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Disaster response firm owners sell Las Olas Isles mansion at a slight loss

Michael and Andrea Kallberg & 400 Royal Plaza Drive, Fort Lauderdale (Credit: Google Maps)

The owners of a Fort Lauderdale-based disaster response company sold their waterfront mansion in the Las Olas Isles neighborhood for $6.2 million.

Property records show Kallberg Industries owners Michael and Andrea Kallberg sold the home at 400 Royal Plaza Drive in Fort Lauderdale to GFM II LLC, a North Carolina company.

The Kallbergs paid $6.3 million for the house in 2018, which means they just sold it for $100,000 less.

Peter Barkin with Compass represented the Kallberg family and Tim Elmes, also with Compass, represented the buyer. The property hit the market this year for $7 million, and the price was reduced to $6.7 million in September.

The 8,108-square-foot home, built in 1994, includes five bedrooms, six-and-a-half bathrooms, a pool and 275 feet of water frontage.

Earlier this year, Greek foods CEO Peter Parthenis Jr. paid nearly $9 million for a Las Olas mansion in June. Other Fort Lauderdale closings include retired baseball player Mike Napoli’s sale of his mansion in the Seven Isles neighborhood for $7.3 million, and the $7.5 million sale of a waterfront house in the Harbor Beach neighborhood for $7.5 million.

Contact Jordan Pandy

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South Florida office landlords are offering sweeteners to lure tenants amid the pandemic

Javier Lopez and 2525 Ponce de Leon Boulevard, Coral Gables (Credit: Google Maps)

As the date approached to renew their office lease in Coral Gables, Javier Lopez and his partners at the Kozyak Tropin & Throckmorton law firm contemplated negotiating tactics.

To improve the office ambiance and make employees feel welcome when they return from remote working, Lopez envisioned new furniture, more offices rather than cubicles, a small gym with showers for employees, and studio space outfitted for Zoom calls with clients and judges.

With help from the landlord, that vision is becoming reality.

“Not many businesses are willing and able to sign an 11-year, 22,000-square-foot lease right now,” said Lopez, 39, who took over earlier this year as the firm’s youngest managing partner. “And we are very optimistic for our firm’s future.”

In South Florida, where office rents have not been squeezed as much as in other areas amid Covid-19, incentives are abounding. Brokers cite concessions that were unthinkable pre-pandemic, such as one-to-two-year leases, more funding to improve tenant spaces and more generous rent abatements.

An influx of companies from other states exploring office space, coupled with the continued lack of available space, emboldens landlords to keep rents consistent despite the current economic landscape, brokers say.

Kevin Gonzalez

Kevin Gonzalez, a vice president at CBRE’s Miami office, said his team has seen prospective office tenants asking for 510,000 square feet during the pandemic, roughly the same amount of square footage signed in total in the last three years for new-to-market deals.

At the same time, brokers say landlords are wary of reducing their asking rates, for fear they won’t be able to get back to record highs once the office market regains its strength.

Jonathan Kingsley

“It’s a lot easier to get back a 5 [percent] to 10 percent decrease, than a 60 percent decrease,” said Jonathan Kingsley, executive managing director of office services at Colliers International’s Fort Lauderdale office.

South Florida’s third quarter office vacancy rates were generally higher than in New York and Los Angeles, due in part to large deliveries of new space in Miami and West Palm Beach, according to a JLL report. Miami’s vacancy rate was 17.3 percent, Fort Lauderdale’s was 13.9 percent and West Palm Beach’s was 15.6 percent. That compares to 9.6 percent in New York and 15 percent in Los Angeles.

Still, in the third quarter, concessions and other negotiating tactics allowed average office asking rents in South Florida to hit new highs, despite the record office vacancy rates across the tri-county area, according to a Colliers International report.

Miami-Dade County had the region’s highest average asking rate in the quarter, at $41.68 per square foot. Broward had the lowest average asking rent, at $33.59 per square foot.

Incentives are helping, brokers say.

Ken Morris

Before the pandemic, leases under three years in South Florida were rare. If a tenant negotiated an allowance to improve the office, a landlord might have allotted $70 a square foot in a class A building — provided the tenant signed a 10-year lease to allow time for the landlord to recoup that expense, said Ken Morris, managing principal of Sunrise-based Morris Southeast Group.

And while a landlord may have allowed a half-month of free rent for every year on a lease signed before the pandemic, Morris has seen some landlords revert to one month for every year on the lease, something he hasn’t seen since the Great Recession.

“It’s still anybody’s guess how long this is going to last,” he said.

According to JLL’s third quarter report, 15 of the largest metro areas in the country saw average office rents drop by more than 1 percent from the second quarter to the third quarter. Only six metro areas saw office rents rise more than 1 percent during that time.

Miami was among the 30-plus metro areas that saw office rents stay relatively level, with a 0.6 percent increase in average rents. Fort Lauderdale ranked No. 3 in the country for highest rate increase, at 2 percent, reaching $36.31 per square foot, according to JLL. Nashville ranked first with 2.7 percent growth, and St. Louis ranked No. 2 with a 2.1 percent increase.

Meanwhile, subleasing has grown nationwide. Kingsley of Colliers said his team handled three subleases last year, and has had 12 this year due to Covid-19. In Fort Lauderdale, the difference between subleasing rents and direct asking rents can be as much as $11.75 a square foot, one of the highest differences in the country, according to the JLL report.

The current climate is forcing landlords to think creatively about what to do with vacated space, Kingsley added, citing a client that may fill about 20,000 square feet of vacated office space with a co-working brand. Another might add a small clinic on the ground floor for rapid Covid-19 testing to help make workers feel more comfortable about returning to their offices.

Tenants are also expressing more interest in low- to mid-rise buildings in the suburbs where they won’t have to ride an elevator or maneuver a crowded lobby area, and spend less time commuting, Kingsley said.

Still, South Florida’s office market’s future remains uncertain, Morris said. Even if employees are itching to leave their homes and return to the cubicle, companies should consider the savings of a reduced office footprint. One of his clients went from 13,000 square feet to 10,000 square feet on a $30 per square foot lease for seven years, saving more than $500,000 in overhead.

“When it comes to a lease deal, it’s just math,” he said.

Kozyak Tropin, the law firm that signed a lease renewal amid Covid-19, closed its offices for three months at the start of the pandemic. Now, about a third of the firm’s 60 employees — 30 staffers, 30 lawyers — are voluntarily coming into the office, said Lopez, who has been with the firm for nine years. The law firm has occupied its offices in 2525 Ponce de Leon for about 20 years, he said.

While law firms are sometimes seen as behind the times, with an emphasis on faxes and in-person meetings, improved digital technologies have reduced the size of office libraries. The adoption of teleconferencing is now continuing to reshape office space.

Lopez expects permitting for the new office to last three months with buildout taking at least another six months. He may even consider employee requests for an in-office daycare — useful for the four Kozyak employees expecting children since the start of the pandemic.

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Publix in Fort Lauderdale Beach moves forward

Publix CEO Todd Jones and a rendering of the project

A Publix supermarket planned for Fort Lauderdale’s Lauderdale Beach neighborhood passed a rezoning hearing last week, keeping it on track to open at the end of 2022.

Fort Lauderdale commissioners unanimously passed a rezoning ordinance for the project at 2985 North Ocean Boulevard. The rezoning turns half an acre of land from “Residential Multifamily High Rise/High Density” to “Community Business District.”

The 29,000-square-foot Publix will have rooftop parking. Other supermarkets near the Publix site include a Winn-Dixie to the north and another Publix across the bridge.

Heidi Davis Knapik, a shareholder with the Gunster law firm representing the applicants, said the commission will hold a second reading of the rezoning later this month before the permitting process starts.

The landowners are companies associated with Dr. Paul G. Preste, an internist at Preste Medical in Fort Lauderdale who ran for Boca Raton city council in 2018; the family of the Karam Brothers development and architectural firm; and Tolga Adak, general manager of Florida Quality Truss.

The Karam family bought its piece of the development site in 2014 for $600,000, according to records. The family sold some of the site to Adak’s company in a 2016 deal for $750,000.

Randy Holihan of Brandon Partners said the Publix project should be completed by the end of 2022, but he did not have a groundbreaking date for the commissioners.

Many locals support the project. Central Beach Alliance President William Brown told the commissioners a July vote resulted in 135 votes of approval, with seven dissenters concerned about the impact on traffic.

Lakeland-based Publix has been expanding in South Florida. In October, the Hollywood Planning & Development Board approved plans and modifications for a 30,000-square-foot supermarket with a boat dock at 3100 South Ocean Drive.

In April, The Publix-anchored Village Square Shopping Center in Pembroke Pines scored a $14M refinancing. And in April, Publix Super Markets paid $23 million for the site of its new store in Coral Gables.

Contact Wade Millward

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Oak Street Real Estate Capital buys Oakland Park Walgreens for $7M

Oak Street Jim Hennessey and Marc Zahr with 3100 North Andrews Avenue, Oakland Park

The flurry of Walgreens trades continues with an Oakland Park store selling for $7.3 million.

Walgreen Co. sold the store at 3100 North Andrews Avenue. The buyer is a company affiliated with Chicago-based private equity firm Oak Street Real Estate Capital.

In June, Oak Street sold a Delray Beach Walgreens store for $8.1 million, less than a year after the firm bought it. Oak Street Real Estate Capital is led by Marc Zahr and co-founder Jim Hennessy.

Walgreen Co. bought the Oakland Park land in 2005 for $644,000, according to records. The store was built in 2008.

Walgreens also signed a lease for the Oakland Park store for 17 years, with extension available for 12 consecutive periods for five years, according to records.

Some local sales of Walgreens pre-date the pandemic. In February, Walgreen Co. sold a store in Boca Raton to a Los Angeles-based investment group for $9.15 million.

In April, Walgreen Co. sold one of its stores in Lauderdale Lakes for $7 million to SunTrust Equity Funding, and an affiliate of Harris Realty & Associates listed a Weston Walgreens for $11 million.

SunTrust Equity Funding bought another Walgreens, this one in North Palm Beach, for $6.9 million in May.

Contact Wade Millward

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Tropical Storm Eta floods South Florida: Photos

From left to right: North Bay Road in Miami Beach, in front of Marcelo Claure’s property that he plans to tear down; the Biscayne Park neighborhood in Miami

Tropical storm Eta brought heavy rain and winds to South Florida Sunday and Monday, flooding parts of Miami-Dade, Broward and Palm Beach counties.

Major roadways, including Biscayne Boulevard in downtown Miami and the MacArthur Causeway to Miami Beach, were inundated as of Monday morning, and tens of thousands of homes experienced power outages.

Western Broward County

Storm totals reached 18 inches of rain in some areas of South Florida, and wind gusts hit 63 miles per hour in the Florida Keys, according to the National Hurricane Center. Schools, universities and many businesses in South Florida announced they would be closed on Monday.

Here’s a look at some of the flooding as of Monday morning:

Good Morning Edgewater, please be careful with floods between Biscayne Blvd. and N.Bayshore Dr. 15 st. To 23 st. #SafetyFirst #StayHome @MajorFrankF @MoralesMiamiPD @Jcolina67 @CityofMiami @BNAedgewater @kenrussellmiami @miamiparks @NWS pic.twitter.com/dC0ip3t2wC

— Freddie Cruz (@FreddieCruz16) November 9, 2020

Fort Lauderdale is feeling the flooding today. pic.twitter.com/2G0epW90Zz

— Bella (@GoofyKerr) November 8, 2020

Trying to leave Miami Beach and go back to the boat in Palm Beach. Lots of flooding from TS Eta #miami #eta pic.twitter.com/kBl4yfaQQn

—

Sarah Monahan (@shrimptank) November 9, 2020

The MacArthur Causeway

View this post on Instagram

 Floods in full effect #ONLYinDADE @shahaf_ribis

A post shared by ONLY in DADE (@onlyindade) on Nov 9, 2020 at 5:06am PST

Biscayne Boulevard in Miami

Potholes: Storm has created potholes through out parts of the City. Be careful where you drive. pic.twitter.com/DqzWIkeTke

— City of Fort Lauderdale (@FTLCityNews) November 9, 2020

Fort Lauderdale

Eta marks the 28th named storm this hurricane season, which officially ends on Nov. 30. It made landfall in the Florida Keys late Sunday, after killing more than 100 people in Central America.

Read more

Fire and rain and real estate: Investors take closer look at climate risk

Key Biscayne voters approve $100M bond tied to climate change

Climate change is messing with 30-year mortgages

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Canadian developers launch sales of oceanfront townhouse project in Pompano Beach

Rendering of The Ocean Six Terraces (Credit: Rex Nichols Architects)

GT Homes USA, a joint venture between Canadian builders Greenpark and Treasure Hill, launched sales of an oceanfront townhouse project in Pompano Beach, as developers increasingly target the beachfront town.

The six-unit project, called The Ocean Six Terraces, is under construction and is expected to be delivered by December 2021, said Nicholas Fidei, president of Treasure Hill. Douglas Elliman’s Stefano Fontana Group is handling sales and marketing of the development at 700 Briny Avenue.

Property records show Carlotree L.P. paid $4.9 million for the Pompano Beach lot in 2018.

Two units have been presold, and the developer has put two additional units on the market, Fidei said. It will release the final two in about a month. Prices start at $4.3 million.

Stefano Fontana and Patrizia Infante are leading sales of the project. Fontana said that local buyers as well as prospective buyers from the Northeast have shown interest in purchasing townhouses.

Rex Nichols Architects is designing The Ocean Six Terraces, which range from three to four bedrooms and from 3,389 square feet to 4,048 square feet. They include rooftop terraces, sunset and sunrise terraces, pools, and customizable finishes, Fontana said. Units will come with Miele appliances and Kohler fixtures.

Fidei said the development will have homeowners association fees at under $1,000 a month, or about 30 cents per square foot.

Pompano Beach is seeing more waterfront residential development. Related Group recently launched sales of Solemar, a luxury condo building planned for 1116 North Ocean Boulevard in Pompano Beach. The 105-unit, 20-story oceanfront building would mark the second large new development to be built on the beach in Pompano since Sabbia Beach was completed in 2018.

Fortune International Group also recently acquired a site on the beach. The Miami-based development firm, led by Edgardo Defortuna, paid $27.5 million for the 4.6-acre site at 1380 South Ocean Boulevard, with plans for two high-end condo towers.

Fidei said his company is looking to buy land in other parts of South Florida, such as Boca Raton and near Delray Beach. It also owns a property in Fort Lauderdale.

Contact Katherine Kallergis

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Integra, partner move forward with $58M senior housing project in Allapattah

1396 Northwest 36th Street with Integra’s Paulo Tavares de Melo and EHDOC’s Melanie Ribeiro (Photos via Getty; LinkedIn)

A partnership between a private equity group and a nonprofit broke ground last week on a 271-unit affordable senior housing project in Miami’s Allapattah neighborhood.

Integra Investments and Elderly Housing Development & Operations Corp., or EHDOC, plan to invest $58 million to develop the 13-story building at 1396 Northwest 36th Street, according to a press release. They expect to deliver the project in 18 months.

Miami-based Integra is a private equity and real estate developer, led by Paulo Tavares de Melo. EHDOC is a national nonprofit organization that develops and manages affordable housing for seniors. Based in Fort Lauderdale, it is led by Melanie Ribeiro.

A company tied to Integra bought the land in 2017 for $3.8 million, according to records.

The development, called Mosaico, will sit on 1.2 acres. It was financed with 4 percent low income housing tax credits and a $45.5 million in tax exempt bonds issued by the Housing Finance Authority of Miami-Dade County. The project will have a HUD project-based voucher subsidy administered by Miami-Dade County Public Housing & Community Development, according to the release.

Boston Capital provided the LIHTC equity capital and R4 Capital Funding provided the construction and permanent financing.

The community will include 179 one-bedroom units, 92 studios and four townhomes. Amenities will include a fitness center, library, computer center and rooftop community garden. Mosaico was designed by CC Hodgson Architectural Group, which specializes in elderly housing.

Integra last month secured approval from Monroe County for a 280-unit workforce housing development on Stock Island near Key West. In July, Integra Investments and two partners purchased an 8.2-acre waterfront development site just north of Miami Shores for $15.5 million.

Other multifamily projects slated for Allapattah include a 105-unit building by the Richman Group and three rental projects developed by Lissette Calderon that will have a total of more than 1,000 units.

Contact Wade Millward

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Investors pay $13M for multifamily portfolio in Fort Lauderdale, Wilton Manors

Axel Jordan with 601-607 Northeast 29th Drive and 999 Northeast 23rd Drive (Linkedin, Google Maps)

A South Florida real estate investment firm bought a portfolio of six multifamily properties with 94 units for $13.1 million.

Rental Asset Management, based in Fort Lauderdale and managed by Axel Jordan and German Guzman, spent about $140,000 per apartment for the properties, according to Marcus & Millichap, which brokered the deal.

The portfolio sold at 97 percent of the collective asking price. It was on the market for 17 days and spent three months from listing to closing. Marcus & Millichap’s Joseph P. Thomas, Adam Duncan and Tyler Carbonelli brokered the deal. The buyer plans to renovate and improve the properties, Thomas told The Real Deal.

The portfolio includes two properties in Wilton Manors and four in Fort Lauderdale.

The Wilton Manors properties are the 38-unit Villa Teresa at 601-607 Northeast 29th Drive and the 12-unit Flats at Five Points at 999 Northeast 23rd Drive.

The Fort Lauderdale properties are the 16-unit La Siesta at 1409-1413 North Dixie Highway, the 12-unit Holiday Park Place at 745 Northeast 15th Avenue, the 11-unit Middle River Terrace at 899 1041-1045 Northeast 15th Street, and the five-unit Lake Ridge Flats at 1040 Northeast 10th Avenue,

The sellers are companies affiliated with Maven Real Estate, run by developers Marc and Barry Schwarzberg and Jose Ortega. The sellers paid more than $5 million assembling the portfolio between 2011 and 2015, according to records. The buildings were constructed in the 1960s and 1970s.

In 2019, Ubiica LLC and Maven Real Estate paid $12 million for the AmTrust Bank office building and three adjacent lots in Coral Gables.

In March, Rental Asset Management bought the 26-unit complex known as Oak Landing & Town Square townhomes at 4002-4082 Oak Landing Drive for $228,846 per unit.

Other recent multifamily deals in Fort Lauderdale include the $13.13 million sale in March of a portfolio of apartments in Fort Lauderdale’s Victoria Park and Las Olas neighborhoods, and apartment giant AMLI Residential’s sale in September of a rental complex in Fort Lauderdale’s Flagler Village for $67.5 million.

Contact Wade Millward

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Bell Partners pays $94M for two Boca Raton apartment complexes

Bell Partners CEO Jon Bell and the Bell at Broken Sound complex (Bell Partners, Google Maps)

An apartment investment and management company bought a pair of multifamily complexes in Boca Raton for a combined $94.25 million.

An affiliate of Greensboro, North Carolina-based Bell Partners, led by CEO Jon Bell, bought the complexes at 5500 Broken Sound Boulevard and 950 Northwest Broken Sound Parkway, according to records. Built in 2018, the two complexes are within a mile of each other.

Mainstreet Capital Partners sold the 180-unit community at 5500 Broken Sound Boulevard for $56.5 million, or about $314,000 a unit. Mainstreet, which is based in Fort Lauderdale and led by managing partner Paul Kilgallon, bought the land in 2015 for $8.5 million, records show.

Bluerock Residential Growth REIT sold the 90-unit apartment community at 950 Northwest Broken Sound Boulevard for $37.75 million, or about $419,000 a unit. Bluerock, which is based in New York and led by CEO Ramin Kamfar, bought the land in 2016 for $4 million.

According to an online listing for The Bell at Broken Sound at 5500 Broken Sound Boulevard, the community has a 24-hour gym and a dog park. Units range from studio to three bedrooms. An 800-square-foot, one-bedroom, one bath apartment rents for $1,800 a month. A 1,640-square-foot, three bedroom, three-bath apartment rents for $3,404 a month.

Bell Partners has been active in South Florida’s multifamily market. In 2019, Bell Partners bought an apartment complex in Pompano Beach for $58.5 million, and also paid about $62 million for an apartment complex in Miramar.

In 2018, A partnership between Mainstreet Capital Partners and an investment fund managed by the Davis Companies sold an office building at the Park of Broken Sound at 900 Broken Sound Parkway for $23.7 million.

Other recent multifamily sales in Boca Raton include the Jewish Federation of South Palm Beach County selling an affordable senior housing complex in Boca Raton to Fairstead for $33.75 million.

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Atlantic Pacific’s plan for mixed-use affordable housing project near Cutler Bay advances

CEO of Atlantic Pacific CEO Howard Cohen and Homestead Avenue and Southwest 184th Street, Miami-Dade (Google Maps)

Atlantic Pacific Communities’ plans for a mixed-use development near Cutler Bay, with at least 500 residential units including affordable housing, are moving forward.

Miami-Dade County last week approved a 90-year master ground lease for a subsidiary of Miami-based Atlantic Pacific, led by CEO Howard Cohen.

The development, called Quail Roost Transit Village, will be built on almost 9 acres along the South Dade TransitWay, at Homestead Avenue and Southwest 184th Street, according to a press release. The project will include 140 affordable units.

The land is owned by the Miami-Dade Transit Authority and the county’s public housing authority.

The development will consist of five phases. The first phase, valued at more than $50 million, will include 200 units and a structured parking garage. The second phase will have about 30,000 square feet of retail and restaurant space. Construction should begin in the first quarter of 2022, according to the release.

Greenberg Traurig’s Nancy Lash, Ryan Bailine and Stephanie Jimenez assisted Atlantic Pacific with the lease approval. Ethan Wasserman and Nicole Wolfe are working on the project’s land use entitlements for phase one, according to the release.

Under the terms of the lease, Miami-Dade County will receive more than $2.5 million, with the exact amount depending on the total number of units ultimately constructed, plus a percentage of rent from the commercial components of the development.

The county also approved $6 million from the county’s Documentary Stamp Surtax Program to support the development, according to the lease.

In November, Atlantic Pacific Communities closed on a $26.64 million loan from Bank of America for an affordable housing development in Fort Lauderdale. That same month, the company and Rockpoint Group sold an apartment complex in Lauderdale Lakes for $102.9 million to a Canadian investment group.

Other affordable, multifamily projects planned for Miami-Dade County include a 112-unit rental project by Pinnacle that secured $30.8 million of financing earlier this month, and a 66-unit housing project near North Miami to be developed by Global One Investment Group.

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Poor hospitality: Hotel owners in big cities hit major tipping point

All of the lights in the Hilton Times Square have been pitch black for weeks — one of several ominous signs for hotel owners in New York and other large cities around the country.

The owner of the 478-room property, just blocks away from Broadway and Bryant Park, disclosed plans to the state’s Labor Department last month to permanently shut its doors and lay off 200 employees.

The real estate investment trust Sunstone Hotel Investors had been struggling to make payments on a $77 million mortgage even before March, and the 44-story building became one of several name-brand hotels to permanently close this fall. The Hilton Times Square was soon followed by the Courtyard by Marriott in Herald Square and the Roosevelt Hotel on East 45th Street, which shuttered after nearly a century of business.

On the other side of the country, the Luxe Rodeo Drive Hotel in Beverly Hills also closed for good, after having embarked on a full renovation just before Covid hit. Owner Luxe Hotels told the Los Angeles Times it’s now considering “alternative options” for the high-end hotel.

Seven months into a pandemic that has hit the hospitality and retail sectors the hardest, many hotel owners around the U.S. are at a crossroads, despite an uptick in occupancy after most city and state shutdown orders were lifted. Some of the more highly leveraged owners are now deciding between repurposing their properties, selling at deep discounts, throwing the keys back to their lenders or buying themselves more time if they can afford to.

But forbearance agreements are quickly expiring, and temporary layoffs are becoming permanent. Without a federal bailout, an estimated 38,000 U.S. hotels could close permanently, while another 28,000 are at risk of being foreclosed on, according to the American Hotel & Lodging Association.

At the same time, from California to South Florida, hotel owners face growing threats from natural disasters, including fires, storms and flooding. One Napa Valley resort reportedly suffered extensive damage from California’s wildfires last month.

After a tumultuous 12 months, average hotel occupancy nationwide was at the halfway mark in September, down about 30 percent year over year, according to preliminary monthly data from hotel research firm STR. Average revenue per available room in New York, meanwhile, tumbled about 70 percent year-over-year to $53 a night from $182 in the same period. In California, RevPAR fell by nearly half to $71. In Florida, it dropped by about 30 percent to $46.

Suzanne Amaducci-Adams, a partner at the Miami-based commercial law firm Bilzin Sumberg, said many hotel owners have become paralyzed by the potential for new shutdown orders as Covid starts to resurge in major markets.

“I think people just don’t know what to do at this point,” said Amaducci-Adams, who runs her firm’s real estate practice. “Borrowers have been using their savings, whatever available cash they have on hand, and now that money has pretty much run out. Hotels are holding their breath.”

Still, distress always creates new opportunities, and there are plenty of buyers in the market, including Starwood Capital Group co-founder Barry Sternlicht and the British billionaire brothers David and Simon Reuben of Reuben Brothers.

Insiders say a number of loan sales and preferred equity deals have already happened. But when it comes to outright property sales, the asking price and the offers are still far apart in many cases, and time is running out for many borrowers.

“Any forbearance the lenders have previously offered is starting to end, and they’re very reluctant to do anything further,” said Jake Wurzak, whose Wurzak Hotel Group owns and operates hotels in several U.S. markets.

As the clock ticks…

In the early months of the pandemic, many borrowers worked out special arrangements with their lenders, in some cases burning through their reserves to fund interest payments.

But a growing number of owners have stopped making payments altogether and are walking away from their hotel properties.

“As owners start to realize how long this is, they’re going to have to reevaluate whether it makes business sense to hang on,” said Amaducci-Adams.

Ashford Hospitality Trust — which reportedly received and returned $38 million in Payment Protection Plan funding in the first few months of the pandemic — sold its newly purchased Embassy Suites near Times Square to Magna Hospitality Group for a 41 percent discount after missing several mortgage payments.

The hotel REIT announced that it signed forbearance agreements for 34 hotels, totaling about $1.2 billion in debt, which will allow Ashford to defer interest on its loans for another six months.

Meanwhile, a $768 million loan backing Colony Capital’s Tharaldson hotel portfolio tops the list of commercial mortgage-backed securities deals that are more than 90 days delinquent, according to data from Trepp. The second-biggest delinquent CMBS deal is a $329 million loan backing Thor Equities’ Palmer House Hilton in Chicago, which went into foreclosure in August.

CMBS loans, which are more difficult to renegotiate than most other loans due to obligations borrowers have with their bondholders, often become the first to go under.

“The original reaction was to kick the can,” said Douglas Hercher, principal and managing director of the New York-based advisory firm RobertDouglas. “Lenders and borrowers are now looking for a solution that will carry them for the next 12 months.”

But this pandemic is unlike previous economic crises.

Demand for international travel may not return until at least 2024, according to one industry study. Domestic travel, especially business travel, is expected to remain low, and now that school is back in session, many families are traveling less by car.

As a result of the plunge in demand, many hotels are extending their temporary layoffs beyond six months and eliminating positions. Walt Disney recently announced that it plans to cut 28,000 jobs, mostly at its California and Florida theme parks.

“Even in the depths of post-9/11, you never had occupancy go to 10 or 20 percent. You never had hotels closing,” Hercher noted.

Lender limits

At the same time, most lenders don’t want to take over a hotel if it means running it in a coronavirus economy.

Attorney Luis Flores, a partner at Miami-based Saul Ewing Arnstein & Lehr, said the majority of banks and other debt providers didn’t issue their loans “to become hotel operators.”

But many hotel owners that can’t climb out of the hole are now asking their lenders to take a discounted payment on their debt while forgoing whatever equity they had left, accelerating transfers of ownership, he said.

“The aggressive owners and developers are being smart and saying … ‘We want to exit the asset as soon as possible,’” Flores noted.

He and others in the business say bank financing for new hotel acquisitions has become virtually nonexistent, limiting the pool of buyers to private equity firms, special purpose funds and family offices that will pay cash.

A growing number of banks and other lenders are also looking to liquidate their loans.

Frank Nardozza, chair and CEO of REH Capital Partners, an investment advisory firm based in Fort Lauderdale, said some nonbank lenders are considering selling their loans for deep discounts — ranging from 20 percent to 60 percent.

Not all hotels are on the chopping block, though.

Properties that rely on large conventions and meetings and that require air travel to get there will likely take the longest to recover. On the flip side, drive-to destinations, including many beachfront markets throughout Florida and in other locations with access to beaches, mountains or parks, experienced a rise in occupancy over the summer.

“People don’t want to get on planes. The lead time for booking those 2,000- [to] 10,000-person conventions is six months or more,” Hercher said, referring to markets such as Las Vegas, Orlando and New York City.

“The operating costs for those hotels is really high,” he added.

Who’s buying?

Despite the growing number of challenges facing hotel owners, some investors are still ready to pounce on new hotel deals.

CBRE hotel broker Paul Weimer said he’s being “overloaded” with calls from potential buyers, many of whom have ideas for repurposing existing hotels into multifamily or other uses. “Everybody and their brother wants to buy a discounted hotel,” he maintained.

Sternlicht, for one, has been vocal about his hunt for discounted hotels. As of late July, a Starwood fund was looking to raise billions to snap up distressed properties, including hotels that have shuttered due to the pandemic.

Reuben Brothers last month acquired a 25 percent stake in Jeffrey Soffer’s JW Marriott Miami Turnberry Resort & Spa in South Florida’s wealthy Aventura enclave, and plans to partner with Soffer on other assets. Since April, Soffer’s Fontainebleau Development has been seeking modifications to a $975 million CMBS loan backing its 1,500-room Fontainebleau Miami Beach — Miami-Dade County’s largest hotel, which relies heavily on group bookings.

CGI Merchant Group, meanwhile, launched a $500 million fund to invest in struggling hotels in North America and the Caribbean, properties that would be branded under the Hilton flag. Miami-based Safe Harbor Equity, led by Rafael Serrano, is raising $500 million as well to invest in hotels in major metropolitan areas, including New York, Los Angeles, Chicago and Miami.

Serrano said his fund will spend between $25 million and $50 million to acquire the debt on distressed hotel deals. “We would like to work with the borrowers to position ourselves as rescue capital,” he noted.

Even some operators that already own struggling hotels are in the market for discounted assets. Wurzak, whose Philadelphia-based firm has majority stakes in 12 properties around the country, said he has his eyes on full-service hotels in markets with high barriers to entry, such as New York and Miami.

“This amount of distress will probably create the greatest investment opportunities I’m going to see in my lifetime,” he said.

Wurzak said he’s looking to inject $200 million into more than $1 billion worth of hotel properties over the next three years. Though his hotels are “certainly in some level of distress,” Wurzak said his firm can raise capital as needed and is well-positioned to make it to the other side of the pandemic.

“We’re not a hedge fund sitting in front of a monitor in New York,” he noted. “We operate hotels.”

Though a number of U.S. hotels are now up for sale, many buyers and sellers haven’t been able to agree on a price, according to industry brokers.

Susan Gale, a hotel broker with One Sotheby’s International Realty in Miami Beach, said some of her clients are “under pressure” and willing to discount up to 20 percent.

Gale said the situation will be even more dire come November, as the hotels that have been waiting to reopen burn through more cash to cover expenses that include brand fees, maintenance and accounting.

REH Capital’s Nardozza said a high-end hotel could be incurring $1 million in annual operating costs even if it’s shut down.

Repurposing rooms

Some owners are considering alternative uses for their properties, including converting their hotel rooms to office space, student housing and homeless shelters, the latter of which can collect rent from city governments and nonprofits. 

The 600-plus-room InterContinental Times Square in New York, which housed doctors and nurses this spring, is now offering rooms as office space on a suite-by-suite basis.

Developer Jimmy Tate, who purchased distressed debt in the last recession, said owners have to do what they can to fill rooms. In addition to running marketing campaigns for staycations at his Bahia Mar Fort Lauderdale Beach, Tate is setting up some of the resort’s rooms as offices.

“It’s different, but it’s getting people to come to the hotel,” he said, noting that his plans to redevelop the waterfront Fort Lauderdale property are temporarily on hold.

While predictions for a full recovery range from 2022 to 2025, no one really knows when the country’s biggest hotel markets will return to pre-pandemic levels.

For now, many of the hotels that remain open have slashed their rates, resulting in a pricing war that could slow down the industry’s recovery in the long run. The average daily rate in the U.S. was under $100 a night in September, a 26 percent drop year-over-year, according to STR, with one of the steepest declines occurring in New York City at nearly 50 percent.

Some industry players warned that the markets that had been struggling before the pandemic, whether there was an oversupply or the properties were overleveraged, will experience the greatest challenges.

“There are certain urban markets that are just going to recover more slowly,” said Hercher of RobertDouglas, citing the Big Apple as a prime example.

“New York is going to be challenged for a while,” as the pandemic has imposed a “day of reckoning” for many hotel owners in the city, he argued.

“So many things people think of as quintessentially New York — great restaurants, Broadway, music venues — until you get that tourism engine really fired again, that’s just a big demand generator that’s not there,” Hercher noted. 

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South Florida’s retail market weakens in Q3

920-1934 Stirling Road in Broward and 510 Linton Boulevard in Delray Beach (Google Maps, iStock)

South Florida’s retail real estate market weakened in the third quarter, with negative absorption across the region and higher vacancies, according to a recently released report.

Broward County had its highest vacancy rate since the third quarter of 2017 and a record high negative absorption rate, according to a report by Colliers International.

Miami-Dade’s vacancy rate tied with the record in 2018’s fourth quarter, and asking rents fell slightly, according to the report.

It’s an industry that dealt with government-mandated closings early on in the pandemic.

Here are other insights from the retail report.

Miami-Dade

Miami-Dade County saw the lowest vacancy rate among the three counties, at 4.5 percent for the quarter. That compares to 4.3 percent in the second quarter and the third quarter of 2019.

Downtown Miami had the highest vacancy rate in the county, at 21.5 percent. West Miami had the lowest, at 2.2 percent.

The county’s average asking rents were the highest in the region, at $35.93 per square foot, down from $36.11 per square foot the prior quarter and $38.80 per square foot in 2019’s third quarter.

The highest average asking rent in the county was in Miami Beach, at $76.64 a square foot. The lowest was in Miami Lakes at $22.55.

Miami-Dade had the most retail under construction during the quarter: 1.9 million square feet, the same as the prior quarter. Most of the construction was in Miami Beach, with 409,000 square feet.

The county had negative absorption of 120,934 square feet in the third quarter, down from negative absorption of 202,502 square feet in the second quarter. Thatcompares to positive absorption of 464,100 square feet in the third quarter of 2019.

Among the top sales in the county, two were for shopping centers, one was for a storefront, one was for an auto dealer and one was for a freestanding retail property. Four were in suburban markets and one was in the central business district.

The Taurus Investment Holdings purchase of Civica Center in Miami’s Health District, for $26 million, was the top sale of the quarter.

Amped Fitness Doral signed the largest lease of the quarter, 28,000 square feet at 818 Northwest 12th Street in Dania Beach.

Other notable leases included Happy Floor’s 11,000-square-foot lease at 180 Northwest 183rd Street in Miami; CANO Health’s 6,300 square feet at 11241-11381 Southwest 40th Street in Miami; Pilo’s Street Tacos for 5,000 square feet at 158 Northwest 24th Street in Wynwood and Marlen Cruz’s 4,800 square feet at 3800 Northwest 12th Avenue in Miami. All the leases were new.

Broward

Broward County saw the lowest average asking rent in the region, at $22.04 per square foot, down slightly from $22.22 in the prior quarter and $22.84 in the third quarter of 2019.

The highest average asking rent in Broward was in the southwestern part of the county at $32.44 per square foot The lowest was on Commercial Boulevard at $16.50 per square foot.

The vacancy rate was 5.1 percent, up from 4.7 percent in the second quarter and 4.1 percent in the third quarter of the previous year.

Broward had a record high negative absorption rate for the region, at 298,000 square feet, higher than the 199,000 square feet of negative absorption in the second quarter and 47,000 square feet of negative absorption in 2019’s third quarter.

The largest negative absorption was in Southwest Broward at 116,000 square feet. The largest positive absorption was in Pompano Beach at 51,000 square feet.

The county had the lowest amount of delivered retail space, at 33,000 square feet. All of that was in Pompano Beach.

The largest lease signed in the quarter was House of Teak for 16,000 square feet at 1920-1934 Stirling Road in Dania Beach.

Other notable leases include O’Reilly Auto Parts for 8,000 square feet at 2711 West Sunrise Road in Fort Lauderdale; A2L’s 6,000 square feet at 443-453 South State Road 7 in Plantation; Cilantro Asian Bistro’s 6,000 square feet at 11290-11584 West State Road 84 in Davie; and Pines Restaurant’s 5,200 square feet at University Marketplace at 8030-8384 North Pines Boulevard. All the leases were new.

Palm Beach

Palm Beach County had the highest vacancy rate of the three South Florida counties at 5.2 percent for the third quarter. The vacancy rate was 4.8 percent the prior quarter and 4.3 percent in the third quarter of 2019.

Boca Raton East had the highest vacancy rate within the county, at 8.8 percent. The West Palm Beach central business district had the lowest, at 0.8 percent.

While all three counties had negative absorption during the quarter, Palm Beach County had the lowest amount, with 49,000 square feet. The county had 260,000 square feet of negative absorption in the prior quarter and positive absorption rate of 329,000 square feet in 2019’s third quarter.

Most of the negative absorption during the quarter was in Boca Raton West, at 78,000 square feet. Delray Beach had the highest positive absorption rate in the county, at 151,000 square feet.

The county had most of the region’s newly delivered retail space, with 223,000 square feet, all tied to Grieco Automotive Group’s dealership at 2703 South Federal Highway in Delray Beach.

Palm Beach County had the least amount of retail space under construction, at 580,000 square feet. Most of that was in Delray Beach, with 171,000 square feet.

The largest sale of the quarter was Spirit Realty Capital’s purchase of an auto dealership portfolio — in both Broward and Palm Beach counties — for $80 million. Two of the largest sales were for auto dealers, one was for a restaurant, one was for a freestanding retail property and one was for a shopping center.

The largest lease in the county was 13,000 square feet signed by Guitar Center at Linton Commons in Delray Beach.

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Macken wins approval for North Miami Beach townhomes

Macken Companies Principal Alan Macken and a rendering of the project

North Miami Beach-based developer Macken Companies received site plan approval for a waterfront townhome community in the city’s Eastern Shores neighborhood.

The company hopes to break ground on the 10-unit Koya Bay, along the Intracoastal Waterway at 4098 Northeast 167th Street, in the second quarter of next year, according to a press release.

Each four-story townhouse will have a private dock, elevator, rooftop terrace with a Jacuzzi and summer kitchen, and a two-car garage with an optional lift, according to the release. The townhouses will range from three to five bedrooms, and from 2,900 square feet to 3,600 square feet, with pricing starting at $1.9 million. The townhouses are designed by Randall Stofft Architects and Witkin Hults Design Group.

Macken Realty is the exclusive sales agent for the townhomes in the gated community.

In September, Jodi Macken, a principal at Macken Realty, had the listing on a waterfront home in the Seven Isles neighborhood of Fort Lauderdale that sold for $6.1 million.

In May 2018, Macken Companies sold a Walmart-anchored shopping center in Miami Gardens for $11.85 million.

Next month, Dezer Development is expected to get a re-vote on two ordinances tied to the contentious redevelopment of the Intracoastal Mall in North Miami Beach, despite securing approval earlier this month. The project, called Uptown Harbour, could eventually bring 2,000 units of housing, 375,000 square feet of retail, 200,000 square feet of office, a hotel, harbor and park to the waterfront site.

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Steelblock buys Opa-locka apartment complex for $8M

Steelblock CEO Ignacio Murman and 13300 Alexandria Drive in Opa-locka (Steelblock, Google Maps)

A Miami-based real estate investment company bought a 72-unit low-income housing building in Opa-locka for $8.2 million.

A company tied to Ignacio Murman, CEO of Steelblock, bought the building at 13300 Alexandria Drive, according to a press release.

At $120,833 a unit, it is the highest price-per-unit sale in the history of Opa-locka, according to the release. The previous record was $110,000 a unit.

A company tied to Jorge Lopez of the Lopez Companies sold the building. The Lopez Companies previously bought the building in 2017 for $5 million, according to records. The building has 66,000 square feet and was built in 1972.

Available units include a 691-square-foot, two-bedroom, one-bath apartment renting for $1,250 per month; and a 1,025-square-foot, three-bedroom, one-bath apartment renting for $1,500, according to an online listing.

Tomas Sulichin, president of the commercial real estate division RelatedISG International Realty that launched in September, represented the buyer. He said the buyer plans to continue looking for multifamily investments in the area and has plans to improve the Opa-locka property inside and outside the building.

In January, Steelblock bought another Opa-locka building for the same price. The 118-unit complex at 14255 to 14460 Northwest 22nd Avenue sold for $70,000 per unit.

Other recent multifamily deals in South Florida include $13 million for the 66-unit Hilton Estates buildings in Hialeah, and $67.5 million for a 218-unit development in Fort Lauderdale’s Flagler Village.

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Movers & Shakers: Colliers hires new brokerage director & more

Michael Betancourt, Tyler Kuhlman & Dustin Ozga

Colliers International announced that Dustin Ozga joined as director of brokerage services based in South Florida. Ozga will continue his office, flex, and medical office leasing practice in the region with focus on Palm Beach and Broward counties.

Prior to joining Colliers, Ozga was a vice president at Stiles Realty. He also previously worked as a senior director of real estate at Adler Realty Services, a director of corporate real estate for the Penn-Florida Companies, and as an office and industrial broker for CBRE.

Marcus & Millichap promoted Tyler S. Kuhlman to senior associate, working out of the brokerage’s Fort Lauderdale office. Kuhlman specializes in sales of office and industrial properties throughout Florida. This year, he was promoted to an associate director within the office and industrial division of Marcus & Millichap.

Katz & Associates announced that Michael Betancourt joined Katz & Associates in the Boca Raton office. Betancourt was most recently with Lee & Associates, where he represented landlords and tenants that include Caja Caliente, 109 Burger Joint, Fly Fuel and Sushi Kong. He also worked for Dwntwn Realty Advisors, Horizon Properties and with Real Estate Sales Force.

RCC Associates promoted former Vice President of Operations Robyn Raphael-Dynan to president of RCC Associates. Beverly Raphael-Altman will remain as chairwoman and CEO of the company. Robyn began her career at RCC Associates in 2004 as a project coordinator.

F+B Hospitality Brokerage, led by Felix Bendersky, announced Jason Sims as the new vice president of business development. Sims joined the real estate industry after a 15-year year career in the wholesale wine and spirits industry.

Illustrated Properties announced that The Forgatch Group, led by top agent John Forgatch, joined the real estate brokerage in Jupiter. The Forgatch Group was previously with Keller Williams Realty of the Palm Beaches. The Forgatch Group also includes longtime real estate agents Toniann De Santis and Jennifer Shenkman.

Samantha Fisher joined Island Hospitality Management as chief investment officer, after leaving Hodges Ward Elliott. She was previously senior vice president and managing director of HWE and held a similar position at JLL.

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South Florida Q3 office rents hit record high, despite higher vacancies

Despite record high office vacancies across South Florida, average asking rates hit new highs

Despite record office vacancy rates across South Florida, average asking rents hit new highs in the third quarter, according to a newly released report.

Miami-Dade had the highest average asking rate, at $41.68 per square foot, according to the report from Colliers International, which only tracks office buildings of 10,000 square feet and larger. Broward had the lowest average asking rent, at $33.59 per square foot.

The report shows shorter-term and more flexible leases are on the rise, due to uncertainty caused by Covid-19 and the adoption of remote working. Subleasing activity has increased, and tenants have expressed interest in office space in the suburbs, where larger office space is available at more affordable rates.

Palm Beach County saw available sublease space increase 43.1 percent quarter-over-quarter, the highest jump among the three counties, according to the report. Miami-Dade’s available sublease space increased 42 percent and Broward’s grew 13.4 percent during the same period.

Here are other insights from the report:

Miami-Dade

Miami-Dade saw the lowest vacancy rate among the three counties, at 10.7 percent. Still, it was a record high rate, up from 9.6 percent the prior quarter and 9 percent in 2019’s third quarter.

Downtown Miami saw some of the highest office vacancy rates at 21.5 percent, driven by 25.6 percent vacancy among class B buildings. Some of the lowest vacancy rates were in the West Miami area with a 2.3 percent vacancy rate.

Miami-Dade had the most new construction delivered, 348,000 square feet. Most of that, or 299,000 square feet, was class A space delivered in Miami. Miami-Dade also had the most office space under construction, 3.6 million square feet. Of that, 674,000 square feet is office space in Miami.

As a result, Miami-Dade experienced the largest negative absorption in South Florida, at 837,000 square feet. That’s compared to a negative absorption of 526,000 square feet the quarter prior. During the third quarter of 2019, the county saw a positive absorption rate of 388,000 square feet.

Brickell saw the highest negative absorption, at 135,000 square feet, driven by a negative absorption of 102,000 square feet of class A office space. In the suburbs, the Miami Airport area saw a negative absorption of 154,000 square feet, again driven by class A office space.

Miami Lakes, South Dade and West Miami, however, saw positive absorption. Miami Lakes saw the highest amount, 46,000 square feet, driven by class B office space.

Miami-Dade’s highest office asking rent was $57.36 per square foot in Brickell. Class A was $63.49 per square foot, and class C was $29.86 per square foot. The lowest asking rent was $24.39 per square foot, in south Dade.

The largest office sale in Miami — and in all of South Florida during the third quarter — was $163 million for Brickell City Centre Two and Three. The county saw two class A and two class B buildings among its top sales. Only one of the top five sales was in the central business district.

Miami-Dade’s top lease signed during the third quarter was 40,000 square feet for Southeastern College at 5875 Northwest 163rd Street. Other notable leases signed include 30,000 square feet for Crown Castle in Flagler Corporate Center; 26,000 square feet for Lydecker Diaz at 1221 Brickell; 23,000 square feet for Kozyak Tropin & Throckmorton at 2525 Ponce De Leon Boulevard; and 21,000 square feet for Regus at 6303 Blue Lagoon Drive.

Broward

Among the three counties, Broward saw the largest lease signed during the quarter. Law firm Greenspoon Marder renewed a lease for 62,000 square feet at 200 East Broward.

Despite this, third quarter leasing square footage was half that of the same period in 2019.

Other large leases signed in Broward include 31,000 square feet for the Department of Juvenile Justice at Lakeshore Business Center; 19,500 square feet for Kawa Capital at Optima Towers; 19,000 square feet for Regus at Arcade I Building; and 12,000 square feet for Kubicki Draper at 110 East Broward Boulevard.

The largest office sale in Broward was $82.5 million for Bayview Corporate Tower at 6451 North Federal Highway in Fort Lauderdale, which equates to $199 a square foot. Only one of the top sales was in a suburban market and only one was a class A building.

Broward saw the lowest negative absorption in South Florida, at 487,000 square feet. That was higher than the 444,000-square-foot negative absorption of the previous quarter. The third quarter of 2019 had a positive absorption of 307,000 square feet.

The highest average asking rent was in Hallandale, at $52.69 per square foot, driven by $54.61 per square foot for class A. By comparison, class B was $28.38 per square foot, and class C was $28.88 per square foot.

Palm Beach

Palm Beach County saw the highest office vacancy rate among the three counties, at 11.4 percent. That’s a record high for the county since at least the first quarter of 2017. The rate was higher than the 10.6 percent rate in the second quarter, and the 10 percent rate of 2019’s third quarter.

The highest vacancy rate was in West Palm Beach’s central business district, at 15.3 percent, driven by a 17.7 percent vacancy in class A buildings.

The lowest vacancy rate in the county was in Jupiter, at 4.8 percent, driven by a 6.1 percent vacancy among class B buildings.

Palm Beach County’s top lease was 12,000 square feet of space for Media Direct in The Park at Broken Sound in Boca Raton. In July, a headquarters facility at the Park at Broken Sound sold for $51 million.

Other top leases inked during the third quarter include 9,000 square feet for an insurance company at 1401 Forum Way in West Palm Beach; 7,000 square feet for Humana at 2900 North Military Trail in Boca Raton; and 6,000 square feet for GenPsych LLC at 2505 Metrocentre Boulevard in West Palm Beach.

The largest office sale in Palm Beach County was $80 million for DiVosta Towers. Three of Palm Beach County’s top sales were class A buildings and three were in the central business district. According to the report.

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He’s out: Baseball’s Mike Napoli sells waterfront Fort Lauderdale mansion for $7M

Mike Napoli and 2501 Delmar Place (Getty, Coldwell Banker)

Retired first baseman and catcher Mike Napoli sold his mansion in the Seven Isles neighborhood of Fort Lauderdale for $7.3 million.

Records show Napoli, a Broward County native, sold the waterfront home at 2501 Delmar Place to Andrew Dumke, the founder, chairman and CEO of CloudBreak Capital.

CloudBreak Capital is a San Diego-based private equity fund focused on lower middle market buyouts, according to its website. Dumke is also a board member of the San Diego Air & Space Museum.

Napoli was drafted by the Anaheim Angels (now the Los Angeles Angels), and during his 12-year career, played for the Texas Rangers, Boston Red Sox and Cleveland Indians. He won a World Series with the Red Sox in 2013, and retired from baseball in 2018, the same year he bought the 8,120-square-foot home for $7 million.

Napoli listed the property in June for $8 million. Jonathan Postma with Coldwell Banker had the listing. Kim Hackett of Compass represented Dumke.

The six-bedroom, nine-bathroom home was built in 2016 and has a gym, loft, office and a four-car garage. The outdoor area includes a gazebo, a saltwater pool and jacuzzi, gas fire pits and boat lift.

Among other recent nearby sales in Fort Lauderdale, John Moran Jr., the CEO of a warehousing, logistics and transportation company, bought a waterfront house in the Harbor Beach neighborhood for $7.5 million; a software CEO bought a Seven Isles home for $6.1 million; and a Phoenix auto magnate bought a waterfront Fort Lauderdale house for $9 million.

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