Raanan Katz first spotted potential for Sunny Isles Beach while on vacation with his family in Miami Beach. With an instinct for good timing, he purchased the retail stores at a condominium building on Collins and 71st Street for a big discount in 1985, and then bought his first block of property the next year in North Beach.
“I gave [the broker] a crazy offer, and the seller had to leave town,” said Katz. “He said if you could move fast you can have it, and the rest is history.”
His first foray into commercial real estate bucked the real estate trend at the time. South Beach was at its hottest in the 1980s, but Katz’ business philosophy, which remains true today, along with his competitive fire called for a contrarian approach. So he bought in North Beach, which was later called Sunny Isles, and is now referred to as Sunny Isles Beach.
“I see opportunities where other developers may not,” Katz said of his commercial real estate competitors. “Everyone went to South Beach, and I went here.”
As the leader of RK Centers, a commercial real estate development and management company based in New England, Katz saw that Sunny Isles Beach had all the elements to support his company’s way of thinking: expanding population, a safe shopping environment for patrons, and buildings that could be modernized, well maintained, and well landscaped.
What started as an easily managed “hobby” investment eventually helped crystalize the sleepy beachside community into something much greater.
Now, with its Florida headquarters in Sunny Isles Beach, and close to a million square feet under management in the city, Katz has become the largest commercial landowner and manager in the city. Additionally, he is just as well known and respected as one of its greatest benefactors.
Recognized by Sunny Isles Beach for his commitment to development, the City renamed 170th Street in Sunny Isles Beach as “Raanan Katz Boulevard.” He also generously contributed to a sports complex developed by the City, located behind RK Village Plaza. The sports and community event space on Collins Avenue and 182nd Street was dedicated as the Phyllis and Raanan Katz Sports Center in recognition of his efforts in getting the project off the ground.
The sports connection came as no surprise to those who know and work with Katz, given his long association with basketball. He is one of the original owners of the Miami Heat basketball team and maintains both his ownership and presence at courtside for virtually all of the team’s games. He is a former professional basketball player who was legendary for his deadly outside shot. While he retired from the game years ago , he can still be found on the Sports Center’s court on weekends engaging locals in occasional pick-up games, even jokingly challenging tenants to wager the rent on a game of H.O.R.S.E.
In 2006, the Mayor of Sunny Isles Beach officially honored Katz for creating jobs and giving back to the community, decreeing May 18 Raanan Katz Day.
Behind his business strategy is a conservative mindset that operates with little debt and engages the tenant, first and foremost. RK Centers eliminates the financing component in deals since it typically uses its own funds to close on acquisitions in less than 30 days. These core philosophies helped weather volatile real estate trends and spur growth in RK Centers’ holdings across South Florida and in New England.
A self-described micro-manager, Katz noted that often overlooked components such as attention to detail such as maintenance and landscaping, are also critical to success in the commercial real estate game.
There is another hedge that is fundamental to real estate investment that Katz follows: “I learned in Boston that anything near the water [makes money].”
Katz and his company’s core values are keystones to his success, and are applied to all of his business ventures: Integrity, Trust, Diligence, and Perseverance.
That can also be applied to his passion for giving back.
“The community has done a lot for me,” he said. “I feel obligated to do something – we only buy American cars to say thank you to the auto workers in Detroit.”
With its stellar reputation and strong financial position, RK Centers intends to grow its portfolio through additional property acquisitions.
After acquiring approximately 2,000 apartments in the Boston area in the 1970s, the company shifted its focus to commercial real estate, fueling the growth of its portfolio to over 60 commercial properties, totaling over 8 million square feet of retail space plus an additional 125,000 square feet of office space.
If history tells us anything, further growth will be repeated in the months and years to come. While some local developers are pulling back, Katz is moving straight ahead.
“RK will be a top player,” he said.
Hi Raanan, congratulation, I remember doing your first CAM for Staples glad to here you are doing so well.