal are already leveraging the property tax benefits for projects like Laguna Gardens in Miami Gardens, ensuring lower rents for residents. Similar strategies are being considered by developers in other areas like Fort Lauderdale and Wynwood.

The Live Local Act amendments are poised to significantly impact the availability of workforce housing in South Florida. By offering substantial tax incentives and zoning flexibility, the legislation encourages developers to create more affordable units, addressing the acute housing shortage in the region. As these changes take effect, they are expected to provide much-needed relief for many residents struggling to find affordable housing.

Source: Katherine Kallergis, The Real Deal

Aimco Prepares to List Hamilton Apartment Tower in Edgewater

Aimco Prepares to List Hamilton Apartment Tower in Edgewater

Aimco, a prominent real estate investment trust (REIT), is gearing up to list its waterfront Hamilton apartment tower in Edgewater, Miami. This move marks the REIT’s second major property to hit the market in Miami this year. The 28-story, 276-unit Hamilton, located at 555 Northeast 34th Street, will be listed for sale this quarter, as revealed in Aimco’s filings to the Securities and Exchange Commission.

Following the listing of a 4.3-acre waterfront site in Miami’s Brickell area in March, Aimco’s plan to sell the Hamilton is part of its strategic initiatives. The Brickell assemblage includes the Brickell Bay Office Tower and the adjacent Yacht Club Apartments, with a combined asking price of $650 million. Aimco aims to close on the sale of both properties by year-end if pricing and terms are acceptable.

The Hamilton, completed in 1984 by Carnival Cruise Line founder Ted Arison, underwent a significant renovation after Aimco purchased it in 2020 for $89.6 million. Despite facing challenges from longtime tenants over lease terminations in 2021, Aimco successfully completed the redevelopment project last year and leased up the tower at rates exceeding underwritten rents.

In addition to the Hamilton and Brickell properties, Aimco may consider offloading other assets in South Florida and Aurora, Colorado, according to its first-quarter earnings release. Aimco’s strategic capital allocation strategy involves maximizing value-add and risk-adjusted returns by potentially monetizing planned projects before construction begins.

Aimco’s diverse portfolio includes plans for a waterfront rental tower in Edgewater and a mixed-use project in Fort Lauderdale’s Flagler Village. The REIT also holds a minority ownership stake in a megaproject development site at 3333 Biscayne Boulevard in Edgewater, which might also be on the market.

As Aimco moves forward with its sales strategy, it emphasizes prudent allocation of net proceeds with a preference for returning capital to stockholders, as stated in its SEC filings.

Source: Lidia Dinkova from therealdeal.com

Rise of Short-Term Rental-Friendly Condos in Miami Sparks Concerns Amidst Housing Market Dynamics

Rise of Short-Term Rental-Friendly Condos in Miami Sparks Concerns Amidst Housing Market Dynamics

The burgeoning trend of short-term rental-friendly condominiums in Miami is reshaping the city’s housing landscape, prompting discussions about its implications for both buyers and developers. Amidst a backdrop of rising home prices and evolving market dynamics, stakeholders are navigating the challenges posed by this shift in housing preferences.

Key Points:

Dominance of Short-Term Rental Projects: A recent report by ISG highlights that over half of Miami’s upcoming condo developments are tailored to accommodate short-term rentals, reflecting developer responsiveness to robust buyer demand in this segment. The allure of steady sales and favorable financing conditions incentivizes developers to embrace this trend.
Impact on Traditional Condos: The proliferation of short-term rental-friendly condos has implications for the availability and affordability of traditional condominiums. While these properties offer a diverse range of price points, the majority of existing resale inventory comprises older units, presenting financing and maintenance challenges.
Concerns Raised by Industry Experts: Craig Studnicky, CEO of ISG World, voices concerns about the sustainability and appreciation potential of short-term rental projects. He advocates for greater emphasis on traditional condominium development to address market needs effectively.
Price Disparities: The pricing dynamics between short-term rental condos and traditional units further complicate the housing landscape. Despite calls for more traditional developments, luxury projects like the Aston Martin Residences underscore the allure of high-end offerings, raising questions about housing affordability.
Market Response: The Miami housing market’s trajectory prompts reflections on the type of housing being built and its broader societal implications. While policymakers commend housing developments, there is growing awareness of the need for a diverse range of housing options to address affordability concerns.
Industry Events: Against the backdrop of housing market shifts, events like the Formula One Miami Grand Prix serve as platforms for industry stakeholders to capitalize on sales opportunities and engage with prospective buyers.

The evolving dynamics in Miami’s housing market underscore the need for a balanced approach to development that considers both short-term rental-friendly condos and traditional housing options. As stakeholders navigate these changes, attention to affordability and market sustainability remains paramount.

Katherine Kallergis from therealdeal.com

7 U.S. Cities Defying Housing Market Malaise with Surging Price Growth

7 U.S. Cities Defying Housing Market Malaise with Surging Price Growth

While the housing market grapples with stagnation and fluctuating mortgage rates, certain U.S. cities are bucking the trend, experiencing robust home sales and remarkable price growth. These markets are characterized by a significant increase in demand and quick turnaround times for property listings.

Key Insights:

  • Price Growth Outpaces National Average: Realtor.com’s analysis reveals that while home prices across the nation saw only a marginal 2% rise in March, the hottest markets experienced a substantial 5.3% annual increase. This disparity underscores the resilience of these markets amid broader market challenges.
  • Regional Trends: The Northeast and Midwest regions dominate the list of hottest markets, comprising 13 and 7 metros, respectively. Cities like Manchester-Nashua, NH, and Rochester, NY, continue to lead in terms of housing market activity.
  • Cooling of Price Growth: Despite the overall price growth in hot markets, the pace has slowed compared to previous periods. This moderation in price growth aligns with a shrinking overall demand for these markets, signaling a potential shift in market dynamics.
  • Markets with Price Decline: Seven metros among the top 20 hottest markets witnessed a decline in median listing prices in March compared to the previous year. Areas like Bridgeport-Stamford, CT, and Norwich-New London, CT, experienced notable drops, offering some relief to prospective buyers.
  • Factors Contributing to Price Decline: The decline in prices in certain markets can be attributed to factors such as the availability of smaller homes and a decrease in price per square foot. These trends indicate a shift towards more affordable housing options.
  • Regional Disparities: The South and West regions have notably receded from the list of hottest markets, with fewer metros making the cut in recent months. This shift reflects a cooling off in once-red-hot Southern markets, allowing for market balance to take shape.

Amidst the broader housing market challenges, the resilience and dynamism of certain U.S. cities offer hope for both buyers and sellers. As price growth surges in these hot markets, buyers may find opportunities for investment and homeownership, while sellers stand to benefit from favorable market conditions.

Margaret Heidenry from realtor.com

Continuum Condo Closing Dominates Miami-Dade Weekly Sales

Continuum Condo Closing Dominates Miami-Dade Weekly Sales

Miami-Dade County’s condominium market witnessed a surge in sales and dollar volume over the past week, with a notable transaction at Continuum South Beach leading the pack. From April 15th to April 22nd, brokers finalized 160 condo sales totaling $156 million, reflecting a robust market performance.

Key Highlights:

  • Increased Sales Volume: Last week’s condo sales marked a significant uptick from the previous period, with a total volume of $156 million compared to $141 million.
  • Average Price and Price Per Square Foot: Despite the rise in sales volume, the average price for units sold decreased slightly to $977,219. However, the price per square foot saw an increase, reaching $651.
  • Top Sale at Continuum South Beach: Continuum’s South Tower units 1902 and 1903 emerged as the top sale, closing at $10.9 million. This transaction underscores the allure of luxury waterfront properties in Miami Beach.
  • Notable Transactions: Ritz-Carlton Residences unit 2905 in Sunny Isles Beach secured the second-highest closing at $6.7 million, reflecting the demand for upscale residences in premier locations.

Top 10 Sales Breakdown:

  • Most Expensive: Continuum South Beach, units 1902 and 1903 | Price: $10,850,000 | $4,228 psf | Listing Agents: Eddy Martinez and Roland Ortiz | Buyer’s Agent: Carlo Dipasquale
  • Least Expensive: Oceana Bal Harbour, unit 305 | Price: $3,100,000 | $1,819 psf | Listing Agents: Sheila Rojas and Timothy Allen | Buyer’s Agent: Timothy Allen
  • Highest Price Per Square Foot: Continuum South Beach, units 1902 & 1903 | Price: $10,850,000 | $4,228 psf | Listing Agents: Eddy Martinez and Roland Ortiz | Buyer’s Agent: Carlo Dipasquale
  • Lowest Price Per Square Foot: Bal Harbour Tower, unit 8E | Price: $3,100,000 | $960 psf | Listing Agent: Stuart Drossner | Buyer’s Agent: Stuart Drossner

The recent surge in Miami-Dade’s condominium market, exemplified by notable transactions like the one at Continuum South Beach, reflects ongoing demand for luxury residences in prime coastal areas. With a diverse range of properties available, buyers continue to seek out opportunities in Miami’s vibrant real estate landscape.

Source: Adam Farence from the real deal

5 Expert Moving Tips From a Seasoned Realtor

5 Expert Moving Tips From a Seasoned Realtor

With years of experience guiding families through the process of buying and selling homes, Realtor Krista Zobel from Lincoln, Nebraska, has honed a collection of invaluable moving tips. Drawing from her wealth of knowledge, she shares insights to help make transitions smoother and more manageable for her clients.

1. Opt for a DIY Approach to Maximize Control:
Zobel suggests going the do-it-yourself route for those looking to maintain control over their moving timeline and budget. Utilizing services like Penske Truck Rental offers reliability and flexibility, allowing movers to pack, load, and transport their belongings at their own pace.

2. Start Preparing Early and Declutter Before Listing:
Encouraging proactive preparation, Zobel advises beginning the sorting and decluttering process as soon as moving plans arise. Packing away non-essential items well in advance of listing a home helps create a more spacious and appealing environment for potential buyers.

3. Incorporate Breaks into the Moving Schedule:
Recognizing the physical and mental toll of moving, Zobel recommends incorporating breaks into the moving timeline to avoid burnout. Renting a moving truck for several days enables movers to load gradually, minimizing stress and fatigue during the transition.

4. Think Creatively for Moving Assistance:
Even with a DIY approach, Zobel emphasizes the value of seeking help when needed. From enlisting the support of off-duty firefighters for heavy lifting to rallying friends with the promise of pizza and drinks, creative solutions can ease the burden of moving day.

5. Take Time to Acknowledge Milestones:
Amidst the chaos of moving, Zobel emphasizes the importance of celebrating milestones along the way. By offering personalized closing gifts and encouraging clients to commemorate the transition, she underscores the significance of appreciating the journey.

With these expert tips in mind, navigating the moving process becomes more manageable and less daunting. Zobel’s insights not only streamline logistics but also foster a sense of appreciation for the milestones achieved throughout the transition to a new home.

Realtor.com Creative Studio by Margaret Heidenry

7 Cities with Abundant Listings Below $300K Amid High U.S. Home Prices

7 Cities with Abundant Listings Below $300K Amid High U.S. Home Prices

Despite soaring home prices and persistent mortgage rate challenges, a recent Realtor.com® report highlights seven cities where budget-conscious homebuyers can still find affordable options below $300,000. These cities span various regions across the United States and offer increased listing availability compared to the previous year, providing a glimmer of hope for bargain hunters.

1. Overview of Affordable Markets: While the median listing price across the nation stands at $424,900, these seven metros boast median home prices below $300,000, signaling relative affordability amidst a competitive market. Prospective buyers can expect more choices, particularly in the lower price range, as the spring homebuying season progresses.

2. Key Findings: Birmingham, AL leads the pack with a 4% annual price increase to $290,000, accompanied by a notable 27.6% rise in listings. Conversely, Rochester, NY experienced a slight inventory decline of 4%, despite an 8.7% price increase to $277,000.

3. Snapshot of Affordable Markets: Each city offers unique opportunities, with Buffalo, NY boasting a median list price of $270,000 and Cleveland, OH featuring a median list price of $227,000. Sample listings, such as 2872 Norwood Blvd in Birmingham listed at $279,900, provide insights into available properties.

4. Potential Savings for Buyers: Amidst a landscape of elevated interest rates, the proliferation of lower-priced homes presents an opportunity for buyers to save significantly. Despite marginal price increases, the affordability of these markets, coupled with current mortgage rates, offers potential savings for households.

As the housing market navigates challenges posed by high interest rates, the emergence of more affordable housing options in these cities could stimulate activity and provide relief for budget-conscious buyers. The availability of listings below $300,000 underscores the resilience and diversity of the U.S. real estate market.

Source: Realtor.com by Margaret Heidenry