The Real Deal Miami

National Cheat Sheet: Sales of sites in Opportunity Zones up 80% … & more

By TRD Staff | October 26, 2018 06:30PM

Clockwise from top left: Sales of properties in Opportunity Zones are up by 80%, Realogy plots Corcoran expansion, CoStar projects their annual earnings, Don Jr. gets around.

Sales of sites in Opportunity Zones up 80% 
Properties within the designated Opportunity Zones across the country are seeing a marked rise in values. Sales of development sites in the 8,700 zones nationwide increased 80 percent in the first three quarters of 2018 year over year, the Wall Street Journal reported, citing data from Real Capital Analytics. The federal program was included in the passage of last year’s sweeping tax reform bill. It awards tax incentives to developers willing to build in low-income neighborhoods, but many of the details regarding how the program will work have not yet been announced. [TRD]

CoStar on pace for nearly $1.2B in revenue in 2018, CEO says 
The commercial real estate giant reported that its third quarter revenue hit $306 million — a 23 percent increase from their earnings over the same period last year. With a market cap of nearly $14 billion, CoStar Group says it’s poised to rake in between $1.83 billion to $1.89 billion in total revenue for 2018. During the company’s earnings call this week, CEO Andrew Florance said CoStar’s acquisition of ForRent.com had prompted a $4 million drag on bookings to the site. He also told investors that the sales staff plans to focus on the recently acquired Apartments.com customer base in the months ahead. [TRD] 

Realogy plans to franchise Corcoran brand across globe
The parent company of Corcoran Group, Realogy, has announced plans for a major expansion. The company is plotting to franchise the Corcoran brand to “global megacities” and vacation communities. “As the world has gotten smaller, we want to get bigger,” said Corcoran CEO Pam Liebman, noting the need to expand beyond “luxury triangle” of Corcoran’s presence in New York City, the Hamptons and Palm Beach. The expansion plan entails launching in six to 10 new markets within the next 18 months, Liebman said. The firm will soon open up an office in Miami. [TRD]

While Trump Org. faces heat, Don Jr. roams
The eldest son of the commander in chief may be the co-steward of the embattled Trump Organization, which is facing a multitude of investigations, but Don Jr. hasn’t been spending much time at the office. Between December and July alone, he took more than a dozen politics-related trips, according to his social media posts. “It’s hard enough to run a successful business on a day to day basis,” said Jason Pereira, a partner at the Woodgate financial planning firm which specializes in helping family businesses pass the reins from one generation to the next. “You have one bad thing happen, that’s OK. You have more than one bad thing happen simultaneously, then your attention is deviated.” [TRD]

MAJOR MARKET HIGHLIGHTS 

City Market seeks partner for $1B LA project
City Market of Los Angeles is on the hunt for a partner for its $1 billion redevelopment project, The Real Deal has learned. The 1.7 million-square-foot project, which is dubbed City Market and will span three city blocks, is slated to bring 948 residential units, a 210-key hotel, school, movie theater and 225,000 square feet of commercial space to the Fashion District. It recently won City Council approval. “We always knew we would be needing a development partner for a project of this scale, certainly from a financial standpoint,” said Mark Levy, City Market’s president. [TRD]

Palm Beach home of Broadway producer lists for $135M
Broadway producer Terry Allen Kramer has listed her five-acre Palm Beach estate for $135 million. If she lands a buyer at that price, it will set a new record for the priciest residential sale in the county’s history. The 37,000-square-foot home, dubbed “La Follia,” is listed with a group of brokers from Douglas Elliman, according to the Wall Street Journal. To date, Palm Beach County’s priciest sale was by none other than President Donald Trump, who sold his estate to Russian billionaire Dmitry Rybovlev for $95 million in 2008. [TRD]

Two Chicago REITs launch $500M Opportunity Zone fund
Investor Larry Levy’s Diversified Real Estate Capital and Cresset Capital Partners announced that they would launch an Opportunity Zone fund with at $500 million fundraising goal, Crain’s first reported. While cash in the fund could go to any 8,700 low-income areas nationwide, which are eligible, Illinois has 327 opportunity zones, including 135 in Chicago. [TRD]