To ensure delivery, please add email@example.com to your address book, learn how
July 10, 2014
Spec Industrial Surge
Spec industrial development's heated up this year, mostly in Miami-Dade. But now other South Florida markets are getting a piece of the action. (Sorry, Miami-Dade, you have to share.)
Demand is growing in the West Palm Turnpike corridor, McCraney Property Co CEO Steven McCraney says, as job growth and residential development strengthen. Not much has been developed there for years, and that dynamic has allowed McCraney to pull the trigger this week on a 100k SF warehouse/distribution project in its Vista Business Park project in West Palm Beach, the first for the park in five years. Snapped: Steven (in yellow) at the summit of Aconcagua, the highest mountain in the Western Hemisphere at nearly 23k ft. (His goal is to climb the highest peaks on every continent.)
Initial interest from prospective tenants has been strong, Steven says. The project consists of two buildings on more than seven acres, featuring spaces from 10k SF to 100k SF. The buildings will have clear heights of 24' and depth of up to 130'. Edwards Construction Services is the GC, with financing provided by City National Bank.
While local demand is driving spec in places like West Palm Beach, international trade and major infrastructureprojects are still driving Miami-Dade. This week, Chicago-based Bridge Development closed on 17 acres at NW 112th Avenueand 146th Street in Hialeah Gardens for the development of its 242k SF Bridge Point Crossroads West. The company is eager to build more industrial in South Florida, because the demand is rising for new product, principal Kevin Carroll tells us. (It's also probably been scarred by the winter and wants to be here to warm up.) This will be the third spec industrial building by Bridge in South Florida over the past 12 months; the other two are in Broward.
Retail Refi Rolls On
South Florida Class-A retail's recovery is so complete that refinancing is once again the relatively smooth process that it used to be, says Aztec senior managing director Howard Taft (right, with colleague Charles Penan). The two recently secured an $11M first mortgage for the 81k SF Sunset Strip Plaza in Kendall (a seven-year term, 3.8% fixed interest rate, and 70% LTV). It's the latest example of well-located assets securing sound financing, Howard says, provided the tenant mix is good. Sunset Strip Plaza is anchored by Presidente Supermarket, and Sherwin Williams and Family Dollar are also tenants. He says he expects to execute a lot more deals like this.
No Slowdown in Overseas Buyers
Overseas buyers aren't losing interest in South Florida, ONE Sotheby's International Realty's Jonathan Garcia tells us. If anything, they're more interested as the US dollar depreciates against various other currencies (the Brazilian real, for instance, has grown stronger in the last six months; soccer has that effect). But it's also for less tangible reasons: For one, they want to be part of the Miami renaissance, Jonathan says. The overseas interest is also keeping prices buoyant. He recently repped ONE Bal Harbor in the sale of a unit in the property for $4.5M, making it the highest-price, three-bedroom ever to sell there.
Storm Front Coming
Hurricane season is upon us, and that means Arthur and his ilk. The 2014 CoreLogic Storm Surge Report, which was released today, has quantified the risk to South Florida properties, and it turns out that metro Miami-Dade is once again No. 2 in the country, topped only by greater New York (Tampa, Virginia Beach, NC, and New Orleans rounded out the top five.) Roughly 562,000 Miami-Dade properties are potentially affected by all categories of hurricanes, with a total structural value of $103B, give or take a few mil.
4th Bisnow Video
By popular demand, Bisnow Education offers a 4th instructional video for those of you looking to make a killing in the real estate game:
"How to Value Property."
Peter Linneman, founder of the Wharton School's real estate program, shares his unparalleled knowledge on the topic, and such issues as:
the difference between net operating income and cash flow
subsidized vs. unsubsidized properties
discounting cash flow
CAP rates, in depth
and numerous other topics
All for just $59, but wait – there's more: Purchase all four Bisnow Education videos for the incredible price of $149 and we'll send you an exclusive Peter Linneman mouse pad! Just kidding. This isn't QVC—yet.
No, knowledge and sophistication will be your rewards. Even if you're a world-weary real estate vet or investor, you'll find fresh insight and new angles that will re-ignite your brilliance; and newbies will be able to digest the information in bite-sized, five-minute spoonfuls that will go down like candy.