Genting Group Sells Miami Land for Mixed-Use Development

Overview of the Sale

The Genting Group, a leading Malaysian casino conglomerate, has announced the sale of a key landholding in downtown Miami to a developer planning a Live Local Act tower. The transaction involves a 0.8-acre assemblage located at 1515 and 1525 Northeast Miami Place and nearby parcels. This strategic sale aligns with the growing demand for residential and mixed-use developments in the area.

Details of the Transaction

• Buyer: A partnership led by the SF QOZ Fund I, featuring co-managing principals David Cohen and Liam Krahe.
• Purchase Price: $20.9 million.
• Financing: The acquisition was supported by a land loan from Rok Lending, though the amount was not disclosed.

Future Development Plans

Cohen and Krahe’s team is set to embark on an exciting project that will feature:

• Mixed-use apartment tower with:
  • Luxury rentals
  • Workforce housing
  • Retail space

Construction is anticipated to commence in one year.

Zoning and Incentives

The acquired properties are zoned T6-24-A-O within the Omni District overlay, permitting up to 500 units per acre. This zoning allows for a high-density project, enhanced by the Live Local Act, which incentivizes the allocation of at least 40% of residential units for workforce housing.

Enhancing Development Viability

This location offers unique advantages:

• Transit-Oriented District: The site is strategically positioned to minimize parking costs, estimating savings between $20 million to $30 million due to reduced parking requirements.
• Prime Location: Situated near the Adrienne Arsht Center for the Performing Arts and the 1-395 Signature Bridge, making it an attractive development site.

Krahe noted, “Parking kills deals in Miami,” emphasizing the importance of favorable parking regulations in their search for viable sites.

Opportunity Zone Benefits

The Opportunity Zones program, part of the 2017 Tax Cuts and Jobs Act, offers significant incentives:

• Capital Gains Tax Deferrals: Investors can defer taxes by reinvesting profits into designated Opportunity Zones.
• Potential Market Renewals: Although key benefits are set to expire in 2026, there are expectations for the program’s renewal, making investments more attractive.

Genting Group’s Future Plans

Genting has expressed interest in divesting much of its holdings in Greater Downtown Miami:

• Acreage for Sale: The conglomerate aims to sell over half of its approximately 15.5 acres of land.
• Previous Investments: This includes the former Miami Herald headquarters, acquired in 2011 for a record $236 million.

In 2022, Genting listed the assemblage with Avison Young, previously entering into a deal with a venture led by David Martin of Terra for $1.2 billion, which was ultimately canceled in 2023.

Conclusion

The sale of Genting Group’s Miami land represents a pivotal moment in the city’s development landscape. With robust plans for a mixed-use apartment tower and the benefits of the Live Local Act and Opportunity Zone incentives, this project is poised to significantly impact the community. As downtown Miami continues to evolve, this development stands out as a beacon of the future.

For further details on Opportunity Zones and their benefits, visit the IRS Website and explore the potential these programs have for shaping urban projects across the country.