Developer David Edelstein’s TriStar Capital and partner RAL Development paid $13 million to complete an assemblage in Miami’s Wynwood where the two firms are planning a $200 million Class A office project, The Real Deal has learned.
Edelstein said the partnership plans to break ground in about six months on a two-tower, mixed-use development with 300,000 square feet of office space.
Property records show JCR Investments of Boca Raton sold the 0.7-acre property at 2701 Northwest Fifth Avenue. It includes a 20,239-square-foot warehouse built in 1963. Ari Dispenza, principal of Central Commercial Real Estate, brokered the deal.
In the works for nearly three years, the corner site is part of a larger 2-acre assemblage on Fifth Avenue. The first piece closed for $18 million in 2018. The land is between 26th and 28th streets on the east side of Fifth Avenue, which has largely been undeveloped since Wynwood’s rezoning in 2015.
Edelstein said New York-based TriStar and New York-based RAL will finance the project with a construction loan and will build both towers at the same time. He pointed to increasing demand for new office space in the neighborhood. Rents in Wynwood are between $40 per square foot and $50 per square foot, triple net, he said.
“There’s a lot of leasing activity in Wynwood that’s happening as we speak,” he said.
Tenants of TriStar’s office portfolio around the country include Amazon, Facebook and Apple.
In a release, Edelstein said that he and his partners’ goal is to build the “most technologically advanced office campus in Miami for the leading companies of tomorrow.”
Edelstein owns other properties in Wynwood, the Design District and Miami Beach, including the W South Beach hotel.