Related Buys Development Site in Miami's Wynwood

The eight-parcel site was bought from a medical diagnostics equipment maker forfover $8 million per acre.

The Related Group, perhaps Miami’s biggest developer, added to its holdings in the city’s trendy Wynwood Arts District by paying $18.5 million for a development site.

Related, led by billionaire Jorge Pérez, on Friday acquired several adjoining lots at Miami Avenue and south of Northwest 22nd Street from medical diagnostics equipment maker Diamedix Corp. for more than $8 million an acre.

The assemblage previously was used as a five-building manufacturing facility with a combined 51,205 square feet on building space on 2.27 acres in eight parcels.

The addresses of the purchased properties are 2141-2115 N. Miami Ave., 2150-60 N. Miami Ave., 38 NW 22nd St. and 2155 NW Miami Court.

The property’s T6-8 zoning allows a dense mixed-use project. Related has not disclosed its development plans aside from a residential focus.

Wynwood once had a booming textile industry, warehouse base and predominantly Puerto Rican residents before it was “discovered.” In more recent years it experienced a renaissance as an internationally recognized arts district dominated by brilliant murals and art galleries set up in onetime industrial buildings.

It’s now entering a new phase of redevelopment with offices, condominiums and apartments joining the mix.

Related finished the 289-unit Wynwood 25 apartment building in the second half of last year and then the 175-unit Bradley in partnership with Block Capital Group. The developer has two other residential buildings in the works, the 182-unit W House micro condominium and the Wynwood 29 condos. All are within about a half-mile of the latest purchase.

Prolific multifamily developer PMG, with offices in Miami and New York, in partnership with Greybrook Realty Partners based in Toronto also wants to build an eight-story tower with over 220 apartments, hotel, more than 35,000 square feet of retail, and rooftop bar and restaurant. PMG and Greybrook acquired the 1.6-acre site for $46 million last August. 

The neighborhood, whose diverse restaurant offerings have remained closed during the coronavirus pandemic except for pickup and delivery, was considered one of the top travel destinations in the U.S.

With its growth, finding large available property has become more difficult, said Miguel Alcivar, a director of Cushman & Wakefield in Miami who was part of the brokerage team that arranged the sale to Related on behalf of the seller.

“This offering presented a rare opportunity to acquire critical mass with flexible zoning in one of the nation’s most exciting neighborhoods,” Alcivar said in a statement.

He worked with Cushman & Wakefield vice chairman Robert Given and executive managing director Troy Ballard in Fort Lauderdale, senior director Greg Masin and director Frank Begrowicz in Miami and senior director Jason Hochman in Boca Raton.

FIP Realty executive vice president David Colonna in Miami represented PRH Investments LLC, the Related affiliate used to buy the site.

The rise of condos and apartments in Wynwood has pitted residential developers and dwellers against some of the popular open-air event spaces such as Wynwood Marketplace over late-night noise issues. Wynwood Marketplaces includes merchants, food trucks and The Deck bar, all on property owned by pioneer Wynwood redeveloper and property owner Moishe Mana.

Mana responded to complaints he saying he and other Wynwood pioneers are being harassed after heavily investing to revitalize the neighborhood.

The dispute is common in growing Miami neighborhoods still trying to establish their identity and find common ground with residential and hospitality interests.

“While Wynwood is known for its dozens of art galleries and an ever-growing number of restaurants, bars, and retailers, the submarket is only just now starting to see larger scale mixed-use development,” Given said.

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