John Buck JV Buys Site for Miami Tower
Upon completion, the mixed-use project will incorporate office, retail and residential components.
The John Buck Co., Florida Value Partners, BH Group and PEBB Enterprises have jointly acquired the 1-acre development site of Miami Station, a mixed-use project to rise in downtown Miami.
Berkadia arranged the $39.5 million transaction on behalf of the previous owner, a joint venture between real estate investor Rainer Viete and Meyers Group, as reported by The Real Deal. Centennial Bank financed the acquisition with a $19.8 million loan, the same news outlet reveals.
The investment marks John Buck’s first foray into the South Florida market. The Chicago-based firm has developed more than $7 billion of real estate projects including several landmark buildings and skyscrapers in Chicago, Washington, D.C., and Philadelphia.
A new tower to join Miami’s skyline
Miami Station has been more than two years in the making. In December 2020, developer Related Group filed the initial plans for the transit-oriented, 40-story mixed-use tower to rise adjacent to MiamiCentral Station. At the time, the development was set to include 250,641 square feet of office space, 7,572 square feet of retail and 310 apartments, as well as 468 parking spaces, according to South Florida Business Journal. ODP Architects served as project architect.
Over time, the project has suffered various adjustments. Current plans call for 244,000 square feet of office space, more than 7,000 square feet of retail and 301 residential units. Approval from FAA and MDAD is pending for an additional 24 stories, on top of the 36 stories already lined up for the property.
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Located at 533 NW Second Ave., in an Opportunity Zone, the development will rise across from the Miami Central Brightline station, facing NW Sixth Street as well. Miami Station will provide connectivity to major employment centers across the Miami metropolitan area, as well as the downtown areas of Fort Lauderdale, Fla., West Palm Beach, Fla., and Orlando, Fla., being accessible via the Brightline route.
Berkadia Senior Managing Directors Jaret Turkell and Roberto Pesant, Managing Director Scott Wadler, Director Yoav Yuhjtman, Associate Director Omar Morales and Senior Financial Analyst Jose Mota facilitated the deal on behalf of the seller.
Addressing the office space shortage
Miami Station represents a ready-to-build opportunity amidst a surge in demand for residential and office space downtown due to an influx of corporate relocations, Turkell said in a prepared statement.
According to a recent Cushman & Wakefield report, Miami’s office market showcased strong demand with 199,000 square feet of net absorption during the fourth quarter of 2022, resulting in a total of 601,000 square feet of absorbed space in metro last year.
The same research shows that about 90 percent of total leasing activity was generated by new agreements, relocations or expansions within the market.
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