MIAMI—GlobeSt.com first reported on the largest Florida retail acquisition of 2012 on Tuesday. More details have emerged on the deal of the year.
Affiliates of Terranova Corporation and Acadia Realty Trust bought a three-building retail portfolio on Miami Beach’s Lincoln Road for $139 million. RKF and Ackman-Ziff arranged the record sale on behalf of the seller, South Beach Tristar Capital.
The portfolio consists of properties located at 719-737, 801-821 and 826-838 Lincoln Road in the heart of Miami’s South Beach district. Current tenants in the fully-occupied portfolio include Aldo, Solstice, Score, Tiramesu, Spris, Fossil, Kiehl’s, SOBE, Steve Madden, and the new Dylan’s Candy Bar, among others.
Lincoln Road Mall is an open-air pedestrian esplanade stretching from Alton Road to Washington Avenue. It ranks among the leading retail corridors in the world draws tourists and residents alike. The market has evolved over the past decade from smaller shops and boutiques of local retailers to significant flagships of high impact national and international retailers, including Apple, J.Crew, H&M, Forever 21, and Madewell.
“When we acquired this portfolio in ’98 we were considered pioneers, but we saw this as an emerging market and had the vision that Lincoln Road could become one of the great shopping streets in the country alongside Madison Avenue, Michigan Avenue and Rodeo Drive,” says David Edelstein, president of Tristar Capital. “The time has come to execute our disposition strategy and to deploy our assets into new emerging markets.”
Tristar originally acquired the portfolio for $15.75 million. At the time, the $295 per square foot purchase price was believed to be record-setting and a sign that Lincoln Road was on the cusp of a major evolution. Fifteen years later, the immediate area surrounding Lincoln Road is now marked for further transformation with new development and redevelopment projects slated along Lincoln Lane and Meridian Avenue, as well as the planned renovation and expansion of the Miami Beach Convention Center.