Chicago firm pays $31M for Opportunity Zone dev site for apartments in Edgewater

Site allows for up to 36 stories, up to 247 residential units

Miami /
Mar.March 22, 2022 10:30 AM

From left: Trilogy Real Estate Group’s CIO Jesse Karasik and CEO Neil Gehani in front of the property at 2201 Northeast Second Avenue (LinkedIn/Neil Gehani, LinkedIn/Jesse Karasik, Apex Capital Realty)

Trilogy Real Estate Group is continuing its bet on Miami’s Edgewater, paying $30.6 million for an Opportunity Zone site with plans for a multifamily project.

Chicago-based Trilogy bought the 1.6-acre Edge 22 vacant property at 2201 Northeast Second Avenue, which allows for an up to 36-story tower with a maximum of 247 units, according to the seller’s broker, Rani Hussami of Apex Capital Realty.

Alexandros Tsoulfas and Jamie Maniscalco, also of Apex Capital, represented the buyer.

Records show the seller is Northeast Twenty-Third Street LLC, managed by J & R Managers LLC. Hussami declined to disclose the true identity of the seller.

Jesse Karasik, chief investment officer at Trilogy, said the company is exploring potential options for additional density beyond what’s allowed, but details are yet to be hammered out. This was an all-cash purchase.

Trilogy, led by Neil Gehani, bought the miniature soccer fields at 169 Northeast 27th Street and 2728 Northeast Second Avenue, as well as the adjacent vacant lot at 166 Northeast 28th Street, in Edgewater, for $12.5 million in December. The plan is for a 20-story apartment building, although details still are unknown and the firm has yet to file an application with the city.

Later in December, Trilogy paid $9.8 million for the three adjacent lots at 2634 Northeast Second Avenue, as well as at 192 and 186 Northeast 27th Street. The parcels consist of land, a small apartment building and a small retail property. Trilogy plans to convert the real estate into retail or offices, or a mix of the two.

Edgewater is “a very high-growth area, and very interesting long term and we are long-term holders, Karasik said. “We build and own for probably 20 to 30 years or more.”

All three sets of properties are in an Opportunity Zone — areas deemed as lagging economically and in need of an investment jolt. The federal OZ legislation allows investors to defer capital gain taxes in exchange for putting their capital gains toward an OZ project.

The development boom in Edgewater has transformed the neighborhood into an enclave of apartments and condos. And much more development is on the way.

Most recently, Brooklyn-based Beitel Group teamed up with Denver-based apartment real estate investment trust Aimco to develop a mixed-use project in Edgewater. Beitel paid $45 million for the 2.8-acre property at 3333 Biscayne Boulevard, two months after Denver-based Aimco’s $1.7 million purchase of 440 Northeast 34th Street. The two firms plan to build a 1.5 million-square-foot development with more than 600 apartments, retail and office space.

Another partnership plans an Edgewater condo tower that would be a doppelganger to the Zaha Hadid-designed One Thousand Museum in downtown Miami. The partnership is led by Kevin Venger and Louis Birdman, both of whom were part of the One Thousand development team, as well as by Michael Konig and Alex Posth. They completed the Edgewater site assemblage in January, paying about $22 million for all the units in the aging Harbor 29 condo at 710 Northeast 29th Street and for a next-door apartment building.





    Related Articles

    arrow_forward_ios
    A photo illustration portraying the skyrocketing rent growth for Miami's industrial market (iStock)
    Rising rents: Miami’s industrial market leads nation with highest annual rate hike: report
    Rising rents: Miami’s industrial market leads nation with highest annual rate hike: report
    From left: The Estate Companies' managing principal Robert Suris and principal Jeffrey Ardizon along with a rendering of Soleste Pompano Beach and a sitemap for Soleste Hollywood Boulevard (The Estate Companies)
    Estate Companies’ Pompano Beach, Hollywood apartment projects advance
    Estate Companies’ Pompano Beach, Hollywood apartment projects advance
    Real estate investor Michael Klinger and 56 Bal Bay Dr, Bal Harbour (Zillow, Jon Mann/Jills Zeder Group)
    Investor buys waterfront Bal Harbour mansion for $15M, plans to renovate it and flip it for $30M
    Investor buys waterfront Bal Harbour mansion for $15M, plans to renovate it and flip it for $30M
    Link Logistics' Luke Petherbridge with 115.7-acre site at 21001 Northwest 27th Avenue (LinkedIn, Google Maps)
    Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
    Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
    EverWest Real Estate Investors' Rick Stone and Tyler Williams; rendering of the newly built industrial property at 10900 Northwest 146th Street in Hialeah Gardens (Commercial Property Group, EverWest Real Estate Investors, iStock)
    EverWest buys Hialeah Gardens industrial building for $43M
    EverWest buys Hialeah Gardens industrial building for $43M
    A photo illustration of Jade Signature (Compass Real Estate, iStock)
    Jade Signature closing tops Miami-Dade’s weekly condo sales
    Jade Signature closing tops Miami-Dade’s weekly condo sales
    South Florida homes
    South Florida home sales plunge in May, as prices continue rising
    South Florida home sales plunge in May, as prices continue rising
    TPA's J Bradford Smith with conceptual site plan for Edison Pembroke (TPA,Nelson)
    Developer switches office park plan in Pembroke Pines to mixed-use apartment project
    Developer switches office park plan in Pembroke Pines to mixed-use apartment project
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...