Miami-based FIP Management is rolling the dice on Aventura’s first medical office condo project in the area. Of course, it’s not a big gamble since FIP already has pre-sold two-thirds of the office space.
FIP Management is breaking ground this week on Aventura Medical Tower, a 12-story medical office building that is being marketed as office condominiums to physician practices who want walking access to Aventura Hospital & Medical Center. The $27M project at 2801 NE 218 St has already pre-sold office units to a number of physician groups, including to Dr. Jeff Gelblum, a noted neurologist in Miami who also is a principal in the project. With that and construction financing in the kitty, Aventura Medical Tower should deliver by fall 2017.
Jeff notes that medical office space around hospitals in Miami is rare to come by. And rents have escalated greatly since the Great Recession. In fact, National Real Estate Investor noted last year that Miami MOB rents were among the 10th-highest in the nation at an average of just over $25/SF. Miami’s 11.1M SF MOB market is 92.5% leased as well, according to Colliers International. Jeff says physicians were sold on the idea of owning office space and paying a steady and predictable mortgage versus chancing it on rents that don’t seem to be headed south anytime soon. “The problem is there’s not enough office space to go around,” Jeff says.
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