Forte Capital Plans Creative Office Makeover for Wynwood Retail Building
Forte Capital purchased a vacant retail building near the border of Miami’s Wynwood for $6.35 million, with plans to convert the space into creative office.
Forte plans to reposition the 14,000-square-foot building, located at 2830 NW Fifth Avenue, a gateway to Fifth Avenue, a street that’s changing rapidly, said Chaim Cahane, principal at Forte Capital.
In particular, Forte plans to target tenants looking for lower rents than nearby buildings in the heart of Wynwood, where asking rents can reach $70 per square foot, Cahane said. “A lot of tenants that are getting displaced, it’s a great alternative for them.”
Sheridan Capital was the lender in the deal, providing around 70 percent of the loan-to-cost for the deal, Cahane said. “Our goal is to reposition the building, get it stabilized, and then refinance with a conventional lender.”
LNDMRK Development sold the property, having purchased it in 2017 for $4 million, according to property records.
Forte has been active in the area since 2013, when Cahane bought Wynwood 25, his first acquisition in Miami. There was a dry spell after 2016, but, in 2021, Cahane returned to the neighborhood, purchasing three properties throughout the year.
In February, Forte bought a retail building at 310 NW 25th Street from East End Capital for $11.8 million out of foreclosure. The 20,000-square-foot building was about 35 percent leased at the time at the sale, but quickly filled up. In May, Ananda Market took close to 12,500 square feet to open a market, cocktail bar, and patisserie, The Real Deal reported.
Cahane was also involved in another East End Capital sale at 2400 N Miami Avenue, where LIVWRK is planning the mixed-use Foyer, after purchasing the site for $39 million in August.
“Fifth Avenue is going to look very different in a few years,” said Cahane. “It’s a very wide street with a really cool median. We actually think it has a lot of long-term potential.”
Tony Arellano and Devlin Marinoff of DWNTWN Realty Advisors represented both the buyer and seller in the transaction.
Chava Gourarie can be reached at cgourarie@commercialobserver.com.