Renderings by CocoWalk
Coconut Grove has long played a major role in transforming Miami into a bustling metropolis.
It was discovered in the early 19th century by sailors interested in bubbling freshwater springs along the coast. It was one of the city’s earliest settlements established by sea traders from the Bahamas and Europe. Officially founded in 1873, Coconut Grove has gone through several evolutions over the next 100 years to become a tropical oasis for artists, intellectuals and modern day swashbucklers.
In the 1980s, the bohemian village began another transformation into a hangout for teenagers cruising the Main Highway and Grand Avenue and for students partying in local bars and nightclubs. In 1990, the open-air retail center CocoWalk opened its doors, signaling a push to make Coconut Grove more commercial by introducing national chains like The Gap and AMC Theaters.
However, competition in the early 2000s from up-and-coming neighborhoods and retail districts in Brickell, South Miami, and Coral Gables severely detracted from Coconut Grove’s commercial appeal, driving away tourists and locals alike. There was also a shortage of new housing development, which caused the interest of buyers in the neighborhood to wane.
“I’ve worked at the Grove for the past seven years,” said Karen Elmir, a broker at Cervera Real Estate. “The market for condominiums was almost non-existent. It was hard to sell anything over $ 800 per square foot. “
Sign of change
Coconut Grove’s prospects began to improve in 2012 when Terra revealed plans to convert the former location of the Grand Bay Hotel into a pair of curvy luxury towers designed by Bjarke Ingels. The company completed the 20-story building called Grove at Grand Bay and sold the 96 apartments in the project last year.
“New pre-structures are priced at $ 1,000 per square foot,” said Elmir. “Five years ago these prices were unknown.”
She found that the single-family home market in Coconut Grove has also skyrocketed, with prices for those properties increasing 20 percent over the past five years.
The influx of luxury condo buyers has given commercial developers the confidence to take risks when retail and office properties in the Grove underperform. After the joint venture between Federal Realty Investment Trust, Grass River Property, and Comras Company acquired CocoWalk for $ 87.5 million in May 2015, it announced plans to revamp the retail mix of the four-story, 198,000-square-foot mall, to do justice to the new demographics of the neighborhood.
The owners now plan to build a 78,000 square foot Class A office building on the site they hope will increase daytime pedestrian traffic and create an integrated customer base for CocoWalk’s retailers and restaurants. The existing retail space is already being renovated.
Comras has also brought new retailers to the Engle building at 2980 McFarlane Road. In 2015, a company owned by Arquitectonica founder Bernardo Fort-Brescia, his son and another relative renovated the property. Since then, Comras has brought in tenants such as Harry’s Pizzeria, Panther Coffee, the Buro Group, Bonobos, Le Pain Quotidien and Poke305. Books & Books opens an outpost on another major Grove Street on 3409 Main Highway.
The changing retail landscape has resulted in a decline in occupancy and rental rates over the past 12 months. According to a retail report by JLL for the third quarter of 2017, the occupancy rate fell by 1.1 percent to 97.5 percent compared to the same period in the previous year. Asking rents rose from $ 66.30 per square foot last year to $ 62.78 per square foot in the third quarter.
transport
The city of Miami offers free trolley service across Coconut Grove that also takes drivers to the Coconut Grove Metrorail station near US1 and Southwest 27th Avenue.
Take residential developer
“To protect the urban character of Coconut Grove, sustainable developments, walkable streets and a healthy mix of commercial and residential uses must be created that enable people to live and work in close proximity,” said David Martin, CEO from Terra.
Take commercial developers
“In the past five years, Coconut Grove has made a dramatic comeback. Exciting dining, shopping and entertainment concepts are moving into the neighborhood, ”said George Spillis, Principal of Grass River Property.
Demographics
Population: 46,567 (up 50 percent compared to 2010)
Average age: 39 years
Median income: $ 51,000
Average household wealth: $ 546,549
Most expensive apartment sale
$ 7.5 million for a 9,813-square-foot, six-bedroom, six-bathroom property on 3604 Matheson Avenue
The most expensive house on the market
$ 25 million for a 7,000-square-foot five-bedroom, four-and-a-half bathroom waterfront villa on 3080 Munroe Drive.
Least expensive home on the market
A $ 130,000, 507-square-foot, one-bedroom, one-bathroom condo located at 3071 Southwest 27th Avenue.
Price development
Average Retail Price Per Square Foot: $ 340, 24 percent higher than Miami-Dade average
Average rent increase last year: 5 percent to $ 1,787 per month
New developments
Terra’s success with Grove in Grand Bay led the company and other construction companies to announce additional high-rise and boutique projects in the neighborhood.
For example, ROVR Development is planning a boutique waterfront condominium on the site of the former Bay Colony Condominiums. Max Strang’s five-story project is called Fairchild Coconut Grove and includes 26 residences.
“After the downturn, Grove was very well received in Grand Bay,” said Oscar Rodriguez, director of ROVR. “At that point, we saw interest from a wide variety of buyers in Coconut Grove, including overseas and other parts of the US.”
In February, developers Urban Atlantic Group and Oak Ventures announced plans to build the 52-unit Arbor boutique condominium project behind CocoWalk. Units will be between 1,400 and 2,000 square feet and start at $ 799,000.
Terra is now working on several new projects that it is developing in collaboration with other well-known real estate companies. Terra and The Related Group have teamed up to create Park Grove, a three-tower, 297-apartment project between $ 1.95 million and $ 14 million. The companies also plan to build a new office building at 2859 Tigertail Avenue and 2765 South Bayshore Drive.
In addition, Terra is working with Mayfair Real Estate Advisors to convert a former public parking garage into a mixed-use office building. Terra paid $ 16 million last January for the 402-space garage at 2860 Oak Avenue. The plan is to create 75,000 square meters of Class A office space, retail on the ground floor and public parking.
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