Terra, AvalonBay acquire redevelopment project in Doral

May 22, 2018   |   South Florida Business Journal

By Brian Bandell

Terra and AvalonBay Communities acquired the commercial and apartment portions, respectively, of a redevelopment project in Doral.

The property at 3900 N.W. 79th Ave. and 7905 N.W. 36th Street (Doral Boulevard) currently has 136,892 square feet of offices built in 1972 and a 4,322-square-foot restaurant built in 1981. All of that would be demolished for a mixed-use project called the Atrium at Doral that was recently approved by the city.

Atrium Office Park LLC, managed by Armando Guerra in Coral Gables, sold 4.57 acres for $20 million to Avalon Doral LLC, an affiliate of Arlington, Virginia-based AvalonBay Communities (NYSE: AVB). The buyer intends to build 350 apartments in eight stories.

At the same time, Guerra’s Atrium Office Park and Doral Entrance LLC sold 5.23 acres for a combined $13.5 million to Doral Atrium Retail Investments, an affiliate of Miami-based Terra. The buyer intends to build 90,000 square feet of retail.

Terra President David Martin said he expects to begin construction this summer and complete the retail project in 2020.

“The Atrium at Doral will be Terra’s newest lifestyle-driven retail destination in Doral, which is widely viewed as one of Florida’s strongest retail markets because of its growing population, diverse workforce, and high barriers to new development," Martin said. "Once completed, the Atrium at Doral will meet rising demand among retailers looking for well-located space in Doral that is within close proximity to residential options.”

The Atrium at Doral site has another 200,000 square feet of commercial space or 150 hotel rooms permitted. Those development rights were divided evenly between Terra and AvalonBay, according to county records.

The architect of the residential portion was Stantic. Beame Architectural Partnership designed the commercial portion.

Guerra’s companies acquired the property for a combined $10.7 million in 2000 and 2001. He divested of them for $33.5 million.