Jimmy and Kenny Tate plan to redevelop a property they just acquired near Dadeland Mall in Miami.
The brothers now have full ownership of the commercial building and parking lot at 7300 North Kendall Drive, a property they closed on last week for an undisclosed amount. Their father, developer Stanley Tate, developed the 118,745-square-foot building in the early 1970s, Jimmy Tate told The Real Deal.
Now, they’ve narrowed their plans down to two options for the vacant part of the lot: a retail project totaling up to 140,000 square feet with parking, or a mixed-use project with 80,000 square feet of retail and 255 apartments. Tate said they bought out “various membership interests” in the property and are now doing a cost-benefit analysis to determine the highest and best use for the site.
“There’s plenty of demand in the market to absorb both retail and residential,” he told TRD.
The developers financed their sale with an $8.5 million acquisition loan from Marquis Bank, David DiMuro, the bank’s executive vice president and senior lending officer, told TRD. Stearns Weaver represented Marquis.
The 2.7-acre property fronts North Kendall Drive and Dadeland Boulevard. It’s one block east of a site that Greystar just acquired. The apartment developer paid $10.3 million for the medical office building with plans to knock it down and built an apartment building geared toward seniors. And nearby at Downtown Dadeland, Pebb Capital and Duncan Hillsley Capital are in the midst of adding a number of new restaurants and tenants to its 127,635 square feet of retail space.
While the Tates will keep the existing eight-story building, they plan to renovate its lobbies and common areas and “bring it up to the 21st century.”
“The property on its own has great cash flow,” Jimmy Tate said. “There’s no reason we can’t keep that.”