The new wave of redevelopment in Miami has found a target, and industry experts are predicting it will be the next hot area. For quite some time now, the Flagler Street corridor in downtown Miami has been overlooked due to several factors, including a low income-producing probability; the area is currently home to several low-end retailers and a property cap rate. But with some of the city’s oldest buildings and the uptick in activity in the downtown area, developers feel it’s a logical place for redevelopment.
According to a recent article from The Real Deal, a Canadian buyer, Danny Lavy, purchased a six-story building with 42,123 square feet of space at 219 East Flagler Street for $9 million. Plans for the building include a renovation that will produce an apartment building or office space with higher rental rates than previously in place. Lavy has also purchased several other properties in downtown Miami. “People have a vision that this is going to be the next hot area,” claimed Ryan T. Shaw, a vice president of brokerage firm Marcus & Millichap.
A New York City investor, Moise Mana, has also invested almost $200 million over the last few years buying properties in the Flagler Street area. Mana believes that the reason this corridor hasn’t been developed yet is because there is “fragmented ownership” in the oldest section of Miami. Mana’s latest purchase was of the two-story Metro Beauty building for $6.8 million, approximately eight times more than its last sale price of $800,000 in 2001. The building includes a barbershop and beauty supply store on the ground floor with office space above. Located near the site of a planned All Aboard Florida train station, Mana has plans to begin a long-term redevelopment of his properties once the City of Miami launches a public project in the area. According to the Downtown Miami Development Authority, the project should kick off in October with a goal of making Flagler Street more pedestrian-friendly by widening sidewalks and encouraging the establishment of more outdoor cafes.