JV Purchases Prime Wynwood Office Building In $28 Million Off-Market Transaction

Tricera Capital, the Miami-based real estate investment firm, and Alex Karakhanian’s LNDMRK Development again teamed up to acquire a prime commercial property in Miami. Tricera and LNDMRK closed the $28 million off-market purchase of Cube Wynwd, a recently constructed office building with ground-floor retail space in the middle of the city’s trendy Wynwood neighborhood, on April 20.

Developed by RedSky Capital, LLC, Cube Wynwd is an 8-story building with approximately 100,000 square feet of office and retail with a verdant rooftop terrace. Located at 222 NW 24th St., the property is immediately west of Northwest Second Avenue – Wynwood’s main thoroughfare and retail corridor. Cube Wynwd is the neighborhood’s first boutique office-over-retail building and is just steps away from notable area attractions including Wynwood Walls, Panther Coffee, Salty Donut, KYU and Bar Taco.

Tricera and LNDMRK obtained senior financing from Amerant for the acquisition. Glacier Credit Strategies provided a mezzanine loan to the companies. Managing Director Scott Wadler and Senior Real Estate Analyst Michael Basinski of Berkadia’s Miami office arranged the financing.

“This is an incredible opportunity to bolster our portfolio with a unique asset in the epicenter of Wynwood,” said Tricera Co-Founder and Managing Principal Scott Sherman. “Both Tricera and LNDMRK are long-term investors and believers in Wynwood. I’ve often said that Wynwood is still in the early stages of realizing its full potential, even with the incredible activity and development over the last decade-plus.”

Coworking operator Spaces occupies about 30% of the office space and about 1,700 square feet of the retail space in Cube Wynwd’s lobby. Renowned chef Gabriele Bonci’s Rome-based Bonci Pizza and Mini Market are among the existing retail tenants. The building features loft-style office space with expansive floorplates.

“We are buying this asset at the right time and right basis. We already implemented our very hands-on ownership approach and are in negotiations with several tenants that make up approximately 50,000 square feet,” said Tricera Co-Founder and Managing Principal Ben Mandell. “All of the companies we are currently working with are new to market, which emphasizes the corporate relocation trend and the dramatic growth of Miami as a whole.”

 

“We were thrilled to work with Tricera and LNDMRK on this successful closing,” said Jonathan Ghitis, Principal at Glacier Credit Strategies. “We have been impressed by Scott, Ben and Alex’s impactful projects throughout South Florida and are glad to play a role in their continued success.” 

Tricera and LNDMRK are frequent collaborators on real estate investments and developments.

The Related Group is partnering with the companies to develop The Dorsey, a 12-story apartment building with a parking garage and nearly 95,000 square feet of office and retail space in Wynwood. The joint venture acquired the project site, a former Coca Cola plant, in September 2019.

Tricera and LNDMRK are also jointly developing a luxury retail project in Miami’s Design District.

In October 2020, the venture acquired a Walgreens leased retail building in Miami Shores in another off-market transaction.

“Our partnership has been able to amass a substantial portfolio of top-tier commercial buildings and developments,” said Karakhanian. “We share an entrepreneurial spirit, strong industry relationships and an ability to identify and execute on off-market opportunities in urban core neighborhoods. Cube Wynwd is a shining example of this approach, and we are excited to implement our long-term plan for this asset.”

Law firm Polsinelli represented Tricera and LNDMRK in the transaction.

Wynwood’s transformation from an overlooked industrial district into a bustling arts, entertainment and retail destination has generated national and international acclaim for Miami. The neighborhood was recently recognized by Forbes as one of “America’s Best Hipster Neighborhoods” and named one of the “Greatest Places in America” by the American Planning Association.