Archives for the ‘INCOME-PRODUCING PROPERTY NEWS’ Category

Formerly Contaminated Development Site In North Miami Beach Sells For $21 Million

A development site in North Miami Beach that underwent remediation to rid it of contamination has sold for $21.14 million.

Attorneys Kerry E. Rosenthal, Eduardo Rasco, Heather A. Scott and Melissa Groisman, all of Rosenthal Rosenthal Rasco, said they represented the seller in the deal for the 17.8-acre site at 15780 W. Dixie Highway. It was sold by Moore 77 LLC, managed by Vitali Rosenthal, to New North Equities, managed by Hector Mendez in Aventura and Gabriel Boano in Bay Harbor Islands. The buyer received a $9.15 million mortgage from New Wave Loans Residential.

The attorneys from Rosenthal Rosenthal Rasco were hired to resolve litigation surrounding the property. According to Rosenthal, the deal was originally set to close in January 2016, but the Keiser Family Living Trust filed a lawsuit in Broward County Circuit Court seeking to rescind the sale of the property to Antigua at NMB Development, the company that sold Moore 77 LLC the property for $17 million in 2014.

Moore 77 LLC was named in the lawsuit but it couldn’t sell the property until the case was resolved. The case was settled after after almost a year of litigation, clearing the way for the sale.

Formerly a TECO Gas and People’s Gas site, the property was remediated over several years to clear it of contamination. It has development rights for up to 2,300 residential units and 2.5 million square feet of commercial space with heights of up to 20 stories.

 

Source: SFBJ

Condo Terminations Expected To Rise As Developers Look To Older Buildings

South Florida‘s aging condominium stock, especially buildings sitting on oceanfront land, is ripe for glitzy redevelopment as developers push to expand a skyline where little to no prime, undeveloped land remains.

Real estate lawyers who specialize in condo terminations reported a busy 2016 season, despite the noted slowdown in the region’s luxury condo market. As undeveloped land becomes scarce, builders have turned to more creative measures: Redevelop aged buildings on underutilized sites, preferably near the water.

“Developers are seeing a lot of opportunities particularly along the coast with older condominiums that may have been built in the ’50s, ’60s and ’70s that are now pretty much functionally obsolete,” said Joe Hernandez, a real estate lawyer with Weiss Serota Helfman Cole & Bierman.

For unit owners of dilapidated condo properties whose repairs outweigh their existing value, a condo termination may be the only viable option.

“The owners in those condos then face a tough problem because things get more and more expensive to maintain,” said Hernandez, who is a partner with the firm in Fort Lauderdale.

While condo terminations have been happening for years, the shortage of well-located development sites has catalyzed a recent flurry of activity, said Howard Vogel, a partner with Rennert Vogel Mandler & Rodriguez.

The Miami real estate lawyer said his clients are actively searching for older buildings, particularly those whose condo declarations are most conducive to terminations — even as the market for high-end condos has slowed. Developers are taking a more long-term approach, which points to the development community’s confidence in the region’s condo market.

“They saw how quickly the market recovered after the last downturn and how important it is to be well-positioned for the recovery,” Vogel said.

Law In Flux

The law governing condo terminations has been in a state of flux since the housing market fell to its knees.

Before 2007, the decades-old legislation required unanimous approval before a condo could be terminated, whether for redevelopment or conversion to rental property. The Florida legislature decreased the threshold to 80 percent approval so long as no more than 10 percent of the unit owners rejected the plan.

“In condo living, one owner shouldn’t be able to be a veto power when everybody else wants something,” said real estate lawyer Mark Grant, explaining the legislature’s thought process for the 2007 amendment.

Getting 100 percent approval was nearly impossible, so the change in law streamlined the process for developers aiming to buy out old buildings and replace them with lucrative towers or convert them to rental projects.

Grant, a shareholder with Greenspoon Marder in Fort Lauderdale, said there have been 200 terminations across Florida, but many of them are still pending. A recent ruling from the Third District Court of Appeal may throw several of those terminations into doubt. The court found the 2007 amendment applies only to condo building created after the law went into effect. All buildings with condo declarations pre-dating the amendment are subject to the 100 percent approval threshold, unless their governing documents say otherwise, which is rarely the case, Grant said.

Despite the changing legal landscape, real estate attorneys expect to see more condo terminations as developers scour the coast for new opportunity. Grant said this a trend seen not only in Florida, but all over the country.

“It’s going to happen all up and down the coast, where these older projects are on land where they can now build a high-rise with many more units,” he said. “As our downtowns grow and as our coastlines become more valuable, putting aside rising tides for the moment, I can see this continuing to happen.”

 

Source: DBR

Massive 28-Story Apartment Complex Proposed In Little Haiti

Land developers are all but salivating to sink their teeth into the rich, fatty, unblemished flesh that is Little Haiti real estate.

The Wynwood gentrification fight is over — the only people who can afford land there now are the sort who maintain Cayman Islands bank accounts, and scores of tall luxury apartments are headed to that neighborhood. So the development battle has edged ever northward, into the historically black and historically poor Little Haiti. And now one of the largest development proposals in the neighborhood’s history has been pitched to the City of Miami in a move that is certain to upset anti-gentrification activists.

SPV Realty, a New York real-estate firm that has been sued twice for allegedly refusing to rent apartments to black people in Miami, has proposed building luxury condo towers as tall as 28 stories in the heart of the neighborhood, at the corner of NE 50th Street and NE Second Avenue. SPV is asking the city to approve a change to the area’s zoning code to allow those towers to shoot skyward. The city’s Urban Design Review Committee discussed the proposal at its Dec. 21st meeting. If that committee approves the plan, the city’s Planning Board will then have to approve the project.

Photo via Kobi Karp Architecture

News of the application comes mere weeks after developer Tony Cho and investor Bob Zangrillo pitched their full plans for Magic City Studios, a 45,000-square-foot “innovation district” ten blocks north, at NE 60th Street and NE Second Avenue. But SPV‘s proposal dwarfs even Cho‘s plans.

Kobi Karp, the project’s architect and designer, tells New Times that his team spent a year talking to nearby residents, who requested many of the upgrades included in the plan. He stresses this is “not a luxury project.”

“People in the community, and city staff, asked us to improve the circulation of traffic, improve public space, provide a civic space that the community and neighborhood could use, such as an open air market where neighbors can go buy fruits, vegetables and/or flowers in a public space and plaza,” Karp says. “We have provided acres and acres in the overall master plan and the new central plaza area.”

Eastside Ridge Street View rendering

SPV owns Design Place Miami, a gated rental community on NE Second Avenue, near Churchill’s Pub and Chef Creole. The apartments have some of the worst Yelp reviews in Miami’s real-estate market because of alleged bug infestations and unresponsive management. Instead of fixing the complex’s issues, SPV is proposing razing the property and building a sprawling luxury complex called Eastside Ridge.

According to a development plan the company sent the city, the massive new complex would include 2,798 apartments, 418 hotel rooms, 283,798 square feet of retail space, 97,103 square feet of office space, and more than 4,600 parking spaces. The courtyard would be open to the public and include a large central green space:

Eastside Ridge would also boast large areas for “civic space” and local gatherings, as well as space for small hotels. SPV would build infrastructure to possibly link up to the Florida East Coast Railway line that borders the neighborhood to the east.

Design Place‘s buildings cut off multiple roads — such as NE Third and Fourth Avenues and many of the nearby east-west roads — from main thoroughfares in the neighborhood. The new complex would link many of the roads that have been blocked for decades. But it’s undeniable that the project represents a massive departure for the neighborhood. For example, the regulating plan that the city’s Urban Review Committee will discuss today mentions that Eastside Ridge will include space for a “green market,” and the complex will mandate that the market sell only classic crunchy-hippie items such as homemade soaps. Per the complex’s Urban Review application: Only handmade crafts, live plants and flowers, fresh fruits and vegetables, honey and pollen products, cheeses, jams and jellies, baked goods, prepared foods and drinks derived from fresh fruits and vegetables, soaps, and candles may be sold on any outdoor green market within this district.

Eastside Ridge Interior rendering

Likewise, Karp mentions the new spaces could include shops such as “yoga studios, spin classes, or dog-grooming facilities,” all hallmarks of upper-crust, Brooklyn-style gentrification. The project’s glittering façade also looks next to nothing like buildings on the surrounding streets, which mostly include mom-and-pop supermarkets, laundromats, and lower-income apartments. But Karp, however, says the project is designed to be “affordable, cost-efficient housing at market price” for people “who currently work and live in the community,” such as “policemen, firemen, teachers, or even the architects in his office.”

“Over in Sunset Harbour, you can go to Panther Coffee, a yoga box, a spin class,” Karp says. “We’re looking to provide the same services for the local community, whether it’s Haitian, Latin American… people who’ve always lived there, anyone. There are always some folks who will be concerned, but we had outreach for more than a year.”

There have long been concerns, however, that SPV‘s rental policies have been hostile toward people of color, particularly black people. In 2012, the HOPE Fair Housing Center sued SPV, alleging Design Place denied black applications and instead boosted white ones. HOPE sent six people — three white and three black — to SPV in a sting. HOPE says the white people were shown apartments, but the black applicants were told there were no vacancies. (SPV maintained the allegations were false.)

In January 2013, a federal judge ordered SPV to place copies of the Fair Housing Act inside Design Place and stop using advertisements with only white people in them. HOPE and SPV also reached a settlement wherein the company agreed to donate to charity and advertise the apartments in African-American publications. But SPV allegedly didn’t learn its lesson. HOPE says the realty company never upheld its end of the bargain. Plus, HOPE conducted a second sting, in December 2015, and sued the company again after black people were allegedly denied apartments a second time.

 Click here to download copies of the documents SPV Realty sent to the city.

 

Source: Miami New Times