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South Beach Office Building Sells For $52M

East End Capital and GreenOak Real Estate offloaded a South Beach office building for $52.3 million, property records show.

The four-story building, located at 555 Washington Avenue, is in a district known for its party scene, just a block from both 5th Street and nightlife mogul David Grutman’s popular Goodtime Hotel.

The 137,579-square-foot property offers 243 parking spots, 46,000 square feet for offices and 22,000 square feet of street-level retail, most of which is leased to CVS.

For the buyer, the Boston-based Davis Companies, the purchase appears to be its first office foray in South Florida.

The sellers paid $38 million in 2018 for the mixed-use property, built in 2001. The $14 million profit in just four years reflects Miami Beach’s growing appeal for top executives.

 

Source:  Commercial Observer

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Wynwood Annex Sells To New-To-Market Buyer For $44 Million

DWNTWN Realty Advisors closed a monumental transaction in Wynwood’s history, representing the culmination of many years of organic, artistic and eclectic development efforts, led by many shareholders with vision and grit inspired by visionaries like Tony Goldman.

This transaction, the $44 million sale of Wynwood Annex, underscores a paradigm shift in rates and market fundamentals and sets a new bar for the Miami office market.

Wynwood, a once sleepy and functionally obsolescent shoe wholesale and manufacturing district in the center of Miami, has transformed into one of the most vibrant and cool streets in the country. This office transaction represents a turning point in the market. Wynwood is now accepted as home by the top VCs, technology and finance firms like Founders Fund, Atomic VC, GAC Financial, Ramp Financial, Open Stores, Blockchain.com and Schonfeld – to name a few.

Miami is now regarded as the “Capital of Capital,” and efforts by the founders of these new to Miami companies like Peter Thiel, Keith Rabois and Jack Abraham, in lockstep with Mayor Francis Suarez, has created a pro-business city with inertia and durable momentum behind it. The market dynamics and fundamentals in Wynwood currently are some of the strongest in the country as markets, tenants and cities have rebalanced. Today, decoupled from their old foundations in the pandemic, business leaders have taken a step back to rethink everything.  Investors, tenants and employees continue to choose Miami and Wynwood as their home and headquarters because it is an ideal place to live, work and enjoy a great quality of life.

DWNTWN Realty Advisors was retained by Related Group President Jon Paul Perez and East End Capital Managing Partner Jonathan Yormak to stabilize the asset during the depths of the pandemic. Tony Arellano P.A. and David Lerner at DWNTWN led the marketing and lease-up efforts, stabilizing over 60,000 square feet of rentable office area within six months to 100% occupancy, with landmark tenants all new-to-market. This is a departure from historical Miami office norms.

“Typically, we see relocations from within the city as the majority of tenants play musical chairs,” Lerner said. “In this cycle our firm took advantage of changing fundamentals and with our feet on the ground, led the charge outpacing competitive office towers in Miami, pushing Wynwood as the go-to creative office district.”

The lease-up was so successful it attracted unsolicited offers from all over the country. DWNTWN ran a very clean and concise off-market process and connected with a new-to-market buyer, Brick & Timber Collective, who closed the approximately $44 million sale.

Brick & Timber Collective is from the San Francisco’s Bay Area, making its first foray into the Wynwood Miami market. DWNTWN Co-Founders and Managing Partners Tony Arellano and Devlin Marinoff represented both sides of the transaction.

“We are honored and grateful to be a participant in Wynwood over the past 16 years. We are excited to see Wynwood become the go-to neighborhood for technology and modern finance,” Arellano said. “Wynwood Annex is the perfect fit for this San Francisco-based buyer’s debut investment in our market. DWNTWN is grateful to investors like Brick & Timber Collective for adding value to our market, community and the Greater DWNTWN Miami Area.”

DWNTWN has more than $100 million in pending transactions expected to close in the first quarter of 2022, with a trailing 12-month gross sales volume of a quarter billion dollars.

“The incredible demand for prime real estate in Miami is only getting stronger,” Marinoff said. “The pandemic accelerated the city’s evolution into a vibrant, full-service economy and a place where you can work year-round in a pro-business environment. Miami’s ‘secret’ is out and businesses and investors from high-tax states around the U.S. are taking notice.”

Over the course of his career, Arellano has completed more than 150 significant leases in Wynwood and played a pivotal role in the neighborhood’s evolution from an overlooked, largely neglected collection of old industrial buildings, into a vibrant new urbanist walkable city center.

Marinoff and Arellano have also brokered many of the neighborhood’s hallmark transactions and continued to set the standard as market leaders of the Greater DWNTWN Miami Area.

 

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Psychedelic Therapy Clinic To Open First Florida Site In Wynwood

Field Trip Health, a psychedelic therapy company, picked one of Miami’s trippiest neighborhoods for its first location in Florida. The Toronto-based company plans to open in Wynwood.

Field Trip inked a lease for a 7,500-square-foot space at The Wynwood Annex, an office building that the Related Group and East End Capital built at 215 Northwest 24th Street, said Jonathon Yormak, who leads East End Capital. The eight-story, 65,000-square-foot building was completed more than three years ago and is now fully leased.

Field Trip is part of a wave of new psychedelic therapy companies that have raised tens of millions of dollars to invest in the treatment of depression and post traumatic stress disorder with drugs such as ketamine. Ketamine is the only hallucinogenic that’s currently legal for patients outside of a clinical study in the U.S., the New York Times reported.

Two bills proposed in the Florida Legislature would direct the Florida Department of Health and the state’s board of medicine to study the efficacy of ketamine, MDMA and psilocybin, the Daytona Beach News-Journal reported last week. Oregon was the first state to legalize the therapeutic use of psilocybin, the substance found in magic mushrooms. Other cities and states have decriminalized the drug or are considering similar legislation.

Field Trip has locations in New York, Toronto, Los Angeles, Chicago, Atlanta, Houston, Seattle, Amsterdam and Fredericton, Canada, according to its website. Forbes reported in July that Field Trip plans to have 20 clinics by the end of this year and 75 by 2024.

Yormak said Field Trip has been interested in the Miami market, and the company approached the developers to lease a space at the Annex. Other tenants in the building include venture capital firms Founders Fund and Atomic; Live Nation; and e-commerce company OpenStore.

Tony Arellano of Dwntwn Realty Advisors represented the landlord in the majority of leases at the Annex, including Field Trip. Miles Glascock at JLL represented Field Trip.

Modified gross rents have exceeded $62 per square foot, Yormak said.

The Annex is reportedly on the market. Yormak said that the partnership has not made a decision whether to sell, but confirmed that potential buyers have made offers to acquire the property.

 

 

Source:  The Real Deal

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Brooklyn Developer Buys Wynwood Properties For $39 Million

A developer from Brooklyn, New York made three property acquisitions in Miami’s Wynwood Arts District, potentially setting up a major development.

The deals, which totaled $38.86 million, give LivWrk Sol Wynwood LLC, managed by Asher Abehsera, the CEO of Brooklyn-based LivWrk, ownership of 2.45 acres in one of Miami’s fastest-growing neighborhoods.

The biggest deal was for $18.51 million, with EEFC 2400 NMA Owner LLC, managed by New York-based East End Capital Managing Principal Jonathan Yormak, selling 1.16 acres at 2400, 2412 and 2418 N. Miami Ave. plus 29 N.W. 24th St. The site currently has 11,305 square feet of commercial buildings. It last traded for $6.25 million in 2015.

In addition, EEFC 2500 NMA Owner LLC, also part of East End Capital, sold the 19,813 square feet of property at 2500 N. Miami Ave. and 33 N.W. 25th St. for $6.5 million. It has a 3,045-square-foot commercial building.

Finally, LivWrk Sol Wynwood paid $13.85 million to 3 CI Holdings, managed by Catherine DeFrancesco, for the 36,250-square-foot site at 48 N.W. 25th St.

 

Click here to read more about this story.

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LIVWRK In Contract To Buy Wynwood Assemblage From East End Capital

LIVWRK, a Brooklyn-based development firm, is making its first foray into Miami commercial real estate, The Real Deal has learned.

The company, led by founder and CEO Asher Abehsera, is under contract to buy a 2.5-acre assemblage in Wynwood, according to sources. East End Capital is selling the properties at 2400 and 2500 North Miami Avenue in Miami. LIVWRK will partner with the neighboring property owner at 48 Northwest 25th Street

Abehsera confirmed that the deal is under contract. A source said the price is about $25 million, and the sale is expected to close in about a month and a half.

Abehsera said his company is interviewing architects from around the world to “do something that’s more elevated from a design perspective” than what has been built in Wynwood so far.

The assemblage could be developed into more than 650,000 square feet with a mix of residential, retail, hotel or creative office, Abehsera said.

East End Capital had planned to develop the North Miami Avenue properties into two mixed-use projects with co-living, micro units, coworking and traditional office space. The New York and Miami-based firm, led by founder Jonathon Yormak, secured approvals for the projects last year.

The other parcel is owned by 3 CI Holdings LLLP, an entity managed by Catherine DeFrancesco, owner of Sol Yoga, and Andy DeFrancesco. Alex Karahkanian and Cahane sold the office and retail building on that site to the DeFrancesco entity last year for $17 million.

In March, East End Capital sold a Wynwood retail property that was in foreclosure to Cahane’s Forte Capital Management and Jon Krasner’s 7G Realty for $11.8 million.

East End and its Australian investors were recently ordered to pay back a $5.5 million deposit tied to a failed sale of their office tower in downtown Miami.

In Brooklyn’s Dumbo neighborhood, LIVWRK and CIM Group are in contract to sell the rental portion of their luxury development at 85 Jay Street to RXR Realty for $220 million.

 

Source:  The Real Deal

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Investors Team Up With Pastry Chef And Chocolatier For Planned Wynwood Market

A new high-end market with a restaurant, bean-to-bar chocolate station, patisserie and cocktail bar is coming to Wynwood.

Ananda Market, led by partners Antonio Ortega and Piero Pini, signed a 10-year lease for nearly 12,500 square feet at 310 Northwest 25th Street.

Forte Capital Management, led by Chaim Cahane and Dov Tepper, and Jon Krasner’s 7G Realty recently paid $11.8 million for the retail property at 310-318 Northwest 25th Street. They acquired it from East End Capital. Existing tenants include Barcelona Wine Bar and Grace Loves Lace, an Australian wedding dress store.

The market and restaurant will be led by chocolatier and pastry chef Jorge Kauam, Ortega said. Construction is slated to begin in about six to seven months, and the concept could open in about 10 months. Ananda will sell pastries, elaborate chocolates, breads, cocktails, and organic and sustainable food products. At night it will also function as an event space.

 

Source:  The Real Deal

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Two Venture Capital Funds And StartUp Ink Leases in Miami’s Wynwood

Venture capital funds Founders Fund and Atomic, as well as the start-up OpenStore, signed three office leases totaling 22,000 sq. ft. in Miami’s Wynwood Arts District, at Wynwood Annex, a creative office building developed by Related Group and East End Capital.

Founders Fund is a major Silicon Valley venture capital firm with billions of dollars in capital under management. Co-founder Peter Thiel, who also co-founded PayPal, showed interest in Miami last year when he signed a short-term lease for office space before selecting Wynwood as home to its permanent Miami office.

Already home to popular tech companies Spotify and Live Nation and start-ups like the CodelittWyncodeASOFTIO Software, and now, OpenStore, some are beginning to refer to Wynwood as the epicenter of Miami’s urban core.

According to a release, the following recent announcements are also helping to solidify Wynwood as the creative hub of Miami:

  • Microsoft and SoftBank Group, one of the world’s largest tech investors, announced they are looking for 100,000+ sq. ft. of space;
  • Announced last week, Wynwood will host the world’s largest Bitcoin Conference in June 2021 where Twitter CEO Jack Dorsey will speak at Mana Convention Center.  The conference was previously held in Los Angeles, California; and
  • Miami Mayor Francis Suarez announced the City’s first-ever Chief Technology Officer and is currently considering a contract for employees to receive all or part of their salaries in Bitcoin, and for the public to have a Bitcoin option while paying for city services.    

 

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East End Capital Sells Wynwood Building For $12M, Resolves Foreclosure

An affiliate of East End Capital sold a commercial building in Miami’s Wynwood Arts District for $11.8 million, resolving a foreclosure lawsuit in the process.

EERC 310 Owner LLC, led by Jonathan Yormak and David Peretz of New York-based East End Capital, sold the 19,891-square-foot building at 310 and 318 N.W. 25th St. to 310 NW 25 SPE LLC, managed by Chaim Cahane of Miami Beach-based Forte Capital Management and Jonathan Krasner. The buyers assumed the seller’s $11 million mortgage with FS Rialto 2019-FL1 Holder LLC, an affiliate of Rialto Capital Management.

 

Click here to read this story in its entirety.

 

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New Office-Apartment Project In Miami’s Wynwood Gets $136 Million Refi

A recently completed office-apartment project in Miami’s booming Wynwood Arts District just secured $136 million in refinancing to pay off construction loans.

The Wynwood 25 apartment building and adjacent Wynwood Annex office building opened last year.

Development team East End Capital, based in New York with a Miami office, and the Miami-based Related Group, founded and led by Jorge Perez, secured the loan from The Blackstone Group Inc.’s Blackstone Real Estate Debt Strategies.

The nine-story, 289-unit Wynwood 25 and the 60,000-square-foot Wynwood Annex sit on the northwest corner of Northwest Second Avenue and 24th Street.

Wynwood 25, which was completed last June, is 90% leased. The market-rate building at 240 NW 25th St. offers units from 400-square-foot studios to three-bedroom apartments. Amenities include an electric car charging station, heated pool with sundeck, rooftop lounge and kitchen, library with coworking areas, gym, pet grooming area and 24/7 concierge.

Wynwood Annex was built with an eye toward tenants in the technology, advertising and marketing fields. Its first tenant is the California-based Live Nation entertainment company, which took a full floor. The building has loft-style offices with 18-foot ceilings and a rooftop terrace.

The office building has 4,429 square feet of ground-floor retail and the apartment building has 28,518 square feet of retail, including the Salt & Straw ice cream shop and the Uchi restaurant, which will open soon.

The financing is another project milestone officially marking its completion, Jonathon Yormak, founder and managing principal at East End, said in a news release.

About $110 million of the proceeds was used for Wynwood 25 and the balance for Wynwood Annex.

 

 

Source:  DBR

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