Keyes Luxury Report: South Florida Cash Transactions Decline, High-End Condominium Prices Surge in Q1 2019

Kevin M. Leonard

MIAMI, FL and PALM BEACH, FL -- South Florida’s luxury condominium sector enjoyed a substantial rise in average sale prices, while high-end single-family sale prices posted a slight decline in the first quarter of 2019, according to The Keyes Company’s quarterly South Florida Luxury Market Report.

All-cash condo and single-family sales dropped significantly as lenders become less stringent and interest rates remain low.

 The average price for condo sales of $1 million or more in Miami-Dade, Broward, Palm Beach and Martin counties was $2.84 million in the first quarter of 2019, a year-over-year increase of 18.1 percent.

Palm Beach County experienced the highest year-over-year jump in average condo sales price, with a 42.2 percent gain to $2.65 million. 

Mike Pappas

Miami-Dade County had a 12.4 percent average condo sales price increase to $2.68 million, while Broward County’s average rose 9.9 percent to $1.66 million.

 In the single-family sector, South Florida’s average sales price inched down by 1.3 percent year-over-year to about $2.5 million. Palm Beach County had the largest average sales price decline, with a year-over-year drop of 9.5 percent to $2.73 million.

Miami-Dade County went in the other direction, however, as the average sales price climbed 18.6 percent to $2.75 million.

 “The major gains in luxury condo prices across the region reflect the intense demand for that product from local, out-of-town and international buyers,” said Keyes Vice President of Luxury Kevin Leonard.

 “On the single-family side, we began seeing the slight pricing decline in the third quarter of 2018 and are not surprised to see it continue. But Miami-Dade County’s impressive pricing increase shows the trend is specific to Broward and Palm Beach counties.”

All-cash transactions are down in both the condo and single-family sectors. South Florida posted a 14.3 percent year-over-year decline in all-cash condo sales to 258, while all-cash single-family sales dropped 19.5 percent to 367.

Miami-Dade County had the largest decline in all-cash sales for both sectors, with a 24.1 percent decrease to 126 on the condo side and a 36.8 percent drop to 74 single-family all-cash sales.

 “The reality is, most luxury buyers – especially domestic U.S. buyers – are going to finance their purchases if the rates and terms are favorable,” said Keyes President and CEO Mike Pappas.

“If the Federal Reserve follows through on its announcement to keep interest rates unchanged, we will see all-cash transactions drop further over the course of the year.”

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HFF closes sale and secures financing for high-rise apartment building in downtown Philadelphia

The Commonwealth Apartments, 1201 Chestnut Street
Midtown Village, Center City, Philadelphia, PA

PHILADELPHIA, PA –– Holliday Fenoglio Fowler, L.P. (HFF) announces it has closed the sale and secured financing for The Commonwealth, a 98-unit, high-rise apartment building in Philadelphia, Pennsylvania.

Mark Thomson

HFF marketed the properties exclusively on behalf of the seller, global real estate investment manager Invesco Real Estate, and procured the buyer, a joint venture partnership between The Carlyle Group and Alterra Property Group. 

In addition, HFF worked on behalf of the new owner to arrange acquisition financing.

The Commonwealth was originally constructed in 1906 and underwent a full restoration in 2012 that was completed by Alterra Property Group. 

Situated at 1201 Chestnut Street, the property’s Midtown Village location has earned it a Walk Score® of 99 and offers residents direct access to all of Center City, Philadelphia’s employment, lifestyle and transportation amenities. 

The 15-story building consists of 98 residential units averaging 711 square feet and 8,247 square feet of ground-floor retail.  Units feature stainless steel appliances, granite countertops, European maple cabinetry, wood plank flooring and full-size washers and dryers. 

Carl Fiebig

 The residential component is 99 percent occupied and the retail component is fully leased to 7-Eleven and Mitchell & Ness Nostalgia Co., which is the American sports clothing company’s only brick and mortar location.

The HFF investment advisory team representing the seller was led by senior managing director Mark Thomson, senior director Carl Fiebig and director Francis Coyne.

HFF’s debt placement team representing the new owner was led by managing director Ryan Ade.

“We have seen a significant uptick in interest for core-plus properties in the Philadelphia region,” Thomson said.  “This was a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City, Philadelphia. 

Francis Coyne

"With a lack of velocity of core-plus deals of this size in the area, the property drew significant interest from local, regional and national investors.  We conducted 31 tours of the property, which resulted in offers from 18 different companies.”

About Invesco Real Estate

Invesco Real Estate is a global leader in the real estate investment management business with $65.6 billion in real estate assets under management, 496 employees and 21 regional offices across the U.S., Europe and Asia (as of 12/31/18). 

Invesco Real Estate has been actively investing in core, value-add and opportunistic real estate strategies since 1992.  Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ. 

Ryan Ade

About Alterra Property Group

Alterra Property Group, LLC (“Alterra”) is a diversified real estate investment, development and management company based in Philadelphia, Pennsylvania.  

The company employs a highly qualified team of professionals that handle all aspects of real estate development, investment and management, including but not limited to: acquisition, entitlement, project/construction management, asset management, property management, accounting and underwriting.  

The principals of Alterra have worked with and can provide references from numerous institutional private equity firms, such as The Blackstone Group, Federal Capital Partners, BlackRock, Normandy Realty Partners, Carlyle Group and Patron Capital Partners.

Alterra has developed hundreds of upscale apartments in Philadelphia and currently manages them under the management brand of APG Living. 

  

CONTACTS:

MARK THOMSON

PA Lic. #RS292417

HFF Senior Managing Director

(484) 532-4200

mthomson@hfflp.com

RYAN ADE

HFF Managing Director

(484) 532-4200

rade@hfflp.com

OLIVIA HENNESSEY

HFF Public Relations Specialist

(713) 852-3403

ohennessey@hfflp.com

www.invesco.com.

www.apgliving.com.

Passco Adds Carey P. Levy as President of Development Company

  

Carey P. Levy

Irvine, CA (April 16, 2019) — Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., announces that Carey P. Levy has rejoined Passco Companies Development as President. He previously served in the same capacity from 2007 to 2013.

“We are extremely pleased to have Carey return as part of the Passco team, where he will play a critical role as we continue to expand our platform and initiate an increasing number of development projects,” says Larry Sullivan, Passco Companies President.

“Carey’s experience, leadership, and significant industry relationships will enhance the growth of Passco Companies Development.”

In his role, Levy will be responsible for overseeing development and value-add repositioning acquisitions, entitlements, construction, and financing on a national scale, across multiple real estate asset types.

Larry Sullivan

 “During his previous tenure with our firm, Carey’s guidance was a key component to Passco’s ability to strategically navigate the recession, and we look forward to benefiting from his expertise as we grow,” continues Sullivan.

Levy has more than 30 years of experience in the commercial real estate investment and development industry. In addition to his previous work with Passco, he has been responsible for the management of real estate portfolios totaling upwards of $2 billion in value.

 He has an extensive background in the seniors housing sector, spearheading the growth of a seniors housing portfolio to exceed 40 properties.

“I look forward to furthering Passco’s business plan with the ground-up development or repositioning of value-added properties within various real estate sectors, including active senior and independent living opportunities,” says Levy.

Levy will be based out of Passco’s Irvine, California corporate headquarters. He can be contacted at clevy@passco.com or (949) 442-1000.

       

CONTACTS:

Micaela Fehrenbach / Elisabeth Manville

Brower Group

(949) 438-6262

mfehrenbach@brower-group.com

NAI Realvest Negotiates $1.5 Million Sale of Thornton Park Office Building in Orlando, FL

Jeff Bloom

ORLANDO, FL -- NAI Realvest negotiated the sale of a downtown Orlando office building with 9,918 useable square feet at 701 E. South St. off Summerlin Avenue in Thornton Park for $1,525,000.00.

Jeff Bloom, CCIM, vice president at NAI Realvest negotiated the transaction representing the seller Orlando-based 701 South, LLC whose principals include Robert L. Harding and Laura C. Harding.

Black Business Investment Fund, Inc. purchased the two-story building constructed in 1964.    The buyer plans to occupy a vacant suite on the first floor and will continue a long-term lease with Orange County who occupies the remainder of the building.  

Kimberly Robinson of Dover International Realty represented the buyer, who provides loan capital and business development training to minority and underserved businesses and communities.

Kimberly Robinson

About NAI Realvest:  

NAI Realvest, serving all of Central Florida, is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide.

NAI Global is an international commercial real estate network with over 400 offices spanning the globe.  Since 1978, clients have built businesses on the power of NAI Global’s expanding network.  

Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services.

 To learn more, visit www.NAIRealvest.com.

       

CONTACTS:

Jeff Bloom, CCIM, Vice President, NAI Realvest, 
407-857-9989 JBloom@realvest.com

Patrick Mahoney, President / CEO, NAI Realvest,
 407-875-9989 PMahoney@realvest.com

Beth Payan, Larry Vershel Communications,
 407-644-4142
 lvershelco@aol.com
beth@larryvershel.com