BH3 to Move Forward with OZ Retail/Showroom Project in Miami
The 86,000-square-foot development will be the first and largest ground-up Opportunity Zone project in this highly-desirable submarket.
MIAMI—Development firm BH3 reports it has finalized plans to develop a new nine-story retail and showroom project in a Miami Design District Opportunity Zone.
The 86,000-square-foot development at 3801 N. Miami Ave. when completed will be the first and largest ground-up Opportunity Zone project in this highly-desirable submarket.
Ground breaking is anticipated for second quarter 2020 with delivery in third quarter 2021. Pre-leasing is scheduled to commence in October 2019 with rents being offered at significantly lower than other retail space in the market, BH3 states. Segal Suarez is the architect for the development.
“We acquired the properties for the development before the Opportunity Zone legislation, as we were attracted to the location prior to the incentives,” says Gregory Freedman, principal and founder of BH3, which has offices in Miami and New York City. “In 2019, we structured and established an Opportunity Zone fund specifically for the Design District project, and the fund will provide qualified investors with the full tax benefits afforded to them under the legislation.”
BH3 purchased two parcels at 3801 and 3819 N. Miami Ave. for $15.1 million in 2017. The project is fully entitled and received its final and non-appealable site plan approval last month.
BH3’s Opportunity Zone fund, 3801 NMA OZF, LLC, will close its offering to qualified investors on or before Dec. 31, 2019.
The retail and office buildings on the Design District parcels will be demolished to accommodate the new building that will feature 25-foot ceilings on ground level, 14-foot ceilings on floors two through nine, and open floor plans with Interstate 195 exposure. While rents are not final, estimated rents are expected to be in the range of $45 to $55 triple net per-square-foot.