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Developer Breaks Ground On $40M Miami Beach Hotel

Rendering of Dolce by Wyndham Miami Hotel in Miami Beach_Image Credit SFBJ 1170x435

Glokal Group, based in Argentina, and Blue Road from Miami have commenced construction on the $40 million Dolce by Wyndham Miami hotel in Miami Beach.

The new hotel, featuring 90 rooms, a restaurant and a rooftop pool, will stand five stories tall on a 15,000-square-foot lot located at 1745 James Ave. It is expected to create 45 jobs upon its opening in 2026 and will be managed by AADESA Hotel Management and Blue Road.

Local construction firm Buslam is serving as the general contractor, while Revuelta Architecture is handling the design. Amerant Bank, based in Coral Gables, provided a $21.5 million construction loan to the developers, through affiliate 1745 James LLC, in June.

Previously, the site housed the 36-unit Sanctuary South Beach Condo. The developer bought the condos for $14.41 million in 2019 before demolishing the building.

 

Source:  SFBJ

 

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Wynwood Walls Creator, Developer Partner On Hotel, Condo Building

The Whale & Star building in Miami’s Wynwood Arts District could be redeveloped into a mixed-use project featuring a hotel, condos and commercial space.

The city’s Wynwood Design Review Committee will consider plans for the 37,822-square-foot site at 2215-2237 NW First Place, 175 NW 22nd St. and 170 NW 23rd St. on Sept. 10. It currently has 27,406 square feet of commercial buildings, which would be demolished.

The applicant, Miami-based Whale & Star Wynwood Owner LLC, acquired the property for $24 million in 2023.

Under the proposal, the eight-story building would total 246,307 square feet and feature 214 hotel rooms, 87 condo units, 11,350 square feet of commercial space and 87 parking spaces.

That would include 8,935 square feet of ground-floor commercial space, with the rest comprising a rooftop restaurant and bar. The roof would also feature a pool and a gym. On floors three through five, the hotel rooms would range from 223 to 425 square feet. The condos, on floors six through eight, would range from 406-square-foot studios to 1,592-square-foot loft-style units with up to three bedrooms and mezzanine decks.

Local attorney Steve Wernick, who represents the developer in the application, said the hotel component would be branded and operated by Cloud One Hotels. The condo residents would also receive hotel services and share in the hotel amenities, he added.

The developer is seeking several waivers, including to increase maximum lot coverage, reduce parking by 30% and allow parking on the mezzanine level.

 

Source:  SFBJ

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8-Story Office Building Planned For Wynwood Arts District To Break Ground

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Lombardi Properties will soon break ground on an eight-story office building in Miami’s Wynwood Arts District. Lombardi obtained a $12 million construction loan from Amerant Bank.

Plans call for starting construction on the Doris within the next month and a half and completing it in about 16 months. By His Grace Construction will be the general contractor.

The Doris will have 27,000 square feet of office space and 1,800 square feet of retail space, but there will be no on-site parking.

The project is reported to include small spec suites under 2,000 square feet. The suites will include kitchenettes, two private offices, a private bathroom and a terrace. The Doris will have 14 suites.

Miami-based Deforma Studio designed the Doris.

 

Source:  Connect CRE

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Berkadia Lends $59M For Rockpoint’s Mixed-Use Wynwood Building

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Rockpoint secured $58.9 million from Berkadia for a 603,516-square-foot mixed-use building in Miami’s Wynwood neighborhood, property records show.

The balloon loan covers the Strata, which features 257 apartments, 60,300 square feet of creative office space, 27,040 square feet of ground-floor retail and 474 parking spaces. The eight-story building sits just south of the Oasis mixed-use development at 2201 North Miami Avenue.

 

Source: Commercial Observer

 

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Coworking Space Franchise Takes 19,000 SF In Aventura

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Venture X and a franchiser have secured the second floor of the 11-story 10X Centre, previously known as Aventura Harbour Center, at 18851 N.E. 29 Ave. in Aventura, said Barrett Wolf, CEO and founder of Wolf Co Real Estate Brokerage Investments.

The 19,127-square-foot office is now being built and should be ready for occupancy by third or fourth quarter of 2025, Wolf added.

United Franchise Group‘s coworking division, Vast Coworking Group, partners with franchisers to operate more than 80 locations in six countries under the Venture X, Office Evolution, and Intelligent Office brands.

 

Source:  SFBJ

 

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Six Office Buildings On Tap In Miami Beach

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As South Florida became a magnet for out-of-state companies in the past four years, Miami Beach emerged as a budding office market.

The city landed major leases at record rents during the influx of financial firms, family offices, hedge funds and other businesses. Developers seized on the boom, with plans for new Miami Beach projects. In all, six buildings are on tap, one more is nearly finished and two existing buildings are slated for modernization into Class A offices.

Yet, the additional square footage is coming just as South Florida is off the gold rush. Data shows that the influx of out-of-state companies to the tri-county region has slowed this year, and  Miami Beach’s office market has recorded negative absorption. At the same time, some longtime South Florida companies are shaving their office space due to remote and hybrid work, and others are holding off expansion plans due to inflation and elevated interest rates that make capital more expensive.

All this raises questions as to whether the planned Miami Beach offices will get preleased or fill up with tenants soon after they are completed.

Wayne M. Boich plans a six-story mixed-use building with offices at 1920 Alton Road in the  Sunset Harbour neighborhood.

Also in South Beach, Michael Shvo has approvals for two projects: The Alton, a six-story building with 170,000 square feet of offices and five apartments on the northwest corner of Alton and Lincoln roads; and One Soundscape Park, a five-story, 62,500-square-foot building at 1665 and 1667 Washington Avenue, near Soundscape Park (rendering above).

Meanwhile, the Giller family is betting on Mid-Beach. The family plans 28,200 square feet of offices on the top three levels of a seven-story building on the southeast corner of Alton Road and West 41st Street.

Confident that their offices will lease up, developers point to their projects’ designs, leasing activity at buildings completed in recent years and preleasing at projects already underway. Mainly, they cite Deco Capital Group and RWN Real Estate Partners’ soon-to-be finished mixed-use Eighteen Sunset in Sunset Harbour, where nearly all the office space is spoken for.

But whether this momentum continues for projects on tap remains to play out. Some areas of Miami Beach are better suited to offices, compared to other areas where projects are planned. And South Florida traditionally hasn’t been big on office preleasing, brokers said, as tenants usually only sign up for space once a building is nearing completion.

The preleasing seen in Miami Beach in recent years has been somewhat of an anomaly.

“That was extremely unheard of,” Bijaoui said. A lot of what is planned is more of a “build it and let’s see if they come.”  

The only project aside from Eighteen Sunset to score preleasing so far is The Fifth Miami Beach.

New York-based hedge fund J. Goldman signed up for about 13,500 square feet, representing nearly 25 percent of the building’s 54,500 square feet of offices, a source said. New York’s high-end Italian eatery Sant Ambroeus preleased more than 7,000 square feet of the retail space, meaning a third of the building is preleased.

“The announcement of the Sant Ambroeus and the construction of the superstructure recently reaching the third floor has resulted in a significant uptick in inquiries by tenants,” Amit Khurana, founding partner at New York-based Sumaida + Khurana, said in a statement. 

The Fifth’s construction is expected to be completed in less than a year, according to Khurana.

But one source familiar with the market, who isn’t involved in The Fifth’s development or leasing teams, and requested anonymity, expressed “surprise” that the project “has not had more tenants to announce by this stage in the construction process and how long they have been marketing it.”

Preleasing hasn’t yet launched at Sumaida + Khurana’s second building, which will consist of 76,000 square feet of offices and 11,000 square feet of retail. Construction of the project is expected to start next year, according to Khurana.

Shvo, led by Michael Shvo, also is yet to launch preleasing at its two fully approved projects.

“We have received interest from tenants who are impressed with the design of the buildings,” said a Shvo spokesperson. “While we have received unsolicited offers, we are still very early in the process.” 

Construction is expected to begin next year, according to the spokesperson.

Boich is partnering with Bruce Beal, president of Related Companies; and Andrew Mathias, former president of SL Green, on his project. Beal and Mathias are partnering on the development individually. The developers scored approval last year for a six-story building with  25,200 square feet of offices and 8,300 square feet of restaurants, as well as three condos.

Boich hasn’t disclosed whether office preleasing has launched or the level of tenant interest.

Some Miami Beach office brokers expressed doubt about Shvo’s two projects.

“Shvo is building a lot, so the exposure to it sitting not preleased during or after construction is pretty high, given the scope of how big it is,” said Newmark broker Jeremy Hakala. 

One Soundscape Park likely will score leases as it gets close to topping off, said Clay Sidner, also of Newmark. “After that, at least a 24-month lease up to get the building above 75 [percent] to 80 percent leased up,” Sidner said.

At The Alton, Shvo had been in discussions with JP Morgan Chase to open a private wealth management office on two floors, but the bank opted for a space in Brickell, Bisnow reported, citing documents reviewed by the publication. Shvo Head of Design Jerry Piro denied JP Morgan was expected to lease space.

Shvo, which also plans a restoration of Miami Beach’s Raleigh hotel and the addition of a 17-story condo, recently laid off several of its South Florida employees, Bisnow reported. The move, which leaves four full-time staff members, was made as the firm moves past design and into the construction phase of some of its Miami Beach projects.

Some brokers said both of Shvo’s projects will be in an area that doesn’t command the high rents of Sunset Harbour to the north and South of Fifth to the south.

“Location is really, really important, and the only locations in Miami Beach that can support Class A rent is South of Fifth and then Sunset Harbour,” Bijaoui said. 

Others agreed. At Sunset Harbour’s Eighteen Sunset, half a floor remains unspoken for, though a prospective tenant is expected to finalize a lease soon, according to a source. The project has commanded rents at $170 per square foot, triple net, according to the source. That’s more than $200 a foot, gross rent. Another source said South of Fifth’s The Fifth project also is asking $170 a foot, triple net.

The Giller family’s Mid-Beach project is expected to start in January, with completion expected in mid-2026, Ira Giller said.

The family is betting on demand from both new-to-market and longtime South Florida tenants, as well as on the proximity to Mount Sinai Medical Center. The hospital is developing an adjacent cancer center, slated to open next year.

The Gillers’ building will be elevated in anticipation that the city will eventually raise the stretch of Alton Road along the project, as part of its efforts to buffer against sea-level rise, Giller said.

In the planned building revamps, Shvo in 2022 filed plans to redevelop the 13-story “clock tower” at 407 Lincoln Road, though it’s unclear whether the firm has purchased the building yet. Also, Robert Rivani’s Black Lion plans to turn the six-story The Lincoln at 1691 Michigan Avenue into a class of its own, dubbed Class X. The building has about 120,000 square feet of offices and is 80 percent leased, according to Hakala, who was part of the Newmark team that handled the sale.

Once renovated, the “clock tower” and The Lincoln could pose competition for tenants at the planned projects.

Brokers who remain confident in Miami Beach’s growth as an office market often point to  Bausch + Lomb taking 8,300 square feet this year at Starwood Capital Group’s headquarters building at 2340 Collins Avenue. But the firm actually took over a space vacated by venture capital firm Andreessen Horowitz, meaning it did not result in an increase in leased office space.

According to CBRE, Miami Beach had an 11.5 percent vacancy rate in the second quarter, amid construction of 334,000 square feet of offices. The city’s office market recorded a negative absorption of 15,000 square feet during that period.

Not All Roads Lead To Brickell 

As a whole, the planned new projects would add over 400,000 square feet of offices.

“That’s generally less than one office building in Brickell,” said Lyle Stern, a longtime Miami Beach broker who co-founded Vertical Real Estate last year, adding that the new space will be delivered over time. “It’s not like it all has to be absorbed now.” 

Yet, Newmark’s Hakala said the sooner a project is finished, the better.

“Whoever delivers first is going to benefit from the momentum of the past couple of years more than people who wait,” he said. “Who knows what the world will look like in the next five years?”

Miami Beach has carved out a niche, attracting family offices and small private firms, leasing from 2,500 square feet to 10,000 square feet, with many company executives also buying a mansion in the city, brokers said.

The Gebbia family, once linked to “The Real Housewives of Beverly HIlls,” moved their financial planning firm Siebert Financial’s headquarters to a building they purchased in South Beach in 2022. Also that year, David Gebbia bought a Palm Island home for $5.8 million, and Richard Gebbia paid $6.4 million for a house on Hibiscus Island.

Last year, Boich, who made his fortune in the coal mining industry, dropped $11.6 million for a Miami Beach teardown adjacent to a mansion he owns on North Bay Road.

Boich’s planned office project will be next to his recently completed headquarters for Boich Investment Group at 1910 Alton Road. Mathias’ family office, Bruce Beal and Turnbridge Equities have offices there. Ross + Kramer Art Gallery also leases space.

Although Miami’s Brickell has been the prime recipient of the new-to-market rush, those who hype Miami Beach say the city has a place in South Florida’s office market.

“You still have many people that are moving here and have family businesses and are buying the high-end homes” in Miami Beach,” Giller said. “Some of these people are tired of fighting traffic and going to Brickell.” 

 

Source:  The Real Deal

 

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PMG, Greybrook Secure $178M Refi On Society Wynwood

Society Wynwood_Image Courtesy of Boardroom PR 1170x435

PMG and Greybrook secured $178 million to refinance a newly completed co-living property in Miami’s Wynwood neighborhood, the joint venture announced Monday.

The financing from funds managed by Ares Management (ARES) and Monarch Alternative Capital covers Society Wynwood, a 10-story building with 318 units, 82,000 square feet of amenities — including a gym, a rooftop pool and shared offices — and 17,000 square feet of commercial space.

Since the project’s completion, Miami-based developer PMG and Greybrook, a Canadian private equity firm, have offered up to two months of free rent and — at least this month — $1,000 for moving costs.

Three years ago, the joint venture nabbed a $142 million construction loan from Pacific Western Bank and Square Mile Capital Management to build Society Wynwood. Two years before that, it purchased the 14,905-square-foot site at 2431 Northwest Second Avenue for $24.5 million, according to property records.

This year, PMG and Greybrook sold most of the retail component — 32,000 square feet on the ground floor — to Ben Mandell’s Tricera CapitalAlex Karakhanian’s Lndmrk Development and Michael Simkins Lion Development Group for $22.5 million.

Tenants include StarbucksNacho DaddyChama De Fogo Brazilian Steakhouse and I Scream Gelato. All have yet to open.

Eastdil Secured arranged the recent refinancing. Randy Barcelo from Stearns Weaver Miller represented PMG.

 

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Miami Beach Office Building Changes Hands

801 arthur godfrey road rendering_image credit 801 arthur godfrey road website 1170x435

An office building in Miami Beach sold for $17.5 million.

FG 801 Arthur Godfrey Owner LLC, an affiliate of Miami-based Fifteen Group, sold the 51,806-square-foot office building at 801 W. 41st Street/Arthur Godfrey Road to Leah 801 LLC, managed by Igal Haimov, who is also the owner of Haimov Jewelers in Miami Beach.

The price equated to $338 per square foot.

The building served as the headquarters for Terranova Corp.  in 2021. Fifteen Group started interior renovations on the building this year, according to county records.

The six-story building was constructed on the 22,135-square-foot lot in 1969.

 

Source:  SFBJ

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Mill Creek Cuts Back Ojus Multifamily Project As South Florida Sees Record Apartment Construction Pipeline

Modera Aventura Rendering_Image Credit Corwil Architects, Mill Creek Residential 1170x435

Mill Creek Residential scaled back the second phase of its Modera Aventura multifamily project, nearly halving the building plans.

The Boca Raton-based firm now proposes an eight-story, 251-unit project, down from its previous plan for 15 stories and 420 units, according to Mill Creek’s application to Miami-Dade County submitted last Monday. The proposal also is for a 440,500-square-foot floor area ratio and 358 parking spaces, down from the previous plan for a 688,000-square-foot FAR and 557 parking spaces.

Led by CEO William MacDonald, Mill Creek is developing Modera Aventura on a 5.5-acre site at 2681 Northeast 191st Street and 2660 Northeast 192nd Terrace in the Ojus neighborhood of unincorporated Miami-Dade. The project is near the Brightline station at 19796 West Dixie Highway.

The first phase, a 15-story, 420-unit apartment building, is under construction and its size remains unchanged. Completion of this phase is expected next year, according to a news release issued last year announcing the project’s construction financing. At the time Mill Creek had scored a $107.5 million construction loan from Bank of America for Modera Aventura.

 

Source:  The Real Deal

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Allapattah Apartment Complex Proposed Near Transit Station

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ERF Investments has proposed a five-story apartment complex that includes workforce housing in the Allapattah neighborhood of Miami-Dade County.

The North Miami Beach-based developer filed an administrative site plan with county officials for a 0.25-acre site on the west side of Northwest 23rd Court, just north of Northwest 38th Street. The vacant property is surrounded by single-family homes. It’s located four blocks west of the Earlington Heights Metrorail Station and just south of State Road 112/Airport Expressway.

ERF Investments, owned by Ernesto Perez, assembled the property for $100,000 in 2018.

The five-story building would total 40,809 square feet, with 32 apartments and 18 parking spaces on the first floor. There would be 30 one-bedroom units and two two-bedroom units, each one with a balcony.

Perez said the building would designate 12.5% of the apartments as workforce housing but it could include more workforce housing if he secures funding from the county.

“Our priority is to provide much needed housing options and to support the growth of the community, seeing as the area of the proposed apartments has been labeled by Miami Dade County as an ‘Opportunity Zone’, which allows for job creation and economic growth in low-income communities,” Perez said.

The location of the proposed apartments makes it a convenient location for those needing public transportation to go to work, as the nearest Metro station is less than half a mile away, he added,

Doral-based Sunset Building Solutions is the project’s architect.

 

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