Does Brickell need more condos? Ytech says yes with purchase of south-end site
Brickell’s skyline is littered with high-rises, but developer Ytech is betting there is room for another condo tower.
The Brickell-based Ytech International acquired two adjacent low-scale buildings — 41 SW 15th Road and 75 SW 15th Road — in December for $12.2 million, according to the company. The firm has been shopping in the neighborhood since 2017. The 16,000-square-foot site is zoned for an 80-story, 432,000-square-foot tower and can include a 183-unit condominium.
A single-story apartment building and two-story office building now occupy the lots just north of Simpson Park, a 7.8-acre hammock at the corner of Miami Avenue and 15th Road signaling the entrance to a single-family neighborhood.
“The property offers one of the best development sites for boutique luxury living in the highly sought-after south Brickell area,” Yamal Yidios, Ytech CEO, said in a press release. “Such close proximity to a park of that size doesn’t exist anywhere else in the Brickell neighborhood and will provide a uniqueness similar to the exclusive residences adjoining urban landmark parks in New York City, London and throughout Asia.”
No plans have been set for the site, Yidios said by email.
Despite a sense among industry watchers that the Brickell area is overbuilt, Ytech believes continuing population growth will attract new residents.
According to projections published by the Downtown Development Authority, Brickell is expected to have more than 50,000 residents by late this year.
“Miami, and particularly Brickell, has never been in a better position than it is today to become a destination that can actually improve the way people live,” Yidios said by email. “Brickell serves as the heartbeat of Miami’s evolution, and despite its growth, we believe Brickell hasn’t realized its full potential to offer true exceptional living. It is Ytech’s appreciation of how luxury design and function can enrich lives that puts the company in a unique position to bridge the gap.”
But condo analyst Peter Zalewski said the site faces two hurdles: Brickell is overbuilt and the site is not on the water.
“The market is just not there for them,” Zalewski said. “The problem is it’s not on the water. It doesn’t carry any cachet.”
Still, the building could appeal to investors intending to rent out the units. For the building to be financially successful, he said, “you need high density and low maintenance,” Zalewski said. “Buildings try to offer so many amenities and too few units that it becomes difficult to maintain.”
Ytech also owns the 10-story office building at nearby 1428 Brickell Ave., acquired in 2017 for $26.5 million following a series of lawsuits over its ownership.
Other developers also see potential in Brickell. Both Related Group and JDS Development are moving ahead with residential projects, banking on the appeal of Miami’s urban core despite the pandemic-fueled popularity of single-family homes.
Ytech owns and manages 3,000 multifamily units, single-family houses, retail and office space across 25 cities.
This story was originally published January 6, 2021 at 7:00 AM.
