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800-Plus Apartments Could Break Ground Near Aventura Mall, Future Brightline Station

Mill Creek Residential has proposed a 15-story apartment complex just west of the Aventura Mall, near a future Brightline passenger rail station.

The Boca Raton-based developer filed a pre-application with Miami-Dade County for the 4.85-acre site at 2681 N.E. 191st St., on the east side of West Dixie Highway. Mill Creek Residential has it under contract from Miami-based WD 2600 LLC, managed by Bruno Bloch in Miami.

The site currently has an 18,407-square-foot warehouse constructed in 1971 that’s mostly used for truck parking.

It’s located in the Ojus neighborhood west of Aventura.

This particular site is two blocks south from where a Brightline station is under construction.

Modera Aventura would have 840 apartments, 15,245 square feet of retail facing West Dixie Highway and 1,096 parking spaces. It would be developed in two phases of equal size. The two buildings would have separate pools.

 

Source:  SFBJ

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The Numbers Behind South Florida’s Multifamily Boom

With investors and renters continuing to flock to South Florida, the region has proven itself to be a promising real estate market and the multifamily sector has been strong. There were 603 multifamily properties sold in South Florida during 2021, totaling $11.4 billion. This is more than double the previous $5.5 billion annual sales record set in 2016. Not to mention, all three South Florida counties experienced record average per-unit sales last year: Miami-Dade came in at $278,432, Broward showed strong performance with $281,163, and Palm Beach topped the others with $292,221. Most of these sales involved out-of-state private capital investors, eager to get into the growing South Florida commercial real estate market.

Because multifamily has performed so well in South Florida, it’s not surprising that rent rates have also gone up. Last year, effective rents increased by 19.7 percent in Miami-Dade, 23.3 percent in Broward and 32.1 percent in Palm Beach. Average rent rates were $1,997 per month in Miami-Dade, $2,073 per month in Broward and $2,280 per month in Palm Beach. Factors contributing to the strong rental demand include population growth, a surge in single-family housing pricing, the snapback in rent growth from a static 2020, and a net absorption of almost 20,000.

We have also seen the value-add upside deals becoming more commonplace once again and savvy investors are finding South Florida an attractive area for their future investment opportunities. Rental demand is also growing due to the business-friendly nature of South Florida and the ability of employees to work remotely with many choosing South Florida as their new home. Over the next five years, it is projected that 14,800 new renters will enter the South Florida market each year, according to Cushman & Wakefield’s multifamily forecast for 2022. This is based on historic homeownership rates where 60 percent of individuals enter into homeownership and 40 percent choose to rent, though that is subject to change.

The demand for multifamily properties and rising rental rates has caused vacancy to go down and absorption to skyrocket. In 2021,  the vacancy rate in Miami-Dade went down from 6.7 percent to 3.2 percent; 7.4 percent to 3.2 percent in Broward; and 7.9 percent to 4.1 percent in Palm Beach. This marks the first time in almost 20 years where all three counties have sub-5 percent vacancy rates. We saw a similar trend with absorption, with 19,136 net units absorbed in South Florida in 2021. Over the same period, there were only 7,362 new units delivered and added to the market. Positive net absorption fueled by strong rental demand has created limited rental supply despite new apartments being built.

The region’s population influx was the main driver behind high absorption levels in 2021. South Florida’s net absorption  reached almost triple the new supply added to the market. Since 2017, the region’s population has grown by 135,130 and during the same period 34,499 new apartment units were built. This means one unit was built for every 3.9 net new people to the region. Over the next five years, South Florida is expected to see a positive net migration of 323,062 people. Using the same ratio, the region would need over 82,000 new rentals to keep pace with the population growth for the next five years.

Looking ahead to what’s in store for 2022, it’s expected that out-of-state private capital investors will continue to remain most active in the multifamily market as they opt to add more of these properties to their portfolios instead of office or retail. Other trends that we saw in 2021 will likely continue into 2022, include new construction increasing but in-line with absorption levels, rents continuing to increase, but not at the same levels witnessed in 2021, and the migration of capital and new residents to South Florida. The market is ideally positioned for continued long-term growth and sales activity will be strong thanks to positive market fundamentals.

Chris Owen is director of Florida research at Cushman & Wakefield. Calum Weaver is an executive managing director for Cushman & Wakefield’s multifamily group in Florida.

 

Source:  Commercial Observer

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Miami-Dade Plans Massive Redevelopment In Downtown Miami

County authorities are working to redevelop over 20 acres of the downtown Government Center to include a transit terminal, affordable housing, and community cultural facilities and schools. Procurement for the first phase is expected during or after summer, but many details are still being discussed as the project encompasses many county departments.

The purpose of the 10- to 15-year redevelopment is to better use county-owned lands and meet community needs. The county would include a downtown intermodal terminal to provide bays for all buses terminating in Government Center to rise north of the Stephen P. Clark Center.

As Miami Today reported, the $35 million intermodal terminal project is part of the People’s Transportation Plan for 2022-2026, approved by county commissioners Feb. 2. As is the entire redevelopment area, the terminal is still in the definition phase and county staff is hashing out what features it would have.

“There have been talks for several years of developing a bus terminal here at the north of the Stephen P. Clark Center, where the county has excess land,” Dawn Soper, director, P3 & property development of the Internal Services Department, who is on the county team for the redevelopment, told Miami Today.

The redevelopment would also include open space areas such as parks for the residents.

“As you build these higher-density buildings, some of them might be office spaces, market-rate housing, but because it’s a priority of mine, some of these properties have to be redeveloped with affordable and workforce housing in mind,” said Commissioner Eileen Higgins, who has been working to present an item to the commission for the redevelopment for over a year and a half.

Some county-owned structures within the 20-plus acres aren’t necessarily earmarked to be torn down, such as the new Children’s Courthouse, open since April 2015. But areas such as the main county library and History Miami museum’s two buildings might be reconstructed to allocate higher buildings. The intention is to do so without interrupting service to residents.

“One of the things that will be in the RFP (request for proposals) is some kind of educational component,” Commissioner Higgins said. “Downtown doesn’t have elementary, middle or high schools, so it will include educational, cultural and parks components and affordable housing.”

While Ms. Higgins, the Mayor’s Office and the county departments work to define what they want the redevelopment to include, the staff is also going through infrastructure planning to identify necessary improvements in water and sewer, stormwater, and drainage, the conductivity in the streets, and electric power before beginning with procurement.

The efforts of the county to redevelop the Government Center area date as far back as 2014, when commissioners approved a resolution directing the mayor to report on the plan, development, and maintenance of county-owned property in downtown Miami.

In 2017, former Mayor Carlos Gimenez presented a report that outlined the county-owned properties, the redevelopment potential of some lands and assets, vacant lands, and the potential opportunities.

Since then, new county rezoning ordinances placed the Government Center area in the ​​Transit Oriented Development zoning, the county held public workshops with input from FIU students, the project took shape, and priorities were identified, Ms. Soper said.

The next step is to let developers bid on the project and propose what they can do to reach the county’s goals.

“We are in the planning stages, with the anticipation to finally benefit the community,” Ms. Soper said.

 

“It’s exciting to create a new neighborhood centered on affordability, centered on transit,” Ms. Higgins said. “County land is actually the people’s land, so we should be giving it the best use for things like museums, parks, and affordable housing.”

When asked about a resolution headed to the commission to allow five constitutional officers, including those to be elected in 2024, to move their offices outside the City of Miami, Ms. Higgins said she didn’t think that decision would have any impact on this project: “It might free up some space. It might not.”

 

Source:  Miami Today

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Mixed-Use Project With High Street Retail Planned As ‘Alternative To Aventura Mall’

Developer Dan Kodsi plans a major mixed-use project with apartments, offices, and high street retail in Aventura.

Kodsi’s Miami-based Royal Palm Companies, through an affiliate, paid a reported $39.1 million for 9.6 acres on the northwest corner of Biscayne Boulevard and Northeast 213th Street.

Reuven Tako and Jacqueline Tako of North Miami sold the properties through affiliates, according to deeds and state corporate records. Greg Greer of CRR Acquisition represented the buyer and sellers.

This is just the first portion of the assemblage, as more deals are on tap for nearby parcels, with the entire site for the planned development spanning more than 10 acres, Kodsi told The Real Deal. Royal Palm Companies could enter joint venture partnerships for the development.

Kodsi declined to name potential project partners or the total purchase price for all of the lots, only saying that the total project’s value would exceed $500 million.

The overall site currently consists of land and small residential buildings that Aventura-based Rieber Developments succeeded in getting rezoned to allow for 1.3 million square feet of mixed-use development, Kodsi said.

 

Source:  The Real Deal

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Crescent Heights Scores School Board Approval To Buy Downtown Miami Land For Mixed-Use Project

Real estate giant Crescent Heights secured approval from the School Board of Miami-Dade County to purchase a lot north of downtown Miami, capping a yearslong effort to acquire the site.

Crescent Heights, a Miami-based developer led by Managing Principal Russell Galbut, is expected to pay $20.6 million for the property at 1370 Northeast Second Avenue.

The deal still hinges on the extension of the ​​Omni Community Redevelopment Agency through 2045, which would have to occur by the end of this year, as well as zoning approvals. Crescent Heights is seeking tax incentives the CRA would provide for the Arts & Entertainment District site.

Crescent Heights would double the size of its assemblage with the acquisition of the school board’s 1.1-acre lot, to build a major mixed-use development designed by architect Rafael Viñoly, who designed the developer’s NEMA tower in Chicago. Crescent Heights owns the adjacent parcels immediately south.

The Miami project, called Casa Forma, calls for a 43-story, 1,100-unit residential tower on top of a podium with eight floors of parking and two floors of office space. The school board would receive roughly 100,000 square feet of office space and Crescent Heights would also provide about 1,100 parking spaces, half of which the school board would control. The build-out cost for the office space would be capped at $420 per square foot, according to the proposal.

The residential units at Casa Forma would likely be apartments, Galbut said. He expects to begin construction immediately after obtaining entitlements, and the project would take about 38 months to complete from groundbreaking. Crescent Heights plans to invest about $100 million into the project, he said.

 

Source:  The Real Deal

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Multifamily Developments In Pipeline Could Take Years To Finish

Feeding into a record-breaking in demand real estate market, multifamily developers have enough work in the pipeline to last into 2024.

With a tremendous amount of backlog, demand for multifamily development will not diminish any time soon, said Al Fernandez, president for ANF Group, a firm providing construction management in commercial, multi-family and education projects.

Like new multifamily buildings like St. Martin Place and Edison Place apartments in Miami, calls from either new developers or existing developers for multifamily projects in Miami-Dade will continue to be an increasing trend, he said.

“I would say that no one particular area in Miami-Dade has been isolated,” Mr. Fernandez said. “For these types of units (market rate rentals), I think they’re sprinkling it all over the county.”

In the past year, Miami delivered 7,400 units and had a net absorption of 13,900 units. The county also experienced year-over-year positive rent growth of 19.7%, according to CBRE Group’s multifamily end of 2021 market report.

Riding the multifamily construction trend wave is a soon-to-be luxury waterfront townhome community in North Miami Beach called Koya Bay.

Real estate firm Macken Companies has broken ground on the intracoastal waterway in the Eastern Shores neighborhood at 4098 NE 167th St. Koya Bay will feature 10 four-story residences in a gated community with three-, four- and five-bedroom floorplans ranging from 4,327-5,288 square feet.

With VCM Builders as general contractor, the project is expected to be completed in early 2023. Koya Bay is currently 60% sold and Macken predicts to sell out somewhere between $28 million and $32 million.

“We are thrilled to have reached this milestone and look forward to delivering an exceptional community to the City of North Miami Beach,” said Alan Macken, principal for Macken Companies.

Local developers are fortunate to be based in South Florida, which is the epicenter of growth, Mr. Fernandez added.

“I think that the reason that we’re having so much success with this multifamily product is because we have over 1,000 people a day moving to South Florida,” he said. “We’re going to continue to see this growth, even if there is a slowdown throughout the rest of our country, for several years to come.”

 

Source:  Miami Today

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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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New Downtown Miami High-Rise Project Seeks To Bring More Affordable Urban Living

A proposed new high-rise project in Downtown Miami will aim to to bring workforce housing — and potentially affordable housing — to the Miami Dade College Wolfson Campus to fill a need for more attainable living in the urban core. Three residential towers are expected to replace the seven-story College Station Garage at 190 NE Third St. After issuing a request for proposals late last year, the Miami Parking Authority selected a proposal on Tuesday from developers Related and Rovr over a proposal from Terra.

Three towers, between 39 stories and 48 stories, would sit on top of a new public parking garage with 1,350 spaces and retail on the ground floor.

The high-rise buildings will deliver a total of 1,200 units, including 180 workforce housing units and 780 market-rate units, according to the proposal. The component of 240 affordable housing units in the proposal may change or be eliminated based on further negotiations. The asking rents of the affordable housing units would be up to 50% of the area median income and the workforce housing units would be up to 140% of the area median income. The median household income is about $79,000 in the Central Business District, according to the last Miami Downtown Development Authority Demographics report published in 2018.

Related and Rovr’s proposal exceeded the Parking Authority’s minimum requirement of 8% workforce housing. Units range in layout from a 500-square-foot studio to an 1,100-square-foot unit with two bedrooms, two bathrooms and a den. Rents continue to rise across South Florida. But Downtown Miami has one of the highest year-over-year increases given the influx of firms relocating from across the Northeast to the urban core. The ZIP code 33132 has a median rent of $4,000, up nearly 74% from December 2020, according to year-over-year data from the rental housing site RentHub.

Thousands of affordable and workforce housing units are needed to ease the long-running affordability crisis in Miami, said Annie Lord, executive director of Miami Homes For All.

“You’re talking about the center of a community where you have the concentration of education, jobs, mass transit, that is where we absolutely need to focus mixed-income development,” Lord said. “The public has a right to demand a contribution for affordable housing to meet the needs of the people that live in the city. It is the number one need and we are in a state of emergency. If it was a crisis a year ago, we’re in a state of emergency today.”

The project is the first mixed-income development so far in Downtown Miami. The closest completed project, Lord said, is Brickell View Terrace in Miami’s financial district. Miami Dade College faculty and students will have priority for the affordable and workforce housing, said Oscar Rodriguez, principal of Rovr Development. His firm and Related will also focus on providing housing to “our middle class, who we believe need the most options, including nurses, teachers, emergency workers, municipal workers,” he said.

“We are at an inflection point in Miami,” said Rodriguez. “If we don’t start to work together to provide this type of opportunity to the people who have worked and are the backbone to our society, we are wasting an opportunity. We believe that the best project takes all the needs into account.” Negotiations start in two weeks regarding the final project plans, said Alejandra Argudin, CEO of the Miami Parking Authority.

Some project details might change, she said, over the next few weeks. Final details, she said, are still being ironed out.

“How can the authority make a decision that is so transformational? You don’t get those chances all the time,” said Argudin. “This was our one chance. We wanted to make sure we got it right. We thought it was important.”

Rodriguez said negotiations usually take about five months. Afterwards, the developers will focus on finalizing the design. The goal would be to start construction during the first quarter of 2023 and complete the first phase by the first quarter of 2024. Related and Rovr will land a 99-year lease agreement, said Argudin, and the Miami Parking Authority will earn all of the parking revenue and a portion of the commercial leases. In the first 30 years, she said, the Miami Parking Authority anticipates earning $116 million.

 

Source:  Miami Herald

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3.4M-Square-Foot Tower Could Rise At Former Miami Arena Site

The former home of the Miami Arena in downtown Miami could be developed into a 3.38 million-square-foot project with residential, offices and retail uses.

WG 700 North Miami LLC, a partnership between New York-based Witkoff Organization and Chicago-based Monroe Capital, filed a municipal pre-application with Miami-Dade County officials for the 4.7-acre site at 700 N. Miami Ave. The developers are seeking feedback from county officials on several code variances before asking the city for approval.

The project would have three 57-story towers connected by a podium at the base. They would combine for 2,195 residential units, 540,000 square feet of offices, 49,999 square feet of retail and 2,457 parking spaces. There would also be a park along the railroad tracks on the south side of the property.

The site plan shows most of the retail would fit in a 40,000-square-foot box at the center of the property, potentially for a large store. There would be residential units in all three towers and office space in two of the towers.

From 1988 until it was demolished in 2008, the Miami Arena hosted teams such as the Miami Heat, the Florida Panthers and University of Miami basketball. The arena was torn down after all three teams built new venues.

In 2021, Witkoff and Monroe Capital paid $94 million for the property.

 

Source: SFBJ

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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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