Welcome to 3890 Davie Rd or as we say “Zona Village“. Zona Village is a 201 unit multifamily building built recently completed in 2021. With the growth of Davie and huge student count, it makes perfect sense to look at Zona Village for placement of your retail business. Currently we have three spaces left. Facing South there is an available 1,420 square feet end cap. The rate for that is $35 base rent with a $10 triple net. This means that if you are leasing this particular space it would cost $5,325 a month. On the north facing building we have a total of 2,910 square feet, which can be demised into 1,346 square feet with a covered patio and glass sliding doors. There is also the end cap which is 1,564 sf. A lot of people like the end caps due to the strong visibility.
First generation space vs second generation space
Keep in mind this is a “grey box” which means it’s basically a raw space with dirt floors. This is not atypical when leasing space in a brand new building . When looking at commercial spaces you may seek out second generation spaces with floors, drywall, ceilings, electricity and air condition. Sounds great right? And many times it is. However, if you are looking for prime space, great locations and ability to design the floor plan to your needs, then sometimes the best way to do it is lease a grey box. A blank canvass so to speak. Yes, there are costs and time that are associated with build outs. However, if you have the time and are well capitalized then this would be the preferred options. Two of the biggest expensive when dealing with a first generation space is, if you are doing a restaurant you will have to put in grease traps and a hood. Those costs alone are typically unexpected and under quoted when a consumer is thinking about it. They often times don’t realize the costs involved.
Keep in mind, Landlord’s typically will provide a “Tenant Improvement” allowance to help you in this process. This means they will give a a predetermined amount per square feet to help you in the process. Furthermore, a Landlord may also give you rent abatement. That means they will not charge you for a predetermined amount of months until you are open. Every situation is different and it needs to be negotiated.
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Work with a commercial Broker
In any business there can be pitfalls while going through the process. From the searches, to investment analysis, to contract negotiations. That is why I firmly believe working with a commercial real estate agent when looking at commercial real estate. I also think that if you are looking to buy a house you should work with an experienced residential real estate agent. The license is universal, but doesn’t mean the Realtor is. Residential and commercial are very different. Not only that most residential realtors do not have access to the programs needed to service their customers to the best extent possible. In addition, the commercial realtors who are producers operate in a small tight circle. working with an experienced and connected commercial broker will open you up to opportunities not present on the market as much of commercial real estate is off market and relationships based. I found this article comparing tasks of commercial brokers vs residential brokers.
ZONA VILLAGE
Zona Village, a Class-A multifamily building situated in Davie, Florida, a fast-growing neighborhood inside the Ft. Lauderdale MSA, received $67,000,000 in financing, according to an announcement by Walker & Dunlop. The midrise structure, which was just finished in 2021, has 201 multifamily units and 16,500 square feet of ground floor retail space.
om Melody, Eric McGlynn, Jonathan Paine, and Wes Wallace of Walker & Dunlop used their extensive network of financial sources to find a national life insurance firm as the lender and to get the funds necessary to refinance Zona Village. To replace the current construction financing, the team gave its client, Ceiba Groupe, a 10-year, non-recourse loan with a set interest rate.
Adam Bedzow, Managing Principal of Ceiba Groupe, said, “Walker & Dunlop’s team performed an amazing job of canvassing the capital markets as a whole, finally achieving a financing solution that met each of Ceiba Groupe’s major objectives and aspirations.” Zona Village symbolizes a new way of life in the Town of Davie with its mixed-use, structured parking, covered corridors, resort-style pool deck, and all the facilities just a trip away in the elevator.
Mr. Melody continued, “This transaction serves as an example of the robust demand for Class-A multifamily in the capital markets. We created innovative sizing covenants in close collaboration with the owner and lender to accommodate Zona Village’s continued and rapid rent growth. Together, we were able to achieve Ceiba Groupe’s target proceeds and provide a long-term, permanent financing solution for the asset.”
On the Online Reputation Assessment (ORA) Score Power Rankings, which are an amalgamation of property evaluations across numerous review sites, Zona Village placed among the top 40 out of 71,000 multifamily properties surveyed across the United States. With its great location in Davie, Zona Village is close to major regional thoroughfares like Interstate 595 and the Florida Turnpike and is less than eight miles from downtown Fort Lauderdale and 22 miles from downtown Miami. Additionally, the community offers outstanding amenities to its inhabitants, such as a large resort-style pool, a conference room with workstations, extensive exercise centers, an on-site pet spa, bike storage, on-site shopping, and a roomy resident lounge.
