A joint venture between PTM Partners, a recently launched real estate development firm focused on qualified opportunity zone investments, and South Florida developer Estate Investments Group, have purchased a 1.3-acre site in the Overtown neighborhood of Miami, Florida for $9.7 million through an opportunity zone fund.
Located at 218 NW 8th Street, PTM and EIG plan to co-develop Soleste Grand Central, an 18-story 360-unit rental building at a total estimated cost of $100 million. The company said that the 220,000-square-foot development will have an elevated pool deck, fitness center and spa, kids’ playroom, coworking space and residents lounge, while targeting rents that are approachable and affordable.
Soleste Grand Central has already received approval from the Urban Development Review Board, and PTM and EIG intend to commence site work within the next few months.
“EIG is one of the most respected vertically integrated multifamily developers in the region, so partnering with someone who spoke the same language as us and shared in our vision for what this project could truly be, made perfect sense,” said Michael Tillman, chief executive officer of PTM.
The company noted that Soleste Grand Central is a transit-oriented development, located one block west of MiamiCentral, a three-million-square-foot mixed-use railroad station development. Additionally, the project is situated adjacent to I-95, the multi-billion-dollar Miami World Center, and the Downtown Miami office corridor.
The opportunity zone program was established as part of the Tax Cuts and Jobs Act of 2017 and offers capital gains tax relief for new investments in certain economically distressed areas nationwide that are designated as qualified opportunity zones.
The acquisition of 218 NW 8th Street is the first for PTM, which launched operations at the end of 2018. The firm said that it “aims to continue identifying acquisition opportunities reflective of the qualified opportunity zone legislation’s intent – to invest in markets and projects that positively impact and elevate communities and the residents within them.”
According to a filing with the SEC, PTM registered the PTM Partners Opportunity Zone Fund I LP in December 2018 with a fundraising goal of $125 million.
Estate Investments Group is a full service, vertically integrated real estate investment firm combining proprietary acquisition, entitlement, design, development, general contracting and property management functions. Currently focusing on multifamily development, EIG noted that it has completed and sold more than $200 million in residential real estate assets in the past two years with another $400+ million in multifamily assets in different stages of its pipeline.