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

Touzet Studio-Designed Urbin Retreat Miami Beach Proposed on South Beach

Urbin Retreat, designed by Touzet Studio, has submitted its final proposal to Miami Beach’s Historic Preservation Board and Planning Board. The proposal says that Urbin Retreat will offer “affordable global mobility through responsible green living and working in urban centers.” Urbin Retreat Miami Beach will be a co-live, co-work and wellness platform that “fosters creativity and ignites connections through small units, big amenities and an emphasis on community.” Located on the 1200 block of Washington Ave. between 12th and 13th street, Urbin Retreat will feature a hotel, co-living, retail, a rooftop bar and a ground floor restaurant and bar.

Rannan Katz's RK Associates Proposes R.K. Center Mega-Project in Fort Lauderdale

Rennan Katz’s RK Associates has proposed R.K. Center, a 5-tower mega-project in Fort Lauderdale. The proposal would replace a former Sears and is currently being reviewed by Fort Lauderdale’s Design Review Committee. R.K. Center would feature restaurants and street front retail along with 5 mixed-use towers featuring office space, retail, hotel and residential apartments. Parcel 1 will feature 3 towers rising 30 stories (X2) and 15-stories offering 819 residential units, 71,960 of commercial space, 4,000 SF of restaurant space, a 4,000 SF food hall and 1,351 parking spaces. Parcel 2 will rise 17-stories and will feature 192 hotel rooms, 22 residential apartments, 3,480 SF of restaurant space, a 1,290 SF cafe and 288 parking spaces. Parcel 3 will rise 15 stories and will feature 135 residential apartments, 4,178 SF of retail, 2,295 SF of restaurant space, a 10,312 SF art gallery and 230 parking spaces. R.K. Center will bring an active urban lifestyle to Fort Lauderdale for both the general public and end users.

13th Floor Investments & Tricera Capital Go Vertical On The Boulevard In Mimo

13th Floor Investments and Tricera Capital have commenced vertical construction on The Boulevard. The apartment rental building will offer 283 apartment units, 35,855 SF of restaurant space, 13,485 SF of retail space and 517 parking spots. The Boulevard was designed by Corwil architects with Civic Construction as the general contractor. Rents are expected to average $2,200 per month. The development partnership got the green light to commence on the project in February 2018 and the developers locked down a $63.8 million construction loan in December 2019. The Boulevard is located at 5700 Biscayne Blvd., just north of Miami Design District in MiMo, adjacent to the local hotspot pizza place Andiamo. The lot had seen several projects proposed for the site yet were never built. The 2.2 acre vacant land changed ownership several times including 13th Floor Investments and Tricera Capital’s acquisition for $19.5 million in June 2017 from Unitas Development Group.

Triple Five Worldwide To Break Ground On American Dream Miami In 2021

Following the grand opening of American Dream Meadowlands in Fall 2019 in New Jersey, Triple Five Worldwide is planning to break ground on American Dream Miami in 2021. The mall, which has long been in the works, would be the biggest mall in the United States. American Dream Miami is expected to span over 5 million SF and will feature a retail component with an entertainment component consisting of a theme park, indoor ski complex, ice skating complex, aquarium and a submarine lake. The mall would cost between $4.5 billion to $5 billion with completion expected in 2025.

Triple Five Worldwide is now finalizing a design and will conduct an environmental study in Spring 2020 for a highway interchange between the Ronald Raegan Turnpike, I-75 and NW 170th St. in unincorporated northwest Miami-Dade County, just west of Miami Gardens and Miami Lakes. The Miami-Dade City Commission approved zoning changes in May 2018 required to make the project possible. American Dream Miami will also require a $15 million sewer extension. Triple Five Worldwide plans to submit a final design by the end of 2020.

Dave Grutman's Groot Hospitality Files Plans To Bring Restaurant To Edgewater At The Historic Miami Women's Club

Dave Grutman, the founder of LIV Nightclub at Fontainebleau Miami Beach and Groot Hospitality, the brand behind the swanky Komodo, Papi Steak and Swan restaurants, has filed plans to bring a new restaurant to Edgewater at the historic Miami Woman’s Club. The Miami Woman’s Club was first built in 1930 and is being restored with approvals from Miami’s Historic Preservation Board. Groot Hospitality pulled a construction permit which was filed in August to build out the 14,838 SF restaurant. The restaurant will make use of renovating 11,396 SF as well as a 3,442 SF addition via a $6.5 million mortgage issued by Firstbank Puerto Rico. The renovation will include a rooftop lounge and a waterfront dining deck on Biscayne Bay. No restaurant concept has been publicly announced as of yet.

The Mixed-Use Block H Is Now Rising At Miami Worldcenter Bringing Retail & Restaurants To Downtown Miami

Construction is moving swiftly on Miami Worldcenter’s Block H, which now can be seen rising out of the ground adjacent to the also rising 43-story Luma residential tower and now under construction CitizenM Hotel. Block H will serve as one of the center pieces of the mega-project reinvigorating Downtown Miami including being the main point of drop off with Miami Worldcenter’s main public plaza located adjacent to the immediate north and being one of the developments 2 main parking garages. Block H will feature 48,000 SF of retail and restaurants split between floors 1, 2 and 12 with 922 parking spaces filling the rest of the development.

Miami Worldcenter is a $2 billion mixed-use mega-project coming to Downtown Miami led by Art Falcone, Nitin Motwani. 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.  

Joint Venture Led By Related Group Reveals The Dorsey In Wynwood Designed By Arquitectonica

A joint venture between Jorge Perez’s Related Group, Alex Karakhanian, and Tricera Capital, led by Scott Sherman, have revealed plans for The Dorsey in Wynwood. The Dorsey is being designed by Arquitectonica and when complete will rise 12-stories and will feature 306 apartments, 35,858 SF of retail space and 58,760 SF of office space. The Dorsey will be built at the site of the former Coca Cola plant and was previously owned by Thor Equities and Rockwood Capital who had proposed a Touzet Studio-designed project. The JV, which purchased the 2-acre site in late 2019 for $32 million, has obtained a permit to demolish the existing buildings on the site, some of which were originally built in the late 1920’s. Miami’s Urban Development Review Board will review the proposal on December 18. The Dorsey will be located at 280 NW 28th Street.

Palm Beach Approves Plan For Luxe Condo Atop Tiffany & Co. Building On Worth Avenue

The Town of Palm Beach has approved plans for a luxury condo atop the iconic Tiffany & Co. building on Palm Beach’s Worth Avenue, one of the ritziest, most expensive streets in the United States. The addition would include the conversion of the existing 2nd floor as well as adding a 3rd floor spa and pergola which would not be visible to pedestrians on the street. The condo conversion was designed by Keith Spina and when complete will offer buyers a 10,000 SF spread complete with the 3rd floor terrace. The proposal comes on the heels of Tiffany & Co. downsizing to only the ground floor where they plan a major renovation. The project’s final design is still pending a few approvals though as the Town of Palm Beach deferred a decision until December 2019 on a variance to increase the allowable lot coverage of the 3rd floor to 33% from the allotted 25%. The Tiffany & Co. building is located at 259 Worth Avenue and was purchased in late 2018 by Fortress Investment Group for $20 million.

CIM Group & OneWorld Properties Go Vertical At Mixed-Use Wynwood Square

Two tower cranes are now installed at 2201 N Miami Ave. where CIM Group and OneWorld Properties have gone vertical with the Stantec-designed Wynwood Square. When complete the mixed-use development will feature 2 towers rising 12-stories complete with 257 residential rental apartments complete with a full suite of amenities, 60,000 SF of office space, 27,000 SF of ground floor retail and 480 parking spaces. The development partnership was able to lock-down a $71.2 million construction loan from Sumitomo Mitsui Banking Corporation and completion is expected at one point in mid-2021.