January 3, 2020 – 3650 REIT (“3650”), a balance-sheet lender which originates, services and asset-manages long- and short-term fixed-rate commercial real estate loans through maturity, along with Berkadia Commercial Mortgage LLC (“Berkadia”), a leading mortgage banking, investment sales and servicing firm, announce the origination of a $76 million bridge loan for the construction of Gateway at Wynwood, a Class A office and retail complex to be located at 2916 N. Miami Ave in Miami, Florida. The property is being developed by New York-based Rose & Berg Realty Group LP (“R&B Realty”), a family-owned real estate management, leasing and construction company.
Berkadia brokered, and 3650 REIT originated, the loan, which closed on December 26, 2019.
Designed by architect Kobi Karp, Gateway at Wynwood will be located at the convergence of the rapidly developing Wynwood and Midtown office submarkets in Miami, just minutes from Miami’s Central Business District (CBD), Midtown, the Arts and Entertainment District, Miami Beach, and a variety of mass transit options including the Miami Metrorail and new Virgin Trains commuter rail line connecting Miami to Fort Lauderdale and Palm Beach. It will feature approximately 220,000 square feet of Class A office space encompassing roughly 27,700 square feet of space on each of its floors. It will have a center core, making it ideal for either single- or multi-tenant use, as well as on-site parking. The project also features 25,900 square feet of retail space and is centrally located in the Midtown submarket’s high-traffic retail corridor, with immediate access to thousands of new residential units.
“The Gateway at Wynwood transaction represented the opportunity for us to finance a transformative project at the crossroads of two quickly developing submarkets,” said 3650 Co-Founder and Managing Partner Jonathan Roth. “Sponsor R&B Realty’s commercial office expertise and understanding of Miami’s unique market dynamics will help ensure the property’s success in this rapidly evolving environment.”
“R&B Realty is a long-term client with extraordinary vision and a track record for success. 3650’s local market expertise and single-source loans made it the ideal lender for this exciting project,” said Charles Foschini, Berkadia Senior Managing Director and Florida Co-Leader. “This is a transformational development in a section of Miami that, beginning with Wynwood Walls, has become world-renowned and showcases the best of Miami’s live-work-play environment.”
R&B Group assembled the development site for Gateway at Wynwood through a series of acquisitions in 2016 and later demolished the neglected industrial buildings that sat on the 1.1-acre parcel. The site is ready for the foundation work and vertical construction to commence. Gateway at Wynwood will open in the second half of 2021.
“This loan underlines the lender’s and investors’ desire to play an active role in the rapid evolution of Wynwood as a new office submarket,” said Shelby Rosenberg, a principal with Rose & Berg Realty Group LP, also known as R&B Realty. “We are bullish on the Miami market, which we started targeting a few years ago to diversify our family’s growing real estate portfolio in New York, New Jersey and other key CRE markets. Our strength has always been going into up-and-coming areas – just like Wynwood was when we entered that submarket – and making a mark for generations to come.”
R&B Group owns, manages and has under construction more than 1 million square feet of office, retail, industrial and mixed-use developments along the Eastern seaboard. The developer has found a niche repositioning well-located commercial assets and pursuing in-fill redevelopment opportunities that add value to growing neighborhoods in major US markets.