IDENTIFYING POCKETS OF OPPORTUNITY IN UP-AND-COMING AREAS
Real estate investors are increasingly turning their attention to Little Haiti, Little River and Allapattah—communities north of downtown Miami. Neglected for decades, investors are now betting on the transformation of those communities as signs of change are rapidly appearing. For example, Little Haiti commercial lease rates averaged $2 to $3 per square foot in 1998. Today, prices range from $10 to $30 per square foot, according to a recent article in The Real Deal.
Northern Miami neighborhoods are witnessing an influx of investors and businesses unwilling or unable to pay the prices that property or space in the nearby trendy Wynwood and Design districts demand.
Investors have been eyeing Little Haiti – also known as Lemon City – for at least five years. For example, in 2014, a Miami Beach real estate investor paid $15 million for a five-property portfolio to be developed into $1 billion mixed-use project between Northeast 60th and 64th streets and Northeast Second Avenue to the railroad tracks.
In 2015, a California company shelled out $6.2 million for a former 178,810-square foot Bank of America building at 7924 Northeast Second Avenue, according to TRD.
Allapattah is also showing signs of change. This week, the Miami Herald reported the Rubell Family’s art collection is moving to Allapattah after 25 years in Wynwood. According to the article, corporations tied to the Rubell Family have also been purchasing warehouses in Allapattah. These events suggest that working-class Allapattah could be the next neighborhood in Miami to experience a familiar growth pattern: artists arrive first, followed by galleries and eventually restaurants and retail.