The Real Deal’s Miami Forum, our largest event, is coming up on Wednesday and Thursday. Here’s our annual primer on what you need to know about the market going into it:
- Developers continue to reveal plans for condo towers from Miami to West Palm. The majority of projects are branded, and even though there are more than 40 brands across the tri-county area, we’re still reporting on new-to-market branded projects.
- Similar to the resale residential market, the ultra high-end is performing better than other price points. When it comes to the resale market, older condos in buildings that lack sufficient reserves or require a ton of work are struggling. On that note, condo buyouts are still tricky and still happening (or at the very least, attempted).
- The focus is on wellness amenities and programming, from luxury condo buildings to Class A office developments to experiential retail.
- The Florida Legislature’s preempting of local governments’ power is having a direct effect on developers and contributing to the rise in NIMBYism we’re tracking across South Florida.
- The Fed’s interest rate hike has resulted in deals falling apart, across sectors. The multifamily market has started to shift back in favor of landlords, but the sector’s recovery remains fragile and uneven.
- When it comes to retail, big money continues to pour into high-end and suburban shopping centers. Extra points if they’re anchored by grocery stores like Publix.
- While South Florida is still in demand for luxury office users, overall office leasing is kind of flat. The headline leases continue — many are for family offices, private investment and financial service firms.
- Banks continue to stay away from issuing big loans, but alternative lenders like Adi Chugh’s Tyko Capital and the private equity firm Madison Realty Capital are active, providing construction loans totaling over a billion dollars in recent months.
Overall challenges remain, including the high cost of living, long wait lists for private schools, and a limited labor pool. But huge deals continue to offer fresh momentum, such as Ken Griffin’s $1.1 billion purchase of Mana Wynwood, where the Miami Forum will be held this year. The property will be redeveloped into a satellite campus for Carnegie Mellon University, marking the next shift in Wynwood’s transformation.
What we’re thinking about: E11even developer Marc Roberts sent a mass email urging Floridians to pressure Gov. Ron DeSantis to block Islamic center developments in South Florida. How does Roberts’ anti-Muslim rhetoric affect his business? Send me a note at kk@therealdeal.com.
Residential: In Hillsboro Beach, philanthropists Richard Compton and Mary Compton paid $37.1 million for a 13,000-square-foot property at 999 Hillsboro Mile. The deal worked out to $2,875 per square foot. The seller was Wilson Terra Firma LP, an affiliate of Canadian commercial real estate firm Wilson Terra Firma Holdings.
Commercial: A joint venture between TPG Equity REIT, UBS Realty Investors and Mill Creek Residential sold the 26,380-square-foot lot at 2100 North Bayshore Drive to an affiliate of North Development for $32.8 million. The price equated to $1,240 per square foot.
— Research by Mary Diduch
The waterfront mansion at 600 Northeast Fifth Avenue in Boca Raton hit the market for $125 million. The nine-bedroom, 18-bathroom home, on more than 2 acres, was completed last year. It’s owned by Los Angeles Dodgers owner and developer Frank McCourt. The property is on the market with Douglas Elliman’sMaria Mendelsohn.
Douglas Elliman agent Raymond Jacomo died on Oct. 22 at the age of 51. Jacomo worked closely with his wife, Elliman agent Tracy Galya. Jacomo received Elliman’s Rookie of the Year award for 2021-2022, and the brokerage’s Tom Ferry award a year later. He handled sales of multimillion-dollar condos along the coast. Jacomo is survived by his wife, his kids, his parents and his sister, according to his obituary. A cause of death was not named.
Besides the high-profile governor’s race, Floridians will decide the fate of a number of key real estate-related referendums, including the property tax cut measure, Amendment 3.
In Miami, voters will decide on the fate of the city’s proposed lease with Virginia Key LLC, a joint venture between RCI Marine Group and Suntex Marinas. The lease would give the joint venture control of 27.6 acres encompassing the Rickenbacker Marina and Marine Stadium Marina properties, with a 45-year initial term and two 15-year renewal options.
In Deerfield Beach, three charter amendments are on the ballot, including one allowing the city commission to lease or sell city-owned land without voter approval.
Read about the other real estate-backed races and ballot measures here, and follow along our election coverage this week.
