JV Gains Site Approval for Luxury Miami Tower
Two Chicago-based firms will build the community in the Brickell district.
A joint venture comprised of two Chicago-based real estate firms has gained administrative site plan approval for its newest luxury apartment tower, Brickell Starlite in Miami, Fla. Real estate development and construction firm Focus and property and asset management firm Group Fox have secured approval for the 39-story tower.
“Multifamily development in general in Brickell is challenging given that most projects do not provide an acceptable yield on cost to equity,” Chris Lentz, executive director, Cushman & Wakefield, which fully capitalized the development, told Multi-Housing News.
“Brickell Starlite benefits from an exceptionally low land basis and increased unit density to provide a true untrended yield on cost—6.7 percent—that is exceptional for an infill market like Brickell. The Focus development team successfully worked with Miami Dade County to apply the Rapid Transit Zoning overlay, allowing the site to achieve additional density and meet the needs of the undersupplied Brickell housing market.”
Now fully zoned and ready for groundbreaking, the 517-unit high-rise will be located in the heart of the Brickell neighborhood. The development will be situated within walking distance of the Brickell Metrorail station linking Miami’s Brightline, Tri-Rail, Metrorail and Metromover public transit systems, ensuring future residents have easy South Florida access.
A pedestrian paseo
A vehicular and pedestrian paseo connecting 7th and 8th Streets at the base of Brickell Starlite has also been proposed by the developers. The proposal was advanced in conjunction with the design team, featuring architect Gensler. The objective is to establish a hard corner to benefit retailers at the building’s base and traffic patters in the area.
“In addition to offering easy walkability to the Brickell City Center and rapid transit options, including Metrorail, the developer worked with the county to receive approval for a design that enables vehicular access to both 7th and 8th Streets, ensuring quick, less than 1/6th of a mile access to I-95 offramps, bypassing Brickell gridlock,” Lentz said.
The project is now in its final stages of permitting. Focus and Group Fox retained Lentz, as well as Chris Moyer, Jeff Altenau, Susan Tjarksen and Marc Royer of Cushman & Wakefield to fully capitalize the development.
In a prepared statement, a Cushman & Wakefield official noted that the most recent multifamily deliveries in Brickell date back to 2019 and 2021. In addition, Brickell Starlite is among a very few high-rise luxury multifamily developments now being constructed in the neighborhood.
Last year, apartments in Miami averaged some 20 renters vying for each unoccupied residence. The rental market in Miami and in its Brickell neighborhood in particular is being propelled by a strong economy, favorable tax basis and broader national migration trends.
Several weeks ago, Terra obtained a construction loan for the Upland Par mixed-use development in West Miami-Dade County. Along with residential uses, the 47-acre multi-phase development will include some 282,000 square feet of retail and 414,000 square feet of commercial space. Construction is anticipated to begin soon.