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Which Retail Tenants Are Still Struggling to Pay Rent?

February brought some welcome relief for the country’s retail landlords, as multiple tenants managed to pay all of their rent for the month and the number of those able to pay less than half of what they owed dropped, according to the most recent report from data firm Datex.

According to Datex, between the end of 2020 and February, total rent collections rose 514 basis points, to 90.81 percent. The increase affected both national and non-national retail tenants, with the non-nationals showing a somewhat stronger improvement and paying up to 87.70 percent of the rent they owed in February in contrast to just 81.64 percent in December of 2020.

As of February, here are the retail tenants that paid the most and the least of their rent.

 

 

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One Of The Oldest Churches In Miami-Dade County Sells

Gridline Properties announced the sale of a unique 28,947 square foot property located at 205 NE 87th Street for $5,425,000 after being vacant for more than 10 years.

Located in Miami’s Upper East Side and within the emerging El Portal Village, the building was formerly home to a Methodist church and school. Gridline Properties’ Principal and Broker Alfredo Riascos represented the sellers, real estate developers Seth Gadinsky of Gadinsky Real Estate, LLC and Samuel Soriero of Group 10 Capital Management, LLC.

The buyer, The Sanctuary LLC, a client of Elm Spring, Inc., plans to adapt the property into restaurant, retail and office space. The transaction was finalized on Friday, March 19.

The sellers acquired the property in 2016 for $3,200,000, and entitled the asset into a mixed-use retail, office and event space building. However, once Miami’s Little River and Upper East Side markets began showing substantial growth, they decided to switch gears and test the sale market – ultimately selling to a client of Elm Spring, Inc. given their intentions to pick up where they left off.

This prominent, mixed-use building, built in 1952, occupies two acres of Miami’s El Portal neighborhood – falling between North Miami and Downtown. Given its distinctive character, this charming church property, once known as the Rader Memorial United Methodist church, offers a main hall (former cathedral) that boasts dramatic high ceilings and 5,000 square feet of open space attached to a two-story structure (former school) that houses more than twenty rooms with perimeter windows and an impressive portico that overlooks the expansive courtyard and garden. The property’s location adds to the appeal of this space with its close proximity to notable Upper East Side landmarks such as The Citadel, MADE, Ebb + Flow and The Vagabond Hotel.

Gridline Properties has been instrumental to the growth of Miami’s Upper East Side, participating in the sale and leasing of projects such as Upper Buena Vista, 55th Street Station and Ebb + Flow amongst other notable projects and transactions.

“This sale further emphasizes the recent growth of the Upper East Side and demonstrates the growing investor demand in the area,” said Riascos. “We are excited to see how the development of this formerly vacant asset continues to uplift and add value to the surrounding area.”

This purchase along with many others, comes at a time of increased interest in the Miami market following a year of extreme uncertainty due to the Covid-19 pandemic.

“2020 brought so much ambiguity to the future of our market. However, the positive sales activity that we’ve seen throughout the first quarter of 2021 has marked a turning point and elevated Miami to one of the most attractive investment markets in the country,” said Riascos.

 

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Mixed-Use Buildings On Miami Avenue In Wynwood Win Urban Development Review Board’s OK

A sprawling mixed-use project designed to bring apartments, office space and more in two new buildings in Wynwood won a positive review from the city’s Urban Development Review Board.

The board unanimously recommended approval of the project, known as PRH N. MIAMI, after the developer made several changes to the plan in response to issues and concerns brought up by the review board and earlier by the Wynwood Design Review Committee.

PRH N MIAMI LLC plans to build the dual, complementary buildings at 2150 N Miami Ave.

The project is to include 317 residential units, 60,400 square feet of offices, 22,701 square feet of commercial-retail uses, and a garage for up to 534 vehicles.

The property has a principal frontage on North Miami Avenue, which bisects the property. The property fronts Northeast/Northwest 22nd Street to the north comprising secondary frontage, with Northwest Miami Court on the west being another secondary frontage.

The property is divided into two parcels, Parcel 1 to the west of North Miami Avenue and Parcel 2 to the east of North Miami Avenue.

The east parcel is to have retail at the ground level, a seven-level parking garage lined on the east façade with residential units up to the eighth level, and office space up to the 12th level.

The west parcel is to have retail at ground level, residential units up to the 12th level and amenity spaces for the residents.

Sandy Peaceman of CFE Architects went through many of the tweaks and changes made by the design team, with the goal of addressing the concerns of the Wynwood committee and the city board. Among them:

  • Increased connectivity and activation of the courtyard with new breezeways providing courtyard access for the west tower. Providing crosswalk connectivity between the two buildings, and a direct link between the east tower residential lobby and the west tower residential lobby and breezeway.
  • Modifications include chamfered corner along the entire northeast corner of the west tower.
  • The rooftop amenity deck has been redesigned to provide a more appealing lifestyle to the residents while creating a more intriguing skyline of the west tower.
  • Artificial green wall has been removed from the west façade of the west tower.
  • Faux brick has been removed from the ground level of the east tower and replaced with exposed concrete to create a more industrial feeling.
  • Residential lobby and office lobby have been made more prominent and inviting.
  • The long retail façade on 22nd Street has been broken down by stepping back a 33-foot-wide portion of the façade to be flush with the tower above. By doing so, it disrupts the perceived monotony along the retail wall.
  • Round balconies have been removed from the tower at the main corner at North Miami Avenue and 22nd Street to emphasize the floor-to-ceiling glass corner.
  • Garage screening and massing has been articulated with design elements that become part of the solution to the 60% roof covering requirements. Louvers have been provided where mechanical equipment will be utilized.

Board Chairman Willy Bermello and others commended the developer’s team for listening to the board’s concerns and making changes.

“You’ve done a good job in being very responsive and sensitive,” said Mr. Bermello.

Board member Ligia Ines Labrada said she appreciates that the developer and architect acted upon board recommendations.

“It makes for a much stronger project. The open breezeway makes it more inviting … the scale and language has improved in relating the two buildings,” she said.

Board member Ignacio Permuy said: “If we had a category of Most Improved Project, this would be one of the top ones. I commend you on a job well done … exceptional job. Night and day.”

 

Source:  Miami Today

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Love Life Café To Open At 545WYN In Wynwood

Sterling Bay has signed a retail lease with eatery Love Life Café in Miami’s Wynwood district. Love Life Café will take 3,767 square feet of storefront space at 545wyn, Wynwood’s first Class A creative office building.

Love Life Café, a plant-based dining concept, will be relocating its existing Wynwood location at 2616 NW 5 Ave. to its new location at 545 NW 26th St. later this year. Veronica Menin and her husband, Diego Tosoni, created Love Life Café in 2015. Tosoni, a self-taught chef with a passion for vegan cooking, aims to bring plant-based foods to 545wyn, serving breakfast, lunch and dinner items.

Love Life Café currently operates venues at Time Out Market in Miami Beach and another at 18 N Dollins Ave. in Orlando.

 

Source:  RE Business

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Biscayne Boulevard Dev Site Hits Market For $11M

A multifamily and commercial development site along Biscayne Boulevard near North Miami hit the market for $10.5 million.

Owner Alex Silberman purchased the 3.2 acres of land at 11240 Biscayne Boulevard in August 2012 for $2.9 million from Biscayne 114 Center of New York, property records show.

The asking price shows a significant uptick in valuations since then.

Colliers’ Gerard Yetming, Julian Zuniga and Mitash Kripalani listed the land for sale on behalf of Silberman.

The Biscayne Boulevard site has two different zonings, as 2.17 acres is designated for 10 to 21 multifamily units per acre, and the remaining 1.06 acres is designated for a commercial use such as retail, according to a press release.

Yetming said in the release that the site is centrally located and comes at a time when the multifamily market is doing well.

 

Source:  The Real Deal

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East End Capital Sells Wynwood Building For $12M, Resolves Foreclosure

An affiliate of East End Capital sold a commercial building in Miami’s Wynwood Arts District for $11.8 million, resolving a foreclosure lawsuit in the process.

EERC 310 Owner LLC, led by Jonathan Yormak and David Peretz of New York-based East End Capital, sold the 19,891-square-foot building at 310 and 318 N.W. 25th St. to 310 NW 25 SPE LLC, managed by Chaim Cahane of Miami Beach-based Forte Capital Management and Jonathan Krasner. The buyers assumed the seller’s $11 million mortgage with FS Rialto 2019-FL1 Holder LLC, an affiliate of Rialto Capital Management.

 

Click here to read this story in its entirety.

 

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Miami 21’s Special Area Plans Have Created Special Problems

In a recent article, Neisen Kasdin, managing partner of Akerman LLP’s Miami office, argued that the opposition to special area plans (SAPs) was “largely driven by community activists who oppose change because they like things the way they are and want to preserve their positions of power in the community. They generate opposition by preying upon people’s fear of progress, often without regard to the true long-term interests of the community.”

Nothing could be further from the truth—the opposition to SAPs has been galvanized across a broad spectrum of opponents who have watched this planning tool turned against our most vulnerable communities by developers. That outrage resulted in the City of Miami Planning Zoning & Appeals Board voting unanimously last year to recommend to city commissioners that SAPs be abolished from the Miami 21 zoning code.

SAPs Are Government Up-Zoning

A “special area plan” is a zoning process in Miami 21 that allows a developer that assembles over nine acres of land to apply for the right to build at much greater height and density than would otherwise be allowed. If that application is approved after going before the PZAB for its recommendation and then obtaining final approval from the city commission, the developer then has greater flexibility (e.g., the Magic City SAP received exemption from certain liquor sales limitations) as well as relief from the Code’s otherwise strict rules regarding “succession.”

Miami 21 is a “form based” code designed for “successional growth.” For example, the T-3 transect governs single family and duplex residences of maximum two stories, and T-4 governs multifamily apartments of three stories maximum. Any up-zonings of more than one transect are generally not allowed. SAPs are a planned exception to successional growth, intended to incentivize developers to cooperate with the city planning staff to create a better development than the developer might otherwise build. Kasdin is correct that this process has worked well in some high density places, such as Brickell City Centre. But not all, and there’s the rub—“one size does not fit all.”

At their root, the projects Kasdin is promoting involve governmental up-zoning, with lobbyists approaching the city of Miami on behalf of developers seeking permission to build more than they are otherwise legally allowed to build.

This type of government led development is neither organic nor the result of natural market forces. Rather, market forces are being manipulated to incentivize acquisition of real property in poorer neighborhoods where private investment has been largely absent, except by slumlords, often for decades.

In theory, this process involves the city agreeing to allow more density and height in exchange for the developer making available to residents certain benefits, such as affordable housing, workforce preferences and living wages. But the “community benefits” are only as good as the negotiating process, and it is often the case that the neighborhood doesn’t get what it deserves in a process controlled by connected people in “special deals for special people” handed out by compromised politicians who don’t have the public interest at heart.

 

Click here to read this story in its entirety.

 

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CRE Price Growth Expands in January

In January, US commercial real estate price growth hit levels not seen since before COVID-19, according to the latest Real Capital Analytics CPPI: US summary report.

Overall, the US National All-Property Index rose 6.9% from a year ago and 1.2% from December.

While prices continued to accelerate in January, deal volume slumped after a record-breaking December 2020.

While there are still questions about how much of the workforce returns, office prices rebounded 3.3% year-over-year in January. Suburban offices drove those gains. Last August, office prices were posting no annual growth.

Industrial, which has been the hottest sector through the pandemic, posted 8.3% annual growth, giving it the top spot among all the property types. Industrial prices are slightly below what it posted in 2019.

Gains in multifamily stayed near the 7% they have been hovering near over the last several months, hitting 6.8% in January. They are well below the highs posted in 2018.

The struggling retail sector again saw price growth fall 1.8% year over year. Retail trailed the other sectors before the pandemic, posted less than 5% growth.

Overall, US commercial real estate transaction volume was down 58% in January, according to RCA. In December, transaction volumes increased 8% year-over-year. January experienced similar declines to the second and third quarters of 2020, which directly followed the onset of the pandemic.

Transaction volumes in January fell across property types at double-digit rates, except for senior housing. This was a pivot from December transactions when apartment and industrial sales took off, driving most activity. Even office properties had a good month with the highest transaction volumes since 2019. It should be noted that it is typical to see an end-of-year rush and RCA adds that the activity was likely compounded by investors closing delayed deals from earlier in the year.

 

Source:  GlobeSt.

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Downtown Miami Revitalization Takes Flight

The revitalization of Downtown Miami is continuing to evolve.

New York-based developer Time Century Holdings has entered the Miami market to transform the Metro Mall into a luxury jewelry center. The developer secured a $23.6 million construction loan for the $50 million project through City National Bank of Florida.

Time Century Holdings is working with architect Kobi Karp on the project to create a destination for “luxury jewelry retailers, wholesalers, consumers and watch enthusiasts.” Phase one includes a basement, ground, mezzanine and second floors, while the second phase—set to start later this year—will include the development of four stories of office space. The wholesale retail portion of the project is already 60% leased by jewelers from Europe, South America and Asia. The leasing helped to secure the loan, which Yair Levy of Time Century called a “true endorsement” of the project and of Downtown Miami.

The jewelry center itself will take up four floors with a three-story atrium. There are retail spaces ranging from 500 to 2,000 square feet with rental rates ranging from $65 to $150 per square foot.

The jewelry center is just one of several ongoing projects transforming Downtown Miami and big real estate players are getting involved.

 

Source:  GlobeSt.

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City Gives Easy Online Access To Miami Comprehensive Neighborhood Plan

This week, the City of Miami added the Miami Comprehensive Neighborhood Plan (MCNP) onto the publicly-available Gridics Municipal Zoning Platform, CodeHUB. The MCNP is a key zoning document that creates the policy framework that guides all future public and private development decisions in the City of Miami to ensure the City meets the needs of existing and future residents, visitors and businesses, while preserving the character and quality of its communities.

The incorporation of the MCNP into CodeHUB will help to drive smarter regional planning decisions for the future by integrating future land use, environmental, and infrastructure requirements into an interactive, parcel level, 3D map. This is the first time that the MCNP has been made available to the public in such an interactive and accessible tool, allowing the public to be actively involved in understanding the direction of their community, including how the infrastructure will change to support future growth. The most updated version of the MCNP and Future Land Use Map (FLUM) will be made available 24/7 through this new platform.

This week’s online publication of the MCNP follows the successful 2018 launch of the Miami 21 Zoning Code on the Gridics platform, providing citizens an up-to-date and fully digitized version of Miami 21, plus parcel-specific lookup tools for citizens to get zoning property record data for their property or parcel.

 

Source:  MiamiGov.com

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