MIAMI—Related Group just closed on a 2.8-acre parcel at 1400 Biscayne Boulevard. The purchase price: $57.25 million.
Related plans to build what it calls a “world-class, mixed-use project” that will span about 2 million square feet of luxury residential and retail. Units will have water and city views.
The location is certainly strategic. The site sits between Downtown Miami, Wynwood, and the Design District and links the Edgewater and Downtown neighborhoods.
"This location is a prime opportunity to be part of a strategic location between Brickell the Design District next to Museum Park," says Matt Allen, COO of Related. "We are seeing a shift where buyers want to be a part of a community built around a tradition of culture. With the Arsht Center directly across street and PAMM and the Frost Science Museum nearby, our future residents will be in the very heart of Miami's thriving arts and culture scene."
Related is keeping busy. The firm this week also closed on the second phase of Doral View with JV partner Rockpoint Group. The companies plan to develop 360 luxury residential apartment units there.
Of course, Related is currently developing a number of fast-selling properties between the downtown and midtown corridors. Carlos Rosso, president of Related Group Condominium, is leading the charge.
For example, SLS Brickell broke ground earlier this year and is set to hit the market in 2016. Hyde Midtown and SLS Lux both start construction this fall, and ONE Paraiso, the second of four planned towers within the Paraiso community, breaks ground this November. Further north, Hyde Resort & Residences Hollywood broke ground last week. In fact, Related has started four multifamily projects in a month.
Related has an alternative financing strategy that gives relies, in large part, on condo owners putting down large percentages of the purchase price in phases. The story is a little different on the multifamily and retail front, but Related is among the winners in the capital markets.
“Construction financing is overall increasing, but lenders are still being selective and are financing only strong developers with good projects,” Robert Vahradian, senior managing director of GTIS Partners, tells GlobeSt.com. “Also, in this cycle, we are seeing more alternative lenders like finance companies rather than traditional money center banks.”
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