Flagstone Property Group Applies for Modifications to 2007 Approved Plans

Mehmet Bayraktar

Activists continue to press and challenge as Flagstone Property Group, developers of the Island Gardens project on Watson Island, have once again filed for modifications to the 2007 MUSP approved plans. Flagstone is aiming to replace the proposed seven-story parking garage with a two level garage with one level that is below grade. Updated plans were submitted for review on September 19. Island Gardens will feature a superyacht marina that can accommodate up to 550 feet, 2 luxury hotels, condos, and a retail and entertainment promenade with over 221,000 SF of retail and green space. The marina will be the first of its kind in North America and will be able to house of to 50 superyachts matched with full-service amenities for the marina including a clubhouse, on-site customs, etc. Some oppose Flagstone's right to their lease of the land, which was approved pending they would be able to complete the project but doubts have arisen as the property has sat virtually unchanged over the last decade aside from the launch of a sales center and The Deck at Island Gardens. Flagstone Property Group had initially intended to deliver Island Gardens in 2018. Read our initial profile on the Island Gardens project from July 2016.

MDM Submits Revised Plans for Miami World Expo Center Marriott

MDM has submitted revised plans for Miami World Expo Center Marriott set for a mid-October review by the Urban Design Review Board. The developer will redesign the hotel tower from a single curved tower to two separate towers, reduce the tower's height from 54 stories (636' 4") to 53 stories (572' 1"), all together reducing the total hotel units from 1,800 to 1,700. They will also decrease parking from 1,250 spaces to 1,128 spaces. MDM has also proposed to complete the project in two phases starting the initial phase Q1 2017.

Ernst & Young and Regus Sign Leases at Two MiamiCentral

Ernst & Young and Regus have been announced as the anchor tenants at Two MiamiCentral, the new 190,000 SF Office Building in Downtown Miami. Two MiamiCentral is part of Downtonwn's 11-acre MiamiCentral initiative which also includes MiamiCentral Station which is the future home of the Birghtline. 60% of the potential office space at Two MiamiCentral is now leased as Florida East Coast Industries and Moss & Associates will also occupy the building which was designed by Skidmore, Owings & Merrill and will open in 2017.  For Ernst & Young, the lease will be 108 months with two 60 month options. Along with an affiliate of All Aboard Florida, they have filed a Memorandum of Office Lease for 23,163 SF of the office space. Rail service will also commence in 2017. Learn more about MiamiCentral Station in our August Construction Update. 

Downtown Miami Population is Surging

The population of Downtown Miami has grown by great lengths since 2010, according to a new report by the Miami Downtown Development Authority. Downtown Miami now has 88,540 residents, up over 150% since 2000 and over 32% since 2010. The average household income is more than double the national average, at $110,000 annually and over 50% of residents have a college degree. These numbers are primed to continue to rise as more units hit the market in Downtown including One Thousand Museum, Paramount World Center and the recently delivered Centro. Additionally the MiamiCentral Station and the Brightline will begin opening up Downtown Miami to easier access by train via Orlando, Palm Beach and other Florida metropolitan cities.

New Renderings of Paramount Miami World Center "High Street Retail" Concept

Arthur Falcone's Miami World Center has submitted their plans and applied for a warrant for their "High Street Retail" with Miami's Planning & Zoning Department as part of Downtown Miami's multi-billion dollar mega mixed-use residential and retail project Paramount Miami World Center. It will ultimately be the second-largest mixed-use urban development in the United States and largest in Florida. In 2015 the developers had received a warrant for an indoor mall, but after adjusting plans earlier this year to an outdoor mall concept, they have submitted the revisions. Although the new plans were reviewed and approved by the Urban Design Review Board, the decision on the new warrant cannot be issued prior to October 6. Construction has started on Paramount residential skyscraper as the first phase of the project and will finish as a 1.1 million SF urban mega-center over 27-acres. 

Downtown Miami's Bayside Marketplace in For Major Renovation

Bayside Marketplace is ready for a revamp after 30-years as one of the only shopping centers in Downtown Miami. The project will be led by Zyscovich Architects, Ashkenazy Acquisition and General Growth Properties (GGP). GGP sold 49% of Bayside Marketplace in 2014 and Ashkenazy Acquisition took over management of the property earlier this year. Phase 1 of the redesign will include 140,850 SF of public outdoor space. Phase 2 will the result in a 2-level parking garage and added retail space on Biscayne Boulevard. Bayside Marketpalce has over 150 retail and dining/ entertainment tenants and GGP has a $250 million mortgage committed to renovation and expansion of the development. The proposed SkyRise Miami would be located in Bayside if ultimately constructed. 

Miami River Commission Threatens To Halt Construction At Future SushiSamba/ Duck & Waffle Location

There is drama at the Melo Group's Flagler On The River construction project, located at 40 SW North River Drive and the former location of East Coast Fisheries. Now in Phase II of the development, officials with the Miami River Commission have expressed complaints over the lack of a 14-foot-wide riverwalk that was part of the approval of the project. Inspections showed that current construction accounts to a 12 ft riverwalk, down from 14 ft, and a 5 ft unobstructed circulation zone, down from 8 ft. The Melo Group has fought back, claiming that work on the riverwalk has not begun as they are waiting on Tenant Improvement plans from the future tenants which may alter the final design of the riverwalk. They say that upon completion the project will comply completely with their approvals. The future tenants of the riverwalk, double decker restaurant commercial portion of the greater Flagler On The River development will be SUSHISAMBA and Duck & Waffle. City officials have considered either halting construction of not issuing a final certificate of occupancy. 

The Historic Dade-Commonwealth Building to Become Hotel

Spain's OD Hotels will open their first Miami location with 169 rooms in the historic Dade-Commonwealth Building in Downtown Miami. The building is located at 139 N.E. 1st Street and was originally built in 1925. Under supervision of Architect Richard Heisenbottle, the building will have 10 floors added to the existing 7-story structure during the hotel conversion. This restoration will actually return the structure to its original size before it was damage by a hurricane in 1926. Dream Downtown Miami, LLC., a joint venture between a sister fund of the Paris-based Beekman REIM and Immocorp Capital, will lead the redevelopment effort. The parties originally purchased the property for $9.2 million in November 2015 and they planned to leave the property as-is for 2 years as they begin to develop the project. The hotel will be in close proximity to Downtown's Flager Street redesign efforts, Paramount World Center Miami and Brickell City Centre. 

Tibor Hollo Files To Increase Approved Height of One Bayfront Plaza Proposal

Tibor Hollo has filed a proposal to the FAA for their One Bayfront Plaza development, which will be an ultra-tall mixed-use tower in Downtown. The proposal is for a 1,044 ft mixed-use tower with residential units, office space, retail mall and hotel units. Construction would be scheduled to begin in January 2018. Plans had previously been approved for the project at 1,005 ft in 2015, but the developers seeks to go higher as FAA restrictions has eased since. The lot has quite a bit of history and has long been expected to be developed into one of the tallest buildings in Miami and an iconic part of the future Miami Skyline. Tibor Hollo has over 50 years of experience as a real estate developer in Miami including as the president of Florida East Coast Realty

Buyers & Investors in Downtown's New Centro Can Now Qualify For a Fannie Mae Loan

Buyers in Newgard Development Group's Downtown's newly delivered 352 loft style unit Centro Condominium will now be able to close with a Fannie Mae mortgage with rates around 3.45%. With the approval, which is through February 2018, buyers may be able to finance up to 95% of the purchase price on a 30 year mortgage. There are less than 30 units left to be sold and new residents have begun to move-in. Centro is located at 151 SE 1st St. in downtown

Those who qualify for the loan can take out up to 95% as a primary residence, 90% for a second home, and 85% for an investment property purchase, though the maximum loan amount cannot exceed $417,000. Rates can be as low as 3.45%. Units at Centro range in from $300,000 to in the $500,000's and from 654 to 1,131 SF. The innovative building has no parking and is a true "New York" style downtown condo building. It is part of the push into cleaning up Downtown Miami and making it a desirable place to live. 

“Securing Final Fannie Mae approval means that a buyer’s principal and interest on a unit at Centro can be extremely affordable and beyond-comparable to renting, with the affordability challenges in Miami, specifically within the downtown/ Brickell urban core, Centro becomes one of the area’s greatest values.” said Harvey Hernandez, the chairman and managing partner of Newgard Development Group. “Centro provides a rare value proposition, luxury, high-tech design, within very attainable pricing and financing, something which is virtually unprecedented in today’s downtown/Brickell condominium market.”