What’s Up In The Real Estate Market…

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Property values up in Palm Beach County

Property values in Palm Beach County have increased again, according to the Palm Beach County Property Appraiser’s Office.

On June 1, the office released estimates of taxable values and county-wide property values are estimated to increase 6.21 percent from 2018-2019.

On July 1, a preliminary tax roll will be submitted to the Palm Beach County taxing authorities and Florida’s Department of Revenue.

The estimates are based on market conditions as of Jan. 1 and modifications are still ongoing.

“New property value in Palm Beach County continues to grow our tax base along with steady increases in reassessment for 2019,” said Property Appraiser Dorothy Jacks, CFA, AAS. “I anticipate a continuation of this trend as additional new construction in residential, condominium and commercial is finalized this year and added to the 2020 tax roll.”

In Boca, the increase in property value is estimated at 4.5 percent. In Delray, the increase so far is 6.06 percent.

Boca’s Sinai Residences plans $160 million expansion

The Toby & Leon Cooperman Sinai Residences has plans to grow.

Another 111 independent living apartments and updates to amenities are in the works.

Set to break ground in the summer of 2020, deposits for units are already being accepted.

“Currently, we have a waiting list of over 70 people, which led to the decision to expand,” said Mel Lowell, COO of the Jewish Federation, which completed the existing community in 2016. “Demand continues to be high and we’re excited to be able to meet it. The future is bright.”

Due to demand for larger apartments, the expansion will allow Sinai Residences to accommodate those who seek bigger living spaces. Meanwhile, smaller, one-bedroom apartments are still available. Additionally, the community’s pool will be renovated to include a poolside bar and lounge, a hot tub and beach side entry. New dining venues will also be added, along with a movie theater, wellness center and cocktail lounge.

The new 240,000-square-foot building will be located to the southeast of the existing community on 4.5 acres. While the expansion will include larger apartments, the look and feel will be similar to that of the original Sinai.

The expansion, which was approved unanimously by the Palm Beach County Zoning Commission, is expected to be completed by the fall of 2022.

More co-working space headed to West Boca Raton, Boynton

CGI Merchant Group, a private-equity, alternative investment manager focusing on commercial real estate, is adding to more co-working spaces to its already existing portfolio.

CGI already has “The Nexus Workspaces,” co-working spaces located in several South Florida cities including Wellington, Stuart and Vista Park.

Recently, the group expanded its portfolio with the launch of two new locations: The Nexus Boca Raton and The Nexus Boynton Beach. The two properties represent a combined 59,262-square-feet of commercial space.

The sale price: $9.4 million, according to RARE CRE, who brokered the off-market deal and advised on the acquisition financing.

“The acquisition of these two properties marks an important milestone for CGI and The Nexus Workspaces,” said Raoul Thomas, founder and CEO of CGI. “We are excited to launch in two new communities: Boca Raton and Boynton Beach. We have made significant capital improvements to bring these two newly acquired assets to the same Class A standard that exists across our Nexus portfolio.  This growth reflects the confidence in CGI’s portfolio properties and the vibrancy of the South Florida market.”

The buildings were purchased from California-based Republic Investment Company in separate transactions.

Nelson Garcia who advised on both the sale and a $6.7 million bridge loan obtained by the buyer said, “CGI Merchant Group’s strong track record of owning/operating institutional-grade properties in South Florida, as well as having a proprietary flexible workspace operating company gave tremendous confidence to all counterparties to the transaction”.

The decision to expand with the two properties is in response to the growing demand for “co-working” office spaces in South Florida, according to CGI officials.

The two new spaces were purchased in February. Total, the group has six office buildings totaling over 320,000-square-feet in the five cities aforementioned. The Nexus Workspaces began in 2013.

Nexus Boca Raton is located on 441 and is a 44,000 -square-foot Class A+ office center offering over 100 executive and corporate offices, ranging from 80 to 2,800 square feet with a tenant occupancy of 86 percent.

The Nexus Boynton Beach is a 15,262-square foot Class B+ office center, offering approximately 70 executive suites, ranging from 110 to 280 square feet, with over 50 percent occupancy. The property is located on Gateway Boulevard near Interstate-95.

When the concept began, the goal was to discard the traditional notion of an office park and create a unique working environment where professionals can thrive in all aspects of their life.

Designed to help businesses of all types succeed, The Nexus attracts a diverse mix of tenants, ranging from small to medium-sized businesses, including local consultancies and law offices, as well as insurance, construction, information technology and other business services.

More housing headed to Park at Broken Sound

More rental units are headed to the Park at Broken Sound.

Related Development, part of the Related Group, recently received approval from the Boca City Council to demolish office buildings to build apartments and townhomes.

The project will add a six-story apartment building with 261 units and six two-story townhouse buildings called “big houses.”

Councilwoman Andrea Levine O’Rourke said she liked the mixture of heights incorporated into the project.

“I am usually very vocal about all kinds of development,” she said. “And I was really happy to see this. I love that there are 2-story buildings and bigger buildings. It offers more for more people.”

All units will be rentals. There will be 1, 2 and 3 bedroom units with an average size of 1,110-square-feet. The development will face Yamato Road.

In addition to more places to live, the project will add a parking structure, a bus stop for children and a shuttle shelter for people taking the Broken Park shuttle system. Sidewalks will be improved and added where needed.

Amenities for residents include a clubhouse, fitness room and outdoor pool.

“The project looks great,” councilman Jeremy Rodgers said.

Consultant for the developer and Director of The Park at Broken Sound Glenn Gromann said, “This is a great project that further compliments The Park at Broken Sound. The ‘grand boulevard entrance’ will be iconic and functional.”

Boca Resort sells for nearly half billion dollars

The biggest sale in county history happened last month when a company affiliated with billionaire and Dell computer founder Michael Dell purchased the Boca Raton Resort & Club for $461.6 million.

The seller was Blackstone. MSD Partners, part of Dell’s private investment firm, was the buyer.

The property will continue to be managed by Hilton under the Waldorf Astoria Hotels & Resorts brand, according to a news release sent in April.