This Week's South Florida Deal Sheet: Brickell Condos Lock In $77M Construction Loan

Aria Development Group, Largo and Place Projects have landed a $77M construction loan from Arkansas-based Bank OZK provided for a 105-condo project in Brickell, according to a release. The five-story development, called 2200 Brickell on the financial district’s Millionaire’s Row, is expected to break ground before the end of the year.

The development will replace 34 apartments on a 1.7-acre site that the joint venture acquired for $12.8M in 2021, according to property records. 2200 Brickell, designed by Miami-based Revuelta Architecture International with interiors by ODA New York, will offer condos from two to four bedrooms between 1,200 SF and 2,100 SF. 

Prices start at $1.2M and sales are being handled by One World Properties, which has offices in Miami, Fort Lauderdale and Shanghai.

Aria is a Miami-based development firm with projects in New York, Washington, DC, Miami, Nashville, Kansas City and Charlotte. Largo is based in New York and develops properties in Manhattan, Brooklyn and South Florida. Miami-based Place Projects is active in South Florida and on the Gulf Coast. 

FINANCING 

Neology Life Development Group refinanced a 192-unit apartment building in Allapattah with a $31.5M loan from Fannie Mae, according to a release. The loan has a 10-year term that includes five years of interest-only payments. 

The No. 17 Residences Allapattah, completed in April 2021 at 1569 Northwest 17th Ave., is billed as an “attainable luxury” development. Its one-, two- and three-bedroom apartments range from 600 SF to 1,125 SF. 

Berkadia South Florida brokers Charles Foschini, Christopher Apone and Shannon Wilson secured the financing on behalf of Neology, a local development firm led by Lissette Calderon. 

SALES

Nuveen sold the 415K SF office building at 801 Brickell Ave. in Miami’s financial district, according to a release, a week after the property was reported to be under contract. The buyers were New York-based Monarch Alternative Capital and Tourmaline Capital Partners, which has a CEO based in Philadelphia and staff throughout the U.S.

A price was not disclosed, but a source close to the deal told Bisnow that it sold for $250M, which would represent the highest price for an office asset to be achieved in South Florida this year. 

The property is 92% leased, according to the release, and renovation and repositioning have pushed from less than $60 per SF in 2018 to $120 per SF today. Nuveen paid $80.3M for the property in 2002, according to property records. 

An Albanian conglomerate called Kastrati Group paid $55M for the SLS Brickell hotel, The Real Deal reported. Members of Qatar’s ruling family, the Al Thanis, were the sellers. The deal for the 124-key hotel, located at 1300 South Miami Ave., breaks down to $444K per room.  

Miami-based broker Jordan Karp represented both the buyer and seller in the transaction, with Disruptive Real Estate broker Stefano Santoro assisting Karp on behalf of Kastrati Group. 

Qatar’s ruling family acquired the hotel for $43M in 2018, according to property records. The 54-story tower designed by Arquitectonica was built in 2016 by Coconut Grove-based Related Group. 

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New York-based Related Cos. purchased a 320-unit, income-restricted rental community in Miramar from ZOM Living, a multifamily developer with more than 24,000 apartments nationwide, according to a release. The garden-style apartments, called Sorrento and located at 8991 Southwest 41st St., sold for $48M, Commercial Observer reported. 

ZOM built the 13-building development in 2012 with financing from the federal Low Income Housing Tax Credit program as well as state and county debt financing programs. Berkadia provided a $25M acquisition loan to Related for the purchase, according to Commercial Observer. 

Tenants must be making below either 50% or 60% of area median income in Broward County. Sorrento has units ranging from one to three bedrooms with rents between $826 per month and $1,382 per month. 

THIS AND THAT

Industrious opened its first Fort Lauderdale location Monday, the coworking firm’s seventh South Florida location and 12th in the state. The 44K SF location at 200 East Las Olas Blvd. includes 132 offices and 533 desks, according to a release.

The 282K SF office building is owned by the asset management subsidiary of Prudential Financial called PGIM Real Estate and Stiles, a Fort Lauderdale-based full-service real estate development firm. 

Avison Young broker Greg Martin represented PGIM and Stiles in the transaction, which was a management agreement. Industrious was represented by Cushman & Wakefield brokers Matthew Cheezem and Tyler Reynolds. 

CONSTRUCTION & DEVELOPMENT

Miami developer Terra completed Doral Atrium, a 78K SF lifestyle-driven retail development on the northwest corner of Doral Boulevard and 79th Avenue, according to a release. 

The project, designed by Miami-based RSP Architects, is 65% leased with tenants including PNC Bank; Bonchon Chicken, a Korean fried chicken restaurant; Sushi Mas, a Japanese and sushi restaurant; UMARA, a nail salon and cosmetic franchise brand; TREMBLE Pilates Studio; and The Good Feet Store, a national purveyor of arch supports. 

Approximately 28K SF remains available for lease. 

Terra purchased the 3.9-acre site from an affiliate of Miami-based Banyan Street Capital in 2017 for $12.5M, the South Florida Business Journal reported at the time. 

LEASES

Frito-Lay signed a 131K SF lease at the under-construction Bridge Point Doral industrial development, according to a release and reporting from the SFBJ.

The snack manufacturer will occupy Building 6 upon its completion in mid-2024. Bridge Point Doral, on the corner of Northwest 107th Avenue and Northwest 41st Street, will include 2.6M SF of industrial space on a 175-acre parcel. The first section of the multi-phase development will total 1.2M SF. 

The owner and developer, Bridge Industrial, was represented in lease negotiations by Cushman & Wakefield brokers Wayne Ramoski, Gian Rodriguez, Skylar Stein, and Ivanna Leitner Perez. Jeff Hartsook and Adam Talbot of Cresa represented the tenant.

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Five retailers have agreed to open new shops on Miami Beach's Lincoln Road, including two stores specializing in sweets. The five new tenants, according to the Lincoln Road Business Improvement District, are:

• HOKA, a footwear, apparel and accessories brand, recently opened in a 3,128 SF space at 701 Lincoln Road. The property was leased by Miami-based brokerage Comras Co.
• Luli Fama, a Latin-owned women’s swimwear brand, will open in late October in a 1,440 SF suite at 635 Lincoln Road. Comras Co. also handled leasing at the property.
• Candy retailer IT’SUGAR will open its 11th South Florida location in late October at a 2,751 SF space at 801 Lincoln Road.
• IT Italian Trattoria will open a 3,300 SF restaurant and bar before the end of the month at 1014 Lincoln Road.
• Turkish Delight, a purveyor of sweets sourced directly from Turkey, will open its first U.S. store in a 1,000 SF location on the pedestrian street. 

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Juvia, a luxury rooftop restaurant at 1111 Lincoln Road, is leaving Miami Beach for a 9K SF rooftop restaurant with a 7K SF outdoor patio on the 12th floor of Miami Worldcenter’s Block H development. The restaurant, expected to open by the end of 2024, will sit atop 50K SF of street-level retail and a 922-space public parking garage at 652 Northeast 2nd Ave. 

The 27-acre, mixed-use Miami Worldcenter is being completed in phases by a partnership between Art Falcone, the CEO of Boca Raton-based Falcone Group, and Nitin Motwani, managing partner at Fort Lauderdale-based Merrimac Ventures, in collaboration with investor and developer CIM Group. The project’s latest expansion includes four residential towers and an office building that were recently approved by the Miami Urban Development Review Board.