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Gateway At Wynwood Heads To Foreclosure

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Three years after completing Gateway at Wynwood, R&B Realty could lose the 14-story mixed-use building at a foreclosure sale set for next month.

On May 28, Miami-Dade Circuit Court Judge Pedro Echarte Jr. granted final judgment in favor of Wilmington Trust NA as trustee for Boise-based A10 Capital, court records show.

Two months ago, Wilmington Trust filed a foreclosure complaint against the R&B affiliate that owns Gateway at Wynwood at 2916 North Miami Avenue. The lawsuit alleges that New York-based R&B defaulted on two loans by failing to make monthly payments since December.

As of last week, R&B allegedly owes $111.9 million in principal, interest and fees, Echarte’s order states. Aron Rosenberg, R&B’s CEO, did not respond to an email request for comment, and attorneys for Wilmington Trust declined comment.

The foreclosure auction is set for July 2, court records show.

Gateway at Wynwood is among a handful of new office buildings with ground-floor retail that opened in the trendy neighborhood in recent years. When the 220,000-square-foot building was completed in 2021, R&B ramped up office and retail leasing at Gateway at Wynwood over the following year. The tenant roster includes tech start-up OpenStore, crypto company Ripple, brokerage Marcus & Millichap, biopharmaceutical company Veru, and coworking provider Mindspace.

But roughly 59,000 square feet, including the entire 12th floor, remains vacant. Its street-level ground-floor spaces are plastered with advertising to attract potential tenants.

The neighborhood, which is still going through a development boom that is adding thousands of new apartments, condo units and hotel rooms, has roughly 760,000 square feet of available office space, CoStar data shows. Nearly half of the available square footage is under construction, including a planned 12-story building with 250,000 square feet of office that is part of the Wynwood Plaza project adjacent to Gateway at Wynwood.

 

Source:  The Real Deal

 

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Co-Working Giant Closing Outpost In Miami Beach In Bankruptcy Restructuring

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WeWork, which filed for Chapter 11 bankruptcy restructuring in November, put the branch at 429 Lenox Avenue in Miami Beach on the chopping block, according to a notice WeWork filed in court on Thursday.

The closing would be the first Miami-Dade County outpost WeWork wants to scrap as part of its restructuring plan. The outpost is among those listed in the filing’s “schedule of rejected unexpired leases.”

WeWork has six branches in South Florida, all of them in Miami-Dade County. This month, it announced it’s keeping four outposts. They are at the Wynwood Garage, 360 Northwest 27th Street in Miami’s Wynwood neighborhood; 78 Southwest Seventh Street in Brickell City Centre in Miami; and two Coral Gables at 2222 Ponce de Leon Boulevard and at 255 Giralda Avenue in the Giralda Place. Both of the Coral Gables offices are at the Giralda Place mixed-use complex.

The fifth outpost is at the Southeast Financial Center at 200 South Biscayne Boulevard in downtown Miami. In 2017, WeWork leased 90,000 square feet on four floors at the 55-story tower owned by billionaire Amancio Ortega’s Pontegadea real estate firm.

The Southeast Financial Center branch is listed in the “schedule of assumed unexpired leases” in WeWork’s court notice, signifying it may also be keeping this outpost.

WeWork first filed a motion to reject its Miami Beach lease last month, though the firm said it was still hoping to remain at the location. At the time, a WeWork spokesperson said that it was in talks with the building’s owner but so far had been “unable to reach an agreement with our landlord,” the South Florida Business Journal reported. The April filing to potentially reject the lease was submitted to the court in case WeWork fails to reach a deal with the landlord.

Now, WeWork confirmed it had finalized its decision to close the outpost.

 

Source:  The Real Deal

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Construction Of Phase 2 Of Wynwood’s ‘Wyncatcher’ Project Set To Begin

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Berkadia has secured a $35 million loan to fund the construction of Phase II of Wyncatcher, a new 78,000-square-foot mixed-use creative space in the renowned Wynwood Arts District in Miami.

Managing Director Scott Wadler and Vice President Michael Basinski secured the financing on behalf of the sponsor, Morabito Properties, a Miami-based development firm led by Valerio Morabito.

The deal closed on May 29.

The project consists of two adjoining properties built in phases: Phase I, which was completed in Q4 2023 and consists of 38,400 square feet, is entirely leased to Knotel, a flexible workspace provider. Phase II will consist of 6,000 square feet of ground-floor retail space and 42,000 square feet of creative office space, slated for completion in Q2 2026.

BridgeInvest provided the floating-rate loan which will be used to pay off the existing construction loan on Phase I and fund construction on Phase II.

“Wynwood continues to fortify its reputation as a hub for innovative and creative companies,” said Wadler. “Morabito’s commitment to elegant design fits in perfectly with the ethos of this neighborhood and will ensure Wyncatcher is one of the most desirable creative office properties in the city.”

Located at 2143 Northwest 1 Avenue & 2150 Northwest Miami Court, the Wyncatcher is a high-design project by Morabito Properties involving internationally recognized architecture firm Arquitectónica, the trailblazing Vagabongarq team, and Portuguese artist Alexandre Farto, also known as Vhils.

Phase I features a two-story industrial-style building with restaurant space, a rooftop terrace, elegant double-height, black-frame windows, and a Vhils Studio designed carved concrete facade. Phase ll will be composed of an open-air covered car park, a private garden, large double-height white frame windows, high ceilings, and natural light. The space will be ideal for creative tenants with its open-format layout, and with abundant indoor and outdoor areas, will be conducive to hosting of large events and corporate gatherings.

The property affords convenient access to the Wynwood Arts District’s most notable restaurants, retailers, entertainment, and attractions like Wynwood Walls, Pastis, UNKWN, as well as Downtown/Brickell, Miami Beach, and Miami International Airport.

 

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Pharma Company Moves HQ From Midwest To Miami Beach

777 W 41st St

SAB Biotherapeutics moved its corporate headquarters to Miami Beach ahead of a receiving clearance to begin a clinical trial for a new type 1 diabetes treatment.

Previously based in Sioux Falls, South Dakota, the company now has a 1,300-square-foot headquarters office at 777 W 41st St. (777 Arthur Godfrey Road) that opened in April. The firm’s research and development campus remains in South Dakota.

Chairman and CEO Samuel J. Reich is a longtime Miami resident.

 

Source:  SFBJ

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WeWork’s Last Remaining Miami Beach Office Is Up In The Air

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Major coworking space operator WeWork submitted a move to revoke the lease at its Miami Beach facility.

Based in New York, WeWork submitted a motion to the United States Bankruptcy Court District of New Jersey to reject two leases on April 16. One of the leases is in South Beach at 429 Lenox Avenue. The other is in Irvine, California. On May 31, WeWork may terminate both leases, per court filings.

A spokeswoman for WeWork said the company wants to remain at Lenox Avenue, but has to make preparations to exit in case a deal can’t be worked out. WeWork is the sole tenant in the five-story building.

 

Source:  SFBJ

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Gridline Properties Signs Leases With Monster Energy, 7 Others At Wynwood Office Building, Achieving 100% Occupancy

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Gridline Properties has closed eight lease agreements totaling nearly 40,000 square feet of space on behalf of commercial real estate investor and landlord, Big Move Properties, marking 100 percent occupancy of the newly renovated office building at 1900 NE Miami Ct.

Leasing Director and Senior Associate Emilia Howard facilitated the lease transactions on behalf of the landlord for the centrally located building at the intersection of Wynwood and Downtown Miami.

The three-floor office building, owned by Big Move Properties, is known as ‘The Sky Building’ and spans a total of 58,500 square feet. The new tenants will reside on the second and third floor, totaling nearly 40,000 square feet. The first floor was previously leased. The building was recently renovated, designed by interior design firm, ReDefine Design, to include modern, loft style offices with glass partitions, LED lights, natural light, high ceilings and exposed, artistic brick walls. Big Move Properties offers tenants build-to-spec office options. Located along North Miami Avenue, Wynwood’s most trafficked artery, the property offers easy access and walking distance proximity to many Wynwood eateries.

Leases were signed with Touchland LLC, Seitrack US, 4Eon, Building Drops, Supply Caddy, Aroma 360, MicroDesign, Sherpa, and Monster Energy, newcomer to the market. All tenants have moved in, except for Monster Energy, which is slated to move in in early May. Details of the newly signed leases and tenants can be found below.

  • Monster Energy – Company that produces a variety of energy drinks, coffee drinks, hydrating sports drinks, juices, teas, beer and alcoholic beverages. | Leased 7,932 square feet | Represented by Vivian Gonzalez and John Marshall of Cushman and Wakefield
  • Aroma 360 – A luxury scenting company that provides scenting solutions for homes, businesses, and commercial spaces – even cars. | Leased 9,588 square feet | Represented by Gridline Properties
  • Supply Caddy – A leading global manufacturer and supplier of packaging and disposables for the food service industry. | Leased 4,298 square feet | Represented by Carlyle Coffin of Stream Realty Partners – Florida
  • Touchland LLC – An award-winning lifestyle brand that produces a unique hand sanitizing mist experience in a variety of scents. | Leased 2,927 square feet | Represented by Emilia Howard of Gridline Properties
  • Seitrack US – Artist management and booking agency specializing in key areas for artistic development. | Leased 2,625 square feet | Represented by Emilia Howard of Gridline Properties
  • Building Drops – A structural engineering consulting company with a focus on the glazing industry. | Leased 3,375 square feet | Represented by Mateo Romero of Gridline Properties
  • Mircro Design & Sherpa – The two full-service food & beverage design companies will share an office. | Leased 2,550 square feet | Represented by Gridline Properties
  • 4EON – A leading, full-service experiential marketing agency that specializes in merging both the live and digital worlds for top global brands. | Leased 1,334 square feet | Represented by Luca Migliore of Gary Hennes Realtors

Despite market challenges with office leasing, Gridline Properties was able to secure a strong roster of local and institutional tenants to this adaptive reuse project in the Wynwood neighborhood.

“The success we’ve had while leasing this building proves that Wynwood continues to appeal to growing businesses,” said Emilia Howard, Leasing Director and Senior Associate at Gridline Properties. “We are thrilled to have guided these tenants through the leasing process and to work with a visionary landlord like Big Move Properties that continues to meet the evolving needs of today’s businesses.”

Big Move Properties is a commercial real estate development firm specializing in unique, creative spaces customized for businesses seeking to capitalize on the energy of Miami’s most exciting neighborhoods including Wynwood, Allapattah and Little River.

“The Sky Building is an idyllic property that embodies the essence of Wynwood and offers a dynamic work environment for tenants,” said Doug Levine, Chief Executive Officer of Big Move Properties. “We enjoyed working with Gridline Properties throughout this process and are excited to welcome our new tenants.”

 

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Sumaida + Khurana Proposes Five-Story Office Building In South Beach

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Less than a year after starting construction of the Fifth Miami Beach office project, Sumaida + Khurana is proposing a second office building in the city.

New York-based Sumaida + Khurana, led by Amit Khurana and Saif Sumaida, wants to develop the 101,400-square-foot building with a ground-floor restaurant on a 0.8-acre lot at 1100 Fifth Street, near the MacArthur Causeway exit ramp, according to the firm’s filing to the city.

The property owners, Roslyn and Norton Nesis, as well as Robert and Miriam Weiss of Weiss Properties, are partnering on the project.

The building is designed by Pritzker Architecture Prize-winner Eduardo Souto de Moura, in collaboration with Zyscovich and Gabellini Sheppard.

The Miami Beach Planning Board is expected to vote on the project at its meeting on April 25.

If approved, construction is expected to start in the middle of next year, and completion is expected in the summer of 2026, Khurana said.

 

Source:  The Real Deal

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The Gateway at Wynwood Targeted In $101.7 Million Foreclosure Lawsuit

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A $101.7 million foreclosure complaint was filed against the Gateway at Wynwood office complex and a nearby bank office.

On March 19, Wilmington Trust, a commercial mortgage-backed securities (CMBS) trust, filed a foreclosure complaint against 2830 Wynwood Properties and Gateway at Wynwood LLC.

The 14-story office building at 2916 N. Miami Ave. is targeted for seizure by the lender. With 490 parking spaces, 25,000 square feet of retail space, and over 200,000 square feet of office space, it has a total area of 418,337 square feet. On the 1.11-acre plot, it was finished in 2021. The 5,187-square-foot Chase Bank bank branch at 2994 N. Miami Ave. is also the subject of the case. The building, which occupies 11,383 square feet, was bought by 2830 Wynwood Properties in 2015 for $7.4 million.

In February 2023, A10 Capital granted $109.7 million in mortgages to Gateway at Wynwood and $3.3 million to 2830 Wynwood Properties. The loans represented a refinancing of the office building’s construction loan. Afterwards, the loans were moved to a CMBS fund by A10 Capital. In accordance with the lawsuit, the borrowers owe $98.68 million and $3.04 million, respectively, plus interest and fees, after they stopped making payments on the loans on December 1, 2023.

On February 27, the lender sent a letter to Aron Rosenberg of R&B Realty in New York, requesting repayment of the debt.

The Gateway at Wynwood was one of the first office buildings constructed in the Wynwood area. According to a recent online listing, 80,031 square feet of space in Gateway at Wynwood is available for lease. The asking rate was $70 per square foot.

 

Source:  SFBJ

 

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Aventura MOB Under Construction Hit With Foreclosure Suit

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A 142K SF medical office building under construction in Aventura is the subject of a foreclosure lawsuit while its developer looks to sell it for $90M.

An affiliate of Rok Lending filed suit against Gomez Development Group alleging that the Miami-based developer has defaulted on a $15M loan for the property at 21291 NE 28th Ave., where Gomez is building a speculative medical office building.

The suit from Aventura-based Rok alleges that Gomez Development entered into the mortgage in May but stopped making monthly payments on the debt in July. Rok is seeking a $16M judgment to recover the loan’s principal, interest and fees, and asked the court to also allow the firm to recover attorneys’ fees.

Rok is suing Aventura Eco-Offices Property Owner LLC, an affiliate of Gomez Development, and the firm’s managing partner, Marlon Gomez, who personally guaranteed the debt, the lender claims. The suit was compiled by property intelligence platform Vizzda.

Gomez is negotiating with a new lender to refinance the debt and maintain control of the property, he wrote in an email.

“While our project faced hurdles securing construction financing these last few months due to challenges many lenders are facing with their current portfolios, we’ve found a new private lender to work on refinancing our current loan and enabling us to utilize CPace as an alternative financing to fully capitalize and complete our project,” Gomez told Bisnow

Gomez paid $19M for the 1.6-acre site in October 2021, property records indicate. His firm secured a $45M loan from Los Angeles-based Parkview Financial in 2021 to begin construction on the planned seven-story medical office with a four-level parking garage adjacent to Aventura Hospital and Medical Center.

The project, designed by Miami-based Caymares Martin, was originally slated to deliver by the end of 2022 but remains under construction. The Parkview loan was fully paid off last year with a final closing balance of around $10M, Karina Parada, the firm’s marketing director, told Bisnow.

Gomez said the Rok funding helped pay down the Parkview loan and also covered costs on pre-development and site utilities, infrastructure and foundation work, which is now completed. Vertical construction has commenced and the firm is aiming to deliver the building before the end of the year, Gomez said.

The unfinished project is being listed for sale by Fortune International Realty broker Cesar Sanchez. The building will seek LEED Gold Certification and will include around 100K SF of rentable medical office space and a 5K SF ground-floor retail space, according to a marketing brochure for the property.

“We are confident in our project’s value, with our land’s value doubling that of our current loan and we are communicating openly with our current lender regardless of any claims being made,” Gomez said. 

 

Source:  Bisnow

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$38 Million Mixed-Use Redevelopment Proposed In Miami Beach

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Architecture firm Giller & Giller wants to redevelop a trio of short retail buildings into a $38 million, mixed-use complex, according to a filing to The Miami Beach Planning Board, which will hear the proposal March 26.

Called the Giller Tower, the seven-story development would total 102,701 square feet at 3915 Alton Road, at the intersection with 41st Street near the Julia Tuttle Causeway. The ground floor would house retail space, floors two to four would be dedicated to parking, and the remaining stories would house 50,000 square feet of offices.

The property currently holds three low-rise retail buildings that were constructed between 1938 and 1954 and are leased to UPSMiami Fresh Fish Market, and restaurants such as Bagel Time Cafe and Grill House. Giller & Giller, a local architecture firm founded in 1944 that’s now led by Ira Giller, is based across the street at the historic, MiMo-style Giller Building.

While Giller & Giller would occupy a small portion of the proposed development, likely 2,000 square feet, “This is primarily a commercial office building leasing venture,” Ira Giller told Commercial Observer. “I think there’s a demand for new Class A office space in Miami Beach.”

Giller estimates that the development will cost $38 million. Construction could begin in early 2025.

The Giller family assembled the half-acre of property between 1980 and 1983, paying $730,000 in total, according to property records.

 

Source:  Commercial Observer

 

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