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Allapattah’s ‘Authentic Bario’ Feel Makes Way For Increased Development

When she came from Boston in the late 90s to study at the University of Miami, Mileyka Burgos-Flores quickly got homesick. She missed the food and flavor of her Dominican family and she was desperate for a Dominican hair salon. The cafeteria workers she’d befriended at school had the answer: we’ll take you to el barrio, they told her.

That’s how Burgos-Flores, executive director of the Allapattah Collaborative, got to know the neighborhood built up by Black Miamians and immigrants from the Caribbean and Central America. She soon picked up on Allapattah’s distinctive features. The breezy porches where neighbors actually talked to each other across the fence. The cosmopolitan bodegas and the street vendors residents knew by name. And of course, local watering holes like Club Típico Domínicano, the 1980s restaurant that shimmies into a nightclub with live music on the weekends.

“It’s a very warm and welcoming neighborhood,” said Burgos-Flores, whose work entails preserving the neighborhood and helping its small businesses thrive. “People don’t just go into local businesses to get their hair done, or to eat or to do their taxes. They go to hang out; they know each other and they keep an eye out for each other.”

That kind of pride among local residents is what drew art collector Mera Rubell to the area in 2019. Along with her husband Don and son Jason, the family converted a warehouse complex that previously housed a wholesaler of rice, beans and other food items into the Rubell Museum, previously located in Wynwood. The site sits cradled by the metroline and railroad tracks.

“This was a new frontier,” Rubell said. “Our dream was to create a kind of concentrated destination for culture. What’s nice is we’re not displacing anybody. These were old buildings that can no longer accommodate the heavy warehouse use it needs.”

The museum is just one of a collection of art spaces in the area, which runs from State Road 112 south to the Miami River and west from Interstate 95 to Northwest 27th Avenue. Jorge Pérez’s El Espacio 23 has also called industrial Allapattah home for the last two years. The newest addition to the art scene, Superblue, across the street from the Rubell, turned a warehouse into an immersive art space in May. The private museums are neighbors with a massive wholesale grocer; across the street, an open-air fruit market sells tropical fruit juices, coconut water and varieties of mangoes and bananas that swing from an awning.

Other recent additions have drawn people to the neighborhood through their bellies. Even on a weekday at lunch it can be hard to snag a parking spot at Hometown Barbecue, a New York transplant whose Brooklyn location is considered one of the country’s best barbecue spots.

It’s all quickly snowballing to turn Allapattah into Miami’s newest “it” spot. Burgos-Flores’ friends in the neighborhood share sightings of limousines ferrying partygoers to underground nightlife in the area. The charm that caught her eye two decades ago is still present; Allapattah remains a place where the word “authentic” still rings true. But there’s no denying things are changing.

New rentals are popping up and just as quickly evaporating due to demand from those who want to be close to the Miami Health District.

The latest is 14-story No. 17 Residences, on Northwest 17th Avenue. Renters — primarily medical and graduate students and health district employees quickly snapped up apartments, according to Lisette Calderon, CEO of developer Neology Life Development Group. Apartments start at $1,300 per month for a one-bedroom, one-bathroom layout.

“What I see that is exciting is the neighborhood being reimagined,” Calderon said.

Housing-wise, four other projects are in the pipeline.

The highest profile project on the books is a collection of eight buildings — many rising on stilts — designed by Danish star architect Bjarke Ingles for developer Robert Wennett. The project, at Northwest 12th Avenue, called Miami Produce Centerwill include residential units, hotel, office, retail space and a trade school on nine acres formerly home to a produce market. Permits have not yet been drawn, and the timetable is not yet set, said Javier Aviñó, Wennett’s representative for the project and Bilzin Sumberg partner.

Already underway is a senior affordable housing community at 1396 NW 36th St. The 13-story Mosaico should open by January 2022, said Jake Morrow, a principal at developer Interurban.

Along with No. 17 Residences, Neology is planning another 14-story rental nearby at 1625 NW 20th St., dubbed Allapattah 16.

Also in permitting is a third 14-story rental building, Allapattah 14, at 1470 NW 36th St.

For Burgos-Flores, whose work entails helping local mom and pops thrive, taking the foot off the accelerator just a bit seems wise.

“We love all this development that could potentially happen in the area, but we want it to be inclusive and equitable,” she said.

Small businesses she helps in the neighborhood are frequently priced out by rising rents, she said. The average resident is unlikely to be able to afford the luxury units coming up in the area. The median household income in the 33127 zip code is $34,510, according to the county demographic data from this year. Around 31% of the residents live below the poverty line. Displacing a community of people – many of whom first arrived via displacement after refugee crises in their home countries – would shred the neighborhood’s identity, Burgos-Flores said.

“People who live here want to stay,” she said. “And if they go, they want to go because they want to, not because they’re pushed out. They want to have the opportunity to stay and the opportunity to own here.”

 

Source:  Miami Herald

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Foreclosure On Wynwood Building Resolved With $9.5 Million Deal

A foreclosure lawsuit over a commercial property in Miami’s Wynwood neighborhood has been resolved after a partial sale of the property and a new mortgage.

Elizon DB Transfer Agent LLC filed a foreclosure complaint in October 2020 against 2900 NW 1st Ave BSD LLC and loan guarantor Baruch Singer over an $8 million mortgage. The loan allegedly matured on Sept. 1, 2020, without being repaid.

The borrower owns the 14,442-square-foot commercial building at 2900 N.W. First Ave., apartment buildings of 2,053 and 1,642 square feet at 120 and 112 N.W. 30th St., along with the 28,309 square feet of land they are built on.

Recently, 2900 NW 1st Ave BSD LLC sold a 51% interest in the property for $9.5 million to Big Fan LLC, managed by Douglas Levine in Miami Beach, according to county records. JPMorgan Chase Bank then provided an $11.5 million mortgage on the property, with both owners listed as borrowers.

Elizon DB Transfer Agent withdrew the foreclosure lawsuit and filed notice with the county that the $8 million mortgage was fully repaid.

 

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First Mixed-Use Class A Office Space To Break Ground In Miami Beach

The first purpose-built Class A office space will rise in the Sunset Harbour district of Miami Beach after a mixed-use project won approval from the city commission last week.

With an influx of business and wealth migration to South Florida, many are looking at Miami Beach as a place to relocate.

Eighteen Sunset will span more than 60,000 square feet and offer luxury residential, retail and residential accommodations in one building. The five-story building will have two floors of Class-A office space, a residential penthouse with a rooftop, 32,000 square feet of indoor and outdoor space with a deck overlooking Biscayne Bay, and street-level retail and restaurant space.

“We haven’t even begun marketing this and yet we’ve had a lot of interest and demand from various folks for all aspects of the project. I think we’re hitting it just at the right time,” said  Brad Colmer of Deco Capital Group, the development firm behind Eighteen Sunset.

The third and fourth floors will be 32,000 square feet of office space for finance and investment firms, family offices, technology firms, and professionals seeking waterfront views. Deco Capital Group has enlisted a best-in-class team to represent Eighteen Sunset, with Stephen Rutchik of Colliers International leasing the building’s office space, and Sara Wolfe of Koniver Stern marketing the retail offerings.

The penthouse has 15,000 square feet of indoor space and sits one floor above the office space, where an executive can live and work under the same roof. The rooftop deck will have a pool, hot tub and outdoor dining area. The penthouse owner will also have a private garage that has room for at least six cars on the building’s second floor and direct elevator access.

“The Penthouse at Eighteen Sunset will be the pinnacle of luxury and exclusivity in Miami Beach, making it unlike any private residence the city has seen,” said Oren Alexander of Douglas Elliman, which is selling the penthouse. “This is perfect for a buyer drawn to the idea of taking an elevator down to the ground floor and being immersed in a vibrant, walkable neighborhood that offers everything from sidewalk cafes and coffee shops to trendy boutiques and a marina across the street. All of this is available in a building offering beautiful views and the amenities and security features of a world-class building.”

Eighteen Sunset, located between Purdy Ave. and Bay Road, will overlook Biscayne Bay and Maurice Gibb Park, close to dining and retail destinations. The project is the newest development by Deco Capital Group, a Miami-based real estate development and investment firm.

“We have a covered breezeway as well as covered sidewalk space,” Colmer said. “I can’t think of many other buildings in South Florida that are going to have the amount of covered outdoor space that we have and the indoor and outdoor connectivity for ground-level activation. I think that offers a lot of exciting opportunities.”

Colmer says construction is expected to start around September and is scheduled to be completed in 2023.

 

Source:  GlobeSt.

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Force Majeure Ruling in Miami Retail Suit Could Change How Contracts Are Written

In what attorneys say is the first ruling of its kind in Miami-Dade County, a popular retail store on Lincoln Road in Miami Beach is required to pay rent despite hardships caused by the COVID-19 pandemic.

A force majeure clause is common in leases and can sometimes allow a party to not fulfill their contract when there is a circumstance beyond their control or an “act of God.”

Guess? Retail Inc., the clothing store, alleged that the COVID-19 pandemic left it unable to pay its rent. The retailer refused to pay after it had to close its operations around March of last year — something Guess said was done to protect the health and safety of customers and employees, and comply with government safety guidelines.

“This seems to be a case of the first impression in South Florida that will likely be relied upon by other jurists as litigation regarding force majeure provisions move through the court system,” said Bruce Weil of Boies Schiller Flexner, one of the attorneys who represented the landlord, The Denison Corp. 

Weil argued there wasn’t anything unique about the clause, and that its provisions are pretty standard.

The lease states that the term force majeure encompasses, “acts of God, labor disputes (whether lawful or not), material or labor shortages, restrictions by any governmental authority, civil riots, floods, or other cause beyond the control of the party asserting the existence of force majeure.”

It also said, “Notwithstanding anything to the contrary in this lease, tenant shall not be excused from payment of base rent, operating costs, or any other sum due under this lease by reason of force majeure.” 

Miami-Dade Circuit Judge Peter R. Lopez found that The Denison Corp.’s lease had an unambiguous force majeure clause and ruled Guess must pay no matter what — even during a pandemic.

The ruling is a win for landlords who still need that income to pay their expenses and continue operation. Weil said he hopes that landlords and tenants will be able to sit down and work together to avoid lawsuits since the pandemic has caused hardships for everyone.

Weil and his associate Laselve Harrison worked together in the case and believe the lawsuit will change the way all contracts are written in the future to make sure that pandemics are specifically named as an example of a force majeure incident.

“Force majeure clauses are certainly going to be scrutinized going forward because of the pandemic, with both landlords and tenants seeking clarity about what circumstances excuse performance under a lease,” said Weil. 

Mark Steiner of Liebler, Gonzalez & Portuondo represented Guess and did not immediately respond to a request for comment.

 

Source:  GlobeSt.

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Prime Development Site In Downtown Miami Hits The Market

As downtown Miami continues to evolve, one of the area’s most strategically located development sites has hit the market. The 37,857-square-foot parcel, currently occupied by a three-story building, is across the street from MiamiCentral’s main entrance.

MiamiCentral is home to the MetroRail, MetroMover, Tri-Rail, MetroBus, the Trolley system and Brightline, a commuter train that connects Miami to Fort Lauderdale, West Palm Beach and soon Orlando. Colliers’ Urban Core Division brokers Mika Mattingly, Executive Managing Director, and Cecilia Estevez, Associate, are marketing the property, located at 49 NW 5th Street. The site, which doesn’t have an asking price, could sell for over $40 million.

“This opportunity is unmatchable,” said Mattingly, who leads Colliers’ Urban Core division. “The buyer could build up to 400,000 square feet and 435 residential units just steps away from a mass-transit hub. Brightline projects 12 million visitors annually will ride the train, giving this property great exposure and a competitive advantage over other residential developments. The developer would be exempt from having to build residential parking spaces due to its proximity to public transit.”

The T6-80 zoning of the property would permit several uses, including residential, hotel, office and retail. The maximum height permitted at the site is 80 stories with unlimited height available through public benefit bonuses.

The development site is home to a building of historic value that could be demolished or designated as a historical landmark to be included on the National Historic Registry. Under such designation, the Citadel building, as it is called, would be protected, and the developer would be able to allocate the air rights to the northern parking lot.

The Citadel was built in 1925 to house the Salvation Army in response to a growing demand for religious and humanitarian services during the land boom of the 1920s. Although only a portion of this historic building survives as the entry portico to an office complex, the existing architectural details reveal the rare Venetian Gothic subtype of the Gothic Revival style, according to the City of Miami.

Today, Citadel is home to CenturyLink, a telecommunications company with over two years remaining on the existing lease. The building is currently producing significant revenue.

“This property is ideal for an efficient and cost-effective redevelopment with the ability to receive supplemental cash flow throughout the planning and approval process,” Estevez said.

The site is located blocks away from the Perez Art Museum, the Frost Museum of Science, Biscayne Bay, Miami Worldcenter, Miami Dade College and several residential and office buildings.

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Investors Team Up With Pastry Chef And Chocolatier For Planned Wynwood Market

A new high-end market with a restaurant, bean-to-bar chocolate station, patisserie and cocktail bar is coming to Wynwood.

Ananda Market, led by partners Antonio Ortega and Piero Pini, signed a 10-year lease for nearly 12,500 square feet at 310 Northwest 25th Street.

Forte Capital Management, led by Chaim Cahane and Dov Tepper, and Jon Krasner’s 7G Realty recently paid $11.8 million for the retail property at 310-318 Northwest 25th Street. They acquired it from East End Capital. Existing tenants include Barcelona Wine Bar and Grace Loves Lace, an Australian wedding dress store.

The market and restaurant will be led by chocolatier and pastry chef Jorge Kauam, Ortega said. Construction is slated to begin in about six to seven months, and the concept could open in about 10 months. Ananda will sell pastries, elaborate chocolates, breads, cocktails, and organic and sustainable food products. At night it will also function as an event space.

 

Source:  The Real Deal

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Miami Beach To Prohibit Hotels In Sunset Harbour?

New proposed zoning regulations for Miami Beach’s Sunset Harbour neighborhood would encourage office development, but shun future hotels, putting a new project by Ronny Finvarb in a perilous position.

The Miami Beach Planning Board on Tuesday recommended the city commission approve the new overlay district for Sunset Harbour, along with an amendment that would allow hotel and residential projects that submitted design review board applications before April 27 to move forward. However, city commissioners could decide to remove the amendment when the proposed regulations come up for first reading on May 12.

The overlay district would only allow primarily office buildings up to 65 feet tall in Sunset Harbour. The legislation provides for retail and restaurant uses in ground-floor spaces and some residential units, as long as a majority of a building is office use.

Directors of the Sunset Harbour Neighborhood Association, which helped craft the language for the new regulations with commissioner Ricky Arriola, spoke against Finvarb’s project, a 36-room boutique hotel that would be built at 1790 Alton Road. His affiliate Sobe 18 LLC recently paid $4 million for the 10,200-square-foot property and has an agreement with Kimpton to also manage the new hotel.

Geoffrey Aronson, an association director, said that even though Finvarb is only proposing 36 rooms, the units are large enough to accommodate up to eight guests, and that it would attract tourists looking to split the cost of hotel stays. He also noted that the association voted 9-1 to oppose the hotel project.

“That is about 230 or so potential guests at any one period of time,” Aronson said. “I would suggest to you that the location of the hotel is not necessarily attractive to Class A tourists. There are going to be five hotels surrounding our area.”

Mike Ruben, another association director, said the group would consider dropping its opposition if Finvarb agreed to reduce room occupancy from eight to six people, which the developer said he would.

“Our concern is that there has been a degradation of tourism in Miami Beach, and we feel higher occupancy rooms invite that type of tourist,” Ruben said. “We would have to meet as a board and then meet with Mr. Finvarb.”

Finvarb, who has developed four other hotels in South Beach, told the planning board that the new hotel he is proposing is not out of scale for Sunset Harbour and that he is not seeking any height increases or variances.

“I took a risk making an investment during the pandemic,” Finvarb said. “Now there is some discussion about taking away our property rights and penalizing us.”

Finvarb did not respond to a request for comment on Wednesday.

Mickey Marrero, the attorney for Sobe 18, said Finvarb, prior to closing on the development site, met with Miami Beach Planning Director Tom Mooney to confirm a hotel would be permitted on the property.

Marrero said Finvarb executed the purchase agreement with a nonrefundable deposit a week before the Feb. 10 city commission meeting, when commissioner Arriola initially floated his proposal to limit commercial development in Sunset Harbour.

A Miami-Dade County deed shows Finvarb closed on the site on April 6.

Marrero claimed Finvarb was blindsided by the proposed restrictions. “At no point in our discussions [with Mooney] did the possibility of prohibiting hotels come about,” Marrero said. “Our client did everything a property owner should do in good faith.”

When 1790 Alton Road was listed for sale, marketing materials said the property was approved for a five-story commercial/retail building with 30 parking spaces and a roughly 8,000-square-foot ground-floor commercial space.

Finvarb also owns the Kimpton Hotel Palomar South Beach at 1750 Alton Road. His portfolio also includes the Residence Inn by Marriott South Beach, Thompson South Beach, and Courtyard by Marriott South Beach.

 

Source:  The Real Deal

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Miami Is A Hotspot For Retail Development

Miami is one of the top markets in the country for retail development, according to a report from Marcus & Millichap. The firm’s second quarter 2021 outlook report forecasts nearly 1.5 million square feet of retail space will deliver into the market this year, the highest level since 2017.

Mall redevelopment and mixed-use projects are driving the development activity, and much of it wrapped up in three projects. One of the largest projects in the market is the Miami Worldcenter, a mixed-use development with residential hospitality and 300,000 square feet of retail space. In Miami Beach, Bal Harbour Shops is adding 350,000 square feet, which is scheduled for completion in 2023. Finally, the Aventura Mall is in the middle of a 215,000-square-foot expansion, which is expected to hit the market later this year.

Last year, the pandemic hampered retail development. According to the report, retail deliveries were half of what they were for the previous five-year average and the lowest level in a calendar year in more than a decade. Still, retail projects continued to come to market. Miami Beach added nearly 100,000 square feet of space, and South Dade added more than 71,000 square feet of space. This year, developers will make up for the lost time, delivering 1 million square feet more year-over-year.

Developers are clearly bullish on the Miami retail sector, but the market has certainly seen an impact from the pandemic. This year, the report expects vacancy rate to climb 80 basis points to 5.2%, the highest rate since 2010. The slowed leasing activity along with increased retail development will also drag asking rents down 1.3% this year to $31.83 per square foot. In 2020, the vacancy rate was unchanged, and asking rents fell 3.1%.

Miami’s downtown area is experiencing a renaissance that his helping to fuel development activity and growth. The market is attracting out-of-state investment. Earlier this year, New York-based developer Time Century Holdings entered the Miami market to transform the Metro Mall into a luxury jewelry center. The developer secured a $23.6 million construction loan for the $50 million project through City National Bank of Florida.

 

Source:  GlobeSt.

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Boardwalk Properties Sells Off South Beach Multifamily Portfolio For $96.5 Million

Cushman & Wakefield has arranged the sale of a portfolio of 452 apartment units and a 2,669 square foot office building located in Miami’s South Beach and Bay Harbor Island.

The final sale price was $96.5 million.

Calum Weaver, Robert Given, Zach Sackley, and Troy Ballard of Cushman & Wakefield represented the seller, Boardwalk Properties, in the transaction. Sentinel Corp., an independently owned real estate investment management firm which currently has $7.4 billion of institutional quality real estate assets under management on behalf of 105 domestic and international clients, acquired the property.

“Given the uniqueness of the portfolio, the largest number of apartment units ever sold in South Beach, there was an unprecedented amount of investment interest in the properties,” Weaver said. “Out-of-state and foreign capital were extremely bullish on the generational opportunity to acquire a significant number of units in South Beach.”

The apartment units are within walking distance to South Beach’s attractions, including Lincoln Road, Ocean Drive, Collins and Washington Avenue. Over the past four years, Boardwalk Properties has invested $7 million to improve the properties, including gut renovating 61 units at 1600-1606 West Avenue and 1567 Meridian. The remaining 261 units have the potential to increase income with value-add improvements focused on interior upgrades.

The properties are located at:

  • 705 Lenox
  • 710 Meridian
  • 715 Michigan
  • 760-762 Lenox
  • 844-860 Euclid
  • 850 15th St.
  • 1135 8th St. 1600 West Ave.
  • 1606 West Ave.
  • 825 Alton
  • 948-952 Meridian
  • 951 Jefferson
  • 1017 Jefferson
  • 1025 Meridian
  • 1567 Meridian
  • 1110 Penn
  • 1226 Drexel
  • 1251 Euclid
  • 1326 Penn
  • 1336 Penn
  • 1348 Drexel
  • 1440 Euclid
  • 1455 Euclid
  • 700 Euclid
  • a two-story 2,669-square-foot office building located at 1211 Alton Rd.
  • 9200 E Bay Harbor Dr.
  • 9270 E Bay Harbor Dr.
  • 10150-10190 E Bay Harbor Dr.
  • and 1075 101 St. in Bay Harbor Island

 

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Lissette Calderon Delivers First Multifamily Project In Allapattah

Developer Lissette Calderon has completed the first of her three apartment projects in Miami’s Allapattah neighborhood.

Nearly two and a half years after buying the land, Calderon’s Neology Life Development Group received a temporary certificate of occupancy for the 192-unit No. 17 Residences, a 13-story building at 1569 Northwest 17th Avenue.

Calderon said it’s “the perfect time” to build in Allapattah, which she said is Miami’s “last authentic urban core neighborhood.” The area has attracted major real estate players, including the Related Group’s Jorge Pérez and 1111 Lincoln Road developer Robert Wennett.

Pre-leasing, including virtual tours, launched earlier this year. Calderon said monthly rents start at about $1,200 for a studio apartment. The building offers “attainable luxury” that was lacking in Allapattah, she added. Studios start at 740 square feet, and one-bedroom apartments start at 600 square feet. Units go up to 1,125 square feet for a three-bedroom, according to the development’s website.

The building is west of the Miami Health District and northeast of her Pier 19 Residences & Marina apartment building on the Miami River. It’s south of the Rubell Museum and the popular Hometown Barbecue restaurant.

Amenities include an 8,000-square-foot park for residents, which was added during the pandemic due to increased demand for outdoor space, a pool deck with cabanas, rooftop garden, fitness center, co-working spaces, and package rooms.

Calderon said she plans to break ground on her next two projects, 16 Allapattah and 14 Allapattah, this summer, and deliver those buildings about 16 months from groundbreaking. 16 Allapattah is planned as a 323-unit rental building with 9,000 square feet of office space and ground-floor retail, and 14 Allapattah, a two-tower project on an Opportunity Zone site, is expected to have 237 apartments and ground-floor retail.

Wennett, who tapped Bjarke Ingels to design his major mixed-use development nearby, secured approval from the Miami City Commission about two years ago for his Miami Produce Center special area plan. The planned 1.4 million-square-foot development could have as many as 2,400 co-living units and 637 traditional residential units, nearly 231,000 square feet of office space, 129,000 square feet of retail space, about 22,000 square feet for “educational uses,” as well as more than 1,000 parking spaces.

Calderon said she has been welcomed by the community in Allapattah, and that she is not displacing residents.

“I go into neighborhoods where I’m wanted,” she said, noting that her firm purchased existing warehouses and shuttered buildings.

 

 

Source:  The Real Deal

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