Developer Alex Karakhanian acquired a site in Miami’s Arts & Entertainment District for close to $15 million, The Real Deal has learned.
A partnership led by Karakhanian’s Lndmrk Development acquired the property at 1635 North Miami Avenue, Karakhanian confirmed.
Records show JRSY Limited, led by Steven Gombinksi, sold the 0.9-acre site. It’s home to Elev8tion Fitness and the boxing gym The Temple of Boxing. Gombinksi leads his family’s firm, Gombinski Properties, which has owned real estate on Miami Beach’s Lincoln Road.
Apex Capital Realty’s Miguel Pinto represented the buyer, and Samuel Heskiel represented the seller in the off-market deal. The property sold for $14.8 million.
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The site, in a federally designated Opportunity Zone, is zoned for a tower of up to 48 stories and about 500 units per acre, Pinto said. The deal has been in the works since the summer.
Karakhanian, who has been an active investor in Wynwood and the Miami Design District, said he financed the purchase with a loan from City National Bank, arranged by the bank’s Patrick Khoury. He said the loan totaled $7 million.
The 17,616-square-foot building was constructed in 1920, and expanded in 1988 and 1991, records show.
“At the moment it will remain a gym, but down the road the site is zoned for 500 units per acre, and once the timing is right we would likely proceed with a multifamily development or multifamily and office project there,” Karakhanian said.
The density, size of the lot and location appealed to him, and a Metromover site is planned nearby, he added. The city of Miami also owns a small piece of the block next to the site that could become a park.
Pinto said the deal frenzy that began with residential sales has spilled over into the commercial market. Bidding wars have become more common, and buyers are making offers after doing little to no due diligence.
The site is immediately south of Filling Station Lofts and surrounded by new apartment towers, including the Melo Group’s Square Station Apartments and Miami Plaza.
Melo also recently closed on another development site nearby at 1301 North Miami Avenue for $16.5 million.