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Franklin Street Secures Multifamily Property Sale in Fort Lauderdale

Franklin Street secured the sale of Victoria Cottages, a 10-unit rental community located on 921-925 NE 17 Avenue in the Victoria Park submarket of Fort Lauderdale, Fla.  The purchase price of $1.6 million, or $160,000 per door, represents one of the highest price per unit transactions for a similar vintage and asset class in Fort Lauderdale’s downtown urban core this year. 

Franklin Street’s South Florida multifamily investment sales team, which included Dan Dratch and AJ Stanford, represented both the seller, BJS South Properties, LLC, and the buyer, Michael Ruble. Both parties are locally based private investors.  

“The sale achieved a top of the market price in terms of price per unit and has exceeded the market in price per square foot when comparing similar-vintage properties,” said Stanford, senior associate of multifamily investment sales at Franklin Street.  “This transaction shows that buyers aren’t only looking for distressed assets with a big value-add component. Well-maintained, income-producing assets with strong monthly cashflow in well-located areas are still in high demand by multifamily investors.” 

Built in 1959, Victoria Cottages is located west of U.S. 1, just off Sunrise Boulevard. The 5,276-square-foot property is in proximity to Class A multifamily buildings, grocery stores, Holiday Park, and the Gateway Shopping Center.

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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Curry Ford West District Getting a Floyd’s Barbershop

Excerpted form The Daily City story.

A Floyd’s Barbershop will be occupying one of three tenant spaces in the shell of the former ABC Liquor store at 3097 Curry Ford Road at the intersection of Curry Ford Rd and S. Crystal Lake Dr (MAP). The two remaining spaces have 2,500 sq ft each. The building is located within the Curry Ford West District near the Hourglass District. 

Those interested in the two available spaces can contact Franklin Street at Terrence.Hart@franklinst.com

For full story, visit https://www.thedailycity.com/post/floyds-barbershop-curry-ford?fbclid=IwAR0B9tfSRpDZoPUzolwIIkw0962eOELLzXPOgjog_Ym6eJntJFqBvFl4adI

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French eatery to open in downtown Orlando

Excerpted from Orlando Business Journal story.

In total, Modera Central features roughly 12,000 square feet of retail space. Negotiations continue for the remaining space, roughly 6,000 square feet, and more announcements may be coming soon.

Services and other amenities for residents would find success for the luxury tower’s remaining retail space. “Its location on Rosalind Avenue near the city garage are pros, along with its proximity to the University Club,” Tim Rogers, a senior associate with Franklin Street of Orlando, who is not involved in the deal, previously said.

For full story, visit https://www.bizjournals.com/orlando/news/2019/09/24/french-eatery-to-open-in-downtown-orlando.html

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Ask the Expert: What amenities do industrial tenants in Florida want most?

Ask the Expert: What amenities do industrial tenants in Florida want most right now?

“Ceiling heights are rapidly becoming one of the first questions asked by tenants when doing a walk-through. Gone are the days where 18’ clear would get the job done. With land becoming more and more scarce, there is now a demand to go higher and higher. We’re certainly at a level where 32’+ clear is the new modern industrial norm. This is also backed up with the technological advancements in supply chain management and logistics. Going up is just as easy and convenient now as horizontal storage. 

I also think there is obvious change in the industrial demographic lately which is driven by speed. We’re in a world of needing everything right now. Just look up ‘last-mile distribution’ to see evidence of this. So, what does this mean regarding amenities? It means there is a need to get things out the doors quickly. Having both dock-high and grade level bay doors are musts. Which usually means a need for a ramp. 

There are also some smaller luxuries now that help cut costs. For example, T-5 lighting on automatic sensors. You’ll certainly know the difference when walking through a space that isn’t lit by T-5 lighting. It’s a must-have.”

Scott Edwards
Senior Associate, Industrial
Scott.Edwards@FranklinSt.com
O: 407.458.5400 x 0624

 
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Baldwin Park Village Center Has a 2,494 Sq Ft Retail Space Available

Excerpted from The Daily City story.

A 2,494 sq ft space in the Baldwin Park Village Center is available for rent. The single space is made up of two spaces combined into one: 4837 and 4841 New Broad Street (MAP). 

The most recent tenant closed its doors in October 2018: Vintages Boutique Wine & Craft Beer (formerly a Wine Styles franchise). 

The space is next door to Tutto Cafe and the new location of Victoria Jewelers. 

The space is managed by Franklin Street. More Info

For full story, visit https://www.thedailycity.com/post/baldwin-park-village-center-retail

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Rent reform in NY, CA propels new wave of multifamily investors to Miami

Excerpted from The Real Deal story.

First, it was tax reform that pushed CEOs, hedge fund managers and other high-net-worth individuals to South Florida. They were lured in by the favorable climate, luxury residential properties and most of all, substantial tax savings.

Now, it is the multifamily investors who are heading to South Florida, and for a different reason: rent control, something the Sunshine State lacks.

In June, New York state passed a sweeping rent reform law, expanding its protections for millions of rent stabilized tenants. The law dramatically limits how landlords can increase rents on stabilized apartments and opens the door for rent stabilization to expand outside of New York City. It stopped short of a rent cap, but that is expected to be on the table in some form in the next legislative session.

In Illinois, although rent control advocates lost a legislative battle earlier this year, they’re gearing up for a push to overturn the statewide ban on rent control in Springfield next year. And California is now poised to implement a statewide cap on annual rent increases.

Multifamily investors are moving quickly and making offers on properties in South Florida, brokers say. But they are also encountering a strong rental market and low supply, which have pushed up prices.

Eleventrust, a commercial brokerage in Miami, is working with investors from New York and Los Angeles who are looking to shift their focus to Florida because of the impact the new laws will have on their current investments.

Jose Ramos, a broker with Eleventrust, said at least 40 percent of the calls it’s getting have been from New York investors who want to close on properties in South Florida. “There’s a lot of confusion, a lot of focus on getting their money out of there and getting it into high-yield markets,” he said.

The brokerage is negotiating with two groups of investors to acquire apartment properties, via 1031 exchanges. One is for the River Lofts Apartments, a 43-unit complex at 500 to 522 Northeast 78th Street in Miami’s Upper East Side neighborhood, which hit the market with Ramos and Rafael Fermoselle, Eleventrust’s managing partner, earlier this year. It’s on the market for about $7.8 million.

Ramos and Fermoselle are showing investors properties in gentrifying markets like Little River, Little Havana and Allapattah. “The thing with Miami-Dade specifically is there’s not a lot of product that’s big enough,” Fermoselle said.

The investors they’re dealing with are looking for deals in the $5 million to $30 million range.

Deme Mekras, managing partner of MSP Group, has also received offers from New York buyers who plan to invest in South Florida multifamily properties because of the recent rent reform measures. New Yorkers especially, are more comfortable with properties in the urban cores, he said.

Rent reform is also becoming a national issue, as more than a third of Americans are considered rent-burdened. The problem is worse in South Florida, according to a report from Freddie Mac earlier this year, which found that Miami ranked as the most rent-burdened market in the U.S.

Vermont Sen. Bernie Sanders, a self-described Democratic socialist, is proposing a $2.5 trillion housing plan that would cap annual rent increases at 3 percent or one and a half times the consumer price index, whichever is higher.

Searching for yield

Multifamily investors from out of state would prefer to spend their money on one large deal but are challenged by a lack of supply, brokers said. They’re non-institutional players, looking to spend in the range of $30 million and $40 million.

But because South Florida’s rental market has remained strong, some sellers aren’t willing to part with their property. And if they are, the prices are too high. Rents have increased by 15 to 20 percent over the last eight years, according to Hernando Perez, director of multifamily investment sales for residential brokerage Franklin Street. More people are also moving to Florida, in part because of the favorable tax climate.

“There are not a lot of deals that make sense and not a lot of deals to buy,” he said.

Perez said he is seeing a number of California buyers looking to use the proceeds of 1031 exchanges to buy in South Florida. They cited the pending statewide rent control legislation, known as AB 1482, as a reason. Perez said he is working with a group that wants to spend $10 million for a multifamily building. The group, which Perez declined to identify, is looking at properties in Hallandale Beach, Fort Lauderdale and Pompano Beach.

And what if Florida was to enact similar statewide rent regulations? Simple, Perez said.

“It would crush the profitability of the real estate market.”

For full story, visit https://therealdeal.com/miami/2019/09/19/rent-reform-in-new-york-california-propels-new-wave-of-investors-to-miami/

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Confirmed: Fortune 500 retailer to open in downtown Orlando

Excerpted from Orlando Business Journal story.

Dollar General Corp.’s newer, smaller convenience concept is coming to downtown Orlando.

Goodlettsville, Tennessee-based Dollar General (NYSE: DG) plans to open its DGX concept at 50 S. Rosalind Ave. in the ground floor level of Modera Central, according to a building permit filed with the city of Orlando. Orlando Business Journal first reported Dollar General was searching for downtown locations to open its DGX concept. The convenience store likely will occupy 5,100 square feet.

Dollar General couldn’t be reached for comment. The permit lists construction costs as $410,000, or roughly $80 per square foot.

Orlando-based real estate firm Bishop Beale Duncan is handling leasing for the roughly 12,700 square feet of space at Pine Street and Rosalind Avenue. The space has been empty after the opening in fall 2018 of the $75 million, 350-unit Modera Central Class A apartment complex.

Only a handful of cities in the U.S. have a DGX, including Nashville, Tennessee; Philadelphia; Cleveland and Raleigh, North Carolina. DGX aims to attract a younger, on-the-go customer — a change from the audience typically drawn to the discount retailer’s traditional Dollar General locations, according to sister publication Philadelphia Business Journal. Millennials are an important part of Dollar General’s customer base, and the Fortune 500 company hopes to attract new urban customers with its stores.

And those younger consumers are growing in downtown Orlando. A DGX concept would serve the expanding population in downtown Orlando where its current retail lineup, largely food and bar dominated, doesn’t have the services needed to cater to new demands, as previously reported by OBJ. More services — including eye doctors, nail salons, dentists, urgent care facilities and cellphone stores — will be needed in the central business district as the resident numbers grow. City officials expect an almost 10 percent downtown population jump in the next half decade, according to a city of Orlando spokeswoman.

Dollar General planned to open about 975 new stores this year with roughly 10 of those being DGX retail locations.

Meanwhile, services and other amenities for residents would find success for the luxury tower’s remaining retail space. “Its location on Rosalind Avenue near the city garage are pros, along with its proximity to the University Club,” Tim Rogers, a senior associate with Franklin Street of Orlando, who is not involved in the deal, previously said.

For full story, visit https://www.bizjournals.com/orlando/news/2019/09/19/confirmed-fortune-500-retailer-to-open-in-downtown.html

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Florida’s Tampa Bay Matures Into Major US Apartment Market

Excerpted from CoStar News story.

While downtown Tampa and downtown St. Petersburg are seeing a flurry of new apartment buildings, there still is room for new construction in other areas of the four-county region, according to Zach Ames, senior director at the Franklin Street brokerage in Tampa.

Investors are taking note of projects in Brandon, outside of Tampa, and in Wesley Chapel near the line dividing Hillsborough and Pasco counties, he explained in an interview.

“Eight years ago, Tampa Bay may not have been on people’s radar, but today it is,” Ames said. “I don’t think we’re overbuilt, even though it may seem that way. There’s still a shortage of housing.”

For full story, visit https://www.costar.com/?market=NTL

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NAIOP of Florida Preparing Now for 2020

Excerpted from NAIOP story.

The Florida Legislature will begin its 2020 session on January 14. When it does, NAIOP of Florida is prepared to hit the ground running, delivering a to-do list for lawmakers that would boost the economy and support the growth of commercial real estate.

Last week, representatives from all five of NAIOP’s chapters in the Sunshine State – Central Florida, Northeast Florida, Northwest Florida, South Florida and Tampa Bay – participated in a state summit to discuss legislative priorities for the coming year. The meeting highlighted NAIOP’s influence in Florida and drew two leading members of the state legislature to Orlando to speak.

Attendees heard presentations by State Senator David Simmons, president pro tempore of the upper house, and House Representative Mike La Rosa, chairman of the commerce committee. NAIOP members also discussed in-depth the issues they will prioritize in 2020. These include:

Enacting the FAST Act.

This proposed law would allow developers to better plan their projects by forcing permit-granting government entities to meet deadlines once an application has been certified as complete. That seems simple enough, but too often it doesn’t happen.

When governments miss deadlines, they delay the approval process. In this year’s legislative session, Representative Scott Plakon, (R-Longwood), filed the FAST Act, a bill that would improve the construction climate by incentivizing local governments to meet their own permitting deadlines. If a government entity misses its own deadline, the fees it could collect would decline. A version of the FAST Act passed in neighboring Georgia in 2019, and Florida lawmakers should take it up again next year.

Phasing out the Business Rent Tax.

Florida is the only state with a business rent tax; this levy costs businesses $1.7 billion a year. The repeal of the tax outright could create up to 185,000 jobs and $20 billion in economic impact in Florida. If lawmakers aren’t ready to go that far, just a 1% reduction in the tax would result in $286.9 million saved annually by Florida businesses. Reducing the business rent tax would spur Florida’s economy and make it more competitive with neighboring states.

Removing the witness requirement for commercial leases.

Florida has strict witness and notarization requirements that make it difficult for out-of-state tenants to be involved in transactions. For example, many commercial real estate documents must be signed in person in Florida, according to state law. NAIOP of Florida has taken the lead in advocating to remove any requirement to have witnesses for commercial leases, regardless of the lease term or for specified durations. This would make it easier to invest and do business in Florida.

Maintaining a commercial building representative on the Florida Building Commission.

This year, some lawmakers proposed a measure that would have removed the commercial representative from the Florida Building Commission. That attempt failed, but may be revived in the next legislature. NAIOP of Florida will work to protect current law, which mandates that the commission include one member from the commercial real estate industry. Our organization will also submit our own candidates for consideration.

Improving the state fire code.

Current Florida fire prevention code requires in-building coverage for fire department radio signals and two-way communications. Under this statute, though, high-rise buildings are exempt from these requirements until January 1, 2022. NAIOP of Florida is supporting proposed legislative language that would push back the fire code upgrade for existing and new high-rises in order to give owners more time to comply with the law.

Reining in excessive linkage fees.

Some local governments across Florida are targeting commercial real estate by applying excessive linkage fees to new projects. Essentially, they are charging developers a tax so the local government can build a fund to support affordable housing or other, similar programs. The state legislature should eliminate linkage fees that are not tied directly to commercial real estate projects.

While in Orlando, NAIOP members also discussed and approved bylaws for the NAIOP of Florida Political Action Committee. This PAC will allow the state alliance to support politicians and other statewide leadership entities who will vote for policies that help commercial real estate provide the places where people work, live, shop and play.

The year 2020 is quickly approaching, with presidential candidates already engaging in debates and holding campaign rallies across the country. In Florida, NAIOP is prepared for 2020, and ready to work to improve the political and economic climate for all our members.

Yvonne Baker is president of NAIOP of Florida and Regional Managing Partner of Franklin Street.

For full story, visit http://blog.naiop.org/2019/09/naiop-of-florida-preparing-now-for-2020/

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6 retailers head to Baldwin Park as its occupancy hits ‘critical mass’

Excerpted from Orlando Business Journal story.

Terrence Hart has turned away retailers from Baldwin Park in recent months.

That’s because the roughly 190,000 square feet of retail space is about 96% leased at the mixed-use development near downtown Orlando. Hart, senior director at Franklin Street of Orlando, handles leasing for Dallas-based landlord Tabani Group along with Senior Associate Tim Rogers.

Hart first started leasing the property in 2016 when retail occupancy was about 80%. Now, he said he can’t squeeze in all the fitness concepts and boutique restaurants that want to open there. The remaining space may host a bridal boutique and computer educational concept.

“It’s become like a Park Avenue or a College Park,” Hart said. “Before, it hadn’t gotten to that point. It hadn’t hit that critical mass of retailers.”

For full story, visit https://www.bizjournals.com/orlando/news/2019/09/12/6-retailers-head-to-baldwin-park-as-its-occupancy.html