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Trends

Increased Capital Boosting Miami Industrial Market Outlook

The Greater Miami industrial market is thriving with exceptional fundamentals and robust pricing metrics that continue to surpass record highs for best-in-class product.  Vacancy rates are at 4% and last quarter we absorbed more than 500,000 square feet.  Average asking monthly net rental rates are well above $0.70 per square foot, and rent growth remains steady with 3.1% year-over-year gains.

The three major factors influencing the market in 2019 are availability of capital, e-commercial online sales and a perceived rising interest rate environment. On a national level, there is $250 billion of capital in the closed-end institutional funds, which is actively looking to deploy. Industrial real estate is a hot ticket, offering stable returns and growth to both foreign and domestic investors.  

With the recent investments of Blackstone and Cabot Properties in South Florida and Starwood Capital Group’s move to the Miami area, the region is transforming into a major financial capital that also commands a higher profile for international high-net-worth families and funds.  The scarcity of land, which has been pushed to the forefront with the dynamic growth of residential and commercial projects, has also created a stable investment environment for institutional players.

Last year, e-commerce online sales totaled approximately $500 billion and they have been increasing about 15% annually.  It’s estimated that 1.25 million square feet of distribution space is needed for every $1 billion increase in online sales.  On a national scale, if online sales reach $700 billion by 2021, the corresponding warehouse growth would be 250 million square feet of commercial warehouse product.  Currently, Dade and Broward County have 5.3 million square feet under construction with a limited pipeline for future projects.

Interest rates are projected to rise eventually, and yet, the low rates continue to play a factor in industrial real estate pricing. With 10-Year Treasury rates under 2%, industrial caps have continued to compress.  Class A industrial properties are currently trading in the sub-5% rates.

As the industrial market remains attractive even as prices have increased, some of our clients are deciding to recapture equity and gains, both on the institutional and corporate side.  The strong demand and scarcity of future product promises to continue a positive pressure of rent growth.  On the user side, medium-sized tenants are looking for build-to-suit properties that can enable better value and adaption for future business plans.

Mark Behling is a Senior Associate for Industrial Real Estate Services at Franklin Street. He can be reached at mark.behling@franklinst.com.

 

For full story, visit https://www.globest.com/2020/01/02/3-drivers-behind-miamis-industrial-market/

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Promotions Uncategorized

PEOPLE ON THE MOVE: Laura Gonzales

NEW HIRE
COMMERCIAL REAL ESTATE
DECEMBER 19, 2019

Laura Gonzales
Director, Capital Markets at Franklin Street

EDUCATION:  University of North Florida (Jacksonville, FL)

Laura joined Franklin Street’s Capital Advisors division as Director in the Jacksonville office. In this role, she will focus in the origination and placement of debt and equity for all types of income-producing real estate investments. Laura has over 20 years of experience in banking and capital markets, including lending with for profit, non-profit companies and commercial real estate owners and developers.

For full story, visit https://www.bizjournals.com/jacksonville/potmsearch/detail/submission/6478352/Laura_Gonzalez

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December 2019 Dealmaker Databank

Excerpted from December 16, 2019 issue of Crittenden Report.

Franklin Street Capital Advisors
1311 N. Westshore Blvd., Suite 200, Tampa, FL 33607
Ben Miller, Director, Loan Origination
Casey Siggins, Director, Loan Origination
(813) 839-7300
ben.miller@franklinst.com; casey.siggins@franklinst.com

Franklin Street arranged a mini-perm construction loan for a 23,713-s.f. behavioral health facility located in Hammond, La. The sponsors, experienced healthcare developers, started the construction with their own equity to keep with leasing timelines for opening the new facility. Franklin Street was able to obtain cash-out financing to allow the sponsor to recoup their additional equity in the deal.

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Transactions: Who’s paying how much for what – December 5, 2019

Excerpted from Shopping Centers Today story.

$12.8 million
Octave Investments acquired the 70,300-square-foot Ellard Village mixed-use center, in Alpharetta, Ga., from QSA Real Estate, of Alpharetta. Among the almost fully occupied center’s tenants are fitness studios, restaurants and beauty salons, as well as some commercial offices. Franklin Street represented the seller.

For full story, visit https://www.icsc.com/news-and-views/icsc-exchange/transactions-whos-paying-how-much-for-what364

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Franklin Street Closes Record Sale Of Rental Community

Franklin Street brokered the sale of Park Terrace Apartments, a 14-unit rental property located in Hallandale Beach.

Franklin Street’s Hernando Perez represented the seller, Florida-based 324 SW 19th Avenue, LLC, in the $2.225 million transaction.

The buyer, a local private investor, paid $158,928 per unit or $203.79 per square foot, making it the highest per square foot value for a 1960s property sold in  Broward County’s Hallandale Beach area since 2007.  Franklin Street’s Ryan Cassidy and Evan Seacat provided insurance for the asset.

“South Florida’s strong population and job growth, combined with the lack of affordable single-family homes, continue to push the demand for apartment rentals,” said Perez, director of multifamily investment sales for Franklin Street. “The asset received multiple offers immediately after hitting the market due to its attractive unit mix, AAA-rated location and ongoing redevelopment at the renowned Diplomat Golf & Tennis Club nearby.”

Built in 1966, Park Terrace Apartments is situated at 915 NE 8th Street, just east of Federal Highway/US 1 and south of Atlantic Shores Boulevard. The property features a mix of large one-bedroom and two-bedroom units. The building was recently upgraded with new kitchen cabinets including modern appliances, bathroom vanities, fixtures and tile work throughout.

Over the past three years, Franklin Street has brokered more than $920 million in multifamily investment sales transactions nationwide.

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Awards & Recognition

People First, Danielle Oliva

Excerpted from Tampa Bay Business Journal story.

Joining Franklin Street just two years ago, Danielle Oliva said it feels like much longer — and she means that in the best possible way. 

In her first year, she was honored with the organization’s Leadership of the Year Award.

“This was very humbling and validating that I am making an impact and being what the company needs to continue its growth,” she said. 

Tampa-based Franklin Street is a commercial real estate firm offering a wide range of services from investment sales to tenant and landlord leasing representation, property management, project management and insurance.

Oliva is responsible for all the organization’s human resource needs. That runs the gamut from policies and programs, staffing and recruiting, organizational development, risk management, employee safety, welfare, wellness and health. She’s also a company leader who is directly involved with organizational management decisions for the company. It employs 326.

For full story, visit https://www.bizjournals.com/tampabay/news/2019/12/06/people-first-danielle-oliva.html

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Franklin Street Closes Record Sale of Rental Community in Fort Lauderdale Submarket

Franklin Street brokered the sale of Park Terrace Apartments, a 14-unit rental property located in the Hallandale Beach submarket of Fort Lauderdale, Fla.  Franklin Street’s Hernando Perez represented the seller, Florida-based 324 SW 19th Avenue, LLC, in the $2.225 million transaction.  Over the past three years, Franklin Street has brokered more than $920 million in multifamily investment sales transactions nationwide.

The buyer, a local private investor, paid $158,928 per unit or $203.79 per square foot, making it the highest per square foot value for a 1960s property sold in  Broward County’s Hallandale Beach area since 2007.  Franklin Street’s Ryan Cassidy and Evan Seacat provided insurance for the asset.

“South Florida’s strong population and job growth, combined with the lack of affordable single-family homes, continue to push the demand for apartment rentals,” said Perez, director of multifamily investment sales for Franklin Street. “The asset received multiple offers immediately after hitting the market due to its attractive unit mix, AAA-rated location and ongoing redevelopment at the renowned Diplomat Golf & Tennis Club nearby.”   

Built in 1966, Park Terrace Apartments is situated at 915 NE 8th Street, just east of Federal Highway/US 1 and south of Atlantic Shores Boulevard. The property features a mix of large one-bedroom and two-bedroom units. The building was recently upgraded with new kitchen cabinets including modern appliances, bathroom vanities, fixtures and tile work throughout.

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com

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Uncategorized

Franklin Street Closes Record Sale of Rental Community in Fort Lauderdale MSA

Franklin Street brokered the sale of Park Terrace Apartments, a 14-unit rental property located in the Hallandale Beach submarket of Fort Lauderdale, Fla.  Franklin Street’s Hernando Perez represented the seller, Florida-based 324 SW 19th Avenue, LLC, in the $2.225 million transaction. Over the past three years, Franklin Street has brokered more than $920 million in multifamily investment sales transactions nationwide.

The buyer, a local private investor, paid $158,928 per unit or $203.79 per square foot, making it the highest per square foot value for a 1960s property sold in  Broward County’s Hallandale Beach area since 2007.  Franklin Street’s Ryan Cassidy and Evan Seacat provided insurance for the asset.

“South Florida’s strong population and job growth, combined with the lack of affordable single-family homes, continue to push the demand for apartment rentals,” said Perez, director of multifamily investment sales for Franklin Street. “The asset received multiple offers immediately after hitting the market due to its attractive unit mix, AAA-rated location and ongoing redevelopment at the renowned Diplomat Golf & Tennis Club nearby.”    

Built in 1966, Park Terrace Apartments is situated at 915 NE 8th Street, just east of Federal Highway/US 1 and south of Atlantic Shores Boulevard. The property features a mix of large one-bedroom and two-bedroom units. The building was recently upgraded with new kitchen cabinets including modern appliances, bathroom vanities, fixtures and tile work throughout. 

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

 
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Uncategorized

Franklin Street to Lease New Mixed-Use Center in Atlanta’s Historic Sweet Auburn

Franklin Street has been selected to provide retail leasing for The Front Porch at Auburn Avenue, a new mixed-use redevelopment project located within the historic Sweet Auburn District in the Old Fourth Ward, just east of downtown Atlanta.  The project will feature 38,000 square feet of rentable retail space, along with 13,000 square feet of apartment rentals and an additional 18,600 square feet of multifamily space for sale in the heart of the Auburn Avenue Corridor.

Franklin Street’s Sam Krueger, senior associate, and K.B. Yabuku, managing director for New York-based developer Hart Lyman Co., will lead retail leasing for the property. The brokerage team is actively seeking chef-driven restaurants, regional boutique retailers and fitness concepts for the mixed-use center, which is set to open in Fall of 2021. The neighborhood revitalization effort is being driven by Atlanta’s Historic District Development Corporation, and the Partnership for Southern Equity is spearheading the community engagement.

“This unique commercial development will transform the heart of downtown Atlanta’s historic Sweet Auburn District by bringing new amenities, jobs and housing to the area,” said Krueger. “The Front Porch will weave innovative urban agriculture features into the project, offering an unparalleled opportunity for high quality farm-to-table dining and retail operators that can amplify the local southern culture that is so apparent within this community.”  

Located in the exceptionally diverse residential neighborhood of Sweet Auburn between Hilliard Street and Jackson Street, The Front Porch is one of Atlanta’s premier ‘equity projects,’ incorporating equitable development and sustainability principles from start to finish. The project will provide a gathering place that promotes economic prosperity and environmental sustainability through the continued improvement of the neighborhood. The property is located along the Atlanta Streetcar line and is just steps away from the Martin Luther King, Jr. National Historic Park, the Atlanta BeltLine Eastside Trail, and Georgia State University.

“HDDC is proud to continue our legacy of strengthening, revitalizing and preserving the identity and history of our communities through equitable and sustainable development,” said Chenee Joseph, executive director of HDDC.   “As the developer of projects such as Studioplex on Auburn, Dynamic Metal Lofts and most recently the Haugabrooks Event Space on Auburn Avenue, we have a solid track record in the neighborhood. We are excited to continue our commitment to the revitalization of the Sweet Auburn and the Old Fourth Ward with the development of the Front Porch, which we hope will quickly become the gathering place for our community.”

For more information on The Front Porch at Auburn Avenue, visit their page on LoopNet. For more information on Franklin Street, visit FranklinSt.com.

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

About HDDC: Founded in 1980, HDDC is one of Atlanta’s oldest surviving community development corporations and the only non-profit organization specifically dedicated to preserving the availability of affordable housing in the Old Fourth Ward. For nearly four decades, HDDC has been a catalyst for equitable urban revitalization in Atlanta. 

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Tampa real estate veteran Pat Kelly joins Franklin Street

Excerpted from Tampa Bay Business Journal story.

Real estate veteran Pat Kelly has left his post as president of Redstone Commercial to join Franklin Street as regional managing partner for the Tampa Bay area.

In his new role, Kelly will oversee all operations for the Tampa office. He replaces Brad Robinson, who was promoted to Franklin Street’s chief learning and development officer in 2018. In the role, Kelly will be charged with growing all of Franklin Street’s lines of business — investment sales, capital advisory, insurance, property management, project management, and tenant and landlord representation services — as well as recruiting talent and building the Franklin Street brand throughout the Southeast and nationally.

He began his tenure at Franklin Street on Monday.

Kelly has a storied career in Tampa Bay. In 2014, he was inducted into NAIOP Tampa Bay’s Hall of Fame. He’s had a hand in several major developments in the Tampa Bay region, including the infrastructure work of Carillon Park, Highland Oaks, University of South Florida Research Park and Crescent Park. He’s also been involved in several large leases representing both tenants and landlords here: Franklin Templeton, GTE, Aegon, PBS&G, New York Life, URS Greiner and the Perot Group.

For full story, visit https://www.bizjournals.com/tampabay/news/2019/12/02/exclusive-tampa-real-estate-veteran-pat-kelly.html