As borrowing becomes more affordable, construction costs stabilize, and market liquidity improves, many investors, currently sitting on significant dry powder, are eager to re-enter the market.
The De La Cruz Collection building closed following the death of Rosa De La Cruz at age 81 in February.
According to the utilities agreement, the new tower will include 750,901 square feet of office and 6,553 square feet of retail.
Miami City Commissioner Manolo Reyes, chairman of the Miami DDA, said the slow progress of the Flagler Street project has harmed downtown area businesses.
If the investor group does formally submit an application, commissioners could, under city procurement rules, elect to open up the property for competitive bids or go to voters with investor’s solo bid.
Miami continues to show strong trends regarding flight-to-quality as both new-to-market and existing tenants seek new Class A and Trophy product space with focuses in Brickell, Miami Beach, Coral Gables and Wynwood submarkets. That is according to a recent quarterly report from JLL.
The report notes that Miami’s development pipeline remains robust–with some proposed projects stretching out to 2028–offering room for continued growth over the next five years. Many new plans and renderings are concentrated in Brickell and Wynwood, Miami’s most sought-after submarkets, the report says.
According to the report, this quarter, Miami recorded approximately 700,000 square feet of leasing activity, down -30.8% from 12 months prior.
“Though activity slowed relative to last year, this quarterly volume is only slightly less than pre-pandemic averages, signaling a return to normal, rather than a drop in demand,” the report says.
Overall, net absorption was positive this quarter, posting just shy of 60,000 square feet. Miami Beach, Wynwood and Aventura accounted for the bulk of positive absorption.
Unlike other Florida markets, office development remains robust in Miami, the report explains with nearly 220,000 square feet of new space delivered across two buildings – Eighteen Sunset (81% occupied), and 601 Miami in downtown, which remains vacant and available to lease. An additional 2 million square feet remains under construction, with 75% of new product located in Brickell and Wynwood. Miami Beach also remains an area of interest, the report notes, with three projects totaling over 288,000 square feet under development.
Source: GlobeSt.
The three towers will have 1,342 multifamily units, 264 apartment-hotel units, 615 hotel keys, 100,000 square feet commercial, and 1,180 parking spaces.
Developers are offloading parcels for mixed-use, condo, townhome and multifamily projects, as some struggle to land equity investors or bank financing.
The new development will include both market-rate and workforce housing apartments, along with parking facilities for residents and visitors.
Plans for the Class A tower include 750,000 square feet of creative offices, structured parking for 1,000 vehicles and 7,500 square feet of ground-level retail space.
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Ven-American Real Estate, Inc. established in 1991, is a full service commercial and residential real estate firm offering brokerage and property management services.
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Ven-American Real Estate, Inc.
2401 SW 145th Avenue, Ste 407
Miramar, FL 33027
Brokerage & Property Management Services
Phone: 305-858-1188