WEEK OF THURSDAY, APRIL 9, 2015
A Singular Voice in an Evolving City
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Downtown, Brickell offices fill while rental rates rising, pg. 13 DEADLINE EXTENSION: Ordinances up for votes Tuesday would extend the time two municipal advisory committees (MACs) get to study whether to incorporate targeted areas. The county’s Unincorporated Municipal Service Area Committee is to vote to extend time allotted to the Biscayne Gardens Area and to the North Central Dade MACs to finish work. The two MACs are nearing the end of their allotted 24 months. The Biscayne Gardens Area MAC is studying whether to incorporate the area south of the City of North Miami Beach and north of the City of North Miami, and the North Central Dade MAC is studying whether to incorporate the area east of the City of Hialeah, southwest of North Miami and west of Miami Shores. If the ordinances pass, the two MACs would stay in existence until the latter of two events: the county commission votes or defers a resolution calling for a referendum seeking incorporation; or a year after approval of the ordinances. The full commission has final say on the time extensions.
Mediterranean Village size cut precedes final city vote, pg. 14
THE ACHIEVER
BY LIDIA DINKOVA
ALL ABOARD FLORIDA: All Aboard Florida representatives say the company is “actively marketing” the real estate space to rise as part of its downtown Miami station but the company hasn’t announced any prospective tenants yet. The downtown Miami station, known as MiamiCentral, is to include retail, office and residential space. Retailers have been interested in the station, according to a statement provided by CBRE, an international commercial real estate company that was selected to be the retail leasing agent for MiamiCentral. Blanca Commercial Real Estate, the office leasing agent for MiamiCentral, also didn’t release details about prospective tenants. All Aboard Florida hasn’t yet released information about its residential agent for MiamiCentral. PUT YOUR CAR TO WORK: CarHopper is offering car owners a chance to make money from their underused vehicles by renting them to screened users. Interested parties in South Florida who own (or lease) a car can now pre-register their vehicles through a two-minute process on CarHopper’s website at www.carhopper.co. According to founder Bora Hamamcioglu, listing a vehicle with CarHopper is free and commercial insurance costs are covered. CarHopper will match drivers with listed cars through the CarHopper app, which is to launch in April. The app will also have a patent-pending feature to allow for walk-around inspections of the cars before and after they are rented.
Photo by Marlene Quaroni
Rodolphe el-Khoury
Heading city-centered UM School of Architecture The profile is on Page 4
Developer Terra to buy Miami’s Grove garage BY JOHN CHARLES ROBBINS
Grove suddenly enjoying retail boom, pg. 16 cludes $100,000 up front.”
A city-owned parking garage in Coconut Grove is being sold to a well-known developer for $16 million. The Miami Parking Authority built and owns the Oak Avenue Garage. On April 1 the city’s Off-Street Parking Board agreed to sell it to Terra World Investments LLC. Terra, based in the Grove, says it has no immediate plan for redevelopment and the building will remain open for parking. Terra’s unsolicited proposal to buy the garage triggered the sale. “Terra is working with the City of Miami Parking Authority to finalize the sale and purchase of the Oak Avenue Garage in Coconut Grove,” David Martin, Terra president and an owner, wrote via his PR firm in a statement. “Our plan is to hold the property for the long-term, with the public garage remaining fully operational and a repositioned retail component on street level,” he said. Businesses now in the ground floor include The Workout Spot, OXXO Care Cleaners, Jaguar Therapy and Tiano Salon & Spa. A City of Miami Neighborhood Enhancement Team office is in the building.
“Our firm is heavily invested in the rebirth of Coconut Grove through [condo tower projects] Grove at Grand Bay and Park Grove. This project will bring new retailers and amenities to the neighborhood,” Mr. Martin wrote. The authority built the multi-level, 388space garage at 2860 Oak Ave. on about 85 hundredths of an acre. It has four levels of parking, including the roof. The building, bordered by Mary and Rice streets, is near the Shoppes at Mayfair. When the parking board gets an unsolicited proposal to buy its real estate, it advertises for more proposals. After receiving a proposal from Terra to buy the garage, the board agreed in February to advertise for other purchase proposals. It received three. Terra’s proposal was the lowest. Terra World Investments LLC offered $16 million, Mast Capital offered $16.1 million and Crystal Clear Holdings LLC offered $16.3 million, according to the authority. But Terra offered the largest deposit: $800,000. “Their deposit level was higher,” said Authority CEO Art Noriega, “plus it in-
AGENDA
Downtown rail tie cost to be vetted City officials plan to re-evaluate the price tag to expand TriRail to downtown Miami, Mayor Tomás Regalado said. The $69 million cost was estimated in talks among the South Florida Regional Transportation Agency, Tri-Rail’s operator; All Aboard Florida; the company that owns All Aboard’s rail corridor; and the Florida Department of Transportation. “That number has never been vetted by the City of Miami,” Mr. Regalado said. City officials are studying options to close the funding gap. As part of that study, they’re to re-examine the total cost. “We did that with the Marlins stadium parking lots. The original quote was for $92 million, and we were able to bring it down to $75 million,” he said. The city has already committed $5.5 million from its share of a half-cent sales surtax meant for transportation projects. Miami-Dade County has committed about $13.8 million, and TriRail has said it would fund $3.1 million and that the state has pledged $17.1 million. Tri-Rail officials have turned to two of Miami’s community redevelopment agencies (CRAs) to finance the rest. One agency’s chairman, Keon Hardemon, also a city commissioner, said he will push to decrease to $17 million the $24 million being sought from the Southeast Overtown/Park West agency. The push to expand Tri-Rail downtown is part of a larger aim to run Tri-Rail on the east side of the county on All Aboard’s tracks and to stop in cities in Northeast Miami-Dade. Because some of these cities might get a Tri-Rail stop, Mr. Regalado said he plans to ask them to help fund Tri-Rail’s expansion to downtown Miami. “A letter has been drafted to that effect,” he said. “We might not even get a response.... We’re just exploring.”
Mr. Noriega told the board that Terra has the strongest financials and it made the first pitch to buy the building. “It all sort of lined up,” he said, in explaining the staff recommendation to sell to Terra. The board unanimously directed Mr. Noriega to execute a sale agreement with Terra and gave him flexibility to negotiate with the other firms if he can’t reach an agreement with Terra. Mr. Noriega said any sale of the garage will require that part remain open for public parking. In February, Mr. Noriega encouraged the board to consider the sale, saying it was a way to “leverage our public assets… [and] this will give us an opportunity to build more in Coconut Grove.” He reiterated that April 1, acknowledging that the Oak Avenue Garage “never performed” the way the authority had hoped. With the sale proceeds, he said, the authority can reinvest back into the Grove community. “We can use the proceeds [from the sale] to build a new garage in Coconut Overtown isn’t enthralled, pg. 2 Grove,” he said.
SIXTH STREET SHUTDOWN LINGERS FOR CITY CENTRE ...
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TAX CREDIT MOVE GAINS TO REINVIGORATE FILMING ...
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VIEWPOINT: SEEK CREATIVE FAIRGROUNDS SOLUTION ...
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CITY PUSHES WALK TO LINK MUSEUM PARK, PARCEL B ...
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BOULEVARD FURNITURE STORE PLAN PUT ON HOT SEAT ...
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FIRST STEP TOWARD AWAITED MEGA-MARINA FINISHED ... 18
HOT ISSUES AT FOREFRONT FOR ETHICS IN EDUCATION ...
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FORMER FOES UNITE TO MARK GALLIPOLI CENTENNIAL ...
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WEEK OF THURSDAY, APRIL 9, 2015
TODAY’S NEWS
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Lyric Theater gets program funds BY CATHERINE LACKNER
Directors of the Southeast Overtown/Park West Community Redevelopment Agency (CRA) have allocated $733,000 to the Black Archives to help with programming at the Lyric Theater Cultural Heritage Institute, to close a gap in construction financing, and to secure its offices in the same building at 819 NW Second Ave. Of that grant, $433,000 is to be spent on training and on programming for such events as Lyric Live (an amateur night Photo by Maxine Usdan monthly showcase), classical dance performances, the South The Black Archives got funding to help with programming the Lyric. Florida Marching Band Preci- held in the complex, visitors & Visitors Bureau, Visit Florida, sion Camp, and “A Man Among have access to the building when Big Bus, the Bass Museum, and the People: a Purvis Homecom- the CRA offices on the third Coca-Cola,” Mr. Barber said in ing,” an exhibit of Purvis Young’s floor are closed, Mr. Woods a March 5 letter to Mr. Woods. “These partnerships allowed artwork during Art Basel. An- said. “When we leave, we want other $200,000 will pay off a to make sure the rest of the us to grow our exposure and construction loan, and $100,000 building is secure, and people helped to secure further fundwill prepare the building to be are not coming up to our area.” ing from foundations and priThe construction gap loan will vate foundation grants includpartitioned, said Clarence Woods be repaid to the CRA once funds ing [from] the Knight FoundaIII, CRA executive director. Built in 1913 as part of have been received from the tion and the Leon J. Simpkins Photo by Maxine Usdan “We are tackling the tough ones” in sessions, said Joseph Centorino. Overtown’s “Little Broadway” Miami-Dade County general Foundation. We want to build and shuttered in the 1960s, the obligation bond fund, said a Jan. on the momentum that showtheater re-opened early last year 15 letter from Timothy A. Bar- cased the historic Overtown as the Black Archives Historic ber, the Black Archives execu- community. Through programming and activities, we have Lyric Theater Cultural Arts tive director, to Mr. Woods. Other funding opportunities been able to provide historic Complex. About a year ago, the CRA offices moved there from loom on the horizon. “We were Overtown residents with job BY L IDIA DINKOVA “The best way to confront the Overtown Shopping Plaza, able to build partnerships with creation, job training, and job notable organizations including retention, which support a prithose issues is to promote open 1490 NW Third Ave. the Greater Miami Conventions ority goal of the CRA.” Because of various programs With all the recent issues sur- debate,” Mr. Centorino said. The Ethics in Education tworounding public education – from outcries over excessive day event is hosted by the Mischool testing to bullying – a ami-Dade County Commission conference on education ethics on Ethics and Public Trust, the University of Miami and Miamiseems timely. The Ethics in Education con- Dade County Public Schools. The conference will be held ference will include sessions that explore some of the issues from 5:30 p.m. to 8:30 p.m. surrounding education in the US. May 1 at the University of Mi“This is not a conference that ami School of Business’ Storer is avoiding controversial is- Auditorium at the Coral Gables sues,” said Joseph Centorino, campus and from 7:45 a.m. to 5 executive director of the Mi- p.m. May 2 at Miami Senior ami-Dade County Commission High School, 2450 SW First St. Mr. Centorino said that the on Ethics and Public Trust. “We conference targets both people are tackling the tough ones.” Indeed, a morning session on who are directly involved in the second day of the confer- education, such as teachers and ence will focus on school test- students, as well as those who ing, a hot top in recent weeks as may not have direct day-to-day the Common Core state tests contact with the local education got off to a rough start as com- system. Other notable speakers inputer problems prevented students from completing the ex- clude Baruti Kafele, a former ams. In addition, state legisla- principal widely recognized for tors have been considering a bill turning around some of the that seeks to limit the amount of toughest schools in the nation; Harvard Graduate School of testing at public schools. Panelists at the session titled Education Professor of Prac‘Teaching to the Test: When tice Andres Alonso; and UniAt Baptist Health South Florida, we believe in healthcare of does it cross the ethical line?’ versity of Miami head football include Miami-Dade County coach Al Golden. the highest ethical standards. In addition to being recognized as one “Coach Golden is on the proPTA President Joe Gebara, of America’s best healthcare providers and top employers, Baptist Health Foundation for Excellence in gram and it’s about the whole is proud to be recognized as a “World’s Most Ethical Company” Education Executive Director question about sports and the Patricia Levesque and Miami- role that sports play in our eduby the Ethisphere Institute for the fifth consecutive year. That’s enduring, Dade County Public Schools cation system and the controaward-winning care with your health in mind. Administrative Director Gisela versies whether the emphasis on sports sometimes outweighs Feild. Then there’s the panel dis- educational values,” Mr. BaptistHealth.net cussion on immigration and the Centorino said. “We want to give people the influx of immigrants into public information and the different schools. “Miami is at the forefront of aspects of some of these isthat issue,” Mr. Centorino said. sues,” Mr. Centorino said, “so Another panel discussion will they can be better informed and focus on the 2014 police shoot- make their own decisions.” Healthcare that Cares ing in Ferguson that left Michael Details: To register, visit Brown, an 18-year-old black ethics.miamidade.gov. Cost: man, dead. The panelists for A not-for-profit organization supported by philanthropy and committed $50 for two-day event, $25 to this discussion: 10 students ento our faith-based charitable mission of medical excellence rolled at Miami-Dade County attend Friday’s events, and $40 for Saturday’s sessions. public schools.
Hot issues at forefront for Ethics in Education
STRONG ETHICS
SHOW WE CARE.
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MIAMI TODAY
WEEK OF THURSDAY, APRIL 9, 2015
Walk to link Museum Park, area beside arena gets city push BY JOHN CHARLES ROBBINS
Miami’s growing improved baywalk could be extended to hug the FEC deep water slip and connect Museum Park to land beside AmericanAirlines Arena under a waterways project the city has floated. The city commission has authorized a grant request that would help fund the bulk of the baywalk extension. It was one many funding requests to the Florida Inland Navigation District (FIND) Waterways Assistance Program. Commissioners authorized City Manager Daniel Alfonso to apply to FIND for grants of up to $1.25 million to construct the baywalk on the south side of the FEC slip. The move also authorized allocation up to $1.25 million of the required matching funds for 50% of the project costs. The proposed $2.5 million project would construct a landPhoto by Maxine Usdan scaped baywalk connecting The $2.5 million project would build a landscaped baywalk along the south side of the deep water slip. Museum Park, the city’s new-
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est park, and a small parcel adjacent to AmericanAirlines Arena on Biscayne Bay known as Parcel B. This land is owned by Miami-Dade County government. Museum Park is a 21-acre upland and seven-acre water site on Biscayne Bay seven blocks north of the city’s Bayfront Park. The park has undergone a major transformation, years in the making, and is again welcoming visitors after years of neglect when it was known as Bicentennial Park. Today, Museum Park envelopes two institutions: the Pérez Art Museum Miami, which opened in late 2013, and the Patricia and Phillip Frost Museum of Science, now under construction. Adjacent to the park’s south side is the seven-acre FEC slip, which also underwent renovations when the park was redeveloped. The seawall is designed to host tall ships and water dependent events. The baywalk is improved and landscaped on the north side of the slip and along its western edge. There’s not much on the slip’s south side beyond a sunbleached path of concrete. Funds for the baywalk extension might not be awarded until after Oct. 1. City commissioners also approved about a dozen other requests for funds from FIND’s Waterways Assistance Program. For each project, the commission allocated the required matching funds for 50% of the project’s total cost. The applications for reimbursement grants include: Up to $25,000 for design and permitting of repairs to the seawall and boat ramp at Morningside Park - Phase I. This is to include a floating dock. Up to $50,000 for the design and permitting of seawall and boat ramp improvements at Legion Park - Phase I. Up to $150,000 to construct a seawall, baywalk and kayak launch at Pallot Park. Up to $150,000 to install and upgrade Dinner Key Marina Pump-out Equipment - Phase II. Up to $50,000 for the design and permitting of Miami Marine Park Marina Construction Project - Phase I. Up to $500,000 for the construction of Marine Stadium Baywalk - Phase II. Up $62,500 for the design and permitting of seawall and baywalk improvements at Alice Wainwright Park - Phase I. Up to $375,000 to upgrade electrical systems in Miamarina – Phase II. Up to $30,000 to remove small derelict vessels. Up to $50,000 for the design and permitting of Bayside “Wharf” Project At Miamarina - Phase I. Up to $75,000 for the design and permitting for a seawall and kayak launch at Spring Garden Park - Phase I. Up to $25,000 for the design and permitting of seawall improvements at Baywood Park - Phase I.
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Mediterranean Village size being cut before Gables vote BY SUSAN DANSEYAR
Developers of the proposed Mediterranean Village are working on cutting back the size of their project and refining details of the development agreement before returning to the Coral Gables City Commission for a possible vote of approval for the more than 1-million-squarefoot mixed-use project. Agave Ponce LLC received the commission’s initial approval on first reading April 2, with stipulations, for the development on the former Old Spanish Village site. Attorney Mario Garcia-Serra, who represents the developers, said they were pleased to receive unanimous approval for four of the seven required zoning changes. The vote was 3-2 for the remaining three that deal with allowing additional height for a roof-top restaurant. Vice Mayor William Kerdyk Jr. and Commissioner Vince Lago cast the opposing votes. The developers expect to appear before the commission for a second reading in mid or late
May, Mr. Garcia-Serra said. The $500 million project, which the developers have been working on for three years, is to include a high-end hotel, 300,000 square feet of office, restaurant and retail space, 214 condo units and 15 townhouses at Ponce Circle. Developers are Eddie Avila, president of Key Realty Advisors; Jorge Pinto, president of Intelligent Construction Inc.; and the Agave Group of Mexico. They have now been before boards in public meetings 16 times. Currently, Mr. Garcia-Serra said, the developers are refining the development agreement to address additional funds that the police and fire departments will need to service the project, street upgrades, and landscape connection improvements. The developers have already committed to contribute $1.3 million up front to buy additional trolleys and then $626,000 annually for 25 years to maintain them. Mr. Garcia-Serra said the developers are also looking for ways to cut out 50,000 square feet, bringing the total footprint
Developers have been working three years on Mediterranean Village.
to 1,167,000 square feet. Additionally, he said, the developers have eliminated one residential tower, leaving just two; the units will be a bit smaller; and a hotel proposed for the project will now have its entrance on Galliano Avenue rather than
Ponce de Leon Boulevard to mitigate traffic congestion, all of which will help reduce the size of the project. To date, developers have already agreed to changes they and the commission deem necessary to address concerns resi-
dents raised during a March 25 hearing about sustainability, mitigating possible traffic congestion, excess parking on residential side streets and impact on neighborhoods. In the days following the March 25 meeting when commissioners continued the discussion to last week, Agave Ponce LLC decided to move a proposed movie theater that had been planned for second-floor retail space. After discussing the issue with commissioners, they agreed to eliminate it altogether. Other changes the developers have agreed to make include coming up with an active use – public, private or a combination of the two – for the historic structure referred to as the arts building, increasing residential parking spots, increasing ground floor open space and seeking Leadership in Energy & Environmental Design certification for all the project’s buildings. Mr. Garcia-Serra said the developers believe the project will still successfully mix uses and be viable.
Dacra focusing on leasing third phase of Design District BY CATHERINE LACKNER
Bal Harbour Shops just a few years ago was Miami’s ground zero for luxury retail brands, but that has changed. About 18 months ago, pioneering real estate developer Dacra, in partnership with L Real Estate, began plans for Miami Design District, a low-rise shopping enclave that features pedestrian promenades, lush landscaping and a definite upscale feel. The developers have set out to create a destination mall to better its peers. “My hope is that, if there is one place you have to go in Miami, this will be it,” said Craig Robins, Dacra CEO and founder. At buildout, the $2 billion mixed-use development will boast 1.1 million square feet of retail, a hotel, low-rise residential units, restaurants and four garages. It’s set on a four-block parcel on Northeast First Avenue from Northeast 38th to 42nd streets, and is planned
Bulgari is one of the 50 major luxury brands that have already leased space in the Miami Design District.
around a landscaped pedestrian promenade. “Leasing is going extraordinarily well,” Mr. Robins said. “We’ve secured 50 major luxury brands, including Hermes,
Cartier. Dior, Armani, Prada, Celine, Marc Jacobs and others.” Many of the high-ticket retailers have abandoned their Bal Harbour spaces and have cho-
sen the Design District as their only Miami location. Some, including Prada and Armani, have chosen to maintain stores in both centers. With phases I and II leased, except for one space “in case somebody great comes along,” Mr. Robins said, Dacra is now focusing on leasing phase III, which is mainly on Northeast 40th and 41st streets. “We did a major renovation on 39th Street,” Mr. Robins said, installing about 300 30-year-old native trees to create a welcoming space. “We’ve created roof gardens.” Many of the stores moving in have created two- and threestory flagships that are noteworthy in their design, he added. Case in point: Helmut Lang and Theory have signed a lease for 5,000 square feet at 101 NE 40th St. The two-story building features high ceilings and the purveyors of luxury goods will get to design their own façade. Audemars Piguet, Bulgari, Burberry, Dolce & Gabanna, Givenchy, Harry Winston, Hublot, Tiffany & Co., Tod’s,
Valentino, Versace, Zadig & Voltaire and Zegna have opened or are expected to open soon. “The needs and wants of the retailer and consumer have both changed,” said Tony Arellano, executive vice president of Metro 1 Properties, speaking about Miami Design District last fall. “Tom Ford, Theory, Helmut Lang, Ferragamo – these are brands you can buy at Saks. They have instead chosen to create their own flagships. It’s an ode to the brand.” As the shopping destination grows, so will the demand for restaurants. “There are 16 new restaurants in the neighborhood, wonderful ones,” Mr. Robins said. Dacra, he said, is in discussion with chef-owner JeanGeorges Vongerichten to open a restaurant there. In the neighborhood are MC Kitchen, A Crumb on Parchment, Mandolin, Michael’s Genuine Food and Drink, Oak Tavern, Harry’s Pizzeria, The Cypress Room and others. The Institute of Contemporary Art, which moved to the neighborhood in December, and the long-established Design and Architecture Senior High demonstrate the area’s ties to art and design. “This district has years and years of history in furniture design, galleries and other forms of art,” Mr. Robins said. He said he hopes the new enclave will be a draw to visitors who have never experienced this side of a Miami neighborhood that was largely forgotten as development moved west to the suburbs. “Everybody is welcome; parking in the garages is $3,” Mr. Robins said. “It’s an asset to our community and it belongs to all of us. That’s one of the really nice things that we can share.”
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Four-year climb in industrial land prices likely to continue BY SUSAN DANSEYAR
Industrial land prices have been steadily rising in Miami-Dade since 2011, market watchers say, and aren’t likely to level off any time soon. The main driver is that there’s very little land available to purchase, said David Albert, senior vice president of industrial services for CBRE. Certainly, there are pockets where parcels are still to be had, he said, but the heavy demand with extremely scant supply has pushed prices to the point where the institutional buyer can’t justify the high cost of land. Miami’s industrial market is one of the David Albert top three in the US along with southern California and northern New Jersey, said Joseph Hernandez, a partner with Weiss Serota Helfman Cole & Bierman’s Miami office and head of its real estate practice. “We’re approaching historic peaks in pricing,” he said, adding that the increase is driven by location and flight
capital coming here from Latin America. The traditional market is in the corridor west and northwest of Miami International Airport, he said, but is expanding to areas such as Virginia Gardens. According to a recent CBRE market view snapshot, which contains preliminary data on all competitive industrial buildings 10,000 square feet and larger in Miami-Dade, industrial activity for January-March remains robust. Net absorption for the first quarter was 849,588 square feet compared with 608,865 year over year; vacancy rate was 4.2% compared with 4.6% year over year; and direct asking price was $8.18 per square Joseph Hernandez foot compared with $8.07 year over year. Prices vary according to the area with CBRE analysts reporting the highest direct asking rates of $9.85 per square foot in Kendall/Tamiami and $9.83 per square foot in North East Dade; the lowest at $6.26 per square foot in North Central Dade and $6.02 per square foot in Central Dade.
Not all market watchers agree on where industrial land prices are going, however. Mr. Albert said there may be a bit of leveling off but Miami-Dade will probably still see international companies, often with flight capital, remain in the market as long as interest rates stay low. “Miami is going through a metamorphosis,” he said. “The population is growing and everyone has a certain product they need that comes from an industrial location.” Land prices in West Dade have hit a plateau, according to Lee Katsikos Sr., principal of the Katsikos Group Inc. He said prices are anywhere from $24 to $26 per square foot of land with construction costs up 20% from two years ago. “When you add in the soft costs, you’re hitting a number that’s between $125 and $135 per square foot,” Mr. Katsikos said. “The user pool, looking mostly to expand or relocate, has diminished.” As a result, Mr. Katsikos said, that’s opened up interest in the Medley and Hialeah Gardens markets where the price point for land is much less. Depending on location and whether land is in a master planned office park, he said,
Medley prices are $16 to $22 per square foot and between $14 and $16 per square foot for developed property and $9 to $12 per square foot for unfilled land in Hialeah Gardens. CBRE researchers reported at the end of 2014 that Miami – known as the gateway to Latin America and the Caribbean – continues to be one of the most desirable industrial markets in the country. Terreno added to its Miami portfolio during the fourth quarter by buying an 85,000square-foot building in Medley for which the real estate investment trust paid $8.9 million, or $105 per square foot. “Industrial product continues to be one of the most valuable asset types in one of the most desirable real estate markets in the country,” the report states. “Tenant expansions and new tenants entering the market are expected to have a positive effect on vacancy which is already one of the lowest in the country.” Despite numerous large transactions, the CBRE analysts report, spaces in the 15,000 to 50,000 square foot range continue to be the most desired and, consequently, they are expected to continue to see a rise in effective rates.
A Grove retail turnabout From 21 empty storefronts in 2013 and 15 on Jan. 1, a suddenly booming Grove has filled all but eight BY SUSAN DANSEYAR
When the Coconut Grove Business Improvement District began making retail analyses in 2013, there were 21 empty storefronts compared with just eight today, pointing to strong demand for what business leaders and tenants describe as a vibrant, increasingly desirable area. The district found 21 on-street vacancies on Jan. 1, 2013; 20 on Jan. 1, 2014; 15 the first day of this year; and eight on April 1, according to Manny Gonzalez, executive director of the BID. Within a few months, Mr. Gonzalez, said the BID expects an influx of new tenants to open within the district including Panther Coffee at the Engle Building at McFarlane Road and Main Highway along with the Büro Group and Harry’s Pizzeria. Arquitectonica re-designed the building. The Grove is one of South Florida’s most dynamic neighborhoods, said Michael Feinstein, founder of CEO of the Büro Group. The company, which offers flexible space for entrepreneurs, creative professionals and small teams, will be opening its fourth location on the entire second floor of the Engle Building and began renovating the 11,000-square-foot space last week. Mr. Feinstein said Büro is to open Aug. 1 with room for about 150 people – 12 to 15 companies. A number of potential tenants, he said, already have expressed interest in renting at the new Büro location. “Coconut Grove is amazing, with a lot of premiere local brands moving in,” Mr. Feinstein said. “There’s been a total resurgence of the neighborhood much like MiMo and Sunset Harbour,” where Büro also opened locations since the com-
Photos by Maxine Usdan
Harry’s Pizzeria is to open at 2996-2998 McFarlane Road, one of many upcoming openings in the Grove.
pany was founded in 2009. Mr. Gonzalez said construction is in progress at 3300 Mary St. to house Elia Restaurant, offering Greek and Mediterranean cuisine. Farinelli:1937, a new restaurant primarily serving pizza and sandwiches along with a variety of champagnes and craft beer from Italy, will open in the fall at 3195-3197 Commodore Plaza, he said. Le Macaroon, a French pastry franchise, will also open in the fall at Cocowalk, Mr. Gonzalez said. Choices Café, offering vegan and gluten-free meals, will open its fourth location at 2895 McFarlane Road with a yoga studio above run by Pablo Lucero, who currently teaches classes at Dharma Studio in the Grove, he said. And YouFit will open in Cocowalk, he added, taking two floors for its 17,000-square-foot gym.
Theo Rogers paints the façade of 3008 Grand Ave. for PointeGroup.
Bombay Darbar will leave its Commodore Plaza space, which is being absorbed by Farinelli’s, and upgrade to a 7,400-square foot restaurant at 2901 Florida
Ave. that was formerly TK’s. “We have seen a dramatic decrease in empty on-street storefronts from Jan. 1 to April 1 in the district,” Mr. Gonzalez
said. “In addition, some of the eight remaining vacant on-street storefronts currently have their respective buildings either scheduled for façade facelifts or entire reconfiguration of spaces to meet the needs of potential tenants interested in coming to the Grove.” A number of the Grove’s stillempty storefronts are at the socalled Johnny Rockets corner on Main Highway. PointeGroup Advisors owns the property, stretching from the well-known American franchise whose themed décor is based upon 1950s-style restaurants to the former Guess space that now houses a discount clothing store. TK Nails, which will move to Cocowalk, is there along with Sunglass Hut. “This is a prime location,” said Mr. Gonzalez. “The spaces may need to be combined for the right user.” On any given day, one can see workers outside some of the storefronts with paint brushes and tools. Peter Gardner, president of PointeGroup, said his real estate company puts a fresh coat of paint on every property it purchases and is replacing rolldown shutters. “We’re improving the properties for future tenants and talking to three different potential pop-ups,” Mr. Gardner said. “We’re looking for a mix of restaurants and service retail for the center and are reconfiguring to give more desirable space to the tenants who are looking.” PointeGroup is aiming for the 1,000-square-foot Johnny Rockets space to eventually be a restaurant, he said. “We’re excited to bringing a breakfast, lunch and dinner operation there,” he said. “A bigger space offers more options for restaurant users we’ve talked to.”
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MIAMI TODAY
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Health firm leases 28% of Marlins Park garages retail space BY JOHN CHARLES ROBBINS
After a long stretch with no hits, the Miami Parking Authority has connected with a health care company that will bring medical services to the parking garages hugging Marlins ballpark in Little Havana. The city’s Off-Street Parking Board last week approved a 10-year lease between the authority and Wellmax Health Medical Centers LLC. The company is leasing 14,000 square feet for a primary care medical clinic, general offices and administrative space. The deal is a major commitment to use a large portion of the more than 53,000 square feet of retail space in three of the four garages the city built around the county-owned stadium. Authority CEO Art Noriega said the Wellmax deal “really fits in” to the emerging use of medical arts along Northwest Seventh Street. Wellmax Medical Centers is expected to be a neighboring use to a dialysis center planned in another of the retail units on Northwest Seventh Street. Mr. Noriega said the focus on filling the empty retail space that faces inward toward the stadium is to get restaurant or entertainment uses. For Wellmax, the annual base rent will be $297,500, or $21.25 per square foot. However, Wellmax gets a break the first year with rental concessions, according to the lease. The tenant will get total rent abatement the first month, 75% in months 2 through 4, 50% in months 5 through 8 and 25% for months 9 through 12. Each year the annual base rent is to rise 3%. Wellmax must also pay operating and finance charges, paying the operating charge at $10,500 monthly. Wellmax agreed to remodel the interior and exterior “in accordance with approved plans and specifications.” The authority agreed to pay Wellmax a construction allowance of $2.1 million or $150 per square foot, whichever is less, according to the lease. If the lease were to end early because of a default, Wellmax would have to reimburse the construction allowance based on a formula using the length of lease prior to termination. Wellmax would end up reimbursing a portion of the construction allowance via a finance charge in monthly installments of $14,849.17 in return for the authority financing part of the improvements. The repayment was calculated at $1.4 million amortized over 10 years at 5% interest, according to the lease. The space negotiated is about 14,000 square feet, with the right to use 50 parking spaces at $65 a month per space. The agreement is for 10 years with two additional five-year periods. Last year the parking board agreed to a separate ballpark garage lease with Bio-Medical
Photo by Maxine Usdan
The city-owned garages await the openings of Café Rubio, a state motor vehicles branch and Wellmax.
Applications of Florida Inc., outpatient dialysis facility with ter is for 10 years, with two doing business as Dade Dialysis medical, office and administra- five-year renewals. Base rent for the dialysis cenCenter, for 9,338 square feet at tive uses. The lease for the dialysis cen- ter begins at $19.49 a square 1402 NW Seventh St. as an
foot with 2% annual increases. Rent in the 10th year would be $23.30 a square foot. The monthly rent in the first year is $15,169.67; annual rent is $182,036.04. The dialysis center has yet to open. Others that have signed leases and are expected to open in the garages include a Florida Department of Highway Safety and Motor Vehicles branch location and Café Rubio, a Latin restaurant and sports bar. The parking agency continues to hope for new tenants to fill the largely vacant space. The lack of tenants has a financial impact on the city, which planned to use rental income at the garages to add to $10.06 per parking space that it gets from the Marlins, as the organization resells parking for game days, to repay bondholders who financed construction of the garages. Those bonds were issued for $101.3 million in 2010.
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