Robert Rivani's Black Lion Investment Group Acquires SLS Brickell Restaurant Space For $10 Million

Black Lion Investment Group, the Miami-based real estate and hospitality developer led by Robert Rivani, has added yet another trophy property with the acquisition of the trophy restaurant space at SLS Brickell for $10,000,000. The restaurant space is approximately 13,500 SF of indoor / outdoor space and was previously Bazaar Mar by Chef Jose Andres which closed in 2019. The sellers were members of the Qatar’s ruling royal Al Thanis family who acquired both the hotel and restaurant space for $43 million in 2014.

The deal was brokered by Fabio and Sebastian Faerman of FA Commercial, who represented Black Lion while Jordan Karp of Jordan Karp, LLC. and Andrew Dicky of JLL represented the seller in the transaction.

Black Lion intends on bringing yet another one of a kind concept to Brickell’s already spectacular restaurant scene with a proven track record of restaurants like Gekko at SLS LUX, Catch and Continuum, Philippe Chow, Amara at Paraiso, Delilah and Wynwood Jungle.

The 52-story SLS Brickell is an over-the-top, chic residence and hotel tower developed by Related Group located in the heart of Brickell, just a walking distance from Brickell City Centre. The tower hosts 453 contemporary residences and hotel suits with panoramic views of the Miami skyline and Biscayne Bay.

Brick & Timber Collective Acquires Wynwood Office Building Cube Wynwd For $62 Million

Brick & Timber Collective has acquired Cube Wynwd, an office building in Miami’s hot Wynwood neighborhood, from Tricera Capital and Alex Karakhanian’s LNDMRK Development for $62 million. The transaction closed on December 13 and Tricera and LNDMRK retained an undisclosed ownership stake in Cube Wynwd. Tricera and LNDMRK originally acquired the 100,000 SF office building, which includes ground-floor retail, rooftop space and parking, for $28 million in an April 2021 off-market deal. Tony Arellano of DWNTWN Realty Advisors represented both buyer and seller in the transaction.

Berkadia’s Scott Wadler and Mike Basinski secured a $36.18 million loan on behalf of the buyer Brick & Timber Collective. This is the second time in 20 months the property has traded and been capitalized by Berkadia. The Berkadia team also lined up $27.5 million in senior and mezzanine financing when Tricera Capital and LNDMRK acquired the property in April of 2021. JP Morgan provided the balance sheet $36.2 million five-year fixed-rate loan with full term interest only.

The Tricera Capital and LNDMRK Development partnership acquired Cube Wynwd in 2021 from Red Sky Capital when Scott Sherman was still with firm. Sherman has since left and founded Torose Equities. The Class A office building was developed in 2019 by Redsky Capital in partnership with JZ Capital Partners and was financed by Bank OZK and Lionheart Strategic Management.

“We are thrilled with the execution of our business plan for Cube Wynwd, culminating in this significant disposition,” Tricera Chief Financial Officer Christian Ramirez said. “This investment underscores the depth and versatility of Tricera 2.0, as we tapped into our robust acquisitions and asset management divisions, top-tier leasing professionals, team members with development experience and real estate finance experts. We look forward to replicating the model at our many other investments and developments.”

Prior to completing the disposition, the Tricera and LNDMRK partnership finalized a five-year lease with Boston’s Northeastern University to occupy the 10,976 SF fifth floor of the 222 NW 24th St. building. Northeastern plans to operate a brand-new graduate degree program tailored to working professionals in Miami’s rapidly growing fintech industry.

The Northeastern deal maintains Cube’s 100% leased status, as investment firm Schonfeld Strategic Advisors is set to relocate from Cube to The Dorsey, a Wynwood mixed-use building Tricera and LNDMRK partnered with The Related Group to develop. Schonfeld is expected to move to The Dorsey in early 2023.

“Northeastern’s lease at Cube is yet another example of where Wynwood’s office market is headed and reinforces the building’s incredible tenant mix,” Tricera President/Head of Leasing Dustin Ballard said. “It is exciting that local fintech professionals will have an opportunity to pursue a graduate degree from a renowned university. That will help take the fintech sector – and the City of Miami – to build upon the accomplishments and growth of the past few years.”

CBRE’s Eric Groffman, Cameron Tallon, Emily Brais and Randy Carballo served as landlord representatives in the Northeastern lease. Colliers International South Florida Stephen Rutchik and Tyler de la Peña and Colliers International Greater Boston’s John Carroll represented the tenant.

Additional Cube tenants include Blockchain.com, Ecuadorean fintech firm Kushki, Shaolin Capital Management, Brazilian footwear manufacturer Grendene, office supply and furniture online retailer Poppin, tech firm Transmit, and more.

Image via Richard Novak

Scott Sherman Launches Real Estate Investment Firm Torose Equities

Seasoned real estate veteran Scott Sherman has launched Torose Equities, a Miami-based real estate investment firm with a value-add urban retail, office and mixed-use strategy targeting the Southeastern United States.

Torose will be Sherman’s newest venture after successfully launching Miami-based Tricera Capital in 2017 and growing the company to become a household name and key player in major Florida markets. In just five years, Sherman spearheaded the acquisition of 30+ commercial assets totaling $700 million and more than 2.5 million square feet.

Sherman brings with him the former investment arm of Tricera Capital to lead Torose. Ari Sasson serves as Torose’s Chief Financial Officer and Aaron Kay as Director of Acquisitions.

“We are excited to continue to build on the chemistry and momentum we established as a team over the past five years,” said Torose Founder & Principal Scott Sherman. “Our investment strategy at Torose will be familiar to our investment partners. Now more than ever before, Torose’s contrarian approach to real estate investment and development will benefit from the current economic environment.”

Similar to Sherman launching Tricera Capital during the height of the “retail apocalypse,” Torose’s founding team saw the perfect window of opportunity to start another investment firm focused on value-add opportunities amid rising interest rates and growing uncertainty in the real estate market. The team has wasted no time, with properties already under contract that are expected to close by the end of the year.

Some of the team’s most high-profile acquisitions in the past five years include the former Palm Beach Post site in West Palm Beach; Cube Wynwood office building; Offices at Atria in Downtown Sarasota; and a portfolio of properties in Downtown St. Petersburg. The team is also partnered on several notable mixed-use developments including The Dorsey in Wynwood in a JV with Related and Alex Karakhanian; and The Boulevard in a JV with 13th Floor Investments.

The Torose team will continue to target assets ranging from $10 million to over $100 million in core markets in the Southeastern U.S., including Miami, West Palm Beach, Fort Lauderdale, Tampa, St. Petersburg, Sarasota, Nashville, Raleigh-Durham, and Atlanta.

Prior to launching Torose Equities, Sherman served as Managing Partner of Tricera Capital, and was Vice President of Acquisitions at Thor Equities, where he completed in excess of $2 Billion of closed deals. Before joining Thor, Scott was the Director of acquisitions at Becker Brothers.

Ronny Finvarb and Joseph Chetrit Acquire Macy's Property Near Miami Beach's Lincoln Road For $15.5 Million

Bay Harbor Islands-based Finvarb Group, led by developer and hotelier Ronny Finvarb, in partnership with Joseph Chetrit, have acquired the Macy’s property off of Lincoln Road in Miami Beach for $15.5 million, $152 PSF. The iconic building, which is located at 1675 Meridian Ave., was developed in 1953 and is one of the oldest retail buildings in Miami Beach. The building spans 102,009 SF on a 1.15 acre lot. The seller was the San Antonio-based Terry Emanuel and the deal included $9.3 million in seller financing.

Ronny Finvarb is currently developing the nearby Thompson Hotel South Beach and other projects in different stages. Finvarb Group owns 15 hotels, restaurants and other properties in Florida, Texas and Arizona, including the Kimpton Palomar South Beach and Osteria Morini, the Residence Inn by Marriott South Beach, the Courtyard by Marriott South Beach, and the Courtyard by Marriott Jupiter Palm Beach, which they developed. In Miami, Finvarb Group also owns the Landon Bay Harbor boutique hotel, including The Palm restaurant, which they acquired for $10 million in November 2021. The Finvarb Group also recently acquired mixed-use properties in Deerfield Beach, including JB’s on the Beach oceanfront restaurant property.

Pulso Capital Acquires Stellar At Palm Aire Build-For-Rent Townhome Community For $21.5 Million

Pulso Capital has acquired Stellar at Palm Aire, a new build-for-rent community consisting of 39 townhomes located in the center of the Palm Aire Country Club in Pompano Beach, Fl., for $21.5 million, or $551,282 per unit. The sale and financing were overseen by Berkadia. Senior Managing Directors Roberto Pesant and Jaret Turkell, along with Director Yoav Yuhjtman, Associate Director Omar Morales and Senior Analyst Jose Mota of Berkadia Miami, marketed the property on behalf of Stellar Communities.

Senior Managing Director Mitch Sinberg, along with Managing Directors Matt Robbins, Scott Wadler and Brad Williamson, and Senior Analyst Michael Basinski of Berkadia Miami arranged the debt on behalf of the buyer. Steeprock provided the $14 million, fixed-rate, five-year loan at a 65% LTV, with full term interest only.

“In a region where for-sale housing has seen prices increase by up to 50% in some cases, Stellar at Palm Aire provides residents with a spacious, new-construction high-end property with private outdoor areas and luxurious finishes at a rent that is attainable,” said Pesant.

“We have a strong belief in the dynamics of the South Florida Market and are actively looking for the right opportunities for our group,” said Maor Benami, co-founder of Pulso Capital Group. “This unique, Class A Built-for-Rent product, coupled with our management capabilities, makes Stellar at Palm Aire a perfect fit for us as we continue to grow our portfolio.”

Effective rent in South Florida rose 25.2% year over year, according to Berkadia Research – driven by an influx of new residents and corporate migrations over the last 12 months.

Located halfway between Fort Lauderdale and Boca Raton in a suburban setting west of I-95, Stellar at Palm Aire is the first new construction in the Palm Aire Golf Course community in over 10 years. There are two-bedroom (1,475 square feet), three-bedroom (1,744) and four-bedroom floor plans (1,825 to 1,961) with rents ranging from $3550 a month to $4,350. Townhomes have attached garages. Its location in a peaceful community, surrounded by greenery, golf course views, walking, running & biking trails allows residents to enjoy the calm of suburban living while in close proximity to two of Florida’s main employment hubs. It is just 10 minutes from I-95, five minutes from the Florida Turnpike, and 15-20 minutes from both Downtown Fort Lauderdale and downtown Boca Raton.

Established in 2009, Stellar Communities is a full- service real estate development company with a progressive focus on eco-construction initiatives for residential communities. Since its inception, Stellar has helped over 2,500 families move into the next stage of their lives with a new home. With a deep-rooted commitment to quality and value, Stellar Communities builds inspiring homes and communities with unmatched efficiencies in some of the most highly sought-after coastal, urban, and suburban locations across South Florida.

Established in 2019, Pulso Capital Group, founded by Maor Benami and Salomon Kamkhaji, aims to improve lives while unleashing the total value of assets through conservative underwriting, appropriate financing arrangements, on-time constructions, and diligent property and asset management. The firm is actively focused on increasing its portfolio with value-add to Class A Built-for-Rent multifamily properties.

PPG Development Acquires Bay Harbor Towers For $32 Million

PPG Development, led by Ari Pearl, have acquired Bay Harbor Towers, located at 10141 and 10143 East Bay Harbor Drive. The 1.03-acre property sold for $32 million, which equated to a price of $1,066,667 per existing unit. The transaction was overseen by Cary Cohen of Blanca Commercial Real Estate and Deme Mekras of MSP Group.

Prior to the marketing of the site, the Board of Directors at Bay Harbor Towers designated a committee and instructed them to explore the sale, which led to their interviewing and receiving proposals from several brokerage houses, including some of the world’s largest firms. After a highly competitive interview process, the committee elected to have Cary Cohen of Blanca Commercial Real Estate along with Deme Mekras, of MSP Group, represent the many owners of Bay Harbor Towers. The duo signed exclusive listings with 100% of the 30-unit owners and commenced a far-reaching marketing campaign.

“Bay Harbor is no longer Dade County’s hidden treasure. Our extensive marketing process elicited global interest from numerous top-tier developers, as we expected, given the truly unique nature of this opportunity,” said the listing team. The duo shared that “Coordinating a sale of an entire association is one of the most rewarding transactions. It brings life changing wealth to so many people as the existing units traded for over 300% of their market value on an individual basis.” This rare, waterfront Bay Harbor Islands development site was highly sought after due to its immediate views of Biscayne Bay, Bal Harbor, Sunny Isles and distant views of South Beach, Edgewater, and Downtown Miami.

The buyer, PPG Development, LLC, led by Founder and CEO, Ari Pearl, is a commercial and residential real estate developer focused on the South Florida market, which has a substantial pipeline of development projects already underway, such as 700 planned multifamily units in North Miami Beach and the ongoing redevelopment of the Diplomat in Hallandale. PPG also has recent experience in Bay Harbor market with their purchase of The Altair Hotel.

“Development sites with amazing bay views rarely come to market anywhere in Miami, much less on coveted Bay Harbor Islands. Ultimately, a significant bidding war ensued leading to a $32 million sales price,” they continued, “and we firmly believe this was a win-win for both buyer and sellers,” said list agents Cary Cohen and Deme Mekras.

DRA Advisors and CP Group Acquire Iconic Office Building 'Miami Tower' In Downtown Miami For $163.5 Million

DRA Advisors and CP Group have acquired Miami Tower, a 627,152-square-foot trophy office tower in Downtown Miami’s Central Business District for $163.5 million. Mike Davis, Dominic Montazemi, Mike McDonald, Miguel Alcivar, Rick Brugge, Rick Colon, and Adam Spies of Cushman & Wakefield represented the seller, USPO Miami, LLC, in the transaction. Jason Hochman and Ron Granite of Cushman & Wakefield also arranged the acquisition financing through PGIM on behalf of the buyer, DRA Advisors and CP Group.

“Miami Tower is a hallmark icon of the Miami skyline with a storied history,” said Montazemi, Executive Managing Director at Cushman & Wakefield. “CP Group together with DRA have a vision to elevate the asset with significant capital investment and plans for modernizations that will place Miami Tower as a category-defining option for tenants seeking the very best transit-oriented workplace solutions together with state-of-the-art on-site amenities.

Additionally, “The asset’s live-work-play environment and location in an area that has had more than $23 billion worth of recent development happening will continue to attract interest from established businesses in and outside of Florida,” said Davis, Executive Vice Chair at Cushman & Wakefield.

Located at 100 SE 2nd St., Miami Tower is a trophy asset that spans 47 stories and is currently 67% occupied while historically averaging 90% or better. The office tower features a unique triple-tiered light display and best-in-class amenities such as an on-site conference center, fitness facility, Sky Lobby and Sky Terrace event space, ground floor retail, and adjacent Hyatt Regency Miami Hotel. It’s also the only office building in Miami that is fully connected into the city’s public transit system with an integrated Metromover station, which provides nearly immediate access to Miami Central station.

Miami Tower has been a critical part of the city’s public and business community since it was built in 1987, and significant capital has been invested in renovation projects over the years to maintain it. Under new ownership, the office tower offers potential value-add through further enhancements to its amenities.

W.A. Spencer Morris Named President of the Allen Morris Company

The Allen Morris Company (AMCO) one of the largest diversified real estate firms in the southeast, has named W.A. Spencer Morris, President. Morris was most recently Chief Investment Officer (CIO) for the organization. W. Allen Morris will retain title as Chairman & CEO.

Morris has been an integral part in furthering AMCO’s investment management division, along with its development business, and opening new lines of business such as AMS Hospitality.  

In his new role, he will oversee AMCO’s investment portfolio, now surpassing $1.5 billion, projects under construction and $2.5 billion in new pipeline development opportunities. Morris will continue to serve on the Board of Directors of AMCO and AMS Hospitality.

“Spencer (Morris) has proven that he can successfully engage with every division of our enterprise,” said W. Allen Morris, Chairman & CEO of the Allen Morris Company. “We are in a significant stage of growth at AMCO, and I am very much looking forward to working with Spencer in his new role.”

The multi-faceted Allen Morris Company has several projects throughout Atlanta, Central Florida and South Florida, and is currently looking at new opportunities throughout the Southeast. 

“Having grown up watching my grandfather and father run the Allen Morris Company – it is with great pride that I will serve in this role,” said W.A. Spencer Morris. “During my leadership, I look forward to building on the Company’s rich tradition of many ‘firsts’ over its 64 years while continuing to evolve the business to meet today’s marketplace needs.” 

Morris was previously with The Related Group, where he served as Development Associate of the 58-story, 1.3 million square foot SLS LUX-Brickell hotel and condominium as well as other projects.

Morris received his Bachelor of Science degree in Liberal Arts from Boston University. 

Allen Morris Company is one of the largest real estate firms in the Southeast U.S., completing their 85th development project and specializing in office buildings, multi-family residential, hotels, mixed-use developments, leasing and brokerage, and property management. With offices in Miami and Atlanta, the Allen Morris Company has served its business and investment clients for 64 years. For more information, please visit www.allenmorris.com, or follow AMCO on Instagram at @allenmorrisco.

Pebb Capital And LeaseFlorida Sell Trophy Miami Beach CVS For $17.73 Million

Pebb Capital, in a partnership with LeaseFlorida, has sold a trophy retail condominium asset on Miami Beach for $17.73 million to California-based Cove Capital Investments. CVS Health (CVS), the largest national pharmacy health care provider and a publicly traded company, is the long-term tenant, which signed a 25.5-year lease in May 2021.

Cushman & Wakefield’s National Net Lease Group, led by Blake Tagmyer, Brandon Price and Greg Mason, facilitated the sale. Emerald Creek Capital arranged $13.3 million of financing for the buyer.

Delivered in 2019, the two-story, 8,896-square-foot retail condominium property at 4000 Collins Ave. is situated under a four-story parking garage that was constructed from the ground up by the seller. It is adjacent to the historic Hampton Inn at The Continental, a 100-key Hampton by Hilton hotel at the same address that is owned, operated and was renovated in 2019 by Pebb Capital and LeaseFlorida for $25 million.

Located just one block from the ocean, CVS is at the prime intersection of Collins Avenue and 41st Street, one of Mid Beach’s busiest corridors, with daily traffic count in excess of 70,000 vehicles. There are over 2,700 hotel rooms and 6,000 residential units within a five-mile walking radius. A mile west is Mount Sinai Medical Center, one of South Florida’s largest hospitals with more than 4,000 employees and 672 beds.

“The key to retail is consistent traffic, and there’s a surplus of that at this busy corridor,” said Todd Rosenberg, co-founder and managing principal of Pebb Capital. “This sale proves the continued success of opportunistic investments with positive real estate fundamentals.”

Images via Alex T Photo

Boynton Beach Office Building Sells For 75% Value Increase In 1 Year

An Atlanta and South African-based buyer, OrbVest US, Inc., recently closed on Congress Executive Center, a 4-story medical and professional building located at 1301 N. Congress Avenue in Boynton Beach, FL. The property, which was 100% occupied, closed on May 12, 2022, for $11 million. The transaction represents a 75% increase in value in just one year since the previous acquisition by the seller, Triple Double Real Estate.

Executive Managing Director Mark M. Rubin, Director Bastian Laggerbauer, and Financial Analyst Jake Stauber of Colliers’ South Florida Investment Services Team represented the seller, Triple Double Real Estate, led by Andrew “Avi” Greenbaum and Jeremy B. Becker, in the transaction. Andy Belew of Consilium Capital Partners represented the buyer.

“The trade of Congress Executive Center represents a 75% increase in value from its previous purchase price, less than one year ago," said Rubin. "This sale is indicative of the strong demand for stabilized medical office properties with solid fundamentals, sound in-place tenancy and investor confidence in the Boynton Beach submarket.”

The 40,210-square-foot, 4-story, medical and professional office is located on nearly 2 acres, adjacent to the Boynton Beach Mall, which has plans for a major redevelopment. With plans for abundant shopping, dining, and entertainment across the street, Congress Executive Center stands out as one of the most strategically located medical and professional office buildings in the area.

“Congress Executive Center is a great addition to the buyer's current and impressive portfolio of healthcare real estate,” said Laggerbauer. “The seller was able to increase the property’s value significantly by attracting strong medical tenancy to the asset and achieving a 100% occupancy rate.”

The office investment market in South Florida broke records in 2021, despite uncertainties surrounding the coronavirus pandemic and return to the office delays. South Florida’s strong demand drivers like, declining unemployment, population growth, and confidence in the economy are creating an imbalance in supply and demand. Including Boynton Beach, there is limited supply of quality products with competitive buyers driving the price up; sales price per square foot increased 19 percent year-over-year, ending in 2021 at $285. Boynton Beach, amongst the rest of South Florida, is expected to see another strong year for office investment. However, high demand and limited supply will likely remain imbalanced.