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🚆 Brightline Rail, New Angeline Update & Tampa's Leading the Nation

🚆 Brightline Rail, New Angeline Update & Tampa's Leading the Nation

These are a few major things happening in Pasco County and in the Tampa area you might want to know about.

Sean Bates
June 01, 2023

Happy Thursday!

🌧️ The summer market is heating up with multiple offers in some market, while the weather is also looking more like Florida summers… Rain. Rain. And more rain.

The talk of the market is the debt ceiling…

Even though the news is looking better, it won’t affect real estate that much because of the current state of the market.

Tampa as a city is more resilient because of migration and desirability. And the updates today will only strengthen the future outlook of Tampa Bay.

— Sean

🚆 Florida Brightline Rail On Track for New Ownership

Driving the news: Abu Dhabi's sovereign wealth fund, Mubadala Investment Co., is set to acquire over 90% of Tokyo-based SoftBank's equity in Fortress Investment Group, the parent company of South Florida rail operator Brightline.

As a result, Mubadala will gain a 70% majority stake in Fortress, with the firm's management retaining 30% equity.

Financial terms are undisclosed, but estimates place the value of the deal between $2 billion and $3 billion.

Why it matters: Florida is becoming more New York-ey every day: not unlike New York City, proximity to public transportation is fueling real estate valuation and demand.

Brightline - the privately owned and operated rail service, opened stations in Miami, Fort Lauderdale, West Palm Beach, Aventura, Boca Raton and soon Orlando - reported a 68% increase in ridership in March of 2023, compared with the same month in 2022 also fueled by adding stops.

Now home sellers can command higher prices for proximity to the transportation system.

Property values near the station were up 83% in price over that period, compared with a 38% median increase for the Miami area. So the Brightline will play a major role in increasing property values throughout the state as they expand.

The big picture: This deal comes on the heels of SoftBank's struggles with record losses, prompting the decision to offload its stake in Fortress.

However, Brightline's leadership will remain unchanged, and its ongoing projects are unlikely to be affected.

Go deeper: Fortress Investment Group took over Brightline in 2007 as part of a $3.5 billion acquisition of Florida East Coast Industries, Florida's oldest and most extensive commercial real estate and transportation company.

Under Fortress's management, Brightline secured billions in debt financing to bolster its rail expansion, with Chicago-based Nuveen owning 75% of this debt.

Zoom in on the numbers: Brightline's prospects seem promising, with a 61% YoY increase in ridership reported in April.

Total ticket revenue for the year has risen 116% to $15.4 million, suggesting that the rail service's expansion could pay off in the long run.

What's next: Brightline's expansion from Miami to Orlando is set to be complete this summer, and the firm expects its annual long-distance ridership to reach 4.3 million.

Tampa is in the cards as a future expansion destination, indicating Brightline's ambitious growth plans.

What they're saying: Despite the optimistic numbers, some investors are still divided over the company's prospects. Nuveen's Managing Director, Ryan Rosberg, voiced this dichotomy, stating that the company's bonds are viewed as a potential "complete failure" by some, while others believe in its success.

Bottom line: This acquisition marks a significant turning point for Brightline as it embarks on its ambitious expansion plans in Florida.

The impact of the change in ownership and the company's ability to fulfill its growth targets will be crucial factors to watch in the coming months.

⛑️ Officials Tour The Angeline Site in Pasco County

The mixed-use community of Angeline in central Pasco County is set to become a landmark destination, housing the innovative Moffitt Cancer Center complex.

The recent tour by company leaders, including founder H. Lee Moffitt, CEO Dr. Patrick Hwu of Moffitt Cancer Center, and key figures from Metro Development Group and Lennar Central Florida, marks a crucial step towards bringing the ambitious project to life.

What’s happening: Situated east of the Suncoast Parkway and south of State Road 52, Angeline spans 6,200 acres. A central 775-acre parcel that is larger than downtown Tampa is earmarked for Moffitt’s future research and corporate innovation district.

The first phase: Moffitt's first phase includes a 128,000 square foot corporate business park, projected to generate around 430 full-time jobs for the area. This phase marks the first of many ambitious steps.

The Big Picture: Beyond the corporate district, Angeline's vision extends into the broader community. The masterplan encompasses a variety of homes for an estimated 30,000 new residents, a 150-acre regional park, a Crystal Lagoon and beach, and a vibrant village center featuring restaurants and retail.

Remarkably, over half of Angeline's acreage will remain as natural, undeveloped green space, featuring a potential trail network of up to 100 miles.

What they're saying: "Touring the Pasco campus for the first time only solidified how incredible this endeavor will be," said Dr. Hwu, echoing the excitement felt by the key stakeholders involved. Emphasizing the scope of the project, he added, "We foresee a first-of-its-kind campus with patient care, research, biotech, wellness, digital innovation, and ultimately cures."

Why it matters: The Moffitt-Angeline project represents a new age of community development where living, working, and healthcare seamlessly integrate.

The project solidifies Pasco County as a burgeoning hub of biotech and medical research.

What's next: As the project advances, stakeholders and residents of Pasco County can look forward to regular updates, beginning with the specifics of the first phase and potential partner companies for the Moffitt facility.

🏘️ Tampa Leads The State in Home Sales

In 2022, Tampa Bay experienced a 16% drop in single-family home sales, according to data released by Florida Realtors. Despite this decrease, Tampa continued to lead the state's real estate market.

The Numbers:

Single-family home sales in the Tampa Bay area fell by 16% in 2022, with total sales recorded at 75,801 homes, compared to a record 89,809 homes in 2021.
In Q1 2023, the downward trend persisted, with a 19% drop in single-family home sales compared to the same period in 2022, representing nearly 4,000 fewer homes sold.
Tampa-St. Pete-Clearwater MSA witnessed the most substantial decrease at 21%, yet still outperformed the state average, which saw a 22% reduction.
Despite the fall in numbers, Tampa MSA remained the largest metro for home sales in Florida, with 9,490 homes sold in Q1 2023.
The three local MSAs accounted for approximately 27% of all homes sold in Florida during the first quarter of 2023.

Why it matters: Despite the decline in sales, Tampa's performance against the statewide trend reveals a very resilient housing market.

💸 Curb appeal = ROI

If you're planning to sell your home in the future, you should be paying attention to your home’s outdoor appeal.

The small exterior details can make a big difference for potential buyers. The right enhancements not only elevate your home's attractiveness but also contribute to a higher return on investment if you decide to sell.

Ways to improve your home’s curb appeal:

Make your yard more functional: A yard with multiple "zones" for entertainment, exercise, and gardening can significantly increase home value, says Jessica Poulos, an expert from Better Homes and Gardens Real Estate Northwest Home Team.
Attach an outdoor living space: According to a survey from Rocket Homes, an attached outdoor space, like a deck or porch, can add almost $20,000 to home value.
Simplify your landscaping: Low-maintenance plantings are more appealing to most buyers. Use plants that are local to the Tampa area and won’t require a lot of upkeep. Regular maintenance tasks like mulching and weed pulling keep the landscaping neat and manageable.
Spruce up the siding: Repair cracks, missing pieces, and surface chips on your home's siding. A pressure wash can refresh the look of your home without a new paint job.
Dress up your front door: A fresh coat of paint, new door handle, and stylish door numbers can make the entrance memorable and welcoming.
Repair your windows: Small window damages can hint at more significant problems with your home. Reassure potential buyers by fixing caulking, glazing, and replacing damaged windows.

These simple projects, if well executed, can ensure a good first impression without requiring a complete exterior overhaul. And if you're not ready to sell yet, these improvements can be enjoyed in the meantime while also building equity.

Bottom line: The exterior of your home can significantly impact its value. So, whether you're planning to sell or not, investing in these outdoor updates can yield high returns in the future.

📊 Our Local Markets:

In some micro-markets here in Pasco, Hillsborough & Pinellas, multiple offers are back… inventory is tight, and buyers are returning for the summer.

The heating up market will be interesting to see now that we know rates won’t increase anymore, so by the end of this year, they should start declining again.