MACY'S REDEVELOPMENT SITE INVESTMENT OPPORTUNITY - JOINT VENTURE OR 100% SALE FLAGLER STREET & MIAMI AVENUE, DOWNTOWN MIAMI - LOOPNET
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Macy’s Redevelopment Site
Investment Opportunity
Joint Venture or 100% Sale
F l a g l e r S t r e e t & M i a m i Av e n u e , D o w n t o w n M i a m i
Claude Pepper
Federal Building
TAB LE O F CONTENTS EXECUTIVE SU M M ARY 3 PRO PERTY D E SCRIPTION 13 CENTRAL BUSINESS DISTRICT OVERVIEW 24 M ARKET OVERVIEW 42 ZONING AND D EVELO PM ENT 57 Developm e n t sce n a r io 64 Financial o v e r v ie w 68 Lease abs tr a c t 71 F o r M o r e I n f o r m a t i o n , C o n t a c t: p r i m a r y C o n t a c t: a dd i t i o n a l c o n t a c t: J O H N F. B ELL Mariano Perez Managing Director Senior Associate john.bell@transwestern.com mariano.perez@transwestern.com Direct: 305.808.7820 Direct: 305.808.7314 Cell: 305.798.7438 Cell: 305.542.2700 100 SE 2nd Street, Suite 3100 Miami, Florida 33131 305.961.2223 www.transwestern.com/miami No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to omissions, change of price, rental or other condition, without notice, and to any listing conditions, imposed by the Owner.
EXECUTIVE SUMMARY
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Downtown Miami CBD Redevelopment Opportunity - JV or 100% Sale
Residential/Office/Hotel /Retail Development Allowed
Potential for Unit Sales in Excess of $985 Million
The Macy’s Site represents 1.79 acres of prime development macy’s project
land situated on two parcels located at the Main and Main Price Unpriced
center of Downtown Miami, the intersection of Flagler Street
and Miami Avenue. Macy’s currently has a store on the site, 22 E. Flagler St. 332,920 SF
Size
encompassing 522,965 square feet of commercial space at 8 W. Flagler St. 189,945 SF
8 West Flagler Street (“West Building”) and 22 East Flagler Total Project 522,865 Sf
Street (“Store Building”) that are collectively referred to as the
“Property” or as the “Macy’s Site”. 22 E. Flagler St. 1.08 Acres
Site Size
8 W. Flagler St. 0.71 Acres
Macy’s flagship South Florida store is operating under a lease Total Project 1.79 Acres
expiring in March 2018 on an absolute NNN basis, while the
Percentage Leased 100.0%
West Building is subject to a separate land lease that runs
through November 2016, and is partially used by Macy’s. Macy’s In-Place NOI $2,085,725
will be vacating the property at the end of their lease and
Lease Expirations Macy’s Store 22 E. Flagler St. 3/31/18
moving to the new Miami World Center project.
West Building 8 W. Flagler St. 11/1/16
The Property is one of the most desirable redevelopment
JV Interest Partnership is 50% JV Equity with a Devel-
opportunities in all of the CBD--with frontage on Miami Avenue,
Preference oper/Invester
Flagler Street, and South First Street--and offers an array of
potential high return development opportunities ranging from
residential condominiums, apartments, office space, and retail 100% Sale will be Considered Also an Option
space.
West Site ready for immediate development, while reaping steady and predictable income from Macy’s
CLAUDE PEPPER
FEDERAL BUILDING
4
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
The allowed density can support a condominium project of up to $985 million of sale value on the
two sites, based on an average unit size of 1,000 SF applied to a sale price of $550/SF.
Investment Highlights
WORLD CLASS REDEVELOPMENT OPPORTUNITY
The Macy’s Site is one of the most desirable redevelopment parcels in the Miami CBD, and allows a mixed use project with a
massive intensity of use providing a developer with significant flexibility in creating a World Class project as their vision deems
fit. Residential, Office, Lodging, and Retail are all allowed by right. The current lease with Macy’s offers investors a stable and
predictable income stream during preparations for redevelopment.
EPICENTER OF DOWNTOWN
“MAIN AND MAIN” LOCATION
The Macy Site’s high profile location is at the southwest corner (“West Building”) Immediate Access to All
and the southeast corner (“Store Building”) of Flagler Street and Miami Avenue,
with frontage along South 1st Street as well. The buildings are directly connected Points of Downtown and
to the Miami Avenue Metromover station, providing immediate access to the
wealth of amenities in the Downtown/Brickell central business district, including
luxury condos, hotels, nightlife, and restaurants-- - a strong draw for both
Brickell via Metromover
potential residents, office tenants and retailers.
West Flagler Street Barlington Group East Flagler Street
Sublease
South Miami Avenue
Street Level Retail
Commercial Macy’s Store
Building and
and Office Building
Street Level Retail
Ground Level
Retail Skybridge
8 West 22 East
Flagler Street Flagler Street
Elevated
Street Level Retail
Metromover
Station
Southwest 1st Street Southeast 1st Street
5
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Investment Highlights (Cont’d)
Flagler Street Frontage
Flagler Street is the dominant commercial corridor of Downtown Miami, and is the office and retail main street for the market.
Amenities abound along this renowned corridor, including numerous high grossing retailers, restaurants, financial institutions and
professional offices. The location is the center of Government, with the immediate area home to county and federal courthouses
as well as the Miami-Dade County Government Center.
6
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Investment Highlights (Cont’d)
ROBUST OFFICE MARKET WITH SUPPLY
CONSTRAINED INVENTORY
Demand for office space is strong, with no new office construction and a
defined inventory with few available sites, creating the perfect recipe for
near term rent spikes and stabilized market occupancy. The location, at the
center of Downtown, footsteps from the Courthouses, and at the center of
Government, is ideal for an office component of new development on the
Macy’s Site.
Macy’s Offers Predictable Income While Development is Planned
The Macy’s Site is under two leases, the east parcel is leased to Macy’s and expires in March of 2018 and the ground lease on the west
parcel expires in November of 2016. The combined net income from the leases to the owner is $2,085,725. Macy’s will be moving to
a new site at Miami World Center upon expiration of their lease.
RENAISSANCE OF DOWNTOWN INTO “24/7” GLOBAL CITY
The proliferation of high quality residential and a blossoming amenity base continues to attract a significant expansion of residents
living in the CBD, which in turn intensifies demand for office space in this evolving 24/7 City. Seasoned business professionals,
young professionals, and international visitors have all chosen to live, work and play in Miami’s urban center because it offers the
infrastructure, connections, and lifestyle options that result in a true urban environment in a self contained community. The amenity
base includes top restaurants, name brand retailers, grocers, bars, and entertainment venues. Confidence abounds in the market,
with the Property ideally located at the epicenter of the expanding amenity base.
7
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Abundance of Amenities and Location Convenience
CLAUDE PEPPER
FEDERAL BUILDING
8
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Investment Highlights (Cont’d)
INTENSE RESIDENTIAL DEMAND
Given the intense demand from both local and foreign buyers for residential in the Downtown and Brickell markets, it is likely that
residential condos will be the dominant component of any new development on the site.
>> Accelerated absorption of the condo inventory has emanated not only locally from professionals attracted by the urban
lifestyle, but also from Northeast US residents looking to replicate a vibrant urban lifestyle in a tropical environment,
as well as a significant demand base from Latin America and Europe.
>> Accelerated absorption of the condominium inventory has emanated from local professionals attracted by the urban
lifestyle, but also from a significant demand base from Latin America and Europe, as well as Northeast US residents
looking to replicate a vibrant urban lifestyle in a tropical environment.
>> The 23,000 Downtown condominium units built since 2003 are almost fully absorbed, with 95% occupancy - up from
approximately 62% four years ago, according to the Downtown Development Authority. The market is ripe for new
residential development on such a prime site.
FOREIGN “ALL CASH” CONDO BUYERS
The foreign-Buyer market has intensified demand for residential condominiums and continues to outstrip supply. The robust
demand from Latin America, Canada and Europe largely involves high quality buyers prepared to pay all cash for their units,
and have considerably strengthened the market, resulting in a transformation of the buyer pool now dominated by cash buyers.
CLAUDE PEPPER
FEDERAL BUILDING
9
macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Proposed Joint Venture Terms
The Seller (“Partner”) is seeking to retain a 50% interest in the property and sell the remaining 50% percent equity interest to an
outside developer/investor.
The seller will also consider a 100% interest sale of the Property. The preference to remain as an ownership
partner is driven by the Sponsors’ strong long term belief in the redevelopment opportunity and desire to reap
anticipated further upside.
Sponsor/Partner Overview
Aetna Realty and United States Realty & Investment Company (U.S. Realty) are two firms with one goal, seeking growth opportunities
through real estate investments. Aetna is a private equity investment company focus primary on real estate-related assets and
investment instruments. Our firm’s opportunistic investment approach has allowed it to acquire and manage numerous, successful
national and international assets.
Over the past twenty years, Aetna Realty has successfully invested in diverse and complex properties. Headquartered in New
York City, Aetna Realty has regional offices in Chicago, Florida, Nevada, New Jersey, Pennsylvania, Phoenix, Texas, Wisconsin &
Canada. Aetna Realty has national presence and a global view.
The firm’s team provides committed investment and captive asset management capabilities with a strong history of optimizing
value. Our professional staff provide a unique combination of finance, construction, repositioning, acquisition and dispositions,
leasing, management and operations of real estate assets to exploit financial market inefficiencies, mitigating risk and enhancing
equity returns.
Aetna Realty provides comprehensive management to ensure the highest level of strategic planning for our portfolio of properties.
Our property managers work with our asset management team to reduce operations costs, provide quality services to the tenants,
achieve maximum income and appreciation of the property values. We are dedicated to having efficient, complete, and service-
oriented professionalism that satisfies all of our real property needs. This includes operations, project management, preventative
maintenance, financial reporting and accounting.
Web site: http://www.aetnarealty.com
10macy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
Downtown Miami / Brickell Map
Miami
Arsht International
Performing University of
14th Art and Design To Miami Beach
Arts Center
1st
1st
Herald
2nd
Resorts World
1st
Miami
13th
2nd
Miami
13th 13th
Macarthur A1A
1st
1st
95
12th 12th 12th Perez Art Museum
2nd
5th
11th 395
Miami
Musuem
6th
11th 11th Park
11th 11th Frost Museum of Science
1st
10th
Miami World Center
2nd
2nd
1st
1st
9th 9th 9th
95
Proposed
8th Convention
Center
5th
7th American Airlines Arena
6th
6th
Miami
1st
Miami Culinary Po
1st
rt
All Aboard Florida Institute Am
(Railroad Station) eri
Miami Dade Bayside Market Place ca
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4th College
2nd
Government Center 3rd Biscayne
1st
886
Centro (Condos)
3rd
No
2nd
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ler County
Riv
1st
Flag Bayfront Park
3rd
er
Courthouse
1st
Flagler Flagler Ca
rib
1st
e be
1st an
1st
1st
2nd
2nd
1st
Met 3 (Apts./Whole Foods)
1st
970
3rd
3rd Met Square (Movie Theater/Retail)
4h Biscayne Boulevard
4th
One Brickell
5th (Mixed Use)
Miami Circle
Park
Miami
Brickell City 5th
6th Centre
6th
1st
1st
(Mixed Use)
7th
Brickell
4th
8th Brickell
7th
Park
6th
3rd
Key
1st
9th 9th 9th 8th
r
10th 10th 10th
Mary Brickell
15
11th 11th Village (Mixed Use)
th
1st
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5t
12th 12th
18
17
Bay
18
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13th
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972
Brickell
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4t 13t
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1st
3rd 2n 14th 14th
15
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thmacy’s site
MIAMI, FLORIDA
E X EC U TI V E S U MMA R Y
CLAUDE PEPPER
FEDERAL BUILDING
THE OFFERING PROCESS
The Property is being offered for sale to principals only, subject to limiting conditions described in this Offering Memorandum
and the Confidentiality Agreement. Potential purchasers should recognize the following:
Property Tours: Interested purchasers should contact broker to arrange a Property tour.
FOR MORE INFORMATION, CONTACT:
JOHN F. B ELL 100 se 2nd street, suite 3100
Managing Director Miami, Florida 33131
john.bell@transwestern.com www.transwestern.com/miami
Direct: 305.808.7820
Cell: 305.798.7438
No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to
omissions, change of price, rental or other condition, without notice, and to any listing conditions, imposed by the owner
12PROPERTY DESCRIPTION
macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
property overview
potential for residential sales in excess of nearly $975 million
The 1.79 acre Macy’s Site encompasses two parcels ideal for redevelopment located at the epicenter of Downtown Miami.
The Macy’s Site is comprised of the 0.71 acre parcel at 8 West Flagler Street (“West Building”) and the 1.08 acre site located
at 22 East Flagler Street (“Macy’s Store Building”). South Miami Avenue runs through and separates the parcels, which also
enjoy frontage along South 1st Street.
The Macy’s Site is one of the most desirable redevelopment opportunities in all of the CBD--with frontage on Miami Avenue,
Flagler Street, and South First Street--and offers an array of potential high return development opportunities ranging
from residential condominiums, apartments, office space, and retail space. A mixed use project incorporating a myriad of
development scenarios is possible due to the market’s strong residential and tenant appeal for a variety of residential and
commercial uses.
Building Size Land Size Improvement
8 W Flagler Street 158,832 SF 0.71 Acres 8-story Commercial Building
22 E Flagler Street 312,412 SF 1.08 Acres 10-story Macy’s Store and Offices
14macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
To Brickell
Government Center
Metro Rail/Metromover
Miami Avenue Station
Metromover Station
Riverwalk Metromover
Station
on-site metromover station
A Metromover Station is incorporated into the south section of the two sites along First Street. The Metromover is elevated
above Miami Avenue, and conveniently empties onto the Property. This is a key distinction for the Property, offering any
residents or tenants of future development direct and immediate access to all parts of Downtown and Brickell via the
Metromover station.
EXISTING IMPROVEMENTS
Collectively, the “Property” comprises 522,865 square feet of space within two retail/office buildings.
Building size (sf) lease expiration lessee annual income
West Building 158,832 11/1/2016 Cheatham/Meeks $29,591
8 W Flagler Street
Store Building 312,412 3/31/2018 Macy’s $2,080,000
22 E Flagler St Site
Building Total 471,244
Basements* 47,041
Bridge/Miami Ave* 4,580
Basement/Bridge 51,621
Total SF 522,865
*Square footage includes basement under both buildings, underground “tunnel” under Miami Ave, and skybridge over Miami Ave.
15macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
macy’s store building
The Macy’s Store Building is located on the southeast corner of Flagler Street and Miami Avenue, literally the center of
Downtown Miami. Macy’s Department Store (formerly Burdines) has served as the center point of Downtown’s thriving retail
corridor. The Store Building consists of ten (10) fully sprinklered floors totaling 312,412 square feet, excluding basement
space. The building contains four (4) elevators, with marble finishes along the elevator bank walls. The first four (4) floors
contain the retail department store, and have a combination of tile, wood and carpet flooring. In addition to the elevators,
escalators provide vertical access to floors 2-4 in the department store. The 5th and 6th floors are accessible only via elevator,
and house Macy’s Southeast Regional Offices and Women of Tomorrow Mentor and Scholarship Program (5th), as well as
Financial Federal Credit Union (6th), respectively. The remaining upper floors have smaller floorplates, and are currently
not utilized.
Macy’s will be vacating their lease upon expiration in March of 2018, and move to the Miami World Center project. The
income from the Macy’s Lease is paid to the owner of the site, and is the interest being sold in this offering.
16macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
MACY’S
17macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
west building
The West Building is located on the southwest corner of Flagler Street and Miami Avenue,
and consists of approximately 158,832 square feet on eight (8) floors. This building is
connected to the Macy’s Store Building via a skybridge over Miami Avenue accessible
from the 3rd and 5th floors, as well as through a “tunnel” that runs under Miami Avenue.
The West building is currently occupied by ground floor retail tenants, with the upper
floors currently vacant, save for the 3rd and 5th floors that are partially utilized by Macy’s.
The skybridge access from the 3rd floor of the Store Building leads to the Mattress
department located in the West Building, while the 5th floor access from the skybridge
leads to portion being used by Macy’s Southeast Regional Offices. Also of note, certain
mechanical systems that service the Store Building are located in the West Building, with
Macy’s responsible for maintenance and repair (but not replacement).
The portion of the site fronting Miami Avenue and Flagler Street is subleased to Barlington
Group, that has in turn leased out the store fronts to a variety of retailers, a restaurant and
night club. The ground floor retail tenants include Avenue D Jazz and Blues Club, Cortes Restaurant, Dr. G’s Weight Loss Center,
Café Froots, The Bistro Café, Le Chat Noir Wine and Cheese, and Quarterman’s Ice Cream Parlor.
There is a first position ground lease that expires in November of 2016, with the income from
said ground lease paid to the owner of the site. This is the interest being sold in this offering.
SITE PLAN
West Flagler Street Barlington Group East Flagler Street
Sublease
South Miami Avenue
Street Level Retail
West
Commercial Macy’s Store
Building and
and Office Building
Street Level Retail
Ground Level
Retail Skybridge
8 West 22 East
Flagler Street Flagler Street
Elevated
Street Level Retail
Metromover
Station
Southwest 1st Street Southeast 1st Street
18macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
WEST BUILDING
BARLINGTON SUBLEASE RETAIL - WEST BUILDING
19macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
zoning and uses
A development singly focusing on residential condo development could support nearly $985 million in sales if developed to
maximum density. Under the new zoning code, Miami 21, the site is zoned T6-80 Urban Core. This designation offers a multitude
of development opportunities including high density multifamily/condominium, office, retail, and hospitality. Details regarding
development opportunities are further discussed in the Zoning and Development section of this offering that follows the Property
Description, with a summary of maximum density of development outlined in the following chart. Due to setback requirements
and the irregular shape of the lots, actual buildable square footage may vary from the chart below, which does not include bonus
square footage either.
22 e. flagler lot 1 8 w flagler
Building total site
lot 2
Residential/Condo/Lodging
Total SF 1,125,432 SF 748,944 SF 1,874,376 SF
Total Units (Condo) 1,080 710 1,790
Total Units (Lodging) 2,160 1,420 3,580
Commercial: Office/Retail
Total SF 1,125,432 SF 748,944 SF 1,874,376 SF
iconic redevelopment opportunity
The Property is ideally located at the center of the CBD, and is one of the most coveted redevelopment sites in the market. Site
attributes providing the asset a competitive market advantage include a location that is at the center of Downtown, connected to
the Miami Avenue Metromover station, and is walking distance to all the amenities the market has to offer.
Development opportunities on the site abound, with demand intense for both residential and commercial product, as minimal
new office space has been constructed during the past few years, nor is any in the pipeline. The office inventory is defined for
years to come, with no further construction and few sites available to develop with office.
potential development opportunities:
• Redevelop the West Building which has a land lease expiration in November 2016 and, upon completion, redevelop the
Macy’s Store Building in March of 2018.
• Residential in the form of condos, apartments and hotel is supported by dominant demand, with the lower levels of a mixed
use project well suited for office and retail components.
• More residents living in CBD, more demand for office space and residential in this evolving 24/7 City. Support for growth of
current income stream and future residential development is optimal.
• The site is truly irreplaceable, and currently underutilized.
20macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
Metrora
il
Miami-Dade
County
Courthouse
I-95 Miami Avenue Exit I-95 Miami On-Ramp
Street
Miam
i Aven
ue
Flagler
office tenant/potential residential demand generators:
• The Property offers a central location to “Everything” – a strong draw for both office tenants and potential residents, and is
within convenient walking distance of all the CBD’s luxury condos, hotels, nightlife, and restaurants.
• The 24/7 City Urban Work, Live and Play environment is favored by both prospective office tenants and future residents.
• Public transportation options are exceptional and a strong draw for office tenants and potential new residents, with the Miami
Avenue Metromover station attached to the Property, which connects with the Bayside Marketplace, American Airlines Arena,
Bayfront Park, the Adrienne Arsht Center, Mary Brickell Village, as well as numerous stops throughout the CBD and Brickell.
• Miami’s reputation as an International Global City provides strong demand for office space by multinational office users and
Latin American, European and Canadian residential condo buyers.
21macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
site daTA
Area Measures Combined Lot Size: 1.79 acres
area measures
Store Building West Building
Total
22 E Flagler 8 W Flagler
Lot Size (SF) 46,893 SF 31,206 SF 78,0899 SF
Lot Size (Acres) 1.08 Acres 0.71 Acres 1.79 Acres
Address 8 West Flagler Street and 22 East Flagler Street
Miami, FL 33131
Tax Parcel Numbers 01-0112-020-1070
Both buildings are under the same folio number
Parking No parking is available on site, however there are several parking garages and
surface lots located adjacent to the Property
MACY’S EXECUTIVE OFFICES
22macy’s site
MIAMI, FLORIDA
P R O P E R TY D ESC R I P TI O N
building daTA
Store Building West Building
22 E Flagler 8 W Flagler
year built/renovated 1947/1965 1947/1965
pER cOUNTY APPRAISER
FLOOR PLATES:
floor plate estimates floor plate estimates
Macy’s Store Building West Building
1st 48,780 1st 29,443
2nd 48,780 2nd 29,443
3rd 48,780 3rd 29,443
4th 48,780 4th 29,443
5th 48,780 5th 29,443
6th 48,780 6th 6,455
7th 11,218 7th 2,582
8th 3,384 8th 2,582
9th 2,567
10th 2,567
Total 312,412 Total 158,832
Combined 471,244
basement, skybridge & tunnel size estimates
Store Basement 17,073 A value of 40% of the estimated floor size has been selected to provide a calcula-
tion, but the actual size is unknown.
West Basement 29,968 A value of 100% of the estimated floor size has been selected to provide a calcu-
lation, but the actual size is unknown.
Skybridge - 3 Floors 3,435 Three floors estimated at 1,145 SF each.
Under Miami Avenue 1,145 A value of 100% of the estimated overhead walkway floor size has been selected
to provide a calculation, but the actual size is unknown.
Total 48,186
Note: Square footages above are estimates, and neither Owner nor Transwestern make any representations as to the accuracy of the
information.
23CENTRAL BUSINESS DISTRICT OVERVIEW
macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
MIAMI CENTRAL
Miami’s BUSINESS DISTRICT
Central Business OVERVIEW
District – An International 24/7 City
The Central Business District (CBD) is the destination for global business as well as a vibrant residential community. The CBD
is comprised of two markets: Downtown to the north and Brickell to the south. Downtown is distinguished as the Urban core
of the CBD, serving as the traditional center of Government and Law Firms, and is home to the American Airlines Arena,
Bayside, Bayfront Park, the new Museum Park complex and the Arsht Performing Arts Center. Brickell is one of the most
prestigious business addresses in the State of Florida, and has an international reputation as the Wall Street of Latin America,
serving as the first choice for firms conducting business in Latin America and Europe.
live / work / play city
The Macy’s Site is a Miami Central Business District landmark, located at the direct center of Downtown at the intersection
of Miami Avenue and Flagler Street. The CBD has experienced a renaissance during the last 10 years, and has emerged
as a renowned international city with a thriving commercial and residential base. Seasoned business professionals, young
professionals, and international visitors have all chosen to live, work and play in Miami’s urban center because it offers the
infrastructure, connections and lifestyle options, which results in a true urban environment and a self-contained community
where everything is accessible by foot.
Edgewater Omni
DOWNTOWN BRICKELL
95
Miami River
Intense Demand for Residential Units
The Macy’s Site is a prime candidate for residential condominium development by local and international developers due
to its iconic central location within the CBD, Flagler Street commercial corridor frontage, its incorporation of a Metromover
Station on the site, and its strategic location at the center of Downtown. The Property is ideal for new residential development,
and its unique location attributes will capture superior market share of the intense demand for new condo units.
The boom in residential development since 2003 has transformed the CBD into a highly appealing urban live and work
environment, attracting a vibrant demographic and socio-economic population ranging from young professionals to empty-
nesters to international business people and visitors. The expansion of the residential base and 24 hour population spurred a
dramatic increase in surrounding amenities and retail uses serving the new residents and existing office users. The Downtown
market’s amenity and residential base is within convenient walking distance of the Macy’s Site, which is a strong draw for
existing office tenants and future residents.
25macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Intense Demand for Residential Units
Accelerated absorption of the condo inventory has exceeded industry expectations, with demand emanating not only locally
from urban professionals attracted by the urban lifestyle, but also from the migration of Northeast US residents looking to
replicate a vibrant urban lifestyle in a tropical environment, as well as a significant demand base from Latin America and
Europe. Many of these foreign purchasers are all cash buyers, and have considerably strengthened the market, resulting in
a transformation of the buyer pool dominated by cash buyers.
• The 23,000 Downtown condominium units built since 2003 are almost fully absorbed, with 97% occupancy - up from
approximately 62% three years ago, according to the Downtown Development Authority.
• The market is ripe for new residential development on a prime site such as Macy’s.
Foreign “All Cash” Condo Buyers
The aforementioned foreign-Buyer market has intensified demand for residential condominiums and continues to outstrip
supply. The robust demand from Latin America largely involves high quality buyers prepared to pay all cash for their units,
and this group has fueled the funding of many new projects. A majority of the developers proposing to build new condo
towers in the CBD are influenced by these cash buyers and are implementing a deposit structure that is common in Latin
America whereby buyers agree to make multiple cash payments during the course of construction, also known as the “Latin
America Financing Model,” which allows developers in many instances to self finance through high level of cash payments
from buyers in lieu of a construction loan.
• The all cash buyer eliminates the need for developers to seek lender financing of new construction – buyers self finance
new projects, enhancing feasibility and profitability of new projects.
• The foreign buyer views Miami as a Global city and the capital of “Latin America.”
Government
Center
Miami-Dade
County
Courthouse
95
Miami River
26macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
World Class Hotels Enhance Market Perception and Tourism
The Miami CBD encompasses nearly 7,000 hotel rooms, boasting the highest concentration of luxury hotels in the region.
The Macy’s Site location is ideally suited for an upscale hotel as a component of new development, with its key location at
the center of the CBD’s amenity base and walking distance to office space for business travelers. The CBD is experiencing
a growing demand for hotel rooms, and has long been a destination of choice for business travelers, while capturing an
entirely new and deep market of leisure travelers.
• The Viceroy hotel is located across the Brickell Bridge at the entrance to Brickell, while JW Marriott Marquis Miami
and the Epic hotel offer world-class hotel accommodations in Downtown. Other upscale hotels in the market include
the Mandarin Oriental, the Conrad, and the Four Seasons.
• “In season” room rates from the top hotels range from $370 to $1200 per night.
VICEROY EPIC JW Marriott
office market: main and main
location
The CBD contains the highest concentration of
prime office space in South Florida, with the
Macy’s Site located at the center of Downtown.
Demand for office product is robust and
enhanced by the appeal of living and working
in an urban environment, highly attractive
to employees adverse to Miami’s intensified
suburban traffic congestion.
Future residents of a proposed condo on the
Macy’s Site can live and work within blocks of
their future home, or potentially work and live in
a fully integrated office and residential project
developed on the Macy’s Site. Meanwhile,
existing office tenants are conveniently located
in the immediate area of other prestigious
businesses and benefit from the location at the
epicenter of business.
27macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
downtown is the focus of government
Downtown attracts many of the largest law firms and legal vendors, as it is home to the central offices and departments of
the Miami-Dade County government. The Stephen P. Clark Government Center is the central headquarters of Miami-Dade
government, which includes the offices of the Miami-Dade Mayor. Downtown is home to many city, county, state, and federal
courthouses, jails, judge offices, and law firms. Some of the courthouses in Downtown are the Dade County Family Court, U.S.
Court of Appeals Judge, U.S. District Court Clerk, Miami-Dade County Courthouse, Federal Courthouse, U.S. Magistrate
Judge, and City of Miami courthouses.
flagler retail - downtown’s premier shopping address
Historically, Flagler Street has been Downtown’s major shopping street dating back to the 19th century. Today, it is still
Downtown’s major shopping street, with the Property, Florida’s flagship Macy’s (formerly Burdines), there since 1912, as well
as Miami’s own local department stores: La Época, on Flagler and SE 2nd Av; Alberto Cortes, on Flagler and SE 3rd Av.
Flagler Street is also home to many well-known and established jewelers, many of whom have been in Downtown since the
early 20th century (i.e.: Morays Jewelers, founded in 1900). This area is called the Miami Jewelry District and comprises four
Downtown blocks from Miami Avenue to SE 2nd Av on Flagler Street and NE 1st St.
Flagler Street Retail Corridor & Courthouses
Claude Pepper
Federal Building Government
Center
Miami-Dade Miami-Dade
County Family Court
Courthouse Services
r
ido
orr
il C
eta
tR
ee
Str
ler
g
Fla
28macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
growing student residency in downtown
Downtown is home to several colleges and universities within walking distance of the Macy’s Site, and students that attend
these universities may be an important component of a redevelopment at the Property for residential development. Miami
Dade College’s Wolfson Campus is located in the heart of Downtown, at 300 NE 2nd Avenue. The Wolfson Campus has
600 faculty, and provides education to over 27,000 students each year. Part of the Campus is the Miami Culinary Institute
located at 415 NE 2nd Avenue. The main Wolfson Campus and the Culinary Institute are both within walking distance of
the Property, or are a few stops away via the Metromover. The Miami International University of Art & Design is also located
just minutes northeast of the Property on Biscayne Blvd and 15th Street, and is easily accessible via Metromover to the
Adrienne Arsht Station. The University provides education to roughly 2,200 students, with programs in design, media and
visual arts, fashion and culinary arts.
Miami Culinary
Institute Miami International
University of Art Design
Miami-Dade College -
Wolfson Campus
29macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
biscayne/brickell trollEy
The transformation of the Miami CBD into
a fully-integrated pedestrian-oriented
24/7 urban environment is enhanced by
the trolley service that began in April of
2012 and seamlessly connects the entire
Downtown and Brickell markets, and gives
residents and visitors access to the Health
District and Stadium via connecting trolley
routes as well. The Brickell/Biscayne route,
which begins at the southern end of
Brickell and makes its way up to Margaret
Pace Park in the Arts District, primarily
runs along Brickell Avenue and Biscayne
Boulevard.
30macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
metromover
Moreover, the elevated rail Metromover is an electrically-
powered, fully automated people-mover system that stops
at 20 stations throughout Downtown and Brickell. The
service is free and the Metromover provides easy access
to all regions of the CBD via three connecting lines: the
Downtown Loop, the Omni Loop and the Brickell Loop.
A Metromover station is incorporated directly into the
Macy’s Site, providing future residents or tenants direct
access to all regions of Downtown and Brickell.
• As many sites in the CBD have been developed with
residential, the options for new office development
are scarce, and the last wave of office construction
is absorbing at a rapid pace.
• The Macy’s Site would be the most desirable business
address if new class A office product were to be
incorporated into a new development, especially
for the region’s prime law firms.
31macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
miami cbd major projects map
Miami
Arsht International
Performing University of
14th Art and Design To Miami Beach
Arts Center
1st
1st
Herald
2nd
Resorts World
1st
Miami
13th
2nd
Miami
13th 13th
Macarthur A1A
1st
1st
95
12th 12th 12th Perez Art Museum
2nd
5th
11th 395
Miami
Musuem
6th
11th 11th Park
11th 11th Frost Museum of Science
10th 1st
Miami World Center
2nd
2nd
1st
9th 9th 1st 9th
95
Proposed
8th Convention
Center
5th
7th American Airlines Arena
6th
6th
Miami
1st
Miami Culinary Po
1st
rt
All Aboard Florida Institute Am
(Railroad Station) eri
Miami Dade Bayside Market Place ca
n
4th College
2nd
Government Center 3rd
Biscayne
1st
886
Centro (Condos)
3rd
No
2nd
rth
ler County
Riv
1st
Flag Courthouse Bayfront Park
3rd
er
1s t
Flagler Flagler Ca
rib
1st
e be
1st an
1st
1st
2nd
2nd
1st
Met 3 (Apts./Whole Foods)
1st
970
3rd
3rd Met Square (Movie Theater/Retail)
4h Biscayne Boulevard
4th
One Brickell
5th (Mixed Use)
Miami Circle
Park
Miami
Brickell City 5th
6th Centre
6th
1st
1st
(Mixed Use)
7th
Brickell
4th
8th Brickell
7th
Park
6th
3rd
K
1st
9th 9th
ey
9th 8th
r
10th 10th 10th
Mary Brickell
15
11th 11th Village (Mixed Use)
th
1st
h
5t
12th 12th
18
17
Bay
18
th
13th
th
th
972
Brickell
h
4t 13t
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14th
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1st
3rd 2
15 14th 14th
th
17
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18
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2n
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Br 15
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23
20
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21
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32
24
thmacy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Bayside Marketplace
The Bayside Marketplace is one of the Downtown’s most recognizable retail landmarks. The waterfront two story retail and
marina complex includes numerous retailers and restaurants including the Bubba Gump Shrimp Co., Chili’s, Hooters, the
Hard Rock Café and a full food court. Opened in 1987, the 230,000 square foot entertainment complex wraps along the
banks of Biscayne Bay and attracts nearly 15 million visitors annually. The center stretches from Bayfront Park to the south,
to American Airlines Arena to the north, has a dedicated parking garage, and can also be accessed by boat - via the marina,
by Metromover - via the College/Bayside station, or by Metrorail - via the Government Center station.
mary brickell village
Located in the heart of Brickell, Mary Brickell Village is a lifestyle
retail center that caters to the growing daytime, nighttime and full
time population of the CBD. The Macy’s Site has access to Mary
Brickell Village directly via the Metromover system. The tenant mix
includes restaurants and cafes such as P.F. Chang’s, Starbucks, and the
Oceanaire Seafood Room and also features unique dining options
such as the Burger & Beer Joint, Rosa Mexicano, Fado Irish Pub,
Grinpa Steakhouse, Balans Restaurant along with the renowned Blue
Martini Lounge. The center is also anchored by a Publix Supermarket
and LA Fitness. Spanning over two full city blocks, the center attracts
business professionals, locals, and is a destination retail center
attracting customers from outside the region. The air rights were
recently acquired by a partnership between LNR Property, LYND
Development and BlackRock to develop an upscale rental project
known as EnV Mary Brickell Village to contain 390 units.
33macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Riverwalk
The riverwalk is a pedestrian friendly public walkway that stretches from the mouth of the Miami River to Museum Park. The
lavish walkway is to be filled with museum quality art, lush landscaping, a cascading waterfall, seating areas, and an open
café, and will connect popular attractions such as American Airlines Arena, the Perez Art Museum, the Frost Museum and
Bayside Marketplace. The plan is to extend this walkway as far south as the Rickenbacker Causeway, serving to truly connect
Miami’s Central Business District and help usher in the vision of a walkable downtown.
Centro
Centro is a residential tower which broke ground on the site located at 151 SE 1st Street in downtown. The 39 story tower
is slated for 352 “loft” condominium units on 39 floors. The available units come in seven (7) unique, open-concept floor
plans that allow owners to arrange their space to individual tastes, while minimizing walls and taking full advantage of the
floor-to-ceiling windows and views of the city. Units range in size from 500 sf to 1,131 sf. Centro will also be the first tower
to feature the only designated “Parkspot” hub located in front of the building, where users of the popular carsharing service
car2go will have reserved parking and be able to conveniently begin trips in available vehicles at the property.
Centro
Knig
Metr ht Cente
omov r
er St
aion
Hyatt Regency Hotel &
Convention Center
34macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Residential projects are not the only ones taking place. Commercial, retail and necessary ameni-
ties to service the influx of residents to Downtown are being developed, including Whole Foods.
Metropoliton 3 – Whole Foods
Currently under construction at 200 SE 2nd Street, Met 3 was originally slated to be a 74-story residential apartment tower
rising above downtown’s first Whole Foods Supermarket. The 36,000 square foot store and adjacent 12-story parking garage
opened in January, 2015. The ownership has development rights to build more than 400 units above the high end grocery
store and parking garage.
Met Square
Located at 300 SE 3rd Street, Met Square is a four-story atrium-style entertainment and lifestyle complex that will include
a movie theater, as well as a diverse roster of retailers, restaurants and entertainment venues. Met Square was originally
scheduled to contain a 438’ hotel tower, 570 hotel rooms, a 1,700 seat indoor theater and a 41,000 sf restaurant.
Met 3/Whole Foods
Met Square
35macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Brickell CityCentre (Under Construction)
The latest mixed use project to solidify the urban lifestyle of the Miami CBD is the $1.05 billion Brickell CityCentre development
from renowned Hong Kong based Swire Properties. Located in the Brickell market just blocks to the south from the Property,
CityCentre has an estimated completion date of 2016. Brickell CityCentre is one of several projects that is being developed
in response to the heightened demand for residential, hotel, office, and retail space in the Miami CBD. Upon completion,
the project will strengthen demand for office space and residential by enhancing an already rich amenity base. With the
purchase of 701 Brickell Avenue in mid-2013, the project will now extend all the way to Brickell Avenue, with an 80 story tower
reportedly slated for the portion of the site that fronts Brickell Avenue.
highlights project statistics
• 9.1 acres along South Miami Avenue between • 520,000 sf shopping center
8th Street and 6th Street
• 120,000 sf of office space
• 5.4 million square feet of office, residential, • 120,000 sf wellness center
hotel, retail and entertainment space, in
addition to a two-level underground parking • 800 condominiums in two towers
garage that spans seven acres below the • 243 hotel rooms
property
• 93 serviced apartments
• Incorporates key transportation centers with the
• 3,100 parking spaces
Miami Metromover while offering easy access
to Interstate 95. • Phase II - 742,000 sf office tower
36macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Proposed Developments
miami world center - destination district
• Miami World Center is a proposed high intensity mixed use, pedestrian-friendly project mixing retail, office, hotels
and residential buildings of different scales with open spaces to ensure an urban neighborhood feel.
• Billed as the “City within a City,” Miami Worldcenter hopes to set a new benchmark for excellence in modern urban
development. Organized around five monumental “districts” - the long axis of 1st Avenue, Worldcircle, Worldsquare,
Worldwalk &Worldplaza and 7th Street Promenade - Miami Worldcenter will create a sequence of urban spaces that
will establish it as an authentic urban experience. Encompassing nearly 30 acres in Miami’s Park West neighborhood,
the development will include retail, office, hospitality, residential and educational uses.
• Macy’s and Bloomingdales recently unveiled plans to open new stores in the Project, expecting to open a 195k square
foot Macy’s and a 120k square foot Bloomingdales in late 2016 which would anchor three levels of retail comprising
nearly 750k square feet in all in the Mall at Miami Worldcenter. Groundbreaking is scheduled for late 2014. Macy’s
will be moving from the Property for sale in this offering.
Proposed Use Legend
Retail
Office
Hospitality
Residential
Education
37macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
convention center & hotel at old miami arena site
• 500k sf convention center
• 1800 room 58 story Marriott hotel
• 1500 SF theater
• 2300 car parking garage
• 80k sf outdoor event deck
• Linked directly to the All Aboard Florida Railway via bridges
MDM Group, the developers of the Met Miami Project, have announced plans
for a new convention center and hotel will be built on the site of the demolished
Miami Arena, and would be the largest hotel in South Florida, totaling 1800
rooms. The project would include a 58 story, Marriott branded hotel rising over
a large podium that contains the 500k sf convention center, a 1,500 seat theater
and a 2,300 car garage. In addition to the resort-like amenities, including a pool
deck with expansive views of downtown and the bay, the property will also include ballrooms, meeting rooms, convention
floor space and an 80,000 square foot outdoor event deck. The property will also link via skybridges directly to the All Aboard
Florida Railway station to be built across the street, and the Overtown Metrorail station. This project is still in the planning
stages, and no timetable has been announced.
All Aboard Florida Station NW 1st Ave and NW 3rd St
The project is proposed next to mixed use tower at 56 and 70 SW 1st street. The goal of the $1.5 billion All Aboard Florida
project is to offer hourly passenger rail service between downtown Miami and Orlando, with intermediate stops in downtown
Fort Lauderdale and West Palm Beach, with a travel time of three hours and three minutes. In the future, the plan is to
extend the service west to Tampa and north to Jacksonville. In addition to the Miami-Orlando train, All Aboard Florida is
also planning a transportation hub that would provide links between the intercity train and the Miami-Dade transit services
such as Metrorail, Metromover and Metrobus.
The Miami station and its towers 1.5 million square feet of office space, almost a million square feet in 785 units of residential,
495,000 square feet in 820 hotel rooms, 450,000 square feet of retail, and a 63,000 square foot intercity passenger rail station
and concourse. It will have 3,730 parking spaces, a significant reduction from what is required under the zoning code. No
timetable has been set for this project.
38macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Genting (Omni Mall / Miami Herald Site)
To the north in the Downtown region is the Resorts World Miami project, originally involving a $3.1 billion development plan
for the Miami Herald site situated on 13.9 acres on Biscayne Bay. Original planned development included:
• 700,000 SF of convention and meeting space which includes a 200,000 SF of column free ballroom space
• 5,200 guest rooms distributed among a super-luxury hotel, a contemporary hotel, a family hotel and a convention hotel
• Two residential towers totaling 1,000 units
• The towers are deigned to sit atop an 8 story podium, where guests would walk through a double story, 250,000 SF
luxury retail center, housing more than 50 restaurants, lounges, bars, nightclubs and an entertainment area showcasing
South Florida’s music and culture.
• Rooftop 3.6 acre outdoor lagoon allowing guests to swim from Biscayne Boulevard to the edge of Biscayne Bay.
• A renovated Baywalk, which would begin at the Miami River and run three miles north to Margarat Pace Park, linking
Bayfront Park, Bayside Marketplace, American Airlines Arena, Museum Park, the Miami Art Museum, the new Miami
Science Museum, the Adrienne Arsht Center and the Omni Center.
The main centerpiece to the resort was initially a
potential casino, but has yet to receive legislative
approval. The owners, Genting Group, have
announced that should they not receive the approvals
for the gaming component, they are committed
to move forward with the project, but involving
a scaled down version which would amount to
roughly 10 percent of the original plan. Preliminary
plans call for a luxury hotel with fewer than 500
rooms, plus two condo towers. The total space
devoted to restaurants and boutiques would be no
more than 100,000 square feet. Genting continues
to pursue the gaming approval, and is planning
on moving forward with the project this year, having already torn the entrance to the former Miami Herald building and
two story parking garage next door. A recently announced deal that would have Genting operating 2,000 slot machines
and a poker room at the site under Gulfstream Park’s gaming license is under review as of the time of this publication.
one brickell
On the site of the recently sold 444 Brickell Avenue Project, the Related Group has announced its preliminary plans. The
project is expected to include three skyscrapers rising 80, 70, and 55 stories, respectively, and will encompass more than 4
million square feet, including 2 million sellable square feet. The long term plans for the site call for a $1 billion project that
will contain more than 1,200 residential units, more than 200 rooms in a five-star hotel with meeting and convention space,
200,000 square feet of office space, and street-level.
Culture - Downtown Arts and Entertainment / Museum Park
With Biscayne Bay as its backdrop, Museum Park represents Downtown Miami’s urban redesign vision. Overall, the cultural
renaissance occurring in Downtown Miami also includes: the world-class cultural facilities at the Adrienne Arsht Center for
the Performing Arts, the largest of its kind in Florida; the historic Olympia Theatre at the Gusman Center; the American
Airlines Arena houses a Waterfront Theatre that can be configured for concerts and events, and is also home to the Miami
Heat basketball team; the Perez Art Museum; and the Frost Museum of Science.
39macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Perez Art Museum
Pérez Art Museum Miami (PAMM), a 29-year-old South Florida institution formerly known as Miami Art Museum (MAM), opened
it’s a new, state-of-the-art campus in downtown Miami’s Museum Park in December 2013. Designed by world-renowned
architects Herzog & de Meuron, the new facility is a model for sustainable museum design and progressive programming.
Located alongside beautiful Biscayne Bay and adjacent to the 20-acre Museum Park, PAMM features 200,000 square feet of
sprawling galleries, shaded outdoor verandas, a waterfront restaurant and bar, a museum shop, an education center with a
library, media lab and classroom spaces, and more.
Frost Science Museum (Under Construction)
The Patricia and Phillip Frost Museum of Science is on track for a 2015 opening. The 250k sf complex will reportedly harness
energy from water, sun, wind and even museum visitors to power exhibits. The museum will feature a 500k gallon aquarium,
a full dome planetarium, interactive exhibits, innovative technology and two additional wings of exhibition space, learning
center and cafes. The Patricia and Phillip Frost Museum of Science is also expected to draw over 700,000 visitors to Miami
during its first year of opening, and an additional 600,000 visitors on an ongoing annual basis thereafter, showcasing downtown
Miami as an urban waterfront destination to new audiences.
40macy’s site
MIAMI, FLORIDA
CBD OVERVIEW
Adrienne Arsht Center for the Performing Arts
The Arsht Center, located at Biscayne Blvd. and NE 13th St., is the largest performing arts center in Florida. Between the
Sanford and Dolores Ziff Ballet Opera House, the Knight Concert Hall, the Carnival Studio Theater, the Peacock Rehearsal
Studio and the Parker and Vann Thomson Plaza for the Arts, the $470 million center can seat over 6,000 people, and plays
host to over 400 performances each year. With a Metromover station located directly in front of both the Macy’s Site and
the Arsht Center, residents or tenants of redevelopment will enjoy convenient access.
port of miami $2 billion expansion
Modern cruising was invented at PortMiami, and today more than 4 million passengers each year vacation from what is known
around the globe as the Cruise Capital of the World. With eleven cruise lines homeporting here, PortMiami continues to be
the departure destination of choice for cruises to the Bahamas, the Caribbean, Mexico and other destinations. The world’s
leading cargo lines transport to the port, with cargo destined for more than 100 countries and 250 ports around the world
flowing through this seaport.
Due to its strategic location, the port includes among its top ten trading partners as the Far East, South and Central America,
Europe and the Caribbean. Over $2 billion in infrastructure improvements are underway to ready PortMiami for the opening
of the expanded Panama Canal. The PortMiami Tunnel will link the Interstate system with Port Facilities and the new freight
rail link allows direct connection to the Florida East Coast Railway. .
41MARKET OVERVIEW
macy’s site
MIAMI, FLORIDA
MA R K ET O V E R V IE W
miami metro
The Macy’s Site is located in Miami, Florida, just north of the Miami River. The city of Miami is the heart of Miami-Dade County,
also known as the Miami-Miami Beach-Kendall Metropolitan Division (“metro”).
The Miami metro is part of a larger economic region often referred to as “South Florida,” but formally known as the Miami-
Fort Lauderdale-Pompano Beach Metropolitan Statistical Area (“MSA”). Comprised of Miami-Dade, Broward, and Palm
Beach Counties, the MSA is the eighth largest economic region in the United States, with 5.8 million year-round residents
and thousands of seasonal visitors. Miami’s reputation as an international-class city should help South Florida achieve the
rank of fifth fastest-growing market among the 10 largest MSAs over the next five years, yielding 330,400 new residents.
This section of the Offering Memorandum will analyze the demographic, economic and competitive environment affecting
the Property, including identification and analysis of trends in the Miami Metro and Downtown Miami.
Freedom
Tower
American Airlines
Miami-Dade Arena
County
Courthouse
Government
Center
Metro
rail
95 Miami River
43macy’s site
MIAMI, FLORIDA
MA R K ET O V E R V IE W
demographic overview
Population: Miami’s Strong Growth to Continue
Over the past two decades, South Florida has been one of the fastest-growing regions in the country. Since 2000, the
Miami-Fort Lauderdale-Pompano Beach Metropolitan Statistical Area (MSA), which includes Miami-Dade, Broward, and Palm
Beach Counties, has grown by 754,278 residents, an increase of more than 15%. The MSA is now the eighth most-populous
geographic region in the US.
population level annual growth
area 2000 2010a 2014e 2019f 2000-2010a 2010-2014e 2013-2019
22 East Flagler St.: 5 mile ring 404,556 439,821 466,069 499,227 0.8% 1.5% 1.4%
22 East Flagler St.: 3 mile ring 171,089 203,641 222,162 241,898 1.8% 2.2% 1.7%
22 East Flagler St.: 1 mile ring 25,780 45,079 54,830 62,947 5.7% 5.0% 2.8%
Miami, FL 361,314 399,457 423,747 454,421 1.0% 1.5% 1.4%
Miami-Miami Beach-Kendall Metro 2,253,365 2,496,435 2,581,623 2,721,930 1.0% 0.8% 1.1%
Miami-Ft.Lauderdale-Pompano Beach MSA 5,007,564 5,564,635 5,722,514 6,046,549 1.1% 0.7% 1.1%
Florida 15,982,377 18,801,310 19,383,475 20,434,286 1.6% 0.8% 1.1%
The United States 281,421,942 308,745,538 316,296,988 327,981,317 0.9% 0.6% 0.7%
Source: US Census, Nielsen-Claritas
• The area close to the Property has witnessed explosive growth over the past decade. Population within one mile of
the Property has more than doubled since 2000, and now encompasses nearly 55,000 residents.
• Population in this one-mile ring is forecast to continue increasing at more than double the pace of the surrounding
area, bringing in another 8,000 people by 2019.
• The Miami-Miami Beach-Kendall Metropolitan Division (“metro”), which encompasses the whole of Miami-Dade
County, has taken on about 328,000 new residents since 2000, pushing its population to 2.6 million.
• One of the key reasons for Miami-Dade County’s positive growth was foreign in-migration. Over the last four years,
the County actually had a net loss of domestic residents to other parts of the US, especially Broward and Palm
Beach Counties, as residents sought more affordable housing, but this was largely offset by foreign nationals mov-
ing to Miami.
• Miami’s reputation as an international-class city provides a continued impetus for strong growth, and the metro is
forecasted to increase in size by 140,307 residents over the next five years.
• The three-county MSA is projected to be the fifth fastest-growing market among the 10 largest MSAs over the next
five years, yielding about 325,000 new residents.
Ten Largest Economic Regions - Population Growth Forecast
Population Estimate Annual Growth
2014 2019 2014-2019f
Houston-The Woodlands-Sugar Land, TX 6,316,454 6,919,973 1.84%
Dallas-Fort Worth-Arlington, TX 6,783,582 7,337,772 1.58%
Washington-Arlington-Alexandria, DC-VA-MD-WV 5,874,437 6,286,965 1.37%
Atlanta-Sandy Springs-Roswell, GA 5,467,379 5,790,724 1.16%
Miami-Fort Lauderdale-West Palm Beach, FL 5,722,514 6,046,549 1.11%
Boston-Cambridge-Newton, MA-NH 4,639,405 4,798,087 0.67%
Los Angeles-Long Beach-Anaheim, CA 13,064,201 13,450,489 0.58%
New York-Newark-Jersey City, NY-NJ-PA 19,880,906 20,418,435 0.53%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 6,032,802 6,132,054 0.33%
Chicago-Naperville-Elgin, IL-IN-WI 9,545,986 9,686,565 0.29%
Source: US Census, Nielsen-Claritas
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