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Gastro Health Joins Growing List Of Tenants At Recently Completed Aventura Medical Tower

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The Faith Group has recently added another signature medical group to its Aventura Medical Tower development.

Gastro Health, which specializes in the treatment of gastrointestinal disorders, nutrition and digestive health will be taking a 2,000-square-foot space in the Class A medical office building located within the Aventura Hospital district.

FIP Commercial represented the Landlord in the transaction and Carol Ellis Cutler of CBRE represented the tenant.

“As a result of having the Gastro Health Group in our other medical building in North Miami Beach (Venture Center), there was a great working relationship already in place and it made perfect sense to have them as part of the tenant mix in our Aventura Building,” commented FIP Commercial President/Broker Roy Faith. “Our in-house construction division will be handling the build out from A to Z and we are excited to deliver an exceptional space to them as soon as we can. There will also be some exciting announcements made in the next few weeks as to who else will be joining the building.”

 

Aventura Medical Tower was recently completed as a true Class A medical condo building and some purchase and lease opportunities remain. Please contact FIP Commercial for more information at 305.438.7740 or contact Roy Faith at Royfaith@fipcommercial.com or Julian Huzenman at Julian@fipcommercial.com.

 

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Multi-Use Redevelopment Of Wynwood Industrial Sites OK’d

A set of interconnected buildings is designed to bring a mix of residential, retail and office uses to a block in Wynwood, along with major murals and other art treatments and a large courtyard.

With a current title of Dorsey, the major mixed-use project is proposed by developer Weck 29th LLC for land at 2562/268/286 NW 29th St. and 2801 NW Third Ave.

The City of Miami’s Urban Development Review Board voted unanimously to recommend approval.

The venture is being touted as “a true live, work, and play environment.”

Designed by architectural firm Arquitectonica, Dorsey is to rise to 12 stories and include a building at eight stories, surrounding a landscaped courtyard for pedestrian mobility and activity.

The entire development will amount to 604,110 square feet, be home to 306 residences, 35,858 square feet of commercial-retail uses, 58,760 square feet of offices, and have parking levels to hold about 521 vehicles.

The site plan shows projected open space amounting to 16,293 square feet.

The property currently consists of industrial structures and surface parking, according to a letter to the city from Iris Escarra, an attorney representing Weck 29th LLC.

The site includes two adjoining properties with different zoning classifications, along with a special Neighborhood Revitalization District, or NRD-1 overlay, and a land designation of general commercial.

Approximately 32,831 square feet or .75-acre is zoned T5-0, and 56,030 square feet or 1.29 acres is in the T6-8-0 zoned area.

Ms. Escarra said the property fronts Northwest 28th Street to the south and Northwest 29th Street to the north, comprising the property’s principal frontages. Northwest Third Avenue abuts the property to the west, and also serves as a principal frontage.

“The proposed project is an infill project adjacent to two highly traversed streets, NW 29th Street and NW 3rd Avenue,” she wrote. “The Property is located within the Wynwood neighborhood, which has seen a rapid growth over the last few years as it transforms from an industrial neighborhood to an arts and culture destination. The Project seeks to redevelop the industrial structures and provide Residential, Office, and Commercial Uses throughout the Property.”

Discussing details of the project with the review board at its December meeting was attorney Brian A. Dombrowski, also representing the developer, who introduced architect Raymond Fort.

The review board’s liaison, city planner Joseph Eisenberg, gave a background report on the project and noted that the NRD-1 gave the body broader review authority.

This project was also reviewed by the Wynwood Development Review Committee, which granted conditional approval Nov. 12, including asking the applicant to reconsider the proposed artwork screening on the northern garage levels, Mr. Eisenberg said.

Mr. Dombrowski said the developer is excited to bring this mixed-use project to a former industrial site in Wynwood with three frontages.

“We have a large courtyard,” he said, “retail uses on the ground floor, and a large pedestrian crosswalk … it fits the work-live-play vision, and there will be a lot of art opportunities.”

Mr. Fort showed site plans and project renderings, noting the design took into account promoting walkability in the neighborhood.

The architecture also uses rectangular cubic forms and alternating colors to help break up the façade, he said.

There’s not much shade in Wynwood, said Mr. Fort, so the site plan calls for bringing some shade trees in with a landscaping plan that includes palms and evergreens.

Board member Ligia Ines Labrada said the presentation was nicely done and she commended the developer’s team for providing access and cross sections with plenty of retail frontages, which she said will create a phenomenal urban experience.

“I have nothing but compliments for the project,” she said.

Board member Robert Behar said, “I also like the project. You’ve done a very nice job with it.”

Board member Ignacio Permuy was also a fan, commending the “exceptional” design.

“Terrific job,” was the assessment of board member Willy Bermello.

“I’ll vote for it. I really like how you resolved every aspect … I like the massing and articulation, particularly on the ground floor … I don’t have any concerns or objections,” said Mr. Bermello.

But board member Neil Hall was critical of the project. By bringing residential into Wynwood in this fashion, he said, “you destroy the brand.” It goes against the years of work to develop this neighborhood as a special area for “creativity and funkiness,” Mr. Hall said.

“The building you created looks more like it’s coming out of New York – I don’t see a Miami theme …,” Mr. Hall said. “The same thing happened in Midtown. We put up 30-story buildings and destroyed the feeling of Midtown.”

Board member Fidel Perez differed from Mr. Hall.

“You did an excellent job breaking up the uses,” Mr. Perez said. “This project is really well designed.”

 

Source:  Miami Today

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Boomtown: Miami Has Been Named One Of America’s Top Growth Cities In A New Analysis

Strong economic and population growth led financial site Smartasset to name Miami as one of America’s top boomtowns.

Miami ranked fourth nationwide in the analysis, and was the top big city.

Analysts looked at government data from 500 cities for the ranking.

Here is how Miami scored in key metrics:

  • 5 year population change increase of 9.43%
  • 5 year average yearly GDP growth of 3.39%
  • 5 year change in number of establishments 8.79%
  • 5 year housing growth rate 10.11%
  • 5 year change in median household income 31% (second highest in the top 10)

 

 

Source:  The Next Miami

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Berkadia’s Charles Foschini On The Florida CRE Market

Berkadia’s active presence in Florida’s CRE debt scene owes no small part to Charles Foschini, who co-heads its originations in the state from the company’s office in downtown Miami. The University of Miami graduate, who spent nearly two decades at CBRE, has led some of Berkadia’s biggest Florida deals since he joined the company in 2016. Among them is a $121.5 million acquisition loan that helped Parkway Properties and Partners Group buy a set of six Tampa office buildings late last month. The firm has also been a key player in multifamily capital markets, putting it on the cutting edge of Florida’s changing demographics.

Foschini spoke with Commercial Observer by phone to discuss everything from the Sunshine State’s sunny skies to its business climate, transportation struggles and even its school system.

Commercial Observer: In a nutshell, what are your responsibilities at Berkadia?

Charles Foschini: I co-lead Florida operations in both a management and production role. I focus on a group of clients [for whom] I do a fair amount of their business … and that runs the gamut of any of their capital-market needs, from permanent loans to construction loans to bridge loans.

Florida’s shown a lot of momentum lately — throughout the state, but particularly around Miami. What do you see as some of the driving factors?

When I studied at the University of Miami, it wasn’t lost on me that the temperature was 78 degrees all the time. It’s a very enviable place to live, work and play. But you have to layer over that that our last two governors [Ron DeSantis and Rick Scott] have been very pro-business. We’ve had a lot of growth in the medical sector and a lot of employment growth. It’s not just a tourism economy anymore.

Berkadia has been a force behind some significant multifamily debt deals in the state this year. How is the state’s apartment market evolving?

We’re seeing unrelenting population growth and immigration to the state, and we’re seeing a continued evolution of employment. Some of the bigger submarkets have a lot of transportation challenges. Those factors have formed a confluence to create a need for multifamily near where people are going to work. That’s created a lot of new developments in suburban and urban markets. What’s more, the individual credit consumer has been harder to come by: Not as many people have been buying houses in this cycle. That has created a renewed demand for lifestyle residential, where people can get all the amenities that you couldn’t frankly afford or justify in your own home.

Reforms to Fannie Mae and Freddie Mac have been a never-ending discussion in Washington. Do you have any concerns?

Fannie and Freddie have been market leaders in multifamily finance, and they have very healthy allocations for 2020. I expect that to continue. But having said that, the economy and capital market side is extremely vibrant. You have CMBS lenders, banks, life companies and debt funds, all of which are available to a borrower in any given transactions. They’ll continue to have a significant market share in multifamily, too.

You mentioned some transportation challenges. Do you think the state’s urban areas need to become more commutable?

The demand for a live-work-play lifestyle is fueled both by millennials as well as those folks that are selling homes and moving back to the cities. They want to have everything in one place. The new Brightline train [which now connects Miami and West Palm Beach, Fla.] is so much more convenient than it was 20 years ago when you had to get in your car and commute. As South Florida and particularly Miami evolve as 24-hour cities, that means you have 24-hour traffic. Mass transit is a solution to that.

You mentioned that the state’s politicians have fostered a business-friendly reputation. How specifically has that helped drive new investment in the state?

One of Berkadia’s technology tools looks at IRS tax payments from one year to another. You can pick somewhere in the Northeast — anywhere in the Northeast — and look at the tax migration. For example, if you paid your taxes in 2018 in Connecticut and then in 2019, you paid your taxes in Florida, that net migration has been measured, potentially, in billions of dollars, and that’s continuing. In many cases, the Northeast is losing out to where it’s easier to live, easier to do business and where overall taxation on the same work dollar is lower. Florida is a huge beneficiary of that. Then there’s the fact that submarkets like Orlando and Tampa have very, very nice campus-style offices that rent for a lot less per square foot.

People often speak of talent pools as one of the deepest strengths of gateway cities like New York and L.A. How is Florida doing on that front?

I would say it’s evolving, and not fast enough. Our private school systems are exceptional. The Florida state schools are getting better. Five years ago, most of them didn’t have real estate programs, but now they all do. But the public school systems here for primary grades are not evolving fast enough. As our population grows, they’re not evolving at a pace to support that population. So that’s a challenge that municipalities continue to address.

 

Source:  Commercial Observer

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Hospitals Across US Investing In Real Estate To Help With Homelessness, Mental Health

Some hospitals are getting into real estate.

The reason? Cut skyrocketing healthcare costs and improve patients’ prognoses.

Peg Burnette, Chief Financial Officer at Denver Health, says they have about 30 patients a month who do not have somewhere to go after treatment at the Level 1 trauma center. Reasons range from homelessness, to dementia, mental health and other problems. Having a safe discharge is required. Generally, hospitals cannot simply push patients out the door because of ethics, malpractice and Medicare rules.

“Insurance will not pay after a patient’s immediate needs have been treatet,” Burnette says, “We could be receiving revenue from a patient who needs hospitalization, but instead. we’re covering the cost of that patient occupying a bed.”

That means fewer available beds to the community when someone cannot be discharged.

Denver Health has partnered with Denver Housing Authority to renovate and reopen a dormant building on the hospital campus. When complete, it will be low income senior housing, but a floor will be leased back to the hospital.  Fifteen units will be dedicated to people occupying beds at Denver Health. After their hospital stay, they will be temporarily placed on the floor, while permanent housing is coordinated.

Each stay runs an average of $2,700 a day at Denver Health. As a safety net hospital, it has a mission to take care of all patients, regardless of ability to pay. The hospital has crunched the numbers. Providing transitional housing will save quite a bit, considering patients in limbo have overstayed anywhere from a dozen to more than a 1,500 extra days. Temporary housing will cost $10,000 a year, per resident.

“The first step is to identify those in unstable situations,” Denver Health Hospitalist Physician Dr. Sarah A. Stella said. “Information given at admission can be inaccurate and the signs are not always obvious. They know you can’t fix it, but they appreciate being asked. And asking about that leads us to take better care of people. Recovery continues after the hospital stay. It can be much more difficult to heal or manage chronic conditions if patients are worried about their next meal or sleeping on the street. When I see patients who are controlling their diabetes or doing a pretty good job of it, despite their homelessness, I want to give them a big hug. I want to give them a medal, because that is really an impossibility.”

University of Illinois Hospital & Health Sciences System (UI Health) has also put money into the housing problem. Its Better Health Through Housing partnership with the Center for Housing and Health started with $250,000. It works to move patients from emergency rooms into housing with “intensive case management.” The pilot started with 26 patients and by next year, it expects to house 75 patients.

Dr. Stephen Brown, Director of Preventive Emergency Medicine at University of Illinois Hospital in Chicago, echoed the same concern as Dr. Stella in Denver.

“Homelessness tends to be invisible in health care,” Dr. Brown said.

Brown noted that hospitals operate on thin margins and do not go looking for problems,

“But if you begin to document it, you will find it. And if you find that, you have to do something about it,” said Dr. Brown.

The hospital went through its records dating back to the late 1990s and found evidence of 10,000 patients believed to be homeless. According to research cited in a report by the American Hospital Association (AHA), health inequities are projected to cost the health care system $126 billion by 2020.

“On average, those with unstable housing have a life expectancy 27 years less than those with stable housing.” says AHA Chief Medical Officer Dr. Jay Bhatt.

AHA’s Hospital Community Cooperative Program is working in 10 markets across the country to address social needs.

“Investing in housing solutions could help cut down on burnout among providers because care teams can see patient success,” Bhatt adds,

As for the future of programs like the one in Chicago, Brown said he envisions coordinated care across the criminal justice system, first responders, city agencies and more.

“We’re just a hospital and we’re a player in this,” Brown said. “But it really requires a cross-sector approach to solving this really kind of wicked problem in society.”

In the end, these initiatives can save money for all patients and taxpayers.

“When we have patients who we don’t have funds to cover, we have to receive more money from insurance and there’s been a lot of talk about the cost shift,” Burnette said. “As consumers, we want to pay lower premiums and I think this is a good way to start to get at that issue.”

Click here to view Fox News video ‘Hospitals Across The Country Look To Expand Housing For Homeless Patients

 

Source: Fox News

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Multifamily Investors See This As ‘The Biggest Risk To Our Industry’

Local governments from New York to California have moved forward with new rent control laws this year in an attempt to address the housing affordability crisis. But multifamily investors say the laws are pushing them away from those markets, and they fear the trend could spread to other cities.

New York in June passed a law expanding rent regulations that affect nearly 1 million apartments in New York City, which was widely condemned in the commercial real estate industry. Oregon in February passed the nation’s first statewide rent control bill and California followed suit last month with passage of its own statewide rent control law.

TruAmerica Multifamily co-Chief Investment Officer Matt Ferrari, whose firm has over 40,000 units under management across 11 U.S. states, including California and Oregon, said the new laws are hurting those markets. He said they disincentivize owners from renovating properties, depress property values and decrease investment. He said he already sees capital fleeing those markets, and he is worried about more markets expanding rent control.

“It’s probably the biggest risk to our industry is this having a contagion effect from these deep blue states, New York and California, and eventually spreading across the country,” Ferrari said Thursday at Bisnow’s Multifamily Annual Conference East in D.C. “It could really impact our business long term.”

D.C. is currently considering expanding its rent regulations. The District has a law in place that passed in the 1980s and regulates rent for about 80,000 apartments built before 1975. But that is down significantly from a peak of 130,000 rent-controlled units, and the remaining 80,000 could become market-rate units next year if the D.C. Council doesn’t extend the law.

Council Member Anita Bonds, who chairs the D.C. Council’s housing committee, introduced a bill to extend the rent regulations to 2030 and is scheduled to hold a hearing on it Wednesday. In addition to expanding the program, activists are calling for the D.C. Council to adopt more aggressive rent control measures that would lower the rent increase cap, cover all buildings constructed before 2005 and make all new units subject to rent control after 15 years.

The D.C. Building Industry Association has come out against these proposals, arguing it would make it harder for the city to reach Mayor Muriel Bowser’s goal of building 36,000 new housing units by 2025.

“Rent control exacerbates the housing shortage because it does not do anything to address why rents are rising,” DCBIA CEO Lisa Maria Mallory wrote in a Washington Business Journal op-ed last week. “The one issue that nearly every economist agrees is that rent control just makes housing worse.”

Some investors are already shying away from the D.C. area for fear of new rent control laws, Melnick Real Estate Advisors founder Scott Melnick said. He said he recently had a buyer seeking to invest $110M as part of a 1031 exchange deal, and they limited their search to less-regulated states like Georgia, Texas and Florida.

“We’re seeing people want to skip over this region because they know it’s coming,” Melnick said of rent control. “Investors now are not just looking at the House and the Senate, they’re looking at the county council and how it’s made up to see what’s coming.” Harbor Group International Director of Acquisitions Matt Jones, whose firm has a nationwide portfolio of 33,000 multifamily units, also said he expects stronger rent control laws to be enacted in the D.C. area.

 

“We’re definitely seeing capital that used to be New York City multifamily-focused fleeing that regulatory environment,” Jones said. “My view is that regulatory environment is following them down I-95, and we’re not a decade away from those concerns in many of the markets down here.”

FCP principal Jason Bonderenko said several of his recent deals have involved buyers fleeing the New York City market, likely because of rent control.

“I can tell you we recently sold properties in Philadelphia, [D.C.], Atlanta, the Carolinas, and it was all New York buyers on all those deals,” Bonderenko said. “That trend is happening in a very big way.”

The Donaldson Group CEO Carlton Einsel, whose portfolio is largely concentrated in the D.C. area, said politicians support rent control because they want to appear to be tackling the affordable housing issue, even if most economists agree it is not an effective solution. He said it is up to commercial real estate leaders to come up with better solutions to the problem before more governments enact rent control.

“There is an affordable housing issue, and as an industry we have to do something to help solve it, because if we can’t, it will be solved for us by politicians that are going to do rent control,” Einsel said.

Jefferson Apartment Group CEO Jim Butz said he sees housing affordability and rising rents in major cities as an important issue, but he said cities trying to address it with rent control laws are only creating new problems. He is worried about the increased regulations spreading across the East Coast.

“One of the bigger trends we have to be careful about in Washington, in Philly, obviously in New York, and a little bit in Boston, is rent control,” Butz said. “That would potentially shut down the market and really put a chill on institutional investment.”

Morgan Properties President Jonathan Morgan, one of the region’s most active multifamily buyers in recent years, said rent control measures are forcing investment firms like his to expand to less-regulated markets.

“We’re concerned about rent control as well,” Morgan said, after hearing several other investors express their concerns. “The affordability issue in this country is not going away any time soon, but rent control I think is the wrong solution … it’s making a lot of the owners like us and others invest in new markets.”

The criticism of rent control at Thursday’s event was not limited to investors that own apartments — a federal government official also referred to the local laws as having harmful consequences.

Department of Housing and Urban Development Deputy Chief of Staff Alfonso Costa Jr. cited reports from the National Multifamily Housing Council and Stanford University that detail the negative impacts of rent control.

“Although rent control in the short-term might reduce displacement, it can have a very deleterious impact on housing supply and prices,” Costa said. “You have landlords that are going to be less likely to address capital repair needs, that will defer maintenance and will turn their rental units into owner-occupied units and sell them. Ultimately it can have a very adverse impact and unintended consequences.”

Costa joined NHMC CEO Doug Bibby and U.S. Sens. Chris Van Hollen (D-MD) and Todd Young (R-IN) on the event’s keynote panel. The senators did not discuss rent control, but stay tuned for more coverage on the ideas they raised to address housing affordability.

Source:  Bisnow

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