Related Group under fire again at One Ocean, all eyes on SoftBank’s other investments: Daily digest
A daily roundup of South Florida real estate news, deals and more for Nov. 4, 2019
Every day, The Real Deal rounds up South Florida’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day. Please send any tips or deals to email@example.com
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Allegations of shoddy construction at a Related Group development in South Beach, where its chairman and CEO Jorge Pérez is trying to sell his penthouse, are piling up. A recent lawsuit filed in Miami-Dade Circuit Court accuses Related, architects Sieger Suarez, general contractor Plaza Construction of Florida and three subcontractors of failing to address numerous construction defects inside two units in the South of Fifth project. [TRD]
Since WeWork’s disastrous attempt to go public, all eyes are on SoftBank’s other investments. Many are now questioning CEO Masayoshi Son’s strategy of dumping massive amounts of cash on unprofitable firms, including brokerage Compass and construction firm Katerra. [TRD]
Billionaire Bill Koch is among the neighbors who disapproves of a neighbor’s plans for a Palm Beach house. The size, height and scale of the British Colonial-style beach house proposed for 977 South Ocean Boulevard is irking neighbors, according to the Palm Beach Daily News. Rusty and Ashley Holzer are the property owners. [PBDN]
Kusa Hospitality buys new Hotel Morrison in Dania Beach for $28 million. N&S Properties sold the 143-key Hotel Morrison for about $194,000 per key, amid a wave of new development in the Broward County city. [TRD]
Apple follows Google and Facebook with $2.5B housing plan for California. Apple has become the latest Silicon Valley titan to pledge billions of dollars to address California’s affordable housing crisis. About $1 billion will go toward the development of affordable housing, and the plan includes building on Apple-owned land in San Jose. Another $1 billion will help first-time homebuyers find mortgages. [TRD]
A San Diego-based investor acquired two medical office buildings, in what a broker on the deal called an example of the rise in out-of-state buyers searching for higher yield in Florida. The investor paid $33.15 million for the 50,000-square-foot buildings at 5966 South Dixie Highway in South Miami and 475 Biltmore Way in Coral Gables [TRD]
Developers, an ex-mayor and a current mayor are pushing for the expansion of Tri-Rail. Proposed sites are near Midtown Miami, the Magic City Innovation District in Little Haiti, and Liberty City in northwest Miami-Dade County. At two public meetings last week, officials discussed new stations for the publicly funded commuter train that has operated since 1989.
The real estate industry is backing Miami commissioner Ken Russell’s run for re-election. Of the $1 million-plus his campaign has raised, more than $450,000 has come from donors in real estate, architecture, construction and development, the Miami Herald reported. That includes $35,000 from developers like Florida East Coast Industries, Okan Tower developer Kasim Badak and Midtown Opportunities LLC to Russell’s political committee, Turn the Page. Russell’s challengers for the District 2 spot include real estate broker Jim Fried. [Miami Herald]
Property owners in Miami’s West Coconut Grove are seeking a rezoning for multifamily development. On Wednesday, the city’s Planning, Zoning and Appeals Board will vote on a land use change for the assemblage on Carter and Plaza streets from duplex residential to medium density multifamily residential, boosting the maximum density to 58 units from 14 and allowing for ground-floor commercial space, according to the South Florida Business Journal. [SFBJ]
Breather hired a former Regus executive to lead its real estate division. Dan Suozzi joined the office-space company last week, during a tumultuous time for real estate startups. Breather, which launched in Montreal in 2012, has raised $120 million, in rounds led by Menlo Ventures and RRE Ventures. [TRD]
Compiled by Katherine Kallergis