A Coral Gables development company expects to have a study completed next month that could determine whether it builds a privately funded $1 billion train linking Miami with Orlando.
If the ridership study finds enough demand, Florida East Coast Industries could begin construction next year, Husein Cumber, executive vice president of Florida East Coast Railway, an affiliate of FECI, said Monday.
Wells Fargo Bank South Florida Regional President Frank Newman says the bank will originate $500 million in home mortgages in Miami over the next five years.
The money, from the charitable foundation arm of the bank (NYSE: WFC), is mostly to fund down payment assistance grants of up to $15,000 each for eligible home buyers as part of the NeighborhoodLIFT program. In Miami, this program will be administered by nonprofit Neighborhood Housing Services of South Florida.
"We are honored to be selected as the first in Florida and the sixth city in the U.S. to host the NeighborhoodLIFT program," Miami Mayor Tomas Regelado said. "We have been working with Wells Fargo in securing abandoned houses and we have a great relationship with them."
Shelley Freeman, Wells Fargo's regional president of Florida, said it's part of the bank's commitment to stabilize neighborhoods, especially those that have been most impacted by the recession. After Miami, Wells Fargo will roll out the program in Orlando, Tampa and Jacksonville later this summer, she said. The other cities will receive $7 million each.
"We have always worked across all neighborhoods and all income levels," Freeman said from the lawn of a participating homeowner in Miami's Buena Vista neighborhood. "We are the largest lender to minorities in the nation."
Mortgage Daily recently reported that Wells Fargo was the biggest home lender in the nation during the first quarter, with nearly 36 percent of all mortgages originated.
Freeman said the bank has committed to originate $1.75 billion in mortgages in Florida over the next five years. Frank Newman, Well Fargo's regional president for South Florida, said $300 million of these mortgages would be made in Miami.
"Foreclosure prevention, home buyer assistance and lending are all critical to getting back on track," he said.
Some of these mortgages will also be for home renovations, so buyers can purchase homes and get them into move-in condition, Freeman said.
During 2010, Wells Fargo and its affiliates originated $2.44 billion in mortgages in South Florida, according to a review of Home Mortgage Disclosure Act data using Compliance Technologies' database. It was the largest home lender in the region.
While the $300 million in new mortgages will be originated by Wells Fargo, the NeighborhoodLIFT program is open to all banks, said Arden Shank, president and CEO of Neighborhood Housing Services of South Florida. These can be any type, including conventional, Fannie Mae or Federal Housing Administration loans.
The home must be in Miami and the borrower must make no more than 120 percent of the area median income – about $68,000 for a family of four, he said. The $15,000 down payment will be forgiven after five years and cannot be used to take cash out of the home. The program cannot be used to buy a home that is owned or managed by Wells Fargo.
The money will also be used for homebuyer training and education, Shank added.
"Access to credit has been a big issue," he said. "This initiative will focus on getting new buyers financing because prices are as low as they have been in years."
Neighborhood Housing Services is holding an event for potential NeighborhoodLIFT applicants June 1-2, starting at 10 a.m., in the Doubletree Miami Airport Convention Center, West Hall. Interested homebuyers can go on virtual tours of available homes, or bus tours to see them in person.
Freeman also announced that Wells Fargo's foundation would be funding $3.5 million in local initiatives in Florida. This money would be distributed to local nonprofits to support local neighborhoods, she said. Newman said some of the money could be used for neighborhood beautification projects.
The community grants and homebuyer assistance are not only likely to boost the local economy, but they could also boost the image of the mega bank after protesters caused a stir at its annual meeting in San Francisco last month.
The strategy, a "blueprint for expanding travel to and within the United States," outlines a goal to attract 100 million international visitors annually by the end of 2021, which would be a more than 50 percent increase over numbers expected in 2012.
The strategy includes promoting tourism through public-private partnership Brand USA, of which Visit Florida is a founding partner; removing barriers to U.S. travel; taking steps to ensure a high-quality visitor experience; coordinating across government; and conducting research and measuring results.
Miami's oldest bar Tobacco Road will be at its current location for at least the next three years, despite selling its land to an investor looking to redevelop.
The buyer is Carlos J. Mattos, founder and president of Hyundai Colombia Automotriz, the exclusive distributor and importer of Hyundai Motor Company . The address listed on a deed tied to the transaction matches that of Isanic Hyundai Trading, at 1200 Brickell Ave., which Mattos controls.
Mattos' group, Tobacco Road Property Holdings, bought an assemblage along South Miami Avenue, which includes a parking lot to the west. As part of the deal, Tobacco Road and the The River Seafood & Oyster Bar have a lease-back that keeps them there for at least three years.
Fortune International Realty broker Fabio Faerman, who represented Mattos' group, said his client would consider all options with the site, including keeping Tobacco Road there. But, the eventual redevelopment could include tearing down the commercial strip along South Miami Avenue and offering the current tenants space in the new project.
The Daily Business Review was first to report the $12.5 million transaction.
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Swire Properties' $1.05 billion Brickell CitiCentre project is slated to generate 1,700 construction-related jobs when it launches in late June.
Swire Properties has announced plans to begin construction at the end of June on its $1.05 billion Brickell CitiCentre project, which is expected to generate 1,700 construction-related jobs.
The project is planned for 9.1 acres on both sides of South Miami Avenue, between Sixth and Eighth streets, in Miami. Brickell CitiCentre is the biggest single project to launch in South Florida in several years and is to generate more than 3,500 permanent jobs after completion, according to the developer.
Christopher Gandolo, Swire's senior VP of development, noted in Wednesday's statement that a delay in the June launch could be triggered by "public partner agreements," which were not explained. But, one of the agreements is tied to Swire's selection to redesign and enhance the Eighth Street Metromover station, which the Business Journal reported on in April.
The first phase of the project will consist of five buildings with 520,000 square feet of retail shops, 800 condominium units, 243 hotel rooms, 93 serviced apartments, an office tower of 110,000 square feet and 3,100 parking spaces. A second office tower of 110,000 square feet could be part of a second phase that would come later.
In September, the Business Journal reported that the developer planned to dedicate 95,000 square feet of the project to medical offices and a wellness center.
Swire Properties, which built-out Brickell Key, is the U.S. subsidiary of Hong Kong-based Swire Properties Ltd.
On Wednesday morning, Swire also announced a short list of four contractors for the $100 million foundation and garage phase of the project. The contractors are Balfour Beatty; Bouygues Batiment International through local subsidiary Americaribe with John Moriarty & Associates of Florida; Turner Construction Company, in partnership with Dragados USA; and Odebrecht with Facchina. The companies were selected from a list of 10 contractors.
The foundation and underground parking will span seven acres, be located 24 feet below ground and take about 18 months to complete. The contractor selected to do the work will be chosen based on its construction plan, as well as its strategy for managing traffic, workplace diversity and safety, according to Swire's statement.
Swire is encouraging the finalists to seek out both union and non-union labor.
Growing demand drives up Brickell land values
By Patricia Hoyos
Increasing demand and scarce supply are making land and commercial sites in Brickell more and more valuable.
"There aren't that many sites left along Brickell Avenue, so prices are going up," said Richard Tarquino, senior vice president for CBRE Investment Properties.
Land prices went down significantly in 2008 and 2009 but have since experienced a boost. Brickell is in a different place than it was back then, said Mark Gilbert, executive vice president for Cushman & Wakefield's Southeast Capital Markets Group. Condominiums have been substantially absorbed, and the 35-story 1450 Brickell and 47-story Wells Fargo, two of the urban core's three newest office buildings, are almost fully leased.
"Brickell has gone through its ups and downs through the years," said Mr. Tarquino, "and it has grown into a little city unto itself that's becoming a more walkable area. You are getting more retail venues. It's very easy for people to live in the downtown area and also work there. That is something that wasn't there previously."
Prices are now being propelled upward as Brickell continues to become a true urban neighborhood with new residential projects in the pipeline, Mary Brickell Village adding more tenants and Swire's mixed-use CitiCentre project promising to fulfill the area's need for a retail component.
"Prices for parcels vary from site to site, block to block," Mr. Gilbert said. "It depends on the size of the parcel and the development on the parcel."
Brickell has few undeveloped parcels, so many developers are turning their eyes to sites with buildings that don't use their land to their full potential to tear them down for future development.
Parcels in the Fifth Street and 10th Street corridor from Miami Avenue to the water near Swire's planned 9-acre CitiCentre, in particular, can expect to see their prices increase.
"I think that any parcel close to it is going up [in price] substantially," Mr. Gilbert said. "Everyone is benefitting from the rising tide."
"I think one of the things that we have seen," he added, "is that parcels do not have to be waterfront anymore for residential developments to be successful."
Brickell condo rents soar 13% in year
By Marilyn Bowden
Rental rates for Brickell area condos continue to escalate as demand exceeds inventory.
Denise Sicuso, managing broker at Esslinger Wooten Maxwell's downtown-Brickell branch, said the average rental rate went up 13% from the end of 2010 to the end of 2011, from $2,067 a month to $2,239. The average rate per square foot rose from $1.89 to $2.12.
That means the overall average rental rate for condos has now overtaken the average rate in apartment buildings in the area, reported by Reinhold P. Wolff Economic Research at $2,173 in its February report.
"That figure is just slightly lower — 1.1% less — than in February 2011," said Reinhold Wolff President Keith White. "Most areas have backed off from strong increases the year before."
According to Esslinger Wooten Maxwell's April Facts & Trends report, Ms. Sicuso said, rental activity in Brickell during the first-quarter of the year has increased 109% over the past four years.
"The overall ratio of transactions across Miami-Dade County is 48% sales to 52% rentals," she said, "but this market seems to be closer to 75% rentals."
She said this is probably because Brickell has fewer foreclosures and short sales listed.
Facts & Trends records an increase in the number of units for rent in Brickell between January and March of this year from 459 to 516 units, Ms. Sicuso said.
But demand is such, Realtors say, that anything that does become available is immediately snatched up.
"There is no inventory," said Melanie Hyer, a broker at Keller Williams Miami Beach.
"Sometimes people who want Brickell have to go across the river, and those who are already renters may find when they go to renew that their rent has been raised 10%."
The Brickell rental market, said Rita Regev, broker-associate at Optimar International Realty, "is stronger than ever. Inventory is low, and the better units get snapped up very quickly, usually for asking price.
"It's no longer just students and young professionals. The area is appealing to the 30s through 50s age group as well."
Most developers no longer have a rental portfolio, Ms. Hyer said, so most landlords are unit owners — and that means potential renters have to make sure, first of all, that the owner is not facing foreclosure.
"They also need to check the parking situation," she said. "Some buildings charge guest parking fees or fees for valet parking for a second car."
An important driver for the rental market, Ms. Sicuso said, is the ongoing financing problems residential buyers face.
"Even for those who are financially stable," she said, "it's difficult to get approved for loans. Resales would be their only opportunity, because developers of new construction are requiring a minimum of 50% for closing.
"If the building as a whole isn't Fannie Mae-approved, a loan will only be approved for 75% of the appraised value — and appraised values are still coming in low."
There's also, says Ms. Regev, the simple appeal of a newly revitalized downtown.
"Art, entertainment, fine dining and shopping are now all in walking distance or a short drive away," she said. "For a native Miamian who remembers the downtown of the 1970s and "80s, this is a whole new city."
Bank of America has sent 51 units in the Parc Central Aventura condominium to auction after winning a $20.4 million foreclosure judgment against its owner.
The bank (NYSE: BAC) won the judgment against MCZ/Centrum Florida XV, a partnership between Chicago developers MCZ Development and Centrum Properties, over a $14.3 million mortgage, plus interest and fees. The unsold units in the 20-story condo at 3300 N.E. 192nd St. are set for online auction July 2.
The building has been in receivership with Warren Weiser, of Coral Gables, for several years.
The developer bought Parc Central Aventura for $105 million, or $299,145 per unit, in 2006. It then converted its 352 units into condos with major upgrades to the building, thanks to a $108 million mortgage.
Although Bank of American is the lead plaintiff and loan manager, the mortgage is actually spit up five ways: Bank of America (25 percent), Wells Fargo Bank (25 percent), Charter One Bank (25 percent), Lakeside Bank (12.5 percent) and Emigrant Realty Finance (12.5 percent).
When the foreclosure action was filed in October 2009, MCZ/Centrum owned $23.3 million on the mortgage and had 65 unsold units. The 14 sales since then have reduced the balance of the loan.
MCZ/Centrum also lost the stalled Arches mixed-use project in Boynton Beach to foreclosure.
The Omphoy Ocean Resort in Palm Beach looks headed into the hands of billionaire and former U.S. Senate candidate Jeff Greene after his company won a $66.6 million foreclosure judgment against its owner.
The lawsuit against CSC PB Beach, an affiliate of West Palm Beach-based Ceebraid-Signal Corp., was originally filed by Stabfund USA, but the lender sold the loan to Green's 2842 S. Ocean LLC. The new plaintiff won the judgment based on a $60 million mortgage, plus interest and fees.
The 134-room hotel on an oceanfront site of 2.7 acres is set for online auction May 25. Greene's company can bid up to its judgment amount.
A Chapter 11 filing in U.S. Bankruptcy Court won't prevent the owners of the Shooters Waterfront Café and the Bootlegger bar in Fort Lauderdale from losing its property.
BIMA II and Roscoe both filed Chapter 11 in March to stall a foreclosure lawsuit from FirstBank Puerto Rico (NYSE: FBP) that was filed in December. The bank wants to seized the restaurants at 3033 N.E. 32nd Ave. over a $10.4 million mortgage, plus interest and fees.
On April 5, U.S. Bankruptcy Judge Raymond B. Ray approved the bank's motion for relief from the stay of its litigation, allowing it to continue the foreclosure process. The borrower agreed to an $11.8 million foreclosure judgment.
The auction date won't be set until Judge Ray approves it.
The targeted property is on the east side of the Intracoastal Waterway at 3003 and 3033 N.E. 32nd Avenue, just south of Oakland Park Boulevard. Shooters is in 14,425 square feet, including waterfront dining. Bootlegger has a 6,415-square-foot restaurants plus a pool with a 1,227-square-foot tikki bar.
Bima II managing member John H. Wile has filed for personal bankruptcy in April.
Fask Realty escaped two foreclosure lawsuits from Lydian Private Bank, but now Sabadell United Bank is coming after its Palm Beach Gardens warehouse.
Lydian filed foreclosure lawsuits in 2009 and early 2011 against Fask Realty over a $7.7 million mortgage, but the bank withdrew the case both times. After Lydian failed last year, Miami-based Sabadell assumed its loans.
On May 1, Sabadell filed a foreclosure lawsuit against Fask Realty, along with guarantors Steven D. Friedman and Charlotte Friedman. It targets the 86,372-square-foot office/warehouse complex on 10.3 acres at 354 Hiatt Drive in the PGA National Commerce Park.
West Palm Beach attorney Allan R. Tomlinson represents Sabadell in the lawsuit. He also represented Lydian in the previous cases.
Global Care Solutions, also known as Stainsafe, is the major tenant on the property. The company distributes furniture cleaning and stain-protections products.
The owners of the Top Tomato Co. produce distribution center in Pompano Beach could be tossed by a foreclosure lawsuit.
General Electric Capital Corp. filed the lawsuit on April 23 against Top Tomato and its CEO and President, Jeffery Pfaff. It targets the 31,834-square-foot warehouse at 290 S.W. 14th Ave. and a vacant 0.8-acre site alongside it. The property was bought for $3.2 million in 2005.
GECC provided Top Tomato with a $2.2 million mortgage that year, plus a $1.5 million second mortgage, which was assigned to the U.S. Small Business Administration . GECC named the SBA in its complaint, along with Wells Fargo Bank, which won a $103,601 judgment in March against Top Tomato and Pfaff.
According to its website, Top Tomato has 50 employees and specializes in packing and distributing tomatoes.
GECC is represented in the lawsuit by Tampa attorney Rabain M. Brooks.
A pair of warehouses in Miami totaling 62,280 square feet are headed to auction after their owner lost a $3.6 million foreclosure lawsuit.
Banco Popular North America won the judgment against Alejo Florida Properties over a $3.2 million mortgage, plus interest and fees. The loan is the local portion of a $56.3 million mortgage that secured properties in multiple states. The properties were managed by California investors Enrique Alejo, Randy Alejo and John Alejo.
The Miami buildings, warehouses at 1901 and 1801 NW 22nd Street, are set for online auction June 7. They were built in 1981.
A Shell service station near Lake Worth is headed to auction after its owner lost a $3.1 million foreclosure judgment.
IDBLW, an affiliate of Israel Discount Bank of New York , won the judgment against Palm Beach International Inc. over a $2.6 million mortgage, plus interest and fees. The borrower is managed by Aabhash Pradhan and Andre Pradhan.
The 1,056-square-foot service station on 0.9 acres at 2201 10th Ave. N. is set for online auction June 7. It was bought for $2.4 million in 2004.
The same borrower is facing a $2.8 million foreclosure lawsuit from First Citizens Bank & Trust Co. over a gas station in Lantana.
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