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Why Super Bowl LIV Could Spark Interest In Miami Gardens Real Estate

Tens of thousands of people passed through the turnstiles into Hard Rock Stadium for Super Bowl LIV, taking part in the spectacle and competition. And when it ended, nearly all of them bypassed the neighborhood entirely on their way out.

While the stadium’s privately-funded, $500 million renovation boasts an open-air canopy along with other impressive additions, the surrounding city of Miami Gardens stands in sharp contrast.

The city has so far failed to attract the wide-scale investment that some sports stadiums in other cities have brought, and has not seen a blossoming of new residential properties outside the stadium.

Hard Rock Stadium owner — and Related Companies’ founder and chairman — Stephen Ross began the massive renovations of the venue in 2015, which brought the Super Bowl back to South Florida after a decade of absence. In addition, the money that Ross invested in the stadium — he also owns the Miami Dolphins — led to the Miami Open tennis tournament there in April and potentially, a Formula 1 race.

Some real estate developers who have built or proposed projects in Miami Gardens believe the renovations may bring about new interest in the city as a whole. The city, incorporated in 2003, is a historic African-American community with a population of about 110,000. It largely consists of older residential properties and commercial and industrial properties. In 2017, the household median income was $41,000 — below the county’s average of $46,388.

“The stadium is starting to be an asset. It was just a football stadium, but now… you are seeing an active asset, you are drawing people,” said Barron Channer, the CEO of Woodwater Investments, a Miami-based real estate investment firm. He previously proposed building a mixed-use project near the stadium.

Some developments are already in the works.

Los Angeles-based Latigo Group recently broke ground on a 259-unit apartment project at 19279 Northwest 27th Avenue in Miami Gardens. Rents will range from $1,700 to $2,300 per month, and the project is one of the first new market rate apartment developments in the city. It’s part of a bigger mixed-use project that will include a 37,000-square-foot building on a 4.63-acre parcel that will be leased to 24 Hour Fitness.

Jonathan Roth of Miami-based 3650 REIT, which provided a $50 million construction loan for the project, said Miami Gardens could become an attractive place to build housing at reasonably priced rents, since land prices are cheaper.

“What is happening nationally, you have a lot of development, but it is all Class A going up. By going into Miami Gardens you are going to pay slightly less for the land,” Roth said.

Sitting right off the Florida Turnpike and I-95 and in between downtown Miami and Fort Lauderdale, Miami Gardens has become a hub for logistics and warehouses, the less sexy part of real estate.

In recent years, institutional industrial investors have been snapping up properties in the area. In October, private equity giant Blackstone acquired two industrial properties in Miami Gardens for $13.6 million at 5120 Northwest 165th Street. And in July, Longpoint Realty Partners bought an industrial park in Miami Gardens from Prologis for $25 million.

In the northeast Miami-Dade County submarket, which includes Miami Gardens, more than 197,000 square feet of industrial space was under construction at the end of 2019, according to a report from Avison Young. The net absorption was 1.1 million square feet, the most of any submarket in the county.

Yet, the question remains whether the city will pivot from attracting industrial development to more residential projects.

Some real estate experts are betting on it, in part due to the rising cost of land in other parts of South Florida, and a lack of developable land to build new projects. The city could also become an alternative for renters on a budget, who would otherwise move further south or west in Miami-Dade County.

Colliers International South Florida’s Gerard Yetming and Mitash Kripalani are listing two parcels of land in Miami Gardens at 1255 Northwest 210th Street, totaling 82.5 acres, which allow for a maximum of 50 residential units per acre. Yetming said he is getting inquiries from developers who are looking to build workforce residential development, and that developer interest is growing in Miami Gardens.

“The level has increased over the past couple of years,” Yetming said. “A few years ago, developers were more interested in downtown and an urban type of environment.”

With new investment also comes the risk of gentrification and displacement of existing residents, something communities in places like Miami’s Little Haiti are trying to combat amid projects like the Magic City Innovation District.

“Miami Gardens is and has been heavily defined by the presence of black residents,” said Channer of Woodwater Investments. “If this is not reflected in who is courted to, and actually investing at all levels, then economic development efforts would have failed their ultimate test.”

 

Source:  The Real Deal

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Super Bowl Descends on Miami and Its Changing Skyline

The last time the Super Bowl came to Miami, the football stadium on the edge of the Everglades and just off the turnpike was surrounded by asphalt and dirt parking lots.

Miami-Dade County had 20% fewer apartments and 23% fewer available hotel rooms during the championship game in 2010, when Airbnb and ride-hailing companies such as Uber were in their infancy. Brightline, the commuter train service renamed Virgin Trains USA that connects Miami with West Palm Beach and Fort Lauderdale, didn’t exist. All those factors are expected to play major roles this weekend as Miami hosts the Super Bowl for a record 11th time, attracting more than 200,000 people to a region with a skyline that has changed dramatically.

“If you were here 10 years ago and came back, you’ll find that this city is completely different,” Miami-Dade County Mayor Carlos Gimenez said.

North of downtown, once-distressed neighborhoods such as Allapattah and Little Haiti are attracting new development that appeals to millennials who want to live close to where they work. One of the trendiest areas of Miami is Wynwood, a former industrial and garment district now drawing offices, retail and residential. Tour buses regularly pass through Wynwood, allowing visitors to snap selfies among the spray-painted graffiti that adorns many of the buildings in the rollicking arts district.

“Miami has become more of an urban place where people live and play now,” said Rodney Barreto, chairman of the Miami Super Bowl Host Committee. “It wasn’t that 10 years ago. Heck, at 6 or 7 o’clock at night you couldn’t find anybody downtown. Now at 11 o’clock at night, people are walking their dogs.”

In the past 10 years, close to 30,000 new apartments have been built across Miami-Dade County, helping make it the U.S. capital for rentals as a percentage of inventory, according to CoStar data. The market has added 11,000 more hotel rooms, not including thousands of new beds now available through home-sharing giant Airbnb. Scores of luxury condominium towers are sprouting up in downtown Miami, including one that has an amenity deck that can be transformed into a skyport for flying cars and another with a robot concierge service.

The 65,000-seat Hard Rock Stadium is now the new home of the Miami Open tennis tournament and has attracted soccer, concerts and other events. Last year, ground was broken on a $135 million Dolphins training facility next to the stadium. And gondolas were installed that will make their debut on Super Bowl Sunday, giving fans an aerial view of the pregame festivities.

“It’s definitely a different town, and we’re going to be really proud to show it off, for sure,” Barreto said.

The Feb. 2 game at Hard Rock Stadium between the Kansas City Chiefs and San Francisco 49ers is expected to generate an estimated economic impact in excess of $400 million. Hotels in the Miami area are projected to break all-time highs for average daily rate and revenue per available room, two industry standard measurements, according to figures from STR, a travel industry data and analytics firm owned by CoStar Group, the parent company of CoStar News.

Making the Pitch

NFL owners voted in 2016 to award South Florida this year’s Super Bowl, a game that marks the league’s 100th season. They were sold after listening to a pitch from Miami Dolphins owner and Hudson Yards developer Stephen Ross about hundreds of millions of dollars he spent to renovate the aging Hard Rock Stadium in Miami Gardens, on the edge of the Everglades northwest of downtown Miami.

At the time, the Dolphins and Barreto said the region’s bid, which topped 550 pages, included a budget of cash and incentives valued at more than $40 million. Barreto now declines to discuss specifics of the bid, saying parts of it eventually will be made public.

Miami, the nation’s seventh-largest metropolitan area, is a preferred destination for the Super Bowl because of its size and the consistently warm weather, notwithstanding the Super Bowl in 2007, but even then fans found it strangely appropriate that halftime performer Prince sang his hit song “Purple Rain” in the rain.

Meanwhile, the matchups in Miami have been among the most memorable in league history.

In the second of five Super Bowls played at the Orange Bowl in Miami, New York Jets quarterback Joe Namath famously guaranteed victory over the Baltimore Colts in 1969, a huge upset that led to the merger of the NFL and the American Football League.

Twenty years later, in a new stadium privately funded by Dolphins founding owner Joe Robbie, San Francisco 49ers quarterback Joe Montana jokingly pointed out actor John Candy in the crowd to his teammates before leading them on a last-second drive to beat the Cincinnati Bengals.

A decade ago, the New Orleans Saints outlasted the now Indianapolis Colts with the help of a risky onside kick to open the second half, delivering the Big Easy’s first title, 4 1/2 years after the city was devastated by Hurricane Katrina.

But not long after the Saints beat the Colts in February 2010, NFL Commissioner Roger Goodell delivered a stark message to Ross and other officials hoping to schedule another Super Bowl at Hard Rock.

“The commissioner was very adamant and very loud about we would not get another Super Bowl until we made renovations,” Barreto told CoStar News.

Stadium Improvement Process

Ross first sought public money to renovate the stadium that opened in 1987, though that effort hit a political wall. In 2014, he struck a deal with Miami-Dade to pay for the upgrades himself in exchange for bonus payments to the Dolphins for hosting the Super Bowl and other events.

The phased stadium improvements brought new seats, two new concourses, new suites, four high-definition video boards and a canopy that shades 92% of the fans. The cost: more than $550 million.

Gondolas will make their debut at Hard Rock Stadium at the Super Bowl Feb. 2 in Miami. (Paul Owers/CoStar News)

Ross’ total investment at Hard Rock Stadium now tops $700 million, noted Tom Garfinkel, president and CEO of the Dolphins and member of the Miami Super Bowl Host Committee.

“It’s a testament to Steve Ross’ commitment,” Garfinkel said in an interview. “The stadium has become a global entertainment destination.”

The NFL seems impressed.

Senior Director of Event Planning Eric Finkelstein, whose crew of 6,000 workers has been in South Florida since Jan. 2 preparing for the Super Bowl, said the new canopy allows the league to introduce surprises for fans during the championship game.

“To us, it feels like a brand new building because of how much has changed,” said Finkelstein, who is overseeing his 21st Super Bowl.

NFL owners typically vote to award the game to cities with warm weather or domed stadiums. Teams that agree to build stadiums, as the Los Angeles Rams are doing, have a good chance of eventually hosting the Super Bowl. Tampa, Florida, doesn’t have a new stadium, but NFL owners voted to move the Super Bowl there in February 2021 from Inglewood, California, because of construction delays at the Los Angeles Rams’ SoFi Stadium. It will be the fifth time Tampa has hosted the game. The big game heads to SoFi Stadium in the Los Angeles area in 2022.

Local civic and business leaders insist they aren’t taking for granted the impact of the game on South Florida, no matter how many times it has been played here.

“We have the attention and the focus of the world,” Miami Mayor Francis Suarez said.

Barreto has signed paperwork to allow South Florida to compete for the Super Bowl in any year from 2025 to 2030. He was watching on television Wednesday when Goodell, speaking at his state of the league press conference, praised local officials and indicated the game likely will return to Hard Rock Stadium.

“We’re ecstatic,” Barreto said. “I believe they like Miami. We’re experienced, and we know how to work with them.”

 

Source:  CoStar

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