530 Lincoln Road Sale Sets South Beach Record

MIAMI—In a record deal for Miami's South Beach retail market, Tristar Capital has grabbed 530 Lincoln Road for $30 million. The sales price equals $3,000 per square foot. TriStar acquired the retail property from a local seller.

Once owned by the family of Gloria Estefan of the Miami Sound Machine, this two-story trophy retail asset is located on the trendy 500 Block of Lincoln Road in the heart of South Beach. The building currently houses two short-term, ground-floor leases, making the property well-poised for redevelopment.

“This was an incredibly rare opportunity for an investor to acquire a retail property with immediate upside along one of the country's premiere shopping destinations,” says Adelaide Polsinelli, senior director with Eastern Consolidated and head of the firm's Retail Sales Group. Polsinelli, the sole broker on the deal, arranged this off-market transaction on behalf of both the buyer and the seller.

“Tristar is now perfectly positioned to create a dynamic, two-story, single-tenant flagship property or a multi-tenant destination,” she says. “In order to be relevant in this market, retailers need to be on Lincoln Road.”

Located between Drexel Avenue and Pennsylvania Avenue, 530 Lincoln Road is part of the Lincoln Road Mall, and across the street from the former Symphony Building at 541 Lincoln Road, which was recently leased to the European clothing chain H&M for their flagship Miami Beach store. Other major retailers along Lincoln Road include Forever 21, H&M, Banana Republic, and The Gap.

Polsinelli explained that 530 Lincoln Road currently has 10,000 square feet of rentable space in a market with escalating values: “There is such aggressive retailer demand along Lincoln Road that rents have doubled along that strip in just the last two years,” she noted.

The lack of available space in South Beach has also pushed retailers to think creatively. “More and more tenants are seeking out two-story retail buildings. The verticality concept—going vertical when horizontal isn't an option—is becoming an increasingly significant trend,” says Polsinelli, who last year arranged the $13.5 million sale of 801 Washington, also in South Beach. “The sale of 530 Lincoln Road will further emphasize that verticality is valuable.”

Eric Goldberg, Esq., of Olshan Grundman Frome Rosenzweig & Wolosky LLP, was the buyer's attorney in the transaction. Robert K. Futterman & Associates will handle the leasing of the retailspace.