A partnership between 13th Floor Investments and Key International acquired a nearly one-acre site in Miami’s Brickell area to build a mixed-use project for $11.5 million.
The development site came with development rights from the office building next door at 1000 Brickell Ave. The deal closed July 9.
The site is now home to a 316-space parking garage that will be demolished to make room for a high-rise. The future project would have retail on the lower floors and residential units and a hotel on top, said Inigo Ardid, vice president of Miami-based Key International.
The seller is a partnership of Henry “Hank” Bush, Ricardo Bajandas and 1000 Brickell Avenue II Ltd., which owned 1000 Brickell and converted the offices to office condos.
The garage is at 1025 SE Miami Avenue Road. It is adjacent to the Tenth Street/Promenade Miami Metromover station.
The deal is 13th Floor’s entry into the Brickell district. Until now, the group has concentrated on buying and repositioning distressed real estate, mostly residential communities across South Florida. One acquisition included the unfinished NoBe Bay at 6700 Indian Creek Drive in Miami Beach. NoBe Bay was a casualty of the real estate crash that was lost to foreclosure.
Key International has experience developing condos in the Brickell area. During the boom years, it built the 530-unit Mint and 504-unit The Ivy along the Miami River.
Ardid and Arnaud Karsenti, 13th Floor’s managing principal, expect the Brickell area to continue to grow, in part because of the construction of the Brickell CitiCentre, about three blocks north. The $1 billion mixed-use project is to consist of 520,000 square feet of retail, two 42-story towers with 800 units, a 265-room hotel and 120,000 square feet of office space. Most of the project could be completed by 2015.
The partners said they are willing to wait to see what kind of effect CitiCentre has on the market and then plan a project that would complement CitiCentre rather than compete against it.
“We are going to see what they do and when we come up with the right plan, then, we would be ready to start construction,” Ardid said.
Karsenti said it comes down to assessing the market demands and feeling comfortable with it.
“It is more of a market question than anything else,” he said. “We are going to be taking a very patient approach.”
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