MIAMI—The office condo concept continues to pick up steam in a recovering Miami office market. The latest project announcement comes from Riviera Point Development Group and moves deeper into Miami-Dade County.

Beyond Tibor Hollo's 2020 Ponce in Coral Gables and Newgard's One Flagler in Downtown Miami Riviera Point Business Center at Doral will rise in what has emerged as one of the hottest cities in the region for new commercial real estate development. The $9.5 million, 41,000-square-foot business center is funded through an EB-5 investment.

“Doral's population growth means opportunities for small professional firms, international trading companies, insurance agencies, title companies, marketing and technology businesses to serve a dynamic local community,” says Riviera CEO Rodrigo Azpurua. “Yet the existing supply of new, for-sale office space for companies needing 2,000 square feet or less is extremely limited.”

Located at 9000 Northwest 89th Court and Northwest 15th Street in Doral, the lakefront two-story building has a competitive differentiator. Beyond its location, it's also targeting small businesses looking to build equity in first-generation condo office space. The majority of the 2 million square feet of office space approved by the Doral will serve larger space users—the regional, national, and international companies that have fueled Doral's growth.

Corrales Group Architects designed the project, which promises to sell at prices comparable to properties built before the economic downturn. Office condos dominated the Miami market a few years ago, with about 4 million square feet under development just before the Great Recession.

Riviera is doing something right. Fifty-five percent of the complex's 825- to 1,530-square-foot office suites are pre-sold. Construction will begin this month, and he expects completion in first-quarter 2016.

“Now, with the Doral area's leasing rates and construction costs climbing as the economy strengthens, small companies with stable space needs are looking at owning their space to control future costs,” says Azpurua. The site is located five minutes from Miami International Airport and the Miami Free Zone and also offers quick access to Dolphin Expressway/Palmetto Expressway Interchange. 

Market conditions support the office condo strategy, with SBA and conventional loan interest rates at appealing levels.  There's also a strong cultural component.  Many Doral residents are entrepreneurs and professionals from Latin America, where it's typical for small businesses to own their office space, according to Azpurua, who was an attorney in his native Venezuela before immigrating to the US with his family in 2001.

“South Florida is a powerful draw for Latin American investors facing economic crisis and political uncertainty in their nations, and Doral has a high profile in Caracas, Bogotá and other key cities,” says Azpurua. His company is among Florida's most active EB-5 developers. Riviera has three projects underway in South Florida via the federal Immigrant Investor Program.

Newgard is also targeting foreign buyers, with Latin Americans topping the list, according to Harvey Hernandez, chairman and managing director of the development firm. Newgard is presenting One Flagler as an opportunity to own a piece of Downtown Miami's office market at prices well below replacement cost.

“There is no doubt that demand for luxury condos in Miami among international buyers is high,” Hernandez tells GlobeSt.com. “We recognized that these buyers—especially those from Latin America—are also used to owning office and commercial properties in their own countries but have not had many opportunities to own those types of properties in Miami.”