Arkadia Property Group has acquired one of the last remaining gas stations in Miami Beach, located at 1840 Alton Road. The firm plans to redevelop the 0.4-acre site into a mixed-use Class A office building named Sunset House, which will feature 40,000 square feet of office space and 2,500 square feet of food and beverage retail.
The property is situated in the Sunset Harbour neighborhood. According to David Aaron of Arkadia, zoning changes secured two years ago will allow the building to reach 75 feet in height, with an additional 10 feet permitted for neighboring developments. The project will also include at least one residential-office live-work unit as required by local regulations.
Aaron explained that the acquisition process began over a decade ago when he and his partner purchased an option on the property. Mika Mattingly, now with Colliers, was involved in arranging this contract in 2013. Property records show that Alton Road Supreme Services, led by Jose M. Suarez, sold the site; it had been developed as a gas station and car wash in 1997.
“We saw this convergence of neighborhoods and we knew something was happening but we didn’t pretend to know what and when,” Aaron said. He added that after an initial sale-leaseback agreement fell through, “The only solution we found was to create an option for the property.”
Richard Kilstock of Arkadia noted: “the neighborhood has ‘changed dramatically over the past 12 years.’”
The purchase price for the property was $4.2 million. Vertix’s Jose Godoy provided a $4.5 million loan for both acquisition and predevelopment costs.
Aaron highlighted demand for new office space in Sunset Harbour due to limited availability at nearby projects such as Eighteen Sunset—a five-story development by Deco Capital Group and RWN Real Estate Partners—where reported leases have reached $160 per square foot net (https://therealdeal.com/miami/2023/11/13/deco-capital-completes-sunset-harbour-offices-with-marc-rowan-as-partner/).
Kobi Karp Architecture & Interior Design designed Sunset House. Office leasing will be managed by Matt Himmelsbach of Newmark while Sara Wolfe from Wolfe Town Retail will oversee retail leasing efforts. Robert Kaplan and Mark Rutherford from Cushman & Wakefield served as debt brokers; Mark Meland and Bryan Vega at Meland Budwick along with land use attorney Michael Larkin were also involved.
Environmental remediation is planned prior to construction completion, which could take about 30 months according to Aaron.
Potential tenants are expected from North Bay Road as well as surrounding islands and neighborhoods within Miami Beach (https://www.miamibeachfl.gov/city-hall/planning/building-department/neighborhoods-of-miami-beach/sunset-harbour-neighborhood-association/). Preleasing activities have begun though asking rents have not been disclosed.
“Sunset Harbour is extremely demanded and special. People want to work there but there’s no supply,” Himmelsbach said. “There’s a missing hole that this building will fill.”
