Aventura District

In 2014 Prive Group was able to secure one of the last large development parcels in the Aventura area. Located on 191st street and West Dixie highway, this former concrete manufacturing facility encompasses 4.85 acres and holds entitlements for up to 291 residential rental units along with 50,000 square feet of commercial and or hotel.

Deal Dynamics:

As long time residents, and active brokers in Aventura, Prive’s principals lacked no evidence of the overwhelming demand for both residential rental units and commercial space in Aventura. They observed fist hand, as units owned by investors as rentals, were becoming second and third homes for foreigners and increasingly less available to those looking to rent in the area. The Aventura market is substantially less transient than other markets in South Florida, which makes it very attractive to families seeking its blend of metropolitan lifestyle, privacy, and central location. Over the years, the large community of affluent residents and visitors have essentially created a demographic barrier for not only residents, but businesses and retailers as well. High end and national retailers as well as law firms, doctors and companies in the financial services compete for space to serve its top end demographics, driving up rental rates and making it very difficult for middle tier residents and business to afford space.

With our vast network of industry professionals, Prive learned that a new wave of development was beginning to emerge just south of Ives Dairy Road fronting West Dixie Highway where large parcels of land sat untouched for years. This area was a natural channel for development; however, a moratorium had been put in place blocking development as the sewer facilities servicing the area were at capacity. It was in late 2013 that Prive learned of several sizable transactions that had taken place on unimproved parcels, thus signaling that something either changed or was about to. As expected, they learned a Master Plan called the Ojus Urban Area District had been established and a pump station affecting the Ojus area was slated to be complete by December 31, 2017. This greased the wheels for a major residential project on a large 16-acre parcel that had been embattled since 2007. The new project, called Gables Aventura, will bring 400 units of luxury rental apartments to the area along with a retail component as well. Next, a luxury office condo was announced to be

breaking ground in the first quarter of 2014 named Beacon Tower. Prive wasted no time and began platting out parcels that were prime for development. They announced their plans for acquisitions in the area to their network and received an opportunity to acquire a shutdown concrete manufacturing plant siting on a perfectly square 4.85 acre parcel of land. Having mapped out and researched every large parcel of land, they knew that this was the last piece available for a significant mixed use development in the area. Naturally, they jumped on the opportunity and entered into contract for the piece immediately.

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Deal Mechanics:

Prive immediately engaged their team of attorneys at Bilzin Sumberg, South Florida’s foremost experts land use and development in Florida. Bilzin’s attorneys have substantial regulatory and government relations’ experience, along with strong relationships with highly qualified experts, consultants, government officials and business leaders throughout Florida, in turn making them second to none. With their crucial assistance in the due diligence process, Prive learned that the city was far along in discussions with multiple private groups to build a pump station at their own expense that would be delivered by May 2016. Furthermore, Bilzin learned these groups were able to reach a resolution with the city which would immediately grant permits for construction in the interim with certificates of occupancy to be issued once the new station was ready and connected. This completely changed the dynamics of a development project and significantly increased feasibility, as construction could begin immediately and would essentially be concurrent to access of utilities.

Bilzin also used their significant municipal clout and experience to achieve favorable zoning for the project, yielding entitlements to build 291 residential rental units along with a 250,000 square foot commercial component. Just weeks away from their closing, Prive was approached by one of its valued investors with an offer to purchase their position in the property for a substantial premium. Prive decided to accept as it would realize a significant return and allow the group to re-allocate resources to various other opportunities available to them at the time.

About the Area:

The Ojus Urban Area fronts the West Dixie Highway along the Florida East Coast Railroad. It was established in 2006 as an initiative to spur development and it allows for increased density within its boundaries along the western border of Aventura and the Oleta River. In an executive summary of the Ojus Charrette, put forth by the Miami Dade County Department of Planning and Zoning, it describes the Ojus Master Plan as: “The goal of the Ojus Master Plan is to create a framework that will facilitate development and investment in private land as well as in public infrastructure, preserve the community’s heritage, enhance its livability and sense of unity and encourage design quality, both architectural and urban”. Ojus is a part of unincorporated Dade County; however, Ojus Urban Area has unofficially become known as The City of Aventura’s western expansion. Aventura has seen overwhelming growth since its incorporation as a city back in 1995. Benefitting from its strategic location as a halfway point between Miami and Fort Lauderdale, Aventura along with neighboring Sunny Isles have both flourished to become a benchmark for upscale living. The Aventura Mall has emerged as a showcase for the world’s top retailers, making it an international retail landmark. With more and more patrons from all over the world coming to visit, and a waiting list for Tenants, it is currently undergoing its third expansion, which will make it the United States second largest mall. As land and opportunities for further development have become essentially non-existent, the Ojus Urban Area has become a rapidly developing new horizon for Aventura’s overgrowth.

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