Real Estate Information Archive

Genting Malaysia Berhad, which is Asia’s third largest casino company, has finally acquired the Herald land from the McClatchy Co. at a staggering $236 million.

This 14 acre prime, waterfront property, located at north downtown Miami was owned by The Miami Herald. This landmark property deal came as a surprise to many and marks the entry of this Malaysian giant into Miami’s booming development zone. Executives at Genting reported that the company intends to pump in about $2 to $5 billion on this development project which will change the skyline of Miami along with creating employment for thousands.

Michael.Y.Cannon, a real estate analyst in Miami, stated that this property deal is the costliest since the Dade history. The sale price is not just for the land alone but also includes the Herald building built on this site. The building will of course have to be torn down to make way for new hotels, residences, shopping centers, a convention center and much more.

Miami is slowly making its change into a city-state and this prime property located between the MacArthur and Venetian causeways is the best area to start the development. Miami Herald has been given two years to shift its operations and publisher David Landsberg said that the company was on the lookout for another property in central Miami-Dade.

The sales proceeds are also going to be split up into three; $163 million will be put into the company’s pension plan, $65 million to pay off the debts and $2 million will go to the taxes. The McClatchy shares in the market also touched an all time high following the announcement of the deal.

The development plans flooding downtown Miami has escalated in the recent times owing to the high potential of this area as a big tourist spot.

The news of the Miami Herald’s waterfront property acquisition by the Malaysian casino giant, Genting is proof of the fact downtown Miami is now being sought after by hot property dealers who want to remake this coastline. The Genting group is planning for a mixed development zone with hotels, boutiques, residences, restaurants, convention center and malls in this 14 acre land along the Biscayne Bay. The potential addition of a casino could add to the South Beach glitz glamour.

Some of the upcoming projects and plans for this Magic city include a renovated and refurbished amphitheater in the Bayfront Park which itself is undergoing a major change. The upcoming development zone at the Herald site and the Adrienne Arsht center or Performing Arts which is also home to the Cleveland Symphony; both these projects started off on a shaky note but are well on their way to a good ending.

The Bicentennial Park along the American Airlines arena is being refurbished into a museum park. The Miami Science Museum which is a $265 million project has investors like philanthropist Phillip Frost and his wife who have pledged $35 million to make this project a reality.

After the Herald site, it is now the turn of the 14 acre Omni center and Hilton downtown Miami to be acquired thus heralding a new beginning for this upcoming city-state.

The Viceroy Hotel, which is a staggering 148-unit property situated at the ICON Brickell Complex in downtown Miami has been sold off to a Maryland Company at a price of $36.5 million.

The hotel which was the brain child of the Related Group has been now taken over by the Pebblebrook Hotel Trust as they believe this property has immense potential for the booming Miami’s tourist industry. This hotel is an important project in our plans of diversification into Miami’s heart and we believe that this acquisition would do our company a world of good.

The Viceroy Hotel was built in 2009 and is part of Tower No. 3 at the ICON Brickell. The highlight of the hotel is the state-of-the-art spa built over an area of 28,000 square feet. Another star attraction is Club 50 which is the rooftop lounge at Viceroy and attracts a lot of clients. The room occupancy in 2010 was 68% at an average daily rate of $183 and the Pebblebrook team has full trust in the potential of these numbers to go up.

According to Jon Bortz who is the chairman and CEO of the Pebblebrook trust, acquiring the Viceroy at such an attractive price was beneficial for the company’s portfolio as they were looking at opportunities for geographical diversification.

Though the talks are complete, the final papers are yet to be signed and the deal officially closed. So as of now, the sale is still pending officially.

There are still more than 700 new condos that lie unsold in Downtown West Palm Beach in spite of the South Florida real estate boom, says the Florida-based property dealer, Condo Vultures.

The company says that, as per an inventory taken on March 31^st, 2011; this number represents approximately 21% of the total number of condos that was built in this area since 2003. When compared to 2010, the first quarter of 2011 has seen an increased sales activity with buyers purchasing up to an average of 12 condos per month for a blended price of $236 per square foot.

According to Condo Vultures, since the real estate boom began, 16 odd condominium projects have been started by developers in the area, each comprising of more than 3400 units. Though there are still so many unsold condos remaining in the market, the sales in Downtown West Palm Beach is much higher when compared to other areas like Greater Downtown South Miami Beach and Sunny Isles Beach. But a bad news is that around 500 condo units that were purchased in bulk earlier are now being tried to be sold off for a profit by the purchasers.

The sales graphs have dipped low following the dip in the real estate market. Individual buyers are now selling off their condos to bulk buyers who are in turn setting up residence blocks. As per the statement released by Condo Vultures, more than 2700 units have been sold off in this region for a price of $1.1 billion since its conception in 2003.

Real estate transaction in South Florida often happens in various stages; transactions take place when the property is up for sale and ends when the title is transferred to the buyer by making a deed with the local government.

Kevin Durant of Oklahoma City Thunder fame raised quite a buzz off-court when he laid down $1.825 million for a luxury condo in Miami. The three-bedroom, 3,535-square-foot condo is in a deluxe property on 900 Biscayne Boulevard.

According to reports from reliable sources, the deal for the property was closed on March 30, and it was closed by a company affiliated by him, K. Durant Enterprises. The condo is located in a 63-story skyscraper that is located a short distance away from American Airlines Arena, where Miami Heat is based. It is also within close proximity to Miami Beach. This high-rise building certainly seems to be very popular because it also houses Dwayne Wade of Miami Heat who lives in a custom built unit three floors below the one picked up by Durant.

Fans of the Oklahoma City Thunders do not have to worry though, because it seems unlikely that Durant has made this purchase for anything apart from investment purposes. He has made it very clear that he wants to play in Oklahoma for as long as possible. He has recently extended his contract with the Thunder for another five years and seems all set to play there through the 2015-16 season. Incidentally, this was not the only pricey real estate deal he did this year. He also paid $1.8 million for a 3,460-square-foot home in Gaillardia.

It could just be that Durant wants to spend some free time in Miami, thanks to the irresistible location his new condo has.

Investors in apartments and condos in Brickell have lots to be cheerful about since there is a surge in demand for high-quality units. According to reliable sources, the average rent for an apartment in Brickell which was $1,943 a month in February 2010 has now gone to an impressive $2,197 in February 2011. This hike amounts to 13.1% and it indicates that the market is moving out of the depressed condition that it was in for the past few years.

There are many takers for apartments and condos even at these increased rental rates, with overall vacancy at only 2.5% when compared with the rate of 9.6% just a year ago. The rental market here is driven by young professionals and also by people who have had to sell their homes due to the economic downturn. Another reason for the increase in rates is that there is insufficient inventory to meet the increasing demand.

There is a growing trend in Brickell to buy units in condos to be used as second or even third homes because they are available at the right price. Lots of people also pick up luxury apartments here because they are looking to downsize from large estates.

Brickell continues to offer great value to students and young professionals even after the rise in rentals because it is far cheaper than South Beach. This is a great time for investors because they can rent out their units at a good price and also realize a better return when they sell the unit eventually.

In news that brings a lot of cheer to the Miami real estate industry, the 251 room Continental Oceanfront South Beach hotel has been sold for $61 M. This property was badly hit by the recession and its owners had just worked out a new refinancing deal in order to avert foreclosure.

This hotel has been picked up by a joint venture between a local company, the InSite Group, and Cube Capital which is based out of London. Ben Shmul, the Group President and CEO of InSite were very eager to communicate the new venture’s plans for this property. It will continue to operate under the new ownership but will go through a radical renovation. The owners plan to reposition the newly renovated property and are targeting a date in Q4 2012.

The fact that it commands an amazing waterfront location and came at a temptingly low price makes this property ideal for repositioning. The new owners are not new to the hotel industry since they already run another hotel on Fort Lauderdale beach together. The InSite group, based in Weston Florida, brings lots of expertise to this joint venture since they specialize in developing neglected properties, both residential and commercial. The billion dollar investment management firm Cube Capital has the financial muscle to see this important exercise through.

This deal follows the trend of the improving prospects in the Miami real estate industry, which has only recently found things to be happy about. An influx of foreign investment has given new life to it.

The Fairmont Turnberry Isle resort known for its legendary nature has opened the door for travelers for complete entertainment with ultimate luxury fitness as well as training experience. This will be known as the “one-stop shop” for your rehabilitation, sports performance training and nutrition.

The managing director of Fairmont Turnberry Isle commented upon the success as, “This is an unprecedented partnership that will transform Fairmont Turnberry Isle’s already acclaimed reputation as a premier golf resort into the ultimate performance training center for athletes at all levels”.

“Our partnership with Pete Bommarito, one among the top performance training coaches in the industry and Dr. Matthew Cooper, President of USA Sports Therapy paves the way for many exciting opportunities including providing our guests and club members with cutting-edge fitness and nutrition programs. There’s nothing else like this at a resort of our caliber”, he added.

The massive collaboration with renowned personalities will attract more skilled professionals from different levels to this place such as:

• Physical therapists
• Bio-mechanical specialists
• Fitness trainers
• Nutritionists
• Rehabilitation therapists
• Muscle activation specialists

Apart from offering these benefits to the Fairmont Miami hotel private club members and guests, grants counseling and  training for the present clientele of Dr. Cooper and Bommarito.

South Florida is witnessing an increase in the resales of residential properties this year because buyers are finding the market conditions to be very attractive. The prices are extremely low when compared to the real estate boom of 2006. In addition, the government offers an $8,000 tax credit for first time home buyers that many people are taking advantage of.

The result is that an astounding 6,250 residences have been resold per month over the year 2010. This amounts to approximately 75,000 residences in Miami-Dade, Broward and Palm Beach. Only 5,600 residences were resold per month in the year 2006 when the real estate market was last very buoyant.

These figures indicate that real estate investors can be attracted to South Florida as long as the prices are right. However, many people are unhappy with the current situation. People who invested in 2006 when the market was at its peak are unable to offload their properties without incurring immense losses. The current prices are 40 percent lower than in 2006 on an average.

The size of this residential resale business was $16.6 billion in 2010. While this is an increase of $1 billion over 2009, it is a whopping $10 billion less than the total residential resales business in 2006.

Miami has always been at the center of the South Florida real estate boom, and more so in the case of condos. Realty analysts have noticed an enormous jump in condo sales for the last three quarters when compared to the same period of the previous year. This jump, an astounding 62% increase, comes as excellent news to the market that has been through a very bad period due to the recent financial crisis.

This increase in sales is spread over the urban core of Miami which includes the Central Business District as well as Omni and Brickell.

Property developers have been able to reduce their inventories at extremely reasonable rates because of the inflow of money into the market. Many deals are done with cash although some developers do offer financing as well.

What is even more interesting to realty market analysts is that a sizeable majority of condos in the Miami urban area are occupied. In fact, occupancy of condos is believed to be as high as 74 percent in this area.

This robust growth in condo sales and occupancy is indeed good for the market. It indicates a revitalization of the area and that the worst seems to be over.