Arkadia Property Group has acquired one of the last remaining gas stations in Miami Beach, with plans to redevelop the site into a mixed-use office building. The property, located at 1840 Alton Road in the Sunset Harbour neighborhood, was purchased from Alton Road Supreme Services, led by Jose M. Suarez. The site, which includes a car wash and was developed in 1997, is among only six gas stations left in Miami Beach.
Richard Kilstock and David Aaron of Arkadia Property Group confirmed the acquisition and outlined plans for a 40,000-square-foot Class A office building named Sunset House. The development will also include 2,500 square feet of food and beverage retail space on the 0.4-acre lot. The new building will stand 75 feet tall and feature at least one residential-office live-work unit as required by local zoning regulations.
Arkadia secured zoning changes two years ago that allow for an additional 10 feet of height on the property and neighboring sites. According to Aaron, “We saw this convergence of neighborhoods and we knew something was happening but we didn’t pretend to know what and when.” He added that after an initial sale-leaseback deal fell through, they opted to create an option for the property.
The purchase price for the property was $4.2 million. Vertix’s Jose Godoy provided a $4.5 million loan that will help fund predevelopment costs.
The project design is by Kobi Karp Architecture & Interior Design. Newmark’s Matt Himmelsbach is handling office leasing while Sara Wolfe of Wolfe Town Retail manages retail leasing. Debt brokerage was handled by Robert Kaplan and Mark Rutherford of Cushman & Wakefield; legal counsel included Mark Meland and Bryan Vega at Meland Budwick, with land use attorney Michael Larkin of Berkow also involved.
Aaron noted demand for new office space in Sunset Harbour due to limited availability at nearby Eighteen Sunset—a five-story office project developed by Deco Capital Group and RWN Real Estate Partners—which has signed leases reportedly at $160 per square foot net.
Kilstock commented on changes in the area: “The neighborhood has changed dramatically over the past 12 years.”
Himmelsbach said preleasing is underway but declined to disclose asking rents: “Sunset Harbour is extremely demanded and special. People want to work there but there’s no supply,” he said. “There’s a missing hole that this building will fill.”
The developer expects delivery of the building in about 30 months following environmental remediation work.
Potential tenants are expected from North Bay Road, Sunset Harbour, Venetian Islands, and surrounding areas.
