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Related Group’s Nick Perez On Wynwood’s Transformation And The Future Of Development In This Burgeoning Neighborhood

The Wynwood Arts District, famously known for its striking graffiti walls and vibrant arts and entertainment scenes, is now one of Miami’s most desirable places to live, work and play, with some of the biggest names in tech, dining, fashion and hospitality setting up shop in the neighborhood.

Leading this charge is real estate powerhouse, Related Group, the first developer to enter Wynwood in 2019 with the area’s first ground-up rental community, Wynwood 25, and the firm behind the premier Class-A office building, Wynwood Annex.

Now, Related is betting big on the future of Wynwood’s luxury residential market with NoMad Residences Wynwood, the first hospitality-infused condominium from the iconic brand, NoMad Hotels.

PROFILEmiami had the opportunity to speak with Related Group’s Senior Vice President Nick Pérez to learn more about this exciting new development and what the future holds for the area.

PROFILEmiami (PM): What initially attracted Related Group to Wynwood?

Nick Pérez (NP): JP Pérez, the President of the Related Group, initially convinced our father, Jorge Pérez, to enter the Wynwood neighborhood, which has been one of our most successful plays to date. When Related chose to build Wynwood 25, our first large-scale rental development in the neighborhood, we were impressed by the art district’s popularity with locals and tourists alike. We recognized that while millions of people were visiting Wynwood each year, there were no existing large-scale residential communities that catered to locals. It was this lack of quality housing supply that compelled us to deliver Wynwood 25, which opened four years ago, and has since ignited a wave of residential development that has transformed the area into one of the hottest rental markets in the county.

Thanks to JP’s visionary foresight, our bet paid off in a big way and today we are the single most active developer in Wynwood. Related alone has a total portfolio, including units completed and under development, of more than 1,250 luxury rental apartments in the neighborhood. Similar to our rental projects, we hope that the NoMad Residences Wynwood will set an example for other condominium developers to follow. Not only are we creating a high-quality building that our buyers will be proud to call home, but we are incorporating a wealth of food and beverage options that will be open to the public and contribute to Wynwood’s dynamic community.

We’re exceptionally proud of the progress we’ve made to date and look forward to the building’s groundbreaking later this year.

PM: Talk to us more about NoMad Residences Wynwood. How did the project come to be?

NP: As one of the pioneers behind the branded residences trend in Miami, we recognized the potential for a partnership with a reputable hospitality brand to envision a new type of condominium offering in Wynwood. The philosophy behind NoMad Hotels is grounded in the idea of the hotel as a great home, which spoke to us as residential developers. The brand’s expertise in creating and activating artfully-lived spaces made it the ideal partner for this project.

Furthermore, the NoMad New York was credited for transforming Manhattan’s North of Madison enclave into one of the city’s most in-demand neighborhoods, and we feel strongly that the NoMad Residences Wynwood will further contribute to Wynwood’s incredible evolution, leading it to become one of Miami’s most inspired and sought-after destinations.

We developed NoMad Residences Wynwood in partnership with New York-based Tricap and collaborated with our globally-renowned design partners, DesignAgency and Arquitectonica. In addition to a full suite of resort-style amenities, the nine-story building will include two signature food and beverage offerings that will be open to the public, including the rooftop restaurant and mixology bar, The NoMad Bar. On NoMad Wynwood’s ground floor, residents and the community can enjoy a Casa Tua Cucina, an expansive open-kitchen concept offering simple, yet expertly crafted Italian and Mediterranean fare.

PM: Wynwood is rapidly transforming into Miami’s tech epicenter. How have Related’s properties contributed to this growth?

NP: In the wake of the pandemic, Wynwood became a major hub for innovators within the tech and finance spaces, including Founders Fund, Atomic Venture Capital and Live Nation Entertainment, which opened offices at The Annex.

The range of forthcoming hospitality and residential offerings, including the Arlo Hotel, Moxy Hotel and the Related communities, will cater to the needs of this growing workforce, much of which is looking to put down roots in the neighborhood.

In fact, this growing tech population paired with the highly regarded NoMad brand has directly translated into robust sales activity at NoMad Residences Wynwood. More than 50% of the building’s 329 fully-furnished homes are already in contract, including one priced at roughly $2,000 per square foot, which shattered neighborhood price records.

PM: Why is the neighborhood attractive to companies wanting to open an office in Miami?

NP: South Florida has experienced tremendous population growth in recent years as many people relocated from New York City, Chicago, Atlanta and parts of Texas.

Wynwood is unique in that it offers a highly creative environment with proximity to the Miami Design District, Midtown and Miami Beach, making it an ideal location for companies looking to tap into the city’s diverse business and cultural communities. The neighborhood is home to acclaimed art galleries, luxury boutiques and Michelin-star and five-star restaurants, all of which contribute to its appeal.

Source:  Profile Miami

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One-Acre Office Building Dev Site In Aventura Trades For $10 Million

MG3 Group bought a development site in Aventura in a bet on the city’s growth as an office market.

MG3 paid $10 million for the assemblage at 21001 Biscayne Boulevard near Aventura Hospital, according to records and real estate database Vizzda. The firm plans to include medical office space in its project.

The deal breaks down to $9.5 million per acre.

Selling entity Jewish Outreach Center is tied to the Aventura Chabad based in the building immediately east of the purchased site. It had paid $781,800 for the land and other lots in 2019, records show.

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Tricera Capital, Related Group Announce Schonfeld Strategic Advisors Lease Expansion At Wynwood’s The Dorsey

Tricera Capital, the Miami-based commercial real estate firm led by Ben Mandell, Alex Karakhanian’s LNDMRK Development and market leader Related Group finalized a lease expansion with New York-based hedge fund Schonfeld Strategic Advisors at the partnership’s Dorsey in the Wynwood neighborhood.

Schonfeld is doubling its office space at the Dorsey, adding a second floor to its previous lease at the mixed-use development. The lease expansion brings the Dorsey’s office component to 100-percent occupancy.

The roughly 18,000-square-foot lease expansion brings Schonfeld’s total Dorsey footprint to about 37,000 square feet. Terms of the lease were not disclosed.

“This is a testament to the quality of not only the Dorsey, but the Wynwood neighborhood as a whole,” Related President Jon Paul Perez said. “Firms like these can go anywhere in South Florida, but Wynwood is at the top of every list. The neighborhood has truly hit its stride and we look forward to continuing to drive its thoughtful growth.”

Tricera, LNDMRK and Related teamed up to develop the Dorsey, with renowned Arquitectonica designing the project. The property includes more than 300 apartments, 78,000 square feet of office, 33,000 square feet of retail and ample parking and open space.

“This is another example of high-profile financial firms showing their commitment to the Miami office market, with Wynwood remaining especially attractive to these firms,” Tricera President/Head of Leasing Dustin Ballard said. “The pandemic-era corporate migration to South Florida continues to take shape, as our region’s office sector keeps outperforming other major U.S. metropolitan areas. Relocation demand is still incredibly high as we begin 2023.”

Randy Abend and Paul Mas of JLL’s New York office and Matthew Goodman, formerly with JLL’s Miami office, represented Schonfeld in the Dorsey lease, while Cameron Tallon, Emily Brais, Eric Groffman and Randy Carballo of CBRE represented ownership.

 

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Julia Tuttle Causeway May Be In Line For An Overhead Expressway

Spurred by growing population and area employment demand, the Florida Department of Transportation (FDOT) is kicking off public engagement to evaluate planned upgrades to I-195 to add operational efficiency and enhance connectivity and road safety.

One of many possibilities could be an overhead viaduct in the highway’s median.

According to the Miami-Dade Transportation Planning Organization’s Long Range Transportation Plan, the county’s population is expected to increase by 67% and employment by 38% by 2045.

The future project along I-195/State Road 112 from 12th Avenue in Miami to Alton Road in Miami Beach is beginning its project development and environmental (PD&E) study to determine the conceptual design.

“Within the limits of the area, we will address operational efficiencies within the main line and also the exteriors nearby; enhance system linkage and regional connectivity; enhance multimodal connectivity, as well as improve the overall safety of the corridor,” said Ivette Funtenellas, FDOT project manager. “It will also relief existing and future congestion for future travel demand, as a result of the population and employment growth along the I-195, as well as connectivity between Miami and Miami Beach.”

The study would build upon construction and engineering company AECOM’s June 2020 comprehensive planning study, commissioned by FDOT, where alternatives were recommended, including development of an elevated viaduct in the median to provide direct connectivity between Miami Beach and I-95, circumventing all the service interchanges and operational backups that take place along the interstate and its on and off ramps, said Robert Linares, executive vice president of transportation at metric engineering and consultant project manager for this project.

The PD&E study would collect all traffic data, engineer data, surveys and data of existing conditions at the I-195; it would develop a preliminary design; and it would conduct an environmental analysis, before starting the design phase.

Issues to be studied include the lack of bicycle and pedestrian connectivity between Miami and Miami Beach – which could create a connection between existing bicycle lanes in Miami Beach – and it would look into car crash data. In addition, the project would look into a possible access point from Miami Beach to the express lanes off I-195.

From 2015 to 2019, there were 3,461 crashes along the I-195, in 37 locations and seven segments of the interstate, according to FDOT.

“This is above the statewide average for this type of facilities,” said Mr. Linares. “We’re going to be looking at some of the major interchanges, primarily the systems assistance interchange with I-95, and a number of service interchanges with Miami Avenue, Biscayne Boulevard, and Alton Road.”

As part of the PD&E study, the department would look into transportation systems management operations to “find ways to get as much efficiency out of the existing infrastructure as possible, with minimal capital improvements. Some of that may be through the use of intelligent transportation systems, such as camaras,” said Mr. Linares, before the design of the breakthrough improvements take place.

The future design is intended to also build upon projects that are to be done soon, such as the Bus Express Rapid Transit Network, known as the “bus-on-shoulder” project of the Strategic Miami Area Rapid Transit (Smart) Plan, to be done by April, as well as drainage and overall water quality, with stormwater runoff flowing into Biscayne Bay Aquatic Preserve, part of the Outstanding Florida Water, and other resiliency initiatives by private agencies, and the cities of Miami and Miami Beach.

The project also crosses critical habitat areas for manatees, fish, seagrasses, corals, mangroves and other types of marine life and areas of environmental concern, said Caitlin Hill, environmental scientist and field operations manager at Metric Engineering.

Other capacity improvements that are to be evaluated by FDOT are the widening the Julia Tuttle Causeway and a potential widening SR 112 on the west; the widening of some on and off ramps at intersections of the I-195, and the potential for a westbound city road from Miami Beach.

Some other projects by FDOT in the area include a future Golden Glades Interchange Enhancement Project; the I-395/SR 836/ I-95 design-built signature bridge project; the Smart Plan’s Beach corridor; the Alton Road Reconstruction; the Tri-Rail Downtown Miami link extension; and the City of Miami Beach 41st Streetscape Improvement project.

FDOT is working on putting together community advisory groups, composed of business owners, residents, “anyone of interest that wants to sit on that board, to help guide the project’s development,” said Mr. Linares.

There are to be two additional public meetings, organized by FDOT, through the end of the fourth quarter of 2024.

 

Source:  Miami Today

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AT&T Could Sell Miami Beach Site To Developer

AT&T has sold an old BellSouth telecom site in Miami Beach to developers to build a condo.

The city’s Design Review Board will consider the application for the 24,800-square-foot lot at 6940 Abbot Ave. on March 8. Dallas-based AT&T agreed to sell the property to 6940 North Beach LLC, co-owned by Eduardo Otaola of Constellation Group and Jose Boschetti of Boschetti Group. Otaola said another co-owner in the deal is Rainer Viete of Vietmar.

Otaola noted the land is in Miami Beach’s North Beach Town Center district, which has a quicker development approval process. The project could receive final approval before the DRB on March 8, he said.

Otaola said his team recently acquired the property for $5.5 million. The deed has yet to appear in county records.

The site plan calls for a 10-story building totaling 134,573 square feet with 96 condos, 2,192 square feet of retail and 90 parking spaces. There would be a lobby on the ground floor with coworking space and a rooftop amenity area featuring a pool, a fitness center and a pickleball court.

Otaola said he’s also considering an in-house golf cart that would transport residents to the beach three blocks to the east.

The condos would range from 437-square-foot studios to 1,030 square feet with two bedrooms.

Otaola said the condos would start for under $1 million. He’s still working on a branding concept. His team is likely to permit short-term rentals in the building. The North Beach Town Center district permits short-term rental condos, he noted. Of course, each condo building has association rules governing the frequency of rentals.

“You are seeing all this development going up in Miami Beach with condos $1 million and above,” Otaola said. “You are leaving aside a lot of interest from buyers on the younger side or on the lower end of the income demographic where that’s above their price point. There’s a ton of appetite in Latin American to enter a gold standard market like Miami Beach.”

He plans to launch sales for the condo in the second quarter of this year.

Miami-based Arquitectonica designed the project and Miami-based attorney Tracy R. Slavens represents the developer in the application.

Source:  SFBJ

 

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Gateway At Wynwood Gets $113 Million Refi

Berkadia has arranged a $113 million loan to refinance Gateway at Wynwood, a 220,000-square-foot, Class A office and retail project designed by Kobi Karp in Miami’s Wynwood District. Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Associate Director Robert Iudice of Berkadia South Florida arranged the loan on behalf of New York-based Rose & Berg Realty Group LP (“R&B Realty”), a family-owned real estate management, leasing and construction company. The property is leased to a diverse tenant roster including BoConcept, OpenStore and Veru.

Berkadia also secured the original construction loan for the project in early 2020 through lender 3650 REIT.

This time, A10 Capital, a vertically integrated, full service commercial real estate lender, provided the three-year loan, with two, one-year extension options.

“The volatility in the lending environment made this office refi transaction challenging, but our relationships with the lending community and the strength of this asset helped us secure one of South Florida’s largest office refis in recent times,” said Foschini. “We are proud to have played a key role in helping our client move forward with its plans as it continues to attract strong office and retail tenants to the trophy property in the highly desired Wynwood area north of downtown Miami.”   

Designed by ‘starchitect’ Kobi Karp, Gateway at Wynwood is located at 2616 North Miami Avenue, in the epicenter of Miami’s Wynwood corridor, one of the most desirable 24-hour submarkets in the nation. It features approximately 220,000 square feet of Class A office space encompassing roughly 27,700 square feet of space on each of its floors. It features a private rooftop terrace with panoramic views, as well as 512 on-site parking spaces. The project also features 24,000 square feet of retail space and is centrally located at the convergence of the Midtown and Wynwood submarkets’ high-traffic retail corridor, with immediate access to thousands of new residential units.

Gateway at Wynwood is just minutes away from Miami’s Central Business District (CBD), Midtown, Edgewater, the Arts and Entertainment District, Brickell, Miami Beach, and a variety of mass transit options including I-195, the Miami Metrorail and the new Brightline commuter rail line connecting Miami to Fort Lauderdale and Palm Beach.

 

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Employment Seekers From Around US Attracted To Florida Jobs

Florida is now the state with the third most number of new jobs. It overtook New York last December.

CBS4 takes a look at why so many are coming to take these new jobs and what’s changing in the job market.

“It was supposed to be a temporary situation,” Marvin Kim recalled.

Kim came to South Florida during the pandemic from where he was based, New York.

“I was contemplating my next move,” he told CBS4.

Currently, Kim works in sales at Doorloop, a software company that is used to manage rental property and payment.

“I was surprised really at the number of high-quality jobs that were offered here in Florida, as you know very well Florida is just benefiting from the massive influx of capital booming start-up scene,” he explained.

Of course, the other reason is the warm weather, that’s why thousands of others like Kim are coming, and the jobs keep opening up as well.  According to the latest U.S. Dept. of Labor statistics, at the end of December, Florida topped New York with 9,578,500 jobs, 2,400 more than the Empire State.

“The companies that I am working with now are mostly from the Northeast and California, they’re relocating here,” Craig Studnicky, ISG World CEO said.

Studnicky works in sales and marketing at International Sales Group.

“Goldman Sach is moving their regional offices to Fort Lauderdale.  How many other companies are moving here, how many other businesses are being created to support those giant companies,” he said.

Along with these white-collar jobs, is the demand for workers to fill blue-collar jobs.

“A New Yorker comes here, a family from California comes here, and even though prices have appreciated significantly since 2020 for them we are a bargain,” Studnicky explained.

At this rate, it doesn’t seem like there’s a shortage of people willing to move.

“Florida has never been in the same conversation as Silicon Valley or New York. You’re seeing that scene change and as you look at what’s happening with demographics, and capital flows, and booming start-up scene, you want to be part of that,” Kim added.

Of course, when it comes to where everyone coming here to get jobs will live, experts like Studnicky recommend getting in on whatever real estate market one can afford now, rather than later.

 

Source:  CBS News

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South Beach Hotels Sell For $335 Per Room

The South Beach Plaza Hotel and the neighboring South Beach Plaza Villas, only a block from famous Ocean Drive, sold for $26.5 million.

Kentucky Zinc LLC, Zaynab Investments, NC Capital LLC and ABH Corp. of New York, respectively managed by Fahr Juneja, Abdul Buridi, Naveed Chowan, and Arif Butt, were the sellers. The 79 hotel rooms at 1401 and 1411 Collins Ave. were purchased by 1401 Collins Avenue LLC, managed by Kenneth Lipschutz, the head of Stamford, Connecticut-based Blue Suede Hospitality Group. Property data firm Vizzda confirmed the buyer and seller information.

The price equated to $335,443 per room.

The hotels last traded for $12.25 million in 2009, more than doubling in value.

Built between 1934 and 1936, the hotels total 32,330 square feet. They’re situated on a 21,000-square-foot lot not far from the beach.

 

Source:  SFBJ

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Rilea Pays $6M For 13K SF Warehouse Property In Wynwood, Plans More Mohawk At Wynwood Loft Apartments

Rilea Group plans more loft apartments at its Mohawk at Wynwood mixed-use project after expanding its site.

The Miami-based developer paid $5.7 million for two warehouses at 31 and 37 Northeast 28th Street, said Rilea President Diego Ojeda. Both lots span 12,750 square feet, enlarging the overall development site at 56 Northeast 29th Street from 1.5 acres to 1.8 acres, Ojeda said.

In an off-market deal, Rilea bought the property from interior designer Michael Wolk, whose studio is based in one of the warehouses, Ojeda said. Alfredo Riascos with Gridline Properties represented Rilea, and Alfonso Jaramillo with Fortune International Realty represented the seller.

In 2002, Wolk paid $350,000 for the industrial buildings, which were completed in 1964 and 1970, records show.

“We negotiated what I think is a fair price and below market,” Ojeda said. “For us, it makes sense because it helps our project’s efficiency. For the seller, it was also good. It’s a small site that without our project didn’t have life for anything else.”

Rilea’s latest acquisition allows his firm to add 35 more loft apartments to a 12-story project originally slated for 225 units, Ojeda said. Mohawk at Wynwood, now spanning almost an entire block, will also have 31,000 square feet of ground-floor retail, 3,500 square feet of office and 337 parking spaces. Knocking down the two warehouses will also improve the design of a paseo planned for the project, Ojeda said.

“Before, the paseo had a big wall on the south side,” Ojeda said. “Now that we own the site, the wall will no longer be there. You will have retail on both sides when you walk the paseo.”

 

Source:  The Real Deal

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Huge Flight Of Talent & Capital To Miami Continues, Investor Says

Miami is continuing to attract a major amount of investment and capital, a prominent investor said.

Jack Abraham, who is the CEO of Atomic Labs, made the comments in an interview yesterday with CNBC.

According to Abraham, Miami is “somewhat insulated from the larger economy.”

Abraham said that real estate was still going up in Miami, while it is going down in other major U.S. markets.

He also said that venture capital investment in Miami was up sharply in the past year, while it is down in other major U.S. tech locales.

“I like to think of Miami as a viral product with very high retention,” Abraham said, noting that his friends who had tried Miami had stayed. “I don’t know anyone who’s gone back to Silicon Valley or New York.” 

 

Source:  The Next Miami

 

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