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Neology Life’s No.17 Residences Allapattah Scores $31.5M Refi

no17_common_areas_photo courtesy of berkadia 1170x435

Berkadia secured a $31.456 million loan to refinance No.17 Residences Allapattah, a 192-unit attainable luxury apartment rental building in the Fruit Packing District of Allapattah.

Senior Managing Director Charles Foschini, Managing Director Christopher Apone, and Associate Director Shannon Wilson of Berkadia South Florida secured the financing on behalf of Neology Life Development Group, a lifestyle-driven residential and commercial real estate firm, led by Lissette Calderon, that specializes in the transformation of overlooked and undervalued communities into vibrant urban neighborhoods.

Fannie Mae originated the 10-year loan with five years of interest-only.

Located at 1569 NW 17th Avenue, No.17 Residences Allapattah was completed in April 2021 and leased up in record time. It offers one-, two-, and three-bedroom apartments ranging from 600 square feet to 1,125 square feet. Individual units feature smart home technology, open floor plan kitchens, stainless steel appliances, quartz countertops, washer and dryer, full-length windows, balconies, and walk-in closets. Building amenities include an expansive urban park, lobby lounge with co-working and social spaces, a TV lounge area, art-inspired pool deck, pool side cabanas, indoor/outdoor clubroom, fitness center, on-demand virtual fitness classes, a rooftop garden with a summer kitchen, an outdoor movie theater, bark park, bike storage, electric car charging stations, a zoom room, on-site parking, and 24-hour secure package rooms.

The property is situated in Miami’s centrally located Allapattah neighborhood, which is just a short walk, bike ride, drive or public transit trip from some of Miami’s largest employment centers, including the Health District, Civic/Government Center, Downtown Miami, Wynwood< and the Brickell Financial district, and offers easy access to the Dolphin Expressway and I-95. As home to the flagship location of Superblue, the Rubell Museum and El Espacio, Allapattah has quickly become an important arts and culture destination.

 

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Neology Secures Construction Loan For Third Apartment Community In Miami’s Allapattah

Neology Life Development Group, led by Lissette Calderon, announced that it has secured construction financing to build its third lifestyle-driven residential community in Miami’s historic Allapattah neighborhood. Located at 1470 NW 36th Street, “Fourteen Allapattah Residences” will deliver 237 apartments, along with 5,000 square feet of ground-floor retail, to one of Miami’s most dynamic emerging neighborhoods.

Berkadia secured a $57.5 million construction loan through lender Churchill Real Estate to build Fourteen Allapattah Residences, with groundbreaking expected this September. The property is located in a Qualified Opportunity Zone.

Neology’s portfolio now consists of more than 1,500 apartment units completed or under construction in Miami’s urban core, including The Julia, an upscale apartment community that will open in 2023, and Neology’s flagship Allapattah project, No. 17 Residences Allapattah, which opened in 2021 and leased up in record time.

“Fourteen Allapattah Residences is an important milestone,” said, Lissette Calderon, President and CEO of Neology Life Development Group. “It further establishes Neology’s commitment to Allapattah as the pre-eminent multifamily developer in the neighborhood with over 1,000 apartments recently completed or under construction. It also demonstrates our partners’ confidence in our business model and track record. Everything about this project – from the Opportunity Zone location to the attainable lifestyle component – makes good financial sense in today’s market. It’s an exciting time for Allapattah as we add another one-of-a-kind residential space to one of Miami’s original neighborhoods.”

She added, “To be able to bring this project to life with my partner America Opportunity Zone Advisors, led by my mentor and former Wharton Professor and head of Wharton Real Estate, Peter Linneman, along with his team of Jared Mintz and Kelley Brasfield, is a dream come true.”

Fourteen Allapattah Residences will consist of a 14-story building with 180 apartment units connected via a pool deck to a five-story building with 57 apartments including ground floor walk ups. It will offer studio, one- and two-bedroom units ranging 450 to 900 square feet. Apartments will feature European-inspired cabinetry, quartz countertops, energy efficient kitchen appliances, in-unit washer and dryer, energy efficient AC and heating systems, and smart home technology adaptors. Lifestyle amenities will include curated original artwork, a multipurpose lobby, media lounges and living rooms, a rooftop pool and clubhouse, poolside cabanas, coworking spaces, conference rooms, outdoor movie screen, an indoor and outdoor fitness and wellness center, with a yoga and cardio studio, dog park with dog wash area, bike storage, virtual concierge and smart package lockers, and a parking garage with electric car charging stations as well as a ride share lobby.

The property, which will open in early 2024, enjoys a highly visible location on NW 36th Street just 5 minutes west of Wynwood and 10 minutes east of the Miami International Airport, close to the health district, which is the country’s largest concentration of medical and research facilities after Houston. It is just a short walk from the Allapattah Miami Metrorail Station, the Rubell Museum, and SuperBlue.

The contractor for Fourteen Allapattah Residences is JAXI Builders, Inc.; the architect is Behar Font Architects; interior design is by designBAR; and Witkin Hultz Design is the landscape architect and GT Law provided legal counsel. Bilzin Sumberg Law’s Suzanne Amaducci-Adams and Manny Gonzalez led the transaction on behalf of the borrower.

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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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The Big-Money Development Push Is On In Wynwood, Allapattah

Related Group recently completed two projects in Wynwood and has more in the works, Vice President Jon Paul Perez told Bisnow this week. In Allapattah, it recently opened a gallery and is on the lookout for other opportunities.

“It’s gotten to that point where the buying and trading of land without developing … that ship has sailed,” Perez said. “If you’re buying land there now, you’re assuming you’re going to have to develop.”

Sterling Bay Director of Leasing Michael Lirtzman had a similar assessment. The Chicago development giant closed on a site for $18.9M in December 2018, at 545 Northwest 26th St., where it is building a 10-story, 300K SF office building called 525wyn.

“We got in at a pretty good number,” Lirtzman said. “The pricing was a little more restrained. Now it’s starting to push.”

Sophisticated national developers have “brought some discipline to the pricing,” he said, but he predicted values would stay high as the neighborhood hits maturity.

“Wynwood is in the mode of building now,” said Avison Young principal John Crotty, with the days of flipping mostly gone and big residential developers going vertical.

Allapattah, however, still has pockets of opportunity, he said. “Other than by the [Miami] River and by [Jackson Memorial] Hospital, there’s not much development.”

Related Group and partner East End Capital completed Wynwood 25 in July. Its 289 apartments are now 85% leased at $3.10 per SF, Perez said, and its 35K SF of retail is 45% leased. Another project, the Bradley, which Related developed as apartments, was instead leased entirely to Domio to be operated as short-term rentals.

Perez said that Related benefited by being the first mover, willing to take a risk.

“The bet that we were making was that people wanted to live in Wynwood, right?” he said. “I could never have told you, ‘Hey, I’m going to sign a lease for all the apartments to one operator,’ because I think at that time these types of companies did not exist.”

When Domio came around, “we were the only option for someone that wanted one of those companies to be able to be in the neighborhood,” he added. Domio reportedly fought off competition from rival short-term rental operators to sign the building.

The largest development deal in the area last year was a 1.6-acre site at the corner of Northwest 25th Street and Second Avenue, which buyer Property Markets Group and Greybrook Realty Partners paid $46M to acquire and redevelop from its existing use as a gallery into a six-story resident complex with 222 units, Crotty said.

Crotty said PMG spun out the bottom-floor retail to Tricera Capital, which should be able to garner rents around $80 per SF.

“That’s Main and Main,” said Crotty, a former NBA player who also serves as the Miami Heat’s TV analyst. “That’s top-of-the-market pricing.”

Blocks off the main drag, Wynwood rents are about $50 per SF, he said.

Office leasing at the Wynwood Annex has gone a little slowly, Perez said, but Live Nation leased a floor and he said he is in talks with potential tenants that are similar in size and credit to the events company.

“So definitely by the end of 2022, our buildings should be close, if not 100% occupied,” Perez said. 

Lirtzman compared Wynwood to the Fulton Market area of Chicago, which was “where young people went to hang out. There was no office, but a vibrancy in the neighborhood.”

Sterling Bay decided to build office projects there with large floor plates and top-line amenities geared for creative tenants. It is now building its seventh Fulton Market building in a six- or seven-block radius.

Sterling Bay’s Wynwood project, which recently topped off, will include a fitness center, an indoor/outdoor bar and 440 parking spaces. Its first tenant is architecture giant Gensler, and Lirtzman said a letter of intent has been signed for a consulting firm to take 8K SF.

Goldman Properties opened the 30K SF Wynwood Garage in 2018, and a boutique office building, the eight-story, 86K SF Cube Wynwd, opened last year. Another big project, The Gateway at Wynwood, a 460K SF Class-A office building, broke ground last week.

The same forces that shaped Wynwood have affected the working-class neighborhood of Allapattah, just to the west. Whereas Wynwood had largely been made up of industrial warehouses, Allapattah now buzzes with working-class businesses. But real estate pros have been hyping it as the next hot neighborhood.

Developer Robert Wennett has proposed a mixed-use development by Danish “starchitect” Bjarke Ingels. Neology Life Development Group head Lissette Calderon in October broke ground on No. 17 Residences Allapattah, a 14-story, 192-unit apartment at 1569 Northwest 17th Ave.

“If you go have lunch on a Wednesday, it’s cops, it’s firemen, there’s people that are working nurses, doctors,” Perez said. “Allapattah probably started selling at $20 a foot, and now you have property trading at 130 bucks a foot.

“We’re not in that game of finding land and hoping for the value to rise and then flipping. So we say, ‘OK, at this price, does it make sense where I could build apartments, office, whatever it may be, at this land basis?'” he continued. “We’re looking for sites that are large enough that we can do substantial projects — 300 or so apartments there — and we haven’t found one yet that we are moving forward on.”

Calderon said in an email that construction on No. 17 Residences Allapattah has reached the fifth floor and is expected to be completed in spring 2021. She highlighted its amenities, including smart technology for package receiving, a digital concierge, a gym with virtual fitness and a “bark park” where dogs can play.

She said Neology Life is planning to break ground on another mixed-use project near No. 17, with 323 units, ground-floor retail and office space. It would begin construction after No. 17 opens in late spring 2021.

Crotty said that besides the aforementioned projects, plus a few others in the pipeline — the 555 River House proposed by Avra Jain and a yet-to-be-developed parcel he sold to billionaire developer Moishe Mana for $8.5M — Allapattah “has yet to fill in and grow,” he said.

Florida’s Department of Transportation is exploring the possibility of building a new highway exit off Interstate 95 at Northwest 29th Street.

“That would be a game changer,” Crotty said.

 

Source:  Bisnow

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