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Developers Secure $47M For Rare South Of Fifth Office Building In Miami Beach

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Real estate firms Sumaida + Khurana and Bizzi + Bilgili have secured $47.25 million in construction financing for The Fifth Miami Beach.

The five-story project designed by Spanish architect Alberto Campo Baeza is the first office development to be built in Miami Beach’s swanky South of Fifth neighborhood in decades. It will be Campo Baeza’s first Miami project and first commercial building in the United States.

 

Source:  Commercial Observer

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Calta Plans $47M In Allapattah Dev Site Purchases For Workforce Housing

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The Calta Group is targeting workforce-priced housing in Miami’s Allapattah neighborhood.

The Coral Gables-based firm plans roughly $47.2 million in purchases for development sites in Allapattah, where it wants to build multifamily projects with workforce units in two parts of the neighborhood, company co-founder Gaetano Caltagirone told The Real Deal.

For the first two phases, Calta is homing in on an Allapattah area that’s north of the completed River Landing Shops & Residences mixed-use complex.

Last week, Calta advanced its plan, paying $10 million for the first chunk of its phase one assemblage. The firm bought five adjacent lots at 1415, 1433, 1435 and 1453 Northwest 13th Terrace, as well as at 1410 Northwest 14th Street. Calta will complete this assemblage with a $7.2 million purchase of the adjacent lot at 1469 Northwest 13th Terrace, according to Caltagirone. That deal, expected to close in late January, would give Calta an acre of developable land for phase one of the project on the southwest corner of Northwest 14th Street and Northwest 13th Terrace.

Records show an entity led by a trust tied to members of the Enis family sold the five lots, which consist of two vacant sites, a one-story office building and a pair of low-rise apartment buildings with eight units combined.

The lot at 1469 Northwest 13th Terrace is owned by an entity led by Arturo Siso, managing partner at Miami-based real estate private equity firm Ailsa Capital, according to records. The site now has a seven-story office building.

For phase two, Calta plans to pay another $10 million for a pair of lots that are near the phase one assemblage. The deal is expected to close in March.

Phases one and two would consist of a pair of mid-rise buildings with mixed-income apartments, including workforce-priced units, as well as offices and retail, Caltagirone said. He declined to provide specifics on the unit count, building heights and amount of commercial space.

Farther north in Allapattah, Calta is planning phases three and four of its project near Juan Pablo Duarte Park. The firm expects to close on $20 million in development site purchases near Northwest 28th Street in January. Caltagirone also declined to identify the specific parcels and project details, though he allowed that this project would be a mid-rise multifamily development.

South Florida’s multifamily market has left many longtime locals priced out, after an influx of out-of-state residents pushed up rents to unprecedented levels.

Calta’s project would address the need for more below-market apartments, especially for students and employees at the Civic Center and Health District areas that are near Allapattah, said Caltagirone, who leads the firm with his brother, Ignazio Caltagirone.

 

Source:  The Real Deal

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ABH Developer Group Goes Vertical On Miami’s Wynwood Norte District Project

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ABH Developer Group, a rapidly growing, fully integrated real estate firm, has begun vertical construction on Wyn 05, a boutique four-story mixed-use development featuring 25 modern apartments and approximately 1,000 square feet of retail space at 3422 NW 5th Ave. in the burgeoning Wynwood Norte district. Completion is estimated for Q2 2024.

“We are thrilled to introduce Wyn 05 to this emerging neighborhood and contribute to the Wynwood Norte’s growth and vibrancy. Wyn 05 will offer tenants exquisite living spaces in an ideal urban environment that truly embodies the spirit of Miami,” stated Alexis Bogolmoni, CEO of ABH Developer Group.

Wyn 05 offers a range of studios and one-bedroom apartments with an average unit size of 525 square feet and a rooftop terrace offering stunning views of the city skyline. Wyn 05 will present a coveted opportunity for renters seeking affordable and flexible living options in a prime location.

Apartments feature modern Italian design. Guests will indulge in a fully equipped kitchen adorned with appliances from renowned brands and unwind in a den accentuated with elegant fixtures, complemented by spacious walk-in closets and an outdoor terrace, perfect for relaxation and entertainment.

Guests will enjoy Wyn 05’s convenient location surrounded by the city’s most desirable attractions. The project is situated between NW 34th Street and NW 35 Street along NW 5th Avenue, and adjacent to a plethora of art, cultural and entertainment and dining destinations including Wynwood Arts District, Miami Design District and Midtown Miami.

ABH Developer Group is the largest property owner in the Wynwood Norte District, having assembled a total of 180,000 square feet since 2021. The firm has 13 projects ranging from 24 to 150 units in various stages of development within the Wynwood Norte boundaries.

 

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Developer Plans Nearly 900-Unit Workforce Housing Project Near Allapattah

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Developer and investor Vivian Dimond took over a land lease near Allapattah where she plans a nearly 900-unit workforce housing project.

Dimond, a principal at the Coconut Grove-based private equity firm Bayshore Grove Capital, said the project will cost an estimated $175 million to develop. It’s expected to include two 15-story buildings constructed next to the Earlington Metrorail Station at 2100 Northwest 41st Street in Miami’s Model City, on the northern border of Allapattah.

Dimond’s Earlington Metro LLC paid $9 million to acquire the 99-year land lease from EH Development, led by Alain Lantigua, in August, records show. EH Development signed the lease with Saint James Community Development Corp. in 2020. Miami-Dade County owns the 7-acre property.

Arquitectonica is designing the project, which will include 856 apartments ranging from studios to three-bedroom units, as well as about 35,000 square feet of retail space, according to a press release.

 

Source:  The Real Deal

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Shelborne South Beach To Undergo Major Renovation

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A joint venture between Westdale Properties (“Westdale”), King Street Capital Management (“King Street”), and Cedar Capital Partners (“Cedar Capital”), (together the “Development Team”), announced plans for the new “Shelborne South Beach by Proper” (the “Hotel”), located at Collins Avenue and 18th Street in South Beach.

Major renovation and a redesign of the Hotel’s guestrooms, food and beverage venues, pool deck, cabanas and meeting and event spaces have begun. Following completion of the renovation, the Hotel will be managed by Proper Hospitality and will be the company’s first hotel in Florida.

Drawing from the rich history and heritage of the Shelborne South Beach, the Development Team is committed to preserving the Hotel’s 1940 Art Deco distinction and authentic charm, while modernizing the Hotel through a comprehensive $85 million renovation. Capturing the essence of Miami’s Art Deco and MiMo architectural history, the design will fully embrace the rich legacy originally crafted by Igor Polevitzky and later improved upon by Morris Lapidus —two of the most celebrated Art Deco architects of the mid-20th century.

“With our partners and Proper Hospitality, our role is to serve as custodians of the past while preserving the rich heritage of this iconic hotel,” said Mitchell Cohen, Chief Operating Officer of Westdale Properties. “Our intention is to retain, and, in fact, restore, all of the original heritage elements and imbedded history in order to make the new Shelborne South Beach by Proper capable of ushering in, and once again elevating, the famous Miami Beach Art Deco destination. It is a perfect fit for us as Proper Hospitality shares our objective of ensuring the heritage of the Shelborne South Beach continues and will be protected and enjoyed by future generations.”

All the heritage elements in the Hotel will be saved and restored for enjoyment by all.

“After decades of being hidden, the magnificent two-story windows along 18th Street will once again be brought back to life, flooding the new lobby with natural light, the way it was originally designed to be,” added Cohen.

Westdale has a substantial real estate portfolio in Canada and the US (including extensive properties in Florida) and investments in local Miami hospitality businesses (e.g., restaurants such as Swan and Komodo). Westdale is also developing Frank Gehry’s first residential towers in Canada, and his tallest in the world: Forma Toronto.

The Development Team worked extensively with the City of Miami Beach and local preservation agencies to ensure the restoration would both honor and care for the architectural legacy and history of the Hotel.

“We are thrilled to see the historic Shelborne South Beach begin its renovation and rehabilitation project. We are thankful to the owners for their investment to preserve the iconic hotel designed by Igor Polevitsky, with a later addition by Morris Lapidus. It is truly one of the great Art Deco district landmarks” stated Daniel Ciraldo, Executive Director of the Miami Design Preservation League.

 

“We are pleased to partner with the Development Team and the City of Miami Beach on this next chapter for the Shelborne South Beach,” added Mark Van Zandt, Managing Director and Co-Head of Real Estate at King Street. “As the South Beach district continues to transform, we believe the Hotel will further cement the area’s reputation as a premier global destination, aligning with our mission of adding value to neighborhoods through thoughtful design and execution.”

 

“Building on Proper Hospitality’s success in locations such as Santa Monica, Los Angeles, Austin, Palm Springs and Maui, Proper’s design aesthetic and redefined take on luxury will breathe new life into the Shelborne South Beach, restoring it to its grandeur of a half century ago,” said Ben Leahy, Partner of Cedar Capital.

Shelborne South Beach by Proper will feature 251 guest rooms and suites and will reopen in early 2025. In the coming months, Proper Hospitality will announce details surrounding the design, programming food and beverage concepts, and spaces that ensure the hotel will be an exciting new destination for locals, groups, and global leisure visitors alike.

“Proper’s seasoned leadership team has a long history operating high-end experiential design hotels in Miami and we are excited to return, introducing Proper’s take on redefined luxury to the South Beach market. Miami is a coveted destination among our guests and Shelborne South Beach by Proper will showcase how we are able to create a feeling of belonging and connection for our clientele through our one-of-a-kind design, a signature style of service, vibrant food and beverage outlets, and dynamic guest experiences,” said Brian De Lowe, Co-Founder and President of Proper Hotels.

Shelborne South Beach by Proper will usher in a new level of hospitality, bringing together immersive design, thoughtfully designed experiences, and programming to become a defining centerpiece of Miami’s vibrant South Beach.

 

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Shvo Secures Approval For The Alton In Miami Beach

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Final approval was obtained by Michael Shvo for his mixed-use project in Miami Beach, which was created by the renowned architect Norman Foster.

The Alton, a six-story building, will have five luxury apartments, 17,000 square feet of ground-floor retail space, and 170,000 square feet of rentable office space. It’s unknown if the residential buildings will be rentals or condominiums.

This Monday, the Miami Beach Design Review Board unanimously approved the construction, after the city’s Planning Board’s approval three months earlier. Foster + Partners, the company that Foster started in 1967, is designing the complex, and Kobi Karp will be the local architect for it.

Construction is expected to begin next year.

 

Source:  Commercial Observer

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Why Food Halls Whet Developers’ Appetites

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For years, food halls have been a tempting option for commercial real estate developers and investors who hunger for more flexible lease structures and for a delectable option for repurposing often obsolete properties. But this appetite has not been sated. If anything, it has only grown with feeding.

In a five-year span, the number of food halls has doubled from 150 in 2018 to 352 in 2023, according to Cushman & Wakefield data. The number will soon grow even higher with another 147 food halls currently at some stage of development, according to Richard Latella, executive managing director and retail practice group leader for Cushman & Wakefield’s valuation & advisory group. He noted that food halls are also spreading into more tertiary markets compared with around a decade ago when 20 percent of the assets were in New York City.

And while an increasing number of mall developers have sought to transform their properties with food halls, they’re hardly the only ones who are taking unused space and filling it with local (read: non-chain), pop-up and artisanal dining options. Even former warehouses or industrial assets are shaping up as options for food hall owners to park.

The concept is gaining favor with lenders, too, who are more likely to invest with mall properties that feature creative amenities to draw visitors, according to Latella.

“The money will go with those owners that show that they can adapt and continue to change their mix to make it relevant, and I think that they’re the malls that are beginning to differentiate themselves from others,” Latella said. “With such a trend going towards food and entertainment, food halls keep people at the malls longer if you have the right mix and the right profitability. It’s very important for the operator, and I think many of the operators have recognized that.” 

Latella said food halls are attractive from an underwriting perspective largely because consumers seek “an experience” when dining but also are eager to support local restaurants. He noted that food halls with the right mix of retailers attracting local diners, coupled with a central bar area where adults can congregate, can yield higher occupancy and rents along with improved revenue. 

The food hall at Zero Irving illustrates the trend’s recipe for success. Zero Irving is a new office building and technology training center in Manhattan’s Union Square, developed by Ral Development and the New York City Economic Development Corporation in space that once housed a P.C. Richard & Son electronics store. Urbanspace opened a 10,000-square-foot food hall there a year ago with 13 vendors. 

In an effort to produce unique offerings, 25 percent of the food hall booths at Zero Irving were reserved for first-time restaurant entrepreneurs or those operating for less than four years. The food hall utilizes licensing agreements with the vendors, which in addition to benefiting the property owner can also enable more creativity from the individual businesses, according to Josh Wein, finance director at RAL. 

“It attracts the food vendors to be more willing to either start something new or expand on a concept and try different things when it’s a license agreement rather than making that long-term commitment on a lease with a restaurant,” Wein said. 

RAL had never included a food hall in a project before, but Wein said the developer liked the idea of using it as an amenity to draw office tenants to Zero Irving. The 21-story building, which was completed earlier this year, is 96 percent leased with rents ranging between $100 and $150 a square foot, according to Wein. This is despite increased hybrid working trends spurred by the COVID-19 pandemic. 

Bank OZK provided a $120 million construction loan for the overall Zero Irving project in 2019. Wein noted that financing food halls creates some challenges for lenders in terms of underwriting future rents.

“A lot of these food hall agreements are basically management agreements with a base rent that’s relatively low, and then there’s a revenue-share agreement with the landlord,” Wein said. “That is a little bit more difficult to get financed from a lender because, even if you as a landlord and an entrepreneur believe in the food hall plan, getting a lender to underwrite anything more than a base rent is going to be difficult.” 

On the other side of the country, the Westfield Topanga mall in Southern California’s San Fernando Valley added a 50,000-square-foot food hall with 27 Los Angeles area eateries and bars. The $250 million project from Unibail-Rodamco-Westfield and joint venture partner Earl Enterprises includes a 55,000-square-foot space at a former Sears site. It replaces a former food court housed in another area of the mall. 

Development firm Casazza Company also invested heavily in the food hall concept with Reno Public Market in Reno, Nev., which opened last year in the former Shoppers Square Shopping Mall. Casazza selected a food hall operator via a venue management contract that provides a detailed set of owner-operator deliverables, where vendors obtain license agreements. There is also a large central bar space leased and operated by Fireten Hospitality, an affiliate entity of Casazza. 

Mall owners like these with food halls will often utilize percentage rent leases with vendors due to financial and reporting structures required of most mall ownership entities, according to Phil Colicchio, a food hall consultant and executive director at C&W. Colicchio added, though, that “more enlightened mall owners” opt instead for a master lease concept for food hall operators, rather than leases, to obtain license agreements from vendors. He said this structure creates more transparency with mall owners, who are better able to report income to enable easier valuations of the properties. 

Colicchio noted that the pandemic spurred many property owners to deploy percentage rents with food halls. 

“Percentage rent is the common denominator between a license agreement and a traditional lease, and the pandemic helped it to become more acceptable since there was a recognized need by the landlord community for the restaurants to continue to operate,” Colicchio said. “For periods of time, the only way to accomplish that was through a percentage rent agreement.” 

Fran Faulknor, managing partner at Alpine View Investments, is in the process of developing a $6.8 million food hall project in South Lake Tahoe, Calif. Called Cascade Kitchens, the food hall will be developed on a 12,000-square-foot space that Kmart previously utilized as a warehouse. Kmart owned the property for about 30 years before Alpine acquired it in 2021 with a vision of creating the first food hall in the Lake Tahoe region.

Faulknor said she had previously explored tackling food hall developments and was particularly drawn to this opportunity given the property’s location in a touristy area with high rents for restaurants due to a lack of supply. The project will include a commercial kitchen that users can rent on a membership basis, which will be the first dedicated facility like this on Lake Tahoe’s south shore, according to Faulknor.

“Food halls are an excellent business model, especially in select markets and select situations,” Faulknor said. “Food halls, especially when they are well sited, can also be a huge benefit to the community both in terms of the way that they can provide really great options to local residents as well as tourists, but then also give an opportunity to young restaurant businesses to get their start without having a huge amount of overhead.”

The Cascade Kitchens project will utilize licensing agreements, which Faulknor said is beneficial for the property owner since it provides flexibility in working with vendors and sharing revenue. 

Alpine View closed a321`1 $4.7 million construction loan with Greater Commercial Lending (GCL) in November to help jump-start the project’s development, which is slated for completion in fall 2024. 

 

Source:  Commercial Observer

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Real Estate Mogul Robert Finvarb Cos. Plans Hotel In Wynwood

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On December 5, the Wynwood Design Review Committee will review designs for an 11,250-square-foot site located at 160 N.W. 28th St.

The parking lot was purchased in March for $6.7 million by Robert Finvarb‘s Miami-based company, 160 NW 28 St Associates LLC.

The hotel would have eight stories and total 45,770 square feet. It would have 116 rooms, a restaurant with 205 seats in 3,698 square feet on the mezzanine level, and a restaurant with 156 seats on the roof. Additionally, there would be 24 parking spots on the basement level, a gym on the second story, and a rooftop pool.

The sizes of the rooms would be 298 to 624 square feet.

Finvarb stated that the hotel will feature rooms that were full-sized, in contrast to the current Wynwood hotels that offer smaller rooms. For this project, he anticipates inking a branding agreement with a large hotel chain.

He hopes to break ground in Wynwood in the third or fourth quarter of 2024.

 

Source:  SFBJ

 

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Investor Plans To Renovate Miami Beach Hotels

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The historic Bellamar and Viking Hotel in Miami Beach could get a makeover.

Private investor Richard D Cohen Lancry filed a plan to renovate the three-building complex that includes both hotels and a utility building situated between them. The low-rise property, completed in the late 1930s and designed by Roy France and GL McCann, spans 11,790 square feet at 220 and 230 31st Street, west of the oceanfront Palms Hotel & Spa.

Lancry, who’s based in Sunny Isles Beach, wants to tear down the one-story utility structure in the middle of the 12,000-square-foot site and replace it with a courtyard that will include a pool deck and dining area. Plans also call for the two hotels to have 46 rooms — six fewer than the current number — as well as a front lobby and a “modest” restaurant and bar.

The investor acquired the property for $8.4 million last year, according to property records.

The Miami Beach Historic Preservation Board is scheduled to hear the proposal Dec. 12.

 

Source:  Commercial Observer

 

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