MIAMI—In one of the biggest-ever deals in South Florida, MiamiBeach-based Terranova sold its six-buildingportfolio of assets on and around Lincoln Road toMorgan Stanley Real Estate Investing, along withaffiliates of Terranova, for $342 million. Terranova assembled theassets over the past three and a half years for $191 million.

|

As Terranova chairman Stephen H. Bittel seesit, the deal is one of the most exciting his firm has closed in its35-year history. He views the transaction as a partnership withother owners on the famed street—and the City of Miami Beach—tomove Lincoln Road forward.

|

“Our investment with Acadia Opportunity Fundshas drawn more and more attention of professional capital to thestreet,” Bittel says. “At the same time, the interest from topinternational retailers has pushed sales and rents higher andhigher.”

|

Bittel calls the planned redesign of the LincolnRoad common areas and the redevelopment of the Miami BeachConvention Center “strong positive influences that will keep themomentum moving forward." Meanwhile, he expects the new partnershipwith Morgan to seek additional market opportunities for these typesof assets, which he described as having “enduring generationalvalue.”

|

“This long-term investment strategy focused on high streetretail properties reflects the continuing trend ofresidents and tourists alike to be drawn to the top urban shoppingstreets, of which Lincoln Road is the absolute best, south ofMadison Avenue in New York City,” Bittel says. Two of theretail properties have already received HistoricPreservation Board approval for expansions, making it possible toaccommodate new flagship retailer opportunities. And a proposeddevelopment on Lincoln Lane would create a three-levelbuilding.

|

Lincoln Road has become home to internationalretailers such as Armani, H&M, Zara, John Varvatos, Zadig andVoltaire, Anthropologie, and Apple. On the dining front, LincolnRoad is home to Sushi Samba, Khong River House, Laduree, MeatMarket, Sosta, and Havana 1957. Lincoln Road attracts local andtourists.

|

“Miami Beach has had a magnetic attraction from around the worldalmost since developer/creator Carl Fisher's dreams started tobecome reality,” Bittel says. “With a storied past to build upon,we look forward to an exceptional future of growing asset values,as we work closely with the community to make Lincoln Road betterand better for both residents and visitors."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.