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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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News in Brief: December 18, 2019

Excerpted from South Florida Business Journal story.

Franklin Street brokered the $2.2 million sale of Park Terrace Apartments, a 14-unit rental property in Hallandale Beach, on behalf of 324 S.W. 19th Avenue LLC. www.franklinst.com.

For full story, visit https://www.bizjournals.com/southflorida/news/2019/12/18/news-in-brief-12-20-2019.html

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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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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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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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Ask The Expert Trends

Ask the Expert: Is the multifamily market in Fort Lauderdale being overbuilt?

Ask the Expert: Is the multifamily rental market in Fort Lauderdale being overbuilt?

“No, because there continues to be a high demand for that type of product.  The newer multifamily product being built is fully amenitized with features that really separate them from the private clients we deal with.  In fact, the new construction and amenities provide an opportunity for the owners of neighboring Class B and C assets to implement a value-add program and push rents based on interior and exterior upgrades. Our clients can often bring in quality tenants from the larger Class A buildings by offering them a safe apartment with beautiful finishes in the same neighborhood, but for $200 to $400 less in monthly rent!”

Dan Dratch
Senior Associate, Multifamily Investment Sales
Franklin Street
Dan.Dratch@FranklinSt.com
Direct: 954.312.1677

 
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Ask The Expert

Ask the Expert: How is your brokerage using tech to boost sales & help clients?

Ask the Expert: How is your brokerage using tech to increase sales and help clients?

“One of our key competitive advantages has been the development of Franklin Street’s proprietary customer relationship management (CRM) system that functions to deliver on one of our core values: collaboration. The CRM connects all business lines and agents with the client record – a one-stop shop providing a glance at a client’s status within their ownership cycle. 

Each office, regardless of market location, is not their own island with separate databases like in many other firms. We are the quite the opposite. As a company, we know when our client has been called and followed through. Our system removes the need to exhaust or bother the client with unwanted calls by another team or team member within the same office.

Franklin Street also has a dedicated geographic information system (GIS) mapping manager. Daily, we leverage mapping tools showing our clients traffic density and flow patterns, as well as demographic shifts in the area. These important data points are then displayed in both macro and micro views to assist the client in making better decisions to reach their real estate investment goals.”

Greg Matus
Senior Vice President, Investment Sales
Franklin Street
Greg.Matus@FranklinSt.com
954.640.1100 ext. 0501  

 
Categories
Ask The Expert Trends

Ask the Expert: What is the short-term outlook for South Florida multifamily?

Ask the Expert: What is the short-term outlook for South Florida’s multifamily market?

“As we look to wrap up 2019, the South Florida market will continue to see a big push into multifamily investments.  We are getting quoted some of the lowest interest rates in years, which is allowing us to secure even higher values for our clients. The banks believe in the product here in South Florida, so they will remain eager to lend on the opportunities. We also have owners who are starting to wonder what could happen to the real estate market should we have a major change in the presidential office next year.  This uncertainty, mixed with the strong property values and low interest rates, will no doubt cause a lot of owners to make the decision to put their buildings on the market as we enter 2020.”

Dan Dratch
Senior Associate, Multifamily Investment Sales
Franklin Street
Dan.Dratch@FranklinSt.com
Direct: 954.312.1677

 
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News in Brief: 11-01-2019

Excerpted from South Florida business Journal story.

Franklin Street secured the $1.6 million sale of Victoria Cottages, a 10-unit rental community at 921-925 N.E. 17th Ave. in Fort Lauderdale. www.franklinst.com.

For full story, visit https://www.bizjournals.com/southflorida/news/2019/10/30/news-in-brief-11-01-2019.html

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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.