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Miami Retail Leads Nation In Rent Growth As Brands, Chefs Follow The Money

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Michelin-starred chefs and high-end retailers continue to expand into Miami as they follow their customers from places like New York, California and Chicago.

The flow of new tenants is pushing up rents to prices second only to New York City, according to a Lee & Associates report, and driving vacancy down to among the lowest levels in the country.

Miami retail vacancy is at 3.7%, 50 basis points below the national average of 4.2%, and the city leads all major U.S. markets in rent growth, rising 11.6% year-over-year to $42.40 per SF, according to a second-quarter report from Marcus & Millichap.

The market “is exponentially better in terms of occupancy and rental rates than pre-pandemic. I think it’s just a different world that we live in now,” said Lisa Ferrazza, the senior director of retail leasing at the Miami-based investment firm Tricera Capital. 

The city’s trendiest neighborhoods have seen the greatest growth, driven by a rise in demand from restaurants and luxury retailers. Asking rents in Brickell and Miami Beach were above $70 per SF at the start of April, according to Marcus & Millichap, and highly coveted space can fetch considerably more.

Ferrazza said her firm has done deals above $115 per SF in Wynwood with retailers looking to capitalize on Miami’s rising profile. She said retailers are bringing flagship stores to the city in growing numbers.

In the second quarter, Ralph Lauren and Amsterdam-based furniture company Eicholtz opened flagship locations in the Miami Design District, a high-end shopping destination that spans 18 blocks.

Lincoln Road, the iconic shopping destination in Miami Beach, landed eight new tenants this quarter, including Cheesecake Factory and a range of retailers selling everything from footwear to candy. The Museum of Ice Cream revealed plans for a 14K SF experience-focused shop at Miami Worldcenter, a 27-acre mixed-use development in Downtown Miami that will host the company’s first permanent location.

“If they have determined that Wynwood or the Design District or Lincoln Road is their market and where they want to have a flagship, they’re usually willing to pay the freight regardless,” Ferrazza said.

Much of the demand for space is coming from the food and beverage sector. Miami now has 12 restaurants with Michelin stars after the acclaimed guidebook announced in 2021 that it would begin rating restaurants in the city. The growth of the city’s food scene and influx of new residents is drawing more star chefs and creating expansion opportunities.

“Retailers are one thing,” Ferrazza said. “The pool of expanding soft goods, fashion retailers is much more shallow than the food and beverage market. That’s really where we see most of the activity.” 

Just this week, celebrity chef Juan Manuel Berrientos opened Elcielo Miami at the SLS South Beach hotel, the second location in the city for the Michelin-starred restaurant. Michael Beltran, the chef at Michelin star-earning Ariete in Coconut Grove, announced in May that he would open a cigar and cocktail bar in Miami Worldcenter.

Some of the new upscale restaurants coming to Miami are aimed squarely at the wealthy new arrivals who moved to South Florida during the pandemic.

In March, chef Shaun Hergatt announced plans for a private restaurant and speakeasy concept exclusively for residents at the Perigon condo tower in Miami Beach, which is expected to open in 2026. Weeks earlier, Todd English signed on to open a private lobby restaurant at the Bentley Residences, a 62-story luxury condo tower in Sunny Isles that is also slated to deliver in 2026.

Tricera is working on deals with chefs from Las Vegas and Boston, Ferrazza said.

“We’re getting a lot more Michelin chefs, and everybody knows how competitive the F&B market is,” she said. “So everyone is trying to outdo each other in the Miami market to have a presence to be talked about and be seen.”

Developers are responding to the strong demand by building more space. Across South Florida, there is more than 3.5M SF of retail space under construction, including around 1.9M SF in Miami as of March.

Miami is slated to see 1.6M SF of new space come online in the second half of this year, following the completion of around 400K SF through the second quarter, according to Marcus & Millichap.

Deliveries in Miami will be four times higher than in 2022 and “may result in some upward pressure on vacancy in the near-term while new stock leases up,” the report’s authors wrote. But with vacancy rates at some of the lowest levels in the country, Ferrazza said the market is well-positioned to absorb the new inventory.

The inflow of new residents, growth of tourism and the business-friendly environment in the state has made Miami an ideal location for retail tenants looking to grow, she said.

“I don’t know where else you would look if you are looking to expand throughout the country,” she said.

 

Source:  Bisnow

 

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Two Mixed-Use Projects Proposed In Wynwood, With Green & Wood Exteriors

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Plans for a pair of new mixed-use projects have been filed in Wynwood.

The project names are listed as W2 & W9183 in the submittals.

W9183 is proposed to rise 5 stories and include:

  • 34 residential units
  • 5,250 square feet of ground floor retail space
  • activated rooftop
  • no onsite parking, six offsite spaces (reduced by payment into the Wynwood Parking Trust Fund)

Architectural materials will include green aluminum railings, green metal architectural frame, engineered wooden ceilings, green stucco with scorelines, green mullion, grey tinted glass (upper levels), and clear glass (ground floor).

W2 is proposed to rise 5 stories and include:

  • 34 residential units
  • 5,250 square feet of ground floor retail space
  • activated rooftop
  • no onsite parking, six offsite spaces (reduced by payment into the Wynwood Parking Trust Fund)

Architectural materials will include white aluminum railings, wooden architectural frame, engineered wooden ceilings, dark stucco with scorelines, white mullion, grey tinted glass (upper levels), and clear glass (ground floor).

Arquitectonica is the architect for both projects.

A hearing before the Wynwood Design Review Committee was scheduled for July 18.

Kushner and Block Capital are shown on the submittal package as the developers.

 

Source: The Next Miami

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Residential Building Boom Hits Aventura

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Aventura and North Miami are in the midst of a multi-billion-dollar transformation, featuring new housing developments, schools, retail, transit and more.

Aventura, where the median single-family home price jumped 25% from $990,000 in 2022 to $1.237 million in the first quarter of 2023, according to a market report from ONE Sotheby’s International Realty.

Aventura’s population has steadily increased since 1990, when it was about 15,000. It grew to 25,000 by 2000, 35,000 in 2010, and today roughly 40,000 people call Aventura home. North Miami’s population jumped from about 50,000 to nearly 60,000 during the 1990s, and it has remained steady since then.

The same is true just south in North Miami, which has seen a more than 400% increase in residential units from 2019 to 2022, with more on the way, plus seven new schools and a boost to its local commerce. Nearly 20% of the area’s nearly 2,300 businesses opened since the start of 2022.

Now, developers are working to capitalize on the region’s growth with a series of housing developments new to the market, in construction or in the planning stages.

One of the largest is the 184-acre SoLé Mia community, led by Jackie Soffer’s Turnberry Development and Richard LeFrak’s LeFrak Organization. The developers have plans for thousands of residential units, 1.5 million square feet of retail and commercial space and a 10-acre University of Miami UHealth Medical Center, scheduled to open in 2025. The residential offerings will include the 33-story ONE Park Tower by Turnberry overlooking South Florida’s first seven-acre swimmable lagoon.

North Miami developments in the works include:

  • Aliro Luxury Apartments, 1820 NE 142nd St., approved to add 519 additional residential units and a parking garage.
  • Allure of North Miami, 1810 NE 146 St., approved to build a two-acre apartment complex with 360 units and a percentage of affordable housing options.
  • La Maison, 1850 NE 123rd St., approved to develop 297 residential rental units and 18,500 square feet of retail and restaurant space.
  • NoMi Square, 13855 NW 17 Ave., approved to build a seven-story development with 338 units and a public park.
  • North Miami Condos, 840 NE 130th St., approved to build a six-story, 67-unit luxury residential project with green building design and transit components.
  • Oleta, NE 151st St. & NE 20th Ave., approved for four residential towers with nearly 20,000 square feet of commercial and restaurant space.

Aventura is witnessing a wave of building and infrastructure improvements as well. The projects will upgrade Aventura Mall, add the new Brightline train station, bring on a new Hyatt House Hotel and introduce several new restaurants, retai shops and luxury residences.

Some residents there have expressed concerns about proposed changes to the land development regulations in the city’s master plan. They cite the potential for increased traffic and an influx of high-rise buildings along the beach. Last month, a change.org petition launched seeking to “stop excessive development in Aventura,” and it has collected more than 1,400 signatures.

How that might affect the future of development in the area is still unclear, but there’s no denying Aventura and North Miami are booming.

 

Source:  South Florida Agent Magazine

 

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Longtime Wynwood Developer Proposes New Office Project

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A developer has proposed a skinny, 8-story office building on a small lot in the Wynwood neighborhood of Miami.

BLP153 LLC, managed by Jared Brunnabend of Bayshore Investment Partners in Miami, owned the property but the application was filed by Miami-based Lombardi Properties. David Lombardi is one of the earliest developers who helped transform Wynwood into a popular spot for dining, retail, apartments and, increasingly, office.

The vacant property was acquired for $2.5 million in October.

The Doris would total 20,419 square feet, with 1,218 square feet of commercial space on the ground floor and 19,201 square feet of office space on the seven floors above it. Each office floor would total about 3,994 square feet and have an outdoor terrace. There would also be a roof terrace.

The building would have no on-site parking, as the developer would pay into the Wynwood Parking Fund that is used to fund parking improvements in the neighborhood.

 

Source:  SFBJ

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New Mixed-Use Project Coming To Allapattah

Coral Gables-based Coral Rock Development Group unveiled plans for Dulce Vida, a transformative mixed-use, mixed-income development in Miami’s Allapattah neighborhood. The project will add to the area’s revitalization and enhance the community’s access to affordable housing options.

Situated on a 1.3-acre site at 1785 NW 35th Street, Dulce Vida is a prime example of Florida’s new SB 102 law aimed at promoting mixed-income developments and increasing access to affordable housing. The project will consist of 200 rental units, thoughtfully designed to cater to a diverse range of residents. Of these, 85 units will be designated as affordable housing at 60% of Area Median Income (AMI), another 85 units will be allocated for workforce housing at 100% AMI, and 30 units for workforce housing at 120% AMI, ensuring a variety of housing options for different income levels.

At the heart of the Dulce Vida project is a new state-of-the-art Miami-Dade Public Library System Allapattah Branch Library, located on the ground floor. This facility will replace the existing Allapattah Branch Library currently at the site and will provide access to a modernized library with the latest library resources, technology, and specialized areas for library users of all ages.

Coral Rock Development Group is proudly partnering with Miami Bethany Community Services, a local nonprofit church deeply rooted in the Allapattah neighborhood, which will play a pivotal role in providing community outreach and involvement initiatives. They will collaborate with residents, local organizations, and businesses to ensure that Dulce Vida positively impacts the community.

“We are thrilled to introduce Dulce Vida, a transformative development that combines the crucial elements of affordable housing, community amenities, and improved access to educational resources,” said Michael Wohl, principal of Coral Rock Development Group. “This project is a testament to our commitment to creating inclusive and sustainable communities that cater to the diverse needs of Miami residents. We look forward to collaborating with the Allapattah neighborhood and Miami-Dade County to make this vision a reality.”

Designed by Behar Font & Partners, Dulce Vida will offer an extensive array of amenities including a state-of-the-art fitness center, a community lounge with a kitchenette and club room for social gatherings, a private conference room, a BBQ area for outdoor cooking and entertainment, an outdoor lounge and games area, a children’s playground, a dedicated dog park, and a parcel package room with lockers for added convenience. The project will also feature electric car charging stations, encouraging sustainable transportation options, as well as bicycle storage and repair facilities to promote eco-friendly commuting alternatives.

“Coral Rock Development Group is not investing in buildings, they are investing in people,” said Commissioner Alex Díaz de la Portilla, City of Miami Commissioner for District 1. “Dulce Vida is a significant contribution to the City of Miami’s attainable housing efforts and will provide much needed housing for low-income residents, as well as law enforcement officers, firefighters, teachers, nurses, and city employees.”

Coral Rock Development Group has particular expertise in developing multifamily workforce housing projects along with mixed-use and affordable developments. Recent projects include Pura Vida Hialeah, Kayla at Library Place, and Card Sound Key Apartments, among numerous others.

Pricing for the rental apartments will begin at $1,084 for studios, $1,161 for one-bedroom units, and $1,393 for two-bedroom units with all prices inclusive of utilities.

Groundbreaking on the project will begin in the third quarter of 2024, with a scheduled completion date at the end of 2025.

During the construction phase, the existing Miami-Dade Public Library System Allapattah Branch Library will be temporarily relocated and continue to operate in a nearby location, ensuring uninterrupted access to its services and resources for the community.

 

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W3 Proposed In Wynwood, Painted In Red

Plans for a new mixed-use project have been filed in Wynwood.

The project name is listed as W3 in the submittal.

The new development is proposed to rise 143 feet and include:

  • 34 residential units
  • 5,250 square feet of ground floor retail space
  • no onsite parking, six offsite spaces (reduced by payment into the Wynwood Parking Trust Fund)

Architectural materials will include red metal railings, red architectural frame, red painted stucco, red mullion, grey tinted glass (upper levels), and clear glass (ground floor).

A total of 2 zoning waivers are requested.

Arquitectonica is the architect.

A hearing before the Wynwood Design Review Committee is scheduled for July 18.

Wynwood 83 Owner LLC is the applicant. Kushner and and Block Capital are shown on the submittal package as the developers.

 

Source:  The Next Miami

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Fontainebleau Scores $73M Construction Loan For New Convention Center

Fontainebleau Development scored $72.8 million to finish a convention center at its iconic, eponymous Miami Beach resort, property records show.

The 50,000-square-foot facility is being erected on a 1-acre lot at 4360 Collins Avenue, just south of Fontainebleau’s condo component. The five-story convention center and the MiMo-style hotel, which anchors the entire complex, will be connected through a skybridge.

Construction got underway last fall and is scheduled to be completed in 2025. The loan from Goldman Sachs (GS) amounts to a maximum of $72.8 million, with the funds being disbursed incrementally under certain conditions, according to mortgage documents.

“The investment will allow us to deliver a best-in-class meeting and event center to meet the needs of the growing South Florida market for business and leisure events,” Brett Mufson, president of Fontainebleau Development, said in a statement. 

 

 

Source:  Commercial Observer

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Miami-Dade County Most Competitive Rental Market In U.S.

Miami-Dade County is the most competitive market for renters in the U.S., according to a recent report.

The report from rental listing website RentCafe scored 137 areas across the U.S. based on the average number of days an apartment stayed vacant, the percentage of occupied apartments, the number of prospective renters per available unit, and the lease renewal rate between the months of January and March.

Under that criteria, Miami-Dade County was ranked at No. 1 with a competitive score of 120. According to the report, apartments stayed vacant for an average of only 33 days – the shortest span of any other area in the top 20.

“Given these circumstances, a sky-high 72% of renters in [Miami-Dade] choose to stay put and renew their leases, said Esther Urmosi, communications specialist for RentCafe. “On top of that, 97.1% of apartments are already occupied here, which is above the national benchmark of 94%.”

In RentCafe’s previous report, released in March, North Jersey was named as the most competitive market in the U.S.

Ranked at No. 4 is Broward County where apartments remained vacant an average of 41 days, 95.5% of its apartments are occupied, 67.2% of its leases are renewed and 14 renters compete for each available apartment.

Palm Beach County was the No. 20 most competitive rental market where apartments stayed vacant an average of 38 days, 95% of the apartments are occupied, 11 prospective renters competing for each available apartment and there’s a 59.5% renewal rate.

Another three Florida communities made RentCafe’s top 20 most competitive market list: Southwest Florida (No. 3), Orlando (No. 8), and Tampa (No. 19).

“Developers in Florida have been busy completing new apartments. However, this is still not enough to keep up with pent-up demand, which is why Florida markets are claiming the first spots on our list,” the RentCafe report stated.

 

Source:  SFBJ

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Fisher Brothers Bag $118M Loan For Wynwood Project

Fisher Brothers Management can begin construction of an eight-story multifamily project in Wynwood after securing a $117.5 million loan.

An affiliate of Los Angeles-based Canyon Partners provided the construction financing for Wynhouse, a proposed development with 312 apartments, 27,500 square feet of restaurant and retail space and 120 parking spaces, records show. The 1.5-acre development site is the former Miami Rescue Mission headquarters at 2201, 2229 and 2159 Northwest First Court, and 2200 and 2250 Northwest First Avenue.

Designed by Miami-based Nichols Brosch Wurst Wolfe & Associates, the specifics of the 340,394-square-foot project include 107 parking spaces, 10 ground-floor retail stores spanning 24,114 square feet and 8,165 square feet of rooftop amenities which include a pool and lounge. The building surrounds a central courtyard, and the property is bisected by more than 8,000 square feet of public paseo space, open to the public and creating more frontage for retail.

 

Source:  The Real Deal

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