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ULI Offers Some Climate Change Solutions For Miami’s Commercial Properties Along The Waterfront

To protect commercial properties along the waterfront in downtown Miami and by the Miami River, city officials and the real estate industry should implement natural lines of defenses, consider using less ground floor space for commercial uses, embrace transit-oriented, mixed-use projects and identify funding resources for large-scale flood mitigation projects similar to the Thames Barrier in London.

Those are some of the recommendations made by a 10-member panel of the Urban Land Institute, or ULI, brought on by the City of Miami and the Miami Downtown Development Authority to figure out ways to make the urban core more resilient to climate change.

The panel’s final report came out this month. It focuses on strengthening the Biscayne Bay waterfront as Downtown Miami’s first line of defense against rising seas, transforming the Miami River into a mixed-use district that bridges the gap between the water and surrounding neighborhoods such as Little Havana and Allapattah. The report also recommends creating incentives for responsible development along an inland ridge of high-lying ground.

“The Urban Land Institute’s preliminary findings provide us with a roadmap for enacting design, infrastructure, zoning and financing strategies that will ensure Miami sustains its growth as a world-class city – not for years, not for generations, but forever,” said Miami City Commission Chairman Ken Russel, who also chairs the Miami DDA. On Nov. 21, commissioners passed a symbolic resolution declaring Miami is an a state of climate emergency.

The ULI recommends city officials adopt living shorelines along the Miami Baywalk and Riverwalk, study the development of an iconic tidal gate for the Miami River, use the city’s transfer of development density program to give builders incentives for building in less flood-prone areas and update the downtown Miami master plan to incorporate building streets and sidewalks at a higher elevation.

According to the ULI report, commercial properties in Miami’s urban core, which includes retail storefronts, offices and large apartment buildings, comprise $21.1 billion in taxable value. Roughly $5 billion of that value exists with a quarter mile from Biscayne Bay and the Miami River.

Since 2009, a total of $13.1 billion was invested in commercial property in the Miami central business district, indicating an active market, the ULI report states. The ULI panel largely agreed that the city’s current waterfront guidelines lack overall flexibility, have some problematic design requirements, and do not allow for elements, such as terracing, that could address storm surge.

 

Source:  Forbes

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Miami Lost Amazon’s HQ2. Still, The Area Looks More Attractive Than Ever, Experts Say

South Florida’s bid to attract Amazon’s HQ2 when it came to landing the big prize. But in a panel discussion Tuesday, regional leaders said the bid process itself has galvanized the tri-county area to think and work more collaboratively.

“This process showed an extraordinary level of regional cooperation, done in a record amount of time,” said urbanist Richard Florida, who led the discussion of the panel, “What Did We Learn From Our Amazon Adventure.”

The panel, which drew about 80 attendees, was produced by the Miami Herald, the Downtown Development Authority and Florida International University’s Miami Future Urban Initiative, which Florida leads. It was hosted by the Miami-Dade Beacon Council.

Michael Finney, Beacon Council president and CEO, echoed the sentiment. He recounted how he’d initially hesitated about approaching Miami-Dade Mayor Carlos Gimenez about the idea of a region-wide pitch — only to find Gimenez was fully on board with the idea.

“It was clear that the young folks working for Amazon, some significant portion would want to live in Miami, even if Palm Beach or Broward won the site,” Finney said. “There was an incredible potential for a win-win.”

As part of the ongoing regional collaboration, the Business Development Board of Palm Beach County (BDB) will be hosting a tri-county executive leadership meeting in Palm Beach County Friday, Feb. 15. The meeting will be composed of the executive board members of the Beacon Council, the Greater Fort Lauderdale Alliance, and the BDB.

Few new details about Miami’s bid emerged Tuesday. Finney said a total of 54 South Florida business, academic and political leaders had signed nondisclosure agreements in the run-up to the bid. Seven of the nine Amazon delegates who met with Miami’s delegation were “millennials” and showed particular interest in advanced-degree and post-graduate opportunities (along with happenings in Wynwood and the Design District).

Shereena Coleman, vice president of business facilitation and The Glades region at the Business Development Board of Palm Beach County, which participated in the Amazon bid, said South Florida has still not conquered its longstanding brain-drain problem. Last year, from real estate group CBRE showed more tech graduates were moving out of Miami-Dade than coming in — although that was not the case for Broward.

“No one is coming here if the talent isn’t here,” she said.

Speaking as the lone non-South-Floridian on the panel, John Boyd — a relocation specialist and resident of Princeton, New Jersey — said that the Miami metro’s inclusion on Amazon’s finalist list was nevertheless a signal that other companies like Amazon — and perhaps even Amazon itself — would now bump the Miami metro region up on its list of relocation landing spots.

A spokesperson for Amazon did not immediately respond to a request for comment.

Still, other firms are now taking notice, and all panelists said they had seen an uptick in relocation interest as a result. “We now have a treasure trove of sorts, of people paying attention to what’s happening in Miami,” said Finney.

Boyd added that the biggest recent development for South Florida’s reputation in the corporate world was the advent of Brightline, now rebranding as Virgin Trains USA. Relocation promoters and companies are focusing on “regionalization,” including assets that may not be physically close but which can be easily reached. The ability of Brightline to connect the tri-county area will prove a key asset, he said.

“Miami is considered a world class city now,” Boyd said. Brightline “now puts it in the minds of global executives.”

At the local level, the construction of Miami Central Station means the beleaguered, inter-county Tri-Rail line will finally have a downtown destination. That will open up the region to everyday commuters, said Nitin Motwani, managing principal of Miami Worldcenter, a major real estate project downtown, and co-chair of the Downtown Development Authority’s economic development committee.

Motwani said the bid had the effect of breaking “the invisible line” that many South Florida residents recognize as dividing Miami-Dade from its county neighbors to the north.

Finney said that the tide would soon begin turning from seeing rail projects as not-in-my-backyard nuisances to desirable assets as property values increase, noting that this is usually how transportation-oriented development works in most other cities.

David Coddington, vice president for business development at the Greater Fort Lauderdale Alliance, said developments like this would give the region an opportunity to brag about itself, something it has been too shy to do in the past.

And telecommuting has made the region all the more desirable. Coddington’s new suggested motto: “Work in the cloud. Live in the sun.”

 

Source:  Stock Daily Dish

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Landlords Adopting ‘Must-Have’ Technologies To Remain Competitive

Radically transforming commercial real estate, new technology — much of it in the form of convenient, user-friendly apps — is being adopted by property owners wishing to remain relevant and competitive. Landlords who want to work smarter, protect their properties, and attract and retain tenants, do well to become acquainted with future-forward technology redefining property management and tenant relations.

While numerous contenders may vie for attention, the following are tried-and-tested options being used in many commercial spaces throughout Miami.

One of the original ground-breaking companies in the industry, Kastle Systems, established more than five decades ago, provides an integrated platform of cutting-edge solutions, delivering both excellent consumer experiences and landlord peace-of-mind. Tenants can conveniently open or unlock property doors with their smartphones, doing away with the need to carry cardkeys or fobs, while allowing landlords to entrust the task of making their space safer to a dedicated team.

On call 24/7, they provide video surveillance, visitor and identity management tools, and monitors alarms, security reports, repairs and more. CUBE WYNWD, a RedSky Capital office project, relies on Kastle Systems to provide top security and access for its tenants. Additional disruptors in the security systems space include Kisi and Openpath.

Another provider of advanced technology that has become invaluable for landlords seeking to better understand real space needs and save costs — Mapiq tracks activity within your office space and building common areas in a single dashboard. A heatmap reveals how people are concentrated throughout the building or a space.

The data, collected in the analytics dashboard provides quantified statistics over time, enabling confident, strategic decisions. For employees, this cloud-based solution facilitates finding available desks and meeting rooms and other employees. With Mapiq, landlords, tenants and employees access tools which effectively position them to have control over their environment.

Additional solutions include Jabra, TrueView Heatmap by Mirame.net and several others that are in development phases.

A third resource — award-winning HqO, connects tenants to their community, facilitates commerce, and provides content, among other features. This app provides the means to maximize positive tenant experiences and strengthens the tenant-landlord relationship.

HqO enables tenants to pay for the amenities and services offered throughout the building; be apprised of events taking place on or near the property, and receive timely notifications, while also providing messaging and concierge services. It can also be used to control the environment in the building, including opening doors and accessing common areas. HqO brings a wealth of information and a smart tool for communication which tenants can access by simply picking up their smartphones.

Other apps that focus on the tenant experience include Comfy, Bixby and SkyRise, and many traditional property management platforms are also launching similar tools.

Yet another innovative option is Motionloft, developed by a leader in artificial intelligence and computer vision, it is rapidly gaining in popularity. Utilizing wireless sensors, Motionloft gathers real-time vehicle and pedestrian data, enabling developers to gauge foot traffic and attract retailers accordingly. Currently, Goldman properties in Wynwood utilizes this solution, allowing them to gauge traffic throughout their retail and dining spaces..

A fifth tool, Kepler Analytics is designed to decrease operating costs and enhance customer satisfaction. Kepler analytics measures sales in stores outfitted with sensors which allows it to monitor individual stores to entire regions — forecasting which stores will meet daily targets and which might need a little attention. It also controls access.

RetailNext, ShopperTrack and Aislelabs are also similar tools being leveraged in the retail sector.

Commercial real estate landlords who expand their offerings to include mobile platforms and future-forward technology are amplifying their competitive edge, facilitating how they market their properties, and securing tenants and their properties. Using one’s phone to book a conference room, pay rent, learn about an upcoming event, access building areas, and much more, is a convenience tenants will soon come to expect.

Savvy landlords will do well to stay at the forefront of the technology curb as this technology becomes more ubiquitous and helps to shape the future of commercial real estate.

 

Source:  Miami Herald

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Developers Targeting Multifamily Properties In Little Havana

Developers are targeting multifamily properties in Little Havana, especially ones recently built.

An investor recently flipped a Little Havana apartment building for $6.2 million after buying it a few months ago.

In September, Bar Invest Group sold an apartment building it built in Little Havana for $7.1 million to Beraja Investments.

Earlier this year, Key International sold Havana Palms II, a 79-unit multifamily complex at 931 Southwest Third Street, for $10.1 million, or about $128,000 per unit. In April, a group of investors acquired a 103-unit apartment portfolio in the neighborhood, with plans to upgrade the properties and flip them.

Unlike Brickell, most of Little Havana is zoned for medium-density development – either T4 or T5. That means that development is capped at five stories and 65 residential units per acre.

Investors also are proposing new apartments in the neighborhood. Ricky Trinidad’s Metronomic is planning several developments in Little Havana, including a series of two-story residential projects called La Elaina, and a five-story office building called SieteOcho at 640 Southwest Eighth Avenue.

 

Source:  The Real Deal

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Demand For Miami Office Space Remains Strong As Companies Relocate To The Region

Demand for office space continues to rise as companies from outside of Florida relocate to Miami-Dade County, driving up average asking rates by more than 5 percent from a year ago. An increase in co-working spaces also played a significant role.

The average weighted asking rate grew for Class A and Class B office space, according to the Blanca Commercial Real Estate third quarter 2019 market report released this week.

For Class A space, average weighted rates grew 5.6% year over year, from $45.51 per square foot in the third quarter 2018 to $46.37 per square foot in the third quarter 2019. The highest average asking rates were in Brickell, at $59.10 per square foot, and Wynwood/Design District, at $55.97 per square foot.

The average asking rates for older, simpler Class B space crept up slightly, from $33.39 per square foot in the third quarter 2018 to $33.47 a square foot in the third quarter 2019. But the class suffered a loss of 248,000 total square feet, primarily in the Miami Airport market.

The vacancy rate for Class A space dipped slightly, from 13.9% to 12.7%, while the vacancy rate for Class B space inches up from 16.1% to 16.9%.

A total of 324,000 square feet of multi-tenant office space was delivered, said Tere Blanca, Founder, Chairman and Chief Executive Officer of Blanca Commercial Real Estate, for a total Class A/ Class B inventory of 36,953,985 square feet. Another 2.1 million square feet of multi-tenant office space is underway and set to be delivered by late 2022.

Net absorption increased overall year-over-year, by 412,191 square feet, led by Class A space offering amenities such as wellness programs, concierge services, Wi-Fi indoors and outdoors as well as tenant lounges with snacks and coffee. Tenants in legal, financial and professional services gravitate toward buildings with water views, she said.

Much of the change in the Class B market was driven by companies already in the market looking to right size their spaces — both by increasing and decreasing — and seeking new layouts, said Blanca.

Overall, tenants are also looking for buildings connected to transit and those with open floor plans and flexible conference spaces.

Of the positive absorption, 292,000 square feet or 44% came from co-working companies leasing in Downtown Miami, Miami Beach, Brickell and Coral Gables. Co-working now accounts for nearly 4% of the total office inventory in the county.

New-to-market firms are driving net absorption, led by companies in finance, technology and professional services, said Blanca. Those include Starwood Capital, which is moving to Collins Avenue in Miami Beach; SoftBank, which took space in Brickell, and Icahn Enterprises, which will relocate from New York to the Milton Tower in North Miami Beach.

The Tax Cuts and Jobs Act, a favorable business environment and climate are driving new companies to relocate to Miami, said Blanca.

About 150 companies have expanded to Miami since 2017, encompassing 592,000 square feet, wrote Blanca Chief Marketing Officer Diana Pubchara over email. The majority of the companies had an office elsewhere out of state and decided to open in Miami-Dade County. Some organizations in foreign markets are establishing their U.S. headquarters in the Magic City. And about 15 new companies are touring the market and would cover another 201,000 square feet when they are expected to sign leases in the next few months.

The market looks bright looking over the next 25 months, said Blanca. She said, “We’ll see continued absorption and rents will continue to hold with moderate rent increases, if any.”

 

Source:  Miami Herald

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Developers Are Excited As Transit Oriented Developments (TODs) Boost South Florida To Super Region Status

Today’s TOD real estate investor faces a bifurcated scenario when it comes to timing a project: Start at the inception of a TOD or take the wait-and-see approach. The former involves much coordination and understanding regarding a local government’s pre-existing ordinances and plans. On the other hand, the latter involves study and assessment of where a TOD-centric community is going in the way of economic and lifestyle demographics.

No matter which approach you might employ to develop real estate in the penumbra of a TOD, you must realize initially that moving people efficiently and economically stands at the forefront of priorities for local transportation agencies. Services and domiciles must, of course, offer amenities congruent to the demographics of the prevailing commuters.

When TODs started trending among local governments, agencies predominantly chose traditionally high-density neighborhoods where more traditional commuter options existed. These neighborhoods may accommodate a large university population, government administration centers, tech headquarters, or aircraft manufacturers.

Sometimes, new industries planning to relocate to a new neighborhood stay abreast of the local agencies’ TOD priorities and plans as it pertains to prospective real estate development. In these cases, your development or industry serves as one of the linchpins to a TOD’s success and vice versa. The project, resultantly, proves symbiotic for both the TOD and the developer. As a developer, you become vested from the very start, even though people movement is the main priority.

Recently, however, communities reliant on large arterials for mostly single-occupant transportation are breaking the stereotype for TODS. Take Orlando, Florida, for example. Here, as with many other auto-dominant communities and neighborhoods, space has become a high commodity—especially as it relates to parking and living domiciles.

High-density residences located near a modern transit hub, such as those serving high-speed rail, resolve many of the challenges sprawl can present to cities such as Orlando. Moreover, the changes in today’s urban lifestyle preferences—living, working, and playing within a relatively small radius—helps such communities stay vibrant.

In the case of downtown Orlando, many developers gained jump-starts via tax credits and similar incentives for playing a role in stemming sprawl, decreasing auto emissions, and revitalizing central neighborhoods that sometimes suffer abandonment by suburban or perimeter flight.

At Brownsville Transit Village, locating in the booming super region of South Florida, real estate developers teamed up with a not-for-profit organization’s initiative to include affordable housing for low-income families and the elderly in a community that fully serves all ages without the need of a car. Caribbean Village will soon follow with a strategically designed district that will also cater to low-income residents and the elderly.

The TOD outlook for Southern Florida’s horizon is bright as a handful of other transit-centered villages will either break ground or be completed within a year. Strategically incorporating mixed use real estate developments along each station, the region’s sole privately owned, operated, and maintained passenger rail system—Brightline—recently launched its express service connecting Miami, Fort Lauderdale, and West Palm Beach along the FEC corridor. These beautifully laid out TODs are paving the way for South Florida residents to take advantage of the “live, work, and play” dream, as all real estate concepts are now connected and thriving along this high-end rail system.

Because of the varying types of TODs, a real estate developer should first define which model of the TOD trend best fits the complex or business involved. Realtors must also pay attention to nascent trends, as a recent survey by a major infrastructure consultancy firm shows that 70 percent of millennials are willing to pay more in rent or mortgage in order to commute to work without a car while finding entertainment and recreation within a walkable radius.

Today, the evolution of TODs remains actively in play in South Florida. As a result, a developer strong in versatility gains the competitive edge.

 

Source:  The Real Deal

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A Wynwood Tri-Rail Station? Brightline’s Aventura Station Gives Idea A Second Wind

After Miami-Dade’s decision to build a new Brightline express train station in Aventura, Wynwood business owners and some local transit officials have begun circulating a new proposal for a long-discussed Tri-Rail station in the fast-blooming neighborhood.

Members of the Wynwood Business Improvement District, led by local property owner Bill Rammos, say the station would relieve increasing traffic congestion and offer an additional transit option as the once blighted area continues to morph into a shopping and tourist magnet.

“In the last five years, the 27th Street artery between Wynwood and Edgewater has become a major artery, especially for micromobility, like scooters and bikes,” Rammos said. “And not just for local residents that work here, but also for a lot of tourists.

“So It’s now becoming clearer to me that it would be a great location for a train station.”

A new set of drawings commissioned by Rammos would see the trains landing on Florida East Coast-owned tracks at a station between Northwest 25th and 27th streets. Rammos is among the largest property owners along that site.

Currently, public transit options to Wynwood are limited to buses and trolleys. Parking on a Saturday night costs as much as $4.73 an hour.

Some Wynwood BID members and other civic leaders argue the county’s decision to finance the Aventura Brightline station for $76 million raises the question of whether the county would join any effort to expand Tri-Rail services along Coastal Link.

A station in Wynwood, Midtown, Edgewater or the Design District has been proposed for years. It received a new push last year as a “demonstration station” project for the area was floated. However, that idea has been delayed.

At a Miami Transportation Planning Organization meeting last week, officials said they’d be willing to forego the demonstration project entirely in favor of a permanent station.

The proposal remains preliminary, said Steven Abrams, director of the South Florida Regional Transportation Authority, the organization that runs Tri-Rail. Abrams said a funding scheme has been proposed; the sources, which include the Florida Department of Transportation, Miami-Dade County, the city of Miami, and the Miami Parking Authority — are still meeting to come up with a final plan of action.

Alice Bravo, Miami-Dade County’s transit director, said Tri-Rail must nail down further details about the station.

“Tri-Rail has the lead on this,” she said in a phone interview.

And it would be Florida East Coast Railway — the Brightline sister company that operates the freight tracks along which Tri-Rail would run — that would have final say over the project. The deal between Virgin and Tri-Rail that will eventually get the latter into MiamiCentral also allows for another station somewhere between 71st Street and downtown, on two conditions: that the other station not obstruct Virgin trains and that Tri-Rail pays for any improvements needed to minimize obstruction.

An FEC representative could not immediately be reached by phone.

Rammos’ Wynwood allies include Carlos Rosso of Related Group, which recently completed the Wywnood 25 luxury apartment complex, and has another development, Wynwood 26, nearing completion.

“All the pedestrian traffic is coming to Wynwood,” Rosso said. “So it makes more sense.”

They also include Gary Nader, an art dealer who owns a gallery near the proposed station.

“It would be a lot of acres around that area,” he said. “We need to work together to do a nice project. It’s going to be very interesting.”

 

Source:  Miami Herald

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More Than 7 Acres Up For Sale In Allapattah

More signs that Allapattah is the hot place to be: the heir to the Bill Seidle auto dealerships has put a portfolio of three tracts equaling 7.6 acres on the market. Asking price: $18.35 million.

The parcels belong to Bob Seidle — son of the late Bill Seidle — and Bob’s wife Tracy. Some are currently home to small shopping centers and parking lots. They are zoned T6-8, which means they can be redeveloped with buildings up to 8 stories tall, said listing agent Cesar Carasa of One Stop Realty. They are located in the city of Miami.

The three parcels lie south of the 112 Expressway between Wynwood and the Miami International Airport. Each of the three parcels edges NW 36th Street. The parcels are not contiguous; two of them sit on opposite sides of NW 36th Street.

One parcel includes five folios along the north side of NW 36th Street, beginning just west of NW 27th Avenue to 29th NW Avenue on the west and extends north several blocks.

The second parcel includes eight folios along the north side of NW 36th Street, beginning just west of NW 31st Avenue to NW 32nd Avenue; it extends two blocks to the north.

The third parcel includes 11 folios on the south side of NW 36th Street between NW 27th and NW 28th Avenues.

The properties were placed on the market two weeks ago and have attracted six inquiries thus far.

The central location of the parcels — a 12-minute drive to Miami International Airport and a 20-minute drive to South Beach — make them ideal for residential redevelopment, said Carasa. He said, “That section is very well located for the middle class.”

“People can’t afford to pay a lot of the rentals. Apartments in that part of town would be cheaper than other areas like Brickell,” said Carasa.

The neighborhood has attracted long-term residents.

Carasa said, “Because it’s a central location, I’ve seen people move from Homestead to here because of traffic.”

Tired of handling leases, the Seidle family decided to sell at market price of $54 to $55 a square foot. They hope to sell the three parcels for $18.35 million but are willing to consider individual sales.

The per-square-foot listing price is comparable to other area transactions, said Carlos Fausto Miranda of Fausto Commercial. But the total amount is rare, he said.

The listing price a square foot between $54 and $55 is comparable to other transactions in the area, said Carlos Fausto Miranda of Fausto Commercial, but what is unique is the amount of land offered in the portfolio.

Over the past year, the area just west of Wynwood has become Miami-Dade’s new real estate darling. The Rubell Family Art Collection has abandoned its former Wynwood space in favor of Allapattah, and art collector and developer Jorge Perez also will open a private museum this fall. Developer Robert Wennett has announced a massive residential-mixed use project in the area designed by star architect Bjarke Ingels, and developer Moishe Mana has also expanded his Allapattah holdings.

“It’s a great but underutilized neighborhood,” said Miranda. It’s one of the few east-west corridors that takes you straight from the beaches to the swamps.”

Due to increasing interest in the area, Carasa said, “For commercial properties it usually takes a year, but, for these it would take no more than two to three months to sell.”

 

Source:  Miami Herald

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Healthcare Real Estate Gains Steam As Possible Downturn Nears

Professionals involved in owning, developing, leasing or financing medical office buildings (MOBs) often point to the Great Recession as an instigator for new investors to become interested in the property type.

To be sure, the healthcare real estate (HRE) space and MOB development and investment certainly suffered during the big downturn of 2007-09. However, thanks to other, unrelated circumstances, existing properties performed well, retaining their physician and health system tenants and, as a result, maintaining their values.

With many economic and business pundits predicting that the country’s economy is once again heading toward a  downturn – albeit not as severe as the last one – the recession-resistant qualities of MOBs are once again piquing the interest of a wide range of would-be investors as well as providing a sense of comfort for those already involved.

A panel of well-known, experienced HRE professionals recently explored this topic, as well as a host of others, while discussing the short- and long-term outlook for the sector during a panel session at the recent InterFace Healthcare Real Estate Conference in Dallas. The panel, titled “What is the Short- and Long-Term Outlook for Healthcare Real Estate?” was moderated by Murray W. Wolf, publisher of Healthcare Real Estate Insights.

The panelists comprised: Lee Asher, vice chairman of the U.S. Healthcare Capital Markets team with CBRE Group Inc.John Pollock, CEO of San Ramon, Calif.-based MeridianGordon Soderlund, executive VP, strategic relationships with Charlotte, N.C.-based Flagship Healthcare PropertiesJonathan L. “John” Winer, senior managing director and chief investment officer with White Plains, N.Y.-based Seavest Healthcare Properties; and Erik Tellefson, managing director with Capital One Healthcare Financial Services.

As the session kicked off the conference on Sept. 17, one of the panelists, Mr. Winer of Seavest, said that during “recessions, healthcare facilities, in particular those with the characteristics that we all know about, do just fine.” But he added that if there is a caveat to that perspective. If a recession is indeed eminent, he cautioned, investors should make sure not to acquire assets with only short-term prospects for success, be they aging buildings and/or those that will not provide flexibility as the healthcare delivery model changes in the future.

“The assets most of us are going to be looking for are newer assets that we’re very comfortable with as a long-term hold; we’re not looking for short-term turnaround plays,” Mr. Winer said. “But otherwise, I think we’re in good shape and I think businesses (in this sector) are in good shape, whether a downturn occurs or not.”

Other Panelists Agreed

“We operate a private REIT (real estate investment trust),” said Mr. Soderlund of Flagship, “and so we have a very long-term view of holding assets, and we are becoming more aggressive, reasonably aggressive in pursuing acquisitions. We want to build our portfolio and we … figure out what we should (hold on to and) not hold on to. We’ve been through that process. There’s a continuing imbalance of supply and demand, and until that changes, and until interest rates maybe go in a different direction, we’re all in a relatively safe place right now.”

Mr. Pollock of Meridian, which often redevelops value-add medical facilities, noted that during a recent meeting with investors from various sectors of commercial real estate, he was “peppered” with questions about HRE.

When he told that group that the tenant retention rate in medical facilities is often in the 85 percent to 90 percent range, “they were like, ‘You’re kidding!’” Mr. Pollock said.

“In general office, it’s 70 percent across the board,” Pollack said. “I think what we’re all seeing is that investors who are in industrial, multifamily and office are now asking more about healthcare. So we’re seeing pension funds that haven’t been in the sector, institutional investors who haven’t been allocating to the space with the theme being that medical office assets are performing better and they’re readying, maybe not for an economic downtown, but toward diversifying their investor base,”

 

Source: HREI

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ULI Recommends Changes To City Of Miami Zoning Code

A new Urban Land Institute report suggests city officials relax certain provisions of the Miami 21 zoning code to encourage denser developments on narrower lots and further incentivize developers who reduce or eliminate parking, among other recommendations.

Report co-author Andrew Frey presented his ULI focus group’s findings on Friday to Miami Mayor Francis Suarez, who declined to comment about how he will incorporate the report’s recommendations into a revamp of Miami 21 that is currently underway.

“We are focused that [growth] happens responsibly,” Suarez said. “That it supports things like transit; that it supports our resiliency efforts.”\

Frey, director of development for Fortis Design + Build, said the focus group was formed last year to look at aspects of Miami 21 that inhibit progress in areas of housing choice, affordability and mobility.

“We wanted to give specific textual recommendations that hopefully can shorten up the cycle between finding glitches or gaps in Miami 21 and filling them,” Frey said. “We tried to make the recommendations as concrete as possible.”

According to the report, city officials should consider deleting lot size minimums and density maximums in certain areas, such as those zoned T4, T5 and T6. The neighborhoods with T4 zoning allow a transition from single-family homes to multifamily buildings with room for small businesses and mom-and-pop retail such as Southwest Eighth Street in Little Havana. In T5 neighborhoods, developers can put up mixed-use buildings that accomodate retail, office and apartments such as Wynwood. And T6 neighborhoods allow developers to build multi-story condo, apartment and office towers such as downtown Miami, Brickell and Edgewater.

Getting rid of density maximums would allow developers to build more apartments sized smaller for mid-market renters because they would be able to build 100 or more units an acre . And by eliminating lot size minimums, Miami can encourage the development of more housing types such as townhouses, row houses and brownstones found in other major U.S. metropolitan cities, the report states.

The ULI focus group also suggested dramatic revisions to the parking standards in Miami 21, including having the Miami Parking Authority provide all on-street parking in single-family residential neighborhoods as residents-only at no cost. Other recommendations included significantly reducing parking requirements for new buildings and allowing developers to obtain parking reductions without having to pay impact fees.

Greg West, CEO of apartment builder ZOM Living and ULI Southeast Florida Caribbean District’s chairman, attended the mayor’s presentation. He noted that the report was produced with input from several heavy hitters from the real estate industry, including urban planner Elizabeth Plater-Zyberk, the original author of Miami 21. In addition to Frey, the focus group included land use attorneys Iris Escarra and Steven Wernick, developers David Martin and Kenneth Naylor and architects Reinaldo Borges and Raymond Fort.

“We had a pretty big tent on whom we sought input from, which also included the people who originally wrote and drafted Miami 21,” West said. “I think from the private side and development community, we got a good base.”

 

 

Source:  The Real Deal

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