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Miami-Dade Business Briefs - March 2009
Bal Harbour —
The owner of the Bal Harbour Club put the 5.5-acre oceanfront property up for sale for $225 million; an adjoining marina is priced at $60 million.
» HH Condominium Investments, led by Related Group of Florida investor Thomas Daly and former Miami Beach Assistant City Manager Christina Cuervo, paid the Related Group $27 million for 101 units — an average of $267,300 — in the New Harbour House condo.
Doral —
U.S. Century Bank made an unspecified donation to Florida International University to name its 6,000-seat arena the U.S. Century Bank Arena.
Medley —
Logistics and transportation provider Ryder System (NYSE-R) will eliminate 700 positions, including 60 to 70 in south Florida, and temporarily lay off some 1,300 drivers and warehouse workers and 125 salaried workers. It will also close its operations in Brazil, Chile and Argentina, cutting another 3,100 jobs. Ryder also announced it was buying the assets of Hartford, Conn.-based Edart Leasing for an undisclosed amount.
 The 2010 NFL Pro Bowl will take place at Dolphin Stadium. The game will be played one week before the Super Bowl; it has been played in Honolulu since 1980. |
Miami —
Brothers Carlos and Jorge de Céspedes, founders of medical supply company Pharmed (now in bankruptcy), were sentenced to nine years in prison for defrauding Kendall Regional Medical Center and for tax evasion; the judge also ordered them to pay restitution of $6.9 million
» Lender iStar FM Loans has filed to foreclose on 5.46 acres owned by New York-based Midtown Equities just east of the developer’s Midtown Miami condo and retail project.
» McClatchy Co. is giving Miami developer Pedro Martin until June, with an option to extend until the end of the year, to complete the purchase of 10 acres of parking lots surrounding the Miami Herald’s bayfront headquarters. The closing date for the deal, signed in March 2005, had been extended once before. A retail development, set to include a Wal-Mart, is already approved for the site. Separately, Martin’s Terra Group received a 22-month extension on a $26-million mortgage for a parcel of land behind the landmark Freedom Tower; it plans a 63-story condo.
» Whole Foods supermarket pulled out of MDM Development Group’s Met Miami real estate development, where it was slated to become downtown Miami’s first major supermarket.
» Norwegian Cruise Lines will get priority access to two large-ship berths and upgrades to the terminals at the Port of Miami, in exchange for guaranteeing a minimum of $98 million in port fees over 10 years.
» Nurses at Jackson Health System agreed to forgo cost-of-living raises and instead have their union, the Service Employees International Union (SEIU), work with Jackson to set nurse-to-patient ratios for each of its departments. This is the first agreement of its kind east of Nevada. Merit wage increases will continue.
» The Florida Department of Community Affairs rejected the city’s proposed amendments to its comprehensive development plan, ruling that allowing more residential development along the Miami River would threaten maritime businesses.
» Florida Gaming Corp. (OTCBB-FMGM), which owns Miami Jai Alai, acquired 11 acres from Miami-Dade County. Miami Jai Alai will expand its casino.
» Home builder Lennar Corp. (NYSE-LEN) formed a fund to buy distressed residential real estate. Rialto Capital Management is run by Jeffrey Krasnoff, former CEO of Lennar spinoff LNR.
» Singer Island-based Welcome Bay paid around $13 million to purchase 60 units at Hyperion Development Group’s Marinablue condo — an average of $217,000 a unit.
» Container carrier APL Ltd. is moving its Central America Express and CX2 service to the Port of Miami from Port Everglades. It will be the only port of call for the service.
» Ocean Bank filed a foreclosure lawsuit against Miami-based Dorado Homes Development.
Miami Beach —
» The Blue and Green Diamond condominiums emerged from bankruptcy protection that developer New Florida Properties sought in 2002.
» Developer R. Donahue Peebles filed for bankruptcy protection for the Royal Palm Hotel, six years after he opened the South Beach property with the help of city subsidies. He is currently in a feud with real estate investor Guy Mitchell, who heads a group that bought 88% of the hotel from Peebles in 2005. Mitchell’s lenders say he defaulted on loans.
» Miami Beach has the highest income disparity in the U.S., according to a Miami Herald story based on U.S. Census data. In the city of 90,000, the richest 20% of households have 62.3% of income, while the poorest 20% have just 2.3% of income.
Miami-Dade —
» Former Knight Ridder Chairman and Miami Herald President and CEO Alvah H. Chapman Jr., one of south Florida’s most respected corporate and community leaders, died of pneumonia at age 87. His contributions to the area included leading the “We Will Rebuild” coalition after Hurricane Andrew in 1992 and helping found the Miami Coalition for the Homeless.
» The Department of Housing and Urban Development, which seized control of the county’s housing agency in 2007 after the Miami Herald uncovered a series of problems, returned it to county control.
Miami Gardens —
» St. Thomas University has put the naming rights to its law school up for sale for $10 million.
