Hines Closes 2nd Largest Miami Deal at $430M – Multifamily Real Estate News
A recently completed mixed-use development in Miami’s Coral Gables submarket has traded in one of South Florida’s largest deals this year. Hines Global Income Trust bought the 1.2 million-square-foot Gables Station from co-developers Nolan Reynolds International and 54 Madison Partners. According to The Real Deal, the price of acquisition was $430 million.
Gables Station was designed by Gensler and bears the Life Time Fitness brand, which is a fully integrated healthy lifestyle company. Willowick Residential—Hines’ management company—will serve as the property manager for the asset. Cushman & Wakefield represented the seller in the transaction.
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The 14-story luxury property is located at 225 and 237 S. Dixie Highway. It comprises 495 Life Time Living units, an 80,000-square-foot luxury fitness space, a 25,000-square-foot coworking space and roughly 100,000 square feet of retail. Gables Station offers studio, one-, two- and three-bedroom units, as well as penthouses—ranging in size from 436 to 1,539 square feet. According to Hines, the units are 95 percent leased.
Residents also have access to approximately 968 parking spaces. Other amenities include a full-service spa, three swimming pools, bicycle storage and immediate access to the Miami-Date Metrorail. The retail component will feature a Trader Joe’s supermarket, a high-end Italian restaurant called Erba and specialty foods market Graziano’s. Gables Station is under half a mile from the Shops at Merrick Park, a 750,000-square-foot retail village anchored by Neiman Marcus and Nordstrom.
Hines betting big on South Florida
Gables Station was completed a year ago by the two developers. According to Florida Yimby, Nolan Reynolds International first acquired the development site in 2016, for $60.3 million. The company broke ground on Gables Station in 2018, taking out a $158.4 million construction loan, provided by Bank OZK. According to Gensler, the estimated cost of construction was $160 million. Gables Station is LEED certified to the Silver level.
According to Hines, this was South Florida’s second-largest single-asset transaction of the year. The global investor has spent $1.8 billion in the region on three other developments since the start of the pandemic. Hines Global Income Trust’s President Alfonso Munk said in a prepared statement that the Gables Station investment was a unique opportunity to capitalize on the company’s growth strategy in the high barrier market of South Florida.
As the latest Yardi Matrix Miami report shows, the metro surpassed $2 billion in multifamily sales activity on a year-to-date basis through April, well above last year’s performance over the same period. The average price per unit exceeded $300,000, a first for the market. Gables Station traded at roughly $868,700 per unit, making it one of the priciest multifamily assets in the region’s history. Demand is reflected in rent growth as well, as Miami led growth nationally with rates up 24.6 percent on a year-over-year basis through April, to $2,261, according to the same source.
