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Tricera Capital And LNDMRK Development Secure Several Exciting Tenants At Society Wynwood

Society Wynwood_Image Courtesy of Boardroom PR 1170x435

Tricera Capital, the Miami-based commercial real estate firm led by Ben Mandell, and LNDMRK Development completed several leases totaling almost 14,000 square feet at major mixed-use development Society Wynwood.

Newly signed tenants include Starbucks, Chama De Fogo Brazilian Steakhouse and Nacho Daddy.

Starbucks will occupy 2,615 square feet of retail space at Society Wynwood. The Seattle-based coffee giant has a strong presence throughout South Florida, including at Tricera’s Shops at the Press in West Palm Beach.

Chama De Fogo leased 5,522 square feet at Society Wynwood for its second Miami location. The Brazilian steakhouse concept has become extremely popular over the years, and Chama De Fogo prides itself on its authentic gaucho barbecue and high-quality meats. The Society Wynwood location will feature a casual dining restaurant, butcher shop and delicatessen.

The Las Vegas-born Nacho Daddy opened its first store in 2010. Today, the modern Mexican-style restaurant has grown tremendously with six locations nationwide serving gourmet nachos and more. The 5,434-square-foot lease in Society Wynwood will be the restaurant’s seventh and the only one in Florida.

“We are excited to be part of the continued growth of Wynwood and bring compelling tenants such as Starbucks, Chama De Fogo and Nacho Daddy to this project,” said Tricera President | Head of Leasing Dustin Ballard. “Society Wynwood will add to the elevated ecosystem of restaurants, retail and living experiences the eclectic art district offers its residents and guests.”

Irma Figueroa, Andrew Rosenberg and Max Gelband with Comras Company are Tricera and LNDMRK’s leasing representatives at Society Wynwood.

Elizabeth Higgins, Marty Arrivo and Aracibo Quintana of Acre represented Starbucks in its lease. Elizabeth Hazan of Byblos Hospitality Holdings was a consultant for Chama De Fogo. Jenny Geffen and Dave Preston with Colliers represented Nacho Daddy.

In partnership with Society Wynwood developers PMG and Greybrook Realty Partners, Tricera and LNDMRK are forward-purchasing over 32,000 square feet of ground floor retail at the project. The 2431 NW Second Ave. development is conveniently located in the center of the Wynwood Art District, within walking distance of many new developments and retail shops. Along with the ground-floor retail, Society Wynwood has almost 300 modern residential units and a private parking garage, making it the area’s premier new development.

 

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Terra Offers $500M For Oceanfront Miami Beach Condo Building

Terra has offered half a billion dollars to buy out an oceanfront condo building in Miami Beach, six months after a Related Group-led venture backed out, according to a letter obtained by Commercial Observer.

Located at 5445 Collins Avenue, the property, Castle Beach Club, sits on 4 acres along the famed Miami Beach strip, offering 576 linear feet along the ocean.

The deal — if finalized — would effectively become the most expensive land purchase in the Miami area. Terra, led by David Martin, will most likely tear down the 18-story building and construct an ultra-luxury condo complex. The site can accommodate a structure up to 200 feet tall.

The proposed buyout is part of a growing trend following the deadly collapse of Champlain Towers South, a condominium built in 1981 that was poorly maintained. Some condo associations of similar, decades-old buildings are choosing to sell to developers to avoid footing the bill for costly repairs, now mandated by Florida law.

In late 2021, the homeowners association of Castle Beach Club put the property, which dates back to the 1960s, on the market, hiring a team led by Colliers’ Ken Krasnow and Gerard Yetming to shore up the highest price.

Jorge Perez’s Related Group and 13th Floor Investments first swooped in a year ago, together bidding $500 million. But the joint venture backed out of the deal in October after their financing fell apart as interest-rate hikes rattled capital markets and a handful of unit owners held out.

Last Friday, Terra officially entered the picture, matching Related’s original offer.

A letter penned by Yetming was sent to unit owners announcing Terra’s $500 million bid, which averages out to $877,192 per unit. The property’s 570 unit owners are set to receive individual offers in the next two weeks, after which they will have about two months to decide whether to accept the offer. To complete the sale, Terra will likely need 95 percent buy-in from condo owners.

“We can confirm that Terra has the capability to complete this purchase, and has the funding in place to do so,” according to a letter.

The source of Terra’s financing remains unclear, though the developer is said to have a partner on the deal with whom it previously worked with.

Back in 2022, Terra and seven other firms had bid on Castle Beach Club, according to The Real Deal, which first reported the most recent proposal.

 

Source:  Commercial Observer

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New Office Tenants And New Development Balance Out Vacancy In Miami

While the economy has had a turbulent few years — with a global pandemic, record inflation and political drama — the vacancy rate in Miami’s office market has remained fairly static, as the horde of new-to-market tenants was balanced by new development, according to second-quarter research from Colliers.

In the second quarter of 2022, Miami-Dade’s vacancy rate stood at 11 percent across its 1,693 buildings totaling 94.3 million square feet, per the report. That marks the highest rate since the first and second quarters of 2021 when it reached 11.3 percent.

That’s above the pre-pandemic baseline in the second quarter of 2019, when the vacancy rate registered at 9.2 percent — on 91.7 million square feet of office space citywide.

Andrew Hellinger, co-principal of Urban-X Group, has been the beneficiary of national and local businesses coming to set up shop in Miami. For example, his investment in the mixed-use River Landing, along the Miami River, has paid off.

“The Health District, where River Landing is located, historically had a 0 percent vacancy rate. With the opening of the offices at River Landing, we introduced much-needed space to a tight market, which has leased much faster than we expected,” Hellinger said in a statement to Commercial Observer

The vacancy rate has remained more or less the same in Miami-Dade County despite the lingering concern that COVID-19 could stifle the return to office just as more office space was being added, Jonathan Kingsley, executive managing director at Colliers, pointed out.

“There is significant growth into South Florida combined with organic growth of existing companies who are expanding their footprints and upgrading the quality of the buildings and spaces in which they operate their businesses,” Kingsley said in a statement. “This has kept a healthy balance to offset companies and firms who are downsizing due to remote and/or hybrid work models.”

Developers have been building more in the last three months than they were in 2019 with 3.2 million square feet of office space under construction currently, compared to the 2.8 million being built in the second quarter of 2019.

Within Miami-Dade, the highest office vacancies were in the Wynwood District at around 27.7 percent and Downtown Miami with 22.4 percent — both popular areas that have seen recent deliveries. Class A suffered the highest vacancies as well, with Wynwood’s top spaces sitting empty at about 54.1 percent and 25.7 percent in Downtown.

Meanwhile, Hialeah Gardens saw the lowest vacancies in Miami-Dade, with the up-and-coming district having only 2.4 percent of its 792,137 square feet of office space — all Class B and C — available in the second quarter. Medley came in a close second with 2.9 percent of its 2.4 million square feet vacant.

In South Florida’s two other counties, vacancy rates weren’t too far off. Palm Beach County, with its 1,268 buildings and 52 million square feet of office space, had a vacancy rate of 9.1 percent, according to Colliers, while Broward County had an 11.7 percent vacancy rate within its 62 million square feet of 1,488 office buildings.

But recent hiccups in the economy are beginning to ripple through the market, particularly on the investment sales side.

“There are growing challenges on the capital markets/investment sales transactions for office buildings in recent weeks. Many buyers are forced to re-price (i.e. reduce) their offers based on increasing interest rates and cost of equity and debt,” Kingsley said in a statement. “Likewise, many owners who were considering sales of their office assets, are pausing until the debt markets settle and buyers return to more aggressive offers to purchase.”

 

Source:  Commercial Observer

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Leasing Activity Heats Up At The Gateway at Wynwood

As Miami continues to experience a post-pandemic boom, The Gateway of Wynwood – the newest office building in the Wynwood area – announces tech start-up OpenStore’s expansion and the growth of its impressive roster of tenants with the addition of two new leases.

Aron Rosenberg, the developer behind The Gateway at Wynwood, has signed a lease with OpenStore for an approximately 26,000-square-foot expansion, bringing the company’s total footprint in the building to over 40,000 square feet. At the same time, The Gateway at Wynwood signed a new lease with Baseline, a vertically integrated platform investment company, for 5,000 square feet of office space. It also signed a lease with Mediterranean-Asian-Fusion Steakhouse concept DALIYAH and MIZU Rooftop Garden for approximately 6,000 square feet of ground-floor restaurant space plus the nearly 3,000-square-foot rooftop area.

The Gateway at Wynwood was represented by Colliers’ Executive Managing Director Stephen Rutchik, Managing Director Tom Farmer and Director Tyler de la Pena in the office lease transactions. CBRE’s Alex Cesar, First Vice President of Retail Advisory and Transaction Services, and Drew Schaul, Senior Vice President of Advisory and Transaction Services, represented The Gateway at Wynwood in the retail lease.

“Leasing activity has ramped up since the building’s opening, and we are excited to welcome these new tenants and see a current tenant expand so fast at The Gateway at Wynwood,” said Shelby Rosenberg, R&B Realty’s Head of Development and Acquisitions, Asset and Property Manager, US Portfolio. “Our building continues to remain a hub for new-to-market tenants, expansions and relocations to Wynwood, the ‘place-to-be’ for companies looking for a live-work-play environment. We are proud of the role we have played in the transformation of this community into one of Miami’s hottest neighborhoods.”

The Gateway at Wynwood, which opened in 2022 as the first tenant took occupancy in January, recently achieved LEED Gold Certification. The building implemented practical and measurable strategies and solutions in areas including sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. Green buildings allow companies to operate more sustainably and give the people inside them a healthier, more comfortable space to work.

OpenStore, the building’s first tenant to officially move in, is a platform that allows entrepreneurs with Shopify businesses to sell their companies and receive liquidity for what they’ve built. Founded by Keith Rabois of Founders Fund, Jack Abraham of Atomic, and Michael Rubenstein, the former President of AppNexus, OpenStore connects merchants and customers into a single unified shopping experience through access to data, information, and capital. The company announced in July that it raised $30 million in Series A funding, with a valuation of $250 million. OpenStore’s goal is to offer instant liquidity for eCommerce entrepreneurs.

Baseline is focused on developing and operating short and long-term single-family rentals. Baseline’s principals have delivered over 4,000 market-leading vacation rentals and 20,000 single-family homes with an aggregate value of over $7 billion. This will be the Orlando-based company’s first Miami office.

DALIYAH and MIZU Rooftop Garden’s concept was created by DZYNE Hospitality and OPSO Group, which are partnering with Canada’s A5 Hospitality. DZYNE Hospitality, led by Derrick Orosa, aka “DZYNE,” is working with OPSO Group, the company behind some of Miami’s trendiest restaurants, including Midtown’s MAÜ MIAMI and KAVO MIAMI, on the new concept. Founded by Alexandre Besnard and Patrick Hétu, A5 Hospitality has been a leading player in Montreal’s hospitality industry for 15 years. A5 has a varied yet targeted offering, ranging from high-end Japanese dining to large-scale entertainment projects, specializing in the development and operation of restaurants and bars. MIZU Rooftop Garden is set to open first, in time for Art Basel 2022, with the downstairs restaurant, opening by Summer of 2023.

The_Gateway_at_Wynwood_Rooftop

“Our Rooftop Garden has the most amazing views of the entire Miami Skyline, South Beach, Brickell, Downtown, Midtown, Design District and of course, Wynwood”, said DZYNE of DZYNE Hospitality. “Our high-end Mediterranean Japanese Steakhouse will be situated in between all the action of Wynwood, making it the ideal destination location, where you can have amazing Japanese cuisine with disco, retro and high energy music playing throughout the restaurant or take our private elevator directly to the Rooftop Garden and lay back for some specialty cocktails, bottle service, Japanese Krudos, fresh sushi and cold Japanese dishes, as well as Wagyu and Kobe BBQ.”  

The Gateway at Wynwood offers about 195,000 square feet of leasable Class A office space and nearly 25,900 square feet of prime street-level retail space. Designed by renowned architect Kobi Karp, the environmentally responsible building features flexible floorplans, a private rooftop terrace, gym, unique bay window system, 24/7 on-site security, vibrant exterior cladding, and 2:1,000 on-site covered parking. The Gateway at Wynwood announced the building’s first office lease with biotech company Veru Inc in the summer of 2021. The eight-year, 12,155-square-foot lease will serve as the company’s global headquarters and triple Veru’s current office space.

 

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Retail Space Is Hard To Find In South Florida Thanks To Migrating Restaurants

The lack of Covid-19 restrictions in the Sunshine State is attracting an “unrelenting migration” of restaurants to South Florida, according to the latest retail market reports from Collier International (CIGI).

That migration, in turn, has jacked up retail rates in Miami-Dade, Broward, and Palm Beach counties. It’s also made it extremely difficult for new restaurants and stores to open in high-trafficked areas, said Jonathan Rosen, Colliers’ director of retail services in South Florida.

“I think the over-arching message is [South Florida] over the past 12 months has been a safe haven for a lot of these out-of-market retail and restaurant operators,” Rosen said. “…They don’t have to worry about being closed down by the government or Covid-19 restrictions.”

And when the retail and restaurant operators do move from, say, New York, that attracts other New York operators to move to South Florida.

“They feel comfortable seeing their peers…coming down to this market,” Rosen explained.

Restaurateurs and retailers aren’t just coming from New York. Vacant “second generation restaurant space” is being taken over by restaurateurs from the northeast United States and South America, according to Colliers’ latest restaurant and retail reports.

“True Class A retail space is in the highest demand, as well as stores at grocery-anchored and mixed-use centers,” Colliers noted.

The scarcity of space has had an effect in Miami-Dade, where the asking leasing rates increased 12.5% to $38.98 per square foot this third quarter, from $35.54 a square foot year-over-year. Miami-Dade’s overall vacancy is 3.9% this third quarter, whereas in last year’s third quarter the vacancy rate was 4.5%.

In Broward, the asking rental rates increased 3.5% to $22.96 a square foot, from $22.18 a square foot year-over-year. The vacancy rate also fell to 5.1% compared to 5.4% in last year’s third quarter.

In Palm Beach County, third quarter rental rates climbed 9.8% to $24.98 per square foot, from $22.76 a square foot year-over-year. Overall vacancy also plummeted to 4.8%, compared to 5.2% at last year’s third quarter.

Rosen said the market is particularly strong in Miami’s Brickell, downtown, and the Wynwood Arts District, where retail and restaurants are in close proximity to offices. Not only are people starting to return to the office, Rosen said, but there are also new exciting tenants coming into the Greater Downtown Miami market such as Microsoft (Nasdaq: MSFT) opening an office at 830 Brickell and venture capitalists like OpenStore and Founders Fund moving into Wynwood. Retail is also doing well in other densely packed places such as Aventura, Fort Lauderdale’s Las Olas Boulevard, Miami’s Coconut Grove, and Miami Beach, Rosen added.

Although the Downtown Miami submarket does have an unusually high direct vacancy rate of 19.9%, according to Colliers’ Miami-Dade County Retail Market Report. Rosen explained that the retail in Miami’s Central Business District has been “left vacant strategically” due to an ongoing streetscape plan funded by the City of Miami and developer Moishe Mana, who owns 60-plus properties on or near the Flagler Street corridor.

“There are long-term plans to transform it into more of a retail and restaurant hub,” Rosen said.

There are also plans to construct even more retail. The Colliers reports note that 3.7 million square feet of new retail is under construction in Miami-Dade, 363,000 square feet in Broward, and 389,000 square feet in Palm Beach County.

Headquartered in Toronto, Colliers is a diversified investment management company and brokerage that specializes in commercial real estate. The company has offices in 67 nations. Its South Florida operations include Fort Lauderdale, Boca Raton, and West Palm Beach.

 

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Development Site In Downtown Miami Sells For $10 Million

As downtown Miami continues to experience an unprecedented amount of activity, Colliers’ Urban Core Division has closed on another land sale located at 56 SW 1st St and 65 SW 2nd Street.

The development site, which sold for $10 million will be home to The M Tower, an approved 53-story, 440-unit apartment tower. This is Colliers’ Urban Core Division’s third land deal in downtown Miami in the last month, totaling close to $100,000,000.

Colliers’ Executive Managing Director Mika Mattingly and Associate Cecilia Estevez represented Downtown 56, LLC, the seller in the transaction. EP Realty’s Estrella Perez represented Downtown 1st Street LLC, the buyer.

M Tower will consist of 622,783 square feet of gross building area, with 25,732 square feet of office space and 1,089 square feet of retail. The development site also includes a parking garage owned by the Miami Parking Authority (MPA), located at 70 SW 1st St.

The 16,718-square-foot site includes air rights, waivers, and the ability to build residential units over the adjacent parking garage. The proposed units are targeted toward students and young professionals looking for a connected urban experience, currently the largest market of downtown residents.

“The downtown Miami market has never been more active than it is right now,” Mattingly said. “This market is poised to see the largest influx of investors ever from other states and this transaction highlights that trend. New York-based Downtown 1st Street LLC’s purchase of this development site proves that the migration from the Northeast has only accelerated as the vibrant downtown neighborhood continues to evolve. 

“One thing that Miami has that other major US cities don’t have is a business-friendly mayor who is welcoming new businesses and investment that creates jobs and expands the city’s tax base to boost our local economy,” Mattingly added. “For years, Miami has promoted smart growth with greater density in downtown Miami due to the area’s easy access to mass transit. The vibrancy of downtown Miami is also increasingly attracting young professionals and families, and this project offers a tremendous opportunity to accommodate the growing population.”

The project has Urban Development Review Board (UDRB) approval, which it obtained through an extensive RFP process. The entitlement provides additional air rights, waivers, and the ability to construct a residential tower over the adjacent Miami Parking Authority (MPA) garage.

M Tower will provide residents with pedestrian access to shops, restaurants, and offices in the Central Business District, an up-and-coming trendy area. M Tower is strategically located near mass transit and major thoroughfares, with direct access to I-95 and the Miami Avenue Metromover station. It is a few blocks away from MiamiCentral Station, which connects to Fort Lauderdale, West Palm Beach, and soon Orlando. The site is also near PortMiami, known as the cruise capital of the world.

Downtown Miami continues to experience robust demand as it attracts a younger, wealthier and more educated population. Downtown is the largest employment center in Miami-Dade, with more than 175,000 employees and a day-time population of 235,000. The city is home to the highest concentration of banks and financial institutions outside of Manhattan, and tourism is at an all-time high with more than 6 million visitors per year. M Tower stands to benefit from the area’s rapid population growth. Since 2010, the population of Downtown Miami has increased approximately 52% and is expected to increase another 16% by 2024.

 

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Prime Development Site In Downtown Miami Hits The Market

As downtown Miami continues to evolve, one of the area’s most strategically located development sites has hit the market. The 37,857-square-foot parcel, currently occupied by a three-story building, is across the street from MiamiCentral’s main entrance.

MiamiCentral is home to the MetroRail, MetroMover, Tri-Rail, MetroBus, the Trolley system and Brightline, a commuter train that connects Miami to Fort Lauderdale, West Palm Beach and soon Orlando. Colliers’ Urban Core Division brokers Mika Mattingly, Executive Managing Director, and Cecilia Estevez, Associate, are marketing the property, located at 49 NW 5th Street. The site, which doesn’t have an asking price, could sell for over $40 million.

“This opportunity is unmatchable,” said Mattingly, who leads Colliers’ Urban Core division. “The buyer could build up to 400,000 square feet and 435 residential units just steps away from a mass-transit hub. Brightline projects 12 million visitors annually will ride the train, giving this property great exposure and a competitive advantage over other residential developments. The developer would be exempt from having to build residential parking spaces due to its proximity to public transit.”

The T6-80 zoning of the property would permit several uses, including residential, hotel, office and retail. The maximum height permitted at the site is 80 stories with unlimited height available through public benefit bonuses.

The development site is home to a building of historic value that could be demolished or designated as a historical landmark to be included on the National Historic Registry. Under such designation, the Citadel building, as it is called, would be protected, and the developer would be able to allocate the air rights to the northern parking lot.

The Citadel was built in 1925 to house the Salvation Army in response to a growing demand for religious and humanitarian services during the land boom of the 1920s. Although only a portion of this historic building survives as the entry portico to an office complex, the existing architectural details reveal the rare Venetian Gothic subtype of the Gothic Revival style, according to the City of Miami.

Today, Citadel is home to CenturyLink, a telecommunications company with over two years remaining on the existing lease. The building is currently producing significant revenue.

“This property is ideal for an efficient and cost-effective redevelopment with the ability to receive supplemental cash flow throughout the planning and approval process,” Estevez said.

The site is located blocks away from the Perez Art Museum, the Frost Museum of Science, Biscayne Bay, Miami Worldcenter, Miami Dade College and several residential and office buildings.

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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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Brickell Dev Site Hits Market, Broker Expects To Fetch More Than $25M

A developable assemblage in Miami’s Brickell neighborhood hit the market, with zoning that allows for two 48-story towers. The listing broker said he expects it to sell for more than $25 million.

Owner Progesti Corp. listed the 1.3 acres at 180 Southwest Ninth Street, 244 Southwest Ninth Street, and 901 Southwest Third Avenue. Progesti, whose president is Jose Nunez, bought the properties, which currently house two small multifamily buildings, in 1999 for $2.85 million, a deed shows.

ColliersVirgilio Fernandez and Gerard Yetming are lead brokers on the listing.

Up to 531,258 square feet can be built on the two parcels, with a mix of hotel, condominiums, office and retail. The parcels are walking distance from each other, but aren’t contiguous.

The property at 901 Southwest Third Avenue and 244 Southwest Ninth Street has a three-story, 68-unit multifamily building that was constructed in 1962, according to property records. The other, at 180 Southwest Ninth Street, has a three-story, 24-unit multifamily building constructed in 1964.

Fernandez said he has seen interest so far for the assemblage, particularly from New York investors. He said he expects the sale price to far exceed $25 million.

The listing comes on the heels of another swath of land hitting the market. A Biscayne development site spanning 3.2 acres at 11240 Biscayne Boulevard near North Miami has an asking price of $10.5 million.

 

Source:  The Real Deal

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Biscayne Boulevard Dev Site Hits Market For $11M

A multifamily and commercial development site along Biscayne Boulevard near North Miami hit the market for $10.5 million.

Owner Alex Silberman purchased the 3.2 acres of land at 11240 Biscayne Boulevard in August 2012 for $2.9 million from Biscayne 114 Center of New York, property records show.

The asking price shows a significant uptick in valuations since then.

Colliers’ Gerard Yetming, Julian Zuniga and Mitash Kripalani listed the land for sale on behalf of Silberman.

The Biscayne Boulevard site has two different zonings, as 2.17 acres is designated for 10 to 21 multifamily units per acre, and the remaining 1.06 acres is designated for a commercial use such as retail, according to a press release.

Yetming said in the release that the site is centrally located and comes at a time when the multifamily market is doing well.

 

Source:  The Real Deal

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