West Palm Beach, Fla. – NAI/Merin Hunter Codman, Inc., Palm Beach County’s leading commercial real estate services firm, is pleased to announce that Spencer S. Grossman has been elected as a Shareholder and Principal in the firm.
Mr. Grossman, a graduate of the Pine Crest School in Fort Lauderdale and Dickinson College is a 15-year commercial real estate veteran who specializes in retail investment sales and leasing. Mr. Grossman joined NAI/Merin Hunter Codman in 2010 after spending several years working with Marcus and Millichap and American Commercial Realty.
Mr. Grossman has consistently been a top producer throughout his time at NAI/Merin Hunter Codman and was named the firm’s Broker of the Year in both 2012 and 2014.
Mr. Grossman’s institutional clients have included C-III Capital Partners, Lone Star Funds, CW Capital, Related Group, Nuveen Asset Management and The Blackstone Group. He has also represented both landlords and tenants in retail leasing transactions with several national tenants including Chase Bank, Bank United, Dunkin Donuts, the Dollar Store, Stein Mart and AT&T. Mr. Grossman’s recent investment sales have included Square One, a 205,000 square foot Home Depot anchored retail plaza located in Stuart, the Marketplace at Hillsboro, a 112,000 square foot retail plaza located in Coconut Creek, Florida, 1425 Gateway Boulevard, a 28,000 square foot former charter school located in Boynton Beach, and the Shops at Casa Costa, the retail component of the Related Group’s Casa Costa mixed-use development, also located in Boynton Beach.
Jordan Paul, Chief Executive Officer for NAI/Merin Hunter Codman stated “We are very pleased to welcome Spencer Grossman as a Principal and Shareholder in our firm. Spencer is an extremely talented broker whose broad based knowledge of commercial real estate and the retail markets has made him an outstanding asset for our firm and his clients. Spencer’s contacts, expertise and analytical ability have allowed him to bring great value to landlords, tenants, buyers and sellers in structuring creative and complex transactions. We look forward to his continued contributions towards our success.”
Spencer Grossman stated “I’m extremely grateful for this opportunity. NAI/Merin Hunter Codman is a first class organization that is committed to all around excellence, in business and our communities, and I look forward to continuing that tradition.”
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West Palm Beach, Fla. – NAI/Merin Hunter Codman, Inc., Palm Beach County’s leading commercial real estate services firm, is pleased to announce that Director, Lesley Sheinberg has been named its’ 2016 Broker of the Year after completing 250,000 square feet in commercial transactions in 2016.
Ms. Sheinberg, a 20-year commercial real estate veteran, specializes in office leasing and investment sales for a wide variety of institutional and private equity clients including JP Morgan, Equus Capital Partners and Lionstone Investments. She is also recognized as a leading Palm Beach County medical office expert whose clients include South Florida Gastroenterology for whom she provides disposition advisory and landlord representation and ChenMed, a national primary care physician practice committed to bringing superior health care to moderate-to-low-income seniors, for whom Ms. Sheinberg provides advisory and site selection services throughout the state of Florida.
Significant 2016 transactions included her representation of the Landlord in Palm Beach County’s largest single 2016 lease transaction, the 42,000 square foot headquarters relocation of the Health Care District of Palm Beach County to Flagler Waterfront located at 1515 Flagler Drive in West Palm Beach. Other significant transactions in 2016 included the 21,000 square foot biomedical lease to Zimmer Biomet Holding’s Biomed 3i, LLC division, a global leader in musculoskeletal health, at Golden Bear Plaza, 11760 & 11760 US Highway One in Palm Beach Gardens; and the 17,000 square foot renewal and expansion of the headquarters for Jupiter Medical Center at the Jupiter Medical and Technology Park located at 1701 N Military Trail in Jupiter.
Ms. Sheinberg is an active leader in Palm Beach County who embodies NAI/Merin Hunter Codman’s commitment to service in its local community. She currently serves as a board member of the AEC Trendsetters of Florida and is a member of the PGA Corridor Association and the Palm Beach County Medical Association. Ms. Sheinberg also plays an active role for Adopt-A-Family of the Palm Beaches. A former dancer and dance and gymnastics instructor, Ms. Sheinberg is a New York native who spent five years as a commercial real estate broker in New York, specializing in tenant representation, prior to moving to Florida and joining NAI/Merin Hunter Codman in 2003.
Jordan Paul, Chief Executive Officer, of NAI/Merin Hunter Codman stated, “We are very proud of Lesley Sheinberg and the outstanding service she has provided to our clients and community throughout the years. Lesley is a tenacious, creative and resilient person who always goes the extra mile for her clients. She gets things done with a smile on her face and a positive personality that makes people want to do business with her and our firm.”
Ms. Sheinberg stated, “Grateful, summarizes my reflection on 2016. I am grateful for the outstanding clients that I have had the opportunity to help and I am grateful to work for a company like NAI/Merin Hunter Codman, a full service commercial real estate company that is dedicated to serving its community and who provides me with all of the tools and resources needed to allow me to advise and service clients, not only locally, but worldwide.”
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PRESS RELEASE: NAI/Merin Hunter Codman Completes $18,525,000 Sale of Palm Beach Gardens Office Building
Neil E. Merin, SIOR, CCIM, Chairman of NAI/Merin Hunter Codman represented the Seller, Admiralty Acquisition Co. LLC, in the sale of the 80,300 square foot, 10-story office building to Dr. A. John Merola, of Jupiter, Florida, who was represented by Summit Commercial Real Estate Group of Syracuse, New York for $18,525,000 ($231 per sf).
The Seller, an entity formed by Ray Celedinas of Celedinas Insurance Group and local investors, acquired the property in September of 2013 from a CMBS trust that had foreclosed on the property. At the time of acquisition, the property was just 21% occupied after losing a number of tenants including homebuilder Taylor Woodrow and Fifth Third Bank during the real estate downturn.
Upon acquiring the property, Celedinas Insurance moved its headquarters to the building and hired NAI/Merin Hunter Codman as property manager and leasing agent. Over the past three years NAI Merin Hunter designed and implemented a capital improvement and marketing program that resulted in increasing occupancy at the property to its current 99% occupancy level with a high credit quality tenant roster that includes Celedinas Insurance Group, A Marsh & McLennan Agency, Pulte Homes, the US Army Corps of Engineers, the Scott Harris law firm and GAI Consultants.
Jordan Paul, Chief Executive Officer of NAI/Merin Hunter Codman stated “Neil Merin and Jason Sundook did an outstanding job in overseeing the renovations, rebranding, and re-tenanting of this project. We are very happy to have helped our client create significant value and turn 4400 PGA into a premier property on the PGA corridor.”
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West Palm Beach, Fla. – NAI/Merin Hunter Codman, Inc., Palm Beach County’s leading commercial real estate services firm, is pleased to announce that it completed Palm Beach County’s largest office lease transaction for the year 2016. In December of 2016 the Health Care District of Palm Beach County signed a 7.5 year, 42,000 square foot lease at Flagler Waterview located at 1515 N Flagler Drive, West Palm Beach. Chairman of NAI/Merin Hunter Codman, Neil E. Merin, SIOR, CCIM represented the tenant. Mr. Merin along with Director, Lesley Sheinberg, NAI/Merin Hunter Codman’s Broker of the Year, and Commercial Associate, Matt Hedrick represented the Landlord, 1515 Flagler Property LP. The lease represented a strong end for a record year in which NAI Merin Hunter Codman completed approximately 1,000,000 square feet in lease transactions and over $250,000,000 in sales.
The Health Care District of Palm Beach County, an independent taxing district, is a safety-net health care system formed in 1988 when residents voted to create a healthier community. The Health Care District of Palm Beach County provides an array of health care services, such as a nationally-recognized Trauma System, a School Health program with registered nurses in nearly 170 public schools, health coverage programs for eligible, uninsured residents, an acute care hospital, a skilled nursing facility, and the C.L. Brumback Primary Care Clinics. Currently located in Palm Springs, the Health Care District of Palm Beach County retained NAI Merin Hunter Codman Chairman Neil E. Merin, SIOR, CCIM and his team to represent them in identifying and securing a new headquarters space. The Health Care District of Palm Beach County will be moving their headquarters to Flagler Waterview in the summer of 2017.
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West Palm Beach, Fla. –– NAI/Merin Hunter Codman, Inc., Palm Beach County’s leading commercial real estate services firm, is proud to welcome the return of local commercial real estate expert Barbara LeBrun, SIOR as Managing Director. Ms. LeBrun started her commercial real estate career in 1986 alongside industry expert and Chairman of NAI/Merin Hunter Codman, Neil, E. Merin, SIOR, CCIM.
A lifelong resident of the Palm Beaches, Ms. LeBrun has an unparalleled local market insight making her a local industry leader. Ms. LeBrun is a member of the Society of Industrial and Office Realtors (SIOR), was twice recognized as NAI Merin Hunter Codman’s Broker of the Year and is rated a Power Broker by CoStar. She is also Founding Member and Immediate Past President of CREW (Commercial Real Estate Women) Palm Beach, and a 2015 graduate of Leadership Palm Beach County. Throughout her career Ms. LeBrun has served on numerous boards and is currently on the Board of Families First of Palm Beach County. Ms. LeBrun has represented clients such as, JP Morgan Chase, TA Realty LLC, and the American Red Cross.
Jordan Paul, CEO of NAI/Merin Hunter Codman stated, “We are very honored to welcome Barbara [LeBrun, SIOR] home to NAI/Merin Hunter Codman. Barbara’s level of integrity, professionalism and experience makes her a first-choice for our institutional and private sector clients requiring office and industrial expertise.”
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We hope you and your family had a fantastic Thanksgiving! Our REAL Leaders were happy to have been a part of two different Thanksgiving volunteer events in our community leading up to the big day. On November 19th a group joined with the Urban League of Palm Beach County to distribute turkeys and boxed meal items to feed over 750 families in the community. MHC also helped raise more than $4,100 to assist in the purchasing of food for that amazing event.
On November 23rd another group of REAL Leaders participated in the Big Heart Brigade and Christ Fellowship Thanksgiving Outreach which prepares and distributes over 75,000 individual meals for needy ones in our community. Our group carved enough turkeys to be included in 900 individually packaged meals.
It’s so rewarding to make an impact in our community, especially during the holidays when so many families are in need. We’re looking forward to our next holiday volunteer event with Adopt-a-Family of the Palm Beaches!
West Palm Beach, Fla. – It has been a busy few months for NAI/Merin Hunter Codman. Since June of this year, Palm Beach County’s largest privately held commercial real estate services firm has represented buyers and sellers in approximately $250 million of commercial real estate sales. The investment properties included office, retail and multifamily properties and ranged in size from just under one million to over seventy million dollars.
NAI/Merin Hunter Codman’s Investment Sales Team led by Chairman Neil E. Merin, SIOR, CCIM, Capital Markets Specialist Christian J. Johannsen, CCIM, Retail Specialist Spencer Grossman and Multi-Housing Specialist Wendy Pierre, CCIM, facilitated almost a quarter billion dollars of investment sales transactions representing a variety of institutional and private equity clients. NAI/Merin Hunter Codman accomplished its clients’ goals over what is normally a sluggish summer period in a year which has been notable for a nationwide slowdown in investor demand. In several cases NAI/Merin Hunter Codman’s Capital Markets team was also able to assist its clients by arranging financing for the properties. The firm which also manages and leases approximately 5 million square feet of office, retail and industrial property throughout Palm Beach County has established itself as one of Palm Beach County’s premier investment sales brokers.
Jordan Paul, Chief Executive Officer of NAI/Merin Hunter Codman stated, “Florida, in general, and Palm Beach County, in particular, have continued to be very attractive investment targets in a year where we have seen investors pull back due to economic and political uncertainty. Notwithstanding that perception, our area has benefitted from steady growth in rental rates and absorption along with positive demographic trends that should allow that growth to continue. We are very pleased that our team has been able to effectively convey all that is positive about Florida and Palm Beach County on behalf of our clients. We have a diverse and experienced group of brokers who have done a tremendous job this year representing our clients on a wide variety of investment sales. Our team has combined our market knowledge with the access we have to investors worldwide through our affiliation with the NAI Global network, which has over 375 commercial real estate offices located throughout the world, to provide our clients with an extraordinary level of exposure and outstanding transaction executions for their commercial properties.”
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Please enjoy an excerpt from the Fall issue of The Linneman Letter by Dr. Peter Linneman, PhD, Chief Economist for NAI Global and Principal of Linneman Associates. Mr. Linneman will also be the featured speaker of the upcoming 2017 NAI Florida Forum.
“How “at risk” are different property investments to an economic downturn? To address this question, we examined a variety of simplified investment profiles. Specifically, we simulated the returns for an 8-year hold period for 3 hypothetical multifamily investments: a class A property with a low yield and high NOI growth in a Gateway market (“Gateway A”); a class A property with a mid-range yield and medium NOI growth in a secondary market (“Secondary A”); and a class B property with a high yield, but low NOI growth, in a tertiary market (“Tertiary B”). We chose to model multifamily because of the simplicity of mark-to-market rents, though our insights can be generally applied to other property types. Each investment is analyzed for a Base Case with constant (but different for each property) NOI growth. For all investments, we assume a purchase price of $100 million, cash flow margins of 83% of NOI (reflecting on-going capex), and exit transaction fees of 3%.
The Gateway market A investment has a going-in cap rate of 4%, NOI growth of 4% per annum for 8 years, and an exit cap rate of 4.5%. The Secondary market A investment has a going-in cap rate of 6%, NOI growth of 2.5% per annum, and an exit cap rate of 6.5%. The Tertiary market B investment has a going-in cap rate of 7.5%, NOI growth of just 1.5% per annum, and an exit cap rate of 8%. For each property, we overlay 3 leverage scenarios: no leverage, 50% LTV, and 75% LTV. This yields a total of 9 “Base Case” scenarios. In both the 50% and 75% LTV scenarios, we assume 10-year debt with a 3.5% interest rate and 30-year amortization.
We also simulated how returns and (interest and debt) coverage ratios are affected by reduced NOI growth due to a cyclical downturn. We refer to these 9 scenarios as the “Realistic” scenarios, as NOI never grows smoothly upward forever. These scenarios assume -6% NOI growth in years 3 and 4 (that is, an aggregate 11.6% NOI decline spread over 2019 and 2020) of the investment horizon. Thereafter, the originally modeled growth rates resume through year 8. In total, we simulated 18 investment scenarios and their corresponding return profiles: 3 different investments, with 3 leverage ratios and 2 economic environments.
While highly simplified, this analysis is fairly realistic and provides insights on the impacts of leverage, property type, and the economy. As to leverage, as long as original pro-forma growth occurs, increased leverage increases both the equity IRR and the equity multiple. For example, the Gateway A property generates an equity IRR of 5.2% with no leverage, 6.3% with 50% leverage, and 8.5% with 75% leverage, while the equity multiple increases from 1.4x to 1.6x to 2.0x over the 8 year hold.”
CLICK HERE to read the full excerpt.
We were honored to host the BDB’s Commercial Real Estate Professionals Round Table on Tuesday, October 11th at Flagler Waterview in West Palm Beach. Flagler Waterview is located at 1515 N Flagler Drive and presents tenants a one-of-a-kind opportunity to enjoy Class-A office space with stunning Intracoastal views, complimentary valet parking, a free tenant parking garage, 24/7 security and an on-site Walgreens pharmacy.
The topic was “Trends in the Market Place” and featured panelists Rex Kirby (Verdex Construction), Tammy O’Rourke (Glidden Spina), and Ignacio Reyes (Leo A Daly Architects). Cheri Pavlik (Leo A Daly Architects) served as the panel moderator. Overall, the panelists agreed that new office space is trending towards more common areas like communal kitchens and employee lounges, enabling the SF per person to reduce as more employees work in these collaborative and common spaces vs. traditional individual offices. Another noted item was the increase in demand to repurpose industrial warehouses in urban areas for professional office and retail users. Ignacio Reyes noted that the increase in technological capabilities will shift how employers and employees work, especially with the boost in telecommuting and public transportation like Uber, which could eventually affect space needed for parking as fewer workers will be using their personal vehicles.
We look forward to seeing how these innovative and modern trends influence new workspaces locally and across the world.
CLICK HERE for more information about the BDB.
CLICK HERE for more information on leasing space at Flagler Waterview.
PRESS RELEASE: Palm Beach Garden’s Newest 63,500 SF Office Technology Complex, Gardens Innovation Center, Breaks Ground
West Palm Beach, Fla. – NAI/Merin Hunter Codman, Inc., Palm Beach County’s leading commercial real estate services firm, is proud to announce their latest assignment, Gardens Innovation Center. This Palm Beach Garden’s 63,500 square foot office and technology complex features ‘green’ eco-friendly construction with innovative and modern architecture situated within the convenient and prestigious PGA National Commerce Park, located on Hiatt Drive and Northlake Boulevard. The developer, LRP Properties II, LLC retained NAI/Merin Hunter Codman to lease the center and KAST Construction to build the project. Groundbreaking commenced in July 2016.
Gardens Innovation Center’s two professional office buildings are poised to attract the finest professional office users, as well as leading technological, bioscience and life science firms. Innovative, resourceful, and cost effective energy-efficient details were at the forefront of the design process. Eco-friendly architectural, construction and aesthetic features will be found throughout the center, as both buildings will apply for LEEDs certification. The center offers users large flexible floor plates in both the two-story, 37,500 square foot building and the 26,000 square foot, one-story building. If convenience is at the top of your wish list, Gardens Innovation Center can be found nestled within PGA Commerce Park, minutes from the Florida Turnpike, I-95 and the area’s finest amenities, including PGA National Resort. Meticulous site selection and workspace planning contribute to the success of employees and businesses. Gardens Innovation Center is designed to lead, collaborate and inspire tenants.
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