Proposal for Biscayne Plaza- University of Miami, Urban Infill class project. Master of Real Estate Development and Urbanism
Last week Global Fund Investments and MMG Equity Partners announced they had acquired Biscayne Plaza ($12-14 million unconfirmed), a 347,000 square-foot grocery-anchored center located at one Miami’s most prominent intersections. Biscayne Plaza is located on the northwest corner of Biscayne Boulevard and NE 79th Street. The property sits just east of the FEC rail line as well; making it an ideal site for a transit oriented development should commuter rail return to South Florida along the FEC.
According to the Global Fund Investments press release:
79th street is a major east west connector road (26,000 vehicles per day) that runs from Hialeah to North Miami Beach. Biscayne Blvd (50,000 vehicles per day) is a major north south corridor connecting North Miami Dade County all the way to Downtown Miami. More than 160,000 people live within 3 miles of the site.
The Shopping Center was acquired in an off market transaction. The shopping center will undergo substantial renovation. Global assumed the management, leasing and redevelopment responsibilities of Biscayne Plaza.
Global’s Managing Partner, Doron Valero, stated, “Biscayne Plaza represents a very rare opportunity in which we were able to acquire a premier shopping center situated on 18 acres of land in the heart of Miami Dade County. This acquisition once again validates our group’s ability to transact quickly and efficiently.”
MMG Principal, Gabriel Navarro, added, “The acquisition of Biscayne Plaza is another example of our group’s entrepreneurial vision and desire to acquire strategically located value add assets. We are excited about the acquisition as the location is irreplaceable and we believe in the revitalization of the Biscayne Corridor.”
This property is of considerable interest to me for a couple of reasons. Last year, while I was in graduate school and enrolled in an Urban Infill course, my group was tasked with redeveloping Biscayne Plaza. I also live just a few blocks away from this eyesore of an underperforming strip mall. Needless to say, I have have a few ideas for the redevelopment of Biscayne Plaza. The subject property has tremendous potential, especially if South Florida can get its act together with respect to transit.
Thankfully the private sector is taking the lead with rail travel in South Florida. All Aboard Florida (AAF) will begin running passenger rail service as early as 2015 from Miami to Orlando with stops in Ft. Lauderdale and West Palm Beach. From my understanding, a one-way ticket from Miami to Orlando will set you back $100 or so; at this price point AAF is targeting tourists and business executives that would otherwise fly or drive between the two cities. AAF believes it can take away market share from the airlines and rental car companies by providing a superior travel experience; I agree with them 100% percent.
According to Miami Today News:
The privately-owned intercity rail system’s amenities and services is to include WiFi internet service, gourmet meals, beverage service, comfortable seating, luggage accommodations, reserved business and coach service seating, and online reservations.
“We want to create an experience for our guests that allows them to opt out of their cars,” All Aboard Florida’s recently-appointed President and COO Donald C. Robinson said. “Think of this as a hotel room on wheels.”
AAF will likely become the catalyst for the return of commuter rail along the FEC. The South Florida Regional Transportation Authority (SFRTA) has plans to bring commuter rail to the tri-county area utilizing the very same FEC tracks that AAF will be operating on. Unlike AAF, the proposed passenger rail service along the FEC line would be publicly operated.
Biscayne Plaza sits directly adjacent to SFRTA’s proposed train station on 79th Street, so the new owners could be sitting pretty should commuter rail return to FEC rail line. The opportunity to create a mixed-use, dense and pedestrian-friendly transit oriented development (TOD) cannot be emphasized enough.
I’ve decide to share my group’s Biscayne Plaza class project PowerPoint presentation in hopes that some inspiration could be drawn by the new owners to build a TOD on this exceptionally well located piece of real estate.
For those in the real estate industry that recognize the potential for development along the FEC, the Urban Land Institute will hold a panel discussion on Wednesday April 17th: Development Opportunities on the FEC Corridor: An Interactive forum. Click here to sign up for this event.
Now, if we could only get the FDOT on board (no pun intended) to redesign 79th Street so that it becomes more pedestrian and business friendly, we would all be in much better shape when passenger rail service finally arrives. 79th Street is disgracefully known as being the worst street in all of Miami. FDOT is slated to resurface this street in 2014 and they aren’t really doing very much to make this street better for anyone. You can read all about FDOT’s reprehensible 79th Street resurfacing project over at Transit Miami.