Developers 13th Floor Investments and Forte Capital Management acquired their first property in Miami’s MiMo neighborhood, but they aren’t in any hurry to redevelop it.
Europa Biscayne LLC, managed by Renato P. Mariani, sold the property at 620 N.E. 61st Street for $5.15 million to 13th Floor and Forte Capital. The 23,093-square-foot site is on the corner of U.S. 1 and has a Chevron service station and the Europa Cafe in 3,689 square feet of buildings.
The property last traded for $2.34 million in 2007, so the seller benefited from the growth of the neighborhood, as new restaurants, shops and hotels have flocked to MiMo and its historical architecture. Some of those businesses moved to MiMo after they were priced out of Miami Beach, the Design District and Wynwood.
However, MiMo’s zoning and historical status often makes it difficult to secure approval for high-density projects.
An active condo and home builder, 13th Floor has invested more than $280 million in equity in 31 deals since 2008 to manage over $1 billion in real estate. CFO Daryl Shevin said the company was attracted to the MiMo property because it likes the neighborhood and it has strong cash flow with its current tenants.
“One of the things that we really like to do is to find deals with nice positive cash flow and they have future opportunities for either repositioning or rehabilitation or redevelopment,” Shevin said. “There are many potential avenues we could take with this asset. We don’t need to rush into a decision.”
Shevin said 13th Floor will consider more deals in MiMo.
“MiMo is an exciting place,” Shevin said. “It’s a blossoming part of town that by the day adds higher quality business and clientele and attractions.”
Forte Capital President Chaim Cahane called MiM one of Miami’s most desirable locations for growth.