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Lender Takes Control Of The Collective’s Wynwood Dev Site Through Foreclosure Auction

The Collective lost its planned co-living development site in Wynwood to its lender through a foreclosure auction.

New York-based Gamma Real Estate took control of the property at 166 Northwest 29th Street by placing a “credit bid,” or an offer using its existing debt of $27.6 million, to win the UCC foreclosure auction last Wednesday, according to a person familiar with the matter.

Miami’s Urban Development Review Board in May approved a mixed-use project for the site. The Collective’s plans included an eight-story to 12-story co-living building with 180 residential units, 70 lodging rooms and 9,508 square feet of ground-floor retail. Units would range from studios to six-bedroom apartments geared toward young professionals, according to the developer’s proposal.

Gamma Real Estate, led by the Kalikow family, sought to foreclose on the Wynwood site amid The Collective’s broader financial troubles. Occupancy levels at its co-living locations dropped during the pandemic and forced delays on its projects in the pipeline. In September, the British company fell into administration, the U.K equivalent of Chapter 11 bankruptcy, after failing to find a buyer.

The auction was conducted by Matthew Mannion of Mannion Auctions.

The Collective has also faced foreclosures on its properties in Brooklyn.

In January, the firm sold its development site in Brooklyn’s Williamsburg for $54 million, avoiding a foreclosure. The proceeds went to pay off a $49 million mortgage held by Gamma Real Estate. The company recently lost another Brooklyn property in Bed-Stuy to a foreclosure.

The Collective still has locations in West London and Canary Wharf in the U.K., and The Paper Factory in New York City’s Long Island City neighborhood, according to its website.

 

Source:  The Real Deal

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Aging Beachfront Condo Towers Are Hot Properties In Miami Beach

Developers are targeting hundreds of aging condo apartment buildings in Miami Beach for acquisition so they can tear them down and build new luxury residential towers, zeroing in on towers approaching a 40-year deadline to recertify structural integrity.

At least eight waterfront condo buildings in Miami Beach currently are involved in discussions for sale to developers, according to brokers and developers surveyed this week by the Wall Street JournalWSJ said developers including Related Group and Starwood Capital Group are pursuing aging waterfront properties in the Miami area.

Florida law requires that 80 percent of condo unit owners agree to a sale before a condo building can change hands, often forcing developers to go through a tedious process known as condo termination, effectively negotiating the purchase of each unit with its owner.

The requirement in South Florida that buildings older than 40 years must be recertified for structural integrity is creating a reckoning of sorts for the existing inventory of beachfront apartment buildings in the area, a majority of which date back to the 1970s or earlier.

The viability of older apartment towers in the Miami area has come into question in the wake of the partial collapse of a 12-story beachfront condo building in nearby Surfside last summer that killed 98 people.

The collapse in Surfside of one of two beachfront Champlain Towers, which were erected in 1981 and found to be in need of significant structural repairs, drew attention to a 2020 Florida International Survey of the coast which reported that much of the ground under Miami Beach is slowly sinking.

According to WSJ, hundreds of apartment buildings, representing more than two-thirds of the inventory in the Miami area, are either approaching or more than 40 years old.

After the Surfside collapse, numerous Florida lawmakers said they would enact tougher inspection requirements for beachfront apartment buildings as well as retrofit funding requirements for condo owners, but no action was taken before the state legislature session ended last month.

Repair costs to retrofit aging condo towers, which must be assessed and then paid by the unit owners, can exceed by far the building’s overall value as well as the ability—or willingness—of condo owners to pay these costs. Failure to make needed repairs can set off a domino effect of assessment defaults, budget shortfalls or building code violations for unfinished repairs.

The best-case scenario for developers who want to buy a condo building is for all of the condo unit owners to agree to sell as a group. Prior to 2007, 100% agreement to sell was required by Florida law. In 2007, Florida enacted a condominium termination statute that reduced the threshold of agreement by unit owners needed to sell the building to 80 percent.

With most of the prime waterfront locations in Miami completely built out and the demand for luxury condos skyrocketing, many developers are offering condo unit owners sale prices much higher than the market rate in an effort to reach the condo termination threshold, WSJ said.

Owners of condo units who are on fixed incomes are confronted with choosing between a sale offer—which may not completely cover their debt on the property—and looming repair assessments they can’t afford, according to the WSJ report.

 

Source:  GlobeSt.

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Miami Beach Apartment Complex Could Be Redeveloped Into Hotel

An apartment building in the North Beach area of Miami Beach could be partially demolished and redeveloped.

The city’s Historic Preservation Board is scheduled May 10 to hear the plans for the 0.34-acre site at 7418 Harding Ave. The property currently has three apartment buildings of two stories each with a combined 20 units. It was built in 1946.

Bay Harbor Islands-based 7418 Harding Ave LLC acquired the site for $3.55 million in November 2021.

Under the proposal, one of the existing apartment buildings would be demolished, a five-story hotel would be constructed, and the remaining two buildings would be converted into a hotel. When completed, the project would have 48 rooms, with 16 in the new building and 32 in the converted buildings. The new building would also have a lobby and a suite with an enclosed garden. A pool would be developed on the ground floor.

The project would cost about $4.6 million, according to the application.

“The sharp design features, varied balcony lengths, and purposefully placed fenestration will complement the existing courtyard and architectural character of the North Shore Historic District,” Miami-based attorney Michael W. Larkin stated in the application.

Larkin said the project may not be heard at the May 10 meeting as scheduled, but the owners intend to move forward with the project.

Mttr Mgmt in Miami is the architect of the project.

With hotel occupancy reaching pre-pandemic levels, more developers are looking for opportunities to build hotels. By utilizing adaptive reuse for part of this project, the developer would save on the expense of having to build the hotel completely from the ground up.

According to the application, 7418 Harding Ave LLC is owned by Edgardo Hugo Zimmerman, Elias Daniel Perez, Victor Daniel Penchansky, Isaac Daniel Gielczynsky, Nestor Daniel Zimmerman, Paula and Gabriel Boano, and Javier Landaburu.

 

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Truck Sales Lot With Potential For 400 Rental Units Sold In Allapattah Neighborhood

A truck sales lot in the Allapattah neighborhood is slated for redevelopment after it was sold for $9 million.

Land Trust Service Corp. No 2479-36, of Lake Wales, sold the 3.08-acre site at 2479 N.W. 36th St. to Bindi Investments LLC, managed by Copag Registered Agents in Miami. Cesar Carasa of One Stop Realty represented the seller in the deal.

The property last traded in 2016, when it was seized following a foreclosure lawsuit. It operated as a truck and heavy equipment dealership.

Carasa said the property is certainly headed for redevelopment under the new ownership. The T6-8-O zoning permits eight stories and 140 units per acre, so there could be over 400 units on the site. He noted it’s four blocks west of the Earlington Heights Metrorail Station, so a developer could petition for a parking space reduction to encourage mass transit ridership.

“It will probably be developed with rental units,” Carasa said. “Land like this would cost $20 million or $30 million in Brickell. This is great for people who can’t rent in Brickell. They will come to this area because the rent is a little lower.”

 

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Strong Demand For Office Space At Wynwood Plaza, Utilities Deal Inked

The developers of The Wynwood Plaza have signed a deal for water and sewer utilities.

Active negotiations for 75,000 square feet of office space at the project are now underway, according to a release last month by representatives of co-developer Carpe Real Estate Partners.

Some of the world’s “most creative companies” are among those who have expressed interest in the new project, Carpe said.

Records show that the developer signed a deal for water and sewer utilities at the site late in late March. Demolition is already underway there.

According to the newly signed utilities agreement, Wynwood Plaza will include:

  • 212,962 square feet of office space
  • 509 apartments
  • 25,550 square feet of retail

Plans previously submitted to the city also show a landscaped 25,000 square-foot outdoor public plaza, and a parking garage with 668 car spaces and 954 bike spaces.

 

 

Source:  The Next Miami

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South Beach Office Building Sells For $52M

East End Capital and GreenOak Real Estate offloaded a South Beach office building for $52.3 million, property records show.

The four-story building, located at 555 Washington Avenue, is in a district known for its party scene, just a block from both 5th Street and nightlife mogul David Grutman’s popular Goodtime Hotel.

The 137,579-square-foot property offers 243 parking spots, 46,000 square feet for offices and 22,000 square feet of street-level retail, most of which is leased to CVS.

For the buyer, the Boston-based Davis Companies, the purchase appears to be its first office foray in South Florida.

The sellers paid $38 million in 2018 for the mixed-use property, built in 2001. The $14 million profit in just four years reflects Miami Beach’s growing appeal for top executives.

 

Source:  Commercial Observer

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Art By God Building In Wynwood Could Be Redeveloped

The former home of the Art by God taxidermy and fossil store in the Wynwood Arts District area of Miami could be demolished to build a mixed-use project.

The Wynwood Design Review Committee will consider plans for Wynwood Urby on April 12. It would be located on the 1.29-acre site at 26-60 N.E. 27th St. and 61 N.E. 26th St.

The property, which has a 13,622-square-foot building that once housed Art by God, was acquired for $15.6 million in 2021 by 26 60 NE 27th Street LLC, a partnership between Hoboken, New Jersey-based Ironstate Development Group and New York-based Brookfield Properties.

Ironstate and Brookfield have teamed to build about 3,000 condos under the Urby name in New York, New Jersey and Connecticut since 2016, said Steven Wernick, the Miami attorney who represents the developer in the application. This would be their first Urby project in Florida.

Wynwood Urby would total 371,632 square feet in eight stories, with 289 residential units, 17,238 square feet of commercial space, and 197 parking spaces, including 40 for electric vehicles. There would be a fitness center on the third floor and a rooftop amenity deck including a pool, grilling stations and a garden room.

Units in Wynwood Urby would range from 443 to 893 square feet.

 

Source:  SFBJ

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Former Kushner Exec Buys Miami Development Site In Wynwood

New York developer Jenny Bernell picked up a site in Miami.

Bernell, former executive vice president of development at Kushner Companies, paid $19.1 million for the assemblage at 2000 North Miami Avenue and 2021 Northwest Miami Court in Miami’s Wynwood neighborhood. She acquired the 1.4-acre development site via her new company, Clearline Real Estate, according to the listing brokerage.

A firm linked to LGL Realty, led by waste management and recycling principals Charles Gusmano and Charles Lomangino, sold the land.

Metro 1 founder Tony Cho and managing director Andres Nava represented the seller, LGL Realty. The site was on the market for $21.5 million, Nava said.

Bernell is founder and CEO of New York-based Clearline, which has multifamily and mixed-use projects in Florida, New York, Tennessee and New Jersey. Its planned pipeline totals about 1,500 multifamily units, according to Bernell’s LinkedIn. She worked for New York-based Kushner for nearly seven years until she left in early 2021.

Clearline plans a mixed-use project on the site that will likely include apartment rentals. Nava said the assemblage is the last undeveloped property in the area with zoning for more than 300 units. The land’s T6-8-O zoning allows for 310 units and 12 stories of development under Wynwood’s NRD-1 overlay district.

The seller paid $5.6 million for the properties between 2003 and 2007, records show.

 

Source:  The Real Deal

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‘A Gift To The City.’: This $4 Billion Development Is Creating An Outdoor Museum In Miami

At first glance, Miami Worldcenter, a sprawling multi-use complex in the heart of downtown, seems like South Florida’s premier spot to spend, spend, spend.

Worldcenter has been unveiling one attraction after another: an open-air “high street retail” center, a 60-story luxury condo that changes colors and an infinity sky pool overlooking the city.

Its latest addition, though, is completely free.

Miami Worldcenter is announcing a $5 million public art program to display museum-quality works at the complex to attract art-loving locals and tourists. The program, which cements Worldcenter’s place in Miami’s growing and profitable arts scene, has already completed its first public artwork: a massive mural inspired by nearby Overtown by artist Nina Chanel Abney.

“The art was something that had to be here,” said Benjamin Feldman, the executive vice president of Miami Worldcenter Associates, the development team behind the project. “It was integral to the project.”

Worldcenter joins the likes of the Design District and Aventura Mall to implement a robust public arts program alongside luxury and trendy stores.

The program was spearheaded by prolific curator and art dealer Jeffrey Deitch and the team at Primary, a Miami-based curatorial collective that focuses on public art. So far, Worldcenter has commissioned five artists for the project, including Viktor El-Saieh, a Miami-raised painter of Haitian and Palestinian heritage, and Woody De Othello, a Miami-born sculptor known for infusing his art with a sense of humor. Two to three new artworks will be unveiled this year, and agreements with more artists are in the works.

 

Source:  Miami Herald

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Rubells Expand Allapattah Art Space With $11M Industrial Building Purchase

SVN Commercial Realty completed the sale of 1090 NW 23rd Street in Miami, a 45,711-square-foot free-standing industrial property located on 1.49 acres in Allapattah to 1090 NW 23 Associates II, LLC, an entity managed by Jason Rubell and Mera Rubell, for $10.7 million.

Joel A. Kattan, SIOR and Anthony Peragine with SVN Commercial Realty represented the seller, Carrera Family Investments, Inc, and were the only brokers involved in the transaction.

The property was the former headquarters of the family-owned and operated Rex Discount which has since moved its operations to a 122,000-square-foot facility located at 3690 NW 62nd Street in Miami. Kattan and Peragine also represented the Carrera Family in that purchase in February of 2021.

“It has been an absolute honor to represent our clients in this sale, which is our fourth completed transaction with the Carrera family,” said Kattan. “We look forward to continuing our relationship with them. The property is located in the Allapattah submarket of Miami where explosive growth is taking place and it’s next door to the Rubell Museum, making the Rubell family the ideal buyers.”

 

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