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Miami Worldcenter Tower Project To Total 160,000 Square Feet After Land Purchase

The wellness component of the Legacy Hotel & Residences project at Miami Worldcenter is set to expand after the developer purchased a neighboring site.

Miami-based Royal Palm Cos., led by Daniel Kodsi, paid $4.45 million for the 7,500-square-foot property at 61 N.E. Ninth St.

Coral Gables-based Sin Bin, managed by Yueh-Chuan Shih and Chung-Shong Chang, were the sellers of the property, which has a 6,950-square-foot retail building.

The property last traded for $200,000 in 1996, so it had a huge gain in value. Back then, the Overtown neighborhood was an often-overlooked area, but now it’s been transformed by the $4 billion Miami Worldcenter mixed-use project.

Purchasing the additional land will allow the health center to total 160,000 square feet, a 60% expansion.

The general contractor of the project is Fort Lauderdale-based Moss Construction. It was designed by Miami-based Kobi Karp Architecture.

 

Source:  SFBJ

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Dolphins Owner Stephen Ross To Buy Deauville Hotel, Plans Luxury Complex In Miami Beach

Related Companies’ Stephen Ross is buying the historic Deauville Beach Resort in Miami Beach, enlisting star architect Frank Gehry to redesign the property.

The hotel, originally built in 1957, was the set of the famed Beatles performance for “The Ed Sullivan Show” in 1964. It’s said to have hosted President John F. Kennedy and Frank Sinatra.

The MiMo-style hotel has remained vacant following an electrical fire in 2017. The property fell into such disrepair that a Miami Beach official issued a demolition order in January, deeming the building structurally unsafe. A last-ditch effort to save the property, launched by the Miami Design Preservation League, failed last week when a Miami-Dade County board upheld the order.

The oceanfront property sits on 3.8 acres at 6701 Collins Avenue in North Beach, a historically working-class neighborhood that’s been gentrifying, thanks to Miami Beach’s soaring residential market during the past two years.

Ross has not revealed specific plans for the site, only divulging his intention to develop a “six-star hotel and luxury residences” designed by Gehry. The Pritzker-winning architect has designed iconic structures such as the Guggenheim Museum in Bilbao, Spain.

The Deauville project is “personal” for Ross, who partly grew up in Miami Beach and graduated from Miami Beach Senior High School.

“I know what this site means to the people of Miami Beach, and I know the potential to create a truly special development that honors the history of the Deauville while creating an iconic place for generations to come,” Ross said in a statement.

The Meruelo family bought the 540-room hotel for a mere $4 million in 2004, according to property records. After the 2017 fire, the property had been embroiled in a legal fight. In 2019, the Miami Beach government sued the Meruelos to maintain the 595,788-square-foot resort, as required for historically protected buildings. Some preservationists have accused the owners of letting the hotel decay on purpose, in hopes of tearing it down and building something new.

Miami Beach Mayor Dan Gelber said he would back a development project with Ross at the helm only because of Ross’ long-term vision.

“There are too many examples of folks buying and flipping parcels for quick payoffs, leaving the city with undeveloped and vacant properties for too many years,” the mayor wrote in an email to residents. “Steve is committed to making sure his design pays suitable homage to the original Deauville and wants to assure the entire neighborhood benefits.”

The developer is “not looking to increase density but needs more flexibility in the design possibilities,” Mayor Gelber added. It’s unclear whether Ross will retain parts of the original structure or move forward with a complete demolition.

Miami Beach residents will likely have a say. Mayor Gelber said he would ask the City Commission to put the development plans to a vote this November.

A number of questions remain unanswered, including whether Ross’ purchase has even closed. A representative for Related did not respond to a request for comment.

While the developer announced that he had bought the property — without providing a sale price — Mayor Gelber wrote that Ross had taken “the first steps to purchase the property” only last Friday by signing “documents that will allow him to acquire and control the parcel.”

It’s also unclear whether the project will be owned by Ross personally or his development firm, Related Companies, a powerhouse in New York’s real estate scene having built Hudson Yards and the Deutsche Bank Center, formerly known as the Time Warner Center.

Ross, who’s worth an estimated $8.2 billion, has a history of working outside of the firm he founded. After buying the Miami Dolphins in 2009, he renovated the Hard Rock Stadium, spending hundreds of millions out of pocket.

For Ross, the Deauville development represents another milestone in his growing South Florida real estate empire. Related Companies is in the early stages of developing an office tower in Brickell, one that could become Miami’s tallest. In West Palm Beach, Related has developed much of the city’s downtown, including a neighborhood-like shopping mall and an office building that nabbed Goldman Sachs as a tenant.

 

Source:  Commercial Observer

 

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Bakehouse Art Complex In Wynwood Gets City Grant For Building Upgrade

Miami city commissioners have chosen to give a sizable federal grant to help fund an organization that supports city artists.

At their latest meeting, commissioners allocated $2 million to the Bakehouse Art Complex Inc., a Florida not for profit corporation, to help pay for major improvements to its historic building at 561 NW 32nd St. in the Wynwood Arts District.

The complex is in an old Art Deco bakery and houses local contemporary artists, with studios and galleries open to the public.
The resolution was sponsored by Commission Chair Christine King.

The money is from American Rescue Plan Act (ARPA) of 2021 Coronavirus State and Local Fiscal Recovery Funds.

The city received American Rescue Plan Act funding to address Covid-19 and its impact on public health as well as address economic harms to households, small businesses, nonprofits, impacted industries, and the public sector.

The grant will help Bakehouse “undertake repairs and renovations to the structure and envelope” of its building, the resolution says.

A unanimous resolution had the commission “approving and confirming the city manager’s finding and recommendation that competitive negotiation methods and procedures are not practicable or advantageous to the city … (in this instance, and) waiving the requirements for said procedures.”

Bakehouse submitted a funding request to the city for ARPA funds in order to begin its repairs and renovations.

A city staff background memo on the fund request reads in part: “Bakehouse Art Complex is the only artist-purposed, non-profit-owned site of its kind and size in Miami’s urban core. It plays a major role in addressing a significant gap in the city’s cultural ecosystem, affordable spaces where artists can create, live, and engage with each other and with the greater community.”

“As real estate prices continue to rise, and with it the need for affordable work and living spaces for artists, it has the potential to leverage its land holdings in a way that can significantly increase the organization’s impact,” the memo reads.

Staff says redevelopment of Bakehouse ensures artists and art making will have permanence in the city, where real estate costs make this increasingly challenging.

The memo continues: “Due to the unique aspects of the Bakehouse addressing the need of the art community by providing a space where artists can create, it would be advantageous for the city to expedite the allocation and waive procurement requirements at this time.

“The Bakehouse Art Complex will undertake repairs and renovations to the structure and envelope of the organization’s existing building including addressing and upgrading electrical infrastructure, structural repair and remediation, life-safety issues, making necessary repairs needed for the 40-year recertification process, roof replacement, installing hurricane-impact window upgrades, updating building technology, and ensuring compliance with current building codes,” it reads.

In a letter to the city, Cathy Leff, director of Bakehouse Art Complex, wrote: “We believe with $2 [million], we can address, from now and over the next 24 months, immediate needed structural work and roof repairs. The remaining funds needed to cover other identified work will come from philanthropic donations and revenue derived when we finalize our partnership agreement to redevelop the 1.55 acres of our underutilized 2.3-acre campus.

“On that site, we hope to add critically needed affordable and workforce housing for artists and community members and rebuild some of our public community amenity and educational spaces,” she wrote.

Ms. Leff said about 70% of Bakehouse artists make less than $40,000 yearly.

“Several have lost their jobs and homes during the past two years as a result of the covid pandemic and are struggling to make ends meet. Three of our artists just this week lost their housing due to the doubling of their rent.

“We all know that the influx of new money, new residents, and new businesses to Miami during covid have impacted the cost of real estate, which has had a significant and detrimental impact on the communities we serve.

“If we wish to retain creative talent in Miami, all of which aligns with the City’s technology agenda, Bakehouse can be a model for and part of the solution for addressing affordability in both work and living environments and continue to provide workspace security and affordability to artists,” Ms. Leff wrote.

Bakehouse opened in 1985 to provide a permanent and affordable working home to artists of merit with financial need.

Community Development Block Grant funds from the city and Miami-Dade County were awarded then to help retrofit the abandoned bakery and convert it to a center of cultural production.

“The organization was intended to and has helped provide stability to a declining neighborhood as well as serve the community through free access and educational and cultural programming,” said Ms. Leff.

 

Source:  Miami Today

 

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Tucandela Buys Wynwood Building To Open Latin-Themed Nightclub

Tucandela Group bought a Wynwood building for $9.2 million with plans to open an outpost of its Latin-themed nightclub, according to Metro 1, which brokered the deal.

There are two Tucandela clubs, one in Mary Brickell Village outdoor mall and another inside The Palms at Town & Country shopping center in Kendall, a suburban town southwest of Miami.

The Wynwood club is slated to open the first quarter of next year at 2445 N Miami Avenue on the corner of 25th Street. The 12,404-square-foot site includes a two-story building, which spans 8,407 square feet.

The sellers, a joint venture between Link Real Estate and Jameson Equities, bought the property for $4.2 million in 2019, per records. The two firms, led by Dan Arev and brothers Joe and Richard Serure respectively, also own a one-story commercial building across the street that once housed a printing press.

 

Source:  Commercial Observer

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Wynwood Development Site Targeted In $23M Foreclosure

A developer that hoped to build a co-living apartment complex in Miami’s Wynwood Arts District has been hit with a $23 million foreclosure lawsuit.

Gamma FL Wynwood LLC, in care of New York-based Gamma Real Estate, filed a foreclosure complaint May 5 against New York-based Wynwood Gateway II LLC. It targets the 27,650-square-foot property at 166 and 179 N.W. 29th St., plus 169 and 179 N.W. 28th St. It has a four-unit apartment complex, but the site is mostly vacant.

The Collective, a New York-based co-living company that offers dorm-style residences, announced plans in 2019 to build its first Miami location on all five of those lots. It followed that up in 2021 by submitting a detailed site plan featuring a 12-story building with 108 apartments, 70 hotel rooms, 9,508 square feet of commercial space and 163 below-grade parking spaces. However, construction never commenced.

According to the complaint, Gamma issued the $23 million mortgage to Wynwood Gateway II in 2019. The loan matured June 30, 2021, without being repaid, and the borrower owes the full amount of principal, plus interest.

Both design services firm Bliss & Nyitray and law firm Wernick & Co. have pending lawsuits against Wynwood Gateway II over alleged nonpayment for services they provided for the Collective project. The developer has yet to respond to either lawsuit and was declared in default by the court.

 

Source:  SFBJ

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Boutique South Beach Hotels Trade Amid Heightened Demand

Two prominent buyers acquired boutique hotels in South Beach in separate deals, as demand for such properties continues to rise.

In the most recent of the two purchases, a company linked to the “vulture” hedge fund Alden Global Capital paid $6 million for the 17-suite Villa Paradiso at 1415 Collins Avenue, property records show. Miami Real Estate Investment Corp., led by Lisa and Pascal Nicolle, sold the hotel.

Susan Gale of One Sotheby’s International Realty represented the buyer and seller. Gale, who declined to comment on the buyer, said the property’s zoning made it very desirable. The two-story building, constructed in 1935, is in a mixed-use entertainment (MXE) district in Miami Beach where short-term rentals are allowed.

The buyer lists the address of Twenty Lake Holdings, the real estate company affiliated with Alden Global Capital. It plans to renovate the building and operate it as short-term rentals, Gale said.

“These types of properties that have zoning for short-term rental are very difficult to find. I have a list of people who want to buy them. They’ll buy as many as I have,” Gale said. “It’s a coveted type of property, and it has to have the right kind of zoning.”

The Nakash Family recently paid $6 million for the 10-room, three-villa property at 1350 Collins Avenue, near their Casa Casuarina hotel, which was previously known as the Versace Mansion, records show.

Carol Invest USA, led by Emanuela Verlicchi Marazzi, sold the 6,340-square-foot building at a loss compared to the $7.5 million it paid for the property in 2015.

Architect Wallace Tutt, who designed the Versace Mansion, also designed the 1350 Collins property, which is called the Orchid House Hotel. It was completed in 1930 and can operate as a private club or home, according to a press release about the deal. Short-term rentals are also allowed, said Lee & Associates broker Matthew Rotolante.

 

Source:  The Real Deal

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Big Changes In Little Haiti: Redevelopment Rises In Emerging Neighborhood

Neil Fairman, founder and chairman of Plaza Equity Partners, was once skeptical about building anything in Miami’s Little Haiti or Little River. Most of his company’s projects were luxury waterfront high-rises in places such as Miami’s Edgewater, South Beach, North Miami Beach and Hollywood.

But Fairman’s friend, Cirque du Soleil founder Guy Laliberté, wanted him to see some properties being assembled near 61st Street and Northeast Second Avenue in Little Haiti.

After touring the area, Fairman began to view it as ripe for opportunity – and he wanted in.

Since 2017, Fairman’s Plaza Equity Partners has been the managing developer of the Magic City Innovation District, an 18-acre territory that includes a former trailer park and dozens of warehouses. In the next few years, there will likely be 8.2 million square feet of apartments, hotels, offices, retail and exhibition space built there.

The warehouses have been converted into over 200,000 square feet of retail and office space that is now 90% leased, Fairman said.

Other investors and developers have followed suit, investing millions of dollars into the Little Haiti-Little River area, two overlapping neighborhoods bounded by Interstate 95, 54th Street, Northeast Fourth Court and the Little River canal.

Industry insiders say there are plenty of opportunities for more stakeholders to build projects there.

 

Source:  SFBJ

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Hyatt Proposes Massive Mixed-Use Project In Downtown Miami

Hyatt Hotels and Miami-based developer Gencom unveiled plans this week to transform the waterfront site of the Miami Hyatt Regency into a massive luxury mixed-use project.

The proposal, designed by Arquitectonica, features three skyscrapers. One tower will hold a Hyatt hotel, featuring 615 rooms and 264 serviced apartments. The two others will function as residential buildings, housing 1,542 rental apartments in total.

The three structures will sit atop a podium that will have 190,000 square feet for large gatherings such as conferences, 12,000 square feet for retail, 20,000 square feet for coworking offices and 1,100 parking spots, according to the joint venture. The project will also include a 50,000-square-foot public park, portions of which would face the Miami River.

The current development, located at 400 SE Second Avenue adjacent to Brickell Avenue, was built in 1982 through a city-approved ground lease. It holds the James L. Knight Center theater and a Hyatt hotel, both of which will be demolished if the proposal is approved.

“Our team’s privately financed upgrades will help ensure the Hyatt hotel site remains a critical economic engine for decades to come,” Phil Keb, executive vice president of development at Gencom, said in a statement.

Back in 2018, Hyatt proposed another redevelopment project that never got underway. With the current ground lease set to expire in 2027, the joint venture is seeking to extend the lease from 45 to 99 years.

To secure approvals for the project and the revised lease, the Miami City Commission must first OK the plans. Afterward, Miami voters would have the final say when the proposal is placed on the ballot this November.

If approved by a simple majority, construction would commence in 2025 and take about four years to complete, according to a spokesperson for the joint venture.

 

Source:  Commercial Observer

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South Beach Retail Building Sells For $12M

JLL Capital Markets has closed the $12 million sale of a 7,835-square-foot retail building net leased to upscale vegetarian restaurant PLANTA South Beach in Miami Beach.

JLL marketed the property on behalf of the seller, Commerce Street Properties LLC. Limestone Asset Management acquired the asset.

PLANTA is Miami’s premier location for chef-driven, innovative plant-based fine dining that offers a sustainable and locally sourced menu. The building was built-to-suit in 2018 as the flagship South Beach location and first PLANTA in Florida. The restaurant’s popularity led to two other Miami-area locations.

The restaurant is situated on 0.21-acre site at 850 Commerce St. in an elite part of South Beach. The property is located between Alton Road and Washington Avenue within South of Fifth, also known as SoFi, a dense restaurant corridor that has become a hotspot for luxury residential and hospitality and one of the premier restaurant destinations in the world.

According to JLL Research’s recently released Food & Beverage Report, Consumers are hungry for novel and fun experiences when they dine out. The growing demand for experiential dining is spurring live music, global and chef-driven cuisine and the rebirth of “eatertainment.” The Sunbelt region especially has seen outstanding recovery rates from the pandemic, particularly for Florida and Texas markets.

 

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Moishe Mana Pays $16M For Commercial Assemblage In Allapattah

Moishe Mana fattened up his Allapattah portfolio with a $16 million acquisition of properties.

An entity controlled by Mana, one of the largest landowners in Allapattah, Wynwood and downtown Miami, acquired 10 properties along Northwest Seventh Avenue between 28th and 29th streets, according to property records.

The parcels include Las Rosas bar and lounge at 2898 Northwest Seventh Avenue, four retail buildings at 2800, 2820, 2840 and 2850 Northwest Seventh Avenue and a former grocery market at 728 Northwest 29th Street. The four other properties are a single-family house at 731 Northwest 28th Street, a single-story warehouse at 753 Northwest Seventh Avenue and parking lots at 719 Northwest 28th Street and 2810 Northwest 7th Avenue.

The seller, two entities managed by Ari Dispenza, James Quinlan, and Douglas H. Levine, paid about $4.1 million for the properties between 2014 and 2016, records show. The buildings were constructed between 1925 and 1974.

 

Source:  The Real Deal

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