The Real Deal New York

A $1 billion development in Little Haiti, Ortega’s big Miami buy, Kylie Jenner’s crash pad and more…

South Florida briefs

January 01, 2017
By TRD Miami staff

Innovation district

‘Magic City’ planned for Little Haiti

Developer Tony Cho has partnered with Silicon Valley entrepreneur Bob Zangrillo to bring a $1 billion technology-and-culture-focused development to Miami’s Little Haiti.

“Magic City,” as the development is  called, will rise on a 15-acre site between Northeast 60th and 64th streets and Northeast Second Avenue to the railroad tracks.

Little Haiti, a neighborhood that has attracted artists and entrepreneurs priced out of  Wynwood, is also becoming increasingly popular with investors and developers. The developer duo have already brought on tenants, including Wynwood-based Salty Donut, the Institute of Contemporary Art, Photopia and Etnia Barcelona.

The first phase will include a sculpture garden, the 30,000-square-foot Magic City Studios and a 15,000-square-foot innovation center that will house startups, co-working space and other collaborations.

Future phases will bring an office tower, retail space and workforce housing, including micro units. The developers are also considering a boutique hotel.

The project has been self-financed so far, but Cho and Zangrillo are now seeking private and public financing.

Ortega buys Southeast Financial Center

Amancio Ortega

Spanish billionaire Amancio Ortega has smashed a Miami record with his $516.6 million purchase of Southeast Financial Center, an iconic office building. JPMorgan Asset Management began shopping it around in early 2016.

The sale was the largest commercial buy in Miami this year, blowing past the record set by Sumitomo Corp. in May, when the Japanese conglomerate acquired the Miami Tower for $220 million.

Ortega’s purchase covers the 55-story tower and roughly two acres of land at 200 Biscayne Boulevard. With an expansive 1.2 million square feet of leasable offices, the sale breaks down to $430 per foot.

Data from the CoStar Group shows that the financial center is nearly 88 percent occupied, with asking rents ranging from $22 to $47 per square foot — some of the highest downtown.

Formerly known as the Wachovia Financial Center, Southeast was last traded when JPMorgan bought out its partner on the property, Macquarie Office Trust, for $182.5 million in 2008. The tower, built in 1981, is known for its high-end finishes and distinctive design.

Forbes pegs Ortega’s net worth at $74 billion, and his most recent buy comes on the heels of a number of other record-breaking property deals this past year — among them the $135 million purchase of San Francisco’s Tiffany Building in September and, a month later, his $550 million purchase of Madrid’s Cepsa Tower.

“When you travel around the world and look at the best assets in every gateway city, you will find that he’s the preferred buyer,” said Michael Comras, who sold an entire block in Miami Beach to Ortega last year for $370 million.

Kylie Jenner’s Art Basel crash pad

Kylie Jenner

When celebrity Instagrammer, cosmetics magnate and TV personality Kylie Jenner came to Art Basel, she crashed at a Miami Beach home on the market for $20 million.

Jenner and her friends stayed at the 6,700-square-foot, six-bedroom house at 440 South Hibiscus Drive, which was completed in 2016. The modern two-story home has a rooftop lounge with 360-degree views, a bar, movie theater, gym, outdoor kitchen, boat lift and dock, infinity-edge pool, hot tub and fire pit, among other features.

TMZ reported that the house rents for $8,000 a night on Airbnb, but listing agent Julian Johnston, a broker at Calibre International Realty, said Jenner stayed there for free as part of an Art Basel event. He added that she is a friend of the owner, Aldo Scarpatetti, a doctor based in Switzerland.