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MG3 Group is working on plans for an office building in Aventura after purchasing vacant land from a local Jewish organization. The nonprofit Jewish Outreach Center, an affiliate of Chabad of Aventura, sold the 1.05 acre site at 21001 Biscayne Blvd. to MG3 210 Office LLC, an affiliate of Aventura based MG3. The deal included $6 million in seller financing. Property data firm Vizzda confirmed the size of the site.

The Chabad building is located to the east of the vacant site, which previously had a synagogue before the Chabad demolished it and constructed a new facility next door.
An official from MG3 said the company plans to build a 10-story, 90,000-square-foot office building with additional ground-floor restaurant space. Chabad of Aventura would have the right to use a portion of the building’s parking garage.

A different developer once had the site under contract for an office building, but it didn’t close on the site. MG3 noted the site is near the Aventura Parksquare mixed-use project, where it owns the retail space. It’s also across from Aventura Hospital. “We are very pleased to add this parcel and project to our development pipeline," an MG3 spokesman said. “The property fits perfectly into our long-term strategy of acquiring and developing choice assets with staying power.”

MG3 Group is led by Marcelo Saiegh, Gustavo Bogomolni and Hernan Leonoff. The company has developed and invested in a variety of commercial real estate types, including industrial, retail, office and charter schools. According to the fourth quarter report from Colliers, the Class A office market in Aventura had a 6.6% vacancy rate and an average asking rent of $58.39 a square foot. There were 217,650 square feet of Class A office space under construction in Aventura, with 1.5 million total square feet of Class A space in the market.

MG3 Group is upping the stakes on its industrial real estate wager. The firm’s real estate investment trust, or MG3 REIT, dropped $78 million for the Walgreens Distribution Center, an industrial facility that spans 98 acres in west Palm Beach County, according to the buyer’s news release. The property at 15998 Walgreens Drive is west of Jupiter, near Bee Line Highway and Pratt Whitney Road. In the sale-leaseback, Walgreens sold the real estate but will continue to fully occupy the 683,000-square-foot property. The company services 460 of its stores from Central Florida to the Keys from this facility. Jose Lobón and Maury Vanden Eykel of CBRE represented Walgreens.

Marcelo Saiegh, Gustavo Bogomolni and Hernan Leonoff’s MG3 Group develops and invests in Florida real estate. Based in Aventura, MG3 has a strong focus on charter schools. Last year, MG3 sold eight campuses throughout Florida for a combined $242 million, including one in Homestead and another in Hollywood. The firm also converted the former Miami Herald printing facility in Doral into BridgePrep Academy, a charter school with a 1,650-student capacity. MG3 paid $11.6 million for the 6-acre facility in 2020. It also has focused on offices and retail. MG3 bought the Doral Concourse office building at 8400 Northwest 36th Street for $96 million last year. In February, it purchased the Walmart-anchored Fontainebleau Park Plaza at 9191 West Flagler Street in unincorporated Miami-Dade County for $70 million.

The firm’s bet on the industrial market comes as it continues to experience an upward swing, a trajectory that is expected to hold through the rest of the year. Palm Beach County’s average asking rents hit $11.84 per square foot in the third quarter, up from $9.34 a square foot in the same period of last year, according to JLL. Plus, available space is hard to come by, with vacancies dropping to 3.1 percent in the third quarter from 3.6 percent during the same period of last year.

Source: https://therealdeal.com/miami/2022/11/28/mg3-drops-78m-for-walgreens-distribution-facility-near-jupiter/