The Real Deal Miami

Bayside Market owners could win big in lease renegotiation

New agreement would allow Jeff Berkowitz’s Skyrise development to rise

March 18, 2014 04:30PM

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A rendering of Skyrise

A rendering of Skyrise

The owners of the Bayside Marketplace in Miami stand to gain — if the city allows Jeff Berkowitz’s Skyrise tower to be built — due to the harsh terms of a proposed lease renegotiation.

Bayside is currently leased to General Growth Properties of Chicago for 46 years, according to ExMiami.

The proposed renegotiation would allow Berkowitz to build Skyrise on an underused lot. In exchange, GGP would gain a 99-year lease extension, the ability to refinance in exchange for a one-time payment, no benefit to the city if the lease is sold or transferred, a slight rent reduction and a commitment to invest a mere $10 million into the property over 10 years.

The deal, which was first proposed in mid-2013, has been reportedly sweetened, but the terms are still far from favorable for tax payers, according to Exmiami. [ExMiami] Christopher Cameron

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