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Hidrock And Robert Finvarb Use Live Local Act To Propose 39-Story Rental In Wynwood

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Another set of developers are shooting their shot to build tall in Miami’s Wynwood neighborhood, using the Live Local Act, a Florida law that grants developers density hikes in return for designating a portion of apartments as workforce housing.

Hidrock Properties and Robert Finvarb Companies together filed plans to build a 39-story building with 336 rental units at 2534 North Miami Avenue, between Northeast 25th and 26th streets. In 2021, New York-based Hidrock Properties purchased the half-acre site for $13 million, according to property records.

In accordance with state law that was passed in 2023, 40 percent of residences will be affordable for people earning no more than 120 percent of the area’s median income. Developers can build up to the height of any building within a one-mile radius if the affordability requirement is met.

According to the proposal, the Arquitectonica-designed project is 21 stories shorter than the maximum height. The 436,934-square-foot development would also house 7,781 square feet of commercial space and 326 parking spots.

The Wynwood Design Review Committee will hear the application July 16. The lawyer representing the joint venture, Brian A. Dombrowski of Greenberg Traurig, did not immediately respond to a request for comment.

 

Source:  Commercial Observer

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The End Of Wynwood? Massive Projects Would Remake Miami’s Hippest Neighborhood

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Miami’s Wynwood may be the hottest, hippest neighborhood in America’s hottest city: A dynamic urban fusion of repurposed industrial buildings and warehouses interspersed with new, low-rise buildings housing shops, bars and restaurants, offices and apartments, all of it steeped in artful design and curated graffiti murals.

Its success is no accident. The reinvigorated Wynwood, once a derelict industrial zone, is the deliberate result of unique planning guidelines and development limits painstakingly laid out a decade ago by district property owners and city of Miami planners. The special Wynwood regulations are backed by a distinct vision — for a dense yet human-scaled alternative to the new high-rise forests of Brickell and Edgewater.

But just as they begin to bear fruit, the carefully laid plans for Wynwood are threatened by a controversial new state law, the Live Local Act, which overrides local building controls and encourages developers to supersize projects in exchange for setting aside apartments as ostensibly affordable housing. Critics say Live Local is a giveaway to developers and the promised affordable housing is anything but that.

In Wynwood, Live Local looms in the form of a developer’s plan for a 48-story tower — 36 stories taller than the highest building now allowed in the district — atop a massive parking garage that by itself is larger than much of the new construction in the neighborhood. The Wynwood Neighborhood Revitalization District rules, by contrast, have restricted new buildings to 12 stories.

The tower plan, by Bazbaz Development, calls for 544 apartments and even more cars and parking, or 621 spots, at North Miami Avenue and Northwest 21st Street. That would effectively bring a downtown Miami density to narrow Wynwood streets already nearly overwhelmed with traffic and infrastructure that has barely kept up with the current wave of redevelopment.

And the tower project is only the first to surface publicly in Wynwood. City planning officials say five other Wynwood applications have been submitted this year. Records provided to the Miami Herald by the city for three of the proposals call for:

  • A 39-story tower with 336 apartments located four blocks north of the Bazbaz project, also on North Miami Avenue, by an affiliate of New York’s Hidrock Properties.
  • A 19-story high-rise with 401 apartments located one block west of the Bazbaz site. As part of the project, Miami Court Holdings would preserve and protect an adjacent, two-story Art Deco building as part of the project.
  • A 25-story building complex — with 996 apartments and 693 parking spaces located along Northwest Sixth Avenue between 24th Street and 26th Street on the western edge of Wynwood along Interstate 95 — is proposed by property owner David Sedaghati’s Ultimate Equity.

Local stakeholders expect more. They fear Live Local projects will turn the carefully nurtured district into another version of Edgewater, the nearby, rapidly changing, bayfront neighborhood that now consists mostly of towers rising from bulky, street-filling parking pedestals.

“If those controls are now overridden by Tallahassee, which has no idea what Wynwood or any neighborhood is, that’s kind of crazy,” said Juan Mullerat, a Miami planner whose firm, PlusUrbia, wrote the award-winning Wynwood plan, which was adopted as law by Miami city commissioners in 2015. “And it’s a little scary. Come Live Local, and you can just go nuts.”

QUESTIONABLE AFFORDABILITY

As to the promised affordable housing in the Bazbaz tower? Though the specifics haven’t been decided yet, it’s likely to be around 217 apartments, mostly studios, aimed at people making up to 120% of the median household income in Miami-Dade County — the level set by the state’s Live Local legislation. In 2024, under published calculations by the state, that means people making up to $95,400 a year can be charged up to $2,385 per month in rent for a studio. Rent for a one-bedroom would be capped at $2,554.

Live Local — a priority of Florida Senate President Kathleen Passidomo, a Republican from Southwest Florida, and credited to Sen. Alexis Calatayud, a Republican from Miami-Dade County — was billed as the answer to the state’s housing crisis when it was passed in 2023.

It unilaterally lifts zoning restrictions across the state for developers of mixed-use projects that set aside 40% of residential units as workforce housing for 30 years. Housing advocates say local zoning restrictions have often blocked development of affordable dwellings.

It also directs hundreds of millions of dollars in funding and tax breaks to developers who use the law’s provisions to build.

Live Local quickly proved controversial as developers began proposing outscaled projects in municipalities ranging from Doral to Hollywood and Miami Beach. The law’s pre-emption provisions apply in commercial, industrial and mixed-use areas.

At the same time, the Legislature barred local governments from imposing rent controls on private housing and made it harder for municipalities and counties to approve affordable housing in areas zoned residential only.

Some experts say they expect litigation and increased public furor as mammoth Live Local applications proliferate across Miami-Dade.

 

Source:  Miami Herald

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Three More Live Local Act Apartment Towers Proposed In Wynwood

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Developers are seizing on the Live Local Act with plans for five apartment high-rise projects in Wynwood.

The towers, which would range from 18 to 48 stories, promise to alter the look of the Miami neighborhood, where heights for years have been capped at 12 stories.

Three of the proposals were recently revealed. New York-based Hidrock Properties plans a 39-story, 336-unit tower at 2534 North Miami Avenue; Miami Court Holdings proposes a 19-story, 401-unit tower at 2100 Northwest Miami Court; and David Sedaghati’s Ultimate Equity plans a 25-story, 996-unit apartment tower on the southeast corner of Northwest Sixth Avenue and Northwest 26th Street, the Miami Herald reported.

In other proposals, Clara Homes’ preliminary plan is for an 18-story to 20-story building with about 150 apartments on the site of the Austin Burke menswear store at 2601 Northwest Sixth Avenue. Also, Bazbaz Development proposes the tallest tower, a 48-story building with 544 units at 2110, 2118 and 2134 North Miami Avenue, as well as 2101, 2129 and 2135 Northwest Miami Court.

Miami-based Clara Homes is led by James Curnin. Bazbaz, with offices in New York and Miami, is led by Sonny Bazbaz.

The Live Local Act, approved by state lawmakers last year and tweaked this year, incentivizes developers to include affordable and workforce housing in their projects by allowing them to skip public hearings for approvals and build much bigger buildings than local zonings permit. To qualify under the legislation, at least 40 percent of an apartment project’s units must be designated for households earning no more than 120 percent of the area median income. The units have to remain at below-market rents for at least 30 years. Also, under the law, developers can build up to the highest density allowed in a municipality, and up to the tallest height allowed within a mile of the development site.

Critics have raised questions as to whether the state law will truly provide a reprieve to Florida’s affordable housing crisis. At Miami-Dade County’s $79,400 annual area median income, a one-person household can earn up to $95,400 a year to qualify for a unit in a Live Local Act project, according to the Florida Housing Finance Corporation.

Some municipal officials and urban planners also have said the law ultimately lets developers ram through projects that will trump neighborhoods’ low-rise and mid-rise characters.

 

Source:  The Real Deal

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Board Slams 48-Story Live Local Act Project Proposed In Wynwood

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Bazbaz Development’s plan for a 48-story tower in Wynwood, the area’s tallest ever planned building, struck out in front of a Miami review board.

The Wynwood Design Review Committee voted against the proposal after a roughly two-hour discussion this week. The committee’s vote isn’t final but merely a recommendation.

Sonny Bazbaz’s eponymously named firm wants to build the 544-unit apartment building on a  1.5-acre assemblage at 2110, 2118 and 2134 North Miami Avenue, as well as 2101, 2129 and 2135 Northwest Miami Court in Miami.

The Live Local Act, a state legislation approved last year and tweaked this year, allows developers wiggle room on site and neighborhood zoning restrictions as long as at least 40 percent of the units are designated as affordable or workforce housing for tenants earning no more than 120 percent of the area median income. These apartments have to stay at below-market rents for at least 30 years.

Bazbaz’s project marks the first Live Local Act proposal for Wynwood to go in front of the design review committee for a vote. Wynwood buildings are limited to 12 stories, a threshold reached after a yearslong effort to hammer out the neighborhood’s zoning code in a way that preserves the former warehouse district’s character.

But Bazbaz’s project isn’t the only Wynwood proposal under the state affordable housing legislation. In total, six Live Local Act projects have been filed for Wynwood, according to city staff members.

That’s why review committee members said during their meeting that their vote on Bazbaz’s project essentially sets a precedent for future proposed Live Local Act projects in Wynwood, and ultimately for the neighborhood’s changing character.

Under Live Local, the committee’s hands are tied on the project’s height and size in general. But members took issue with various aspects of the tower’s design and its scale just on the first few levels, including of the garage podium.

After several committee members commented on the tower’s “efficient” design, committee member Shamim Ahmadzadegan chimed in.

“I want to call it efficient as a euphemism for too simplistic. It’s a box on top of a slender box. We feel like it’s probably overly simplistic. I might use the term unremarkable,” he said at the meeting on Tuesday. “Wynwood is never simplistic and unremarkable.”

Committee member Amanda Hertzler echoed her colleagues on the dais in saying that the tower is “beautiful,” but the design doesn’t fit in Wynwood.

 

Source:  The Real Deal

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Developer Proposes Wynwood’s Tallest Project At 48 Stories

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Bazbaz Development wants to build a 48-story apartment tower in Wynwood under the Live Local Act, marking the tallest project proposed for the Miami neighborhood.

The firm filed an application for a 544-unit project on a 1.5-acre assemblage at 2110, 2118 and 2134 North Miami Avenue, as well as 2101, 2129 and 2135 Northwest Miami Court, according to city records. Bazbaz Development, with offices in New York and Miami, is led by Sonny Bazbaz.

The 755,700-square-foot project would include 321 on-site parking spaces and eight off-site spaces.

The Wynwood Design Review Committee is expected to vote on the project at its meeting on Tuesday, including on requests to include fewer parking spaces than required.

The Live Local Act, a state law approved last year and tweaked this year, gives developers wiggle room on sites’ zoning in exchange for designating at least 40 percent of the units for households earning no more than 120 percent of the area median income. Under the legislation, developers can build up to the highest density allowed in a city and up to the tallest height allowed within a 1-mile radius of the development site.

Bazbaz’s proposal for 48 stories is less than the 60 stories they could build under Live Local, but it’s much higher than the 12-story maximum allowed in Wynwood, according to the application and Wynwood zoning records.

The proposal marks a switch from Bazbaz Development’s previous proposal for an eight-story building and a 12-story building with a total of 339 apartments, 25,653 square feet of retail and a 407-space parking garage. The Miami Urban Development Review Board greenlit the plan last year.

Bazbaz bought the development site in 2022 for $12 million, records show. The purchasing entity also ties to Isaac, Jacobo, Simon and John Bazbaz.

 

Source:  The Real Deal

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Clevelander Submits Plans To Turn South Beach Party Spot Into Housing

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The owners of the Clevelander Hotel and Bar submitted plans to the city of Miami Beach on Monday to transform the famous party spot into a restaurant and 18-story housing development, shorter than the 30 stories first floated last month but substantially taller than other buildings nearby on Ocean Drive.

The proposal calls for a 200-foot tower above a ground-floor restaurant where the Clevelander currently stands. The project would have 137 residential units, 55 of which would be designated as workforce housing.

Monday’s submission comes more than six weeks after Jesta Group announced its intention to redevelop the Clevelander and adjacent Essex House hotel under Florida’s Live Local Act, which lets developers circumvent local height and density regulations if they commit to designating 40% of new housing units as affordable to renters earning up to 120% of the area median income.

 

Source:  Miami Herald

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Developer Under Contract To Buy 17,000-SF Lot In Wynwood For $7.7 Million

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Clara Homes is the latest developer to seek a piece of Wynwood.

The Miami-based company is under contract to buy a 17,000-square-foot lot for $7.7 million, with plans to build a luxury rental building on the site under Florida’s newly enacted Live Local Act, according to a company spokesperson. The sale is expected to close by the end of 2023.

The parcel holds a single-story retail building that’s home to the Austin Burke men’s clothing store at 2601 NW Sixth Avenue, located between the Interstate 95 and the 545 Wyn office building,

The clothing retailer owns the property and will remain there for now, as the deal includes a sale leaseback for one year. Austin Burke purchased the property, completed in 1967, for $340,000 in 1988, according to property records.

Clara Homes plans to build a 152-unit luxury rental building with ground-floor retail designed by Miami architectural firm Kobi Karp. The developer plans to utilize a provision from the Live Local Act, a state housing law enacted earlier this year, that allows added density in return for designating at least 40 percent of apartments as workforce housing.

 

Source:  Commercial Observer

 

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‘Bullish on Allapattah’: Miami’s Next Frontier Of Development

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At 4.6 square miles, Allapattah is an eclectic landscape of warehouses, single-family homes, apartment buildings, hospitals, justice facilities, restaurants, shops, and art museums.

In recent years, the predominantly working-class Miami neighborhood has become something else: the next frontier of real estate development.

Real estate insiders said Allapattah won’t have the same fate as Wynwood, with office and retail rents are among the highest in South Florida. For one thing, it is more than three times the size of Wynwood. For another, real estate investment there has been at a moderate tempo, at least so far, said Francisco “Paco” De La Torre, an artist who transformed two Allapattah industrial buildings into arts studios and offices.

“It’s been a slow and steady growth,” he said. However, since the onset of the Covid-19 pandemic, that growth has manifested at a “stronger, steadier pace.”

Among Allapattah’s agents of change are Don and Mera Rubell and their son Jason. The family of prominent art collectors moved their collection’s exhibition site from Wynwood to a 100,000-square-foot warehouse building at 110 N.W. 23rd St. in Allapattah in 2019. Since then, the Rubells have converted two other neighboring warehouses to display their art. Their most recent acquisition is the 45,711-square-foot former Rex Discount Wholesale warehouse at 1090 N.W. 23rd St., purchased for $10.7 million in 2022.

In 2019, Jorge Pérez, founder of Miami-based Related Group, turned a 28,000-square-foot warehouse at 2270 N.W. 23rd St. into an art exhibition space called El Espacio Twenty Three.

On the multifamily apartment front, Neology Life Development Group, led by Lissette Calderon, completed No. 17 Residences, a 13-story, 192-unit market-rate apartment building at 1569 N.W. 17th Ave., in 2021. Two more 14-story apartment complexes – the 237-unit Fourteen Allapattah Residences and the 323-unit The Julia – will be finished in six months, she said.

Alfredo Riascos, principal of Miami-based Gridline Properties, said most of Allapattah’s warehouses will either remain industrial uses or be converted into office or art-related uses. But along its major vehicular corridors, developers will have an incentive through the Live Local Act to replace warehouses with workforce housing projects.

“Allapattah is a [desirable] market, given its location in the Miami urban core and the vicinity to downtown Miami, Wynwood and the Medical District,” he said.

 

Source:  SFBJ

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South Beach’s Clevelander To Be Transformed Into Affordable Housing Development

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The Clevelander Hotel and Bar announced a transformational redevelopment of its current site designed to address the lack of affordable housing in the area. This residential project will be the first of its kind in Miami Beach developed under Florida’s newly enacted Live Local Act.

The Clevelander has engaged a prominent architect to develop what will become one of the most significant affordable housing developments ever to be built on private land in the City of Miami Beach. 40 percent of the units will consist of affordable housing rentals.  The new development will be built on the sites of the Clevelander and adjoining Essex House hotel properties, which are both owned by Jesta Group. The Art Deco facades of these historic buildings shall be preserved and retained.

The lack of affordable housing in Miami Beach has created a pervasive labor shortage in Miami Beach’s hospitality industry.  Workers – particularly those in the hospitality industry — are unable to live near their jobs because of the cost of housing, forcing lengthy daily commutes to and from work.  This labor shortage was further exacerbated in the last few years due to the large number of hospitality workers leaving the industry during the Covid lockdowns.

“We are now facing a severe labor crisis in Miami Beach’s hospitality industry,” says Clevelander spokesperson and Shutts & Bowen attorney Alexander Tachmes. “It is extremely difficult to attract and retain talent in an industry with a dwindling labor pool and nowhere for existing employees to live.”

In the coming days, the Clevelander will be meeting with the City to submit architectural plans for this project under Florida’s new Live Local Act.  The Live Local Act, which went into effect on July 1, 2023, is a statewide workforce housing program designed to increase the availability of affordable housing opportunities, thus allowing Florida’s workforce to live in the communities in which they work. The Act makes it economically feasible to build affordable housing by eliminating harsh and overly restrictive zoning regulations.

For example, for a qualifying project under the Act, the maximum height allowed for an affordable housing project can be as tall as the highest building allowed within one mile of the site.  In the case of the Clevelander property, the maximum height allowed is approximately 30 stories.  Similarly, the maximum density allowed is equal to the highest density allowed anywhere in the respective city.  Under the Act, the Clevelander redevelopment project’s maximum density would be 150 residential units per acre. Additionally, the affordable housing units would be guaranteed to stay affordable for 30 years.

“Since purchasing the Clevelander Hotel and Bar a few years ago, we have been proud to operate this legendary and iconic establishment in South Beach.  Although we are happy to continue operating as we have, some have expressed a desire that we change our business model at the property.  With the Live Local Act, we now have a unique opportunity to do that.  The Act allows us to redevelop the Clevelander and Essex House sites with enough density and square footage to justify the shift in our business model while providing an important public service in the form of affordable housing,” said Anthony O’Brien, Senior Managing Director of Jesta Group. “We are excited at the unique opportunity to offer true affordable housing on South Beach which will remain in place for decades to come.”

The new development will transform the legendary Clevelander from its current use as a hotel and bar with outdoor entertainment until 5 a.m. into a residential development with hotel services and a high-end restaurant on its ground floor.  The Clevelander’s current staff will be given priority to fill positions in the new project.

For years, the Miami Beach Mayor and Commission have been attempting to change the business model of South Beach in order to reduce its supposed dependency on nightlife tourism. Until now, there has been no forum for dialogue with the Mayor’s office regarding reasonable and effective tools that would make it financially feasible to revamp the Clevelander’s current business model.

Today, thanks to the Florida Legislature, the economic paradigm for development on Ocean Drive has finally been sufficiently modified to make possible a change of use at the Clevelander.  Notably, this change is occurring because of economic incentives and cooperation, rather than punitive legislation.

“We applaud the State of Florida for making this happen,” added Tachmes. “This is a huge win on multiple levels. The city wins by achieving its goal of turning a nightlife venue into a sophisticated restaurant and replacing hotel rooms with residential product on Ocean Drive.  The city and hospitality workers win by the introduction of a significant quantity of affordable housing, which will give the hospitality community greater options to live in the community in which they work.  And the Clevelander wins by replacing a highly profitable business with enough potential development revenue to justify a change in business models.  And all this can be done while maintaining the beautiful historic Art Deco facades that have made this property and the surrounding neighborhood so iconic.”

 

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Developers Looking To Buy Commercial Sites Due To New Legislation

Developers are analyzing how to take advantage of Florida’s new legislation, which will set aside over $700 million in funding, create tax breaks, and provide zoning-related incentives for affordable and workforce housing developments.

The law could contribute to a new boom in housing development, from entirely affordable buildings to mixed-income towers on commercial sites that developers are now looking to purchase, experts say.

The Live Local Act, which Gov. Ron DeSantis signed aims to help fill financing gaps, making more developments economically feasible. What is still crucial, attorneys and developers said, is combining that with incentives on the local level.

“These incentive programs, in conjunction with working cities and municipalities — that’s the way you’re going to fill a void and a gap and a huge need,” said Brian Sidman, of Miami Beach-based Redwood Dev Co. “The problem isn’t going to be solved by developers buying private land. That ship has sailed due to the cost of private land.” 

Still, Sidman called the legislation “a great start,” and applauded DeSantis and the Florida Legislature.

“If we don’t fix our housing crisis, we’ll have other material programs that will trickle down,” he said.

Redwood is analyzing the SAIL (State Apartment Incentive Loan) program to see which of its projects could secure low-interest loans for workforce housing. Redwood, which has more than 1,500 units in the pipeline in South Florida, aims to build more than 5,000 affordable and/or workforce units over the next five to seven years. It recently broke ground on Mosaic, a 98-unit development in Opa-locka.

The new legislation sets aside $259 million in SAIL funds. It also promises $252 million in SHIP (State Housing Initiatives Program) funding to incentivize local governments to partner with developers preserving or building new housing.

The law goes into effect July 1. Developers are expected to apply for incentives this summer, and receive funds next year.

 

 

Source:  The Real Deal

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