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One Of The Oldest Churches In Miami-Dade County Sells

Gridline Properties announced the sale of a unique 28,947 square foot property located at 205 NE 87th Street for $5,425,000 after being vacant for more than 10 years.

Located in Miami’s Upper East Side and within the emerging El Portal Village, the building was formerly home to a Methodist church and school. Gridline Properties’ Principal and Broker Alfredo Riascos represented the sellers, real estate developers Seth Gadinsky of Gadinsky Real Estate, LLC and Samuel Soriero of Group 10 Capital Management, LLC.

The buyer, The Sanctuary LLC, a client of Elm Spring, Inc., plans to adapt the property into restaurant, retail and office space. The transaction was finalized on Friday, March 19.

The sellers acquired the property in 2016 for $3,200,000, and entitled the asset into a mixed-use retail, office and event space building. However, once Miami’s Little River and Upper East Side markets began showing substantial growth, they decided to switch gears and test the sale market – ultimately selling to a client of Elm Spring, Inc. given their intentions to pick up where they left off.

This prominent, mixed-use building, built in 1952, occupies two acres of Miami’s El Portal neighborhood – falling between North Miami and Downtown. Given its distinctive character, this charming church property, once known as the Rader Memorial United Methodist church, offers a main hall (former cathedral) that boasts dramatic high ceilings and 5,000 square feet of open space attached to a two-story structure (former school) that houses more than twenty rooms with perimeter windows and an impressive portico that overlooks the expansive courtyard and garden. The property’s location adds to the appeal of this space with its close proximity to notable Upper East Side landmarks such as The Citadel, MADE, Ebb + Flow and The Vagabond Hotel.

Gridline Properties has been instrumental to the growth of Miami’s Upper East Side, participating in the sale and leasing of projects such as Upper Buena Vista, 55th Street Station and Ebb + Flow amongst other notable projects and transactions.

“This sale further emphasizes the recent growth of the Upper East Side and demonstrates the growing investor demand in the area,” said Riascos. “We are excited to see how the development of this formerly vacant asset continues to uplift and add value to the surrounding area.”

This purchase along with many others, comes at a time of increased interest in the Miami market following a year of extreme uncertainty due to the Covid-19 pandemic.

“2020 brought so much ambiguity to the future of our market. However, the positive sales activity that we’ve seen throughout the first quarter of 2021 has marked a turning point and elevated Miami to one of the most attractive investment markets in the country,” said Riascos.

 

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Miami Approves New Zoning For Neighborhood Near Wynwood

A neighborhood on the north side of Wynwood has been rezoned, with the hopes of spurring more investment and redevelopment in the area.

The City Commission unanimously approved the Wynwood Norte rezoning plan on March 25. The plan covers 140 acres west of Midtown Miami and north of Wynwood. The largest pocket of development would be on Northwest 36th Street, the north side of Northwest 29th Street and North Miami Avenue. The new zoning would allow up to eight stories of mixed-use development, or five stories for purely residential.

With more flexible parking requirements under the new zoning, it would be easier to build two- and three-story apartment buildings and small retail spaces. A fourth story could be added for projects with 20% affordable housing.

The rezoning process was largely driven by residents of the neighborhood, who advocated for the creation of the Wynwood Norte Neighborhood Revitalization District with this legislation. While Miami’s overall population has grown in recent years, the population in Wynwood Norte has fallen by nearly 50% since 1985. There are many vacant lots, so the hope is the new zoning will encourage more building to welcome new residents and businesses.

 

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Mixed-Use Buildings On Miami Avenue In Wynwood Win Urban Development Review Board’s OK

A sprawling mixed-use project designed to bring apartments, office space and more in two new buildings in Wynwood won a positive review from the city’s Urban Development Review Board.

The board unanimously recommended approval of the project, known as PRH N. MIAMI, after the developer made several changes to the plan in response to issues and concerns brought up by the review board and earlier by the Wynwood Design Review Committee.

PRH N MIAMI LLC plans to build the dual, complementary buildings at 2150 N Miami Ave.

The project is to include 317 residential units, 60,400 square feet of offices, 22,701 square feet of commercial-retail uses, and a garage for up to 534 vehicles.

The property has a principal frontage on North Miami Avenue, which bisects the property. The property fronts Northeast/Northwest 22nd Street to the north comprising secondary frontage, with Northwest Miami Court on the west being another secondary frontage.

The property is divided into two parcels, Parcel 1 to the west of North Miami Avenue and Parcel 2 to the east of North Miami Avenue.

The east parcel is to have retail at the ground level, a seven-level parking garage lined on the east façade with residential units up to the eighth level, and office space up to the 12th level.

The west parcel is to have retail at ground level, residential units up to the 12th level and amenity spaces for the residents.

Sandy Peaceman of CFE Architects went through many of the tweaks and changes made by the design team, with the goal of addressing the concerns of the Wynwood committee and the city board. Among them:

  • Increased connectivity and activation of the courtyard with new breezeways providing courtyard access for the west tower. Providing crosswalk connectivity between the two buildings, and a direct link between the east tower residential lobby and the west tower residential lobby and breezeway.
  • Modifications include chamfered corner along the entire northeast corner of the west tower.
  • The rooftop amenity deck has been redesigned to provide a more appealing lifestyle to the residents while creating a more intriguing skyline of the west tower.
  • Artificial green wall has been removed from the west façade of the west tower.
  • Faux brick has been removed from the ground level of the east tower and replaced with exposed concrete to create a more industrial feeling.
  • Residential lobby and office lobby have been made more prominent and inviting.
  • The long retail façade on 22nd Street has been broken down by stepping back a 33-foot-wide portion of the façade to be flush with the tower above. By doing so, it disrupts the perceived monotony along the retail wall.
  • Round balconies have been removed from the tower at the main corner at North Miami Avenue and 22nd Street to emphasize the floor-to-ceiling glass corner.
  • Garage screening and massing has been articulated with design elements that become part of the solution to the 60% roof covering requirements. Louvers have been provided where mechanical equipment will be utilized.

Board Chairman Willy Bermello and others commended the developer’s team for listening to the board’s concerns and making changes.

“You’ve done a good job in being very responsive and sensitive,” said Mr. Bermello.

Board member Ligia Ines Labrada said she appreciates that the developer and architect acted upon board recommendations.

“It makes for a much stronger project. The open breezeway makes it more inviting … the scale and language has improved in relating the two buildings,” she said.

Board member Ignacio Permuy said: “If we had a category of Most Improved Project, this would be one of the top ones. I commend you on a job well done … exceptional job. Night and day.”

 

Source:  Miami Today

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Love Life Café To Open At 545WYN In Wynwood

Sterling Bay has signed a retail lease with eatery Love Life Café in Miami’s Wynwood district. Love Life Café will take 3,767 square feet of storefront space at 545wyn, Wynwood’s first Class A creative office building.

Love Life Café, a plant-based dining concept, will be relocating its existing Wynwood location at 2616 NW 5 Ave. to its new location at 545 NW 26th St. later this year. Veronica Menin and her husband, Diego Tosoni, created Love Life Café in 2015. Tosoni, a self-taught chef with a passion for vegan cooking, aims to bring plant-based foods to 545wyn, serving breakfast, lunch and dinner items.

Love Life Café currently operates venues at Time Out Market in Miami Beach and another at 18 N Dollins Ave. in Orlando.

 

Source:  RE Business

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Sleepy No Longer, Downtown Miami Evolves Into Urban Hub

Once a place that emptied at 5 p.m., Downtown Miami is in the midst of a dramatic transformation. Overlooked no longer, the city’s central business district is getting denser, growing taller and attracting new attention.

The area has been poised for a breakout since the Great Recession, and its moment finally seemed to arrive during the pandemic. Out-of-state companies, most notably Blackstone Group, are opening offices downtown. And a widely noted study said Miami’s urban core has experienced the largest downtown population surge in the nation over the past two decades.

As Miami gains momentum, developers are making big bets on the city’s appeal to both employers and their employees.

“It’s like a snowball effect,” said Nitin Motwani, a developer of Miami Worldcenter. “Downtown Miami, over the past 10 years, has completely evolved into one of the great, 24-hour metropolises in the world.”

Motwani is part of a particularly ambitious project: Miami Worldcenter, a $4 billion mixed-use development, includes apartments, retail space, condos, hotels and offices spread across 10 blocks of downtown parcels.

Just south of downtown, OKO Group and Cain International are building 830 Brickell, a 640,000-square-foot tower that will test office tenants’ appetite for Manhattan-style rental rates. And the 13-story Nikola Tesla Innovation Hub, with 136,000 square feet of office space, is set to begin welcoming tenants next year.

“It feels like we’re on the precipice of something big,” said developer Ryan Shear, managing partner of Property Markets Group (PMG). “Downtown has so much potential, an untapped amount of it.”

PMG is developing the Waldorf Astoria condo and hotel project, which will be the highest tower south of New York, Shear said. PMG also expects to break ground this year on E11EVEN Hotel & Residences, a 400-unit condo project. The units are priced at $250,000 to $12 million.

The E11EVEN project quickly sold more than 70 percent of its units, reflecting what Shear sees as Downtown Miami’s move into the top tier of urban cores.

“Miami, for a long time, has been an undervalued city,” he said. “Miami has a lot of catching up to do.”

The flurry of investment offers a sharp contrast to downtown’s former vibe. For years, downtown boosters touted a vision of a thriving, round-the-clock urban core. And, for years, the city’s central business district remained a place that filled up at 9 a.m. but couldn’t sustain a nightlife.

Downtown workers who liked an urban vibe commuted from Miami Beach or Coral Gables. The rest of the labor force put up with gridlocked commutes from Kendall or Weston.

“Until 10 or 15 years ago, Miami was a city that existed in spite of its downtown,” said Andrew Trench, a managing director at Cushman & Wakefield. “Downtown had office space, and the Miami Heat played downtown, and that was kind of it.”

However, during a building boom before the Great Recession, developers inundated downtown and the Brickell district with high-rise residences. As new residents filled those units after the crash, Miami’s downtown population ballooned. This was the first signal that downtown couldn’t remain a mere business district forever.

According to research by Brookings, Miami had the fastest-growing population of any major downtown over the past two decades. Miami’s urban core posted population growth of 202.5 percent from 2000 to 2018.

The soaring head counts enticed new grocery stores, restaurants and bars downtown, fulfilling the vision of the district as something more than a place to leave at the end of the workday.

Whole Foods opened a store in Downtown Miami in 2015, and the crowds quickly became legendary. “You can barely move in the store,” a Whole Foods executive reported in a 2016 earnings call.

Trey Davis, an associate director at Cushman & Wakefield, lives on Brickell — downtown and Brickell are distinct neighborhoods, but both are part of the central business district — and walks to work and shopping areas.

“I barely use my car,” he said. “There will be times when I go three to four weeks without using it.”

While new residents have been plentiful, office users have proven more elusive. That’s changing, too.

In one noteworthy recruiting win, Blackstone Group last year signed a deal to open a 215-person office in downtown. The private equity giant leased a 40,000-square-foot office at 2 MiamiCentral, the office building adjacent to the Brightline train station.

Blackstone expects to pay its Miami workers an average salary of $200,000. Microsoft and hedge fund Citadel also are said to be shopping for office space in downtown.

Big-name companies, it seems, finally are taking note of Miami’s oft-repeated selling points: low taxes, a business-friendly climate, and comparatively affordable real estate costs.

Despite that pitch, the tenants from New York and California arrived in a trickle rather than a torrent. Then came the COVID-19 outbreak, and companies took a fresh look at their locations.

“The pandemic was the accelerator. We have a great migration happening right now,” said Alan Kleber, a managing director at JLL. “You have people thinking, ‘If we were ever going to move our headquarters, or move a component of our operation, now is the time to do it.’”

The new interest in Miami follows years of efforts by the city to pitch itself to financial firms in the Northeast and to tech players on the West Coast.

“We felt it was only a matter of time before this happened,” said Cushman & Wakefield’s Trench. “I never thought a pandemic would be the catalyst.”

The emergence of Miami as a corporate location spurred 830 Brickell’s decision to quote rental rates of $75 to $85 per square foot.

“These are the highest rates Miami has ever seen,” said Trench, who’s marketing the space.

Even so, 830 Brickell’s rates are lower than the typical rents for Class A space in San Francisco or Midtown Manhattan. The building is scheduled for completion in 2022.

Features will include a building-wide app that lets users order coffee or reserve a treadmill in the gym, Trench said. While work-from-home trends during the pandemic have reduced demand for office space, Trench expects a return to the office.

“As much as we’ve seen we can all work from home, it’s tough to be at home 24 hours a day,” he said.

Miami boosters are banking on a return to offices after the pandemic. In a bid to raise the city’s national profile, the Miami Downtown Development Authority (DDA) last year launched its Follow the Sun initiative, which pays incentives to businesses that move to the central business district.

To qualify, an employer must create at least 10 new jobs that pay at least $68,000 a year. In return, employers get $500 per employee, up to a maximum of $50,000 a year, and up to $150,000 over three years.

In February, the DDA said eight companies won grants that will bring 684 jobs downtown. In all, the companies will receive $560,000 from the initiative.

One of the recipients is Blackstone. Other grant winners include an unnamed California wellness company and a Connecticut hedge fund, along with a number of employers moving from elsewhere in South Florida.

Downtown developer Motwani is a member of the board of the DDA. He said the incentives aim to make employers feel welcome, especially those from markets, such as New York and California, where business owners often complain about red tape and bureaucratic mazes.

“It’s more of a gesture,” Motwani said. “What can we do?”

The idea for Follow the Sun started in 2013. Miami had embarked on a marketing campaign aimed at hedge funds and other financial firms in Manhattan and Greenwich, Conn. The DDA pitched itself as a sunny and carefree destination, a place with lower taxes and a more welcoming business climate.

The Follow the Sun initiative is funded from property taxes collected by the DDA. Motwani said the outlay will be more than repaid as hundreds of high-earning workers take jobs downtown.

Some also will live in the district. Even those who commute from other areas will still spend money at downtown restaurants and support cultural institutions. What’s more, some of the incentive money will be pumped into building improvements as the new tenants set up shop downtown.

“They’re giving back more than they’re taking,” Motwani said. “We want the jobs. We want the diversity to our job base.”

 

 

Source:  Commercial Observer

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Blackstone Doubles Down On Miami With $230 Million Purchase Of 2 Office Buildings

Two office towers sold for $230 million in Downtown Miami to New York private equity firm Blackstone, signaling the firm’s ongoing belief in the potential of Miami’s business environment.

The acquisition of 2 and 3 Miami Central comes just months after Blackstone said it would be opening a tech office at 2 Miami Central totaling 41,000 square feet. Although the two announcements are not directly related — Friday’s acquisition is by funds managed by Blackstone Real Estate, a separate group from Blackstone’s tech unit — they are driven by the same confidence in Miami’s future.

Nadeem Meghji, Blackstone’s Head of Real Estate Americas, said the acquisition, from previous owner Shorenstein Properties LLC, was motivated by the momentum Miami has seen throughout 2020 and into 2021 from corporate relocations and expansions, as well as strong demographic trends, a business friendly environment and a large pool of talent — factors that predate the pandemic.

The buildings — 2 Miami Central at 700 NW First Ave., and 3 Miami Central at 161 NW Sixth St. — total 320,000 square feet. The buildings are 98% occupied with remaining lease terms of more than eight years on average, Blackstone said. Tenants include Carlton Fields, Ernst & Young, ViacomCBS, and New Fortress Energy, a clean energy solutions group formed in 2014 by Wes Edens.

 

Source:  Miami Herald

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Report: Miami Multifamily Holds Steady

As Miami continues to navigate the health crisis and ensuing economic hardship, the metro became an example of resilience in the face of adversity, according to a study by the Atlantic Council’s Adrienne Arsht-Rockefeller Foundation Resilience Center.

The report commended Miami’s efforts to repurpose existing strategies—already tested against coastal vulnerabilities, disease outbreaks and economic difficulties. Despite the challenges, Miami real estate has endured, with multifamily rents up 0.4 percent to $1,704 on a trailing three-month basis as of December, above the $1,462 U.S. average.

Despite a slow pace, employers added some 24,400 jobs in the metro over the three months ending in November. But as a region heavily reliant on tourism, Miami has felt the full weight of job losses in the leisure and hospitality sector, which contracted by 19 percent and shed 63,300 position in the 12 months ending in November. On a positive note, following the $900 billion federal relief package passed in late December, many Floridians had already started receiving the extra $300 payments for the week ending Jan. 2.

Metro Miami had 35,969 units under construction as of December, with 87 percent of those aimed at high-income earners. The bulk of the pipeline (71 percent) is expected to come online through this year. More than $2.2 billion in assets traded in 2020, representing a 19 percent decline from 2019.

 

Source:  MHN

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Biscayne Boulevard Dev Site Hits Market For $11M

A multifamily and commercial development site along Biscayne Boulevard near North Miami hit the market for $10.5 million.

Owner Alex Silberman purchased the 3.2 acres of land at 11240 Biscayne Boulevard in August 2012 for $2.9 million from Biscayne 114 Center of New York, property records show.

The asking price shows a significant uptick in valuations since then.

Colliers’ Gerard Yetming, Julian Zuniga and Mitash Kripalani listed the land for sale on behalf of Silberman.

The Biscayne Boulevard site has two different zonings, as 2.17 acres is designated for 10 to 21 multifamily units per acre, and the remaining 1.06 acres is designated for a commercial use such as retail, according to a press release.

Yetming said in the release that the site is centrally located and comes at a time when the multifamily market is doing well.

 

Source:  The Real Deal

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Medical Office Buildings Continue To Gain Investor Interest

Medical office properties are rapidly becoming some of the most prized assets in real estate. They have survived the global crisis caused by the spread of the coronavirus with strong rents, on average, and very little vacant space.

“A well-functioning medical office is going to trade as aggressively as the best downtown office building,” says Chris Bodnar vice chairman and co-Head of healthcare and life sciences capital markets for CBRE, working in the firm’s Denver offices.

Eager buyers spent $3.8 billion on medical office buildings in the fourth quarter of 2020. That helped make up for deals that did not close in the spring and summer because of the pandemic. It brought the amount that investors spent in 2020 to a total of $10.6 billion, according to Real Capital Analytics.

That’s just 3 percent less than investors spend in 2019—despite that chaos caused by the coronavirus. Just to compare, investors spent 41.8 percent less in 2021 to buy conventional office properties compared to 2020.

At the same time, price rose compared to the income produced by medical offices. Average cap rates for medical office have compressed about 20 basis points year-over-year and the average price per square foot increased by 5.5 percent over the same period, according to Real Capital Analytics.

“The amount of capital available for real estate—and medical office properties in particular—has just swelled,” says Mindy Berman, senior managing director and healthcare group leader for JLL, working in the firm’s Boston offices. “The pandemic has proved the investment case again for medical office properties.”

The amount of space at medical office properties that is occupied by tenants has stayed between 91.5 percent and 92.5 percent on average for more than a decade, according to JLL’s Berman.

“The occupancy rate has barely moved through the Global Financial Crisis and the pandemic,” she says. “And medical office rents are predictable. They barely budge, compared to conventional office rents in Manhattan that seesaw.”

It turns out that medical offices need space to see patients—even in a pandemic in which people with existing health needs were especially vulnerable to the disease.  Many doctor’s offices shut their doors early in the pandemic—only to reopen for business later in 2020.

“It’s about the continued need for physical space and the need for patients to continue to be seen,” says CBRE’s Bodnar. “It’s not like retail space. You can decide to stay home from a movie or going out to dinner, but it is very difficult to defer spine surgery or cardiac surgery.”

The tenants at medical offices properties have also become even more dependable as health provided have merged and acquired each other.

“There are fewer health systems and bigger health systems—which is credit positive,” says Berman.

The buyers interested in medical office buildings include a growing number of private investment funds, investment advisors and pension funds. They join the specialized healthcare REITs that have historically been the biggest aggregators of medical office properties.

Most recently, healthcare REITs have announced institutional joint ventures—several have recapitalized their holdings with pension funds, sovereign wealth funds and foreign capital.

“There is an inordinate amount of capital chasing medical office buildings,” says Berman. “We could have $20 billion in transactions in a year if we had the supply of product available for sale.”

 

Source:  Wealth Management

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East End Capital Sells Wynwood Building For $12M, Resolves Foreclosure

An affiliate of East End Capital sold a commercial building in Miami’s Wynwood Arts District for $11.8 million, resolving a foreclosure lawsuit in the process.

EERC 310 Owner LLC, led by Jonathan Yormak and David Peretz of New York-based East End Capital, sold the 19,891-square-foot building at 310 and 318 N.W. 25th St. to 310 NW 25 SPE LLC, managed by Chaim Cahane of Miami Beach-based Forte Capital Management and Jonathan Krasner. The buyers assumed the seller’s $11 million mortgage with FS Rialto 2019-FL1 Holder LLC, an affiliate of Rialto Capital Management.

 

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