July 6th, 2002
Inside South Florida, the latest in the news in real estate to stay up-to-date, ahead of the curve in less than 5 minutes.
Mortgage
Mortgage rates dropped for the second week in a row, but that didn’t revive demand from homeowners or potential buyers. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 5.74% from 5.84%. Read More
Acquisition
Avanti Residential purchased the 360-unit apartment complex at 218 N.W. Eighth St.,Soleste Grand Central apartments in the Overtown neighborhood of Miami for $181 million ( $502,778 a unit).
Soleste Grand Central was 95% occupied only six months after its completion in 2021, according to Avanti. Units in the building are listed on Apartments.com for between $2,139 and $3,960 a month.
This acquisition is Avanti’s fourth South Florida investment in the past year, following major purchases in Boynton Beach, Doral and St. Petersburg. Avanti has now invested nearly $500 million in Florida.
New Development
Villa Valencia, a 13-story, 39-unit building at 501 to 525 Valencia Avenue is 95 percent sold with $100 million in closings so far. Three units are left, including a $14.9 million penthouse and two units averaging about $4 million, one of which is currently in contract.
Northlink Capital plans to build a condo project with co-living on a Denny’s-anchored property in Miami Beach at 7140 Collins Avenue in North Beach.
The project, called 72 Collins Condominium, designed as residential/co-living with ground-floor retail space. It will include an 11-story condo building and a separate eight-story annex that will be built over the existing commercial buildings with a unified facade.
The Market
According John Burns Real Estate Consulting at the end of May, buyers still outnumbered sellers everywhere, per ~1000 RE agents.
Miami is not building enough housing to match national average.
For every 1,000 existing homes in the Miami metro area, 9.9 new housing units were authorized in 2021, compared to 12.5 new units nationally, the report showed.
The Miami Metro area is unusual in that it has essentially run out of new developable land in all directions, thanks to borders that include the Everglades National Park and Atlantic Ocean.
Palm Beach County Commissioners may reduce property tax rate
According to the county's property appraiser, taxable property values have increased 13.55% from last year to now. County commissioners addressed the short and long-term effects of rising taxes and cost of living at a recent county-wide budget workshop. Read more
The number of active U.S. listings jumped 18.7% y/y in June, largest annual increase going back to 2017 per
Realtor.com.
; new sellers entered market at faster rate than before pandemic housing rally began
Made in London #MovingtoMiami
Genesis Global , a London-based financial-technology company is promising to hire or retain 140 people in the Miami area over the next three years. The company has been approved for incentives from the Miami Downtown Development Authority as part of the DDA’s Follow the Sun program aimed at encouraging job creation.
Zilch, a London-based tech firm ,“buy now, pay later’ startup with plans to hire upwards of 100 employees, is also expanding in Miami, as Refresh Miami has previously reported. Zilch, a unicorn, was approved for funds through the Follow The Sun program in September 2021, but its identity was revealed last week. Zilch, which acquired Miami-based NepFin last year, was initially looking at New York or San Francisco before ultimately deciding on Downtown Miami, according to the DDA.
A recent Miami Downtown Development Authority study found that more than 53% of the companies that leased space in Brickell last year were new-to-market companies.
The office building, at 830 Brickell Plaza in Miami's Brickell Financial District, is already 60% leased and is expected to be ready later this year.
Tenants already signed:
WeWork (NYSE: WE), a New York-based coworking company, signed a lease for 146,000 square feet — enough for more than 2,400 desks — in January 2019.
Thoma Bravo, a Chicago-based private equity firm with $113 billion in assets under management for technology investments, secured 36,500 square feet in April 2021.
Microsoft Corp. (Nasdaq: MSFT), signed up for 50,000 square feet for its Latin America regional office in September 2021.
CI Financial (NYSE: CIXX), a Toronto-based global asset and wealth management company, announced in September 2021 that it would open a 20,000-square-foot space that would serve as its headquarters in the U.S. Four months later, CI Financial stated it would double its footprint there to 40,000 square feet.
AerCap (NYSE: AER), a Dublin-based corporation and the largest aircraft leasing company in the world, announced in February that it will move its Western Hemisphere headquarters out of Los Angeles and into a 20,000-square-foot space.
Marsh, a global insurance brokerage and subsidiary of New York-based Marsh & McLennan Cos. (NYSE: MMC), agreed to lease 25,000 square feet this past March.
Winston & Strawn, an international law firm in business for 170 years, recently opened a temporary office in downtown Miami ahead of leasing two floors at 830 Brickell, a partner of the firm told the Business Journal in May.
A-CAP, a New York-based financial company with more than $6 billion in assets under management, closed on a lease for 20,000-square-foot in June.
Source: South Florida Business Journal
Following the news from last week that Citadel is moving HQ to Miami:
The firm’s headquarters shift to Miami began to accelerate months ago with a waterfront property in the city’s financial district: $363 Million Miami Land Purchase.
Iif you want to go deeper into the subject Citadel Moves to Downtown Miami, Fast Becoming the Place to Invest in Office Space
Solar Panel
Florida added 44% more residential solar panel systems in 2021 .As the United States spent part of 2021 focused on building more renewable energy options to combat climate change and high utility costs, Florida’s Public Service Commission reported a 44% increase in the number of customer-owned power generators in the state. In 2020, there were 90,552 systems, called Renewable Generation Interconnections, in the state. In 2021, that number grew to 130,947. Source: WFLA