Miami developer pays $105 million for land to build up to 2,000 more homes in Edgewater neighborhood
A pioneering developer in Miami’s Edgewater neighborhood recently spent $105 million on a three-acre tract covering a city block to build thousands of new homes that will expand living options in the trendy community.
The Melo Group has the zoning rights to raze a commercial building and Burger King at 1700 Biscayne Boulevard and build four 60-story towers that can include up to 2,000 resident units plus retail space, said principal Carlos Melo. The land, which Melo bought a week ago from Biscayne Arts LLC, is steps from the popular eatery Mignonette.
The developer expects to start designing the project by next summer. The property sits in a federal opportunity zone, which is an area designated under the 2017 Tax Cuts and Jobs Act for economic development of blighted properties in exchange for capital gains tax savings.
“The location is essential,” Melo said, highlighting the site’s proximity to the Design District, Miami Beach, downtown Miami and Brickell. “People said during the pandemic that no one would want to live in high-rises. We haven’t seen that. In fact, we’ve seen more people wanting to live in the urban core.”
Edgewater, spanning the bayfront from Northeast 15th Street to the Julia Tuttle Causeway, sits just north of the city’s Arts & Entertainment District, Wynwood, Midtown and Miami Metrorail. It was named one of the most popular U.S. metropolitan areas in November by RentCafe based on the number of housing units built since 2017.
The Melo Group started building homes in Edgewater two decades ago, buying land as early as 2001. It has just over 10 developments in the area, including those in the early planning stages and completed high-rises.
A handful of projects are underway, including another Melo Group project. The company will soon start construction on the twin 62-story bayfront towers Aria Reserve, with the first high-rise slated for completion in 2024.
Ana Bozovic, founder and real estate market analyst of Analytics Miami, said there’s enough buyer demand to sustain the condominiums and apartments in the pipeline.
“We don’t have enough units,” she said, noting the state’s population growth. “Brickell is built out. Downtown is filling in. Edgewater is next. Melo is an experienced operator. It is a smart move. They bought it as a long-term development play.”
Some project plans and increasing cost of living have forced out many long-term residents, but the new supply may eventually decrease condo and rent prices in the neighborhoods, Bozovic said.
“Affordability is addressed when there’s more product. When more people are added to the economy, they are competing for the same amount of supply,” Bozovic said.
