Originally designed by famous architect Morris Lapidus in 1952, the One Flagler building at 14 NE First Avenue is undergoing some significant systemic changes. In an effort to revitalize the building, Miami developer Harvey Hernandez’s Newgard Development, with the help of Midgard Management, has invested $10 million in bringing the downtown Miami commercial building up to date. Midgard is the current owner and manager, and realized that the building needed serious upgrades to some of its less glitzy attributes. Some of the improvements include new air conditioning units, plumbing, electrical work, and fire systems.
However, because of how iconic the building is, the developers wanted to make sure and preserve the building’s historical integrity. The condo version will not alter many of the features of the original building in an effort to keep the building for future generations. Hernandez also believe the property will be an attractive one to investors or businesses who wish to be owner-occupants in the building. The downtown area office vacancy rate is still holding well above its historical average at about 20 percent, thanks in large part to the financial crisis of 2008. However, the developers don’t see this as a threat to their business plan.
In Hernandez’s eyes investors will leap at the opportunity to own commercial space inside an iconic downtown Miami building designed by a famous architect. From a strictly financial standpoint, an investor could buy space already being rented by a tenant and expect a return upwards of 4.5 percent. In the same light, the space in One Flagler goes for about $26 per square foot, a 30 percent discount to the area’s average cost. If you’re interested in learning more about Miami commercial real estate, or the One Flagler project, please reach out to a RE/MAX agent today!