Miami’s biggest condo developers are vying for a 2-acre property in downtown Miami that could be redeveloped into a multi-tower, mixed-use project.
The Miami Parking Authority, a quasi-governmental agency that manages the city of Miami’s parking assets, owns the College Station Garage site at 190 Northeast Third Street. Related/ROVR and Terra with its partner Apollo Global Management submitted proposals to redevelop the downtown Miami garage in a public-private partnership, according to bids obtained by The Real Deal. The 1,439-space garage is next to Miami Dade College’s Wolfson campus.
The MPA’s evaluation committee scored the proposals and ranked Related Group and its partner ROVR Development as the top-ranked bidder, ahead of Terra and Apollo, TRD has learned.
The MPA’s board of directors will vote on the winning bidder at its board meeting in early February, according to Anna Parekh, of the Miami Parking Authority, allowing the MPA to negotiate and execute a redevelopment agreement.
The proposals were first reported by The Next Miami.
Here are the proposals:
Related and ROVR’s College Station Partners LLC’s proposal
Related, led by billionaire Jorge Pérez and his son Jon Paul Pérez, and ROVR, led by former Related Group executives, propose a garage with nearly 1,400 parking spaces, 1,200 residential units that would include low-income and affordable housing, retail space for an urgent care facility, city of Miami fire station, ride sharing hub, and art space. The garage pedestal would anchor the three towers on top, renderings show. Arquitectonica designed the plans.
The proposal ranked No.1 with a score of 485 points out of 500 possible points.
Twenty percent of the units would be for seniors at or below 50 percent of the area median income, and 15 percent would be set aside for workforce housing, according to the proposal.
The senior affordable housing component would be contingent on the availability of public subsidies, but Related and ROVR would still set aside 15 percent for workforce housing.
The public-private partnership could generate $33.3 million in annual rent for the residential component, according to Related and ROVR’s College Station Partners LLC’s proposal. The partnership would receive an upfront fee of $500,000, plus annual $2 million payments during construction, and annual rent equal to 10 percent of the net cash flows.
ROVR, led by Oscar Rodriguez and Ricardo Vadia, is working with Related to develop District 225, a 343-unit condo tower nearby in downtown Miami that will have a short-term rental option for buyers. It is sold out, according to Related.
Terra, Apollo’s proposal
Terra International, led by David Martin, brought on capital partner Apollo for the proposed mixed-use project. Their plans call for 856 rental apartments, some of which would be co-living units operated by Common, as well as close to 198,000 square feet of commercial space that includes office and retail, and landscaped elevated parks. Eight percent of the units would be set aside for workforce housing.
Apollo would provide a $375 million loan for the $535 million development.
Terra proposes a 99-year ground lease with the MPA that calls for an upfront $1 million payment, with a first rent payment of $1.4 million that would increase annually by 2 percent.
Terra would develop the project in phases, operating half of the existing garage for 18 months while it builds another 750 parking spaces, and then demolishing and redeveloping the other half of the garage once phase one is completed, according to the proposal.
The two 52-story towers, each with rooftop pool decks, would sit on top of the eight-story parking podium.
The proposal received a score of 458 points out of 500 possible points.
Related and Terra, both headquartered within walking distance of each other in Coconut Grove, have been incredibly active developers in South Florida. Related has launched sales of a number of condo projects that include the St. Regis Residences in Brickell and Casa Bella just north of downtown Miami, in addition to affordable housing and mixed-use developments.
Terra is building Mr. C Residences in Coconut Grove; Five Park in Miami Beach with its partner Russell Galbut; a mixed-use project in Bay Harbor Islands; and a number of other projects throughout South Florida, some of which are private-public partnerships.
A Terra-led entity developed Eighty Seven Park, an oceanfront luxury condo tower at the northern border of Miami Beach next to the site of the collapsed Champlain Towers South, and has been named as a defendant in litigation over the collapse. A trial is set for next year.
Terra, Related and ROVR did not respond to requests for comment.