Rilea Group announced the closing of a 1.5 acre development site in Wynwood for $22 million as the location for their upcoming mixed-use rental community known as MOHAWK at Wynwood.
Gridline Properties’ brokers Alfredo Riascos and Yonatan Missika represented Rilea Group in the off market transaction located at 56 NE 29th Street. This is the development firm’s first venture in Wynwood and the first in the neighborhood to be largely funded by crowdfunding. Earlier this year, Rilea Group tapped the Los Angeles based crowdfunding platform, RealtyMogul to raise an initial $10 million through their robust network of investors. Rilea Group’s goal was surpassed, raising an estimated $12.5 million in record time.
The seller is 29th Street Warehouse LLC, managed by Lombardi Properties.
“In recent years, we had been approached many times by different developers to sell this significant site. We never really felt comfortable until we met the Ojedas, said David Lombardi,” Principal and Broker of Lombardi Properties. “We are confident they will execute an incredible project worthy of this site,” continued Lombardi.
Located at the crossroads of Miami’s trendy and burgeoning Wynwood and Midtown neighborhoods, the site was presented by Gridline Properties as the ideal location for Rilea Group’s first development in Wynwood. Future residents will be walking distance from neighborhood destinations such as Wynwood Walls, The Shops at Midtown Miami and a short five-minute drive to the Miami Design District and I-95. The site is also one block away to the north from the proposed Trader Joe’s Midtown location and a block away to the south of the potential Wynwood Brightline Station. The project comes at a time of a continued mass migration of California and New York residents to Miami, causing a surge in demand for housing. Gridline Properties sourced the site in the Fall of 2020 – meaning this transaction was negotiated during the height of the pandemic and put under contract early this year. Amidst the uncertainty brought on by COVID-19, Rilea Group was able to see beyond the chaos and seized a unique opportunity while taking advantage of less competition caused by the pandemic.
“We were thrilled to find the ideal location for MOHAWK at Wynwood and are excited to see this uniquely-designed development come to fruition,” says Riascos, Principal and Broker of Gridline Properties. “This transaction continues to prove that Wynwood is one of the most resilient neighborhoods in Miami and is a clear indicator that the trendy neighborhood has emerged much stronger post pandemic,” he continued.
“MOHAWK at Wynwood was created to meet the demand of this new wave of Miami residents and was entirely conceptualized based on the needs of consumers living in a post COVID-19 world,” says Diego Ojeda, President of Rilea Group.
The 12-story, 225-unit, multi-family apartment building will consist of 215,430 square feet of leasable property which will include 22,000 square feet of prime ground floor retail and 3,500 square feet of private, for-rent offices for the work-from-home crowd, sitting on a total 65,700 square feet (1.5 acres). The community will provide tenants with a state-of-the-art gym with peloton bikes, a private park and dog park, kid’s playroom, rooftop pool and bar, resident’s lounge as well as exquisite art and murals adorning the building.
“These newcomers are seeking design-forward living spaces that fit the needs of their current lifestyles. With the incorporation of unique amenities that cater to those needs and an exquisitely designed space, MOHAWK will provide residents with a turn-key home in this new age,” Ojeda continued.
Designed by Javier Barrera of Miami-based Deforma Studio, the building’s architecture will draw inspiration from the industrial feel of New York’s SoHo and Meatpacking districts with an added Miami flair – combining exposed brick, steel and concrete with various murals on the building’s façade in true Wynwood fashion. Stylish interiors will feature original artwork from artists such as Jean Michel Basquiat and Marco Grassi as well as fine photography encapsulating the developer’s vision.
“MOHAWK at Wynwood is a next generation residential community inspired by the strength of sophisticated architecture and the boldness of a creative culture that chooses to live on the edge. MOHAWK is the pinnacle of cool,” says Ojeda.
Rilea Group has a 40-year track record of successful developments in South Florida such as JP Morgan Tower – 1450 Brickell, One Broadway and the Sabadell Financial Center among many others. Most recently, the firm completed The Bond, a residential project in Brickell that became 100 percent sold-out during construction.
RealtyMogul has a community of over 200,000 individual investors across a $3.1 billion portfolio that includes over 17,000 multi-family units, making them the ideal crowdfunding partner for Rilea Group.
“The MOHAWK project had an incredibly strong reception with our investor base. In fact, we twice increased the amount of capital to be raised on the platform – as investors had been attracted to MOHAWK based on the strength of sponsorship, the growth and strength of the Miami market and the potential returns based off an investor-friendly waterfall,” said Jilliene Helman, CEO and Founder of RealtyMogul.
Next year, investors will have another opportunity to invest in this project for the construction phase, for which Rilea Group will need to carry out additional fundraising. Rilea group has agreed to allow RealtyMogul the opportunity to source an additional $10 million.
Construction of MOHAWK at Wynwood is expected to begin in 2023.