Fisher Brothers Looking to Crowdfund $29M for Wynhouse Miami Development
By Chava Gourarie June 21, 2023 11:58 am
reprints
New York developer Fisher Brothers is looking to fill out its capital stack for a $179 million Wynwood development with $29 million in crowdfunding.
The development company posted an offering for Wynhouse Miami, a mixed-use development in the Miami neighborhood, on online investment platform Crowdstreet, its first time financing a project via crowdfunding. Wynhouse Miami is an eight-story mixed-use building proposed for 2200 NW First Avenue with 308 residential units, designed by Coral Gables-based Nichols Architects.
The company plans to secure $117.5 million in senior funding, and is anticipating to close on the financing very soon, a spokesperson said. Once closed, the loan will comprise 65.6 percent of the capital stack, while Fisher Brothers will contribute $32.6, 18.2 percent of the stack, but retain more than 50 percent of the equity.
“We put our money where our mouth is,” said Fisher Brothers principal Winston Fisher in an online presentation. “I believe this is going to make me a lot of money; make my family a lot of money.”
The specifics of the 340,394-square-foot project include 107 parking spaces, 10 ground-floor retail stores spanning 24,114 square feet and 8,165 square feet of rooftop amenities which include a pool and lounge. The building surrounds a central courtyard, and the property is bisected by more than 8,000 square feet of public paseo space, open to the public and creating more frontage for retail.
The project is Fisher Brothers’ third House-branded project, which also includes House39 in Manhattan and Station House near Union Station in Washington, D.C., all designed by New York’s Rockwell Group. The brand emphasizes art, amenities and community, Fisher said. “We think that when we introduce the House brand to Miami, to Wynwood … this is the market that will reward you for it, that’s hungry for it.”
The offering, which opened earlier this month, is for a three-year term with a projected 19.2 percent internal rate of return, per the offering documents. The underwriting for the project assumes an average of $3,350 in rent per unit per month, with 5 percent vacancy and 3 percent growth annual, as well as similar vacancy and rent growth for the retail portion, according to the presentation.
Fisher Brothers acquired the property in 2021 for $17.6 million, then filed building plans in July 2022, according to public records. The property abuts a Florida Power & Light substation, and plans for the site call to contribute energy to the grid with solar panels on the roof. Fisher Brothers has used a local Wynwood program to acquire development rights for 99 of the units from the City of Miami, and will pay into the Wynwood Parking Trust Fund to reduce required parking by 185 spaces.
Construction is set to be fast-tracked for a January 2025 completion date, per a Fisher Brothers spokesperson.
Chava Gourarie can be reached at cgourarie@commercialobserver.com.
