For decades, Miami’s Flagler district was ignored by developers and investors, but today, things have changed. This particular area has attracted a number of investors that are willing to pay high prices in exchange for low-rent properties. Comprised of some of the city’s oldest buildings, this area is now getting a lot of attention.
Unlike the financial center of Brickell, the Flagler Street area of Miami is home to retail shops, beauty parlors, and other business. Serious investors recognize an incredible opportunity, which is pushing them to pay premium money for low-rent properties. This trend has hit many large cities throughout the country, including Los Angeles and New York, but now it is Miami’s turn.
A prime example is the recent sale of the Metro Beauty building. The building hosts a beauty supply store and barber shop on the lower level. However, this two-story building also has a convenient location near a train station. In addition, the Metro Beauty building is just blocks from Brickell City Centre, an upscale facility that just sold for $6.8 million.
Capitalizing on Opportunity
In addition to spending close to $200 million on properties in the Flagler area over the past several years, Moishe Mana, a New York City investor, purchased the Metro Beauty building. Because ownership in this area is fragmented, and with this being the oldest part of Miami, development has lagged.
As explained by Mana, he invested in the Meatpacking District at a time when it consisted of warehouses. Along with this, Mana has holdings in other areas of Miami, as well as Jersey City, and wants to improve on properties short term, but then come up with full redevelopment plans as his long-term goal.
Once the city of Miami implements a revitalization project for this area, he will commence in his plans. Mana went on to outline a few of his intentions, including wider sidewalks that make Flagler Street more pedestrian-friendly, as well as additional space dedicated to the development of outdoor cafes.
Along with the Flagler Street area, the Worldcenter project in Miami is getting a significant amount of attention. Investor interest in this area includes 600,000 square feet of space for conventions, an 1,800-guestroom hotel, and one million square feet of space for retail shops. To ensure people have a convenient way of reaching these areas of the city, the passenger train line, All Aboard Florida, plans to build a nearby station.
Alex D. Zylberglait, senior vice president with Marcus & Millichap, stated that historically, the downtown area of Miami has been neglected. As such, it has become home to low-end retailers. However, all around the Flagler Street area is activity, making this place a logistical dream for redevelopment.
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