Mid Market South-FRIDAYThis week in Florida commercialreal estate sees industry players considering revitalizationbeyond core markets. A number of deals in rising submarkets werealso inked.

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BY THE NUMBERS

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Scattered sunshine in the near-term outlook. Statewide supplygrowth will contribute to a decline in annual hoteloccupancy in Florida and a further moderation in the increases inADR and RevPAR. Last year's performance was attributable to a mixof slowing economic growth, Zika and a hurricane, plus otherhigh-profile events that suppressed travel to the state. Randomevents could arise again, but property owners will haveopportunities to leverage a growing economy to strengthen propertyperformance. Payrolls are still growing steadily, particularly inOrlando and Tampa, sustaining inbound business travel. (Source:Marcus & Millichap)

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Relocations to Florida have also consistently increased topre-recession levels. The relocation of households promotes the useof hotels as transitional residences until permanent housing isavailable and generates inbound leisure travel from visitingfriends and relatives. Against the bright prospects offered bythese and other demand drivers, the significant number of new,primarily select-service rooms and home-sharing services includingAirbnb imposes hurdles. (Source: Marcus & Millichap)

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NEWS & NOTABLES

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MIAMI—Cushman & Wakefield assisted Datran Center Isecuring the U.S. Green Building Councils' (USGBC) Leadership inEnergy and Environmental Design (LEED) certification for DatranCenter, a 500,000-square-foot class A office complex inMiami-Dade County. The Asset Services team of vice presidentMarlene Diaz, property manager Tesalia Corbett,senior chief operating engineer William Espinoza and chiefoperating engineer David Gort collaborated with owner DatranCenter I, LLC in securing the prestigious O+M: Existing Buildingsv2009 certification. Cushman & Wakefield has managed the assetfor Datran Center I since it acquired the complex in June 2016.Datran Center is a two-building, class A office complexconstituted by Datran One, an 18-story building developed in 1984at 9100 South Dadeland Boulevard, and Datran Two, a 20-storybuilding at 9130 South Dadeland built in 1987.

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POMPANO BEACH, FL—Mark Corlew, partner of thePompano-based real estate investment group GroverCorlew, took part in the first of a series of NAIOP city mainstreet discussions that showcase up-and-coming areas throughoutSouth Florida. When asked what initially attracted his firm to thearea, he said, “Pompano Beach is centrally positioned close tomajor thoroughfares and within close proximity to thrivingtri-county cities such as Fort Lauderdale and Boca Raton. The cityhas worked effectively to plan and implement revitalization effortssuch as beautification projects, and parking and main arteryimprovements, but continued investment is needed to build on themomentum that the city has created. We envision Grover Corlew'sproperties functioning as mixed-use, with flourishing ground-floorretail spaces as the city continues to evolve into a morepedestrian-friendly, residential community.”

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MIAMI—George Vail has joined the Avison Young inMiami as a principal and will help expand the firm's capitalmarkets and debt platform throughout Florida. He will also furtherthe growth of the company's regional joint-venture and structuredfinance platforms. He was most recently managing director ofAckman-Ziff in Miami. Vail brings more than 20 years ofcommercial real estate investment sales, financing andmanagement experience to Avison Young. During his career, he hascoordinated more than $4 billion in commercial real estatetransactions, which have included investment sales as well as debt,equity, senior and mezzanine financing. The deals have alsoincluded performing and non-performing loans, apartmentcommunities, office buildings, retail centers, hotels, industrialcomplexes and development land sites.

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DEAL TRACKER

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CLEARWATER, FL—Marcus & Millichap brokered the saleof El Camino, a 54-unit multifamily property in Clearwater.The asset sold for $50,000 above the asking price of $3.425million. Casey Babb and Luis Baez, investmentspecialists in the firm's Tampa office, represented theseller, a family partnership who had developed the property 45years ago. The duo also secured the buyer, a private investor basedin Miami. “There is speculation out there that rising interestrates will slow transaction velocity in the near term and we agreewith that assumption for the most part,” says Casey. “Thisoffering, however, checked a lot of boxes for investors withlocation, upside, price point, new roof and consequently wereceived 19 written offers after a three week marketing campaign.The top four bidders were all in 1031 exchanges and theprevailing Buyer went hard in 5 days and closed above the ask price30 days later.”

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PORT SAINT LUCIE, FL—Strategic Storage Trust IV, apublic non-traded real estate investment trust sponsored bySmartStop Asset Management, acquired a 504-unit self-storagefacility in the Port Saint Lucie suburb of Jensen Beach, FL. Theacquisition is the first for the recently launched REIT. Theapproximately 48,000-square-foot facility is located on nearly fouracres of land at 1105 Northeast Industrial Boulevard and isequipped with 96 RV and boat spaces.

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MIAMI BEACH, FL—Cushman & Wakefield negotiated along-term 10,000-square-foot office relocation lease withGDS Publishing at 1688 Meridian Avenue, a 90,000 square-footoffice building in the heart of South Beach. Managingdirector Gordon Messinger represented Ivy Realty. Ivyacquired the office building and 1674 Meridian Avenue in July 2016.GDS is relocating from 1961 Michigan Avenue and will occupy theentire penthouse floor of 1688 Meridian. GDS Publishing expects tomove over 40 employees into the new office space in thethird quarter. CREC's Steven Hurwitz represented thetenant in the lease negotiations.

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ORLANDO—Franklin Street arranged the sale ofChowder Bay Apartments, a 304-unit rental community in Orlando. Theproperty at 4700 Rio Grande Avenue was sold for $21.28 million byFieldstone Properties, LLC, a private equity investmentfirm, to Dominium Management Services, LLC, aMinneapolis-based apartment development and managementcompany. Franklin Street's Darron Kattan, KevilnKelleher, Zachary Ames and Robert Goldfinger ofrepresented both parties in the transaction. “The asset was soldwithout the need to put effort into a wide scale marketing effort,”says Kattan. “This transaction is clear evidence of the continuedinsatiable demand for apartment investments in CentralFlorida.”

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DAYTONA BEACH, FL—Marcus & Millichap brokered thesale of the Kushner Portfolio, a three-property, 736-unitmultifamily portfolio in Daytona Beach, Florida. The $44.25 millionsales price equates to more than $60,000 per unit. “Owned andoperated by the seller for more than 23 years, each community hasgreat value-add potential and the entire portfolio is poised tobenefit from the significant growth taking place in Daytona Beach,which has more than $2 billion in new developments in itspipeline,” says Donaldson, first vice president investments inMarcus & Millichap's Tampa office. Donaldson and Meolirepresented the seller, a private investor based in Illinois andprocured the buyer, a Tampa-based investment company.

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WEST PALM BEACH, FL—HFF closed the $19.5 million sale ofan 18,712-square-foot high-street retail and officebuilding located at 313 1/2 Worth Avenue in Palm Beach. HFFmarketed the property on behalf of the seller, TriconyManagement. The buyer purchased the retail center freeand clear of financing. 313 1/2 Worth Avenue, known as Via BiCE,comprises five Mediterranean- and Spanish Colonial-style buildingsthat are situated along one of the intimate “Via” streets thatconnects to Worth Avenue, recognized by USA Today as the third“Favorite Iconic American Street.” The HFF team thatrepresented the seller was led by senior managing directorHermen Rodriguez, managing director Luis Castillo,director Eric Williams and associate Kim Flores.

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SARASOTA, FL—Commercial real estate investment firmDilweg Companies acquired Sarasota City Center in DowntownSarasota. Sarasota City Center is a two-tower class A officebuilding with 13 floors in the North tower and 3 floors in theSouth tower. Located in the center of Downtown Sarasota, thebuilding totals 245,293 square feet and was built in 1989. Majortenants include Boar's Head, Wells Fargo, Merrill Lynch and UBS.The building was 88% leased at the time of sale. Dilweg plans toinvest more than $4 million to improve the building's operatingsystems, common areas and tenant amenities and provide a “best inclass” office experience for existing and futuretenants.

|

Mid Market South-FRIDAYThis week in Florida commercialreal estate sees industry players considering revitalizationbeyond core markets. A number of deals in rising submarkets werealso inked.

|

BY THE NUMBERS

|

Scattered sunshine in the near-term outlook. Statewide supplygrowth will contribute to a decline in annual hoteloccupancy in Florida and a further moderation in the increases inADR and RevPAR. Last year's performance was attributable to a mixof slowing economic growth, Zika and a hurricane, plus otherhigh-profile events that suppressed travel to the state. Randomevents could arise again, but property owners will haveopportunities to leverage a growing economy to strengthen propertyperformance. Payrolls are still growing steadily, particularly inOrlando and Tampa, sustaining inbound business travel. (Source:Marcus & Millichap)

|

Relocations to Florida have also consistently increased topre-recession levels. The relocation of households promotes the useof hotels as transitional residences until permanent housing isavailable and generates inbound leisure travel from visitingfriends and relatives. Against the bright prospects offered bythese and other demand drivers, the significant number of new,primarily select-service rooms and home-sharing services includingAirbnb imposes hurdles. (Source: Marcus & Millichap)

|

NEWS & NOTABLES

|

MIAMI—Cushman & Wakefield assisted Datran Center Isecuring the U.S. Green Building Councils' (USGBC) Leadership inEnergy and Environmental Design (LEED) certification for DatranCenter, a 500,000-square-foot class A office complex inMiami-Dade County. The Asset Services team of vice presidentMarlene Diaz, property manager Tesalia Corbett,senior chief operating engineer William Espinoza and chiefoperating engineer David Gort collaborated with owner DatranCenter I, LLC in securing the prestigious O+M: Existing Buildingsv2009 certification. Cushman & Wakefield has managed the assetfor Datran Center I since it acquired the complex in June 2016.Datran Center is a two-building, class A office complexconstituted by Datran One, an 18-story building developed in 1984at 9100 South Dadeland Boulevard, and Datran Two, a 20-storybuilding at 9130 South Dadeland built in 1987.

|

POMPANO BEACH, FL—Mark Corlew, partner of thePompano-based real estate investment group GroverCorlew, took part in the first of a series of NAIOP city mainstreet discussions that showcase up-and-coming areas throughoutSouth Florida. When asked what initially attracted his firm to thearea, he said, “Pompano Beach is centrally positioned close tomajor thoroughfares and within close proximity to thrivingtri-county cities such as Fort Lauderdale and Boca Raton. The cityhas worked effectively to plan and implement revitalization effortssuch as beautification projects, and parking and main arteryimprovements, but continued investment is needed to build on themomentum that the city has created. We envision Grover Corlew'sproperties functioning as mixed-use, with flourishing ground-floorretail spaces as the city continues to evolve into a morepedestrian-friendly, residential community.”

|

MIAMI—George Vail has joined the Avison Young inMiami as a principal and will help expand the firm's capitalmarkets and debt platform throughout Florida. He will also furtherthe growth of the company's regional joint-venture and structuredfinance platforms. He was most recently managing director ofAckman-Ziff in Miami. Vail brings more than 20 years ofcommercial real estate investment sales, financing andmanagement experience to Avison Young. During his career, he hascoordinated more than $4 billion in commercial real estatetransactions, which have included investment sales as well as debt,equity, senior and mezzanine financing. The deals have alsoincluded performing and non-performing loans, apartmentcommunities, office buildings, retail centers, hotels, industrialcomplexes and development land sites.

|

DEAL TRACKER

|

CLEARWATER, FL—Marcus & Millichap brokered the saleof El Camino, a 54-unit multifamily property in Clearwater.The asset sold for $50,000 above the asking price of $3.425million. Casey Babb and Luis Baez, investmentspecialists in the firm's Tampa office, represented theseller, a family partnership who had developed the property 45years ago. The duo also secured the buyer, a private investor basedin Miami. “There is speculation out there that rising interestrates will slow transaction velocity in the near term and we agreewith that assumption for the most part,” says Casey. “Thisoffering, however, checked a lot of boxes for investors withlocation, upside, price point, new roof and consequently wereceived 19 written offers after a three week marketing campaign.The top four bidders were all in 1031 exchanges and theprevailing Buyer went hard in 5 days and closed above the ask price30 days later.”

|

PORT SAINT LUCIE, FL—Strategic Storage Trust IV, apublic non-traded real estate investment trust sponsored bySmartStop Asset Management, acquired a 504-unit self-storagefacility in the Port Saint Lucie suburb of Jensen Beach, FL. Theacquisition is the first for the recently launched REIT. Theapproximately 48,000-square-foot facility is located on nearly fouracres of land at 1105 Northeast Industrial Boulevard and isequipped with 96 RV and boat spaces.

|

MIAMI BEACH, FL—Cushman & Wakefield negotiated along-term 10,000-square-foot office relocation lease withGDS Publishing at 1688 Meridian Avenue, a 90,000 square-footoffice building in the heart of South Beach. Managingdirector Gordon Messinger represented Ivy Realty. Ivyacquired the office building and 1674 Meridian Avenue in July 2016.GDS is relocating from 1961 Michigan Avenue and will occupy theentire penthouse floor of 1688 Meridian. GDS Publishing expects tomove over 40 employees into the new office space in thethird quarter. CREC's Steven Hurwitz represented thetenant in the lease negotiations.

|

ORLANDO—Franklin Street arranged the sale ofChowder Bay Apartments, a 304-unit rental community in Orlando. Theproperty at 4700 Rio Grande Avenue was sold for $21.28 million byFieldstone Properties, LLC, a private equity investmentfirm, to Dominium Management Services, LLC, aMinneapolis-based apartment development and managementcompany. Franklin Street's Darron Kattan, KevilnKelleher, Zachary Ames and Robert Goldfinger ofrepresented both parties in the transaction. “The asset was soldwithout the need to put effort into a wide scale marketing effort,”says Kattan. “This transaction is clear evidence of the continuedinsatiable demand for apartment investments in CentralFlorida.”

|

DAYTONA BEACH, FL—Marcus & Millichap brokered thesale of the Kushner Portfolio, a three-property, 736-unitmultifamily portfolio in Daytona Beach, Florida. The $44.25 millionsales price equates to more than $60,000 per unit. “Owned andoperated by the seller for more than 23 years, each community hasgreat value-add potential and the entire portfolio is poised tobenefit from the significant growth taking place in Daytona Beach,which has more than $2 billion in new developments in itspipeline,” says Donaldson, first vice president investments inMarcus & Millichap's Tampa office. Donaldson and Meolirepresented the seller, a private investor based in Illinois andprocured the buyer, a Tampa-based investment company.

|

WEST PALM BEACH, FL—HFF closed the $19.5 million sale ofan 18,712-square-foot high-street retail and officebuilding located at 313 1/2 Worth Avenue in Palm Beach. HFFmarketed the property on behalf of the seller, TriconyManagement. The buyer purchased the retail center freeand clear of financing. 313 1/2 Worth Avenue, known as Via BiCE,comprises five Mediterranean- and Spanish Colonial-style buildingsthat are situated along one of the intimate “Via” streets thatconnects to Worth Avenue, recognized by USA Today as the third“Favorite Iconic American Street.” The HFF team thatrepresented the seller was led by senior managing directorHermen Rodriguez, managing director Luis Castillo,director Eric Williams and associate Kim Flores.

|

SARASOTA, FL—Commercial real estate investment firmDilweg Companies acquired Sarasota City Center in DowntownSarasota. Sarasota City Center is a two-tower class A officebuilding with 13 floors in the North tower and 3 floors in theSouth tower. Located in the center of Downtown Sarasota, thebuilding totals 245,293 square feet and was built in 1989. Majortenants include Boar's Head, Wells Fargo, Merrill Lynch and UBS.The building was 88% leased at the time of sale. Dilweg plans toinvest more than $4 million to improve the building's operatingsystems, common areas and tenant amenities and provide a “best inclass” office experience for existing and futuretenants.

|

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