Ryan Shear, managing partner, Property Management Group. Photo: J. Albert Diaz

The next step in the evolution of Miami's Wynwood Arts District is residential, and prolific apartment developer PMG is playing a role.

PMG, which is based in Miami and New York, has built towers in Miami and Fort Lauderdale urban cores and is now working on its first Wynwood project in a joint venture with Greybrook Realty Partners based in Toronto, Canada.

The duo on Aug. 19 bought the site for $46 million Aug. 19 for an eight-story tower with over 220 apartments, a hotel, more than 35,000 square feet of retail, and a rooftop bar and restaurant.

The 1.6-acre property is on the southeast corner of Northwest 25th Street and Second Avenue at 2431 NW Second Ave. Construction is set to start next summer for completion two years later.

Wynwood once was a warehouse district but transformed itself in recent years into a bustling arts district with international cache. Galleries, bars and event spaces opened in revamped warehouses, including popular retailers like Panther Coffee, Warby Parker and Love Life Cafe.

Now that it's a preeminent retail destination, Wynwood is poised to become a residential neighborhood with new apartment and condominium buildings set to rise.

The 289-unit Wynwood 25 apartment building was just finished and is being followed by the 175-unit Bradley by year's end.

On their heels are at least four apartment buildings, including PMG's, and at least one condominium building.

It was important for PMG to join Wynwood's residential push, said managing partner Ryan Shear. And it wasn't just about finding a site anywhere in the arts district but about landing a location on Second Avenue, the neighborhood's main retail drag.

"Wynwood is one of the most walkable and vibrant areas in Miami. It is the perfect location for our latest project as we continue expanding throughout South Florida and beyond," he said.

The acquisition was financed with a $15 million loan from Bank OZK.

Saul Ewing Arnstein & Lehr partner Luis Flores in Miami secured the financing on behalf of the buyers and worked on their joint venture documents.

Flores, who has closed at least six loans for PMG projects in Miami and Fort Lauderdale, said the latest deal was made easy by the developer's proven track record.

"Every time, it comes down to lenders recognizing that PMG's developments always respond to market demands with forward-thinking concepts and attractive designs," Flores said.

Indeed, "forward-thinking concepts" are expected at PMG's Wynwood building as part of its new multifamily portfolio.

This will be different from PMG's X Social Communities, or XSC, multifamily division, which is developing several South Florida apartment towers, including the completed downtown X Miami tower and the X Biscayne under construction a few blocks south.

XSC buildings have trendy smart-home features like a door-lock app. The new brand, which will be announced soon, will incorporate a hotel component in some buildings.

In Wynwood, the residential and hotel segments will have their own lobbies and elevators, and apartments will be furnished, Shear said.

Wynwood Evolution

Wynwood has been home to single-family homes and small apartment buildings constructed in the 1950s and 1960s with about 10 units per building. The neighborhood for some time was known as "Little San Juan" with a predominant Puerto Rican community.

The large-scale redevelopment has gentrified the neighborhood and demolished some of the older residential inventory.

New buildings promise a higher standard but at a higher cost than traditional Wynwood rents, which could run as low as $678 a month.

Among the planned buildings are the 189-unit Wynwood Green by Lennar and the 241-unit Wynwood Square by One Real Estate Investment, according to a Wynwood Business Improvement District market report published last October.

The Related Group, which developed Wynwood 25 and The Bradley in partnership with other companies, also is planning the 182-unit W House and the Wynwood 29 condominium.

In total, the residential inventory is expected to double by 2021, according to the BID report.

Rents for PMG's Wynwood tower haven't been released but the company calls the units "attainably" priced.

Despite the changes, the neighborhood will keep its low-rise warehouse district character since projects are limited to eight stories and must fit with the area's design, PMG's Shear said.

"They are trying to keep the authenticity of the neighborhood."

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