15
DESIGN DISTRICT DEVELOPMENT SITE 2.54 ACRES / MIAMI, FLORIDA HIGH-PROFILE INVESTMENT OFFERING
DESIGN DISTRICTD E V E LO P M E N T S I T E2.54 ACRES / MIAMI, FLORIDA
HIGH-PROFILE
INVESTMENT OFFERING
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 2
DESIGN DISTRICTDE V ELOPMENT S ITE
The OpportunityCushman & Wakefield is pleased to offer for sale a fee simple interest in the Design District Development Site (“Property”, “Parcels” or “Site”), consisting of 2.54 acres of land located in the heart of Miami’s thriving Design District, one of the nation’s most exclusive shopping districts. Notable retailers such as Hermes, Christian Dior, Louis Vuitton, Cartier and Gucci operate flagship stores within a short walking distance. The Property represents the largest remaining as-of-right development site in the Design District with current zoning allowing for the development of a mixed-use project totaling over 628K sf of floor area by right and featuring a combination of retail, office, hotel and multifamily uses. Adding to the appeal of this unique high-end development opportunity, the Parcels are situated in an Opportunity Zone. The Parcels are presently improved with 14 commercial buildings totaling 125k sf which can be leased on an interim basis to reduce carrying cost prior to redevelopment. This opportunity is being offered to the market by a lender at projected pricing that is roughly one-half the original developer’s basis in the Parcels.
Note: Renderings presented throughout this document are based on prior development plans that were only conceptual and investors are not required to follow these prior designs.
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 3
DESIGN DISTRICTDE V ELOPMENT S ITE
N
DESIGNDISTRICT
SOUTH BEACH
MIAMIHEALTH
DISTRICT
WYNWOOD & MIDTOWN 195
95
395DOWNTOWN MIAMI
BRICKELL
COCONUT GROVE
EDGEWATER
ARTS & ENTERTAINMENT
Neighboring Areas & Distance
WW
MIAMI INT’L AIRPORT
10 MINUTES
Estimated Travel Times
DOWNTOWN MIAMI
10 MINUTES
BRICKELL/CITY CENTRE15 MINUTES
WYNWOOD/MIDTOWN
5 MINUTES
PORT OFMIAMI
10 MINUTES
SOUTHBEACH
15 MINUTES
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 4
DESIGN DISTRICTDE V ELOPMENT S ITE
Assemblage OverviewThis sizeable land assemblage is comprised of two development sites -- the “Northern Parcel” and the “Southern Parcel” -- separated by NE 40th Street along the east side of North Miami Avenue.
Note that seller will entertain offers for both parcels as well as individual offers for the Northern Parcel and the Southern Parcel.
NORTHERN PARCEL • Comprised of 2 adjacent parcels located at the northeast corner of
North Miami Avenue and NE 40th Street• 27,198 sf (±.62 acres)• Zoned T5-0• 108,792 sf of floor area could be achieved by right at a maximum of 5
stories
SOUTHERN PARCEL • Comprised of 12 adjacent parcels on the block between NE 39th Street
and NE 40th Street, between North Miami Avenue and NE 1st Avenue• 83,445 sf (±1.9 acres)• The Southern Parcel has split zoning between T5-0 (Portion A: Lots
Fronting 40th Street) and T6-12-0 (Portion B: Lots Fronting 39th Street)• Portion A totals +-37,075 sf and is located to the north of the midpoint
between NE 39th Street and NE 40th Street; a maximum of 5 stories and 148,300 sf may be developed on these parcels
• Portion B totals +-46,380 sf and is located to the south of said midpoint; a maximum of 12 stories (and up to 20 stories by bonus) and 371,040 sf (and up to 482,352 sf by bonus) could be developed on these parcels
Please see the Zoning Memorandum dated March 12, 2019, prepared by Akerman LLP for a complete description of the zoning and development rights for the Site.
INVESTMENT OPPORTUNITY | PAGE 4
N E 40TH STREET
N E 41ST STREET
N E 42ND STREET
N M
IAM
I AV
EN
UE
N E
1S
T A
VE
NU
E
N E 38TH STREET
N E 39TH STREET
N E
MIA
MI C
OU
RT N
E 2
ND
AV
EN
UE
N F
ED
ER
AL
HIG
HW
AY
BIS
CA
YN
E B
OU
LEV
AR
D
MUSEUM PARKING
2 S
TOR
YR
ETA
IL
OFFICE BUILDING
OFFICEBUILDING
2 STORYRETAIL
CITY VIEWGARAGE
ATLASPLAZA
Harry’s Pizza
Northern Parcel
Southern Parcel
NORTHERN PARCEL
SOUTHERN PARCEL
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 5
DESIGN DISTRICTDE V ELOPMENT S ITE
Central Location with Superior AccessSituated in eastern Miami along Biscayne Bay, Design District is situated just 3 miles north of Downtown Miami/Brickell, 4.5 miles west of Miami Beach/South Beach, 5 miles east of Miami International Airport, and just north of the rapidly growing neighborhoods of Wynwood, Midtown and Edgewater. Design District enjoys exceptional regional accessibility with its location at the junction of I-95 and I-195 providing strategic exposure to over 365K vehicles each day along I-95, I-195 and Biscayne Boulevard.
Transforming Live-Work-Play NeighborhoodThe Design District and the surrounding neighborhoods of Wynwood, Midtown and Edgwater have been revitalized over the past decade, transforming into a 24/7 live-work-play environment that caters to both local residents and tourists. The substantial pipeline of residential, hotel, office and mixed-use development projects within this general area will lead to the continued densification east of I-95. Currently, there are 10,508 residential units, 3,206 hotel rooms (17 hotels), and 915K sf of office space in the development pipeline that are either under construction or in the planning phase.
Design District is a Regional Hub for Luxury BrandsLocated in the heart of Miami, the Design District is one of the world’s most progressive, culturally significant, creative neighborhoods and shopping destinations. Anchored by flagship stores for the world’s most iconic brands, including Hermes, Christian Dior, Louis Vuitton, Cartier, and Gucci, among others, and complemented by a mix of contemporary fashion brands, restaurants, design showrooms, fitness studios and public art displays, Design District attracts Miami’s most affluent consumers and international visitors. Only a few locations in the U.S. offer a similar combination of co-tenancy in a walkable, urban infill neighborhood environment - Upper 5th Avenue in Manhattan and Rodeo Drive in Los Angeles.
Premier Development SiteConsisting of 2.54 acres of land located in the heart of the Design District, the Property is the largest remaining as-of-right development site in the Design District with current zoning allowing for the development of a mixed-use project totaling over 628K sf of floor area by right and featuring a combination of retail, office, hotel and multifamily uses. Adding to the appeal of this unique high-end development opportunity, the Parcels are situated in an Opportunity Zone. The Parcels are improved with 14 existing structures totaling 125k sf that may be leased during the pre-development stage, reducing carry costs. The Site is expected to ultimately be home to a mixed-use development unlike anything the Design District has ever seen before and will undoubtedly be one of Miami’s most high profile projects. This opportunity is being offered to the market by a lender at projected pricing that is roughly one-half the original developer’s basis in the Parcels.
Investment Highlights
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 6
DESIGN DISTRICTDE V ELOPMENT S ITE
Map ID ADDRESS # OF STORIES
SQUARE FEET
1 1 NE 40th Street 2 19,436
2 35 NE 40th Street 3 17,391
3 3995 N Miami Ave 4 32,733
4 10 NE 40th Street 1 5,000
5 28 NE 40th Street 1 723
6 40 NE 40th Street 1 4,649
7 50 NE 40th Street 1 7,517
8 56 NE 40th Street 2 4,174
9 15 NE 39th Street & 3925 N Miami Avenue 2 10,593
10 19 & 21 NE 39th Street 1 8,310
11 45 NE 39th Street 2 8,533
12 53 & 55 NE 39th Street 2 1,702
13 75 NE 39th Street 1 3,103
14 81 NE 39th Street 1 3,103
TOTAL 125,624
1 2
3 4 5 6 7 8
9 10 11 12 13 14N
. Mia
mi A
venu
eN
. Mia
mi A
venu
e
NE
1st
Ave
nue
NE
1st
Ave
nue
NE 40th StreetNE 40th Street
NE 39th StreetNE 39th Street
As described in the table below, the Parcels are improved with commercial buildings totaling 125k sf which may be leased on an interim basis to reduce carrying costs prior to redevelopment.
NORTHERN PARCEL
SOUTHERN PARCEL
N
Summary ofExisting Improvements
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 7
DESIGN DISTRICTDE V ELOPMENT S ITE
North
195
SOUTH BEACHSOUTH BEACH
EDGEWATEREDGEWATER
WYNWOODWYNWOODMIDTOWNMIDTOWN
DOWNTOWNDOWNTOWN
BRICKELLBRICKELL
DESIGN DISTRICTDESIGN DISTRICT
Julia Tuttle Causeway
Julia Tuttle Causeway
Rickenbacker Causeway
Rickenbacker Causeway
MacArthur Causeway
MacArthur Causeway
95
HOSPITAL DISTRICTHOSPITAL DISTRICT
395
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 8
DESIGN DISTRICTDE V ELOPMENT S ITE
The VisionConceptual Renderings
Note: Renderings presented throughout this document are based on prior development plans that were only conceptual and investors are not required to follow these prior designs.
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 9
DESIGN DISTRICTDE V ELOPMENT S ITE
Miami’s Design DistrictThe Design District is a unique, supply-constrained neighborhood dedicated to fashion, design, architecture and dining. The bulk of the Miami’s Design District is owned by a partnership among Dacra Real Estate (“Dacra”), L Catterton Real Estate, an investment fund sponsored by Bernard Arnault and Louis Vuitton Moët Hennessy (LVMH) specializing in luxury shopping destinations, and Brookfield Property Retail Group, one of the largest retail owners in the U.S.
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 10
DESIGN DISTRICTDE V ELOPMENT S ITE
Miami Design District OverviewBound by North Miami Avenue to the west, NE 2nd Avenue to the
east, NE 42nd Street to the north and NE 38th Street to the south,
the Design District is strategically located at the intersection of
Biscayne Boulevard (US Hwy 1), I-195 and I-95, just 3 miles north
of Downtown Miami, 4.5 miles west of Miami Beach, and 5.0
miles east of Miami International Airport. Originally developed
in the 1920s as a furniture design and retail destination, the
Design District has been transformed over the past decade into
a vibrant luxury retail and dining destination for residents and
visitors alike. Furthermore, since 2002, the Design District has
hosted a number of major exhibitions for Art Basel, one of the
largest art showcases in the world, drawing an annual influx of
highly affluent shoppers from across the world to the area.
From the 1990s to the late 2000s, Dacra, led by Craig Robins,
acquired over 18 properties and 2 development sites in the
Design District, representing over 450,000 sf of retail space and
several million sf of development rights. In 2010, L Catterton Real
Estate (the LVMH affiliate) acquired a 50% interest in Dacra’s
portfolio in the Design District. LVMH subsequently brought its
affiliated brands to the Design District, including Louis Vuitton,
which relocated from Bal Harbour Shops in 2011, Dior, Fendi,
Bulgari, Hublot and Sephora. Unaffiliated brands such as Gucci,
Rolex, Hermes, Christian Louboutin, Balenciaga, Cartier, Van
Cleef, Rick Owens, Panerai, Giorgio Armani, Valentino, Dolce &
Gabbana, Yves Saint Laurent, Tom Ford and Prada soon followed.
In 2014, Dacra and L Catterton sold a 20% interest to Brookfield.
In addition to luxury shopping, the Design District is home
to restaurants by renowned international chefs and art
galleries sponsored by the De La Cruz and the Robins /
Braman families, three of the largest art collections in the
Americas. As a result, this 8-block area has become the
primary location of interest for any retail, office or hotel
user that wants to be associated with the most upscale
neighborhood in Miami. Since opening the first high-end
LVMH stores in 2011, the Design District has experienced
a significant transformation into an international retail
destination with ground floor retail rents ranging from
$100 to $300 psf.
The combination of tenant sales volumes as high as
$3,000 psf, limited land available for development
and scarcity of available retail space have significantly
pushed rental rates upwards over the past 5 years and
will continue to drive rates in the future. The existing
roster of luxury brands and the completion of the
remaining development sites over the coming years will
continue to attract more high-end retailers to the Design
District, further establishing the area as one of the top
retail destinations in the country, similar to 5th Avenue in
New York City and Rodeo Drive in Beverly Hills.
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 11
DESIGN DISTRICTDE V ELOPMENT S ITE
Shopping The Design District offers an unparalleled retail atmosphere in one of the world’s most highly trafficked luxury shopping destinations. With a critical mass of luxury retailers ranging from LVMH fashion and retail stores to upscale home design galleries, the submarket offers a comprehensive and unique shopping selection within a tight geographical radius.
Local Amenities
DiningFrom wine bars and craft coffee to trendy formal dining, the Design District’s dining scene has quickly become a destination for food enthusiasts. Popular restaurants in the district include Michael’s Genuine Food & Drink, MC Kitchen, and Mandolin Aegean Bistro. Luxury brand Dior has recently opened a hip pop-up café on its garden terrace. Famed chef Brad Kilgore is opening his 2nd restaurant in the District following the success of his first, Kaido.
ArtsThe Design District prides itself on the fine art galleries, showrooms and museums that have chosen to call it home. Since 2002, the Design District has hosted a number of major exhibitions for Art Basel, one of the largest art showcases in the world, drawing an annual influx of highly affluent art collectors and shoppers from across the world to the area. Well renowned galleries in the district include Steve Rudin Art, Opera Gallery, Markowicz Fine Art, and Maman Fine Art.
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 12
DESIGN DISTRICTDE V ELOPMENT S ITE
HIGH-PROFILE INVESTMENT OPPORTUNITY
PAGE 13
DESIGN DISTRICTDE V ELOPMENT S ITE
N E 40TH STREET
N E 41ST STREET
N E 42ND STREET
N M
IAM
I AV
EN
UE
N E
1S
T A
VE
NU
E
N E 38TH STREET
N E 39TH STREET
N E
MIA
MI C
OU
RT N
E 2
ND
AV
EN
UE
N F
ED
ER
AL
HIG
HW
AY
BIS
CA
YN
E B
OU
LEV
AR
D
MUSEUM PARKING
2 S
TOR
YR
ETA
IL
OFFICE BUILDING
OFFICEBUILDING
2 STORYRETAIL
CITY VIEWGARAGE
ATLASPLAZA
Harry’s Pizza
Northern Parcel
Southern Parcel
Retailer Map
195
NORTHERN PARCEL
SOUTHERN PARCEL
OFFERING TERMS
Seller is offering a fee simple interest in this asset on an all cash, as-is basis. Cushman & Wakefield requests that all interested parties submit bids in writing.
Note that seller will entertain individual offers for the Northern Parcel and the Southern Parcel as well as offers for both parcels.
ONLINE DOCUMENT CENTER
For additional information on this offering, please access the Design District Develoment Site online document center. The seller encourages prospective investors to review the online information to assist in formulating a qualified offer.
Email [email protected] for access to the online document center.
©2020 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.
TransactionGuidelines
DESIGN DISTRICTDEVELOPMENT S ITE
ADAM SPIESChairman+1 212 841 5903 [email protected]
ADAM G. DONEGERExecutive Managing Director+1 212 841 [email protected]
DAN O’BRIENExecutive Managing Director+1 212 698 5584 [email protected]
MARK GILBERTVice Chairman+1 305 533 [email protected]
ADAM FEINSTEINExecutive Director+1 305 533 2863 [email protected]
MITCHELL HALPERNDirector+1 305 533 2855 [email protected]
INVESTMENT CONTACTS
ROBERT KAPLANExecutive Managing Director+1 305 533 [email protected]
DEBT & FINANCE CONTACT
