Miami Beach Condos In High Demand; The Deal Sheet
A foreign buyer has plunked down $2.75M in an all-cash deal to buy the 16-unit Palm House at 1010 Pennsylvania Ave in Miami Beach. That price is the second-highest per SF paid for a multifamily property on South Beach,according to CBREs multi-housing private capital group, which repped the seller, an LLC,
CBREs Calum Weaver explains that its a function of supply and demand. Rents are now above pre-recession levels, and occupancies are over 97% in the market, which is driving demand (that, and just about every investor from everywhere thinks highly of greater Miami). But there will be no new rental supply in the foreseeable future, so "the market should continue to command premier investment sale pricing, Calum says. This is the seventh multifamily transaction CBRE has done this year in Miami Beach.
SALES
In a separate deal, CBRE brokered the sale of Riverwalk II at 301 SE 6th Ave in Homestead. Riverfront Capital sold theproperty for $6.2M to YTech Development, based in Miami. The sale was a Low Income Housing Tax Credit transaction.
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MBR Waterview bought the Miami Beach Resort and Spa at 4833 Collins Ave for $117M from the Blackstone Group. The new ownership plans redevelopment of its public areas, meeting facilities, and guest rooms, as well as introducing new food and beverage concepts. The 424-room hotel opened in 1963 as the Doral Beach Hotel, the sister hotel to the Doral Country Club. JLLs Gregory Rumpe l and Andrew Dickey repped the seller.
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Global Fund Investments and MMG Equity Partners acquired the 347k SF Biscayne Plaza, a grocery-anchored property on 18 acres at Biscayne Boulevard and 79th St in Miami in an off-market transaction. According to the partners, the property will undergo extensive renovation. Global has assumed the management, leasing, and redevelopment of the property.
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Valley Forge Fabrics purchased a 76k SF industrial building on nearly four acres from 1650 West McNab Road Holdings LLC for $1.9M. The property is at 1650 West McNab Rd, Fort Lauderdale, and was originally developed by Les Byron Associates in 1975. Sperry Van Ness Commercial Realtys Les Byron repped the buyer. Back in 2005, the building fetched $5.2M.
LEASING
Northwestern Mutual and Peretz Chesal inked new leases totaling 16.2k SF at the 700k SF One Biscayne Tower, bringing the building to 85% occupancy. The insurance company took 10k SF, while Peretz Chesal, an intellectual property law firm, took 6,200 SF. Taylor & Mathis Brian Gale, Andrew Trench, and Ryan Holtzman repped the landlord.
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Interport Logistics leased 146.7k SF of industrial warehouse space at Prologis Beacon Lakes. State Street Realtys George Pino and Ed Lyden repped the landlord, Prologis, while Studleys Tom Capcefalo and Tyler Wyant repped the tenant. At the same property, CHEP Aerospace US leased 29.4k SF of industrial warehouse space. George and Ed repped the landlord in that deal as well, while of DTZs Greg Lance repped the tenant.
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Berlin Packaging leased 40k SF at the new spec distribution building at 9682-9698 Premier Pkwy, which is within the Miramar Park of Commerce. The lease marks a significant expansion for the Chicago-based company in the South Florida market, and brings the building to full occupancy after a month on the market. JLLs Steven Medwin, Chris Watts, and Nick Wigoda repped the tenant.
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Sweets shop Le Macaron French Pastries inked a 1,500 SF lease at 208 Miracle Mile in Miami Beach, which will be the brands second store in Miami-Dade. The new shop will serve coffee, gelato, and other sweets, but its piece de resistance will be the macaron. Terranova EVP Mindy McIlroy and leasing director Isabelle Courtial repped the landlord in the deal.
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The ownership of the Building on Ponce Circle in Coral Gables--also known as The Building--selected Miamis Blanca Commercial Real Estate as its leasing agent. Developed in 2012 by South Florida-based AJP Ventures on behalf of a JV between venture capital fund Mas Group of Cos and TAZ Partners, the 58k SF building was recently honored as NAIOPs 2012 Project of the Year.
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