MIAMI—A 1920s complex of warehouses in Miami's up and coming Wynwood neighborhood has traded hands. MB America, a Miami-based wealth and investment management company, just brokered the sale of SPACEBY3.
The warehouses, known collectively as SPACEBY3, have been converted into blank canvas spaces at a time when the industrial-turned-artsy neighborhood is gaming fast momentum with developers and commercial real estate developers. A private client sold the assets for $11 million, representing a 57% ROI in a single year.
"Miami has proven itself as one of the most dynamic and vibrant real estate markets worldwide," says Marco Bruzzi, co-founder and CEO of MB. "We were confident that there would have been new development in the area increasing the value of this investment."
SPACEBY3, located at 2105 North Miami Avenue, is a versatile venue with an iconic redbrick fac¸ade. The buildings offer 22-foot high vaulted ceilings, outdoor space and 33,474 square feet of contiguous, single-level area.
"With this project, the property attracted considerable interest which resulted in a competitive tendering process," Bruzzi. "The new owners saw the potential in a rare opportunity to acquire a prime site in one of the most interesting areas for real estate investment and development in Miami."
Bruzzi is right. Thor Equities is also betting on Wynwood, recently acquiring 2800 Northwest Second Avenue, a 100,000-square-foot site in the heart of the emerging Miami neighborhood. Wynwood warehouses are selling left and right. Residential should follow.
"Because of its past industrial zoning restrictions, very little housing has been built there in the last couple of decades," Marc Coleman, president of development for One Real Estate Investments, tells GlobeSt.com. "This is in the process of changing with the adoption of a new zoning district that will modestly increase height while allowing more residential units to be built, all while keeping the funky industrial uses and esthetics that have made it what it is."
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