MIAMI—Office condos are few and far between these days, but one is up for grabs in, of all places, South Beach. Marcus & Millichap just listed a 15,863-square-foot office condo on the seventh floor of a South Beach office building on 1680 Michigan Avenue.
Arthur Porosoff, vice president investments, and Ryan Shaw, senior associate, both in M&M’s Miami office, are representing the seller, a Miami Beach-based limited liability company. The listing price is $10 million.
“1680 Michigan is one of the few buildings in the Lincoln Road area with floor-to-ceiling glass windows, an on-site parking garage and a concierge,” says Shaw. “The 100% occupied seventh floor condo presents investors with an opportunity to acquire a stable asset with a strong return in a desirable market with high barriers to entry.”
The office building sits on the corner of Michigan Avenue and 17th Street in Miami Beach, near both Interstate 395 (the MacArthur Causeway) and Interstate 95 (the Julia Tuttle Causeway). Lincoln Road, South Beach’s eight-block-long pedestrian walkway and shopping area, is next door.
“The acquisition will provide the new owner with a range of long- and short-term options, including occupying a portion of the space, selling the 23 offices individually, selling the parking interest rights or retaining the asset,” Shaw says. The office building is 11 stories.
This is a unique opportunity because there’s not a lot of acquisition-disposition activity on the South Beach office scene. Miami Beach sees plenty of multifamily sales and retail leasing—and even hotel trades—but office deals are hardly a dime a dozen.
Despite the asset class, Miami Beach remains the location of choice for foreign investors who want to move capital out of their own countries, Franklin Street‘s Elliot Shainberg says. He notes: “These investors feel their money is safer being invested in Miami Beach apartments and condominiums than putting it into foreign real estate or the stock market.”
Why isn’t there much action on Miami Beach’s office scene? Sound off in the box below.