Related Group sues realty firms

Condo builder Related Group has filed at least 15 lawsuits against realty companies to recoup more than $460,000 in commissions on deals where buyers defaulted.
 
With numerous condo buyers walking away from sales contracts, developer Related Group has begun suing real estate brokerages to get back commissions on those busted deals. Related has filed at least 15 lawsuits in Miami-Dade Circuit Court since last month to recover more than $460,000 in commissions on at least 19 sales contracts in the 389-unit Hallandale Beach Club Tower III property at 1800 Ocean Dr.

In suing, Related risks alienating realty firms that bring prospective buyers to its developments, some brokers said. ''If somebody is suing you, do you do business with them?'' asked Edward Roberts, owner of Beachfront Realty in Miami Beach, which is being sued for the return of about $53,000 in commissions. ``We're furious that they are doing this. We have made them billions of dollars in the last five or six years.''

Related has sued the brokerages for breach of contract, demanding they return commissions -- typically 3 percent of the purchase price -- because buyers failed to close on contracts. The lawsuits mark the latest legal spats in the fallout from the overheated real estate market. Up until now, most of the litigation has been spawned by dozens of buyers trying to escape contracts with their deposits.

Matthew Allen, a Related vice president, referred inquiries to a company attorney who couldn't be reached. Calls to the law firm representing Related in the suits weren't returned.

It's Related's practice to pay commissions after buyers put down deposits, rather than when sales close. By law, the commission is paid to the broker, who then pays the agent. An agent's share of the commission can range from 70 percent to 90 percent.

Broker registration agreements Related filed with the lawsuits state that a commission is ''to be earned only upon the close of title for the unit.'' But Miami lawyer Alex Kurkin, who represents Beachfront Realty, said there is nothing in the agreement that says a commission must be refunded if the buyer fails to close.

WHAT ABOUT DEPOSITS?

''Buyers put up 20 percent deposits. Where did that money go?'' said Roderick Coleman, a Boca Raton lawyer representing three brokerages being sued by Related. The developer ``didn't give it back to the buyer. It shows Related must have some business difficulties if they are trying to get back commissions on deposits they have kept.''

Coleman said it's customary in the real estate business not to refund commissions even if a closing doesn't happen.

''They are now shooting themselves in the foot by telling brokers and Realtors you can longer trust us to do business with'' you, Coleman added.

Miami's BAP Realty, which Related is suing for the return of a $16,200 commission, responded by filing a claim against the sales agent on the deal in an attempt to recoup most of the money Related wants, said Alfred Andreu, a lawyer for the brokerage.

Jami Agins, a broker for Re/Max Ultra Realty Group in Aventura, which is being sued for a $23,250 commission, said she can't bar agents from bringing buyers to Related's properties. But she said she's considering having any commissions held in escrow until closing to ensure she's not sued again.

`BEST INTEREST?'

``I question if [the lawsuit is] in the best interest of the developer, because if they're trying to induce agents to sell their product by advancing the money [before closing] and the broker won't advance the money, where is the inducement?''

Kurkin said Related deserves the blame for the busted sales because they encouraged buyers to become real estate speculators and flip units at higher prices.

''They created this feeding frenzy,'' Kurkin said.

Posted on Thu, Jan. 31, 2008
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BY PATRICK DANNER

Miami condos search

Viceroy Icon community: Brickell
Architect: Arquitectonica
Views: Bayfront and City
Estimated completion date: 2009, Spring
Bedrooms: Studios, 1, 2 & 3
Residence Size: 495 - 1459
Total Residences: 500
Number of Stories: 60

ICON BRICKELL CONDO HOME PAGE



Overlooking Miami and adjoining two green parks in the neighborhood known as the "Wall Street of the South," the awe-inspiring new residential community Icon Brickell will soon become home to Florida's debut Viceroy Resorts and Residences location.

An innovative joint venture between Kor Hotel Group and Florida's most prominent multi-family developer, The Related Group, this new destination within a destination will re-invent the concept of contemporary luxury with a timeless urban essence - and introduce the first hotel to Brickell.

Located within the third and final Icon tower, Viceroy at Icon Brickell will command one dozen of the building's 53 stories. A sky-high rooftop pool bar for Viceroy guests, Icon residents, and Miami locals will crown the roof. On the main pool plaza level, Viceroy will also offer a destination restaurant. Kelly Wearstler Interior Design will envision and execute the interior design for the Viceroy at Icon Brickell guestrooms, residences, lobby and restaurants; all promise to captivate and enchant like the Viceroy environments in the British West Indies, Santa Monica and Palm Springs.

Already recognized for its skyline-illuminating profile, world-class design presence and phenomenal sales record, Icon Brickell is a waterfront 1,780-unit, three-tower high-rise project gathered around an Olympic-size swimming pool plaza and flanked by two city parks. With architecture by Arquitectonica, the entire Icon complex provides an ideal backdrop for Viceroy's relaxed yet polished interpretation of traditional sophistication.

Occupying its own tower within the trident structure, the Viceroy tower will be the only structure among the three to house a hotel in conjunction with residences, offering hotel services to both guests and owners. An innovative joint venture between Kor Hotel Group and Florida's most prominent multi-family developer, The Related Group, this new destination within a destination will re-invent the concept of contemporary luxury with a timeless urban essence - and introduce the first boutique hotel to Brickell.

The Viceroy located within the third and final Icon tower, Viceroy at Icon Brickell will command one dozen of the building's 53 stories. A sky-high rooftop pool bar for Viceroy guests, Icon residents, and Miami locals will crown the roof. On the main pool plaza level, Viceroy will also offer a destination restaurant. Kelly Wearstler Interior Design will envision and execute the interior design for the Viceroy at Icon Brickell guestrooms, residences, lobby and restaurants; all promise to captivate and enchant like the Viceroy environments in the British West Indies, Santa Monica and Palm Springs. With architecture by Arquitectonica, the entire Icon complex provides an ideal backdrop for Viceroy's relaxed yet polished interpretation of traditional sophistication.

Visit Icon Brickell condos home page
Visit Brickell Avenue Condos Home Page
Visit Brickell Key Condos Home Page

· Home equity still accounts for the largest single source of household wealth, both for the individual homeowner and for homeowners as a group, despite the increase in the percent of households holding stock in recent years.
· Housing has historically provided both a reliable and a profitable return to homeowners.

· Most homebuyers use a mortgage combined with a downpayment of 20 percent or less to finance their purchase: It is this leveraging of borrowed funds that gives housing a return far in excess of the stock market's appreciation.

· The financial return on housing also includes unique tax benefits, which apply only to housing.

Toscano Condo summary:   Toscano Dadeland Condo website     See all Miami condos

Completion Date: North Tower- Completed, Main Tower-Fall 2007
Toscano Developer: Fairfield Residential LLC
Toscano Architect: Nichols, Brosch
Description: Condos, Lofts, Retail
Units: 403
Number of floors: North Tower 6, South Tower 27
Number of Bedrooms: 1,2 & 3
Unit Sq. Ft. Range: 756-1,995
Toscano Condo Price Range: Mid $ 200,000's - $ 800,000's
Toscano Condominium Maintenance Fee: Est. $ .38 per Sq.Ft.
Amenities: Temperate Controlled Pool, Fitness Center, 24 hour Concierge, Parking Valet. Pets ok to have. (some restrictions)

Toscano Condos - Building Amenities:
Grand Lobby design with Concierge services
Fully wired for high-speed internet access plus all common areas are wireless "hotspots"
Fitness Center with cutting-edge cardio and free weight equipment, exercise studio with wood and rubber flooring soothing sauna plus his and her locker rooms
Residents Club Room with billiards table, large flat screen television, stereo system, catering kitchen with refrigerator, ice maker and cocktail bar
Heated swimming pool, 25,000 sq. ft. private pool deck and Whirlpool spa
Beautifully landscaped outdoor seating areas with cloth cabanas and ample chaise lounges
Serene meditation garden for reading, yoga or just relaxing
Dog park for your pet's convenience
Electronic garage access card provided for all residents
24-hour courtesy monitor
Valet parking
High speed elevators
Move-in quality throughout; fully finished, carpeted, tiled and painted
Pet Friendly

Avenue on Brickell
Avenue on Brickell Condominium Address: 1060 Brickell Avenue, Miami FL 33131

Avenue Condo on Brickell website   The Avenue condo floor plans


 
The Avenue on Brickell Condo, New Preconstruction in Brickell Miami
The estimated completion time of the Avenue on Brickell- 2007 
 
Developer: Intel
Architect: SB Architects
Description: Mixed Use; Residential and retail development.
Units: 570
Floors Tower 1: 46 (Brickell Ave Tower) Tower 2: 34 (South Miami Ave Tower)
Number of Bedrooms: Lofts, 1, 2 & 3
Unit Sq. Ft. Range: 890 - 1,356
Price Range: $335,000 - $ 1,200,000
Amenities: Pool, fitness center, spa, high-speed internet, wine and cigar lounge room, garage and 24-hour security.
Estimated Project Cost: $200 Million
Construction Date: Spring 2005
Completion Date: Summer 2007

PRIME LOCATION
- Premier Brickell Avenue address
- Excellent proximity to neighborhood restaurants, shopping, grocery
stores and vibrant entertainment
- One-block walk to Mary Brickell Village's exciting new leisure
and lifestyle center (opening soon)
- Adjacent to People Mover and Metrorail station
- Minutes from Coconut Grove, Coral Gables and South Beach,
as well as Miami International Airport and Interstate 95
- Surrounded by the Performing Arts Center and Bicentennial Park

EXQUISITE BUILDING
- Signature architecture that will greatly enhance the Miami skyline
- Distinctive two-tower complex offering magnificent views of
Biscayne Bay, Downtown Miami and the city skyline
- Drop off area accessible from a lushly landscaped driveway off
Brickell and SE 1st Avenues
- Elegant, spacious contemporary 2-story lobby created by an
award-winning design team
- 24-hour attended lobby and security service
- Multiple high-speed elevators
- Enclosed 12-story parking garage featuring security access controls
at all entry levels
- Private storage units
- Mail and package receiving area
- Ground floor retail and restaurants
- Valet Parking
- Pet-friendly

Posted on Thu, Jan. 24, 2008
Miami developer bets on condos' future
BY MATTHEW HAGGMAN
 
The condominium developer who led South Florida's high-rise building boom is making a $1 billion bet that the region's real estate market is a bargain.

Amid a slumping condo market, developer Jorge Perez is joining with a Wall Street firm to create an investor fund that will buy troubled mortgages and distressed property that ranges from raw land to finished condominium units in the southeastern United States. He will look at properties built by other developers as well as by his own Miami-based Related Group.

For months, investors have been pooling money and waiting to pounce on bargains prompted by overdevelopment, a tight credit market and overzealous investing in housing. This year is expected to be the time when opportunities arise, in part, because so many condo projects will start closings -- and many jittery buyers are expected to walk away rather than close.

With $1 billion, Perez and his investors will rank among the most well-capitalized funds trolling for deals in the region, said real estate analyst Lew Goodkin, who is advising bargain hunters, though not Perez.
The moves of Perez, the biggest high-rise condo builder in Florida and among the biggest in the country, are closely watched in the industry because he has demonstrated a knack for spotting trends and quickly taking advantage of them. While his projects span from Argentina to Atlanta, he has built -- or is building -- 12 towers in Miami's downtown and Brickell areas and several in Broward County, including Trump Hollywood in Hollywood and ICON Las Olas in Fort Lauderdale.

He said his decision to launch a vulture fund -- or an ''opportunity fund'' as he calls it -- should be interpreted as a sign of confidence in South Florida's condo market, not a reason for worry.
''I strongly believe that Miami real estate is undervalued,'' Perez said. ``Three years from now, people will look back and be amazed. Nevertheless, right now there are some people stuck in the middle of a loan who don't have any cash and need to get rid of some inventory.

''We are going to try and take advantage of that situation,'' Perez said.
He said the money is in place and contract details for the investor fund are being finalized this week. He declined to name his partner until the deal closes.

Perez, chairman and CEO of privately held Related Group, said his plan is premised on the long-term growth and success of the region's real estate market: He's buying when the market dips, using his financial strength to carry him through the downturn, and then riding it back up.
The plan, he said, is to focus primarily on properties in the Southeast, from Atlanta and Jacksonville to Miami, though he said there may be opportunities elsewhere in the country. Big chunks of unsold condos will be targeted.

Perez said the investor group intends to hold units for two to five years at a loss and then sell at a profit when, he bets, the market will have improved.
That means Perez would become a much bigger renter of apartments across the region, at least in the short-term. Perez, who was an apartment developer before building luxury condo units, said his company currently leases and manages 7,000 rental units and could handle renting many more.
The builder said the fund could also buy raw land or mortgages. ''Anything we think has value,'' he said.
Creation of the fund also positions Perez with a ready source of capital to be used in purchasing his own units, if he chooses to do so, Goodkin said.

A big challenge for many builders is what to do with excess property in the down market. Typically, builders want to avoid hasty or high-profile sell-offs that undercut previous buyers or give the appearance of a fire sale. A highly capitalized fund with a joint venture partner can be an inviting alternative.
In November, Lennar, the Miami-based home builder that's among the country's biggest, announced it was joint-venturing with Morgan Stanley to buy, develop and sell real estate. Its first deal: buying Lennar-owned properties valued at $1.3 billion for $525 million.

Perez said he has not decided to use the investor fund to buy units that his company built -- though he said he anticipates as many as 20 percent of his buyers may default on some of his projects. Perez has a host of large condo projects that will close in the next 12 months, including Brickell Avenue projects in Miami such as The Plaza and 500 Brickell.

The developer said he plans to rent unsold units in those projects himself, without the investor fund.
Still, ''[the fund] gives him a lot of flexibility in addressing inventory issues that he may have, as well as picking up distressed properties on the cheap,'' Goodkin said.

Since the downturn, Perez has responded by launching more than 10 projects in Latin America in an attempt to diversify geographically. He also has been careful about starting new projects in South Florida; he recently canceled the proposed Loft 4 condo high-rise in downtown Miami and is still deciding whether to build another downtown project, Loft 3.

Miami condos        Brickell key

Brickell Key Apartments for Rent

Welcome to Brickell key... without leaving the City behind Brickell Key is located between Downtown Miami and South Beach, Here you can Run, Bike or simply Stroll on Beautiful Promenades overlooking Biscayne Bay, or enjoy a Concert at the Village Green, visit the Islands Sculpture Gardens or Picnic beneath the Canopy of Brickell Key's Native Tree Nursery... with so much to do and see, even an ordinary Jog becomes Extraordinary.

Big city pleasures on a seclude Island. Enjoy the upscale delights of the Brickell Key Marketplace where you'll find the finest in Floral Creations as well as Urban Conveniences like Fine Restaurant, Travel Agent, Apothecary, Dry Cleaner, Hair Salon, Brickell Key Water Taxi and more - right around the corner, and you can also shop for Garden-Fresh Vegetables or complete Ready-to-Enjoy Dinners at the Gourmet Specialty Market.
 
Discover your own Zen. Visit the Mandarin Oriental, Miami's first 5-Star Hotel... right on Brickell Key. Spend the day enjoying the latest Treatments at the Asian Spa or take High Tea in the soaring Lobby, and you'll approach life with a smile. Your exceptional Dining Choices range from the Haute Cuisine of Azul to the stylish but more casual Waterfront Café.

Listing Features:
Address: 178 S Shore Dr
City: Miami
State: FL
Zipcode: 33133
Listing Price: $989,000
Property Type: Single Family
Style: Single Family, Single Story
Bedrooms 4
Bathrooms: 3
Year Built: 1955
Status: Active
County: Dade
Neighborhood/Area Info:
Municipality: Bay Heights
Area: 41
Subdivision: Bay Hgts
Square Footage: 3,125
Property/Lot Dimensions:
Lot Size: 9000
Waterfront Property (Yes/No): No
Extras:
Fireplace (Yes/No): No
Property Features: Security Features, Swimming Pool, Heated Pool, Above Ground Pool
Included Items: Gas Range And Oven, Dishwasher, Refrigerator, Trash Compactor, Clothes Dryer
Pool (Yes/No): Yes
Sprinkler (Yes/No): No
Tax Amount: $1,694
Heat: Central Heat
Air Conditioning: Central Air Conditioning
Roof Information: Tile Roof
Comments/Remarks
Additional Comments/Info:
Comment 1: Charming Bay Heights Home, 4/3 Heated Pool, Walled And Secured Neighborhood, 5 Min To Downtown, 3 Blocks To Bay.

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