Current media coverage and upcoming developments hand-picked from the industry.

Cheesecake_Lincoln_Road

Cheesecake Factory inks lease on Miami Beach’s Lincoln Road

THE REAL DEAL- February 22, 2022 BY KATHERINE KALLERGIS The Cheesecake Factory inked a lease on Miami Beach’s Lincoln Road in the former Sushi Samba space, The Real Deal has learned. The publicly traded Cheesecake Factory, based in Calabasas, California, plans to open this fall at 600 Lincoln Road, according to Terranova Corporation Chairman Stephen Bittel. The restaurant group signed a 20-year lease, with renewal options, for the 7,000-square-foot corner space. It’s expecting to secure a building permit soon for an extensive interior buildout and could open in the fall, he said. Second-generation restaurant spaces, meaning they have built out kitchens and grease traps, have been in high demand over the past year throughout the region. “After really a treacherous 2020 in the restaurant business, restaurants have experienced a remarkable recovery in markets like South Florida that have been wide open the whole time,” Bittel said. Sushi Samba closed in December 2019, just before the pandemic began. Terranova owns the property with Morgan Stanley’s Prime Property Fund. A Terranova affiliate paid $108.6 million for the property with two addresses at 600 Lincoln Road and 1630 Pennsylvania Avenue in 2014. The building was completed in 1931.

Bittel said the negotiations with Cheesecake Factory “took a significant amount of time.” He declined to disclose asking rent and final rent. Blatteis & Schnur represented the restaurant. “We all had needs to be met in the document, so this was not a quick deal,” Bittel said. Cheesecake Factory expects to lease outdoor space from the city of Miami Beach for outdoor dining in front of the restaurant, Bittel said. The restaurant, known for its expansive menu, could hire about 200 employees. Bittel said that retail leasing, led by restaurants, is up on Lincoln Road. “We’re returning it to the glory that it experienced before the convention center closed [while it was being renovated],” he said. The high street retail corridor has experienced significant vacancies in recent years due in part to high asking rents that only national tenants could afford, brokers and tenants say.

In 2020, the independent local book store chain Books & Books closed its Lincoln Road store after more than 30 years of a presence on the street. But since the short-lived lockdowns were lifted, there’s also been a surge in investment sales of properties surrounding Lincoln Road. Two office buildings north of Lincoln Road on Meridian Avenue recently sold for $27 million and nearly $50 million, respectively. In August, Witkoff bought the retail building at 1681 Lenox Avenue for $15.4 million. It’s leased to the restaurant Yard House, which is owned by Darden Restaurants.

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Mindy McIlroy, President of TerraNova Corp.

Before Blaming Your Workplace, Look in the Mirror and Make Sure You’re Not the Problem

DAILY BUSINESS REVIEW – February 21, 2022 BY MINDY MCILROY

When anyone blames their workplace environment for getting in the way of their success, I often ask them to consider a possibility that most people have a hard time suggesting: “Look in the mirror first and make sure you’re not being your own worst enemy.” It’s always easier to go the politically correct route of automatically agreeing with anyone seeking to cry on our shoulders as they blame others for their career issues, but the fact is, there’s a likelihood that this approach may be doing them a huge disservice.

While there is no doubt that there are occasions when the environment does get in the way, and some women and men suffer all sorts of serious discrimination, bias and workplace challenges, a lot has already been written about those cases. This article is not related to those cases. Specifically, I want to share my personal experience and insights on the countless other cases that are reported on less frequently, a good number of which I’ve personally witnessed firsthand throughout my career. I’m speaking about perfectly qualified people who, for a variety of reasons, are the only thing standing in the way of their own progress and they blame others rather than look within themselves.

My life’s experience is a great case in point. I started my real estate career as the executive assistant to a man revered as one of the commercial real estate industry’s smartest and toughest businessmen. By virtue of my hard work, determination and desire to learn and grow professionally, I received multiple promotions over the years and today lead his company, which today has a $1 billion investment portfolio.

In my experience overseeing all day-to-day operations for Terranova’s diverse retail portfolio and personally completing over $1 billion in retail leasing transactions, and most recently as the company has transitioned to become an opportunistic alternative investment firm in dynamic industries as life sciences, technology, health care, petroleum and agriculture, I have seen and learned a lot. Most notably, I have acquired an in-depth understanding of how the attitudes we choose can determine our destinies. One person can walk into a room and dominate the room, while another similarly situated person can feel threatened and uncomfortable in that room. I am passionate about this topic out of my desire to help mentor and guide people, since there are so many good people not living at their full potential and not aware of the cause of the problem or how to fix it.

So, how did I achieve my leadership role? It wasn’t luck, and no one sprinkled magic dust on me. It was hard work, perseverance, grit, and focusing on the goal without getting emotional about any deal. It was about having poise under pressure and being ready to stand my ground, articulate my points and, when necessary, respectfully contradict even the most intimidating of personalities. And, notably, these allegedly tough executives usually ended up agreeing with me.

It’s unfortunate that today’s litigious workplace environment has made people so overly sensitive to these issues that discussing these topics can make us targets for allegations of everything from insensitivity to discrimination. Yet, despite the risk of all this, I will share some guidance that has taken me a lifetime to learn:

  • Find a good mentor. In my career, I’ve been fortunate to count on mentors such as Terranova’s CEO Stephen Bittel, as well as my predecessors Trish Blasi and Beth Azor, who were both Terranova presidents. Find a mentor who’s a warrior—someone who keeps it real, motivates you, and doesn’t only say what you want to hear. A good mentor will “say bad stuff to your face, and good stuff behind your back.” A good mentor will have proven ability to survive and thrive in the same corporate environments in which you are seeking to play.
  • Focus on the solution, not the problem. I don’t even like to use the word “problem,” because in my view, it’s just a “situation telling us what to do next.” Behind any obstacle there are opportunities, and it’s wise to take on the mindset of a hunter, focused on finding and seizing the bright spots in any environment.
  • Pay it forward. Whatever you are doing, whether you’re answering the phone or entering an elevator, make sure to understand who you’re dealing with, and what you can do to help them. Never hesitate to help anyone around you. I’ve found that life takes unexpected twists and turns, and people always give preferential treatment to those who always treated them well even from the infancy of their careers. This has always been a strong part of Terranova’s DNA, with Stephen leading by example by generously donating his personal time, talents and treasure to help our team and community.
  • Have the right mindset. As someone living with a disability (Parkinson’s), I know firsthand that mindset is everything. There are many days when I could have chosen to stay in bed with a victim mentality, feeling sorry for myself and blaming the world. Yet, I rose to the occasion and never let my condition stop me from getting stuff done. Indeed, the lens through which we choose to see the world determines our ability to properly identify and seize opportunities before us. Therefore, choose your lens carefully because it will determine your destiny. This also applies to your workplace in general—I’ve seen some people succeed in the same workplace that others have claimed was toxic. It’s the reason some people can work extremely well with one person, while others find that same person difficult or impossible to work with. It’s important to be comfortable feeling uncomfortable, because the road to personal growth and success requires it. Oftentimes, we have adverse reactions to people as a result of our own fears and insecurities, and in those cases, avoiding those situations we cause us to miss out on learning valuable lessons. Rather than run from situations that scare us, we should ask ourselves why we are having those reactions, and then run toward them and face them. Many times, that’s exactly where the best opportunities for growth and success are awaiting us!
  • Read! Stay on top of your industry’s trends but also read things that challenge and inspire you personally. Choose your reading carefully though. I’ve found many so-called self-help books come from a victim mentality and can do more harm than good. Never been a fan of phrases like “Girl Power,” which I find silly since we shouldn’t need to remind anyone that we are powerful or that our power is related to our gender. Focus on books that remind you of all the power you have to shape and determine your future. I’ve always appreciated practical business books like ”First, Break all the Rules,” and more recently, enjoyed reading “Untamed.”
  • Don’t take anything personally! The less emotion we have in business, the better. In fact, in any confrontation or negotiation, the most emotional party tends to lose. Leave your ego at the door and focus on working collaboratively to get the job done. If you haven’t already, you must read “The Four Agreements!”
  • Come from passion, not fear. When we come from passion, we are tapping into our highest energy vibration, and we are focusing our efforts on achieving our goals rather than protecting ourselves from imaginary demons. I often compare it to riding a bike—keep your gaze fixed steadily on the path where you “do” want to go rather than on the obstacles or distractions along the road. If you stare at the obstacles, you’ll steer your bike straight into them!
  • Be ready for confrontation. Confrontations are often necessary to get to the next stage of any relationship. It’s never comfortable or pleasant, but you have to do it. Get comfortable being uncomfortable and facing tough conversations from a place of faith that everything will work out as it should, since you are doing your best and coming from a place of power rather than weakness.

Again, I’m not suggesting that anyone should ignore situations of legitimate discrimination or wrongdoing. I’m merely suggesting that we always ask ourselves, before drawing any conclusions, whether we are seeing things through a clear lens and not mischaracterizing situations or missing opportunities due to our own limiting beliefs. Indeed, when we operate from a place of power rather than fear, and when we respond rather than react, we put ourselves in the best position to achieve our goals.

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South Florida Real Estate Transactions Like ‘Adult Game of Monopoly,’ But the Economy is Giving Investors Pause

DAILY BUSINESS REVIEW – January 26, 2022 BY MELEA VANOSTRAND South Florida real estate transactions are off to a good start in 2022, evidenced by an announcement from Terranova Corp. that it has completed over a dozen capital markets transactions totaling over $230 million so far this month. 

That exceeds typical activity, according to Terranova’s chairman Stephen Bittel.

“I feel incredibly fortunate that I get to, in my career, play the adult game of Monopoly. That’s incredible fun, we make a lot of money at it, and it enables us to take our profits and do good in our communities,” Bittel said.

However, although Bittel said he believes there’s a lot of room for growth, the overall state of the economy might cause people to rethink asset values due to rising interest rates, increasing inflation and a lack of policy coming out.

“I think there are a lot of things going on that have given investors pause and I think, as earnings begin to be released this week for year-end, I think we’ll see underperformance by retailers reflecting less in consumer confidence. We’re very much a consumer-driven economy,” Bittel said. “Supply interruptions are causing everything to go up.”

Terranova recently announced an affiliate closed on a $40 million refinancing of Palm Plaza shopping center in Miami Lakes. The deal, with Puerto Rico financial services company Banco Popular, pays a loan and provides capital for future growth.

The building is undergoing a $1.3 million renovation with new landscaping, a parking lot and landscaping. The last remodel was 19 years ago. The 90,621-square-foot retail building is 95% leased. The retail center houses tenants who produce some of the top 10% highest-grossing sales in the country. These include CVS, Sketchers and Starbucks. 

“We signed both of them through long-term renewals, which stabilized the revenue stream from that property for the next 20 years,” Bittel said.

Restaurants Recovering After ‘Terrible Year’

The leasing of restaurant space at Terranova is at 100% and rates are more than what they were pre-pandemic. Bittel said that’s a sign of the continued growth of South Florida.  

“Restaurant sales in 2021 exceed in South Florida the levels achieved by those same tenants in 2019. 2020 was a terrible year. The tenants that figured out how to do a takeout and delivery business while at the same time taking advantage of the outdoor sun have come back stronger than anyone could’ve imagined,” Bittel said.

Coral Gables is becoming a go-to place for meals at any time of the day, according to Bittel. 

“They expanded outside, they gave the people the outdoor dining they wanted, and we’ve leased up 100% of our available restaurant space,” Bittel said. 

Although there are some bright spots in many real estate markets, retailers—especially older retailers—continue to hurt. 

“Kmart just has an older model and they didn’t update their offerings, so they’re suffering.  Walmart and Target have plenty of history, but they’ve done a great job of modernizing and creating an online presence and changing the offerings in their stores,” Bittel said. “I think we’re going to see a lot more high-end, organic supermarket options in South Florida, like crazy.” 

Migration Wave Hasn’t Finished 

Bittel said he suspects migration to South Florida will continue, reasoning the first wave of people were company leadership, while the rest will be the second level of senior leadership seeking proximity to top leaders. Bittel said South Florida will also likely continue to see more out-of-market restaurants migrating.

“Institutional investors in real estate are heavily focused on industrial and multifamily. The multifamily serves the incoming population, and industrial serves the growing base of distribution both for e-commerce, as well as Central and South America and the Caribbean,” Bittel said. 

With multiple transactions, including the $22 million sale of Terranova’s headquarters building on 41st Street, $55 million refinance of its portfolio of properties along Coral Gables’ historic Miracle Mile and the recent $6.8 million acquisition of 93 Miracle Mile, Bittel said he’s excited to see what other opportunities come Terranova’s way as the year continues. 

“It’s our core business that we’ve done for 40 years,” Bittel said. “We try to buy high-quality, long-term assets.”

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