Daily Archives: December 11, 2006
Mixed-use development gets $210.29M
South Florida Business Journal – December 8, 2006
Three phases of the Riverfront West development in Miami’s central business district has received $210.29 million in financing.
The Miami office of Holliday Fenoglio Fowler said it arranged the package, which includes The Mint, a to-be-built, 52-story luxury condominium tower, and two additional development parcels totaling 1.7 acres.
HFF said the borrower is Key International.
The company said Corus Bank provided a $191.8 million adjustable-rate construction loan for Mint development, while Ocean Bank provided an $18.49 million adjustable-rate land financing to refinance land parcels III and IV of the Riverfront West planned development community.
Riverfront West is a 6.92-acre, mixed-use project to have four buildings with direct access and frontage along the Miami River.
HFF said The Ivy, currently under construction, is the first phase of the project. It is to have a 504-unit residential condominium tower with 12,000 square feet of retail condominiums.
HFF said it arranged construction financing for The Ivy last year.
Due for completion in February 2009, The Mint (Phase II) is to offer 535 one-, two- and three-bedroom units averaging 1,156 square feet each, plus 12,126 square feet of retail space.
The Mint is to be at Southwest Third Street and South Miami Avenue, with 900 feet of water frontage along the Miami River.
NY Sun claims that Art Basel is the principal art event in the Hemisphere—dwarfing competitors.
Critical Miami has a great overview of Art Basel 06’ with some excellent pictures to match.
Oregon Live provides a day by day analysis of Art Basel.
France’s International Herald Tribune chips in with it own extensive article, which describes Art Basel as an art Costco for billionaires.
New York Magazine details a Moroccan Nights Art Basel event.
According to ContactMusic.com, this weekend at Art Basel, Beyonce and Jay-Z spent $40,000 on a chair!
Experts take grim view on residential real estate
BY NANCY DAHLBERG
More troubled waters in residential real estate.
This view comes from the trenches: More than 70 percent of real estate professionals in a University of Florida survey last week said it was a bad time to build condos; 46 percent said the same thing about single-family housing.
There’s more: Nearly half of this often-bullish group expects not just condos but also single-family home prices to drop. The number in the bearish camp has doubled in just two months.
The one upside: Real estate professionals were much more upbeat about the outlook for commercial real estate. Occupancy rates appear to be stable or increasing around Florida, noted Wayne Archer, who directs UF’s Bergstrom Center for Real Estate Studies.
Affordable housing, exasperated by insurance costs, is so out of reach that many South Floridians are giving up and moving out, as The Miami Herald reported in August [You can view the report at MiamiHerald.com/business.] From other sources come other troubling indicators:
• According to Leadership Florida’s recently released Sunshine State Survey, 93 percent of South Florida respondents view affordable housing as a serious problem facing current residents, people moving here, or both.
• Research from Florida TaxWatch shows that in 2005, Miami-Dade led the state in the percentage of residents unable to afford a median 2-bedroom rental: 68 percent. Broward’s 55 percent exceeded the state average.
• In 2005, as many as 1.1 million households in Florida — 17 percent — actually confronted a serious problem with affordable housing, according to UF data.
We need solutions.
Some companies have instituted programs to help workers. I’d like to help share the good ideas. What has worked for you? And what do you think businesses should be doing to fight this problem? E-mail ndahlberg@Miami
Herald.com and I’ll share the responses in a future column.
I leave you with one thought: It could be worse. In Amsterdam, young workers are living in shipping containers.
Dubai firm sells its stake in Port of Miami-Dade
Miami Herald Staff and Wire Report
American International Group, the world’s largest insurer, agreed to buy DP World’s U.S. port terminals — including its stake in the Port of Miami-Dade — after the Dubai-owned company was forced to sell under pressure from U.S. lawmakers.
AIG’s asset management and private equity unit, AIG Global Investment Group, will purchase the terminals plus cargo handling operations and a New York passenger terminal, DP World CEO Mohammed Sharaf said today in a telephone interview from Dubai.
”They are 100 percent American and they offered the best price,” Sharaf said, declining to comment on the value of the sale or whether DP World made a profit on the transaction. ”We want to come back to the U.S. should the timing be right and should we be welcomed,” he said.
DP World, owned by the emirate of Dubai, United Arab Emirates, bought London-based Peninsular & Oriental Steam Navigation Co. for $6.8 billion in February to become the world’s third-biggest container port operator after Singapore-owned PSA International Pte. In March it agreed to sell P&O terminals in the United States when the deal caused a political uproar.
Ontario Teachers’ Pension Plan, Canada’s third-biggest retirement-fund manager, agreed last month to buy four North American container terminals from Orient Overseas (International) Ltd. for $2.35 billion.
AIG Global Investment Group invests funds that are held to pay claims for policyholders of its property and casualty and life insurance units.
Lawmakers, including New York Democratic Sen. Charles Schumer, threatened to block the takeover on the grounds that two of the Sept. 11 hijackers had come from the United Arab Emirates and that the plotters used the Persian Gulf country’s banking system to funnel money to the operation.
Dubai ”understands even at the peak of the crisis earlier this year there was no damage to the relationship between America and the U.A.E.,” Mustafa Alani, director of national security at the Gulf Research Center in Dubai, said in a phone interview from Dubai.
DP World was seeking $700 million, or about 10 percent of the price it paid for P&O, Lloyd’s List reported Oct. 3, citing Jamal bin Thaniah, head of the Dubai ports and free zones authority of which DP World is a unit. The terminals accounted for 10 percent of P&O’s global assets before Dubai’s takeover.
”Our understanding with the U.S. authorities is that we will sell to U.S. entities with no economic loss,” Yuvraj Narayan, DP World’s senior vice president for corporate strategy, said in a March 15 interview.
DP World now aims to transfer the terminals to AIG in the first quarter of 2007, according to Sharaf. The leases on the terminals that AIG bought are between one and 40 years, and the sale was entirely in cash, he said.
Transactions in the shipping and ports sector jumped 41 percent to $30.6 billion in the first nine months of this year compared with the same period a year ago, according to data compiled by Bloomberg.
DP World is planning an initial share sale to fund global expansion and could be worth as much as $10 billion, according to estimates by London-based consulting firm Drewry Shipping.