Wynwood levels up with expensive condo sales – Trade Observer
Wynwood’s nascent condo market is taking off.
Even as interest rates continue to climb, Wynnwood condos top $2,000 a square foot in sales, setting a new benchmark for the Miami neighborhood, which recently added condos to an area known for its outposts. transformed into warehouses.
The Associated groupMiami’s largest condo developer, is under contract to sell a pre-construction condo on the top floor of the NoMad Wynwood Residences development just under $2,000 per square foot, bringing the total price to over $1.6 million, Senior Vice President Nicolas Perez says Commercial Observer.
“We’re very optimistic about Wynwood as a neighborhood,” Perez said.
The sale comes just a few months after a Diesel-the branded condo development, just a block west of the NoMad, landed a similar sale. In September, a 2,400 square foot penthouse was contracted for $2,000 per square foot, for a total sale price of $2.2 million, said Patrick PiresDirector of Marketing and Operations at Bel Invest Groupthe project developer.
These sales are the most expensive residences to contract at Wynwood on a per-square-foot basis, the two executives said. For perspective, the average price per square foot in Brickell, a sought-after high-rise neighborhood in Miami, was $689, according to Douglas Elliman’s latest report. quarterly report.
Wynwood condo deals are ‘a turning point,’ says Dwntwn Real Estate Advisors‘ Tony Arellano, an active broker at Wynwood for 17 years. “You can compare it to the good old days of neighborhoods like [New York’s] SoHo or the Meatpacking District. Buying in culturally vibrant growing neighborhoods has always been a great idea. »
In the 1980s and 1990s, artists took over abandoned factories in SoHo and the Meatpacking District, prompting developers and investors to turn them into today’s multimillion-dollar apartments.
In the case of Wynwood, dilapidated warehouses have been rehabilitated to house cultural institutions and facilities, such as the Rubell Museum and the Wynwood Walls. After the pandemic hit, Wynwood became a leisure district, attracting office developers and high-profile businesses such as a venture capital firm Founders Fund and accounting giant PwC.
But the neighborhood lacks residential supply, housing just 1,608 units, most of which are rentals, according to a report 2021 from Downtown Miami Development Authority. By comparison, Edgewater, a neighborhood just east of Wynwood, has 13,010 units.
Condo buyers are eager to get in early in Wynwood’s so-called new frontier, real estate executives say. Even though the units of the last stage of the Diesel development had not yet arrived on the market, a potential buyer kept inquiring about them. Pires eventually relented, offering what he considered a “pretty high offer” of $2,000 per square foot. To the executive’s surprise, the deal was done.
“We thought he was going to collapse, but he didn’t think twice about it,” Pires said. “He’s been watching Wynwood for 10 years – he’s in finance – he knows the kind of return he’s going to get.”
As Wynwood has become a hotbed for development and land prices have skyrocketed, condos offer investors an easier way to own part of the neighborhood, Dwntwn Realty’s Arellano said.
The units are indeed oriented towards them. Condos in both projects tend to be small for Miami, ranging between 500 and 2,400 square feet. The NoMad project will have no restrictions for short-term rentals, allowing owners to rent out their residence on sites like Airbnb. These units are also fully furnished.
“You literally just need a toothbrush to move in,” said Perez of Related, who declined to identify the buyer or the size of the unit.
The NoMad and Diesel developments will come out of the ground, respectively, in the first half of next year and next month. The two buyers, who are based in the United States and have not been identified, have signed contracts and made deposits. (While some of Diesel’s sales were made in part through cryptocurrency, Pires said none were used for the $2.2 million deal.)
NoMad development, a joint venture with Sydell Group and tri cap, will rise to nine stories, comprising 329 condominiums, half of which have been reserved, with prices starting at $500,000. The project, to 2700 NW 2nd Avenueis the first condo marked after The NoMad Hotela hip 2010s New York establishment that closed during the pandemic.
The Diesel project is also the Italian fashion brand’s first foray into real estate. Located at 148 NW 28th Streetthe development will hold 159 units with prices starting at $500,000.
Julia Echikson can be contacted at [email protected].