Middle Market Digest: This Week in Florida

This week in Florida saw lots of office stats emerge, as well as honors and musical chairs. Construction loans and topping off also marked the week's news.

BY THE NUMBERS

Miami-Dade County's office market stabilizes in 2017, with vacancy rates hovering around 9%. (Source: Colliers International South Florida)

New office developments continue to surface, especially in thriving submarkets such as Downtown Miami. Coral Gables, Coconut Grove and Aventura. New deliveries in the fourth quarter have slowed down but construction remains firm with 1.7M square feet of office space currently under construction. (Source: Colliers International South Florida)

NEWS & NOTABLES

ORLANDO—Transwestern promoted Keith Pierce to director of Research for the Southeastern region. Over the past three years of working with Transwestern, his role consisted of tracking and analyzing statistical data, assisting with pitches and new business development, providing data for client communications, and generating quarterly market reports for the Atlanta and Miami offices. It has since expanded with the management of additional responsibilities within the healthcare sector and national initiatives as well as the development of content for press opportunities. With more than 14 years in commercial real estate experience focusing on managing and coordinating research and analysis, leading discussions on market and economic trends, and performing company and property research, he most recently served as the Atlanta research manager for commercial appraisal firm NPV Advisors before joining Transwestern. He co-founded Dorey Market Analysis Group, where he was senior analyst and director of research, as well as the Atlanta Commercial Research Council.

LAKELAND, FL—Christina “Christy” Kurtz-Clark, sales associate at Coldwell Banker Commercial Saunders Ralston Dantzler Realty, was recently installed as a board member for the Asian American Real Estate Association (AREAA) Central Florida chapter at the group's Annual Gala in Orlando. The organization's mission is to create a national voice for housing and real estate professionals and to increase business and real estate opportunities to serve the AAPI market. Kurtz-Clark is a commercial Realtor with extensive background in small business development which adds leadership value to the organization's Central Florida chapter.

DEAL TRACKER

LAKE WALES, FL—The sale of the former International Paper Company's 273,384-square-foot industrial manufacturing building on State Highway 60 in Lake Wales was brokered recently by Kyle Vreeland and Greg Smith of Coldwell Banker Commercial Saunders Ralston Dantzler Realty (CBCSRD). The property was purchased by Fence Outlet and the company plans to hire up to 80 people to manufacture products for seven Florida retail locations. Vreeland and Smith worked closely with Kieft throughout the process of looking for a buyer for the facility. Kieft supported the effort by providing information to the potential buyers about Lake Wales, utilities, transportation, data access and the local workforce. In 2017, Vreeland and Smith also sold a 300,000 square feet industrial property in Auburndale for the International Paper Company and worked with Kieft to sell the City of Lake Wales' Longleaf Business Park Industrial Development 30-acre fully developed industrial site.

MIAMI SPRINGS, FL—Aztec Group managing director Boaz Ashbel, arranged a $15.2 million construction loan for the proposed Comfort Inn & Suites Hotel to be built in Miami Springs. Aztec Group secured the loan on behalf of 665 Mokena Partners, entity led by Steven Marin and Michael Pfeffer. The Marin and Pfeffer families have been active in the local hotel business for over 40 years and own the nearby Comfort Suites and Days Inn on Northwest 36^th Street. TotalBank provided the loan. “Placing a hotel construction loan these days is challenging. It takes a great location in a vibrant submarket and a sponsor as strong as this owner is, with a long and successful track record in the region's hospitality market to get a loan over the finish line,” says Ashbel. “The hotel's strong brand affiliation with the Comfort Inn & Suites flag, contemporary design, affordable pricing, and excellent location close to one the nation's busiest international airports will position the property for long-term success.”

ORLANDO—JLL Capital Markets closed the $14.2 million sale of the northern portion of Church Street Station, Downtown Orlando's landmark entertainment center, and The Exchange Building, an adjacent office property, to a private equity firm. The properties span a nearly full block at the intersection of Church Street and Garland Avenue. The JLL Capital Markets team, led by managing directors Carson Good and Jeff Morris, along with Bret Felberg, Tarik Bateh, Scott Peek, Justin Greider and Aaron Gray represented the seller, TSLF I, an investment fund managed by Tremont Realty Capital, an operating division of The RMR Group LLC.

HIALEAH GARDENS, FL—Duke Realty selected State Street Realty to market and lease Miami Industrial Logistics Center, a new three-building class A warehouse and distribution center in Hialeah Gardens. State Street Realty's industrial brokerage team of Frank Trelles and Brian Cabielles will spearhead the marketing and leasing at the project. MILC is comprised of three class A rear-load, multi-bay buildings totaling ±676,835 square feet in northwest Miami-Dade County.

FORT LAUDERDALE, FL—Conness Crissy Real Estate Advisors' Patrick Conness and Mike Crissy negotiated the sale of the Foam Factory Building, located at 3510 Northwest 53 Street in Fort Lauderdale. Aquatic Endeavors Holding purchased the 23,453-square-foot industrial asset for $3,250,000, or $138.58 per square foot, from Stanley Regent Revocable Living Trust. Conness and Crissy represented the buyer in the purchase.  There were no other brokers involved in the transaction. “The challenge in this particular transaction was strategically coordinating both the exit strategy for the seller while simultaneously organizing the move-in for our buyer, with as little down time as possible,” says Crissy. “Even though it has been a long process, ultimately, we were able to help our client secure a facility that checked all of their boxes and allows them the necessary space to continue growing their business.”

BUILDING BLOCKS

NORTH MIAMI BEACH, FL—EDEN Multifamily has topped off construction of NOMA, an eight-story, 347-unit apartment building at 2145 Northeast 164^th Street. NOMA is scheduled to be completed in fall 2018. NOMA is EDEN's first development in North Miami Beach and represents a significant milestone for the city, which is experiencing a renaissance following the 2015 completion of the City's Mixed Use Town Center zoning district. The project is located in the emerging Community Redevelopment Area on the east side of the city. MSA Architects is the NOMA architect, with Bruce Howard and Associates providing landscape architecture and ID& Design International as the interior designer.