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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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8-Story Building Proposed In Allapattah

A developer has proposed an 8-story self-storage facility in the Allapattah neighborhood of Miami.

The city’s Urban Development Review Board on Wednesday will consider plans for the 16,706-square-foot site at 760 N.W. 21st St. Mlab International LLC, managed by Ricardo Ordonez and Luis Farjardo in Miami, purchased the property for $875,000 in 2020. It previously had an automotive business.

Farardo said he is the developer and will handle construction, while Ordonez is his partner. He said Public Storage will manage the facility.

The building would total 103,819 square feet, with 2,138 square feet of ground-floor retail and the rest of the space for self-storage. There would be 12 parking spaces.

Blitstein Design Architects in Coral Gables designed the project. Marin Mitrasinovic of Canada was hired to create a mural on two sides of the building.

The occupancy of self-storage facilities in the area is 98% and rental rates continue increasing, Farardo said.

“As more and more multifamily projects are delivered in Wynwood and Allapattah, demand grows,” he said. “Additionally, many residential units delivered are smaller in size, including several micro units.”

Many experts say Florida is among the top markets in the nation for self-storage.

According to RentCafe, there was 4 million square feet of self-storage space set to come online in South Florida in 2022, a 30% increase over deliveries in 2021. That compares to 40 million square feet of existing self-storage space. Rents have surged 17% over the past 12 months with an average cost of $168 for a 10-by-10-foot unit.

South Florida has the fifth-most self-storage construction in the nation.

 

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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300-Unit Apartment Complex Proposed In Miami’s Wynwood

New York-based Fisher Brothers Management has proposed an apartment building with ground-floor retail in Miami’s Wynwood Arts District.

The city’s Urban Development Review Board on July 20 will consider plans for the 1.39-acre site at 2200 and 2250 N.W. First Ave., plus 2201 and 2229 N.W. First Court. It’s the former home of the Miami Rescue Mission.

FBWS Development Senior LLC, an affiliate of Fisher Brothers, purchased the property for $18.6 million in 2021.

The FB Wynwood building would total 359,694 square feet in eight stories, with 308 apartments, 21,724 square feet of retail and 122 parking spaces. The developer would pay $2.2 million to the Wynwood Parking Trust Fund, which promotes parking development in the neighborhood, to reduce the parking requirements at the project.

Source:  SFBJ

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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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Recently Built Condo In Miami’s Wynwood Hit With Foreclosure Lawsuit

The recently completed Wynwood Atriums condominium in Miami could be seized in a $4.7 million foreclosure lawsuit.

Triumph Capital Partners LLC filed a foreclosure complaint June 28 against 136 NW 26 St Project LLC, along with loan guarantors Hernando Anthony Carrillo and Sherry Johnson Carrillo. It targets the 32 residential condos and the two ground-level commercial condos at 136 N.W. 26th St.

The five-story building was completed a few weeks ago. None of its units have sold, according to county records.

All of the residential and commercial units in the building had been presold, and none of the buyers have sought to back out of their contracts, said Coral Gables-based attorney Bruce M. Bounds, who represents the condo developer.

Construction was delayed by the Covid-19 pandemic. A shortage of construction workers and supply chain challenges delayed the arrival of crucial building materials for months, but the condo is now functionally complete, he said.

The developer secured a $5.5 million mortgage in 2019. According to the lawsuit, the borrower defaulted on the loan by failing to make payments from Feb. 28 onward, and owes $4.7 million in principal, plus interest and fees.

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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Housing Trust Group Plans Apartments Near Aventura

Housing Trust Group filed plans for an affordable/workforce housing complex near Aventura.

The Miami-based developer, through affiliate TH Aventura LLC, filed a pre-application with county officials for the Oasis at Aventura. It would rise on the 1.26-acre site at 18700 and 18790 N.E. 25th Ave., in the Ojus neighborhood.

The property is mostly vacant, except for one single-family home.

Totaling 104,344 square feet, the eight-story Oasis at Aventura would have 95 apartments and 65 parking spaces. Amenities would include a gym, a club room and an outdoor terrace.

HTG said the Oasis at Aventura would have 42 units for people earning up to 70% of area median income, 38 units for people earning up to 60% of area median income, and 15 unit for people earning up to 30% of area median income. The Florida Housing Finance Corp. has already awarded funds for the project.

 

Source:  SFBJ

 

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