An assemblage of land in Miami’s Wynwood area, less than an acre in size, traded for $26 million.
The 41,550-square-foot parcel of land, located at approximately 2825 N.W. Second Ave., includes two retail properties, a four-unit apartment building, and four vacant lots.
The seller is New York-based Gamma Real Estate, a company that invests in real estate and provides commercial real estate loans. The buyer is Gamma FL Wynwood LLC, a limited liability company connected to IPX 1031, a company with 35 locations across the U.S. that performs 1031 exchanges for clients. A 1031 exchange enables investors to defer federal capital gains taxes by trading one property for another.
Jonathan Kalikow, president of Gamma Real Estate, said the buyer is a well-funded institutional investor who wishes to remain anonymous for now.
Gamma Real Estate had provided a $23 million mortgage for the construction of a co-living project with 108 apartments, 70 hotel rooms, 9,508 square feet of commercial space and 163 parking spaces called The Collective Wynwood. When The Collective, a real estate company with offices in London and New York and headed by developer Reza Merchant, failed to pay back the loan, Gamma Real Estate seized the land in a foreclosure suit.
“It is a very good location, but whenever you do development, there is a degree of complexity,” Kalikow said. “We had this property on contract three times before it actually sold.”
The transaction enabled Gamma to recoup its loan and make a slight profit after legal costs, Kalikow said. “There was some utilities and liens from the borrower we had to take care of, too,” he added.
South Florida real estate boomed during the pandemic as high-income households and companies migrated to this region from other parts of the U.S. However, property transactions have slowed due to higher interest rates.
The Wynwood Arts District has been a particular favorite for real estate and investors where trendy warehouses have been steadily replaced by apartments, retail, and office projects.
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