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The Dorsey Mixed-Use Project Gets $165M Refi

Berkadia has arranged a $165 million loan to refinance the construction loan for The Dorsey, a recently completed, mixed-use development located in Miami’s Wynwood neighborhood.

The 306-unit property was co-developed by Related Group, LNDMRK, and Tricera Capital. Berkadia Managing Directors Scott Wadler, Brad Williamson, and Matt Robbins, Senior Managing Director Mitch Sinberg, and Vice President Michael Basinski of Berkadia South Florida arranged the loan on behalf of the Miami-based sponsors.

The lender, MF1 Capital, delivered a quick and certain closing despite recent market volatility and provided the 30-month, interest-only loan to take out the existing construction financing.

“Despite the macro headwinds, lender confidence remains high for those projects of the highest quality,” said Jon Paul Perez, President of Related Group. “In the case of The Dorsey, we had several factors working in our favor: namely an unmatched location in the world’s most desirable neighborhood, gorgeous designs and a development team that’s second to none.”

Located on the corner of NW 29 Street and NW 3rd Avenue, The Dorsey is at the epicenter of the Wynwood neighborhood. The property features 73,000 square feet of office space, and 36,000 square feet of ground floor retail. The office portion is fully leased to Schonfeld Strategic Advisors, a New York-based hedge fund making The Dorsey their second headquarters, and Industrious, a leading coworking provider with over 160 locations globally.

The Dorsey also includes 306 luxury apartments, with floor plans ranging from 450 to 1,600 square feet. Residents will enjoy a highly curated set of on-site amenities, like a fitness center with a spin and yoga room, a first-class pet spa, a resort-style rooftop pool, an outdoor courtyard, and more. The development also boasts a collection of world-class art displayed across all common areas.

“The Dorsey is the premier mixed-use development in one of the most desirable 24-hour submarkets in the nation,” said Wadler. “The Property’s strong lease-up velocity and best-in-class features and finishes led to significant lender interest in the refinance.”

The Dorsey’s modern mixed-use design blends with Wynwood’s walkable, urban neighborhood. The project’s impactful integration into the neighborhood has already brought accolades as it was named the Multifamily Development of the Year for South Florida at the 2023 CoStar Impact Awards.

 

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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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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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Developers Move Fast To Meet Miami’s Growth Needs

As Miami continues to rebound from the pandemic, developers are making their mark by building new towers and infrastructure to meet the current and future needs of the city.

Rishi Kapoor, “Best of Miami: Leading Residential Comeback” nominee and founder and CEO of Location Ventures, said one leading developer worthy of recognizing is Terra Group, headed by CEO David Martin.

This past year, the group has hit a number of milestones, including breaking ground on mixed-income transit-oriented housing project Grove Central and securing a $64.8 million construction loan for the development of 27-acre multifamily development Natura Gardens. Two of the greatest achievements, Mr. Martin said, were the deliveries of condominium buildings Eighty Seven Park in North Beach and Park Grove in Coconut Grove, both of which promptly sold out.

Authenticity, Mr. Martin said, is key in development, and Terra wants to build projects that make neighborhoods better and give residents pride. In 2021, he said, a big goal for the group is to focus on market research centered on post-pandemic needs and trends that will inform later development decisions and innovations.

Having grown up in Miami, Mr. Martin said, he has a lot of pride in his community and tries to stay active in multiple ways by taking an interest in cultural, children’s and health issues. Currently, he said, he serves on the boards of Nicklaus Children’s Hospital and The Bass.

“There’s a lot of organizations I’ve taken an advisory role in,” he said, “and also a lot that we support financially.” 

One issue Mr. Martin said he hopes Terra can help address is that of affordable housing in Miami-Dade. Roughly 90% of the built environment in the county, he said, is zoned for single-family housing. 

“A lot of people look to solve affordability by creating subsidies which, in our view, is not sustainable,” he said.

“My view,” he continued, “is that affordable housing should be sprinkled throughout our entire county, not only in certain pockets. And we have an idea on how to build affordable housing in a more cost-effective way without requiring subsidies.”

Jorge Pérez, chairman of The Related Group, philanthropist and champion of the arts, also said this is an issue developers and officials must consider as the county moves into the future.

“Miami should not and cannot become a city solely for the 1%,” he told Miami Today via email. “We are going through one of the most exciting times in the history of the city; however, we cannot forget there are still countless families and individuals in need of opportunity. Officials must leverage the lessons of the globe’s other major metropolitan areas to build a Miami everyone – no matter their background or socioeconomic circumstances – can feel proud of.”

Mr. Perez and The Related Group were cited by Ron Shuffield, president & CEO of Berkshire Hathaway HomeServices EWM Realty, for their accomplishments and contributions to the Miami-Dade community not just this year but over a handful of decades.

“It’s his mark that established the style of the “new Miami,” Mr. Shuffield said. “When you look at the architecture of our landscape, so much of that Jorge had a hand in. It was his vision that could see what would become a dynamic downtown area.”

“I founded Related in 1979 with the goal of building an even better Miami,” Mr. Perez said. “More than four decades later, Miami has been totally transformed and is well on its way to becoming one of the world’s great cities. Nevertheless, each one of our jobs continues to be built with that original goal in mind, no matter the price point or target demographic.”

From including museum-quality art in developments to building community green spaces, he said, Related is always trying to deliver on that mission and improve the neighborhoods it builds in. The Group has expanded since its founding decades ago, and now has over  $2 billion worth of inventory planned and under construction across the nation. 

Last fall Jon Paul Perez, son of Jorge Perez, took the reins as company president. Being able to pass the crown to a relative, Jorge Perez said, is a great achievement in itself.

“I’ve been very fortunate to have been able to achieve a great deal over the course of my life and career,” he said, “but nothing beats building a family that shares my passion for making a positive difference.”

“Driving around the city and seeing just how far neighborhoods have evolved brings me great joy,” he continued. “But knowing that the next generation of the Perez family will continue my lifelong efforts is my ultimate legacy. I truly wish I could see the new heights Miami will reach and the role Related will play.”

The group’s focus, he said, is not just on development. 

“Through The Related Group Philanthropic Foundation,” he said, “we are providing support to a variety of causes, from health and wellness to social equity. We are also proud supporters of a variety of Miami-Dade organizations, including FIU, The National YoungArts Foundation and many more.”

As Miami-Dade continues to set its sights on becoming a tech and finance hub, Mr. Perez said he would work to support that goal. 

“I am committed to supporting elected officials and the private sector as they continue to attract national and international businesses to the city,” he said. “This influx of capital and talent goes far beyond real estate sales, it is about setting the city and region up for the next stage in its growth. From day one, I knew Miami/South Florida had the potential to be a hub for business, culture and lifestyle – and that vision is becoming more and more real with every day.”

Two other developers that deserve recognition for their work this year, Mr. Martin said, are Goldman Properties, which has developed a number of properties in Wynwood, and Dacra, headed by President and CEO Craig Robins.

 

Source:  Miami Today

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Related Scores $88M Construction Loan For Dorsey Project In Wynwood

The Related Group and its partners secured an $87.5 million construction loan for the Dorsey project in Wynwood.

Bank OZK provided the financing for the 12-story mixed-use development planned for Northwest Third Avenue between 28th and 29th streets. Related, Alex Karakhanian’s Lndmrk Development and Tricera Capital are partnering to develop the project.

The Dorsey will include 306 apartments, with a majority between 500 square feet and 620 square feet, with some as small as 400 square feet. The commercial space will be divided into about 33,000 square feet of retail and 78,000 square feet of office. The project will also run along a planned woonerf, a Dutch-inspired pedestrian-friendly street. The Related joint venture secured approval for the project from the Miami Urban Development Review Board in late 2019. Arquitectonica is the architect.

Monthly rents are expected to range between $1,800 and $3,900. Amenities will include a gym with a yoga studio and spa, a courtyard, recreation area for pets and a garage, according to a spokesperson.

Karakhanian said the building is expected to be delivered in about 20 months. Construction began this month.

Weck 29 LLC paid $32 million for the assemblage in September 2019. Affiliated companies secured the loan.

Related has been active in Wynwood, where Jon Paul Pérez, newly minted president of the firm, has taken the helm.

 

Source:  The Real Deal

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The Big-Money Development Push Is On In Wynwood, Allapattah

Related Group recently completed two projects in Wynwood and has more in the works, Vice President Jon Paul Perez told Bisnow this week. In Allapattah, it recently opened a gallery and is on the lookout for other opportunities.

“It’s gotten to that point where the buying and trading of land without developing … that ship has sailed,” Perez said. “If you’re buying land there now, you’re assuming you’re going to have to develop.”

Sterling Bay Director of Leasing Michael Lirtzman had a similar assessment. The Chicago development giant closed on a site for $18.9M in December 2018, at 545 Northwest 26th St., where it is building a 10-story, 300K SF office building called 525wyn.

“We got in at a pretty good number,” Lirtzman said. “The pricing was a little more restrained. Now it’s starting to push.”

Sophisticated national developers have “brought some discipline to the pricing,” he said, but he predicted values would stay high as the neighborhood hits maturity.

“Wynwood is in the mode of building now,” said Avison Young principal John Crotty, with the days of flipping mostly gone and big residential developers going vertical.

Allapattah, however, still has pockets of opportunity, he said. “Other than by the [Miami] River and by [Jackson Memorial] Hospital, there’s not much development.”

Related Group and partner East End Capital completed Wynwood 25 in July. Its 289 apartments are now 85% leased at $3.10 per SF, Perez said, and its 35K SF of retail is 45% leased. Another project, the Bradley, which Related developed as apartments, was instead leased entirely to Domio to be operated as short-term rentals.

Perez said that Related benefited by being the first mover, willing to take a risk.

“The bet that we were making was that people wanted to live in Wynwood, right?” he said. “I could never have told you, ‘Hey, I’m going to sign a lease for all the apartments to one operator,’ because I think at that time these types of companies did not exist.”

When Domio came around, “we were the only option for someone that wanted one of those companies to be able to be in the neighborhood,” he added. Domio reportedly fought off competition from rival short-term rental operators to sign the building.

The largest development deal in the area last year was a 1.6-acre site at the corner of Northwest 25th Street and Second Avenue, which buyer Property Markets Group and Greybrook Realty Partners paid $46M to acquire and redevelop from its existing use as a gallery into a six-story resident complex with 222 units, Crotty said.

Crotty said PMG spun out the bottom-floor retail to Tricera Capital, which should be able to garner rents around $80 per SF.

“That’s Main and Main,” said Crotty, a former NBA player who also serves as the Miami Heat’s TV analyst. “That’s top-of-the-market pricing.”

Blocks off the main drag, Wynwood rents are about $50 per SF, he said.

Office leasing at the Wynwood Annex has gone a little slowly, Perez said, but Live Nation leased a floor and he said he is in talks with potential tenants that are similar in size and credit to the events company.

“So definitely by the end of 2022, our buildings should be close, if not 100% occupied,” Perez said. 

Lirtzman compared Wynwood to the Fulton Market area of Chicago, which was “where young people went to hang out. There was no office, but a vibrancy in the neighborhood.”

Sterling Bay decided to build office projects there with large floor plates and top-line amenities geared for creative tenants. It is now building its seventh Fulton Market building in a six- or seven-block radius.

Sterling Bay’s Wynwood project, which recently topped off, will include a fitness center, an indoor/outdoor bar and 440 parking spaces. Its first tenant is architecture giant Gensler, and Lirtzman said a letter of intent has been signed for a consulting firm to take 8K SF.

Goldman Properties opened the 30K SF Wynwood Garage in 2018, and a boutique office building, the eight-story, 86K SF Cube Wynwd, opened last year. Another big project, The Gateway at Wynwood, a 460K SF Class-A office building, broke ground last week.

The same forces that shaped Wynwood have affected the working-class neighborhood of Allapattah, just to the west. Whereas Wynwood had largely been made up of industrial warehouses, Allapattah now buzzes with working-class businesses. But real estate pros have been hyping it as the next hot neighborhood.

Developer Robert Wennett has proposed a mixed-use development by Danish “starchitect” Bjarke Ingels. Neology Life Development Group head Lissette Calderon in October broke ground on No. 17 Residences Allapattah, a 14-story, 192-unit apartment at 1569 Northwest 17th Ave.

“If you go have lunch on a Wednesday, it’s cops, it’s firemen, there’s people that are working nurses, doctors,” Perez said. “Allapattah probably started selling at $20 a foot, and now you have property trading at 130 bucks a foot.

“We’re not in that game of finding land and hoping for the value to rise and then flipping. So we say, ‘OK, at this price, does it make sense where I could build apartments, office, whatever it may be, at this land basis?'” he continued. “We’re looking for sites that are large enough that we can do substantial projects — 300 or so apartments there — and we haven’t found one yet that we are moving forward on.”

Calderon said in an email that construction on No. 17 Residences Allapattah has reached the fifth floor and is expected to be completed in spring 2021. She highlighted its amenities, including smart technology for package receiving, a digital concierge, a gym with virtual fitness and a “bark park” where dogs can play.

She said Neology Life is planning to break ground on another mixed-use project near No. 17, with 323 units, ground-floor retail and office space. It would begin construction after No. 17 opens in late spring 2021.

Crotty said that besides the aforementioned projects, plus a few others in the pipeline — the 555 River House proposed by Avra Jain and a yet-to-be-developed parcel he sold to billionaire developer Moishe Mana for $8.5M — Allapattah “has yet to fill in and grow,” he said.

Florida’s Department of Transportation is exploring the possibility of building a new highway exit off Interstate 95 at Northwest 29th Street.

“That would be a game changer,” Crotty said.

 

Source:  Bisnow

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