Wynwood Warehouses Selling Left and Right

MIAMI—How hot is Wynwood? Two vacant warehouse properties in the emerging neighborhood just secured $9.75 million worth of non-recourse financing.

Aztec Group director Charles Penan and senior managing director Howard Taft arranged the loans. Specifically, Aztec arranged $6.25 million in non-recourse financing for a 26,765-square-foot vacant, industrial/flex building located at 201 Northwest 21st Street, and a $3.5 million non-recourse loan for a 20,530-square-foot vacant warehouse at 2217 Northwest Miami Court.

“In both transactions, the ownership has the opportunity to turn these vacant warehouses into active commercial real estate spaces,” says Penan. “That will further enhance the commercial and retail mix in the vibrant Wynwood Arts District, while enhancing the properties' long-term values.”

The 201 Northwest 21st Street property sits at the southern gateway to the Wynwood Arts District. Aztec sees it as a catalyst for future development of the neighborhood. The 1.11-sacre site has over 200 feet of frontage along Northwest 2nd Avenue.  On the 2217 Northwest Miami Court property, design plans under development call for retrofitting the building into a mixed-use property that will house several fashion boutiques, restaurants and office users.

“The properties' ideal locations within Wynwood, the conservative loan requests and strong ownership proved valuable to secure very favorable financing terms with the lender,” says Taft. “These two financing deals are the first of several transactions both borrower and lender hope to work together on in the near future.”

City National Bank provided the financing. Terms of the non-recourse loan facilities include a LIBOR-based floating interest rate, interest only payments and 35% loan-to-value ratio. 

The Wynwood Arts District, formerly known as Miami's Garment and Fashion District, is witnessing a bona fide transformation with major residential, retail and office properties under development. Vogue magazine rated Wynwood ninth in its 2014 list of “Coolest Neighborhoods in the World.” The Wynwood area is already home to some of Miami's most cutting-edge restaurants, art galleries, and unique boutiques.

“The Wynwood NRD Plan sets forth new zoning guidelines for Wynwood that will encourage new, mixed-use residential and office developments, create dedicated funding for neighborhood improvements, promote pedestrian-focused activated streets and preserve the area's unique artistic and industrial character,” David Polinsky, a Wynwood Business Improvement District (BID) board member and planning committee chair, tells GlobeSt.com. “The goal is to ensure Wynwood's continued evolution as a center for creativity that attracts visitors, innovators, and residents.”