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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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Allapattah’s ‘Authentic Bario’ Feel Makes Way For Increased Development

When she came from Boston in the late 90s to study at the University of Miami, Mileyka Burgos-Flores quickly got homesick. She missed the food and flavor of her Dominican family and she was desperate for a Dominican hair salon. The cafeteria workers she’d befriended at school had the answer: we’ll take you to el barrio, they told her.

That’s how Burgos-Flores, executive director of the Allapattah Collaborative, got to know the neighborhood built up by Black Miamians and immigrants from the Caribbean and Central America. She soon picked up on Allapattah’s distinctive features. The breezy porches where neighbors actually talked to each other across the fence. The cosmopolitan bodegas and the street vendors residents knew by name. And of course, local watering holes like Club Típico Domínicano, the 1980s restaurant that shimmies into a nightclub with live music on the weekends.

“It’s a very warm and welcoming neighborhood,” said Burgos-Flores, whose work entails preserving the neighborhood and helping its small businesses thrive. “People don’t just go into local businesses to get their hair done, or to eat or to do their taxes. They go to hang out; they know each other and they keep an eye out for each other.”

That kind of pride among local residents is what drew art collector Mera Rubell to the area in 2019. Along with her husband Don and son Jason, the family converted a warehouse complex that previously housed a wholesaler of rice, beans and other food items into the Rubell Museum, previously located in Wynwood. The site sits cradled by the metroline and railroad tracks.

“This was a new frontier,” Rubell said. “Our dream was to create a kind of concentrated destination for culture. What’s nice is we’re not displacing anybody. These were old buildings that can no longer accommodate the heavy warehouse use it needs.”

The museum is just one of a collection of art spaces in the area, which runs from State Road 112 south to the Miami River and west from Interstate 95 to Northwest 27th Avenue. Jorge Pérez’s El Espacio 23 has also called industrial Allapattah home for the last two years. The newest addition to the art scene, Superblue, across the street from the Rubell, turned a warehouse into an immersive art space in May. The private museums are neighbors with a massive wholesale grocer; across the street, an open-air fruit market sells tropical fruit juices, coconut water and varieties of mangoes and bananas that swing from an awning.

Other recent additions have drawn people to the neighborhood through their bellies. Even on a weekday at lunch it can be hard to snag a parking spot at Hometown Barbecue, a New York transplant whose Brooklyn location is considered one of the country’s best barbecue spots.

It’s all quickly snowballing to turn Allapattah into Miami’s newest “it” spot. Burgos-Flores’ friends in the neighborhood share sightings of limousines ferrying partygoers to underground nightlife in the area. The charm that caught her eye two decades ago is still present; Allapattah remains a place where the word “authentic” still rings true. But there’s no denying things are changing.

New rentals are popping up and just as quickly evaporating due to demand from those who want to be close to the Miami Health District.

The latest is 14-story No. 17 Residences, on Northwest 17th Avenue. Renters — primarily medical and graduate students and health district employees quickly snapped up apartments, according to Lisette Calderon, CEO of developer Neology Life Development Group. Apartments start at $1,300 per month for a one-bedroom, one-bathroom layout.

“What I see that is exciting is the neighborhood being reimagined,” Calderon said.

Housing-wise, four other projects are in the pipeline.

The highest profile project on the books is a collection of eight buildings — many rising on stilts — designed by Danish star architect Bjarke Ingles for developer Robert Wennett. The project, at Northwest 12th Avenue, called Miami Produce Centerwill include residential units, hotel, office, retail space and a trade school on nine acres formerly home to a produce market. Permits have not yet been drawn, and the timetable is not yet set, said Javier Aviñó, Wennett’s representative for the project and Bilzin Sumberg partner.

Already underway is a senior affordable housing community at 1396 NW 36th St. The 13-story Mosaico should open by January 2022, said Jake Morrow, a principal at developer Interurban.

Along with No. 17 Residences, Neology is planning another 14-story rental nearby at 1625 NW 20th St., dubbed Allapattah 16.

Also in permitting is a third 14-story rental building, Allapattah 14, at 1470 NW 36th St.

For Burgos-Flores, whose work entails helping local mom and pops thrive, taking the foot off the accelerator just a bit seems wise.

“We love all this development that could potentially happen in the area, but we want it to be inclusive and equitable,” she said.

Small businesses she helps in the neighborhood are frequently priced out by rising rents, she said. The average resident is unlikely to be able to afford the luxury units coming up in the area. The median household income in the 33127 zip code is $34,510, according to the county demographic data from this year. Around 31% of the residents live below the poverty line. Displacing a community of people – many of whom first arrived via displacement after refugee crises in their home countries – would shred the neighborhood’s identity, Burgos-Flores said.

“People who live here want to stay,” she said. “And if they go, they want to go because they want to, not because they’re pushed out. They want to have the opportunity to stay and the opportunity to own here.”

 

Source:  Miami Herald

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Lissette Calderon Delivers First Multifamily Project In Allapattah

Developer Lissette Calderon has completed the first of her three apartment projects in Miami’s Allapattah neighborhood.

Nearly two and a half years after buying the land, Calderon’s Neology Life Development Group received a temporary certificate of occupancy for the 192-unit No. 17 Residences, a 13-story building at 1569 Northwest 17th Avenue.

Calderon said it’s “the perfect time” to build in Allapattah, which she said is Miami’s “last authentic urban core neighborhood.” The area has attracted major real estate players, including the Related Group’s Jorge Pérez and 1111 Lincoln Road developer Robert Wennett.

Pre-leasing, including virtual tours, launched earlier this year. Calderon said monthly rents start at about $1,200 for a studio apartment. The building offers “attainable luxury” that was lacking in Allapattah, she added. Studios start at 740 square feet, and one-bedroom apartments start at 600 square feet. Units go up to 1,125 square feet for a three-bedroom, according to the development’s website.

The building is west of the Miami Health District and northeast of her Pier 19 Residences & Marina apartment building on the Miami River. It’s south of the Rubell Museum and the popular Hometown Barbecue restaurant.

Amenities include an 8,000-square-foot park for residents, which was added during the pandemic due to increased demand for outdoor space, a pool deck with cabanas, rooftop garden, fitness center, co-working spaces, and package rooms.

Calderon said she plans to break ground on her next two projects, 16 Allapattah and 14 Allapattah, this summer, and deliver those buildings about 16 months from groundbreaking. 16 Allapattah is planned as a 323-unit rental building with 9,000 square feet of office space and ground-floor retail, and 14 Allapattah, a two-tower project on an Opportunity Zone site, is expected to have 237 apartments and ground-floor retail.

Wennett, who tapped Bjarke Ingels to design his major mixed-use development nearby, secured approval from the Miami City Commission about two years ago for his Miami Produce Center special area plan. The planned 1.4 million-square-foot development could have as many as 2,400 co-living units and 637 traditional residential units, nearly 231,000 square feet of office space, 129,000 square feet of retail space, about 22,000 square feet for “educational uses,” as well as more than 1,000 parking spaces.

Calderon said she has been welcomed by the community in Allapattah, and that she is not displacing residents.

“I go into neighborhoods where I’m wanted,” she said, noting that her firm purchased existing warehouses and shuttered buildings.

 

 

Source:  The Real Deal

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$58M Affordable Housing Development For Seniors Underway In Trendy Allapattah

Seniors seeking affordable housing near art, barbecue and the Health District can soon look to Miami’s up-and-coming Allapattah neighborhood.

The Downtown Miami-based Interurban, a branch of Integra Investments, and the Sunrise-headquarterd property management company Elderly Housing Development & Operations Corporation, or EHDOC, are developing Mosaico, an affordable housing community for seniors.

The 13-story, 290,000-square-foot building will have 271 units, 92 studios and 179 one-bedroom, one-bath units. Amenities include a gym, computer lab, library, laundry room, and rooftop garden.

Mosaico will sit on 1.2 acres at 1396 NW 36th St., two blocks from the Allapattah Metrorail Station north of the University of Miami School of Medicine, Jackson Health and Bascom Palmer Eye Institute — and a short walk to the Rubell Museum, the soon-to-open Superblue art space and Hometown Barbecue in the emerging Allapattah neighborhood. Construction began in September and is expected for completion by late 2021.

“Miami is one of the most significantly rent-burdened markets in the country,” said Jake Morrow, head of Integra Investments’ Interurban. “The pandemic has exacerbated the dire need for affordable housing, especially for the area’s elderly population whose income far too often consists of only Social Security income.

“To serve the community’s needs, Interurban is committed to providing high-quality housing at affordable rents,” he said. “The pandemic has heightened the need for affordable housing. I think that we can see upward pressure on market rents due to an influx of residents from northern cities.”

EHDOC did not immediately respond.

The firms are using low income housing taxing credits syndicated by Boston Capital and tax-exempt bond construction financing from the Housing Financing Authority of Miami-Dade County, which are underwritten and administered by R4 Capital, for the $58 million project.

Interurban and EHDOC hired the architect firm C.C. Hodgson Architectural Group to design the project.

The firms expect to rent the 450-square-foot studios to single seniors and 580-square-foot one-bedroom units to couples. All units are reserved for households with average incomes at or below 60% of the area median income, which is $59,100. In other words, prospective residents cannot earn more than $38,400 per year to qualify.

Residents would spend 30% of their income on rent and would need a Section 8 voucher, administered by the U.S. Department of Housing and Urban Development.

Seniors interested in living in Mosaico must first register on the Miami-Dade Public Housing and Community Development general waiting list at miamidade.gov for affordable housing in Miami.

Integra, founded in 2009, launched Interurban in 2017. In recent years it has focused on mixed-use, market-rate projects; Mosaico and Las Brisas Trace, in Brownsville, near Liberty City, are its first affordable housing developments.

EHDOC operates 55 senior living communities nationwide, including in Florida, Illinois, California, and Ohio.

Mosaico and Las Brisas are among the growing affordable options for local seniors, often strapped by the region’s notoriously high housing costs. Earlier this year, Related Urban announced Lincoln Gardens, a Brownsville project due to open in 2022; and expansion of affordable project Brisas del Este, also in Allapattah at NW 18th Avenue and NW 29th Street, due for completion in 2022. Earlier this year, Pinnacle Housing Group opened Caribbean Village in Richmond Heights in southern Dade and Carrfour Supportive Housing opened a complex for LGBQT seniors in Wilton Manors.

 

Source:  Miami Herald

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Is The Pandemic Priming Neighborhoods For A New Wave Of Gentrification?

Last year, we might have viewed gentrification as one of the worst aggravators of the housing market. We did not expect a pandemic. We’ve spent months indoors, lost work or transitioned to telecommuting, and watched once-bustling streets go silent; and as the coronavirus persists, more and more people have fled cities to hunker down in rural locations.

The question of gentrification still looms, and in deciphering what this exodus means for the future of housing, some have looked to the phenomenon of disaster gentrification in particular.

“When [people] talk about disaster gentrification, they’re referring to instances where a community was hit by a disaster that caused, at a minimum, temporary displacement,” says Lance Freeman, a professor at the Graduate School of Architecture, Planning, and Preservation at Columbia University, and a leading researcher on gentrification. “In the rebuilding process, the area was rebuilt for people from higher social economic status households,” preventing original tenants from moving back to their neighborhoods and uprooting communities.

New Orleans in the wake of Hurricane Katrina is perhaps the best-known example of disaster gentrification—reported by CityLab: “Those neighborhoods with a higher percentage of physical building damage were more likely to have gentrified one decade after the storm”—but it has occurred in New York, Miami, and other cities that have experience major climatic disasters. With the pandemic now worldwide, it’s worth considering if the pattern will reappear, though for different reasons—namely, people forced out of their homes by financial hardship, and a migration from urban to rural areas.

For gentrification to occur, two things must happen. For one, “you have to have an area that has very low values on residential real estate, which involves disinvestment and [maybe] abandonment of certain areas,” says Bruce Mitchell, a senior analyst for the National Community Reinvestment Coalition (NCRC).

The second thing? Investment—or, as Freeman notes, a rebuilding of an area so that it effectively prices out the current residents in favor of higher-income renters and buyers.

Right now, the U.S. is currently in a recession, with  about 31 million people unemployed. With so much uncertainty around when the pandemic will end, people will continue to suffer economically, especially those who live in lower-income communities, which are disproportionately people of color, notes Freeman.

“If you look at the number of predominantly white communities and then at the number of communities of color, the disinvestment in the community of color will be more disproportionate than in the white neighborhood,” he adds. “In that sense, you can say they experience more gentrification because they’re disproportionately in the working-class, disinvested neighborhoods.”

 

According to the Center for American Progress, “Housing instability triggered by the coronavirus pandemic is a growing threat across the United States, especially in communities of color.”

It notes that where 9% of white homeowners missed or deferred a mortgage payment in May, 20% of Black homeowners did the same.

If people of color and low-income communities continue to suffer economically, will they be forced to abandon their homes for areas that are more affordable, causing an abandonment or disinvestment of a neighborhood? And will that prime a neighborhood for gentrification to occur? Perhaps so—especially when you consider how many people in these neighborhoods are renters.

“In the short term, it looks like there are going to be a lot of repercussions having to do with the current rental crisis and the inability of people to pay their rent because they simply don’t have the income,” says Mitchell. “[If] people can’t pay rent, then landlords—particularly small landlords—are not going to be able to meet their mortgages, perhaps.”

While Mitchell views the eviction and rental crisis as something that may cause an increase in temporary homelessness, others are concerned that city residents will voluntarily turn to small towns and rural places due to the rise in telecommuting, or be forced into these areas in search of more affordable living.

“The workplace has increasingly moved into people’s homes,” says Mitchell. “It could result in movement out of central cities to areas that are less expensive.”

Rural gentrification has occurred in the past. Freeman notes, “In the New York area, you had these smaller towns in Upstate New York along the Hudson River that many artists and other creative types moved to starting at the latter part of the last century. They were drawn to those areas because housing is cheaper, [and] it’s scenic.”

Though some may have sought rural areas at the beginning of the pandemic, Freeman doesn’t foresee Americans moving to rural areas en masse.

“As we’re seeing in many of these smaller communities, you’re still not immune or protected from the virus, necessarily,” he says. “I think in the short term, perhaps that’s happening. I’ve seen anecdotes about it, but I don’t think it’ll be a permanent trend.”

We’ve also heard these anecdotes and reports of New York City residents moving to Upstate New York, Connecticut, and Vermont, or Californians in cities like San Francisco heading to Montana. In April, Redfin’s CEO said demand for rural homes was higher than for urban homes, and in May, the company noted that Redfin page views of homes in towns with fewer than 50,000 residents were up 87% year over year. And yet, the company also found that 27% of users who were looking to move during the pandemic were focused on metros like Las Vegas and Sacramento.

Comparing these statistics to actual homebuyer behavior will take time. In the meantime, we should keep in mind that many reports of city dwellers migrating to rural areas have centered on residents of metropolises in California and New York; those anecdotes are not necessarily representative of the entire nation.

Shad Bogany, a realtor who serves on the board of directors for the Houston Association of Realtors (HAR), feels similarly to Freeman. While he notes that the real estate market dipped in April and May, Bogany says that people are currently buying and selling houses in droves. “We don’t have enough houses to sell,” he says.

For Bogany, there’s one reason that the market has remained strong, and it’s not that buyers are moving to areas they deem safer or cheaper—rather, “people are making decisions based on the low interest rates.”

 

Source:  Dwell

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Pandemic Transportation Changes In Miami Could Become Permanent

Miami-Dade’s transportation picture has been in flux since the onset of the coronavirus pandemic, and many changes – including new safety strictures, increased telecommuting and a rise in non-motorized mobility – could prove permanent, experts say.

“This is a lifetime event that’s really going to change a lot of things, including transportation, how people work and where,” said Javier Betancourt, executive director of the Citizens’ Independent Transportation Trust. “And if anyone tells you they know for sure what’s going to happen, they’re lying to you.”

That’s not to say there aren’t indicators of where things are going. Following a nationwide shutdown to stem the spread of the virus, once-bustling workplaces have been replaced – either temporarily or permanently – by home offices connected digitally through email and apps like Zoom and Slack.

Working remotely, or telecommuting, has increased in recent years, but Covid-19 accelerated what would have been a much slower evolution. Only 7% of US workers telecommuted at least once weekly prior to the pandemic, according to the Pew Research Center. Once the virus hit, the figure shot up to 50%, an analysis by research group Brookings Institute found.

If a significant portion of people continue to work from home, Mr. Betancourt said, Miami-Dade’s transportation decision-makers must take a hard look at whether some transit and roadway expansion projects should proceed as previously planned.

“All these capacity-building projects need to be examined in light of reduced demand,” he said.

A directive to launch the first such examination here is incoming, said Aileen Bouclé, executive director of the county Transportation Planning Organization (TPO).

On June 18, the TPO Governing Board, comprised of every county commissioner, elected representatives from nine cities and a school board member, will consider an item from Dennis Moss and Rebeca Sosa that, if approved, will order a study of how telecommuting could reduce congestion across Greater Miami.

“They’ve made a very next-step request for us to start seeing what that looks like and if we can adopt any guiding principles or policies to help even out the demand on our infrastructure over a long period of time – where we can reduce the peak demand and congestion and have a better overall picture of a congestion-reduction strategy,” she said.

Another potential change that comes as a result of fewer cars on the road is fewer cars in driveways and garages, said Transit Alliance Miami Executive Director Azhar Chougle, whose nonprofit advocacy group has spearheaded the Better Bus Project to redraw Miami-Dade’s Metrobus route network.

Because driving to and from work is often the primary utility of a personal vehicle, he said, it becomes an unnecessary expense once that need is no longer there.

“Most cars are idle for more than 90% of the day,” he said. “Miamians who are used to just driving, even for the smallest possible trips, when you take the work trip out of the equation, there are interesting possibilities.”

One possibility already gaining traction is broader bicycle use across the county. But the shift from cars to bicycles and e-scooters isn’t as simple as swapping one mode for another. While some small pockets of the county have proper accommodations for so-called micro-mobility modes – bike paths, widened sidewalks and programs with bike- and scooter-share companies like Citi Bike and Jump – most of Miami-Dade is still inhospitable to non-motorized travel.

Before the pandemic, those deficiencies and others across Miami-Dade – including many parts of the county’s unincorporated area, where sidewalks on major roads are frequently nonexistent – were largely the concern of habitual bicyclists and residents who didn’t own cars.

Now, with half of the county’s workforce homebound, the absence of a safe, comprehensive route network for pedestrian and two-wheeled travel is glaring, Mr. Chougle said.

“Everyone has realized biking infrastructure here is terrible,” he said. “What we’ve discovered is just outright, major government failure.”

That failure, he said, is most pronounced in Miami and Miami Beach, the subjects of Transit Alliance’s most recent study, “Build it – Bike it,” which shows both cities have sorely undelivered on promises to create safe, usable, interconnected bike paths.

Miami Beach, which in 2015 adopted a comprehensive bike master plan, has to date built just 0.1 miles of protected bike lanes and has 3 miles of shared paths still under construction. Transit Alliance recommends 6.8 miles of protected lanes and 3.7 miles of shared paths.

Miami, which in 2009 adopted a similar plan, still has miles of its core network incomplete, with missing links between key arterial roadways across the city and no protected bike lane across the Venetian Causeway.

“Whoever is in charge of this network in the City of Miami, and whoever was responsible for the 2020 objectives in Miami Beach and them not having been completed, should be fired,” Mr. Chougle said. “It’s at the point where, can our decision-makers hold anyone responsible for these major failures, or are they just going to be looking at the same map 10 years from now?”

The good news, Mr. Betancourt said, is that the countywide pause everyone is experiencing provides a rare chance to rethink and refocus priorities and, compared to other infrastructure projects in the developmental pipeline, bike-specific enhancements are much cheaper.

“Transit and roadway expansions are investments that take billions of dollars to see through and decades to come to fruition,” he said. “Telecommuting and first-last-mile connectivity is low- to no-cost and can be done in short order. And people have now gotten used to it. There’s really a potential to continue that and build it up.”

Critical roadway and transit improvement projects will still come, including transit upgrades to six key commuting corridors outlined in the countywide Smart Plan. But questions of future capacity and ridership have made many local transportation experts rethink advocating for more expensive modes.

Talks on the subject among county, state and federal transportation officials are ongoing, according to Ms. Bouclé, who said a federally required transit ridership study planned for the fall will further help to inform the TPO of what demand will be for different transit modes.

“From where I’m standing today, the range of that demand is really something we have to focus on,” she said. “It’s a fair statement that our pre-Covid forecast may be quite different moving forward.”

Even if ridership never returns to levels prior to the pandemic, Miami-Dade will still need a transit system to serve a core ridership dependent on its services. In mid-April, roughly a month into pandemic-related closures, ridership on Metrobus, Metrorail and Metromover fell 80% below normal.

As of last week, according to figures provided by the county Department of Transportation and Public Works, ridership across the three modes combined, at 110,000 between June 8 and 12, is about 47% of what it was the same time last year.

Director Alice Bravo said her department is bringing on additional vehicles to accommodate the ridership increase while still providing enough space to minimize the spread of Covid-19.

“In terms of trains, when our numbers really fell off, we went to nine trains per hour but have now increased that to 14 and can increase it to 19 trains as demand grows,” she said. “In terms of buses, we’re going to bring some through vendors … for the I-95 express service and other vehicles to intersperse between ours on routes where ridership is increasing and they’re needed for social distancing.”

Many of the protective measures put in place – from disinfecting transit vehicles multiple times daily and nightly, maintaining hand sanitizers in all vehicles and at train stations, social distancing at county facilities, and installing vinyl curtains and polycarbonate doors to isolate bus drivers and their ventilation systems from riders – will likely continue “for a long time,” she said.

Ms. Bravo’s department is also experimenting with one possible solution to low ridership on some Metrobus routes: Go Nightly, a partnership with Uber and Lyft in which the companies provide rides in lieu of buses that before ran on eight nighttime routes.

Rather than take buses, transit users are instead asked to follow instructions posted at bus stops along the routes to use a smartphone app or call a number to get a voucher-paid ride along the routes and within a quarter-mile radius of the corridor.

“This is maybe something we can explore to provide some type of transit connectivity in areas where density is too low to provide bus routes,” she said.

As for other answers, Mr. Chougle said, the county may do well to examine how other large metropolitan areas proceed in improving transit in the wake of the coronavirus.

Miami-Dade has “responded really well” to the pandemic, he said. The question for every leader here is whether the county will emerge with a stronger or weaker transportation and transit system than before.

“Right now,” he said, “it’s not clear how that will go.”

 

Source:  Miami Today

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For Retail Sector, Liquidity And Communication Key To Surviving Coronavirus Crisis

Measures to contain the spread of coronavirus are still shifting by the day — and so are responses by investors, developers, builders, banks and buyers. To track the impact in real-time, RE|source Miami is asking area real estate professionals in various sectors for on-the-ground reports.

Today we hear from Michael Comras, president & CEO of the Miami-based Comras Company, which specializes in the development, leasing and sale of urban and suburban retail properties across South Florida.

As a principal in various development entities, Michael has also been involved in shaping retail in high-profile destinations including Coconut Grove, Miami Beach’s Lincoln Road, Design District, Wynwood, and Downtown Miami.

Q: How is the South Florida retail sector coping with the unfolding coronavirus crisis, and the economic slowdown we are experiencing?

In the short term, the market has been significantly impacted due to the government mandates requiring that all restaurants and non-essential retailers close their doors to curb the spread of COVID-19.

As a community, we need to acknowledge the challenging times ahead and recognize that by working collectively we will get through the pain and ensure that the retail and restaurant community lands on its feet. Now more than ever, tenants and landlords need to work in unison toward a common goal: sustaining business and our retail and restaurant economy.

Everything that existed prior to the coronavirus pandemic will exist again, but there is no silver bullet to solve the economic slowdown. The building blocks to recovery will depend on solid relationships and positive collaboration amongst all stakeholders.

Landlords do not want widespread vacancies and tenants want venues where they can grow their business and thrive. Fusing these objectives into a cohesive goal will allow the retail sector to reemerge stronger, faster. In addition, banks and lenders need to work closely with developers and property owners to make sure liquidity continues to flow. State and Federal financial relief will also provide necessary support.

 

What is the state of construction in Miami-Dade? Are real estate projects still getting built, and have timelines been delayed due to the virus?

The good news is that most construction projects in Miami are making headway and moving forward as planned, to the extent that the work can be completed in a safe manner. Construction firms are following strict guidelines to ensure social distancing inside job sites.

We expect to see delays in lease negotiations and leases that have not been executed. The permitting and approval process required for tenant interior buildouts will also take longer, and projects currently undergoing inspections may lag as there are new restrictions that will limit on-site inspections. In addition, the plan approval process will be extended by cities prohibiting the “walk-through” of plans. A process that provides for a quicker review of buildout plans.

 

Many retail tenants have shut their businesses. How are you counseling regarding landlords and rent concessions?

Communication is key. There is no one-size-fits-all strategy to resolve these issues. Every landlord has a unique relationship with their tenants and the parties must openly communicate to arrive at a sustainable solution that can work for both sides.

Local retailers and restaurateurs are integral to the fabric of our community and, unfortunately, they are the ones being most affected. In the spirit of working through a difficult time, all sides must be honest and transparent. Often, landlords are not privy to tenant sales figures, which is the main indicator of how a business has been performing. It will be important for tenants and landlords to look at the sales trends prior to the crisis to strategize towards a successful resolution.

Access to information can help guide landlords when evaluating potential rent concessions for their tenants. Solutions may include rent abatement, deferrals or other payment structures that allow both the tenant and landlord to navigate this hardship and remain open for business.

 

Do you anticipate that this outbreak will have a long-term, lasting impact on the way real estate projects are planned and designed?

Prior to COVID-19, retail was already going through a major transition, becoming more experiential and interactive. This will only become further pronounced as we emerge from this pandemic. At the same time, people are becoming even more accustomed to ordering goods online – since they have no other option at this time – and this could have a ripple effect on select brick-and-mortar businesses. Retailers will need to continue to improve their business’s online capabilities.

Miami is a unique “city of villages”, a series of walkable destinations such as The Miami Design District, Wynwood, Miami Beach, Brickell, Coconut Grove, Downtown Miami and South Miami. Connectivity, walkability, and revitalization will continue to fuel our local real estate economy. As human beings, we are social creatures who thrive on congregating and being a part of something greater than ourselves. Experiential retail will perfectly align with the pent-up demand people will have to enjoy experiences from dining and shopping to family entertainment once these stay-at-home measures are lifted.

There is no city as resilient as Miami. We’ve endured natural disasters with devastating hurricanes, deadly diseases with Zika and H1N1, and now the novel coronavirus – but with each setback we’ve come back stronger and have continued to thrive. This is a serious crisis that we will overcome. By supporting one another and working together, we will once again come out on top.

Source:  Miami Herald

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Allapattah Midrise Plans 47 Micro-Unit Apartments

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A developer plans to build a midrise building in Allapattah that will include smaller micro unit apartments.

2323 Pointe Group LLC is asking the City of Miami to approve its plan to construct an 8-story mixed-use residential building at 2323 NW 36th St. The city’s Urban Development Review Board recommended approval.

The project’s working name is 2323 Residential Apartments. The property is at Northwest 23rd Avenue and Northwest 36th Street.

According to the application, the project will have commercial and office uses on the ground floor, and 116 residences. Parking for up to 129 vehicles will be on the second and third floors.

The dwelling units will be evenly distributed from the fourth through eighth levels.

The building will be 167,689 square feet. It will have about 7,708 square feet of commercial-retail, and 3,220 square feet of office area.

Outdoor and indoor amenities will be provided for use of the tenants, including a swimming pool above the parking levels.

Of the 116 apartments, the developer proposes 47 as micro dwelling units, which are allowed by warrant in certain areas within Transit Oriented Development zones.

In its request for a warrant, the developer notes the city’s Miami 21 zoning code requires micro dwelling units must be a minimum of 275 square feet.

This project plans 47 micro apartments ranging from 385 to 388 square feet.

As depicted in the site plan, the property is within a Transit Oriented Development area created by the Earlington Heights Metrorail Station.

Attorney Carlos Lago, representing the developer, wrote to the city about the site plan prepared by Modis Architects for 2323 Residential Apartments.

Pursuant to the city’s Future Land Use Map, the property has a land use designation of General Commercial.

The property has a principal frontage on Northwest 36th Street to the south and a secondary frontage on Northwest 23rd Avenue to the east. The property has an alley to the west and multi-family residential structures to the north.

Mr. Lago wrote: “The proposed Project is an Urban Core infill project fronting a highly traversed street, NW 36 Street. The Project seeks to develop the existing site to provide multifamily housing and ground floor retail, which will activate the pedestrian realm along the commercial corridor.”

Attorney Brian Dombrowski, on behalf of the developer, told the board about the general location of the proposed building.

He said the area is populated by boatyards and used car lots, with very little new construction and very little residential.

Ivo Fernandez, principal and co-founder of Modis Architects, said the project is designed to better the community.

He said the site is nestled between Wynwood and Miami International Airport, on a very important corridor. It is the east-west corridor linking Wynwood and the airport, he said.

Mr. Fernandez said the parking levels will be screened with printed artwork that allows for ventilation. The renderings show an example of the art proposed, he said, not the finished look.

The material is to be stretched over the structural aluminum and carries a 10-year warranty, he said, and unlike the standard murals this will last a lot longer, and it’s easily replaced if damaged.

Board member Neil Hall praised the developer’s team for the garage level screening. “I commend you on making that selection,” he said.

The developer is requesting several waivers, including:

  • Permission to substitute a commercial loading berth for two residential loading berths.
  • To permit up to a 10% reduction in the number of required parking spaces, due to its location along a transit corridor.
  • To permit parking to encroach into the second layer, along the principal frontage, with an art or glass treatment approved by the planning director upon recommendation by the review board.
  • To permit parking to encroach into the second layer, beyond 50%, along the secondary frontage, with an art or glass treatment approved by the planning director.
  • To permit up to a 10% reduction in the drive aisle width from 23 to 21 feet.

 

Source:  Miami Today

 

 

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Apartment With Micro Units Planned In Miami’s Allapattah

Miami’s development wave could take another step into Allapattah with a new apartment project.

On Feb. 19, the city’s Urban Development Review Board considered plans by 2323 Pointe Group LLC, an affiliate of Bay Harbor Islands-based Pointe Cos., for the 0.81-acre site at 2323 N.W. 36th St., plus 3614, 3620, 3624 and 3638 N.W. 23rd Ave. It acquired the property for $1.95 million in March 2019.

The building would total 167,689 square feet in eight stories. Designed by Modis Architects, it would have 116 apartments, 7,708 square feet of retail, 3,220 square feet of offices, and 129 parking spaces.

 

Source:  SFBJ

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The Big-Money Development Push Is On In Wynwood, Allapattah

Related Group recently completed two projects in Wynwood and has more in the works, Vice President Jon Paul Perez told Bisnow this week. In Allapattah, it recently opened a gallery and is on the lookout for other opportunities.

“It’s gotten to that point where the buying and trading of land without developing … that ship has sailed,” Perez said. “If you’re buying land there now, you’re assuming you’re going to have to develop.”

Sterling Bay Director of Leasing Michael Lirtzman had a similar assessment. The Chicago development giant closed on a site for $18.9M in December 2018, at 545 Northwest 26th St., where it is building a 10-story, 300K SF office building called 525wyn.

“We got in at a pretty good number,” Lirtzman said. “The pricing was a little more restrained. Now it’s starting to push.”

Sophisticated national developers have “brought some discipline to the pricing,” he said, but he predicted values would stay high as the neighborhood hits maturity.

“Wynwood is in the mode of building now,” said Avison Young principal John Crotty, with the days of flipping mostly gone and big residential developers going vertical.

Allapattah, however, still has pockets of opportunity, he said. “Other than by the [Miami] River and by [Jackson Memorial] Hospital, there’s not much development.”

Related Group and partner East End Capital completed Wynwood 25 in July. Its 289 apartments are now 85% leased at $3.10 per SF, Perez said, and its 35K SF of retail is 45% leased. Another project, the Bradley, which Related developed as apartments, was instead leased entirely to Domio to be operated as short-term rentals.

Perez said that Related benefited by being the first mover, willing to take a risk.

“The bet that we were making was that people wanted to live in Wynwood, right?” he said. “I could never have told you, ‘Hey, I’m going to sign a lease for all the apartments to one operator,’ because I think at that time these types of companies did not exist.”

When Domio came around, “we were the only option for someone that wanted one of those companies to be able to be in the neighborhood,” he added. Domio reportedly fought off competition from rival short-term rental operators to sign the building.

The largest development deal in the area last year was a 1.6-acre site at the corner of Northwest 25th Street and Second Avenue, which buyer Property Markets Group and Greybrook Realty Partners paid $46M to acquire and redevelop from its existing use as a gallery into a six-story resident complex with 222 units, Crotty said.

Crotty said PMG spun out the bottom-floor retail to Tricera Capital, which should be able to garner rents around $80 per SF.

“That’s Main and Main,” said Crotty, a former NBA player who also serves as the Miami Heat’s TV analyst. “That’s top-of-the-market pricing.”

Blocks off the main drag, Wynwood rents are about $50 per SF, he said.

Office leasing at the Wynwood Annex has gone a little slowly, Perez said, but Live Nation leased a floor and he said he is in talks with potential tenants that are similar in size and credit to the events company.

“So definitely by the end of 2022, our buildings should be close, if not 100% occupied,” Perez said. 

Lirtzman compared Wynwood to the Fulton Market area of Chicago, which was “where young people went to hang out. There was no office, but a vibrancy in the neighborhood.”

Sterling Bay decided to build office projects there with large floor plates and top-line amenities geared for creative tenants. It is now building its seventh Fulton Market building in a six- or seven-block radius.

Sterling Bay’s Wynwood project, which recently topped off, will include a fitness center, an indoor/outdoor bar and 440 parking spaces. Its first tenant is architecture giant Gensler, and Lirtzman said a letter of intent has been signed for a consulting firm to take 8K SF.

Goldman Properties opened the 30K SF Wynwood Garage in 2018, and a boutique office building, the eight-story, 86K SF Cube Wynwd, opened last year. Another big project, The Gateway at Wynwood, a 460K SF Class-A office building, broke ground last week.

The same forces that shaped Wynwood have affected the working-class neighborhood of Allapattah, just to the west. Whereas Wynwood had largely been made up of industrial warehouses, Allapattah now buzzes with working-class businesses. But real estate pros have been hyping it as the next hot neighborhood.

Developer Robert Wennett has proposed a mixed-use development by Danish “starchitect” Bjarke Ingels. Neology Life Development Group head Lissette Calderon in October broke ground on No. 17 Residences Allapattah, a 14-story, 192-unit apartment at 1569 Northwest 17th Ave.

“If you go have lunch on a Wednesday, it’s cops, it’s firemen, there’s people that are working nurses, doctors,” Perez said. “Allapattah probably started selling at $20 a foot, and now you have property trading at 130 bucks a foot.

“We’re not in that game of finding land and hoping for the value to rise and then flipping. So we say, ‘OK, at this price, does it make sense where I could build apartments, office, whatever it may be, at this land basis?'” he continued. “We’re looking for sites that are large enough that we can do substantial projects — 300 or so apartments there — and we haven’t found one yet that we are moving forward on.”

Calderon said in an email that construction on No. 17 Residences Allapattah has reached the fifth floor and is expected to be completed in spring 2021. She highlighted its amenities, including smart technology for package receiving, a digital concierge, a gym with virtual fitness and a “bark park” where dogs can play.

She said Neology Life is planning to break ground on another mixed-use project near No. 17, with 323 units, ground-floor retail and office space. It would begin construction after No. 17 opens in late spring 2021.

Crotty said that besides the aforementioned projects, plus a few others in the pipeline — the 555 River House proposed by Avra Jain and a yet-to-be-developed parcel he sold to billionaire developer Moishe Mana for $8.5M — Allapattah “has yet to fill in and grow,” he said.

Florida’s Department of Transportation is exploring the possibility of building a new highway exit off Interstate 95 at Northwest 29th Street.

“That would be a game changer,” Crotty said.

 

Source:  Bisnow

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