Posts Tagged : Warren Weiser

CREC, Lubert Adler sell Coral Springs shopping center for $48M to Zurich Insurance asset manager

CREC, Lubert Adler sell Coral Springs shopping center for $48M to Zurich Insurance asset manager

Sellers raised occupancy of Royal University Plaza from 45% to 98%

By Katherine Kallergis

June 2, 2017

Royal University Plaza, Warren Weiser, Andrew Remick and Alan Esquenazi

A joint venture between CREC and Lubert Adler Real Estate Funds just sold a shopping center in Coral Springs for $48 million, nearly double what the venture paid in 2015.

Property records show CPAC Royal University sold the Royal University Plaza at 2556 North University Drive to New York-based Zurich Alternative Asset Management, a subsidiary of Zurich Insurance Group.

The CREC-Lubert Adler joint venture bought the 10-acre property in February 2015 for $26 million with plans to renovate and lease the then 100,000-square-foot shopping center. It was 45 percent leased when it last sold, and is now 98 percent leased.

CREC and Lubert Adler also expanded Royal University Plaza for Orchard Supply, which has about 37,000 square feet, and brought in Total Wine & More to lease about 25,000 square feet.

The 115,000-square-foot center just sold for more than $415 per square foot. Other tenants include Pet Supermarket, Jimmy John’s and Brooklyn Water Bagel Co.

Asking rents are in the low $30s per square foot. “We pushed rents, but we really did was push occupancy and now we have a waiting list of tenants,” Warren Weiser, CREC chairman and partner, said. Weiser, CREC partner Alan Esquenazi and vice president Andrew Remick said the commercial real estate firm is looking to acquire more value-add properties like Royal University Plaza.

While the deal was off-market, Weiser said the firms were eventually planning on selling the shopping center.

Esquenazi and Sabrina Meerbott, director of retail leasing, handled leasing. Renovations included painting, landscaping, new lighting, adding an access turn lane and other facelift-type upgrades.

The $48 million sale is the second largest for a shopping center in Broward County so far this year, a spokesperson for CREC said. In February, InvenTrust Properties Corp. paid about $163 million for two shopping centers in Pembroke Pines, Paraiso Parc and Westfork Plaza, both on Pines Boulevard.

The asset manager arm of Zurich Insurance Group targets commercial real estate markets like Boston, New York, Los Angeles and Miami, according to its website. The asset manager’s real estate portfolio includes more than 20 million square feet of space in more than 200 properties.

CREC Arranges $27.4 Million Sale of Turtle Crossing in Metro Fort Lauderdale

Coral Springs, Fla. — CREC has arranged the $27.4 million sale of Turtle Crossing, a 99,174-square-foot shopping center located roughly 20 miles northwest of Fort Lauderdale in Coral Springs.

The property is shadow-anchored by a 174,000-square-foot Super Target, and home to tenants including Enterprise Rent-A-Car, Panda Express, AutoZone, Panera Bread, Buffalo Wild Wings, Vision Works and Chipotle Mexican Grill.

Warren Weiser and Harry Blyden of CREC represented the seller, Turtle Run Venture LLC, in the transaction. There was no broker representation for the buyer, Turtle Crossing Coral Springs LLC, a joint venture between Ross Realty Investments and SunCap Real Estate Investments.

 

 

CPAC & Lubert Adler Complete Repositioning of Royal University Plaza Shopping Center in Coral Springs

Alan Esquenazi and Warren Weiser

37,000-square-foot Orchard Supply store set to open in November

Eighteen months after acquiring Royal University Plaza in Coral Springs, Florida, owner CPAC Royal University, LLC, a joint venture between principals of CREC and Lubert Adler, has finalized a dramatic repositioning that more than doubled occupancy, added 15,000 square feet of rentable retail space, and lured high-profile anchors including Orchard Supply and Total Wine & More to the neighborhood shopping center.

Located at 2556 North University Drive, Royal University Plaza was an underperforming asset when CPAC and Lubert Adler purchased the property for $26 million in February 2015. At the time, the center was 45 percent occupied and in need of significant capital improvements that would help attract major national brands to the center situated at the high-volume intersection of University Drive and Royal Palm Boulevard.

Central to the JV ownership group’s turnaround was enlisting CREC to undertake an aggressive retail leasing and marketing campaign and oversee a series of capital improvements, including a 15,000-square-foot expansion that opened the door to a new 37,000-square-foot Orchard Supply store set to open in November – one of the brand’s first locations in South Florida.

“As we began evaluating the neighborhood following last year’s acquisition, we quickly identified a lack of available boxes capable of attracting junior anchors,” says Alan Esquenazi, a partner at CREC. “By reconfiguring storefronts and adding additional space, we transformed Royal University Plaza into a top-performing asset in the Coral Springs neighborhood within a year-and-a-half.”

Today, the 115,000-square-foot Royal University Plaza is 94 percent leased and home to a tenant roster that includes Total Wine & More, Pet Supermarket, Jimmy John’s, Third Federal Bank, Hertz Rental Cars, Brooklyn Water Bagel Co., and AAA Auto Club.

“Royal University Plaza is a classic example of a retail asset that benefitted from a creative approach to leasing, marketing and construction management,” explains CPAC Principal Warren Weiser. “We identified an underperforming property in a submarket that was home to strong demographics and CREC executed a strategy that maximized asset value and elevated the center’s appeal among some of the country’s hottest retail brands.”

Does Sumitomo’s $220M Grab Point To More Big Office Buys?

Does Sumitomo’s $220M Grab Point To More Big Office Buys?

JUNE 9, 2016 | BY JENNIFER LECLAIRE

MIAMI—“The fact that the Miami Tower’s price doubled in less than decade is proof that the investor appetite for existing office space is driving property values to record levels.”

The sale price on the 631,672-square-foot office asset: $220 million.

MIAMI—The Japanese corporation Sumitomo recently paid $220 million for the iconic, light-changing Miami Tower in Downtown Miami. Call it the latest sign that the investor appetite for Miami’s commercial real estate market is still intensifying.

Domestic and international investor interest continues to drive property values to record levels. For example, the Miami Tower was last sold for $105 million five years ago. The sale price doubled in about five years.

“The fact that the Miami Tower’s price doubled in less than decade is proof that the investor appetite for existing office space is driving property values to record levels,” Ezra Katz, CEO of Aztec Group, tells GlobeSt.com. “As Miami’s booming condo market outbids office developers for available land, the amount of inventory is not keeping up with the rising demand for office space. We expect that office rents and sale prices will continue to rise as supply becomes more constrained and investor demand increases.”

The past year has seen a series of similar office deals, including the $140 million sale of 777 Brickell, the $112 million sale of 800 Brickell, and the $142 million sale of Espirito Santo Plaza, all trophy assets in Miami’s financial district.

Miami’s booming condo market has also impacted the ability of institutional investors and office developers to compete for land, since condo developers will outbid them every time. As a result, Miami’s office market is seeing steady rising rental rates and increased demand, but little new office inventory to meet the rising demand.

These market fundamentals point to the reasons why Sumitomo would pay top dollar for an office asset like Miami Tower, and all signs point to other office properties trading hands as deep-pocketed investors seek top-performing assets to add to their portfolios as market conditions continue to strengthen favoring landlords.

“Sumitomo’s pickup of Miami Tower is another example of an institutional buyer targeting a performing asset amidst high barriers to new office development across South Florida,” Warren Weiser, chairman of CREC, tells GlobeSt.com. “Building a stand-alone office tower from the ground-up in today’s market has become cost prohibitive just as demand for Miami real estatesoars. This is putting existing buildings benefitting from quality locations and strong income in-place at a premium.”

Coral Gables Sees Mega Deal; Largest of 2016

Coral Gables Sees Mega Deal; Largest Of 2016

MIAMI—The seller more than doubled its money in 11 years.

2121 Ponce includes a five-story, 586-space parking garage and street-level retail space.

MIAMI—It’s the largest commercial real estate transaction in Coral Gables, FL so far this year. A joint venture between Greenstreet Partners just sold the 2121 Ponce office building to a member company of Zurich North America for $57.5 million. Greenstreet acquired the building for 27.1 million in 2005.

Zurich Alternative Asset Management, Zurich’s alternative investment adviser, worked with the buyer on the deal. The sale of the 164,848 square-foot office building marks the latest sign of mounting demand for high-performing South Florida office properties among institutional investors around the world. CREC and CBRE brokered the deal.

“Coral Gables has long been one of South Florida’s most desirable submarkets, and that position will only grow as office users prioritize locations that are walkable and in close proximity to public transit options,” CREC principal Steven Hurwitz, who manages leasing at the building in tandem with CREC’s Doug Okun, tells GlobeSt.com. “2121 Ponce has emerged as one of the neighborhood’s best addresses over the past decade, particularly among companies in the market for space priced slightly below the rates at newer buildings nearby.”

CREC and Greenstreet acquired 2121 Ponce in 2015. Since then, the office asset has seen significant renovations of all common areas. A leasing and marketing program repositioned the building as a boutique, service-oriented option for Coral Gables office users. CREC has worked as the exclusive leasing agent and will continue managing the office asset for the new owner. The property is 95% occupied.

CREC’s Warren Weiser, Harry Blyden, and Andrew Remick co-brokered the sale of 2121 Ponce alongside CBRE’s Christian Lee, Jose Lobon, and Andrew Chilgren. Roy Rosenbaum, director of acquisitions, and Sean Bannon, managing director and head of US real estate, led the way for Zurich.

“Our experience at 2121 Ponce is an example of how a building’s value can be maximized by bringing a clear vision to life through creative leasing, construction, marketing and property management strategies,” says CREC chairman Weiser. “The investments we’ve made over the past decade have transformed the building into a core institutional-grade asset, leading to this sale. We expect similar acquisition activity in the coming months given high barriers to new development across South Florida.”

Located in the Coral Gables business district one block north of the “main and main” intersection of Ponce de Leon Boulevard and Alhambra Circle, 2121 Ponce includes a five-story, 586-space parking garage and street-level retail space. Goldstein Schechter, Fox Latin America, Valley National Bank, the Consulate of Barbados and CREC call the office building home. POC restaurant is located on the building’s ground floor.

The office property’s setting in Coral Gables’ walkable downtown is also appealing to tenants as the $21 million makeover of two of the neighborhood’s main retail thoroughfares, Miracle Mile and Giralda Avenue, gets underway. The submarket is home to more than 150 multinational corporations, more than a dozen luxury hotels, a free public trolley system, and boutiques and restaurants. Eighty-five new eateries opening in the last five years. Meanwhile, more than 1,500 residential units are expected to come online over the next three years.

Swiss insurer makes landfall in Coral Gables with $58M investment pay

Swiss insurer makes landfall in Coral Gables with $58M investment play

Sellers more than doubled their money after 10 years of holding the property

June 06, 2016 03:45PM
By Sean Stewart-Muniz

2121 Ponce De Leon Boulevard

It looks like there’s still plenty of foreign investment to go around for Miami’s office market.

Zurich North America, an affiliate of a major Swiss insurance company, just closed on its $57.5 million purchase of the 2121 Ponce office tower in Coral Gables.

The deal was announced Monday by real estate companies Greenstreet Partners and CREC, which formed a joint-venture back in 2005 to buy the 13-story office building for $27.1 million.

Through the years, Greenstreet and CREC started renovating the common areas for 2121 Ponce, which was built in 1970. The companies brought the building up to 95 percent occupancy with an eclectic mix of tenants like the Consulate General of Barbados, Fox Latin America and Valley National Bank. CREC itself even took space in the building, and plans to stay even under the new ownership.

After roughly a decade of holding the property, Warren Weiser, chairman of CREC, told The Real Deal that the partners decided it was a good time to sell amidst a tightening office market.

“The asset performed pretty darn well even through the recession,” Weiser said. “It’s a very good market for both buyers and sellers right now.”

Weiser said the partners had an established relationship with Zurich, which keeps a U.S. office in New York. After touching base in February, the two parties “shook hands” in March and closed the deal last week.

“[Zurich] knows this market,” Weiser told TRD. “They made a very smart purchase because you can’t reproduce this building for the price they paid.”

The most recent sale of 2121 Ponce, which measures 164,848 square feet, breaks down to nearly $349 per foot. That’s more than double the $164 per foot that CRED and Greenstreet paid in 2005.

One explanation for that price explosion can be found in the latest market numbers from brokerage JLL. Although net absorption in Coral Gables was down by a fraction of a percentage point during the first quarter, there was no new office space under construction in the city at that time. Giralda Place has since broken ground with 58,000 square feet of offices. Meanwhile, office vacancies stood at 10.6 percent and rents were asking an average of $38.18 per square foot annually, according to JLL.

The deal was brokered by CREC’s Weiser, Harry Blyden and Andrew Remick, along with CBRE’s Christian Lee, Jose Lobon and Andrew Chilgren. On Zurich’s side, the firm was advised by its “alternative investment management” division. The Swiss insurance carrier has roughly 55,000 employees worldwide, and its North America division specializes in property-casualty coverage, according to its website.

It’s not unusual for insurance giants like Zurich to diversify into real estate: among U.S. firms, Prudential Financial boasts a thriving real estate arm that’s also bought into the Coral Gables office market.