Miami-based FIP Management is rolling the dice on Aventura's first medical office condo project in the area. Of course, it's not a big gamble since FIP already has pre-sold two-thirds of the office space.
FIP Management is breaking ground this week on Aventura Medical Tower, a 12-story medical office building that is being marketed as office condominiums to physician practices who want walking access to Aventura Hospital & Medical Center. The $27M project at 2801 NE 218 St has already pre-sold office units to a number of physician groups, including to Dr. Jeff Gelblum, a noted neurologist in Miami who also is a principal in the project. With that and construction financing in the kitty, Aventura Medical Tower should deliver by fall 2017.
Jeff notes that medical office space around hospitals in Miami is rare to come by. And rents have escalated greatly since the Great Recession. In fact, National Real Estate Investor noted last year that Miami MOB rents were among the 10th-highest in the nation at an average of just over $25/SF. Miami's 11.1M SF MOB market is 92.5% leased as well, according to Colliers International. Jeff says physicians were sold on the idea of owning office space and paying a steady and predictable mortgage versus chancing it on rents that don't seem to be headed south anytime soon. “The problem is there's not enough office space to go around,” Jeff says.
Aventura Medical Tower will have street-level retail crowned by a Walgreens pharmacy that will offer bedside delivery of prescriptions to patients at Aventura Hospital. Then levels two through seven will be a podium parking deck, with floors eight through 12 the office space.
For FIP, which already owns or manages six MOBs, this will likely not be the last project of its kind. FIP Realty's Roderick Faith says the firm is eyeing similar developments on other hospital campuses around South Florida. "We have identified several investment opportunities in the South Florida region," Roderick tells us. (He's third from left here at American Airlines Arena to celebrate the Heat's championship win along with FIP's Roland Faith, Roy Faith, Kevin Faith, Jennifer Faith, Richard Faith and Glenn Orgin.) "First and foremost, a busy hospital environment is identified within a vibrant, high-growth community. This bodes well for development."
