News of the development comes as Miami experiences an uptick in demand for multifamily living and a depletion of available rental supply. A recent market study conducted by Focus Real Estate Advisors found that overall average vacancy rates in the Miami rental market declined steadily over the past seven quarters, dropping to 4.7% as of Q4 2011. Rising demand and extremely limited supply currently in development both market-wide and in Miami’s Upper East Side indicate these trends will continue, according to the report.
The Adler-ECI development will fill a void of available rental product in the mainland Miami communities north of the Downtown/Brickell market and south of the Aventura/Sunny Isles market. The new development will be situated just north of NE 79th Street, directly across the 79th Street Causeway from Miami Beach and halfway between downtown Miami and Aventura. The site was the former home of the historic Mike Gordon’s Seafood Restaurant, a Miami dining institution for more than a half-century prior to its closing.
The property is fully entitled for multifamily development within the confines of a Major Use Special Permit (MUSP). The acquisition of the land was financed by Miami-based Apollo Bank.
“All signs indicate there is fast-growing demand for quality apartments in Miami’s well-located Upper East Side neighborhood, so this development will fill a niche in the city’s rental market,” said Adler Group CEO Michael M. Adler. “The Adler-ECI partnership brings decades of national expertise building and managing rental properties just as Miami’s multifamily market improves, with employment numbers strengthening, rental rates on the rise due to growing demand, and new supply at historically low levels.”
The rental complex will be professionally managed, offering a host of amenities for residents. Features will include up to 13 boat slips zoned for development on Biscayne Bay and a new neighborhood park that will be dedicated by Adler and ECI and owned by the City of Miami directly across 79th street from the apartment complex.
The joint venture marks Adler Group’s return to its roots in multifamily development and ECI Group’s entrance into the Miami market. Founded more than 50 years ago by high-rise apartment developer and multifamily housing pioneer Samuel I. Adler, the Adler Group developed more than 8,000 rental units in South Florida during its earliest days and has continued to build luxury residences at affordable prices. Additionally, the firm has developed, acquired and operated in excess of 20 million square feet of office parks, industrial complexes, and retail centers in recent years.
ECI Group has more than 40 years of experience building and managing top quality apartment and commercial properties across the Southeast U.S. The firm currently owns and manages approximately 9,300 apartment units at 40 properties across Georgia, Alabama, Mississippi, Louisiana and Florida.