Related Companies To Acquire The Phillips Point Office Complex In West Palm Beach

The New York-based Related Companies, led by Stephen Ross, is under contract to acquire the Phillips Point office complex in West Palm Beach for roughly $282 million. The seller, AEW Capital Management, acquired the property for $245 million in 2015. Related Companies will oversee asset management and leasing.

Phillips Point is located at 777 South Flagler Drive, at the foot of the Royal Palm Bridge, and was developed in 1985. The twin-tower Class A office complex has a tenant list that includes top financial firms Goldman Sachs and Morgan Stanley as well as law firms Greenberg Traurig, Gunster and Akerman. The transaction comes at a time when a number of financial firms are moving from high tax northern states to Florida.

Stephen Ross and Related Companies are no stranger to West Palm Beach, having developed Rosemary Square, previously called CityPlace, a mixed-use project with dining, shopping and residential components. Related Companies is also planning to break ground on One Flagler, a 270,000 square foot, 25-story office tower in on Flagler Drive and OkeeChobee Blvd. in West Palm Beach. Stephen Ross also owns the Miami Dolphins.

Construction On Brightline Rail Connecting Miami To Orlando Passes Halfway Point

Construction on Brightline’s new rail line connecting Miami to Orlando has passed the halfway point. Construction broke ground in April 2019 and is both on schedule and within budget to date. Brightline anticipates that they will be launching service from Miami to Orlando in Q4 2022. Construction on the line between West Palm Beach and Cocoa is 38% complete and construction between Cocoa and Orlando International Airport is over 57% complete.

Brightline expects to resume service between Miami and West Palm Beach in Q3 2021 along with the addition of an Aventura station. In Q1 2022 Brightline will add additional stations in PortMiami and Boca Raton with the extension to Orlando expected to commence service Q4 2022. Brightline plans to open the Station at Disney Springs in Q4 2023.

Magellan Development Group Sells The LEED Certified Midtown Five Multifamily For $154.35 Million

The Chicago-based Magellan Development Group has sold the Midtown Five multifamily asset that they developed in Midtown Miami for $154.35 million, roughly $358,875 per unit. The buyer was an entity tied to the New York-based Sterling Equities, led by the Wilpon and Katz families. The LEED-certified Midtown Five broke ground in 2015 and was completed in 2017. The multifamily building features 400 apartment units on a 1.6-acre site. Units range from studio to three-bedroom floor plans and 540 to 1,500 square feet with pricing starting from $1,953 per month for a studio. In total Midtown Five features 701,056 of total development spread over 24-stories. Amenities include a pool, spa, fitness center, yoga lawn, meditation garden, dog run, business center, and game room. Magellan Development Group acquired the site in 2014 for $14 million.

Worth Avenue Tiffany & Co. Building Sells For $26.4 Million

A joint venture led by an entity tied to Fortress Investment Group has sold 259 Worth Avenue in Palm Beach, anchored by luxury jeweler Tiffany & Co., for $26.4 million to Motcomb Estates, a London-based real estate investment firm. The selling price breaks down to $1,612 PSF. The selling joint venture acquired the property for $20 million in 2018 and is made up of the New York-based Fortress Investment Group, Kean Development Co. and Hyde Retail Partners.

The joint venture gained approvals to build a 5-bedroom, 13,000 +/- square foot penthouse atop the property which would a private rooftop with infinity edge swimming pool, dining area and fire pit, as well as easy access to fine dining, world class fashion and art, and is a short stroll away from the beach. Kean Development Company was leading the renovation and Douglas Elliman listed the pre-construction penthouse for $17.5 million.

259 Worth Avenue was first developed in 1950. The retail building spans 16,374 square feet and is located on a .22-acre site on Worth Avenue, an upscale shopping and dining destrict spanning four blocks in Palm Beach.

Blackstone Group Signs Long-Term Lease At MiamiCentral For South Florida Expansion

Blackstone Group has signed a long-term lease at 2 MiamiCentral in Downtown Miami as the investment group moves forward with their South Florida expansion which was announced in October 2020. Blackstone will occupy 41,000 square feet over two floors in the recently completed 2 MiamiCentral where the group plans to have over 200 employees who will be focused on tech. The lease was overseen by Alan Klebar and Ryan Nunes of JLL, who represented Blackstone, as well as Danet Linares and Andres del Corral of Blanca Commercial Real Estate, who represented the landlord. The newly signed lease brings 2 MiamiCentral, which is owned by Shorenstein Properties, to 98% occupied with other tenants included Ernst & Young, Carlton Fields and New Fortress Energy. Asking rates at 2 and 3 MiamiCentral are $40 NNN.

“Miami is a vibrant city with a pipeline of top technology talent available from best in class university programs, as well as an experienced workforce that will enable us to diversify our talent pool and grow our technology team. 2 MiamiCentral’s prime downtown location and access to mass transit make it an ideal office location,” said John Stecher, Blackstone’s Chief Technology Officer.

MiamiCentral was developed by Florida East Coast Industries and completed in 2018. The 2 MiamiCentral and 3 MiamiCentral office buildings have highly efficient, open rectangular floor plates, floor to ceiling windows boasting unobstructed views, market leading amenities, and direct access to local and multi-city mass transit. The 17-story 2 MiamiCentral is located at 700 NW 1st Avenue and features 190,000 square feet of Class A office space with a 288-stall valet parking garage that sit adjacent to Miami Central Station, the transportation hub serving four rail lines including the Brightline. Combined 2 and 3 MiamiCentral feature 320,000 square feet of Class A office-space and were acquired by Shorenstein Properties for more than $159 million in 2019.

The Shops At Sunset Place In South Miami Sells For $65.5 Million To Alex Vadia's Midtown Equities

Midtown Equities, led by Alex Vadia, has acquired The Shops At Sunset Place for $65.5 million from FRIT Shops at Sunset Place, a joint venture between Federal Realty Investment Trust (NYSE: FRT), Grass River Property and The Comras Company. The 9.7-acre, 524,180 square foot shopping center, which is located at 5701 SW 72nd St., Sunset Drive in South Miami, last traded for $111.5 million in 2015, representing a significant loss for the selling joint venture. The shopping center’s current occupancy is reportedly just below 60%, a significant gap from the reported 83% in March 2020.

The Shops at Sunset Place was initially developed in 1999 and plans have been approved for a major renovation which would include the addition of 414 rental apartments, 182 hotel rooms, reducing the retail component to 440,148 square feet and adding 32,840 square feet of office space. The impact of COVID-19 stalled the development plans when Federal Realty Investment Trust was hit with a $50.7 million net impairment charge in Q3 2020 when its $60.6 million non-recourse CMBS loan matured and was declared in default by the lender.

Kushner Companies Gearing Up To Break Ground On First Miami Projects

Kushner Companies is gearing up to break ground on their first two Miami projects located in Wynwood and Edgewater. The Wynwood project, known as Wynwood 27, will break ground first in Q1 2021 at 127 NW 27th St. and 129 NW 26th St. Wynwood 27 will feature 152-units, 50,000 SF of office space and 34,000 SF of retail space. The project will be followed by Wynwood 28 which will feature 40 residential units, 44,637 SF of office space and 15,800 SF of retail space. Kushner Companies acquired the sites for $32 million in July 2019 in partnership with Block Capital. In March 2020 Kushner Companies obtained $17.55 million in financing for the properties provided by CIT Bank.

The Wynwood project will be followed by the first tower at 1900 Biscayne, a 36-story multifamily building which will feature 393 apartment units. Kushner Companies plans to build 1,100 units over three towers in three phases on the site which includes the adjacent 2000 Biscayne with an estimated total development cost of $550 million. Kushner Companies acquired the site, which is located in an opportunity zone, in March 2019 from Enrique Manhard. It was previously owned by Verzasca Group who had planned a 36-story condo for the site, later changing to a rental concept before selling to Manhard for $13.1 million in 2018.

JP Morgan Chase Bank Office Building In Weston Sells For $8.9 Million

The JP Morgan Chase Bank office building in Weston, FL, has sold for $8.9 million. The 26,782-rentable-square-foot office building, anchored by JP Morgan Chase Bank, is located at 1040 Weston Road in the high-barrier-to-entry submarket that generates significant buyer interest. HRE/SEFIRA Weston Office, LLC, was the seller, and Shaked 21, LLC, was the buyer in the transaction which was overseen by Avison Young’s Florida Capital Markets Group led by principals David Duckworth; John K. Crotty, CCIM; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Vice President Brian C. de la Fé; and Associates Emily Brais and Berkley Bloodworth.

“The Chase Bank building is 100% occupied and, with medical tenants comprising more than 60% of the tenancy, garnered notable investor interest in a market where buyers are seeking stable, recession-proof assets,” said Duckworth. “Ultimately, our team secured the right buyer for the sale, allowing our client to realize a positive return on investment during a pandemic after a three-year hold.”

Avison Young In 2017, the Avison Young team facilitated the sale of the same building to HRE/SEFIRA Weston Office, LLC, as part of a two-building portfolio spanning approximately 63,000 square feet for $13 million. The HRE/SEFIRA partnership, led by Highline Real Estate Capital Principal David Moret, completed a series of cosmetic improvements to the Chase Bank building which enabled ownership to increase occupancy from 84% to 100% and increase rental rates to generate a 52% gain in the price within three years.

“Overall, sales activity has picked up since the end of the third quarter and into the fourth, as buyers have more clarity on where the market is going and are eager to place capital,” said Crotty. “The buyer in this deal acquired a property that has performed extremely well throughout the pandemic and is poised to continue to do so as we transition into the new normal.”

One of the most desirable, high-barrier-to-entry suburban office locations in Broward County, Weston is part of the Southwest Broward submarket, the only submarket in the county to report positive net absorption in third-quarter 2020.

Mondrian South Beach Celebrates Reopening Revealing $20 Million Renovation And Baia Beach Club

The Mondrian South Beach has reopened, revealing its $20 million renovation and Baia Beach Club. The 220-room hotel, which is located at 1100 West Ave. in Miami Beach, recently completed a complete renovation including lobby, pool area, gym, spa, restaurant, event space, common areas and guest rooms. The renovation was designed by Peter Oleck and Danny Cubes of OS Design Group. The Mondrian South Beach also revealed the Baia Beach Club, a members-only club located within the hotel which is overseen by LDV Hospitality. Baia Beach Club offers a new dining concept, multiple areas for dining and entertainment throughout, seaside cabanas and pavilions, boat dockage, access to a full-service wellness facility, a fitness center, curated programming, and exclusive member-only events.

“Since partnering with Russell Galbut, I knew this property deserved a complete makeover. As the audience of the hotel grows up, so should the property. Whether visiting as a Baia Beach Club member, dining at our bayfront restaurant or staying in one of our new guest rooms, Mondrian South Beach will be a new and exciting experience for all,” said Mondrian South Beach co-owner Michael Liebowitz, CEO and founder of Harbor Group Consulting.

The Mondrian South Beach was originally designed by Marcel Wanders and first opened in 2008. In December 2019 Michael Liebowitz acquired 50% of co-owner Russell Galbut’s stake in the hotel for an undisclosed amount.

Mondrian South Beach is one of five hotels worldwide carrying the Mondrian name, which as launched in 1996 by SBE. Other Mondrian hotels currently include Los Angeles, New York, Doha and Seoul, with future locations opening in Bordeaux and Cannes in 2021. In November 2020 Sam Nazarian’s sold the remainder of his 50% stake in SBE Entertainment Group to the Paris-based Accor, who had previously acquired an initial 50% stake in the company in 2018. The acquisition included a $300 million investment from Accor who will take ownership of all hotel operations including Mondrian, SLS and Delano hotel brands. Nazarian will focus on food and beverage operations through SBE’s Disruptive Restaurant Group.

Miami Worldcenter Gears Up To Break Ground On Two-Story Mixed-Use Building

Miami Worldcenter Associates are gearing up to break ground on a two story mixed-use building around a pedestrian promenade in Miami Worldcenter after city records show that the developers filed for a construction permit on December 1st. Miami Worldcenter plans to have one level of retail on the ground floor and one level of office space on the second floor, totaling 41,164 sq.ft. between the two stories. Construction costs of the new building are estimated to be $8.5 million. Other new construction includes the 7th Street Promenade which is now complete. The 7th Street Promenade is an open-air shopping walkway inspired by European-style and themes of Santa Monica and Lincoln Road. The new building will line the 7th Street Promenade with a large public plaza nearby for outdoor event space.

The Miami Worldcenter master plan, delivering in phases, features an array of residential, commercial and hospitality uses. These include approximately 300,000 square feet of retail, restaurant and entertainment space; the 60-story Paramount Miami Worldcenter condominium tower; Caoba, a 444-unit apartment tower that opened in 2019; a 348-room CitizenM hotel which is now under construction; and Bezel, a 434-unit rental tower by ZOM Living which is also underway. In addition, Hines is preparing to build a new tower that will comprise up to 500,000 square feet of Class A office space and MDM Group is planning a 1,700-room Marriott Marquis hotel and adjacent 600,000 square foot expo center.

Miami Worldcenter occupies 10 city blocks within walking distance of Museum Park, home to Perez Art Museum Miami and the Frost Museum of Science; AmericanAirlines Arena; the Adrienne Arsht Performing Arts Center; and Miami-Dade College’s Downtown Miami campus. It is also adjacent to Virgin Trains’ MiamiCentral station, which will soon offer direct train service to Fort Lauderdale, West Palm Beach and Orlando, together with access to TriRail, the Metromover and the Metrorail, making Miami Worldcenter the largest and most-connected transit-oriented development in Florida.