Lincoln Property Co., in joint venture with Walton Street Capital, has purchased a 226,392-square-foot distribution center for $43.8 million in Weston, Fla. The buyer assumed a $41.8 million loan and increased it to approximately $79 million through an amended and restated note, originated by Nuveen, TIAA’s subsidiary, Broward County public records show.

CBRE negotiated on behalf of the seller, Manova Partners, formerly known as GLL Real Estate Partners. The asset previously traded in 2018, when Becknell Industrial sold it for $30.4 million, CommercialEdge shows.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The deal represents the partnership’s third industrial transaction in the last four months, bringing the companies’ footprint in the South Florida area to more than 700,000 square feet. Lincoln Property Co. will be the property manager at the building, that was 54 percent leased at the time of its trade. Tenants include Mondelēz International and Vital Pharmaceuticals Inc., according to CommercialEdge.

The cross-dock industrial building is at 1600 N. Park Drive, close to interstates 75 and 595 that allows easy access through metro Miami. Fort Lauderdale-Hollywood International Airport is 17 miles from the property, while Miami International Airport is 27 miles away.

Built in 1994, the two-story building includes 25-foot clear heights, two drive-in doors, 46 dock-high doors and dock levelers and bumpers. Additionally, the 13-acre property features 226 vehicle parking spots and 11 trailer spots.

Vice Chairmen José Lobón, Trey Barry and Frank Fallon, Vice Presidents Royce Rose and George Fallon, together with Financial Analysts Gabriel Braun and Daniel Sarmiento with CBRE worked on behalf of the seller.

Big deals in the area

Recent notable industrial acquisitions in the Miami metro include the purchase of a 505,436-square-foot industrial campus in Opa-Locka, Fla. Link Logistics sold the property known as Ironwood Commerce Center to TA Realty in December.

One month earlier, Longpoint Partner picked up a 1.4 million-square-foot South Florida portfolio in a $331.3 million deal. Blackstone sold the industrial portfolio, that includes mostly infill, last-mile facilities.

The post Lincoln Property JV Buys Fort Lauderdale Facility for $44M appeared first on Commercial Property Executive.

Miami International Tradeport is at 11130-11450 N.W. 122nd St. in Medley, Fla., just east of the Florida Turnpike and south of Okeechobee Road. The location provides easy access to Miami International Airport, PortMiami and major highways.

The buildings reportedly are suitable for logistics, distribution and manufacturing users and feature 30- to 36-foot clear heights, 54-foot column spacing and 130-foot non-shared truck courts, as well as ESFR sprinkler systems, LED lighting and ample parking.

Colliers’ EVP Erin Byers, Senior VP Lauren Pace, VP Ruben Suarez and EVP Steven Wasserman will be marketing the property, which has available spaces ranging from 34,000 to 140,000 square feet.

Mixed picture for Miami-Dade’s industrial market

The Miami-Dade industrial real estate market has seen net absorption fall to a negative 750,000 square feet over 12 months, as average vacancy has risen from 2.0 percent in 2022 to 5.5 percent at the start of this year, according to a January newsletter from Smith Commercial Property Group, of Doral, Fla.

“Tenant demand is slowing and rent growth has moderated after a sharp rise of 31.9 percent over three years,” Smith reported. “Despite these challenges, Miami remains a vital logistics hub with strong international trade links through its airport and port. Supply constraints, driven by geographical barriers like the Everglades, keep vacancy rates below the U.S. average, and rent growth is expected to pick up by 2026.”

This past November, BGO Cold Chain acquired Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Medley, Fla., from Truist Securities for a reported $60 million. JLL arranged the deal for Truist. The one-story warehouse at 7600 N.W. 82nd Place is fully occupied by Quirch Foods.

The post Prologis Taps Colliers to Lease Miami-Area Business Park appeared first on Commercial Property Executive.

The partnership of Highline Real Estate Capital, Square2 Capital and Lone Star Funds has acquired 401 E. Las Olas Blvd. in Fort Lauderdale, Fla.’s financial district. CBRE represented the seller of the 410,561-square-foot office asset and secured acquisition financing.

The same week, the office property at 350/450 E. Las Olas Blvd. changed hands for $208 million in what was, at the time, the market’s largest transaction in a decade.

DWS, an affiliate of Deutsche Bank’s asset management arm, sold both properties for a combined $428 million, according to Commercial Observer.

READ ALSO: Office Sector Faces Ongoing Challenges Into 2025

DWS had acquired 401 Las Olas in 2016 for $220 million, according to CommercialEdge information. Completed in 2002 and renovated in 2005, the 23-story office tower features floorplates averaging 24,397 square feet and four levels of parking, as well as retail space. The building is LEED Gold-certified.

The 2.4-acre property occupies a full city block. Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions and UBS are among its tenants.

CBRE Vice Chairman Christian Lee and Vice President Sean Kelly led the team that represented the seller. In addition, Vice Chairmen Tom Traynor and Tom Rugg, together with Senior Vice President Amy Julian and First Vice President Andrew Chilgren, assisted the buyer in sourcing acquisition financing. Director Adam Spengler, Senior Associate Tom Rappa, Associate Henry Fenmore and Financial Analyst Matthew Lee were also instrumental in the deal.

Fort Lauderdale, an attractive market

“Downtown Fort Lauderdale has exploded in recent years with new residential,” Square2 Capital Principal Jay Caplin told Commercial Property Executive.

“It is attracting a phenomenal mix of amenities, retail and restaurants. It is also the only 24/7 submarket in Broward County, located near executive decision-makers. This combination, especially in a post-COVID work environment, creates an attractive space for recruiting new talent and returning employees to the office.”

READ ALSO: Net Effective Office Costs Edge Up

Caplin added the trend is not new and it’s expected to continue, especially since there is no new office construction planned along the Las Olas Boulevard corridor.

“The vast majority of any development in downtown has been for-sale and for-rent residential, and some hotels,” he noted.

According to Caplan, 401 Las Olas is among the top-tier buildings in South Florida and one of only two Class AA trophy office buildings on Las Olas Boulevard.

With an occupancy of 94 percent and a purchase price substantially below replacement cost, “given the very high quality of the property, it represents a highly attractive and opportunistic investment for the new owners,” he said.

One of South Florida’s ‘most exciting secrets’

“The rise of Fort Lauderdale’s office market is quickly becoming one of the region’s most exciting secrets,” JLL’s Brady Titcomb, who specializes in the Fort Lauderdale office market, told CPE.

“It offers a prime location for businesses seeking the vibrancy of an urban center in a unique waterfront setting without the hefty price tag. You can enjoy all the lifestyle perks of Miami but at a fraction of the cost and without the heavy traffic and congestion,” Titcomb added.

“The sales of 401 Las Olas and 350/450 Las Olas during an otherwise turbulent capital markets environment validate that downtown Fort Lauderdale is a secure investment destination,” mentioned Colliers Vice Chair Jonathan Kingsley.

“The two properties traded at premium prices on a per-square-foot basis, albeit with higher cap rates than prior sales. This is a direct result of the increase in lease rates and net operating income in a dynamic leasing atmosphere in downtown Fort Lauderdale.”

A strong alternative to pricier markets

Fort Lauderdale’s office market has become a strong alternative to New York’s Park Avenue, Miami’s Brickell and Los Angeles’ Century City, noted Todd Rosenberg, co-founder & chairman of Pebb Capital.

Pebb Capital’s Class A office property, 110 East Broward, has led leasing activity in Fort Lauderdale’s CBD, securing over 119,000 square feet of tenancy since last year. Notable new leases include ABA Centers of America (48,000 square feet), Seacoast Bank (7,795 square feet), and Ludlow Coffee Supply opening in 2025.

The post DWS Sells Fort Lauderdale Office Tower for $220M appeared first on Commercial Property Executive.

Nearly two years after acquiring Aveva Drug Delivery Systems, DifGen Pharmaceuticals has relocated its corporate headquarters from Princeton, N.J., to Miramar Park of Commerce in Miramar, Fla. The combined company now occupies 166,794 square feet across three locations within the 600-acre office and industrial campus in Broward County.

One of the park’s prominent health-care tenants since 1994, Aveva had initially occupied 44,450 square feet. The company expanded its footprint to a total of 125,294 square feet before DifGen’s relocation to 3200 Commerce Way.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

Sunbeam Properties & Development, the developer and owner of the park, broke ground on Miramar Park of Commerce in 1984. It is the largest locally owned and managed business campus in South Florida, with more than 5 million square feet of office/service, laboratory, pharmacy, light manufacturing and distribution space. More than 1.1 million square feet are leased by north of 30 top health-care-related tenants, creating a health-care hub that continues to strengthen the regional economy and business environment.

“We are focused on offering flexible management and innovative leasing solutions to build long-term partnerships with our tenants that foster their growth and success,” Peter “PJ” Apol, director of leasing and marketing for Sunbeam Properties & Development, told Commercial Property Executive.

Apol and Ryan Goggins, vice president of acquisitions, leasing and marketing at Sunbeam Properties & Development, represented the owner in the lease transaction.

A thought-after business campus

DifGen isn’t the only company moving its headquarters to Miramar Park of Commerce. In November, VSE Corp., a provider of aftermarket distribution and repair services for the aviation industry, said it was relocating its corporate headquarters from Northern Virginia. VSE, previously known as 1st Choice Aerospace, first moved to the campus in 2014, leasing 37,473 square feet. The company now occupies 142,861 square feet at the property.

In October, Sunbeam Properties & Development announced more than 92,000 square feet of new leases and expansions at the park. Memorial Healthcare System expanded by 26,546 square feet for a total footprint of more than 200,000 square feet for uses including administrative offices, training, pharmaceutical, IT and pathology.

SIMTEC Silicone Parts added 39,670 square feet for a total of 87,540 square feet and Sunshine Avionics and its affiliates added 14,617 square feet for a footprint of more than 38,000 square feet at multiple buildings. In a new lease, Kids SPOT Rehab took 12,052 square feet for a headquarters and administrative office.

Growing in the market

Apol told CPE Park Miramar, a new 126-acre mixed-use development the company is building next to the office and industrial park, is “generating a lot of excitement and interest in the market.”

Sunbeam Properties & Development received rezoning and site plan approval from the Miramar City Commission in November to move ahead with the project, which had been in the planning stages for about two years. Park Miramar will include more than 2,800 apartments, a 185-key hotel, 340,000 square feet of retail and restaurant space with a grocery store and 128,000 square feet of office space.

The post Miami-Area Commerce Park Gets New Pharma HQ appeared first on Commercial Property Executive.

The Miami office sector posted strong fundamentals throughout 2024, according to the latest CommercialEdge data. The metro marked a more than 41 percent jump in investment volume year-over-year, recording the busiest period in the last quarter.

Last year, high prices in the Magic City placed it fourth in the nation, the market also emerging as the most expensive gateway city for office deals, with assets trading at higher prices than even in Manhattan. Additionally, Miami’s end-of-2024 vacancy rate was the lowest in the U.S.

Significant projects boost Miami’s pipeline

As of December, the metro had 1.8 million square feet of space underway across 18 properties, accounting for 2.6 percent of existing stock—way above than the national average of 0.8 percent. Among gateway markets, Boston led the rankings with 3.4 percent, while Miami outperformed San Francisco (2.3 percent), Seattle (1.2 percent), Los Angeles (0.7 percent) and Washington, D.C. (0.3 percent). When adding projects in planning stages, Miami’s share reached 9.6 percent, second after Austin (12.6 percent).

The list of the largest projects under construction in the metro saw no changes as of December. Royal Caribbean’s new headquarters remains the largest development, scheduled to come online in early 2026. The 380,000-square-foot project is rising at 1050 Caribbean Way in Miami’s central business district.

The second-largest project underway is UHealth Medical Center at SoLé Mia, a 363,000-square-foot medical office development in North Miami. Turnberry and LeFrak Organization are the developers, with the completion date pushed to September 2025.

Projects that started going vertical last year added up to nearly 1.4 million square feet across 10 properties, representing 1.7 percent of the existing stock. Additionally, developers completed 1.2 million square feet across nine properties—accounting for 1.5 percent of total stock.

The largest office project underway for years, the 640,000-square-foot 830 Brickell tower by OKO Group and Cain International came online in October 2024. The project was the first Class A tower to be constructed in Miami’s urban core in more than a decade, and currently includes top-tier tenants such as Microsoft, Blackstone, WeWork and CI Financial Corp.

A top market for residential makeovers

Office-to-residential conversions emerged as an attractive option in recent years. As a response to this trend, CommercialEdge launched a tool that measures a building’s potential for residential conversion and highlights which markets post strong repurposing fundamentals. The Conversion Feasibility Index scores include three tiers, with Tier I properties being the most attractive candidates for such makeovers.

At the end of 2024, Miami had 21 office properties totaling nearly 2.9 million square feet within the Tier I category, while the Tier II included 138 buildings totaling 11.5 million square feet. The metro has a notable amount of office space posting high potential for residential conversions, with 3.7 percent of its office assets in Tier I and 12.4 percent in Tier II—emerging above the national averages 2.7 percent and 12.1 percent, respectively.

Ending the year as the priciest office market

Last year, Miami’s office sector saw in $1.4 billion in deals, with 46 properties totaling 3.5 million square feet changing hands—marking a 41.3 percent increase over the year. The volume reached $159.8 million at the end of the first quarter, while investment activity picked up during the second and third quarters. The last quarter ended with $668.7 million in deals—representing a 70.1 percent year-over-year growth.

In terms of total sales volume, Miami ranked fourth in the nation, after Los Angeles ($1.2 billion), while Manhattan led the rankings with $3.9 billion. The metro outperformed Chicago ($1.1 million), San Francisco ($786.6 million) and Seattle ($598.8 million).

Notable deals included the $443 million acquisition of 701 Brickell, a 685,215-square-foot high-rise. Nuveen Real Estate sold the 33-story property in one of the largest office transactions in Florida.

In 2024, Miami assets changed hands at an average sale price of $400 per square foot—above the national average of $175 per square foot. The Magic City emerged as the most expensive office metro in the nation, outpacing Manhattan ($369 per square foot), San Francisco ($350 per square foot) and Los Angeles ($281 per square foot). Chicago recorded the lowest figure among gateway markets, with an average sale price of $85 per square foot.

Mami’s vacancy rate lowest in the U.S.

Miami’s office vacancy rate stood at 15.2 percent as of December—below the national average of 19.8 percent and marking a 30-basis-point raise. The metro’s rate increased through 2024, from the 12.4 percent recorded in January.

The Magic City’s vacancy was the lowest across the nation. Miami was followed by Manhattan (16.6 percent), Boston (17 percent) and Chicago (18.8 percent), while San Francisco posted the highest U.S. rate at 28.8 percent.

Notable office leases that closed last year in Miami include DigitalBridge’s headquarters relocation agreement: a 79,141-square-foot deal in Delray Beach Fla. Later on, in September, MetLife Real Estate Management secured a 128,450-square-foot renewal at Wells Fargo Center in downtown Miami. The lease represented the largest office commitment in the city’s central business district in recent years.

Coworking share the highest in Miami

The coworking sector in Miami comprised approximately 3 million square feet across 144 locations as of December, slightly less than in Seattle (3 million square feet). Manhattan led the rankings with 11.3 million square feet, followed by Chicago (7.7 million square feet) and Los Angeles (6.5 million square feet).

Miami’s share of flex office space as percentage of total leasable office space reached 3.8 percent, the highest across gateway markets and above the national average of 1.9 percent. The coworking provider with the largest footprint in the metro remained Regus, with operations totaling 379,211 square feet. The companies that followed were WeWork (268,578 square feet), Spaces (226,223 square feet), Quest Workspaces (221,749 square feet) and Industrious (215,000 square feet).

In early December, Regus signed a 45,789-square-foot full-building lease in Miami Beach, Fla. The deal came after WeWork closed its location at Azora Exan’s 429 Lenox in May.

The post Miami’s Office Market Topped the Charts in 2024 appeared first on Commercial Property Executive.

Florida’s waterfront commercial development boom is being driven by migration, demographic shifts and evolving tenant preferences, creating a surge in demand for mixed-use, lifestyle-driven spaces.

According to Ryan Shaw, first vice president of investments at Marcus & Millichap, “waterfront development in Florida is shifting away from traditional, single-use zoning, instead evolving into multi-functional destinations where people can live, work, relax and socialize in one integrated space.”

These waterfront developments in Florida are attracting both residents and tourists by offering vibrant, sustainable communities that cater to modern lifestyles. The appeal of these waterfront spaces has grown in the post-pandemic era, with tenants prioritizing amenities like food, beverage and entertainment as key features of new projects, Shaw added further.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

Florida continues to attract a significant number of residents, especially from the Northeastern U.S. Many newcomers are downsizing from single-family homes and seeking access to resort-style amenities without the burden of maintenance, elaborates Dominic Pickering, executive director at BTI Partners. This trend, coupled with growing demand for waterfront living in Florida, has led to a shift in the types of commercial developments that are taking root along Florida’s shores.

The natural human connection to water also plays a critical role in driving demand for Florida’s waterfront development.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place, making them ideal for dining, leisure and community interaction,” said Andrew Hellinger, principal at URBAN-X. However, in areas like Miami-Dade County, limited available waterfront land has increased competition and demand among developers.

Despite a recent slowdown in demand due to rising construction costs, increased supply and the impacts of natural events, the overall outlook for Florida waterfront commercial developments remains strong. Mika Mattingly, executive vice president at Colliers, emphasizes that Florida’s business-friendly environment and high livability ratings continue to support demand for premium waterfront properties, particularly in South Florida, where luxurious new projects remain highly sought after.

In response, developers are adapting to these market shifts by creating Florida waterfront developments that blend convenience, walkability and vibrant amenities, while prioritizing long-term sustainability in the face of climate challenges.

Florida’s transformative waterfront developments

This adaptability is evident in Florida’s waterfront commercial developments. The state’s coastline is undergoing a remarkable transformation, with an influx of commercial waterfront developments that blend office, retail, hospitality and entertainment spaces with scenic waterfront access. From Miami to Tampa, these waterfront developments are harnessing the state’s natural beauty and booming growth to create vibrant, mixed-use destinations that appeal to both businesses and residents alike.

In Miami, the Miami River Landing project exemplifies this shift, offering a dynamic combination of office, retail and residential spaces along the river. Its proximity to key urban amenities and waterfront views makes it a highly desirable location for businesses looking to establish a presence in Miami’s growing commercial waterfront development district.

READ ALSO: How Coral Gables Is Cementing Its Status as a Top Office Market

Similarly, the $2 billion Bahia Mar redevelopment in Fort Lauderdale is positioning itself as a commercial waterfront hotspot, offering luxury amenities, a marina and retail outlets. This ambitious project aims to transform the area into a “Mini Monaco,” further enhancing its appeal as a waterfront commercial development destination, while hosting events like the Fort Lauderdale International Boat Show, which draws millions annually.

On Tampa’s waterfront, the Water Street Tampa project stands out as a major Florida commercial waterfront development. This mixed-use project combines office spaces, retail, hospitality and public areas with a walkable design, aiming to become the city’s new economic hub. Nearby, 401 East Jackson is an office tower offering sweeping views of the waterfront and proximity to downtown amenities, reflecting Tampa’s increasing appeal as a commercial waterfront center along the Gulf Coast.

The Westshore Marina District in Tampa also blends commercial and luxury waterfront living, featuring high-end retail, dining and office spaces. This 52-acre development is anchored by the exclusive Marina Pointe, with a private marina offering access to the Gulf of Mexico, making it a prime location for businesses that value both luxury and waterfront accessibility.

North Bay Village, situated between Miami and Miami Beach, is another area drawing significant commercial waterfront development interest. MG Developer’s revitalization of this location includes a variety of new office, hotel and restaurant concepts that cater to the area’s growing demand for Florida waterfront commercial spaces.

Tackling challenges, seizing waterfront opportunities

Florida’s waterfront development is a balancing act, with developers navigating a complex landscape of rising costs, environmental concerns and evolving regulations. According to Alex Zylberglait, executive managing director of investments at Marcus & Millichap’s Miami office, Florida’s waterfront development faces significant challenges due to escalating land prices, rising construction costs and higher insurance premiums.

Additionally, the demand for infrastructure improvements—such as upgraded transportation and water systems—adds complexity to projects, often resulting in impact fees. Stricter building codes, implemented after the Surfside building collapse, are also reshaping how developers approach planning and execution, further influencing the development landscape.

Environmental sustainability is a critical factor influencing Florida waterfront projects. Developers must protect fragile ecosystems like mangroves and coral reefs, which play vital roles in biodiversity and storm protection.

Shoreline stabilization and sea-level rise adaptation are now standard considerations in project planning. MG Developer emphasizes the importance of incorporating eco-conscious features, while also ensuring compliance with stringent environmental regulations. Pollution control is another pressing issue, with initiatives to maintain clean waterways becoming a priority for long-term project viability.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place.”

—Andrew Hellinger, Principal, URBAN-X

At the same time, waterfront commercial projects are evolving to meet growing demand for vibrant, multi-use destinations. Developments like Tampa’s Water Street and Riverwalk are setting new standards by integrating retail, dining and entertainment into dynamic urban spaces. Miami River projects similarly combine hospitality, nightlife and marina access, offering both functionality and luxury.

The focus is expanding beyond traditional oceanfront locations to include riverfronts and bayfronts, as seen in Jacksonville and Fort Lauderdale, which offer untapped potential for innovative Florida commercial waterfront hubs.

Looking ahead, resiliency will shape Florida’s waterfront developments. Elevated construction, stormproof designs and sustainable materials are becoming the norm, ensuring projects can withstand rising sea levels and extreme weather. As Shaw notes, emerging markets like Cocoa Beach and North Bay Village are poised for growth, driven by improved infrastructure and accessibility. According to Hellinger, “rising sea levels and extreme weather events are reshaping development strategies, with a focus on resiliency and long-term viability.”

Florida’s waterfronts are not just about scenic views—they are evolving into dynamic commercial waterfront centers that balance economic opportunity with environmental responsibility, setting the stage for sustainable growth over the next decade.

Read the February 2025 issue of CPE.

Wave are images by Magnilion/iStockphoto.com

The post What’s Propelling Florida’s Waterfront Development Rush? appeared first on Commercial Property Executive.

In the largest office lease ever recorded in Miami’s Wynwood submarket, Amazon agreed to occupy 50,333 square feet at Wynwood Plaza, a 1 million-square-foot mixed-use development.

L&L Holding Co. and Oak Row Equities are the owners. Shorenstein Investment Advisers is the project partner, while Claure Group serves as co-investor.

Cushman & Wakefield assisted the landlord in the deal, alongside with in-house representation, while Savills worked on behalf of the tenant.

Located at 95 NW 29th St., Wynwood Plaza is taking shape 6 miles from downtown Miami and will have access to interstates 95 and 195. Miami International Airport is some 8 miles west.

READ ALSO: What’s Defining Office in 2025?

Miami’s office vacancy rate at the end of December clocked in at 15.2 percent, posting the lowest rate among the top U.S. markets, the latest CommercialEdge office report shows. Despite a 110-basis-point increase, the metro’s figure was lower than the 19.8 percent national average.

A mixed-use campus in Miami’s Art District

The mixed-use campus broke ground in March 2023, after the developer secured a $215 million construction loan from Bank OZK. The project is scheduled for completion in the following months.

Wynwood Plaza will comprise a 12-story Class A, 266,000-square-foot office building and a residential component that will feature 509 luxury rental apartments. The property will also include 25,000 square feet of retail and a 26,000-square-foot outdoor public plaza.

The office component will have various amenities such as a fitness center, a cafe and bar lounge, rooftop private seating areas and conference spaces. Floorplates will range from 23,756 to 25,205 square feet.

L&L Holding Co. Vice President Bryan Lapidus, together with Cushman & Wakefield Managing Director Andrew Trench, Senior Director Edward Quinon and Vice Chairman Brian Gale, worked on behalf of the landlord. Savills Executive Managing Director Tom Capocefalo and Vice Chairman Mike Catalano represented the tenant.

The post Amazon to Open Miami Office appeared first on Commercial Property Executive.

Accesso Partners has acquired Sawgrass Lake Center, a 240,000-square-foot office building in Sunrise, Fla., a Fort Lauderdale submarket. American Realty Advisors sold the asset, according to CommercialEdge information, in a deal arranged by CBRE.

The property previously traded in March 2018, when Foundry Commercial sold it for $57.4 million—or $195.66 per square foot—the same source shows. American Realty Advisors took out a $43.8 million loan from Regions Bank for the acquisition.

Located at 13450 W. Sunrise Blvd., the LEED-certified building is some 18 miles from downtown Fort Lauderdale and the Fort Lauderdale-Hollywood International Airport. The property is also adjacent to Sawgrass Mills Center, a 2.3 million-square-foot shopping and dining destination.

READ ALSO: RCLCO Market Index Points to Optimism for 2025

The six-story building came online in 2001 and went through cosmetic renovations in 2017. The mid-rise features 3,000 square feet of retail space and floorplates ranging between 46,904 and 48,896 square feet. Amenities include a fitness center, cafe, tenant lounge, conference center and outdoor seating area. The almost 7-acre property also has a five-story parking garage.

Tenants at the Class A building include AT&T, GoVine Insurance, Watches of Switzerland and StevenDouglas.

CBRE Vice Chairman Christian Lee and Vice President Sean Kelly, along with Financial Analysts Tom Rappa and Matthew Lee, brokered the deal on behalf of the seller.

Office sector shows signs of improvement

The office sector is still undergoing transformation, due to the hybrid work model which demands flexibility and adaptability. Companies are expected to prioritize creating engaging, experience-rich environments that inspire creativity and foster connections among employees. This shift reflects the changing dynamics of the workforce and tenant expectations, emphasizing the importance of spaces that cater to diverse employee needs.

The forecast for 2025 also highlights a potential increase in office demand, particularly in sectors like law and finance. According to a Savills report, the legal sector leasing volume between the first and third quarter of last year increased by 29.9 percent compared to the same period of 2023.

The post Accesso Acquires Metro Miami Office Asset appeared first on Commercial Property Executive.

A $104 million loan for Phase One of Centro City’s 350,000-square-foot retail component was issued by Hudson Bay Capital. It is part of Miami-based developer Terra’s overall $291 million in permanent financing secured for the 38-acre mixed-use development.

The new financing will pay off the development’s existing construction loan, provided by Apollo Global Management and Mack Real Estate Credit Strategies in 2022.

Centro City includes 1,200 market-rate residential apartments, green space for residents, a newly reimagined shopping center with lifestyle-oriented retail and restaurants, a Class A office building and a Mater Academy K-8 Charter School.

Connected to the community

“At Terra, we prioritize creating spaces that offer not just accessibility but real connectivity to the vibrant heart of their communities,” David Martin, CEO of Terra, told Commercial Property Executive.

“Centro City exemplifies this vision, strategically located in the heart of West Little Havana, where residents and businesses can tap into Miami’s key employment centers, cultural landmarks and transportation corridors,” he added.

“This is part of a broader strategy we’ve applied across South Florida, from Coconut Grove’s Grove Central to our upcoming Upland Park development, which will redefine mobility and living in West Miami-Dade. Our commitment is to build more than just developments; we create dynamic, sustainable ecosystems that enhance communities and drive economic growth.”

READ ALSO: Retail Construction Starts Surged in H1 2024

Target, Ross Dress for Less, DD’s, Fresco y Mas, Walgreens and Bank of America are among the tenants for the 95 percent-leased property in the center of Miami-Dade County, just west of Little Havana.

Walker & Dunlop’s Keith Kurland and Gangemi Law Group represented Terra in the transactions. Holland & Knight Partners Joe Dewey, Brett Holland, Shawn Amuial and Shaina Kamen, together with Associate Brian Piper, represented Hudson Bay Capital.

“Mixed-use multifamily developments featuring retail in Miami continue to garner interest from residents, investors, and lenders,” said Michael J. Romer, co-founder & managing partner of Romer Debbas LLP. “This most recent financing is a positive sign as lenders begin to awake from a relatively dormant market cautiously. The combination of multifamily, retail and warm weather is the magic formula entering 2025.”

The post Miami Retail Asset Scores $104M Loan appeared first on Commercial Property Executive.

Garden Commercial has acquired the 83,800-square-foot Plaza Del Mar, an upscale grocery-anchored retail property located in Manalapan, Fla. for an unspecified price. The shopping center is at 250 S. Ocean Blvd. in Palm Beach County, directly across from Eau Palm Beach Resort & Spa.

The deal represents a further expansion in Florida for New Jersey-based Garden Commercial, which has many properties in its home state. The company currently owns and manages more than 25 million square feet of retail and office space.

The seller was a joint venture between Kitson & Partners and Evergreen Investment Advisors. Locally based Kitson, which owns about 1.5 million square feet of retail space as well as residential and other commercial properties, developed the shopping center. The company is also known for its sustainable developments in the state.

Plaza Del Mar features a Publix grocery store and eateries such as Art Basil Modern Italian Cuisine, John G’s, Thaikyo Asian Cuisine and The Ice Cream Club. Apparel store tenants include Chico’s, Evelyn & Arthur and J. McLaughlin, among others. Addicted Chic is set to open later this year.

READ ALSO: Retail Space in Focus: What’s Driving the Sector’s Growth?

Service providers at the property include a dermatologist, bank, hair salon, nail salon, residential real estate specialist Illustrated Properties and Chabad of South Palm Beach, which holds social, educational, and holiday programs and activities. About 8,000 square feet of the property is vacant.

Scott Loventhal and Michael Gartenberg served as Garden Commercial’s in-house representatives for the acquisition. CBRE’s National Retail Partners team in Florida, led by Executive Vice Presidents Casey Rosen and Dennis Carson, as well as Associate Vice Presidents Sriram Rajan and Michael Etemad, represented the seller.

Palm Beach retail slightly weaker in Q3

Palm Beach County experienced a modest rise in retail vacancy during the third quarter of 2024, rising to 3.9 percent vacant, a 30-basis-point increase quarter-over-quarter, according to Colliers. A year earlier, the vacancy rate was 3.4 percent. The uptick was spurred by negative net absorption of 156,600 square feet during the same period.

Even so, the market is expected to remain supply-constrained, Colliers reports, as few tenants move out and little new retail space is completed in the county. Only 32,400 square feet of new retail space came online in Palm Beach County during Q3 2024, compared with 39,600 square feet during the same quarter a year earlier.

However, development activity in South Florida (including retail) might be stimulated in 2025 by the coming rate-cutting cycle. The Colliers report states that investors could be more keen on the property type as well, especially grocery-anchored assets, which have proven resilient, with stable rents and occupancy rates, because of the essential nature of the goods they sell.

The post NJ Investor Buys Upscale Palm Beach Property appeared first on Commercial Property Executive.

The seven-story waterfront project at 9551 E. Bay Harbor Drive reportedly will be both the only trophy office building on Bay Harbor Islands and Miami’s only Class A office building offering private boat access. It will feature 75,000 square feet of “ultra-luxury office space” and a ground-floor waterfront restaurant, in a location across from the Bal Harbor Shops.

3650 Capital provided the financing. Construction will start at the end of this month and is scheduled for completion in late 2026. Leasing will be handled by Cushman & Wakefield.

The developers could not be reached for further information.

The project is driven by an influx of high-net-worth residents to Bay Harbor Islands and the resulting need for luxury office space for companies supporting this migration, Irwin Tauber, co-founder & CEO of Taubco, said in a company statement.

READ ALSO: When Office Meets Hospitality

The ground-floor restaurant reportedly will offer in-suite dining service for building tenants, while the building will feature private boat slip access and dockage, along with a rooftop venue.

The building has been designed by Miami-based architect Luis Revuelta, known for multiple luxury buildings in Miami.

Cushman & Wakefield Vice Chair Brian Gale, with Executive Managing Directors Andrew Trench and Ryan Holtzman, and Senior Director Edward Quinon, will oversee office leasing efforts.

Scanty preleasing

Overall vacancy in the Miami-Dade office market has risen by 80 basis points year-over-year, driven by the recent delivery of 830 Brickell, according to a third-quarter report from Cushman & Wakefield. The 556,000-square-foot building was 93 percent preleased, but the new tenants are still building out their respective spaces.

Adjusted for that blip, the overall vacancy would be about 15.1 percent, although a total of seven office projects with a combined 837,000 square feet are underway, with only 14 percent preleased. Net absorption nonetheless remains positive, Cushman & Wakefield reported.

In July, CMC Group nailed down a $69.9 million refinance for its 4000 Ponce, a 190,000-square-foot office building in the Miami suburb of Coral Gables, Fla. The floating-rate, five-year loan was provided by City National Bank of Florida and arranged by a JLL team.

The post JV Secures $74M Loan for Metro Miami Building appeared first on Commercial Property Executive.

Shoppes of Wilton Manors, located at 2200-2292 Wilton Drive, was built in 1958 and expanded in 1985. This is the second time Stiles has owned Shoppes of Wilton Manors. The company purchased it back in 2004 and sold it in 2007 after making improvements.

This time around, Stiles is planning to renovate the property starting early next year, focusing on improvements to the façade, walkways, landscaping and parking areas. The company will use several of its integrated real estate services, including development, property management and tenant project management services, to execute the transformation.

READ ALSO: Unwrapping Holiday Retail Trends

The property was 84 percent occupied before the sale, according to CommercialEdge data. There are currently 12 tenants, none of whose leases expire over the next 12 months. The tenant mix includes restaurants, fashion and other retailers. Average annual household income for the surrounding Zip code (33305) is above $138,000.

The deal fits into Stiles’ acquisition strategy, which seeks mid- to large-sized retail centers in infill Florida locations as value-add and repositioning plays, according to a company statement.

JLL’s Jorge Portela, Maurice Habif and Danny Finkle represented the seller in the transaction. Financing for the acquisition and redevelopment plan came from Synovus Bank.

Besides hunting retail deals, Stiles has been an active developer recently as well. Earlier this year, a joint venture between Stiles and Shorenstein Properties completed 110 East, a 23-story, 370,000-square-foot office building in Charlotte, N.C.

Fort Lauderdale Retail Market Still Tight

Fort Lauderdale has experienced a slowdown in retail leasing activity over the past 12 months, according to Matthews Real Estate Investment Service, putting the local retail vacancy rate at a still-tight 3.7 percent. Natural population growth, along with the post-pandemic return of tourism to the area, have combined to boost retail expenditure.

The upshot of recent economic trends has translated into significant rent increases for retail space in the area, with annual growth of 2.5 percent in mid-2024, although this has decreased from a peak of a 10.9 percent rate at the end of 2022, Matthews noted.

During the period from 2020 to 2023, around 1 million square feet of retail was delivered to the Fort Lauderdale market, Matthews reported. Only a little over 190,000 square feet is now in the development pipeline.

The post Stiles Buys Metro Miami Retail Center appeared first on Commercial Property Executive.

TA Realty has purchased Ironwood Commerce Center, a four-building industrial park totaling 505,436 square feet in Opa-Locka, Fla., outside Miami. Link Logistics previously owned the asset, according to CommercialEdge data. CBRE brokered the deal on behalf of the seller.

Completed in 2022, Ironwood Commerce Center includes facilities with 32-foot clear heights, building depths ranging from 125 to 195 feet and 54-foot column spacing.

The property also features single and shared truck courts measuring between 120 and 180 feet and a combined 492 parking spaces. The industrial campus was 65 percent leased at closing.

READ ALSO: Florida Industrial Still Hasn’t Run Out of Gas

Located at 12700 NW LeJeune Road, the 28-acre park is less than 2 miles from the Miami-Opa Locka Executive Airport, while the Miami International Airport is about 8 miles south. The Golden Glades Interchange project—which is set to construct 32 new bridges to bolster regional mobility—is roughly 5 miles away.

The property is also across the road from Ironwood Commerce Center Phase Two, a $90 million, six-facility industrial development encompassing 740,000 square feet. Link Logistics broke ground on the project rising on the site of the former Opa-Locka Hialeah Flea Market last year.

The CBRE crew that represented the seller included Vice Chairmen Jose Antonio Lobón, Frank Fallon and Trey Barry, as well as Vice President Royce Rose, among others.

Miami’s resilient industrial scene

Miami’s industrial investment volume witnessed increased activity during the first three quarters of the year, according to a Transwestern report. Sales totaled $342.1 million, topping the figure registered during the same period of 2023 by $62 million.

The market’s industrial vacancy rate stood at 5.0 percent in September, marking a 250-basis-point increase year-over-year, the same source shows. The index still remained 120 basis points below the U.S. average.

In one of the more significant transactions of the nine-month interval, Tishman Speyer made its first acquisition in the South Florida industrial market. The firm purchased a two-building campus encompassing 256,000 square feet in Pompano Beach.

Another important deal for the market closed last month, when Blackstone sold a 1.4 million-square-foot portfolio to Longpoint Partners for $331.3 million. The collection included 26 facilities, of which more than a third were in Miami-Dade County.

The post TA Realty Buys Metro Miami Industrial Park appeared first on Commercial Property Executive.

Regus has fully leased 429 Lenox, a 45,789-square-foot Class A flex office building in Miami Beach, Fla. The lease covers more than 10 years, according to the Commercial Observer. 

Colliers Vice Chair Stephen Rutchik and Vice President Ana Paula worked on behalf of the landlords, Azora Exan, while JLL Executive Vice President Adam Bernstein represented Regus in the transaction. 

Azora Exan acquired the property at 429 Lenox Ave. in 2022 from Goddard Investment Group for $37 million, with the help of a 10-year $19 million permanent loan originated by Abanca Corporacion Bancaria, according to CommercialEdge data. 

WeWork, the building’s previous tenant, closed its flex office location in May. 

Originally designed by Kobi Karp, 429 Lenox was built in 1949 and underwent cosmetic renovations in 2000. The property features a fitness center and a rooftop deck. The five-story office building is divided into three floors of shared workspaces and private offices and two levels of parking. The new coworking location will function under Regus’ SPACES brand. 

Located in Miami’s South Beach neighborhood, the property is just off Florida State Road 907, which connects the office building to downtown Miami, some 6 miles west. Major thoroughfares in the area also include interstates 395, 95 and 195. The flex office is across the street from the Fifth & Alton shopping center, anchored by Target and T.J. Maxx.

Demand for flexible workspaces in Miami Beach continues to rise. The office market remains competitive, with an overall vacancy rate of 8.7 percent in the third quarter, and 340,298 square feet of new construction underway.

The post Regus Inks Full-Building Lease in Miami Beach appeared first on Commercial Property Executive.

The funding reportedly will enable the ongoing leasing of the property, whose tenants already include Puttery, Velvet Taco, Sea Saw/Shinso, Chama De Fogo, Midtown Boba and Collectors Club.

Wynwood Walk is at 230 N.W. 29th St. in Miami, was completed in 1978 and is about 77 percent occupied, according to information provided by CommercialEdge.

Thor Equities has secured more than $100 million in financing with ACRES in the past 30 days. Earlier in November, Thor closed a $68.5 million construction loan for 377 Carlls Path in Deer Park, N.Y. This financing will be used to develop a 310,500-square-foot Class A industrial facility.

READ ALSO: Retail’s Post-Pandemic Recovery

Thor has also recently acquired a 270-acre industrial property in metro Atlanta, improved with a 506,220-square-foot facility with a dedicated 100 MVA substation and 50 MW power output. Thor describes the site as having the infrastructure needed for the development of data center or advanced manufacturing space.

Staying strong

Another recent deal, too, evidences the breadth of Thor Equities’ activities. In June the company acquired a 250,000-square-foot industrial facility in Laredo, Texas. The building was completed in 2023 and is occupied by a customs broker under a five-year lease.

Miami-Dade County’s retail market continues to absorb new construction faster than the admittedly limited quantity of deliveries, according to a third-quarter report from Colliers. Leasing in the latest quarter total 314,000 square feet, versus new supply of just 28,000 square feet.

It’s thus unsurprising that rents are up by 6.3 percent year-over-year, to $46.00 per square foot, triple net. Colliers predicts that current conditions will lead to metro Miami retail property values outperforming the national average.

The Wynwood submarket has a total vacancy of 6.5 percent on an inventory of 2.9 million square feet.

The post Thor Equities Secures Loan for Miami Retail Center appeared first on Commercial Property Executive.

Most recently, Bayview Asset Management renewed its 55,071-square-foot lease at the Office at Merrick Park, a Class A office space located at 4425 Ponce de Leon Blvd. Colliers Vice Chair Stephen Rutchik and Vice President Tom Farmer represented landlord Brookfield Properties, while Matthew Cheezem of Cushman & Wakefield worked on behalf of the tenant.

This lease renewal—one of South Florida’s largest office deals this year—highlights Coral Gables’ competitive edge against other markets in the region. Commercial Property Executive asked Farmer to talk about trends shaping Coral Gables’ growth as a premier business destination in South Florida.

READ ALSO: Growth in Office Tenant Costs Moderates

How has Coral Gables grown into such a sought-after submarket? What has led to its competitive standing?

Farmer: Coral Gables has historically been a premier suburban office market, due to its location within easy reach of all of Miami-Dade County and defined by Mediterranean architecture, and its stellar demographics. In recent years, rent appreciation and constrained supply in the Miami CBD has caused office tenants to look further afield, and Coral Gables has reaped the benefits—maturing into a strong, stable market. 

Is there a particular sector or tenant type showing increased interest in the area?

Farmer: Tenants are looking for exciting spaces in office buildings that reflect their image to clients and help them to attract and retain talent. Coral Gables has delivered that in recent years. Many sectors, including financial service firms, law firms, coworking operators, biomedical research, travel and tourism, and tech firms have established new locations in Coral Gables. 

After securing a lease renewal for almost half of the space at Merrick Park, Brookfield Properties now intends to begin capital improvements at the building. What impact do you expect these renovations to have?

Farmer: Brookfield Properties, who have owned Merrick Park since 2018, decided it was time to invest in the asset, with the focus on overall tenant experience, after analyzing the competing properties and feedback from prospects and existing tenants. The capital improvements are focused on visitor sense of arrival which begins in the parking garage, extend through the ground-floor lobby, and to the office elevators. The renovations are set to begin in November and should be completed by the third quarter of 2025. 

Besides the building’s fresh look after the renovation, what else will be making it stand out among competitors in the market?

Farmer: The Offices at Merrick Park offers unique advantages, relative to the competitive set in Coral Gables. As traffic around Alhambra Circle becomes more congested, Offices at Merrick Park offers a much easier commute for tenants and visitors from Coral Gables, Pinecrest or South Miami neighborhoods. Additionally, it has an above-market parking ratio of 4:1,000 square feet, and it’s connected to the adjacent Shops at Merrick Park Mall, offering access to all the amenities and food and beverage options the mall offers. 

To what extent do such improvements matter in attracting high-profile tenants considering the ongoing trend toward hybrid and remote work?

Farmer: Ownership groups, such as Brookfield Property Group, have made deliberate efforts to improve their assets to make them more attractive to office users which, in turn, has made it easier for employers to not only bring employees back to the office but also attract new talent. Several have made the decision to update lobbies and common areas.

Other capital improvements such as the addition of fitness centers and conference facilities, which are generally free of charge for tenant usage, have also been very impactful. Many landlords have also made the decision to take existing vacancies and create move-in-ready spec office spaces with upgraded finishes to meet tenant demands. The Offices at Merrick Park offers shorter commute times to and from many Miami suburbs, which supports hybrid work particularly well. 

Speaking of Miami suburbs, what attributes set Coral Gables apart from other high-demand business areas in South Florida?

Farmer: Coral Gables is centrally located within the county and offers an outstanding quality of life, with some of the best schools in the nation, cultural amenities, upscale retail and dining options that support tenants’ decisions to office away from the CBD, with the added advantage of lower office rental rates.

Home to the University of Miami—a private research university and academic health system—Coral Gables offers a highly skilled workforce, in which more than half of residents are fluent in another language and nearly 70 percent hold a bachelor’s degree and 25 percent have graduate or professional degrees—about three times the Miami-Dade County average. 

How do you see office space offerings in this submarket evolving over the next few years?

Farmer: Our expectation is that ownership groups will continue to invest in their assets, improving them aesthetically as well as adding amenities to capture activity from both relocating and new-to-market tenant users. We also expect landlords to continue the trend of having robust spec suite programs.

Landlords will continue to engage with architectural design firms to stay ahead of emerging trends to create move-in ready office spaces that meet the demands of the market. The introduction of Agave Holdings’ The Plaza Coral Gables as well as the 4225 Ponce from Constellation Group and The Boschetti Group—currently under construction—have raised the bar in Coral Gables in terms of office product quality and tenant experience. Existing office landlords have taken note and are making the necessary improvements to stay attractive and relevant.

The post How Coral Gables Is Cementing Its Status as a Top Office Market appeared first on Commercial Property Executive.

Longpoint Partners has acquired a 26-building, 1.4 million-square-foot industrial portfolio in South Florida for $331.3 million. Blackstone sold the assets, according to the Commercial Observer.

The infill, last-mile facilities had an average occupancy rate of 97 percent upon closing. Delivered between 1964 and 2003, the light industrial properties feature an average clear height of 21 feet, as well as 50- to 200-foot truck court depth. Notably, nearly a quarter of the portfolio’s expanse comprises office space.

The investor will implement a value-add strategy, according to Longpoint. The investor’s approach involves physical repositioning, adaptive reuse and development.

READ ALSO: Shallow Bay Industrial’s Deep Potential

More than a third of the facilities are in Miami-Dade County, with the remainder in Broward and Palm Beach counties. The last-mile properties will benefit from the Golden Glades Interchange Enhancement, which is set to add 32 new bridges to augment regional mobility between seaports and airports.

The CBRE team that represented the seller included National Partners Vice Chairmen Jose Lobón, Frank Fallon and Trey Barry, as well as Vice President Royce Rose, to name a few.

Longpoint’s latest purchase isn’t its sole portfolio investment in South Florida. Just last year, the investor paid $260 million for a 25-building deal in Greater Miami and Fort Lauderdale, Fla. Seagis Property Group sold the 1.4 million-square-foot asset collection.

The investor is active outside of Florida as well. This summer, Longpoint made its entrance in the Bay Area industrial market by acquiring a three-building, light industrial portfolio in Fremont, Calif., for $31.5 million.

Investors bullish on last-mile assets

Over the past several years, investment in last-mile distribution facilities has increased significantly, Moody’s Senior Economist Ermengarde Jabir previously told Commercial Property Executive.

The niche took off as investors preferred such facilities over assets in traditional locations, according to a 2022 Wealth Management Real Estate survey. Additionally, the survey also found that the price per square foot for last-mile facilities grew at a compound annual rate of 17.2 percent between 2017 and 2022.

Metro Miami’s bulk of industrial sales comprises small-scale facilities

Metro Miami’s industrial investment reflected the study’s findings. A large share of the facilities that changed hands during the first half of the year were under 50,000 square feet—in tune with the characteristics of last-mile properties—and posted a below-average vacancy rate year-over-year, according to a report by Marcus & Millichap.

The bulk of transactions closed below the $10 million mark, while the average price per square foot clocked in at $297 during the same period, Marcus & Millichap shows. Although the industrial deal flow softened compared to previous years, it remained on par with the activity recorded between 2015 and 2019.

The post Blackstone Portfolio Trades for $331M appeared first on Commercial Property Executive.

Lincoln Property Co. has received $68.2 million in refinancing for Royal Palm I and II, two Class A office buildings totaling 465,592 square feet in Plantation, Fla. Barclays provided the fixed-rate loan, in a deal arranged by JLL Capital Markets.

Lincoln Property purchased the office campus in August 2014 for $128 million from Duke Realty, with the help of a $66.5 million acquisition loan originated by Metropolitan Life Insurance Co., according to CommercialEdge information.

Built between 2001 and 2007, Royal Palm I and II rise eight, respectively nine stories on a 25.4-acre site. The property also includes a four-level parking garage with 1,927 car spots. Amenities feature conference rooms, a fitness center and a wellness room. Royal Palm I also incorporates 22,908 square feet of retail.

READ ALSO: Sizing Up the Prime Office Building Landscape

The tenant roster at the two towers includes Regus, Tobias Financial Advisors, American Global, Pediatric Associates, Upchurch Watson White & Max and Fort Lauderdale Eye Institute, among others, CommercialEdge shows.

Located at 850, 900, 950 and 1000 S. Pine Island Road, the office campus is some 9 miles from downtown Fort Lauderdale and has access to Interstate 595. Downtown Miami is 30 miles south.

Senior Managing Director Paul Stasaitis and Associate Maddy McMillen led the JLL Debt Advisory team that represented the borrower.

Miami—an expensive office market

Miami emerged as one of the most expensive office metros among gateway markets, with an average price of $354 per square foot year-to-date through August, according to CommercialEdge research. Its vacancy rate clocked in at 14.1 percent, well below the 19.4 percent national average.

In one of the largest financing deals this year so far, OKO Group and Cain International received a $565 million permanent loan from TYKO Capital for 830 Brickell, a 57-story, 638,355-square-foot building in Miami’s financial district. The high-rise is the second-tallest office tower in the city.

The post Lincoln Property Lands $68M Refi in South Florida appeared first on Commercial Property Executive.

BGO Cold Chain has purchased Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Miami. Truist Securities sold the asset for $60 million, according to Miami-Dade County public records. JLL brokered the deal on behalf of the seller.

BGO closed the deal as part of its Core Plus strategy. The property is fully occupied by Quirch Foods.

Medley Cold Logistics is a one-story warehouse at 7600 NW 82nd Place. It has 116,000 square feet of freezer space, more than 20,000 pallet positions, 32-foot clear heights, 29 loading docks and 236 vehicle parking spots. The property also includes a site available for further development or expansion options.

READ ALSO: Why Cold Storage Is Getting Hotter

The 15-acre property allows for access to U.S. Route 27, Florida State Road 826 and Interstate 75. Miami International Airport is 8 miles away, Port of Miami is 15 miles away and Fort Lauderdale-Hollywood International Airport is within 37 miles from the cold storage facility.

JLL Managing Director Luis Castillo, Senior Director Cody Brais and Associate Taylor Osborne led the Investment Sales and Advisory team that negotiated on behalf of the seller.

BGO ramps up cold storage investments

The Medley Cold Logistics purchase followed BGO’s acquisition of SkyChefs Cold Storage in 2023, a deal closed in joint venture with Iconic Equities that added to the company’s cold storage footprint in Florida.

BGO has three projects underway in the state—in Tampa and Jacksonville. The company’s portfolio includes more than 70 cold storage assets purchased or under construction.

This week, BGO Cold Chain started construction on Venture Park Cold at ISP in Long Island, N.Y., in partnership with Venture One. In September, it broke ground on a facility in Kansas City, Mo., which will be mostly occupied by Flora Food Group.

In late 2023, BGO served as equity partner in the recapitalization of a nearly 1.5 million-square-foot cold storage portfolio, together with Saxum Real Estate. The six facilities are in major distribution hubs in the country and are mostly occupied by Arcadia Cold Storage & Logistics.

The post BGO Pays $60M for Miami Cold Storage Facility appeared first on Commercial Property Executive.

Nuveen Real Estate has sold 701 Brickell, a 685,279-square-foot trophy office tower in Miami. Morning Calm Management and its partner acquired the Class AA asset for $443 million in an all-cash deal. JLL represented the seller and procured the buyer.

The deal marks the second-largest office transaction in Florida’s history. The largest was Ponte Gadea’s $540 million purchase of the Southeast Financial Center, a 1.2 million-square-foot trophy tower in Miami’s Central Business District. JLL brokered that 2016 transaction as well.

READ ALSO: CRE Sentiment Index Hits All-Time High

According to Bloomberg, Nuveen tapped JLL for 701 Brickell’s sale in April. Back then, the brokerage firm expected the high-rise to fetch upward of $500 million. Just last month, the same source reported that Elliott Investment Management neared a deal to purchase the asset for $450 million.

A glimpse inside the trophy tower

Nuveen Real Estate—formerly TIAA Real Estate—acquired the 1986-built 701 Brickell in 2002. MetLife Real Estate Investment sold the asset for $172 million, CommercialEdge data shows. In 2016, the property became subject to a $184 million loan issued by Northwestern Mutual, set to mature in 2026.

In 2022, Nuveen wrapped up the office tower’s renovation efforts. The company earmarked $30 million in capital expenditures, while JLL and Origin Construction led the overhaul. As part of the revamp, the main lobby received a facelift and the crew installed a touchless entry system. Further additions included a new gym, tenant-only lounge and conference center, among other amenities.

The tower rises 33 stories and features floorplates of approximately 22,120 rentable square feet. In line with green building trends, 701 Brickell received LEED Gold, Wired Gold, Fitwel and Energy Star certifications. The tenant roster includes law firm Holland & Knight—which renewed its commitment to 121,032 square feet of office space last year—as well as Bank of America and BlackRock.

Located inside Miami’s financial district and neighboring the downtown area, the building is next to 801 Brickell, which Nuveen sold last year for $250 million to a joint venture between Monarch Alternative Capital and Tourmaline Capital Partners.

Nuveen Senior Director Charles Russo spearheaded the sale efforts. The JLL Capital Markets team representing the seller included Executive Managing Director Manny de Zarraga, Senior Director Matt McCormack, Managing Director Ike Ojala and Senior Managing Director Hermen Rodriguez. Senior Managing Director Mike McDonald provided the team with support at a national level.

Miami’s office assets outprice national averages

The office transaction volume in metro Miami clocked in at $543 million year-to-date as of August, according to a report by CommercialEdge. Assets changed hands at $348 per square foot, above the national average of $173 per square foot.

Meanwhile, the metro’s asking office rents grew by 11.1 percent over the year—overshadowing the national average of 2.7 percent—and landed at $32.78 per square foot, the same source shows. Magic City’s top listing was 701 Brickell at $140 per square foot.

Miami’s office vacancy rate increased by 80 basis points during the same period, climbing to 14.1 percent in August, However, the national rate spiked by 200 basis points year-over-year, settling at 19.4 percent that month.

The metro’s office inventory is slated to rise further as OKO Group and Cain International will bring online 830 Brickell, a 57-story, 638,355-square-foot Class A project in Miami’s financial district. In July, the duo secured a $565 million permanent loan originated by TYKO Capital to refinance previous debt. Completion is expected this quarter.

The post Nuveen Sells Miami Trophy Tower for $443M appeared first on Commercial Property Executive.

Benderson Development has purchased The Shops at Midtown Miami, a 347,740-square-foot, grocery-anchored retail center in Miami. SITE Centers sold the asset for $83.8 million in a transaction arranged by JLL.

It was only a few days prior to this transaction that Benderson acquired Cypress Trace, another grocery-anchored center, in Fort Myers, Fla., also from SITE Centers. The firm’s Sunshine State portfolio also includes Carillon Place in Naples, Glengary Shoppes in Sarasota and Linton Commons in Delray Beach, among others.

The Shops at Midtown Miami, up close

Built in 2006, The Shops at Midtown Miami was 98.3 percent leased at the time of sale. Tenants include national retailers such as Target, Ross Dress for Less, Dick’s Sporting Goods, Marshalls and HomeGoods.

The center occupies more than 18 acres at 3401 N. Miami Ave., features 2,860 structured garage parking spaces and attracts more than 3.4 million annual visitors. The location is proximate to interstates 95, 195 and 395, as well as Miami Beach, the city’s downtown, the Design District and Brickell.

JLL Senior Managing Director & Co-Lead Danny Finkle and Vice President Kim Flores, together with Senior Directors Eric Williams and Jorge Portela, led the Capital Markets Investment and Sales Advisory team that represented the seller.

Sunny climate

“The South Florida market remains high on the target list for investors across all asset classes, based on the high barriers to entry, the continued employment and population strength,” Finkle told Commercial Property Executive. “Retail has been a prime beneficiary as retail fundamentals in the region are exceptional and limited high-quality sale offerings come to market. In particular, South Florida’s most infill retail centers are highly coveted and are driving a material pricing premium,” he added.

In late July, the partnership of SJC Ventures and Nuveen Real Estate received a $69.4 million loan, arranged by CBRE Capital Markets, for the development of an 83,300-square-foot shopping center in Doral, Fla., that is already 69 preleased. Construction is scheduled to begin this fall.

The post Benderson Grows South Florida Footprint—Again appeared first on Commercial Property Executive.

As of August, Miami’s office market had 2.8 million square feet of space under construction, representing 3.9 percent of existing stock—well above the national figure of 1.0 percent.

Miami ranked third on a national level, behind Austin, Texas, which led with 4.6 percent of total stock, and Boston with 4.4 percent. Other peer markets trailed the national figure, including Los Angeles (0.9 percent), Washington, D.C., and Manhattan, both with 0.6 percent.

The metro is among the top markets for potential office-to-residential conversion. CommercialEdge’s Conversion Feasibility Index is a new tool that helps identify the amount of office space in the top U.S. markets that could be redeveloped into residential assets, based on a comprehensive list of building features. The index showed that in July, Miami’s office stock had a 16.1 percent conversion potential, higher than the national average of 14.8 percent of total stock.

Large office projects boosting Miami’s pipeline

In terms of under-construction office space, the Magic City’s pipeline outperformed that of Manhattan (2.7 million square feet), Los Angeles (2.6 million square feet), Washington, D.C. (2.2 million) and Seattle (2.1 million). Across peer markets, Chicago had the smallest pipeline, with 811,394 square feet underway, while Boston led the rankings with 11.2 million square feet.

Year-to-date through August, developers broke ground on 538,842 square feet of space across six properties, while only four projects came online, totaling 249,138 square feet.

The Offices at 601, a 155,100-square-foot high-rise, was the largest development to come online in the first eight months of 2024. Rising 51 stories at 601 Northeast 1st Ave., the tower was developed by an entity linked to Galmut Family and designed by prestigious architecture studio Arquitectonica.

The list of significant office projects underway remained unchanged since our last update. 830 Brickell Plaza remains the largest development in the metro, with completion planned for the end of September 2024. The high-rise will add 640,000 square feet of space to the city’s inventory. The Class A+ office tower is developed by OKO Group and Cain International.

Royal Caribbean’s new headquarters, a 10-story property of 380,000 square feet, is expected to come online in January 2026. Rising at 1050 Caribbean Way in Miami’s central business district, the development is the second-largest project being constructed in the metro.

Miami office deal volume increases

Year-to-date through August, 29 properties totaling 1.7 million square feet traded in Miami for a combined $588 million, marking a 93.8 percent growth year-over-year. The metro’s deal volume has significantly increased since 2024’s first quarter, when it totaled $207 million. This jump in deals put Miami in third place across similar markets, with Seattle (171.7 percent annual growth) and Washington, D.C. (115.0 percent) topping the list.

Notable office deals in the metro included MSC Group’s $67 million acquisition of a 130,000-square-foot office component at the soon-to-be completed Block 55 development. The commercial unit that changed hands was developed as MSC Group’s future headquarters.

Another significant deal was Black Lion Investment Group’s $62.5 million acquisition of The Lincoln, a 161,448-square-foot office building in Miami Beach, Fla. The buyer plans to invest $50 million in redeveloping the asset into a luxury office concept dubbed Class X.

Year-to-date through August, Miami’s average price clocked in at $354 per square foot, significantly above the national average of $168 per square foot. Across gateway markets, Miami emerged as one of the most expensive office metros, outpaced only by Los Angeles ($423 per square foot) and Manhattan ($370 per square foot). Meanwhile, Washington, D.C. ($246 per square foot), Seattle ($187 per square foot) and Boston ($156 per square foot) lagged.

Miami’s office vacancy rate on the rise

Miami’s office vacancy rate fluctuated since the start of the year—from the 12.4 percent recorded in January to 14.1 percent in August, when it was 80-basis-points higher than in August 2023. Even with this slight increase, Miami’s August rate was well below the national figure of 19.4 percent.

One of the most significant leases signed in the metro since the start of the year is Pebb Capital’s 79,141-square-foot deal with DigitalBridge at Sundy Village, a 7-acre mixed-use campus with 180,000 square feet of Class A office space nearing completion in Delray Beach, Fla. The tenant will relocate its headquarters to a four-story building within the campus.

Another recent leasing deal is Adler Real Estate Partners’ 42,563-square-foot renewal with Boston Proper at an office and flex business complex in Boca Raton, Fla. The tenant will maintain its headquarters at 1155 Broken Sound Parkway NW, a 62,729-square-foot office building within The Park at Broken Sound, where the landlord owns three buildings.

The coworking landscape keeps steady

As of August, Miami’s coworking sector comprised 2.9 million square feet of shared space. Across gateway metros, Manhattan boasted the largest flex office stock of 11.3 million square feet, followed by Chicago (6.3 million square feet), Los Angeles (6.3 million square feet) and Washington, D.C. (6.2 million square feet).

The metro’s coworking space as percentage of all leasable office space reached 3.7 percent, outperforming Manhattan (2.3 percent), Los Angeles (2.1 percent), Washington, D.C. (1.6 percent) and Boston, which was on par with the national figure of 1.8 percent.

Year-to-date through August, Regus was the flex office provider with the largest footprint in Miami, followed by WeWork, Spaces, Quest Workspaces and Industrious.

In August, Venture X signed a 28,959-square-foot long-term deal at a two-building office campus in Boca Raton, Fla., currently undergoing an extensive redevelopment program. The company will open a new coworking space at the 147,627-square-foot campus, owned by Grover Corlew.

The post Miami Office Deal Volume Increases, Prices Surge appeared first on Commercial Property Executive.

Continental Realty Corp. has sold Ridge Plaza, a 138,554-square-foot regional shopping center in Davie, Fla. An affiliate of JBL Asset Management purchased the asset for $22.3 million. JLL Capital Markets represented the seller.

The shopping center came online in 1984 and was 98.6 percent occupied at the time of the deal. Anchored by Paragon Theaters and Off The Wall Family Entertainment Center, the four-building Ridge Plaza also features a diverse mix of retailers such as Goodwill, Dunkin’ and Metro by T-Mobile.

Senior Managing Director Danny Finkle, Senior Directors Eric Williams and Jorge Portela and Vice President Kim Flores led the investment advisory team which represented CRC.

READ ALSO: How Retail Properties Are Getting Greener

Located at at 9000-9200 W. State Road 84 on some 13 acres, the retail center is in Fort Lauderdale’s Davie submarket. Ridge Plaza is near Interstate 595, for direct access to downtown Fort Lauderdale. The property serves approximately 640,000 residents, in an area where the average annual household income is more than $100,000, according to JLL.

In the second quarter of this year, Broward County continued to witness positive retail industry trends across key metrics and adapted to increased supply, according to a recent Colliers report. Broward County has risen into the top 10 markets for highest retail asking rates in the U.S. The same report shows that the vacancy rate in Fort Lauderdale clocked in at 4.1 percent and the average asking rate reached $33.06 per square foot. The submarket also had 75,795 of square feet of retail space under construction as of the second quarter.

Transactions through a close-ended fund

Continental Realty Corp. purchased Ridge Plaza on behalf of Continental Realty Fund IV L.P. for $21.3 million back in 2017.

Through its Continental Realty Opportunistic Retail Fund I LP, CRC has also entered Virginia this year, with the acquisition of a 160,830-square-foot neighborhood shopping center in Richmond. ShopCore sold the asset for $22 million, in a transaction brokered by JLL. CRC reached the final closing of the fund last year. At the time, the firm raised $200 million in the fund itself and $40 million in two co-investment vehicles.

On behalf of Continental Realty Fund V L.P., the company also recently sold a 292,000-square-foot regional shopping center in Hagerstown, Md., for $36.3 million. JLL brokered the transaction on behalf of CRC.

The post CRC Sells Fort Lauderdale-Area Shopping Center for $22M appeared first on Commercial Property Executive.

The Onicx Group has received $20.7 million in refinancing for Mercy Medical Arts, a 104,238-square-foot medical office building in Miami. Lake Michigan Credit Union provided the loan, according to Miami-Dade County records. Berkadia Medical & Life Sciences represented the borrower.

Previous financing included a $20 million construction loan originated by Centennial Bank in 2015, CommercialEdge data shows.

The Class A property came online in 2017 and was 65 percent leased at the time of the current deal to a variety of medical office building tenants, including HCA Healthcare, Collaborative Women’s Care, Vizcaya Dental Arts and Greyledge Technologies.

READ ALSO: These Markets Top MOB Investment Activity

The five-story building features two passenger elevators, 26,405-square-foot floorplates and controlled access. The medical facility provides such services as OB/GYN, plastic surgery, dermatology and sports medicine.

Located at 3683 S. Miami Ave., the 31.7-acre property is within the campus of HCA Mercy Florida Hospital, having access to Interstate 95. Downtown Miami is less than 4 miles northeast. Other medical centers in the surrounding area include Miami General Medical Center, Luz Medical Center, Comprehensive Rehabilitation Center, Palm Medical Network and Coral Way Medical Group, among others.

The Berkadia team included Senior Managing Director Sabrina Solomiany, Vice President Mike Cerny and Analyst Chris Meyer.

Financing health-care assets

Despite the impact of high interest rates and inflation on all sectors of commercial real estate, medical office buildings are still on investors’ radar. The stable and long-term occupancy in health-care facilities, coupled with ongoing demand, enable financing opportunities.

Earlier this month, Turner Impact Capital’s Healthcare Facilities Fund received $29.1 million in financing for Chula Vista Medical Arts I, a 64,231-square-foot medical office building some 10 miles from downtown San Diego. Proceeds will go toward property improvement.

Another recent financing deal involved a future 200,000-square-foot outpatient center in Bethany, Okla. Bethany Children’s Health Center received $167 million from local financial institutions and MidFirst Bank for the development of this four-story facility.

The post Onicx Lands Refi for Miami MOB appeared first on Commercial Property Executive.

Boston Proper has renewed its 42,563-square-foot office lease at Adler Real Estate Partners’ office and flex business campus in Boca Raton, Fla. Colliers negotiated the long-term deal on behalf of the tenant and CBRE assisted the landlord.

The women’s fashion brand will maintain its headquarters at 1155 Broken Sound Parkway NW, a one-story building totaling 62,729 square feet, with plans to upgrade the interior space in 2025.

The property is part of The Park at Broken Sound, a 700-acre mixed-use business campus, where Adler Real Estate Partners owns three facilities totaling 151,024 square feet. The landlord’s other properties there include a 41,117-square-foot office building at 1001 Broken Sound Parkway NW and a 47,178-square-foot flex office building at 1225 Broken Sound Parkway NW.

READ ALSO: Enhancing Work Environments Through Creative Offices

The three one-story properties came online between 1980 and 1981 and feature 41,117-square-foot floorplates and a total of 673 vehicle parking spots. The current ownership picked up the assets in 2016 from Prologis in a $38 million portfolio deal, CommercialEdge shows. Tenants include Johnson Controls, All-Tag Corp. and Smartmatic Corp., among others.

The approximately 17-acre campus is close to Boca Raton Airport and Interstate 95. The location is also 5 miles from downtown Boca Raton, 23 miles from downtown Fort Lauderdale, Fla., and 27 miles from Fort Lauderdale-Hollywood International Airport.

Colliers’ team of Executive Vice Presidents Scott Brenner and Derek Baker negotiated on behalf of Boston Proper, while the landlord was represented by CBRE Executive Vice President Kirk Nelson.

Expensive rents and low vacancy

Miami maintained its position as one of the most priciest office market in the Southern region, with an average asking rent price of $49.79 per square foot as of June, according to the latest CommercialEdge report. Austin followed with $42.52 per square foot, while Tampa, Fla., had one of the lowest asking rents in the region, with $29.23 per square foot.

The vacancy rate in Miami reached 12 percent, way below the national figure of 18.1 percent. The metro was the only one among the top 25 U.S. markets with an office-using growth rate exceeding 1 percent, as it’s still experiencing multiple corporate relocations.

One of Miami’s most notable office leases that closed since the start of the year remained DigitalBridge’s 79,141-square-foot deal at Sundy Village in Delray Beach, Fla. The investment firm relocated its headquarters at Pebb Capital’s $240 million master-planned development that will include 180,000 square feet of office space and 30,000 square feet of retail space.

The post Adler Partners Inks Miami-Area Office Lease Renewal appeared first on Commercial Property Executive.

Palmetto Central includes a five-story, 63,496-square-foot building at 1489 W. Palmetto Park Road and a four-story, 84,131-square-foot second building at 1499 W. Palmetto Park Road. Venture X will open a new coworking location by fully occupying the top floor at the office complex’s second building.

Notable tenants at Palmetto Central include Gilbane Building Co., Khospace, Rebound Finance, Platinum Choice Healthcare, Zenith Financial Network and the corporate headquarters of landlord Grover Corlew, according to CommercialEdge.

READ ALSO: Flight-to-Quality Is Leading the Flex Office Evolution

The two office buildings came online in 1979 and 1992, include two passenger elevators each and offer a total of 337 vehicle parking spots. Additional features include floor-to-ceiling windows, full-height hurricane impact windows, custom buildouts and amenities such as a tenant lounge, conference room and fitness center.

An ongoing $30 million redevelopment program at both buildings started by the ownership will include an upgraded lobby and common-area amenities, renovated facades, as well as new core mechanical systems.

Colliers Executive Vice President Derek Baker negotiated on behalf of the flex office provider. CBRE’s team of First Vice President Joe Freitas, Executive Vice President John Criddle and Senior Associate Max Pawk worked on behalf of the landlord, Grover Corlew.

Miami’s coworking sector

The 5-acre office campus offers immediate access to Interstate 95. The property is 4 miles from downtown Boca Raton, 10 miles from Pompano Beach, Fla., and 19 miles from Fort Lauderdale, Fla.

Miami had 1.6 million square feet of coworking space as of March, representing 3.7 percent of total leasable office space in the metro, one of the highest rates across peer markets.

Last month, Quest Workspaces opened its second location in the metro by signing a 23,454-square-foot leasing agreement in Doral, Fla. The company is fully occupying the seventh floor at Doral Center, a 290,157-square-foot office building.

The post Venture X Adds 29 KSF in Boca Raton appeared first on Commercial Property Executive.

The joint venture of SJC Ventures and Nuveen Real Estate has obtained a $69.4 million loan for the development of Doral Marketplace, a 83,329-square-foot shopping center in Doral, Fla. Construction is slated to begin this autumn, while the initial store openings are expected in the latter part of the following year.

CBRE Capital Markets’ Debt & Structured Finance arranged the financing, with Richard Henry, Mike Ryan, Brian Linnihan and JP Cordeiro working on behalf of the borrower. Doral Marketplace was already 69 percent preleased to 12 tenants at the time of the deal.

SJC Ventures and Nuveen purchased the 10-acre parcel for $32 million from Bridge Industrial, as reported by The Real Deal. Cushman & Wakefield represented the seller.

READ ALSO: 2024 Net Lease Retail Sales Volume & Cap Rates

Whole Foods Market will anchor Doral Marketplace upon its expected completion next year. The tenant roster will also include Shake Shack, First Watch, GoodVets, The Spot Barbershop, Encore Nails, VIO MedSpa and Apizza Brooklyn Resto + Vino, among others.

Located on the corner of NW 41st Street and NW 107 Avenue in Miami’s Airport West submarket, the development site is next to Bridge Industrial’s 2.6 million-square-foot Bridge Point Doral industrial project, currently under construction. Downtown Miami is some 14 miles away.

Miami’s available stock stands out nationally

Miami’s lack of available retail inventory stood out out nationally, the metro’s vacancy rate measuring just 2.9 percent in the second quarter of 2024, according to a recent Marcus & Millichap report. The Miami Airport submarket—which had the third largest stock—logged a 60-basis-point vacancy drop to 2.8 percent.

Only 543,000 square feet of new retail space is expected to come online in Miami by the end of the year, the report also shows. This would be the second time in more than a decade that the annual completion total will measure below 600,000 square feet.

The post Nuveen, SJC Ventures Get $69M for Miami Retail Project appeared first on Commercial Property Executive.

Bridge Industrial has begun demolishing the former headquarters of Ryder Systems in Miami, where it will develop a two-building, 326,448-square-foot Class A industrial complex. Bridge Point Flagler Station will come online on a speculative basis, with vertical construction starting later this year and completion expected in the third quarter of 2025.

“We are already seeing demand for Bridge Point Flagler Station,” Kevin Carroll, partner for the Southeast Region at Bridge Industrial, told Commercial Property Executive. “Even at this early stage, we have received a strong level of interest from various potential tenants who recognize the strategic advantages of this prime location and the quality of the facilities we are developing.”

READ ALSO: Industrial Development Pipeline Shrinks

The LEED-certified industrial complex will rise off NW 107th and NW 117th streets within Flagler Station, one of South Florida’s largest master-planned corporate parks which has its own dedicated Florida Turnpike interchange. The campus will have access to all major transportation routes in South Florida, including Dolphin Expressway, Palmetto Expressway and U.S. Route 27.

The 16.8-acre site is 15 miles from Miami International Airport, 18 miles from PortMiami and 30 miles from Fort Lauderdale-Hollywood International Airport and Port Everglades. The convenient location will also enable tenants’ access to a wide employee pool from both Miami-Dade and Broward counties.

A future Miami industrial campus

Bridge Industrial acquired the property from Ryder Systems in March 2023 for $42.1 million, marking the largest office transaction within the metro in the first quarter of 2023 and the fourth largest in the first half of 2023. The 248,989-square-foot office building had served as Ryder’s headquarters since 2005 but the company needed less office space post pandemic and decided to downsize its footprint. Bridge Industrial’s plans for the site align with the growing national trend of repurposing former office assets into modern industrial properties.

Carroll could not provide a total construction cost but did note “the investment in Bridge Point Flagler Station is substantial and reflects our commitment to creating high-quality, sustainable industrial spaces.”

READ ALSO: Are Construction Costs Stabilizing?

Building 1 will span 128,805 square feet and include 40 exterior docks, two drive-in doors, 142 car parking spaces and office space. The 197,643-square-foot Building 2 will have 44 dock doors, two drive-in doors, 198 car parking spaces and office space. Both facilities will feature 32-foot clear heights and a 180-foot shared truck court with seven trailer parking spaces. The property will have frontage on the Florida Turnpike.

JLL will serve as exclusive leasing agent. Executive Managing Director & South Florida Industrial Lead Brian Smith, Executive Managing Director Audley Bosch, Managing Director Matt Maciag and Senior Vice President Ana Rivera will spearhead the leasing efforts.

South Florida growth

Bridge Industrial has a large presence in South Florida and is one of the region’s most active industrial real estate developers, having acquired more than 740 acres in 22 separate transactions.

The company has more than 11 million square feet of Class A industrial space completed or under construction regionwide. Developments include Bridge Point Gratigny, a 409,189-square-foot logistics facility also in Miami, and Bridge Point Commerce Center, a 1.6 million-square-foot campus in Miami Gardens, Fla., among others.

In October, Bridge Industrial signed its first tenant at Bridge Point Doral, a Class A master-planned industrial development that will total 2.6 million square feet in Doral, Fla., at full build-out. The complex is just a few miles north of Bridge Point Flagler Station.

“Slated for completion in early 2025, we continue to see strong demand at Bridge Point Doral and have already had some preleasing success with a major food retailer, which signed on to occupy a 131,411-square-foot building (Building 6) upon completion,” Carroll told CPE.

The post Bridge Industrial Begins Office-to-Industrial Redevelopment in Miami appeared first on Commercial Property Executive.

OKO Group and Cain International have just closed on a $565 million permanent loan for 830 Brickell, a 57-story, 638,355-square-foot Class A+ tower being built in the Miami financial district. Provided by TYKO Capital, the new round of funding will pay off a combined $357 million construction loan that was provided by MSD Partners in 2019. 

New York-based TYKO Capital, established in August of 2023, is a joint venture between investment banker Adi Chugh and Elliot Investment Management. Since its founding, the firm has provided funding for multifamily developments in Charlotte, N.C., as well as in Brooklyn, N.Y., and Manhattan’s Chelsea neighborhood.

Beatriz Azcuy, a co-managing partner at Sidley Austin LLP, provided legal counsel for 830 Brickell’s owners. The law firm has also signed on to lease 60,000 square feet across three floors at the tower.

Goings-on at Brickell

The loan comes right as 830 Brickell, jointly developed by OKO Group and Cain International, is receiving its temporary certificate of occupancy. The project, the largest office development in the city, broke ground in 2020, topped out in June of 2022 and is expected to fully open this fall. Architecture firm Adrian Smith + Gordon Gill designed the building, while Italy’s Iosa Ghini Associati is designing the interiors. When completed, 830 will be the second-tallest office building in Miami, just 30 feet shorter than the Southeast Financial Center.

READ ALSO: Miami Office Transactions Take Flight in Q1

Tenants that have signed on to lease at 830 Brickell include Kirkland & Ellis, Microsoft, AerCap, Citadel, Santander Bank and Thoma Bravo. Kirkland’s lease was the largest of its kind to take place in 2022.

For many of these firms, the spaces at 830 Brickell are their first in Miami.

Ahead of its opening, 830 Brickell will offer floorplates ranging from 13,364 to 16,878 square feet, complete with column-free interiors and floor-to ceiling windows, according to CommercialEdge information. Amenities at the tower include an on-site restaurant and bar, fitness center, private conferencing facilities and ground-floor retail space. The building is in close proximity to the Brickell City Centre and Brickell Village, as well as local stops from Metrorail, Metromover and Brightline.

Is this the future of the office sector?

Owed in part to its proximity to retail, residential and entertainment spaces, the Brickell area’s office vacancy rate is 4 percent, in comparison to downtown’s 15.8 percent, according to CBRE Research.

In a close second to 830 in height, Sterling Bay and Key International announced the development of 848 Brickell, a 51-story tower that will span 750,000 square feet of office space, with 7,500 square feet of retail space on the ground floor.

The post Miami’s 830 Brickell Secures $565M in Financing appeared first on Commercial Property Executive.

Across the nation, demand for medical office buildings is persistent. As the population ages and the youngest of the Baby Boomers enter their 60s, the need for in-person health care is increasingly critical. But some markets in the U.S. are experiencing more demand than others, and as a result, some MOB spaces are commanding top dollar. In these areas, MOB brokerage business is unlikely to waver.

“I think there are a lot of markets across the U.S. with very attractive MOB opportunities but, like all real estate investments, the ‘hotness’ of the market is in the eye of the beholder,” Nathan Riley, principal, asset management at BGO, told Commercial Property Executive. “That said, I think an important determination to whether a market has the potential to be attractive is to look at the demographic trends through the lens of a medical professional.”

READ ALSO: 2024 Top CRE Brokerage Firms

And through the lens of someone in the medical field, access to patients and an increasing patient base is the key. This makes markets like those across the Sunbelt states particularly attractive as well as cities where people like to age in place—like Miami.

Southern states at large are presenting opportunity as well. “Many MOBs are looking to open locations in southern states so that they can serve snowbird patients both in their northern home bases and when they’re at their snowbird vacation homes down south,” said Eric Hoffman, vice president and national health-care sector lead at Project Management Advisors.

Medical tenants need people

Places with access to a tremendous pool of people, like Manhattan, have a large concentration of MOBs, too. With ready access via trains, cars and subways, certain parts of the city have a dearth of medical space available to a list of waiting potential tenants, said Jason Muss, president of Muss Development.

“Then there are specialized areas like Boston, Miami and Los Angeles that present tremendous medical benefits,” Muss continued.

Locating in a big urban core as a top doctor provides an access advantage as well as a centrality benefit, pushing rental rates up. Many medical uses—surgery centers, hospitals, cancer treatment facilities, etc.—seek out urban centers before the suburbs. For these types of tenants, brokers must study the surrounding population first to then understand the real estate need.  

The post MOB Tenants Pay a Premium for These Markets appeared first on Commercial Property Executive.

According to The Wall Street Journal, the 84-year-old Ross will remain as Related’s non-executive chairman and will retain his majority ownership stake in the private company. As of year-end 2023, Related had more than $60 billion in assets across the office, multifamily, retail and hospitality sectors.

Reporting from The Wall Street Journal states that Ross is set to be replaced by CEO Jeff Blau and COO Kenneth Wong.

The mogul’s next moves

Following his departure, Ross, a Palm Beach, Fla. resident, intends to rebrand, relaunch and lead Related Southeast, the firm’s South Florida-focused investment and development subsidiary as Related Ross. Related Southeast is currently the largest office owner in downtown West Palm Beach, holding more than 3 million square feet. Properties owned and developed by the company include One Flagler, 360 Rosemary and CityPlace Tower.

READ ALSO: CRE Outlook Remains Stable Despite Headwinds

Ross, who also owns the Miami Dolphins, was quoted by WSJ as being open to joint ventures between Related and Related Ross.

Related’s recent works

Ross, a tax attorney by trade, founded Related in 1972 as Related Housing Cos., which was geared primarily toward developing affordable housing. In 1979, Ross and Miami-based business partner Jorge Pérez established the separate Related Group, growing into the development of commercial properties, hotels and luxury condominiums. The associates parted ways in 2022.

Ross’ firm changed its development focuses in the 1980s to office spaces, luxury condominiums and retail spaces.

Notable recent projects are primarily on the mixed-use front, and include Manhattan’s Hudson Yards and Deutsche Bank Center, Miami’s One Brickell City Centre and 901 South Congress in Austin, Texas.

Earlier this year, the firm announced the planned swapping of industrial space from office at Related Santa Clara, an $8 billion, 9.2 million-square-foot mixed-use project taking shape in Silicon Valley.

The post Related Cos.’ Ross Steps Down, Launches New Firm appeared first on Commercial Property Executive.

CMC Group has obtained $69.9 million in refinancing for 4000 Ponce, a 190,000-square-foot office building in Coral Gables, Fla., a Miami submarket, according to REBusinessOnline.

City National Bank of Florida provided the floating-rate, five-year loan, while a JLL team arranged the deal on behalf of the borrower.

The note replaces a $74 million loan originated by Allianz Life Insurance Co. of North America in March 2014, according to Miami-Dade County public records.

READ ALSO: Miami Office Transactions Take Flight in Q1

The company developed the Class A property in 2002. The nine-story building consists of 150,000 square feet of office space and 32,000 square feet of ground-floor retail, as well as The Collection, a luxury car dealership. The mid-rise features floorplates averaging 30,000 square feet, three passenger elevators and around 465 parking spaces.

Office tenants at the property include Steinway & Sons, Coldwell Banker, Hemisphere Media Group and Warner Brothers Entertainment, CommercialEdge data shows. The property was 90 percent leased at the time of the transaction.

The building is at 4000 Ponce de Leon Blvd., adjacent to the Shops at Merrick Park and about 5 miles from downtown Miami and Miami International Airport. Downtown Coral Gables is less than 2 miles away.

JLL Senior Managing Director Paul Stasaitis, Associate Paul Adams and Capital Markets Analyst Nicole Barba arranged the financing on behalf of CMC Group.

Miami’s strong office sector

Miami’s office sector remained strong, registering $318 million in transaction volume year-to-date as of May, according to a CommercialEdge office report. Properties traded for $339 per square foot on average, more than double the $165 national average.

The metro’s vacancy rate in May stood at 12.3 percent, one of the lowest nationally. Boston took the lead with only 10.8 percent of its office inventory vacant, while Detroit (20.8 percent) and the Bay Area (20.0 percent) were at the opposite pole.

The post CMC Group Lands $70M Refi for Miami Office Building appeared first on Commercial Property Executive.

The joint venture between BBX Logistics Properties, a subsidiary of BBX Capital Inc., and FRP Development Corp. plans to develop The Park at Davie, a two-building, Class A, 182,000-square-foot logistics campus in Davie, Fla.

The partnership purchased the Signature Grand, a 101,812-square-foot retail facility, and intends to demolish it to make room for the two logistics buildings. Map Legacy Inc. was the asset’s former owner, according to CommercialEdge data.

Built in 1995, the Signature Grand held social gatherings, primarily focusing on weddings—of which it hosted more than 12,000—and corporate events. North of 2 million people have walked its halls in nearly three decades. However, the venue has been closed since earlier this year.

READ ALSO: How Logistics Developers Can Surmount Inventory Hurdles

Davie Assistant Town Administrator Phillip R. Holste pointed out that the joint venture has submitted its Ware Malcomb-designed site plan for The Park at Davie, as reported by the South Florida Sun Sentinel. The project is currently awaiting the Planning and Zoning Board’s recommendation, as well as the Town Council’s approval. The developers expect to break ground in this year’s fourth quarter and anticipate completion in 2025.

Located at 6900 W. State Road 84, the 11.3-acre site is less than 1 mile away from Interstate 595 and some 3 miles from U.S. Route 441. The last-mile redevelopment will operate roughly 10 miles west of the Fort Lauderdale-Hollywood International Airport and Port Everglades.

BBX Logistics’ industrial ventures

BBX Logistics Properties focuses primarily on industrial speculative and build-to-suit developments throughout markets in Florida and the Eastern U.S.

One of its other projects also involves a partnership with FRP. Dubbed The Park at Lakeland, the industrial development will encompass roughly 213,500 square feet of logistics space on a 22.5-acre site in Lakeland, Fla.

Last month, the company broke ground on The Park at Delray. Upon completion, the 40-acre campus in Delray Beach, Fla., developed in a joint venture with PCCP, will comprise three facilities totaling north of 670,000 square feet.

Metro Miami’s industrial pipeline

Greater Miami’s industrial supply pipeline held just short of 7.9 million square feet of under-construction space as of July, according to CommercialEdge data.

Terreno Realty Corp.’s Countyline Corporate Park Phase IV Building 40 recently exited the pipeline. The 186,000-square-foot industrial facility, part of a 121-acre campus developed by VS Real Estate in Hialeah, Fla., came online in May.

The post BBX Logistics JV Eyes Miami-Area Redevelopment appeared first on Commercial Property Executive.

All properties, varying in size, will be MedSquare locations, a brand created recently by MAS AJP. The first in the series, dubbed MedSquare Health, is a 120,000-square-foot property at 9408 SW 87th Ave. in Kendall, Fla., that came online in 2021.

MedSquare Health includes such amenities as oversized passenger and service elevators, fiber optic internet, meeting rooms, a cafe, and dedicated HVAC and electrical for each office. The property also has a parking ratio of 7 spaces per 1,000 square feet, with valet and reserved parking.

In 2022, MAS AJP developed MedSquare Place + The Contemporary, a 95,000-square-foot medical office building together with an 85-unit independent living community at SW 92nd Ave. and Coral Way in the Westchester neighborhood of Miami.

READ ALSO: These Markets Top MOB Investment Activity

The launch of the joint venture aims to bolster the partners’ market position in the health-care sector. Flagler, which manages more than $1 billion in health-care assets worldwide, including inpatient, outpatient and post-acute care facilities, brings its investment services and management expertise to the table, while MAS AJP brings its construction and development experience.

Due to the obsoleteness of much of the existing medical properties stock in the U.S., the need for new Class A medical buildings in the marketplace is “dire,” according to Chris Coots, a founding partner of Flagler.

MOB vacancies low, development slow

The fundamentals of the overall U.S. office market may be weak, but medical office properties are considerably stronger, with vacancies still under 10 percent nationwide as of mid-2024, according to Marcus & Millichap’s Institutional Property Advisors. That is up from pre-pandemic levels of around 6 percent, but still at least half the vacancy rate of ordinary office assets.

Still, MOB development is down as the property type faces the capital market constraints common to all commercial real estate. Overall completions will drop from about 12.5 million square feet in 2023 to about 10 million this year, IPA forecasts.

Investor interest has slacked off as well, IPA notes. During the 12 months ended in March 2024, transaction velocity was down by nearly 40 percent compared with the same period a year earlier. Most of the trades that did take place were in the $1 million to $10 million price range, where capital market access isn’t always as important as in bigger deals.

The post Flagler, MAS AJP to Develop South Florida MOBs appeared first on Commercial Property Executive.

The additional space at 1450 Brickell will accommodate about 400 more bank employees across the company’s various lines of business. Currently more than 500 employees work for the bank in the building.

The expansion of Chase’s client base in Miami and South Florida is spurring the move, according to Jonathan Bello, head of Chase for Business Miami and co-chair of the company’s South Florida Market Leadership Team. He also noted that the expanded location will help the bank in its operations in Latin America.

The two-year project will renovate and expand the bank’s Miami Client Center, a meeting and function space that hosts client and employee events. The expansion will also include updated work floors, meeting rooms and common areas for the bank in the 34-story office tower.

Building amenities at 1450 Brickell include an outdoor terrace adjacent to a fitness center and conference center on the 14th floor. Other tenants include City National Bank, H.I.G. Capital, Morrison, Brown, Argiz & Farra and Boston Consulting Group.

Miami’s office market holds steady

Though office absorption in Miami was down by about 30 percent in the first quarter of 2024 compared with a year earlier, the market nevertheless tallied 700,000 square feet of positive absorption for the quarter—something not every major market can say, and which is only a little less than pre-pandemic quarterly averages, according to JLL data.

READ ALSO: NAREE Special Report: There’s Real Estate and Then There’s Real Estate

Unlike other Florida office markets, Miami has an active office development pipeline, with almost 220,000 square feet delivered during the first quarter, and more than 1.9 million square feet under development, JLL notes.

Overall direct asking rates increased 15 percent year-over-year in the first quarter to more than $60 per square foot, JLL reports. Class A direct asking rents jumped by almost 17 percent compared a year ago, with the sought-after Brickell and Miami Beach submarkets recording the largest increases.

A recent headline on the investment front is Black Lion Investment Group’s $63 million purchase of The Lincoln at 1691 Michigan Ave. The firm has plans to redevelop the building into a mixed use property that includes luxury office and retail space.

The post JPMorganChase Goes Double in Miami appeared first on Commercial Property Executive.

Tishman Speyer has entered South Florida with the acquisition of Rock Lake Business Center in Pompano Beach. IDI Logistics sold the 35-acre property for $100.2 million.

The industrial campus currently includes two fully leased warehouses totaling 256,000 square feet. In addition, the property was entitled for the development of two rear-load buildings encompassing 243,000 square feet.

Completed in 2020, one of the existing warehouses totals 136,538 square feet while the other stands at 119,222 square feet. The buildings feature 32-foot clear heights, 84 dock high drive-in doors, 690 car parking spaces, shared 185-foot truck courts, ESFR sprinklers and conditioned warehousing space.

Located at 3150-3250 NW 33rd St., Rock Lake Business Center is alongside Florida’s Turnpike, with proximity to Interstate 95. Fort Lauderdale, Fla., is 16 miles south of the campus while the Miami International Airport is some 41 miles away.

Miami’s industrial scene

The Miami-area industrial market has been a hot spot. In terms of in-place rent growth, the metro ranked second nationally in April with a 12 percent year-over-year increase, the latest CommercialEdge report shows. Furthermore, Miami was the only one in the top five markets for rent growth with more than 2 percent (3.1 percent) of its stock currently under construction.

Recently a 40-acre campus in Delray Beach, Fla., broke ground. The project’s first phase is a 200,000-square-foot building anticipated to deliver mid-next year.

Meanwhile, another 186,000-square-foot facility has just entered the Hialeah, Fla., inventory. The Countyline Corporate Park Phase IV Building 40 is part of a larger, $511.5 million project.

The post Tishman Speyer Makes $100M South Florida Industrial Debut appeared first on Commercial Property Executive.

Quest Workspaces has opened its second coworking space in Doral, Fla. The company leased 23,454 square feet of office space at Doral Center in December 2022. CBRE represented the owner, Banyan Street Capital, while Newmark represented the tenant in the negotiations.

The location includes multiple workspace options featuring private offices, coworking spaces, meeting rooms, as well as virtual office solutions. Moreover, an outdoor terrace, open-plan café, phone booths and chat rooms are also available.

READ ALSO: Office Debt – The Underwater Mountain

Banyan Street purchased the 290,157-square-foot, two-building Doral Center in 2020 and earmarked $14 million for capital expenditures. Planned improvements included upgrades to both buildings’ exteriors, landscaping, the expansion of outdoor areas, the addition of a new four-level parking garage, speculative suites and signage.

Quest occupies the entire seventh floor of the 138,885-square-foot Two Doral Center. Completed in 1990, the Energy Star and LEED-certified building features 23,500-square-foot floorplates.

Located at 3750 NW 87th Ave., Two Doral Center is some 8 miles west of the Miami International Airport and roughly 12 miles northwest of downtown Miami. The property is also less than 1 mile from the office building at 8200 NW 41st St. that’s home to Quest’s first Doral location.

Questing for coworking space in metro Miami

Quest currently operates 14 coworking locations, 13 of which being in or near Miami.

One of the firm’s most recent leases in the metro was a 40,820-square-foot commitment at a 619,093-square-foot office tower owned by CP Group. The coworking space at 100 SE Second St. in Miami will open in multiple phases, with the first debuting last year and subsequent phases scheduled for launch this year and next year.

Additionally, Quest operates coworking spaces in Boca Raton, Fla., where it leased a total of 41,964 square feet at 1200 Corporate Place, a 137,000-square-foot building owned by Keystone Property Group. The firm signed two separate contracts for 21,120 and 20,844 square feet, respectively.

Miami’s strong office market

Miami’s coworking space encompassed 1.6 million square feet as of March, representing 3.7 percent of its entire leasable office space and outperforming the national average of 1.8 percent, according to a recent market update.

The metro’s vacancy rate stood at 13 percent in April, up 90 basis points year-over-year, according to a CommercialEdge office report. However, the value remained significantly lower the national average of 18.8 percent, up by 210 basis points over the year.

The post Quest Expands Miami Coworking Footprint. Again. appeared first on Commercial Property Executive.

BBX Logistics Properties and joint venture partner PCCP LLC have broken ground on The Park at Delray, a 40-acre campus in Delray Beach, Fla. Phase one of the project includes the development of a 200,000-square-foot building.

The Park at Delray is taking shape north of Atlantic Avenue on U.S. 441 in western Palm Beach County. Upon completion, it will feature three buildings totaling more than 670,000 square feet.

Mark Levy, president of BBX Logistics Properties, told Commercial Property Executive that The Park at Delray is position to succeed due several key factors including its high barrier to entry location, strong residential growth within a 10-mile radius and placement in a fast growing market.

READ ALSO: Top 5 Industrial Properties Under Construction in Phoenix

“The scarcity of available properties in this desirable area increases the attractiveness of The Park at Delray,” Levy said. “Potential buyers and investors recognize the limited opportunities to secure such prime real estate.”

Levy noted that Phase One is anticipated to deliver in mid-2025. Groundbreaking on the second phase of the development is expected early next year.

The Park at Delray, up close

BBX Logistics and PCCP partnered for the development of this project in September and City National Bank provided a $31.3 million construction loan. CommercialEdge data shows that Building 2 and 3 are anticipated to have some 196,500 square feet each.

The developers intend to also incorporate sustainability components into the industrial park, including solar-ready roofing, indoor air quality enhancements, exterior lighting control systems and EV charging stations.  

Phase One will accommodate tenants as small as 50,000 square feet upon delivery and the project’s subsequent phases were also planned to have flexible tenant configurations to accommodate smaller users.

“South Florida is one of the fastest-growing markets in the country, characterized by a booming economy, increasing population and a vibrant real estate market,” Levy said. “The Park at Delray stands to benefit from this dynamic environment, attracting businesses, residents and investors looking to capitalize on the region’s growth.”

The post BBX Logistics, PCCP Break Ground on Miami-Area Industrial Park appeared first on Commercial Property Executive.

Terreno Realty Corp. has completed Countyline Corporate Park Phase IV Building 40, a 186,000-square-foot facility in Hialeah, Fla., a Miami submarket. The owner expects its total investment to reach $43.8 million, with an estimated stabilized cap rate of 6.3 percent.

VS Real Estate is the developer of Countyline Corporate Park Phase IV, a 121-acre, $511.5 million project within the 620-acre master-planned industrial park developed by Florida East Coast Industries. Completion of the 10-building, 2.2 million-square-foot campus is scheduled in 2027.

READ ALSO: Commercial REIT Results—April 2024

Terreno acquired the land in 2023 for $173.6 million. Adjacent to the site is the development’s third phase, consisting of seven buildings. Combined, the two projects will total about 3.5 million square feet.

Building 40, which is already fully leased to four tenants, features 36-foot clear heights, 60 dock-high loading doors and two drive-in doors, as well as 159 cars.

Built to meet LEED standards, the facility occupies 9.1 acres at 3741 W. 112th Place, providing easy access to Interstate 75 and Highway 27. Miami International Airport, Downtown Miami and the Port of Miami are all within 25 miles.

Terreno’s growing industrial portfolio

Terreno Realty Corp. owns and operates industrial assets in six major coastal U.S. markets. The company’s current portfolio consists of 258 facilities, totaling around 15.8 million square feet.

In April, Terreno acquired Fleet Industrial Park, a four-building, 357,000-square-foot logistics campus in Alexandria, Va., for $84.3 million. State Teachers Retirement System of Ohio was the seller.

Last October, the firm paid $45.7 million for a two-building, 112,000-square-foot infill industrial park in Redondo Beach, Calif. The campus came online in 1968 and was previously owned by Link Logistics.

The post Terreno Realty Completes 186 KSF Facility Near Miami appeared first on Commercial Property Executive.

As of March, Miami’s office market had some 3.8 million square feet under construction across 26 properties, representing 4.7 percent of existing stock, well above the national figure of 1.5 percent.

When compared to the peer markets’ percentage of stock, Miami outperformed Chicago (0.5 percent), Los Angeles (0.9 percent), Manhattan (1.3 percent), San Francisco (3.0 percent) and Seattle (3.8 percent), but was outpaced by Boston’s 5.0 percent.

In terms of under-construction office space volume, Miami’s pipeline exceeded only that of Los Angeles (2.9 million square feet) and Chicago (1.9 million square feet), while Boston led the ranking with 14.4 million square feet.

Miami office projects under development

One of the most significant office projects currently underway remains the Class A+ office tower at 830 Brickell, that will total 638,355 square feet upon its estimated September 2024 completion. OKO Group and Cain International topped out the project at 55 stories and 724 feet in June 2022. The same year, the developers inked a 115,000-square-foot lease with Kirkland & Ellis, marking the largest new-to-market office lease in Miami.

Another notable project taking shape in the metro is Royal Caribbean’s new headquarters, that will total 380,000 square feet in Miami’s Central Business District. The Class A, 10-story office building was expected to come online in 2020, but pandemic-induced construction woes pushed the completion date to 2026.

UHealth Medical Center at SoLé Mia, developed by Turnberry and LeFrak Organization, is also among the significant projects currently under development in Miami. The 363,000-square-foot Class A medical office building’s delivery date has been pushed to June 2025.

As of March, only 102,808 square feet of office space broke ground in the market. In January, Sterling Bay unveiled its plans to develop 848 Brickell, a 51-story Class A office tower proposed for downtown Miami’s Brickell submarket. The company teamed up with Key International for the more than 750,000-square-foot office project that received zoning approvals from Miami-Dade County.

First quarter investment activity increased in 2024

Year-to-date through March, Miami’s office investment volume reached $207 million. Deals picked up, compared to the first quarter of 2023, when the metro registered only $100 million in sales.

Office properties changed hands in Miami at an average of $153 per square foot, outpacing San Francisco ($123 per square foot) and Washington, D.C. ($92 per square foot). Across other markets, Manhattan led with $999 per square foot, followed by Seattle ($608 per square foot), Chicago ($542 per square foot), Boston ($209 per square foot) and Los Angeles ($163 per square foot).

One of the largest office deals since the start of 2024 closed in March, when Colonnade Properties acquired Douglas Entrance North and South Executive Towers, two buildings in Coral Gables, Fla., that traded in a $59 million deal. The 217,587-square-foot North Tower is at 800 S. Douglas Road, while the 160,102-square-foot South Tower is at 806 S. Douglas Road. Banyan Street Capital was the seller.

Another significant investment recorded in March was The Kolter Group’s $31.3 million acquisition of Biscayne Medical Plaza, a 44,804-square-foot medical office building in the Design District. Originally built in 1963, the three-story facility at 3801 Biscayne Blvd. was converted to office use in 2003.

Leasing activity in Miami

Notable office leases signed in Miami since the start of 2024 included DigitalBridge’s 79,141-square-foot headquarters relocation agreement at Sundy Village, an upcoming 180,000-square-foot Class A office complex in Delray Beach, Fla. The owner, Pebb Capital, expects to complete the $240 million master-planned office project in the third quarter of this year.

Another significant deal was DWS’ 22,000-square-foot renewal with law firm Gunster at Las Olas Centre I, a 210,225-square-foot office property in Fort Lauderdale, Fla. Gunster was a tenant at the 15-story office building for almost two decades and will continue to use the space for another 11 years.

As of March, Miami’s coworking sector comprised 1.6 million square feet of shared space, outperforming Seattle’s 1.3 million square feet. Across other gateway markets, Manhattan led with 9.3 million square feet, followed by Los Angeles (4.2 million square feet), Washington, D.C. (3.3 million square feet), Chicago (2.9 million square feet) and Boston (2.6 million square feet).

Miami’s coworking space volume represented 3.7 percent of all leasable office space in the market, the highest across peer markets and above the national figure of 1.8 percent.

Year-to-date through March, Regus continued to maintain its position as the flex office provider with the largest footprint in Miami, with operations totaling 336,424 square feet. The company was followed by Spaces (263,927 square feet), Quest Workspaces (228,574 square feet), Industrious (215,000 square feet) and WeWork, with 195,369 square feet.

The post Miami Office Transactions Take Flight in Q1 appeared first on Commercial Property Executive.

Led by President Robert Rivani, Black Lion expects to spend an additional $50 million to elevate the property that has 116,658 square feet of office space, 43,166 square feet of retail and 318,000 square feet of parking.

The privately held firm, which has offices in Los Angeles and Miami, also plans to use 5,000 square feet of the office space for its new flagship headquarters. Current tenants of the property include Apple, West Elm, William Sonoma, Morgan Stanley and Coldwell Banker.

READ ALSO: Top 10 Markets for Office Deliveries in 2023

Describing most office spaces as conventional, Robert Rivani wants to redefine luxury and services standards in the office industry by delivering a highly amenitized experiential office and retail property that will integrate amenities, design, technology and hospitality-infused services. The project, called The Rivani, will be designed by renowned architecture and design firm Rockwell Group. Interior design firm Escala Forma Studios will also be working on the redesign.

The property will incorporate elements and features of an exclusive five-star hotel including a concierge, spa, mediation room, fitness center, salon, café, living room for meetings and gatherings, a podcast room, Japanese restaurant and speakeasy. Members will also have access to private event spaces.

The project is expected to be completed in mid-2025.

Largest office deal

Situated next to Sunset Harbor and Lincoln Road, the building is one of the largest in the area and the transaction marks the largest office sale in Miami Beach since 2016. Developed in 2003, the building is under a ground lease with Miami Beach. The city declined its right of first offer to purchase the property in January, according to Bisnow.

Christian Lee and Sean Kelly from CBRE represented Clarion Partners. Jeremy Hakala, Clay Sidner and Brandon Shores with Newmark represented Black Lion in the transaction and will oversee leasing.

Black Lion entered the Miami market two years ago and has amassed a portfolio that now exceeds $250 million in South Florida alone. The firm brought well-known brands to Miami’s hospitality scene including Delilah at Brickell Bay Boardwalk, CATCH at the Continuum, Amara at Paraiso with Chef Michael Schwartz and Gekko by David Grutman.

One planned Miami Beach deal did not fare as well. In September, a joint venture between Black Lion and Massa Investment Group announced it was acquiring Lincoln Place, a 140,000-square-office building at 1601 Washington Ave. from Nightingale Properties for $82 million. But that transaction did not close as planned and Bisnow reported there is ongoing litigation between the joint venture and Nightingale Properties.

Luxe office competition

Other developers are also constructing luxury office buildings in Miami Beach, including SHVO which secured the approval of the Miami Beach Planning Board in September to build The Alton, a six-story luxury office property at 1656-1680 Alton Road.

Designed by Pritzker Laureate Lord Norman Foster and the team at Foster + Partners, in collaboration with architect Kobi Karp, the 203,722-square-foot project is slated to include 170,000 square feet of rentable office space, 17,000 square feet of ground-floor retail as well as five luxury residences. SHVO is developing two additional Class A office properties in Miami Beach, in collaboration with architects Peter Marino and Foster + Partners, including the revitalization of 407 Lincoln Road and One Soundscape Park.

The post Black Lion Pays $63M for Miami Beach Office Building appeared first on Commercial Property Executive.

With this purchase, Investcorp has about 43 million square feet of U.S. industrial real estate assets, valued at about $5.1 billion.

Investcorp described the portfolio as being located in two of the nation’s best-performing industrial markets, in infill areas that are convenient to major thoroughfares, strong transportation infrastructure, labor bases and residential neighborhoods.

An Investcorp spokesperson was unable to provide additional information requested by Commercial Property Executive, including the portfolio’s seller.

Steady acquisitions 

Growth in the metro Denver industrial real estate market is currently being driven in large measure by demand for space near Denver International Airport, which is seeing cargo volumes noticeably ahead of those before the pandemic, according to a first-quarter report by Marcus & Millichap.

READ ALSO: CRE’s Deal Anxiety Shows Signs of Easing

Elsewhere in the region, however, “fundamentals are softening,” the report states. Overall vacancy has been trending up for at least two years, to a level not seen since 2011, and the current construction pipeline will add about 2.0 percent to Denver’s industrial inventory.

Miami-Dade’s industrial market is notably healthier, with an overall vacancy of just 2.3 percent and steady leasing and sales activity, according to a first-quarter report from JLL. About 7.5 million square feet of space is under construction, fairly evenly shared across the major submarkets. 

The Bahrain-headquartered Investcorp has a recent history of acquiring significant industrial portfolios, buying:

•  $800 million in U.S. industrial assets in November 2019. The two deals netted 126 properties in all, totaling 10.2 million square feet.

•  $280 million worth of properties that included a 434,000-square-foot fulfillment center in Cleveland that was leased to Amazon, in October 2020.

•  An 89-property, 2.2 million-square-foot Class B portfolio across four markets, for $380 million in October 2021.

•  In February 2022, a 64-property, 5.6 million-square-foot portfolio across seven markets for $640 million.

•  In partnership with BKM Capital Partners, a seven-building, 740,000-square-foot portfolio in Las Vegas, for $158 million, in March 2023.

The post Investcorp Acquires $200M Industrial Portfolio appeared first on Commercial Property Executive.

Venture One Real Estate has acquired Boynton Logistics Center, a 197,608-square-foot industrial campus in Boynton Beach, Fla., from Elion Partners.

Cushman & Wakefield brokered the transaction. The brokerage firm will also lead the leasing efforts at the three-building park.

The three-building property previously traded in January 2020, when Elion Partners acquired it for $25.9 million from Exeter Property Group, according to CommercialEdge information. A $16.6 million loan originated by Synovus Bank financed that purchase.

The Class A facilities came online between 2000 and 2019, the same source shows, and feature a combined 34 dock-high loading doors, six drive-in doors and 12 truck wells, dock levelers and bumpers, along with 30- to 36-foot clear heights. Tenants within the campus include Somfy, Xquisite Events and The Stone Factory Co.

The warehouses are adjacent to each other at 1200, 1210 and 1220 SW 35th Ave. and close to Interstate 95. Downtown Boca Raton, Fla., is 11 miles southwest, while downtown Miami is less than 55 miles away. Port of Palm Beach is within 25 miles northeast.

Cushman & Wakefield representation

Cushman & Wakefield Vice Chairs Mike Davis and Rick Brugge, along with Executive Managing Director Dominic Montazemi, Senior Director Rick Colon and Director Greg Miller, arranged the deal. In January, Davis, Brugge, Colon and Montazemi also brokered the sale of a 1.7 million-square-foot industrial portfolio spread across four major markets.

Additionally, Vice Chairs Rick Etner, Christopher Thomson and Chris Metzger, along with Managing Director Matthew McAllister, supported the sale process and will serve as the property’s leasing agents. The same team also handles leasing at a 224,650-square-foot asset in Pembroke Pines, Fla., that changed hands for $59.7 million last year.

The post Venture One Buys Metro Miami Industrial Park appeared first on Commercial Property Executive.

Top-of-mind for both panelists and attendees on the third day of the Urban Land Institute’s spring meeting were questions surrounding the changing nature of central business districts, especially in the face of high office vacancy rates and region-specific acute development hurdles.

Within a discussion called Fostering Next Generation Central Business Districts, two domestic markets, New York City and Miami, were compared with Seoul and Hong Kong, two cities that have adapted to similar challenges through close collaboration with the government, alongside making their central business districts desirable as opposed to necessary.

A tale of two cities

Where contrasts were concerned, the pandemic’s effects on office vacancy rates between New York City and Seoul, which has an inventory of comparable size to Manhattan, could not be more glaring. While the Big Apple now sits at a roughly 20 percent office vacancy rate, Seoul’s is at 1.5 percent. According to Jun Ho Pok, CEO of IGIS Neovalue Asset Management, the city’s “quick return to normalcy” owed in part to experience containing an outbreak of Middle East respiratory syndrome back in 2015, allowed it to avert both a lockdown and its permanent effects on office work. Pok attributes these successes to a mix of mass testing, tech-enabled contact tracing and “government transparency,” that many other cities of comparable size lacked at the time.

In contrast, for New York City, the pandemic’s tolls on human life and the effects of lockdowns and hybrid work completely reshaped how the millions working around Lower Manhattan up through Midtown not only use their office spaces but interact with the area’s larger economy as a whole. Where future uses are concerned, “(it) cannot look like a bunch of large, tall commercial offices that are only occupied Tuesday through Thursday, with many of them, alongside their surrounding restaurants, shops and bodegas vacant Friday through Monday,” according to Megumi Brod, senior managing director of Rockefeller Group.

READ ALSO: Infrastructure Upgrades Are Critical for CRE’s Future

To Brod, Manhattan needs to become a “24/7 live-work-play type environment,” thought of as something beyond rows of office towers and tourist attractions. Still, given the city’s regulatory challenges, a lack of physical space and actual demand, never mind construction costs and interest rates, this is easier said than done.

For Brod, the solution lies in “working with the government and incentivizing appropriately,” by focusing more on affordable to build, live in and occupy mixed-use developments rather than pure Class A office space or luxury rentals and condos. The latter may make the most sense from a pure profitability standpoint, but they damage the city’s living and work experiences in the long-term, particularly as the middle class gets priced out of more and more neighborhoods. “Developers will see some of the incentives,” Brod said. “Lenders and all sorts of capital providers will also see that if appropriately done,” Brod added.

But Brod was still realistic about what this process could physically involve, beyond tax abatement programs. Offices with smaller floorplates need to be converted, while “some buildings will suffer and be demolished,” Brod said. “They can’t service their debt, and they may need to sell at low or depressed prices, which could lead to someone demolishing the building for different uses altogether,” Brod added.

The cities learn from each other

In contrast to New York City, Miami’s office market appears to be performing far better, with only a 10 percent vacancy rate. Kevin Davenport, a senior vice president at Swire Properties, sees the market as “cyclical,” with the current zenith brought on by an influx of people and companies that begun in April of 2020. “The Class A spaces are all fully leased, while their utilization is very high,” Davenport said.

Speaking with firsthand experience regarding his firm’s development of Brickell City Centre, Davenport explained that much of the success and demand of Miami’s CBD is its inclusion of office space in a more seamless manner with retail and multifamily in a way that resembles Hong Kong, where the firm is based. “If you look at the composition of their CBD areas, the uses of the office component are 20 to 30 percent of the overall space, depending on how you devise the downtown area,” Davenport detailed.

Miami is similar, in that “it’s a landscape of different uses, and environments where you (already) have the retail and amenities in place,” something that lies in contrast to Manhattan’s rigidity.

But it’s not all sunshine in the Sunshine State. A need for transportation, both public and private, cannot keep up with commuter demand and a growing population. Traffic remains as congested as ever, while Metromover and Metrorail remain “underutilized,” according to Davenport. “Transportation is one of the key barriers to true sustainable growth,” Davenport reflected. And even the city’s Class A office spaces themselves are not always something that a prospective tenant from New York City or Chicago would even want; “they’re single-tenant buildings that are self-financed, or a smaller building with an institutional partner,” Davenport noted.

In addressing both these problems, Davenport believes that these cities should take inspiration from their Asian counterparts. One area where this is demonstrated in real time is LEED and Well certification, something that began in Swire’s Asia portfolio. “We brought a lot of those key learnings over to Miami,” Davenport concluded.

The post ULI Special Report: What’s Ahead for CBDs appeared first on Commercial Property Executive.

Tamarac Town Square came online in 1983 on some 18 acres. The property’s tenant roster includes a diverse mix of national and regional retailers such as Retro Fitness, Dollar Tree, Goodwill, Humana, Amscot and McDonald’s.

Located at 8129-8315 N. Pine Island Road, the retail center is near Route 817, which provides easy access to downtown Fort Lauderdale, Fla. Tamarac Town Square serves approximately 135,494 individuals within a 3-mile radius, with the average household income of $82,786.

JLL Senior Managing Director Danny Finkle, Senior Directors Eric Williams and Jorge Portela and Vice President Kimberly Flores led the Capital Markets team working on behalf of Regency.

Last year, Regency completed the all-stock acquisition of Urstadt Biddle Properties Inc. for an estimated $1.4 billion, expanding its footprint of grocery-anchored shopping centers in premier suburban trade areas. At the time of closing, the combined portfolio comprised 480 properties encompassing more than 56 million square feet of gross leasable area.

Fort Lauderdale’s retail scene

The Fort Lauderdale retail market mirrors a multifaceted environment shaped by robust household and income expansion, tourism and ongoing construction activity. The yearly net absorption remains on the positive side, with 870,000 square feet absorbed as of the fourth quarter of 2023, exceeding the five-year average of 490,000 square feet, according to a recent Matthews report.

However, the same source shows that the pace of transactions decelerated last year when compared to 2022. The investment volume totaled $738 million in 2023, while the first three quarters of 2022 alone saw transactions surpassing $1.2 billion.

The post Regency Centers Sells Fort Lauderdale Retail Asset appeared first on Commercial Property Executive.

Digital infrastructure investment firm DigitalBridge has signed a 79,141-square-foot headquarters relocation deal at Sundy Village in Delray Beach, Fla. The owner, Pebb Capital, is expected to complete the $240 million, master-planned development in the third quarter of this year.

The company will move from its current location at 750 Park of Commerce Drive in Boca Raton, Fla., to a four-story building within the 7-acre campus. The new office space will house more than 300 employees.

DigitalBridge’s headquarters space will be at 100 SE First Ave. in the Atlantic Avenue District, some 9 miles from downtown Boca Raton. The building will feature covered walkways, terraces and a ground-floor lobby.

A blend of historical and new

Pebb Capital acquired the site, including the historic Sundy House, in 2019 for $40 million. The developer broke ground on the six-building project last February and secured $173 million in construction financing from Monroe Capital and J.P. Morgan in December. A month later, the firm took out a $90 million loan also originated by J.P. Morgan Chase Bank, CommercialEdge information shows.

Sundy Village will include 180,000 square feet of Class A office space, some 30,000 square feet of retail space and almost 270 underground parking spots, as well as a parking garage and EV charging stations. The campus will feature open-air courtyards, green spaces, indoor and outdoor dining areas and fitness and wellness spaces.

Partners on the development include design firms Gensler and RLC Architects, along with general contractor Bluewater Builders. The project also involves the adaptive reuse of multiple historical buildings, the renovation of Sundy House and the refurbishment of a hotel, according to The Palm Beach Post.

CBRE First Vice President Joe Freitas and Executive Vice President John Criddle are overseeing office leasing, while Vertical Real Estate Strategic Advisor Sara Wolfe handles the retail leasing.

DigitalBridge’s latest investments

DigitalBridge invests in firms specializing in AI-driven infrastructure solutions and next-generation digital networks. Currently, the company has $80 billion of assets under management.

In January, the investment firm, together with Silver Lake, granted Vantage Data Centers a $6.4 billion round of equity. Vantage intends to utilize its substantial land bank and invest approximately $30 billion in upcoming data center projects spanning North America and EMEA markets.

The post DigitalBridge Signs 79 KSF South Florida HQ Lease appeared first on Commercial Property Executive.

Based on national outlooks for the office and retail sectors, which have exhibited quite muted performances in recent years, one could say that building office-retail today could be kind of reckless. Unless you are an insider or living in South Florida. Because Miami offices—especially in the Design District—are in high demand and, currently, available office space in the area is limited. MIRAI will have a prime location, with major highways, an airport, Miami Beach and more, all nearby.

“This project was a leap of faith for us,” said Eduardo Pelaez, president & CEO of Well Duo and WellMeaning Investments. “We moved forward because of how well retail is performing in the Design District, arguably one of the highest-performing retail centers in the country.”

Small building, big impact

At 60,000 square feet, MIRAI will definitely not be a huge building, but strong essences are best kept in small bottles, right? In fact, the size features just the right form and scale to express architecture best, according to Allison Greenfield, partner at Lionheart Capital.

The developers are convinced that MIRAI is the element missing from Miami’s Design District: A modern building that provides small retail spaces of 1,000 square feet and offices of around 5,000 square feet, and that “feels like a living piece of art” for all its tenants, as Greenfield puts it. The idea of smaller footprints for office spaces is forward-facing and future-looking.

“I think in today’s day and age, a lot of the admin work doesn’t need to necessarily be onsite, or in the middle of cities. What we’re seeing both in terms of retail and office is that there is a need for face-to-face interactions, but not necessarily for admin,” Greenfield said.

This pleasant flexibility stems from the technical revolution currently underway. To perform certain tasks, one doesn’t need to spend their whole day in an office and waste time commuting, so front-facing offices are morphing into spaces mostly dedicated to business chats and group meetings. Greenfield thinks that the same goes for retail.

The space within MIRAI is designed to be modular, meaning that retailers who need spaces larger than the 1,000-square-foot predesigned modules, can lease several contiguous ones.

READ ALSO: Retail’s Return: Is the Sector 2024’s Sleeper Hit?

“It is not necessarily about having the biggest space, it’s about a flexible space that can move regularly, so the inventory is always fresh and new,” she added. “The smaller the space, the easier it is to change it over time, and retailers can continue to offer something new and exciting all the time.”

The MIRAI project is highly personal to the developers as, at this exact location, Lionheart Capital has had its main headquarters for about 15 years. During construction, they will have to relocate, which is not a big deal because developers usually have a very mobile office. However, once MIRAI is complete, they will set up their permanent home within the new development. Well Duo is also looking to have its WellMeaning family office in the building as family office and hedge funds are attracted by this type of design, according to Pelaez.

The materialization of the MIRAI project was also a “timing of a city and a timing of a neighborhood,” according to Greenfield, because in the super high-end market, this is the right time to build such a project in Miami.

“We’re really bucking the trend of many developing markets like Florida and Southeast Texas, which is more exciting than any other places in the world, certainly more than any other place in the country,” she believes.

Futuristic vision au naturel

MIRAI is a statement the development team is making toward the future, it’s their way of showing they’re being proactive as society is experiencing a flexion point in history.

“We are currently experiencing a moment when our lives are changing from how we and our parents were brought up and taught,” Greenfield noted. “These traditional ways are now being questioned and are changing dynamically and in exciting ways.”

The change is driven by the 21^st-century information and technological revolution, and developers must deliver buildings that suit people’s current and evolving needs.

Because the Design District is surrounded by residential areas with plenty of greenery and low density, MIRAI must occupy a quite big site to break volume into smaller elements so it can fit nicely with the residential areas, while also remaining contemporary and very design-driven. And here’s where Kengo Kuma steps in, a visionary who builds environments, not buildings, so nature is very much a part of the design.

“There is a flawless movement between nature inside and outside so that there’s a feeling of well-being, a sense of calm, a sense of holistic and inclusivity between the work environment and the outside world,” described Greenfield. To this point, Kuma’s designs include features such as operable window walls to get fresh air, and not very deep stores to allow natural light.

The orthogonal shape of the site allows looking at the building from different vantage points and angles. The architect took it one step further and made the grade 45 degrees full corners, so that tenants would each have their corner with maximum visibility. The materials used are also in assortment with this angle—materials with porosity, metals with transparency—creating shadows while allowing to see through.

“It’s also an alfresco logic to the whole architecture; shadow, air, protected views, intimacy,” explained Javier Villar Ruiz at Kengo Kuma & Associates.

To understand shadows and the pattern of air passing through, the architects searched for pictures from 80 years ago, when the site was a pine farm with wooden structures. The façade of MIRAI will act as a pergola and create a screen and shadow while still allowing you to see through it and air to pass through like a screen, Ruiz explained.

The building’s usage shaped its volume. Having retail on the ground floor and offices on the upper floors, it embraces shadows in the above levels because it’s going to be interior spaces where people will spend most of their time. Consequently, the ground floor is very transparent since it’s retail. Yet, the roof follows the stepping landscape usage and is not limited to just the ground floor as it can be extended to include outdoor activities.

Green looks, colorful lights

MIRAI will be built to at least LEED Silver standards as part of the developers’ commitment to the city. Solar panels will be installed on the roof, as well as plenty of greenery. On the western façade, there will be a large living wall, which will help especially during the summer months since it will receive abundant sunlight. Not only will this be aesthetically pleasant, but it will also cut down on carbon dioxide emissions.

Kengo Kuma’s reputation blends seamlessly with sustainability goals. He is known for using natural materials and for keeping in mind how the building interacts with its surroundings. Interestingly, Ruiz told Commercial Property Executive that the architecture studio did not choose the materials from a sustainability point of view, but rather as an architectural feature to create the shadowing and breathable element. The building’s metal mesh façade is quite innovative and includes a process of perforated metal which has rarely been used before, to generate a screen with breathability and a shadow without compromising transparency. These screening elements will also help cut down significantly on heat load.

Additionally, Kengo Kuma’s designs don’t normally feature colors. But this one will. MIRAI will be drenched in external up lighting—set up by Italian lighting company Viabizzuno—which will create a colorful effect.

READ ALSO: 2024 in Green Building: What to Expect

The colors idea was inspired by the city itself, because “people wear color in Miami” and “when people think about Miami, they think hot pink,” said Greenfield. This play with colors was brought up by the quality of the sunlight and the color of the trees, the tropical foliage, the plants, the flowers that grow in this area and the color of the water, she added.

“In the built environments here, you have pink, purple and turquoise houses. We want to be able to capture some of that, but of course, I think it’s going to be done in a sort of a more muted and refined kind of Japanese take on that,” noted Greenfield.

The physical building itself will have a neutral tone and the color palette is yet to be determined. The color of the mesh that might appear only in certain moments of the day and in certain light means that each volume will have a very slight percentage of color, but will not appear in an obvious way, Ruiz explained.

In addition, lighting will help blend the eastern side of the building—the commercial side—with the western part, where there’s a luscious green residential neighborhood. “We want to create a garden on the bottom that is luscious and green, and then have the building’s glass on the bottom create this floating illusion,” said Pelaez. The landscape architecture firm working on this is Island Planning Corp.

Looking at future challenges, pleasures

For the development team, getting the details right and staying within budget are the most challenging aspects of this project, which is Kengo Kuma’s first mixed-use development in the U.S.

“We don’t want to build it to bastardize what was amazing about it, so we prevent this by being diligent in the construction and pricing process, because if money runs out or your budget goes wrong, then the thing to suffer is what becomes the result in the end. And what’s at the end is the finish,” said Greenfield.

It takes between four and five years for a project like this to come to life. Long years invested in a project loved by those working on it. “And you don’t want to give your love to something that in the end doesn’t have love,” confessed Greenfield. “It’s dedication. It’s waking up at night when things are wrong and you’re trying to figure out the problems. I mean, you don’t give your heart easily if you’re smart. And if you give your heart, you want it to be beautiful.”

Kengo Kuma’s design will add to Miami’s architecture and increase its ranking among other major cities worldwide. “When you travel around the world to a different metropolis, you will notice that these cities have highly rated architects, which reflect development in a city, and Miami is not only on par but has excelled in this category,” stated Pelaez.

In addition, multi-generational concepts withstand the highs and lows of the real estate industry. “You may have some good years and some not great years, but the building as an asset should withstand and preserve through the generations to come,” he concluded.

The post Looking Into the Future: Behind Miami’s MIRAI Project appeared first on Commercial Property Executive.

National Millwork will occupy a portion of Building 2 at Turnpike Logistics Center, located at 1715 Meathe Drive. The full-service door, hardware and millwork company will relocate from its current space at 1177 W. Blue Heron Blvd. this summer.  

CBRE’s Executive Vice Presidents Kirk Nelson, Robert Smith and Jeff Kelly negotiated on behalf of the landlord. The CBRE Industrial & Logistics team will handle the marketing services for Turnpike Logistics Center’s remaining 55,694 square feet of space available for lease at Building 2.

Dalfen purchased Turnpike Logistics Center, formerly known as Greene Space Industrial, back in 2021 for $60.6 million from developer Jeff Greene.

Totaling 317,499 square feet, Turnpike Logistics Center comprises two buildings on 30 acres. The 124,479-square-foot Building 1 and the 193,000-square-foot Building 2 feature 32’ clear heights, concrete tilt-wall construction, deep column spacing, 94 dock-high doors, two drive-in doors, ESFR fire sprinklers and hurricane impact glass.

Located at 1673 and 1715 Meathe Drive, the two Class A industrial buildings provide direct on-ramp access to Florida’s Turnpike. The industrial facility is also close to Interstate 95, which allows easy access to downtown Miami.  

A considerable surge in rents

Near the end of last year, Dalfen secured a full-building lease with Tellworks Logistics at its 489,440-square-foot industrial property in Reno, Nev. CBRE arranged the deal, with Executive Vice President Eric Bennett representing the owner.

A few metros have recorded a considerable surge in industrial rent growth. Miami has witnessed the third-highest year-over-year rent increase in the U.S. in January, at 11.4 percent. In-place rents reached $11.04 per square foot, according to a recent CommercialEdge report.

The post Dalfen Inks 101 KSF Lease at West Palm Beach Industrial Facility appeared first on Commercial Property Executive.

DWS has signed a 22,000-square-foot, long-term lease renewal at Las Olas Centre I, a 210,225-square-foot office building in Fort Lauderdale, Fla. Law firm Gunster has been a tenant for almost two decades and will occupy the space for another 11 years.

Stream Realty Partners Managing Director Greg Katz and Senior Vice President Carlyle Coffin represented the tenant, while ComReal President Tim Talbot and Senior Director Andy Ackerman worked on behalf of the ownership.

Las Olas Centre, up close

The 15-story mid-rise is part of a two-building campus totaling more than 469,000 square feet. DWS acquired the asset in March 2014 for $204 million from USAA Real Estate, according to CommercialEdge data and assumed the outstanding balance of a $57.2 million loan originated by Wells Fargo Bank.

Las Olas Centre I came online in 1997 and features floorplates averaging 20,885 square feet, eight passenger elevators, more than 520 parking spaces and some 35,000 square feet of first-floor retail space. Tenants at the almost 2-acre property include Merrill Lynch Wealth Management, KPMG and Rubin Group Inc., the same source shows.

The LEED Gold-certified facility at 450 E. Las Olas Blvd. is close to downtown Fort Lauderdale and a host of dining options. The South Harbor Plaza shopping center is 2 miles away, while Fort Lauderdale-Hollywood International Airport is some 4 miles south.

Las Olas Centre II, the other building within the campus, is a 259,069-square-foot property completed in 1999. The 18-story tower comprises a newly renovated conference center, 18,000 square feet of retail space and nine passenger elevators.

The post DWS Inks Long-Term Office Renewal in Fort Lauderdale appeared first on Commercial Property Executive.

Nearly one year after acquiring the three-building 639,830-square-foot Office Depot headquarters in Boca Raton, Fla., for $104 million in a partial sale-leaseback deal, BH Group and PEBB Enterprises are moving forward with plans for a mixed-use redevelopment at the nearly 29-acre site now called The Offices at 6600 N. Military Trail.

Miami-based Related Group has joined BH Group and PEBB in executing plans for the mixed-use project. The developers received a critical zoning ordinance approval earlier this month from the Boca Raton City Council and expect to complete the site plan approval process during the fourth quarter.

In addition to the 500 multifamily units, the partnership’s proposed project includes a 36,700-square-foot luxury gym and four retail and restaurant outparcel buildings totaling about 42,000 square feet. The remaining two office buildings would have a total of 407,500 square feet. The site already includes a fitness center, a cafeteria, an auditorium, many conference rooms and covered parking.

READ ALSO: Here Comes the Neighborhood: Mixed-Use Projects’ Bid to Fit In

At the time of the property’s acquisition in early April 2023, seller ODP Corp. agreed to lease 285,000 square feet of office space for at least two years. Following the redevelopment, the firm’s headquarters would remain at the site but consolidate its space—currently spread among three buildings—into the 214,684-square-foot central office tower until at least 2033.

That frees up the other buildings. The joint venture will renovate the northern tower as a Class A multi-tenant office building, while the southern tower will be replaced by 500 multifamily units wrapped around the southern parking garage and overlooking the Old Course at Broken Sound Country Club golf course.

Isaac Toledano, who co-founded Aventura, Fla.,-based BH Group with his wife Liat, said in a prepared statement office tenants now want to be in dynamic mixed-use environments. He added the partnership plans to create a true town center for the area while bringing new high-quality residences to the city.

Office upgrades, leasing activity

Joe Freitas and John Criddle of CBRE are handling leasing at The Offices at 6600 N Military Trail on behalf of BH Group and PEBB. Eric Hochman, chief investment officer at Boca Raton-based PEBB, said in prepared remarks the extensive capital improvements will only increase interest in the available office space.

Another tenant has also inked a deal for space at the site, where upgrades to the office lobbies, common areas and amenities spaces are already underway. Last month, the partnership signed a 20,388-square-foot office lease with renewable energy company MN8 Energy.

BH Group and PEBB are converting one existing floor into spec office suites to create up to seven move-in ready offices for prospective tenants. Negotiations have begun for several of the spec spaces, according to the partnership.

The post BH Group JV to Redevelop Former Office Depot HQ Site appeared first on Commercial Property Executive.

H&M has leased more than 25,000 square feet of retail space across two floors at The Shops at Brickell City Centre, a 500,000-square-foot shopping destination within Miami’s mixed-use district of the same name.

The clothing outlet’s lease brings The Shops to full occupancy, a first since the retail portion of the $1 billion development opened in 2016. The Swedish fashion giant will occupy one of The Shops’ largest spaces, joining Saks Fifth Avenue as anchor tenants of the property.

READ ALSO: Retail’s Return: Is the Sector 2024’s Sleeper Hit?

Following its opening, this will be H&M’s third location in Miami. As part of the lease, the retailer will upgrade many of the space’s finishes and will also install a grand staircase, lounge areas and an advertising screen.

The Shops at Brickell City Centre comprises more than 120 stores, in addition to a Cinemex dine-in movie theater. H&M’s neighbors include Apple, Coach, Nike, Porsche Design, Rolex, Sephora and Tommy Bahama.

Magic City mixed-use

Owned and operated by Swire Properties, Brickell City Centre will span more than 4.9 million square feet at full buildout. The project first broke ground in 2012 as the Hong Kong-based developer’s first mixed-use endeavor in the U.S.

Apart from The Shops, the complex included Two and Three Brickell City Centre, two Class A office buildings totaling 764,000 square feet that sold to Northwood Investors in 2020 for a combined $139.7 million, according to CommercialEdge information. The Centre also comprises REACH and RISE, two residential towers, as well as EAST Miami, a 255-key hotel that changed hands in 2021.

Located at 701 S. Miami Ave. in Miami’s financial district, Brickell City Centre is directly connected to the downtown’s retail, dining and entertainment offerings. Biscayne Bay is less than half a mile to the east.

Retail rebound in Miami

Alongside an influx of residents, the South Florida city is also seeing an influx of retail leasing, combined with some of the nation’s highest asking rents. A fourth quarter report from Cushman & Wakefield found that Miami’s retail market saw more than 250,000 square feet of positive net absorption, alongside an average asking rent of $40.33 per square foot. On the development front, there were 577,838 square feet of deliveries through 2023, ranking among the top five in the U.S.

Mixed-use developments remain popular, as well, in part due to their inclusions of retail space. Back in September, a joint venture between Black Salmon and The Allen Morris Co. announced the development of Highland Park Miami, a $1 billion project located in the city’s Medical District. Apart from retail, the master-planned development will feature 500,000 square feet of medical-related office space, a 150-key hotel and 1,000 residential units.

The post H&M Tries On New Anchor Lease at Miami Shopping Mall appeared first on Commercial Property Executive.

A joint venture between Remedy Medical Properties and Kayne Anderson Real Estate has acquired a four-building medical office portfolio for $86 million.

Flagler Healthcare Investments sold the 181,000-square-foot property collection, which is spread over the areas of Phoenix, Chicago and South Florida. JLL Capital Markets represented the seller and procured the buyers.

Remedy Medical and Kayne Anderson have recently acquired another MOB asset in Chicago. In November, the longtime partners picked up RUSH Oak Brook Medical Center for $71 million.

The JLL team overseeing the most recent transaction was led by Senior Managing Director Mindy Berman, Director Matt DiCesare and Associate Liam Sorensen.

Diverse buildings, diverse practices

The four properties now under the joint venture’s ownership are located in Boynton Beach, Fla., Elgin, Ill., and Phoenix. 

The Boynton properties are Health City I & II, two buildings that were completed in 2016. Located at 10275 and 10383 Hagen Road, the properties total nearly 35,000 square feet, according to CommercialEdge information. The same source shows that Health City I is primarily devoted to orthopedics, while Health City II, called the Boynton Pediatric & Dermatology Center, is leased to local practices of the same name. Flagler purchased both buildings in 2019.

READ ALSO: Medical Office Real Estate Trends to Watch in 2024

The buildings sit at the rim of Baptist Health City, a 133,000-square foot medical office complex owned by Invesco. Other neighbors include dermatology and rehabilitation facilities, located along Florida’s Turnpike, as well as Boynton Beach Boulevard.

The Elgin Professional Plaza, located at 750 Fletcher Drive in the Chicago submarket of the same name, is a 52,157-square-foot property that Flagler bought for $13.3 million in 2019, according to CommercialEdge information. Built in 2003, the property is currently leased to tenants with specialties in family practice; ophthalmology; ear, nose & throat; urology and medical imaging, in addition to housing dental and physical therapy practices. Also located in a small medical corridor, the Plaza is neighbored by another office building, as well as an outpatient care center.

The joint venture’s Phoenix purchase is Oasis Surgical Hospital, a facility devoted to orthopedic surgery and sports medicine. The property sits adjacent to Loop 202, giving it highway access to much of Maricopa County.

Medical offices stay good health

Like their relatives in life science, medical offices continue to perform strongly relative to an otherwise struggling office sector. Nevertheless, the sector is feeling the pain from high interest rates. In October 2023, a market update from Institutional Property Advisors indicated that transaction volumes nationwide fell by an average of 30 percent year-over-year through June, while sale prices slumped by 3 percent.

Adaptive reuse for medical offices has enjoyed a recent surge in popularity. Last month, NYU Langone Health opened a 260,000-square-foot ambulatory center in Garden City, N.Y., previously home to two department stores. That same week, EverGreen Health expanded to a 26,000-square-foot lease at the Woodlands Medical Plaza in Bothell, Wash, which was formerly an office building.

The post Remedy Medical, Kayne Anderson Pay $86M for MOB Portfolio appeared first on Commercial Property Executive.

Prologis has signed two long-term renewals totaling 308,000 square feet at its 880,000-square-foot industrial park in Medley, Fla., Miami metro. The tenants are Seaboard Marine, Ltd. and Seaboard Solutions, Inc., both wholly owned subsidiaries of Seaboard Corp.

Colliers Vice Chairman Jonathan Kingsley represented the tenant. JLL Executive Managing Director Brian Smith negotiated on behalf of the landlord.

Other tenants at the industrial campus include Zaimella USA, Cal-Maine Foods, Inc., SPEC Building Materials, Diamond Automotive Group Florida and Rodatech Automotive, among others, CommercialEdge shows.

Seaboard Marine provides cargo shipping services in more than 26 countries, with its U.S. operations including terminals at Port of Houston and PortMiami, the latter being where the company serves as the largest cargo operator.

READ ALSO: For 2024, Prologis Forecasts Growing Freight Traffic

Prologis Palmetto Tradeport comprises four buildings at 7800-7890 N.W. 80th St. and 8001 N.W. 79th Ave. The Class A facilities include office suites ranging from 4,525 to 5,200 square feet, 24-foot clear heights, 175-foot building depth, dock-high doors, drive-in doors, ample column spacing and a total of 667 vehicle parking spots. Prologis bought the asset in 2010, in a $66.8 million portfolio deal from seller TA Realty, according to CommercialEdge.

Prologis Palmetto Tradeport allows easy access to State Route 27, Interstate 95, Florida’s Turnpike and Palmetto Expressway, while being 11 miles from Miami International Airport, 16 miles from PortMiami, 29 miles from Fort Lauderdale International Airport and within 31 miles of Fort Lauderdale, Fla.

Miami’s solid rent growth

According to a recent CommercialEdge report, Miami remained the priciest industrial market in the Southern U.S., with in-place rents at $10.69 per square foot as of December. Year-over-year rent growth in the metro stood at 9.8 percent—240 basis points above the national rate. Vacancy was at a healthy 4.4 percent, below the U.S.’ 4.6 percent.

Industrial real estate will likely remain a top-performing asset class this year, despite an anticipated slowdown. Construction starts will likely drop as capital costs remain high, while tenant demand will lead to more build-to-suits projects.

The post Prologis Inks 308 KSF Renewal at Miami Industrial Campus appeared first on Commercial Property Executive.

Sterling Bay, a national real estate development firm known for building creative office and mixed-use projects, is teaming up with Key International to develop 848 Brickell, a 51-story Class A tower proposed for downtown Miami’s Brickell submarket. JLL has been tapped to lease the project.

Andy Gloor, Sterling Bay CEO, said in a prepared statement, Miami is the nation’s new epicenter for commercial growth. He called Brickell, located in the city’s growing financial district, the hottest submarket in the country right now for commercial office development.

Subject to zoning approval by Miami-Dade County, the tower will have more than 750,000 square feet of Class A office, curated ground-floor retail space totaling 7,500 square feet and on-site parking facilities for more than 1,000 vehicles. The project is being designed by Skidmore, Owings & Merrill and is aimed at the evolving needs of modern businesses and professionals. The building will feature hospitality-inspired workplace amenities including on-site, tech-enable conference facilities, a luxury fitness center, expansive outdoor terrace, as well as lifestyle amenities like padel tennis courts—a mix between tennis and squash—and private open-air lounges.

READ ALSO: What’s Ahead for Retail in 2024?

The location will offer tenants ocean and Brickell Avenue views and quick access to the neighborhood’s dining, retail and entertainment destinations.

Creative office experience

Diego Ardid, co-president at Key International, a global real estate development and investment firm with more than $8 billion in diversified real estate transactions since its 1970 founding, said the firm strategically selected Sterling Bay as its co-developer because of the company’s expertise in creating world-class offices. The new office tower will replace Key’s 13-story headquarters at the current 848 Brickell Ave. location. Key International has a strong presence in Florida, Spain and Portugal. The firm has developed more than 10 million square feet of commercial real estate including more than 6,000 residential units and more than 3,300 hotel guestrooms such as the Eden Roc Resort Miami Beach and the Marriott Stanton Hotel South Beach.

Chicago-based Sterling Bay, which manages a portfolio exceeding $20 billion in real estate assets across the creative office, industrial, residential and life science sectors, has constructed spaces for major corporations like Google, McDonald’s and Dyson. In 2019, Sterling Bay completed its first Miami office development, 545wyn, which marked Wynwood’s first-ever Class A office building, sparking a boom in Wynwood’s commercial activity, and bringing major tenants to the submarket, including Sony Music, PwC, MIAX, Gensler and Slalom. 

The post Sterling Bay, Key International to Develop Miami Office Tower appeared first on Commercial Property Executive.

Seagis Property Group LP has landed a $122 million loan for the financing of a 13-property industrial portfolio. Totaling more than 1.1 million square feet, the assets are situated in northern New Jersey, New York City and South Florida.

A correspondent lender of JLL NJ originated the financing, which is in the form of a five-year, fixed-rate loan.

Each property aligns with Seagis’ strategy of focusing on high-quality gateway and infill markets in East Coast territories. In New York and New Jersey, the properties are located in Meadowlands, Outer Boroughs and central New Jersey. The South Florida industrial buildings are in the Miami and Broward County markets.

READ ALSO: What’s Driving the Manufacturing Revival?

Five buildings of the portfolio are in New Jersey, seven are in South Florida and one is in Queens, N.Y. Completed between 1973 and 2021, the industrial buildings were largely purchased by Seagis within the last two years.

At the time of the financing, the portfolio was 95 percent occupied.

JLL’s Capital Markets Debt Advisory team of Senior Managing Directors Jim Cadranell and Gregory Nalbandian, Vice President Michael Lachs and Associate Jimmy Calvo represented the borrower.

Industrial sector’s forecast

Last year, industrial construction nearly halved due to a multitude of factors, according to the latest CommercialEdge industrial report. While there was a general slowdown, certain parts of the country fared better than others. Dallas and Phoenix combined contributed over 17 percent of all construction starts across the U.S.

As of the end of November 2023, the national industrial vacancy rate stood at 4.6 percent, above the nearly 4 percent vacancy rate in the first half of the year, according to the same report. Despite this increase, the industrial sector performed very well last year.

In 2024, experts anticipate the industrial sector to cool off. Two determining factors to look out for include retail and e-commerce, which have the potential to drive demand for logistics space near population centers.

The post Seagis Lands $122M in Financing for Industrial Portfolio appeared first on Commercial Property Executive.

The Atrium at Broken Sound. Image courtesy of CommercialEdge data

Meyers Accesso has acquired The Atrium at Broken Sound, an almost 100,000-square-foot, three-story Class A office property at 6111 Broken Sound Parkway N.W., in Boca Raton, Fla.

The property is within The Park at Broken Sound, a 700-acre mixed-use development that offers walkable proximity to numerous retail developments, residential communities and amenities.

The deal’s dollar value was not disclosed. CommercialEdge data indicates that the previous owner was Alchemy-ABR Investment Partners, of New York.

The Atrium at Broken Sound is sited on 10.4 acres and recently underwent capital improvements that included renovations to its lobby, conference rooms, common areas, windows and generators. Meyers Accesso plans on implementing further property improvements.

Completed in 1986, the office asset is 74 percent occupied. Major tenants include law firm Sachs Sax Caplan PL, managed care service provider Genex Services LLC, office technology provider TGI Office Automation LLC and retailer Marshalls of MA Inc.

The property offers convenient access to Interstate 95 as well as views of The Old Course golf course at Broken Sound Club, which was home to the PGA Tour Champions season opener for 15 straight years.

Meyers Accesso is a relatively “new” company, having been formed in 2022 by the merger of Meyers Group and Accesso. Under Ariel Bentata and Stuart Meyers, its co-chairmen and co-CEOs, the company focuses on mixed-use and residential properties.

Holding steady

Rents for both the Class A and Class B office space in South Florida have hit a plateau and “the vacancy rate has remained steady for the last few quarters despite absorption of new space showing a trending decline,” according to a third-quarter report from Lee & Associates.

In a market where tenant retention is the priority for many landlords, one of the biggest deals in the third quarter was Greenberg Traurig LLP’s renewal for their 128,450-square-foot space at the Wells Fargo Center in downtown Miami, where they have been since 2010.

This past August, flexible office provider Quest Workspaces leased 20,844 square feet of space at 1200 Corporate Place in Boca Raton, Fla. The full-floor lease essentially doubled Quest’s presence in the building. The landlord is Keystone, of Conshohocken, Pa.

The post Meyers Accesso Acquires South Florida Office Building appeared first on Commercial Property Executive.

The 7-acre Sundy Village development’s total cost reaches $240 million. Rendering courtesy of Pebb Capital

Pebb Capital has secured a $173 million construction loan from Monroe Capital and J.P. Morgan for its $240 million Sundy Village office and retail development in the heart of downtown Delray Beach, Fla.

The mixed-use project broke ground in early 2023 at 22 W. Atlantic Ave., at the corner of Atlantic and Swinton avenues on a 7-acre site. Completion is slated for the summer of 2024.

The development, which will be the last remaining master-planned office project in Delray Beach, will feature 180,000 square feet of Class A office space and more than 28,000 square feet of experiential retail space.

The developers are preserving and restoring several buildings listed on the National Register of Historic Places for retail use, including Sundy House, one of the oldest houses in Delray Beach, as well as The Rectory and Cathcart House. Pebb Capital acquired Sundy House in October 2019 for $40 million from MGM Delray LLC, as part of a larger transaction that included the proposed Sundy Village development site.

Gensler and RLC Architects are in charge of designing the project that will include open-air courtyards and walkways, green spaces and indoor and outdoor dining spaces. Bluewater Builders is the general contractor.

Pebb Capital already preleased 141,400 square feet of the space. Tenants will include Barcelona Wine Bar, a tapas bar with Mediterranean, Spanish and South American influences, as well as Vertical Bridge, the world’s first carbon-neutral communications tower company. Double Knot, a Philadelphia-based restaurant concept from Chef Michael Schulson, will also be present at the site.

First Vice President Joe Freitas and Executive Vice President John Criddle of CBRE will oversee Sundy Village office leasing. Sara Wolfe of Vertical Real Estate is handling retail leasing.

Pebb Capital recent moves

Todd Rosenberg, founder & managing principal of Pebb Capital, said in a prepared statement the team’s vision for Sundy Village is to push boundaries beyond current market offerings and drive a positive economic impact for Delray Beach. Rosenberg added that the firm was advised on the financing package by Ackman-Ziff. Noting it was one of the few construction loans closed in the country this year, Rosenberg said the financing was a testament to the strength of the placemaking project.

Founded in 2014, Pebb Capital is a real estate and private equity firm with offices in New York and Boca Raton, Fla. The firm has a portfolio valued at more than $3 billion and includes retail, lending, hospitality and student housing holdings.

In September, Pebb Capital sold Ocean Walk, a 65,908-square-foot retail center in Singer Island, Fla., to Related Cos. for $19.2 million, according to CommercialEdge information. Pebb Capital had owned the property since 2017. Ocean Walk encompasses four buildings that were fully leased at the time of the sale.

The post Delray Beach Mixed-Use Project Lands $173M Loan appeared first on Commercial Property Executive.

5505 Waterford, currently anchored by Lennar. Image courtesy of CBRE

Franklin Street Properties has completed the $68 million sale of 5505 Waterford at Blue Lagoon, a 213,182-square-foot Class A office building in Miami’s Airport South submarket.

The property, the former headquarters of Burger King and current base of operations of Lennar, was sold to an undisclosed buyer in a transaction brokered by CBRE.

The brokerage team was led by Vice Chairman Christian Lee and Vice President Sean Kelly. Other members of the team included Senior Vice President Amy Julian, First Vice President Andrew Chilgren of the company’s Debt & Structured Finance Group, as well as Vice President Marcos Minaya, Senior Financial Analyst Tom Rappa and Financial Analysts James Carr and Matthew Lee.

From one headquarters to another

The sale is the property’s first change of hands in more than two decades. Franklin Street has owned the building since 2003, which CommercialEdge shows that it purchased for $48 million a year after its construction. Located at 5505 Blue Lagoon Drive, the recently sold property lies adjacent to the Waterford Business District, an embankment of Class A office buildings that lie along Waterford Drive in central Miami.

READ ALSO: Miami’s Deal Volume Picked Up in Q3

Over the course of its ownership, Franklin Street oversaw renovations of the property’s lobby, lounge and parking structure, as well as the addition of a 5,000-square-foot fitness center, a fixture of many modern offices. Following Burger King’s 2018 move out of its headquarters to nearby 5707 Waterford at Blue Lagoon, publicly traded homebuilding giant Lennar became the property’s anchor tenant, signing a 16-year lease for roughly 156,000 square feet of space a year later. The building welcomed new tenants in 2022, with Unique Vacations, an event planning subsidiary of Sandals Resorts, closing on 53,119 square feet.

Deals and doings around Miami

Another fast food giant to recently make a home in Magic City is Subway, which opened a second headquarters at 1000 NW 57th Court in March of this year.

According to a November 2023 CommercialEdge report, Miami currently has among the South’s most valuable office markets, with a year-to-date sales price of $356 per square foot and an October listing rate of $44.83. The same data shows that office-specific investment sales from January through August added up to north of $1.3 billion.

The post Lennar’s Miami HQ Changes Hands appeared first on Commercial Property Executive.

Building 41 is part of Countyline Corporate Park Phase IV. Image by Claudio Schwarz via Unsplash.com

Terreno Realty Corp. has completed Countyline Corporate Park Phase IV’s Building 41, a 191,000-square-foot industrial facility in Hialeah, Fla. The property is already 100 percent leased to an international logistics company.

Countyline Corporate Park Phase IV is a 121-acre industrial development designed to accommodate up to 2.2 million square feet of space. Plans call for 10 LEED-certified buildings that will include a total of 660 dock-high doors, 22 grade-level doors and parking space that can accommodate up to 1,875 vehicles. The $510.3 million project is expected to be delivered by 2027.

READ ALSO: EV Boom Reshapes US Industrial Landscape

Located at 3621 W. 112th Place, Building 41 features 32-foot clear heights, rear-load distribution, two grade-level loading positions, 62 dock-high doors and 196 parking spots. The property is a $41.2 million investment with a stabilized cap rate of 5.1 percent.

The 10.5-acre property is just west of Interstate 75, also having direct access to the Ronald Reagan Turnpike. Miami International Airport is some 17 miles away.

An expanding industrial campus

Terreno’s expansion at Countyline Corporate Park—the 620-acre master-planned industrial campus developed by Florida East Coast Industries—started in February, when the company purchased Phase IV’s site for $173.6 million. The acquisition was funded through Terreno’s 5.75 million-share offering, priced at $65.06 per share, with underwriters Goldman Sachs and KeyBanc Capital Markets expected to purchase 2.5 million shares each.

Current developments within Phase IV include buildings 38, 39 and 40, three facilities totaling 870,000 square feet. Their completion is estimated for 2024’s second and third quarter.

The developer also has a total of seven fully occupied industrial buildings within the adjacent Countyline Corporate Park Phase III. Tenants include Seven Point Equity Partners, which occupies the entire Building 24, together with Ciao Imports and Vanguard Logistics, among others, according to CommercialEdge. Phase IV and III are expected to total 3.5 million square feet across 17 industrial buildings at full build-out.

The post Terreno Adds to $510M Industrial Campus in Miami appeared first on Commercial Property Executive.

Andrew Hellinger believes that many future office projects will be part of mixed-use developments. Image courtesy of Urban-X Group

In the dynamic landscape of modern workplaces, the concept of lifestyle offices has emerged as a transformative approach, tailored to meet the evolving needs of today’s workforce. These properties represent a unique evolution in commercial real estate, blurring the lines between work and lifestyle by mixing workspaces with leisure, amenities and community elements. The essence of these novel spaces lies in their capacity to prioritize employee well-being, foster a better work-life balance, and create engaging environments where work and unwinding seamlessly coexist.

In an interview with Commercial Property Executive, Andrew Hellinger, co-founder & principal of Florida-based Urban-X Group, explores the innovative realm of lifestyle offices, highlighting the elements that make the River Landing Shops & Residences project unique.

The 2.5 million-square-foot venture consists of 135,000 square feet of office space, approximately 360,000 square feet of retail, 528 market-rate apartments, more than 2,000 parking spaces and a landscaped riverwalk. Since its inauguration in 2020, it has significantly reshaped Miami’s commercial real estate, revitalizing one of the city’s oldest and most densely populated communities, and redefining the riverside environment.

READ ALSO: FTI Experts’ Hub—Brace Yourselves for a Full Return to the Office by 2028

Can you elaborate on the concept of lifestyle office and how River Landing embodies this idea? 

Hellinger: With remote and hybrid work now commonplace, employers aim to incentivize in-person attendance via vibrant workplace settings. As employers prioritize environments that improve the quality of life for their workforce, the lifestyle office has emerged as a new asset class.

Unlike traditional Class A spaces, lifestyle office properties like River Landing Shops & Residences incorporate retail, dining, entertainment, residential and recreational amenities into the tenant experience, embedding office spaces within dynamic live-work-play communities. At River Landing, the office crowd might eat lunch along the river, work out at the gym, shop at on-site stores before heading home, unwind with a kickboxing class at the end of the day, gather with friends at Tanuki for drinks after work, or just relax on the riverfront.

Lifestyle offices acknowledge today’s workforce priorities—namely work-life balance over career sacrifice. Convenience, amenity-rich surroundings and experiential appeal are paramount.

What was the inspiration behind the River Landing concept? When did you alter the project to respond to changing workforce behaviors and expectations?

Hellinger: We were inspired by the expansive riverfront access—the Miami River is at the heart and soul of River Landing Shops & Residences, west of downtown Miami. The project sits on a 10-acre parcel along the shores of the Miami River and the location is hard to replicate anywhere in Miami. We wanted our guests to be immersed in the experience the river has to offer, and utilized welcoming landscaping and architecture to draw residents, customers and visitors out to the river.

When we were looking for opportunities for development almost a decade ago, we wanted to go to areas where other developers were not building just yet. We wanted our development to become a catalyst of change and spur economic activity.

Urban-X Group’s aim was to create a vibrant community centering around River Landing Shops & Residence, infusing vitality into the neighborhood’s riverfront. Image courtesy of Urban-X Group

Our goal wasn’t just to build a project. We wanted to build a community with River Landing Shops & Residence at the heart of it, pumping life into the neighborhood by providing quality retail, dining opportunities, cultural events, entertainment, market-rate apartments, Class A office space and, more importantly, access to the bustling river. Prior to developing the project, the area lacked a cohesive environment and had few conveniences despite being home to the country’s second-largest health district.

Originally, the plan didn’t include office space. During the pandemic, we realized that we had an opportunity to reimagine space that was originally allocated for a movie theater. We anticipated a shift in workforce behavior, which, combined with a near zero percent office vacancy rate in our submarket, made it an obvious choice to pivot and include office space.

In your experience, what types of employers have been most attracted to the lifestyle office concept, and what employee-focused benefits do they value the most?

Hellinger: There isn’t one specific industry or type of employer drawn to lifestyle offices. Any employer that cares about their employees’ work-life balance and overall well-being is drawn to the new concept. Every day, I look out my window and see office workers at River Landing hanging out in the atrium, sitting along the river and walking around the shopping center. Sometimes they take calls or eat lunch, but many times they just come out to have a break and let their mind flow freely to recharge.

READ ALSO: What’s Next for Office? SIOR Conference Report

That’s what a lifestyle office space is all about—the flexibility for employees to be able to actually take a break from work and not be stuck in a concrete jungle all day. The new generation of office workers has been vocal that they prioritize their personal time over all else, and bringing an enjoyable environment to them incentivizes employees to show up and do their best work.

Tell us more about the community impact you’ve seen as a result of this lifestyle office development. Can you provide examples of specific ways the lifestyle office class has positively impacted employee work-life balance and overall job satisfaction?

Lifestyle office spaces like River Landing differ from traditional Class A offices by combining retail, dining, entertainment and residential amenities, creating dynamic live-work-play communities around the office spaces. Image courtesy of Urban-X Group

Hellinger: When I talk to my tenants at River Landing, one of the main reasons they picked our office space was their desire to make work more enjoyable for their employees and encourage them to come into the office more often. They needed to give their team members a reason to leave their homes and drive to the office.

Rather than forcing a return-to-work policy, employers are figuring out ways to make their employees excited to come to the office. It is also fulfilling to see many of our office tenants hop on the Trolly or Metromover to avoid Miami’s congested roads and, in some cases, even arrive to work on a boat.

In what ways do you see this trend impacting the overall commercial real estate landscape in South Florida? 

Hellinger: It is clear the pandemic truly changed the way employees view working from an office, as most are no longer willing to sacrifice their lifestyle for work. On the contrary, the Great Resignation has taught us that more people were willing to walk away from their jobs for opportunities more aligned with their expectations and quality of life.

Today, employees are more demanding in what they expect from their work life, and commercial real estate developers are responding with a new generation of mixed-use developments where office buildings no longer stand alone, isolated from the rest of the community.

Looking ahead, what do you anticipate for the future of the lifestyle office market in Florida?

Hellinger: While the demand for office space across the nation continues to generate negative press, South Florida continues to focus on improving the office experience to welcome businesses expanding or relocating to our region. I have no doubt that many of the future office projects will be part of mixed-use developments where people will be able to work, live and play all year round. The new generation of workers expect that.

The post How Lifestyle Offices Are Redefining Work-Life Balance appeared first on Commercial Property Executive.

Assets in the portfolio include buildings in Davie (pictured), Deerfield Beach and Lauderhill. Image courtesy of CBRE

Longpoint Partners has purchased a 25-building industrial portfolio totaling roughly 1.4 million square feet. Seagis Property Group sold the properties, located across Miami and Broward counties in South Florida. At the time of the transaction, the portfolio was 97 percent leased.

Included in the deal are properties located at 400 Goolsby in Deerfield Beach, 2100-2190 SW 71st Terrace in Davie, and 3685 15th St. in Lauderhill, among many others.

The deal marks Florida’s largest industrial sale of the year so far, according to CBRE, and also the second-largest commercial real estate sale in the state in 2023.

CBRE National Partners’ Jose Lobón, Frank Fallon, Trey Barry and Chris Riley represented Seagis Property Group. CBRE’s Tom O’Loughlin, Devin White, Royce Rose and Alain Bonvecchio assisted the team.

Brian Linnihan, Mike Ryan, Richard Henry and JP Cordeiro with CBRE Capital Markets’ Debt and Structured Finance in Atlanta represented the borrower and buyer in the deal.

Longpoint recently closed its third institutional fund, which was oversubscribed at some $940 million of commitments. The fund is geared toward small- to medium-sized, underutilized industrial assets across the nation.

An industrial portfolio in South Florida

Completed in 1985, 400 Goolsby is an 86,400-square-foot facility, CommercialEdge data shows. Before selling it to Longpoint as part of the 1.4 million-square-foot portfolio, Seagis Property Group had purchased it in 2008 for $8.1 million. Tenants include Doormark and Brunswick Door.

Seagis Property Group acquired 2100 SW 71st Terrace in 2007. Completed in 1985 and totaling 96,175 square feet, the facility features 24-foot clear heights, a truck court and 168 parking spaces. Tenants at 2100 SW 71st Terrace include US Imaging Solutions, NOVA, Visual Edge IT and Bommarito Performance Systems.

Totaling 53,298 square feet, 3685 15th St. came online in 1987. Tenants include Sunlite, Dennis Shipping, All County Produce and BungoBox, among others.

The post Longpoint Acquires 1.4 MSF Florida Portfolio appeared first on Commercial Property Executive.

Highland Park Miami will expand Miami Medical District’s footprint by 10 percent. Image courtesy of Black Salmon and The Allen Morris Co.

Miami performed well through the first nine months of this year, with deal volume increasing in comparison with first-quarter data. As of September, the metro’s office market had some 2.4 million square feet under construction, representing 3.6 percent of total stock.

When compared to the national and peer markets figures in relation to the percentage of stock, the metro exceeded the U.S. figure (1.8 percent) as well as Charlotte’s (3.5 percent), Washington D.C.’s (1.2 percent) and Chicago’s (1.0 percent) but was outpaced by Austin’s and Boston’s; both metros had under-construction pipelines accounting for 5.6 percent of total stock.

Despite the slowdown in construction funding and the current economic climate, Miami’s office pipeline remained robust, while the share of coworking space as percentage of total leasable office space was one of the largest among the gateway cities.

Multiple projects underway

Developers added 180,223 square feet of office space this year, spread across four properties, while another 26 properties were underway. One of the largest office projects under construction in Miami is Highland Park Miami, a $1 billion mixed-use project that will increase Miami Medical District’s footprint by approximately 10 percent. Developed by Black Salmon and The Allen Morris Co., the project will feature 500,000 square feet of medical-related office space, a 150-key hotel, 1,000 residential units and restaurants.

830 Brickell. Image courtesy of OKO Group/Cain International

The Class A+ office high-rise at 830 Brickell will total 638,355 square feet upon its completion. Developers OKO Group and Cain International topped out the 55-story project in June 2022, while delivery is expected by the end of the year.

Another major project is Royal Caribbean‘s new headquarters, a Class A office mid-rise totaling 350,000 square feet in Miami’s Central Business District. The $300 million project was slated to come online by the end of 2020, but the pandemic-induced construction delays pushed the delivery date to early 2024.

Deal volume increased since 2023’s first quarter

In the third quarter of the year, Miami’s office sales volume totaled $309 million and 1.1 million square feet, with office buildings changing hands at an average $360.5 per square foot. Miami seems to reemerge as a corporate hotspot, in comparison with the $100 million sales volume and 762,836 square feet recorded in the first quarter of 2023. On a year-to-date basis, the average sale price per square foot in Miami ticked $349, with a total sales volume set at $928 million. Across other markets, sales prices were highest in Manhattan ($568 per square foot), Austin ($425 per square foot) and Boston ($314 per square foot).

Lincoln Place is Starwood Capital’s former headquarters. Image courtesy of CommercialEdge

In terms of total sales volume on a year-to-date basis, Miami outperformed Charlotte ($172 million) and Austin ($496 million) but was outpaced by Los Angeles ($1.98 billion), Manhattan ($1.65 billion), Boston ($1.35 billion) and Chicago ($830 million).

One of the largest deals in Miami closed in September, when PGIM Real Estate sold 355 Alhambra Circle, a 224,241-square-foot Class A office building in Coral Gables, Fla. Princeton International Properties paid $90 million for the 16-story asset.

Another significant acquisition recorded in September includes Black Lion Investment Group‘s $82 million purchase of Lincoln Place in Miami Beach, Fla. The 139,887-square-foot office building was sold by Nightingale Properties.

Flex office providers expanding in Miami

Compared to other markets, Miami had one of the largest shares of coworking space as a percentage of leasable office inventory, at 3.3 percent in September. That outpaces Boston’s 1.7 percent, Chicago’s 1.9 percent and Manhattan’s 2.6 percent rate.

At the end of the third quarter, flex office provider Regus had the largest footprint in Miami, with operations totaling 280,355 square feet. The company was followed by Industrious, with 215,000 square feet, while WeWork was third, with 195,369 square feet. Miami also had some 1.5 million square feet of shared space as of September, outpaced by Boston (2.6 million square feet) but outperforming Seattle (1.4 million square feet). In August, flex office provider Quest Workspaces added 20,844 square feet of coworking space in Boca Raton, Fla., at 1200 Corporate Place, where the company already operates a 21,120-square-foot space, now under renovation.

Wells Fargo Center. Image courtesy of Cushman & Wakefield

Significant leases in September included Greenberg Traurig‘s 128,450-square-foot renewal at MetLife Real Estate Investment’s Wells Fargo Center in downtown Miami. At the building since 2010, the tenant committed to the same five-floor space for the next five years. Additionally, the renewal represents the city’s largest CBD office deal in recent years.

CBRE has been appointed as exclusive leasing agent in charge of a 400,000-square-foot office development coming in Miami’s submarket of West Palm Beach. The Class A, 26-story office tower is being developed by Cohen Brothers Realty Corp. and the first tenant move-ins are expected to begin in late 2026.

The post Miami’s Deal Volume Picked Up in Q3 appeared first on Commercial Property Executive.

Corporate Logistics Center is available for lease. Photo by Smith Aerial Photos, courtesy of Woodmont Industrial Partners

Woodmont Industrial Partners, together with Butters Construction & Development, has completed Corporate Logistics Center, a 252,848-square-foot, Class A industrial facility in Jupiter, Fla. Cushman & Wakefield is the exclusive leasing broker for the property. This marks the partnership’s fifth completed project.

The owner financed the development with a $25.8 million construction loan, originated by Valley National Bank in October 2022, according to CommercialEdge.

READ ALSO: Emerging Trends for CRE in 2024 and Beyond

Corporate Logistics Center is at 15791 Corporate Circle and includes 36-foot clear heights, 60-foot speed bays, two drive-in doors, 48 dock doors, a 3,800-square-foot office component, outdoor storage facilities, 247 vehicle parking spots and 60 trailer parking spots. The asset is within Palm Bach Park of Commerce, a 1,200-acre master-planned campus, which is designed for 6.5 million square feet of future development.

The 17-acre property allows access to major thoroughfares and transport hubs—it is near State Road 710 and 19 miles from Port of Palm Beach, 21 miles from West Palm Beach, Fla. and 23 miles from Palm Beach International Airport.

Bullish on South Florida

Woodmont Industrial Partners has several other ongoing projects in South Florida. As part of its strategic expansion in the region, the company partnered with Butters Construction & Development for three other projects. The partnership started site work for a 2.1 million-square-foot industrial development in Fort, Myers, Fla. The 14-building project will be delivered over the next three years.

In July, the same two companies, together with PCCP, LLC, started construction on the first of an eight-building project within Palm Beach Park of Commerce. The first building will total 303,364 square feet of Class A space and is expected to be delivered in 2024.

The post Woodmont Completes 253 KSF South Florida Facility appeared first on Commercial Property Executive.

The Florida retail sector has been thriving due to the influx of new residents and businesses moving to the city, according to David Martin. Image courtesy of Terra

Over the past few years, South Florida has remained a sought-after destination for both residents and tourists due to, in part, the myriad of entertainment options and year-long outdoor activities. The robust demographic increase and constant flow of visitors have been supporting the area’s retail sector, which has maintained low vacancies and positive net absorption, according to a recent Matthews report.

To take the pulse of the market, Commercial Property Executive reached out to Terra CEO David Martin, who has been an active developer in South Florida for more than two decades. Besides residential projects, Terra’s  portfolio includes multiple retail and mixed-use developments across several Miami neighborhoods.

“I think we are well positioned to say this city is resilient, and there is no better place to be in right now than Florida,” said Martin. Here’s what makes him keep his optimism, despite the well-known challenges impacting the retail sector.

What would you identify as significant headwinds for developers today? What specific challenges do retail developers need to overcome? 

Grove Central will include a mix of retail, residential units and a public parking garage. Image courtesy of Terra

Martin: In today’s real estate market, scarcity of land, elevated construction costs and year-over-year rent growth continue to be a challenge for many developers in South Florida and across the country.

Pertaining specifically to the retail sector, it’s challenging to create a retail environment that meets the needs of today’s consumers. With an influx of people moving to Florida, curating a retail mix that caters to the demand and needs of specific neighborhoods based on their demographics is critical.

When developing or investing, research is one of Terra’s biggest priorities. Our firm researches the wants and needs of our consumers and the community, to harness a business strategy that’s going to favor all.

Considering the economic environment today, what is the number one financial challenge faced by the retail sector?

Martin: The biggest challenge many sectors are facing today—including the retail sector—is securing financing. Interest rates continue to rise and stricter underwriting requirements are fueling tightening financial conditions.

Even though the retail sector has been facing these challenges, in Florida we continue to see the retail sector thrive—an influx of new residents and businesses moving to the city are presenting opportunities.

READ ALSO: What Retail Investors Want Now—A View From Transwestern

We’ve seen a widespread shift toward more experiential and entertainment-focused retail concepts across the country. What do you think about this trend? Where do traditional brick-and-mortar stores still work? 

CentroCity will span roughly 300,000 square feet. Image courtesy of Terra

Martin: At Terra’s suburban locations, grocery-anchored retail development is performing strongly. The demographic in the suburbs will probably be older and looking for a traditional grocery experience.

We have seen experiential and entertainment-focused retail perform well in the urban markets and denser neighborhoods. In an urban market, you’ll likely be targeting a younger demographic that is looking for a different type of experience—restaurants, wellness concepts and less grocery or services you can shop online for.

There also seems to be a rise in neighborhood and community shopping centers. Do you expect this to become the new standard in retail?

Martin: This is certainly an interesting shift and it’s something we might continue to experience if the population in Florida continues to grow at the current rate. Another factor is the availability of land to develop in the suburbs. This is one of Miami’s greatest challenges—the scarcity of land and urban development boundaries have not kept up with South Florida’s growth.

Give us some details about Terra’s most recent projects.

Doral Atrium is a fully leased lifestyle-driven retail center recently completed by Terra. Image courtesy of Terra

Martin: In late 2020, we acquired a 1950’s shopping plaza in West Miami-Dade County with the intention of renovating the center and developing the excess land around it for multifamily, with the goal of creating a true urban mixed-use destination in a growing area of Miami. This idea grew into what today is CentroCity, a 38-acre, master-planned, mixed-use development which will include up to 1,200 market-rate residential apartments and about 300,000 square feet of newly revamped lifestyle-oriented retail and restaurant space anchored by Target. Construction is underway and we are currently nearing completion on the extensive renovation of the shopping plaza which will also include a new construction component featuring Ross, Five Below and other retail tenants.

In Miami’s Coconut Grove neighborhood, we are about to complete Grove Central, a mixed-use transit-oriented development in partnership with Grass River Property and Miami-Dade County. The transformative project will include multifamily/workforce apartments, a public parking garage and a total of 170,000 square feet of neighborhood-oriented retail space with tenants including Target, Sprouts Farmers Market, Total Wine, Club Studio and Five Below. Grove Central will also connect to and facilitate privately funded improvements made to the adjacent Coconut Grove Metrorail station and integrate directly with The Underline linear park, Miami-Dade’s bus system and the City of Miami’s popular trolley network.

In Miami’s City of Doral, we recently completed two fully leased lifestyle-driven retail destinations, Doral Square and Doral Atrium.

What other notable trends should we keep an eye on within the sector?

Martin: The retail sector is welcoming more service-oriented tenants that drive foot traffic to shopping centers. Terra has capitalized on this trend by sourcing complementary concepts in our retail centers. The idea is to have people visit not only one place, but two or more at the same center. For example, if we have a Yoga or Pilates tenant, having a juice bar, wellness café, or something related to fitness nearby is critical for the shopping center’s success.

READ ALSO: Navigating the Retail Financing Landscape—Peachtree Group’s CEO Weighs In

What are your company’s short- and long-term plans?

Martin: Terra’s goal and mission is to have a positive impact on the communities we build in—creating jobs, enhancing neighborhoods, adding green spaces and transforming communities to enable people to be successful and happy in their daily lives. We also want to stir economic growth and be a positive stakeholder in the community.

From an economic perspective, the company has been building condos for the last 20 years. We are moving beyond being a traditional condo developer in South Florida and focusing on a diversified asset portfolio—including multifamily, industrial, retail and much more. This focus aims to create a portfolio of diversified, steady and safe assets.

As we approach the end of 2023, how would you describe the year for the retail market, and what are your expectations heading into 2024?

Martin: The retail market in South Florida continues to be strong—with healthy sales reports and lack of new inventory over the years providing a positive balance of supply and demand. We are facing a bright outlook for the market and a strong forecast heading into 2024—which will, of course, depend on the impact of rates and how this will pose a threat to consumer spending.

The post Why Terra’s CEO Is Upbeat About South Florida Retail appeared first on Commercial Property Executive.

Fresco Y Mas is the anchor tenant at Trail Plaza, which was 99 percent leased at the time of the sale. Image courtesy of CBRE

Boston-based Longpoint Realty Partners has acquired Trail Plaza, a 181,558-square-foot grocery-anchored retail property in Miami for $49.3 million. MetLife Real Estate Investment sold the asset after owning it for more than 30 years. CBRE brokered the transaction.

MetLife acquired the property for $16.6 million in 1990, according to CommercialEdge data.

Built in 1987, Trail Plaza spans 17 acres and is anchored by Fresco Y Mas. Other tenants at the plaza include Walgreens, Harbor Freight Tools and Party Depot, along with numerous dining locations. It also includes six outparcel tenants. At the time of the sale, the property was 99 percent leased.

Located at 1032 SW 67th Ave., the property is off Highway 41 and roughly 10 miles west of downtown Miami. It is also some 7 miles from the Miami International Airport and 4 miles north of the University of Miami.

CBRE Executive Vice Presidents Dennis Carson and Casey Rosen represented the seller in the transaction. In prepared remarks, Rosen mentioned that the property has long-term land bank potential, as well as an upside in below-market rents and potential outparcel sales.

In March, Longpoint closed its Longpoint Specialty Grocer Fund I LP at $225 million, which is meant for purchasing core grocery-anchored neighborhood shopping centers. The fund is expected to acquire between 17 and 20 assets throughout Florida, Texas and California. Recently, the firm paid $22.7 million for a 66,006-square-foot shopping center in the Inland Empire.

The post Longpoint Pays $49M for Miami Retail Asset appeared first on Commercial Property Executive.

Flexible office provider Quest Workspaces will open a new coworking space in Miami spanning three floors. The firm will occupy 40,820 square feet at the CP Group-owned Miami Tower, in the metro’s CBD. This marks the company’s fifth location in the metro and 11th in the state.

The new flex-office space will open in multiple phases, with the first one on the 20th floor, debuting on November 1st. It will be followed by the opening of the 38th floor in the spring of 2024, and the opening of the 37th floor in the beginning of 2025. The locations will feature a total of 173 offices and amenities including a nap room, a treadmill room, meeting rooms and cafés with unlimited coffee, water and tea. Members will also have access to building facilities such as a fitness center and sky lounge.

Completed in 1987, the building spans 619,093 square feet across 47 stories. It underwent a full cosmetic renovation in 2012. The property also encompasses more than 19,000 square feet of retail space and parking space on floors two through 10. The owner acquired the asset in 2022 for $163.5 million, using a $101 million loan from Prudential Financial, according to CommercialEdge data. Tenants at the property include a variety of finance and law firms, the same source shows. Flexible office provider Premier Workspaces also operates a location in the building.

Miami’s coworking scene

Located at 100 SE 2nd St., the property is in the heart of downtown Miami. It is close to the Bayfront Park and across the street from Ultramont Mall. It is also near multiple transportation options, including the Knight Center Metromover Station situated within the building.

As of April, Miami had the largest share of flexible office space among all gateway cities, reaching 3.3 percent of its total leasable office space, a recent CommercialEdge market update shows. Quest Workspaces was the second-largest operator in the metro with some 2 million square feet at the time, according to the same source. Recently, the company has increased its footprint in Boca Raton, doubling the space of one of its locations.

The post Quest Workspaces Expands Miami Footprint appeared first on Commercial Property Executive.

Bridge Point Doral will total 2.6 million square feet. Image courtesy of Cushman & Wakefield

Bridge Industrial has signed its first tenant at Bridge Point Doral, a Class A master-planned industrial development that will total 2.6 million square feet in Doral, Fla. The tenant, a Fortune 50 food distributor, will occupy 131,411 square feet at the project’s Building 6—scheduled to be delivered in mid-2024.

Cushman & Wakefield is the exclusive leasing agent in charge of the development since July. The brokerage negotiated the lease on behalf of the landlord, while CRESA assisted the tenant. During the same period last year, the developer received approval from the City of Doral to break ground on the project.

Bridge Point Doral is a 175-acre industrial development within Miami’s Airport West submarket, rising at the corner of NW 107 Avenue and NW 41 Street. The future industrial campus will offer easy access to the Florida Turnpike and Interstate 75, as well as to Miami International Airport, located 10 miles away. Additionally, the project is 15 miles from Port Miami and 33 miles from Fort Lauderdale-Hollywood International Airport.

A phased industrial project

Phase 1 will total 1.2 million square feet and will include:

• The 366,528-square-foot Building 1 at 3600 NW 112 Ave., that will feature 126 loading doors and 313 vehicle parking spots;
• The 425,472-square-foot Building 2, that will include 122 loading doors, 393 vehicle parking spots, 135 trailer parking spots and will rise at 3605 NW 112 Ave.;
• The 276,359-square-foot Building 5, that will be at 3700 NW 107 Ave., and will feature 72 loading doors, 219 vehicle parking spots and 77 trailer parking spots;
• The 166,220-square-foot Building 6 at 3400 NW 107 Ave., that will include 42 loading spots, 116 vehicle parking spots and 49 trailer parking spots.

Common-area amenities of the industrial campus will include private truck courts, trailer drops, rear or cross-dock loading configuration, increased ceiling heights, along with retail and food options on site. The first buildings are scheduled for delivery in 2024. Phase 2 will add the 523,344-square-foot Building 3 and the 897,112-square-foot Building 4 to the ensemble.

Cushman & Wakefield’s team of Vice Chairman Wayne Ramoski, Managing Principal Gian Rodriguez, Senior Director Skylar Stein, and Broker Ivanna Leitner Perez negotiated on behalf of Bridge Industrial. CRESA’s Managing Principal Jeff Hartsook and Vice President Adam Talbot represented the tenant.

Recent industrial projects in the Miami metro

Other industrial projects in the metro include BX Park at Delray, a three-building industrial project that will total 672,533 square feet in Delray Beach, Fla. A joint venture between BBX Logistics Properties and PCCP LLC purchased the 40-acres site, with construction on the first phase expected to commence in early 2024.

In July, Summit Real Estate Group acquired a 224,650-square-foot distribution center in Pembroke Pines, Fla., where the new owner plans to build an additional 280,000-square-foot speculative building. Construction start is set for early 2024.

The post Bridge Industrial Lands 1st Tenant at 2.6 MSF Miami-Area Project appeared first on Commercial Property Executive.

The previous owner renovated 801 Brickell last year. Image courtesy of CommercialEdge

A joint venture of Monarch Alternative Capital and Tourmaline Capital Partners has acquired 801 Brickell, a 412,000-square-foot office building in Miami. Nuveen Real Estate sold the property. The transaction is valued at around $250 million, The Real Deal reported.

Nuveen acquired the Class A office building in 2002 for $80.3 million, according to CommercialEdge data. The company also renovated the asset last year.

Newmark Executive Vice Chairman Marcella Fasulo and Co-Head of U.S. Capital Markets Adam Spies, together with Cushman & Wakefield Executive Managing Director Dominic Montazemi and Executive Vice Chair Mike Davis represented the seller in the transaction, according to The Real Deal.

The building at 801 Brickell Ave. rises 28 stories and encompasses 19,904-square-foot floorplates. It features a tenant center on the fifth floor, which includes a lounge, conference center and fitness center. The building also comprises more than 32,000 square feet of retail space.

Tenants at the property include Mastercard, U.S. Securities and Exchange Commission and Royal Bank of Canada. According to Monarch, 801 Brickell is fully stabilized by several long-term commitments.

The building is near the Brickell City Center shopping mall and the Eighth Street Light Rail Station, which provides public transit access. It is also less than a mile from Burlingame Island.

Capitalizing on market dislocation

In prepared remarks, Monarch Managing Principal & Head of Real Estate Acquisitions Joshua Acheatel, stated that this deal represents the company’s strategy of taking advantage of market dislocation and negative national office sentiment by investing in overlooked high-quality properties. Last year, the firm partnered with Tourmaline to acquire a 906,459-square-foot office complex in Phoenix, in a deal valued at $385 million.

As of August, Miami was the most expensive office market in the south, with an average listing rate of $46.14, registering a total vacancy rate of 11.6 percent, considerably below the national average of 17.5 percent, a recent CommercialEdge report shows. Year-to-date through August, sales volume in the metro totaled $408 million at a $251 average price per square foot, the same source shows.

The post Monarch JV Acquires 412 KSF Office Asset in Miami appeared first on Commercial Property Executive.

While the volume represents a significant drop from the $4 billion recorded during the same timeframe in 2022, this decrease is contextualized as a moderation from the exceptionally active previous year, coupled with pandemic-induced changes in work dynamics.

Investors focused their attention on the Tampa market, where transaction volume totaled $473 million. West Palm Beach came in second with $256 million in office sales. In contrast, Miami saw a significant decline in sales volume, with only $227 million worth of office assets trading hands.

The top five deals, as outlined in the table below, account for $302.6 million, which translates to 22.2 percent of the total investment volume, according to CommercialEdge. Here are the five largest office single-asset sales closed in Florida between January and August.

1. 6600 North Military Trail, Boca Raton

In April, a PEBB Enterprises and BH Group joint venture purchased 6600 North Military Trail in Boca Raton, Fla.

In April, ODP—the corporate entity behind Office Depot and Office Max—sold its headquarters building to a joint venture between Boca Raton-based PEBB Enterprises and Miami-based BH Group. The $104 million sale-leaseback deal was the largest single-property office sale year-to-date through August in Florida. The sale was funded by a 63 million loan provided by City National Bank of Florida.

ODP's recent transaction serves as a strategic move in their ongoing efforts to navigate the challenges brought about by supply chain disruptions during the pandemic. The property previously traded in 2017, when ODP purchased it from Equity Commonwealth for $132 million, CommercialEdge data shows. Completed in 2008, the 639,830-square-foot office building spreads across 29 acres at 6600 North Military Trail in Boca Raton, Fla.

2. Museum Tower, Miami

The second-largest office deal closed in the first eight months of the year was Mana Group’s $73.5 million acquisition of Museum Tower in Miami’s central business district. Bridge Investment Group sold the 266,697-square-foot asset at the end of April, with Starwood Capital Group providing $47 million in financing, according to CommercialEdge.

Located at 150 W. Flagler St., the 29-story building features 7,000 square feet of first-floor retail and 12 levels of parking. While originally completed in 1983, the previous owner—which acquired the asset in 2019 for $64.6 million from Gaedeke Group—invested some $4.5 million in building improvements since its purchase.

3. 101 East Broward Blvd & Corporate Center, Ft. Lauderdale

Homegrown company PEBB Enterprises kept active in the first half of 2023, closing another major office deal in May. The firm acquired 101 East Broward Blvd & Corporate Center, a 342,465-square-foot office complex in Fort Lauderdale, for 43 million. Amerant Bank funded the sale with a $48.5 million loan.

The seller was Stockbridge Capital Group, which previously bought the property out of foreclosure in 2018 for $41 million. Originally completed in 1982, the asset encompasses a two-story and a 24-story structure and features 3,200 square feet of retail. Tenants include Fort Lauderdale Downtown Development Authority, Truist and multiple law firms.

4. Ryder Headquarters, Medley

Earlier this year, transportation and logistics company Ryder sold its headquarters in Medley, Fla., in a sale-leaseback deal.

In another sale-leaseback deal closed in March, Bridge Industrial paid $42.1 million for Ryder‘s 248,989-square-foot headquarters building in Medley, Fla. The transportation and logistics company purchased it from Flagler in 2014 for $41 million, CommercialEdge data shows, but has been using the building as its flagship location since 2005. The four-story building sits on 17 acres at 11690 NW 105th St. and features 996 parking spaces.

Although Ryder employs over 48,000 individuals across North America, its Miami base hosts 800 South Florida office employees, a significant portion of whom have been working remotely or adopting a hybrid work model since March 2020. The sale comes as a response to these changes.

5. Bridgeport Center, Tampa

Early in 2023, NAI Merin Hunter Codman acquired Bridgeport Center, a Class A office building at 5201 W. Kennedy Blvd. in Tampa, Fla. The 183,031-square-foot building was sold by America's Capital Partners for $40 million, while the transaction was funded by a $27 million loan provided by Manufacturers and Traders Trust Co.

The property was built in 1980 and underwent significant improvements in 2011, according to CommercialEdge. Additionally, it previously changed hands in 2013 for $25 million, when America's Capital Partners purchased it from Flagler. Tenants include Troy University, Harvard Jolly Architects, America's Capital Partners and United Way Suncoast, among others.

The post Top 5 Office Transactions in Florida appeared first on Commercial Property Executive.

The Alton is expected to break ground in early 2024. Image courtesy of Foster + Partners

SHVO has secured the approval of the Miami Beach Planning Board for the construction of The Alton, a six-story luxury office building in Miami Beach, Fla.

Designed by Pritzker Laureate Lord Norman Foster and the team at Foster + Partners, in collaboration with local architect Kobi Karp, the 203,722-square-foot project is slated to include 170,000 square feet of rentable office space, 17,000 square feet of ground-floor retail as well as five luxury residences.

Developers will build The Alton to LEED Gold standards, with 300 feet of Alton Road exposure as well as terraced outdoor rooms and native landscapes with inspiration from the climate and vegetation of Florida. Located at 1656-1680 Alton Road, the project will be less than a mile southwest of the Miami Beach Botanical Garden and roughly half a mile west of the City Center.

In October, SHVO will present its project to Miami Beach’s Design Review Board. If approved, The Alton is expected to break ground in early 2024.

SHVO is developing two additional Class A office properties in Miami Beach, in collaboration with architects Peter Marino and Foster + Partners. These include the revitalization of 407 Lincoln Road and One Soundscape Park. Adding the restoration and development of The Raleigh to the list of local projects, SHVO is investing more than $2 billion in Miami Beach, in partnership with Deutsche Finance America.

The post SHVO Gets Key Approval for Miami Beach Office Project appeared first on Commercial Property Executive.

Black Salmon and The Allen Morris Co. are teaming up to develop Highland Park Miami, a $1 billion mixed-use development that will span 7 acres and increase the footprint of the Miami Medical District by approximately 10 percent.

The partners made the announcement on Tuesday, Sept. 26, describing the project as one of Miami’s most significant developments in decades that will drive the economy and serve the city’s important health-care sector. Based in Miami, Black Salmon is a national commercial real estate investment with a large development pipeline in South Florida. The Allen Morris Co. is one of the largest real estate firms in the Southeast and has offices in Atlanta as well as Miami, Coral Gables and Orlando in Florida.

READ ALSO: Where the Smart Money Is Investing in CRE

The multi-block, master-planned development will feature 500,000 square feet of medical-related office space, a 150-key hotel, 1,000 residential units, retail and restaurants. To create a walkable, landscaped lifestyle community, Highland Park Miami will include open walkways and greenery.

Highland Park Miami will be located at 800 NW 14th St., between the Miami River and Florida State Road 836, the key east-west artery which leads directly to Miami International Airport and nearly every major destination in the city’s core. The development will also be visible from I-95 and across from the Jackson Memorial Hospital/University of Miami Health Complex.

A multi-phase development

The developers still need city approval but expect to begin preliminary site clearing later this year for the multi-phase project that is expected to take years to build out. The first phase should see about 250,000 square feet of medical office space and up to 300 units of housing.

The developers will be able to substantially increase the density at Highland Park Miami because it is 400 feet from a Metrorail station and qualifies as a transit-oriented development. About six buildings will be constructed with heights up to 22 stories, according to The Real Deal, which also reported Black Salmon spent approximately $60 million acquiring land near the Metrorail for the expansive project.

Miami-based Arquitectonica, a globally recognized architecture firm, is the master planner and designer for the project. Arquitectonica is also the lead designer for a mixed-use development being built by a joint venture of Related Group and BH Group at 2999 NE 191st St. in Aventura, Fla., in metro Miami that will feature office and retail uses.

Oppenheim Architecture, a global firm with offices in Miami, New York and Switzerland, is designing the residential component at Highland Park Miami and Naturalficial, a Miami-based landscape architecture and design practice, is the landscape architect.

A decade of planning

Led by Camilo Lopez, co-CEO & managing partner of Black Salmon, the team behind Highland Park Miami has been conceptualizing and planning the project for the past decade. Research included visiting major medical hubs in the U.S., including Houston and the Mayo Clinic Health District in Rochester, Minn., to learn more about the requirements for such a large undertaking that would expand what is already the second-largest health district in the U.S. Lopez said in prepared remarks the development should elevate Miami’s status as a premier health destination by adding state-of-the-art medical offices to support demand and new offerings for health-care professionals in a strategically designed and thoughtful setting.

Calling it a transformational project, W.A. Spencer Morris, president of The Allen Morris Co., said in a prepared statement the project will create a destination for the thousands of patients and employees at Jackson Memorial Hospital, the University of Miami Miller School of Medicine, the Miami VA Healthcare System and the larger Medical District ecosystem.

The post Black Salmon, Allen Morris Launch $1B Mixed-Use Development appeared first on Commercial Property Executive.

Lincoln Place is Starwood Capital’s former headquarters. Image courtesy of CommercialEdge

A joint venture between Black Lion Investment Group and Massa Investment Group has acquired Lincoln Place, a 140,000-square-foot office building in Miami Beach, Fla., for $82 million. The seller was Nightingale Properties, according to CommercialEdge data. Newmark arranged the transaction, which marks Black Lion’s largest deal to date.

Nightingale had purchased the Class A property in 2016 for $80 million, the same source shows. The acquisition had involved a $62.3 million loan from Granite Point Mortgage Trust.

READ ALSO: CBRE Capital Forecast: Caution This Year, Some Recovery Next Year

Completed in 2002, the eight-story building served as headquarters for Starwood Capital and has been primarily vacant since the former anchor tenant left in 2022. The property also includes 30,000 square feet of retail space and a 499-space parking garage. The new ownership plans to implement a multimillion-dollar capital improvement plan.

Located at 1601 Washington Ave., Lincoln Place is off Collins Avenue and roughly 8 miles from downtown Miami Beach. It is also within walking distance of the Lincoln Road mall, in a walkable area featuring various retail options.

Miami’s office market stays strong

Newmark Senior Managing Directors Jeremy Hakala and Clay Sidner brokered the transaction. Black Lion Founder & President Robert Rivani stated in prepared remarks that the acquisition was in part driven by corporate migration to South Florida from markets such as Los Angeles, New York and Chicago.

Miami was the most expensive office market in the South with an average listing rate of $46.14 per square foot as of August, marking a 3.5 percent drop year-over-year, according to a recent CommercialEdge report. However, the metro had the lowest vacancy rate in the region at 11.6 percent, the same research shows.

In terms of transactions, Miami registered a volume of $408 million in the first eight months of the year, with assets trading at an average of $251 per square foot. The price was the second-highest among southern markets after Austin, Texas, ($379 per square foot), and more than 30 percent higher than the national average of $193 per square foot.

The post Black Lion JV Pays $82M for Miami Office Asset appeared first on Commercial Property Executive.

Ocean Walk previously traded in 2017 for $7.6 million. Image courtesy of Pebb Capital.

Pebb Capital has sold Ocean Walk, a 65,908-square-foot retail center in Singer Island, Fla., for $19.2 million. The buyer was Related Cos., according to CommercialEdge information. JLL Retail Capital Markets brokered the transaction on behalf of the seller.

Pebb had purchased the asset back in 2017 for $7.6 million, the same source shows. After the acquisition, the company started a capital improvement plan.

Ocean Walk encompasses four buildings completed in 2010 on a 10.5-acre site. The shopping center features around 873 square feet of unobstructed oceanfront and approximately 490 parking spaces.

At the time of the current sale, the oceanfront lifestyle retail center was 100 percent leased. Featuring a diverse mix of local and national firms, the property’s tenant roster includes 7-Eleven, Subway, Mulligan’s Beach House, USPS, Wings Beachwear, Seaview Bagel Café and Johnny Longboats.

Located at 2401 N. Ocean Ave., the retail center is close to the public beach access point in North Palm Beach County. The property is also adjacent to a city park and surrounded by more than 4,300 condominiums and 800 hotel rooms.

Senior Managing Director Danny Finkle and Vice President Kim Flores, together with Senior Directors Jorge Portela and Eric Williams, led the JLL team which negotiated on behalf of Pebb. The same brokers, alongside Managing Director Ike Ojala, represented an affiliate of COFE Properties in the $58 million sale of a 129,585-square-foot retail center in Miami.

The post Related Cos. Buys West Palm Beach Retail Center appeared first on Commercial Property Executive.

The Greenery Mall was among South Florida’s first mixed-use projects. Image courtesy of Solo Photography.

Dadeland Greenery LP has acquired Greenery Mall, also known as Dadeland Square, a 129,585-square-foot retail center in Miami. Cofe ZM Dadeland LLC sold the asset for $58 million. The deal also involved the assumption of a $39 million mortgage.

Orion Capital Partners LLC is the project’s sponsor, and its affiliate Orion Real Estate Group will manage the property and lease the retail space, while Fairchild Partners will continue to lease the office component.

JLL Senior Managing Director & Co-Lead of the company’s U.S. capital markets retail group Danny Finkle, Senior Directors Eric Williams and Jorge Portela, Managing Director Ike Ojala and Senior Associate Kim Flores represented the seller, while Avison Young Principal John Crotty and Chairman Michael T. Fay consulted with both parties on the transaction.

Located at 7700 N. Kendall Drive, on 8.38 acres, the property is in the Kendall Smart Plan Mixed-Use Corridor and the Rapid Transit Activity Corridor due to its proximity to the Dadeland South Metrorail Station and the South Dade TransitWay Bus Terminal.

One of Miami’s first mixed-use projects

The street-level retail asset is one of South Florida’s first mixed-use projects, said Kevin Sanz, co-manager of the general partner of Dadeland Greenery LP in prepared remarks. The Greenery Mall is part of an eight-story building totaling 84,913 square feet of office space. Additionally, there are 743 parking spaces available. Tenants include T.J. Maxx, HomeGoods, Guitar Center, JoAnn Fabric, Mattress Firm, Starbucks, Don Pan, UPS and Jamba Juice.

In the past three years, Orion has acquired more than half a million square feet of retail and office space in the Dadeland and Pinecrest Submarket, which has one of the highest per capita income ratings in Florida, according to the company.

The post South Florida Retail Asset Changes Hands for $58M appeared first on Commercial Property Executive.

L&L Holding Co. and Oak Row Equities, alongside co-investor Claure Group and project partner Shorenstein Properties, have topped out a 266,000-square-foot office building in Miami. The 12-story tower is part of The Wynwood Plaza, a 1 million-square-foot mixed-use development currently underway in the city’s Wynwood Arts District.

The boutique office building is Class AAA and set to feature floor-to-ceiling windows, private terraces and column-free spaces. Amenities will include a fitness center, rooftop, café and bar lounge, as well as conference and coworking spaces.

The tower is located at 95 NW 29th St. It will include a center core, grand lobby, garage, touchless entry, efficient floorplates and top-quality air filtration. According to CommercialEdge data, the project will have 668 parking spaces.

READ ALSO: Mixed-Use Development Bolsters Miami Office Pipeline

Claure Group is set to locate its headquarters in the tower, anticipated to occupy 25,400 square feet on the eighth floor. Weitz & Luxenberg is another future tenant of the office building and is anticipated to open its first Miami office encompassing 18,000 square feet on the second floor.

The Wynwood Plaza landed a $215 million construction loan, provided through Bank OZK, earlier this year. Located on 2.85 acres in the northeast quadrant of the neighborhood, the site was purchased in June 2020.  

The office development is designed by Gensler and being built alongside construction company Moss and subcontractor Tekton. Scheduled for completion in the first quarter of 2025, the project is set to be the only new office tower delivering in Miami around that time.  

The up-and-coming plaza

Alongside the office development, The Wynwood Plaza campus will feature a 509-unit multifamily component and 32,000 square feet of retail space. Included in the retail space is a mix of casual restaurants, upscale dining, boutiques and convenience stores, 6,600 square feet of which is set to be outdoors.

The Wynwood Plaza will also include a half-acre public plaza. The outdoor space, designed by James Corner Field Operations, is expected to be the biggest in the Wynwood Arts District and one of the largest in the city. The campus’ pedestrian thoroughfare will feature full glass storefronts, palm trees and local flora.

The residential project, also under development, is set to feature two outdoor pools, four activated rooftops, coworking spaces and a sports court, sauna, hot tub, cold plunge, atrium, fitness center and game lounge. It will have luxury homes with studio, one- and two-bedroom floorplans.  

The post L&L Holding, Oak Row Hit Milestone in Miami appeared first on Commercial Property Executive.

Site plan of BBX Park at Delray. Image courtesy of BBX Logistics Properties

BBX Logistics Properties and PCCP LLC have formed a joint venture to develop BBX Park at Delray, a 40-acre logistics park in Delray Beach, Fla., that will have up to three buildings totaling as much as 672,533 square feet of logistics space.

The partners recently acquired the development site north of Atlantic Avenue on U.S. 441 in Delray Beach, located in the rapidly growing population center of western Palm Beach County. A 200,000-square-foot building is expected to be constructed in the initial phase of the project, with the two additional buildings developed in the future.

Aiming to attract tenants who cater to the community, the partners are planning buildings that can be divided into smaller units. Each of the three buildings should be able to accommodate spaces as small as 50,000 square feet. BBX Logistics Properties and PCCP plan to incorporate sustainability initiatives at the property including solar-ready roofing, electric vehicle charging stations, indoor air quality enhancements and advanced exterior lighting control systems.

READ ALSO: Industrial Continues Growth Amid Rising Rates

The joint venture expects to obtain debt financing and begin site development and construction of the first phase in the first quarter of 2024.

A wholly owned subsidiary of BBX Capital Real Estate and BBX Capital Inc., BBX Logistics Properties specializes in high barrier to entry, infill locations in Florida and other Eastern U.S. markets. BBX Capital Real Estate contributed $2.9 million to the joint venture and expects to contribute an additional $2.5 million based on its expected share of the estimated total development costs.

PCCP industrial deals

BBX Park at Delray is not the only Palm Beach County industrial project PCCP, a national real estate and investment finance firm focused on commercial real estate debt and equity investments, is currently developing. In July, PCCP, in partnership with Woodmont Industrial Partners and Butters Construction & Development, broke ground on the first of eight facilities planned for the Palm Beach Park of Commerce, a 1,200-acre master-planned industrial park in Jupiter, Fla. The initial asset, a 303,364-square-foot Class A building, is set to deliver in the second quarter of 2024.

PCCP has been active in the industrial sector elsewhere in the U.S. in recent months. In August, PCCP and KPR Centers secured a $56.3 million construction loan to develop Tri-State Industrial, a 525,000-square-foot facility in Claymont, Del. Located in metro Philadelphia, the Class A warehouse asset will provide easy access to Interstates 95 and 495, and the New Jersey Turnpike. Also last month, PCCP and MRP Industrial acquired a 57-acre site in York, Pa., for the development of a two-building, 674,000-square-foot industrial park that is slated for delivery in late 2024.

The firm also has industrial projects underway on the West Coast. Earlier this year, a joint venture of PCCP and Panattoni Development Co. announced plans to develop two Class A infill industrial parks totaling 625,320 square feet in Vancouver, Wash.—Vancouver Logistics II and Hidden Glen Logistics.

The post BBX Logistics, PCCP Plan Miami-Area Industrial Park appeared first on Commercial Property Executive.

Wells Fargo Center rises 47 stories in Miami’s CBD. Image courtesy of Cushman & Wakefield

MetLife Real Estate Investment has secured a 128,450-square-foot lease renewal at Wells Fargo Center in Miami, as law firm Greenberg Traurig committed to the same five-floor space for the next five years, according to the Commercial Observer. Cushman & Wakefield brokered the transaction on behalf of the landlord.

A tenant at the building since 2010, Greenberg Traurig currently occupies the largest law office in the city. The renewal marks the largest office leasing deal in the Miami central business district in recent years, according to Cushman & Wakefield.

A Class A office tower in Miami’s CBD

A joint venture between MetLife and MDM Development built the Class A, 752,488-square-foot office building as the second phase of Metropolitan Miami, a $1 billion mixed-use project that also included two residential towers and an entertainment complex. In 2011, MetLife became the sole owner of the high-rise—known back then as Met 2—that had come online one year before.

Rising 47 stories at 333 SE Second Ave., Wells Fargo Center is Energy Star and LEED Gold certified and features a tenant lounge, fitness center, in-building dining and modern telecommunication systems. The owner invested $4 million in property renovations in 2018.

Wells Fargo Bank has been anchoring the building since 2010. Other tenants include Insight Global, GrayRobinson, Savills, Allertech Laboratories and Cushman & Wakefield, according to CommercialEdge data.

At 93 percent occupancy, Wells Fargo Center has seen more than 250,000 square feet of leases in the last nine months. One of those deals, a 101,000-square-foot commitment by IT and security management software company Kaseya, was one of the most significant lease signings in Miami this year.

READ ALSO: Mixed-Use Development Bolsters Miami Office Pipeline

Tenants have immediate access to nearby dining, retail and entertainment venues throughout downtown Miami, while Interstate 95, the Metrorail and the Metro Mover provide several transportation options.

Cushman & Wakefield’s Brian Gale, Ryan Holtzman, Andrew Trench and Edward Quinon led the leasing transaction for MetLife. The same team brokered the Kaseya lease in March.

The Miami office market recorded a 12.8 percent vacancy rate as of July, according to a recent CommercialEdge report, marking a 150-basis-point increase over the year. However, the rate was 4.3 percent lower than the national average of 17.1 percent.

The post MetLife Inks 128 KSF Renewal at Miami Office Tower appeared first on Commercial Property Executive.

A rendering of 16000 Pines Market. Image courtesy of Terra

The Terra Group, a Miami-based development and investment firm, has sold 16000 Pines Market, a four-building, 135,000-square-foot retail center in Pembroke Pines, Fla.

Apollo Realty Income Solutions, the real-estate focused arm of publicly traded Apollo Global Management, purchased the property for $56 million. Cushman & Wakefield Vice Chair Mark Gilbert and Executive Director Adam Feinstein represented the seller in the transaction.

A project in Pembroke Pines

16000 Pines Market broke ground in 2018, and was completed in two phases between 2020 and 2022. Terra purchased the development parcel from the city in October 2017 for $11.5 million, a site located at the intersection of Pines Boulevard and Dykes Road. Funding for the project was sourced locally as well, with the firm inking a $48.8 million construction loan from Pineland Finance & Investment LLC.

Development took place at the same time as Pines City Center, a two-phase, 80-acre mixed-use project that includes 295,000 square feet of retail space, 120,000 square feet of office and hospitality space, as well as 1,400 multifamily units. Both Pines City Center and 16000 Pines Market were designed by Beame Architectural Partnership.

WATCH ALSO: 3 Ways to Boost Your Retail Real Estate Strategy

Presently, 16000 Pines Market consists of four buildings developed on 13.2 acres. The property is anchored by a Publix supermarket and Burlington. Other tenants include Crunch Fitness, Verizon Wireless, First Watch Café, Tropical Smoothie Café, Jersey Mike’s Subs and Cheddar’s Scratch Kitchen. Moreover, the shopping center features a local dental practice and urgent care center, as well as two separate standalone buildings leased by branches of Regions Bank and the United States Postal Service.

16000 Pines Market benefits from its location in Pembroke Pines, Broward County’s second most-populated city, home to 170,000 residents. The property’s namesake, Pines Boulevard, feeds into an onramp to the Interstate 75, situated one mile to the east. Downtown Miami is about 20 miles to the southeast, and the most distant points of the city’s metro lie within 40 and 60 miles, respectively.

Terra’s mixed-use projects in Miami

In addition to the 16000 Pines Market sale and development of Pines City Center, Terra has moved forward on a flurry of mixed-use investment and development opportunities around Miami. In April, the firm led an investment group’s $1.2 billion purchase of BayCity Miami, a 15.5-acre development site that includes north of 800 feet of land facing Biscayne Bay. Two months prior, the firm unveiled its development plan for The Offices at THE WELL, a 98,428-square-foot component of a project that includes luxury apartments and retail space.

The post Apollo Realty Goes Shopping in South Florida appeared first on Commercial Property Executive.

255 Alhambra underwent a $2 million cosmetic renovation. Image courtesy of Torose Equities

A joint venture between Torose Equities, LNDMRK Development and Terranova Corp. has purchased 255 Alhambra, a 220,000-square-foot office building in Coral Gables, Fla. An affiliate of Deutsche Bank and RREEF Real Estate Investment Trust sold the property for more than $50 million, according to The Real Deal. The new owners plan to upgrade the building’s amenities and will also execute a business plan to lease up the existing vacancy.

The Class A property previously traded for $59.9 million in 2006, according to CommercialEdge information. Completed in 1972, the building underwent a $2 million cosmetic renovation in 2014 which included new elevator systems, floor-to-ceiling windows, a new energy efficient HVAC system, lobby improvements, new landscaping and the addition of on-site banking and retail amenities. The 14-story tower features a fitness center, a conference center and 24/h security.

Also known as Alhambra International Plaza, the building is in downtown Coral Gables, one of South Florida’s most pedestrian-friendly neighborhoods, and within walking distance of an abundance of dining options on Giralda Avenue. The property is near Route 41, which provides direct access to downtown Miami.

Torose Equities’ Founder & Principal Scott Sherman said in prepared remarks that with the anticipated upcoming demand for office space in Coral Gables, the joint-venture partners expect the property to generate strong returns with stable in-place cash flow.

Sherman launched Torose last year, after leaving Tricera Capital. The company’s first investment was a 350,000-square-foot office building in Tampa, Fla.

The post Torose Equities JV Buys Miami Office Asset appeared first on Commercial Property Executive.

Across 11 locations, Quest Workspaces has a 92 percent average occupancy rate. Image courtesy of CommercialEdge

Flexible office provider Quest Workspaces is adding 20,844 square feet of coworking space in Boca Raton, Fla. The new space will span a full floor at 1200 Corporate Place, where the company already operates a 21,120-square-foot location undergoing renovation.

Upgrades to the original space are slated for completion in November. The building is owned by Conshohocken, Pa.-based Keystone, according to CommercialEdge data.

The new location will include amenities such as a nap room, five meeting rooms, a private treadmill room and gym, as well as access to events and refreshments. In total, Quest Workspaces occupies 41,964 square feet at the property, making it the building’s largest tenant. Other tenants include Commercial Finance Partners, Bank Rome and Techila Global Services, CommercialEdge information shows.

Completed in 1984, the four-story building totals 137,021 square feet and is undergoing property-wide renovations set to wrap up next year. Located at 1200 N. Federal Highway, the building is close to Interstate 95 and roughly 22 miles north of Miami. It is also within walking distance of the Hollywood Beach Golf Club and some 3 miles from the Hollywood Beach Boardwalk.

A growing suburban coworking market

There is a growing trend of coworking locations in suburban areas, Quest Workspaces Founder & CEO Laura Kozelouzek told Commercial Property Executive in a recent interview. These suburban workspaces allow employers to save money and provide employees with shorter commutes. The company is currently focusing on expanding its South Florida footprint, said Kozelouzek. That expansion also includes two locations in Doral and Coral Gables, which will open within six months.

The post Quest Workspaces Adds to Boca Raton Location appeared first on Commercial Property Executive.

Former Bang Energy warehouse. Image courtesy of Cushman & Wakefield

Summit Real Estate Group’s Arrowrock US Industrial Fund IV has acquired Bang Energy’s former warehouse and distribution center in Pembroke Pines, Fla. Vital Pharmaceuticals sold the 224,650-square-foot asset for $59.7 million, with the assistance of Cushman & Wakefield. The purchase also includes 23.2 acres of land, 13 acres of which being already zoned for development.

The sale closed just as Monster Beverage Corp. received approval to acquire Bang Energy in early July for $362 million, Forbes reported; the company had filed for Chapter 11 bankruptcy in October 2022.

Space for future development

Completed in 2018, the property previously traded in 2019 for $35 million, according to CommercialEdge data. After the acquisition, the Class A building doubled as a Bang Energy manufacturing facility and as a corporate accounting office for Vital.

Located at 20311 Sheridan St., the warehouse is close to State Route 27 and has access to Interstate 75. The property is 27 miles from Fort Lauderdale, Fla., and 34 miles northwest of Miami.

The facility was part of the 66-acre South Florida Distribution Center that Vital acquired from its developers, Core5 Industrial Partners and Helms Development, in three separate transactions. The campus included two completed buildings and the above-mentioned development site.

Under the new ownership, construction will commence on the 280,000-square-foot speculative building in the first quarter of 2024. Completion is expected in the last quarter of the same year.

The Cushman & Wakefield team representing the seller included Executive Vice Chairman Mike Davis, Executive Managing Director Dominic Montazemi, Vice Chairman Rick Brugge, Senior Director Rick Colon and Directors Greg Miller and Mike Ciadella. In addition, Vice Chairmen Rick Etner, Christopher Thomson and Chris Metzger, alongside Managing Director Matthew McAllister, will represent the buyer in leasing the existing building and the future development.

Miami had 26 industrial properties under construction and 32 in the planned and permitting stages as of July, set to add a total of 31.6 million square feet to the existing inventory, according to CommercialEdge information. The metro’s vacancy rate clocked in at 4.0 percent in June, 50 basis points below the national average, a recent report from the same data provider shows.

The post Summit Real Estate Pays $60M for Miami-Area Warehouse appeared first on Commercial Property Executive.

Bluffs Square Shoppes. Image courtesy of Sterling Organization

BPS Partners FL LLC has acquired Bluffs Square Shoppes, a 123,917-square-foot shopping center in Jupiter, Fla., for $39.1 million. JLL represented the seller in the transaction, Sterling Organization. The asset was 98 percent leased when the deal closed.

The retail center last traded in 2019, when Sterling Organization, through one if its fully discretionary investment funds, acquired it for almost $26 million from Regency Centers in an off-market transaction.

Bluffs Square Shoppes came online in 1986, on a 14.7-acre site, with Publix as current anchor. Other tenants include Walgreens, Locals Surf Shop, TooJay’s Deli, CrossFit Sea Dog and Grind Juice Co. Located at 4050 US Highway 1, the retail center is adjacent to Ocean Cay Park and the Juno Beach Pier.

The area’s demographics are favorable, with an average household income of more than $150,000 within a 3-mile radius as of 2019, according to Sterling Organization. The center is situated in a submarket with a stable cash flow and has strong redevelopment capacity, said Jorge Portela in prepared remarks.

Senior Managing Director and co-lead of JLL’s Retail Capital Markets Group Danny Finkle, Senior Directors Jorge Portela and Eric Williams and Vice President Kim Flores worked on behalf of the seller in the transaction.

The post South Florida Retail Center Commands $39M appeared first on Commercial Property Executive.

Spec Places in Bank of America Plaza, Atlanta. Image courtesy of CP Group

CP Group, of Boca Raton, Fla., plans to complete 340,000 square feet of its “worCPlaces” brand flexible office suites this year, the company announced on Monday, July 17.

Designed in collaboration with Gensler, the worCPlaces program was launched in late 2021, in response to market demand during the pandemic for flexible, modern workspaces.

The brand consists of three types of spaces designed to meet the needs of both small to medium-size tenants and enterprise-level businesses.

• Cowork Places, scalable coworking office space for small, growing teams
• Flex Places, individual suites with shared amenities, intended for high-growth companies
• Spec Places, traditional move-in-ready pre-built office suites

Tenants today urgently need customizable yet turnkey work environments that are fully amenitized for their staff, Brendan McGee, director of worCPlaces at CP Group, said in a prepared statement.

READ ALSO: Remote Work Shapes Office Sector

All worCPlaces suites offer flexible lease terms of two to 10 years. Tenants can have personalized company branding on their suite entrance, as well as hybrid meeting spaces, flexible workstations, dedicated break and copy/storage space, enterprise grade-internet and printing, and other in-suite amenities designed for flexibility and easy move-ins.

CP Group is underway on multiple worCPlaces offerings, all scheduled for delivery this year or early next year.

• Paces West in Atlanta offers seven Spec Places ranging from 3,000 to 7,000 square feet delivering next month, with two preleased.
• Bank of America Plaza in Atlanta is near completion on 100,000 square feet of Spec Places, totaling 13 suites of 4,000 to 25,000 square feet, two of which are preleased.
• 5600 Glenridge in Atlanta will have a full floor of Spec Places ranging from 3,000 to 4,000 square feet to be delivered by the end of the summer; one is preleased.
• Two Town Center in Boca Raton, Fla., has already leased up a full floor (of five spec suites) before its completion, recently completed another full floor of spec suites ranging from 1,700 to 3,200 square feet, and plans to build out another one or two floors of Spec Places by the end of this year.
• Boca Raton Innovation Campus in Boca Raton is underway on more than 30,000 square feet of Spec Places ranging from 1,700 to 3,200 square feet, as well as 16,000 square feet of Flex Places, to be delivered by 2024.

More choices

Before and through the pandemic, alongside the uncertainties of hybrid work, the coworking sector continues to expand, both in terms of total space offerings and the number of players, which include some of the commercial real estate industry’s most established companies.

The offerings have also become more sophisticated. For example, Sarah Travers, CEO of Boston-based Workbar, described different “neighborhoods” within a coworking space. A study neighborhood mimics a library, while a commons neighborhood is geared toward team collaboration.

The post CP Group Eyes Major Flex Office Expansion appeared first on Commercial Property Executive.

Woodmont Industrial Partners, in partnership with PCCP LLC and Butters Construction & Development, has broken ground on the first of eight facilities that it plans to build within Palm Beach Park of Commerce in Jupiter, Fla. Developers started work on a 303,364-square-foot Class A building, set to come online in the second quarter of 2024.

This groundbreaking represents Woodmont’s third project within Palm Beach Park of Commerce, a 1,200-acre master-planned industrial park, designed to encompass 6.5 million square feet of space, with parcel sizes ranging between 1 and 45 acres. It is currently home to more than 70 companies and is the largest fully entitled developable industrial product in the South Florida region. It includes access to foreign trade zones, rail services and major transportation infrastructure. Cushman & Wakefield is the appointed leasing agent for the entire industrial park.

READ ALSO: The Big City Rebound and Its CRE Implications

The partnership purchased the 20-acre development site in December 2021 for $6.6 million, Palm Beach County public records show. The same source reveals that Hartford Fire Insurance Co. has provided a $27.5 million construction loan.

Taking shape at 15430 Corporate Road N., the building will include 40-foot clear heights, 43 dock high doors, 60-foot speed bays, 196-foot truck courts, 206 vehicle parking spots and 26 trailer parking spots.

The development is 19 miles from Port of Palm Beach, 23 miles from Palm Beach International Airport and within 45 miles of Boca Raton, Fla. Additionally, tenants will have access to Fort Lauderdale, Fla., Miami and Port St. Lucie via Interstate 95 and Florida Turnpike.

Woodmont’s recent expansion

Woodmont has been active in the South Florida region in the past year, with recent projects including a 250,000-square-foot logistics center in Jupiter and a 75,989-square-foot industrial project in Lake Worth, both developed in partnership with Butters Construction.

Woodmont’s Northeast pipeline includes 8 million square feet of space, with development and renovation projects underway. In January, the company partnered with EverWest Real Estate Investors for an industrial development in South Brunswick, N.J., consisting of the renovation and expansion of a 145,000-square-foot logistics facility.

The post Woodmont, PCCP, Butters Start Palm Beach Industrial Project appeared first on Commercial Property Executive.

A rendering of West Palm Point. Image courtesy of CBRE

Cohen Brothers Realty Corp. has appointed CBRE as leasing agent for West Palm Point, a new development comprising a 26-story office tower and an adjacent parking structure in West Palm Beach, Fla.

CBRE’s John Criddle, Joe Freitas and Max Pawk, alongside Cohen Brothers’ Marc Horowitz, will lead the marketing and leasing campaign for the property. The CBRE team is already speaking with prospective local and national tenants, John Criddle said in prepared remarks.

READ ALSO: Remote Work Shapes Office Sector

To rise on 2.4 acres, the property will yield 400,000 square feet of Class A office space. The development is slated to occupy a full city block at intersection of Okeechobee and Quadrille boulevards, in the city’s downtown. The location is less than 1 mile from Related Cos.’ future office development that will comprise nearly 1 million square feet at full build-out.

Cohen Brothers hired architects Pelli Clarke & Partners and Nichols Brosch Wurst Wolf as designers of the project. Construction will begin in the fourth quarter of 2023, with tenant move-ins expected to commence in the third quarter of 2026.

Amenities at West Palm Point

A rendering of the parking structure’s rooftop. Image courtesy of CBRE

Amenities at the property will include a private landscaped rooftop park, conference rooms and 14,416 square feet of ground-floor retail space, as well as several restaurants and a fitness center.

The 10-story parking building will fit approximately 1,250 cars and 120 bicycles, comprising a rooftop gathering area with a café. Plans also call for an outdoor space with seating between the office tower and the parking structure.

Cohen Brothers Realty owns and manages upwards of 12 million square feet of office, design showroom and retail properties spread across Manhattan and Westchester County, N.Y., West Hollywood, Calif., Diana Beach, Fla., and Houston.

The post Cohen Brothers Taps CBRE to Lease Florida Spec Office Tower appeared first on Commercial Property Executive.

300 Banyan. Image courtesy of Brand Atlantic

Brand Atlantic Real Estate, along with joint venture partner Wheelock Street Capital, has topped off 300 Banyan, a Class A office building in West Palm Beach, Fla., spanning 115,000 square feet. Gilbane Building Co. serves as general contractor, and designs were provided by B+H Architects and Spina O’Rourke + Partners. Completion is expected by 2024.

The 12-story building will comprise 20,000-square-foot floorplates and private terraces of more than 3,000 square feet on every other floor. It is also set to include a 5,400-square-foot rooftop terrace—at more than 150 feet above sea level—as well as a 5,000-square-foot amenity deck with an indoor-outdoor fitness center. A 10,000-square-foot restaurant and a 4,200-square-foot garden room will take shape on the ground floor.

An ambitious West Palm Beach project

The building marks the second phase of Brand Atlantic’s mixed-use development—Banyan & Olive— following the rebranding and rehabilitation of 111 Olive, a 27,500-square-foot building constructed on the lot in 1936.

In August 2022, the partners secured $87 million in construction financing from Acore Capital, for the entire 55-acre project. Located at the intersection of Banyan Boulevard and North Olive Avenue, the site is within downtown West Palm Beach, in the Clematis Waterfront District.

In prepared remarks, Brand Atlantic Managing Partner Andrew Dance stated that West Palm Beach is one of the fastest-growing markets in South Florida. In an interview with Commercial Property Executive, Dance stated that the firm is targeting a finance-focused tenant base, including hedge fund managers, investment banks and venture capital funds. He also mentioned different challenges encountered in the development process, such as rising construction costs and the economic impact of inflation.

The post Brand Atlantic JV Tops Off 115 KSF Office Building appeared first on Commercial Property Executive.

Plantation Medical Office Park. Image courtesy of Avison Young

Manage Solution has acquired Plantation Medical Office Park, a 63,319-square-foot medical office facility in Plantation, Fla. Triarch Capital Group sold the Class B asset for $15.5 million.

The property previously traded in 2019, when Triarch Capital Group purchased the facility from The Kislak Organization for $11.3 million. The asset was also subject to a $7.4 million loan that same year, provided by BankUnited, with a maturity date set for 2029, CommercialEdge data shows.

Avison Young Principals John Crotty, David Duckworth, Michael Fay and Brian de la Fé represented the seller in the current transaction.

Originally completed in 1987, the property underwent cosmetic renovations in 2018. The six-building campus sits on 7.8 acres and offers 416 car parking spaces at a ratio of 6.8 spaces per 1,000 square feet, along with controlled access. The site has additional development potential for a two-story building of approximately 22,000 square feet. The campus was 98 percent occupied at the time of the sale. The tenant roster includes American Access Care, Dickens Sanomi Academy and the Non-Surgical Center for Physical & Sports Medicine.

Located at 6710-6834 W. Sunrise Blvd., the campus is 8 miles from downtown Fort Lauderdale. Westside Regional Medical Center, a 250-bed full-service hospital, is within 3 miles from the property. Other medical providers in the surrounding area include Florida Medical Center, Sanitas Medical Center and Conviva Care Center, among others.

Over a six month period ending in June, seven medical office buildings changed hands in the Fort Lauderdale market, totaling approximately 200,000 square feet, according to CommercialEdge data.

The post Triarch Capital Group Sells Fort Lauderdale MOB appeared first on Commercial Property Executive.

701 Brickell. Image courtesy of Cushman & Wakefield

Law firm Holland & Knight LLP has signed a 121,032-square-foot lease renewal at Nuveen Real Estate’s 701 Brickell in Miami. Cushman & Wakefield brokered the deal on behalf of the landlord, while CBRE represented the tenant.

Holland & Knight will continue to occupy six floors of office space at the 33-story tower. Nuveen acquired the Class A property in 2002 for $172 million, according to CommercialEdge information.

Situated on Brickell Avenue while also fronting Biscayne Bay, the LEED Gold-certified and Energy Star-rated building features efficient floorplans, a newly renovated lobby, a conference facility and a fitness center, as well as covered parking and on-site café. Additionally, the office tower holds a central position in Miami’s Brickell financial and tech neighborhood, with easy access to 31 different transit routes.

A 96 percent-leased Miami office property

Cushman & Wakefield has been managing the leasing operations at 701 Brickell on behalf of Nuveen since April 2019. Last year, the landlord secured leases amounting to a total of 71,292 square feet through nine transactions. Presently, the building has a 96 percent occupancy rate; Bank of America, Merrill, EFG Capital, Van Holland Group and DRA Advisors are among its tenants.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

Cushman & Wakefield Vice Chairman Brian Gale and Senior Director Edward Quinon represented Nuveen Real Estate. CBRE Vice Chairman Todd Lippman and Senior Vice President Shay Pope assisted the law firm in the negotiations.

Earlier this year, the same Cushman & Wakefield brokers represented Metropolitan Life Insurance Co. in a 101,000-square-foot lease at the Wells Fargo Center building in downtown Miami. According to the latest CommercialEdge report, as of May, the Miami office market had an overall vacancy rate of 11.8 percent.

The post Law Firm Re-Ups for 121 KSF Miami Lease appeared first on Commercial Property Executive.

Image by Art Wager/iStockphoto.com

• The metro was in the top 3 gateway cities with largest office pipeline relative to total stock
• Several large mixed-use projects comprising significant office components broke ground in 2023
• First-quarter deal volume dropped significantly on a year-over-year basis
• Miami had the largest share of coworking space as percentage of total leasable office space among gateway cities

As of April, Miami’s office market had 2.7 million square feet underway, representing 3.4 percent of total stock. The Magic City’s under-construction pipeline decreased by nearly 50 percent from the 5.4 million square feet recorded in April 2022.

The metro’s relative to total inventory pipeline at the end of the first quarter exceeded the national figure (2.1 percent), as well as that of Manhattan (3.1 percent), Los Angeles (1.0 percent), Chicago (1.2 percent) and Washington, D.C. (1.7 percent), but was lower than in Boston (6.2 percent) and Seattle (7.1 percent).

830 Brickell remains the largest office project underway. Fully leased prior to its completion, the 55-story skyscraper is the first Class A office tower to be constructed in the city’s CBD for more than a decade. OKO Group and Cain International topped out the tower in summer 2022 and are anticipating completion this year.

Mixed-use projects underway

THE WELL Bay Harbor Islands. Image courtesy of Terra Group

In February, Terra Group announced its plans to build nearly 100,000 square feet of office space in Bay Harbor Islands, Fla., as part of the mixed-use development dubbed THE WELL Bay Harbor Island. The project received a $141.8 million construction loan and completion is expected in late 2024.

Also in February, a joint venture of The John Buck Co., Florida Value Partners, BH Group and PEBB Enterprises purchased a 1-acre site in downtown Miami. Known as Miami Station, the 42-story project has been a long time under development, undergoing various adjustments along the years. The partners paid $39.5 million for the lot that is currently set to comprise 244,000 square feet of office space, more than 7,000 square feet of retail and 301 residential units.

In March, L&L Holding Co. and Oak Row Equities, along with co-investor Claure Group and partner Shorenstein Properties, broke ground on a 1 million-square-foot mixed-use project in Wynwood. Named The Wynwood Plaza, the project landed a $215 million construction loan from Bank OZK. Designed by Gensler, the project will include a 509-unit luxury residential building, an office tower and multiple indoor and outdoor retail and dining spaces.

Shared space gains ground in Miami office scene

Wells Fargo Center. Image courtesy of Cushman & Wakefield

Across gateway cities, Miami had the largest share of coworking space as percentage of total leasable office space, reaching 3.3 percent in April. In January, flex office provider Mindspace shared plans for a new, more than 31,000-square-foot space in downtown Miami. The company signed a 10-year, three-floor lease with RFR Realty at 100 N. Biscayne Blvd.

At the end of the first quarter, flex office provider Regus had the largest footprint in metro Miami, operating locations totaling roughly 4.8 million square feet. Quest Workspaces was second, with nearly 2 million square feet, followed by WeWork, with more 924,00 square feet.

Some of the most significant lease signings in 2023 included Kaseya inking a 101,000-square-foot lease at Metropolitan Life Insurance Co.’s Wells Fargo Center building in downtown Miami, marking the tenant’s fourth location in the metro. Additionally, fast food chain Subway opened a Miami office to act as a second headquarters alongside its counterpart in Connecticut.

Deal volume cut in half year-over-year

In the first quarter of the year, Miami office sales amounted to a total of nearly $100 million and 762,836 square feet, roughly half the dollar amount from last year’s $209 million. The average sale price per square foot dropped from the $330 registered at the end of March 2022, to $222.2 one year later. Sales prices were highest in Manhattan ($1,002.2 per square foot), Boston ($554.6 per square foot) and Seattle ($293.6 per square foot).

Across gateway cities, Miami had the second lowest deal volume in the first quarter of the year, after Seattle ($46 million). Boston ($680.2 million) led the list of gateway cities with the largest transaction volume in the first three months, followed by Manhattan ($417 million), Los Angeles ($357.2 million) and Washington, D.C. ($340.8 million).

11690 NW 105th St. Image courtesy of CommercialEdge

In March, Ryder System Inc. sold its Miami headquarters campus to Bridge Industrial for $42.1 million, marking the largest office transaction within the metro in the first quarter of 2023. The 248,989-square-foot building served as the former owner’s headquarters since 2005. Ryder Chairman & CEO Robert Sanchez said in a prepared statement that the company needed less space post pandemic, which led to the decision of downsizing its footprint.

Also in March, an entity tied to Atlantic Coast Automotive Inc. acquired Biscayne Centre in North Miami, Fla., in a $39 million deal. Incomm Agent Solutions was the seller of the 156,446-square-foot office building.

The post Mixed-Use Development Bolsters Miami Office Pipeline appeared first on Commercial Property Executive.

Image by 652234 via pixabay.com

Related Cos. has plans to further expand its West Palm Beach, Fla., footprint with the development of two new office towers totaling nearly 1 million square feet, according to South Florida Business Journal. The developer intends to start construction on the project in 2024 and complete it in 2026.

Dubbed East Tower and West Tower, the office buildings will rise at 550 S. Rosemary Ave. as part of The Square, a 72-acre urban complex with retail, restaurant, office and residential space formerly known as CityPlace. In 2021, Related reacquired CityPlace Tower, a building that the firm originally developed in 2008 as part of the mixed-use property.

READ ALSO: Top 5 Markets for Office Construction in the South

The two office towers would replace an AMC movie theater, located at 545 Hibiscus St., and a shuttered Italian restaurant at 550 S. Rosemary Ave. However, Related’s current development plans for the project are slightly different from the ones the firm filed with the West Palm city commission in March; at the time, the developer had envisioned two high-rises of 430,000 square feet each, according to The Real Deal.

Two new office towers coming to West Palm Beach

Related tapped Arquitectonica and O’Donnell Dannwolf & Partners Architects to design the East Tower. The 24-story high-rise, that will be the tallest office building in the city, will total 500,000 square feet and include private terraces and a rooftop sky garden with various amenities.

For the West Tower, Related selected Kohn Pedersen Fox and O’Donnell Dannwolf & Partners Architects again. The 22-story, 480,000-square-foot building will have private terraces, indoor and outdoor workspaces, as well as concierge service.

The office buildings will also feature a total of 60,000 square feet of ground-floor retail and restaurant space, as well as 40,000 square feet of outdoor activity spaces. TCRE was tapped to handle preleasing at the two properties.

Developing offices in Florida and further

Beyond its latest project at 550 S. Rosemary Ave., Related recently completed 360 Rosemary, a 20-story building that’s also located in West Palm Beach. The office property has already secured a lease from a fintech company looking to relocate its headquarters to the top two floors of the tower.

Outside of Florida, Related has been working on several major projects across the U.S. In partnership with Mitsui Fudosan America and Oxford Properties Group, the developer recently completed the 58-story 50 Hudson Yards in Manhattan, a property valued at $3.8 billion.

The post Related Cos. to Build 2 West Palm Beach Office Towers appeared first on Commercial Property Executive.

The Cordish Cos., in partnership with Caesars Entertainment, has unveiled details of The Pomp, a $2 billion mixed-use development currently under construction in Pompano Beach, Fla.

The Cordish Cos. first announced the 223-acre project back in 2018, and the ground breaking ceremony took place in February 2022. Upon completion, The Pomp will include 1.3 million square feet of retail and entertainment venues, almost 1.4 million square feet of Class A office space, two hotels and 4,000 luxury residential units.

The Live! entertainment district will anchor the property, which sits alongside Harrah’s Pompano Beach casino, under Caesars Entertainment ownership. Live! at The Pomp will feature a total of 25,000 square feet of dining and entertainment spaces of which a Sports & Social venue will encompass 18,000 square feet, while the remaining 7,000 square feet will be occupied by a PBR Cowboy Bar. The two establishments will open into a central plaza offering space for events, as well as other dining options.

With its space under construction, Topgolf is another tenant which will act as an anchor of The Pomp. Topgolf announced its eighth location in Florida two months ago. The venue will include 102 outdoor climate-controlled hitting bays, a restaurant, a rooftop terrace and a private event space. The venue is slated for completion later this year.

The Pomp will take shape at 777 Isle of Capri, at the intersection of Atlantic Boulevard and Powerline Road in downtown Pompano Beach, 10 miles from Fort Lauderdale and 37 miles from Miami.

The Cordish Cos. portfolio

The company has other projects underway in Florida, including a 62,000-square-foot dining and entertainment district in Miami and a 36,000-square-foot property at The Pointe Orlando.

The Cordish Cos. operates in several real estate sectors, including commercial, residential, entertainment districts and coworking spaces. One of its recent projects is Spark Arlington, a 30,000-square-foot coworking space as part of Texas Live! in Arlington, Texas.

The post Cordish, Caesars Unveil Details of $2B South Florida Mixed-Use appeared first on Commercial Property Executive.

The property formerly housed the offices of the Miami Herald. Image courtesy of Avison Young

SmartCity Miami, an investment group led by Miami-based Terra, is acquiring a mixed-use property in downtown Miami from Genting Group for $1.23 billion. The deal is expected to close before the end of the year.

The 15.5-acre development known as BayCity Miami, which formerly housed the headquarters of the Miami Herald, is located on Biscayne Bay in downtown Miami. Situated midway between Miami Beach and Miami International Airport, the site is the largest undeveloped waterfront property in the city’s urban core and encompasses more than 800 feet of direct frontage along Biscayne Bay.

The Avison Young team that represented Genting Group comprised Michael Fay, John Crotty, David Duckworth and Brian de la Fé. Suzanne Amaducci led a team at law firm Bilzin Sumberg representing the seller. Ricardo Fraga of Greenberg Traurig and Laura Gangemi of Gangemi Law Group represented SmartCity Miami.

There were nine offers on the property from prospective buyers, five of which exceeded $1 billion. Genting is retaining ownership of what it called a “significant” portion of land adjacent to the project.

In the office sector, Miami leads other southern markets for sales activity, CommercialEdge’s national office report shows. As of March, deals in the metro totaled $435 million year-to-date, with assets being traded at an average rate of $396 per square foot.

The Brookdale Group recently acquired Cornerstone Corporate Center I, a 170,172-square-foot, Class A office building in Plantation, Fla., for $37.9 million, while Atlantic Coast Automotive Inc. affiliate Biscayne Real Estate Holdings LLC acquired Biscayne Centre, a 156,446-square-foot office building in North Miami, Fla., for $39 million.

The post Terra-Led Investment Group Pays $1.2B for Miami Waterfront Site appeared first on Commercial Property Executive.

Courthouse Commons. Image courtesy of JLL Capital Markets

FoxRock Properties has received $16.7 million in refinancing for Courthouse Commons, an 85,660-square-foot office building in West Palm Beach, Fla. A JLL Capital Markets team led by Senior Director Jonathan Schneider worked on behalf of the borrower to secure the five-year, fixed-rate loan from Rockland Trust Co.

IP Capital Partners sold the property to FoxRock in 2018 for $22.8 million, according to CommercialEdge data, which financed the purchase with a $15.8 million loan originated by Citizens Bank of Florida.

Completed in 2007, the five-story building has a steel frame construction type and masonry exterior. The amenities at Courthouse Commons include a lobby with granite and marble finishes, a café with indoor and outdoor seating, three passenger elevators, controlled access and a six-story parking garage with a pedestrian skywalk which provides direct access to the County Courthouse.

The Class A office building is fully leased to six tenants, including the Department of Homeland Security, Granite Telecommunications, Slusher & Rosenblum, U.S. Drug Enforcement Administration and Burlington & Rockenbach.

Centrally located at 444 W. Railroad Ave., Courthouse Commons is across from the City Hall, in an area with an abundance of dining options, retail centers and entertainment venues. Palm Beach International Airport is only 4.4 miles away.

FoxRock has recently secured a $17.3 million refinancing for an office and industrial property totaling 282,924 square feet in Lincoln, R.I. JLL’s Jonathan Schneider arranged that deal as well.

The post FoxRock Properties Refinances West Palm Beach Office Building appeared first on Commercial Property Executive.

Cornerstone Corporate Center I. Image courtesy of JLL Capital Markets

The Brookdale Group has acquired Cornerstone Corporate Center I, a 170,172-square-foot, Class A office building in Plantation, Fla. Public records show that the asset changed hands for $37.9 million.

JLL Capital Markets brokered the deal on behalf of the seller, AFL-CIO Building Investment Trust, advised by PNC Realty Investors, and also procured the buyer. According to CommercialEdge data, the property had previously traded in 2000 for $32.8 million.

Located at 1200 S. Pine Island Road, the office building is part of the Cornerstone Corporate Center campus, providing connectivity to Interstate 595. Fort Lauderdale-Hollywood International Airport is some 11 miles from the property.

Completed in 1992 on a 9.1-acre site, Cornerstone Corporate Center I features a covered parking deck, recently renovated gym and café. An array of retail and dining destinations are also nearby. Marriott International, Morgan Stanley and MetLife are among the tenants at the 80 percent-leased property.

The JLL Capital Markets Investment Sales and Advisory team that assisted the seller was led by Senior Managing Director Hermen Rodriguez, Managing Director Ike Ojala, Senior Director Matthew McCormack, Associate Max Lescano and Analyst Blake Koletic. Despite the increasing interest rates, there is still substantial investor demand for suburban office buildings in South Florida, Rodriguez said in a prepared statement.

The post Brookdale Group Pays $38M for Metro Miami Office Asset appeared first on Commercial Property Executive.

6600 N. Military Trail. Image courtesy of CommercialEdge

The ODP Corp. has sold its 639,830-square-foot headquarters in Boca Raton, Fla., for roughly $104 million. BH Group and PEBB Enterprises acquired the asset in a partial sale-leaseback deal: The parent company of Office Depot and OfficeMax will maintain its headquarters in a portion of the building, totaling some 285,000 square feet, for at least two years.

CommercialEdge information shows the building previously changed hands in 2017 for $132.1 million. The price was 26.9 percent higher than the one of the current transaction.

In prepared remarks, Anthony Scaglione, CFO of ODP, said that the deal results in greater flexibility and lower operational costs for the company, allowing for improved asset utilization and shareholder returns.

Situated at 6600 N. Military Trail, the five-story building came online in 2008 on a 29-acre lot. The LEED Gold-certified property features 2,431 parking spaces, according to CommercialEdge data.

High prices in Florida

In Boca Raton, the 2022 end-of-year vacancy rate was 11.7 percent, a Cushman & Wakefield report shows. Demand in the area, as for the rest of the Palm Beach, Miami and larger Florida markets, was much higher for Class A office properties than for other asset classes. The same research shows that at the end of last year, Boca Raton office asking rent prices per square foot averaged $40.94, with $46.86 for Class A assets.

The Miami office market has started 2023 on a positive note, despite investments slowing down in response to lowered office space demand and rising interest rates. A recent CommercialEdge report shows that the metro’s sales volume accounted for $332 million as of February, occupying the fourth position in the U.S. after Boston ($666 million), New Jersey ($423 million) and Manhattan ($351 million).

The post BH Group, PEBB Buy South Florida HQ for $104M appeared first on Commercial Property Executive.

11900 Biscayne Blvd. Image courtesy of CBRE

Biscayne Real Estate Holdings LLC has acquired Biscayne Centre, a 156,446-square-foot office building in North Miami, Fla. According to public records, the buyer is an entity tied to Atlantic Coast Automotive Inc. CBRE Senior Vice President Benjamin Silver and Vice President Charlie Manuel brokered the $39 million transaction on behalf of Incomm Agent Solutions, identified by CommercialEdge as the seller, also procuring the buyer.

Completed in 1986, the eight-story office asset features ground-floor retail and a multi-level parking garage. Biscayne Centre was previously used as an office condo, but the seller recently renovated the property and transformed it into a boutique office building. Front desk security, an in-house café and a day spa are among the amenities available for tenants.

At the time of the sale, Biscayne Centre had an occupancy rate of 81 percent. Wolfson & Grossman, APRIL International, Offices of Olivia S. Benson, Bankers Life, Prime Medical of North Miami and Florida Breast Cancer Foundation are among the tenants at the property, CommercialEdge reveals.

Miami’s office market commands top dollar

Located at 11900 Biscayne Blvd., the property sits between Aventura, Bal Harbour, Surfside and Miami Beach, offering connectivity to Interstate 95, Florida’s Turnpike and State Road 826, while Miami International Airport is 13 miles away. Additionally, an array of retail and dining destinations are within walking distance.

According to the latest CommercialEdge national office report, Miami has emerged as the top leader among southern markets in terms of sales activity. The metro recorded office transactions amounting to $332 million and assets being traded at an average rate of $556 per square foot in the first two months of the year. Biscayne Centre changed hands at roughly $249.3 per square foot.

As per the same source, the market continued to maintain its position as the most expensive office market in the Southern region, with asking rents averaging at $46.89 per square foot.

The post North Miami Office Asset Changes Hands for $39M appeared first on Commercial Property Executive.

Mindy McIlroy, President, Terranova. Image courtesy of Terranova Corp.

As we celebrate Women’s History Month, Commercial Property Executive is highlighting the inspirational accomplishments of a wide range of female leaders. 

Mindy McIlroy is a visionary in the restaurant and retail sector, currently serving as the president of Coral Gables, Fla.-based Terranova Corp. With a keen eye for spotting trends and passion for creating unique experiences, she has made an impact on Miami’s vibrant retail and dining scene. She is the mastermind behind successful leasing to a variety of tenants on such iconic thoroughfares as Lincoln Road in Miami Beach and Miracle Mile in Coral Gables.

The executive has a track record of visualizing and developing innovative concepts. Among her notable achievements is The Lincoln Eatery, a Miami Beach food hall designed by global architecture firm Arquitectonica. The unique venue showcases a variety of fast-casual, artisan and grab-and-go concepts in a single location, appealing to foodies, locals and travelers alike.

McIlroy continues to explore new ideas and position Terranova as a leader in Miami’s retail market. She recently shared insights from her journey with Commercial Property Executive.

READ ALSO: Female Leadership in CRE—Where We Were and Where We’re Going

Tell us more about the mission of Terranova and how you became involved with the company.

McIlroy: Terranova is an opportunistic alternative investment firm with a core focus on U.S. real estate. We have a long-standing commitment to building better communities. While the company has built a vast national platform, we remain dedicated to our local roots by making a powerful impact on the commercial real estate industry we serve and on the community we call home.

I began my career at Terranova as an executive assistant in 1997. I had no plans to be involved in the real estate business, but the company president approached me and asked if I would consider transferring to a sales role in the leasing department. It seemed like a good idea at the time and has proven to be the best decision I have ever made.

What do you see as your biggest accomplishment in your career thus far?  

McIlroy: My biggest accomplishment consists of building our stellar team at Terranova. It’s been the 26^th year since I have devoted myself to our Terranova family. I have the utmost respect for this tight-knit team of amazing professionals—together we have so much more to accomplish and look forward to.

Where do you draw inspiration from? How do you stay on top of industry trends and changes?

McIlroy: I draw inspiration primarily from traveling, something I really missed during the pandemic. To me, traveling allows you to free yourself of the day-to-day routine which then allows you to view your surroundings with a completely fresh perspective. I often travel alone as I enjoy the sense of adventure that solo travel offers.

I think people are uncomfortable when they see me dining alone so the neighboring tables often strike up a conversation with me or ask me to join them. I have the most interesting conversations when this happens and love the opportunity to meet new people.

To stay current with retail industry trends, I go to a lot of networking events and conferences. I prefer in-person meetings and interactions.

You have completed well over $1 billion in retail leasing deals spanning a complete spectrum of retail properties. What lies behind this stellar performance?

McIlroy: It’s a combination of hard work, perseverance, discipline, a positive attitude and always being open to learning and new ideas.

What do you see as the biggest trends or shifts happening in the retail industry?

McIlroy: The restaurant industry has clearly led the way in retail leasing in South Florida. COVID-19 created a delivery culture that gave restaurants another method to reach customers that used to have to come in to eat. Pre-pandemic, ordering options were limited to pizza and Chinese food in South Florida. The delivery options, long a mainstay in cities like New York, exploded down here and Uber Eats and Door Dash were perfectly positioned to fill that need.

While we had years of positive population growth, the wealth of the most recent wave of new residents has far exceeded anything in the past and supported a lot of new restaurants coming down from the Northeast.

READ ALSO: Retail Property Redevelopment Strategies

How does Terranova engage with and give back to the community in which it operates?

McIlroy: We give back by participating civically, politically and socially. Our founder, Stephen Bittel, donated $1 million to the University of Miami Miller School of Medicine’s division of Movement Disorders in the Department of Neurology to accelerate research into a cure for Parkinson’s disease and improve developments in patient care. Having been diagnosed with Parkinson’s disease 10 years ago, I am actively involved with the Parkinson’s Foundation where I am a board member.

I am also the vice president of the Lincoln Road Business Improvement District in Miami Beach, the heart and soul of the Miami Beach retail and entertainment district. All of us at Terranova make it a point to frequent the restaurants and merchants in our investment portfolio during our professional and personal time as we feel it is very important to support our tenants.

In your opinion, what are some of the key skills and qualities that women bring to leadership positions in real estate?

McIlroy: I believe these are strong listening skills, can-do positive attitude and instinct to build an environment of collaboration and community.

What advice would you give to women looking to start a career in the real estate industry?

McIlroy: Find a mentor! Someone who motivates you, has a proven track record and a stellar reputation in the industry.

The post Inside the Mind of Miami’s Retail Visionary appeared first on Commercial Property Executive.

Grove Central. Image courtesy of Terra Group

Club Studio, a fitness club owned by Fitness International LLC, has secured a lease for a 38,400-square-foot space at Grove Central, a mixed-use development located in Miami’s Coconut Grove neighborhood.

Metro Commercial Real Estate Principal Rod Castan represented the developers in the lease signing, while The Shopping Center Group Partner Jim Petrarca brokered the agreement on behalf of Club Studio.

Developed by Terra Group and Grass River Property, Grove Central is slated for completion in the fall of this year. Touzet Studio is the designer behind the project, while RSP Architects and Local Office Landscape Architecture are leading architectural efforts.

The transit-oriented project is located at the intersection of U.S. Route 1 and 27th Avenue, along the Metrorail corridor at the entrance to Coconut Grove. The development will be integrated with the 13-mile Underline linear park, Miami-Dade’s bus system and Miami’s trolley network.

At full build-out, Grove Central will incorporate 170,000 square feet of neighborhood-oriented retail space, a 23-story residential tower with 402 multifamily, workforce and co-living units, as well as a 1,250-space public parking garage.

Experiential tenants gain momentum

Slated to open its location at the property in 2024, Club Studio is set to become part of Grove Central’s lineup of future occupants, which will also include Target, Sprouts Farmers Market, Total Wine and Five Below. The anticipated opening date for the fitness club is 2024.

The upcoming gym will offer boutique fitness classes, a range of free weights, strength and cardio equipment, a designated area for functional training, as well as cryotherapy and recovery services and locker rooms.

A JLL retail report reveals that experiential tenants, such as theaters, fitness centers and entertainment venues experienced substantial growth in foot traffic in 2022. Compared to the previous year, there was a 28.7 percent increase in traffic, with theaters and music venues experiencing the most significant gains at 51.8 percent, followed by fitness venues at 26.5 percent.

The post Club Studio Signs 38 KSF Lease at Miami Mixed-Use appeared first on Commercial Property Executive.

Wells Fargo Center. Image courtesy of Cushman & Wakefield

IT and security management software company Kaseya has signed a 101,000-square-foot lease at Metropolitan Life Insurance Co.’s Wells Fargo Center building in downtown Miami. Cushman & Wakefield brokered the lease agreement on behalf of both parties.

The tenant has already initiated the move-in process at the office tower. This lease marks Kaseya’s fourth office location within metro Miami. Last year, the company signed a 42,872-square-foot lease at 800 Brickell, Gatsby Florida’s Class A property within the financial district.

According to CommercialEdge data, Kaseya joins Wells Fargo Center’s existing tenant roster that comprises Cushman & Wakefield, Apollo Global Management, StomatCare, Moto Capital Group, Deloitte and PwC. The 47-story office tower is LEED Gold & Energy Star certified and features telecommunication systems with fiber optic capabilities, a tenant lounge, a fitness center and on-site dining.

READ ALSO: Office Sector Faces Increased Risk of Distressed Activity

Located at 333 SE 2nd Ave. in downtown Miami’s Enterprise Zone, the 752,488-square-foot office building was completed in 2010. The property is accessible via Interstate 95, the Metro Mover and the Metrorail.

Cushman & Wakefield Executive Directors Ryan Holtzman and Andrew Trench, along with Senior Director Eddie Quinon and Vice Chair Brian Gale represented Metropolitan Life in the lease signing, while Vice Chair Tony Jones acted on behalf of the tenant.

Tenants flock to Class A space

Kaseya’s lease is further evidence of the flight to quality trend persisting in the office market, as businesses actively seek out Class A buildings that provide ample amenities and the assurance of institutional ownership, said Holtzman in a prepared statement.

According to a Cushman & Wakefield report, Miami’s office market experienced stable demand, as evidenced by the positive net absorption of 199,000 square feet of space during the fourth quarter of last year. Marking the best annual performance since 2018, in 2022 Miami’s office market absorbed 601,000 square feet of space.

The same source reveals that the leasing activity in Miami in 2022 amounted to 3.5 million square feet, with 30.2 percent of leases signed within the Brickell submarket. New deals, relocations or expansions within the market accounted for 90 percent of total leasing activity.

The post Metropolitan Life Inks 101 KSF in Miami appeared first on Commercial Property Executive.

(Left to right) David Levinson, Robert Lapidus, Erik Rutter, Marcelo Claure. Image by Gabrielle Wilde Photography, courtesy of L&L Holding Co.

L&L Holding Co. and Oak Row Equities have commenced construction on The Wynwood Plaza, a 1 million-square-foot mixed-use development in Miami. The companies have teamed up with co-investor Claure Group and project partner Shorenstein Properties to develop the campus, which is expected to be completed in 2025.

The groundbreaking comes shortly after the team, assisted by Newmark, received a $215 million construction loan from Bank OZK. Designed by Gensler, The Wynwood Plaza will include a residential building, an office tower and multiple indoor and outdoor retail and dining spaces.

READ ALSO: How Walkability Impacts CRE Markets

The residential component will feature 509 luxury units with floor-to-ceiling windows, flexible layouts and high-end appliances. The residents’ amenity package will comprise two outdoor swimming pools with showers, co-working spaces, a fitness center with dedicated areas for yoga and other exercise classes, a sauna, as well as four activated rooftops with a sports court.

Additionally, there will be an outdoor public plaza, situated on a half-acre lot, that will be the largest in the Wynwood Arts District and one of the largest in the city. James Corner Field Operations is the landscape designer in charge of the plaza, that will feature local vegetation, palm trees and a pedestrian paseo.

Raising the bar, attracting tenants

The 266,000-square-foot Class A office tower will feature private terraces on each floor, indoor and outdoor common-area amenities, a café and bar lounge, conference rooms, a fitness center and 688 parking spots. The 12-story office building has two of its floors already preleased. Claure Group will establish its headquarters on the eighth floor, where it will occupy 25,400 square feet. Renowned law firm Weitz & Luxenberg will open its first Miami office in the building, having committed to 18,000 square feet of space on the second floor. Cushman & Wakefield‘s team led by Vice Chairman Brian Gale, Executive Directors Ryan Holtzman and Andrew Trench, together with Senior Director Edward Quinon are the appointed leasing brokers in charge of the project’s office component, according to CommercialEdge data.

The project will include 6,600 square feet of outdoor dining space and 32,000 square feet of retail space. This component will be situated on a main pedestrian pathway, with spaces featuring full glass windows. The developers will include a curated collection of artworks and installations throughout the development, to be provided in collaboration with the local art community.

Earlier in February, another high-profile mixed-use project was announced in Miami: THE WELL Bay Harbor Islands, a mixed-use development that will include 54 luxury residential units, 98,420 square feet of Class A office space, 11,000 square feet of retail and 6,500 square feet of beverage space, as announced by Terra Group. The developer received $141.8 million in construction financing.

The post L&L Holding, Oak Row Break Ground on 1 MSF Miami Project appeared first on Commercial Property Executive.