A Wynwood real estate investor is looking to cash out of an office, retail and parking portfolio in Miami’s hottest neighborhood.
An entity managed by Steve Rhodes is listing a three-story office and retail building at 2121 Northwest Second Avenue and a one-story retail building at 2085 Northwest Second Avenue, as well as a parking lot at 172 Northwest 21st Street that can be a development site. Rhodes’ asking price is $27.5 million, according to a brochure prepared by DWNTWN Realty Advisors, which is marketing the portfolio.
Rhodes, who has sold other properties in Wynwood and Miami’s Little River neighborhood in the last six years, did not respond to phone messages seeking comment. Devlin Marinoff with DWNTWN Realty Advisors told The Real Deal that the two buildings and the parking lot are the last assets Rhodes owns in Wynwood.
“He is exiting [the Wynwood market],” Marinoff said. “It is a phenomenal opportunity to buy cash flowing assets on Northwest Second Avenue.”
In 2013, Rhodes’ entity, 170 NE 40 Street Inc., bought the property at 2121 Northwest Second Avenue for $619,000 and completed the 27,513-square-foot building in 2016, records show.
Tenants include MVM Miami women’s boutique, Omakai Sushi, Astra rooftop restaurant and lounge, and boutique law firm Axis Law, the brochure states. Rhodes’ holding company, Rokk3r, also has an office in the building.
In 2014, the entity paid $3 million for the neighboring 6,250-square-foot building at 2085 Northwest Second Avenue and the parking lot. Tenants include House of Mac restaurant and an art gallery, Marinoff said. He said the parking lot can be developed into a building between five to eight stories under the current zoning.
The two buildings are fully leased with most of the retail tenants paying below market rents under short-term leases of three to five years, Marinoff said. A new owner could raise rents once those leases are up, he added. “Retail rents in Wynwood are averaging $70 a square foot,” Marinoff said. “Two blocks north, it is $120 a square foot.”
Rhodes is among several early Wynwood real estate investors divesting newly completed buildings in the up-and-coming commercial and residential neighborhood that for decades was a warehouse and art gallery district. Earlier this month, New York-based East End Capital and its joint venture partner Related Group sold the Wynwood Annex office building for $49 million to San Francisco-based Brick & Timber Collective.
Last year, Redsky Capital sold Cube Wynwd for $28 million to a joint venture between Tricera Capital and Alex Karakhanian’s Lndmrk Development.