MIAMI—Here's a look at the trends, announcements and deals you may have missed early this week in Florida.

Big money is changing hands this week, with Greystone and Berkadia at the fore of the capital markets scene. Meanwhile, smaller competitor Lloyd Jones Capital is staffing up for success.

The multifamily market remains hot, and some new developments in other sectors are getting underway. All this demonstrates the capital markets remain confident and we're not out of time in this development cycle just yet. South Florida stats, in particular, are especially strong across all sectors.

BY THE NUMBERS

There have been 202 recorded multifamily transactions in South Florida valued at more than $2.4 billion through the first nine months of 2016. The annual record of $3.3 billion in sales was established in 2015. (Source: Cushman & Wakefield)

Miami's industrial vacancy sits at its lowest level since 2007 at 4.4%. Miami is posting its strongest demand level to-date this year with 819,959 square feet of positive absorption. (Source: Transwestern)

Miami Dade's office market maintained a strong pace of leasing activity in the third quarter as 170 transactions of a median 1,800 square feet were executed across the county's nine major submarkets. Country wide total square footage leased improved 15% quarter-on-quarter, driven largely by activity in Brickell where 210,000 square feet of transaction occurred, representing Brickell's most robust quarterly performance in more than three years. (Source: JLL)

NEWS & NOTABLES

MIAMI—John Denes has joined Lloyd Jones Capital as managing director. Denes brings over 25 years of finance and investment experience to the firm. Denes has extensive experience in raising capital for private equity and hedge funds in the technology, clean energy and real estate industries. He holds a bachelor of science in Aeronautical Science from Embry Riddle Aeronautical University and an MBA.

DEERFIELD BEACH, FL—Love Funding closed a $5.3 million loan to substantially rehabilitate a 96-unit multifamily community in Deerfield Beach, and preserve its affordable status through a unique FHA program. This was the first RAD conversion in Florida to utilize 4% credits and bonds. Love also worked with its parent, Midland States Bank, to make a “one day” loan to facilitate the release of the short-term bonds and to recognize the contributed value of the property from the Housing Authority to the new partnership.

ORLANDO—Greystone Affordable Housing Initiatives closed a $130 million multifamily housing transaction in Florida. The 24 aged USDA Rural Development Section 515 properties, with 1,058 multifamily homes serving low-income households in 12 counties across the state, are owned and operated by Hallmark Companies. In the statewide pooled transaction, Greystone's affordable housing preservation group worked closely with USDA's Rural Housing Service National Office and Florida State Offices, as well as the Osceola County Housing Finance Authority and Florida Housing Finance Corporation to coordinate and secure the financing needed to acquire and rehabilitate this at-risk and much-needed housing. “The preservation of aging affordable housing is an ongoing challenge we continue to face within the housing industry,” says Pete Peterson, president of Hallmark. “There is a critical need for both the affordability and long-term physical viability of these multifamily housing communities in rural areas throughout the country.”

DEALTRACKER

NORTH PORT, FL—Marcus & Millichap brokered the sale of Patriot Self Storage of Talon Bay, an 849-unit self-storage property in North Port, FL. The Talon Bay facility is the second component of the two-facility Patriot Self Storage Portfolio. “The North Port-Sarasota-Bradenton MSA is experiencing one of the country's highest migration rates, a trend that is favorable to the region's self-storage assets,” says Michael Mele, a senior director of Marcus & Millichap's National Self-Storage Group. “North Port has the highest population in the MSA, which should support the growth of this asset. At the time of the sale, Patriot Self Storage of Talon Bay was nearly 80% physically occupied and just under 70% economically occupied.”

MIAMI—Berkadia's South Florida mortgage banking team arranged about $225 million in financing for properties across Florida, Arizona, Colorado, Texas, South Carolina and Georgia during the month of September. “These transactions illustrate the strong demand for refinancing, particularly in the multifamily space, as well as Berkadia's ability to meet that demand with competitive and innovative financing packages,” says senior managing director Mitch Sinberg, of Berkadia's South Florida office. “As the leading Freddie Mac, Fannie Mae and FHA lender, in addition to our life company, CMBS and bank relationships, Berkadia is exceptionally well-positioned to serve investors in Florida and throughout the country.”

PALM BEACH, FL—CREC brokered a $4.65 million sale of the 13-acre Pioneer Estates, a site for residential development in Palm Beach County, FL. Located at 9919 Pioneer Road, the property is zoned for residential development and is entitled for the construction of up to 93 fee simple townhomes. Peter Mekras, senior vice president at CREC, represented the seller, a private land owner with a long held interest in the property. LuxCom, a local home builder with several projects in South Florida, acquired the asset. Pioneer Estates is located minutes away from the Florida Turnpike in an upper-middle class neighborhood with an average household income of $85,414 within a one-mile radius and surrounded by top-rated public schools. There are also plans for retail developments nearby and convenient shopping and grocery options such as Publix, Home Depot and CVS.

PARKLAND, FL—Aztec Group senior managing director Howard Taft and director Charles Penan closed a $15.75 million loan that was secured against a $37.15 million first mortgage. K. Hovanian's Four Seasons Parkland development collaterized the first project. Currently under construction, the project will turn a 200-acre agricultural assemblage into an active lifestyle community. The Parkland residential development will offer residents 18 elegant home designs to choose from and is ideally located at 9456 Vallen Court, Parkland, FL. “This unique financing vehicle was curated to fit the borrower's needs to monetize an investment that would not easily be converted into cash otherwise,” says Taft. “The lender's creativity and flexibility enabled Aztec to secure loan terms that truly exceeded the borrower's expectations.”

NEW SMYRNA BEACH, FL—Cushman & Wakefield negotiated the sale of a one-acre oceanside site on South Atlantic Avenue in New Smyrna Beach. Senior director David Calcanis represented Orlando-based developer Real Estate Inverlad in the disposition. Orlando investor Dean Alcott acquired the land for $1.7 million. Alcott's redevelopment plans include the construction of a new two-story ocean-facing structure that will house a restaurant, sports bar and dance floor on the first floor and a 1,700-square-foot outdoor, covered bar with panoramic views of the ocean on the second floor.

WEST PALM BEACH, FL—Cortland Partners purchased Arium Palm Cove and Arium at Laguna Lakes, two neighboring communities in West Palm Beach. The Atlanta-based multifamily investment and management firm plans to consolidate the communities into a single, larger community to be called Portofino Place. “We've had our eye on West Palm Beach for some time and feel it's an attractive submarket to enter,” says Steven DeFrancis, Cortland Partners founder and CEO. “Occupancy rates are at an all-time high nationwide and demand for our specific housing offering is stronger than it's ever been. We look forward to a fruitful, long-term investment future in an exciting location.”

WEST PALM BEACH, FL—Carroll Organization has completed the sale of ARIUM Laguna Lakes and ARIUM Palm Cove in West Palm Beach, two multifamily properties that were a part of Carroll Multifamily Real Estate Fund III. Carroll originally purchased the 416-unit and 396-unit multifamily communities in March 2015. “ARIUM Laguna Lakes and ARIUM Palm Cove were originally built as two separate communities with their own amenities and access gates, but when we acquired them, they were operated as one single 812-unit asset. During our ownership period, we had great success in dividing these into two distinct properties, and driving top and bottom-line growth through organic rent increases and proactive management.” says M. Patrick Carroll, CEO of Carroll Organization. “While we are still bullish on the Palm Beach County multifamily market, we felt that it was an appropriate time to sell opportunistically and generate great returns for our investors.”

ORLANDO, FL—Marcus & Millichap brokered the sale of Silver Oaks Apartments, a 320-unit multifamily community in Orlando. The $20.95 million sales price equates to more than $65,000 per unit. Frank Carriera and Michael Regan, first vice president investments in M&M's Tampa office, represented the seller and procured the buyer. Built in 1989 on more than 19 acres, Silver Oaks Apartments features 40 two-story residential buildings and a one-story leasing office, clubhouse, business and fitness center building. “Strong fundamentals and relatively higher returns in Orlando continue to draw the attention of multifamily investors,” says Regan. “Value-add assets in favorable locations with more than 100 units are especially attractive.”

BUILDING BLOCKS

TAMPA, FL—NexCore is set to break ground on Women's Care Florida women's health center in Tampa. The new women's health center will bring imaging and high-level surgical services to Tampa's Westshore area. The Westshore District is the largest commercial market in the Tampa Bay region and the center of activity for Florida's west coast. It has become Florida's largest office market with 4,000 businesses and nearly 94,000 employees, as well as a 24/7 community with over 250 restaurants, two upscale shopping centers, over 30 hotels and growing residential neighborhoods.

MIAMI—Melo Group launched construction of Square Station, a new multifamily complex in Downtown's Arts & Entertainment district, after successfully landing a $103 million loan from BB&T Bank. The luxury residential community will include a pair of 34-story towers with 710 multifamily units catering to young middle-class urbanites who work in and around Downtown Miami and the Brickell Financial District area. The transit-oriented development, now rising at 1424 Northeast Miami Place right next to the Miami-Dade Metromover School Board Station, will also include about 15,000 square feet of commercial space for ground floor restaurants and retail.

TAMPA, FL—Construction on largest speculative warehouse since 2008 has broken ground in Tampa Bay's core submarket. Industrial real estate broker Rick Narkiewicz and Bobby Sampson are handling leasing. The 168,000-square-foot dock high warehouse will be ready for occupancy late first quarter of 2017. The industrial building has a 30-foot. minimum clear height, ESFR fire suppression and a parking ratio that can support a large amount of office space. Recently renamed to Grand Oaks 75, the project has immediate access to interstate 75 and room to construct another 500,000 square feet of warehouse space for lease.

Instant Insights /

Middle Market Digest: This Week in Florida

Related Stories

Recommended For You