South Miami's Sunset Place Sells at Deep Discount for $65.5M
The sale price is nearly 60% of what the shopping center traded for five years ago.
The Shops at Sunset Place, a longtime retail staple in South Miami that’s drawn patrons from surrounding neighborhoods as well, traded at a major discount for $65.5 million.
The developer of retail-residential neighborhood Midtown Miami, Alex Vadia, bought Sunset Place from Federal Realty Investment Trust, a Maryland-based real estate investment trust.
The sale price is nearly 60% of the $111.5 million Federal Realty Investment paid for the property in October 2015.
The deep discount could be in part because of the hard hit on retail caused by the coronavirus pandemic and ensuing restaurant and store closures, as well as in part because of the increased competition to Sunset Place.
In the early 2000s, the over half-a-million-square-foot retail development was a destination with a lot of foot traffic from residents from surrounding areas. It’s located along U.S. 1 at Southwest 72nd Street at 5701 SW 72nd St., making it centrally located for residents coming as far south as Palmetto Bay and as far north as Coral Gables and Miami. It also drew patrons from western Miami-Dade County suburbs such as Kendall.
As Miami-Dade emerged from the Great Recession, several big retail-dining complexes sprung up, including Brickell City Centre in Miami’s Brickell Financial District, the Wynwood Arts District and Vadia’s Midtown Miami. They posed competition to the older Sunset Place.
Federal Realty Investment had plans to revamp and modernize Sunset Place and got South Miami city approval for shopping center upgrades as well as the addition of more real estate, which was never constructed.
The sale breaks down to $127 per square foot.
Vadia’s Midtown Development, an affiliate of his real estate fund Midtown Opportunities, bought the shopping center. Its Midtown Miami development, between the Miami Design District and Wynwood, includes high-rise residential buildings and famous restaurants.
The Sunset Place transaction was executed over 10 days during the holidays, closing right before year’s end.
Federal Realty Investments is a partner in another retail venture to the north. It is redeveloping Miami CocoWalk with Miami-based Grass River Property and Miami Beach-based Comras Co. CocoWalk also is an older retail destination, and the trio modernized it by substituting outdated retailers for homegrown, edgy ones. The three firms also added a five-story One CocoWalk office building.
Grass River Property has been managing Sunset Place and will continue to do so under the new owner.
Holland & Knight partner Rick Perez and associate Shawn Amuial in Miami closed the Sunset Place deal on behalf of Vadia.
Read more:
Homegrown, Edgy Retailers Part of New Vision for Miami’s CocoWalk
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