David Edelstein’s Tricap, Integra Investments and Alex Karakhanian’s Lndmrk Development are listing their development site at the entrance to the Design District and Midtown Miami for nearly $47 million, The Real Deal has learned.
The partners paid $23 million for the vacant 1-acre site at 3601 North Miami Avenue from the previous lender in 2022, and they planned to build a 20-story Class A office tower with a retail and restaurant component.
Before that, the former developers planned to build a mixed-use hotel building called Triptych Miami. The previous owner lost it through foreclosure.
The assemblage is listed with Miguel Pinto’s Apex Capital Realty. Pinto said a buyer could turn the site into a “signature project” at the intersection of both Midtown Miami and the Design District neighborhoods.
The developers decided to list the property because they’re busy with other projects, they said. Karakhanian said they likely would not get to developing the site for at least another three years.
“We designed an office building. We believe in the thesis. We believe in the market,” Karakhanian said. But “we are all incredibly tied up for the next 36 months. The issue is if we’re not going to build it, owning land is not what we do.”
Karakhanian said he and his partners have spent more than $30 million, including the land and design costs, to date.
Victor Ballestas, a principal at Miami-based Integra Investments, said the developers began to receive calls about the property from potential buyers.
“We’re all fairly obsessed with the design and plan we came up with for this site,” Ballestas said. “Nobody is saying that building office is easy today, but this site is pretty unique with the [highway] visibility and all these accessible markets.”
The property is visible from the Shops at Midtown Miami across the street and the exit from I-195 onto 36th Street, on the southern border of the Miami Design District.
It’s zoned T6-12-O and is in a transit-oriented development overlay district, according to Pinto. It can be developed into a 20-story building with bonuses, 154 residential units or 308 hotel rooms, and up to about 466,000 square feet, including bonuses. Hotel, residential, office, retail and mixed-use can be built.
LV Lending took control of the assemblage in 2021 before selling it a few months later. HES Group’s Triptych 475,000-square-foot project called for a 300-room Hilton Curio Collection hotel and about 38,000 square feet of retail space, 60,000 square feet office space, and a 400-space parking garage.
Edelstein, who with Aby Rosen recently sold the W South Beach to the Reuben Brothers for more than $400 million, is working with Karakhanian and the Related Group on NoMad Residences Wynwood, a nine-story, 329-unit branded residential building that’s under construction.
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Integra’s projects include the St. Regis Residences, Miami in Brickell with partner Related Group.
Karakhanian’s Lndmrk is also co-developing One West Twelve Residences, a planned short-term rental friendly condo tower in Miami’s Overtown, with PMG and Michael Simkins’ Lion Development Group