Loading
Guatemalan entrepreneur and onetime politician Harold Caballeros learned one of his biggest lessons in commercial real estate in the late 1990s real estate boom in Miami: the art of the hyper-focus.
Caballeros, earning his M.B.A. at the University of Miami, was swept up in the buying frenzy, particularly in condos and apartments. With opportunities all over, Caballeros zeroed in on a small strip of Brickell Avenue, in the financial hub of downtown Miami.
In a few months, he and some business partners bought and flipped more than 40 units, apartments and condos, for a solid profit. “I got to know every price, every listing and every square foot,” Caballeros says. “Working only on Brickell worked out well for me.”
Caballeros hopes another hyper-focus commercial real estate move, the acquisition of Burgundy Square, a 45,380-square-foot mixed-use property on Miami Avenue in downtown Venice, will also work out well. Caballeros bought the complex, 10 one- and two-story buildings on 1.57 acres, early last year for $7.9 million. He's now getting ready to spend at least $500,000 on a major renovation project, starting with new roofs on several apartments, and other upgrades to the residential side of the property. The parking lot will also be redone.
“The apartments need work,” says Caballeros. “We need to modernize them.”
Burgundy Square was built in 1925 and underwent renovations in 2008. The are 25 apartments, split between seven studios, 16 one-bedroom/one-bathroom units and a pair of two-bedroom/one-bathroom units. There are 23 retail units in the complex. Tenants include five restaurants and cafes; a magic show theater; an art studio and gallery; a nail salon and an animal grooming business. Says Caballeros: “We have a nice cash flow there.”
In addition to the complex itself, Caballeros, 59, seeks to grow interest in Miami Avenue — a shopping afterthought against its nearby destination street big brother, Venice Avenue. He plans to hold street fairs for tenants and other events, even possibly dipping back to his homeland for a Guatemalan coffee festival.
“We are trying to build up a good flow of people on Miami Avenue,” Caballeros says. “There's a lot we can do.”
Caballeros wants to buy more commercial complexes, in Venice and other parts of Sarasota County. He would also like to work on real estate projects in the region with some of his four adult children, including Harold Caballeros Jr., a graduate of the London School of Economics. The elder Caballeros discovered the Venice region when he came to town with his
wife to look at a boat for sale. Now he and several relatives want to live and retire in the area.
In looking at more potential deals, Caballeros says one surprise has been the slow pace of activity, particularly on renovations. “We are learning a lot about regulations, rules and zoning,” he says.
The Burgundy Square purchase, says Caballeros, came together relatively quickly because his offer included a down payment of 50% cash. Caballeros says he and his family sold several homes and properties in Guatemala to come up with the $4 million for the down payment.
In Guatemala, commercial real estate was mostly a side business for Caballeros, who is an attorney. He founded a social ministry in 1983 in his native country, an organization that has since grown to 90 church locations worldwide. The organization includes schools and radio stations. Caballeros ran an unsuccessful campaign for president in Guatemala in 2011, and was named minister of foreign affairs for the country for a one-year term, in 2012.
Politics, says Caballeros, wasn't for him. Too much inaction and bickering. “There's an old Spanish saying, about seeing the monster from the inside,” Caballeros says. “I saw the monster from the inside, and I didn't like it.”
Follow Mark Gordon on Twitter @markigordon
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
