Colliers’ Urban Core Division represented the seller, Mishorim Real Estate Investments, in the transaction
MIAMI, FL | November 2, 2021 – As downtown Miami continues to emerge as the next saught after neighborhood in Miami-Dade County, Colliers’ Urban Core Division closed this week on the sale of a 247,000-square-foot garage located at 255 Northeast First Street. Executive Managing Director Mika Mattingly, Director Bradley Arendt and Senior Associate Cecilia Estevez of Colliers South Florida’s Urban Core Division represented the seller, Mishorim Real Estate Investments Ltd., in the $25 million sale that closed on Nov. 1. The buyer is Bayfront Partners US Limited Partnership, a Canadian-based investment group that acquired Bayfront Parking Garage as a pure income play with the possibility of future development.
“Downtown is finally awakening after a hundred-year slumber,” said Mattingly. “Out-of-state buyers have swarmed into downtown recently, drawn by its sky-is-the-limit height generous zoning, and its ‘hole in the doughnut’ location. They’re gobbling up the scarce inventory in downtown.”
Located at the geographic center of downtown Miami, the existing infrastructure currently operates as one of the largest public covered parking garages in downtown with over 247,000 square feet and 37,500 square feet of developable land. The property is situated across YotelPad and a block away from the proposed Waldorf Astoria.
The seller, Mishorim Real Estate Investments Ltd., a publicly traded company on the Tel Aviv Stock Exchange controlled by Alex Shnaider, purchased the parking garage back in 2018 for $18.25 million. This was their first investment of its kind in downtown Miami, after purchasing the retail at Centro together with Shai Ben-Ami from the Urban Core Group in 2016. Both acquisitions have proven to work extremely well for them. With the help from their local partner Shai Ben-Ami, Mishorim was able to transform the once dilapidated building into one of the most efficient garages in downtown with daily occupancy rates of over 97%. After implementing a number of improvements and management changes, Mishorim was able to nearly double the building’s income within just a year of the acquisition.
“The demand for parking is stronger than ever as the development pipeline continues to grow and more residents migrate to Downtown. The migration to Downtown Miami also brings a new wave of retail concepts, mainly Bars & Restaurants, which boost parking revenues on nights & weekends - typically during off-peak hours,” said Ben-Ami.
Investor interest in South Florida is peaking, particularly among international buyers. Approximately 23% of land investments in downtown Miami were sourced to international investors in 2021, compared to 7.8% in Miami-Dade County. Furthermore, as the few opportunities left for development are sold, land sale volumes heightened in 2021. Year-to-date, approximately $200 million has been invested in land sites in downtown Miami, compared to $159 million in 2020 and $63 million in 2019.