Morgan Reed Group lists Rail 71 development for $33M

The building’s annual NOI is $1.8M

Nov.November 18, 2019 03:30 PM
Rail 71, Tony Arellano and Devlin Marinoff

Rail 71, Tony Arellano and Devlin Marinoff

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.

Related Articles

Jay Sakalo and Jaime Sturgis

South Florida commercial real estate closings face delays and cancellations due to coronavirus economic meltdown

Miami-Dade County Commissioner Xavier Suarez and Miami City Mayor Francis Suarez (Credit: Getty Images, iStock)

Developers, ex-mayor push for rail expansion in Wynwood, Little Haiti and Liberty City

Liliana and Howard Chase

Miami Beach broker to open Little River restaurant

From left: Jon Paul Perez, Alex Karakhanian, Tony Arellano and Devlin Marinoff over the site (Credit: Google Maps)

Related Group, Alex Karakhanian and partners drop $32M on Wynwood site

Rendering of the Moxy Hotel, Pierre Charalambides and David Grutman (Credit: Kobi Karp)

Wynwood is getting its own Moxy hotel

IMC Equity Group Yoram Izhak and Flea Market USA

IMC Equity Group buys flea market property near Liberty City

Shiff Group sells apartment complex in Little River for $23M

Shiff Group sells apartment complex in Little River for $23M

Metronomic expands to Miami’s Upper East Side

Metronomic expands to Miami’s Upper East Side