September 25, 2018 | CRE Sources
In a transaction that will fuel new confidence in one of South Florida’s fastest-growing office submarkets, CPA and advisory firm Kaufman Rossin will become the anchor tenant at Mary Street, a new mixed-use development in the heart of Coconut Grove’s commercial district. The lease keeps Kaufman Rossin in its longtime Coconut Grove neighborhood, where the company has grown to become one of the country’s top 100 CPA and advisory firms.
Completion of the 64,666-square-foot Kaufman Rossin lease, coupled with a 13,174-square-foot lease recently signed by Mary Street co-developer Terra, means the project’s 77,840 square feet of office space is fully leased.
Developed by Terra in partnership with Mayfair Advisors, the Touzet Studio-designed building is now under construction and expected for completion by mid-2019. The project includes 77,840 square feet of Class A offices across five floors, reimagined retail storefronts, and a publicly accessible parking garage. Kaufman Rossin was represented by Tom Capocefalo, senior managing director with Savills Studley. The development team was represented by Chris Dekker, VP with Mayfair Real Estate Advisors.
The lease represents a 10,000-square-foot expansion for Kaufman Rossin, which has been headquartered at 2699 S. Bayshore Drive since 1974. The firm’s new space at Mary Street, located just two blocks away, will occupy the building’s top two floors of offices, as well as half of the third floor. Nearly 300 Kaufman Rossin employees will be based in this location, starting in June 2020. Terra’s new corporate office will be on the building’s third floor and mezzanine level. A 340-space parking garage and street-level retail and restaurant space will occupy the building’s lower floors.
“The move to this expanded, innovative space represents new beginnings for Kaufman Rossin while keeping us true to our roots in Coconut Grove. It’s important not only for the growth of our firm, but also for our employees who are the heart of our award-winning corporate culture, and for our clients located in South Florida and beyond,” said Blain Heckaman, chief executive officer of Kaufman Rossin. “This project is also significant for us on a client relationship level, as Terra has been a firm client for many years. It’s exciting to work with them in a new way that is both mutually beneficial and collaborative.”
Mary Street will mark the first delivery of new Class A office space in Coconut Grove’s business district in more than 20 years. That lack of new product has created significant pent-up demand among tenants, with recent data from JLL Research indicating a vacancy rate of only 1.7 percent in Coconut Grove – the lowest figure of any submarket in Miami-Dade County.
“Our team launched Mary Street to complete the vision of a true live-work-play environment in Coconut Grove,” explains David Martin, president and co-founder of Terra. “We always believed adding density and improving neighborhood connectivity would appeal to existing Coconut Grove companies, so bringing in Kaufman Rossin as our anchor office tenant is an ideal match. Terra and Kaufman Rossin have been Coconut Grove neighbors for years, and our firms have enjoyed a close business relationship dating back more than a decade. It’s fitting that our firms will both call Mary Street home.”
Mary Street’s revamped retail program will total approximately 16,766 square-feet of frontage along Mary, Oak and Rice Streets. The space will cater to chef-driven restaurants with café seating and retailers serving Coconut Grove’s growing population of residents, visitors and daytime workforce. Signed tenants include Jaguar Therapeutic, OXXO Cleaners, Elia restaurant, the Workout Spot, and a private dentistry practice.
Amenities at Mary Street will include a state-of-the-art lobby for office tenants and guests, 24-hour security, covered valet and drop-off areas, and dedicated elevators with direct office access. Electric car charging stations, bicycle stations and bicycle storage are also available.