Miamians spend up to 58% of income on rent in minority neighborhoods: report

Aerial view of Miami

In Miami, residents can expect to spend more of their paychecks on rent if they live in a mostly black or Hispanic neighborhood than if they live in a predominantly white neighborhood, according to a new report.

The share of income needed to pay rent in black communities in Miami is 58.2 percent, higher than the national average of 43.7 percent. In Miami’s predominantly Hispanic neighborhoods, it’s 55.1 percent, also higher than the national average of 48.1 percent.

In Miami’s white neighborhoods, residents will spend about 41.7 percent of their paychecks on rent, the Zillow report found.

The general rule of thumb is that people should spend about a third of their incomes on housing, which they do on average in the U.S.

In Los Angeles, Zillow found that renters should expect to shell out 50 percent of the incomes on housing in white areas, 63 percent in Hispanic neighborhoods and nearly 64 percent in black communities. Rental affordability has been on the decline since 2011 and has worsened in minority neighborhoods, according to Zillow.

And in Miami-Dade, minorities are the majority. Non-hispanic white residents make up only 15.4 percent of the county’s makeup, according to the 2010 census. Hispanic/Latinos represent 65 percent, while the black population makes up about 17.1 percent of Miami-Dade’s residents.

Affordable and workforce housing is a big problem in South Florida. The Urban Institute recently released a report that found the number of single-family homes in Wynwood that were rented by low- to middle-income households dropped from 38 percent to 20 percent between 2000 and 2015.

The report also found that a majority of Miami’s low- to middle-income households are located in downtown Miami, West Flagler, Flagami, Allapattah and Little Havana, but residents in areas like Coconut Grove, the Upper Eastside and Edgewater were economically more successful.


Novak Djokovic to pay up to $8.9M for unit at Eighty Seven Park

Rendering of Eighty Seven Park. Inset: Novak Djokovic (Credit: Getty Images)

UPDATED March 28 9 p.m. The No. 2 men’s tennis player in the world, Novak Djokovic, will pay up to $8.9 million for a unit at Terra Group’s Eighty Seven Park in North Beach, a spokesperson told The Real Deal.

Djokovic’s purchase of a unit at the Renzo Piano-designed building was announced in January without a price. Terra, Bizzi & Partners and New Valley are developing the 70-unit, 20-story beachfront tower at 8701 Collins Avenue. A spokesperson told The Real Deal the price was $8.9 million, but later said she spoke incorrectly and the price is up to $8.9 million.

Djokovic, who just withdrew from the Miami Open due to an elbow injury, will pick up a three-bedroom, three-and-a-half-bathroom unit at Eighty Seven Park when it’s completed. The range of prices for three-bedroom units is $4.3 million to $8.9 million. Wall Street Journal first reported the sale earlier this year.

Douglas Elliman is handling sales for the North Beach tower. Units will range in size from 1,400 square feet to 7,000 square feet, and prices from $1.6 million to $45 million for the penthouse. Rena Dumas Architecture Intérieure and WEST 8 Urban Design & Landscape Architecture are also working on the project design.

Terra President David Martin purchased the property, which was the site of the former Howard Johnson Dezerland Hotel, from Sunny Isles developer Michael Dezer for $65 million in 2013 and knocked it down in 2015.

Terra closed on a $91 million construction loan in January 2016. The developer said it plans to go vertical in April.

Correction: A previous verson of this story said the price was $8.9 million, according to the spokesperson, but she later said she spoke incorrectly.


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Baywood Hotels breaks ground on hotel near Trump Doral with $15M loan

Fairfield Inn & Suites Miami Airport South

Baywood Hotels closed on a $15.4 million construction loan for a hotel it’s building near the Trump National Doral Miami resort, property records show. 

Baywood affiliate 36th Street Hospitality LLC just closed on the land and construction financing for the property at 8001 Northwest 36th Street in Doral. Gibralter Private Bank & Trust is the lender. The hospitality development and management firm also broke ground on the project, a 133-room Fairfield Inn & Suites by Marriott.

Vareka Investments N.V., an offshore entity based in the Lesser Antille island country of Curacao, sold a portion of the property to Baywood for an undisclosed amount. Diego Ribadeneira, reportedly an early investor of Bain Capital, manages the company and signed the deed transfer of ownership.

Baywood, which is based in Greenbelt, Maryland with an office in Miami, has been active in Miami-Dade. The company owns and operates a portfolio valued at more than $800 million, according to its website. In South Florida, its properties include the Fairfield Inn & Suites near Miami International Airport, the Hilton Garden Inn Miami South Beach-Royal Polo and the Residence Inn Miami Airport West/Doral, which is less than two miles away from the Fairfield site in Doral.

In February of last year, Baywood sold the Holiday Inn Doral and the adjacent Staybridge Suites Miami for $36 million. The firm picked up the long vacant Keys Bay Colony Resort in Marathon from the Peebles Corporation for $10.5 million in 2015.


Donald Trump still personally guarantees $300M in Deutsche Bank loans

Deutsche’s Jon Cryan, the Trump International Hotel in Washington, D.C. and Donald Trump (Credit: Getty Images)

From the New York website: Deutsche Bank still hasn’t reached a deal to remove Donald Trump’s personal guarantees from around $300 million in real estate loans, more than three months after talks between the German lender and Trump’s associates were first reported.

With the guarantees still in place, the U.S. faces the unusual prospect of a foreign financial association going after a sitting U.S. president’s assets if he were to default.

Bloomberg reported that the bank’s senior executives have now taken over the matter from loan officers to determine its potential ramifications. If the bank simply removed the guarantees, it could be seen as being too soft on the president. If it asked for higher interest rates in return, it could anger the most powerful man in the world.

In 2012, Trump took out $125 million in loans from Deutsche Bank’s private banking group to finance his Trump National Doral Miami golf resort. According to filings with the federal election commission, the loan carries an interest rate of 1.75 percentage points over Libor.

In 2015, he borrowed another $170 million to fund the conversion of an old post office in Washington, D.C., into a hotel near the White House. Deutsche Bank also issued a loan against the Trump International tower in Chicago.

Trump’s Justice Department is currently investigating the Frankfurt-based lender on claims that it helped wealthy Russians move money under dubious circumstances, raising the specter of a conflict of interest.

In December, Bloomberg reported that the bank was in talks with Trump to remove the guarantees in a bid to minimize conflicts of interest. [Bloomberg]Konrad Putzier


Miami firm buys 4 hotels in Alabama for $36 million

Homewood Suites hotel in Daphne, Alabama

Miami-based Sefira Capital LLC  paid $36 million for a portfolio of four hotels in Alabama, the firm’s first investment outside Florida.

Sefira paid about $80,000 per room for the Hilton-branded hotels, which have a total of 440 rooms.

The firm acquired an 80-room Hampton Inn in Mobile, Alabama, and three hotels in nearby Daphne, Alabama: a 104-room Homewood Suites, a 124-room Hilton Garden Inn and a 132-room Hampton Inn.

The Alabama acquisition is Sefira’s fifth project. The boutique investment firm also acquired a hotel in Cocoa Beach and an office complex in Tampa, and developed a multifamily residential property in Jacksonville and a self-storage facility in Naples.

Mijael Attias and Aby Galsky formed Sefira Capital in September 2015 to acquire and develop commercial real estate.