Daily Archives: June 8, 2007

Turnberry Secures $4 Billion to Fund Projects in Miami and Las Vegas

Along with the Fontainebleau Miami Beach $1 billion expansion, Turnberry Associates (Jeffrey Soffer) plans a 2.9 billion development in the Las Vegas strip that will include:

  • 1,000 condo hotel units
  • 25 acres
  • 63 floor tower
  • 3,889 room resort
  • Casino
  • 60,000 sq. ft. spa
  • 3,200 seat performing arts center

Turnberry Associates has also built:

 

“Fontainebleau Resorts raised $565 million in private placements of common and preferred equity. Part of that funding includes closing on the $250 million invested by Publishing & Broadcasting Ltd. of Australia for a nearly 20 percent stake in the privately-held company.

“The debt financing announced Thursday was led by Bank of America, Merrill Lynch, Deutsche Bank and Barclays. Lehman Brothers, JP Morgan Chase, Bank of Scotland, Royal Bank of Scotland and Sumitomo Mitsui Banking Corp. also participated.”

Turnberry Associates has developed over $7 billion in commercial and residential projects.

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Dubai: “A City Unlike Any Other in Existence”

A preview of Dubai’s major projects (sick):

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Real Estate Market Recovery Patterns

Matt Woolsey at Forbes comes up with a great analysis on the national real estate market downturn and the recovery patterns that often ensue. It references three recovery pattern types:

  1. V-shaped: “where a market experiences a sharp, fast decline but comes out strong once it hits bottom”
  2. U-shaped: “where prices decline gradually and recover slowly”
  3. L-shaped: ” a hard, fast fall with paltry price bounce back following the market trough.”

A strong real estate market is cited as having a 1.5% vacancy rate. The current national average is 2.8%. In Miami and Tampa the figure is around 3.5%–Atlanta and Denver are in the same boat. Tampa is mentioned as following the V-shaped recovery pattern.

High investor shares are cited as the main factor in deepening the price dive. Tampa, according to the report, has a 25% investor share; Phoenix is mentioned having a 26.1% investor share. Although the article does not reference Miami’s investor share. recently, real estate analyst Jack McCabe was quoted in the NY Times as saying that up to 70% of the condos purchased during the boom in the Miami area are investor-owned.

Is Jack McCabe’s number too high? What source substantiates it? What recovery pattern could Miami follow? Is it too early to tell? Is the recent report regarding Jade a microcosm of the larger picture? There are many questions but the article presents an interesting method for looking at the problem.

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Miami’s Appetizing Condo Hotels

Image: Atrio Restaurant at the 25th floor of the Conrad on Brickell Avenue

This article from the NY Post touches upon Celebrity chefs in Miami’s condo-hotels. The article cites several well know celebrity chefs and their ventures in Miami. Il Mulino, top rated NYC Italian restaurant according to Zagat, is housed in the Acqualina in Sunny Isles. The recently built Regent South Beach is home to “celebrity chef Govind Armstong’s Table 8” (from L.A.). Tribeca’s own, David Bouley has Evolution in the South Beach Ritz Carlton Resort. Well known NYC restaurateur Daniel Boulud’s latest restaurant in the Met 2 complex is highlighted.

Not all, but some of what the article left out:

New Yorkers, as usual, have their sights and wallets set on Miami. Although this is nothing new, the boom has amplified their influence and interest. This amplification theory will have to be explored further through a development standpoint later.

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