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

Stephen Bittel Maneuvers Terranova Through a Post-Pandemic World with $55 Million Refinance of Coral Gables Properties

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THE AMERICAN REPORTER – December 21, 2021 BY JENNIFER ROSS
The coronavirus pandemic and subsequent lockdowns brought about unprecedented changes to practically every industry. While the economic cycle has shown that over time it is to be expected that there will be periods of growth followed by periods of recession, the abrupt and sweeping shutdowns across nearly every country and sector made an impact unlike any we’ve seen before. As we round the corner on two years since COVID-19 first came into our radar there are still many unknowns as to what shape the future will take. Will outdoor dining be a part of our future forever? Will air travel ever be as simple as it once was? Is remote work the new normal or will there be a hybrid model?

The future of commercial real estate will inevitably be affected by the answers to all of these questions, and for Stephen Bittel this has meant maintaining a delicate balancing act. As chairman of the South Florida commercial real estate company Terranova Corporation, Bittel has acknowledged that work must be done to simultaneously sure up operations and finances while still remaining flexible and open to take advantage of any opportunities that may arise. It may feel safe for many business owners during times of economic downturns to simply seek shelter and wait there to weather the storm, but Bittel has recognized throughout his four decades of work within commercial real estate that times of uncertainty can also be advantageous if one knows how to react.

Case in point, Bittel’s work refinancing loans for Terranova Corporation’s urban retail properties, taking advantage of the historically low interest rates that have been available. The Miami-based company recently secured a $55 million refinance of its Miracle Mile portfolio in downtown Coral Gables, consolidating and replacing loans from three lenders on 14 properties, including 220 Miracle Mile, 300 Miracle Mile and 253 Miracle Mile. Additionally, just one month earlier Terranova refinanced its Marshalls/Lincoln Eatery building in Miami Beach with a $23 million loan, with the financing for all properties being provided by City National Bank. Bittel has said that the money will be used to repatriate some of the company’s capital, and also accommodate tenant improvements, as well as return some of its originally invested capital. While the economic damage caused by the coronavirus pandemic certainly isn’t an ideal scenario for any business owner, by seeing the time as an opportunity rather than detriment Bittel has set himself up for success.

Who is Stephen Bittel?

As founder and chairman of Terranova Corporation, Stephen Bittel is leader of one of the top commercial real estate firms in Florida. A native of Miami, Bittel was born and raised in The Sunshine State before moving up the eastern coast to attend Bowdoin College in Brunswick, Maine. Trading palm trees and sandy beaches for fall foliage and snow, he soon adapted to the initial culture shock of transitioning from a public school education to a highly selective private liberal arts school, and was able to thrive in the academically rigorous environment. During his senior year of university he applied for and was awarded the prestigious Thomas J. Watson Fellowship, a grant that enabled him to pursue a year of independent study outside of America, and Bittel spent a year traveling abroad researching the motivations behind European investment in the United States.

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Prosperous chapter for Miracle Mile? Wave of stores, dining spots coming to Coral Gables’ strip

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MIAMI HERALD – December 12, 2021 BY REBECCA SAN JUAN More shopping and dining are coming soon to Coral Gables’ historic Miracle Mile retail strip, signaling progress after years of struggle.

Nineteen new tenants are expected to open during 2022, according to the City of Coral Gables and commercial real estate developers and property managers Terranova and Kerdyk Real Estate, which own several storefronts.

The newcomers follow a trail of 15 other businesses that have crowded onto the commercial stretch since 2019. As a result of the bustling, the city reported vacancies in December dropped from about 13% to 9% year-over-year among the 114 storefronts along the four-block stretch from LeJeune Road and Douglas Road.

The activity follows a whirlwind of challenges, including two years of construction for a new streetscape, a slowdown in customers during the start of the pandemic and a robbery in late 2019.

“The streetscape project took longer than expected, chasing many customers away, and the pandemic had businesses at a standstill,” said Manny Chamizo III, global commercial director for One Sotheby’s International Realty. He owns three storefronts and manages several leases along the Mile.

“I walked the Mile in April 2020 and counted 23 vacancies and thought, ‘Oh, this is not good.’ Now I see that the Mile is almost filled up,” Chamizo said.

Lights will go on in even more vacant spaces, including for the former Ortanique on the Mile. Three eateries are exploring the restaurant space adjacent to the Actors’ Playhouse at the Miracle Theatre, Coral Gables Business Improvement District Executive Director Aura Reinhardt.

Foot traffic increased in mid-2021 as more people were vaccinated against the coronavirus and many people returned to work in nearby offices in the Miami suburb. A strong indicator its slump is over, there have been 3.4 million visitors along Miracle Mile so far this year, compared with 638,000 visitors in 2020.

Erica des Roches, owner of Veranda Plants and Gifts, opened three weeks ago.

“I live in Miami Beach. I’ve always loved Coral Gables, because it is so beautiful. I came across this little space and it is perfect,” des Roches said. “It is a good demographic. It is a wealthy demographic. They have a disposable income that they can spend on plants. There is a need here for this type of store and affordable gifts.”

Miracle Mile still has room for improvement, landlords told the Miami Herald. A slow permitting process continues to plague the city, said Stephen Bittel, Terranova’s founder and chairman. It may take six months, instead of the usual three, he said, for a business to get permits approved in order to open.

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Terranova sells Miami Beach HQ building for $22M

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SOUTH FLORIDA BUSINESS JOURNAL – December 10, 2021 BY BRIAN BANDELL Commercial real estate firm Terranova sold its Miami Beach headquarters office for $22 million and will look for new space next year.

The company sold the six-story, 51,806-square-foot office building at 801 Arthur Godfrey Road to Miami-based Fifteen Group. Terranova Chairman Stephen Bittel said his company and a sister company currently occupy about 13,000 square feet there and haven’t been leasing it out to third parties, so much of the building is not occupied.

Terranova acquired the office for $4.26 million in 2002, so it sold it for a big gain. It was built on the 22,135-square-foot lot in 1969.

“It’s a little sad that we are letting go of something that is near and dear to us,” Bittel said. “Our business plan has evolved over the years, and we just didn’t need that much space. Low interest rates and a focus on South Florida real estate has driven pricing very high.”

Bittel said Fifteen Group plans to renovate the building and lease it to third parties, which will create more opportunities to lure companies to Miami Beach. Teranova will lease space there for a year while it looks for a new headquarters.

Bittel said Terranova and its affiliates need about 20,000 square feet and are looking in Miami Beach and Coral Gables. He might purchase a larger building and lease out part of the space. He would also consider leasing.

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