David Edelstein is spending about $32 million to buy a large assemblage on Fifth Avenue in Wynwood that he eventually plans to develop into a mixed-use project, The Real Deal has learned.
The New York developer is acquiring nearly two blocks on the east side of Fifth Avenue between 26th and 28th streets. The assemblage totals about 74,000 square feet, or 1.7 acres, of land. It’s near Goldman Properties’ new parking garage on a street that has yet to be redeveloped.
Edelstein’s New York-based TriStar Capital closed on the first piece on Friday, spending $18 million for the properties at 2641 and 2661 Northwest Fifth Avenue.
Tony Arellano, Devlin Marinoff and Jordan Gimelstein of Dwntwn Realty Advisors represented Edelstein, while Ari Dispenza of Central Commercial Real Estate represented the seller, Kie Nam Park and Soon Joo Park.
The second portion, between 27th and 28th streets, is slated to close in October for about $14 million.
The assemblage adds to the land that TriStar has on Northeast 24th and 25th streets between Second Avenue and North Miami Avenue. Edelstein estimated that he owns up to 250,000 square feet of land in the neighborhood. Earlier this year, LeBron James’ Unknwn, a men’s fashion retailer, secured a lease at one of Edelstein’s buildings.
Edelstein, who also owns the W South Beach, is a landlord to major tech companies like Amazon and Facebook in Seattle, and Apple in Sunnyvale, California, and thinks Wynwood fits the mold for those kinds of tenants.
Edelstein plans to renovate the warehouses and eventually develop the site into two buildings with up to 300,000 square feet of space each — possibly office, hospitality or retail.
On the west side of Fifth Avenue, Sterling Bay Projects is planning a 10-story, mixed-use office building called 545 Wyn.
“Fifth Avenue is the most desirable street in Wynwood, Edelstein said. “It’s always had the infrastructure to be the most walkable street; it’s just a matter of when that happens.” He said his project could break ground in three to five years, depending on market conditions.
Moishe Mana and Goldman are among the developers who already own property on Fifth Avenue. Mana Wynwood backs up the street, which is near I-95.
Meanwhile, a number of mixed-use apartment and office projects are under construction in Wynwood, from Miami and New York developers like the Related Group, East End Capital, Block Capital Group and Redsky Capital.