DRA Advisors Lists Pinnacle Corporate Park Portfolio In Fort Lauderdale

A fund managed by DRA Advisors LLC has entrusted Avison Young’s Florida Capital Markets Group to sell Pinnacle Corporate Park, a two-building, class A office portfolio at 500 and 550 W. Cypress Creek Road in Fort Lauderdale, Florida. Avison Young Principals John K. Crotty, CCIM; David Duckworth; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Greg Martin, and George Vail will lead the sale. The transaction team also includes Avison Young Vice President Brian C. de la Fé and Associates Berkley Bloodworth and Emily Brais.

The asset totals 259,458 square feet on 14.31 acres in Broward County’s Cypress Creek submarket. Pinnacle Corporate Park is positioned in the heart of Fort Lauderdale’s Uptown Urban Village, a master plan that supports the development of a thriving, transit-supportive, mixed-use neighborhood. Its offices are less than a mile from Interstate 95 and directly accessible from the Cypress Creek Tri-Rail station.

“Pinnacle Corporate Park is the most desirable property in the Cypress Creek submarket due to its strong occupancy, rental rate growth, and immediate potential for lease-up,” said Crotty. “In addition to the existing value, the offering provides the opportunity to maximize land on the site in the coming years through residential development.”

Pinnacle Corporate Park coming to market represents the trend of large funds and institutional owners’ confidence to sell large office assets again, as sales declined immediately following the pandemic. The deal would be similar to the recent $78.42 million Plantation Crossroads three-building portfolio sale.

“We are seeing an uptick in demand for investors looking to deploy capital in well-located South Florida office assets,” said Duckworth. “Pinnacle Corporate Park is ideally situated near major expressways, transit, and amenities, and provides the perfect opportunity.”

NY Tech Executive Buys Pinecrest Mansion For Record Price, Under Contract In Just 6 Days

A record-breaking sale took place in Pinecrest for a property that was on the market for just 6 days and sold for $5.6 million. 6035 SW 92nd Street is the most expensive resale of a home that is over 10 years old in Pinecrest. The home, dubbed “Magnolia House,” was purchased by Marc and Kerrie Ferrentino who are relocating from New York. Marc is the Chief Strategy Officer of tech company Yext. They were represented by Blair Sonville with Lowell International Realty and Michael Martinez with ONE Sotheby’s International Realty represented the seller, Matthew Adler, who is a prominent real estate developer.

Magnolia House was designed by architect Cesar Molina and built by Mackle Construction. The home features 7-bedrooms and 8.2 bathrooms with 8,863 sq.ft. of living space. There is also a gym, media room, home office with library, 4-car garage, elevator shaft and guest house. Outdoor space features a new summer kitchen, gazebo and heated saltwater pool.

Aman Miami Wins Approval For Versailles Hotel Restoration In Miami Beach’s Faena District

The Miami Beach Historical Preservation Board approved the Aman Miami development by OKO Group’s plan for the restoration of the historic Versailles Hotel. This a big step forward for the art deco building in Miami Beach’s Faena District. Aman Miami will consists of 56 hotel rooms within the restored Versailles Hotel along with 23 boutique residences located in a new tower next door. The residences in the new tower will be designed by Kengo Kuma with the HP board vote of the proposed residential tower design coming up in February. Once the design is approved OKO Group can proceed with permits and construction.

The vote to approve OKO Group’s plan for restoration of the Versailles Hotel was supported by community members including Craig Robins of Dacra, Wendy Kallergis of the Greater Miami and Beaches Hotel Association, Tom Stern the Faena House Board President, and more. OKO Group also released a statement reacting to the vote:

“We appreciate that the Miami Beach Historic Preservation Board took time to understand how our vision for Aman Miami will benefit the Faena District and preserve the iconic Versailles Hotel while contributing to the local economy and elevating Miami Beach’s status as a global destination. The board’s favorable vote is consistent with the widespread support that Aman Miami has earned in the neighborhood and the Miami Beach community.

The development of Aman Miami will infuse the City with hundreds of millions of dollars in private investment, resulting in more than 400 new jobs for the community and millions of dollars in new property and resort tax revenues each year. Aman has a proud history of delivering high-end, low-impact properties which are respectful of their physical surroundings and the history and culture of their communities – including 13 resorts bordering UNESCO World Heritage Sites.

We will continue this tradition in Miami Beach as we restore the Versailles Hotel to greatness. We thank the members of the Historic Preservation Board for supporting what will surely become the most preeminent hotel and residential development in Miami Beach.”

CA Ventures Acquires Student Housing Complex In Boca Raton For $80 Million

The Chicago-based CA Ventures has acquired The University Park student housing complex in Boca Raton for $80 million, roughly $503,000 per unit. The deal was financed with a $52.35 million Fannie Mae mortgage by Grandbridge Real Estate Capital. The seller was the New York-based Investcorp International who acquired the property in $70 million in 2016.

The University Park is located at 135 NW 20th St., near Florida Atlantic University, and was developed in 2015. The multifamily building sits on 10.7 acres and features 159 apartment units with 228,097 square feet of total development. Amenities include a resort-style pool, fitness center with boxing area, yoga studio, barbecue area, study rooms, 24/7 market, gaming area with pool table, a cell phone booster tower and free roommate matching.

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.

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.

AMS Hospitality Led By Allen Morris Company And Stormont Hospitality Group Partners With Black Salmon To Launch $300 Million Joint Venture

AMS Hospitality, a joint venture between The Allen Morris Company and the Atlanta-based Stormont Hospitality Group, has teamed up with the Miami-based Black Salmon Capital to launch a $300 million initiative to acquire hospitality assets across the United States within the next 18 months.

In December the JV closed on its first acquisition, The Pelham Hotel, a 65-key boutique hotel in the heart of New Orleans. The Pelham Hotel is designated a historic landmark and ideally set adjacent to the vaunted French Quarter, within the city’s Central Business District. The property will undergo a complete, multi-million dollar renovation of the ground-floor lobby, public areas, and guest rooms in order to modernize its design and enhance the guest experience. New Orleans-based HRI Properties has been selected to provide property management services for the hotel

“The capability of this partnership to acquire and transform a hospitality asset is compelling,” said W. Allen Morris, Chairman & CEO of The Allen Morris Company. “This initial acquisition of The Pelham is an ideal of example of how we envision leveraging all facets of our varied strengths.”

The partnership between AMS Hospitality and Black Salmon leverages the key strengths and expertise of both firms across the disciplines of acquisitions, asset management, and capital raising. The JV will seek hotel properties that have undergone a price reduction from pre-pandemic values.

AMS Hospitality was formed earlier this year, joining The Allen Morris Company, one of the largest, diversified real estate firms in the southeast and Stormont Hospitality, a highly acclaimed hotel developer and asset manager.

Black Salmon Capital has acquired nearly $500 million of prime office buildings and senior housing assets across the United States, including US Bank Center in Phoenix, Arizona. It is a strategic partner of TSG Group, a developer of multifamily and offices. Black Salmon Capital’s investment strategy focuses on acquiring stabilized assets, in addition to value-add opportunities, in high growth markets with an educated workforce, a robust technology industry, and strong market fundamentals.

“We are delighted to mark Black Salmon’s foray into the hospitality industry with this deal,” said Jorge Escobar, CEO of Black Salmon. “Through our partnership with AMS, we will further our reach into the hospitality sector and generate new opportunities for our investors.”

“We are truly pleased to have partnered with a group of such consummate professionals across these various disciplines,” concludes Jim Stormont, co-founder of Stormont Hospitality Group, and President of AMS Hospitality. “We look forward to expanding our relationships and our portfolio within this sector while creating landmark assets.”