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Former Miami Beach Hotel To Be Renovated Into Offices After $47M Sale

The historic Bancroft Hotel building in Miami Beach was acquired for $47 million and part of it will be converted into Class A office space.

Bancroft Oceans Five Holdings, an affiliate of Miami-based Crescent Heights, sold the commercial condos at 1501 Collins Ave. to a joint venture between Boca Raton-based Pebb Capital and Miami-based Maxwelle Real Estate GroupRussell Galbut of Crescent Heights remains a partner in the project.

Built in 1939, the five-story building totals 100,000 square feet of indoor and outdoor space. That includes 50,000 square feet of offices, 20,000 square feet for four restaurants, 30,000 square feet of terrace space and 210 below-ground parking spaces.

 

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Iconic New York Eatery Joe’s Pizza To Open First Miami Location In Wynwood

DWNTWN Realty Advisors Co-Founder and Managing Partner Tony Arellano and Executive Joe Fernandez are curating one of Wynwood’s signature buildings with a compelling mix of tenants. In the latest example, the brokers represented Wynwood 25’s owners in a long-term lease with New York staple Joe’s Pizza.

Joe’s Pizza, the family owned and operated “Greenwich Village institution” since 1975, is set to open its first Miami location at Wynwood 25. The 1,758-square-foot eatery is scheduled to debut in spring 2022. It joins the award-winning Japanese restaurant Uchi Miami, Danny Meyer-backed Salt & Straw, Bartaco and Dogfish Head Miami as notable Wynwood 25 food-and-beverage tenants.

Wynwood 25 has 289 apartment units and about 30,000 square feet of retail and restaurant space.

“We are thrilled to play a pivotal role in Wynwood becoming one of Miami’s top food-and-beverage submarkets, in terms of both sales metrics and brand recognition,” Arellano said. “Demand from New York operators like Joe’s Pizza is at historically high levels. Wynwood 25, with its turnkey ground-floor restaurant space and proximity to thousands of residents, professionals and visitors, was a perfect option for Joe’s inaugural Miami location.”

Jared Robins, Founder of INHOUSE COMMERCIAL – a Miami-based firm launched in 2021 and focusing on retail leasing in South Florida, and John Ellis, Managing Director of Newmark, represented Joe’s Pizza in the Wynwood 25 lease.

Joe’s Pizza Founder Joe Pozzuoli is originally from Naples, Italy and still owns and operates his flagship New York location at 84 years old. His son, Joe, Jr., and grandchildren Sal and Pino Vitale are part of the ownership and operations team in Miami. Locals and tourists alike flock to Joe’s for an authentic New York street slice.

“After an extensive search, Joe’s Pizza zeroed in on Wynwood for its first foray into Miami,” Fernandez said. “With such a huge following up north, Joe’s will greatly benefit from the New York migration into Wynwood and the substantial pipeline of new office and residential development. The residential component of Wynwood 25 also made the building a particularly attractive option for Joe’s.”

Arellano and fellow Co-Founder and Managing Partner Devlin Marinoff have more than $100 million in pending transactions in Wynwood, and the firm has participated in more than $350 million in investment and development sales in the neighborhood over the last few years.

Over the course of his career, Arellano has completed more than 250 leases in Wynwood and played a pivotal role in the neighborhood’s evolution from an overlooked, largely neglected collection of old industrial buildings into a vibrant hub for arts and culture, retail, restaurants and nightlife.

 

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Miami Ranks Among Top 5 Markets For Multifamily Development

Multifamily has been one of the best-performing industries throughout the pandemic. According to Yardi Matrix data, robust demand pushed rent growth to record highs, placing 2021 on track to be among the best years since the 2008 downturn.

Demand continues to fuel development and, following a moderate slope during the first weeks of the health crisis, construction activity has largely bounced back in 2021. Yardi Matrix expects deliveries to amount to roughly 334,000 units by year-end.

Consistent growth was registered in most fast-growing secondary markets, but also in several gateway metros. In the ranking below, MHN showcased the top five markets for deliveries in 2021 through July by the number of units, based on Yardi Matrix data. Combined, 44,168 units came online in these metros, which is slightly above the 38,275 units that were delivered last year during the same period.

In July, the construction pipeline in these markets comprised 170,913 units underway. Not surprisingly, four of these markets also held the top spots for transaction activity during the first half of 2021.

top 5 multifamily markets graph

The pandemic enhanced Miami’s appeal, attracting even more companies looking to relocate from New York City and California markets—this has spurred robust demand for multifamily projects.

Through July, 7,173 units came online in the metro, with more than 6,625 units delivered during the same period last year. The construction pipeline is second only to Dallas and Washington, D.C., with 38,147 units underway. Miami is one of the top markets for absorption, too, posting a 180-basis-point occupancy increase in stabilized properties in the 12 months ending in July, to 96.4 percent.

Deliveries were almost evenly distributed between Miami metro (2,391 units), Ft. Lauderdale (2,648 units) and West Palm Beach-Boca Raton (2,134 units). Occupancy increased the most in West Palm Beach-Boca Raton, climbing 250 basis points, to 96.6 percent. Miami Metro followed, with occupancy improving by 160 basis points, to 96.2 percent, while the rate increased 150 basis points in Fort Lauderdale, to 96.4 percent.

One of the largest projects delivered in the metro in 2021 through July was ZOM Living‘s Las Olas Walk, a 456-unit Lifestyle property completed in February in Fort Lauderdale at 106 S. Federal Highway.

 

Source:  MHN

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South Beach Office Building By Lincoln Road Trades For Nearly $50M

JLL Capital Markets closed the $49.5 million sale and financing of 1688 Meridian, a boutique Class A office building along with two parking lots in Miami Beach.

JLL represented the seller, Ivy Realty, in the sale of the property to 1688 Property Owner, LLC, a newly formed Delaware-based foreign limited liability company led by Ophira Cukierman, founder and principal at Greenacres Management. Additionally, JLL worked on behalf of the buyer to secure a loan with Värde Partners for the acquisition.

Renovated in 2019, 1688 Meridian is a 10-story, 88,419-square-foot office tower with ground floor retail space fronting Meridian Ave. and 17th St. In addition to the office tower, the sale included two land parcels at 1699 and 1709 Jefferson Ave., which are currently used as parking lots. The property is 81.4% leased, offering significant leasing and development upside.

1688 Meridian is positioned on a high-profile corner location at the intersection of 17th St and Meridian Ave. just steps away from Lincoln Road, Miami Beach’s most iconic open-air pedestrian promenade. The property is surrounded by numerous amenities, including the Lincoln Eatery, Miami Beach Convention Center, Sunset Harbour, New World Symphony, The Filmore and countless restaurants, major retailers and luxury hotels.

Miami continues to attract new capital, companies and residents due to the low tax-rate environment, pro-business culture, fast growing economy, development of a tech hub and superb quality of life. According to JLL’s Second Quarter Office Outlook, Miami has achieved new all-time highs for rents within the Miami CBD posting 5.6% year-over-year growth.

The JLL Capital Markets team representing the seller was led by Managing Director Ike Ojala, Senior Managing Director Hermen Rodriguez, Director Matthew McCormack with support from Associate Max La Cava.

JLL Managing Director Melissa Rose led the Capital Markets team representing the borrower with support from Analyst Max Lescano and Associate Jimmy Calvo.

“1688 Meridian is a fully renovated building in the heart of world-renowned South Beach and is experiencing record tenant demand, which generated very strong interest from the investment community,” Ojala said.

 

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Wynwood Building Sold To New York Company For $689 PSF

A two-story building in Miami’s Wynwood Arts District sold for $13 million.

The 18,870-square-foot commercial/office building at 2534 N. Miami Ave. and 26 N.W. 26th St. was sold by 2534 Morse LLC, managed by Jonathan A. Bernstein in Palm Beach Gardens.

The buyer was 2534 N Miami Associates LLC, managed by Eddie Hidary as chief investment officer of New York-based Hidrock Properties. Metropolitan Commercial Bank awarded a $8.06 million mortgage to the buyer.

The price equated to $689 per square foot. It last sold for $10.8 million in 2015.

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