photo by Nadia Bouzid
Address: 511 NE 15th Street, Miami
Site area: 11,700 square feet
Sale price: $8 million, reported in February 2016
Price per square foot of land: Approximately $684
Buyer: One Miami Biscayne Bay/Arts District Hotel LLC, linked to Vinay Rama’s Mandala Holdings
Seller: John A. Kimball, founder of Sun Electronics
Previous purchase: $440,000 in 1998
Reported zoning: T6 36b, allowing up to 36 stories, with potential additional height through Miami’s public benefits program
The murals cover almost every available surface of the Sun Electronics building. Behind them rise the Marriott and neighboring residential towers; beside them, cars sit behind a chain link fence. This little commercial property near the mainland entrance to the Venetian Causeway belongs to a much smaller scale of Miami than its surroundings. Its $8 million sale puts a substantial price on the possibility of replacing it.
photo by Nadia Bouzid
A company associated with Mandala Holdings bought the property from Sun Electronics founder John A. Kimball in February 2016. At the time, Mandala’s Vinay Rama told The Real Deal that he was considering designs for a hotel. That intended use helps explain the interest in this particular corner: an existing hotel district, access to the causeway and a location near the former Miami Herald property owned by Genting. The acquisition was a commitment to the site. A finished hotel remained a separate undertaking.
At approximately $684 per square foot of land, the purchase deserves more scrutiny than the building’s modest appearance might suggest. The reported T6 36b zoning permits up to 36 stories, with a potential increase to 60 through the city’s public benefits program. That larger number comes with conditions and a cost. It also describes a height limit, while the amount of floor area permitted on the property is governed separately.
On an 11,700 square foot parcel, those distinctions matter. Elevators, stairs, servicing and the arrangement of guest rooms all compete for space within a small footprint. A taller scheme still needs an efficient plan and revenues capable of supporting the land and construction costs. For an owner in the neighboring towers, the same transaction raises a different question: what could eventually occupy the low building beneath their windows? The murals are the most conspicuous thing about this corner today. The development capacity deserves just as much attention.
photo by Nadia Bouzid
photo by Nadia Bouzid