Middle Market Digest: This Week in the Florida

Central Florida saw significant opportunity this week. Encouraging stats are rolling in. Some commercial real estate firms are relocating for growth while new firms are launching, and new buildings are coming online.

BY THE NUMBERS

Metrostudy's 4Q16 survey of the Sarasota-Bradenton housing is out. It shows that 2016's strong growth should continue in 2017, led by demand from retiring Baby Boomers.  Some of regional director Tony Polito's key findings include: 4Q16 annual starts are up 20.2% and annual closings are up 26.3% year-over-year; 4Q16 quarterly starts are up 2.9% and quarterly closings are up 12.3% year-over-year; new home production continues to move into the higher price points: Annual new homes starts in prices over $250,000 were up 30.2% year-over-year. (Source: Metrostudy)

“Metrostudy expects another strong season in 2017 and several more to follow in the coming years,” says Polito. “North Port/Sarasota/Bradenton is in the midst of another 'snowbird season' and, more importantly, the region it is still in the early days of Baby Boomer demand for retiree housing. The peak of the boom was 1957 and they will turn 60 in 2017. The Sarasota area has yet to experience peak demand from 'Boomers'. Potential road bumps still include rising interest rates, rising costs, affordability issues, public sentiment towards growth, the overall economy and the ability to sell homes 'up north'.” (Source: Metrostudy)

NEWS & NOTABLES

ORLANDO—Newmark Grubb Knight Frank and ARA are bolstering their regional operations by opening a newly-redesigned class A space in SunTrust Plaza in Winter Park, FL. The office will offer a full range of services within commercial real estate, including multihousing. Located at 400 South Park Avenue, SunTrust Plaza sits within historic downtown Winter Park, well-known for its tourist attractions and shopping destinations, and one of the most upscale areas of metro Orlando. Rollins College; a SunRail/Amtrak Station; and a stretch of boutiques, national retailers, restaurants and upscale hotels all lay within walking distance.

DAYTONA BEACH, FL—Silva Fiduciary Advisors recently launched in Daytona Beach. Jose Silva is CEO of the new company, which plans to grow to over 50 clients and manage more than $30 million in assets by the end of this year, and increase that by around 50% annually in the following three years. One of the most unique and important aspects about SFA that will go a long way toward achieving such goals is the fact that clients are all financially advised in their native languages. Silva is fluent in five languages—English, Spanish, Portuguese, French, Italian—and is currently working on Mandarin, Arabic and Russian.

MIAMI—Cushman & Wakefield assisted MetLife Real Estate in securing the US Green Building Councils' Leadership in Energy and Environmental Design (LEED) designation for three class A office buildings owned by the Atlanta-based investor in the Waterford at Blue Lagoon office park. CushWake's Asset Services team of senior property manager Peter Romero; assistant property manager Danny Wong; administrative assistant Jacky Hernandez; property accountant Maria Meyer; and engineers Rafael Lopez, Carlos Padilla and Javier Castro collaborated with MetLife Real Estate in procuring the designations for the Miami office park's Atrium buildings at 6100, 6303 and 6505 Blue Lagoon Drive.

The CushWake team of vice chairman Brian Gale, managing director Ryan Holtzman, managing director Andrew Trench and director Jeannette Mendoza lease the assets for MetLife Real Estate.

DEAL TRACKER

MIAMI—Marcus & Millichap is marketing Pinebrook Apartments, a 309-unit villa-style apartment community in the South Kendall submarket of Miami, Florida. The listing price is $41 million. “Located within one of the nation's strongest multifamily markets, Pinebrook Apartments historically operates at more than 98 percent occupancy and has very little annual turnover,” says Evan Kristol, senior managing director investments in M&M's Fort Lauderdale office. Kristol and Felipe Echarte, first vice president investments, are representing the seller, a Florida limited partnership that has owned the property for more than 25 years. Built in 1987, the property is located on a 15.5-acre site with frontage on Southwest 137th Avenue, one of the busiest north-south arteries in Miami-Dade County.

TAMPA, FL—Marcus & Millichap brokered the sale of Sun Bay, an 88-unit multifamily community located in Tampa. The asset sold for $5,891,500. Cameron Barbas, senior associate, along with Francesco P. Carriera, and Michael P. Regan, both senior managing director investments, all in M&M's Tampa office, represented the seller and procured the buyer. Sun Bay, an 88-unit multifamily community, is exceptionally located in South Tampa at 3730 West Bay Avenue. It is one of the closest multifamily properties to MacDill Air Force Base, as well as within a 15-minute drive to Downtown Tampa, Westshore Business District and Gateway Business District. The property has an excellent unit mix consisting of 32 one-bedroom/one-bathroom units with 600 rentable square feet and 56 two-bedroom/one-bathroom units with 900 rentable square feet.

FORT LAUDERDALE, FL—Sales associate Robert Dabrowski of Berger Commercial Realty/CORFAC International represented Stone & Equipment, Inc. in the $480,000 purchase of a 4,397-square-foot industrial warehouse from Donnini Management Company, LLC. Located at 1821 West 10th Street in Riviera Beach, the warehouse is situated in a gated industrial condominium complex consisting of 12 units with ample parking. Featuring a front office, up to 17 feet of clear ceiling height, three oversized bays and exterior storage, the warehouse will be used by Stone & Equipment as a showroom and distribution center for natural stone and flooring.

CLEARWATER, FL—Marcus & Millichap brokered the sale of Belleair Landings, a 44-unit apartment property located in Clearwater. The asset sold for $2.17 million. Ned Roberts, associate, Michael Donaldson, first vice president investments, and Nicholas Meoli, first vice president investments, all in M&M's Tampa office, represented the seller and procured the buyer. “We sold the asset at 99 percent of our asking price to a new-to-the-market buyer we sourced from New York,” says Donaldson. “The sale is a great indication of continued strong demand for Tampa Bay area multifamily assets on the part of out-of-state investors seeking comparatively higher returns,” adds Roberts. Belleair Landings is a 44-unit apartment community located at 1111 Pinellas Street. The property, which was 95% occupied at the time of sale, is in Pinellas County, the most densely populated county in Florida.

DAYTONA BEACH SHORES, FL—Avista Hotels and Resorts, an Orlando-based hospitality developer and operator, closed a $8.3 million permanent loan on its Hampton Inn hotel, a beach front property in Daytona Beach Shores. CBRE Group arranged a 10-year, floating rate loan that facilitated the completion of over $1.5 million of improvements to the hotel. Zac Brumbaugh, vice president with CBRE's Debt & Structured Finance practice in Orlando, placed the loan with a mid-western bank through CBRE's extensive network of hospitality lenders. “The hotel's performance had leveled off prior to the building's exterior and interior renovations in 2015. We were able to leverage the rapidly increased performance post renovation to place a uniquely aggressive piece of financing with one of our nationwide bank lenders,” says Brumbaugh. “Avista is using the proceeds of this loan to install brand new furniture, fixtures, and equipment in every room including new beds, lamps, and chairs. After these renovations, the hotel will appear brand new.”

JUPITER, FL—Robert Hamman's team with SVN Florida represented the seller, JBP Realty in the disposition of their 2.63-acre retail center, which includes a gas station, two restaurants, and a 12,656-square-foot retail building with four units. This property is located at 1500 North US Highway One in northern Jupiter.

BUILDING BLOCKS

NORTH MIAMI BEACH, FL—Marina Palms Yacht Club & Residences, the first residential and marina development to be constructed in Miami-Dade County in two decades, has completed construction on its second and final condominium tower. The development team was issued a Temporary Certificate of Occupancy last week which paved the way for closings and move-ins to begin. There are a few residences still available for sale. This tower on the south side of the property is branded The Reserve at Marina Palms. It is located on its own peninsula and consists of 234 residences in 25 stories offering spacious 2- and- 3- bedroom layouts with expansive views over the 112-slip marina, adjacent nature preserve, Miami skyline and the Atlantic Ocean.

Central Florida saw significant opportunity this week. Encouraging stats are rolling in. Some commercial real estate firms are relocating for growth while new firms are launching, and new buildings are coming online.

BY THE NUMBERS

Metrostudy's 4Q16 survey of the Sarasota-Bradenton housing is out. It shows that 2016's strong growth should continue in 2017, led by demand from retiring Baby Boomers.  Some of regional director Tony Polito's key findings include: 4Q16 annual starts are up 20.2% and annual closings are up 26.3% year-over-year; 4Q16 quarterly starts are up 2.9% and quarterly closings are up 12.3% year-over-year; new home production continues to move into the higher price points: Annual new homes starts in prices over $250,000 were up 30.2% year-over-year. (Source: Metrostudy)

“Metrostudy expects another strong season in 2017 and several more to follow in the coming years,” says Polito. “North Port/Sarasota/Bradenton is in the midst of another 'snowbird season' and, more importantly, the region it is still in the early days of Baby Boomer demand for retiree housing. The peak of the boom was 1957 and they will turn 60 in 2017. The Sarasota area has yet to experience peak demand from 'Boomers'. Potential road bumps still include rising interest rates, rising costs, affordability issues, public sentiment towards growth, the overall economy and the ability to sell homes 'up north'.” (Source: Metrostudy)

NEWS & NOTABLES

ORLANDO—Newmark Grubb Knight Frank and ARA are bolstering their regional operations by opening a newly-redesigned class A space in SunTrust Plaza in Winter Park, FL. The office will offer a full range of services within commercial real estate, including multihousing. Located at 400 South Park Avenue, SunTrust Plaza sits within historic downtown Winter Park, well-known for its tourist attractions and shopping destinations, and one of the most upscale areas of metro Orlando. Rollins College; a SunRail/Amtrak Station; and a stretch of boutiques, national retailers, restaurants and upscale hotels all lay within walking distance.

DAYTONA BEACH, FL—Silva Fiduciary Advisors recently launched in Daytona Beach. Jose Silva is CEO of the new company, which plans to grow to over 50 clients and manage more than $30 million in assets by the end of this year, and increase that by around 50% annually in the following three years. One of the most unique and important aspects about SFA that will go a long way toward achieving such goals is the fact that clients are all financially advised in their native languages. Silva is fluent in five languages—English, Spanish, Portuguese, French, Italian—and is currently working on Mandarin, Arabic and Russian.

MIAMI—Cushman & Wakefield assisted MetLife Real Estate in securing the US Green Building Councils' Leadership in Energy and Environmental Design (LEED) designation for three class A office buildings owned by the Atlanta-based investor in the Waterford at Blue Lagoon office park. CushWake's Asset Services team of senior property manager Peter Romero; assistant property manager Danny Wong; administrative assistant Jacky Hernandez; property accountant Maria Meyer; and engineers Rafael Lopez, Carlos Padilla and Javier Castro collaborated with MetLife Real Estate in procuring the designations for the Miami office park's Atrium buildings at 6100, 6303 and 6505 Blue Lagoon Drive.

The CushWake team of vice chairman Brian Gale, managing director Ryan Holtzman, managing director Andrew Trench and director Jeannette Mendoza lease the assets for MetLife Real Estate.

DEAL TRACKER

MIAMI—Marcus & Millichap is marketing Pinebrook Apartments, a 309-unit villa-style apartment community in the South Kendall submarket of Miami, Florida. The listing price is $41 million. “Located within one of the nation's strongest multifamily markets, Pinebrook Apartments historically operates at more than 98 percent occupancy and has very little annual turnover,” says Evan Kristol, senior managing director investments in M&M's Fort Lauderdale office. Kristol and Felipe Echarte, first vice president investments, are representing the seller, a Florida limited partnership that has owned the property for more than 25 years. Built in 1987, the property is located on a 15.5-acre site with frontage on Southwest 137th Avenue, one of the busiest north-south arteries in Miami-Dade County.

TAMPA, FL—Marcus & Millichap brokered the sale of Sun Bay, an 88-unit multifamily community located in Tampa. The asset sold for $5,891,500. Cameron Barbas, senior associate, along with Francesco P. Carriera, and Michael P. Regan, both senior managing director investments, all in M&M's Tampa office, represented the seller and procured the buyer. Sun Bay, an 88-unit multifamily community, is exceptionally located in South Tampa at 3730 West Bay Avenue. It is one of the closest multifamily properties to MacDill Air Force Base, as well as within a 15-minute drive to Downtown Tampa, Westshore Business District and Gateway Business District. The property has an excellent unit mix consisting of 32 one-bedroom/one-bathroom units with 600 rentable square feet and 56 two-bedroom/one-bathroom units with 900 rentable square feet.

FORT LAUDERDALE, FL—Sales associate Robert Dabrowski of Berger Commercial Realty/CORFAC International represented Stone & Equipment, Inc. in the $480,000 purchase of a 4,397-square-foot industrial warehouse from Donnini Management Company, LLC. Located at 1821 West 10th Street in Riviera Beach, the warehouse is situated in a gated industrial condominium complex consisting of 12 units with ample parking. Featuring a front office, up to 17 feet of clear ceiling height, three oversized bays and exterior storage, the warehouse will be used by Stone & Equipment as a showroom and distribution center for natural stone and flooring.

CLEARWATER, FL—Marcus & Millichap brokered the sale of Belleair Landings, a 44-unit apartment property located in Clearwater. The asset sold for $2.17 million. Ned Roberts, associate, Michael Donaldson, first vice president investments, and Nicholas Meoli, first vice president investments, all in M&M's Tampa office, represented the seller and procured the buyer. “We sold the asset at 99 percent of our asking price to a new-to-the-market buyer we sourced from New York,” says Donaldson. “The sale is a great indication of continued strong demand for Tampa Bay area multifamily assets on the part of out-of-state investors seeking comparatively higher returns,” adds Roberts. Belleair Landings is a 44-unit apartment community located at 1111 Pinellas Street. The property, which was 95% occupied at the time of sale, is in Pinellas County, the most densely populated county in Florida.

DAYTONA BEACH SHORES, FL—Avista Hotels and Resorts, an Orlando-based hospitality developer and operator, closed a $8.3 million permanent loan on its Hampton Inn hotel, a beach front property in Daytona Beach Shores. CBRE Group arranged a 10-year, floating rate loan that facilitated the completion of over $1.5 million of improvements to the hotel. Zac Brumbaugh, vice president with CBRE's Debt & Structured Finance practice in Orlando, placed the loan with a mid-western bank through CBRE's extensive network of hospitality lenders. “The hotel's performance had leveled off prior to the building's exterior and interior renovations in 2015. We were able to leverage the rapidly increased performance post renovation to place a uniquely aggressive piece of financing with one of our nationwide bank lenders,” says Brumbaugh. “Avista is using the proceeds of this loan to install brand new furniture, fixtures, and equipment in every room including new beds, lamps, and chairs. After these renovations, the hotel will appear brand new.”

JUPITER, FL—Robert Hamman's team with SVN Florida represented the seller, JBP Realty in the disposition of their 2.63-acre retail center, which includes a gas station, two restaurants, and a 12,656-square-foot retail building with four units. This property is located at 1500 North US Highway One in northern Jupiter.

BUILDING BLOCKS

NORTH MIAMI BEACH, FL—Marina Palms Yacht Club & Residences, the first residential and marina development to be constructed in Miami-Dade County in two decades, has completed construction on its second and final condominium tower. The development team was issued a Temporary Certificate of Occupancy last week which paved the way for closings and move-ins to begin. There are a few residences still available for sale. This tower on the south side of the property is branded The Reserve at Marina Palms. It is located on its own peninsula and consists of 234 residences in 25 stories offering spacious 2- and- 3- bedroom layouts with expansive views over the 112-slip marina, adjacent nature preserve, Miami skyline and the Atlantic Ocean.