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Miami Board Denies Wynwood Station Mixed-Use Project

A mixed-use residential project planned for the east side of the Wynwood Arts District, near Midtown and Edgewater, was denied by the City of Miami’s Urban Development Review Board.

Developer-owner Newcomb Properties #2 LLC plans to build Wynwood Station at 45 NE 27th St.

But the board voted unanimously Nov. 17 to deny the project, after voicing numerous concerns including the massing of the building, location of a trash chute, location of elevators, design of the parking levels and ramps, the width of a covered walkway, the size of a courtyard and more.
Board member Ignacio Permuy said of the project, “It’s a good start but it’s just not there yet.”

Total size of the floor area for Wynwood Station is 331,846 square feet.

The planned eight-story building would be home to 210 dwellings, 11,152 square feet of commercial-retail uses, and parking for up to 283 vehicles in an adjacent screened garage.

The development site is on Northeast 27th Street, south of Northeast 28th Street and east of North Miami Avenue. The contiguous mid-block site is in the northeast quadrant of Wynwood, near the Florida East Coast Railway line.

The applicant is FRC Realty Inc., represented by attorney Steve Wernick.

In a letter to the city, he said the plan is “to redevelop this former industrial yard into a mixed-use multi-family residential project that will activate NE 27th Street and contribute to the ongoing transformation of Wynwood into a 24/7 mixed use walkable neighborhood.”

The project was designed by MSA Architects Inc.

Zoning allows up to five stories by right and eight stories with bonus height. A future land use designation permits a wide range of residential and non-residential uses up to 150 units per acre across the properties, Mr. Wernick said.

“The property is a sprawling industrial yard and currently used as a Sunbelt construction equipment rental and storage facility. The existing conditions impose a hard-edge intent on bufferingthe site from the public realm and pedestrians on the sidewalk. It is a site that is quite reminiscent of Wynwood’s former self as an industrial warehouse district, with few trees or shade from the elements,” he said.

Mr. Wernick wrote, “NE 27th Street is a unique street as the link between Wynwood & Edgewater and thus acts as an eastern gateway into the arts district planned for greater pedestrian orientation in the Wynwood Streetscape Master Plan.

“NE 28th Street in its current condition functions as an oversized industrial alley, with little to no right of way improvements and much narrower than a standard right of way in Wynwood,” he said.

Mr. Wernick said the project gives considerable attention to the public realm in the area, including introducing a cross-block paseo connection that will provide much greater mobility and accessibility.

“With the required right of way dedication contemplated with the project, the project will greatly improve and activate NE 28th Street,” he said.

The property is also steps from the intersection of Northeast 27th Street and the FEC Northeast Corridor, the anticipated location for a future commuter rail station that has not yet been approved.

Mr. Wernick said FRC Realty Inc. is an affiliate of Fifield Holdings. Founded in 1977 by Steven Fifield and headquartered in Chicago, Fifield is a national real estate developer with expertise in land acquisition, structured finance, construction management, architecture and design, and asset management.

Over the past four decades, Fifield has developed more than 13,000 residential units and 8.7 million square feet of commercial projects – in markets from Chicago to Los Angeles.

Mr. Wernick noted that the developer had already presented the plan to the Wynwood Design Review Committee and the plan they were showing the city’s review board “has changed significantly” based on comments from the Wynwood committee.

Review board members questioned why the developer’s team would go before the city board before making a planned return before the Wynwood committee.

And some board members said they preferred the look of the planned building seen in earlier renderings, before the changes.

Board Chair Willy Bermello said, “I don’t think you’ve improved this at all … It’s a big building with no statement as to its entrance.

“I’d also like to see what you did the first time. I’m not impressed with what you currently have,” he said.

Board member Anthony Tzamtzis said, “I have many issues with the building, so many I don’t know where to start from.”

Board member Neil Hall said, “I would have loved to see the first design that you did, and which caused you to rework the entire scheme. The scheme presented here today, I’m not in tune with it. I’m getting no positive vibe. I would have liked for us to have the opportunity to react to the first one.”

Mr. Wernick responded, “We feel a little like a ping-pong ball,” and that scheduling issues complicated matters.

After the board voted to recommend denial, Mr. Bermello said hopefully the board would see the developer back with a refined plan, after again meeting with the Wynwood Design Review Committee and continuing to work with city staff.

 

Source:  Miami Today

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Miami’s Art Basel Returns With Real Estate Fanfare

It’s all work and all play for Miami’s real estate developers this week. Art Basel Miami Beach is back and that means there are parties to attend, art to marvel at, and most importantly, deals to be made.

The prestigious modern art fair, canceled last year due to the pandemic, returns this week with all the surrounding spectacle. Over the years, the event has burnished the Magic City’s image from party town to highbrow cultural center (with a lot of highbrow partying mixed in). Not only do attendees fill up hotels and restaurants, but rich buyers and investors also make an appearance, providing local developers and agents opportunities to broker deals.

Each year, thousands descend onto Miami for the week of Art Basel, turning the city into a hedonistic paradise. Hotels have filled up at top dollar. (Good luck getting a room at any establishment this week.) Sought-after restaurants are packed or closed for private events that boast A-list celebrities. (The Red Rooster is set to host a soirée for designer brand Ferragamo.) And world-renowned artists offer concerts for the lucky few. (Cardi B and Lizzo are said to be performing at exclusive Miami Beach hotels this week.)

There’s no better advertisement for the city.

“I use Basel as a showcase for Miami and all of our businesses,” said Miami-based developer Camilo Miguel Jr., CEO of Mast Capital, which is developing high-rises in Brickell and Miami Beach. 

For real estate executives, Art Basel is as much about play as it is about work. Miguel has a ticket to the fair, where he plans to meet potential investors.

“While we’re walking around, looking at art — we’re talking about art, obviously — [but] we’re also talking about the markets and where there are opportunities,” he said. 

The event provides a rare opportunity to get close to moguls and top business executives. Deco Capital Group is developing a waterfront mixed-use project in Miami Beach, a mere mile from the convention center. The firm’s founder, Bradley Colmer, hopes to meet a buyer for the 15,000-square-foot luxury penthouse apartment, or a tenant to fill the development’s 32,000-square-foot office, say the head of a hedge fund perhaps.

“Can those kinds of meetings happen in the absence of the type of environment that Art Basel creates? Yes, they can, but it requires a little more effort,” Colmer said. 

While talks usually begin during the week of the fair, deals rarely close during that timeframe, both developers agreed.

The residential market is another story. Art buyers and onlookers may also want to snap up a residence. It’s no coincidence that Carlos Rosso, former president of the Related Group’s condo division, launched his first project since leaving the firm, the 228-unit Standard Residences in Midtown Miami. The developer hosted a mid-day cocktail party for brokers and potential buyers at The Standard Spa hotel in Miami Beach.

This year’s edition also marks the return of international buyers, with some brokers looking with apprehension. Earlier this fall, President Biden lifted all restrictions for vaccinated travelers after a 19-month ban. During the hiatus, residential real estate prices have soared thanks to domestic buyers flocking to the Sunshine State.

Douglas Elliman’s Dina Goldentayer, one of Miami’s top luxury residential brokers, sees this week as a ”litmus test” for foreign appetite.

“When they were here two years ago, a house they liked for $7 million is now $12 [million]. Are they going to act or are they going to have sticker shock?” the realtor said.  

While Miami this year has rebranded itself as a nascent business hub, attracting high-profile companies, many credit Art Basel for starting the trend back in the early aughts. Thanks to the art fair, which held its first show in 2002, the city has gained a reputation as a cosmopolitan destination with serious cultural offerings, no longer just a place for beach bums to sunbathe. Following the success of Art Basel, competing shows, such as Art Miami and Red Dot, have sprung up. In response, the city’s hospitality scene improved to cater to a high-end clientele.

None has benefited more than South Florida’s real estate industry.

“[As] more Picassos have been sold in Miami, the price of real estate has gone up,” said Rosso, who’s developing a condo in the city. “Miami, after so many years of coming down to buy art, becomes a possibility of a place to live.” 

 

Source:  Commercial Observer

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A Skatepark Is The Centerpiece To This Miami Developer’s New Mixed-Use Concept

Miami is slated to get a new mixed-use hangout, with a skate park serving as the centerpiece.

The concept, dubbed SkateBird, will serve as a skating arena, shopping hub, event center and food hall.

The 32K SF facility — located at 533 Northeast 83rd St. in the mostly residential village of El Portal, just north of Little Haiti — is said to be a first for the state.

The open-air venue, set to have a soft opening this month, has a concrete plaza for street skateboarding and a pump track with a roof to protect from sun and rain.

The facility will also have a full-service kitchen and bar, its own skate shop, and pop-up micro-retail spaces — made from shipping containers — where artists, fashion designers or other vendors can sell their wares. It will also serve as a community hub, hosting events and musicians.

Customers can buy memberships for $75 per person, or a VIP membership that covers five people for a year for $3K. Those include access to skateboarding sessions, happy hours and events, plus discounts on food and merchandise.

The project is led by Miami-based Jonathan “Joner” Strauss, also the founder of Skateboard Supercross, or SBSX, a company that helped design 5,000 parks worldwide. With that concept, he aimed to build facilities all around the world, described on the company’s website as “mini stadiums that provide a strong sense of community” based on “one of the most marketable and memorable sports in the action sports industry.” He’s also envisioned skatepark resorts, according to his LinkedIn profile.

Strauss considers SkateBird to be “the newest concept in sports and entertainment,” according to the Miami New Times.

“We’re giving the answer as to what is lacking in public skateparks, which is there’s never amenities for families to take advantage of, like shade structures, water fountains, or bathrooms,” Strauss said to the outlet. 

The facility aims to be inclusive with lessons for all ages. It will also sell its own brand of beer.

A grand opening is scheduled for Dec. 3-5, during Miami Art Week.

 

Source:  Bisnow

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Wynwood Just Got A Little More Vibrant

the gateway at wynwood_mural 3As the The Gateway at Wynwood building nears completion, the long-awaited exterior garage cladding, which depicts a vibrant mural, has been fully installed just in time for Art Basel next month. Additionally, the rooftop deck has been completed and signage is going up around the building.

The Class A office building, developed by R&B Realty Group and designed by renowned Miami architect Kobi Karp, has helped turn Wynwood into a mini-city.

The office building, which found inspiration in Wynwood’s innovative spirit and modern vibe, will allow Wynwood’s new residents to walk to their offices and shops without having to get in their cars. Wynwood, which used to be home to neglected warehouses, is seeing a construction boom of condos and apartments and, now, office buildings as well.

The Gateway at Wynwood offers about 195,000 square feet of leasable Class A office space and nearly 25,900 square feet of prime street-level retail space at the intersection of Wynwood and Midtown. This summer, R&B Realty Group announced the building’s first office lease signed with biotech company Veru Inc. The eight-year, 12,155-square-foot lease will serve as the company’s global headquarters and triple Veru’s current office space.

 

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The Pandemic Has Made Healthcare Real Estate More Desirable

“The pandemic increased demand and made healthcare a more desirable asset class,” Rahul Chhajed, VP and senior director of healthcare at Matthews Real Estate Investment Services, tells GlobeSt.com about how the asset class fared during the pandemic.

For one, medical properties moved onto the list of darling asset classes, and it isn’t hard to understand why.

“It is no longer just a recession that investors are worried about. If there is another pandemic, healthcare services are something that people are always going to need. At the end of the day, everyone needs medical care,” says Chhajed.

With the exception of a temporary pause in the market at the beginning of the pandemic, when elective surgeries and other healthcare services were paused to allow healthcare providers to focus on COVID-19, healthcare properties outperformed other asset classes. Chhajed notes that many tenants didn’t need rent relief and continued to pay rent.

This year, investors have been trading out of more challenged asset classes, like retail and office, in favor of medial facilities.

“COVID really provided a proof of concept for the industry to show that this product type is here to stay. It is not only institutional, but it is an asset class that private capital should look at as well,” says Michael Moreno, VP and senior director of healthcare at Matthews Real Estate Investment Services.

Institutional capital has been the dominant player in the healthcare sector, and that is because it can be a more complicated asset class. Now, both institutional capital and private investors are competing for deals.

“More institutions have definitely entered the ring, but we are also seeing the private markets have started to buy these deals,” says Moreno.

And, there is a third player: owner-occupiers. Existing owners are looking at the demand—which has driven cap rates down significantly—and deciding to sell.

“The sale-leaseback market is really picking up, and a lot of that has to do with pricing,” says Moreno.

Over the last few years there has been significant cap rate compression, and owners would rather take the proceeds and put it back into the business and grow.

“Private buyers love those deals because they typically contain long-term leases and they are triple net,”  Moreno says.

On the lease side, retail owners are finding new users in healthcare. Many clinics and ambulatory centers are signing leases in retail facilities as part of the trend from in-patient care to out-patient care.

“Retail-centric healthcare is great for providers because the care is coming to the consumer,” says Chhajed. “A lot of these healthcare systems are looking for ways to provide ease of access, and retail centers meet those needs to make healthcare more accessible. The confluence of these trends is creating a heyday for medical assets after the pandemic. Now healthcare is looking stronger than ever.”

 

Source: GlobeSt.

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Large Mixed-Use Project Makes Big Changes To Win OK In Wynwood

The development team behind one of the largest mixed-use residential and office projects to rise in Wynwood continues to work with the City of Miami Planning Department staff and is confident of final approval.

Owner-developers L&L Holding Co. and Carpe Real Estate Partners are behind The Wynwood Plaza, formerly 29N, which is to rise at 95 NW 29th St.

At its October meeting, the city’s Urban Development Review Board voted to recommend denial of the project to the planning director, citing continued concerns mainly over the massing of the project.

Undaunted by the vote, the development team says it is continuing to work closely with the city staff to address the remaining concerns.

Attorney Steve Wernick, representing the owner-developers, noted that the team already changed the plan to address concerns the board raised in August: worries about the massing along 30th Street and a cross-block passage vehicular access on Northwest 29th Street.

The curb cut for the one-way vehicle entry on 29th Street has been refined with a smaller footprint, said Mr. Wernick.

“We’ve moved some functions into the garage so cars are not queuing in that space,” he said.

The midblock access will be limited to visitor vehicles managed by a valet.

As for the massing on 30th Street, Mr. Wernick said, “We’re working with staff now to introduce an additional element into the façade; it will visually break up the building.”

Designed by architectural firm Gensler, The Wynwood Plaza would bring 12- and 8-story buildings with 509 apartments to the neighborhood, 266,000 square feet of offices, 32,000 square feet of commercial-retail uses, and parking for about 668 vehicles.

“We look forward to continuing our constructive dialogue with the Miami Planning Department and hope to secure final approvals in the near future,” said Adam Metzger, principal and senior vice president of L&L Holding, in an email to Miami Today.

“Since agreeing to acquire the three-acre development site for The Wynwood Plaza just over a year ago, we have been working diligently to produce a design and program that will complement and significantly enhance the dynamic community that surrounds us.

“We greatly appreciate the feedback we have received from a number of important groups, including the Wynwood Design Review Committee, the Wynwood Community Enhancement Association and the city’s Urban Design Review Board.

“The design choices we have made as a result of our conversations have resulted in significant improvements to The Wynwood Plaza’s architecture, pedestrian realm and public outdoor spaces – all of which will benefit residents of the surrounding neighborhood for decades to come,” wrote Mr. Metzger.

He said they remain on target to start initial demolition work early next year.

Mr. Metzger added, “The project is already generating tremendous excitement. We are currently in active discussions for approximately one-third of The Wynwood Plaza’s proposed office space with a number of prospective tenants, which would bring hundreds of new jobs to Miami.”

The project would provide about 25,000 square feet for a ground floor public plaza connected by paseo to the north, south and west.

There would also be about 30,000 square feet of programmable rooftops.

In an Oct. 6 letter to the city, Mr. Wernick pointed out another change to enhance the pedestrian experience.

“The north façade has been modified in multiple ways that elevate and accentuate the paseo entrance. The ceiling height for the 30th Street paseo entrance has been increased from 12 feet to a new 22 feet datum, intentionally creating a more inviting and expansive entry point to the Project from the Wynwood Norte neighborhood into the central plaza and maintaining connectivity through to NW 29th Street.

“The portal width is being maintained at 60 [feet] in width, which is significantly wider than the 10 [feet] minimum dimension required for a cross-block paseo in the NRD-2 and wider than a standard city of Miami right of way, and is pedestrian-only, asserting the importance of the cross-block feature to the Project,” said Mr. Wernick.

“The 30th Street paseo entrance is now adorned with murals on the ceiling and exterior walls above the storefronts to create an immersive art experience … The portal entry is further strengthened by a canopy projection to orient the pedestrian towards the portal and provide additional articulation on the north façade,” he wrote.

The Wynwood Plaza is being described as a modern office tower and a highly-amenitized residential rental building, along with an array of indoor and outdoor dining and retail options.

 

Source:  Miami Today

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Madison Realty Capital Originates $310M Loan For Miami River Towers

Madison Realty Capital has provided a $310-million loan to The Chetrit Group for the first two phases of development of a 6.2-acre mixed-use site located along the Miami River connecting Brickell to Jose Marti Park.

The loan is also secured by land for the third, fourth and fifth phases of development, which is zoned and entitled for approximately 1,300 residential units.

The site will be developed in five phases spanning 2.5 city blocks and deliver 1,928 multifamily units with top-of-the-line amenities, including boat slips.

Madison Realty Capital’s loan will be used to finance Phase I of Miami River, which will deliver a 54-story, 632-unit mixed-use tower; and Phase II, which will consist of a two-building three-story development with 24,000 square feet of commercial space and a publicly accessible esplanade and river walk along the Miami River.

Funds from the transaction will be contributed to the Miami Dade Affordable Housing Trust Fund earmarked for the East Little Havana Area.

 

Source:  ConnectCRE

 

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Real Estate Wins in Miami’s Mayoral Elections

Real estate-friendly candidates and initiatives came out victorious across Miami in Tuesday night’s election, particularly in the mayoral races in the high-profile cities of Miami and Miami beach.

In Miami Beach, Mayor Dan Gelber handily won reelection, capturing 62 percent of votes for this third term. The Democrat had tied his campaign to a controversial referendum to curb partying in South Beach. The referendum proposed rolling back the last-call time to serve alcohol at establishments along famed Ocean Drive, to 2 a.m. from 5 a.m.

The majority of voters agreed with Gelber, with 56 percent approving the non-binding measure.

Proponents say the initiative will help curb disorderly conduct and crime at the wee hours of the night.

“They don’t have to have a 24-hour party. Our residents cannot be held captive to a business model that creates disorder,” Gelber said last night.

Real estate is also at play. Endorsers believe the measure will help revive a historic but shabby part of town, and soften its wild-party image incongruent with the expensive condominiums that surround it.

As Miami attracts corporate giants, developers, including Jorge Perez of the Related Group, say Miami Beach has fallen behind, partially because of the perception of mayhem. Related is looking for a marquee name to fill its One Island Park office development in Miami Beach.

Last month, a tape leaked of Gelber talking with unidentified developers about creating a Political Action Committee to fund city commission candidates that support redevelopment, according to the Miami New Times, which first reported about the tape. The mayor also said he could put initiatives on the ballot favored by developers as a way of bypassing the commission approval.

“In politics, money plays a big part …” Gelber is heard saying. “Tell us what you need to reimagine the areas we know need to be reimagined.”

A Political Action Committee supporting the Ocean Drive measure earned donations from Starwood Capital Group’s Barry Sternlicht and developer Alex SapirThe Real Deal reported.

Critics, like the Citizens for All a Safe Miami Beach, say the measure will cost as much as $40 million in lost tax revenue and drive up unemployment, which will only worsen crime in the area.

Across Biscayne Bay in Miami, Mayor Francis Suarez also cruised through reelection, winning nearly 79 percent of the vote. The Republican elected official was a shoo-in, having raised millions of dollars.

Suarez’s crowning achievement has been to rebrand Miami into the “Wall Street and Silicon Valley of the South” by courting companies to relocate while embracing cryptocurrency. Many took note. Corporate heavyweights BlackstonePoint72 Management and Microsoft, just to cite a few, signed office leases in Miami this year.

Developers have reaped the benefits of the corporate migration. Office landlords have kept rates high thanks to the new-to-market demands. Residential rents and home prices have skyrocketed over the past year due to the influx of moguls and high-earning workers.

Suarez will undoubtedly continue to lobby companies — now with voters’ blessings. “Today we embark on a new chapter to finish what we started,” Suarez said last night. (Representatives for the mayor did not immediately respond to a request for comment.)

The mayoral race in Sunny Isles Beach, a town littered with new oceanfront high-rises, will go to a runoff since no candidate captured more than 50 percent of the vote. Real estate attorney and town commissioner Dana Goldman will face another commissioner, Larisa “Laura” Svechin. 

Down south, Homestead Mayor Steve Losner squeezed out a victory, winning by 68 votes.

Out west in Hialeah, Esteban “Steve” Bovo, who earned an endorsement from former President Trump, won the mayor’s race.

 

Source:  Commercial Observer

 

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CRE Has Biggest-Ever Sales Quarter

Investors purchased $193 billion in commercial real estate during the third quarter, marking a reported record that surpassed pre-pandemic spending by 19%.

Apartment buildings, life-science labs, and industrial spaces to support the e-commerce boom drove the record period, according to data from Real Capital Analytics reported by the Wall Street Journal. The report notes sales of the properties surged so much, they canceled out shrinking office and retail markets and defied dire predictions of the sector’s crash.

The record period is part of a record year for the sector. The Journal reports sales in the first nine months of the year hit $462 billion, 10 percent more than the same time in 2019 and the highest of the same period from any other year.

Investors in commercial real estate previously outpaced pre-pandemic figures in the second quarter, spending $144.7 billion. This marks almost triple the purchases in 2020, but $50 billion less than the most recent purchases.

Data and analytics firm Green Street’s index for tracking property owned by REITs also showed a surge in activity. According to the Journal, the index is up almost 22 percent from its pandemic nadir and 8 percent from pre-pandemic times.

The boom is largely fueled by investors snagging a large number of single properties in a multitude of deals, rather than previous booms featuring plentiful portfolio sales, or sales of entire companies.

Green Street data show the hot commercial real estate market is being paced by industrial real estate and the multifamily market. The Journal reports that the industrial market has soared 41 percent in value since before the pandemic, while the multifamily market has seen a 19 percent increase in value.

The industrial market hit several records in the last quarter, including an all-time low in vacancy and record highs in net absorption and average asking rents.

In addition to new deals, developers in the space are setting records this year. A record 521.4 million square feet of space was under construction in the third quarter and approximately 340 million square feet is slated for delivery this year.

However, the surges in activity aren’t being felt universally across all parts of the industry. According to Green Street data, the value of shopping malls are down 13 percent during the pandemic, while the values of hotels have dropped 4.2 percent and office buildings have dropped 5.6 percent.

 

Source:  The Real Deal

 

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New Lease On Life: Apartment Projects Popping Up At Distressed South Florida Shopping Centers

Residential redevelopment of South Florida shopping centers is becoming more common, amid solid demand for rental housing and a slack market for retail space.

This month, Houston-based developer Morgan Group won a land use change to build 356 apartments on the site of a former Macy’s store and parking lot at Pompano Citi Centre, a shopping center in Pompano Beach on the southwest corner of Copans Road and Federal Highway.

“We haven’t seen many of these residential transformations at commercial centers, but I think you’ll start to see more of them as the centers unfortunately start losing tenants on a permanent basis,” said attorney Neil Schiller, a founder and shareholder of Boca Raton-based Government Law Group who represents real estate developers.

Shopping centers in densely populated areas are among the best in-fill sites for multifamily developments because they can meet the residential, occupational, and recreational needs of residents, said Art Falcone, co-founder and chief investment officer of Boca Raton-based Encore Capital Management.

“As South Florida gets basically built out, the opportunity now is combining live, work and play,” Falcone said. “People don’t like to be in cars and stuck in traffic.”

Falcone’s company acquired the 34-acre Fashion Mall in Plantation, demolished it, and is replacing it with Plantation Walk, a mixed-use redevelopment that ultimately will include 730 apartments. Tenants have started moving into two newly opened apartment buildings with 410 units, and Falcone expects construction of a third apartment building with 320 units to start early next year.

Falcone said Encore also has received certificates of occupancy for 130,000 square feet of new retail and restaurant space. Other completed projects at Plantation Walk include a Sheraton Suites hotel and a fully leased, 180,000-square-foot office building where insurance giant Aetna occupies half the space.

Newer mixed-use developments in South Florida commonly combine commercial space and rental apartments. Miami-based Terra developed Pines City Center in Pembroke Pines from the ground up with more than 300,000 square feet of retail and restaurant space and 400 apartments.

A positive market response to the residential options at Pines City Center encouraged Terra to acquire a 38-acre shopping center in Miami called Central Shopping Plaza, renovate the existing stores, including a former Kmart store that Target will occupy, and build apartments around them.

The first phase of that redevelopment, called CentroCity, will include 460 apartments, and will be completed in 12 to 18 months, said David Martin, CEO of Terra. By 2024, he said, Terra plans to build a total of 1,100 apartments and 250,000 square feet of office space at the CentroCity property in Miami’s West Little Havana neighborhood.

At Pines City Center, “what we saw was a very strong symbiotic relationship. Residents loved living around a retail offering, and retailers liked having customers who can walk to the store,” Martin said. “It becomes a lifestyle offering for the residents and obviously increases the number of repeat customers” for the retail tenants.

Another large-scale redevelopment is expected to bring a residential component to the Boynton Beach Mall. Columbus, Ohio-based Washington Prime Group won a rezoning of the 108-acre mall in Boynton Beach for a redevelopment that would combine as many as 1,420 apartments and up to 400 hotel rooms with 629,000 square feet of retail space. Washington Prime Group recently emerged from Chapter 11 bankruptcy with a new CEO.

However, shopping center owners like Beth Azor are unlikely to redevelop their properties in the absence of low occupancy rates. Azor is founder and principal of Azor Advisory Services, a Weston-based company that owns six shopping centers in Broward County.

She has no plans for multifamily development at any of her shopping centers because they aren’t distressed – three are fully leased – and because developers are building hundreds of apartments near her centers in Davie, Plantation and Sunrise.

“There are so many wiser, more experienced, richer folks doing apartments, that I like to watch their success from my vantage point,” she said, citing her career as an investor in shopping centers. “After 35 years in the business, I know how to do those, versus trying to learn how to develop multifamily properties.”

 

Source:  The Real Deal

 

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