Hedge funder bets on Allapattah with Opportunity Zone site purchase

Spencer Waxman bought the property for $112 psf

Miami /
Jul.July 29, 2019 03:48 PM
Spencer Waxman and Bank of America Center in Allapattah (Credit: Getty Images, Google Maps)

Spencer Waxman and Bank of America Center in Allapattah (Credit: Getty Images, Google Maps)

New York hedge funder Spencer Waxman paid $7.7 million for the Bank of America Center in Miami’s Allapattah neighborhood.

Records show a company managed by Waxman and his wife bought the 68,174-square-foot office building at 1313 Northwest 36th Street for $112 per square foot. An affiliate of Miami-based Golden Sands, led by Peter Fedele and Mary Maguire, sold the property.

The project sits in an Opportunity Zone, which means the new owner can qualify for significant tax benefits if they substantially redevelop the property. The federal program allows investors and developers the ability to defer or potentially forgo paying capital gains taxes if they invest in a distressed area throughout the country for at least five years. There are more than 8,700 designated zones throughout the U.S.

The 1.7-acre Bank of America Center site is zoned T6-8 O, which means it can be developed into at least an eight-story building with 150 units per acre. It is also zoned T5-L, which allows for a higher density mixed-use building.

Waxman founded Shannon River Capital Management, a technology focused hedge fund that has a significant stake in the New York Times, according to a Bloomberg article this year.

The Allapattah property is 89 percent leased to a mixture of retail and office tenants, including Bank of America and the Miami-Dade State Attorney, according to a release from Cushman & Wakefield.

Scott Sime of Sime Realty Corporation represented the buyer. Cushman & Wakefield’s Miguel Alcivar, Dominic Montazemi, Scott O’Donnell, Tony Jones and Frank Begrowicz represented the seller.

Waxman previously acquired the Centennial Express Building, a 33,339-square-foot commercial building at 1251 Northwest 36th Street in Allapattah in March 2018.

Allapattah is seeing a rush of new interest from developers due to its close proximity to Miami’s urban core and Miami International Airport.

The city of Miami announced last week it is looking to develop an 18.75-acre site it owns in Allapattah north of Jackson Memorial Hospital in the Miami Health District. The city tapped CBRE to issue a request for information from developers and investors for the property between Northwest 19th and 20th streets, and Northwest 12th and 14th avenues in Miami.


Related Articles

arrow_forward_ios
The development site with Peter Gardner and Abbhi Capital's Sankesh Abbhi (Google Maps, Longpoint, Abbhi Capital)
Abbhi Capital, Peter Gardner pay $19M for Coconut Grove apartments dev site
Abbhi Capital, Peter Gardner pay $19M for Coconut Grove apartments dev site
A photo illustration of Moishe Mana and the properties at 2820, 2840, 2850 and 2898 Northwest Seventh Avenue (Getty Images, Mana, Google Maps, LoopNet)
Moishe Mana pays $16M for commercial assemblage in Allapattah
Moishe Mana pays $16M for commercial assemblage in Allapattah
Electra America managing partner Joe Lubeck and Southland Mall at 20505 South Dixie Highway in Cutler Bay (Google Maps, Electra America)
JV pays $100M for Southland Mall, eyes mixed-use redevelopment
JV pays $100M for Southland Mall, eyes mixed-use redevelopment
(L-R) The AllaWay magazine cover and photos of AllaWay Creative Director Maria Galli, Editorial Director Jenny Starr Perez and Publisher Lissette Calderon (Neology Life Development Group)
Developer, glorify thy neighborhood: Lissette Calderon launches Allapattah-centric magazine
Developer, glorify thy neighborhood: Lissette Calderon launches Allapattah-centric magazine
Carlos Rosso and Jackie Soffer with Rendering of One Park Tower by Turnberry at SoLé Mia (Turnberry, iStock)
Turnberry, Carlos Rosso to develop condo tower at massive SoLé Mia in North Miami
Turnberry, Carlos Rosso to develop condo tower at massive SoLé Mia in North Miami
Mera and Don Rubell in front of 1090 Northwest 23rd Street in Allapattah (SVN Commercial Realty, Rubell Museum, iStock)
Rubells expand their Allapattah art space with $11M industrial building purchase
Rubells expand their Allapattah art space with $11M industrial building purchase
Douglas Levine and 1100 West McNab Road in Fort Lauderdale (APEX Capital Realty)
Wynwood investor Doug Levine enters Fort Lauderdale with $15M office purchase
Wynwood investor Doug Levine enters Fort Lauderdale with $15M office purchase
From left: Trilogy Real Estate Group's CIO Jesse Karasik and CEO Neil Gehani in front of the property at 2201 Northeast Second Avenue (LinkedIn/Neil Gehani, LinkedIn/Jesse Karasik, Apex Capital Realty)
Chicago firm pays $31M for Opportunity Zone dev site for apartments in Edgewater
Chicago firm pays $31M for Opportunity Zone dev site for apartments in Edgewater
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...