The Related Group, one of the largest multifamily developers in the country, is doubling down on Miami’s Wynwood arts district.
The firm has completed one apartment complex in the 50-block corridor north of downtown, while another is set to open in the fall. The Miami-based developer also has three more rentals in the pipeline, which would bring its commitment to more than 1,200 units in the once-overlooked industrial area that’s now getting a major makeover.
“We’re very bullish on Wynwood,” Jon Paul Perez, a Related vice president, said in an interview. “Wynwood is an evolving neighborhood. People really do want to live there.”
Wynwood was considered Miami’s garment district from the 1950s to the 1990s, but market forces eventually moved those jobs overseas, leaving Wynwood a mostly crime-ridden area with graffiti sprayed across the abandoned warehouses.
In the early 2000s, art galleries moved into the neighborhood and street art and murals started drawing crowds. Restaurants and cafes soon followed, and now developers are moving in to build upscale residences and offices.
Nearly all of the 1.5 million square feet of office inventory in the Wynwood-Design District market is in Wynwood, according to CoStar Market Analytics.Developers are now building 340,000 square feet, with 1.7 million square feet in the pipeline. If all proposed projects are built, the area will have nearly 4 million square feet of offices, representing more than 3% of the metropolitan Miami inventory, according to CoStar data.
Perez, son of Related founder Jorge Perez, said that the firm is building apartments in Wynwood on the strong belief that people want to live near their work.
In the past month, it opened Wynwood 25, a 289-unit apartment complex at 215-339 NW 24th St. The project is adjacent to The Annex, a 52,000-square-foot office and retail project that’s expected to open in September.
Jon Paul Perez said the first major residential development in Wynwood is more than 40% leased. Asking rents at the studio, one-, two- and three-bedroom units range from $1,500 to $4,000 per month.
Related is partnering on Wynwood 25 and The Annex with East End Capital. The firms have announced leases for 7,500 square feet with Austin, Texas-based sushi phenomenon Uchi and San Diego-based Tahini Street Food, a Middle Eastern restaurant, at Wynwood 25. It will be the first location in Florida for both restaurants. Concert promoter Live Nation Entertainment is the first tenant at The Annex.
“We’re looking to curate an experience for people,” said Marc Gitto, managing director of East End.
The Bradley Wynwood is due to open in November with 175 micro-unit rentals at 51 NW 26th St. Related has said the units will rent for less than $2,000 a month.
The developer also is planning Wynwood 29 at 2828 NW 1st Ave. The 182-unit building will be built as apartments, though Perez left open the possibility that it could become a condominium project at some point.
What’s more, Related expects to close on two more Wynwood sites for a total of 600 units and about 200,000 square feet of office space. Those two buildings, along with Wynwood 29, could break ground next year, Perez said.
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