Related and ROVR Score Ground Lease to Redevelop Downtown Miami Parking Lot
By Julia Echikson January 26, 2023 9:01 pm
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The Miami Parking Authority (MPA) board approved the Related Group’s proposal to develop a mixed-use complex on a city-owned parking lot in Downtown Miami.
The development — a partnership with ROVR Development — is set to feature two 48-story towers with 1,200 rental units in total, 180 of which will be priced as workforce housing, in addition to 30,000 square feet of commercial space.
The project will replace the College Station Garage, which sits on two acres at 190 NE 3rd Street, about a block west of Bayfront Park.
The deal grants the joint venture a 99-year ground lease, and the MPA will own a 1,355-cart parking lot within the development. In addition to paying the property taxes, the developers will either pay $700 per residential unit annually or 10 percent of the rent net of expenses for four years after the development’s completion, depending on which formula grosses the most revenue, according to the South Florida Business Journal.
Until the new parking garage is operational, the developers will also pay the MPA $124,544 monthly. During construction, which is expected to start in about two years, car owners will be able to use the Courthouse Center parking lot.
Representatives for both the MPA and the joint venture have yet to respond to requests for comment.
Related and ROVR were awarded the project by the city, beating Terra and Apollo Global Management, who had proposed building two towers with both a residential and office component.
Across the neighborhood at 225 North Miami Avenue, Related and ROVR, along with BH Group, have teamed up to develop a 37-story condo building with 343 units. The partnership secured a $76 million construction loan in July.
Julia Echikson can be reached at jechikson@commercialobserver.com.
