The Related Group is Ready to Take on More

Nearly finished with their latest condominium development, the Related Group is getting ready for a new series of projects. The Miami-based developer is led by Jorge M. Pérez, the billionaire Chairman, and CEO. The Related Group has developed 3,790 condo units since 2010, which makes it a leading builder in the condo boom. By late 2019, Related will have completed a vast majority of the 2,643 units left in their South Florida condo projects. That leads to…what’s next?

The answer may be surprising and will show how Related has stepped out of their familiar territory and diversified. During the early 2000’s the company was known almost exclusively as condo developer in South Florida. As the condo industry has its booms and busts, Related took a hard hit when the market took a dive during the Great Recession. Their future projects include modest-sized condo towers, apartments, affordable housing, and even micro units. They’re spreading beyond South Florida to develop multiple states and other countries. This is all part of the company’s plan to diversify.

“The key to South Florida is timing,” Pérez said. “We have gotten very good at playing and understanding the cycle. We hit it right on the dot in this market.”

Pérez’s biggest project, which is a condo development, features well-known brands, stand of art, and a large selection of amenities. This is Related’s biggest project yet. It’s a four-tower project in Miami’s Edgewater called Paraiso. Paraiso is over 4 million square feet and has a resort feel. It has a large arrangement of amenities, including several pools, tennis courts, its own bowling alley, a cinema room, and several restaurant options. There is also a signature restaurant by the famous chef, Michael Schwartz. The towers are already 97% sold.

Pérez expects the company to close over $1 billion in condos in 2018.

“It’s great to finish the cycle the right way and prepare for the next one,” he said. “The good thing about this market is it’s not an abrupt stop.”

Ron Shuffield,  who is the president and CEO of EWM Realty International, said Related Group’s condos have elevated expectations for condos in Miami’s market. “Each building is a mini country club – and that wasn’t always the case,” Shuffield said.

There’s an overabundance of condos on the market now, he added, but he expects that to be only temporary as sales pick up and fewer projects break ground.

Pérez said this strong cycle was ignited by buyers paying deposits of 50 percent.

“It surprised us we were able to get so many sales with so little leverage,” he said. “In the previous cycle, we had many sales, but everyone was getting 10 or 20 percent deposits. We did 50 percent to protect ourselves from people walking away from contracts, and we were pleased with the results.”

The strategy was very attractive to foreign investors, who use condos as second homes or rental properties. In the future, Related has projects that will appeal more to domestic buyers. Related won’t wait long before getting back into the dirt.  Pérez says he has plans to launch another South Florida condo project soon. It won’t be the massive condo units like in the past, but instead a micro-unit in Miami’s urban center – and maybe even more than one.

Smaller units in attractive neighborhoods appeal to young locals and make it more attainable.  Pérez recently completed a condo building in Brazil that housed 400-square-foot units. It was very popular in the area.

“In 400 square feet, you are able to create a space with a bedroom, a small kitchen and a counter where two people can eat,” Pérez said. “The key to this development is, if I have six friends coming to eat dinner or watch TV, where do I take them? So, in micro-unit buildings, we will have great amenities.”

“You can live comfortably in 400 or 450 square feet, particularly if they are in neighborhoods where young people want to live,” Rosso said. “People in New York want to have a little place in Wynwood.”

Related has plans underway to develop an eight-story headquarter in Miami’s Coconut Grove. They will finally have a new home of their own.

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Will PortMiami keep its hold on their title as Cruise Capital of the World?

PortMiami is working hard to secure its future by investing in new multimillion-dollar cruise terminals. Most recently, the terminals for the Royal Caribbean and the Norwegian Cruise Lines state of the art terminals are being designed and constructed to lodge the largest cruise ships currently developed and to bring in billions of dollars in revenue to the port and the city.

The overall goal is to secure PortMiami as the most visited seaport for cruisers around the world. The Royal Caribbean Terminal, set to open in October, will soon be home to the world’s largest cruise ship, Symphony of the Seas, after a $247 million dollar investment.  

Norwegian Cruise Lines is following suit with plans to open its brand new $100 million-plus Terminal B in 2019. The 166,000 square-foot, pearl-shaped terminal was designed to house the Miami-based cruise line’s largest ships. “More ships coming into our community generates more economic impact, and that supports more jobs,” explained Rolando Aedo, who is the COO of the Greater Miami Convention & Visitors Bureau.

While construction is underway, PortMiami is working to defend its title as the world’s busiest cruise port. The Port saw 5.3 million cruise travelers in 2017 who brought in more than $1 billion in state and local taxes. The MiamiPort also supported 300,000 jobs in 2017. After the completion of the new terminals, by 2020, the MiamiPort is expected to play host to 7 million passengers.

More than just Norwegian and Royal Caribbean are investing in the new port. Billionaire Sir Richard Branson, who is the founder of Virgin Group is also taking a piece of the pie. Branson announced a joint venture with Bain Capital to launch Virgin Voyages. The start of Virgin Voyages will sail its first ship, which holds 2,700 passengers, year round.

MSC Cruises is also set to build a new terminal at PortMiami by 2022 as part of their $10.2 billion fleetwide investment. This will bring new ships to PortMiami, including its largest ship, MSC Meraviglia.

PortMiami’s success and title as the number one choice for cruisers can be traced back to Carnival Corp. & plc, Royal Caribbean Cruises Ltd, and Norwegian Holdings Ltd – which are its three largest cruise operators. All three hold their headquarters in the Miami-Dade County. Despite decades of being headquartered in the area, PortMiami wasn’t an automatic choice for the Cruise Lines’ latest ships. In 2007, PortMiami failed to draw Royal Caribbean’s Oasis of the Seas. This was a significant blow to the PortMiami.

According to PortMiami Director, Juan Kuryla, the port was outmaneuvered by Port Everglades.

“We got a lot of calls from the downtown merchants, asking how this could happen,” he said.

This wasn’t the last time PortMiami took a blow. In 2017, they also lost out on Royal Caribbean’s new ship, Harmony of the Seas. Harmony of the seas was, at the time, the largest cruise ship in the world.

Miami-Dade County learned from its mistakes and went above and beyond when the opportunity arose again. The Miami-Dade County was extremely accommodating when the latest terminal developments were proposed.

Both terminal developments are backed fully by the county, with large investments from the cruise companies. Royal Caribbean’s terminal is being completely self-financed in exchange for a long-term, 66-year, lease with the port. Unlike Royal Caribbean’s financing, PortMiami will provide $100 million for the Norwegian venture.

“Communities are seeing cruise ships as not part of an industrial port, but as part of the urban area,” said Bermello, Ajamil & Partners CEO Luis Ajamil. The Miami-based firm is involved in the projects at PortMiami. “We spent a lot of time fitting terminals for the long-term future,” he said.

Other developments, such as the completion of the Brightline passenger train and port tunnel have also been completed in the last 5 years. This will provide easy access to the ports and will benefit the area.

“We saw what happened when we didn’t put our best foot forward, and it’s a bad feeling when they [ships] leave,” Kuryla said. “We had to do something here – and we did. Now, we’re going to keep applying that mindset.”

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The Miami Worldcenter Makes Headway in Development

After 15 years of setback after setback, construction on the Miami Worldcenter is finally underway. The Worldcenter is just north of downtown Miami and when it’s complete will be a sight to behold.

Valued at $2 billion, the Miami Worldcenter will actually create its own miniature skyline upon completion. With Art Falcone and Nitin Motwani taking the lead on development, things are moving along smoothly. The development will have several great amenities as well as a retail front along the street, an office tower, two separate apartment buildings, and the Marriott Marquis convention center. 

The unique Miami Worldcenter will also boast a 4-acre amenity deck 90 feet in the sky. The development is drawing buyers from all over the world to invest in the Worldcenter.

Development on the main attraction, the Paramount Miami Worldcenter is already underway and making leaps of progress! The construction is past the 45th floor of a 60-story building. According to the developer, Dan Kodsi, the Tower’s 530 units and the 30 guest suites are already up to 73% sold.

The other mixed-use project’s buildings are in different areas of progress, this includes the retail, commercial and other residential components. Some are nearly complete where other buildings have yet to be begun.

The Worldcenter is just one of the new developments going into the area. It’s surrounded by high-end developments that are bringing even more value to the area. As a community, they’re coming together to create something beautiful and make the world take a second look.

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Ex-Morgan Stanley Rep Cries Foul As Finra Bars Her Former Boss

After her former branch manager accepted an industry bar, advisor Ami Forte accused Morgan Stanley, her former firm, of trying to turn her into a patsy.

In a press release on Tuesday by her attorney, Forte denied participating in excessive trading in the accounts of Roy M. Speer, the founder of the Home Shopping Network.

Forte, formerly an advisor in Morgan Stanley’s Palm Harbor, Fla.

from FA News https://www.fa-mag.com/news/ex-morgan-stanley-rep-cries-foul-as-finra-bars-her-former-boss-39382.html