The Related Group and its partner, Block Capital Group, are looking to sell their apartment-hotel in Wynwood, which has a whisper price of $90 million.
Domio has a master lease for the 175-unit mixed-use building at 51 Northwest 26th Street in Miami. The short-term rental operator signed a 10-year lease with two five-year extension options nearly a year ago for the building, its flagship location in Miami.
The property includes 28,700 square feet of retail space, which is about 18 to 20 percent leased, said listing brokers Roberto Pesant and Jaret Turkell of Berkadia. The two investment sales brokers are listing the building for sale with the whisper price, along with Berkadia’s Scott Wadler. Related declined to comment.
Block Capital, led by the Miculitzki family, and Related completed the building last year. It’s the first hotel to open and operate in Wynwood, though a number of projects are in the pipeline, including a Moxy by Marriott hotel at 255 Northwest 25th Street.
“There’s a huge market for this,” Pesant said.
Lenny Kravitz’s Kravitz Design designed the amenity spaces and public areas, and Arquitectonica designed the building. It includes a 233-space parking garage with bicycle storage; a rooftop terrace with a pool, amenity deck, outdoor kitchen and dining area; and a gym and health club. The units feature Italian kitchens and vanities, stainless steel appliances, washers and dryers, walk-in closets and keyless entry.
Domio Wynwood has performed “remarkably well,” Pesant said, opening last year in time for Art Basel, as well as operating during the Super Bowl in February. Throughout the pandemic, the building has been at least 50 percent leased, the brokers said. At one point, the building rented a number of units to Jackson Hospital to house employees.
The building was designed as a traditional multifamily building, and the developers decided to master-lease the property to a short-term rental operator during construction. Pesant and Turkell said it could eventually be converted back to multifamily.
Some hotel owners across the country are considering alternative uses for their properties, as occupancy and travel remain low, now seven months into the pandemic.
New York-based Domio entered the South Florida market in 2019 when it signed a $1.45 million deal to lease 45 units at the beachfront Monte Carlo in Miami Beach. It competed against companies such as Mint House, Sonder and Stay Alfred to lease the Wynwood building.