Investment Spotlight: Reinvigorating Miami’s Real Estate with Opportunity Zones

The opportunity zone program is a little-known provision of the Tax Cuts and Jobs Act that could be a powerful economic development tool for designated low-income communities. The program provides tax incentives to developers who invest in these areas, including 427 tracts of land in Florida, 68 of which are in Miami-Dade County. From a policy perspective, it was designed to connect new sources of capital to neighborhoods that haven’t realized economic growth in years.

The provision allows unrealized capital gains from prior investments - including other asset classes like stocks and securities - to be rolled into an opportunity fund to defer taxation. An opportunity fund is created in the private sector and is the first community investment tax incentive vehicle introduced since the Clinton Administration. The notion behind opportunity zones is that the longer the investment is held, the lower the tax burden is. So long as 90% of the investment remains in the community, the capital gains tax is reduced by:

• 10% if the investment is held for five years, or

• 15% if the investment is held for seven years

• Fully exempt if the investment is held for at least ten years

This is an innovative advance for investors to redirect their capital to support low-income communities like Little Haiti with underappreciated value. It’s a generous incentive compared to previous economic development programs because there is no government intermediary to approve projects. Now the question of intent remains: will investment spillover enough into these neighborhoods or will this just be a chance for developers and investors to cash in?

Germaine Smith-Baugh, CEO and President of Broward County’s Urban League, worries that despite the potential for growth, with investment comes a pattern of gentrification. As property values, rents, and taxes rise, longtime residents can get priced out. “I’m right here on Sistrunk Boulevard,” an economically distressed neighborhood in Fort Lauderdale, said Smith-Baugh. “Folks are buying left and right. The foreign dollars coming in to purchase here — it’s unreal.”

Smith-Baugh hopes the program doesn’t displace local business and residents, and says the solution is to attract the right kind of impact investors, or people who will work with the neighborhoods to create workforce housing and transit. “We would like to see organizations that can aggregate potential projects and make the residents and businesses feel as though they are part of the process,” she said.

In order to qualify, the real estate asset would need to be built or be converted with improvements totaling at least the purchase price of the property. It must also be an active conduct business, meaning the asset can’t simply be a home that appreciates in value over time.

The opportunity zone program is an attractive vehicle for moving capital of scale into low-income neighborhoods with enough parameters to ensure it is being deployed toward economically productive investments that ultimately create jobs and businesses.

Article by: Katya Demina

Pulte Group to Redevelop Former Golf Course in Oakland Park

National home builder Pulte Group has submitted a smaller development proposal for the former Oak Tree Golf Course, a 139.2 acre site in Oakland Park that they have under contract from Blackwood Partners. The trend of golf courses being repurposed is a familiar story line in South Florida due to high operation and maintenance costs. According to Marty Kiar, a Broward property appraiser, at least three of 45 golf courses in the county have closed in the last five years.

Residents of Oakland Park raised concerns about density and traffic in response to the original 850 home proposal, which Pulte Group downsized to 288 homes and 117 townhouses. The revised plan also preserves 40 acres for green spaces and fitness trails, and includes a buffer zone to separate the community from existing homes near the greenway. The defunct Oak Tree Golf Course stopped operating about ten years ago.  

The development is pending Broward County’s approval for the land-use change and site-plan application, represented by attorney Dennis D. Mele. Prices for the townhouses would start in the $300,000s and range from $400,000 to $600,000 for the one and two-story homes.

Article by: Katya Demina

NBA Star Charlie Villanueva Sells Davie Estate For $2.25 Million

NBA star Charlie Villanueva has sold his home in Davie. The home was listed by Mario Stocco and Marc Brandt of Douglas Elliman Real Estate, has sold to a foreign buyer for $2.25M. Villanueva started his NBA career with the Toronto Raptors in 2005 at the age of 20 before later playin for the Milwaukee Bucks, Detroit Pistons and ending his career with the Dallas Mavericks where he scored a season high 26 points in a loss to the Los Angeles Clippers in 2015.

The home, which is located at 11091 Northstar St., Davie and was completed in 2016, is spread over 7,648 SF and offers 6 bedrooms and 7 bathrooms. The home also features a home office, theater room, elevator, billiard room, sauna, full home generator and security systems. The resort style outdoors is spread over the 35,000 SF lot and features a summer kitchen, pool, spa and water slides. 

Tour Author Jillian Hoffman's Las Olas Mansion Which Just Sold For $3.49 Million

Author Jillian Hoffman has officially sold her Las Olas Isles Mediterranean mansion in Fort Lauderdale for a cool $3.49 million. The 6,200 SF estate spans 5 bedrooms, 5.5 baths and offers a spectacular two-story entry with dual staircases, sweeping floor-to-ceiling windows and stunning waterfront views throughout the property. The home also features a wine room, HD theatre with base shaker seating, 1st floor junior master suite, expansive balcony that extends the full length of the house and beautiful outdoor space with sun-drenched pool, hot tub and loggia ideal for entertaining and relaxing. Jill Johns, Dennis Stevick and Dale Atkins of ONE Sotheby’s International Realty represented both buyer and seller in the transaction. 

Related Group & sbe Announces Construction At 85% Sold Hyde Beach House Passes Halfway

The highly anticipated Hollywood Beach project Hyde Beach House, which is being developed in partnership by The Related Group and sbe, is now over 50% complete and 85% sold. The project is on track for a 2019 completion, and construction is currently on the 24th floor with John Moriarty & Assocaites. Hyde Beach House features 265 resort-condo units and 77 condominium residences, rising 43 floors. The tower was designed by Cohen, Freedman, Encinosa and Associates and features interiors by Brazilian designer Debora Aguiar. 

Hyde Beach House fuses the creative vision of sbe’s entertainment and hospitality offerings including Etaru, a Hyde signature restaurant overlooking the infinity-edge pool and accessible via the Intracoastal offering seasonal cuisine and signature craft cocktails, professionally managed by Gemstone. Other amenities include an elegant double-volume entrance lobby appointed with contemporary furniture and finishes, expansive pool deck with views of the Atlantic Ocean and the Intracoastal Waterway featuring semiprivate cabanas, an infinity-edge pool, an outdoor kitchen and dining area, and an outdoor movie theater with lounge area and fire pit, a sports Club featuring amazing Intracoastal views from an outdoor multi-use sports court (tennis, basketball and indoor racquetball court), state-of-the-art fitness center, health club, an aqua Club situated directly on the Intracoastal Waterway renting Jet Skis, paddle boards, kayaks, windsurfing, and kite surfing, and a private rooftop lounge area exclusive to unit owners with a hot tub, a modern outdoor shower, a lounge area with sunbeds, a dining area, a fire pit, and panoramic water views. 

Hyde Beach House features a curated collection of original works of contemporary art throughout amenity spaces featuring pieces from contemporary artists like Aureliano Parra, Gonzalo Fuenmayor, Felipe Echeverri, and Aldo Chaparro.

Former Designer of Versace Mansion Lists Her Two Ft. Lauderdale Mansions For Nearly $60 Million

Katia Bates, the former Designer of Casa Casuarina, infamously known as the Versace Mansion in South Beach, and her husband Tom, a well-known developer, have listed their two Fort Lauderdale properties for nearly $60 million. The home builder and interior design husband and wife duo are the masterminds behind their company, Innovative Creations. Katia is a second-generation member of the interior design industry who hails from Venice, Italy, and often travels to Europe and around the world looking for the perfect and unique pieces that complement the highly detailed interior design of both homes as well as her other projects. The two homes are listed for $32 million (Bontona) and $27.5 million (Capri), listed by Douglas Elliman agents Christopher Wands, Pietro Belmonte and Chad Carroll. Check out the photo tours below:

524 Isla of Capri Drive

The recently renovated waterfront Fort Lauderdale residence incorporates a modern twist to the same classic Venetian styling that the Versace Mansion is known for. The residence features 5 bedrooms suites, 10.5 baths, and a lavish guest house, each room has its own personality and feel, with customized furnishings, antiques, and top-of-the-line fabrics carefully amassed over the past two decades from all over the world. Located on a Southeast point waterfront lot off the ultra-chic and upscale Las Olas Boulevard, this home’s updated take on classic design truly typifies the Venetian-born designer’s personal style. Surrounded by breathtaking views of the New River and the Intracoastal and featuring over 400 feet of waterfront space, the residence provides the atmosphere of being on a Venetian waterway. The home offers a cohesion of indoor outdoor living space with extensive terraces and patios connected to each other. The formal gardens are lined with dozens of elegant palm trees. For entertainment a large marble and stone gazebo imported from Italy, a pool, a Jacuzzi, a cabana bath in mosaic glass tiles and a deck of Jerusalem stone and travertine marble. 524 Isla of Capri Drive is asking $27.5 million.

529 Bontona Avenue

Bontona is currently being developed on the site of the former home of a Miami Dolphin’s owner who recently passed last month, Wayne Huizenga. The home offers a gorgeous stone sculpture of a Dolphin that was on the property and they kept it to keep the history of the house. The new construction, waterfront mansion offers a club room, dining room, kitchen and breakfast area, gym, laundry room, VIP suite, office, and library. Finshes include bookmatch slab marble floor, Brazilian marble, St. Moritz with bookmatch fireplace. Outdoors offers an expansive 25,000 SF or more of stone decks, pool, private docks and driveways including balconies and terraces in either marble or exotic stones. 529 Bontona Avenue is currently asking $32 million. 

Imagery by Daniel Petroni Photography 

Sales Eclipse $100 Million at Terra's Botaniko Weston Luxury Home Community Designed By Chad Oppenheim and Roney J. Mateu

Sales have eclipsed $100 million at Terra’s currently under construction project Botaniko Weston, a 125 single-family home residential community. Set on 121 acres bordering the Florida Everglades, Botaniko marks the first luxury community to be developed in the exclusive suburban West Broward County neighborhood of Weston in over a decade. Approximately 85% of the development’s first phase has been pre-sold, with about 40 homes currently under construction and set to begin delivering early this year (2018). Terra has enlisted an award-winning team to implement its design vision for Botaniko. Architects Chad Oppenheim and Roney J. Mateu, both FAIA fellows, have collaborated to create home designs inspired by the South Florida environment and outdoor lifestyle that can be tailored to residents’ tastes. The one- and two-story homes will feature interiors by V Starr, the design firm led by tennis champ Venus Williams. Outside, Landscape Design Workshop has created an environment of lush green spaces that are as sophisticated and beautiful as they are functional. More than 80 percent of the development’s homes will feature lakefront views, with unique features including expansive private pools, covered patios, and outdoor summer kitchens fitted with grills, ice makers, sinks and refrigerators. Residents will enjoy full-time concierge services, as well as the added measure of security provided by a gate house that is staffed 24-hours a day with security cameras and state-of-the-art closed-circuit television. Homes at Botaniko range from 4 to 7 bedrooms and 3,500 SF to 9,700 SF in size, while pricing ranges between $1.5 million and $3 million. Exclusive sales and marketing for the project are being co-managed by Terra Realty and Compass Development. 

“Botaniko offers buyers a rare combination of cutting-edge contemporary design and the quality of life benefits that come from living in a tight-knit community like Weston,” says David Martin, president of Terra. “Unlike anything Broward has seen before, Botaniko will feature design-driven homes surrounded by luxurious amenities and natural landscapes – all within close proximity to some of the country’s best schools, parks, shopping and dining destinations. As Weston’s first newly-developed master-planned community in years, we’re creating new opportunities for families to call one of South Florida’s most desirable neighborhoods home.”

“Our buyer demographics at Botaniko are diverse,” says Andres Marquez, director of sales at Terra Realty. “On the international front, we’re seeing buyers from Latin America and Canada who are looking for the kind of sophisticated, family-oriented lifestyle that Weston offers.”

“In addition to an influx of local South Florida families, we are seeing a lot of interest from domestic buyers in the New England and New York areas,” adds Philip Freedman, managing director of Compass Development. “They’re attracted by Florida’s tax benefits as well as Botaniko’s inviting price points – which are about a third the price of homes of this size and caliber in the Northeast.

Weston is ranked number 8 on Money Magazine’s list of Top 10 Best Places to Live in America, offering residents access to more than 100 acres of meticulously maintained public parks and recreational facilities, A-rated schools, a wide variety of year-round cultural and community events, and a walkable town center featuring high-end shopping, dining and nightlife. Downtown Fort Lauderdale is less than 20 minutes away; Miami is a 30-minute drive south.

2000 Ocean Designed By Enrique Norten To Break Ground In Early 2018 In Hallandale Beach

2000 Ocean is gearing up to break ground in Hallandale Beach after launching sales in November 2017. The beachfront condo tower is designed by Enrique Norten's TEN Arquitectos and will rise 40 stories, providing spectacular views of the Atlantic Ocean and Intracoastal Waterway. The boutique condo tower features 64 residences, the smallest being a 2,913 SF half floor 3 bedroom and ranging up to 5,832 SF full floor 5 bedroom penthouse residences. Pricing starts at $2.8 million. 2000 Ocean also features a duplex sky vill which comes complete with a private pool deck. Residences are designed by Minotti and feature expansive flow through floor plans, 10' ceilings, private elevator landings, floor-to-ceiling windows, custom kitchens by Minotti Cucine, Monterrey Marble flooring throughout including terraces, custom stone master bath with Agape floating bathtubs. Services and amenities include two swimming pools with expansive sunrise and sunset views, direct beach access with private beach, private arial and valet entrance, 24-hour valet and concierge, an oceanfront library with garden views, an oceanside lounge and juice bar, an indoor theater, entertainment room, fitness center and a freestanding spa pavilion complete with treatment rooms, Hammam (steam bath), ice room and yoga room. The lushly landscaped grounds feature curated gardens by Landscape Architect Sasaki Associates. The project is being developed by KAR Properties and Douglas Elliman Development Marketing are exclusively overseeing sales and marketing. 2000 Ocean is expected to be delivered in 2020. 

Enjoy the video overview and renderings below:

Auberge Beach Residences & Spa Officially Tops Off in Fort Lauderdale

The Related Group, Fortune International Group, The Fairwinds Group and Moss celebrated the topping out of Auberge Beach Residences & Spa Fort Lauderdale, the two-tower luxury development which is one of the highest-selling condos in Fort Lauderdale with 2 record breaking penthouse sales at $8.9 million and $9.5 million. Construction of the property’s 23-story South Tower just reached full height, following the top off of the 17-story North Tower in July 2017. 

“We are excited to deliver the most attractive and only on-the-sand luxury residential project in all of Fort Lauderdale,” said Patrick Campbell, Vice President at The Related Group. “Auberge has set a new standard of luxury living with its coastal elegant design, unrivaled list of amenities, luxury services and enviable beachfront access.” 

“Our family is delighted to bring to Fort Lauderdale a project of unprecedented elegance casual sophistication. We look forward to welcoming the community back to our restaurants and signature spa in late fall” said Andy Mitchell, CEO and President of The Fairwinds Group.

“We are thrilled to be a part of this project, which exemplifies modern beachfront luxury,” said Scott Desharnais, executive vice president of Moss. “We are proud that The Related Group, Fortune International Group and The Fairwinds Group have trusted the quality of our work to bring this concept to life.”

Auberge Beach Residences & Spa features 171 flow-through condominium residences spread over two towers designed by Nichols Brosch Wurst Wolfe & Associates with interiors by Meyer Davis Design Studio. Located at 2200 N. Ocean Boulevard, the development sits directly on the sand with over 450 linear feet of oceanfront. Units range from 1,500 SF one-bedroom to 5,000 SF five bedroom floor plans designed for multigenerational living which all feature private elevator access, gourmet kitchens with stone countertops, sunrise and sunset terraces, and floor-to-ceiling glass for unobstructed ocean views. Amenities include five-star, resort style staff and services; 2 beachfront swimming pools, full-service spa, 2 restaurants, multimedia facilities, resident's lounge club room, billiards, golf simulator and a state-of-the-art fitness center.

Alco International Group Breaks Ground On Adagio Fort Lauderdale At 30% Sold

Alco International Group has broken ground on Adagio Fort Lauderdale located at 435 Bayshore Drive. The waterfront building is designed by GS4 Studios with interiors by Steven G and will rise 10 stories on the Intracoastal. The project is reportedly 30% sold and features 31 residences which range from 2 to 4 bedroom layouts. Residences come complete with 10' ceilings, kitchens featuring quartz countertops, gas Gaggenau cooktops, and Scavolini Italian cabinetry, and outdoor space complete with summer kitchens. Amenities include a private marina with 53' boat slips, a fitness center, media room, sunset pool and a rooftop pool with cabanas providing panoramic views of the Intracoastal, Atlantic Ocean and Fort Lauderdale. Units start at $1.8 million and sales are being exclusively marketed by ONE Sotheby's International Realty. Adagio Fort Lauderdale is expected to be delivered Q2 2019.