Soffers Aim To Expand Fontainbleau Aviation & Turnberrry Airport Holdings at Opa-Locka Executive Airport

The Soffer family is seeking a $5 million bond from Miami-Dade County’s Economic Development and Tourism Committee for expansion of Turnberry Airport Holdings at Opa-Locka Executive Airport. The bond would be used for a $28 million project that would renovate public infrastructure, including a 30,000-square-foot hanger and 57,000-square-foot executive and maintenance office for Fontainebleau Aviation. According to the South Florida Business Journal, the billionaire family currently leases 41.4 acres on site. In order to benefit from the taxpayer incentives, Turnberry would need to meet certain job creation requirements. The project is currently estimated to create 120 jobs and would increase the company’s revenue to $26 million in 2020 if the expansion is completed. 

Article by Katya Demina | Images by Turnberry Media & Fontainbleau Aviation

NP International Secures $158.4 Million In Construction Financing & Gears Up To Break Ground on Gables Station

NP International has locked down a $158.4 million construction loan and are gearing up to break ground on Gables Station, a transit-oriented mixed-use project with 120,000 SF of retail space, 500 residential units and 66 hotel units. Developer Brent Reynolds plans to break ground before the end of Q1 2018. The financing was provided by Bank of the Ozarks and comes on the heels of Life Time Fitness signing a lease for 90K SF of retail space at Gables Station. NP International will also provide funding to develop a portion of the proposed Underline Park. NP International acquired the land adjacent to Merrick Park and Miami's Metrorail in Coral Gables at 251 South Dixie Highway in 2016 for $60 million. Construction is expected to be completed by Q3 2020. 

Miami Worldcenter Locks Down $43 Million Construction Loan For Retail Component

Miami Worldcenter Associates led by Art Falcone and Nitin Motwani have just closed on a $43 million construction loan for the retail component of the $2 billion Miami Worldcenter mixed-use mega-project in the Park West neighborhood of Downtown Miami. The loan was financed by Fifth Third Bank and brings the current total financing for the project to roughly $500 million including a $33 million loan from Bank of the Ozarks in October and the issuance of $74 million of private placement bonds issued by the community development district to fund infrastructure upgrades. The $43 million loan by Fifth Third Bank will be used for the development of 53,000 SF of retail space as well as a 1,100-space parking garage on NE 2nd Avenue between 8th and 10th streets. The total retail component will features 360,000 SF of high-street retail which Miami Worldcenter Associates, Taubman Centers and The Forbes Company are currently leasing. Miami Worldcenter is being developed by Miami Worldcenter Associates, Taubman Centers, The Forbes Company, and MDM Group with the master plan designed by Elkus Manfredi Architects. The project includes the PARAMOUNT Miami Worldcenter condo tower being developed by Paramount Ventures led by Dan Kodsi, in addition to a 1,700-key Marriott Marquis Miami Worldcenter Hotel & Expo as well as a 45-story office tower being developed by Hines.  

MEC Development Associates & B Developments Locks Down Construction Financing For Casa Grove, To Break Ground In January

MEC Development Associates and B Developments plan to break ground on Casa Grove in January. The developers who are developing the project as a joint venture recently locked down a $27 million construction loan for the approved luxury apartment tower from Israeli lender Bank Hapoalim (BHI). Casa Grove which will bring 130 rental apartment units to 2900 Southwest 28 Lane. B Developments purchased the 1-acre property in 2015 for $6.1 million. The project is being designed by Itec Design and will rise 12-stories, featuring 200,000 SF of total development including 12,000 SF of commercial space. Units will start at 635 SF and range up to 1,400 SF and amenities will include a 5th floor amenity deck and direct access to the Underline. The transit oriented project is located just a short distance from the Coconut Grove Metrorail Station, offering residents immediate access to the Metrorail. The project will help kick-off the Underline, the new landscaped recreational public space under the metro rail. Public space from Casa Grove will feed into the Underline, providing a seamless connection to the new initiative. Casa Grove is expected to be completed in 2019.

PROFILEmiami first broke then news covering the announcement of Casa Grove in October 2016.

Compass Raises $100 Million In New Round of Funding Amid Questions By Skeptics

Compass is certainly on a roll after locking in $100 million of additional financing via their new funding round, bringing their valuation to $1.8 billion having raised $325 million from investors to date (November 8, 2017). The latest round of funding was provided by Fidelity Investments, IVP and Welling Management. Since being founded in 2013, Compass has grown to over 2,000 agents in 10 different markets. They plan to add an additional 10 markets by 2020. Compass has a reputation of breaking into new markets quite aggressively, poaching top agents from top firms with huge salary and commission split agreements. While many top firms initially and key players including Douglas Elliman's Howard Lorber expected Compass to fold within years, they have continued to grow.  

Compass reported $180 million in revenue last year (2016) and expects to generate $350 million this year (2017). Revenue includes all income including what Compass would have to pay out to their agents. While typically a brokerage's valuation is based on off multiples of the brokerage's earnings, Compass holds that they are a tech firm, leading to even higher valuations. Real estate brokerage can be an extremely low margin business. For example, Douglas Elliman reported $190.4 million in revenue by the end of Q3 2017 year-over-year which only produces a profit of $4.2 million. That is down from $184.5 million reported at the end of Q3 2016 which produced $8.7 million in 2016. Reology, which owns Coldwell Banker, Century 21 and Sotheby's International, reports a revenue of $5.81 billion but as a publicly traded company, their entire valuation is merely twice that of Compass' with a total equity of $2.469 billion. 

Additionally many have wondered and continue to wonder, what technology does Compass have that no one else has? Compass has produced a new system to produce CMA's and comps as well as a highly-efficient, IDX style a website that allows you to search all public real estate listings across all brokerages and markets that Compass covers. Critics hold that both CMA's and Comps need actual human input and assessment to be accurate. Those in support of Compass claim that the technology is so great that you will not need agents because the internet will take care of everything. How can you run a home inspection of a 30 year old home without being on site then close out a final permit that was left open to make sure that deal closes? What attorneys will be used to hash out each deal? Part of the real estate sales experience is having a trusted broker helping a buyer or seller with what is probably one of the largest financial transactions of their entire life, it cannot easily just be "automized" with VC money. There is so much more that goes into real estate deals than those not in the industry possibly understand. Compass is definitely onto something when it comes to the home search and connection with an agent, but time remains to tell how automated anyone can make the actual buying and selling process. 

A statement by Rob Lehman, Compass' Chief Revenue Officer, to the tune of “every company that’s going to succeed in industries in the future is going to have to be a hybrid. We are both a tech company and a brokerage and we let the market ascribe the value,” essentially throws it out there that the company is not a true tech company and a traditional brokerage that claims their technology is worth more than other brokerages, hence the extreme valuations. While investments into technology do not seem to be making waves throughout the industry, Compass' investments into branding and agent poaching are quite visible.

Where Compass has gone, they have gone with success, including Miami, New York City, Los Angeles, San Francisco, Fort Lauderdale, Palm Beach, the Hamptons, Aspen, Boston, and Washington D.C. They have expanded into 10 different markets and recruited over 2,000 agents who all are backed by some of the industries' cleanest and best branding. In the markets they have expanded to, Compass has acquired some of the finest listings and top agents including Leonard Steinberg, Rick Teed and Butch Haze. For more and more millennials and younger real estate buyers and renters, Compass is becoming a powerhouse go-to name amongst brokerages and websites to browse real estate.  

Additionally, that would lead one to wonder, when will the investors require Compass to show a profit? Will they need to raise more money in the future, if so will they be able to justify an even larger valuation? Compass claims that it is backed by "patient capital," and the firm is expected to go IPO at one point, but how long will Compass test their patience before investors start asking to see a return? Will it even be possible? Bigger companies that are already successful in all the markets Compass is gunning for are valued at less than Compass. Everyone is focusing on will Compass fail, but maybe the question that should be asked, is did Compass fail or mislead their investors, or have they just perfected and modernized the hyper-competitive real estate brokerage industry? 

Ability by Acierto Closes on $14 Million Construction Loan For Bijou Bay Harbor

Ability by Acierto just closed on a $14 million of construction loan for Bijou Bay Harbor, their new luxury condominium development on Bay Harbor Islands. The Miami-based LV Lending is providing the financing. Ability by Acierto is led by Juan Carlos Gonzalez and the developer broke ground on the 41-unit building located at 9521 East Bay Harbor Drive in December 2016. Ability by Acierto recently hired Pordes Residential to take over sales of the project where units range from 900 SF to 2,100 SF and pricing ranges from the $600,000 to just under $2 million for each of five penthouses. The developer also recently reduced deposit requirements from 50% to 30%. Bijou Bay Harbor will be a 9-story building and was designed by Revuelta Architecture International with interiors by Adriana Hoyos. Amenities will include a poolside lounge and bar, rooftop lounge, gym, outdoor entertainment area with fire pit and pool as well as bay access for boating and water sport. 

Estate Investments Group Secures $52 Million in Construction Financing For Soleste Blue Lagoon

Estate Investments Group (EIG), one of South Florida’s most prolific multifamily developers, announced today that it has secured $52 million in construction financing for a new rental community in the Blue Lagoon neighborhood of West Miami (November 6, 2017). The loan was underwritten by Florida Community Bank (FCB), and will fund the development of the 330-unit Soleste Blue Lagoon rental community, located at 5375 NW 7 Street in Miami. Soleste Blue Lagoon is the latest EIG-developed property financed through FCB, with prior construction loans funding the development of Soleste Club Prado and Soleste West Gables II. The construction loan is the latest in a series of recent high-profile milestones from EIG, including the recent approval for the development of the 200-unit Soleste Bay Village, in The Village of Palmetto Bay; the approval of the 338 unit Soleste Twenty2 in West Miami, and the $59 million sale of the recently completed Soleste West Gables II, also in West Miami.

“Our unmatched location, designs and amenity offerings are leading each of our properties to consistently over-perform. We’re confident this positive trend will continue in the long-term, especially as the region’s growing base of well-educated young professionals drives demand for urban rental communities to new heights,” said Robert Suris, Founder and Principal of EIG. “We’re proud to partner with such an established financial institution like Florida Community Bank and look forward to working together to raise the bar for rental living.”

Soleste Blue Lagoon will feature units that come in studio, 1, 2, and 3-bedroom floor-plans and range from 400 SF to 1,100 SF. Residences feature sleek modern kitchens with custom cabinets, quartz countertops and designer lighting, full-size washer and dryers as well as impact resistant glass. The property will also include sprawling terraces offering dramatic views of Blue Lagoon lake. Amenities include a lake front resort-style pool, sun deck with private cabanas, and private beach with sand volleyball court, resident lounge, state-of-the-art health and fitness club, and a rooftop serenity garden as well as water-based activities in the lake. Rental prices will start in the low $1,300s. Construction on Soleste Blue Lagoon is expected to be completed by summer 2019.

Construction Update: Metronomic's Crowdfunded Plaza Celia Breaks Ground in Little Havana

Plaza Celia, a new boutique mixed-use apartment building in Little Havana named after the late Cuban-born singer Celia Cruz, has officially broken ground. Plaza Celia will rise 4-stories and will feature 16 rental apartment rental units targeted at students and the local workforce with ground-floor retail. Units will come in 1 and 2-bedroom floor-plans and will range in size from 700 SF to 905 SF. Plaza Celia is located at 2640 SW 12th Street and is being developed by Metronomic, Inc. Metronomic, Inc. has been making waves in recent years with their business model of crowdfunding projects. Currently, Metronomic has 2 projects under development via crowdfunding, GroveHaus in Coconut Grove and Plaza Celia. Essentially, Metronomic identifies a development and goes under-contract for the land while developing the project. They then advertise the project on their crowdfunding platform to raise commitments for the crowdfunded financing from individual investors. Once they reach their dollar goal of crowdfunded investment, Metronomic simultaneously closes on the land, crowdfunded financing and additional financing previously committed by private lenders. In 2013 the Securities and Exchange Commission opened the prospects of crowdfunding to real estate investors via the JOBS Act. The JOBS Act stipulates that developers can solicit funds from the public, provided that the investors are accredited, meaning that they have a newt worth over $1 million or make in excess of $200,000 annually. Construction on Plaza Celia is expected to wrap up in Q4 2018. 

HES Group Secures Loan $9.5 Million Loan For Triptych Hotel in Midtown

HES Group has secured a $9.5 million loan for Triptych Hotel, in Midtown Miami, adjacent to Miami Design District. The loan was provided by a Panama-based lender 21 Brands S.A. Triptych Hotel was approved earlier this year, after HES Group sold JQ Group shares in the project for undisclosed terms. Previously it was reported that HES Group was looking for $120 million in construciton financing. The plans feature 20-story mixed-use tower with 252-hotel rooms, 38,000 SF of retail, 41,000 SF of office space, and 300 parking spots. The hotel will be operated as part of Hilton Worldwide's Curio Collection. HES Group, which is managed by Francisco Arocha, purchased the site for $12.25 million in 2014 under the affiliate-entity Aventura Hotel Properties, LLC. HES Group also owns and manages Aloft West Palm Beach and Hotel Indigo in Brickell. 

JDS Development Group Secures $62.5 Million Construction Loan For Monad Terrace, To Go Vertical in Early 2018

JDS Development Group has secured a $62.5 million construction loan For Monad Terrace in South Beach. The developer has already broken-ground and is completing foundation work, they expect to go vertical in March 2018. According to Michael Stern of JDS Development, the $62.5 million of financing breaks down to a $20 million senior loan from Bank of the Ozarks and $42.5 million of mezzanine financing from VanBarton Group. The Real Deal reported in June 2017 that Delaware-based lender EO Monad Terrace sued Monad Terrace Property Owner LLC for failing to pay a $45.8 million mortgage principal on the property located at 1300 Monad Terrace. The suit was reportedly dismissed as JDS Development closed on the new financing.

Monad Terrace is designed by Pritzker Prize-winning architect Jean Nouvel in collaboration with Kobi Karp. The project will feature 59 residences that range from 2 to 5 bedrooms and 2,000 SF to close to 14,000 SF. Pricing starts at $1.7 million and sales are being handled by Douglas Elliman. Monad Terrace will also feature an infinity edge waterfront pool and hot-tub located directly on Biscayne Bay with lush landscaping throughout by Jean Nouvel. The design of the development keeps climate change and rising sea levels in mind. Amenities include a sun deck with pool and hot tub, 24 hour concierge, valet parking, pool service, cafe and juice bar, resident's lounge, waterspouts storage and bicycles and paddle boards for the residents. Completion is expected in 2019.