The Law Firm That Advised on $8B in Deals

MIAMI—In case you wondered just how hot Miami's commercial real estate market is, here's a clue: one law firm advised on acquisitions, dispositions and development deals valued in excess of $8 billion in the last 18 months alone.

“The past 12 to 18months saw one of the most active periods of development in Miami's history,” says Bilzin Sumberg Real Estate Chair Jim Shindell. “From hotel redevelopment in Miami Beach, residential projects rising in Brickell, dozens of trophy office properties being refinanced throughout Miami, and mixed-use construction taking shape in downtown and the Design District, there is virtually no area in the city left untouched by the current cycle…”

Indeed, Bilzin has worked on some of South Florida's most significant commercial real estate transactions, including assisting Miami Design District Associates (MDDA), a partnership between visionary developer Craig Robins and L Real Estate in the sale of a 20% equity interest in MDDA to a joint venture between General Growth Properties and Ashkenazy Acquisition Corp. for $280 million.

Looking back on the big deals, Bilzin also represented an entity that includes Starwood Capital, the LeFrak Organization, and Invesco in the purchase and renovation of one of South Beach's largest oceanfront luxury resort properties, including the Perry Hotel South Beach. With a price tag of $1 billion and nearly 2 million square feet of improved space, the property will reopen as a hotel and series of oceanfront condominiums under a new eco-luxury brand created by Barry Sternlicht, CEO of Starwood, and founder of Starwood Hotels, called 1 Hotel & Homes.

Bilzin worked with joint venture comprised of affiliates of the LeFrak and Swerdlow Development Group in the negotiation of the long-term ground lease of a 185-acre brownfields redevelopment site in the City of North Miami. The client intends to redevelop the property as a $2 billion-plus multi-use master development, known as Biscayne Landing, which will be offer 4,290 residential units, 1.2 million square feet of retail, and a 150-room hotel. Development began in July 2014, with city-approved plans including residential, retail, and hotel components, as well as more than seven acres of open park space.

Bilzin also represented The Collection in a $74 million financing deal backed by the office building and luxury car dealership at 4000 Ponce de Leon Boulevard in Coral Gables. The property is a combination of class A office space and one of the most successful luxury automobile dealerships in the country. Since The Collection owned and operated the building, a number of challenges were presented in documenting the loan. However, with experience in hotel transactions and CMBS financing, the firm was able to identify creative solutions to complete successfully.

“These are long-term investors who are placing bets on our city's future and supporting its continued development as a global city on the rise,” says Bilzin Sumberg Partner and Hospitality Group Chair Suzanne Amaducci. Looking ahead to 2015, the commercial real estate market should remain active, with developers increasing their focus on mixed-use developments as they seek to mitigate risks, lure lenders and take advantage of the growing trend for urban, live, work, and play development. At the same time, she projects heightened lender competition for trophy assets as new feeder markets beyond Latin America begin eyeing the Miami market, including China, Russia, New York, and Canada.

Bilzin also represented The Collection in a $74 million financing deal backed by the office building and luxury car dealership at 4000 Ponce de Leon Boulevard in Coral Gables. The property is a combination of class A office space and one of the most successful luxury automobile dealerships in the country. Since The Collection owned and operated the building, a number of challenges were presented in documenting the loan. However, with experience in hotel transactions and CMBS financing, the firm was able to identify creative solutions to complete successfully.

“These are long-term investors who are placing bets on our city's future and supporting its continued development as a global city on the rise,” says Bilzin Sumberg Partner and Hospitality Group Chair Suzanne Amaducci. Looking ahead to 2015, the commercial real estate market should remain active, with developers increasing their focus on mixed-use developments as they seek to mitigate risks, lure lenders and take advantage of the growing trend for urban, live, work, and play development. At the same time, she projects heightened lender competition for trophy assets as new feeder markets beyond Latin America begin eyeing the Miami market, including China, Russia, New York, and Canada.