1600 Northeast Second Avenue (Loopnet, Getty)
The Sabet Group is the latest out-of-town multifamily developer to plant a flag in South Florida, acquiring a redevelopment site in Miami’s Arts & Entertainment District.
An affiliate of Sabet, a Los Angeles-based and New York-based multifamily development firm led by Andre and Edward Sabetfard, paid $14.3 million for the 0.5-acre property at 1600 Northeast Second Avenue, records show. The site currently houses a 10,700-square-foot commercial building that was completed in 1950.
The seller, Miami Cash Register, managed by President Eileen Myers Soler, paid $410,000 for the property in 1985. Miami Cash Register, an office and point-of-sale equipment repair shop, was headquartered in the building.
Ruben Ruban and Ashley Bloom with SVN Commercial Partners represented the seller. The property received seven offers since hitting the market in January and sold at the asking price, Ruban and Bloom said.
The site has city approvals for a 25-story residential project with 250 units. It is in an Opportunity Zone, which allows investors to achieve tax breaks by reinvesting capital gains into development projects in underserved neighborhoods. The site is also near a Miami-Dade Metromover station, so the developers could seek bonuses for projects close to public transit. The property could also be redeveloped into an office building or hotel under the current zoning, Ruban said.
Sabet is a family-owned commercial real estate development and management firm with more than 35 years of experience, according to the company’s website. Sabet’s portfolio is mostly multifamily, but the firm is in the “concept planning phase” of deciding what to build on the Arts & Entertainment District property, Ruban and Bloom said.
“This is their first project in Miami and second in Florida,” Bloom said. “Sabet is a family owned entity out of California and New York, so this represents another sale where owners from those states are shifting to Florida.”
Sabet owns a multifamily project in Lake Mary, Ruban said.
South Florida’s multifamily market has seen an influx of developers from other states looking to capitalize on the region’s booming rental demand and record rents.
During the first half of this year, South Florida multifamily sales hit $5 billion, the second-highest amount in a six-month period on record, according to a Cushman & Wakefield report. Many buyers of multifamily projects and development sites are first-time buyers in South Florida, Cushman found. “Out-of-state private capital investors will continue to dominate the market,” the report states.
Berwyn, Pennsylvania-based LCOR is among the new multifamily players setting up in the Arts & Entertainment District. In May, the firm paid $49 million for a 1.1-acre vacant lot at 1775 Biscayne Boulevard where LCOR plans to build a 540-unit apartment tower.
Also in May, Clearline Real Estate, a New York-based developer led by former Kushner executive Jenny Bernell, bought a 0.9-acre property at 1550 Northeast Miami Place for $19.8 million. The site has city approvals for a 240-story apartment project with 427 units, but the height could be doubled as a bonus through a city public benefits program.
