VENTURE CAPITAL INVESTMENT IN FLORIDA HAS BEST YEAR SINCE 2004

VENTURE CAPITAL INVESTMENT IN FLORIDA HAS BEST YEAR SINCE 2004

I love ending a Friday afternoon with good news and this certainly qualifies! $421 million dollars was invested in 37 Florida companies last year which is twice what was invested in 2012 and the most since 2004. 

There is no reason given for the large increase, other than the fact that nationally venture capital was up 7% from the year before. There were 4% more deals than the year before as well. What is interesting is to look at the sectors where the money is being invested. $194 million went into software and half of that to a company called OpenPeak. That brings up a subplot worth mentioning since it is tied into many of the other subjects of this blog, attracting companies to the area, bringing jobs, growing the right kinds of industries here, etc. only in this case it is a retention deal. I know about it because it deals with real estate. OpenPeak has been growing rapidly and has applied for area incentives to stay in Florida. They have a ton of high paying jobs and are exactly the kind of industry anyone would want to have. They have directly threatened to relocate to California if their request is not satisfied. We know Florida has been very aggressive in trying to lure companies to the area in the past and to date. Now we will see how they deal with retaining one of those companies that is already here and thriving. It is not yet known if they are staying or leaving. Life science was next with $107 million. This category includes biotechnology and medical device companies. This is very promising to me considering the enormous investment the state made in this sector with Scripps. The hope behind that deal was that a cluster of biotechnology companies was going to come here to collocate with Scripps and build a La Jolla here that would rival California. It was an investment for the future of Florida in a growing industry that would bring good paying jobs and attract other good companies to the area. It hasn’t happened yet but it appears to have just grown by $107 million. 

While $421 million might sound like a lot of money to you and me, that represents just 1.4% of the total venture capital invested. So there is plenty of room to improve on this and with our track record of aggressively pursuing companies from outside the state, friendly taxes, and awesome weather, there is no reason to think we won’t be successful.

 It will just take some time and the improvement of the economy in general will speed that up. Have a great weekend!

Venture capital investment rises sharply in Florida

Read more here: http://www.miamiherald.com/2014/01/17/3875230/venture-capital-investment-rises.html#storylink=cpy

http://www.miamiherald.com/2014/01/17/3875230/venture-capital-investment-rises.html

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

MORTGAGES CREATING EARNINGS PROBLEMS FOR COMPANIES

So many things in the economy are intertwined. In this article we can see the results of the deteriorating mortgage sector is having on other companies earnings. As discussed yesterday, banks are seeing incredible decreases in the demand for mortgage applications, which is driving down their profits. Banks are not the only ones invested in mortgages. All of the brokerage houses morphed into banks as well and they are suffering loses from them as well. Many people’s personal wealth and financial well-being is tied to their home, and I wonder if these numbers reflect on this to some extent. Best Buy, Bed Bath & Beyond, Family Dollar and Target all posted disappointing numbers and cut back their outlook for the year after a disappointing holiday season. Now we know Target suffered losses due to the massive data breach more than anything else. That is a very scary story, and one that could be any company out there. If we don’t get a handle on cyber security it is going to be a nightmare. I see Best Buy and Bed Bath & Beyond as victims of lack of discretionary income. People just don’t need that stuff, it is a luxury, so they will do without now. Family Dollar is just getting hurt by their competitors right now, who are really outfoxing them at every turn it seems. Goldman Sachs and Citigroup were dragged down by mortgage losses, and the railroad operator CSX dropped almost 7%. 

The bond market saw yields fall on the 10 year treasury and the price went up slightly. But the good news is that over 70 members of the S & P 500 report still have not reported earning, including some big boys like Microsoft, IBM and McDonald’s. The stock market reflects economic reports and local and global currents events but you cannot react to ever shift and bump. Let’s hope that last month really was a blip and that we can keep pushing forward with economic progress in 2014. But I think this article is important to bring people back to reality. Many people are talking like all of our problems will be solved this year. It is not going to be a miracle speedy economic recovery for the U.S. unfortunately. It is going to be a slow and steady climb up, and there will be stumbles along the way as we see here. As long as we keep heading in the right direction it is to be expected. Nothing is perfect in life as we all know. I would love to know what you think. As always thanks for reading and have a safe and wonderful weekend.

Gloom Descends as Earnings Fall Short

http://www.nytimes.com/2014/01/17/business/daily-stock-market-activity.html?_r=0

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

More Falling Foreclosures!

Could we finally be turning the corner on the foreclosure nightmare? Certainly making progress and let’s hope the worst is behind us.

Foreclosure rate falls - again - across South Florida, CoreLogic says

http://www.bizjournals.com/southflorida/news/2013/12/23/foreclosure-rate-falls-again-across.html

And finally, the real story of 2014? What is going to happen with the interest rates and how will it affect the economy?

Why mortgage rates will continue to rise in 2014

http://www.bizjournals.com/southflorida/blog/morning-edition/2013/12/why-mortgage-rates-will-continue-to.html?ana=e_sflo_rdup&s=newsletter&ed=2013-12-24

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

South Florida Condo Boom!

This is the best news I have seen in some time, although it is mainly happening in Miami. That being said, traditionally development in the South Florida region starts South and goes North. So what this means is when they hit capacity it will head North and Broward and Palm Beach Counties will eventually benefit. It is very important to note that these are condo projects, not rentals. Very good sign!

Condo Boom Taking Hold in South Florida

MIAMI-While still accounting for about half of the condominium construction development that occurred in the last condo building boom (2003-2010), condo development is once again in vogue in South Florida.

http://www.miamiherald.com/2013/12/22/3830493/south-floridas-total-number-of.html

In more good economic news, looks like the economy is continuing to strengthen.

Solid Reports Bolster Hopes That Economy Is Strengthening

By REUTERS

Published: December 23, 2013

http://www.nytimes.com/2013/12/24/business/strong-reports-bolster-optimism-about-improving-economy.html?_r=0

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

ARIZONA ENDING HOMELESSNESS AMONG VETERANS?

I have been so good with my real estate related posts that I felt we deserved to get something of social importance out there. And this is big stuff too, which could end up being a model for the rest of the U.S. Phoenix is poised to become the first community to have eradicated homelessness among veterans. In 2011 there were 222 homeless veterans there (a small number, true, but the program can also be applied in cities with larger homeless populations of veterans and other homeless) and by February 14, 2014 the last of them will be in housing. In the immortal words of the Talking Heads, How did we get here? Partly through a national approach called Housing First. Unlike past programs that treated housing as a reward for good behavior, the program allows the housing which in turn allows the veterans the stability to work on the problems that made them homeless to begin with like mental illness and drug addiction which are commonplace. The program is available to veterans living on the street for over a year or who have done so 4 times over the past 3 years. The limitation of the program is affordable housing, which will be the biggest obstacle in larger cities than Phoenix. This is all part of a federal plan to end homelessness among veterans by 2015 and homelessness overall by 2020. While the Government admits it is behind schedule, there can be no ignoring the strides that have been made already. The numbers went from 76,000 homeless vets in 2010 (12% of the nation’s homeless population) to 58,000 homeless vets in 2012 (9% of the nation’s homeless population). Something else very interesting happened along the way that might fundamentally change everything. It was discovered that it costs much less, $605 per housing and services for one person while it costs $2,900 for someone living on the streets. 

Given this information, lots more resources can be redirected towards the creation of affordable housing. Lots of organizations, private, public and religious, are participating in the effort to fund this effort and it is working. The retention numbers of the vets speak volumes. It is 85% nationally for veterans placed in permanent housing after 1 year and 94% in Phoenix. I only hope all this can continue and we can take a huge step forward as a society. No more people homeless. Can you imagine that?  

Program to End Homelessness Among Veterans Reaches a Milestone in Arizona

http://www.nytimes.com/2014/01/16/us/program-to-end-homelessness-among-veterans-hits-milestone-in-arizona.html?_r=0

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

2 HOUSTON’S RESTAURANTS!

BOCA RATON TO BE THE ONLY PLACE IN ENTIRE THE COUNTRY WITH 2 HOUSTON’S RESTAURANTS??

Let me crow about my adopted home town Boca Raton for a moment. This is not just bias, it could be somewhat deserved as you will see. But first some background, which is interesting. Back in the day, there was a hip (if you were 40 and over) meat market type place called Wildflower on the inter-coastal at Palmetto Park Rd. and NE 5^th. 

This is a very prominent location since it is the entrance to the beach and there is a lot of traffic and residents in the immediate area. As things become more straight and narrow in the 90’s the City cracked down on the place and it went out of business. It is has been vacant for over 10 years. The City has tried many times to find a worthy restaurant tenant for this location, which would make it the only public waterfront dining option in over 10 miles of water front land, and it has never worked out. Well they just went through the motions again and luckily for them and the rest of Boca someone real responded. 

They are called the Hillstone Group, better known to you as Houston’s Restaurant. Although it says that they are in lease negotiations, they are talking as if it is a done deal and that they will open in December 2015. If this deal happens, Boca Raton will be the only place in the U.S. that has 2 Houston’s. If you know about their Pompano location, this makes perfect sense. That location, right on the inter-coastal in Pompano Beach, is supposed to be the highest grossing location in the country. This opportunity has the same potential. There will not be enough parking (105 spaces for the restaurant and 20 for the public) and it will become a traffic nightmare but it is great news for Boca! Maybe it can even breathe some life into the rest of the retail on Palmetto Park Rd. East of Federal which has long been littered with vacancies.

Boca gives the green light for prime waterfront restaurant

http://articles.sun-sentinel.com/2014-01-15/news/fl-boca-wildflower-go-ahead-20140115_1_waterfront-restaurant-banana-cream-pie-boca-raton-city-council

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com

Banks becoming wary

Here is a great look at some numbers from banks regarding mortgages. This directly relates to the housing market and its health.

As Refinancing Wanes, Banks Are Wary of New Loans

http://dealbook.nytimes.com/2014/01/14/as-refinancing-wanes-banks-remain-wary-of-new-loans/?ref=economy&_r=0

Orin Rosenfeld

President

Rosenfeld Realty Advisors

9858 Glades Rd. Suite 209

Boca Raton, FL 33434

Phone: 561-756-1665

Fax: 561-470-0707

Web: www.rosenfeldrealtyadvisors.com