When Stephan Gietl, principal of Mckafka Development based in Miami, and his business partner, Fernando Levy Hara, purchased more than a half-acre close to Biscayne Bay back in 2012, they thought it was a good deal in Edgewater. At that time, the residential building had modest rates planned for $350 to $450 each month. The property is located by Intracoastal Waterway from Miami Beach.
As of Spring of that same year, the most successful luxury condominium developer in Miami, had announced that Related Group had plans to develop 2.15 acres of Edgewater’s bayfront property into luxury condominiums. The 40-story, 300-unit Icon Bay was located by Mckafka Development property site.
Related Group’s Jorge Pérez’s move back then had made Edgewater a Miami hot spot for commercial real estate developers overnight. Edgewater is a 1½-mile-long and four-block-wide piece of land that is situated right between the Venetian Causeway and Biscayne Boulevard. The area also borders Wynwood and the Design District.
“When we saw Related in there, we realized that the neighborhood is better than we thought,” Gietl said to Related. “All but 16 of the Crimson’s 90 units — from 850 to 1,250 square feet — have sold, for upwards of $650 per square foot. Meanwhile, at 460 NE 28th St., Icon Bay, with a completion set for sometime next year, is sold out — with prices as high as $800 per square foot.”
Gietl’s Crimson, located at 601 NE 27th St., is expected to be completed next year. When completed, more than 3,300 condo units will be offered. Much like the rest of South Florida, Edgewater is also attracting international clients. An anvil-shaped office building is also in proposal stages. An open-to-the-public museum with only two permanent displays of art by James Turrell and Richard Serra will be featured.
And that’s certainly not all. As new construction surges, more development is popping up in the area. A retail building on Biscayne Boulevard has recently hit the South Florida market for $6.75 million. Marcus & Millichap is listing the 2400 Biscayne Boulevard property which is an 11,516-foot building at the corner of Biscayne Boulevard and 24th Street sits on a 12,650-square-foot lot, built in 1965, according to Miami-Dade property records.
Edgewater sales have been an outstanding success. “What took 10 years at South of Fifth is taking five years at Edgewater,” stated broker Alicia Cervera, managing partner of Cervera Real Estate to Related Group. The new commercial, retail development and residential properties being developed is in strong demand.