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Another Wynwood Dev Site Hits The Market Asking Above $30M

In a span of weeks, a second Wynwood development site is hitting the market with an asking price above $30 million.

Miami-based real estate investor Joseph Cohen is listing the 1-acre assemblage with an asking price of $35 million, according to Juan Andres Nava and Andy Charry with Metro1 Commercial, the brokers marketing the site.

Across Miami, development sites are selling at record prices, with nearly $808 million in sales last year.

Cohen, owner of the nearby Wynwood Block retail building, acquired the assemblage’s three properties at 2100 Northwest North Miami Court, 2101 Northwest First Avenue and 2127 Northwest First Avenue for a combined $3.2 million between 2012 and 2014, records show.

With large development sites in Wynwood virtually gone, Cohen is following in the footsteps of New York-based Thor Equities, led by Chairman Joe Sitt. About three weeks ago, Thor placed a 0.7-acre development site on the market with an asking price of $32 million. The five-parcel assemblage at Northwest 28th Street and Northwest Second Avenue is primed for a mixed-use project.

“Joseph’s property is the largest parcel available in [Wynwood],” Nava said. “Anything else that’s an acre or more has traded. Given the scarcity of land, at this moment it presents an opportunity for the influx of developers coming from all over the world into Wynwood.”

Cohen’s assemblage has three converted warehouses totaling about 54,000 square feet that can be redeveloped into a five-story mixed-use project with 162 residential or hotel units. However, a 2020 amendment to Wynwood’s zoning code allows bonuses for three additional stories and increased density of either 244 apartments or 488 hotel rooms, Nava said. The potential for a bigger development factored into the asking price, he added.

“Very few properties have closed since that zoning [change was adopted],” Nava said. “We have an opportunity to capture that value, and that is how we arrived at that price.”

To get the bonus height and density, developers have to abide by certain requirements. Among them, building units of 600 square feet or less, and paying $20,000 per additional unit into a neighborhood trust fund, Nava said.

The evolution of the Wynwood buyer pool also factored into the asking price, Charry said.

“Before, you had a specific group of developers and investors who were willing and able to purchase these types of properties,” he said. “From an asset class standpoint, you not only have multifamily, you also have offices and hotels. That creates a little bigger buyer pool.”

Charry noted Cohen’s assemblage is surrounded by new projects that are under construction or in the pipeline such as Quadram Global’s Arlo mixed-use hotel, Clearline Real Estate’s mixed-use apartment project and Fisher Brothers’ proposed apartment building on the site of the former Miami Rescue Mission headquarters.

In the most recent of those deals, Clearline paid $19.1 million for its 1.4-acre development site in Wynwood in April.

 

Source:  The Real Deal

 

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Ironstate Pays $16M For Wynwood Site, Marking First Property In Miami

Ironstate Development Group purchased a property in Wynwood for $15.6 million, marking its first South Florida site.

The Hoboken, New Jersey-based development firm, led by brothers David and Michael Barry, acquired the Art by God assemblage at 60 Northeast 27th Street. The buyer is 26-60 NE 27th Street LLC, according to brokers involved in the deal.

Ironstate’s portfolio includes properties in New Jersey and New York, and the company has been considered a key player in Jersey City’s evolution. It is unclear what the firm’s plans are for the Wynwood site.

Art by God, led by Gene Harris and his family, was in contract to sell the land at 26 Northeast 27th Street, 25 Northeast 26th Street, and 61 Northeast 26th Street since October 2019. The previous buyer, Miami Beach-based Lucky Shepherd, assigned the contract to Ironstate, which acquired the property on Wednesday, according to the brokers.

Lucky Shepherd, led by Christine Menedis and Naveen Trehan, had planned to build a 150-key hotel with 48 rental apartments.

Andy Charry of Metro 1 represented the seller, while Colliers International South Florida brokers Mika Mattingly and Cecilia Estevez represented Lucky Shepherd.

Mattingly called it a “prime example of a Covid-ravished deal” that emerged “triumphantly.” Charry said the pandemic threw a monkey wrench through the original timeline. The closing was initially scheduled for early 2020.

“They had a great property located on a great street, and it became even better because of the proposed Brightline station,” Charry said, referring to the sellers. The family owns the gift shop that offers minerals, fossils and other natural resources.

Developers including the Related Group, Property Markets Group, Kushner Companies, East End Capital and others have flocked to Wynwood in recent years, developing mixed-use, multifamily projects.

 

Source:  The Real Deal

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Wynwood Is Getting An Eco-Friendly Hotel At The Site Of The Art By God Store

Art by God, the museum store specializing in furnishings and jewelry made from natural artifacts, is proceeding with negotiations for the sale of its Wynwood location. Fittingly, the site is set to become an earth-friendly hotel.

The 21,155 square-foot store, located at 60 NE 27th St., is part of a four-parcel assemblage totaling more than 56,000 square feet and currently priced at $15.6 million. The acquisition includes three other lots at 26 NE 27 St., 25 NE 26 St. and 61 NE 26 St.

The buyer is the Miami-based Lucky Shepherd, a multi-company firm founded in 2016 that specializes in holistic wellness in technology, real estate and design.

The new owners plan to raze the existing property and build a 150-key eco-friendly lodging, with 48 residential units, a farm-to-table restaurant, a speakeasy and a rooftop pool and bar. Touzet Studio is the architect on the project. Gensler will handle the interior design. Construction is expected to begin in late 2021 and last 24-30 months.

Gene Harris, who founded Art By God Inc. in 1982, paid $350,000 for the 1.29 acre assemblage in 1997. He opened the Wynwood store on the property in 2014. The Harris family is still deciding whether to open a store at another location or go entirely online.

Andy Charry of Metro 1 (formerly of APEX Capital Realty), represented the seller. Arden Karson, managing principal of Karson & Co., together with Mika Mattingly and Cecilia Estevez with Colliers International Florida’s Urban Core Division, represented the buyer.

“Just like 2020, this transaction has been very challenging,” Charry said. “I’m grateful to everyone who is helping to push this deal to the finish line. The buyers are getting a phenomenal site.”

A COVID DELAY

The property, which was sold off-market, has been under contract since November 2019.

The hospitality industry has been banking on Wynwood as a lucrative hotel location to capitalize on its flood of annual visitors (more than four million in 2019, according to the Wynwood Business Improvement District).

The San Francisco-based Sonder is currently developing a 72-room hotel at 111 NE 26th St., just one block from the Wynwood Walls. The international firm Quadrum Global is developing a nine-story, 217-room hotel at a three-parcel assemblage it bought for $8.5 million at 2217 NW Miami Court.

The New York-based Domio leased an entire 175-unit building developed by The Related Group and Block Capital Group, originally intended as apartments, and is operating it as a hotel at 51 NW 26th St.

 

Source:  Miami Herald

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