BY THE NUMBERS

Hurricane Matthew is the first storm to hit Florida since Wilma. Wilma crashed into the Sunshine state in October 2005. Charley hit in 2004. Both did significant damage to commercial real estate assets. Against this backdrop, BTIG is offering insights into Florida's exposure among the 53 REITs it covers. According to BTIG:

• 9 have greater than 20% portfolio exposure
• 5 have 10% to 15% exposure
• 23 have less than 10% exposure
• 16% have zero exposure
• EastGroup has almost 29% exposure
• Kite Realty Group has 25% exposure
• Four of the seven multifamily REITs in Florida have exposure: Camden Property has the greatest exposure at 19% of net operating income; Mid-America, Monogram Residential and UDR generate 14.7%, 11% and 7.3% of net operating income in the state, respectively
• Office REITs have the lowest exposure in the state of all asset classes
• Healthcare REITs have the second-lowest exposure
• Hotel REITs face above-average risk from hurricane-related damage and operational disruption, with Host seeing the greatest exposure at 16%. LaSalle and Pebblebrook have 6% exposure in Florida
• Industrial REITs face above-average risk of hurricane damage
• On the retail front, Equity One has the greatest exposure at 40.6% of its annual rent base settled in South Florida
• Triple Net REITs in the state each have less than 10% exposure

NEWS & NOTABLES

ORLANDO—Provision Healthcare and Hamlin Retail Partners West, an affiliate of Boyd Development Corporation and Schrimsher Properties, announced a joint venture to develop and operate a proton therapy center as part of a medical campus in Hamlin, an 850-acre mixed-use town center development in southwest Orange County. Construction on the proton therapy center is scheduled to start in the second quarter of 2017. Developers project as many as 800 to 900 patients will be treated at the proton center each year, which will create about 100 clinical and administrative jobs.

TAMPA, FL—Capstone Development Partners and Harrison Street Real Estate Capital closed on equity financing for an on-campus mixed-use student housing village, including 2,200 student housing beds on a gateway site on the main campus of the University of South Florida. The capital markets deal was inked under Capstone and Harrison Street's P3+ development model. Total development cost of the student housing project is approximately $134 million and include a 400-seat dining center, a 19,200-square-foot wellness center, 5,600 square feet of retail and 4,500 square feet of office space the university will occupy. The student housing project will deliver almost 900 beds in the first phase, which is scheduled to open in August 2017. An additional 1,300 student housing beds will be delivered in August 2018.

BELLE GLADE, FL—Affording housing developer Housing Trust Group closed on financing to acquire and rehabilitate Covenant Villas, 144-unit multifamily community in Belle Glade, in a joint venture with Spectra Organization. Once market-rate apartments, the units will be converted to affordable housing and set aside for families earning at or below 60% and 33% of the Palm Beach County area media income (AMI). The project is valued at $22 million and the units are expected to come online in Sept. 2017. “Palm Beach County and the Belle Glade community in particular has a great need for safe, clean and affordable housing,” says HTG president and CEO Matthew Rieger. “Once the renovation is completed, Covenant Villas will be the nicest housing that the City of Belle Glade has ever seen and will serve as a catalyst for the revitalization of the surrounding neighborhood.”

FORT LAUDERDALE, FL—Related Group's Auberge Beach Fort Lauderdale has recorded multi-million dollar sales totaling nearly $34 million. Broward County, known for seeing somewhat slow sales this season, posted a strong summer. Broward County and Miami-Dade are still different markets appealing to different buyer types. Related reports brand associations and phenomenal amenities are helping maintain steady and healthy sales.

ORLANDO—The U.S. Green Building Council has awarded Millenia Lakes office portfolio has been awarded LEED Gold Certification. The LEED certification was awarded after efforts between the building owner Barings Real Estate Advisers, acting on behalf of an institutional investor, and Cushman & Wakefield, which leases and manages the asset. LORD Green Real Estate Strategies and Facility Commissioning Group also consulted on the project.

ORLANDO—Artistry Hotels Partners launched Artistry Hotels, a new, full-service, independent boutique hotel brand in the “new luxury” segment that will deliver distinctively artful and imaginative experiences reflective of each property's location. “The hospitality industry is changing rapidly to meet the demands of a new, emerging traveler that places a high priority on their own personal design, service and experiential preferences,” says “Chip” Headley, III, CEO of the firm. “And while Millennials undoubtedly are having a significant impact on the industry as they grow in numbers and influence, so too is the younger, Active Boomer. Regardless of age, this 'new', discriminating U.S. travel consumer has become the driving force behind what defines today's 'lifestyle hotel'.”

MIAMI—Housing Trust Group and NBA legend Alonzo Mourning recently celebrated the grand opening of Courtside Apartments located in Miami's historic Overtown community. Miami-Dade is facing a dire shortage of affordable housing. According to the latest report from the Shimberg Center for Housing Studies at the University of Florida, Miami-Dade County has the greatest share of “low-income” households of any county in the state. For every 100 low-income households—earning at or below 60% of area median income—there are only 24 affordable and available units. Courtside aims to illustrate how public-private partnerships can help address the housing crisis.

TAMPA, FL—Just weeks after bringing aboard Mack Feldman and Jonathan Schneider, Feldman Equities has hired real estate leasing powerhouse Mike DiBlasi and financial analyst Mahmoud Mihanyar. As executive vice president of leasing and marketing, DiBlasi will head all leasing activity for the 1.3 million square foot office building portfolio owned and under development by Feldman Equities and Tower Realty Partners in Tampa Bay. His role will also include leasing oversight of acquisitions and third party leasing assignments.

MIAMI—Monument Real Estate Services has expanded its presence in South Florida with six new management assignments. Biscayne Shores, Midora at Woodmont, Shorecrest Manor,Sunset Palms, Park Plaza and Woodland Meadows are the new multifamily leasing assignments. The firm also appointed a new regional manager, Brandon Skinner, as regional manager for the South Florida area. He brings over 10 years of experience to his new role. He previously served as director of operation and regional manager for KPC Properties. The firm manages a portfolio of more than 12,000 units in markets throughout the Southwest, Southeast, Midwest and Mid-Atlantic regions of the US.

MIAMI—Spider has formed an alliance agreement with real estate brokerage firm Cervera Real Estate. Cervera's presence in the South Florida real estate market spans almost half a century. The firm has sold more than 50,000 condominium units and exclusively represented over 100 condominium projects. The first project to fall within the scope of the alliance will be 25, a boutique, middle-market condo that Spider is developing in Edgewater.

DEALTRACKER

JACKSONVILLE, FL—Tradewinds Apartment Homes, an 85-unit multifamily property in Jacksonville, FL, traded hands. The sale price: $3.8 million. Megan D. Johnson, associate in Marcus & Millichap's Jacksonville office, and Nicholas Meoli and Michael Donaldson, both vice president investments in the firm's Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The team also secured the buyer, a limited liability company. The multifamily community consists of 12 buildings and rests on approximately 2.32 acres. The multifamily property secured 14 offers. Donaldson says, “The buyer intends to capitalize on below market rents by implementing strategic interior and exterior renovations.”

FORT MYERS, FL—Waterton sold Guflstream Isles, a 936-unit multifamily asset in Fort Myers, FL, to Starwood Capital Group. Starwood purchased the multifamily property free and clear of existing debt. Financial terms of the deal were not disclosed. HFF arranged a 10-year, floating-rate loan with Freddie Mac's CME program.

DAYTONA BEACH, FL—One Daytona, International Speedway Corporation's mixed-use and entertainment destination located across from the Daytona International Speedway, just inked leases with Oklahoma Joe's BBQ, Rock Bottom Restaurant & Brewery, and MidiCi: The Neapolitan Pizza Company. One Daytona will also include a 67,000-square-foot Bass Pro Shops Outpost, a 12-screen Cobb Theatres, a 145-room Marriott Autograph Collection hotel branded as The DAYTONA, a 105-room select service Fairfield Inn & Suites by Marriott and a 276-unit luxury apartment community.

SUNNY ISLES, FL—Madison Realty Capital originated a $32 million first mortgage loan collateralized by three unsold residential condominium units in The Regalia, a 46-story, 39-unit ultra-luxury residential building located at 19575 Collins Avenue in Sunny Isles, FL. The borrower intends to use the loan proceeds to repay the existing debt on the property. Josh Zegan, co-founder and managing principal of MRC, says, “This was an attractive deal for MRC to finance as well as another opportunity to boost our pipeline of activity in the Miami metro area.”

OCALA, FL—Pennick Landing, a 15-unit multifamily property in Ocala, FL, has traded hands. The asset sold for $645,000. Ned Roberts and Jason Hague, both associates, and Michael Donaldson and Nicholas Meoli, both vice president investments, all in Marcus & Millichap's Tampa office, represented the seller, a private investor, and the buyer, a limited liability company. Roberts says, “The 1031-exchange buyer saw value in the Ocala market, they paid cash and closed on the property 17 days after putting it under contract.

TRINITY, FL—Trinity Square, three single-story office buildings with 13,665 net rentable square feet located at 2433-2455 Country Place Boulevard in Trinity, FL, has traded hands for $2.35 million. Dan Mulkey, vice president investments in Marcus & Millichap's Tampa office, represented the buyer in this transaction. The buyer, a private investor, used this asset as one of a few properties purchased to satisfy a 1031 tax exchange. “These buildings provide office space for medically related tenants servicing the surrounding community,” says Mulkey. “Being in such a high growth area and in such close proximity to the Medical Center of Trinity makes this location exceptional for this use.”

KISSISSIMMEE, FL—Villas at 17th Apartments, a 130-unit multifamily community in Kissimmee, FL, traded hands for $8.15 million. Michael Donaldson and Nicholas Meoli, both vice president investments in Marcus & Millichap's Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The duo also represented the buyer, a private investor. “With over $700,000 in recent capital improvements, consistent monthly rent growth and a submarket with strong fundamentals, it is no surprise that we had over 300 buyers register to access the marketing website for Villas at 17th,” says Donaldson. “Buyers were attracted to the turnkey operation with the ability to obtain excellent year one cash flow once the loss-to-lease was reduced.”

TAMPA, FL—Robert Hernandez, senior vice president and managing director of NorthMarq Capital's Tampa-based regional office, arranged $15.4 million in preferred equity for Channel Club, a 323-unit, 22-story multifamily property located at 1105 and 1115 East Twiggs Street in Tampa. The transaction was structured with a three-year term plus two one-year extensions. NorthMarq arranged the equity through its relationship with a national lender for Channel Club-TA, a Mercury Advisors, ECI Group joint venture.

PLANTATION, FL—Quest Workspaces expanding in South Florida. The alternative workspace provider opened a 25,000-square-foot shared office space in the Sabadell Financial Center located at 150 South Pine Island Road in Plantation. The independently owned and operated Quest is working to carve out a niche in commercial real estate by offering a hybrid which combines the best amenities of shared office space with the collaborative elements of coworking centers.

MIAMI—CBRE arranged the sale of Woodbridge Plaza, a mixed-use shopping center spanning 54,707 square feet, which includes 16,182-square-foot second floor office component. The property is located in the West Palm Beach MSA in Greenacres, FL. An entity affiliated with Southern Management & Development purchased the mixed-use asset for $5.375 million. CBRE represented the seller, AMCO Properties. “Woodbridge Plaza attracted substantial interest due to its location at a major intersection in Palm Beach County as well as an offering price well below replacement cost,” says David J. Donnellan, senior vice president with CBRE. “While the tenancy consists of predominantly smaller local companies, a solid base of professional and service-oriented businesses has operated at the center for several years.”

The big news this week in Florida—and much of the Southeastern coast—is Hurricane Matthew. Although it wasn't as bad as many meteorologists predicted in the southern part of the state, North Florida appears in for a hammering Friday and Saturday. And it still remains to be seen if the storm will loop back around and hit us again. I've included some interesting statistics below on REIT exposure in the state.

Most of this week's noteworthy news revolves around housing—either multifamily housing, condos, student housing and affordable housing. That's not surprising, given the rapid pace of Florida's population growth and the retiring Baby Boomers looking to downsize. From large metros to tiny submarkets, the demand for housing continues rippling through the state.

Investors are actively buying and selling in secondary and tertiary markets, as you'll see in the coverage below. I don't expect this to stop any time soon. What I have my eye on his how the single-family home market will respond in terms of driving more affordability for Millennials. I've witnessed some developers evolve in this direction in this cycle.

What's clear is there is no one-size-fits all housing solution for any individual demographic. In other words, you can't pigeon hole a housing preference based on an age group. Although Millennials do tend to gravitate toward multifamily, condo and single-family home developers would be wise no to ignore the future implications of this market today.

BY THE NUMBERS

Hurricane Matthew is the first storm to hit Florida since Wilma. Wilma crashed into the Sunshine state in October 2005. Charley hit in 2004. Both did significant damage to commercial real estate assets. Against this backdrop, BTIG is offering insights into Florida's exposure among the 53 REITs it covers. According to BTIG:

• 9 have greater than 20% portfolio exposure
• 5 have 10% to 15% exposure
• 23 have less than 10% exposure
• 16% have zero exposure
• EastGroup has almost 29% exposure
• Kite Realty Group has 25% exposure
• Four of the seven multifamily REITs in Florida have exposure: Camden Property has the greatest exposure at 19% of net operating income; Mid-America, Monogram Residential and UDR generate 14.7%, 11% and 7.3% of net operating income in the state, respectively
• Office REITs have the lowest exposure in the state of all asset classes
• Healthcare REITs have the second-lowest exposure
• Hotel REITs face above-average risk from hurricane-related damage and operational disruption, with Host seeing the greatest exposure at 16%. LaSalle and Pebblebrook have 6% exposure in Florida
• Industrial REITs face above-average risk of hurricane damage
• On the retail front, Equity One has the greatest exposure at 40.6% of its annual rent base settled in South Florida
• Triple Net REITs in the state each have less than 10% exposure

NEWS & NOTABLES

ORLANDO—Provision Healthcare and Hamlin Retail Partners West, an affiliate of Boyd Development Corporation and Schrimsher Properties, announced a joint venture to develop and operate a proton therapy center as part of a medical campus in Hamlin, an 850-acre mixed-use town center development in southwest Orange County. Construction on the proton therapy center is scheduled to start in the second quarter of 2017. Developers project as many as 800 to 900 patients will be treated at the proton center each year, which will create about 100 clinical and administrative jobs.

TAMPA, FL—Capstone Development Partners and Harrison Street Real Estate Capital closed on equity financing for an on-campus mixed-use student housing village, including 2,200 student housing beds on a gateway site on the main campus of the University of South Florida. The capital markets deal was inked under Capstone and Harrison Street's P3+ development model. Total development cost of the student housing project is approximately $134 million and include a 400-seat dining center, a 19,200-square-foot wellness center, 5,600 square feet of retail and 4,500 square feet of office space the university will occupy. The student housing project will deliver almost 900 beds in the first phase, which is scheduled to open in August 2017. An additional 1,300 student housing beds will be delivered in August 2018.

BELLE GLADE, FL—Affording housing developer Housing Trust Group closed on financing to acquire and rehabilitate Covenant Villas, 144-unit multifamily community in Belle Glade, in a joint venture with Spectra Organization. Once market-rate apartments, the units will be converted to affordable housing and set aside for families earning at or below 60% and 33% of the Palm Beach County area media income (AMI). The project is valued at $22 million and the units are expected to come online in Sept. 2017. “Palm Beach County and the Belle Glade community in particular has a great need for safe, clean and affordable housing,” says HTG president and CEO Matthew Rieger. “Once the renovation is completed, Covenant Villas will be the nicest housing that the City of Belle Glade has ever seen and will serve as a catalyst for the revitalization of the surrounding neighborhood.”

FORT LAUDERDALE, FL—Related Group's Auberge Beach Fort Lauderdale has recorded multi-million dollar sales totaling nearly $34 million. Broward County, known for seeing somewhat slow sales this season, posted a strong summer. Broward County and Miami-Dade are still different markets appealing to different buyer types. Related reports brand associations and phenomenal amenities are helping maintain steady and healthy sales.

ORLANDO—The U.S. Green Building Council has awarded Millenia Lakes office portfolio has been awarded LEED Gold Certification. The LEED certification was awarded after efforts between the building owner Barings Real Estate Advisers, acting on behalf of an institutional investor, and Cushman & Wakefield, which leases and manages the asset. LORD Green Real Estate Strategies and Facility Commissioning Group also consulted on the project.

ORLANDO—Artistry Hotels Partners launched Artistry Hotels, a new, full-service, independent boutique hotel brand in the “new luxury” segment that will deliver distinctively artful and imaginative experiences reflective of each property's location. “The hospitality industry is changing rapidly to meet the demands of a new, emerging traveler that places a high priority on their own personal design, service and experiential preferences,” says “Chip” Headley, III, CEO of the firm. “And while Millennials undoubtedly are having a significant impact on the industry as they grow in numbers and influence, so too is the younger, Active Boomer. Regardless of age, this 'new', discriminating U.S. travel consumer has become the driving force behind what defines today's 'lifestyle hotel'.”

MIAMI—Housing Trust Group and NBA legend Alonzo Mourning recently celebrated the grand opening of Courtside Apartments located in Miami's historic Overtown community. Miami-Dade is facing a dire shortage of affordable housing. According to the latest report from the Shimberg Center for Housing Studies at the University of Florida, Miami-Dade County has the greatest share of “low-income” households of any county in the state. For every 100 low-income households—earning at or below 60% of area median income—there are only 24 affordable and available units. Courtside aims to illustrate how public-private partnerships can help address the housing crisis.

TAMPA, FL—Just weeks after bringing aboard Mack Feldman and Jonathan Schneider, Feldman Equities has hired real estate leasing powerhouse Mike DiBlasi and financial analyst Mahmoud Mihanyar. As executive vice president of leasing and marketing, DiBlasi will head all leasing activity for the 1.3 million square foot office building portfolio owned and under development by Feldman Equities and Tower Realty Partners in Tampa Bay. His role will also include leasing oversight of acquisitions and third party leasing assignments.

MIAMI—Monument Real Estate Services has expanded its presence in South Florida with six new management assignments. Biscayne Shores, Midora at Woodmont, Shorecrest Manor,Sunset Palms, Park Plaza and Woodland Meadows are the new multifamily leasing assignments. The firm also appointed a new regional manager, Brandon Skinner, as regional manager for the South Florida area. He brings over 10 years of experience to his new role. He previously served as director of operation and regional manager for KPC Properties. The firm manages a portfolio of more than 12,000 units in markets throughout the Southwest, Southeast, Midwest and Mid-Atlantic regions of the US.

MIAMI—Spider has formed an alliance agreement with real estate brokerage firm Cervera Real Estate. Cervera's presence in the South Florida real estate market spans almost half a century. The firm has sold more than 50,000 condominium units and exclusively represented over 100 condominium projects. The first project to fall within the scope of the alliance will be 25, a boutique, middle-market condo that Spider is developing in Edgewater.

DEALTRACKER

JACKSONVILLE, FL—Tradewinds Apartment Homes, an 85-unit multifamily property in Jacksonville, FL, traded hands. The sale price: $3.8 million. Megan D. Johnson, associate in Marcus & Millichap's Jacksonville office, and Nicholas Meoli and Michael Donaldson, both vice president investments in the firm's Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The team also secured the buyer, a limited liability company. The multifamily community consists of 12 buildings and rests on approximately 2.32 acres. The multifamily property secured 14 offers. Donaldson says, “The buyer intends to capitalize on below market rents by implementing strategic interior and exterior renovations.”

FORT MYERS, FL—Waterton sold Guflstream Isles, a 936-unit multifamily asset in Fort Myers, FL, to Starwood Capital Group. Starwood purchased the multifamily property free and clear of existing debt. Financial terms of the deal were not disclosed. HFF arranged a 10-year, floating-rate loan with Freddie Mac's CME program.

DAYTONA BEACH, FL—One Daytona, International Speedway Corporation's mixed-use and entertainment destination located across from the Daytona International Speedway, just inked leases with Oklahoma Joe's BBQ, Rock Bottom Restaurant & Brewery, and MidiCi: The Neapolitan Pizza Company. One Daytona will also include a 67,000-square-foot Bass Pro Shops Outpost, a 12-screen Cobb Theatres, a 145-room Marriott Autograph Collection hotel branded as The DAYTONA, a 105-room select service Fairfield Inn & Suites by Marriott and a 276-unit luxury apartment community.

SUNNY ISLES, FL—Madison Realty Capital originated a $32 million first mortgage loan collateralized by three unsold residential condominium units in The Regalia, a 46-story, 39-unit ultra-luxury residential building located at 19575 Collins Avenue in Sunny Isles, FL. The borrower intends to use the loan proceeds to repay the existing debt on the property. Josh Zegan, co-founder and managing principal of MRC, says, “This was an attractive deal for MRC to finance as well as another opportunity to boost our pipeline of activity in the Miami metro area.”

OCALA, FL—Pennick Landing, a 15-unit multifamily property in Ocala, FL, has traded hands. The asset sold for $645,000. Ned Roberts and Jason Hague, both associates, and Michael Donaldson and Nicholas Meoli, both vice president investments, all in Marcus & Millichap's Tampa office, represented the seller, a private investor, and the buyer, a limited liability company. Roberts says, “The 1031-exchange buyer saw value in the Ocala market, they paid cash and closed on the property 17 days after putting it under contract.

TRINITY, FL—Trinity Square, three single-story office buildings with 13,665 net rentable square feet located at 2433-2455 Country Place Boulevard in Trinity, FL, has traded hands for $2.35 million. Dan Mulkey, vice president investments in Marcus & Millichap's Tampa office, represented the buyer in this transaction. The buyer, a private investor, used this asset as one of a few properties purchased to satisfy a 1031 tax exchange. “These buildings provide office space for medically related tenants servicing the surrounding community,” says Mulkey. “Being in such a high growth area and in such close proximity to the Medical Center of Trinity makes this location exceptional for this use.”

KISSISSIMMEE, FL—Villas at 17th Apartments, a 130-unit multifamily community in Kissimmee, FL, traded hands for $8.15 million. Michael Donaldson and Nicholas Meoli, both vice president investments in Marcus & Millichap's Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The duo also represented the buyer, a private investor. “With over $700,000 in recent capital improvements, consistent monthly rent growth and a submarket with strong fundamentals, it is no surprise that we had over 300 buyers register to access the marketing website for Villas at 17th,” says Donaldson. “Buyers were attracted to the turnkey operation with the ability to obtain excellent year one cash flow once the loss-to-lease was reduced.”

TAMPA, FL—Robert Hernandez, senior vice president and managing director of NorthMarq Capital's Tampa-based regional office, arranged $15.4 million in preferred equity for Channel Club, a 323-unit, 22-story multifamily property located at 1105 and 1115 East Twiggs Street in Tampa. The transaction was structured with a three-year term plus two one-year extensions. NorthMarq arranged the equity through its relationship with a national lender for Channel Club-TA, a Mercury Advisors, ECI Group joint venture.

PLANTATION, FL—Quest Workspaces expanding in South Florida. The alternative workspace provider opened a 25,000-square-foot shared office space in the Sabadell Financial Center located at 150 South Pine Island Road in Plantation. The independently owned and operated Quest is working to carve out a niche in commercial real estate by offering a hybrid which combines the best amenities of shared office space with the collaborative elements of coworking centers.

MIAMI—CBRE arranged the sale of Woodbridge Plaza, a mixed-use shopping center spanning 54,707 square feet, which includes 16,182-square-foot second floor office component. The property is located in the West Palm Beach MSA in Greenacres, FL. An entity affiliated with Southern Management & Development purchased the mixed-use asset for $5.375 million. CBRE represented the seller, AMCO Properties. “Woodbridge Plaza attracted substantial interest due to its location at a major intersection in Palm Beach County as well as an offering price well below replacement cost,” says David J. Donnellan, senior vice president with CBRE. “While the tenancy consists of predominantly smaller local companies, a solid base of professional and service-oriented businesses has operated at the center for several years.”