This Week’s South Florida Deal Sheet
Royal Caribbean has inked a new, $2.8B deal with PortMiami to expand its operations and build a new terminal.
The deal would see the development of a new Terminal G to be used exclusively for Royal Caribbean and its affiliates, such as Celebrity Cruises, as well as the resumption of the development of the cruise line's global headquarters at the seaport, which was paused during the pandemic, Florida Politics reports.
The lease for the terminal is set for 36 years, while the lease at the headquarters is slated to run for 50 years. Royal Caribbean will also have access to another terminal lease by MSC Cruises slated to be delivered in October 2028 called Berth 10.
Additionally, Royal Caribbean is resuming construction of its global headquarters complex, which is also included in the deal. The redevelopment of Royal Caribbean’s global HQ site began before the Covid-19 shutdown. The company extended its lease until 2072, per Florida Politics.
Miami-Dade County Chief Operations Officer Jimmy Morales confirmed in a statement that three seven-year renewal options are included in the terminal lease. The global HQ site lease offers two five-year renewal options.
Expansions have been taking place in various of the busiest ports around the country, as a response to distribution challenges that date back to the early days of the pandemic in 2020. As Bisnow reported in September, major U.S. ports are expanding thanks to an infusion of more than $1B in federal funding.
***
Industrious is expanding its presence in the South Florida market. The New York-based flexible office firm announced Wednesday it plans to open two additional facilities in South Florida.
On the Aventura/Hallandale Beach border, Industrious agreed to occupy 31K SF at the Optima Onyx Tower on Biscayne Boulevard. It plans to open at the 28-story building in the third quarter of 2023.
Industrious also secured 44K SF in Downtown Fort Lauderdale at 200 East Las Olas on Las Olas Boulevard The Las Olas office is slated to open in 2023’s second quarter.
Before the year ends, the flex space provider plans to debut a 30K SF space in the Esplanade at Aventura near the Aventura Mall, the South Florida Business Journal reports. In Brickell, Industrious is planning to add nearly 13K SF to its existing 45K SF hub inside the Sabadell Financial Center at 1111 Brickell Ave. This was the first coworking office space Industrious launched in South Florida in March 2019.
SALES
Pantzer Properties has acquired an apartment building in the Mimo Biscayne Boulevard Historic District for $175M, The Real Deal reports.KKR provided Pantzer a $110.4M mortgage on the property. Cushman & Wakefield represented the sellers, Miami-based developers 13th Floor Investments and Tricera Capital. Connecticut-based Wexford Capital was also a partner on the deal.
The building, dubbed The Boulevard, offers studios to three-bedroom units. Rents average between $2,415 and $5,510, per a recent listing on Apartments.com. In 2017, 13th Floor and Tricera paid $19.5M for the 2.3-acre development site.
***
Focus Development has acquired Brickell’s Starlite Motel East for $28M. The Chicago-based firm bought the two-story, 60-room motel from Optimum USA Brickell 2 LLC, the South Florida Business Journal reports. Walker & Dunlop represented Focus Development in the deal. Wintrust Bank provided Focus Development with a $17.5M acquisition loan to secure the property, which last sold for $24.8M eight years ago.
The 33K SF Starlite Motel East, which was built in 1995, is slated for redevelopment. Back in April, Optimum USA Brickell 2 LLC filed for a demolition permit, The Next Miami reports. Focus Development is said to be planning a 300-apartment complex on the site, which is adjacent to Brickell City Centre and 830 Brickell.
***
Related Cos. has acquired the Monterra affordable apartment complex in Broward County for $55.5M from ZOM Living and NRP Group, The Real Deal reports.
The 300-unit garden-style complex at 2601 Solano Ave. in Cooper City was built in 2012 and sold for roughly $185K per unit. ZOM Living and NRP Group bought the 12.6-acre site in 2011 for $3.4M.
ZOM Living and NRP Group financed the construction costs through the Low-Income Housing Tax Credits, a government program that helps subsidize construction costs. Rents fall between $776 for a one-bedroom unit to $1,300 for a three-bedroom unit.
