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Miami Beach Leaders Want Office-Housing Towers Off Lincoln Road. Will Locals Approve?

If Miami Beach residents approve, two development projects would convert three parking lots off Lincoln Road into apartments, plus office and retail space. The city-approved plans are part of a larger effort to diversify the community’s economy amid South Florida’s migration of professionals working largely for tech and financial services companies.

Miami Beach voters will decide in either August or November whether the city should enter into public-private partnerships with two development teams, said Miami Beach Commissioner Ricky Arriola, sponsor of the plan to build on the three surface parking lots. The city needs at least 50% of voters to approve it. Developers proposed two buildings with 43 apartments, 187,000 square feet of office space, 33,000 square feet of retail and 715 parking spaces, more than double the number of existing spaces. The buildings would rise up to 80 feet.

Miami Beach officials approved two bids in February after receiving 18 submissions. The move comes two years after the commission first issued a request for proposals in late 2020 and later issued a formal call for bids. Lincoln Road Property Owners — comprised of Integra Investments, Starwood Capital Group and the Comras Company — plan to redevelop the lot between 17th Street and Lenox Avenue and 1040 Lincoln Road into two buildings with office and retail space. The Peebles Corporation, Scott Robins Companies and former Miami Beach Mayor Philip Levine aim to convert the lot at 1664 Meridian Ave. into a building with apartment rental, office and retail space.

“The city is doing everything it can to diversify the local economy,” Arriola said. “We are taking surface parking lots that are not the best use of public land into something that will make it into an economic engine for the city.”

Developers would undergo the site plan and design review approval steps once receiving support from residents, Arriola said. Construction would start in 2023 and the developments would be completed in 2026. The Lincoln Road Property Owners said in a joint statement, “This development will position Miami Beach to attract new businesses, create sought-after jobs, spur additional private sector investment and create new revenue that will enable Miami Beach to continue investing in infrastructure and quality of life initiatives.” The housing piece will benefit the community, Scott Robins Companies President Scott Robins said, because “people want to live close to their office.” Demand in Miami Beach is anticipated to remain high for office space. “The world that we live in is full of risk,” but “we are not talking about a ton of space,” said Bob Orban, principal in the Miami office of commercial real estate market analytics firm Cresa. Businesses will benefit from an increase in the daytime population, said retail expert Beth Azor of Azor Advisory Services in Weston.

Some Lincoln Road business owners are looking at the long-term gain, despite a potential shortage of parking spaces during construction, including V&E Restaurant Group CEO Matias Pesce. His firm owns restaurants Vida & Estilo, Havana 1957, La Cerveceria de Barrio and Cortadito Coffee House. “The shortage of parking may have an impact on guest traffic,” Pesce said, “but we know it will be for the best.” Another challenge would be a lack of affordable and workforce housing, Orban said. Robins said he and his partners are in talks with the Beach officials to possibly include affordable or workforce housing. “For the people that work for these financial services firms that are going to answer phones and type documents,” Orban said, “it would be more attractive in terms of having something affordable close to their place of work.”

 

Source:  Miami Herald

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8-Story Sister Wynwood Office Buildings Get OK

As the popular Wynwood Arts District evolves it is enjoying a boom in new office space, including a large mixed-use project that will bring a working campus of two 8-story sister buildings at Northwest Fifth Avenue and 27th Street.

WYN ON 5TH NORTH, at 2701 NW Fifth Ave., and WYN ON 5TH SOUTH, at 2661 NW Fifth Ave., are proposing together nearly 250,000 square feet of offices.

Developer-applicant RAL Tricap Wynwood LLC presented the project March 16 to the City of Miami’s Urban Development Review Board, which recommended approval.

The northern building is to offer 106,414 square feet of offices and 6,961 square feet of commercial-retail use, along with 268 parking spaces and 33 bike spaces. The southern building is designed with 139,254 square feet of offices, 15,999 square feet of commercial-retail use, along with parking for 377 vehicles and 36 bike spaces.

The buildings will total 578,325 square feet of floor area.

Each building will have an enclosed garage and an activated roof deck.

The developer seeks several waivers:

  • Increase maximum lot coverage to 35,254 square feet, or 88.6%, where up to 80% is permitted.
  • A less than 30% reduction in total required parking spaces for a project within a transit corridor area.
  • Above-ground parking on a secondary frontage to extend into the second layer beyond 50% of the length of the frontage.
  • Parking contained within a mezzanine space.
  • Extensions above the maximum height for stair, elevator, mechanical enclosures, habitable space, or non-habitable rooms.

The board voted to recommend approval with a recommendation to study alignment of the entrances at street level, and a condition to study the proposed artwork on the façade at street level to have it be more Wynwood-like.

 

Source:  Miami Today

 

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800-Plus Apartments Could Break Ground Near Aventura Mall, Future Brightline Station

Mill Creek Residential has proposed a 15-story apartment complex just west of the Aventura Mall, near a future Brightline passenger rail station.

The Boca Raton-based developer filed a pre-application with Miami-Dade County for the 4.85-acre site at 2681 N.E. 191st St., on the east side of West Dixie Highway. Mill Creek Residential has it under contract from Miami-based WD 2600 LLC, managed by Bruno Bloch in Miami.

The site currently has an 18,407-square-foot warehouse constructed in 1971 that’s mostly used for truck parking.

It’s located in the Ojus neighborhood west of Aventura.

This particular site is two blocks south from where a Brightline station is under construction.

Modera Aventura would have 840 apartments, 15,245 square feet of retail facing West Dixie Highway and 1,096 parking spaces. It would be developed in two phases of equal size. The two buildings would have separate pools.

 

Source:  SFBJ

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The Numbers Behind South Florida’s Multifamily Boom

With investors and renters continuing to flock to South Florida, the region has proven itself to be a promising real estate market and the multifamily sector has been strong. There were 603 multifamily properties sold in South Florida during 2021, totaling $11.4 billion. This is more than double the previous $5.5 billion annual sales record set in 2016. Not to mention, all three South Florida counties experienced record average per-unit sales last year: Miami-Dade came in at $278,432, Broward showed strong performance with $281,163, and Palm Beach topped the others with $292,221. Most of these sales involved out-of-state private capital investors, eager to get into the growing South Florida commercial real estate market.

Because multifamily has performed so well in South Florida, it’s not surprising that rent rates have also gone up. Last year, effective rents increased by 19.7 percent in Miami-Dade, 23.3 percent in Broward and 32.1 percent in Palm Beach. Average rent rates were $1,997 per month in Miami-Dade, $2,073 per month in Broward and $2,280 per month in Palm Beach. Factors contributing to the strong rental demand include population growth, a surge in single-family housing pricing, the snapback in rent growth from a static 2020, and a net absorption of almost 20,000.

We have also seen the value-add upside deals becoming more commonplace once again and savvy investors are finding South Florida an attractive area for their future investment opportunities. Rental demand is also growing due to the business-friendly nature of South Florida and the ability of employees to work remotely with many choosing South Florida as their new home. Over the next five years, it is projected that 14,800 new renters will enter the South Florida market each year, according to Cushman & Wakefield’s multifamily forecast for 2022. This is based on historic homeownership rates where 60 percent of individuals enter into homeownership and 40 percent choose to rent, though that is subject to change.

The demand for multifamily properties and rising rental rates has caused vacancy to go down and absorption to skyrocket. In 2021,  the vacancy rate in Miami-Dade went down from 6.7 percent to 3.2 percent; 7.4 percent to 3.2 percent in Broward; and 7.9 percent to 4.1 percent in Palm Beach. This marks the first time in almost 20 years where all three counties have sub-5 percent vacancy rates. We saw a similar trend with absorption, with 19,136 net units absorbed in South Florida in 2021. Over the same period, there were only 7,362 new units delivered and added to the market. Positive net absorption fueled by strong rental demand has created limited rental supply despite new apartments being built.

The region’s population influx was the main driver behind high absorption levels in 2021. South Florida’s net absorption  reached almost triple the new supply added to the market. Since 2017, the region’s population has grown by 135,130 and during the same period 34,499 new apartment units were built. This means one unit was built for every 3.9 net new people to the region. Over the next five years, South Florida is expected to see a positive net migration of 323,062 people. Using the same ratio, the region would need over 82,000 new rentals to keep pace with the population growth for the next five years.

Looking ahead to what’s in store for 2022, it’s expected that out-of-state private capital investors will continue to remain most active in the multifamily market as they opt to add more of these properties to their portfolios instead of office or retail. Other trends that we saw in 2021 will likely continue into 2022, include new construction increasing but in-line with absorption levels, rents continuing to increase, but not at the same levels witnessed in 2021, and the migration of capital and new residents to South Florida. The market is ideally positioned for continued long-term growth and sales activity will be strong thanks to positive market fundamentals.

Chris Owen is director of Florida research at Cushman & Wakefield. Calum Weaver is an executive managing director for Cushman & Wakefield’s multifamily group in Florida.

 

Source:  Commercial Observer

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Wynwood Office, Retail And Parking Portfolio Hits Market For $28M

A Wynwood real estate investor is looking to cash out of an office, retail and parking portfolio in Miami’s hottest neighborhood.

An entity managed by Steve Rhodes is listing a three-story office and retail building at 2121 Northwest Second Avenue and a one-story retail building at 2085 Northwest Second Avenue, as well as a parking lot at 172 Northwest 21st Street that can be a development site.

Rhodes’ asking price is $27.5 million, according to a brochure prepared by DWNTWN Realty Advisors, which is marketing the portfolio.

In 2013, Rhodes’ entity, 170 NE 40 Street Inc., bought the property at 2121 Northwest Second Avenue for $619,000 and completed the 27,513-square-foot building in 2016, records show.

 

Source:  The Real Deal

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Industrious To Open 40,000-Square Foot Coworking Space In South Beach

Industrious, a coworking space provider based in New York, is coming to South Beach with a new 40,000-square-foot location.

Peri Demestihas, Industrious’ senior director of real estate, said his company aims to open its fifth South Florida location at 350 Lincoln Road this summer. It will occupy the space previously filled by WeWork from November 2014 until August 2018, when the company was forced to scale back its operations.

“We are really excited about it. South Florida is the hottest market in the country for us,” Demestihas said.

Nancy Cibrano, asset manager for The Wings Group, the New York-based landlord of the Lincoln Building, stated that Industrious beat out other coworking office companies who sought WeWork’s old space. The real estate agency paid $14 million for the five-story Lincoln Building in April 2008. The property was built in 1946.

“After a very long vetting process, Industrious was a clear choice with its proven success record in being the highest-rated flexible workspace provider,” Cibrano said in a press release.

The South Florida office market in general has been thriving thanks to the migration of out-of-state companies into the region as well as local expanding companies. Brokers credit the state’s low regulations, good weather, and lack of income tax for the office market upswing.

 

Source:  SFBJ

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New-To-Market Tenants Spur Wynwood Office Demand

Wynwood is becoming Miami’s busiest office submarket as demand for space is far surpassing current supply due to its attractive live-work-play environment, with more than 80% of its recently leased office tenants being new-to-market and a million square feet of office space in the pipeline.

Coming up new-to-market tenants in Wynwood in the first quarter of the year include Blockchain.com at CUBE Wynwd at 222 NW 24th St, with 21,952 square feet of office space; OpenStore at the Gateway at Wynwood in 2916 N Miami Ave., with 14,914 square feet of office space; and Neocis at 545 NW 26th St., a medical equipment manufacturer leasing 38,000 square feet of office space.

Other firms opening shop in Wynwood include Barry’s Bootcamp, a new 9,000-square-foot fitness center in 2214 NW First Place; Actuate Law, a new 3,000-square-foot law firm in the 545 Wyn building; and Levine Leichtman Capital Partners, who opened in 4,020 square feet in 112 NE 41st St. All of these opened in the last quarter of 2021.

DWNTWN Realty Advisors led a $49 million sale of the Wynwood Annex office tower in Wynwood, which has 60,000 square feet of rentable office space, to new-to-market San Francisco investors Brick & Timber Collective. Wynwood Annex has leased all of its office space within six months to new-to-market venture capital, technology and finance firms such as Founders Fund, Live Nation Entertainment and Atomic Venture Capital.

 

Source:  Miami Today

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Miami Beach To Seek Development Proposals For 41st Street Surface Parking Lots

Miami Beach leaders want to kickstart redevelopment along the city’s 41st Street commercial corridor by asking developers to propose mixed-use projects on six city-owned parking lots.

The Miami Beach City Commission, in a 6-1 vote on Wednesday, authorized Miami Beach staff to seek letters of intent from developers interested in redeveloping parking lots at 4049 Royal Palm Avenue, 4166 Royal Palm Avenue, 525 West 40 Street, 4000 Chase Avenue, 4141 Alton Road and 836 West 42nd Street.  41st Street, in Mid-Miami Beach, is also called Arthur Godfrey Road.

Miami Beach Mayor Dan Gelber said seeking letters of intent is a preliminary step, geared to finding out what developers think can be built on the parking lots.

“This says if you have a great idea, we are open to considering it,” Gelber said. “Let’s not prejudge it.”

 

Source:  The Real Deal

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Miami Beach Mayor Announces List Of New Projects – New Cancer Center, 3-Acre Public Park And Push To Renovate Lincoln Road

Miami Beach Mayor Dan Gelber on Monday rattled off a list of new projects coming online this year — including a new cancer center, a 3-acre public park and a push to renovate Lincoln Road — during his annual State of the City speech.

Gelber, speaking from the stage at the New World Center, announced the development of the $250 million Irma and Norman Braman Cancer Center at Mount Sinai Medical Center.

With Braman, the billionaire philanthropist, and his family in attendance, Gelber showed a rendering of the sleek new building that he said will be an “ultramodern” facility overlooking Biscayne Bay. He also announced the opening of a new 3-acre public park at Sixth Street and Alton Road to be built as part of the Park on Fifth condo development. Other park projects, like the conversion of an old Mid-Beach golf course into a sprawling new park, are expected to break ground in months, he said.

“Our goal: No city anywhere should have better parks, promenades and outdoor spaces than we do,” Gelber said.

Gelber said that in April he will also advocate for $60 million in renovations for Lincoln Road using property taxes from an anti-blight Community Redevelopment Agency, or CRA. Upgrades would include more fountains, cultural event space and a children’s park.

 

Source:  Miami Herald

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Turnberry Proposes Office/Retail Project Near Aventura Mall

Jackie Soffer’s Turnberry Associates wants to build a 14-story office and retail project near Aventura Mall — and link it through a pedestrian overpass to a future Brightline station.

Turnberry Associates is asking the city of Aventura for conditional use approval for the extra two stories of height from the currently allowed 12 stories on the 3.4 acre site at 2750 Northeast 199th Street, according to the city’s commission agenda documents.

The project, called Two Turnberry, would have 240,000 square feet of offices and 20,000 square feet of retail.

Two Turnberry also would have a bank, food and beverage concepts, and space for Brightline station-related activities, although details are yet to be finalized, according to agenda documents. The building would have an access point to a planned bridge over Biscayne Boulevard leading to the Brightline station, which is currently under construction and is expected to be completed this year.

 

Source:  The Real Deal

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