Chicago firm plans rentals at Edgewater OZ site
A Chicago-based real estate company has made its first venture into Miami in a bet on Magic City’s booming apartment market and tech industry.
Trilogy Real Estate Group plans to build a 20-story rental tower on a site it purchased in December in the Edgewater neighborhood, and it has also just purchased an adjacent 0.6-acre property with the intention to convert it into a commercial complex. The properties are in an opportunity zone.
The company paid $9.8 million for the three lots at 2634 Northeast Second Avenue and 192 and 186 Northeast 27th Street, Jesse Karasik of Trilogy said.
The seller of those properties, Y&K Enterprises, is led by Young Koo Kim and Kyong Kim, records show.
The sites are home to a two-story, seven-unit apartment building built in 1939 and a small commercial building, according to property records. One of the lots is vacant.
Alex Tsoulfas and Jamie Maniscalco of Apex Capital Realty represented the buyer.
The purchase came on the heels of Trilogy picking up the miniature football fields directly north of the site recently acquired for $12.5 million in December.
The plan is to build the apartment tower on the football fields at 169 Northeast 27th Street and 2728 Northeast Second Avenue, Karasik said. Zoning allows 20 floors and over 190 units.
As for the property that has just been purchased, Trilogy is considering either offices or retail, or a mixture of both. The plan is a bet on the growth of Miami’s tech industry, as Trilogy is in talks with a startup incubator, though no deal has been reached, Karasik said.
Trilogy, led by Neil Gehani, develops, manages and purchases apartment communities and commercial real estate across the United States, according to its website. He has an investment in South Florida, which Karasik declined to disclose, but this is his first venture in the city of Miami.
“Miami has always been a leisure and hospitality market and has been very good at it, but what’s been so exciting is seeing the additional diversification of new talent coming in,” Karasik said, referring to the growth of the technology industry.
In one of the biggest tech leases this year, Microsoft took about 50,000 square feet in the 830 Brickell office tower under construction in the Brickell Financial District.
As for the multifamily market, Miami rents jumped 38% in 2021, marking the largest increase nationally, according to a December report from Zumper.
Demand for apartments, fueled largely by newcomers from South Florida, has prompted developers to build more units.
Mast Capital paid $103 million in December for a development site in Brickell, with plans for a condominium and two apartment towers.