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TriStar Affiliate Buys Wynwood Property To Start Major Development

An affiliate of New York-based TriStar Capital and New York-based RAL Development Services paid $13 million for a building in Miami’s Wynwood Arts District to set up a major development.

JCR Investments of Boca Raton, managed by Ok Bun Yu in Boca Raton, sold the 31,250-square-foot site at 2701 N.W. Fifth Ave.

The buyer was Brownstar LLC, managed in partnership with RAL and TriStar, a major commercial real estate developer led by and David Edelstein. Dallas-based Comerica Bank provided a $12.1 million mortgage to the buyer.

The property has a 20,239-square-foot building that was constructed in 1963 and recently housed clothing and jewelry retailers.

 

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Development Site In Downtown Miami Sells For $10 Million

As downtown Miami continues to experience an unprecedented amount of activity, Colliers’ Urban Core Division has closed on another land sale located at 56 SW 1st St and 65 SW 2nd Street.

The development site, which sold for $10 million will be home to The M Tower, an approved 53-story, 440-unit apartment tower. This is Colliers’ Urban Core Division’s third land deal in downtown Miami in the last month, totaling close to $100,000,000.

Colliers’ Executive Managing Director Mika Mattingly and Associate Cecilia Estevez represented Downtown 56, LLC, the seller in the transaction. EP Realty’s Estrella Perez represented Downtown 1st Street LLC, the buyer.

M Tower will consist of 622,783 square feet of gross building area, with 25,732 square feet of office space and 1,089 square feet of retail. The development site also includes a parking garage owned by the Miami Parking Authority (MPA), located at 70 SW 1st St.

The 16,718-square-foot site includes air rights, waivers, and the ability to build residential units over the adjacent parking garage. The proposed units are targeted toward students and young professionals looking for a connected urban experience, currently the largest market of downtown residents.

“The downtown Miami market has never been more active than it is right now,” Mattingly said. “This market is poised to see the largest influx of investors ever from other states and this transaction highlights that trend. New York-based Downtown 1st Street LLC’s purchase of this development site proves that the migration from the Northeast has only accelerated as the vibrant downtown neighborhood continues to evolve. 

“One thing that Miami has that other major US cities don’t have is a business-friendly mayor who is welcoming new businesses and investment that creates jobs and expands the city’s tax base to boost our local economy,” Mattingly added. “For years, Miami has promoted smart growth with greater density in downtown Miami due to the area’s easy access to mass transit. The vibrancy of downtown Miami is also increasingly attracting young professionals and families, and this project offers a tremendous opportunity to accommodate the growing population.”

The project has Urban Development Review Board (UDRB) approval, which it obtained through an extensive RFP process. The entitlement provides additional air rights, waivers, and the ability to construct a residential tower over the adjacent Miami Parking Authority (MPA) garage.

M Tower will provide residents with pedestrian access to shops, restaurants, and offices in the Central Business District, an up-and-coming trendy area. M Tower is strategically located near mass transit and major thoroughfares, with direct access to I-95 and the Miami Avenue Metromover station. It is a few blocks away from MiamiCentral Station, which connects to Fort Lauderdale, West Palm Beach, and soon Orlando. The site is also near PortMiami, known as the cruise capital of the world.

Downtown Miami continues to experience robust demand as it attracts a younger, wealthier and more educated population. Downtown is the largest employment center in Miami-Dade, with more than 175,000 employees and a day-time population of 235,000. The city is home to the highest concentration of banks and financial institutions outside of Manhattan, and tourism is at an all-time high with more than 6 million visitors per year. M Tower stands to benefit from the area’s rapid population growth. Since 2010, the population of Downtown Miami has increased approximately 52% and is expected to increase another 16% by 2024.

 

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Bankruptcy Could Lead To Redevelopment Of Downtown Miami Holiday Inn

The owner of a Holiday Inn in downtown Miami filed for Chapter 11 bankruptcy protection, with a plan aimed at luring investors to redevelop the site.

With its close proximity to PortMiami, Bayside Marketplace and the planned Waldorf Astoria Miami luxury tower, the hotel owner’s attorney Linda Worton Jackson said the 10-story building at 340 Biscayne Boulevard is attracting interest from potential investors. The property could be redeveloped as a mixed-use project with a hotel component.

“The site is primed for development,” Worton Jackson said. “It’s in a fabulous location with a lot of investors eyeing it with a view toward redevelopment.”

The hotel is owned by the entity 340 Biscayne Owner LLC that is tied to Brazilian developer Gilberto Bomeny, who paid $65 million for the property in November 2015. The same company sold the land underneath the Holiday Inn to Kawa Capital Management in 2016 in a leaseback deal. The site consists of three contiguous parcels with a combined area of 39,982 square feet, which has been occupied since 1950 by a 200-room hotel currently under the management of Holiday Inn.

On Monday, the owner filed its petition in Miami’s federal bankruptcy court, listing between $100 million to $500 million in assets, and liabilities between $10 million and $50 million. According to the list of the hotel’s 20 largest creditors, the main creditor is 340 Biscayne Lendco, which has a secured claim of about $37 million. First Bank of Puerto Rico has the largest unsecured claim for a PPP loan of $989,219.

Worton Jackson said her client expects to refinance the $37 million loan, keep post-petition debts and pay all creditors in full. By filing for Chapter 11 bankruptcy, the Holiday Inn owner will be able to restructure the existing loans and bring in new equity to improve operations, Worton Jackson said. Day-to-day operations will not be affected, she added.

The 200-room Holiday Inn relied heavily on cruise ship passengers sailing out of PortMiami, Worton Jackson said. They represented 70 percent of the hotel’s Thursday, Friday, Saturday and Sunday bookings, prior to the pandemic, according to a company press release. In 2019, more than one-third of the hotel’s reservations originated from contractual agreements related to the cruise industry.

The hotel, which also has 2,000 square feet of meeting space and onsite dining, operated regularly at 90-plus percent occupancy and had more than $10 million in annual operating revenue, the press release states. Business took a dive when its operations were limited due to emergency orders issued by local governments to curtail the spread of coronavirus. In April of last year, the Holiday Inn temporarily laid off 73 people, according to a WARN notice filed with the state.

“During the pandemic, there were many days that the hotel operated in the single digits,” Worton Jackson said. “They kept it open for essential workers, including airline crews. Virtually all the employees [who were laid off] have been hired back.”

According to the press release, the Holiday Inn’s occupancy picked up significantly in January to an average of 80 percent, and it’s first quarter performance exceeded hospitality industry forecasts. As a result, the Holiday Inn owner broke even on its hotel operations while remaining current on virtually all of its obligations. Once the cruise industry rebounds, the hotel expects to regain profitability, the press release states.

Rich Lillis, Collier International’s executive managing director for hotels in the U.S., said the leisure segment is driving a resurgence in the hospitality sector. Lillis said occupancy in Miami-Dade was 72 percent in the second quarter, compared to 76 percent in the same period of 2019. But the average daily room rate improved by 26 percent, he said.

“Investors are clamoring for Miami,” Lillis said. “I believe we will see a significant amount of transactions with new capital being invested into the Miami market.”

 

Source:  The Real Deal

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Former Pork Processing Facility In Allapattah Could Be Given New Life

Jason and Mera Rubell of the art collector family paid $5.4 million for the former Hightop Products warehouse at 1000 Northwest 23rd Street in Miami. A company led by Charlie and Marilyn Vazquez sold the 1-acre property.

Stefano Santoro, broker and partner at Current Real Estate Advisors’ Miami office, brokered the deal.

The nearly 29,000-square-foot warehouse, built between 1946 and 1951, has been in the Vazquez family for decades. It last sold in 1980 for $400,000, records show.

Santoro said the Rubells were his first call. He called the deal a “nice, easy negotiation.”

The Rubells, who moved their Rubell Family Collection to Allapattah from Wynwood in late 2019, appear to be assembling more land in Allapattah. Records show Jason and Mera Rubell are managers of an LLC named after the property next door to the warehouse they just acquired. Carrera Family Investments owns the nearly 1.5-acre property, which also includes a warehouse.

 

Source:  The Real Deal

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Trio Of Residential High Rises Will Transform This Vacant Spot In Brickell

Miami’s financial hub is slated for three new residential buildings, adding to the number of living options in the dense and trendy Brickell neighborhood.

Behind the SLS Brickell at 1300 S. Miami Ave., two 56-story towers and one 74-story tower are slated to transform 1420 S. Miami Ave., according to plans submitted to the City of Miami’s Planning Department and Office of Zoning. The vacant land spans approximately three acres. The project also includes 1,648 parking spaces and retail space on the ground floor.

Mast Capital Brickell projectGreenberg Traurig’s Iris Escarra submitted the plans on behalf of the applicant M-1420 S. Miami Ave. Owner, LLC, which is managed by Mast Capital CEO Camilo Miguel Jr.

American Da Tang Group, an affiliate of China Communications Construction Company U.S. International, acquired the block-size property in 2014 for about $75 million and still owns the land, according to property records.

 

Source:  Miami Herald

 

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Wynwood Apartment Building Converts To Short-Term Rentals

An apartment building in Miami’s Wynwood has converted into short-term rentals under the new-to-market Sentral brand.

Denver-based Sentral launched in 10 locations across the country July 20, including Sentral Wynwood. The 175-unit building at 51 N.W. 26th St. was previously known as the Bradley Wynwood.

Residents can opt for a traditional monthly rent or pay by the night for up to 29 days.

Miami-based developers The Related Group and Block Capital Group sold it for $77 million in February to an affiliate of San Francisco-based Iconiq Capital. The Sentral platform is backed by Iconiq Capital with an investment of more than $500 million.

At Sentral Wynwood, 75 units are immediately available for monthly residents and the remaining 100 units will be for short-term rentals this fall. Residents can also rent their apartments out while they are out of town.

 

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Aventura Office Buildings Sell For $140 Million

Renaissance Properties sold the Aventura Corporate Center for $140 million to a New York-based investment group that plans to build an addition.

New York-based Renaissance sold the three Class A office buildings and garages at 20801, 20803 and 20807 Biscayne Boulevard to Aventura Opportunity Owner LLC. The buyer, a Delaware entity, lists a New York address.

The buildings total 252,244 square feet.

Maria Gomez of Florida Realty of Miami represented the seller, and Liza Hernandez of PMG Residential brought the buyer.

The 8.7-acre property includes land that the buyer plans to develop into a project with office, restaurants and other uses, according to a release. Zyscovich Architects is designing the addition.

In 2016, Renaissance Aventura LLC, which is affiliated with  investors Kenneth and Robert Fishel, executed a 1031 exchange out of a Manhattan asset to acquire the office complex, which includes two five-story buildings and one six-story building, for $105.3 million. It was developed between 1986 and 2007.

Tenants include Morgan Stanley, South Broward Hospital, Regus, Coldwell Banker, Keller Williams and the Miami Realtors Association. It is fully leased.

 

Source:  The Real Deal

 

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Development Site Near Wynwood, Edgewater, Overtown Sells For $23M

A vacant site just south of Wynwood in Miami sold for $23 million.

Miami Sunrise Properties LLC, managed by Camila Koelbl in Key Biscayne, sold the 2.5-acre site at 1950 N.W. First Ave. and 1905 N.W. First Court to 1950 NW 1 Ave LLC, a Miami-based company that listed Sara Enwright as its sole organizer.

The property last traded for $16 million in 2015.

The parcel is located just south of Wynwood, north of Overtown, and west of Edgewater.

 

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Miami Beach Asks Office Developers To Bid On Sites Near Lincoln Road

Miami Beach has officially launched a request for proposals process to find office developers for several city-owned properties north of the famous Lincoln Road retail strip.

This presents opportunities for one or more developers to build Class A office buildings at a time when an increasing number of wealthy individuals — and their companies, in some cases — are relocating from high-tax states to the city, where office rents are nearing record levels.

There’s the potential to build about 400,000 square feet of office space, plus ground-floor retail, on these properties, said Ken Krasnow, vice chairman of institutional investor services at Colliers International South Florida, which is helping Miami Beach market the RFP.

The properties the city is fielding interest in total 1.38 acres at 1664 Meridian Ave., 1.12 acres between Lenox Avenue and Michigan Avenue, 0.85 acres at the southwest corner of 17th Street and Lenox Avenue, and the parking garage on 2.9 acres at 640 17th St. The parking garage is across from the Miami Beach Convention Center.

The bids will be ranked by a city evaluation committee and then the city commission would vote on the winning bids from one or multiple developers. However, the 99-year lease or leases would require approval from voters in a public referendum because of Miami Beach’s rules on selling city property. The parking lots would need 50% voter approval while a parking garage would need 60% of voters to agree, Krasnow said.

Bids are due by Nov. 15. Interested parties can obtain more information about the proposal here.

 

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Wynwood OKs Unique Public-Private Deal To Bring An Apartment Building Devoted To Affordable Rental Units

A unique public-private partnership has assembled and will bring an apartment building to Wynwood’s southeastern corner devoted entirely to affordable rental units, atop ground floor retail.

Wynwood Works is proposed by Wynwood Works LLC, an affiliate of Magellan Housing, the developer selected by the Omni Community Redevelopment Agency (CRA) to redevelop the property at 2035, 2037 and 2043 N Miami Ave.

The project was approved Monday by the Wynwood Design Review Committee with conditions on a 3-to-2 vote.
The site is in the Wynwood Neighborhood Revitalization District (NRD-1), and within the CRA’s boundary.

Wynwood Works is designed as a 12-story multi-family residential attainable housing project, including 120 units ranging from studios to two bedrooms.

The development will total 179,105 square feet of floor space, and offer 5,698 square feet of ground floor commercial space on North Miami Avenue, with five levels of on-site enclosed parking for about 108 vehicles, and a mix of amenity spaces to support the residents.

Project attorney Steven J. Wernick said the project is participating in the Wynwood Attainable Mixed Income Program, recently established within the NRD-1, with 20% of the units to go to households at or below 50% Area Median Income (AMI), including 10% to Extremely Low Income (ELI) households (at or below 30% AMI).

Mr. Wernick said the project has been submitted and reviewed by the City of Miami Planning Department and Office of Zoning.

Wynwood Works is a key project for the Omni CRA and Wynwood NRD, areas experiencing revitalization and in need of housing for those of modest income increasingly being priced out of Miami’s urban neighborhoods, Mr. Wernick wrote to the city.

The lot is irregular shaped with 25,628 square feet, with a single thoroughfare frontage on North Miami Avenue. With required right-of-way dedications, the net lot area is 17,946 square feet.

Mr. Wernick wrote, “The property has a unique lot configuration, shaped by its location in proximity to the FEC Rail Line, which forms the rear yard of the property running southwest towards the intersection of North Miami Avenue and NE 20th Street.”

He said Omni CRA acquired the property, former site of the Lowenstein galleries, in 2018 to redevelop it with the CRA’s objectives.

The property has two small warehouses, which have been unoccupied for several years, and an overgrown gated parking lot. To the north is a parking lot and FPL transformer lines. To the west is North Miami Avenue, and a part of Wynwood that has remained industrial and seen little redevelopment since the NRD-1 was adopted in 2015.

The 120-unit housing program includes 48 studios (445-plus square feet), 66 one-bedroom apartments and six two-bedroom apartments. The residential component starts on the sixth story, accompanied by a gym, business center and community room.

Mr. Wernick wrote, “The project will be one of the first affordable housing new developments in Wynwood in many years, at a critical time when housing costs have continued to rise, making it increasingly challenging for retaining Miami’s workforce, artists, and others essential for the continued revitalization and growth of areas like Wynwood, Omni and Edgewater.”

Jennifer McConney-Gayoso, principal at Studio MC+G Architecture, detailed for the committee the specifics of the proposed façades and the materials to be used. She also explained areas where artwork will be installed, including unique shadow art on the south side of the building, and a catwalk on the second floor.

The site at one end is limited to about 50 feet.

“It was a difficult site to develop. We squeezed the envelope on this project,” she told the committee.

Even with the tight site, the plan shows 14% open space, more than the 10% zoning code requires.

Several committee members commended the developer and design team for bringing much needed affordable housing into Wynwood.

“It’s surprising you can actually do that in Wynwood,” one member said.

Some were critical of the building’s cake layered look, saying the components need more articulation and the art needs to come down into the ground floor level.

Committee member Erik Rutter said, “We do have to think more about the art, not just as a mural in a box. I like the shadow wall … Magellan is a great developer. This will be a great addition to the neighborhood.”

The committee’s motion to approve includes conditions: improve articulation and integration of the pedestal to the rest of the tower or accentuate/contrast against the rest of the tower; increase art treatments at ground floor level and increase articulation; address the east façade with art intervention; and conceal rooftop equipment.

Mr. Wernick said the applicant is wholly owned by Magellan Housing, an affordable housing developer active in Texas and Florida.

Magellan is developing Wynwood Works in partnership with the Omni CRA. In addition to owning the land, the CRA is providing financial support towards development costs.

 

Source:  Miami Today

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