Morgan Reed Group lists Rail 71 development for $33M
The building’s annual NOI is $1.8M
Morgan Reed Group is looking to cash out on its investment in a Little River office development.
The company hired brokers Tony Arellano and Devlin Marinoff of Dwntwn Realty Advisors to list Rail 71, at 7205 Northeast Fourth Avenue, for $33 million or $258 per square foot, the brokers said. The flex creative office building is 89 percent occupied with 49 office, showroom and gallery tenants, including Dwntwn’s office, Saladino Design Studio, Fede Design, Bloom Miami and Bousa Brewing.
The 127,562-square-foot building, which backs up to the Florida East Coast Railway, was built on a 3.4-acre site west of Biscayne Boulevard. Rail 71’s annual net operating income is about $1.8 million, with average gross rents of $19.39 per square foot, according to the offering memo.
The building is part of the Little River business district, near Ironside, the Citadel and the MiMo District.
Arellano said Morgan Reed has been investing heavily in Old San Juan, Puerto Rico, and that the company planned to sell Rail 71 after completing a renovation and leasing up the building.
Nearby, a group of developers that includes Plaza Equity Partners and Tony Cho is planning the Magic City Innovation District, an 18-acre, $1 billion phased project at Northeast 62nd Street and Fourth Avenue. The development could have eight 25-story residential buildings, five 20-story office buildings, and an innovation tech center all employing roughly 7,000 people.
Landowners in Little Haiti including Magic City are pushing for a new Tri-Rail station to be built on their properties.