MIAMI—L3 Capital is getting in on the Design District action. The company just brokered the a 22,248-square-foot retail asset at 3800 Northeast Miami Court for $26 million.

RKF's Benjamin Mandell, John Ellis, and Marty Arrivo represented the buyer in the deal. The seller, Tirrenia Developments, had in-house representation.

The asset sold at a price per square foot of $1,169 for the building. That totals $1,906 per square foot for the land. The building's architecture is certainly distinct with its bold colors and geometric angles.

Mandell calls the deal “a key indicator of investor demand for well-located retail assets within the Design District.” The Design District ha established itself as a destination for high-end fashion, art, design and culture. Luxury retailers such as Louis Vuitton, Hermès, Burberry, Emilio Pucci, Celine, Bvlgari, Valentino, Rolex, and Prada have shops in the district. Givenchy, Miu Miu, Tom Ford, Fendi, and Marc Jacobs expect to open soon.

“Not only has the volume of domestic and overseas capital pouring into Miami's commercial real estate market been rising dramatically every quarter since 2011, but Miami's retail sector is fast becoming the hottest real estate segment of any of America's gateway cities,” Mandell says. “New ownership at 3800 Northeast Miami Court will benefit significantly from redevelopment projects in the Design District, as well as new construction in nearby Wynwood and Midtown.”

Located at the corner of Northeast Miami Court, the newly-constructed, two-story property is across from the Design District's designer parking garage. Poltrona Frau Group Miami, which is the first and largest showroom for the luxury furniture brand in North America, occupies the building.

“Miami is now considered a  'global city,' and as a result, there is tremendous interest from both investors and tenants,” says Paco Diaz, a senior vice president with CBRE in Miami. “Accordingly, the vacancy rate dropped to 3.9% in the second quarter of 2014. That's the lowest I've ever seen it in my 38 years in the business.

“Interestingly, most of the development action is in the urban core, where there are four mega- projects under construction and two in the final planning stages that will bring around 1.8 million square feet of new retail to the city. Those projects are Brickell City Centre, the Design District, The Mall at Miami Worldcenter, and MiamiCentral.”