Sumitomo Re-enters Boldly the Miami Market with $220M Icon

The U.S. arm of Japanese trade conglomerate Sumitomo Corp. recently paid $220 million for the iconic Miami Tower office building.

The purchase marked one of Miami’s biggest investment deals so far this year, as well as a surprising display of optimism in the U.S. commercial real estate market from Sumitomo, which only has a handful of marquis properties stateside.

The company has a long history developing and investing in real estate, both within its home country Japan and abroad. Data from Real Capital Analytics shows the company has interests in 63 properties worldwide with an estimated value of $4.9 billion. Most of those properties are office buildings in large Japanese cities like Tokyo, though a smattering of development sites, retail and industrial buildings are also included.

Within the last decade, Sumitomo has acquired interest in $2.4 billion worth of property and sold another $2.3 billion, according to the data. For its real estate dealings in the U.S., however, Sumitomo seems to take a much more calculated approach. Before its purchase of Miami Tower, the company’s stateside office holdings included only two office towers, both occupying premium locations in their cities’ respective central business districts. Sumitomo owns the Class A office tower at 203 North LaSalle Street in Chicago, for which it paid $111.5 million in 2014, and the tower at 450 B Street in San Diego, which it acquired for $73 million in 2013.

This purchase smacks of Sumitomo’s previous and first foray into Miami back in 2008, when it made a splash in the office market with its $260 million purchase of the 34-story Miami Center building. Four years later, the company sold Miami Center to Crocker Partners for a mere $5.2 million more than what it paid.

As recently as a few years ago, “South Florida wasn’t viewed as a long-term investment; it was opportunistic,” Krasnow said. “Now, Miami is viewed from the capital perspective. It is much more of a strategic investment.

In the past year, institutional buyers like insurer Prudential Financial and TIAA have swallowed up large swaths of office product in suburban markets like Coral Gables and the business parks surrounding the Miami International Airport.

Though Sumitomo has been tight-lipped about its most recent acquisition of Miami Tower — sources say those involved in the sale are under confidentiality agreements — a statement from Robert Obringer, the company’s vice president, illustrates Sumitomo’s motivation for paying such a premium for a piece of Miami iconography.

As part of our constant management of assets, we are always looking for opportunities that will maximize return on investment, and this property offers a strong upside potential for in-place cash flow and the opportunity to increase value,” Obringer said in the statement.

Source: The Real Deal

An Exciting Month for RIVA Fort Lauderdale

What an exciting month. RIVA hosted four great community events, beginning with a festive, after-hours networking reception for community leaders and members of the Greater Lauderdale Chamber of Commerce’s Gay & Lesbian Business Exchange Council.

Daniel de la Vega President of ONE S.IR. SPEAKING

Daniel de la Vega President of ONE S.IR. SPEAKING

RIVA also hosted The Leadership Broward Foundation’s 2016 Profiles in Leadership honorees. In addition, RIVA was an exclusive sponsor of the annual Waterway Soirée, one of Fort Lauderdale’s must-attend, signature fundraising events, which benefits the Children’s Diagnostic & Treatment Center, hosting a five-star dinner aboard a luxurious, private yacht for 20 VIP guests.

This slideshow requires JavaScript.

The new and elegant RIVA building capped the month with a VIP Rooftop Party, this past Wednesday May 25th at the new Audi Fort Lauderdale location, where more than 400 guests attended the sunset bash with a bird’s eye view of the construction progress.

More information about RIVA

 

New Addition to Miami’s Skyline – One Thousand Museum

One Thousand Museum by Zaha Hadid Architects marks the Pritzker Prize-winning architect’s first residential skyscraper design concept in the Western Hemisphere. With her name on the project and iconic design tower in the center of Downtown Miami’s skyline, the tower will be the catalyst that shifts the center of gravity for high design and luxury residences. Overlooking the contemporary Pérez Art Museum Miami, Museum Park, the soon-to-be-opened Patricia and Phillip Frost Museum of Science, the Adrienne Arsht Center for the Performing Arts and the American Airlines Arena; One Thousand Museum by Zaha Hadid Architects offers an unmatched standard of luxury living within Miami’s cultural nucleus.

Downtown Miami Skyline featuring the One Museum condominium development adjacent to Miami Art and Science Museums.

Downtown Miami Skyline featuring the One Museum condominium development adjacent to Miami Art and Science Museums.

The 62-story tower will contain only 83 residential units, which consists of a two-story duplex penthouse, four townhouses, eight full-floor residences and 70 half-floor units. The duplex penthouse is priced at $50 million with over 16,000 square feet; duplex townhome residences and full floor residences are priced from $10.9 million to over $20 million and range from 8,000 to 10,000 square feet; half-floor residences are priced from $6 million to over $8 million and range from 4,600 to 4,800 square feet.

Residences will feature faucets by Dornbracht; induction cook tops, in-wall ovens, steam ovens, microwaves, dishwashers and integrated coffee makers by Gaggenau; custom cabinetry by Poliform; refrigerators by Sub-Zero; a German interior illumination concept by apure with design by Porsche Design Studios; custom doors by Lualdi with Valli & Valli’s Duemilacinque series handles designed by Zaha Hadid; state-of-the-art home automation infrastructure by Creston; and custom olfactory scenting options by 12.29, inspired by Zaha Hadid’s architectural vision. The project’s 30,000 square feet of luxury communal areas include a two-story Aquatic Center and Sky Lounge at the 61st floor, a Sun & Swim Terrace with a landscape design concept by Enea Garden Design, the city’s only private rooftop helipad and more.

One Thousand Museum by Zaha Hadid Architects broke ground in December of 2014 and is scheduled for completion in late 2018. During the summer of 2015, One Thousand Museum by Zaha Hadid Architects’ foundational work began with a 24-hour concrete pour in which 1000 trucks poured 9,500 cubic yards of concrete.

Developed by Louis Birdman, Gregg Covin and Kevin Venger with sales and marketing headed by ONE Sotheby’s International Realty, One Thousand Museum by Zaha Hadid Architects’ unprecedented fusion of art, architecture, design, location and luxury will make it Miami’s most coveted address.

For more information, be sure to visit my One Thousand Museum – Miami page.

Source: The Architect Magazine

5 Reasons NOT to “For Sale By Owner”

In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Source: Keeping Current Matters (www.keepingcurrentmatters.com)

Swanky Condo Breaks Ground in West Palm Beach

This is the first major waterfront condo in West Palm Beach since 1987. It comes at a time when the city’s downtown and surrounding neighborhoods have 25 major projects in the pipeline.

In a recent interview, Golub said he was attracting buyers from the Northeast and Palm Beach homeowners who wanted to leave older homes for a new condo with luxury amenities.

Bristol Palm BeachUnits range from 3,700 square feet with three bedrooms to 9,000 square feet with five bedrooms. The interior designer is Amir Khamneipur, who selected woods, stone and imported custom fittings. Amenities include a marble-decked lobby, a club lounge, a fitness center, a two-story wet and dry spa, terrace gardens, and a 75-foot lap pool. The building features a concierge and Bentley service throughout the Palm Beach area.

The developers said the Bristol Palm Beach is 40 percent pre-sold. The developer is asking for 50 percent deposits in stages during construction.

Units start at $5 million. The project should be completed in fall 2018.

Source: South Florida Business Journal

Auberge Beach Penthouse Sells for Record $8.9 million

A real estate boom is happening in Fort Lauderdale, Florida. Once a budget friendly, spring break town by the beach, just North of Miami, the area is experiencing a surge in growth with a string of new luxury hotels and residential buildings along the beach. While Millionaires Row is known for its stately waterfront mansions anchored by large yachts, the high-end resort industry is quickly staking its claim into one of the fastest moving markets in the United States.

LIVING-02

A four-bedroom penthouse in the Auberge Beach Residences South Tower has recently sold for $8.9 million, setting a new record in Fort Lauderdale, pushing out the now previous most expensive residence sold – the 2009 sale at The Ritz-Carlton Residences for $6.875 million.

The record-breaking penthouse boasts over 5,800 sq. ft. living space with an additional 3,970 sq. ft. of exterior living area including a private plunge pool. There are 4 bedrooms, 6 baths, plus a den and a private sun room with 270 degrees of panoramic views of Fort Lauderdale Beach and the city lights. The new owner of the South Tower Auberge penthouse is a mid-west manufacturing CEO who will be joining high profile neighbors including Miami Dolphin’s Dan Marino and philanthropist/author Annie Falk among others.

Standout features of the penthouse include; an expansive floorplan designed to appeal to extended multigenerational families, Floor-to-ceiling window walls overlooking the unmatched coastal setting, private terrace, that nearly doubles the property’s liveable space, complete with an array of outdoor dining and entertaining spaces, access to world-class, resort-style amenities that are curated by legendary luxury hospitality company Auberge Resorts Collection, including exclusive services at the signature Auberge Spa.

Take a moment to visit my Auberge Beach Residences page for more information about this exciting new Fort Lauderdale development.

Source: Forbes

Florida Housing: New Listings, Median Prices Rise in March ’16

ORLANDO, Fla. – April 20, 2016 – Florida’s housing market reported higher median prices, more new listings and fewer all-cash closed sales in March, according to the latest housing data released by Florida Realtors®. Statewide closed sales eased last month amid tighter inventory: Single-family home sales totaled 23,758, remaining relatively the same (down 0.6 percent) from March 2015.

“Many Florida homeowners have been able to rebuild home equity due to strong price growth, but that can also pose a challenge for first-time buyers and move-up buyers,” says 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “However, new listings rose in March, which is good news for potential buyers. New listings for existing single-family homes rose 5.6 percent compared to a year ago while new listings for townhouse-condo properties are up 2.6 percent.”

Meanwhile, sellers received more of their original asking price at the closing table. Sellers of existing single-family homes in March received 95.8 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.5 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $209,500, up 10.3 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in March was $155,000, up 3.3 percent over the year-ago figure.

March marked 52 months in a row that statewide median sales prices for both single-family homes and for townhouse-condo properties rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

FloridaRealtor March 2016 Market Data1

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in February 2016 was $212,300, up 4.3 percent from the previous year the national median existing condo price was $198,900. In California, the statewide median sales price for single-family existing homes in February was $446,460; in Massachusetts, it was $309,000; in Maryland, it was $235,206; and in New York, it was $235,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 10,076 last month, down 7.1 percent compared to March 2015. However, the closed sales data reflected fewer short sales and cash-only sales in March: Short sales for townhouse-condo properties declined 39.3 percent while short sales for single-family homes dropped 33.2 percent. Closed sales may occur from 30 to 90-plus days after sales contracts are written.

FloridaRealtor March 2016 Market Data2

“Overall, statewide inventory levels essentially held steady in March; however, beneath the surface, we can see that active listings in the most affordable price tiers are continuing to decline,” says Florida Realtors Chief Economist Brad O’Connor. “These declines are being offset by the growth in the upper price tiers, particularly in the luxury market. The active inventory of homes listed for over $1 million, for instance, was up 18.3 percent year-over-year among single family homes and 38.6 percent among condos and townhouses.”

Inventory was at a 4.5-months’ supply in March for single-family homes and at a 6.3-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.69 percent in March 2016, down from the 3.77 percent average recorded during the same month a year earlier.

Download directly the March 2016 Market Data for analysis.

 

SOURCE:  Florida Realtors

 

Pulse of Real Estate in Broward County: Demand Rising

I recently attended The “Broward Deep Dive” panel event, one of two at the event at the Design Center of the Americas in Dania Beach, focused on analyzing Broward County’s hottest markets and comparing them to their biggest competitors in Miami-Dade County.

One of the highlights is that as Miami’s real estate market loses some of its heat, Broward County is maturing as a hotspot of new development in South Florida, according to the panel of experts. It accounts for 19% of South Florida’s new development activity according to figures cited by panel moderator Peter Zalewski, a TRD columnist and founder of research firm CraneSpotters.com. With a big part of that development upswing due to the Related Group, a firm famous for cranking out luxury buildings in Miami.

Yet amid all, some uncertainty remains, not about the trend as much as about its composition. Related has still yet to determine whether its iconic Las Olas development should be rentals or condos, Campbell said. This is evidenced by the possible launch of phase III before II at the company’s New River Yacht Club project, purely because 190 units will be easier for the market to absorb than 350.

“With the pace of sales in Broward, we want to let the market decide.” he said.

Perhaps the buyer demographics plays a bigger role. Broward sees far more empty nesters in the county’s western suburbs seeking to downsize, while also buying luxury units now that they can afford it. Also, Broward sees more tough sells, as buyers tend to kick the tires more and scrutinize everything from the finishes to the location.

Jean Francois Roy, founder of development firm Ocean Land Investments, is tapping into that same demographic with his nearly half-dozen condo projects in the luxury area around Las Olas.

“After the last recession, we decided to specialize in Broward County,” Roy said.

Not surprisingly, several of the panelists agree transportation is a huge factor in helping Broward’s real estate market grow. Commercial prices in Fort Lauderdale and especially in the hip neighborhood of Flagler Village are poised to rise as new commuting options emerge for residents. Meanwhile, All Aboard Florida will launch its Brightline line next year, with trains running between Miami, Fort Lauderdale, West Palm Beach and Orlando. And finally, Fort Lauderdale is considering the Wave street car, which will bring familiar commuter service with in-ground San Fransisco-style trolleys.

“Every deal that we’re looking at is pushing the envelope as far as parking reduction,” he said. “Not because of costs, because… what are we’re going to do with these garages that nobody is going to use? The next few years, we’ll probably see a lot of more these buildings with no parking.”

Source: TheRealDeal.com — April 14th, 2016

Original Article:  Demand in Broward County still rising: TRD Panel – The Real Deal

A Modern Lifestyle Icon in the Heart of Broward – Metropica

A new icon of modern urban lifestyle goes up in West Broward County. Metropica epitomizes modernity, luxury and technology. The result is a very accessible package for those seeking an upscale “city within a city” to call home, where one can work and play.

Metropica - Modern Urban Lifestyle 3

The vision behind Metropica was to completely reimagine and redefine today’s modern urban lifestyle. Beyond luxury, beyond the latest in technology, beyond top-of-the-line amenities or enviable views… Metropica combines all this and more, creating a dynamic community where life takes place in all its many forms. You get a place where work and play and life all happen seamlessly, together. Metropica offers residents an intriguing array of regional and international cuisine, a curated collection of boutique shops and name-brand retailers, ample outdoor areas, shared community spaces, easy access to the rest of the city, and pedestrian-friendly planning that puts it all merely moments from home.

Metropica, we are proud to say, represents a revolution in human modernism, a movement that handcrafts new cities as destinations that are reflective of the increasing richness and integration of our everyday lives.

It’s not just a residence or a retail or corporate complex. Metropica is a new way of life.

— Joseph Kavana

Located in a serene, congestion-free neighborhood, Metropica is a modern urban community offering access to the very best South Florida has to offer. Minutes from the pristine beaches of Fort Lauderdale, headlining concerts at BB&T Center, and the exciting nightlife of Miami, this well integrated neighborhood is an effortless blend of all aspects of modern life.

Metropica offers complete access to state-of-the-art, five-star health and fitness facilities, recreational amenities such as tennis courts and mini-soccer field, and community spaces for gatherings of family and friends.

Experience our resort-style, South Beach-inspired “Beach Club,” a stunning oasis with lounge chairs, VIP pool access, and ocean-side food and beverage service. Metropica also features an expertly landscaped park environment that blends South Florida’s natural beauty with the excitement of an urban setting. Biking, hiking, walking and running paths; outdoor play areas, and Wi-Fi stations all set amidst a lush native landscape.

Metropica is accepting contracts now.

Source: Metropica | One Sotheby’s International Realty

 

 

 

NAR: February pending home sales up 3.5%

Pending home sales rose solidly in February to its highest level in seven months, according to the National Association of Realtors® (NAR). Led by a sizeable increase in the Midwest, all major regions except for the Northeast saw an increase in February contract activity.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, rose 3.5 percent to 109.1 in February from a downwardly revised 105.4 in January and it’s 0.7 percent higher year-to-year. The index has now increased year-over-year for 18 consecutive months, though last month’s annual gain was the smallest.

“After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory,” says Lawrence Yun, NAR chief economist.

“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers,” Yun adds. “Without adequate supply, sales will likely plateau.”

According to Yun, last month’s noticeable slump in existing-home sales had one silver lining: Price appreciation lessened to 4.4 percent, which is still above wage growth but more favorable than the 8.1 percent annual increase in January.

“Any further moderation in prices would be a welcome development this spring, particularly in the West, where it appears a segment of would-be buyers are becoming wary of high asking prices and stiff competition,” adds Yun.

Existing-homes sales this year are forecast to be around 5.38 million, an increase of 2.4 percent from 2015. The national median existing-home price for all 2016 is expected to increase between 4 and 5 percent. In 2015, existing-home sales increased 6.3 percent and prices rose 6.8 percent.

The PHSI in the Northeast declined 0.2 percent to 94.0 in February, but it’s still 12.6 percent above a year ago. In the Midwest, the index shot up 11.4 percent to 112.6 in February, and it’s now 2.5 percent above February 2015.

Pending home sales in the South increased 2.1 percent to an index of 122.4 in February but it’s 0.4 percent lower than last February. The index in the West climbed 0.7 percent in February to 96.4, but it’s now 6.2 percent below a year ago.

Source:  FloridaRealtors/March 28, 2016.