As More Companies Migrate to South Florida-Miami Commercial Real Estate Booms
As more companies migrate to south Florida, we are seeing more office spaces renting out, new mixed-use construction and now more than ever, new mixed-use projects. More recently, RAL Tricap Wynwood LLC has proposed a mixed-use twin tower project in the Wynwood Arts District.
Located at Northwest Fifth Avenue and 27th Street, these two 8 story buildings are proposed to have over 250,000 square feet of office and retail space. Dubbed the names, Wyn on 5th North and WYN on 5th South, this twin developments was review by the city in March 2022 and the developers are just waiting on final approvals.
Wyn on 5th North will feature 106,414 square feet of office plus 6,961 square feet of retail and 268 parking space with available bike spaces. Wyn on 5th South will showcase 139,254 square feet of offices, 16,000 square feet of retail, and 377 parking spaces. Each garage will be enclosed and will feature a roof deck.
The project was envisioned to encompass work and play into one creative space. The developer is looking to advertise to local and national companies who wish to be at the beginning stages of the Miami’s financial and tech scene.
According to the attorney, Steve Wernick, “Together, the buildings create a landmark arrival and visual gateway into the Wynwood Arts District from NW 5th Avenue, and significant public realm improvements that will enhance the connectivity and pedestrian experience of Wynwood – extending 24/7 activity to the Fifth Avenue corridor.”
The project itself will be designed Arquitectónica. Although the board recommended approval they still had some commend concerning the design, which were called “two decorated boxes.” They wish to see buildings that resembled more of what the Wynwood Design District is and what the area is all about. Another recommendation included the artwork on the exterior of the building to encompass the vibe of Wynwood.
Can the Metaverse Change the Miami Real Estate Market?
“Metaverse” is a massive buzzword in the realms of technology, business, and finance right now, and like all buzzwords, its definition is hazy, debated, and molded by the objectives of those who use it. Now, the Metaverse is being debated whether it can be a real estate game-changer.
One Miami commercial group is trying to make their listings more attractive by utilizing the Metaverse. Currently, Inhouse Commercial is partnering with the Metaverse Group to create a virtual copy of the two buildings that they have for sale in Miami Beach.
The properties are located at 930 and 960 Alton Road, and whoever purchases the properties, will receive the digital copies of the buildings in the Metaverse. The total asking price for the package is $25 million.
The property is owned by the former Miami Beach Mayor, Phillip Levine. It has been on the market since early 2021. Although the property has received multiple offers, the company stated that they believe they could lure in a big tech company with the Metaverse addition.
Metaverse Group, a significant virtual real estate owner and developer, has so far only created representations of the virtual property. According to Matt Zanardo, the firm’s consulting head, it will wait until Inhouse finds a buyer to completely build it out and choose the metaverse where it will reside.
According to Inhouse’s owner, “Companies and brands in our line of business were entering the metaverse, and we saw there was probably going to be a need for a connection to the real world.”
Recently, a number of organizations and brands have entered the metaverse recent months, and the feasibility of the virtual real estate industry has yet to be shown.
If the company succeeds with this deal, this will be the first-ever commercial/metaverse purchase and will forever change how commercial properties are presented to developers as well as other potential buyers.
Sixty Sixty Condo Hotel Sold to Miami-Based Investment Group for $24 Million
In a previous foreclosure fight among owners and developers, the Sixty Sixty condo-hotel in Miami Beach has been sold for $23.5 million to a buyer who intends to repair as well as add to the waterfront development.
The 82-key condo-hotel is located at 6060 Indian Creek Drive along an inlet off of Biscayne Bay but also features views of the ocean. Integra Investments along with Sagar Desai’s Activate Hospitality sold the property to Bloom Hotels, under the umbrella of Bloom Ventures. The founder and CEO of Bloom is David Harari, who is located in Miami.
The CEO of Integra Victor Ballestas stated, “ripe market conditions created an opportunistic circumstance for the sale,” after stating he had no intention of selling the development.
The Schecher Group originally sold a majority of the units in 2020 to Integra and Activate for $15 million, then later bought the rest of the units in 2021. The company was then accused of a takeover although Schecher stated that the unit owners owed $9.4 million in homeowner association fees.
Bloom Hotels utilized Sheridan Capital to finance the property for a loan of $17.3 million. There have been talks of Bloom increasing the room count and bringing Canopy or Tapestry (Hilton brands) to assists with operations. Some plans include modernizing the property as well as adding a marina to the development.
The owners of Downtown’s Miami Metromall seem eager to unload the 33,000 square foot development site. They have issued a call for offers that expires this Monday. Once the existing structure is demolished, a new tower up to 80 stories could be built.
Located at 1 NE 1st Street, the property offers an attractive address as well as a super attractive location. Looking at the map, you can see that the site is extremely convenient to the Miami Metromover to travel throughout the Downtown area, Government Center to travel throughout the county, All Aboard Florida to travel to Orlando, countless local government offices and the world-renowned Downtown Miami Diamond District. WeWork is also opening a flagship co-working space just steps away in the historic Security Building. The only thing it doesn’t have is water frontage.
How much do you think they will garner from the sale?
Miami Metromall in Downtown Miami Offered For Sale As Potential 80 Story Tower
The Miami Metromall, or First on First (as the owners are now calling it), is offered for sale in Downtown Miami. The site boasts over 33,000 square feet of developable land after the current structure is demolished and is zoned for a tower up to 80 stories.
Located at 1 NE 1st Street, the property offers an attractive address as well as a super attractive location. Looking at the map, you can see that the site is extremely convenient to the Miami Metromover to travel throughout the Downtown area, Government Center to travel throughout the county, All Aboard Florida to travel to Orlando, countless local government offices and the world-renowned Downtown Miami Diamond District. WeWork is also opening a flagship co-working space just steps away in the historic Security Building. The only thing it doesn’t have is water frontage.
Given the fact that the area has 235,000 daily visitors, paired with recent land sale comparables of $600+ per square foot, this offering is very attractive. While there is no disclosed asking price, I could realistically see a win-win feasible deal for anything up to $23 million. If a developer were to pay $23 million, then build the maximum 774 units on the site, they would essentially incur a cost of $30,000 per unit on their land buy. That holds par with typical development costs for semi-luxury to luxury condos, but there is still the fun negotiation zone, so it looks like Downtown Miami has a viable opportunity!
What do you think? What would be best suited for this parcel?
If you would like more specifics, just let us know.
Related Companies Buys Brickell Heights Retail Space For $12.2M
I know what this sounds like, Related built Brickell Heights, so how could they sell the retail portion to themselves? What many people don’t realize is that Related Group’s luxury condo development division is only one portion of what its parent company, Related Companies, focuses on. They also have divisions for luxury rental developments, commercial development, even affordable/workforce housing. It is only natural that they should want to pounce on an amazing retail space in a thriving neighborhood that is poised for another growth spurt.
Yesterday, Related Group sold the 30,000 square foot retail space that was recently leased by Equinox along with the 6,000 square foot space that will soon be home to SoulCycle to Related Companies for $12.2 million.
“The closing of Equinox and SoulCycle units Brickell Heights is another step forward in our efforts to transform South Miami Avenue into a vibrant, pedestrian friendly corridor in the same vein as Lincoln Road. Brickell is thriving, and these closings show a long-term commitment to further establish the area as a bustling neighborhood to live, work and play. Our buyers at both Brickell Heights and SLS LUX are excited about these changes and can’t wait to start living the lifestyle,” said Carlos Rosso, President of the Related Group’s condo division.
Aside from the A+ location, the fact that both spaces have newly-signed long term leases with A+ tenants makes them among the most attractive retail investments in the neighborhood. The exact terms of the leases have not been shared.
Despite the high sticker price, it appears that Related gave itself quite a bargain when you consider the size of the space. With a total of 36,000 square feet of leasable space, Related Companies paid just $339/square foot. Just next door, 8,015 square feet of raw space is being marketed for $10.5 million, or $1,310/square foot. Since it is raw space, there is currently no lease income and it is offered for almost $1,000/square foot more than Related Companies paid!!
Fifteen Group Sells Downtown Miami Development Site For $37.25 Million
Fifteen Group has announced its sale of the FedEx building at 200 South Miami Avenue in Downtown Miami. They purchased the property in 2014 for $19 million and have now sold it for $37.25 million, according to their news release.
“This transaction is an excellent example of what Fifteen Group has been doing for years – acquiring undervalued assets and creating value through aggressive asset management,” said Justin Toal, Chief Investment Officer and Senior Principal at Fifteen Group in the news release. “In this case we were able to negotiate a long-term extension with FedEx at an attractive rent and subsequently offer an excellent product to the investment market. This is a highly desirable, urban core location with in-place entitlements for a high-density project. In the interim, the new owner has an investment grade tenant.”
The site is zoned for up to 2 million square feet and 1,395 units if the new owners choose to redevelop it. Otherwise, they have a long-term investment grade tenant. FedEx recently renewed their lease until 2029. Beginning in 2019, they will pay $14.82/square foot for the 110,000 square foot facility with 2.5% increases each year.
The Real Deal reported in May that a call for offers had been issued on the property and the expectation was that it could sell for as much as $40 million. You will recognize the site as the FedEx center just north of the I95 ramp to Downtown Miami. What do you think would be nice to build there?
Brickell Heights’ Retail Space Hits the Market for Rent or Sale
Now that Brickell Heights has opened its doors and Equinox has announced its opening date, let’s talk about the last remaining opportunity in the streetscape of Brickell’s newest project. There is one remaining commercial unit on the South side of the building under the West tower that is available for lease or purchase.
The space is bordered on one side by SoulCycle, which is slated to open toward the end of 2017 (once their interior build-out is complete). It encompasses a total of 8,015 square feet, but is divisible into two units as shown in the floor plan in the property brochure below. Just across the street is Mary Brickell Village, with restaurants, shopping and Publix as the grocery anchor.
Due to its size and location, I foresee a nice restaurant or lounge for the space. It could also be successful for a daycare or preschool concept. The seller is represented by Fabio Faerman from Fortune, who informed us that the asking price is $85/square foot for a 10 year lease, or $10.5 million for purchase.
What concepts do you think would be most successful for the space? To set up a tour for your concept, contact us here.
Four Ambassadors’ Waterfront Restaurant Space To Be Redeveloped As ‘Brickell Bay Boardwalk’
A long underutilized stretch of waterfront restaurant space is being offered for lease with a redevelopment plan, according to an offering summary we received this week. Many people would be surprised to learn that there is a nearly 15,000 square foot waterfront restaurant underneath the Four Ambassadors at 8th Street & Brickell Bay Drive. At long last, a redevelopment plan is in place.
The Brickell Bay Boardwalk will be a 14,354 square foot restaurant space with 160 feet of linear bayfront space and an option for tenant docks. Once completed, the restaurant will have beautiful views of the Biscayne Bay and Brickell Key. The Mandarin Oriental is just across the bridge and Brickell City Centre is just 2 blocks to the west.
After a 6 month rent abatement for build-out, the space is offered for $96/square foot NNN with $14/square foot CAM charge. The space is also divisible in to two restaurant spaces of 5,260 square feet and 9,094 square feet. It looks like an interesting addition to Brickell and a great use of the space! What do you think?
Panorama Tower Offers Their Retail Space For Lease
The tower is still rising into our skyline, but Tibor Hollo’s retail space in Panorama Tower is now available for lease. The spaces are located on Brickell Bay Drive, not quite a main thoroughfare through Brickell, but a popular workaround for people who are looking to avoid the traffic on Brickell Avenue and South Miami Avenue.
There are currently four spaces available, asking $65/square foot with a $17/square foot common charge. Here is the breakdown of each space:
Ground Floor – 9,520 square feet. This space will be made available in late 2017 and works out to $51,500/month at asking price. Since it is such a huge space, I see a restaurant as being the best fit.
Second Floor – 9,561 square feet. This one is currently available according to the marketing material. It includes a lobby-level entrance, so would likely be a good fit for some sort of exclusive club. Remember the Miami City Club from a few years back? This space won’t offer the same views that the Miami City Club once boasted from the top of the Wachovia Tower, but whoever the ultimate tenant is could do something interesting with the buildout to make it enticing. The asking price here is $51,750/month.
Second Floor – 1,048 square feet. For $5,675/month, I see this as being a good fit for a salon or boutique of sorts. We represented a client a few years back who took a similar amount of space for a boutique and has made a very nice name for themselves since. Perfect size for a boutique. It could also be a smaller cigar bar that is a nice place for businessmen who work in the nearby buildings to talk shop over a glass of scotch before heading home for the day.
Second Floor – 2,767 square feet. At $15,000/month, this will likely end up as a restaurant, real estate office or a new gym concept.
We have seen leases in similar locations over the recent months in the range of $45/square foot. It will be interesting to see how Brickell City Centre’s opening affects the retail prices over the coming months. While Brickell City Centre was under construction, we experienced very few available spaces for retail clients that were not restaurants or lounges. Now that the buildings are opening up, we’re seeing many new signs go up, which is refreshing. What do you think would be a good fit for this space? Do you think the prices are on point, or do they need to be negotiated a bit?
