Brookfield Properties Selected for Margate City Center Redevelopment
After a previous attempt failed in 2016, Margate City has made a significant decision to revitalize its downtown by choosing Brookfield Properties as the new development partner for its City Center project.
Key Highlights of the Selection Process
- Decision Timeline: The Margate Community Redevelopment Agency, in a tightly contested vote of 3-2, selected Brookfield Properties over other notable firms including Coconut Grove’s The Related Group and New Jersey’s The Michaels Organization.
- Location and Scope: The development will take place on 51 acres of city-owned land at the intersection of Margate Boulevard and Highway 41.
Planned Developments by Brookfield
Brookfield Properties brings a comprehensive mixed-use project proposal that includes:
- Residential Units: Over 844,000 square feet of residential space, housing 911 units.
- Retail Space: A significant retail component totaling 40,000 square feet.
- Parking Infrastructure: More than 300 garage parking spaces.
- Community Facilities: A civic office space on the lakefront and a new community center.
Vice Mayor Antonio Arserio expressed his expectations for high standards in the developer agreement, stating, "If the developers agreement is not what I think is best for the city, I’m not voting for them."
Financial Implications and Structure
Brookfield Properties will enter into a 99-year ground lease with the city, featuring:
- A base payment of $100,000.
- A percentage of effective gross income that starts at 3.45% for the first phase and increases to 5.25% in subsequent phases.
Frank Frallicciardi, Senior Vice President of Brookfield Real Estate, commented on the selection: "We look forward to working with the City and engaging the community on a plan to realize the potential of the site for the benefit of Margate and its residents for a long time to come."
Historical Context
This selection comes on the heels of a tumultuous partnership experience. In 2016, the city pursued a $150 million mixed-use project with New Urban Communities, which included:
- 968 residential units
- 100,000 square feet of commercial space
- An 80-room hotel
Unfortunately, that deal fell apart, leading to six years of legal disputes, which were only resolved last year.
Competing Proposals
The selection process also included proposals from The Related Group and The Michaels Organization:
-
The Related Group:
- Proposed an 80,000 square foot civic component and 696,000 square feet of residential with 800 units.
- Offered a $100,000 annual payment to the city with scheduled increases.
- The Michaels Organization:
- Suggested 2.5 million square feet of residential space with over 2,000 apartment units and 158 townhomes.
- Did not provide detailed financial proposals.
Community Vision for Margate
The City of Margate envisions transforming its central area into a vibrant downtown hub that fosters business opportunities, cultural arts, entertainment, and enhanced living experiences for both residents and visitors.
Colliers played a pivotal role in facilitating this process, helping to attract proposals from various developers across the country. Brooke Mosier from Colliers stated, "The City of Margate is thrilled to select Brookfield as their partner in this exciting transformation."
Conclusion
The collaboration with Brookfield Properties marks a hopeful new chapter for Margate City. The successful revitalization of the City Center is expected to foster economic growth and enhance the quality of life for its residents.
[For more information on commercial real estate developments in Margate, visit the South Florida Business Journal.]