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NR Investments Files Proposal To Build Mixed-Use Complex In Allapattah

NR Investments wants to develop a massive mixed-use complex on Miami’s General Services Administration site in Allapattah.

Ron Gottesmann and Nir Shoshani’s development company filed a proposal for a 99-year lease and redevelopment of the city-owned 18-acre property at 1970 Northwest 13th Avenue and 1950 Northwest 12th Avenue, according to the application. The property is just south of the Santa Clara Metrorail station.

NR Investments wants to build 2,500 apartments; 300 hotel keys; 200,000 square feet of office space; and 100,000 square feet of retail, the plans show. As part of the multifamily portion, 500 units will be workforce housing for households earning from 100 percent to 140 percent of the area median income. The proposal calls for roughly 5 acres of open public greenspace.

The application does not specify the heights of the buildings, but does say the project won’t require changes to the site’s existing zoning. Currently, towers of up to 30 stories, or buildings with eight stories for podiums and 22 stories for the main portion of the towers, are allowed.

NR Investments’ submitted the application in late May as an unsolicited proposal for the public property, meaning the city has to allow other developers the opportunity to file redevelopment plans.

On Thursday, Miami commissioners unanimously voted to accept NR’s application, a symbolic decision showing they are not rejecting it, and agreed to issue formal requests for proposals. The official RFP will be issued in 45 days and allow another 45 days for applications submittals.

NR’s project envisions various public spaces, such as a “study house” for after-school, continuing education and job-training programs, as well as a community market with a stage for public events, and a promenade with food and retail stands, the application shows. The redevelopment also would breathe life into the Santa Clara station, which NR said has the lowest ridership out of all Metrorail stops.

The 5 acres of public parks will include a dog park, community gardens and possibly an urban farm.

DPZ CoDesign is the project’s architect.

NR proposes rental payments to the city that would add up to $1.5 billion for the land lease over the 99 years, the filed materials show.

The Miami GSA site currently is used for city services such as printing, and for the storage of trucks. It also has a fire rescue station on the northeast corner of the site. Under NR’s plan, the station would be moved elsewhere along Northwest 20th Street.

Among the issues commissioners discussed is that the GSA site is one of several locations designated for the creation of public park space to make up for the greenspace that will be lost by the development of Miami Freedom Park soccer stadium. Under city rules, a developer that builds over park space has to recreate it elsewhere.

NR’s proposal calls for slightly less than the 6.8-acre greenspace that must be recreated on the site to make up for what is lost from the Miami Freedom Park project.

Overall, this is something that can be fixed as the redevelopment plans move forward, some of the commissioners said.

“I don’t think that at this moment we need to determine down to the inch,” said commission chair Christine King.

Miami-based NR is among the firms that redeveloped the city’s Arts & Entertainment District. Its projects there include the 38-story Canvas condominium at 1630 Northeast First Avenue, and Filling Station Lofts, an 81-unit rental building at 1657 North Miami Avenue.

This year, NR started building the 29-story Uni Tower with 252 workforce and affordable rental units at 1642 Northeast First Avenue.

 

Source:  The Real Deal

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Starwood Cancels Purchase Of Miami Beach Office Building

Days before it was slated to close on the purchase of an office building in Miami Beach, Starwood Capital Group has pulled out of the deal, according to a source directly involved in the matter.

Miami Beach-based Starwood, one of the largest real estate investors in the world, was under contract to purchase The Lincoln, at 1691 Michigan Ave., for $92.5 million from CLPF Lincoln LLC, in care of Washington, D.C.-based Clarion Partners. The Miami Beach City Commission approved the assignment of the ground lease for the property July 20, clearing the way for the purchase. The price of the pending deal was disclosed in city records.

However, Starwood terminated the contract July 26, according to a source close to the deal. That means Starwood will likely lose the $2.5 million deposit it made when the property went under contract. If Starwood had pulled out of the deal only a week earlier, it could have recovered that money, according to the source.

The Lincoln consists of 118,658 square feet of office space, 43,166 square feet of retail and a 709-space parking garage.

Source:  SFBJ

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Miami’s CBD Is Getting Mind-Boggling Office Rent Increases

For the first time in history, the average asking rent for office space in Miami skyrocketed to more than $50 per SF in Q2.

Brickell is dominating the market — its 42% year-over-year rent increase surpassed Manhattan and Los Angeles, according to a JLL report.

Migration of America’s top talent to Miami is the main factor driving high rents and making Miami’s office market the hottest it has ever been, Blanca Commercial Real Estate founder and owner Tere Blanca told Bisnow.

“[Miami] is a place where you can attract talent, and the talent has migrated in big numbers during the pandemic and today,” Blanca said. “With a very diverse, educated workforce and population, companies are excited to be in a city that is growing in many ways [and experiencing] a business expansion.” 

Florida added 10,522 new tech jobs last year, the second most in the country, according to the Computing Technology Industry Association. CompTIA ranked the Miami metro fourth in the U.S. for net tech jobs added, and LinkedIn reported a 30% year-over-year increase in IT and software jobs in Miami in 2021.

Blanca CRE has been a player in the industry for over 35 years. According to the firm, office development is being spurred in Brickell and Wynwood by remote work and zoning improvements.

“Brickell and Downtown have experienced a lot of this dynamic … of new people moving and choosing to live in the urban core,” Blanca said, adding that the pandemic accelerated a workforce migration that industry leaders “felt would happen sooner or later.”

The Wynwood Rezoning project, approved in 2015, led to an explosion of interest from developers. As office buildings joined residential, corporate users and investors began flocking in.

Blanca CRE was the agent when Blackstone purchased two office buildings in Miami in 2021, and Blanca said its acquisition spurred more office activity.

“That unleashed an activity that was unprecedented in terms of companies coming here, many in the financial services sector and then later the tech industry and fintech industry,” Blanca said.

Heavy hitters such as Apollo, Babylon and Citadel have come to Brickell in recent years.

Other blue-chip, out-of-town tenants moving in include Microsoft Corp. and Marsh, a subsidiary of Marsh & McLennan Agency, which both moved into 830 Brickell. For coworking firms like WeWork and Industrious, the demand is at an all-time high.

“They have waiting lists, so there are many companies that have entered into licensed agreements with WeWork, IWG, Industrious and so on because they are recruiting talent, they are growing their accounts here and waiting for their permanent spaces to be delivered,” Blanca said. “We expect there is going to be tremendous demand for space on a longer-term basis as each company expands and as the executives choose where they are going to reside.”

As that happens, office demand may spill into other neighborhoods, she said.

For WeWork, this has meant finding new ways to maximize its “inherent flexibility” to accommodate the surplus of out-of-town tenants.

“We continue to see strong demand in Miami where, as shared in our Q1 2022 earnings report, we saw over 90% occupancy and accounted for 9% of commercial office leases despite representing approximately 1% of the market stock,” WeWork Territory Vice President Suzie Russell told Bisnow via email. “As a result, we have waiting lists in most of our Miami locations.” 

Russell said demand is broad-based across company sizes and industries, including tech and finance.

Initial Q2 key findings provided to Bisnow by Blanca Commercial Real Estate show that the flight-to-quality trend is positioned to continue into the foreseeable future, especially in Brickell, Wynwood, Miami Beach and the Miami Design District. That will continue driving pricing up and vacancy down.

Asking rents at 830 Brickell, considered the top-tier building in Brickell, are between $125 and $150 per SF, a $25-per-SF increase over Q1.

“This trend is extremely prominent in Tier 1 Brickell office buildings where rents increased 7.2% from the previous quarter with some landlords increasing rents between $5.00 – $7.50 per SF,” Blanca CRE said in a report. “This growth will be especially prominent in Miami’s CBD where 40% of new to market tenants are looking for space.”

Miami’s office vacancy rate is at its lowest level in eight quarters.

 

Source:  Bisnow

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Office Project Could Replace Gas Station In Miami Beach

Arkadia Property Group plans to redevelop a gas station in Miami Beach into an $11 million mixed-use project centered on office space.

The city’s Planning Board will consider the application July 26 for the 0.36-acre site at 1840 Alton Road. The property belonging to Alton Road Supreme Services, owned by Mario Suarez in Hollywood, currently has an Exxon service station and cash wash.

It would be developed by 1840 Alton Road Partners LLC, co-owned by David M. Aaron and Richard Kilstock, the managing principals of Bal Harbour-based Arkadia Property Group.

With an estimated cost of $11 million, the project would total 67,641 square feet in five stories. It would consist of 3,300-square-foot of ground-level retail, 36 parking spaces on the second level, 17,113 square feet of office space on the third and fourth floors, and a fifth floor containing an 8,000-square-foot live/work unit.

 

Source:  SFBJ

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New Office Tenants And New Development Balance Out Vacancy In Miami

While the economy has had a turbulent few years — with a global pandemic, record inflation and political drama — the vacancy rate in Miami’s office market has remained fairly static, as the horde of new-to-market tenants was balanced by new development, according to second-quarter research from Colliers.

In the second quarter of 2022, Miami-Dade’s vacancy rate stood at 11 percent across its 1,693 buildings totaling 94.3 million square feet, per the report. That marks the highest rate since the first and second quarters of 2021 when it reached 11.3 percent.

That’s above the pre-pandemic baseline in the second quarter of 2019, when the vacancy rate registered at 9.2 percent — on 91.7 million square feet of office space citywide.

Andrew Hellinger, co-principal of Urban-X Group, has been the beneficiary of national and local businesses coming to set up shop in Miami. For example, his investment in the mixed-use River Landing, along the Miami River, has paid off.

“The Health District, where River Landing is located, historically had a 0 percent vacancy rate. With the opening of the offices at River Landing, we introduced much-needed space to a tight market, which has leased much faster than we expected,” Hellinger said in a statement to Commercial Observer

The vacancy rate has remained more or less the same in Miami-Dade County despite the lingering concern that COVID-19 could stifle the return to office just as more office space was being added, Jonathan Kingsley, executive managing director at Colliers, pointed out.

“There is significant growth into South Florida combined with organic growth of existing companies who are expanding their footprints and upgrading the quality of the buildings and spaces in which they operate their businesses,” Kingsley said in a statement. “This has kept a healthy balance to offset companies and firms who are downsizing due to remote and/or hybrid work models.”

Developers have been building more in the last three months than they were in 2019 with 3.2 million square feet of office space under construction currently, compared to the 2.8 million being built in the second quarter of 2019.

Within Miami-Dade, the highest office vacancies were in the Wynwood District at around 27.7 percent and Downtown Miami with 22.4 percent — both popular areas that have seen recent deliveries. Class A suffered the highest vacancies as well, with Wynwood’s top spaces sitting empty at about 54.1 percent and 25.7 percent in Downtown.

Meanwhile, Hialeah Gardens saw the lowest vacancies in Miami-Dade, with the up-and-coming district having only 2.4 percent of its 792,137 square feet of office space — all Class B and C — available in the second quarter. Medley came in a close second with 2.9 percent of its 2.4 million square feet vacant.

In South Florida’s two other counties, vacancy rates weren’t too far off. Palm Beach County, with its 1,268 buildings and 52 million square feet of office space, had a vacancy rate of 9.1 percent, according to Colliers, while Broward County had an 11.7 percent vacancy rate within its 62 million square feet of 1,488 office buildings.

But recent hiccups in the economy are beginning to ripple through the market, particularly on the investment sales side.

“There are growing challenges on the capital markets/investment sales transactions for office buildings in recent weeks. Many buyers are forced to re-price (i.e. reduce) their offers based on increasing interest rates and cost of equity and debt,” Kingsley said in a statement. “Likewise, many owners who were considering sales of their office assets, are pausing until the debt markets settle and buyers return to more aggressive offers to purchase.”

 

Source:  Commercial Observer

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Plans Submitted To FAA For Massive Redevelopment At Miami Arena Site

Plans for a massive redevelopment at the former Miami Arena were filed with the Federal Aviation Administration this month.

The development is planned to become the biggest residential project by unit count in downtown Miami’s history, while also including a large amount of office space, according to a pre-application submitted to Miami-Dade County planners in January.

There will be a total of three towers, the January pre-application said.

On June 17, preliminary building heights were filed with the Federal Aviation Administration. The new filing states. that there will be multiple tower heights, ranging from 673 feet to 700 feet above sea level.

Preliminary plans from January show the three towers will rise up to 57 stories and include:

  • 2,351 residential units
  • 540,000 square feet of office space
  • Ground floor retail, including a possible supermarket
  • 2,457 parking spaces

The buildings will have a geometric green wall façade with plants and greenery, the January filing said.

Witkoff Group is the developer.

 

Source:  The Next Miami

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County May Seek Bids In July To Redevelop 20 Acres Of Downtown Miami

County staff is still working on putting together a bid solicitation to be out in July to redevelop over 20 acres of county-owned land in downtown Miami.

“It seems like we’re pretty close to a July release,” confirmed Commissioner Eileen Higgins, who has been working to present an item to the commission for the redevelopment for over a year and a half.

Different county departments have moved forward on the necessary steps prior to putting out a solicitation, such as the water and sewer capacity analysis, electrical capacity analysis and goals for resiliency. A consultant is working on the specifications for a transit terminal.

The project aims to better use county-owned lands and meet community needs. Thus, it would include affordable and workforce housing, market-rate housing, open spaces such as parks, office space, a new library, a new historical museum, and a downtown intermodal terminal to provide bus bays for all buses terminating in the Government Center area.

As for resiliency goals, Commissioner Higgins said the Office of Resiliency is looking at LEED certification of buildings, water usage specifications, and green spaces.

“I’m not expecting to be that specific,” said Ms. Higgins when asked about the location of the parks. “I’m going to allow the private sector to be creative.”

Although all the requirements the county would provide will officially be known when the bid is published, staff expects it could take 10 to 15 years to complete the redevelopment.

The only element still in the works that could take longer to define is the transit terminal, Ms. Higgins told Miami Today. The intermodal terminal is a $35 million project that is part of the People’s Transportation Plan (PTP) FY 2022-2026, approved by county commissioners Feb. 2.

“It’s exciting to create a new neighborhood centered on affordability, centered on transit,” Ms. Higgins told Miami Today in a February interview. The downtown Government Center is already a hub of the county’s transit system, with the Metromover, Metrorail, bus system, and Brightline already providing services in the area.

As Miami Today previously reported, efforts to redevelop the Government Center area date to 2014, when county commissioners directed the mayor to provide a report for the plan, development, and maintenance of the county-owned property in downtown Miami.

In 2017, former Mayor Carlos Giménez presented a report on the county-owned properties, the redevelopment potential of some lands and assets, vacant parcels, and the potential opportunities. Since then, the county has been adopting rezoning ordinances to place the Government Center area in Transit Oriented Development (TOD) zoning.

“We’re going to be creating a hub downtown to live, work, and learn,” Mayor Daniella Levine Cava said in an April interview.

 

Source:  Miami Today

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Wynwood Buildings More Than Quadruple In Value

A pair of warehouses converted to office space along the railroad tracks in Miami’s Wynwood Arts District sold for $18.75 million, more than quadrupling in value.

Wynwood Spaces LLC, managed by Martin Miculitzki of Block Capital Group in Miami, sold the buildings of 8,060 square feet at 100 N.E. 28th St. and 15,270 square feet at 85 N.E. 27th St., plus an adjoining parking lot, to WellMeaning Spaces LLC, managed by Eduardo Pelaez, CEO of Miami-based WellMeaning Investments, a family real estate office. W Financial REIT provided an $11.5 million mortgage to the buyer.

The buildings were constructed in 1971 and 1925, respectively. The site covers 33,320 square feet.

The buildings last traded for $4.6 million in 2014.

 

Source:  SFBJ

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Leasing Activity Heats Up At The Gateway at Wynwood

As Miami continues to experience a post-pandemic boom, The Gateway of Wynwood – the newest office building in the Wynwood area – announces tech start-up OpenStore’s expansion and the growth of its impressive roster of tenants with the addition of two new leases.

Aron Rosenberg, the developer behind The Gateway at Wynwood, has signed a lease with OpenStore for an approximately 26,000-square-foot expansion, bringing the company’s total footprint in the building to over 40,000 square feet. At the same time, The Gateway at Wynwood signed a new lease with Baseline, a vertically integrated platform investment company, for 5,000 square feet of office space. It also signed a lease with Mediterranean-Asian-Fusion Steakhouse concept DALIYAH and MIZU Rooftop Garden for approximately 6,000 square feet of ground-floor restaurant space plus the nearly 3,000-square-foot rooftop area.

The Gateway at Wynwood was represented by Colliers’ Executive Managing Director Stephen Rutchik, Managing Director Tom Farmer and Director Tyler de la Pena in the office lease transactions. CBRE’s Alex Cesar, First Vice President of Retail Advisory and Transaction Services, and Drew Schaul, Senior Vice President of Advisory and Transaction Services, represented The Gateway at Wynwood in the retail lease.

“Leasing activity has ramped up since the building’s opening, and we are excited to welcome these new tenants and see a current tenant expand so fast at The Gateway at Wynwood,” said Shelby Rosenberg, R&B Realty’s Head of Development and Acquisitions, Asset and Property Manager, US Portfolio. “Our building continues to remain a hub for new-to-market tenants, expansions and relocations to Wynwood, the ‘place-to-be’ for companies looking for a live-work-play environment. We are proud of the role we have played in the transformation of this community into one of Miami’s hottest neighborhoods.”

The Gateway at Wynwood, which opened in 2022 as the first tenant took occupancy in January, recently achieved LEED Gold Certification. The building implemented practical and measurable strategies and solutions in areas including sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. Green buildings allow companies to operate more sustainably and give the people inside them a healthier, more comfortable space to work.

OpenStore, the building’s first tenant to officially move in, is a platform that allows entrepreneurs with Shopify businesses to sell their companies and receive liquidity for what they’ve built. Founded by Keith Rabois of Founders Fund, Jack Abraham of Atomic, and Michael Rubenstein, the former President of AppNexus, OpenStore connects merchants and customers into a single unified shopping experience through access to data, information, and capital. The company announced in July that it raised $30 million in Series A funding, with a valuation of $250 million. OpenStore’s goal is to offer instant liquidity for eCommerce entrepreneurs.

Baseline is focused on developing and operating short and long-term single-family rentals. Baseline’s principals have delivered over 4,000 market-leading vacation rentals and 20,000 single-family homes with an aggregate value of over $7 billion. This will be the Orlando-based company’s first Miami office.

DALIYAH and MIZU Rooftop Garden’s concept was created by DZYNE Hospitality and OPSO Group, which are partnering with Canada’s A5 Hospitality. DZYNE Hospitality, led by Derrick Orosa, aka “DZYNE,” is working with OPSO Group, the company behind some of Miami’s trendiest restaurants, including Midtown’s MAÜ MIAMI and KAVO MIAMI, on the new concept. Founded by Alexandre Besnard and Patrick Hétu, A5 Hospitality has been a leading player in Montreal’s hospitality industry for 15 years. A5 has a varied yet targeted offering, ranging from high-end Japanese dining to large-scale entertainment projects, specializing in the development and operation of restaurants and bars. MIZU Rooftop Garden is set to open first, in time for Art Basel 2022, with the downstairs restaurant, opening by Summer of 2023.

The_Gateway_at_Wynwood_Rooftop

“Our Rooftop Garden has the most amazing views of the entire Miami Skyline, South Beach, Brickell, Downtown, Midtown, Design District and of course, Wynwood”, said DZYNE of DZYNE Hospitality. “Our high-end Mediterranean Japanese Steakhouse will be situated in between all the action of Wynwood, making it the ideal destination location, where you can have amazing Japanese cuisine with disco, retro and high energy music playing throughout the restaurant or take our private elevator directly to the Rooftop Garden and lay back for some specialty cocktails, bottle service, Japanese Krudos, fresh sushi and cold Japanese dishes, as well as Wagyu and Kobe BBQ.”  

The Gateway at Wynwood offers about 195,000 square feet of leasable Class A office space and nearly 25,900 square feet of prime street-level retail space. Designed by renowned architect Kobi Karp, the environmentally responsible building features flexible floorplans, a private rooftop terrace, gym, unique bay window system, 24/7 on-site security, vibrant exterior cladding, and 2:1,000 on-site covered parking. The Gateway at Wynwood announced the building’s first office lease with biotech company Veru Inc in the summer of 2021. The eight-year, 12,155-square-foot lease will serve as the company’s global headquarters and triple Veru’s current office space.

 

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RFR Buys Third Building On Miami Block For $451 PSF

The 99-year-old Bayside Office Center in downtown Miami sold for $25 million, apparently as part of RFR Holdings’ move to acquire most of a full block in downtown Miami.

Bayside Office Center LLC sold the 44,431-square-foot office building at 141 N.E. Third Ave. The buyer was 141 NE Third LLC, which state records show is affiliated with New York-based RFR Holdings. The price equated to $451 a square foot.

The same family group has owned this building since 1978, when it traded for $580,000.

Rising 12 stories, the building was constructed on the 5,297-square-foot site in 1923 and renovated in 1986.

RFR appears to be positioning itself for a major real estate investment in a prime site opposite Bayfront Park.

 

Source:  SFBJ

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