MIAMI—With so much activity in Downtown Miami, some developers and investors are turning to nearby Little Havana for opportunities. The latest is Melo Real Estate president and CEO Frank Rodriguez Melo.
Melo just negotiated the sale of six multifamily assets in Little Havana. Melo spent $5.255 million, which equates to $56,000 per door.
Rodriguez Melo is a partner in Grupo Habita, the buyer of all the multifamily assets. He says several of the deals required patience over six months to close, due to an environmental issue.
"Strong rental demand continues to drive the market and buyers are more and more willing to persevere knowing the value that these assets are and the growth they will continue to deliver," says Rodriguez. “These assets offered strong cash flow and fundamentals.”
Melo represented both the seller, TLGJ Prop, and the buyer, Grupo Habita, in sale of four multifamily assets located at 911-929 Southwest 5th Street, 107 Northwest 8th Avenue, and 776 Northwest 2nd Street, which include a total of 57 units. Group Habita acquired the multifamily asset at 429 Southwest 8th Court from Comm Tech. Pino Commercial sold the multifamily property at 235/245 SW 6th Street, to Grupo.
Little Havana has long been associated with popular social, cultural, and political activities, including the Calle Ocho Festival, Viernes Culturales (Cultural Fridays), and the Three Kings Parade, televised to millions of people every year on different continents.
The neighborhood and its “main street” Calle Ocho (Southwest 8th Street/Tamiami Trail) is known for its street life, restaurants, music and other cultural activities, mom and pop enterprises, and political passion.
Little Havana is attracting many types of investors. Recently, six retail properties in Miami's Little Havana and Brickell neighborhoods have gained the confidence of investors as Miami's retail market continues posting growth.
In December, HFF arranged a $12.2 million senior refinancing for the 64,939-square-foot portfolio for Barlington Group. UBS Investment Bank provided the 10-year fixed-rate CMBS loan. Chris Drew, a director at HFF, tells GlobeSt.com, “This long-term CMBS loan will help The Barlington Group execute on its vision for Calle Ocho, ensuring that Little Havana's growth of local art and unique restaurants will continue.”
Last September, a 1031 got creative with a Little Havana deal. In the Spring of 2014, a new affordable housing project opened there and Little Havana will soon be home to luxury condos. The Astor Companies launched a new residential development in Miami's historic Little Havana neighborhood a year ago.
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