Arkadia Property Group has purchased one of the last remaining gas stations in Miami Beach, with plans to redevelop the site into a mixed-use Class A office building. The property, located at 1840 Alton Road in the Sunset Harbour neighborhood, was acquired last week by Arkadia, which is led by Richard Kilstock and David Aaron.
The planned project, named Sunset House, will feature 40,000 square feet of office space and 2,500 square feet dedicated to food and beverage retail on the 0.4-acre lot. The building will rise to 75 feet and include at least one residential-office live-work unit as required by local zoning rules. Arkadia previously secured zoning changes that allow for an additional 10 feet in height for this development and neighboring properties.
According to Aaron, “We saw this convergence of neighborhoods and we knew something was happening but we didn’t pretend to know what and when.” He added that after a previous sale-leaseback arrangement fell through, they opted to create an option for the property instead.
The acquisition concludes a process that began more than a decade ago when Aaron and his partner secured an option to buy the property in 2013. Mika Mattingly, now with Colliers, helped arrange that contract. The seller was Alton Road Supreme Services, led by Jose M. Suarez; the gas station had been developed in 1997 and is one of only six left in Miami Beach.
Kilstock commented on changes in the area: “The neighborhood has changed dramatically over the past 12 years.”
Arkadia paid $4.2 million for the site. Financing included a $4.5 million loan from Vertix’s Jose Godoy that will also help cover predevelopment expenses.
Aaron cited strong demand for new office space locally, noting there is little availability at nearby Eighteen Sunset—a five-story office project being developed by Deco Capital Group’s Bradley Colmer and RWN Real Estate Partners’ Marc Rowan—where tenants such as Audemars Piguet are set to open offices. Reports indicate leases at Eighteen Sunset have reached $160 per square foot (net).
Kobi Karp Architecture & Interior Design designed Sunset House. Newmark’s Matt Himmelsbach will handle office leasing while Sara Wolfe of Wolfe Town Retail oversees retail leasing. Debt brokerage was provided by Robert Kaplan and Mark Rutherford of Cushman & Wakefield; legal representation included Mark Meland and Bryan Vega at Meland Budwick along with land use attorney Michael Larkin of Berkow.
Environmental remediation work will be completed before construction begins. Delivery of the building could occur within approximately 30 months.
Prospective tenants are expected from North Bay Road as well as the Sunset and Venetian islands in addition to Sunset Harbour itself. Preleasing efforts have started but asking rents were not 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.”
