New Yorkers ❤ South Florida Office Buildings

New Yorkers ❤ South Florida Office Buildings

Another New York firm has entered the Florida office market.

Princeton International Properties, a Manhattan-based investment and development firm, announced this week that it acquired its first Florida property: a Class A office building in Coral Gables.

Princeton paid $90 million for the property, at 355 Alhambra Circle, according to a deed filed with Miami-Dade County.

It’s a 16-story tower with 225,000 square feet of office space and “best-in-class parking,” Princeton said in a release.

All the better to attract those out-of-town firms who might be browsing in the neighborhood.

“We believe this property represents a compelling opportunity for companies looking to establish a prominent presence in one of South Florida's most distinguished locations," David Tawfik, President of Princeton International Properties, said in statement.

While other U.S. metros struggle to fill their downtown office buildings, South Florida continues to attract investors in this asset class.

In last week’s issue we noted that L&L Holding Company, owner of prime Fifth and Park Avenue office towers in Manhattan, is topping out construction of a new office building in Miami’s Wynwood neighborhood. The project is a joint venture with Oak Row Equities.

Dinner With Nora in West Palm Beach

Planning dinner, dessert-- or a workout -- in West Palm Beach come late 2024?

The developers of Nora, the rising retail, office and residential district north of downtown, have some options for you.

This week, they announced the first round of retail tenants to sign on to the project’s first phase.

New Yorkers and Bostonians might feel a sense of home.

Tenants include: New York’s H&H Bagels and Van Leeuwen Ice Cream, with its debut Florida location. Broadway Restaurant Group will open its first eatery outside of Boston: Loco Taqueria and Oyster Bar, which will occupy 4,650 square feet with indoor and outdoor space.

Boxing gym Rumble and a pilates studio called “[solidcore]” will also be tenants. A 201-key hotel developed by Sean MacPherson and BD Hotels — whose pedigrees include Manhattan’s Hotel Chelsea and The Bowery Hotel — had been announced earlier.

“I’ve never seen so much interest in a market in my 30 years of doing this,’’ said Francis Scire, Nora’s head of leasing, whose career included a decade re-imagining malls for Simon Property Group. “Ninety-five percent of the presentations I make, people are ready to accept a space.”

West Palm – and South Florida overall-- is seeing as surge of office and residential construction as new residents migrate to the region, and financial, legal and tech firms from elsewhere open offices in the area.

Leasing of Nora’s retail spaces will focus heavily of food and beverage attractions, with 25 in the first phase of the project. Two more restaurant announcements forthcoming, Scire said.

“The demand for restaurant and eateries is so high and the supply is really tapped out, that people will drive in their car for half an hour,’” for a dinner out, he said.  

Nora’s $123 million first phase includes the rehabilitation of old warehouses along North Railroad Avenue and some new construction, for a total of 154,000 square feet of retail, with creative office space on top. This part of the project will be Nora’s Main Street and will be complete at the end of 2024.

A second phase will include residences, Class A office and and the hotel.

NDT Development, Place Projects and Wheelock Street Capital are the developers.

House Hunting in Miami is a Competitive Sport

New housing data is out this week, and it shows that South Florida living is getting pricier— and more cutthroat.

• Miami-Dade County is the most competitive rental market in the U.S., according to a report by RentCafe. There are 25 renters competing for every vacant unit, and the lease renewal rate is 73%.

• For-sale housing is still getting pricier: Miami single-family median prices have risen for 141 consecutive months (11.75 years), a report this week by the Miami Association of Realtors said.

• The median price of a single-family home in Miami-Dade increased 12.5% in August from a year ago to $620,000.

• Cash sales represented 40.3% of all deals in August, compared to 39.7% in August 2022. That’s a premium over the rest of country, where cash deals account for 27% of home sales, according to the National Association of Realtors

• Palm Beach County home prices were up 7.1% in August from a year ago. The median is now $605,000, Miami Realtors said.

• Broward County single-family home median prices increased 6.7% to $600,000

Have you heard? Other News of the Week

• Not so Brightline? Morgan Stanley was sued on Monday for at least $750 million by private equity firms who claimed they were defrauded in their investment in the Brightline rail. (Reuters)

• Affordability crisis: Hialeah mayor grows frustrated over RVs used as rental homes, seeks crackdown (Local 10 News)

• Luxury apartment glut in South Florida offers some price relief (WSJ)

• 5 New Towers, Including An Office Building, Proposed At Miami Worldcenter (Bisnow)

• Florida Python Challenge winner catches 20 Burmese pythons in 10 days (Axios Miami)

• South Florida developers zero in on Messi fever (Real Deal)

• Candy-stripe aircraft starts route from Frankfurt to Miami. Seriously, just look at the picture ⬇ (Thrillist)

That’s it for today. If you like what you’re reading, please consider subscribing here:https://highest-and-best.beehiiv.com/subscribe