JIM BATMASIAN'S DIRTY LAUNDRY FINALLY OUT IN PUBLIC

JIM BATMASIAN'S DIRTY LAUNDRY FINALLY OUT IN PUBLIC

While it has never been a secret in the real estate community that Jim Batmasian was a bad guy, he paid great sums of money to try and give the impression that he was truly a good guy. That was done by donating money to various organizations. If you recall, he was recently going to host a fund raiser for Rick Scott at his house but for some reason people had a problem with it taking place at a convicted felon's house so they had to scrap that one. Batmasian loves giving money to politicians and public figures who he can get pictures with (they come with the donations). Those pictures decorate the walls of his office and reception area to show everyone how important he is. But he is a convicted felon, who in 2008 pleaded guilty to not paying federal withholding income taxes for employees (and to the tune of $253,513! That is nothing to someone like him and sheds a lot of light about him). That earned him a stint in federal prison. If these new accusations have any merit, he soon will be able to add sexual harassment, bank fraud, and accounting fraud to his resume along with a return to prison. It also seems like he has had a penchant for renting space to brothels and taking personal services from them in exchange for rent or construction, according to his former leasing agent who was involved with the transactions. He is currently being sued by 2 former employees, the former leasing agent and his former Chief Financial Officer, who is being sued by Batmasian. Why does anyone care? Because he owns more than half of Boca Raton and a significant amount of properties in Broward County as well. He has a $100 million dollar line of credit. His black and yellow signs are ubiquitous on Federal Highway in Boca Raton and every commercial leasing agent avoids his properties. The reason is a well earned reputation for not paying them commissions, along with other trades people. With in house counsel, he is always involved in dozens of lawsuits at any given time, it is just how he does business. But now everyone knows and I don't think Jim is very happy today. This will play out for months in the press so start getting used to hearing about it. We will update you when there is a new update. As always thanks for reading and have a great day.

Sex, tax fraud claims made against Boca Raton property owner Batmasian

http://www.mypalmbeachpost.com/news/business/sex-tax-fraud-claims-made-against-boca-raton-prope/ngmYh/#ff8ee250.3711057.735442

FORECLOSURE UPDATE

FORECLOSURE UPDATE

We have written a lot about foreclosures here, and yes we still lead the nation in this unfortunate department. I thought this was a good article to shed some light about them (by the numbers of cases both in Palm Beach County and the entire state of Florida), and why they just won't go away. 33% of Palm Beach County's cases are at least 2 years old. Of 15,195 pending cases, 5,005 have lingered for over 730 days. Statewide, the numbers are 185,823 total cases with 55,798 more than 2 years old. The new law to fast track the foreclosures, not mentioned in the article, and the new determination of the courts to clear the backlog have paid dividends over the past year. The numbers support that in Palm Beach County with 17,739 cases solved between July 2013 and April 2014 and 194,000 cases statewide. It is clearly suggested that new regulations on banks are preventing them from more efficiently foreclosing on delinquent mortgagees. There is also the issue of many banks having a full plate of toxic assets and they do not want to add to it so as to not show as great of a loss/exposure. They add them when they are ready for them for whatever reason. It is mentioned in the article that it is not uncommon for people to have not made payments for 2 years and still have not received foreclosure papers from their bank, starting the process. So in short, foreclosure in Palm Beach County and Florida as a while is still a mess but improving at a faster pace. Hopefully the courts can finally clear all the cases someday and if you believe that I have a bridge to sell you in Brooklyn! As always thanks for reading and have a great day.

Nearly six years for South Florida home values to hit pre-recession peak

http://realtime.blog.palmbeachpost.com/category/foreclosures/

BAHIA MAR LATEST PROPERTY TO BE BOUGHT AND UPGRADED

BAHIA MAR LATEST PROPERTY TO BE BOUGHT AND UPGRADED

This is a familiar story by now isn't it? An older, well located property gets bought and the new owner plans to renovate and expand and or upgrade the property. It is happening all over the state, from every product type from theme parks to retail centers and yes marinas. That is the case here with the famed Bahia Mar Marina, the hub of Ft. Lauderdale Beach. It has been badly in need of a renovation and now it will finally happen. The new owners, the Tate brothers (Jimmy & Kenny) and Sergio Rock , along with Rialto Capital Management and RCI Marine have been steadily adding to their portfolio lately and following the same script. The Tates and Rok and have totaled 18 investments with a value of more than $600 million in the past 5 years alone. This site is irreplaceable, 39 acres, across from a public beach, has a 250 slip marina and 297 room hotel. It is also the location of the Ft. Lauderdale International Boat Show, which as we know from previous blogs is a huge economic driver for the entire region. So while already good, this site is about to get amazing with the addition of a condo hotel, and retail, restaurants and offices all facing the water. It will be a park like setting with people being able to walk, and enjoy time by the water. This should be an absolute home run if done right and I can't wait to see it when it is complete. It is very exciting to see important parts of the area getting improved and renovated. It also provides badly needed jobs and enhances our already excellent standing as a tourist destination. As always thanks for reading and have a great day.

Bahia Mar sold, may be upgraded with more dining and shopping

http://www.miamiherald.com/2014/07/23/4251573/bahia-mar-sold-may-be-upgraded.html

MORE RESIDENTIAL CONDOS ON THE WAY FOR PALM BEACH COUNTY

MORE RESIDENTIAL CONDOS ON THE WAY FOR PALM BEACH COUNTY

Did you really think we had reached the limit on more multifamily growth? Ha! Seems like the surface is barely scratched with the reports of new projects almost daily it seems. 3,000 more residential coastal condos are on the way in Palm Beach county, from Boca Raton to Juno. This represents a 42% increase from the year before. Some are wondering if it is enough to satisfy the demand from high end empty nesters, incoming retirees from the Northeast and Midwest and of course the ever present foreign investor. If you think this sounds like a lot of product coming to the market at once (maybe gun shy from previous over building?) it really isn't when compared with the 27,000 units planned for Dade county. But as with any product type in Dade county, when the pricing gets too high there (or there is not enough), people look Northward. And don't forget that all that rental product that has already been built or is in the planning stages can easily be converted to condos if the market will support it. Any way you look at it, multi family is on fire in South Florida again and let's hope that things turn out better for all of us this time around. While lessons have been learned from before (down payments for these units are sometimes as much as 50%), it is impossible not to ride the wave when it presents itself so the process is playing out much as it did a few years ago. Get ready to see some new high rise residential buildings the next time you are in the East part of town, no matter where you are in South Florida. It is an exciting time in South Florida again and the boom cranes are back again in force. As always thanks for reading and have a great day.

3,000 condos planned across Palm Beach County

http://www.sun-sentinel.com/business/realestate/fl-condo-projects-20140725,0,5102771.story

TWO MORE AIRLINES COMING TO SOUTH FLORIDA

TWO MORE AIRLINES COMING TO SOUTH FLORIDA

That might be a premature blog title but I think it will end up being accurate. This is also a 2 for 1 blog opportunity, as you will see that these 2 articles are quite related. They show a very different situation between Palm Beach International Airport and Hollywood Ft. Lauderdale airport. First let's look at the story about PBIA and their new airline, PeopleExpress. Last week the newest airline at PBIA started flying routes from West Palm Beach to Newport News/Williamsburg International Airport in Virginia. There is some argument about whether or not there is a need for this route at all, whether or not there will be sufficient traffic for it to make sense and money. It should be noted that traffic at PBIA has steading dropped since 2007, with a slight increase last year. Where is all the traffic going since we have been having record tourism numbers? Ft. Lauderdale? Traffic is only up 3.8% since 2007 there. Miami? Probably but no numbers are given. So we wish PeopleExpress the best of luck and hope that this niche route works out. On the other hand, is the possibility of Azul Brazilian Airlines, Brazil's 3rd largest airline, establishing non stop routes between Ft. Lauderdale and San Paolo/Campinas airport. The deal is confusing since there are conflicting reports here. At the beginning of the article it says that the deal is waiting for regulatory approval from Brazil and the U.S. Later it says that they are still in negotiations (the airline and the airport) and a final agreement is pending. While there are challenges, this is the most natural thing in the world given the enormous Brazilian population in Broward County and the fact that there are no nonstop flights currently. This would be the first in the US for Azul, who is also planning to have service from Brazil to New York and Orlando by mid 2015. I would be shocked if this deal didn't happen. Good luck to Azul and hopefully we will be seeing them here by the end of the year. As always thanks for reading and have a great day.

Brazilian airline could be coming to Fort Lauderdale

http://www.bizjournals.com/southflorida/blog/morning-edition/2014/07/brazilian-airline-could-be-coming-to-fort.html?ana=e_sflo_rdup&s=newsletter&ed=2014-07-21&u=imWEgan6Mo2Fr8QCA5ZmD1rCrgv&t=1405950286

Palm Beach International’s new fledgling airline: Is it a risk?

http://www.mypalmbeachpost.com/news/news/palm-beach-internationals-new-fledgling-airline-is/ngjCD/#a93ac2ca.3711057.735435

BLUE MARTINI ON THE WAY OUT OF CITY PLACE?

BLUE MARTINI ON THE WAY OUT OF CITY PLACE?

For the 2nd time in a month there is another story about a large multi unit restaurant facing bankruptcy at City Place. Blue Martini, who has been a tenant at City Place for 14 years, is facing eviction for non payment of rent. Their arrearage is reported to be over $140,000 but they say they will resolve the dispute amicably and have no intentions of leaving. This is also what was said by Brewzzi's last month. That case is still pending but the establishment remains closed. What is going on at City Place these days? Like all lifestyle centers in Florida, City Place is a project that draws people looking for entertainment and dining. They do very little shopping, and there is a lot of competition for the dining dollars. While the restaurants are all different with respect to cuisine, there are lots of options and usually all the business comes on the weekends. So you are looking at really 2 good days per week, very tough to make a living on that especially when you have an enormous restaurant and pay substantial rents. I was working with a restaurant there in the past and learned that the operating expenses, better known as CAM, was about $30 per square foot. If that was the rent alone it would be daunting. For example, most of the restaurants are at least 5,000 - 6,000 SF. So let's say 5,500 SF, just with CAM and sales tax pays $14,575 per month assuming there is no rent! And there certainly is so assume they pay $20,000 per month minimum. With all the employees, limited week day profits, stiff competition how can any of these restaurants make it? You may have heard that a bowling alley recently opened here, providing yet more entertainment options. It also offers food, which further cuts into the restaurants profits and potential customers. Given all of this, I think it is a sure bet that the revolving door of restaurants at City Place will continue until some long term solution is found. But there is something else working against it. Any retail properties that have 2 stories don't seem to succeed for whatever reason in Florida. City Place happens to be the only lifestyle center I know of that has 2 stories. I really hope they can find a solution and make the project work. It is a huge improvement from what was there before and the great hope is that eventually more residents will move into all the condos downtown and make it work. As always thanks for reading and have a great day.

MICROSOFT LAYS OFF 18,000 PEOPLE BUT THAT IS A GOOD THING?

MICROSOFT LAYS OFF 18,000 PEOPLE BUT THAT IS A GOOD THING?

I really couldn't resist this one. Microsoft has virtually no competition and seems to just print money. Now they are laying off 18,000 people, a staggering amount. But this article takes a very positive look at the possible result of this, and it is very interesting. Once freed from the large corporation, many of the Microsoft alumni have gone on to start successful companies. The thought is that this could really invigorate that area in Seattle, with talent spreading out and doing all kinds of good things. But why is Microsoft doing this? I have a personal story here that I think is quite applicable. Over a month and a half ago I started getting messages saying that my Office product was going to expire and that I had to call them to renew my product key. On June 4th I did that, paying them $99 for the privilege. Since that date I have been unable to use my Microsoft Outlook, having to rely on web mail (thank you Google!). After all this time they still haven't fixed it, takes 20 minutes at least to leave them a message and they missed 6 consecutive call back appointments in a row. After all this, they sent me a survey to see how the service was. After giving them the lowest scores in history and trying to email them, I have had no response. So maybe they just have too many employees to do things, even the most basic, correctly. Every person I spoke to from there, and I spoke with at least 12 people over that time, was from India. Given that they work on much lower salaries than the American workers, it is not surprising that there were no layoffs for their Indian personnel. They work on that time zone, not the American time zone, making it impossible to deal with issues in the morning. It is hard to believe that a company this large could provide such terrible service but I can assure you it is true. The problem is still not fixed. As a consumer, there is nowhere to turn, no competitor to jump to. It is awful and really makes me want to start a company to compete with them but alas I am just a real estate broker. Hopefully someone much smarter and with more resources than me with take up that challenge and we will all benefit. As always thanks for reading and have a great day.