UPDATED, June 8, 3:05 p.m.: Daniel Sundheim’s D1 Capital Partners is the latest investment firm to plant a flag in Miami.
The New York City-based hedge fund signed a 10-year, 25,000-square-foot office lease at Related Group’s new building in Coconut Grove, where the developer is now based. The building, at 2850 Tigertail Avenue, is now fully leased, according to a release.
D1 lost $4 billion, or 20 percent, in the GameStop short squeeze saga earlier this year, but recovered about 90 percent of those losses by April, Bloomberg reported. Sundheim founded D1 in 2018. The hedge fund invests in companies in real estate, tech, financial services and more.
In addition to D1 and Related, other tenants at the Coconut Grove building include the John S. and James L. Knight Foundation and the law firm Ratzan Weissman & Boldt.
Nick Pérez, a vice president at Related, led the development of the office building. It was designed by Arquitectonica.
Cushman & Wakefield brokers Ryan Holtzman and Andrew Trench represented Related in D1’s lease. Oren Alexander of Douglas Elliman, who represented D1, said he and his tenant representation team are working on two additional office leases in the Miami area. New York firms are looking for offices with private outdoor spaces, he said.
A number of out-of-state companies – and their executives – have expanded to South Florida over the past year, with some moving their headquarters. Even prior to the pandemic, Barry Sternlicht and his Starwood Capital Group, and Carl Icahn and his Icahn Enterprises relocated to Miami Beach and Sunny Isles Beach, respectively.
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Related recently completed the Coconut Grove office building, which is near the Park Grove condo project it developed along with Terra. Related, led by CEO Jorge Pérez, bought the office building development site in 2014 for $5.8 million in a joint venture with Terra. Terra later exited the project.
Related listed its former headquarters building in downtown Miami for sale unpriced in late 2019.