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Developers Plan Mixed-Use Project At Former Museum In Wynwood

New York developers L&L Holding Co. and Carpe Real Estate Partners formed a joint venture to build a mixed-use project in Miami’s Wynwood.

The developers have three acres at the northeast corner of Northwest 29th Street and Northwest First Avenue under contract. The property to be redeveloped would include the former Rubell Family art museum building at 95 N.W. 29th St.

Don and Mera Rubell relocated their art museum to Allapattah in 2019. The old building was listed for sale. Given how much development has been taking place in Wynwood, which is popular for its street art, dining and entertainment, it didn’t take long to find buyers.

L&L and CREP said they expect to close on the land in mid-2021, although they didn’t disclose the price. The site would allow for up to 800,000 square feet of development. Their project would combine offices, indoor and outdoor retail space, and multifamily. The size of the project hasn’t been disclosed.

“We are thrilled about this opportunity to create a one-of-a-kind 21st century mixed-use development in one of the world’s coolest and most eclectic neighborhoods,” said David Levinson, chairman and CEO of L&L. “CREP is the perfect partner given their successful track record in Miami and vision for further transforming Wynwood into a vibrant and dynamic place that celebrates the rich culture and history of the district. More importantly, our two firms share an affinity for bold, visionary projects that complement and enhance the surrounding neighborhood.”

Led by Levinson and Robert Lapidus, L&L is currently building a 670,000-square-foot office building at 425 Park Avenue in Manhattan. It’s also developing TSX Broadway, a luxury hotel in Times Square.

CREP, led by Erik Rutter and David Weitz, is known in Miami for the Oasis, an adaptive re-use project featuring restaurant, retail and offices. It landed Spotify as a tenant.

“When we entered the Wynwood submarket we were immediately attracted to its character – to the intangible buzz and energy you feel when walking the streets of the neighborhood,” Weitz said. “Our goal with this project on 29th Street and the Oasis is to preserve that character, and let it inspire our projects’ design and ethos.”

 

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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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More Tech Firms Eye Miami As COVID Carries On

In late February — before Covid-19 became a pandemic — Spotify inked a lease for 20,000 square feet to house its South Florida headquarters in Miami’s Wynwood neighborhood.

The music streaming service’s deal for all of the office space and large courtyard at the mixed-use development Oasis at Wynwood on North Miami Avenue was another sign of momentum for TAMI (technology, advertising, media and information) companies taking office space in South Florida.

But then coronavirus hit, prompting nearly half of the American workforce to set up shop in their homes and leading Twitter and Facebook to announce work-from-home policies that could lead to a potential void in the office markets in New York City and Silicon Valley.

South Florida, however, could benefit from the pandemic.

As residential brokers in the area report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms.

Cushman & Wakefield’s Brian Gale, who was part of the leasing team that closed the deal with Spotify at 2335 North Miami Avenue, said he’s given five virtual presentations to major tech brands to take large spaces at 830 Brickell — one of South Florida’s largest office projects under construction.

OKO Group and Cain International are building the 57-story tower, which the developers say will be anchored by WeWork, with an expected delivery date of 2022. The property will have 490,000 square feet of office space, and will mark the first major office building to rise in Miami’s urban core in the last decade.

Facebook, Apple, Google, Uber and Chewy are among the many companies that already have a presence. Tech firms take up nearly 3 million square feet in South Florida. Broward has the largest share, with nearly 1.7 million square feet, compared to about 765,000 square feet in Miami-Dade and just under half a million square feet in Palm Beach County, according to CoStar data provided by CBRE.

As with most office landlords and leasing agents in other cities, South Florida’s office brokers aren’t convinced that working from home will become a long-term result of the pandemic. Companies that were looking to take advantage of the tax benefits, weather and more favorable housing costs are still planning moves to Florida, according to local real estate players.

“Companies like Twitter put their foot in their mouth too early. I believe that it’s really hard for people long term to work from home,” said Daniel de la Vega, whose firm One Commercial is marketing Creative HQ, an office condo in downtown Miami.

“Only the really wealthy ones would move in the past, the Barry Sternlichts of the world,” he added. “But now people our age want to get out of the major cities and they want to come to Miami and Fort Lauderdale.”

Ripe for the picking

Commercial brokers are negotiating a number of “blend and extends” where the landlord offers some free rent or concessions in exchange for longer leases. And for new leases, prospective tenants with the budget to do so are more concerned with building measures and office floor plans that follow the latest public health guidelines.

“Unless a landlord has got a lot of capital saved, it’s an ideal time for tenants to restructure leases. We’re going to see the markets change in favor of tenants.”

Keith Edelman, Colliers International

Carpe Real Estate Partners’ Erik Rutter, one of the developers behind the Oasis at Wynwood, said larger spaces and the ability to be outside will prevail, he argued.

“There will still be a demand for office space. The growth of Miami will continue, if not be propelled by, this pandemic,” Rutter said.

While some brokers believe there will be hesitation about returning to a high-rise office building versus a suburban, low-rise corporate campus, Gale said he’s negotiating nearly 200,000 square feet of proposals at 830 Brickell. Those conversations include one with a major tech tenant that is “very serious” about opening an office in Miami, he noted,

“People now are looking at new buildings as having better air quality, giving tenants the ability to really plan out how they’re going to look post-Covid,” Gale said, adding that many “are concerned with mass transportation and being on top of people” in New York City.

Local entrepreneur Brian Breslin echoed that point.

People who run their own tech startups or work remotely for larger companies are increasingly relocating to South Florida, said Breslin, the founder of Refresh Miami, a nonprofit that focuses on tech networking in the city. He said he believes more companies will follow recent WFH policies put in place by Twitter, Facebook and Shopify.

“Most people don’t have it in their budgets to space out employees six feet apart,” Breslin noted. “It would be unwise for us to think this is a short-term thing. A lot more of the traditional tech companies are rethinking their hiring processes.”

Keith Edelman, executive managing director of Colliers International South Florida, said most long-term deals are on hold as companies evaluate their office setups, which could put pressure on rental rates.

Edelman, who recently returned to his office, had been working remotely for more than two months, speaking with The Real Deal from his car. He said he believes work from home culture could take a toll on camaraderie and collaboration among employees — giving office tenants an incentive to be proactive in their leasing negotiations.

“Landlords are scared,” Edelman said. “Unless a landlord has got a lot of capital saved, it’s an ideal time for tenants to restructure leases. We’re going to see the markets change in favor of tenants.”

More pouring in

The wave of companies moving to South Florida isn’t limited to just tech, industry sources say.

Investment firms, insurance companies, hedge funds and family offices have also been making the move, driven by the lack of a state income tax.

Sandy Rubinstein, CEO of New Jersey-based digital marketing and advertising firm DXagency, bought a two-story office building just north of Wynwood for $2.25 million during the pandemic.

The Miami native plans to make the 2,678-square-foot property at 3634 Northwest Second Avenue the new headquarters for her firm, which counts Mastercard, Univision, NBC, Viacom and Green Valley Organics among its clients.

“A lot of our employees up here have asked if they could transfer,” Rubinstein told TRD in April. “Miami is such a good market for talent so I also want to take advantage of that now.”

 

Source:  The Real Deal

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Construction Of Mixed-Use Development In Miami’s Wynwood District Tops Out

CIM Group announced that it has topped out construction of the two eight-story towers set above the ground floor retail and three levels of office space which comprise CIM’s significant mixed-use development at 2201 N Miami Avenue in the Wynwood Arts District of Miami.

The development, which is a major contributor to the evolving Wynwood district, includes approximately 60,000 square feet of office space, 27,000 square feet of street-level retail and studio space, 257 apartments and approximately 480 parking stalls. The 1.78-acre site spans a full city block bounded by NE 22nd and NE 23rd Streets, with approximately 250 linear feet of frontage on N. Miami Avenue to the west and fronts the Brightline Rail to the east.

Three office floors are located above the street-level retail and studio space and extend across the full block creating expansive office space that allows for flexible configurations and the ability to divide the approximately 20,000-square-foot floor plates into office suites. The newly-constructed raw space provides the user the ability to design interiors to meet individual needs as well as a fresh approach to delineated employee spaces and distancing that reflect the demands of our new environment. Abundant floor-to-ceiling windows infuse the space with natural light, while 12-foot high ceilings add to the spaciousness.

Set above the retail and office base are two eight-story towers, at the northern and the southern ends of the block, providing contemporary apartments in a variety of sizes and floor plans, from studios to three-bedroom units.

The development has a central position in Wynwood, a distinctive area in the urban core of Miami, nationally recognized as a center for arts, innovation and culture, as well as one of the major settings for Art Basel, and one of the world’s largest street art installations. The ground floor retail space will accommodate a variety of shops, cafes and restaurants, galleries or other businesses that desire a prominent location in Wynwood.

The Wynwood Arts District has been transitioning from an industrial zone to a flourishing center for art, fashion and creative enterprises, with rehabilitated factories and warehouses repurposed for galleries, studios, bars, workshops, and offices — an evolving neighborhood, which includes more residential offerings.

The project is anticipated to be complete in mid-2021. CIM acquired the fully-entitled site in October 2018.

 

Source:  BusinessWire

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Related Group Pays $19M For Wynwood Development Site

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The Related Group made another big investment in Miami’s Wynwood neighborhood with a $18.5 million property acquisition.

ERBA Diagnostics, previously known as Diamedix Corp., sold 2.27 acres at 2141-2115 N. Miami Ave., 2150-2160 N. Miami Ave., 38 N.W. 22nd St. and 2155 N.W. Miami Court to PRH Investments, an affiliate of Miami-based the Related Group.

Dave Colonna of FIP Realty represented The Related Group in the deal.

Cushman & Wakefield’s Robert Given, Troy Ballard, Miguel Alcivar, Greg Masin, Frank Begrowicz and Jason Hochman represented the seller.

The property has five buildings for a combined 51,205 square feet. However, the zoning would allow for greater density in a mixed-use project.

Wynwood has been transformed from an industrial area into an attraction for street art, entertainment, shopping and dining. New zoning has led to a massive amount of redevelopment with apartments and offices.

“As Wynwood continues to develop and mature into a world-class hub for the arts and creative businesses, opportunities to acquire large development sites are growing harder to come by,” said Alcivar. “This offering presented a rare opportunity to acquire critical mass with flexible zoning in one of the nation’s most exciting neighborhoods.”

The Related Group couldn’t be reached for comment on its plans for this property.

The Related Group has been especially active in Wynwood. It co-developed the Wynwood 25 apartments, the Wynwood Annex office building, and the Bradley Wynwood, which is being leased to a short-term rental company. It has a mixed-use building planned on Northwest 29th Street and a co-living project slated for Northwest 28th Street.

“While Wynwood is known for its dozens of art galleries and an ever-growing number of restaurants, bars, and retailers, the submarket is only just now starting to see larger scale mixed-use development,” said Given. “This assemblage presents the buyer with an exceptional opportunity to tap into Wynwood’s growth potential and be part of its maturation into a liveable neighborhood.”

 

Source:  SFBJ

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Silicon Valley Heads To Wynwood’s Office Market

Wynwood has changed quickly from the early 2000s, when it was home to a number of galleries that came alive the second Saturday of the month, to an established tourist destination with an active nightlife scene. Today, it has residents and short-term rentals, restaurants, breweries and bars, and hotels on the way.

Now, it’s also emerging as a new office submarket in Miami, even amid the coronavirus pandemic.

Wynwood is seeing a number of new office projects, as major developers target the artsy district, aiming to add hundreds of thousands of square feet of office space. Big name tenants have signed leases, like Spotify, Live Nation and WeWork. Apple Music, Google, Dentsu and other creative marketing agencies have also been looking in the market, brokers and developers say.

The office vacancy rate in Wynwood is expected to spike this year, when most, if not all of the office space is delivered. Already, there is 180,000 square feet of new space in the market, with another 350,000 square feet under construction. That doesn’t include 500,000 square feet more office space in the pipeline, according to Albert Garcia, chairman of the Wynwood Business Improvement District.

Garcia and others expect that the new supply will get absorbed.

“We’ve seen development happen evenly. We’re very pleased with how the market has reacted to zoning guidelines,” he said. “You have to remember, prior to that there was zero Class A office in the neighborhood. Over the next six to 24 months, you’re going to see new office leases moving within the market from Brickell, Doral, Coral Gables.”

Covid-19’s effects

And now, with the uncertainty surrounding the Covid-19 outbreak, Garcia and others believe that Wynwood will be well-positioned to attract new office tenants to the neighborhood.

“The good news is that these are all state-of-the-art office environments that will be adaptable and scalable in ways that the new office tenants are going to be looking for, places that are safe, that offer flexibility in workspace,” Garcia said.

Yet, some developers are pulling back, attorney Steve Wernick of Wernick & Co. said. The pandemic will likely cause a correction in the market and slow down office absorption, forcing landlords to adjust their pricing and the types of tenants they’re trying to attract.

“Wynwood is resilient, it always bounces back. We had Zika,” Wernick said. “Businesses that have capital and have long-term growth potential might be able to secure the office space they need that’s advantageous to them.”

Other market sectors

Brokers and developers expect space to also be absorbed in multifamily and other sectors of the market. Besides Related and East End, the Kushner Companies with Block Capital Group, as well as homebuilding giant Lennar Corp. have multifamily-anchored mixed-use projects in the works.

“At the end of the day, it’s a real neighborhood,” said Gaston Miculitzki of BM2 Realty, a Wynwood-based brokerage.

It’s unclear yet how deep the impact of coronavirus will be. Brokers Tony Arellano and Devlin Marinoff of Dwntwn Realty Advisors said the pandemic will eventually result in opportunities for tenants – and for investors.

“Now if you’re buying something, you’re buying it at a good value,” Arellano said. “All of the foam of the market got taken off.”

Grocery stores and major pharmacy chains are also eyeing the market, according to commercial broker Tere Blanca.

Office space supply

Sterling Bay, a Chicago developer that has built and leases space to McDonald’s Uber, Glassdoor and Twitter, officially entered the Wynwood market in 2018. Sterling Bay is building 545 Wyn, a 10-story, 325,000-square-foot Class A office building that will be completed later this year. It’s the biggest office project under construction in Wynwood.

Michael Lirtzman, director of leasing, said the developer’s aim is for tenants to move in by the end of the year. At 545 Wyn, the developer has secured Gensler, a major design and architecture firm, which signed a lease for 13,000 square feet.

Gross rents are in the high $50s and $60s per square foot for new construction in Wynwood, brokers and developers said.

Lirtzman said the push into a neighborhood like Wynwood is typical for Sterling Bay. “We tend not to go for the traditional downtown high-rise markets. We’ve gone into neighborhoods with a little more live, work, play,” he said.

Wynwood, previously home to a number of industrial warehouses, is similar to Chicago’s Fulton Market district, near the west side of Chicago, where Sterling Bay is looking to sell the McDonald’s global headquarters building, Lirtzman added.

Amenities in Wynwood are comparable to those offered by residents of new apartment towers in downtown Miami, Edgewater and the Arts & Entertainment District.

Once completed, 545 Wyn will include a 4,700-square-foot fitness center with spinning and yoga, a 17,000-square-foot terrace on the fifth floor with a full kitchen and bar, and 26,000 square feet of ground-floor retail space for three large food and beverage and entertainment tenants.

The companies the developer is courting “want their people to be comfortable in the building,” Lirtzman said. “They’re using their real estate as a recruitment tool.”

More projects completed and planned

When Sterling Bay went under contract on the Wynwood land more than two years ago, the developer had no competition.

But now, new office projects are popping up throughout Wynwood. 545 Wyn is being built on the west side, fronting I-95, where larger office projects were or are planned. The Oasis in Wynwood, a mixed-use adaptive reuse project under construction at 2335 North Miami Avenue is east of that, on the northeast corner of the neighborhood.

In January, New York-based R&B Group broke ground on the Gateway at Wynwood, a 460,000-square-foot mixed-use building on the northern outskirts of Wynwood, at 2916 North Miami Avenue. The project will have about 195,000 square feet of office space, plus retail, a rooftop terrace and a garage.

About a year ago, CIM Group closed on a $71.2 million construction loan for a 12-story Wynwood Square mixed-use development at 2201 North Miami Avenue. The project, with 241 apartments and about 27,000 square feet of retail, will have about 60,000 square feet of Class A office. One Real Estate Investment is a co-developer of the project.

The Annex, a 52,000-square-foot office building that Related Group and East End Capital completed last year next to their Wynwood 25 apartment building, is west of Second Avenue, Wynwood’s “cultural spine,” said Garcia, of the Wynwood BID. Tenants there include Live Nation Entertainment, which took nearly 8,000 square feet.

Jonathan Yormak, founder and managing principal of East End Capital, said full service asking rents are about $57 per square foot at the Annex.

Directly across the street is Cube Wynwd, an eight-story, 86,000-square-foot Class A building developed by RedSky Capital and equity partner JZ Capital Partners. Regus was the first tenant to sign and open, taking 21,000 square feet at the Class A building.

In addition to tenants relocating from downtown Miami and Brickell, developers and brokers said there are a number of new-to-market companies looking to plant their flag in Wynwood.

WeWork opened last year at the Wynwood Garage, taking 30,000 square feet at 301 Northwest 26th Street, marking the largest office lease in the neighborhood, according to broker George Pino, president of State Street Realty. The office market in Wynwood is just now in its infancy, he said.

Wooing tenants

Some of the largest TAMI (technology, advertising, media and information) tenants have their eyes on Wynwood – but not necessarily on specific buildings.

Take Spotify. The music streaming company toured 545 Wyn and other projects in the neighborhood before deciding to take all of the 20,000 square feet of office space at the Oasis in Wynwood.

“What’s important about the Spotify lease is Spotify had identified Wynwood. It wasn’t like they were between the Oasis in Wynwood and two buildings in Brickell and Coconut Grove,” said David Weitz, co-founder of Carpe Real Estate Partners, developer of the Oasis.

Not every company is choosing to be in Wynwood, though. Yext, a New York City-based brand management technology firm, looked at Wynwood before deciding to open its Miami office at 600 Brickell Avenue, near Brickell City Centre, sources said.

Erik Rutter, co-founder of Carpe Real Estate Partners, said Spotify wanted to create a campus for its employees where the company could create programming. A rendering of the space shows a stage in front of the Spotify logo.

As a gateway to Latin America, Miami has long attracted a number of creative marketing agencies, but the tech scene has been much smaller, beginning with the LAB Miami, the first co-working space and first coding academy, Wyncode.

Now, that’s changing.

“Wynwood is very culture rich. A lot of submarkets in Miami, from an office market perspective, [prospective tenants] don’t feel like there’s a lot of character,” Weitz said. “I think the low-story pedestrian-oriented nature in Wynwood really makes it attractive. It has culture. It has character. It’s walkable.”

 

Source:  The Real Deal

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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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Vacant Property In Miami’s Wynwood Faces Foreclosure

A vacant site in Miami’s Wynwood neighborhood is the target of a $2 million foreclosure lawsuit.

City First Mortgage Corp. filed the foreclosure lawsuit against 5058 NW 26 ST LLC. No individuals were named in the complaint. The lender aims to seize the 10,400-square-foot site at 58 and 60 N.W. 26th St. It’s on the eastern edge of Wynwood, just west of North Miami Avenue, and directly south of where the Bradley Wynwood apartments are under construction.

The company bought the property for $3.2 million in 2019 and obtained a $2 million mortgage from the lender, with a maturity date of Jan. 1, 2020, and a 9.75% interest rate. In 2018, it sold for $2.3 million, and in 2015 it traded for $649,5000 – another example of the explosive growth in property values in Wynwood.

 

Source:  SFBJ

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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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Kushner Lands $18M Loan For Wynwood Projects

Kushner Companies closed on a $17.55 million loan for its properties in Wynwood, records show.

Wynwood 2 Owner LLC, an affiliate of the New York-based real estate firm, secured the financing from CIT Bank for the properties at 108 and 127 Northwest 27th Street in Miami, where Wynwood 27 and Wynwood 28 are planned.

Kushner, led by Charles Kushner, Nicole Kushner Meyer and Laurent Morali, is partnering with the Miculitzki family’s Block Capital Group to develop the sites. They will have a total of 152 rental apartments, 50,000 square feet of office space, 34,000 square feet of retail space and parking.

In July, Kushner and Block Capital paid $32 million for a portion of their assemblage.

The partnership just paid $4.6 million for the two lots at 108 and 120 Northwest 27th Street. BM2 Realty brokered the latest deal, according to a press release.

Last month, the Miami Urban Development Review Board approved plans for Wynwood 28 to have nearly 15,800 square feet of commercial/retail space, 44,637 square feet of office space, 40 residential units, 232 parking spaces and 19 bicycle spots.

In all, Kushner Companies has rolled out plans to build three major apartment projects in South Florida that will bring a total of 3,000 units at a cost topping $1 billion. In addition to the Wynwood properties, the firm has an assemblage under contract in Miami’s Edgewater neighborhood in an Opportunity Zone, a development that’s expected to cost over $500 million and deliver more than 1,000 units in three phases.

The company also announced last year that it was under contract to purchase three properties for $49 million across the street from the Virgin Trains station in downtown Fort Lauderdale’s Himmarshee District.

 

Source: The Real Deal

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