The 1765 North Miami Ave. site in the Arts & Entertainment District is located in designated Opportunity Zone.
MIAMI—A locally-based partnership of the TSG Group and the Linéaire Group has spent nearly $6 million for a parcel in the Arts & Entertainment District. The purchase marks TSG Group's first purchase in a designated federal Opportunity Zone.
TSG Group, a boutique, real estate development and investment company, and Linéaire Group, a Miami-based investment and design firm, acquired the 30,000-square-foot land parcel at 1765 North Miami Ave. for $5.9 million.
The property is located near Wynwood and is zoned for multifamily development, TSG Group notes. In the past 10 years, the neighborhood has seen significant population growth and is expected to continue to post steady increases in residents in the years to come, according to the Downtown Development Authority's most recent demographics report.
“This deal signifies our first land acquisition in an Opportunity Zone and bullish approach to growing our portfolio in many of South Florida's emerging areas,” says Camilo Lopez, managing partner of TSG Group.
A spokesperson for TSG Group tells Globest.com that the partnership plans to develop a multifamily project at the site. However, TSG Group was unable to provide a development cost estimate since the plans for the multifamily development are still in the preliminary phase.
TSG Group Managing Partner Jorge Escobar, in collaboration with Diego Bonet of Linéaire Group, will spearhead the Opportunity Zone regulation process. Escobar formerly served as the global market head of Chile for HSBC Private Bank, while Bonet previously worked in the real estate finance divisions at The Carlyle Group and Goldman Sachs & Co.
Colliers International represented both parties in the deal. Saul Ewing Arnstein & Lehr real estate attorney Luis Flores represented the buyer in the purchase. The deal was sourced and negotiated by Linéaire Group.
TSG Group acquired a property in the Design District in 2015 that is to encompass nearly 9,000 square feet of leasable retail space. The property was also recently designated as part of an Opportunity Zone.
However, the TSG Group spokesperson states that tax benefits do not apply to land acquisitions that took place before Opportunity Zone legislation. The firm is in the process of exploring options for the site, such as a joint-venture.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
