Jolted: Elevator companies face separate lawsuits over injuries at two Brickell sites

Brickell City Centre’s mall and Brickell Heights (Credit: Wikipedia and Brickell)

Two recent lawsuits filed in Miami-Dade Circuit Court allege people experienced sudden drops in elevators at Brickell Heights and Brickell City Centre in Miami, causing injuries.

Thyssenkrupp was sued over an incident at Brickell Heights East Condominium, at 315 South Biscayne Boulevard.

Separately, Otis Elevator and Swire Properties are defendants in a suit that alleges an elevator at Brickell City Centre injured a shopper there.

Neither the city of Miami nor the Florida Department of Professional and Business Regulation tracks the total number of elevator complaints in Miami.

An investigation by The Real Deal in New York found dozens of lawsuits filed every year in New York City over elevator-related incidents, and it’s often difficult to determine who’s at fault when an accident or death occurs. The investigation found lapses by mechanics with little training, and failure by inspectors to identify hazards, address complaints and conduct inspections.

In the Brickell Heights case in Miami, subpoenas are still going out after an amended complaint was filed in the case recently. Two plaintiffs, Dragana Stojanovic and David Sherman of Miami, allege they visited the tower in October 2017 to watch the American League baseball playoff game with a resident there, Glenn Asher.

They left afterward, boarding the elevator on the ninth floor, the lawsuit says.

“While rapidly descending, the elevator suddenly, and without warning to the plaintiffs, violently jolted to a stop – feeling as though the elevator had struck the ground at full speed. The force of the impact caused the Plaintiffs’ legs to buckle, driving them downward toward the floor of the elevator,” according to the suit.

They wound up trapped in the elevator “for several hours,” though the suit does not provide additional details. The two went home and didn’t seek immediate medical attention, but they experienced pain later and sought a doctor, according to the suit.

Thyssenkrupp has filed a formal answer to the suit, stating that third parties altered the equipment or were negligent, and that it is not contractually liable for the damages. It also accuses Stojanovic and Sherman of failing to be “aware of their surroundings.” A spokesman for the company declined further comment. The suit also names Brickell Heights East Condominium Association as a defendant.

In the Brickell City Centre case, area resident Gustavo Aguilar alleges he was at the Swire Properties-owned mall on May 17, 2017, “when the elevator suddenly and without warning began to free-fall at a high velocity before abruptly stopping, causing the Plaintiff to become injured,” according to the suit.

Aguilar’s lawsuit, originally filed in December, alleges he was hospitalized for injuries.

Otis has filed a formal answer, stating similar defenses to Thyssenkrupp’s in the Brickell Heights case: that it had no knowledge of any problem with the elevator and that the plaintiff was also negligent.

Swire Properties hasn’t filed an answer yet. A spokesperson for Swire said via email that “The safety and well-being of our guests is always the top priority. Our elevators are regularly tested and maintained according to industry-best standards and applicable law.”

from The Real Deal Miami https://therealdeal.com/miami/2019/04/23/jolted-elevator-companies-face-separate-lawsuits-over-injuries-at-two-brickell-sites/

Kansas ethanol exec buys condo at Auberge Fort Lauderdale

Auberge Beach Residences & Spa Fort Lauderdale and Bob Casper, president of Poet Ethanol Products

The head of a Wichita, Kansas-based ethanol transportation company bought a condo in the newly completed Auberge Beach Residences & Spa Fort Lauderdale’s north tower for $8.6 million.

Bob Casper and his wife Arlene bought the 4,636-square-foot condo at 2200 North Ocean Boulevard for $1,855 per square foot, records show. The seller of unit 1601 was Quebec-based Camco Real Estate.

The unit is among the first — or possibly the first — resale at the luxury condo development in Fort Lauderdale Beach. Camco Real Estate closed on the condo in August 2018, paying $6.9 million, but it is unclear when it entered into a preconstruction contract to purchase it. It now sold for almost 25 percent more than its initial sales price.

Casper is the president Poet Ethanol Products, which is one of the largest ethanol marketing companies in the country, according to media reports. His company works with ethanol producers to provide transportation, logistics and marketing for their products.

The sale could signal strong demand for high-end luxury condos in Fort Lauderdale. It also marks a contrast from Miami where resale prices have dropped significantly amid a glut of luxury condos. Fort Lauderdale, meanwhile, has much less supply, so buyers have fewer options if they want to buy a luxury condo.

The Related Group, Fortune International Group and the Fairwinds Group developed the two-tower waterfront Auberge.

In March, the owner of the National Hockey League’s Florida Panthers Vincent Viola bought two units for $10 million.

Other buyers at Auberge include Citrix CEO David Henshall, former Miami Dolphins quarterback Dan Marino and Jacob Trouba of the Winnipeg Jets. Last year, the son of Salmar Properties founder Sal Rusi paid $9.3 million for a penthouse in the north tower.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/23/kansas-ethanol-exec-buys-condo-at-auberge-fort-lauderdale/
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The legislator is a landlord: A quarter of California lawmakers also collect rent

From left: Anthony Rendon and Sydney Kamlager-Dove

Along with voting on bills that include rent control caps and new protections for renters, one of the preferred side hustles for California legislators is collecting rent from tenants.

At least 30 lawmakers — or 25 percent of the 120-member Legislature — own properties that generate income from renters, according to a CALmatters report. Many of those representatives rent out multiple homes, and receive at tens of thousands of dollars per year, the report showed.

That list includes Assembly Speaker Anthony Rendon, whose 63rd District includes Southeast Los Angeles. He collected $40,000 in rental income last year with his wife, the report showed. The couple had four properties, including a condominium in Downtown L.A. Others landlord lawmakers include Assemblywoman Sydney Kamlager-Dove, in L.A., who collected $20,000; Assemblywoman Cristina Garcia in Bell Gardens, who took in $61,000; and Assemblyman Christopher Holden in Pasadena, who received $11,000, the report showed.

Six of the 25 are members of the Housing and Community Development Committee, and all will vote on bills to expand tenant rights and rent control measures, including the “just cause” eviction proposal that previously failed in the Assembly, with just 16 votes.

This year legislators will also consider a “rent-gouging” cap on allowable rent increases, and a bill that would allow cities to apply rent control on single-family homes and apartments built after 1995. [CALmatters] — Gregory Cornfield

from The Real Deal Miami https://therealdeal.com/la/2019/04/22/the-legislator-is-a-landlord-a-quarter-of-california-lawmakers-also-collect-rent/#new_tab
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Terry Stiles’ widow sells Fort Lauderdale waterfront mansion for $10M

 

Terry Stiles and 776 Southeast 10th Street (Credit: Realtor)

Jamie Stiles, widow of the late commercial developer Terry Stiles, sold the couple’s waterfront Fort Lauderdale mansion for $10.1 million.

Stiles sold the 8,166-square-foot-estate at 1776 Southeast 10th Street for $1,242 per square foot, records show. The buyer is a Delaware company that lists its address as a Phoenix home owned by Mark Tkach.

776 Southeast 10th Street (Credit: Realtor)

Tkach is the CEO of RideNow PowerSports, which claims to be the largest motorsports dealer in the United States, operating over 42 dealerships across the country, according to its website.

The property has over 300 feet of water frontage and has six bedrooms and eight-and-a-half bathrooms.

Kelly Drum of Drum Realty was the listing agent for the property. It was listed in October for $13.2 million.

Terry Stiles was the chairman and CEO of Stiles Corp. He transformed Fort Lauderdale’s downtown, building the city’s tallest and most prominent office buildings. Stiles constructed the Bank of America Plaza at Las Olas City Centre in 2002 and AutoNation’s headquarters in 2006. The developer died in 2017 at age 70 after a lengthy battle with cancer.

At the time of his death, the company had built more than 43 million square feet of commercial and multifamily space across the country.

Records show the Stiles paid $8.17 million for the mansion in 2016.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/22/terry-stiles-widow-sells-fort-lauderdale-waterfront-mansion-for-10m/
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Virgin Trains closes $1.75B bond issue to fund expansion to Orlando

From left: Francis Suarez, Patrick Goddard, Richard Branson, Esteban Bovo and Ken Russell

Virgin Trains USA, formerly Brightline, closed a $1.75 billion private-activity bond issue to fund an expansion of its passenger train service to Orlando.

Investment banking firm Morgan Stanley was the underwriter for the bond issue purchased by 67 investors. A state agency, the Florida Development Finance Corp., approved the bond issue April 5.

Part of the Virgin Group founded by Richard Branson, Virgin Trains will use the bond-issue proceeds to fund construction of 170 miles of new track from West Palm Beach to an intermodal facility at Orlando International Airport.

Construction will start soon and is expected to conclude in 2022.

Virgin Trains, which also plans to extend its service in Florida to Tampa, has announced that it will operate passenger train service between Southern California and Las Vegas.

A subsidiary of Fortress Investment Group LLC, Virgin Trains last year launched service at downtown train stations in Miami, Fort Lauderdale and West Palm Beach.

“We have already seen firsthand the economic benefits our project has delivered in South Florida from revitalizing downtown Miami to spurring growth in Fort Lauderdale and West Palm Beach.” Patrick Goddard, president of Virgin Trains, said in a prepared statement. – Mike Seemuth

from The Real Deal Miami https://therealdeal.com/miami/2019/04/21/virgin-trains-closes-1-75-billion-bond-issue-to-fund-expansion-to-orlando/
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Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
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Terry Stiles’ widow sells Fort Lauderdale waterfront mansion for $10M

 

Terry Stiles and 776 Southeast 10th Street (Credit: Realtor)

Jamie Stiles, widow of the late commercial developer Terry Stiles, sold the couple’s waterfront Fort Lauderdale mansion for $10.1 million.

Stiles sold the 8,166-square-foot-estate at 1776 Southeast 10th Street for $1,242 per square foot, records show. The buyer is a Delaware company that lists its address as a Phoenix home owned by Mark Tkach.

776 Southeast 10th Street (Credit: Realtor)

Tkach is the CEO of RideNow PowerSports, which claims to be the largest motorsports dealer in the United States, operating over 42 dealerships across the country, according to its website.

The property has over 300 feet of water frontage and has six bedrooms and eight-and-a-half bathrooms.

Kelly Drum of Drum Realty was the listing agent for the property. It was listed in October for $13.2 million.

Terry Stiles was the chairman and CEO of Stiles Corp. He transformed Fort Lauderdale’s downtown, building the city’s tallest and most prominent office buildings. Stiles constructed the Bank of America Plaza at Las Olas City Centre in 2002 and AutoNation’s headquarters in 2006. The developer died in 2017 at age 70 after a lengthy battle with cancer.

At the time of his death, the company had built more than 43 million square feet of commercial and multifamily space across the country.

Records show the Stiles paid $8.17 million for the mansion in 2016.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/22/terry-stiles-widow-sells-fort-lauderdale-waterfront-mansion-for-10m/
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Virgin Trains closes $1.75 billion bond issue to fund expansion to Orlando

From left: Francis Suarez, Patrick Goddard, Richard Branson, Esteban Bovo and Ken Russell

From left: Francis Suarez, Patrick Goddard, Richard Branson, Esteban Bovo and Ken Russell

Virgin Trains USA, formerly Brightline, closed a $1.75 billion private-activity bond issue to fund an expansion of its passenger train service to Orlando.

Investment banking firm Morgan Stanley was the underwriter for the bond issue purchased by 67 investors. A state agency, the Florida Development Finance Corp., approved the bond issue April 5.

Part of the Virgin Group founded by Richard Branson, Virgin Trains will use the bond-issue proceeds to fund construction of 170 miles of new track from West Palm Beach to an intermodal facility at Orlando International Airport.

Construction will start soon and is expected to conclude in 2022.

Virgin Trains, which also plans to extend its service in Florida to Tampa, has announced that it will operate passenger train service between Southern California and Las Vegas.

A subsidiary of Fortress Investment Group LLC, Virgin Trains last year launched service at downtown train stations in Miami, Fort Lauderdale and West Palm Beach.

“We have already seen firsthand the economic benefits our project has delivered in South Florida from revitalizing downtown Miami to spurring growth in Fort Lauderdale and West Palm Beach.” Patrick Goddard, president of Virgin Trains, said in a prepared statement. – Mike Seemuth

from The Real Deal Miami https://therealdeal.com/miami/2019/04/21/virgin-trains-closes-1-75-billion-bond-issue-to-fund-expansion-to-orlando/
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Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
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Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
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Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
via

Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
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Chicago’s first building code overhaul in 70 years could boost housing market: experts

Buildings Department Commissioner Judy Frydland (Credit: iStock; illustration by Kevin Rebong for The Real Deal)

The City Council’s recent move to update Chicago’s building code for the first time in 70 years could be a boon for the real estate industry, which long has pushed for changes to make development cheaper and easier.

The new code adopts a lot of the standards in the 2018 International Building Code, which architects and designers are billing as a huge win for the industry. For one, architects will have to spend less time becoming acquainted with Chicago’s byzantine code.

“It will help standardize how architects complete projects, so Chicago is not as peculiar as it used to be,” said Zurich Esposito, executive vice president of the American Institute of Architects’ Chicago branch.

Some of the big changes in the new building codes include requiring sprinkler systems in residential buildings with four or more units, reducing the minimum ceiling requirements in basement and attic spaces to boost ancillary dwelling units, and requiring seismic design features for the first time in the city’s history.

Development, particularly of high-rise multifamily and office buildings, still flourished under the previous code. But that doesn’t mean the process wasn’t onerous.

Modern building techniques and materials have been allowed in Chicago’s new developments, but using them often required a special approval, which ate up time and resources for the city and developers, city Buildings Department Commissioner Judy Frydland said.

“It gives our code a flexibility,” said Frydland, who spearheaded the overhaul.

For example, glass as a structural element in buildings was permissable only if the builder secured a special permit, since the previous rules did not specifically allow it. Now developers wanting to use glass in such a way won’t need to seek special permission, said Chris Chwedyk, a licensed architect who also works as a building code consultant.

The same goes for new materials used in roof repairs and the use of plastics in certain home projects, he said.

The new code will also allow for the use of the “performative method,” which allows for greater flexibility in rehab projects, said Ken DeMuth, partner at Pappageorge Haymes Partners who was co-chairman of the committee charged with reviewing the city’s renovation codes. Previously, rehabbers and developers followed the “prescriptive” method, which required them to stick to the letter of the building code.

“It gives you more approaches to use,” DeMuth said. “Especially in rehabs, not everything fits in a nice, neat box.”

While the changes will impact high-rise construction, the new code will particularly be a boon to single-family and small-scale development, said Paul Colgan, government affairs director for the Home Builders Association of Greater Chicago.

“We’re building a lot of multifamily but not a lot of single-family or two flats,” Colgan said. “These could help construct some of the housing types that are needed in the neighborhood.”

Streamlining the permitting process and allowing for new construction methods and materials could make housing development cheaper, therefore reducing housing prices for residents, said Brian Bernardoni, local government affairs director for the Illinois Association of Realtors.

“We won’t have an affordable city until we have an affordable building code,” he said. “We’re making strides in that direction.”

In overhauling the code, Frydland said an emphasis was placed on making home improvements and historical rehabs easier and more affordable. A pilot program that allowed the use of new techniques and materials in plumbing worked saved Chicago homeowners and landlords $15 million, Frydand said.

Real estate advocates did not get everything they wanted in the overhaul. The industry lobbied for allowing more extensive use of plastic piping in some housing development, but it did not make the final cut.

And requiring sprinkler systems in new residential construction of four or more units will increase costs for developers. Coglan said he’d have liked to have seen a higher threshold for sprinklers, but that “staying away from single family, two- and three-flats is crucial.” To help with the cost of sprinklers, the city will now allow developers greater height and density in some buildings, according to the city.

The city will gradually phase in the new code, to allow for the working out of any kinks that should arise, Frydland said.

The new building code book will be published in October, at which point the city will have an invitation-only pilot program that will allow developers to use the new rules. Frydland said developments of all sizes will hopefully participate in the pilot to determine how the new codes impact building projects.

The new regulations will become mandatory by August 2020.

“There’s still a lot of work to be done,” Frydland said.

from The Real Deal Miami https://therealdeal.com/chicago/2019/04/19/chicagos-first-building-code-overhaul-in-70-years-could-boost-housing-market-experts-say/#new_tab
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ZOM Living buys land, scores financing for Luma at Miami Worldcenter

Greg West CEO of ZOM Living and a rendering of Luma (Credit: LinkedIn)

ZOM Living bought the land and scored a $119 million construction loan to build a 43-story apartment tower at Miami Worldcenter.

Records show ZOM bought the property near Northeast First Avenue and Northeast Eighth Street for $19.5 million.

The Orlando-based developer secured the loan from the New York-based Moinian Group, records show. The Moinian Group will also be a partner in the project, according to a press release.

The new apartments will be a center point of the 27-acre, $4 billion Miami Worldcenter project, led by developers Nitin Motwani and Art Falcone.

Luma will have 434 apartments, which will span 556 square feet to 1,808 square feet. Amenities will include a wellness center, a sundry shop, speakeasy, dog salon, fitness club with a classroom, and a pool.

Construction is expected to begin in July and will take about 30 months, according to ZOM Living CEO Greg West.

The development group behind Miami Worldcenter also secured a $34.7 million loan from Bank OZK for a parking garage that will be used for the Luma.

Cushman & Wakefield Robert Given and Robert Kaplan secured equity and debt financing on behalf of ZOM Living and the Moinian Group.

Miami Worldcenter, a mix of retail, residential, hotels and office space, is among the biggest real estate projects on the East Coast.

Paramount Miami Worldcenter, a 60-story condo tower is expected to be completed in July and will have more than 500 residential units.

Chicago-based Fifield is proposing a 47-story, 738,000-square-foot building with about 15,000 square feet of retail space on the northeast corner of Northeast 10th Street and Northeast First Avenue as part of the project. Other components of Miami Worldcenter include a 1,700-room convention center hotel from MDM Development Group and an office tower built by Hines with up to 500,000 square feet of office space.

ZOM Living is also the developer of Solitair Brickell, a 50-story, 438-unit luxury apartment building at 86 Southwest Eighth Street.

The Moinian Group has a portfolio of more than 20 million square feet throughout the country, according to its website, including the Sky residential tower at 605 West 42nd Street in New York City.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/18/zom-living-buys-land-scores-financing-for-luma-at-miami-worldcenter/

South Florida resi sales fell in Q1: Elliman

Miami skyline (Credit: iStock)

Residential sales volume declined in a number of South Florida markets during the first quarter, according to the latest Douglas Elliman reports.

Jonathan Miller, who authored the reports, said market conditions are generally improving, but decreases in sales are sending mixed messages.

Miami Beach and barrier islands

Miami Beach, which in previous quarters has been saddled with an oversupply of inventory, was among the stronger areas. Unlike other markets that Elliman tracks, the median price for luxury condos in Miami Beach rose, and inventory fell. “The decline in supply probably has more to do with [condo] developers managing inventory,” Miller said. “We’ve seen it level off and we’ve seen a little bit of tightening but there’s still a ways to go.”

Still, the volume of residential sales dipped in Miami Beach and the barrier islands during the first quarter. The number of sales totaled 772, down 2 percent from the previous year, while the median sales price increased 2.3 percent to $440,000.

Single-family home sales remained flat in the first quarter, at 81 closings. Condo sales fell 2.3 percent to 691. Pricing held steady for condos, which reported a median sales price of $380,000 in the first quarter, but skyrocketed for single-family homes — up nearly 18 percent to a median price of $1.65 million.

Condos sat on the market for much longer than they did in the first quarter of last year, up 76.5 percent to 143 days. Single-family houses lingered for 171 days, an increase of a whopping 144 percent from the same period last year.

The area of the barrier islands includes Sunny Isles Beach, Bal Harbour, Bay Harbor Islands, Surfside, North Bay Village, North Beach, Key Biscayne and Fisher Island.

Coastal Miami mainland

Sales volume fell 7.5 percent to 3,104 on the coastal Miami mainland, which covers Aventura, downtown Miami, Brickell, Coconut Grove, Coral Gables, South Miami, Pinecrest and Palmetto Bay. Condo sales dropped by 4.6 percent to 1,580, while single-family home sales tumbled by 10.3 percent to 1,524 closings.

The Coral Gables condo market and the Palmetto Bay single-family market were the only markets on the coastal mainland to experience a positive quarter, with sales increasing 10.5 percent to 63 closings, and 24.4 percent to 56, respectively.

The median sales price in Miami was $249,000 for condos – up 4 percent year-over-year – and $375,000 for houses, an increase of 2.7 percent.

The condo inventory grew to 8,276, up 4.1 percent from the same period last year. The inventory of single-family homes grew by 13.2 percent to 3,971, according to Elliman.

Fort Lauderdale

Residential sales volume declined by 13 percent in the first quarter in Fort Lauderdale, down to 878 closings. Condo sales decreased to 507 closings, down 8.8 percent; while single-family home sales tumbled to 371 – an 18.3 percent decline.

The median price of a condo was $295,000, down 9 percent year-over-year. For a house, it reached $385,000, up 5.7 percent.

Condo inventory grew slightly (2.1 percent) to 1,584; and the single-family home inventory was 1,102, up 6.6 percent.

Palm Beach

In Palm Beach, sales volume fell 8.8 percent to 104 – a difference of 10 units compared to the first quarter of last year. Condo sales rose nearly 5 percent to 85 closings, and single-family home sales plummeted to 19, down 42.4 percent. It was the lowest level in seven years, according to Elliman.

The median price in Palm Beach for a house was $4.2 million, up 5 percent from last year, and $599,000 for a condo, roughly on par with the median condo price last year.

Boca Raton

Home and condo sales volume fell in Boca Raton during the first quarter to 1,083, an 8.4 percent drop year-over-year. Single-family home sales dropped 10.5 percent to 486; and condo sales decreased by 6.6 percent to 597.

The median sales price for a condo was up only 1.2 percent to $270,500. The median sales price of a single-family house was $450,000, an increase of 4.7 percent from the previous year, but flat from the fourth quarter of 2018.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/18/south-florida-resi-sales-fell-in-q1-elliman/

South Florida resi sales fell in Q1: Elliman

Miami skyline (Credit: iStock)

Residential sales volume declined in a number of South Florida markets during the first quarter, according to the latest Douglas Elliman reports.

Jonathan Miller, who authored the reports, said market conditions are generally improving, but decreases in sales are sending mixed messages.

Miami Beach and barrier islands

Miami Beach, which in previous quarters has been saddled with an oversupply of inventory, was among the stronger areas. Unlike other markets that Elliman tracks, the median price for luxury condos in Miami Beach rose, and inventory fell. “The decline in supply probably has more to do with [condo] developers managing inventory,” Miller said. “We’ve seen it level off and we’ve seen a little bit of tightening but there’s still a ways to go.”

Still, the volume of residential sales dipped in Miami Beach and the barrier islands during the first quarter. The number of sales totaled 772, down 2 percent from the previous year, while the median sales price increased 2.3 percent to $440,000.

Single-family home sales remained flat in the first quarter, at 81 closings. Condo sales fell 2.3 percent to 691. Pricing held steady for condos, which reported a median sales price of $380,000 in the first quarter, but skyrocketed for single-family homes — up nearly 18 percent to a median price of $1.65 million.

Condos sat on the market for much longer than they did in the first quarter of last year, up 76.5 percent to 143 days. Single-family houses lingered for 171 days, an increase of a whopping 144 percent from the same period last year.

The area of the barrier islands includes Sunny Isles Beach, Bal Harbour, Bay Harbor Islands, Surfside, North Bay Village, North Beach, Key Biscayne and Fisher Island.

Coastal Miami mainland

Sales volume fell 7.5 percent to 3,104 on the coastal Miami mainland, which covers Aventura, downtown Miami, Brickell, Coconut Grove, Coral Gables, South Miami, Pinecrest and Palmetto Bay. Condo sales dropped by 4.6 percent to 1,580, while single-family home sales tumbled by 10.3 percent to 1,524 closings.

The Coral Gables condo market and the Palmetto Bay single-family market were the only markets on the coastal mainland to experience a positive quarter, with sales increasing 10.5 percent to 63 closings, and 24.4 percent to 56, respectively.

The median sales price in Miami was $249,000 for condos – up 4 percent year-over-year – and $375,000 for houses, an increase of 2.7 percent.

The condo inventory grew to 8,276, up 4.1 percent from the same period last year. The inventory of single-family homes grew by 13.2 percent to 3,971, according to Elliman.

Fort Lauderdale

Residential sales volume declined by 13 percent in the first quarter in Fort Lauderdale, down to 878 closings. Condo sales decreased to 507 closings, down 8.8 percent; while single-family home sales tumbled to 371 – an 18.3 percent decline.

The median price of a condo was $295,000, down 9 percent year-over-year. For a house, it reached $385,000, up 5.7 percent.

Condo inventory grew slightly (2.1 percent) to 1,584; and the single-family home inventory was 1,102, up 6.6 percent.

Palm Beach

In Palm Beach, sales volume fell 8.8 percent to 104 – a difference of 10 units compared to the first quarter of last year. Condo sales rose nearly 5 percent to 85 closings, and single-family home sales plummeted to 19, down 42.4 percent. It was the lowest level in seven years, according to Elliman.

The median price in Palm Beach for a house was $4.2 million, up 5 percent from last year, and $599,000 for a condo, roughly on par with the median condo price last year.

Boca Raton

Home and condo sales volume fell in Boca Raton during the first quarter to 1,083, an 8.4 percent drop year-over-year. Single-family home sales dropped 10.5 percent to 486; and condo sales decreased by 6.6 percent to 597.

The median sales price for a condo was up only 1.2 percent to $270,500. The median sales price of a single-family house was $450,000, an increase of 4.7 percent from the previous year, but flat from the fourth quarter of 2018.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/18/south-florida-resi-sales-fell-in-q1-elliman/
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Former “Undercover Boss” dives into development in Boynton Beach

Maureen Murtaugh, Cheran Merak, and Steven Newman with a renderings of Eden Ridge

A former executive and board member of major retail brands like the Gap, Brooks Brothers and Loehmann’s is getting into the homebuilding business.

Steven Newman, who was featured on CBS’ “Undercover Boss” while he was CEO of Loehmann’s, is launching sales of Eden Ridge, a group of eight luxury homes in Boynton Beach, with his partners, builder Aldo J. Kosuch and architect Gary Eliopoulos, The Real Deal has learned.

Newman said that while he’s bought and sold his own homes over the years, the project marks his first development.

Eden Ridge, at 3479 South Seacrest Boulevard, will have eight homes with models that are 3,575 square feet, 3,825 square feet and 4,130 square feet. Preconstruction prices range from just under $1 million to $1.49 million, Newman said. Maureen Murtaugh and Cheran Merak of Douglas Elliman are handling sales and marketing out of Elliman’s Delray Beach office.

“$1 million goes a lot further with us than in Delray Beach,” Newman said.

The homes will be built next to a 54-acre nature preserve. They’ll include 10-foot ceilings, recessed lighting, marble, porcelain or wood floors, master suites and kitchen packages.

Newman said Boynton Beach is the next trendy neighborhood in the Boca Raton and Delray Beach area, with more than $350 million being invested in the city’s downtown.

Property records show Eden Ridge LLC paid $1.1 million for the 2.8-acre site in May 2017.

Newman plans to break ground on two spec homes at the project in the summer, while the developers begin building the street and installing infrastructure.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/17/former-undercover-boss-dives-into-development-in-boynton-beach/
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Bank seeks to foreclose on Fort Lauderdale mansion, Fisher Island condo of former Patriot National CEO

Steven Mariano and 414 Riviera Isle Drive (Credit: Zillow)

In 2015, Steven Mariano was one of Fort Lauderdale’s most prominent businessmen and on the verge of taking his upstart insurance company Patriot National public on the New York Stock Exchange.

Fast forward four years and Mariano has been ousted from his now bankrupt company amid allegations of fraud, and a bank is now seeking to foreclose upon Mariano’s $7 million Fort Lauderdale waterfront mansion.

UBS Bank is seeking to foreclose on Mariano’s house at 414 Riviera Island Drive after the bank alleges in a Broward County Circuit Court filing that he failed to pay back a balance of $4.5 million that he owed.

414 Riviera Isle Drive

UBS is also seeking to foreclose upon Mariano’s Fisher Island condo, unit 5212 at the Bayview, which is on the market for $6.5 million.

Another bank, Fifth Third Bank, is seeking to collect on the proceeds from the sale of the foreclosed Fort Lauderdale home in order to collect on a $32 million loan for a yacht and $12.5 million revolving loan the bank claims it made to Mariano.

The eight bedroom, 10-and-a-half bathroom, three-story mansion spans 18,491 square feet and overlooks the New River. It is currently on the market for $7 million, $2 million more than Mariano paid for the house in 2011, records show.

The estate, which includes a 16-seat theater, a game room, a full gym, a sauna and a custom wine cellar, embodied the life that Mariano sought to live.

The businessman donated millions of dollars to universities including Nova Southeastern University and the University of Miami, while his company was the main sponsor for charity events such as the American Heart Association’s Heart Ball and the American Fine Wine Competition Gala.

414 Riviera Isle Drive (Credit: Zillow)

His two companies, Patriot National and Guarantee Insurance Co., occupied two floors in Fort Lauderdale’s premier Class A office building, Las Olas City Centre at 401 East Las Olas Boulevard in downtown. Guarantee Insurance Co.’s floor was formerly occupied by the law office of Scott Rothstein, the convicted mastermind of Florida’s biggest Ponzi scheme.

Despite Mariano’s outward appearance of success, which included his 187-foot yacht, named Lady Sara, behind the scenes Mariano’s insurance companies were experiencing major financial troubles. Guarantee Insurance Co. was a worker’s compensation insurer, while Patriot National provided back office technology support for insurance companies.

Issues arose when it was discovered that Guarantee Insurance Co. accounted for up to 80 percent of Patriot National’s business, according to Securities and Exchange Commission filings.

Under Mariano’s direction, Patriot National then injected $30 million to Guarantee Insurance Co., which appeared to be done so that Guarantee Insurance could meet its capital requirements with regulators and remain solvent.

Mariano, who had been trying desperately to keep his insurance empire afloat, was pushed out as CEO of the company in July 2017. In November 2017, Guarantee Insurance Co. was deemed to be insolvent by state regulators, who also alleged that Guarantee Insurance Co. systematically transferred at least $15.74 million to Mariano with “no documented business purpose.”

Patriot National was eventually acquired by its two biggest creditors and announced it would file for Chapter 11 bankruptcy in December 2017.

Since then, Mariano has kept a low profile, facing a number of lawsuits from creditors and investors who allege that Mariano’s actions caused the stock to drop.

Mariano’s lawyer, Bernard L. Egozi Egozi & Bennett, said he could not comment on pending litigation. UBS Bank’s lawyer, Brian Albaum of Phelan Hallinan Diamond & Jones did not respond to a request for comment.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/16/bank-seeks-to-foreclose-on-fort-lauderdale-mansion-fisher-island-condo-of-former-patriot-national-ceo/
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Reichmann, Fortress score construction loan for Delray Beach project

Michael Weitzner of Reichmann International Realty Advisors and Inspired Living at Delray

Reichmann International Realty Advisors and Fortress Ventures secured a $20 million construction loan to build a 131-unit assisted living facility in Delray Beach.

The partnership is building a $34 million project at 14160 Via Flora tentatively called the Inspired Living at Delray. The facility is expected to break ground in a couple of weeks, according to Michael Weitzner, managing partner of Reichmann International.

A company tied to Fortress Ventures bought the 5.6-acre site in June 2018 for $3 million, records show.

Reichmann International is based in Toronto, Ontario and has developed or managed over 70 million square feet of office, retail and industrial properties. It built the World Financial Center, now known as the Brookfield Place, in New York City, as well as Toronto’s First Canadian Place. The Reichmann family is reportedly one of the wealthiest families in Canada with a net worth of over $2 billion, according to the publication Canadian Business.

Fortress Ventures is a real estate investment firm headquartered in Estero, Florida. It specializes in senior living and memory care facilities. The company’s projects include a 64-unit memory care project in St. Augustine and a 140-unit assisted living and memory care facility in Fort Myers.

Delray Beach is seeing a rush of new development due to its walkable downtown and rising prices in nearby Fort Lauderdale and West Palm Beach.

Aventura-based BH3 is planning to develop a $100 million mixed-use project on the land at the 600, 700, 800 and 900 blocks on the south side of West Atlantic Avenue.

In January, a joint venture between 13th Floor Investments, Key International and CDS International bought the former Office Depot headquarters in Delray Beach for $33 million. The group intends to redevelop the property into one of the biggest projects in the city’s history.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/15/reichmann-fortress-score-construction-loan-for-delray-beach-project/
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Overtown apartments, retail store sell for $14M

Arthur Bartholomew and The Manhattan II, at 560 Northwest 7 (Credit: Google Maps)

Six properties in Miami’s Overtown neighborhood just sold for $14 million, signaling growing interest in real estate in the area.

A company tied to Thomas Neary and Arthur Bartholomew of Fort Lauderdale-based Walnut Street Capital bought the properties spanning 2.2 acres, records show. All of the properties were owned by companies tied to either Larry and Leslie Gratz or Teresa Matias of Miami.

The deal includes:

— An 83-unit apartment building called the Manhattan II at 560 Northwest 7th Street sold for $5.6 million. The building sits on a 30,000-square-foot lot.

— A retail store at 701 Northwest 5th Avenue sold for $300,000. The property sits on a 5,000-square-foot lot.

— A 20-unit multifamily building at 451 Northwest 7th Street sold for $1.6 million. The development sits on a 15,000-square-foot lot.

— Two 10-unit multifamily buildings at 458 Northwest 7th Street and 448 Northwest 7th Street sold for $2.1 million. The combined lots total 15,000 square feet.

— A 54-unit apartment building at 400 Northwest 7th Street sold for $4.35 million. The building sits on a 30,000-square-foot lot.

More developers are buying properties in Overtown, a historically distressed area, due to its proximity to downtown Miami and its Opportunity Zone designation.

In January, BrickOne Group, led by Costantino Cicchelli, Frank Rodriguez Melo and Stefano Garofoli, paid about $5.4 million for three buildings with 66 apartment units at 149 Northwest 11th Street, 1232 Northwest First Place and 1201 Northwest Second Avenue in Overtown. The deal breaks down to about $81,250 per unit.

Last year, a company tied to the principals of Miami-based TSG Group proposed a new Cambria hotel in Overtown. The 12-story, 192-key hotel will be built at 1313, 1321, 1331 and 1335 Northwest Ninth Avenue and 851 Northwest 13th Street.

from The Real Deal Miami https://therealdeal.com/miami/2019/04/15/overtown-apartments-retail-store-sell-for-14m/
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