Miami Design District's West End in Line for Three-Part Overhaul
A joint venture already has some retail properties ready for occupancy during next month's Miami Art Week. The next stage is a five-year plan for an open-air market before a massive overhaul building up to 600,000 square feet of real estate.
The western edge of the Miami Design District has lagged behind on foot traffic, dining options and high-end retail, but two high-powered real estate companies are collaborating to change that.
A joint venture of the Miami Beach-based Comras Co. and publicly traded real estate investment trust Apollo Commercial Real Estate Finance Inc. plans to redevelop a block into The Market at Miami Design District.
The area is between Northeast 39th and 40th streets and from Miami Avenue east to First Avenue. More lots northeast of Miami Avenue and 40th Street also are part of the effort, according to Comras’ project website.
The companies are planning a three-part overhaul of 16 commercial properties.
The joint venture already has completed its first phase by renovating several storefronts and preparing them for leasing by galleries, furniture showrooms and others that want to participate in December’s Miami Art Week.
Art Basel Miami Beach canceled its in-person event this year because of the coronavirus pandemic and instead plans its first Online Viewing Rooms iteration Dec. 2-6. Other galleries that usually open during Art Basel will have in-person events this year, including Design Miami in the Design District.
Two properties ready for tenants are the 10,593-square-foot, two-story building at 3925 N. Miami Ave. and the building at 25 NE 39th St., where Minotti furniture store was located before moving to a more central Design District location to the east.
In their second phase, Comras and Apollo will make the area more walkable by creating courtyards and a more promenade-like feel. The joint venture has started working on an open-air market concept with an eye toward becoming an extension of the Design District by adding luxury retailers, trendy eateries, showrooms and galleries.
“While the Miami Design District has come to life as one of South Florida’s most sought after destinations for high fashion, design and upscale dining, the neighborhood’s west end is still full of untapped potential,” Michael Comras, Comras CEO, said in prepared remarks. “Looking ahead, our team will be repositioning these properties as a contemporary market, catering to locals and visitors who are drawn to great food and unique retail concepts in an open-air, immersive setting that offers consumers a sense of discovery every time they visit.”
The open-air market is to be completed next year and stay open for about five years until the joint venture embarks on a final phase — development of up to 600,000 square feet of real estate allowed under current zoning on the assembled 110,000 square feet.
The joint venture is planning high-end residences, a boutique hotel, offices, retail, galleries and cafes.
The assemblage was put together by New York-based developer RedSky Capital LLC and JZ Capital Partners in 2015. They took out a $220 million loan from Apollo, according to The Real Deal. Apollo took over the properties after RedSky defaulted on a loan for properties in New York.
Apollo originates, acquires, invests in and manages commercial first mortgage loans and other commercial real estate debt. It’s managed and advised by ACREFI Management LLC, an indirect subsidiary of global alternative investment manager Apollo Global Management Inc. Apollo Global has $433 billion of assets under management.
After taking over the west Design District properties, Apollo Commercial Real Estate Finance brought in Comras as a partner.
Comras, an investor and developer that also does retail leasing, owns retail properties in key Miami-Dade County markets, including Miami Beach’s Lincoln Road, Miami’s Wynwood and elsewhere in the Design District.