It became apparent last week just how good a deal, when the Multiplan affiliate, Brickellinvest Joint Venture, announced it sold an adjoining 2.5-acre parcel for an estimated $19 million or $7.6 million per acre ($174.47 per sf) to Fortune International Equity Corp., an affiliate of Miami-based Fortune International Realty Inc.
Just during the first quarter this year, Hollo tells GlobeSt.com, demand in this submarket took an upturn evidenced by the recent clamor for essentially the last two undeveloped pieces of property on a two-mile strip of land between Brickell Avenue and Biscayne Bay.
"The market is stronger than ever," says Hollo, president of Miami-based Florida East Coast Properties Inc. "It's an extremely strong market. Everybody wants to buy (the parcel) from me; everybody is clamoring. Sales are phenomenal. If you just compare from December, March is so much stronger."
Much of this demand comes from the submarket's reputation as a haven for professional services--banking, legal and real estate, for instance--and subsequent demand from highly paid professionals for residential space in the same submarket.
"Brickell is just a very hot address," local market expert Lewis Goodkin tells GlobeSt.com.
This growth is visibly apparent in the construction under way on a 65-story mixed-use hotel, condominium, office and retail project that Four Seasons Hotel & Resorts is building.
Then there are the newly completed projects--J.W. Marriott Miami, a 21-story 300-room hotel at 1111 Brickell; Mandarin Oriental Hotel, a 24-story 329-room project on nearby Brickell Key; and Espirito Santo Plaza, a 36-story mixed-use hotel, condominium, retail project at 1395 Brickell.
"Besides demand for primary homes," Goodkin tells GlobeSt.com, "we're talking about a substantial amount of second-home demand in the market that is heavily international in flavor."
Although the company would not confirm reports, Fortune International apparently plans to profit off that demand by building a $200 million, 46-story condominium project on the 2.5 acres it acquired last week.
It surely accounts for the reason why Hollo is considering the development of a mixed-use project on his 2.5-acre parcel.
The Miami offices of Sonnenblick-Goldman Co. brokered both deals for Multiplan USA, a subsidiary of Sao Paulo, Brazil-based Grupo Multiplan S.A.
"We are considering several plans," Hollo tells GlobeSt.com. "It will definitely be a multi-use project, and it is entitled to one and a quarter million sf of net construction, not including the garage. We'll announce it sometime over the next month. And then we have another property we're starting on next month--a 42-story, 645-unit rental apartment complex."
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