Rose & Berg Realty Group has broken ground on The Gateway at Wynwood, a 12-story Class A office building in Miami’s Wynwood district. The upcoming project at 2916 N. Miami Ave. is scheduled for completion in the second half of 2021.
The property will comprise about 195,000 leasable square feet of office space, about 26,000 square feet of street-level retail, a private rooftop terrace and a garage. Amenities will include 24/7 security and 2:1,000 on-site covered parking. The building will target LEED Silver certification, a Rose & Berg spokesperson told Commercial Property Executive.
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The groundbreaking took place about two weeks after R&B secured a $76 million construction loan from balance-sheet lender 3650 REIT, brokered by Berkadia Commercial Mortgage LLC. The project architect is Kobi Karp, of Miami, and Plaza Construction is the general contractor. Colliers International South Florida’s Kingsley-Rutchik team is handling the office leasing, and CBRE is handling retail leasing.
Rose & Berg assembled the development site through two acquisitions in 2016 and later demolished the neglected industrial buildings that were on the 1.1-acre parcel.
Solid and sunny
The building is in the emerging office market in the Wynwood area, north of downtown Miami. The location is minutes from the city’s core, Aventura, Miami Beach, Miami International Airport and Port Miami. It’s also near I-95, making The Gateway at Wynwood easily accessible from Fort Lauderdale and West Palm Beach.
Overall, the Miami office market is strong, having seen a decrease of 140 basis points in vacancy, to 12.4 percent, from late 2018 to late 2019, according to a fourth-quarter 2019 report from Cushman & Wakefield. This occurred despite the delivery of 245,000 square feet of new space in those 12 months. Office leasing for the year hit 2.6 million square feet, surpassing 2018.
The Wynwood neighborhood is in the southern part of Miami’s Biscayne submarket, which had a 19.9 percent overall vacancy on an inventory of more than 2 million square feet. The average Class A full-service asking rent was $45.45, also according to Cushman & Wakefield.