Owner of Bâoli, Massa Investment Group, Acquires Miami Beach's Paris Theater For $13 Million

Massa Investment Group has acquired Miami Beach’s Paris Theater, located at 550 Washington Ave., for $13 million; $508 per square foot. The Art Deco building, which was first built in 1935, spans 25,589 SF. The building was designed by architect Henry Hohauser and has operated over time as a cinema, adult movie house, nightclub and film studio. U2, Madonna, Jennifer Lopez, Christina Aguilera and Ricky Martin have all shot music videos at the theater. Big Time Productions was the seller after acquiring the Paris Theater for $975,000 in 1992 and first listing the property for $23 million in 2015. The transaction was financed with a $15.2 million loan provided by IberiaBank. Massa Investment Group is led by Mathieu Massa who is also the owner of Mr. Hospitality, the firm behind some of Miami’s most exclusive venues including Bâoli, Marion and El Tucan.

Image via Paris Theater

NNN Leased Pollo Tropical Building on Biscayne Blvd. in MiMo Trades For 4.61% CA

A NNN leased Pollo Tropical stand-alone restaurant building located on Biscayne Blvd/ US-1 in Miami’s MiMo district, has traded for $2.275 million, equating to a 4.61% CAP rate. The 1,754 SF restaurant building sits on a 12,800 SF lot located at 7501 Biscayne Blvd in Miami, FL. The asset was renovated in 2017 and had a 15-year corporate NNN lease with Pollo Tropical. The transfer development rights (TDR’s) were not included in the sale. This Pollo Tropical restaurant is interesting because it is a drive-thru only location and contains no indoor seating. This made it especially attractive during the current pandemic as the tenant was able to operate without any interruption during the recent City of Miami shutdown.

“This acquisition was driven by the buyer’s concern for the unknown long-term effects of the Covid-19 pandemic on the economy and future possible shutdowns. We are seeing a large portion of our client base shift their focus to seeking out assets that have proven resilient against down markets.” said Jason Abitbol, Apex Capital Realty.

Jason Abitbol, Apex Capital Realty’s Commercial Advisor, represented the buyer, 995 Holdings LLC., in the acquisition which represented a 1031 Exchange. The Seller of the property was 7501 Biscayne LLC. which is controlled by Alex Karakhanian from LNDMRK Development. The seller was represented by Alex Zylberglait, Scott Sandelin, and Jonathan De La Rosa from Marcus and Millichap. 

Former Top Silverstein Exec Launches Hyperion, A New Investment And Development Firm

Rob Vecsler, a former Silverstein Properties executive, has announced that after leaving Silverstein he is re-launching Hyperion Group, a South Florida and New York based real estate investment and development firm. Rob Vecsler spent the past six years at Silverstein Properties in New York, where he served as President of Residential Development and Head of Acquisitions, overseeing in excess of $4 billion dollars in development and acquisitions, while also serving on the company’s investment committee. Vecsler has reconstituted the core team at Hyperion that developed several large-scale projects together in Miami.

To coincide with the re-launch of Hyperion Group, the firm has formed a partnership with Winter Properties to co-invest in investment opportunities in South Florida, New York and other select markets. Hyperion will serve as the developer for the venture’s projects. 

“We are delighted to have Winter as a venture and capital partner,” said Rob Vecsler, Principal and CEO of Hyperion. “Our combined investment and development capabilities, together with substantial investment capital, allows us to be bold, nimble, and competitive wherever we see opportunity,” 

The partnership just closed on their first deal, a development site in West Palm Beach and plans to develop a 300-unit multi-family property. The West Palm Beach site has flexible as-of-right zoning allowing for a mixed-use development, which will include over 300 multi-family residences. Managing through recent market conditions, Hyperion worked with the seller to negotiate and close the transaction at a basis that maximizes the new venture’s development program optionality. The venture is pursuing additional sites and monitoring the market to acquire assets presenting further value opportunities.

“We are pleased to have co-invested in the first of what we expect will be many deals with Rob and Hyperion, as we are committed to investing in and growing this venture together,” said David Winter, Co-CEO of Standard Industries. “We hope to play a key role in Hyperion’s growth as a leading real estate development and investment platform.” 

“We’re excited about this development project and the overall venture as it exemplifies Winter’s focus on relationships with companies like Hyperion that have strong leadership and compelling growth strategies,” said Rick Singer, President of Winter Properties.

A Major Retailer Just Vacated Thor Equities' 663 Lincoln Road

COVID-19’s impact on commercial real estate is beginning to show its ugly wake. In late April Steve Madden reportedly notified Thor Equities, led by founder and CEO Joseph Sitt, that they would not be renewing their 2,269 SF lease at 663 Lincoln Road, which represents roughly 45% of the building. The vacancy is being marketed for a replacement tenant and the building is also listed for sale asking $17.5 million with Tony Arellano and Devlin Marinoff of DWNTWN Realty Advisors.

Thor Equities is reportedly working towards relief after falling delinquent on payments for a $7.3 million CMBS loan which is backed by the building. In 2012 Thor Equities paid $15 million for the 5,000 SF Lincoln Road-fronting retail building which was built in 1935. Pizza Rustica leases 1,700 SF in the building at the 667 Lincoln Road address.

Thor Equities’ Miami portfolio also includes the ground-floor retail space at 605 Lincoln Road as well as several properties in Wynwood and Miami Design District.

Rewind: Michael T. Fay Tom Wood and Jacques Bessoudo Discuss COVID-19 Impact On Commercial Real Estate in South Florida Webinar

On April 3, 2020, PROFILEmiami hosted a webinar conversation with over 350 viewers on the impact that COVID-19 has, and will have, on the commercial real estate industry in South Florida. If you missed us live, or just want to revisit some of the insight our panelists had to offer, we have now posted the full webinar for you to sit back and rewind! Hear from some of Florida's leading real estate professionals about how they are reacting to the crisis, navigating the uncertain circumstances and preparing for future opportunities that may arise from the economic fallout.

Speakers:

• Michael T. Fay, Principal and Managing Director, Avison Young

• Jacques Bessoudo, Managing Partner, Galium Capital

• Thomas D. Wood, President, Thomas D. Wood & Company

• Moderator: Demetri Demascus, Co-Founder & CEO, PROFILEmiami

Topics:

• What effects have we seen on valuations, leasing and sales velocity, construction, availability of capital, and tenants in the South Florida real estate market so far?

• As a landlord, how are you managing your tenants right now?

• In the face of negativity there is always opportunity. Where do you think we will see opportunity open up?

• What is the current state of financing - are deals falling out of contract? Bank vs. non-bank sources of capital - who’s willing to lend?

• How are you working with your teams remotely? 

• How is the current economic crisis due to COVID-19 different from that of 2008?

• How will different types of lenders and loan products give different flexibility to the borrowers?

• What advise do you have for those that currently have financing on their properties?

• What is loan forbearance and how is it handled?

Link: https://youtu.be/OofUMQIa8EU

Join Us For a Webinar: COVID-19 Impact On Commercial Real Estate in South Florida

Webinar Link: https://us04web.zoom.us/webinar/register/6215856217249/WN_obbwfc2LROmhcaJkQMedVg

PROFILEmiami presents a conversation around the impact that COVID-19 has, and will have, on the commercial real estate industry in South Florida. Hear first hand from some of Florida's leading real estate professionals about how they are reacting to the crisis, navigating the uncertain circumstances and preparing for future opportunities that may arise from the economic fallout.

Where: Once you register, Zoom will send you a link to the webinar.

When: Friday, April 3, 2020 | 3-4 PM

Speakers:

• Michael T. Fay, Principal and Managing Director, Avison Young

• Jacques Bessoudo, Managing Partner, Galium Capital

• Thomas D. Wood, President, Thomas D. Wood & Company

Topics:

• What effects have we seen on valuations, leasing and sales velocity, construction, availability of capital, and tenants in the South Florida real estate market so far?

• As a landlord, how are you managing your tenants right now?

• In the face of negativity there is always opportunity. Where do you think we will see opportunity open up?

• What is the current state of financing - are deals falling out of contract? Bank vs. non-bank sources of capital - who’s willing to lend?

• How are you working with your teams remotely? 

Can’t tune in live? Sign up below now and we will share a recording after the webinar.

Webinar Link: https://us04web.zoom.us/webinar/register/6215856217249/WN_obbwfc2LROmhcaJkQMedVg

Avison Young Completes 133,140 SF Of Industrial Leases In Broward County

Avison Young has announced it negotiated five industrial lease transactions totaling 133,140 SF in Broward County, Florida. The transactions were overseen by Avison Young Principals Tom Viscount and Wayne Schuchts. Sonny’s Enterprises, an international manufacturer and marketer of conveyorized carwash equipment, signed a 41,520 SF long-term lease expansion to fully occupy Westpoint Distribution Center at 5607 Hiatus Road in Tamarac. Colliers’ Ryan Goggins represented the landlord, Nuveen. Sonny’s Enterprises also signed a new 37,500 SF long-term lease at Tamarac Commerce Center at 6501 Nob Hill Road in Tamarac. Link Industrial Properties’ Eric Penaranda represented the landlord, GLP.

Stimwave, an online distributor and supplier of generic and brand name medicine, signed a new 26,000-square-foot lease at Park Central Business Park at 1310 Park Central Blvd. S in Pompano Beach. Duke Realty’s David Loudenslager represented the landlord. Lightfire Group, an e-cigarette and vapor distribution company, signed a 16,120 SF lease renewal at Westpoint Industrial Center II at 10601 State St. in Tamarac. Nothing Butt Cigarettes, a tobacco wholesaler and distributor, signed a 12,000 SF lease renewal at Westpoint Industrial Center II.

“West Broward and Pompano Beach continue to attract and retain industrial space users that value convenient access to locations throughout South Florida’s tri-county area via major thoroughfares,” said Tom Viscount of Avison Young. “Our clients had a differing range of space requirements in these tightening, in-demand submarkets, and it was a pleasure working with the landlords and their representation to meet those needs.”

The transactions reflect the continued robust demand for industrial space in Broward County. According to Avison Young’s year-end 2019 Broward County industrial report, West Broward, where Tamarac is located, posted the lowest vacancy rate in the county at 2.1%. Nearly 2.7 million SF of new industrial space was completed in the county, of which 1.1 million SF alone was delivered in Pompano Beach. The submarket still saw 456,773 SF of net absorption, indicating robust demand.

Galium Capitals Acquires 1333 Main Street Office Assemblage In Downtown Columbia, SC

Galium Capital, LLC, a Miami-based private equity group, has announced the acquisition of 1333 Main St. in Columbia, SC. 1333 Main St. is a premier office building and assemblage in the Downtown CBD of Columbia. The transaction closed for $29,350,000 on February 27, 2020.

“1333 Main is a premier office building in the heart of Main Street in an irreplaceable location in Downtown Columbia. The asset is stabilized and consists of a diverse high-credit tenant mix from both public and private sectors. We see strong potential for the building’s long-term performance as well as the growth of the Downtown Columbia market, specifically on Main Street, over time, and are excited about this latest acquisition,” said Jonathan Slomianski, Acquisitions Associate at Galium Capital.

1333 Main St. was originally built in 1983. Today, the property spans 224,315 SF on 1.83 acres of land on Main Street, a main office corridor. 1333 Main St. was 92% leased at acquisition with a high-credit tenant mix including PWC, CBRE, South Carolina Education Lottery, South Carolina Workers Compensation Commission and Ameris Bank, amongst others.

In addition to the main office building, the total assemblage at 1333 Main St. includes the neighboring developed Vista Garage parking garage across the street with ground floor retail; as well as the adjacent service lot. Tenants in the retail component include the South Carolina Education Lottery, The United States Government and Enterprise Rent-A-Car, amongst others.

“1333 Main Street presented a rare opportunity to acquire a true, Downtown Central Business District office asset just down the road from the state capital of South Carolina. South Carolina is a business-friendly market with a growing economy and population. We are proud to have some of the best tenants in the market,” said Jacques Bessoudo, Managing Partner of Galium Capital.

Huston Green from JLL represented the seller, Albany Road Real Estate Partners, a Boston-based private investment group. Jonathan Zilber from Meridian Capital secured the debt for buyer. The buyer, Galium Capital, manages over $350 million of commercial property comprising of multifamily, office, and retail assets across different national markets. 1333 Main St. is their first acquisition of 2020 and first acquisition in Columbia, SC.

PROFILE Exclusive: Private Equity & Navigating A Changing Retail Landscape With Jacques Bessoudo of Galium Capital

Very few investors have been able to successfully navigate the changing retail and office market landscapes as well as Galium Capital’s Managing Partner, Jacques Bessoudo. Building his firm to over $350 million of commercial assets in just two short years, Galium Capital is poised to be one of the major private equity players over the next decade in South Florida real estate. We caught up with Jacques to get inside of his mind to find out how he started Galium Capital, what is his investment strategy, what his views are on the future of the market and his framework for continuing to grow Galium Capital:

Q: Give us some background on yourself? How did you first get involved with Real Estate?

A: I moved to the US from Mexico in 2010 to attend Business School at Harvard. Real estate has always been a passion of mine, and since I was in school I started taking some classes and focusing on learning the industry. After graduation we moved to Miami, and shortly after I found myself doing deals. In the beginning they were small and it was mainly friends and family that had trust in me. Fortunately, those initial ones were successful, and was able to be the base to transition into institutional-quality deals, always retaining our entrepreneurial mindset.

Q: When and why did you start Galium Capital?

A: Galium Capital was founded in 2018 by Iser Rabinovitz and myself. Being from Mexico and seeing so much instability throughout global markets, we noticed that there was an opportunity to help international investors make smart commercial real estate investments in U.S. markets. Commercial real estate assets in the U.S. provide cash flow and appreciation while matched with capital preservation for foreigners. We started with a small service center in Orlando, and Parq 170 at City Center, a 290-unit multifamily apartment building in the D.C. area.

Q: What is Galium Capital’s Investment Strategy?

A: We want to allow private investors to have access to the institutional real estate investment market, with all the efficiencies and formalities that it entails, including: low financing costs, professional management, optimal risk-return profile, institutional reporting, etc. At Galium Capital we approach each deal differently. Because we are not a “fund” it allows us to be flexible within our investment strategy to maximize the value of potential opportunities we present to our investors. We invest in commercial real estate assets in the sectors of multi-family, office and retail. We also pursue deals that have a value-add potential, whether from vacancies, below market rents or renovation. We have value-add deals, and core, stabilized deals for the yield-seeking investor.

Q: Galium Capital has been active retail buyers at a time when retail has been changing due to consumers shopping online, amongst other factors. What is the strategy to your success investing in retail? 

A: We have a very robust criteria when it comes to investing in retail which has helped us be successful in our investments. We pursue un-anchored, e-commerce proof retail assets in sound markets that we feel strongly about. Typically these assets are service-oriented neighborhood retail centers in high-traffic locations. While consumers may be turning to e-commerce for their shopping needs, there is a demand for a retail presence for service-oriented businesses such as accountants, insurance, real estate brokers, spas, gyms, restaurants, barbers, bars and lounges, etc. By avoiding retail centers with large anchor stores, we alleviate the risk of a single tenant bearing a large portion of the properties rentable square footage or revenue which could be detrimental upon vacating their space.  

Q: What types of properties and investments has Galium seen the most success in? 

A: As we operate deal by deal and invest our own money into each deal, we take it upon ourselves to be ultra-selective on the deals that we pursue. Due to this we have seen success in multiple commercial real estate sectors including retail, office and multi-family. Each deal has a different investment opportunity, some via rental income and CAP rate compression over the hold period for an additional appreciation gain at sale; others are high yield cashflow investments. 

Q: Galium has acquired property on a national scale, what markets do you see the most strength in right now? Is there anywhere you guys are looking to expand to or are avoiding? 

A: We focus on markets with high growth in population, employment, and wages. We also take market-level pricing into consideration, in comparison to historic levels, and comparable markets. We are pursing assets in states such as Florida, Washington, Virginia, Texas and the Carolinas    

Q: What is Galium Capital’s focus for 2020? What does the future hold?

A: We are in the end stage of an expansionary economic cycle, so we want to be extra selective in new acquisitions. We are probably going to execute on a few deals only, focusing on sustainable growth.We will continue to focus on increasing the yield produced by our current investments and optimizing their operations. We have some exciting new potential acquisitions in the pipeline and are looking to close on our newest property in early February 2020. We look forward to making smart real estate investments for successful results throughout 2020 for our investors.

About Jacques:

Jacques is actively involved in the asset management of over $200M of real estate properties and development. In addition, Jacques oversees the property management of over 200 single-family homes. Jacques’ prior experience includes eight years in The Boston Consulting Group, one of the top global strategy consulting firms. Jacques holds an MBA from Harvard Business School, and a BA in Finance from ITESM.

About Galium Capital:

Galium Capital is an Aventura-based Private Equity firm which owns and manages more than $350 million in commercial assets across the United States with asset management and property management performed in-house. Galium Capital invests in multifamily residential, retail, hotels and office space. Galium Capital is led by Jacques Bessoudo and Iser Rabinovitz.

Visit Galium Capital at www.galiumcapital.com