North Miami Beach Town Centre

Arguably one of the most coveted intersections in South Florida, this assemblage of nearly 5 acres of prime property is a one of a kind, irreplaceable development opportunity. Resent amendments to the North Miami Beach zoning code provide for 30 stories of allowable height, 1,400 units of residential, and 1 million square feet of commercial. These abundant development rights combined with immediate access to multiple class “A” demographics, unparalleled traffic counts, and unobstructed eastern water exposures provide unlimited opportunity for this trophy asset.

Deal Dynamics:

The asset is comprised of 4 separately entitled parcels, totaling 4.97 acres of land, and 22,263 sq. ft. of improved structures in 2 single tenant buildings. Our decision to acquire the property was based on its multi-faceted value proposition in not only its tremendous underlying development potential, but it’s in place income as well. In addition those salient points, the leases provide for an “out” at the land lords discretion which provides creates leverage, safety, and time for us as investors and developers. Very rarely does such a coveted and sought after development site, with stabilized income, also give you the freedom to be un-encumbered with only short term notice. Essentially we are paid to benefit from the properties appreciation, and have as much time as we need or want to reposition asset to its highest and best use.


Deal Mechanics:

Our acquisition started with securing the most vital component to the assemblage, the corner. The property was listed with CBRE, which has a very strong, long standing relationship with our firm. The deal had been brought to us months before our acquisition however we did not want to compete for an asset we knew we were the natural buyer for. It was our relationship combined with our curriculum vitae as one of the pre-eminent owner/ developers in the area that gave us an edge with ownership. After months of marketing, and entering into and out of contract multiple times, ownership was fatigued and considering keeping the asset and developing it themselves. The broker knew that if there was any time to make an aggressive move it was then, and at that time we tendered an all cash offer for $23,500,000 in cash with only 30 days for due diligence, and 15 days to close. Almost immediately after receiving our letter of intent, ownership requested a meeting with us, and at that meeting we hashed out the final details and proceeded to a very smooth closing. Through this transaction we cultivated a very good relationship with the owners which made for a great deal, making all parties happy. While in the midst of our negotiations and due diligence on the corner, the adjoining parcel, a 78,321 sq. ft. parcel of un-improved land was brought to us as an off-market deal by the same CBRE team that brought us the corner. Coincidentally we had an existing relationship with the owners which allowed us to quickly, and efficiently work out a deal to acquire the parcel for $12,700,000 with similar terms employed in the acquisition of the corner. Now, with 3.87 acres under control, we had what we thought was a significant development envelope to create a marquee project. With the middle parcel under control we engaged our Bilzin Sumberg team to commence talks with the Mayor of North Miami Beach and corresponding staff about our long term plans for the parcel, which were received very well. On September 17th, 2015 we closed on the corner and news of our acquisition spread quickly. A few days after the closing we were approached by the owner of the final parcel of our assemblage, a 47,611 sq. ft. parcel with a free standing single tenanted structure. What was so unique about this parcel, besides for the fact that it would give us nearly 5 acres that controlled this pivotal corner, was that it was the final piece of low density development separating our existing 3.87 acre assemblage, from 2 other projects on adjoining parcels which themselves would bring over 1,000 units of residential development to the overall swath of land.  Additionally, the city expressed a great desire in our group acquiring the parcel so that it wasn’t the “odd man out” so to speak, as the other projects are already in advanced stages of planning and it would provide a strategic advantage to them. Once re-visiting our feasibility studies and project engineering, we decided the final parcel would make our assemblage even more valuable, and we proceeded to acquire the parcel for $12,600,000, the most expensive piece on a per sq. ft. basis. Our group is not only beyond satisfied with our investment and the prospect of what’s to come, we are overwhelmingly proud to own this one of a kind, historically significant asset which will prove to be one of South Florida’s most notable re-developments.

About the Area:

The corner of 163rd Street & Biscayne Blvd. is at the combination of two major Miami ventricles and the most prominent intersection of North Miami Beach. This location provides immediate access neighboring Sunny Isles and Aventura, two of the most desirable and affluent communities in South Florida. The site provides exceptional visibility and exposure with a combined average daily traffic count of more than 120,000 cars on Biscayne Boulevard/U.S. 1 and NE 163rd Street. Immediately east of the property via 163rd Street, Sunny Isles Beach is a city of unparalleled affluence and international acclaim. The area is home to several world renowned headline-grabbing condominium towers featuring average pricing well in excess of $1,500 per square foot. In addition to the renaissance of luxury development, the city of Sunny Isles Beach is also building parks, a community center and improving their infrastructure to lay the groundwork for anticipated future developments and projected 11% population growth over the next five years. Immediately to the north via Biscayne Boulevard, is Aventura, home of one of Miami’s most affluent communities possessing the # 2 mall in the United States, average household income of over $86,000, 100% retail occupancy, and perpetually one of South Florida’s top 5 commercial and residential markets? According to MLS, the average currently listed home price in Aventura is over $1.2 million and the average rent in 2015 is over $2,300.

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