Development Opportunities on the FEC Corridor: An Interactive Forum

Written by & filed in Community, Development Pipeline, Quality of Life, Urbanism.

The next wave of development in South Florida will most likely occur along the FEC corridor.  If you are a developer in South Florida, you should attend this forum.

FEC Program-April 17Please Register Online by:

Friday, April 12, 2013

Online at seflorida.uli.org

Exactly one year ago I wrote this article:

Rail, Real Estate and the Future of Development in South Florida

Last week Florida East Coast Industries announced they would begin operating passenger rail service between Miami and Orlando by 2014.  TheAll Aboard Florida 240-mile passenger rail service would be privately operated and Florida’s taxpayers would have no ongoing construction or operating risks.

Henry Flagler is arguably responsible for bringing development to South Florida in the late 19th and early 20th century when he extended rail service from St. Augustine south to West Palm Beach and eventually to Miami and then Key West. When he arrived to Florida in 1885 he began construction of the 504-room Ponce De Leon Hotel in St. Augustine. Realizing the need for a sound transportation system to support his hotel ventures, Flagler purchased short line railroads in what would later became known as theFlorida East Coast Railway. He quickly understood that rail spurred development and it allowed people and goods to travel from the Northeast to the Sunshine State. His hotel was an immediate success because of the rail connection.

Mr. Flagler must be smiling from the heavens today. After nearly half a century of interrupted passenger rail service, the choo-choo is about to make a comeback. The prospect for transit oriented development (TOD) has never been better for South Florida and passenger rail service would have a dramatic impact as to how real estate developers plan their next big project-just as Flagler did over a century ago.

Forget about building in the Everglades, the future for South Florida real estate developers is to build densely populated mixed-use, walkable communities near rail stations. According to Reconnecting America the benefits of TOD include:

  • Potential for added value created through increased and/or sustained property values where transit investments have occurred
  • Reduced household driving and thus lowered regional congestion, air pollution and greenhouse gas emissions
  • Walkable communities that accommodate more healthy and active lifestyles
  • Increased transit ridership and fare revenue
  • Improved access to jobs and economic opportunity for low-income people and working families
  • Expanded mobility choices that reduce dependence on the automobile, reduce transportation costs and free up household income for other purposes

No one knows the benefits of added property value better then Florida East Coast Industries and Flagler Development Company. Flagler Development Company is FECI’s sister company and they own a 9-acre strip of land in Miami’s fast-growing historic downtown, which has 2,500,000 square feet of entitled development rights. The land is just north of Government Center and would most likely be the end of the line for the Orlando-Miami connection.  It would be safe to say there would be a huge development here that would transform downtown.  Should the train station and the accompanying development become a reality  a new “city center” would be established. We can only hope that Miami Dade Transit, the FDOT and the FECI are coordinating efforts to make Government Center a successful downtown intermodal hub with a bus station. If done properly the area around Government Center could see real estate values skyrocket. (more…)

Biscayne Plaza Sold; Will A Transit Oriented Development Come to 79th Street?

Written by & filed in Community, Cyclists & Pedestrians, Development Pipeline, Market Watch, Transit, Urbanism.

 

Biscayne Plaza

Proposal for Biscayne Plaza- University of Miami, Urban Infill class project. Master of Real Estate Development and Urbanism

Last week Global Fund Investments and MMG Equity Partners announced they had acquired Biscayne Plaza ($12-14 million unconfirmed), a 347,000 square-foot grocery-anchored center located at one Miami’s most prominent intersections. Biscayne Plaza is located on the northwest corner of Biscayne Boulevard and NE 79th Street.  The property sits just east of the FEC rail line as well; making it an ideal site for a transit oriented development  should commuter rail return to South Florida along the FEC.

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According to the Global Fund Investments press release:

79th street is a major east west connector road (26,000 vehicles per day) that runs from Hialeah to North Miami Beach. Biscayne Blvd (50,000 vehicles per day) is a major north south corridor connecting North Miami Dade County all the way to Downtown Miami. More than 160,000 people live within 3 miles of the site.

The Shopping Center was acquired in an off market transaction. The shopping center will undergo substantial renovation. Global assumed the management, leasing and redevelopment responsibilities of Biscayne Plaza.

Global’s Managing Partner, Doron Valero, stated, “Biscayne Plaza represents a very rare opportunity in which we were able to acquire a premier shopping center situated on 18 acres of land in the heart of Miami Dade County. This acquisition once again validates our group’s ability to transact quickly and efficiently.” 

MMG Principal, Gabriel Navarro, added, “The acquisition of Biscayne Plaza is another example of our group’s entrepreneurial vision and desire to acquire strategically located value add assets.  We are excited about the acquisition as the location is irreplaceable and we believe in the revitalization of the Biscayne Corridor.”

This property is of considerable interest to me for a couple of reasons. Last year, while I was in graduate school and enrolled in an Urban Infill course,  my group was tasked with redeveloping Biscayne Plaza. I also live just a few blocks away from this eyesore of an underperforming  strip mall. Needless to say,  I have have a few ideas for the redevelopment of Biscayne Plaza. The subject property has tremendous potential, especially if South Florida can get its act together with respect to transit.

Thankfully the private sector is taking the lead with rail travel in South Florida. All Aboard Florida  (AAF) will begin running passenger rail service as early as 2015 from Miami to Orlando with stops in Ft. Lauderdale and West Palm Beach. From my understanding, a one-way ticket from Miami to Orlando will set you back $100 or so; at this price point AAF is targeting tourists and business executives that would otherwise fly or drive between the two cities. AAF believes it can take away market share from the airlines and rental car companies by providing a superior travel experience; I agree with them 100% percent.  (more…)

StreetEasy Releases First Quarterly Miami Residential Market Report

Written by & filed in Condo, Development Pipeline, Market Watch, Residential.

As some of you know I work for StreetEasy and we have been working hard to bring more transparency to the South Florida real estate market since we launched the site 6 months ago. Today we launched our very first quarterly Miami Residential Market Report.  Sophia Song, our rock star economist and Head of Research at StreetEasy, had this to say in the First Quarter 2013 Miami Residential Market Report.

As in so much of the country, inventory has been extremely tight.  Couple that with increased demand from domestic and foreign buyers, and it’s no surprise to see not only an increase in median sales price but also an almost 20% drop in distressed sales this quarter.”

There were 20% fewer condo distressed sales since last year and 17% fewer single-family home distressed sales.  Additionally, the number of closed transactions increased by 18.5% since a year ago.

Some highlights of the Miami report include the following:

  • New Developments – New development inventory has been slow to enter the market.  This quarter, there was 45.8% fewer sponsor sales compared to a year ago.  Yet, there were 33 closings this quarter that were above $3M, a 136% increase since the prior quarter.  Average PPSF jumped to $532 this quarter, an increase of 52% since what was traded a year ago.
  • Condo Resales  – This segment of the market had an increase of 21.5% in the number of transactions this quarter compared to a year ago and a 3.6% increase in median sales price.
  • Single-Family Home Resales – 67% of all single-family homes sold this quarter was under $300K.  Additionally, the median price was $195,900 this quarter, an 18.7% increase compared to a year ago.

The six major markets that are include in this report are:

  • Greater Aventura & Bal Harbour:  Golden Beach, Sunny Isles, Ojus, Aventura, Bal Harbour, Bay Harbor Islands, Surfside, and Indian Creek
  • Upper Miami Beach: La Gorce, La Gorce Island, Allison Island, Mid Beach, Nautilus, Bayshore, Sunset Islands, North Bay Road, Biscayne Point, Normandy Island, and North Beach
  • South Beach & Fisher Island
  • Urban Core: City of Miami (includes Downtown Miami & Brickell), Coral Gables, Key Biscayne, Pinecrest, and South Miami
  • Southwest Miami Dade: Kendall, Doral City, Sweetwater, Tamiami, University Park, Westchester, Fountainbleu, and Coral Terrace
  • Northeast Miami Dade: Miami Shores, North Miami, Biscayne Park, North Miami Beach, and Golden Glades

About StreetEasy.com:

StreetEasy.com is a comprehensive real estate information website, providing consumers detailed sales and rental information and the tools to manage that information to make educated decisions.  The site has become the reference site for consumers, real estate professionals and the media and has been widely credited with bringing transparency to the New York City real estate market.  The site covers New York City, the Hamptons, Northern New Jersey and most recently launched in the South Florida and Washington, D.C. markets.

Video: Michelle Bernstein Talks Miami Restaurants, Culinary Careers

Written by & filed in Taste & Toast.

From Zagat:

Chef Michelle Bernstein is one of the biggest culinary names in Florida – her restaurant Michy’s is one of Miami’s best, according to our last survey. We recently sat down to talk to her at Crumb on Parchment, her more casual bakery in cafe in the city’s Design District. In the video above, Bernstein shares her thoughts on the city’s bustling scene, working with significant others and offers some career advice for those who are interested in the biz.