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Wynwood Annex Sells To New-To-Market Buyer For $44 Million

DWNTWN Realty Advisors closed a monumental transaction in Wynwood’s history, representing the culmination of many years of organic, artistic and eclectic development efforts, led by many shareholders with vision and grit inspired by visionaries like Tony Goldman.

This transaction, the $44 million sale of Wynwood Annex, underscores a paradigm shift in rates and market fundamentals and sets a new bar for the Miami office market.

Wynwood, a once sleepy and functionally obsolescent shoe wholesale and manufacturing district in the center of Miami, has transformed into one of the most vibrant and cool streets in the country. This office transaction represents a turning point in the market. Wynwood is now accepted as home by the top VCs, technology and finance firms like Founders Fund, Atomic VC, GAC Financial, Ramp Financial, Open Stores, Blockchain.com and Schonfeld – to name a few.

Miami is now regarded as the “Capital of Capital,” and efforts by the founders of these new to Miami companies like Peter Thiel, Keith Rabois and Jack Abraham, in lockstep with Mayor Francis Suarez, has created a pro-business city with inertia and durable momentum behind it. The market dynamics and fundamentals in Wynwood currently are some of the strongest in the country as markets, tenants and cities have rebalanced. Today, decoupled from their old foundations in the pandemic, business leaders have taken a step back to rethink everything.  Investors, tenants and employees continue to choose Miami and Wynwood as their home and headquarters because it is an ideal place to live, work and enjoy a great quality of life.

DWNTWN Realty Advisors was retained by Related Group President Jon Paul Perez and East End Capital Managing Partner Jonathan Yormak to stabilize the asset during the depths of the pandemic. Tony Arellano P.A. and David Lerner at DWNTWN led the marketing and lease-up efforts, stabilizing over 60,000 square feet of rentable office area within six months to 100% occupancy, with landmark tenants all new-to-market. This is a departure from historical Miami office norms.

“Typically, we see relocations from within the city as the majority of tenants play musical chairs,” Lerner said. “In this cycle our firm took advantage of changing fundamentals and with our feet on the ground, led the charge outpacing competitive office towers in Miami, pushing Wynwood as the go-to creative office district.”

The lease-up was so successful it attracted unsolicited offers from all over the country. DWNTWN ran a very clean and concise off-market process and connected with a new-to-market buyer, Brick & Timber Collective, who closed the approximately $44 million sale.

Brick & Timber Collective is from the San Francisco’s Bay Area, making its first foray into the Wynwood Miami market. DWNTWN Co-Founders and Managing Partners Tony Arellano and Devlin Marinoff represented both sides of the transaction.

“We are honored and grateful to be a participant in Wynwood over the past 16 years. We are excited to see Wynwood become the go-to neighborhood for technology and modern finance,” Arellano said. “Wynwood Annex is the perfect fit for this San Francisco-based buyer’s debut investment in our market. DWNTWN is grateful to investors like Brick & Timber Collective for adding value to our market, community and the Greater DWNTWN Miami Area.”

DWNTWN has more than $100 million in pending transactions expected to close in the first quarter of 2022, with a trailing 12-month gross sales volume of a quarter billion dollars.

“The incredible demand for prime real estate in Miami is only getting stronger,” Marinoff said. “The pandemic accelerated the city’s evolution into a vibrant, full-service economy and a place where you can work year-round in a pro-business environment. Miami’s ‘secret’ is out and businesses and investors from high-tax states around the U.S. are taking notice.”

Over the course of his career, Arellano has completed more than 150 significant leases in Wynwood and played a pivotal role in the neighborhood’s evolution from an overlooked, largely neglected collection of old industrial buildings, into a vibrant new urbanist walkable city center.

Marinoff and Arellano have also brokered many of the neighborhood’s hallmark transactions and continued to set the standard as market leaders of the Greater DWNTWN Miami Area.

 

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Blockchain.com To Open 22,000 SF Miami HQ In Wynwood

Blockchain.com, a major player in tech, is opening its Miami headquarters on the top two floors at Cube Wynwd in Miami, bringing the building to full occupancy.

Blockchain.com, which provides consumer crypto products, signed a 22,000-square-foot lease at Cube Wynwd, at 222 Northwest 24th Street, according to a news release from the building’s owners. The company, which announced in 2021 it is moving its base from New York to Miami, will soon start the design of its new space.

Peter Smith is the CEO of Blockchain.com.

Tricera Capital and Lndmrk Development, both based in Miami, bought the eight-story, roughly 100,000-square-foot Cube Wynwd for $28 million in April from the property’s developers, Redsky and JZ Capital Partners. The property includes ground-floor retail.

 

Source:  The Real Deal

 

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Related Group, W5 Group Break Ground On Quarters Wynwood Co-Living Development

The Related Group and W5 Group have broken ground on Quarters Wynwood, a new co-living development coming to Miami’s hot Wynwood neighborhood, after the developers locked down a $29 million construction loan.

The building, which will be located at 33 NW 28th St., will feature shared living spaces and residents will rent bedrooms in shared apartments. The financing was provided by the Chicago-based MP Real Estate Capital and the property will be managed by Quarters, a Berlin-based co-living operator.

Quarters Wynwood is designed by Arquitectonica and will feature 63 apartments with 217 full furnished co-living bedrooms. Amenities will include a rooftop pool deck, fitness center, co-working spaces. The project will also bring 3,852 square feet of ground floor retail.

 

Source:  ProfileMiami

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Tristar Proposes Pair Of Office Buildings In Wynwood

New York developers Tristar Capital and Ral Development Services filed plans for a pair of neighboring office buildings in the Wynwood Arts District neighborhood of Miami.

The Wynwood Design Review Committee will consider plans on Feb. 9 for The Wyn on 5th South and North at 2641 and 2701 N.W. Fifth Ave, respectively. The 1.6 acres of land is owned by Cainstar LLC and Brownstar LLC, both affiliates Tristar and Ral Development. They currently have several two-story commercial buildings that would be demolished.

The developers formed Ral Tricap Wynwood LLC to build this project.

“The development team has assembled a best-in-class design and engineering bench to bring activated, engaging and thoughtful urban planning and architectural design to the site, creating a new arrival point and gateway into the Wynwood neighborhood,” said Spencer Levine, president of Ral Development. “Wyn on 5th will reimagine the work experience and create a transformative way to work in Wynwood.”

Both buildings would rise eight stories with a pedestrian paseo between them and have active roof decks.

The Wyn on 5th South would total 318,325 square feet, with 139,254 square feet of offices, 11,904 square feet of retail, 4,707 square feet of indoor amenities, an 8,532-square-foot outdoor amenity deck on the fourth floor, and 370 parking spaces, including 74 for electric vehicles.

The Wyn on 5th North would measure 260,265 square feet, with 106,414 square feet of offices, 6,961 square feet of retail and 268 parking spaces, including 54 for electric vehicles.

 

Click here to read more about this story.

 

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Transit-Oriented Wynwood Parcel Sells For $19.5 Million

Metro 1 announced the $19.5 million sale of a 1.4-acre development site in Miami’s Wynwood neighborhood.

Located at 45 Northeast 27th Street, the site is zoned T5-O under Wynwood’s NRD-1 zoning overlay and steps away from the proposed Wynwood commuter rail station and two potential Metromover stations. Metro 1 managing director Juan Andres Nava represented the sellers, CHO RE Holdings, LLC (a Tony Cho owned entity) and Scott Silver and Newcomb Properties LLC, while the firm’s Jack Conrad represented the buyer, Fifield Companies.

The transaction emphasizes continued demand for Wynwood real estate and expansion of Miami’s mixed-use development pipeline and transportation-oriented development.

“The Metro 1 team prides itself in thoughtfully curating these types of deals, connecting buyers with the right sites to not only ensure successful development, but community wide benefits,” said Metro 1’s Nava. “Demand for Wynwood development opportunities is incredibly strong as one of Miami’s cultural hubs and sought-after locations for relocating companies in the tech and finance sector.”

Still in the planning stages, Fifield looks to develop a mixed-use apartment community on their newly acquired site. Preliminary plans include 210 rental units, 11,500 square feet of retail and 296 parking spaces. The development would also include a pedestrian “paseo” connecting Northeast 27th and Northeast 28th Streets.

 

Source:  CRE-sources

 

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Former Miami Rescue Mission Building Trades In Off-Market Deal, Creating One Of The Largest Contiguous Sites In Wynwood

In an off-market deal, Soho, LLC, an entity managed by The Faith Group, has purchased the former Miami Rescue Mission headquarters building located at a 2159 NW 1st Court in Wynwood.

The 1962-built 11,810-square-foot building, which is situated on a 6,812-square-foot lot, was purchased from FBWS development Senior LLC for $3 million.

The deal closed December 9.

The building is located adjacent to Soho Studios, a 45,000-square-foot creative event space, on a 68,000-square-foot lot located at 2136 NW 1st Ave, which is also owned by The Faith Group.

Roy Faith
Roy Faith

“This was a strategic purchase as this building is on a corner lot adjacent to our Soho Studios,” commented Kevin Faith, CEO of the Faith Group. “This was the last piece we needed to create a 75,000-square-foot footprint, one of the largest contiguous sites in Wynwood.”

“Having seen how Wynwood has evolved over the past 10-15 years, our group firmly believes we are still in the early stages of one of the most vibrant communities in the US,” added Roy Faith. “With the continued developments currently online and many more to come, there is a long runway still ahead and we are excited to be part of it. We are looking at several different concepts for the property.”

 

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Wynwood Plaza Development Set After $50 Million Sale Of Former Rubell Art Museum Site

A multimillion-dollar property deal sets the stage for transformation of an abandoned corner in Wynwood Norte to begin next spring.

Carpe Real Estate Partners and L&L Holding Company, both New York-based development firms, acquired three acres at the northeast corner of Northwest First Avenue and Northwest 29th Street on Tuesday for about $50 million, said Carpe Real Estate co-founder and managing partner Erik Rutter.

Designed by architectural firm Gensler, Wynwood Plaza would bring 12- and 8-story buildings with 509 apartments to the neighborhood, 266,000 square feet of offices, 32,000 square feet of commercial-retail uses, and parking for about 668 vehicles. Cnstruction is expected to begin in April with a completion date sometime in late 2023

 

Source:  Miami Herald

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Black Lion’s South Florida Retail Shopping Spree Continues With $19M South Beach Deal

In a $19 million deal, Black Lion Investment Group purchased its fourth Miami-Dade retail site in a six-month span.

The Los Angeles-based commercial real estate investment firm picked up the ground-floor commercial condos in Marea, a six-story boutique condominium at 801 South Pointe Drive in Miami Beach’s South of Fifth neighborhood, according to a press release. Black Lion, led by Robert Rivani, paid roughly $995 a square foot for 19,100 square feet of retail.

The seller is Marea Retails, an entity managed by Domenico Albano and Americo D’Agostini, principals of Miami-based A&D Group Realty. Marea Retails sold the two commercial units for the same price the company paid in 2015, when developer The Related Group completed the building. The project’s 30 condos atop the commercial space were sold to individual owners.

D’Agostini called the off-market trade with Black Lion “a good deal.” Fabio Faerman and Sebastian Faerman of FA Commercial brokered the sale.

Existing commercial tenants include RED Steakhouse and KoSushi. In a statement, Rivani said Black Lion plans to lease about 9,400 of available space to other fine dining restaurants. Marea is about a five minute walk from the Yukon building where celebrity chef Gordan Ramsey is opening a Lucky Cat restaurant.

Since June, Black Lion has dropped a total of $57.9 million to acquire retail spaces in Miami and Miami Beach, including the two Marea commercial units. The company first acquired Wynwood Arcade, a nearly 23,000-square-foot retail and restaurant building in Miami’s Wynwood neighborhood for $13.3 million. The revamped warehouse is home to Salty Donut craft doughnut and coffee shop, and No. 3 Social rooftop lounge.

Also in June, Black Lion paid $12.1 million for Amara, a 12,300-square-foot restaurant operated by Michael Schwartz in Paraiso, another condo project by the Related Group in Miami’s Edgewater neighborhood.

In July, Black Lion bought a retail condo at the SLS Lux Brickell in Miami for $13.5 million. The space formerly housed Katsuya sushi restaurant and SBar.

 

Source:  The Real Deal

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Looming Tax Break Deadline Is Spurring Last-Minute South Florida Real Estate Deals

Time is running out for investors in South Florida seeking a tax break by investing in opportunity zones, which allows for investments in lower-income areas to have tax advantages.

The rush is fueling deals as the population continues to grow due to continued migration to South Florida. Developers hope to get deferred taxable gains on projects such as new hotels, branded residential properties and more.

Dec. 31 is the deadline for individual investors seeking qualified opportunity zone investments to help defer taxable gains. Tax benefits in the program include a 10% basis step-up and related gain exclusion. If investors take advantage of the opportunity, they can defer paying capital gains on their investment until Dec. 31, 2026.

Besides the temporary deferral, other advantages include the exclusion of taxable income on new gains on investments held for 10 years or more, and a 10% increase in the investment if the qualified opportunity fund is retained for five years and a 15% increase if the investment is held for seven years.

After the December 31 deadline, the investors have until June 30, 2022, to invest the funds in businesses located in an opportunity zone to comply with the regulations.  If they’re not, there’s a small penalty regarding the interest cost.

There are about 8,700 opportunity zones in the country with 123 opportunity zones in South Florida. Miami-Dade has 67, Broward has 30, and Palm Beach County has 26.

 

Click here to read more about this story.

 

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Miami Board Denies Wynwood Station Mixed-Use Project

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

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

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

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

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

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

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

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

The project was designed by MSA Architects Inc.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Source:  Miami Today

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